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As filed with the Securities and Exchange Commission on June 30, 2017

Registration No. 333-      

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM S-4

REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933

GP Investments Acquisition Corp. *  

(Exact Name of Registrant as Specified in Its Charter)

Cayman Islands*
(State or other jurisdiction of
incorporation or organization)
7380
(Primary Standard Industrial
Classification Code Number)
N/A
(I.R.S. Employer
Identification Number)

150 E. 52nd Street, Suite 5003
New York, NY 10022
(212) 430-4340
(Address, including zip code, and telephone number, including area code,
of Registrant’s principal executive offices)

Antonio Bonchristiano
Chief Executive Officer and Chief Financial Officer
150 E. 52nd Street, Suite 5003
New York, NY 10022
(212) 430-4340
(Name, address, including zip code, and telephone number, including area code, of agent for service)

Copies to:

Paul T. Schnell
Timothy M. Fesenmyer
J. Mathias von Bernuth
Skadden, Arps,
Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036
(212) 735-3000
Kieran Walsh
Michael Johns
Maples and Calder
P.O. Box 309
Ugland House
South Church Street
Grand Cayman, KY1-1104
Cayman Islands
(345) 949-8066
Jon C. Avina
Michael S. Ringler
Calise Y. Cheng
Wilson Sonsini Goodrich & Rosati
Professional Corporation
650 Page Mill Road
Palo Alto, CA 94304-1050
(650) 493-9300

Approximate date of commencement of proposed sale of the securities to the public: As soon as practicable after this registration statement is declared effective and all other conditions to the first merger described in the enclosed joint proxy statement/prospectus have been satisfied or waived.

If the securities being registered on this Form are being offered in connection with the formation of a holding company and there is compliance with General Instruction G, check the following box: o

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering: o

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering: o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer
o
Accelerated filer
Non-accelerated filer
o (Do not check if a smaller reporting company)
Smaller reporting company
o
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.
o

CALCULATION OF REGISTRATION FEE

Title of each class of securities
to be registered
Amount to be
Registered (1)
Proposed maximum
offering price per
share
Proposed maximum
aggregate offering
price
Amount of
registration fee
Units, each consisting of one share of Common Stock, $0.0001 par value, and one-half of one Warrant (2)
 
571,645
 
$
10.98
(3)
$
6,276,662
(3)
$
727.47
 
Common Stock (4)(5)
 
571,645
 
 
 
 
 
 
(6)
Warrants (7)
 
285,823
 
 
 
 
 
 
(6)
Common Stock (5)(8)
 
15,125,631
 
$
10.03
(9)
$
151,710,079
(9)
$
17,583.20
 
Warrants (7)(10)
 
8,339,177
 
$
0.675
(11)
$
5,628,944
(11)
$
652.39
 
Common Stock (5)(12)
 
50,183,837
(13)
$
0.001
(13)
$
67,888
(13)
$
7.87
 
Total
 
 
 
 
 
 
$
163, 683 , 573
 
$
18,970.93
 

(Footnotes on next page)

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.

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(1) Prior to the consummation of the first merger described in the joint proxy statement/prospectus forming part of this registration statement (the “joint proxy statement/prospectus”), GP Investments Acquisition Corp., a Cayman Islands exempted company (“GPIA”), intends to effect a deregistration under Article 206 of the Cayman Islands Companies Law (2016 Revision) and a domestication under Section 388 of the Delaware General Corporation Law, pursuant to which GPIA’s jurisdiction of incorporation will be changed from the Cayman Islands to the State of Delaware (the “domestication”). The surviving corporation of the first merger will then merge with and into GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), with GP Investments Acquisition Corp. being the surviving corporation in the second merger, as described in the joint proxy statement/prospectus. All securities being registered will be issued by GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), the continuing entity following the domestication (which will be renamed Rimini Street, Inc. immediately after consummation of the second merger) (referred to, both upon the domestication and subsequent to such change of name, as “RMNI”).
(2) The number of units of RMNI being registered represents the number of units of GPIA (the “units”) that were registered pursuant to the Registration Statement on Form S-1 (333-203500) (the “IPO registration statement”) and offered by GPIA in its initial public offering less the number of units that have been separated, upon the request of the holder thereof, into the underlying public shares (as defined below) and underlying public warrants (as defined below). The units represent one share of common stock and one-half of one warrant. The outstanding units automatically will be converted by operation of law into units of RMNI in the domestication (the “RMNI units”).
(3) Estimated solely for the purpose of calculating the registration fee, based on the average of the high and low prices of the units of GPIA (the company to which RMNI will succeed following the domestication and which is the surviving corporation of the second merger) on the NASDAQ Capital Market on June 1, 2017 ($10.98 per unit). June 1, 2017 is the date for which the most recent reported high and low prices of the units of GPIA is available as at June 26, 2017 (such date being within five business days of the date that this registration statement is filed with the Securities and Exchange Commission (the “SEC”)). This calculation is in accordance with Rule 457(f)(1).
(4) The number of shares of common stock of RMNI being registered represents the number of public shares that, as of the date of the filing of this registration statement, remain represented by the units. See (2) above.
(5) Pursuant to Rule 416(a), there are also being registered an indeterminable number of additional securities as may be issued to prevent dilution resulting from share splits, share dividends or similar transactions.
(6) Pursuant to Rule 457(g), no registration fee is payable.
(7) The number of warrants to acquire RMNI common stock being registered represents the number of public warrants that, as of the date of the filing of this registration statement, remain represented by the units. See (2) above.
(8) The number of shares of common stock of RMNI being registered represents the number of ordinary shares of GPIA that were registered pursuant to the IPO registration statement and offered by GPIA in its initial public offering (the “public shares”) less (i) the number of public shares redeemed by GPIA on May 25, 2017 and (ii) the number of public shares that are represented by the units (see (2) above). The public shares (including those that underlie the public units) automatically will be converted by operation of law into shares of common stock of RMNI in the domestication (the “RMNI public shares”). For the avoidance of doubt, all of the outstanding ordinary shares of GPIA will be converted by operation of law into shares of common stock of RMNI in the domestication, but only the RMNI public shares are being registered hereby.
(9) Estimated solely for the purpose of calculating the registration fee, based on the average of the high and low prices of the ordinary shares of GPIA (the company to which RMNI will succeed following the domestication and which is the surviving corporation of the second merger) on the NASDAQ Capital Market on June 23, 2017 ($10.03 per ordinary share). June 23, 2017 is the date for which the most recent reported high and low prices of the ordinary shares of GPIA is available as at June 26, 2017 (such date being within five business days of the date that this registration statement is filed with the SEC). This calculation is in accordance with Rule 457(f)(1).
(10) The number of warrants to acquire RMNI common stock being registered represents the number of warrants to acquire ordinary shares of GPIA that were registered pursuant to the IPO registration statement and offered by GPIA in its initial public offering (the “public warrants”) less the number of public warrants that are represented by the units (see (2) above). The public warrants (including those that underlie the public units) automatically will be converted by operation of law into warrants to acquire RMNI common stock in the domestication (the “RMNI public warrants”). For the avoidance of doubt, all of the outstanding warrants to acquire GPIA ordinary shares will be converted by operation of law into warrants to acquire RMNI common stock in the domestication, but only the RMNI public warrants are being registered hereby.
(11) Estimated solely for the purpose of calculating the registration fee, based on the average of the high and low prices of the warrants of GPIA (the company to which RMNI will succeed following the domestication and which is the surviving corporation of the second merger) on the NASDAQ Capital Market on June 23, 2017 ($0.675 per warrant). June 23, 2017 is the date for which the most recent reported high and low prices of the warrants of GPIA is available as at June 26, 2017 (such date being within five business days of the date that this registration statement is filed with the SEC). This calculation is in accordance with Rule 457(f)(1).
(12) The number of shares of common stock of RMNI being registered represents the estimated number of shares of RMNI common stock that could be issued to the stockholders of Rimini Street, Inc., a Nevada corporation (“Rimini Street”), in connection with the merger agreement and the proposed business combination, as described in the joint proxy statement/prospectus. In accordance with the terms and subject to the conditions of the merger agreement, all of the consideration payable to Rimini Street’s stockholders will be in the form of newly-issued shares of RMNI common stock registered pursuant hereto. As the exact amount of the consideration is subject to adjustment at the closing of the proposed business combination, the estimated number of shares listed above is based on GPIA’s good faith estimate of the number of shares of RMNI to be paid to such stockholders in respect of the merger consideration, based on a per share issue price of $10.00 per share, as further described in the joint proxy statement/prospectus.
(13) Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(f)(2). Rimini Street is a private company and no market exists for its equity interests. Pursuant to Rule 457(f)(2) under the Securities Act, because the aggregate book value of the outstanding Rimini Street common stock was negative as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the filing of this registration statement), the proposed maximum aggregate offering price of RMNI common stock to be issued in connection with the business combination was calculated based upon one-third of the aggregate par value ($0.001 per share) of the Rimini Street common stock (103,177,826 shares currently outstanding) and Rimini Street preferred stock (100,486,496 shares currently outstanding) to be cancelled in the business combination.
* Prior to the consummation of the first merger described herein, the Registrant intends to effect a deregistration under Article 206 of the Cayman Islands Companies Law (2016 Revision) and a domestication under Section 388 of the Delaware General Corporation Law, pursuant to which the Registrant’s jurisdiction of incorporation will be changed from the Cayman Islands to the State of Delaware. All securities being registered will be issued by GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), the continuing entity following the domestication (which will be renamed Rimini Street, Inc. immediately after consummation of the second merger referred to in the joint proxy statement/prospectus).

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The information in this preliminary joint proxy statement/prospectus is not complete and may be changed. The registrant may not sell the securities described in this preliminary joint proxy statement/prospectus until the registration statement filed with the Securities and Exchange Commission is declared effective. This preliminary joint proxy statement/prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

PRELIMINARY—SUBJECT TO COMPLETION, JUNE 30, 2017

GP INVESTMENTS ACQUISITION CORP.

A Cayman Islands Exempted Company
(Company Number 295988)
150 E. 52nd Street, Suite 5003
New York, NY 10022

NOTICE OF EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS
TO BE HELD ON [ ], 2017

TO THE SHAREHOLDERS OF GP INVESTMENTS ACQUISITION CORP.:

NOTICE IS HEREBY GIVEN that an extraordinary general meeting of the shareholders (the “extraordinary general meeting”) of GP Investments Acquisition Corp., a Cayman Islands exempted company, company number 295988 (“GPIA”), will be held at [•] [a.m.][p.m.] Eastern Time, on [•], 2017, at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, at 4 Times Square, New York, New York 10036. You are cordially invited to attend the extraordinary general meeting, which will be held for the following purposes:

(a) Proposal No. 1—The Business Combination Proposal —to consider and vote upon a proposal to approve by ordinary resolution and adopt the Agreement and Plan of Merger, dated as of May 16, 2017 (as amended, the “merger agreement”), as amended by Amendment No. 1 thereto, dated June 30, 2017 (copies of which are attached to the accompanying joint proxy statement/prospectus as Annex A and Annex B, respectively, in each case, by and among GPIA, Let’s Go Acquisition Corp., GPIA’s wholly-owned subsidiary (“Let’s Go”), Rimini Street, Inc. (“Rimini Street”), and, solely in his capacity as the initial Holder Representative (as defined in the merger agreement) for the limited purposes set forth therein, the person specified as such in the merger agreement (the “Holder Representative”), which, among other things, provides for an integrated transaction consisting of the merger of Let’s Go with and into Rimini Street, with Rimini Street surviving the merger (the “first merger”), with the surviving corporation then merging with and into GP Investments Acquisition Corp. (a corporation incorporated in the State of Delaware, assuming the domestication proposal is approved and adopted, and the filing with and acceptance by the Secretary of State of Delaware of the certificate of domestication in accordance with Section 388 of the General Corporation Law of the State of Delaware (the “DGCL”)), with GP Investments Acquisition Corp. surviving the merger (the “second merger” and, together with the first merger, the “mergers”) and renamed “Rimini Street, Inc.” immediately after consummation of the second merger, and to approve the transactions contemplated by the merger agreement (we refer to this proposal as the “business combination proposal”);
(b) Proposal No. 2—The Domestication Proposal —to consider and vote upon a proposal to approve by special resolution, assuming the business combination proposal is approved and adopted, the change of GPIA’s jurisdiction of incorporation by deregistering as an exempted company in the Cayman Islands and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware (the “domestication” and, together with the mergers, the “business combination”) (we refer to this proposal as the “domestication proposal”);
(c) Organizational Documents Proposals —to consider and vote upon the following seven separate proposals (which we refer to, collectively, as the “organizational documents proposals”) to approve by special resolution, assuming the domestication proposal is approved and adopted, the following material differences between the current amended and restated memorandum and articles of association of GPIA (as amended by a special resolution of shareholders passed on May 23, 2017) (our “memorandum and articles of association”) and the proposed new certificate of incorporation and bylaws of GP Investments Acquisition Corp. (a corporation incorporated in the State of Delaware, assuming the domestication is proposal is approved and adopted, and the filing with and acceptance by the Secretary of State of Delaware of the certificate of domestication in accordance with Section 388 of the DGCL), which will be renamed Rimini Street, Inc. immediately after consummation of the second merger (referred to, both upon the domestication and subsequent to such change of name, as “RMNI”):
(1) Proposal No. 3—Organizational Documents Proposal A —to authorize (i) 600,000,000 additional shares of common stock of RMNI, which increases the total authorized shares of common stock to 1,000,000,000 shares of common stock and (ii) 80,000,000 additional shares of preferred stock of RMNI, which increases the total authorized shares of preferred stock to 100,000,000 (we refer to this as “organizational documents proposal A”);

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(2) Proposal No. 4—Organizational Documents Proposal B —to authorize the board of directors of RMNI to issue any or all shares of RMNI’s preferred stock in one or more classes or series, with such terms and conditions as may be expressly determined by RMNI’s board of directors and as may be permitted by the DGCL (we refer to this as “organizational documents proposal B”);
(3) Proposal No. 5—Organizational Documents Proposal C —to authorize that directors of RMNI may only be removed for cause (we refer to this as “organizational documents proposal C”);
(4) Proposal No. 6—Organizational Documents Proposal D —to authorize that only the RMNI board of directors, chairperson of the board of directors, chief executive offer or president (in the absence of the chief executive officer) may call a meeting of stockholders (we refer to this as “organizational documents proposal D”);
(5) Proposal No. 7—Organizational Documents Proposal E —to authorize removal of the ability of RMNI stockholders to take action by written consent in lieu of a meeting (we refer to this as “organizational documents proposal E”);
(6) Proposal No. 8—Organizational Documents Proposal F —to authorize holders of sixty-six and two-thirds percent (66 2/3%) of the then outstanding RMNI capital stock as the minimum threshold required for a stockholder vote to amend RMNI’s certificate of incorporation (other than the articles thereof relating to the company’s name, address and registered office, purpose and matters related to the company’s common and preferred stock) and bylaws (we refer to this as “organizational documents proposal F”);
(7) Proposal No. 9—Organizational Documents Proposal G —to authorize all other changes in connection with the replacement of our memorandum and articles of association with a new certificate of incorporation and bylaws of RMNI as part of the domestication, including (i) changing the post-business combination corporate name from “GP Investments Acquisition Corp.” to “Rimini Street, Inc.” (with such change expected to be made immediately following the consummation of the second merger) and making RMNI’s corporate existence perpetual, (ii) adopting Delaware as the exclusive forum for certain stockholder litigation, and (iii) removing certain provisions related to our status as a blank check company that will no longer apply upon consummation of the business combination, all of which GPIA’s board of directors believes is necessary to adequately address the needs of RMNI after the business combination (we refer to this as “organizational documents proposal G”).
(d) Proposal No. 10—The Stock Issuance Proposal —to consider and vote upon a proposal to approve by ordinary resolution, assuming the organizational documents proposals are approved and adopted, for the purposes of complying with the applicable provisions of NASDAQ Listing Rule 5635, the issuance of RMNI common stock to (1) the existing stockholders of Rimini Street in connection with the business combination and (2) the Sponsor, GPIC, Ltd., a Bermuda company (the “Sponsor”), that the Sponsor may purchase in connection with the consummation of the first merger pursuant to the Sponsor’s equity commitment, to the extent such issuance would require a shareholder vote under NASDAQ Listing Rule 5635 (we refer to this proposal as the “stock issuance proposal” and, collectively with the business combination proposal, the domestication proposal and the organizational documents proposals, the “condition precedent proposals”); and
(e) Proposal No. 11—The Adjournment Proposal —to consider and vote upon a proposal to approve by ordinary resolution the adjournment of the extraordinary general meeting to a later date or dates, if necessary, to permit further solicitation and vote of proxies if, based upon the tabulated vote at the time of the extraordinary general meeting, any of the condition precedent proposals would not be duly approved and adopted by our shareholders (we refer to this proposal as the “adjournment proposal”).

These items of business are described in the accompanying joint proxy statement/prospectus, which we encourage you to read in its entirety before voting.

Only holders of record of GPIA ordinary shares at the close of business on [•], 2017 are entitled to notice of and to vote and have their votes counted at the extraordinary general meeting and any adjournment of the extraordinary general meeting.

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We are providing the accompanying joint proxy statement/prospectus and accompanying proxy card to our shareholders in connection with the solicitation of proxies to be voted at the extraordinary general meeting and at any adjournment of the extraordinary general meeting. Whether or not you plan to attend the extraordinary general meeting, we urge you to read the accompanying joint proxy statement/prospectus (and any documents incorporated into the accompanying joint proxy statement/prospectus by reference) carefully. Please pay particular attention to the section entitled “ Risk Factors ”.

After careful consideration, GPIA’s board of directors has determined that the business combination proposal, the domestication proposal, each of the organizational documents proposals, the stock issuance proposal and the adjournment proposal are in the best interests of GPIA and its shareholders and unanimously recommends that you vote or give instruction to vote “FOR” each of those proposals.

The existence of financial and personal interests of one or more of GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” in the accompanying joint proxy statement/prospectus for a further discussion of this.

Under the merger agreement, the approval of the condition precedent proposals is a condition to the consummation of the first merger. The domestication proposal is conditioned on the approval of the business combination proposal. The organizational documents proposals are conditioned on the approval of the domestication proposal, and, therefore, also conditioned on approval of the business combination proposal. The stock issuance proposal is conditioned on the approval of the organizational documents proposals, and, therefore, also conditioned on approval of the domestication proposal and the business combination proposal. The adjournment proposal is not conditioned on the approval of any other proposal. If our public shareholders do not approve each of the condition precedent proposals, then unless this condition is waived by GPIA, Let’s Go and Rimini Street, the merger agreement could terminate and the proposed business combination may not be consummated. In addition, the amendment, modification or waiver of the merger agreement in any manner that could reasonably be expected to be materially adverse to Rimini Street or the agents and lenders under the Credit Facility (as described in the accompanying joint proxy statement/prospectus) requires the prior written consent of the Origination Agent thereunder. There can be no assurance that GPIA, Let’s Go and Rimini Street would waive any such provision of the merger agreement, or that the agents and lenders under the Credit Facility would provide any required consents to such amendments, modifications or waivers.

In connection with our initial public offering, our initial shareholders (consisting of the Sponsor and our independent directors at the time of our initial public offering) entered into letter agreements to vote their founder shares, as well as any public shares purchased during or after our initial public offering, in favor of the business combination proposal. In addition, on May 16, 2017, in connection with the transactions contemplated by the merger agreement, GPIAC, LLC, a company whose sole member is the Sponsor (“GPIAC, LLC”) entered into a transaction support and voting agreement with GPIA and Rimini Street, pursuant to which, among other things, GPIAC, LLC agreed to vote its GPIA ordinary shares in favor of the transactions at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, the aggregate number of shares covered by the transaction support and voting agreement entered into by GPIAC, LLC represents 21.3% of the outstanding GPIA ordinary shares. In addition, our independent directors have indicated that they intend to vote their shares in favor of all other proposals being presented at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, our independent directors own 0.3% of the outstanding GPIA ordinary shares.

Pursuant to our memorandum and articles of association, a public shareholder may request of GPIA that RMNI redeem all or a portion of the RMNI public shares that such public shareholder will hold upon the domestication for cash if the business combination is consummated. For the purposes of Article 48.3 of our memorandum and articles of association and the Cayman Islands Companies Law (2016 Revision), the exercise of redemption rights shall be treated as an election to have such public shares repurchased for cash and references in this joint proxy statement/prospectus to “redemption” or “redeeming” shall be interpreted accordingly. GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware) will be the continuing entity following the domestication, which is the entity that survives the mergers (and which will be renamed “Rimini Street, Inc.” immediately after consummation of the second merger). As a change of entity name does not involve a change

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in the legal form of the entity, in this joint proxy statement/prospectus, “RMNI” refers to GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), including subsequent to its change of name to Rimini Street, Inc. Holders of GPIA public shares will be entitled to receive cash for any RMNI public shares to be redeemed only if you:

(i) (a) hold GPIA ordinary shares, or (b) if you hold GPIA ordinary shares through units and you elect to separate your units into the underlying public shares and public warrants prior to exercising your redemption rights with respect to the public shares;
(ii) submit a written request to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, that RMNI redeem all or a portion of your RMNI public shares for cash; and
(iii) deliver your GPIA ordinary shares to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, physically or electronically through Depository Trust Company (“DTC”).

Holders of GPIA public shares should complete the procedures for electing to redeem their GPIA public shares in the manner described above prior to 5:00 p.m. Eastern Time on [ ], 2017 (two business days before the extraordinary general meeting).

Holders of units must elect to separate the underlying public shares and public warrants prior to exercising redemption rights with respect to the public shares. If holders hold their units in an account at a brokerage firm or bank, holders must notify their broker or bank that they elect to separate the units into the underlying public shares and public warrants, or if a holder holds units registered in its own name, the holder must contact Continental Stock Transfer & Trust Company, GPIA’s transfer agent, directly and instruct them to do so. Public stockholders may elect to redeem RMNI public shares regardless of if or how they vote in respect of the business combination proposal. If the business combination is not consummated, the public shares will not be redeemed for cash. If a public shareholder properly exercises its right to redeem all or a portion of the RMNI public shares that it will hold upon the domestication and timely delivers its shares to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, RMNI will redeem such RMNI public shares into a pro rata portion of the trust account established at the consummation of our initial public offering, calculated as of two business days prior to the consummation of the business combination. For illustrative purposes, as of May 25, 2017 (after giving effect to the redemptions of public shares redeemed in connection with the proposals approved by our shareholders on May 23, 2017), this would have amounted to approximately $10.05 per public share. If a public shareholder exercises its redemption rights, then it will be electing to exchange its GPIA ordinary shares (that become RMNI shares upon the domestication) for cash and will no longer own RMNI public shares. The redemption takes place following the domestication and accordingly it is RMNI public shares that are redeemed immediately after consummation of the second merger. See “ Extraordinary General Meeting of GPIA Shareholders—Redemption Rights ” in the accompanying joint proxy statement/prospectus for a detailed description of the procedures to be followed if you wish to redeem your RMNI public shares for cash.

Under the merger agreement, the consummation of the first merger is conditioned upon, among other things, (i) there being a minimum of $50,000,000 of cash available to GPIA (including the cash in our trust account and any cash provided by the Sponsor pursuant to its equity commitment) and (ii) there being a minimum amount of immediately available cash in the trust account of not less than $5,000,001 after giving effect to the redemption of GPIA ordinary shares that holders of GPIA ordinary shares validly elected to redeem in connection with the business combination. Therefore, unless these conditions are waived by GPIA, Let’s Go and Rimini Street, the merger agreement could terminate and the proposed business combination may not be consummated. In addition, the amendment, modification or waiver of the merger agreement in any manner that could reasonably be expected to be materially adverse to Rimini Street or the agents and lenders under the Credit Facility requires the prior written consent of the Origination Agent. There can be no assurance that GPIA, Let’s Go and Rimini Street would waive any such provision of the merger agreement, or that the agents and lenders under the Credit Facility would provide any required consents to such amendments, modifications or waivers. Furthermore, as provided in our memorandum and articles of association, in no event will we redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001.

GPIA may enter into equity financing or debt financing in connection with the proposed business combination with the Sponsor or its affiliates or any third parties. The purposes of any such financings may include increasing the likelihood of GPIA having a minimum of $50,000,000 of available cash upon consummation of the first merger, which is a condition to consummation of the first merger. The merger agreement provides that any equity financing

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be contingent upon closing of the business combination and further provides that any proposed financing be subject to the mutual agreement of GPIA and Rimini Street. Any equity issuances to the Sponsor or its affiliates would increase the relative percentage ownership of the Sponsor and, accordingly, would increase the percentage ownership of the initial shareholders. Any additional equity issuances would result in dilution of the relative ownership interest of the non-redeeming public shareholders or the former equity holders of Rimini Street. As the amount of any such equity issuances is not currently known, GPIA cannot provide exact figures as to percentage ownership that may result therefrom.

As disclosed in connection with our initial public offering on a registration statement filed with the Securities and Exchange Commission on Form S-1 (Reg. No. 333-203500) that became effective on May 19, 2015, if our initial business combination (as defined in our memorandum and articles of association) is paid for using equity or debt securities, or not all of the funds released from the trust account are used for payment of the consideration in connection with our initial business combination or used for redemptions of our ordinary shares, we may apply the balance of the cash released to us from the trust account for general corporate purposes, including for maintenance or expansion of operations of post-transaction businesses, the payment of principal or interest due on indebtedness incurred in completing our initial business combination, to fund the purchase of other companies or for working capital. Accordingly, after consummation of the business combination and after payment to public shareholders who elected to redeem their RMNI public shares, the funds in the trust account will be released to RMNI (as successor to GPIA as a result of the domestication) and used by RMNI to pay expenses incurred in connection with the business combination with Rimini Street and a fee to the underwriters of our initial public offering, and certain other fees to GPIA’s and Rimini Street’s advisors. Any remaining balance in the trust account would thereafter be available for general corporate purposes, including, but not limited to, the prepayment of amounts owed under the Credit Facility and to provide working capital for operations.

All GPIA shareholders are cordially invited to attend the extraordinary general meeting in person. To ensure your representation at the extraordinary general meeting, however, you are urged to complete, sign, date and return the enclosed proxy card as soon as possible. If you are a shareholder of record holding GPIA ordinary shares, you also may cast your vote in person at the extraordinary general meeting. If your shares are held in an account at a brokerage firm or bank, you must instruct your broker or bank on how to vote your shares or, if you wish to attend the extraordinary general meeting and vote in person, obtain a proxy from your broker or bank. If you do not vote or do not instruct your broker or bank how to vote, it will have no effect on the proposals because such action would not count as a vote cast at the extraordinary general meeting.

Your vote is important regardless of the number of shares you own. Whether you plan to attend the extraordinary general meeting or not, please sign, date and return the enclosed proxy card as soon as possible in the envelope provided. If your shares are held in “street name” or are in a margin or similar account, you should contact your broker to ensure that votes related to the shares you beneficially own are properly counted.

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Your attention is directed to the joint proxy statement/prospectus accompanying this notice (including the annexes thereto) for a more complete description of the proposed business combination and related transactions and each of the proposals. We encourage you to read the accompanying joint proxy statement/prospectus carefully. If you have any questions or need assistance voting your ordinary shares, please contact Morrow Sodali LLC, our proxy solicitor, by calling (800) 662-5200, or banks and brokers can call collect at (203) 658-9400, or by emailing GPIA.info@morrowsodali.com.

Thank you for your participation. We look forward to your continued support.

 
By Order of the Board of Directors of
GP Investments Acquisition Corp.,
   
 
[•], 2017
 
   
 
   
 
 
Antonio Bonchristiano
Chief Executive Officer, Chief Financial Officer and Director

IF YOU RETURN YOUR PROXY CARD WITHOUT AN INDICATION OF HOW YOU WISH TO VOTE, YOUR SHARES WILL NOT BE VOTED IN FAVOR OF ANY OF THE PROPOSALS. TO EXERCISE YOUR REDEMPTION RIGHTS, YOU MUST (I) IF YOU HOLD ORDINARY SHARES THROUGH UNITS, ELECT TO SEPARATE YOUR UNITS INTO THE UNDERLYING PUBLIC SHARES AND PUBLIC WARRANTS PRIOR TO EXERCISING YOUR REDEMPTION RIGHTS WITH RESPECT TO THE PUBLIC SHARES, (II) SUBMIT A WRITTEN REQUEST TO CONTINENTAL STOCK TRANSFER & TRUST COMPANY, GPIA’S TRANSFER AGENT, THAT RMNI REDEEM ALL OR A PORTION OF YOUR RMNI PUBLIC SHARES FOR CASH, AND (III) DELIVER YOUR ORDINARY SHARES TO CONTINENTAL STOCK TRANSFER & TRUST COMPANY, GPIA’S TRANSFER AGENT, PHYSICALLY OR ELECTRONICALLY USING DEPOSITORY TRUST COMPANY’S DWAC (DEPOSIT WITHDRAWAL AT CUSTODIAN) SYSTEM, IN EACH CASE IN ACCORDANCE WITH THE PROCEDURES AND DEADLINES DESCRIBED IN THE ACCOMPANYING JOINT PROXY STATEMENT/PROSPECTUS. IF THE BUSINESS COMBINATION IS NOT CONSUMMATED, THEN THE PUBLIC SHARES WILL NOT BE REDEEMED FOR CASH. IF YOU HOLD THE SHARES IN STREET NAME, YOU WILL NEED TO INSTRUCT THE ACCOUNT EXECUTIVE AT YOUR BANK OR BROKER TO WITHDRAW THE SHARES FROM YOUR ACCOUNT IN ORDER TO EXERCISE YOUR REDEMPTION RIGHTS. SEE “ EXTRAORDINARY GENERAL MEETING OF GPIA SHAREHOLDERS—REDEMPTION RIGHTS ” IN THE ACCOMPANYING PROXY STATEMENT/PROSPECTUS FOR MORE SPECIFIC INSTRUCTIONS.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the transactions described in the accompanying joint proxy statement/prospectus, passed upon the merits or fairness of the merger agreement or the transactions contemplated thereby, or passed upon the adequacy or accuracy of the accompanying joint proxy statement/prospectus. Any representation to the contrary is a criminal offense.

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RIMINI STREET, INC.

A Nevada Corporation
3993 Howard Hughes Parkway, Suite 500
Las Vegas, NV 89169

NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
TO BE HELD ON [ ], 2017

TO THE STOCKHOLDERS OF RIMINI STREET, INC.:

NOTICE IS HEREBY GIVEN that a special meeting of the stockholders (the “special meeting”) of Rimini Street, Inc., a Nevada corporation (“Rimini Street”), will be held at [•] Pacific Time, on [•], 2017, at [•]. You are cordially invited to attend the special meeting, which will be held for the following purposes:

(a) Proposal No. 1—The Rimini Street Business Combination Proposal— to consider and vote upon a proposal to approve and adopt the Agreement and Plan of Merger, dated as of May 16, 2017 (as amended, the “merger agreement”), as amended by Amendment No. 1 thereto, dated June 30, 2017 (the “merger agreement amendment”) (copies of which are attached to the accompanying joint proxy statement/prospectus as Annex A and Annex B, respectively), in each case, by and among GP Investments Acquisition Corp., a Cayman Islands exempted company, company number 295988 (“GPIA”), Let’s Go Acquisition Corp., GPIA’s wholly-owned subsidiary (“Let’s Go”), Rimini Street, and, solely in his capacity as the initial Holder Representative (as defined in the merger agreement), for the limited purposes set forth therein, the person specified as such in the merger agreement (the “Holder Representative”), which, among other things, provides for an integrated transaction consisting of the merger of Let’s Go with and into Rimini Street, with Rimini Street surviving the merger (the “first merger”), with the surviving corporation then merging with and into GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), with GP Investments Acquisition Corp. surviving the merger (the “second merger” and, together with the first merger, the “mergers”) and renamed “Rimini Street, Inc.” immediately after consummation of the second merger, and to approve the transactions contemplated by the merger agreement (we refer to this proposal as the “Rimini Street business combination proposal”);
(b) Proposal No. 2—The Rimini Street Preferred Stock Conversion Proposal— to obtain the approval of the Rimini Street preferred stockholders to request the conversion of all outstanding shares of Rimini Street preferred stock into shares of Rimini Street common stock, effective as of immediately prior to the effectiveness of the first merger (we refer to this proposal as “the Rimini Street preferred stock conversion proposal”); and
(c) to transact other business as may properly be presented at the meeting or any postponements or adjournments of the special meeting.

These items of business are described in the accompanying joint proxy statement/prospectus, which we encourage you to read in its entirety before voting.

Only holders of record of Rimini Street capital stock at the close of business on [•], 2017 are entitled to notice of and to vote and have their votes counted at the special meeting and any adjournment of the special meeting.

We are providing the accompanying joint proxy statement/prospectus and accompanying proxy card to our stockholders in connection with the solicitation of proxies to be voted at the special meeting and at any adjournment of the special meeting. Whether or not you plan to attend the special meeting, we urge you to read the accompanying joint proxy statement/prospectus (and any documents incorporated into the accompanying joint proxy statement/prospectus by reference) carefully. Please pay particular attention to the section entitled Risk Factors ”.

After careful consideration, Rimini Street’s board of directors has determined that the Rimini Street business combination proposal and the Rimini Street preferred stock conversion proposal are in the best interests of Rimini Street and its stockholders and recommends that you vote or give instruction to vote “FOR” each of those proposals.

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The existence of financial and personal interests of one or more of Rimini Street’s directors may result in a conflict of interest on the part of such director(s) between what he, she or they may believe is in the best interests of Rimini Street and its stockholders and what he, she or they may believe is best for himself, herself or themselves in determining to recommend that stockholders vote for the proposals. See the section entitled Rimini Street Business Combination Proposal—Interests of Rimini Street’s Directors and Officers in the Business Combination ” in the accompanying joint proxy statement/prospectus for a further discussion of this.

In connection with the mergers, Rimini Street stockholders representing a sufficient number of shares of Rimini Street capital stock necessary to approve the Rimini Street business combination proposal and the Rimini Street preferred stock conversion proposal have entered into a transaction support and voting agreement pursuant to which they have agreed to support and vote all of their shares in favor of such proposals.

Your vote is important. Whether or not you plan to attend the special meeting, please act promptly to vote your shares on the proposals described above. You may submit a proxy for your shares by completing, signing and dating the enclosed proxy card and returning it as promptly as possible in the enclosed postage-prepaid envelope.

You may revoke your proxy in the manner described in the accompanying joint proxy statement/prospectus at any time before it has been voted at the special meeting. If you attend the special stockholders meeting, you may vote your shares in person even if you have previously submitted a proxy.

You are entitled to appraisal rights in connection with the merger in accordance with Nevada law. See the discussion under “ Appraisal Rights ” of the accompanying joint proxy statement/ prospectus for more information.

Thank you for your participation. We look forward to your continued support.

 
By Order of the Board of Directors,
[•], 2017
 
 
Seth A. Ravin
 
Chief Executive Officer and Chairman of the Board

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JOINT PROXY STATEMENT FOR
EXTRAORDINARY GENERAL MEETING OF THE SHAREHOLDERS OF
GP INVESTMENTS ACQUISITION CORP.
(A CAYMAN ISLANDS EXEMPTED CORPORATION)
AND
SPECIAL MEETING OF THE STOCKHOLDERS OF
RIMINI STREET, INC. (A NEVADA CORPORATION)

PROSPECTUS FOR
571,645 UNITS (EACH UNIT COMPRISING ONE SHARE OF COMMON STOCK AND
ONE-HALF OF A WARRANT), 65,881,113 SHARES OF COMMON STOCK AND 8,625,000 WARRANTS TO ACQUIRE SHARES OF COMMON STOCK OF
GP INVESTMENTS ACQUISITION CORP. (AFTER ITS DOMESTICATION AS A CORPORATION INCORPORATED IN THE STATE OF DELAWARE),
THE CONTINUING ENTITY FOLLOWING THE DOMESTICATION (WHICH WILL BE RENAMED RIMINI STREET, INC. IMMEDIATELY AFTER CONSUMMATION OF THE SECOND MERGER)

The board of directors of GP Investments Acquisition Corp., a Cayman Islands exempted corporation (“GPIA”) and the board of directors of Rimini Street, Inc., a Nevada corporation (“Rimini Street”) have unanimously approved the business combination (the “business combination”) in accordance with the terms and subject to the conditions of an agreement and plan of merger, dated as of May 16, 2017 (as amended, the “merger agreement”), as amended by Amendment No. 1 thereto, dated June 30, 2017 (the “merger agreement amendment”), in each case, by and among GPIA, Let’s Go, Rimini Street and, solely in his capacity as the initial Holder Representative (as defined in the merger agreement) for the limited purposes set forth therein, the person specified as such in the merger agreement (the “Holder Representative”). Pursuant to the merger agreement, and following the domestication of GPIA to Delaware, Let’s Go Acquisition Corp., GPIA’s wholly-owned subsidiary (“Let’s Go”), will merge with and into Rimini Street, with Rimini Street as the surviving corporation (the “first merger”). The surviving corporation from the first merger will then merge with and into GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), with GP Investments Acquisition Corp. being the surviving corporation (the “second merger”) and renamed “Rimini Street, Inc.” immediately after consummation of the second merger. Therefore, the business combination will be an integrated transaction resulting in Rimini Street merging with and into Rimini Street, Inc. (a corporation incorporated in the State of Delaware, as renamed immediately after consummation of the second merger).

Upon the domestication, GPIA will become GP Investments Acquisition Corp., a corporation incorporated in the State of Delaware), which corporation will be renamed Rimini Street, Inc. immediately after consummation of the second merger. As a change of entity name does not involve a change in the legal form of the entity, in this joint proxy statement/prospectus, “RMNI” refers to GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), the continuing entity following the domestication, including subsequent to its change of name to Rimini Street, Inc., which shall occur immediately after consummation of the second merger.

As described in this joint proxy statement/prospectus, (i) GPIA’s shareholders are being asked to consider and vote upon (among other things) the proposed business combination with Rimini Street, a privately held operating company, and (ii) Rimini Street’s stockholders are being asked to consider and vote upon the proposed business combination with GPIA, a special purpose acquisition company and Rimini Street’s preferred stockholders are being asked to consider and vote upon the proposed preferred stock conversion referred to in this joint proxy statement/prospectus.

As a condition to closing the first merger, the board of directors of GPIA has unanimously approved a change of GPIA’s jurisdiction of incorporation by deregistering as an exempted company in the Cayman Islands and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware (the “domestication”). To effect the domestication, GPIA will file a notice of deregistration with the Cayman Islands Registrar of Companies, together with the necessary accompanying documents, and file a certificate of incorporation and a certificate of corporate domestication with the Secretary of State of the State of Delaware, under which GPIA will be domesticated and continue as a Delaware corporation. On the effective date of the domestication, each currently issued and outstanding ordinary share, par value $0.0001 per share, of GPIA (the “GPIA ordinary shares”) will convert automatically by operation of law, on a one-for-one basis, into shares of common stock, par value $0.0001 per share, of GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), which will be renamed “Rimini Street, Inc.” immediately after consummation of the second

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merger (“RMNI common stock”). Similarly, outstanding warrants of GPIA will become warrants to acquire the corresponding shares of RMNI common stock and no other changes will be made to the terms of any outstanding warrants as a result of the domestication. In addition, outstanding units of GPIA will become units of RMNI and no other changes will be made to the terms of any outstanding units as a result of the domestication.

It is currently expected that the business combination will be consummated by August 31, 2017.

In accordance with the terms and subject to the conditions of the merger agreement, upon the effectiveness of the first merger, each share of then-issued and outstanding Rimini Street common stock (other than (i) shares of common stock and preferred stock (on an as-converted basis), if any, held as treasury stock, which will be cancelled upon the effectiveness of the first merger, and (ii) shares of Rimini Street common stock that are held by stockholders who have perfected and not withdrawn a demand for appraisal rights under applicable Nevada law) will automatically be cancelled and converted into and become the right to receive the applicable portion of the merger consideration. In accordance with the terms and subject to the conditions of the merger agreement and subject to certain adjustments set forth therein, the aggregate purchase price for the first merger and related transactions is $775 million, which amount will be (i) reduced by, among other things set forth in the merger agreement, the amount of the indebtedness of Rimini Street existing on the Closing Date (as defined in the merger agreement) of the first merger (including all make-whole obligations and exit or similar fees payable to any third party), (ii) increased by, among other things set forth in the merger agreement, the cash and cash equivalents held by or on behalf of Rimini Street on the Closing Date (as defined in the merger agreement) of the first merger, and (iii) reduced by the unpaid transaction fees and expenses associated with the first merger incurred by Rimini Street and its subsidiaries (as adjusted in accordance with the terms of the merger agreement, the “merger consideration”). The merger consideration is payable entirely in newly issued common stock of RMNI based on a per share issue price of $10.00 per share. The precise amount of such adjustments is to be calculated as of the Closing Date and is therefore not currently known. However, based on an illustrative Closing Date of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), GPIA estimates a downward adjustment of approximately $156.5 million. This estimated adjustment is based on an illustrative Closing Date of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus) and such downward adjustment represents the net result of (i) a $175.3 million reduction in respect of the amount of the indebtedness of Rimini Street existing on the Closing Date (as defined in the merger agreement) of the first merger (including all make-whole obligations and exit or similar fees payable to any third party), (ii) a $32.4 million increase in respect of the cash and cash equivalents held by or on behalf of Rimini Street on the Closing Date (as defined in the merger agreement) of the first merger, and (iii) a $13.6 million reduction in respect of unpaid transaction fees and expenses associated with the first merger incurred by Rimini Street and its subsidiaries. Based on such estimated adjustment, upon consummation of the first merger the stockholders of Rimini Street immediately prior to consummation of the first merger will receive an aggregate number of shares of RMNI common stock equating to approximately $618.5 million (based on a per share issue price of $10.00 per share). The merger consideration is subject to adjustment to appropriately reflect the effect of any stock split, reverse stock split, stock dividend, reorganization, recapitalization, reclassification, combination, exchange of shares or other like change prior to consummation of the first merger, although no such events are currently contemplated.

It is currently expected that the business combination will be consummated by August 31, 2017. The estimation of the merger consideration described above is based on Rimini Street financial data as of May 31, 2017 and will change based upon, among other things, (i) the total debt obligations of Rimini Street on the Closing Date, which fluctuate in the ordinary course of business (including as a result of scheduled payments in respect of the Credit Facility between May 31, 2017 and August 31, 2017) and (ii) the cash and cash equivalents of Rimini Street on the Closing Date, which fluctuate in the ordinary course of business, including as a result of debt amortization payments.

Pursuant to the terms of the merger agreement and the related escrow agreement, 5,500,000 shares of RMNI common stock issued as merger consideration are subject to an indemnification escrow for any indemnification claims by the holders of ordinary shares of GPIA immediately prior to the effectiveness of the first merger.

Accordingly, the registration statement of which this joint proxy statement/prospectus forms part registers (i) 571,645 units of RMNI (each unit representing one share of common stock and one-half of one warrant) to be issued in the domestication (being the number of outstanding units on the date of this joint proxy/registration statement), (ii) 15,697,276 shares of common stock of RMNI to be issued in the domestication (being the number of outstanding public shares on the date of this joint proxy/registration statement), (iii) 8,625,000 warrants to acquire

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shares of common stock of RMNI to be issued in the domestication (being the number of outstanding units on the date of this joint proxy/registration statement), and (iv) 50,183,837 shares of common stock of RMNI, being the number of shares of common stock of RMNI that could be issued to the stockholders of Rimini Street in respect of the merger consideration payable to them pursuant to the merger agreement. As the exact amount of the consideration is subject to adjustment at the closing of the proposed business combination, the number of shares referred to in clause (iv) in the preceding sentence represents GPIA’s good faith estimate of the estimated number of shares of RMNI to be paid to such stockholders as merger consideration, based on a per share issue price of $10.00 per share.

As of the date of this joint proxy statement/prospectus, there are 20,009,776 GPIA ordinary shares outstanding, of which GPIA’s Sponsor, GPIC, Ltd., a Bermuda company (the “Sponsor”), an affiliate of GP Investments, Ltd., owns 4,252,500 ordinary shares, and our independent directors own an aggregate of 60,000 ordinary shares. In addition, the Sponsor owns 6,062,500 warrants (the “private placement warrants”) that were issued in a private placement that closed simultaneously with the closing of GPIA’s initial public offering on May 26, 2015 (“initial public offering”) and an affiliate of the Sponsor owns 52,100 warrants that were acquired by such affiliate in the secondary market following GPIA’s initial public offering. As of the date of this joint proxy statement/prospectus, there is outstanding an aggregate of 14,687,500 warrants to acquire GPIA ordinary shares, which comprise the 6,062,500 private placement warrants held by the Sponsor and the 8,625,000 public warrants, of which 52,100 are held by an affiliate of the Sponsor. Each of the 17,250,000 units issued in GPIA’s initial public offering contains one-half of a warrant. As of the date of this joint proxy statement/prospectus, there were 571,645 units outstanding. Each warrant entitles the holder thereof to purchase one GPIA ordinary share and, following the domestication, will entitle the holder thereof to purchase one RMNI common share.

Assuming consummation of the business combination as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), immediately following the consummation of the business combination (without taking into account any GPIA ordinary shares held by Rimini Street stockholders prior to the consummation of the business combination, and assuming (i) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants, (ii) that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination and (iii) that no public shareholders exercise their redemption rights), the former equityholders of Rimini Street are expected to own approximately 71.5% of RMNI’s common stock (or 65.5% of RMNI’s common stock on a fully-diluted basis) and GPIA’s current shareholders are expected to own approximately 28.5% of RMNI’s common stock (or 34.5% of RMNI’s common stock on a fully-diluted basis), which comprises (i) 6.2% of RMNI’s common stock (or 10.4% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s initial shareholders and (ii) 22.4% of RMNI’s common stock (or 24.2% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s public shareholders.

Assuming consummation of the business combination as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), immediately following the consummation of the business combination (without taking into account any GPIA ordinary shares held by Rimini Street stockholders prior to the consummation of the business combination, and assuming (i) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants, (ii) that the Sponsor subscribes for 3,500,000 GPIA ordinary shares pursuant to its equity commitment at or prior to the consummation of the business combination and (iii) that holders of 14,205,056 GPIA ordinary shares (or 90.5% of the outstanding public shares) (being our estimate of the maximum number of GPIA public shares that could be redeemed in order for GPIA to have $50,000,000 of available cash upon consummation of the first merger, after taking into account the Sponsor’s maximum equity commitment of $35,000,000) elect to redeem their ordinary shares in connection with the business combination), the former equityholders of Rimini Street are expected to own approximately 84.4% of RMNI’s common stock (or 73.3% of RMNI’s common stock on a fully-diluted basis) and GPIA’s current shareholders are expected to own approximately 15.6% of RMNI’s common

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stock (or 26.7% of RMNI’s common stock on a fully-diluted basis), which comprises (i) 13.1% of RMNI’s common stock (or 15.5% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s initial shareholders and (ii) 2.5% of RMNI’s common stock (or 11.3% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s public shareholders.

GPIA may enter into equity financing or debt financing in connection with the proposed business combination from the Sponsor or its affiliates or any third parties. The purposes of any such financings may include increasing the likelihood of GPIA having a minimum of $50,000,000 of available cash upon consummation of the first merger, which is a condition to consummation of the first merger. The merger agreement provides that any equity financing be contingent upon closing of the business combination and further provides that any proposed financing be subject to the mutual agreement of GPIA and Rimini Street. Any equity issuances to the Sponsor or its affiliates would increase the relative percentage ownership of the Sponsor and, accordingly, would increase the percentage ownership of the initial shareholders. Any additional equity issuances would result in dilution of the relative ownership interest of the non-redeeming public shareholders or the former equity holders of Rimini Street. As the amount of any such equity issuances is not currently known, GPIA cannot provide exact figures as to percentage ownership that may result therefrom.

GPIA has entered into a lock-up letter, dated May 16, 2017 (the “lock-up letter”), with Seth A. Ravin (as trustee of a trust holding common and preferred stock of Rimini Street), Thomas C. Shay and Adams Street Partners LLC and certain Adams Street fund limited partnerships (together, the “Lock-up Stockholders”). Pursuant to the lock-up letter, among other things, the Lock-up Stockholders have agreed not to transfer or otherwise dispose of any shares of RMNI common stock that they receive upon consummation of the business combination for a period of twelve months from the effectiveness of the first merger (the “lock-up period”), subject to certain exceptions, including, among other things, if the last sale price equals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the effectiveness of the first merger. Immediately following the consummation of the business combination (without taking into account any GPIA ordinary shares held by Rimini Street stockholders prior to the consummation of the business combination, and assuming (i) that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination, (ii) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and (iii) that no public shareholders exercise their redemption rights), the Lock-up Stockholders are expected to hold in aggregate approximately 59.8% of the outstanding RMNI common stock (or 42.5% of RMNI’s common stock on a fully-diluted basis).

Proposals to approve the merger agreement and the Rimini Street preferred stock conversion discussed in this joint proxy statement/prospectus will be presented at the a special meeting of the stockholders of Rimini Street (the “special meeting”) scheduled to be held on [•], 2017.

Proposals to approve the merger agreement and the other matters discussed in this joint proxy statement/prospectus will be presented at the extraordinary general meeting of the shareholders of GPIA (the “extraordinary general meeting”) scheduled to be held on [•], 2017.

GPIA’s units, ordinary shares and warrants are currently listed on the NASDAQ Capital Market (“NASDAQ”) under the symbols “GPIAU”, “GPIA” and “GPIAW”, respectively. GPIA has applied for listing, to be effective at the time of the business combination, of its units, common stock and warrants on NASDAQ under the proposed symbols “RMNIU”, “RMNI” and “RMNIW”, respectively. It is a condition of the consummation of the first merger that GPIA receive confirmation from NASDAQ that the combined company has been conditionally approved for listing on NASDAQ, but there can be no assurance such listing conditions will be met or that GPIA will obtain such confirmation from NASDAQ. If such listing conditions are not met or if such confirmation is not obtained, the first merger will not be consummated unless the NASDAQ condition set forth in the merger agreement is waived by the parties.

In order to consummate the business combination, Rimini Street was required to obtain the consent of a majority of the lenders under the Credit Facility as described below. Certain waiver letters, dated as of May 16, 2017, agreed to by Rimini Street and the agents and lenders provide for consent by the agents and lenders to consummate the business combination. The waiver letters also provide for the waiver of certain events of default under the Credit Facility that may arise as a result of the consummation of the business combination. As a condition to effectiveness of the waiver letters, Rimini Street is required to make a minimum payment to the lenders of $35.0 million to reduce

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certain outstanding obligations under the Credit Facility. The amendment, modification or waiver of the merger agreement in any manner that could reasonably be expected to be materially adverse to Rimini Street or the agents and lenders under the Credit Facility requires the prior written consent of the Origination Agent. There can be no assurance that GPIA, Let’s Go and Rimini Street would waive any such provision of the merger agreement, or that the agents and lenders under the Credit Facility would provide any required consents to such amendments, modifications or waivers.

Prior to consummation of the business combination, Rimini Street and GPIA may jointly elect to offer the lenders under the Credit Facility the ability to convert up to $21.0 million of obligations under the Credit Facility at $10.00 per share for 2,100,000 GPIA ordinary shares, effective immediately prior to the first merger. If Rimini Street and GPIA elect to make this offer, the lenders under the Credit Facility are under no obligation to accept it.

In this joint proxy statement/prospectus, (i) the term “ordinary shares” is used to refer to the ordinary share capital of GPIA, (ii) the term “public shares” is used to refer to the ordinary shares that were offered and sold by GPIA in its initial public offering that was registered pursuant to the Registration Statement on Form S-1 (333-203500), (iii) the term “public shareholders” refers to holders of public shares, whether acquired in GPIA’s initial public offering or acquired in the secondary market, (iv) the term “public warrants” refers to the warrants to acquire GPIA ordinary shares that were offered and sold by GPIA in its initial public offering that was registered pursuant to the Registration Statement on Form S-1 (333-203500), (v) the term “initial shareholders” means the Sponsor and GPIA’s independent directors at the time of its initial public offering, (vi) the term “founder shares” refers to the ordinary shares that are held by the Sponsor and GPIA’s independent directors, which comprise 4,312,500 ordinary shares, or 21.6% of the GPIA ordinary shares outstanding as of the date of this joint proxy statement/prospectus and (vii) unless otherwise indicated, references to “we”, “us” and “our” are intended to refer to GPIA, except that in the sections related to Rimini Street, references to “we”, “us” and “our” are intended to refer to Rimini Street.

This joint proxy statement/prospectus provides shareholders of GPIA with detailed information about the business combination and other matters to be considered at the extraordinary general meeting of GPIA’s shareholders. This joint proxy statement/prospectus provides stockholders of Rimini Street with detailed information about the business combination and other matters to be considered at the special meeting of Rimini Street’s stockholders. We encourage you to carefully read this entire document and the documents incorporated in this joint proxy statement/prospectus by reference. You should also carefully consider the risk factors described in “ Risk Factors ” beginning on page 62 of this joint proxy statement/prospectus.

These securities have not been approved or disapproved by the Securities and Exchange Commission (the “SEC”) or any state securities commission nor has the Securities and Exchange Commission or any state securities commission passed upon the accuracy or adequacy of this joint proxy statement/prospectus. Any representation to the contrary is a criminal offense.

This joint proxy statement/prospectus is dated [•], 2017, and is first being mailed to
GPIA’s shareholders and Rimini Street’s stockholders on or about [•], 2017.

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REFERENCES TO ADDITIONAL INFORMATION

This joint proxy statement/prospectus incorporates important information that is not included in or delivered with this joint proxy statement/prospectus. This information is available for you to review at the SEC’s public reference room located at 100 F Street, N.E., Room 1580, Washington, D.C. 20549, and through the SEC’s website at www.sec.gov.

You may request copies of this joint proxy statement/prospectus and any of the documents incorporated by reference into this joint proxy statement/prospectus or other publicly available information concerning GPIA, without charge, by written request to Mr. Antonio Bonchristiano, GP Investments Acquisition Corp., 150 E. 52nd Street, Suite 5003, New York, NY 10022, or by telephone request at (212) 430-4340; or Morrow Sodali LLC, our proxy solicitor, by calling (800) 662-5200, or banks and brokers can call collect at (203) 658-9400, or by emailing GPIA.info@morrowsodali.com, or from the SEC through the SEC website at the address provided above.

In order for GPIA’s shareholders to receive timely delivery of the documents in advance of the extraordinary general meeting of shareholders of GPIA to be held on [ ], 2017, you must request the information no later than five business days prior to the date of the extraordinary general meeting, by [ ], 2017.

In order for Rimini Street’s stockholders to receive timely delivery of the documents in advance of the special meeting of stockholders of Rimini Street to be held on [ ], 2017, you must request the information no later than five business days prior to the date of the special meeting, by [ ], 2017.

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this joint proxy statement/prospectus and in any document incorporated by reference in this joint proxy statement/prospectus may constitute “forward-looking statements” for purposes of the federal securities laws. Our forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. The information included in this joint proxy statement/prospectus in relation to Rimini Street has been provided by Rimini Street and its management, and forward-looking statements include statements relating to Rimini Street’s management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate”, “believe”, “contemplate”, “continue”, “could”, “estimate”, “expect”, “intends”, “may”, “might”, “plan”, “possible”, “potential”, “predict”, “project”, “should”, “will”, “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this joint proxy statement/prospectus and in any document incorporated by reference in this joint proxy statement/prospectus may include, for example, statements about:

our ability to complete the business combination with Rimini Street or, if we do not consummate the business combination, any other initial business combination;
satisfaction of conditions to the first merger, including those relating to the number and percentage of GPIA public shareholders voting against the proposals at the extraordinary general meeting and/or seeking redemption of their public shares;
the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement;
the projected financial information, anticipated growth rate, and market opportunity of Rimini Street;
the ability to obtain and/or maintain the listing of RMNI’s common stock on NASDAQ following the business combination;
our ability to raise financing in the future;
our success in retaining or recruiting, or changes required in, our officers, key employees or directors following our initial business combination;
our officers and directors allocating their time to other businesses and potentially having conflicts of interest with our business or in approving the business combination, as a result of which they would then receive expense reimbursements;
our potential ability to obtain financing to complete the business combination;
our public securities’ potential liquidity and trading;
the use of proceeds not held in the trust account or available to us from interest income on the trust account balance; and
factors relating to the business, operations and financial performance of Rimini Street, including:
Rimini Street’s substantial amount of indebtedness following the business combination;
the ability to maintain, enhance and adequately protect Rimini Street’s intellectual property rights and costs associated with defending intellectual property infringement and other claims;
Rimini Street’s ability to maintain its competitive technological advantages;
Rimini Street’s business plan, beliefs and objectives for future operations;
Rimini Street’s ability to maintain an adequate rate of revenue growth;
Rimini Street’s future financial and operating results;
Rimini Street’s ability to attract and retain customers;
Rimini Street’s ability to further penetrate its existing customer base;

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benefits associated with the use of Rimini Street’s services;
Rimini Street’s ability to maintain and expand its leadership position in independent enterprise software support;
Rimini Street’s ability to timely and effectively scale and adapt its existing technology;
the evolution of the enterprise software support landscape facing Rimini Street’s customers and prospects;
Rimini Street’s ability to educate the market regarding the advantages of its enterprise software support products;
Rimini Street’s plans to further invest in and grow its business, and Rimini Street’s ability to effectively manage its growth and associated investments;
Rimini Street’s ability to expand its support to new vendors and products and bring them to market in a timely manner;
Rimini Street’s ability to capitalize on changing market conditions including a market shift to hybrid information technology environments;
the effects of increased competition and competitive pressures in the market which Rimini Street operates and its ability to compete effectively;
Rimini Street’s ability to expand internationally;
Rimini Street’s ability to develop strategic partnerships;
Rimini Street’s ability to attract, train, and retain qualified employees and key personnel;
the effects of sales cycles on Rimini Street’s results of operations; and
other factors detailed under the section entitled “ Risk Factors—Risks Related to Rimini Street’s Business, Operations and Industry ”.

The forward-looking statements contained in this joint proxy statement/prospectus and in any document incorporated by reference in this joint proxy statement/prospectus are based on current expectations and beliefs concerning future developments and their potential effects on us and/or Rimini Street. There can be no assurance that future developments affecting us and/or Rimini Street will be those that we and/or Rimini Street have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control or the control of Rimini Street) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under the heading “ Risk Factors ” beginning on page 62 of this joint proxy statement/prospectus. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We and/or Rimini Street undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Before (i) a GPIA shareholder grants its proxy or instructs how its vote should be cast or vote on the proposals to be put to the extraordinary general meeting, or (ii) a Rimini Street stockholder grants its proxy or instructs how its vote should be cast or vote on the proposals to be put to the special meeting, it should be aware that the occurrence of the events described in the “Risk Factors” section and elsewhere in this joint proxy statement/prospectus may adversely affect Rimini Street, GPIA, or, following the consummation of the business combination, RMNI.

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QUESTIONS AND ANSWERS FOR ALL SHAREHOLDERS

Q: Why am I receiving this joint proxy statement/prospectus?
A: GPIA is proposing to enter into a business combination with Rimini Street. GPIA and Rimini Street have agreed to a business combination under the terms of the Agreement and Plan of Merger, dated as of May 16, 2017, as amended by Amendment No. 1 thereto, dated June 30, 2017, which is described in this joint proxy statement/prospectus and is referred to, as so amended, as the “merger agreement”. Copies of the merger agreement and the merger agreement amendment are attached to this joint proxy statement/prospectus as Annex A and Annex B, respectively, and you are encouraged to read the merger agreement in its entirety. Pursuant to the merger agreement, and following the domestication of GPIA to Delaware, Let’s Go, GPIA’s wholly-owned subsidiary, will merge with and into Rimini Street, with Rimini Street as the surviving corporation (which we refer to as the first merger). The surviving corporation from the first merger will then merge with and into GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), with GP Investments Acquisition Corp. being the surviving corporation (which we refer to as the second merger) and renamed “Rimini Street, Inc.” immediately after consummation of the second merger. Therefore, the business combination will be an integrated transaction resulting in Rimini Street merging with and into Rimini Street, Inc. (a corporation incorporated in the State of Delaware, as renamed immediately after consummation of the second merger).

Consummation of the business combination requires the approval of (i) GPIA shareholders holding a majority of the outstanding ordinary shares voting at an extraordinary general meeting of shareholders that is being called by GPIA and (ii) the holders of (a) the majority of the voting power of shares of Rimini Street capital stock, (b) more than 50% of the outstanding shares of Rimini Street Series B Preferred Stock and Series C Preferred Stock, voting as a single class on an as-converted basis (each holder of Rimini Street Preferred Stock shall be entitled to the number of votes equal to the number of shares of Rimini Street Class B Common Stock or Rimini Street Class A Common Stock, as applicable, into which the shares of Rimini Street Preferred Stock held by such holder could be converted as of the record date), and (c) the majority of the outstanding shares of Rimini Street Class A Common Stock and Rimini Street Class B Common Stock, voting as a single class, voting at a special meeting of stockholders that is being called by Rimini Street.

On the effective date of the domestication, each currently issued and outstanding ordinary share, par value $0.0001 per share, of GPIA will automatically convert by operation of law, on a one-for-one basis, into shares of common stock, par value $0.0001 per share, of GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), which will be renamed “Rimini Street, Inc.” immediately after consummation of the second merger.

THE VOTE OF SHAREHOLDERS IS IMPORTANT. SHAREHOLDERS ARE ENCOURAGED TO VOTE AS SOON AS POSSIBLE AFTER CAREFULLY REVIEWING THIS JOINT PROXY STATEMENT/PROSPECTUS.

Q: Why is GPIA and Rimini Street proposing the business combination?
A: GPIA was organized to effect a merger, capital stock exchange, asset acquisition or other similar business combination with one or more businesses or entities. Rimini Street is a global provider of enterprise software products and services, and the leading independent support provider for Oracle and SAP products, based on the number of clients supported. Based on its due diligence investigations of Rimini Street and the industry in which it operates, including the financial and other information provided by Rimini Street in the course of GPIA’s due diligence investigations, GPIA believes that a business combination with Rimini Street presents a unique business combination opportunity given Rimini Street’s year-over-year growth rate and low valuation multiple compared to public company peers. The GPIA board of directors believes that, in light of the foregoing, the business combination with Rimini Street presents an opportunity to increase shareholder value. However, there is no assurance of this. See “ GPIA Business Combination Proposal—GPIA’s Board of Directors’ and the Special Transaction Committee’s Reasons for the Business Combination ”.
Q: What will Rimini Street’s stockholders receive in return for the acquisition of Rimini Street by GPIA?
A: In accordance with the terms and subject to the conditions of the merger agreement, upon completion of the first merger, each share of outstanding Rimini Street common stock (other than shares of common stock, if any, held

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as treasury stock, which will be cancelled upon the effectiveness of the business combination) will be cancelled and converted into and become the right to receive the applicable portion of the merger consideration. Further, whether vested or unvested, each vested or unvested option to purchase shares of the common stock of Rimini Street under an incentive plan automatically will be cancelled and converted into the right to receive the applicable portion of the merger consideration as more particularly set forth in the merger agreement.

In accordance with the terms and subject to the conditions of the merger agreement and subject to certain adjustments set forth therein, the aggregate purchase price for the first merger and related transactions is $775 million, which amount will be (i) reduced by, among other things set forth in the merger agreement, the amount of the indebtedness of Rimini Street existing on the Closing Date (as defined in the merger agreement) of the first merger (including all make-whole obligations and exit or similar fees payable to any third party), (ii) increased by, among other things set forth in the merger agreement, the cash and cash equivalents held by or on behalf of Rimini Street on the Closing Date (as defined in the merger agreement) of the first merger, and (iii) decreased by the unpaid transaction fees and expenses associated with the business combination incurred by Rimini Street and its subsidiaries. The merger consideration is payable entirely in newly issued common stock of RMNI based on a per share issue price of $10.00 per share.

The precise amount of such adjustments is to be calculated as of the Closing Date and is therefore not currently known. However, based on an illustrative Closing Date of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), GPIA estimates a downward adjustment of approximately $156.5 million. This estimated adjustment is based on an illustrative Closing Date of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus) and such downward adjustment represents the net result of (i) a $175.3 million reduction in respect of the amount of the indebtedness of Rimini Street existing on the Closing Date (as defined in the merger agreement) of the first merger (including all make-whole obligations and exit or similar fees payable to any third party), (ii) a $32.4 million increase in respect of the cash and cash equivalents held by or on behalf of Rimini Street on the Closing Date (as defined in the merger agreement) of the first merger, and (iii) a $13.6 million reduction in respect of unpaid transaction fees and expenses associated with the first merger incurred by Rimini Street and its subsidiaries. Based on such estimated adjustment, upon consummation of the business combination the stockholders of Rimini Street immediately prior to consummation of the first merger will receive an aggregate number of shares of RMNI common stock equating to approximately $618.5 million (based on a per share issue price of $10.00 per share). The merger consideration is subject to adjustment to appropriately reflect the effect of any stock split, reverse stock split, stock dividend, reorganization, recapitalization, reclassification, combination, exchange of shares or other like change prior to consummation of the first merger, although no such events are currently contemplated.

It is currently expected that the business combination will be consummated by August 31, 2017. The estimation of the merger consideration described above is based on Rimini Street financial data as of May 31, 2017 and will change based upon, among other things, (i) the total debt obligations of Rimini Street on the Closing Date, which fluctuate in the ordinary course of business (including as a result of scheduled payments in respect of the Credit Facility between May 31, 2017 and August 31, 2017) and (ii) the cash and cash equivalents of Rimini Street on the Closing Date, which fluctuate in the ordinary course of business, including as a result of debt amortization payments.

Q: What equity stake will current GPIA shareholders and current Rimini Street stockholders hold in RMNI immediately after the consummation of the business combination?
A: Assuming consummation of the business combination as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), immediately following the consummation of the business combination (without taking into account any GPIA ordinary shares held by Rimini Street stockholders prior to the consummation of the business combination, and assuming (i) that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination, (ii) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and

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warrants and (iii) that no public shareholders exercise their redemption rights), the former equityholders of Rimini Street are expected to own approximately 71.5% of the outstanding RMNI common stock and the current holders of GPIA ordinary shares are expected to own approximately 28.5% of the outstanding RMNI common stock.

Assuming consummation of the business combination as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), immediately following the consummation of the business combination (without taking into account any GPIA ordinary shares held by Rimini Street stockholders prior to the consummation of the business combination), and assuming (i) that the Sponsor subscribes for 3,500,000 GPIA ordinary shares pursuant to its equity commitment at or prior to the consummation of the business combination, (ii) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants and (iii) that holders of 14,205,056 GPIA ordinary shares (or 90.5% of the outstanding public shares) (being our estimate of the maximum number of GPIA public shares that could be redeemed in order for GPIA to have $50,000,000 of available cash upon consummation of the first merger, after taking into account the Sponsor’s maximum equity commitment of $35,000,000) elect to redeem their ordinary shares in connection with the business combination, the former equityholders of Rimini Street are expected to own approximately 84.4% of the outstanding RMNI common stock and the current holders of GPIA ordinary shares are expected to own approximately 15.6% of the outstanding RMNI common stock.

There are currently outstanding an aggregate of 14,687,500 warrants to acquire GPIA ordinary shares, which comprise the 6,062,500 private placement warrants held by the Sponsor and the 8,625,000 public warrants, of which 52,100 are held by an affiliate of the Sponsor. Each of the 17,250,000 units issued in our initial public offering contains one-half of a warrant. As of the date of this joint proxy statement/prospectus, there were 571,645 units outstanding. Each warrant entitles the holder thereof to purchase one GPIA ordinary share and, following the domestication, will entitle the holder thereof to purchase one RMNI common share. Therefore, as of the date of this joint proxy statement/prospectus, if we assume that each outstanding warrant is exercised and one ordinary share is issued as a result of such exercise, our fully-diluted share capital would be 34,697,276 ordinary shares.

Assuming consummation of the business combination as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), immediately following the consummation of the business combination (without taking into account any GPIA ordinary shares held by Rimini Street stockholders prior to the consummation of the business combination, assuming (i) that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination, (ii) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants and (iii) that no public shareholders exercise their redemption rights), calculated on a fully-diluted basis, the former equityholders of Rimini Street are expected to own approximately 65.5% of the fully-diluted share capital of RMNI and the current holders of GPIA ordinary shares are expected to own approximately 34.5% of the fully-diluted share capital of RMNI.

Assuming consummation of the business combination as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), immediately following the consummation of the business combination (without taking into account any GPIA ordinary shares held by Rimini Street stockholders prior to the consummation of the business combination, assuming (i) that the Sponsor subscribes for 3,500,000 GPIA ordinary shares pursuant to its equity commitment at or prior to the consummation of the business combination, (ii) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834

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shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants and (iii) that holders of 14,205,056 GPIA ordinary shares (or 90.5% of the outstanding public shares) (being our estimate of the maximum number of GPIA public shares that could be redeemed in order for GPIA to have $50,000,000 of available cash upon consummation of the first merger, after taking into account the Sponsor’s maximum equity commitment of $35,000,000)), calculated on a fully-diluted basis, the former equityholders of Rimini Street are expected to own approximately 73.3% of the fully-diluted share capital of RMNI and the current holders of GPIA ordinary shares are expected to own approximately 26.7% of the fully-diluted share capital of RMNI.

Q: Why is GPIA proposing the domestication?
A: Our board of directors believes that there are significant advantages to RMNI that will arise as a result of a change of domicile to Delaware. Further, our board of directors believes that any direct benefit that Delaware law provides to a corporation also indirectly benefits the stockholders, who are the owners of the corporation. The board of directors believes that there are several reasons why a reincorporation in Delaware is in the best interests of Company and its shareholders, including, (i) the prominence, predictability and flexibility of Delaware law, (ii) Delaware’s well-established principles of corporate governance and (iii) the increased ability for Delaware corporations to attract and retain qualified directors, each of foregoing as discussed in greater detail in the section entitled “ GPIA Domestication Proposal—Reasons for the Domestication ”.

To effect the domestication, GPIA will file a notice of deregistration with the Cayman Islands Registrar of Companies, together with the necessary accompanying documents, and file a certificate of incorporation and a certificate of corporate domestication with the Secretary of State of the State of Delaware, under which GPIA will be domesticated and continue as a Delaware corporation.

The approval of the domestication proposal is a condition to the closing of the merger agreement. The approval of the domestication proposal requires a special resolution under the Cayman Islands Companies Law, being the affirmative vote of the holders of at least two-thirds of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

Q: What happens to the funds deposited in the trust account after consummation of the business combination?
A: Following the closing of our initial public offering, an amount of $172,500,000 ($10.00 per share) from the net proceeds of our initial public offering and the sale of the private placement warrants was placed in a trust account maintained by Continental Stock Transfer & Trust Company, acting as trustee, and the remaining $967,000 of net proceeds became available to be used as working capital to provide for business, legal and accounting due diligence on prospective business combinations and continuing general and administrative expenses. As of March 31, 2017, there was cash and marketable securities held in the trust account of $173,227,105 and, as of May 25, 2017 (after giving effect to the redemptions of public shares redeemed in connection with the Extension), there was cash and marketable securities held in the trust account of $157,791,185. These funds will not be released until the earlier of the completion of our initial business combination or the redemption of our public shares if we are unable to complete a business combination by November 27, 2017, although we may withdraw the interest earned on the funds held in the trust account to pay franchise and income taxes.

As disclosed in connection with our initial public offering on a registration statement filed with the Securities and Exchange Commission on Form S-1 (Reg. No. 333-203500) that became effective on May 19, 2015, if our initial business combination (as defined in the amended and restated memorandum and articles of association of GPIA (as amended by a special resolution of shareholders passed on May 23, 2017) (our “memorandum and articles of association”)) is paid for using equity or debt securities, or not all of the funds released from the trust account are used for payment of the consideration in connection with our initial business combination or used for redemptions of our ordinary shares, we may apply the balance of the cash released to us from the trust account for general corporate purposes, including for maintenance or expansion of operations of post-transaction businesses, the payment of principal or interest due on indebtedness incurred in completing our initial business combination, to fund the purchase of other companies or for working capital.

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Accordingly, after consummation of the business combination and after payment to redeeming shareholders, the funds in the trust account will be released to RMNI (as successor to GPIA as a result of the domestication) and used by RMNI to pay expenses incurred by GPIA and Rimini Street in connection with the business combination. Such expenses include, among others (i) a fee to the underwriters of our initial public offering of $6,037,500, (ii) fees and expenses payable to our investment banking advisors for merger and acquisition advisory services of approximately $9.5 million and (iii) professional fees and expenses of our consultants, accountants and legal counsel of approximately $7.8 million. Any remaining balance in the trust account would thereafter be available for general corporate purposes, including, but not limited to, the prepayment of amounts owed under the Credit Facility (as described below) and to provide working capital for operations.

In order to consummate the business combination, Rimini Street was required to obtain the consent of a majority of the lenders under the Credit Facility. Certain waiver letters, dated as of May 16, 2017, agreed to by Rimini Street and the agents and lenders provide for consent by the agents and lenders to consummate the business combination. The waiver letters also provide for the waiver of certain events of default under the Credit Facility that may arise as a result of the consummation of the business combination. As a condition to effectiveness of the waiver letters, Rimini Street is required to make a minimum payment to the lenders of $35.0 million to reduce certain outstanding obligations under the Credit Facility.

Q: What happens if a substantial number of the public shareholders vote in favor of the business combination proposal and exercise their redemption rights?
A: GPIA’s public shareholders are not required to vote in respect of the business combination in order to exercise their redemption rights. Accordingly, the business combination may be consummated even though the funds available from the trust account and the number of public shareholders are reduced as a result of redemptions by public shareholders.

Under the merger agreement, the consummation of the first merger is conditioned upon, among other things, (i) there being a minimum of $50,000,000 of cash available to GPIA (including the cash in our trust account and any cash provided by the Sponsor pursuant to its equity commitment) and (ii) there being a minimum amount of immediately available cash in the trust account of not less than $5,000,001 after giving effect to the redemption of GPIA ordinary shares that holders of GPIA ordinary shares validly elected to redeem in connection with the first merger. Therefore, unless these conditions are waived by GPIA, Let’s Go and Rimini Street, the merger agreement could terminate and the proposed first merger may not be consummated. In addition, the amendment, modification or waiver of the merger agreement in any manner that could reasonably be expected to be materially adverse to Rimini Street or the agents and lenders under the Credit Facility requires the prior written consent of the Origination Agent. There can be no assurance that GPIA, Let’s Go and Rimini Street would waive any such provision of the merger agreement, or that the agents and lenders under the Credit Facility would provide any required consents to such amendments, modifications or waivers. Furthermore, as provided in our memorandum and articles of association, in no event will we redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001.

In addition, with fewer public shares and public shareholders, the trading market for RMNI’s common stock may be less liquid than the market for GPIA’s ordinary shares was prior to consummation of the business combination and RMNI may not be able to meet the listing standards for NASDAQ or another national securities exchange. In addition, with less funds available from the trust account, the working capital infusion from the trust account into Rimini Street’s business will be reduced.

Q: What conditions must be satisfied to complete the first merger?
A: Unless waived by the parties to the merger agreement, and subject to applicable law, the consummation of the first merger is subject to a number of conditions set forth in the merger agreement including, among others, receipt of the requisite shareholder approvals contemplated by this joint proxy statement/prospectus.

The amendment, modification or waiver of the merger agreement in any manner that could reasonably be expected to be materially adverse to Rimini Street or the agents and lenders under the Credit Facility requires the prior written consent of the Origination Agent. There can be no assurance that GPIA, Let’s Go and Rimini Street would waive any such provision of the merger agreement, or that the agents and lenders under the Credit Facility would provide any required consents to such amendments, modifications or waivers.

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For more information about conditions to the consummation of the first merger see “ GPIA Business Combination Proposal—The Merger Agreement—Conditions to Closing of the First Merger ”.

Q: When do you expect the business combination to be completed?
A: It is currently expected that the business combination will be consummated by August 31, 2017. This date depends, among other things, on the approval of the proposals to be put to GPIA shareholders at the extraordinary general meeting. However, such meeting could be adjourned if the adjournment proposal is adopted by our shareholders at the extraordinary general meeting and we elect to adjourn the extraordinary general meeting to a later date or dates to permit further solicitation and vote of proxies if, based upon the tabulated vote at the time of the extraordinary general meeting, each of the condition precedent proposals have not been approved. For a description of the conditions for the completion of the first merger see “ GPIA Business Combinatio n Proposal The Merger Agreement—Conditions to Closing of the First Merger ”.

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QUESTIONS AND ANSWERS FOR SHAREHOLDERS OF GPIA

Q: What proposals are shareholders of GPIA being asked to vote upon?
A: Under the merger agreement, the approval of the business combination proposal, the domestication proposal, the organizational documents proposals and the stock issuance proposal (which we sometimes refer to as the “condition precedent proposals”) are conditions to the consummation of the first merger. If our public shareholders do not approve each of the condition precedent proposals, then unless this condition is waived by GPIA, Let’s Go and Rimini Street, the merger agreement could terminate and the proposed first merger may not be consummated. The amendment, modification or waiver of the merger agreement in any manner that could reasonably be expected to be materially adverse to Rimini Street or the agents and lenders under the Credit Facility requires the prior written consent of the Origination Agent. There can be no assurance that GPIA, Let’s Go and Rimini Street would waive any such provision of the merger agreement, or that the agents and lenders under the Credit Facility would provide any required consents to such amendments, modifications or waivers.

In addition to the foregoing proposals, the shareholders also may be asked to consider and vote upon a proposal to adjourn the extraordinary general meeting to a later date or dates to permit further solicitation and vote of proxies if, based upon the tabulated vote at the time of the extraordinary general meeting, each of the condition precedent proposals have not been approved. See “ GPIA Adjournment Proposal ”.

GPIA will hold the extraordinary general meeting of its shareholders to consider and vote upon these proposals. This joint proxy statement/prospectus contains important information about the proposed business combination and the other matters to be acted upon at the extraordinary general meeting. Shareholders of GPIA should read it carefully.

After careful consideration, GPIA’s board of directors has determined that the business combination proposal, the domestication proposal, each of the organizational documents proposals, the stock issuance proposal and the adjournment proposal are in the best interests of GPIA and its shareholders and unanimously recommends that you vote or give instruction to vote “FOR” each of those proposals.

The existence of financial and personal interests of one or more of GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

THE VOTE OF SHAREHOLDERS IS IMPORTANT. SHAREHOLDERS ARE ENCOURAGED TO VOTE AS SOON AS POSSIBLE AFTER CAREFULLY REVIEWING THIS JOINT PROXY STATEMENT/PROSPECTUS.

Q: What amendments will be made to the current constitutional documents of GPIA?
A: The consummation of the first merger is conditional, among other things, on the domestication of GPIA to Delaware. Accordingly, in addition to voting on the business combination, GPIA’s shareholders also are being asked to consider and vote upon a proposal to (i) approve a change of GPIA’s jurisdiction of incorporation by deregistering as an exempted company in the Cayman Islands and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware, which is referred to as the “domestication”, and replace our current memorandum and articles of association (the “Existing Organizational Documents”), in each case, under the Cayman Islands Companies Law (2016 Revision) (the “Cayman Islands Companies Law”) with a new certificate of incorporation (the “Proposed Charter”) and bylaws (the “Proposed Bylaws” and, together with the Proposed Charter, the “Proposed Organizational Documents”) of RMNI, in each case, under the Delaware General Corporation Law (the “DGCL”), which differ materially from the Existing Organizational Documents in the following respects:

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Existing Organizational Documents
Proposed Organizational Documents
Authorized Shares
( Organizational Documents
Proposal A )
The Existing Organizational Documents authorize 420,000,000 shares, consisting of 400,000,000 common shares and 20,000,000 preferred shares.
The Proposed Organizational Documents authorize 1,100,000,000 shares, consisting of 1,000,000,000 shares of common stock and 100,000,000 shares of preferred stock.
 
See paragraph 5 of our current memorandum and articles of association.
See Article IV of the Proposed Charter.
 
 
 
Authorize the Board of Directors to Issue Preferred Stock Without Stockholder Consent
( Organizational Documents Proposal B )
The Existing Organizational Documents authorize the issuance of 20,000,000 preferred shares with such designation, rights and preferences as may be determined from time to time by our board of directors. Accordingly, our board of directors is empowered under the Existing Organizational Documents, without shareholder approval, to issue preferred shares with dividend, liquidation, redemption, voting or other rights which could adversely affect the voting power or other rights of the holders of ordinary shares.
The Proposed Organizational Documents authorize the board of directors to issue all or any shares of preferred stock in one or more classes or series and to fix for each such class or series such voting powers, full or limited, or no voting powers, and such distinctive designations, preferences and relative, participating, optional or other special rights and such qualifications, limitations or restrictions thereof, as the board of directors may determine.
 
See paragraph 5 andArticle 3 of our current memorandum and articles of association.
See Article IV of the Proposed Charter.
 
 
 
Removal of Directors
Only For Cause
( Organizational Documents Proposal C )
Upon the first to occur of the consummation of any business combination and the distribution of the trust fund, the Existing Organizational Documents provide that the directors of GPIA may be removed by an ordinary resolution (being a resolution passed by a simple majority of the shareholders as, being entitled to do so, vote at a general meeting and includes an unanimous written resolution).
The Proposed Organizational Documents provide that the directors of RMNI may only be removed for cause. Additionally, a decrease in the size of the board of directors will not have the effect of removing any incumbent director before his or her term expires.
 
See Article 28 of our current memorandum and articles of association.
See Article V of the Proposed Charter
and
Section 3.11 of the Proposed Bylaws.
 
 
 
Ability of Stockholders to Call a Special Meeting
( Organizational Documents Proposal D )
The Existing Organizational Documents provide that the board of directors shall, on a shareholders’ requisition, proceed to convene an extraordinary general meeting of GPIA, provided that the requesting shareholder holds not less than 10%
The Proposed Organizational Documents do not permit the stockholders of RMNI to call a special meeting.

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Existing Organizational Documents
Proposed Organizational Documents
 
in par value of the issued shares entitled to vote at a general meeting.
 
 
See Article 19 of the Existing Articles.
See Article VIII of the Proposed Charter.
 
 
 
Shareholder/Stockholder Written Consent In Lieu of a Meeting
( Organizational Documents Proposal E )
The Existing Organizational Documents provide that resolutions may be passed by a vote in person, by proxy at a general meeting, or by unanimous written resolution.
The Proposed Organizational Documents allow stockholders to vote in person or by proxy at a meeting of stockholders, but prohibit the ability of stockholders to act by written consent in lieu of a meeting.
 
See Article 1 of our current memorandum and articles of associations.
See Article VIII of the Proposed Charter.
 
 
 
Amendments of Organizational Documents
( Organizational Documents Proposal F )
The Existing Organizational Documents require a special resolution (being either (i) a resolution passed by a majority of at least two-thirds of GPIA’s shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting of which notice specifying the intention to propose the resolution as a special resolution or (ii) a unanimous written resolution of GPIA’s shareholders) to amend the Existing Organizational Documents.
The Proposed Organizational Documents require the affirmative vote of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of RMNI’s then outstanding capital stock entitled to vote to amend either of the Proposed Charter (other than the articles thereof relating to RMNI’s name, address and registered office, purpose and matters related to RMNI’s common and preferred stock) and the Proposed Bylaws, subject to certain exceptions.
 
See Article 17 of our current memorandum and articles of association.
See Articles XI of the Proposed Charter and the Section 10 of the Proposed Bylaws.
 
 
 
Corporate Name
( Organizational Documents Proposal G )
The Existing Organizational Documents provide the name of the company is “GP Investments Acquisition Corp.”.
The Proposed Organizational Documents will be further amended immediately after the consummation of the second merger to provide that the name of the corporation will be “Rimini Street, Inc.”.
 
 
 
 
See paragraph 1 of our current memorandum and articles of association.
As this name change will occur immediately after the consummation of the second merger, and therefore, after the corporation’s domestication in Delaware and associated adoption of the Proposed Organizational Documents, the name of the corporation as it appears in the Proposed Organizational Documents attached as Annex D and Annex E to this joint proxy statement/prospectus and to be in effect as of the domestication will be “GP Investments Acquisition Corp.”.

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Existing Organizational Documents
Proposed Organizational Documents
Perpetual Existence
( Organizational Documents Proposal G )
The Existing Organizational Documents provide that if we do not consummate a business combination (as defined in the Existing Organizational Documents) by November 27, 2017 (as amended by a special resolution of shareholders passed on May 23, 2017), GPIA shall cease all operations except for the purposes of winding up and shall redeem the shares issued in our initial public offering and liquidate our trust account.
The Proposed Organizational Documents do not include any provisions relating to RMNI’s ongoing existence; the default under the DGCL will make RMNI’s existence perpetual.
   
This is the default rule under the DGCL.
 
 
 
 
See Article 48 of our current memorandum and articles of association.
   
 
 
 
Exclusive Jurisdiction
( Organizational Documents Proposal G )
The Existing Organizational Documents do not contain a provision adopting an exclusive forum for certain stockholder litigation.
The Proposed Organizational Documents adopt Delaware as the exclusive forum for certain stockholder litigation.
 
See Article 48 of our current memorandum and articles of association.
See Section 9.5 of the Proposed Bylaws.
 
 
 
Provisions Related to Status as Blank Check Company
( Organizational Documents Proposal G )
The Existing Organizational Documents set forth various provisions related to our status as a blank check company prior to the consummation of a business combination.
The Proposed Organizational Documents do not include such provisions related to our status as a blank check company, which no longer will apply upon consummation of the business combination, as we will cease to be a blank check company at such time.
 
See Article 48 of our current memorandum and articles of association.
 
Q: What material negative factors did GPIA’s board of directors consider in connection with the business combination?
A: Although the GPIA board of directors believes that a business combination with Rimini Street presents a unique business combination opportunity given Rimini Street’s year-over-year growth rate and low valuation multiple compared to public company peers, the board of directors did consider certain potentially material negative factors in arriving at that conclusion.

These factors include, among others, Rimini Street is involved in ongoing litigation with Oracle, without near term visibility as to litigation outcome; Rimini Street has sizeable debt in place, not all of which will be repaid at consummation of the business combination; Rimini Street may face increased competition in the marketplace as its business grows in share and prominence, and as competitors are attracted to the market opportunity; Rimini Street may experience an increase in the cost of delivering its service based on the cost of hiring experienced software engineers; Rimini Street could face impediments to its continued growth if it is unable to

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continue hiring effective salespeople to win new business, or if its existing salespeople experience lower productivity; Rimini Street faces a business threat of customer migration to enterprise software vendors, products and releases for which it does not provide software products or services, as customers may choose to abandon their existing enterprise software solutions in favor of such offerings; Rimini Street could face a business risk from an intellectual property perspective if customers’ software licenses do not permit Rimini Street to service the software; Rimini Street could be challenged to sufficiently service new software applications as the underlying technology continues to evolve; and Rimini Street could experience slower growth if customers upgrade or otherwise renew their maintenance agreements with their legacy software vendor.

These factors are discussed in greater detail in the section entitled “ GPIA Business Combination Proposal—GPIA’s Board of Director’s and the Special Transaction Committee’s Reasons for the Business Combination ”, as well as in the sections entitled “ Risk Factors—Risks Related to Rimini Street’s Business Operations and Industry ”.

Q: How will the domestication affect my GPIA ordinary shares, warrants and units?
A: On the effective date of the domestication, each GPIA ordinary share that is issued and outstanding will automatically convert by operation of law into one share of RMNI common stock. Similarly, outstanding warrants of GPIA will become warrants to acquire the corresponding shares of RMNI common stock and no other changes will be made to the terms of any outstanding warrants as a result of the domestication. In addition, outstanding units of GPIA will become units of RMNI and no other changes will be made to the terms of any outstanding units as a result of the domestication.
Q: Do I have redemption rights?
A: If you are a holder of public shares, you have the right to request that RMNI redeem all or a portion of the shares of RMNI’s common stock that you will hold following the domestication for cash provided that you follow the procedures and deadlines described elsewhere in this joint proxy statement/prospectus. Public shareholders may elect to redeem all or a portion of the shares of RMNI’s common stock held by such public stockholder following the domestication regardless of if or how they vote in respect of the business combination proposal . We sometimes refer to these rights to elect to redeem all or a portion of the shares of RMNI common stock that a public stockholder will hold following the domestication into a pro rata portion of the cash held in the trust account as “redemption rights”. If you wish to exercise your redemption rights, please see the answer to the next question: “ How do I exercise my redemption rights?

Notwithstanding the foregoing, a holder of public shares, together with any affiliate of such public shareholder or any other person with whom such public shareholder is acting in concert or as a “group” (as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (“Exchange Act”)), will be restricted from redeeming its RMNI public shares with respect to more than an aggregate of 20% of the public shares. Accordingly, if a public shareholder, alone or acting in concert or as a group, seeks to redeem more than 20% of the public shares, then any such shares in excess of that 20% limit would not be redeemed for cash.

Our initial shareholders entered into the insider letter agreement, pursuant to which they have agreed to waive their redemption rights with respect to their founder shares and public shares in connection with the completion of a business combination.

Under the merger agreement, the consummation of the merger is conditioned upon, among other things, (i) there being a minimum of $50,000,000 of cash available to GPIA (including the cash in our trust account and any cash provided by the Sponsor pursuant to its equity commitment) and (ii) there being a minimum amount of immediately available cash in the trust account of not less than $5,000,001 after giving effect to the redemption of GPIA ordinary shares that holders of GPIA ordinary shares validly elected to redeem in connection with the business combination. Therefore, unless these conditions are waived by GPIA, Let’s Go and Rimini Street, the merger agreement could terminate and the proposed business combination may not be consummated. The amendment, modification or waiver of the merger agreement in any manner that could reasonably be expected to be materially adverse to Rimini Street or the agents and lenders under the Credit Facility requires the prior written consent of the Origination Agent. There can be no assurance that GPIA, Let’s Go and Rimini Street would waive any such provision of the merger agreement, or that the agents and lenders under the Credit Facility would provide any required consents to such amendments, modifications or waivers. Furthermore, as provided

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in our memorandum and articles of association, in no event will we redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001 (so that we are not subject to the SEC’s “penny stock” rules).

Q: How do I exercise my redemption rights?
A: If you are a holder of public shares and wish to exercise your right to redeem the RMNI public shares that you will hold upon the domestication, you must:
(i) if you hold ordinary shares through units, elect to separate your units into the underlying public shares and public warrants prior to exercising your redemption rights with respect to the public shares;
(ii) submit a written request to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, that RMNI redeem all or a portion of your RMNI public shares for cash, and
(iii) deliver your ordinary shares to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, physically or electronically through Depository Trust Company, or DTC.

Holders of GPIA public shares should complete the procedures for electing to redeem their GPIA public shares in the manner described above prior to 5:00 p.m. Eastern Time on [ ], 2017 (two business days before the extraordinary general meeting).

The address of Continental Stock Transfer & Trust Company, GPIA’s transfer agent, is listed under the question “ Who can help answer my questions ?” below.

Holders of units must elect to separate the underlying public shares and public warrants prior to exercising redemption rights with respect to the public shares. If holders hold their units in an account at a brokerage firm or bank, holders must notify their broker or bank that they elect to separate the units into the underlying public shares and public warrants, or if a holder holds units registered in its own name, the holder must contact Continental Stock Transfer & Trust Company, GPIA’s transfer agent, directly and instruct them to do so.

Any holder of public shares will be entitled to request that their RMNI public shares be redeemed for a pro rata portion of the amount then on deposit in the trust account as of two business days prior to the consummation of the business combination including interest earned on the funds held in the trust account and not previously released to us. For illustrative purposes, as of May 25, 2017 (after giving effect to the redemptions of public shares redeemed in connection with the Extension (as defined below)), this would have amounted to approximately $10.05 per public share. However, the proceeds deposited in the trust account could become subject to the claims of our creditors, if any, which could have priority over the claims of our public shareholders, regardless of whether such public shareholders vote for or against the business combination proposal. Therefore, the per share distribution from the trust account in such a situation may be less than originally expected due to such claims. Your vote on any proposal other than the business combination proposal will have no impact on the amount you will receive upon exercise of your redemption rights. It is expected that the funds to be distributed to public shareholders electing to redeem their RMNI public shares will be distributed promptly after the consummation of the business combination.

If you are a holder of public shares, you may exercise your redemption rights by submitting your request in writing to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, at the address listed at the end of this section.

Any request for redemption, once made by a holder of public shares, may be withdrawn at any time up to the time the vote is taken with respect to the business combination proposal at the extraordinary general meeting. If you deliver your shares for redemption to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, and later decide prior to the extraordinary general meeting not to elect redemption, you may request that GPIA instruct its transfer agent to return the shares (physically or electronically). You may make such request by contacting Continental Stock Transfer & Trust Company, GPIA’s transfer agent, at the phone number or address listed at the end of this section.

Any corrected or changed written exercise of redemption rights must be received by Continental Stock Transfer & Trust Company, GPIA’s transfer agent, prior to the vote taken on the business combination proposal at the extraordinary general meeting. No request for redemption will be honored unless the holder’s stock has been delivered (either physically or electronically) to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, at least two business days prior to the vote at the extraordinary general meeting.

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If a holder of public shares properly makes a request for redemption and the public shares are delivered as described above, then, if the business combination is consummated, RMNI will redeem RMNI public shares for a pro rata portion of funds deposited in the trust account, calculated as of two business days prior to the consummation of the business combination.

If you are a holder of public shares and you exercise your redemption rights, it will not result in the loss of any GPIA warrants that you may hold.

Q: If I am a holder of units, can I exercise redemption rights with respect to my units?
A: No. Holders of outstanding units must elect to separate the units into the underlying public shares and public warrants prior to exercising redemption rights with respect to the public shares. If you hold your units in an account at a brokerage firm or bank, you must notify your broker or bank that you elect to separate the units into the underlying public shares and public warrants, or if you hold units registered in your own name, you must contact Continental Stock Transfer & Trust Company, GPIA’s transfer agent, directly and instruct them to do so. You are requested to cause your public shares to be separated and delivered to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, by 5:00 p.m., Eastern Time, on [•], 2017 in order to exercise your redemption rights with respect to your public shares.
Q: What happens if the business combination is not consummated?
A: GPIA will not complete the domestication to Delaware unless all other conditions to the consummation of the mergers have been satisfied. If we are not able to complete the business combination with Rimini Street by August 31, 2017 (or, subject to the conditions in the merger agreement pursuant to which this date may be extended by GPIA, November 17, 2017), nor able to complete another business combination by November 27, 2017, we would cease all operations except for the purpose of winding up and we would redeem our public shares and liquidate the trust account, in which case our public shareholders may only receive approximately $10.05 per share and our warrants will expire worthless.
Q: What are the U.S. federal income tax consequences of exercising my redemption rights?
A: We expect that a GPIA shareholder that exercises its redemption rights to receive cash from the trust account in exchange for its RMNI shares will generally be treated as selling RMNI shares resulting in the recognition of capital gain or capital loss. There may be certain circumstances in which the redemption may be treated as a distribution for U.S. federal income tax purposes depending on the amount of RMNI shares that a GPIA shareholder owns or is deemed to own (including through the ownership of RMNI warrants). For a more complete discussion of the U.S. federal income tax considerations of an exercise of redemption rights, see “ U.S. Federal Income Tax Considerations ” beginning on page 163 of this joint proxy statement/prospectus.

Additionally, because the domestication will occur immediately prior to the redemption of any RMNI shareholder, U.S. Holders exercising redemption rights will be subject to the potential tax consequences of Section 367 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) as well as potential tax consequences of the U.S. federal income tax rules relating to “passive foreign investment companies” (“PFIC”). The tax consequences of Section 367 of the Code and the PFIC rules are discussed more fully below under “ U.S. Federal Income Tax Considerations ” beginning on page 163 of this joint proxy statement/prospectus.

All holders of public shares considering exercising their redemption rights are strongly urged to consult their tax advisor for a full description and understanding of the tax consequences of an exercise of redemption rights, including the applicability and effect of U.S. federal, state, local and foreign income and other tax laws.

Q: Do I have appraisal rights in connection with the proposed business combination and the proposed domestication?
A: No. Neither GPIA shareholders nor GPIA warrant holders have appraisal rights in connection with the business combination or the domestication under the Cayman Islands Companies Law or under the DGCL.

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Q: What are the U.S. federal income tax consequences of the domestication?
A: As discussed more fully under “ U.S. Federal Income Tax Considerations ” below, it is intended that the domestication will constitute a tax-free reorganization within the meaning of Section 368(a)(l)(F) of the Code. Assuming that the domestication so qualifies, U.S. Holders (as defined in “ U.S. Federal Income Tax Considerations ” below) of GPIA ordinary shares will be subject to Section 367(b) of the Code and, as a result:
A U.S. Holder of GPIA ordinary shares whose GPIA ordinary shares have a fair market value of less than $50,000 on the date of the domestication will not recognize any gain or loss and will not be required to include any part of GPIA’s earnings in income;
A U.S. Holder of GPIA ordinary shares whose GPIA ordinary shares have a fair market value of $50,000 or more, but who on the date of the domestication owns (actually and constructively) less than 10% of the total combined voting power of all classes of GPIA ordinary shares entitled to vote will generally recognize gain (but not loss) on the exchange of GPIA ordinary shares for RMNI common stock pursuant to the domestication. As used in this joint proxy statement/prospectus, “RMNI common stock” or “RMNI warrants” means the common stock or warrants, respectively, of GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), which will be renamed “Rimini Street, Inc.” immediately after consummation of the second merger. As an alternative to recognizing gain, such U.S. Holders may file an election to include in income as a dividend earnings and profits (as defined in the Treasury Regulations under Section 367) attributable to its GPIA ordinary shares provided certain other requirements are satisfied. GPIA does not expect to have significant cumulative earnings and profits, if any, on the date of the domestication.
A U.S. Holder of GPIA ordinary shares whose GPIA ordinary shares have a fair market value of $50,000 or more, and who on the date of the domestication owns (actually and constructively) 10% or more of the total combined voting power of all classes of GPIA ordinary shares entitled to vote will generally be required to include in income as a dividend earnings and profits (as defined in the Treasury Regulations under Section 367) attributable to its GPIA ordinary shares provided certain other requirements are satisfied. GPIA does not expect to have significant cumulative earnings and profits, if any, on the date of the domestication.

As discussed further under “ U.S. Federal Income Tax Considerations ” below, GPIA believes that it is likely treated as a “passive foreign investment company”, or PFIC, for U.S. federal income tax purposes. In such case, notwithstanding the foregoing U.S. federal income tax consequences of the domestication, proposed Treasury Regulations under Section 1291(f) of the Code (which have a retroactive effective date), if finalized in their current form, generally would require a U.S. Holder to recognize gain on the exchange of GPIA ordinary shares or warrants for RMNI common stock or warrants pursuant to the domestication. The tax on any such gain would be imposed at the rate applicable to ordinary income and an interest charge would apply based on a complex set of rules. However, it is difficult to predict whether, in what form, and with what effective date, final Treasury Regulations under Section 1291(f) of the Code will be adopted. Importantly, however, U.S. Holders that make or have made certain elections discussed further under “ U.S. Federal Income Tax Considerations—Impact of PFIC Rules on Certain U.S. Holders ” with respect to their GPIA ordinary shares are generally not subject to the same gain recognition rules under the currently proposed Treasury Regulations under Section 1291(f) of the Code. For a more complete discussion of the potential application of the PFIC rules to U.S. Holders as a result of the domestication, see “ U.S. Federal Income Tax Considerations ” beginning on page 163 of this joint proxy statement/prospectus.

Additionally, the domestication may cause non-U.S. Holders (as defined in “ U.S. Federal Income Tax Considerations ” below) to become subject to U.S. federal income withholding taxes on any dividends paid in respect of such non-U.S. Holder’s RMNI common stock subsequent to the domestication.

The tax consequences of the domestication are complex and will depend on a holder’s particular circumstances. All holders are strongly urged to consult their tax advisor for a full description and understanding of the tax consequences of the domestication, including the applicability and effect of U.S. federal, state, local and foreign income and other tax laws. For a more complete discussion of the U.S. federal income tax considerations of the domestication, see “ U.S. Federal Income Tax Considerations ” beginning on page 163 of this joint proxy statement/prospectus.

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Q: What do I need to do now?
A: GPIA urges you to read carefully and consider the information contained in this joint proxy statement/prospectus, including the annexes, and to consider how the business combination will affect you as a shareholder and/or warrant holder of GPIA. GPIA shareholders should then vote as soon as possible in accordance with the instructions provided in this joint proxy statement/prospectus and on the enclosed proxy card.
Q: How do I vote?
A: If you are a holder of record of GPIA ordinary shares on the record date, you may vote in person at the extraordinary general meeting or by submitting a proxy for the extraordinary general meeting. You may submit your proxy by completing, signing, dating and returning the enclosed proxy card in the accompanying pre-addressed postage paid envelope. If you hold your shares in “street name”, which means your shares are held of record by a broker, bank or nominee, you should contact your broker to ensure that votes related to the shares you beneficially own are properly counted. In this regard, you must provide the broker, bank or nominee with instructions on how to vote your shares or, if you wish to attend the extraordinary general meeting and vote in person, obtain a proxy from your broker, bank or nominee.
Q: If my shares are held in “street name”, will my broker, bank or nominee automatically vote my shares for me?
A: No. If your shares are held in a stock brokerage account or by a bank or other nominee, you are considered the “beneficial holder” of the shares held for you in what is known as “street name”. If this is the case, this joint proxy statement/prospectus may have been forwarded to you by your brokerage firm, bank or other nominee, or its agent. As the beneficial holder, you have the right to direct your broker, bank or other nominee as to how to vote your shares. If you do not provide voting instructions to your broker on a particular proposal on which your broker does not have discretionary authority to vote, your shares will not be voted on that proposal. This is called a “broker non-vote”. Broker non-votes, while considered present for the purposes of establishing a quorum, will have no effect on a particular proposal. If you decide to vote, you should provide instructions to your broker, bank or other nominee on how to vote in accordance with the information and procedures provided to you by your broker, bank or nominee.
Q: When and where will the extraordinary general meeting be held?
A: The extraordinary general meeting will be held at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, at 4 Times Square, New York, New York 10036 on [•], 2017, at [•] [a.m.][p.m.], Eastern Time, unless the extraordinary general meeting is adjourned.
Q: Who is entitled to vote at the extraordinary general meeting?
A: GPIA has fixed [•], 2017 as the record date. If you were a shareholder of GPIA at the close of business on the record date, you are entitled to vote on matters that come before the extraordinary general meeting. However, a shareholder may only vote his or her shares if he or she is present in person or is represented by proxy at the extraordinary general meeting.
Q: How many votes do I have?
A: GPIA shareholders are entitled to one vote at the extraordinary general meeting for each ordinary share held of record as of the record date. As of the close of business on the record date, there were outstanding 20,009,776 GPIA ordinary shares, of which 15,697,276 were outstanding public shares.
Q: What constitutes a quorum?
A: A quorum of GPIA shareholders is necessary to hold a valid meeting. A quorum will be present at the GPIA general meeting if a majority of the outstanding shares entitled to vote at the extraordinary general meeting are represented in person or by proxy. As of the record date for the extraordinary general meeting, 10,004,889 GPIA ordinary shares would be required to achieve a quorum.

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Q: What vote is required to approve each proposal at the extraordinary general meeting?
A: The following votes are required for each proposal at the extraordinary general meeting:
Business combination proposal : The approval of the business combination proposal requires the affirmative vote for the proposal by the holders of a majority of the then outstanding ordinary shares who, being present and entitled to vote at the extraordinary general meeting to approve the business combination proposal, vote at the extraordinary general meeting.
Domestication proposal : The approval of the domestication proposal by special resolution requires a special resolution under Cayman Islands Companies Law, being the affirmative vote for the proposal by the holders of not less than two-thirds of the then outstanding ordinary shares who, being present and entitled to vote at the extraordinary general meeting to approve the domestication proposal, vote at the extraordinary general meeting.
Organizational documents proposals : The separate approval of each of the organizational documents proposals by special resolution requires a special resolution under the Cayman Islands Companies Law, being the affirmative vote for each of the organizational documents proposals by the holders of not less than two-thirds of the then outstanding ordinary shares who, being present and entitled to vote at the extraordinary general meeting to approve each such organizational documents proposal, vote at the extraordinary general meeting.
Stock issuance proposal : The approval of the stock issuance proposal requires the affirmative vote for the proposal by the holders of a majority of the then outstanding ordinary shares who, being present and entitled to vote at the extraordinary general meeting to approve the stock issuance proposal, vote at the extraordinary general meeting.
Adjournment proposal : The approval of the adjournment proposal requires the affirmative vote for the proposal by the holders of a majority of the then outstanding ordinary shares who, being present and entitled to vote at the extraordinary general meeting to approve the adjournment proposal, vote at the extraordinary general meeting.
Q: What are the recommendations of GPIA’s board of directors?
A: GPIA’s board of directors believes that the business combination proposal and the other proposals to be presented at the extraordinary general meeting are in the best interest of GPIA’s shareholders and unanimously recommends that its shareholders vote “FOR” the business combination proposal, “FOR” the domestication proposal, “FOR” each of the separate organizational documents proposals, “FOR” the stock issuance proposal and “FOR” the adjournment proposal, in each case, if presented to the extraordinary general meeting.

The existence of financial and personal interests of one or more of GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

Q: How do the Sponsor and the other initial shareholders intend to vote their shares?
A: Unlike many other blank check companies in which the initial shareholders agree to vote their founder shares in accordance with the majority of the votes cast by the public shareholders in connection with an initial business combination, in connection with our initial public offering, our initial shareholders entered into letter agreements to vote their founder shares, as well as any public shares purchased during or after our initial public offering, in favor of our initial business combination.

On May 16, 2017, in connection with the transactions contemplated by the merger agreement, GPIAC, LLC entered into a transaction support and voting agreement with GPIA and Rimini Street, pursuant to which, among other things, GPIAC, LLC agreed to vote its GPIA ordinary shares in favor of the transactions at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, the aggregate number of shares covered by the transaction support and voting agreement entered into by GPIAC, LLC represents 21.3% of the outstanding GPIA ordinary shares.

In addition, our independent directors have indicated that they intend to vote their shares in favor of all other proposals being presented at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, our independent directors own 0.3% of the outstanding GPIA ordinary shares.

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At any time prior to the extraordinary general meeting, during a period when they are not then aware of any material nonpublic information regarding GPIA or its securities, the GPIA initial shareholders, Rimini Street and/or its affiliates may purchase shares from institutional and other investors who vote, or indicate an intention to vote, against the business combination proposal, or execute agreements to purchase such shares from such investors in the future, or they may enter into transactions with such investors and others to provide them with incentives to acquire shares of GPIA’s ordinary shares or vote their shares in favor of the business combination proposal. The purpose of such share purchases and other transactions would be to increase the likelihood of satisfaction of the requirements that (i) holders of a majority of the shares who, being present and entitled to vote at the extraordinary general meeting and who do vote, vote in favor of the business combination proposal, the stock issuance proposal and the adjournment proposal, (ii) holders of at least two-thirds of the shares who, being present and entitled to vote at the extraordinary general meeting and who do vote, vote in favor of the domestication proposal and the organizational documents proposals, and (iii) the minimum available cash condition of $50,000,000 and the condition that the minimum trust account balance of $5,000,001 are satisfied. Any such share purchases and other transactions may thereby increase the likelihood of obtaining shareholder approval of the business combination. This may result in the completion of our business combination that may not otherwise have been possible. While the exact nature of any such incentives has not been determined as of the date of this joint proxy statement/prospectus, they might include, without limitation, arrangements to protect such investors or holders against potential loss in value of their shares, including the granting of put options and the transfer to such investors or holders of shares or rights owned by the GPIA initial shareholders for nominal value.

Entering into any such arrangements may have a depressive effect on GPIA’s ordinary shares. For example, as a result of these arrangements, an investor or holder may have the ability to effectively purchase shares at a price lower than market and may therefore be more likely to sell the shares he owns, either prior to or immediately after the extraordinary general meeting. Moreover, any such purchases may make it more likely that the minimum available cash condition of $50,000,000 and the condition that the minimum trust account balance of $5,000,001 are satisfied.

If such transactions are effected, the consequence could be to cause the merger to be approved in circumstances where such approval could not otherwise be obtained. Purchases of shares by the persons described above would allow them to exert more influence over the approval of the proposals to be presented at the extraordinary general meeting and would likely increase the chances that such proposals would be approved. As of the date of this joint proxy statement/prospectus, there have been no such discussions and no agreements to such effect have been entered into with any such investor or holder. GPIA will file a Current Report on Form 8-K to disclose any arrangements entered into or significant purchases made by any of the aforementioned persons that would affect the vote on the proposals to be put to the extraordinary general meeting or the redemption threshold. Any such report will include descriptions of any arrangements entered into or significant purchases by any of the aforementioned persons.

Q: What happens if I sell my ordinary shares before the extraordinary general meeting?
A: The record date for the extraordinary general meeting is earlier than the date of the extraordinary general meeting and earlier than the date that the business combination is expected to be completed. If you transfer your ordinary shares after the applicable record date, but before the extraordinary general meeting, unless you grant a proxy to the transferee, you will retain your right to vote at such general meeting.
Q: May I change my vote after I have mailed my signed proxy card?
A: Yes. Shareholders may send a later-dated, signed proxy card to GPIA’s secretary at the address set forth below so that it is received by GPIA’s secretary prior to the vote at the extraordinary general meeting (which is scheduled to take place on [•], 2017) or attend the extraordinary general meeting in person and vote. Shareholders also may revoke their proxy by sending a notice of revocation to GPIA’s secretary, which must be received by GPIA’s secretary prior to the vote at the extraordinary general meeting. However, if your shares are held in “street name” by your broker, bank or another nominee, you must contact your broker, bank or other nominee to change your vote.
Q: What happens if I fail to take any action with respect to the extraordinary general meeting?
A: If you fail to take any action with respect to the extraordinary general meeting and the business combination is approved by shareholders and the business combination is consummated, you will become a stockholder of

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Rimini Street. If you fail to take any action with respect to the extraordinary general meeting and the business combination is not approved, you will remain a shareholder and/or warrant holder of GPIA. However, if you fail to take any action with respect to the extraordinary general meeting, you will nonetheless be able to elect to redeem your public shares in connection with the business combination.

Q: What should I do with my stock certificates, warrant certificates and/or unit certificates?
A: GPIA shareholders who exercise their redemption rights must deliver their stock certificates to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, (either physically or electronically) prior to the extraordinary general meeting.

Holders of GPIA public shares should complete the procedures for electing to redeem their GPIA public shares in the manner described above prior to 5:00 p.m. Eastern Time on [ ], 2017 (two business days before the extraordinary general meeting).

GPIA warrant holders should not submit the certificates relating to their warrants. Public shareholders who do not elect to have their RMNI public shares redeemed for the pro rata share of the trust account should not submit the certificates relating to their public shares.

Upon the domestication, holders of GPIA units, common stock and warrants will receive units, common stock and warrants in RMNI without needing to take any action and accordingly such holders should not submit the certificates relating to their units, common stock and warrants.

Q: What should I do if I receive more than one set of voting materials?
A: Shareholders may receive more than one set of voting materials, including multiple copies of this joint proxy statement/prospectus and multiple proxy cards or voting instruction cards. For example, if you hold your shares in more than one brokerage account, you will receive a separate voting instruction card for each brokerage account in which you hold shares. If you are a holder of record and your shares are registered in more than one name, you will receive more than one proxy card. Please complete, sign, date and return each proxy card and voting instruction card that you receive in order to cast a vote with respect to all of your GPIA ordinary shares.
Q: Who can help answer my questions?
A: If you have questions about the business combination or if you need additional copies of the joint proxy statement/prospectus, any document incorporated by reference in this joint proxy statement/prospectus or the enclosed proxy card you should contact:

Morrow Sodali LLC
470 West Avenue
Stamford CT 06902
Tel: (800) 662-5200
Banks and brokers call collect: (203) 658-9400
E-mail: GPIA.info@morrowsodali.com

You also may obtain additional information about GPIA from documents filed with the SEC by following the instructions in the section entitled “ Where You Can Find More Information; Incorporation by Reference ”. If you are a holder of public shares and you intend to seek redemption of your shares, you will need to deliver your ordinary shares (either physically or electronically) to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, at the address below prior to the extraordinary general meeting. Holders of GPIA public shares should complete the procedures for electing to redeem their GPIA public shares in the manner described above prior to 5:00 p.m. Eastern Time on [ ], 2017 (two business days before the extraordinary general meeting). If you have questions regarding the certification of your position or delivery of your stock, please contact:

Mark Zimkind
Continental Stock Transfer & Trust Company
1 State Street Plaza, 30th Floor
New York, New York 10004
E-mail: mzimkind@continentalstock.com

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QUESTIONS AND ANSWERS FOR STOCKHOLDERS OF RIMINI STREET

Q: What proposals are stockholders of Rimini Street being asked to vote upon?
A: Under the merger agreement, the approval of the Rimini Street business combination proposal and the Rimini Street preferred stock conversion proposal are conditions to the consummation of the first merger. If Rimini Street stockholders do not approve each of these proposals, then unless this condition is waived by GPIA, Let’s Go and Rimini Street, the merger agreement could terminate and the proposed first merger may not be consummated. The amendment, modification or waiver of the merger agreement in any manner that could reasonably be expected to be materially adverse to Rimini Street or the agents and lenders under the Credit Facility requires the prior written consent of the Origination Agent. There can be no assurance that GPIA, Let’s Go and Rimini Street would waive any such provision of the merger agreement, or that the agents and lenders under the Credit Facility would provide any required consents to such amendments, modifications or waivers.

Rimini Street will hold the special meeting of its stockholders to consider and vote upon these proposals. This joint proxy statement/prospectus contains important information about the proposed business combination and the other matters to be acted upon at the special meeting. Stockholders of Rimini Street should read it carefully.

After careful consideration, Rimini Street’s board of directors has determined that the Rimini Street business combination proposal and the Rimini Street preferred stock conversion proposal are in the best interests of Rimini Street and its stockholders and recommends that you vote or give instruction to vote “FOR” each of those proposals.

The existence of financial and personal interests of one or more of Rimini Street’s directors may result in a conflict of interest on the part of such director(s) between what he, she or they may believe is in the best interests of Rimini Street and its stockholders and what he, she or they may believe is best for himself, herself or themselves in determining to recommend that stockholders vote for the proposals. See the section entitled “ Rimini Street Business Combination Proposal—Interests of Rimini Street’s Directors and Officers in the Business Combination ” for a further discussion of this.

THE VOTE OF RIMINI STREET STOCKHOLDERS IS IMPORTANT. RIMINI STREET STOCKHOLDERS ARE ENCOURAGED TO VOTE AS SOON AS POSSIBLE AFTER CAREFULLY REVIEWING THIS JOINT PROXY STATEMENT/PROSPECTUS.

Q: What material negative factors did Rimini Street’s board of directors consider in connection with the business combination?
A: Although the Rimini Street board of directors believes that a business combination is advisable and fair to, and in the best interests of, Rimini Street’s stockholders, the board of directors did consider certain potentially material negative factors in arriving at that conclusion. These factors include, among others, the likelihood that the business combination would be completed compared to the risks in executing alternatives, the risks and costs to Rimini Street if the transactions contemplated by the merger agreement are not consummated and the fact that Rimini Street entered into the merger agreement with a “blank check” corporation organized to effect a business combination with one or more businesses. These factors and others are discussed in greater detail in the section entitled “ Rimini Street Business Combination Proposal—Rimini Street’s Board of Directors’ Reasons for the Business Combination ”, as well as in the sections entitled “ Risk Factors—Risks Related to Rimini Street’s Business Operations and Industry ”.
Q: What happens if the business combination is not consummated?
A: If the merger agreement is not adopted by Rimini Street stockholders or if the business combination is not completed for any other reason, Rimini Street will remain an independent private company.
Q: Do I have appraisal rights in connection with the business combination?
A: Rimini Street stockholders will be entitled to dissenters’ rights only if they comply with the Nevada law procedures summarized in the section entitled “ Appraisal Rights ”. To be eligible to exercise appraisal rights, record holders of Rimini Street capital stock must not vote in favor of the business combination and must properly demand payment for their shares. The entirety of sections 92A.300 to 92A.500 of the Nevada Revised Statutes (the “Nevada Dissenter’s Rights Statute”) is provided on Annex I to this joint proxy

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statement/prospectus. Upon effectiveness of the business combination, any Rimini Street stockholder who has perfected its dissenters’ rights and who believes that the merger consideration is insufficient will have the right to object and have a court in Nevada determine the value of each share of stock, and to be paid the appraised value determined by the court, which could be more or less than the merger consideration.

Q: What are the U.S. federal income tax consequences of the mergers to me?
A: It is intended that the mergers will constitute an integrated transaction and qualify as a “reorganization” within the meaning of Section 368(a) of the Code. Assuming the mergers so qualify, Rimini Street stockholders generally will not recognize gain or loss on the exchange of their Rimini Street common stock solely for shares of RMNI common stock in the mergers and their basis in and holding periods for their Rimini Street common stock will generally carry over to the RMNI common stock received by such holder in the mergers.

For a more complete discussion of the U.S. federal income tax consequences of the mergers, see the section entitled “ U.S. Federal Income Tax Considerations ”.

Q: What do I need to do now?
A: Rimini Street urges you to read carefully and consider the information contained in this joint proxy statement/prospectus, including the annexes, and to consider how the business combination will affect you as a stockholder of Rimini Street. Stockholders should then vote as soon as possible in accordance with the instructions provided in this joint proxy statement/prospectus and on the enclosed proxy card.
Q: How do I vote?
A: If you are a holder of record of Rimini Street capital stock on the record date, you may vote in person at the special meeting or by submitting a proxy for the special meeting. You may submit your proxy by completing, signing, dating and returning the enclosed proxy card in the accompanying pre-addressed postage paid envelope.
Q: When and where will the special meeting be held?
A: The special meeting will be held at [•] on [•], 2017, at [•] [a.m.][p.m.], Pacific Time, unless the special meeting is adjourned.
Q: Who is entitled to vote at the special meeting?
A: Rimini Street has fixed [•], 2017 as the record date. If you were a stockholder of Rimini Street at the close of business on the record date, you are entitled to vote on matters that come before the special meeting. However, a stockholder may only vote his or her shares if he or she is present in person or is represented by proxy at the special meeting.
Q: How many votes do I have?
A: Each share of Rimini Street Class A Common Stock is entitled to one vote per share at the special meeting and each share of Rimini Street Class B Common Stock is entitled to fifteen votes per share at the special meeting. Each share of Rimini Street Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock is entitled to the number of votes equal to the number of shares of Class A Common Stock or Class B Common Stock, as applicable, into which the shares of preferred stock held by such holder could be converted as of the record date. As of the record date, each share of Rimini Street Series A Preferred Stock and Rimini Street Series B Preferred Stock will convert into one share of Rimini Street Class B Common Stock and each share of Rimini Street Series C Preferred Stock will convert into one share of Rimini Street Class A Common Stock. As of the close of business on the record date, there were [•] shares of Rimini Street Class A Common Stock, [•] shares of Rimini Street Class B Common Stock, [•] shares of Rimini Street Series A Preferred Stock, [•] shares of Rimini Street Series B Preferred Stock, and [•] shares of Rimini Street Series C Preferred Stock outstanding and entitled to vote.
Q: What constitutes a quorum?
A: A quorum of Rimini Street stockholders is necessary to hold a valid meeting. A quorum will be present at the Rimini Street special meeting if a majority of the aggregate voting power of the capital stock issued and outstanding and entitled to vote is represented in person or by proxy. As of the record date for the special meeting, [•] shares of Rimini Street capital stock would be required to achieve a quorum.

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Q: What vote is required to approve each proposal at the special meeting?
A: The following votes are required for each proposal at the special meeting:
Rimini Street business combination proposal : The approval of the Rimini Street business combination proposal requires the affirmative vote for the proposal by the holders of (i) the majority of the voting power of shares of Rimini Street capital stock, (ii) more than 50% of the outstanding shares of Rimini Street Series B Preferred Stock and Series C Preferred Stock, voting as a single class on an as-converted basis (each holder of Rimini Street Preferred Stock shall be entitled to the number of votes equal to the number of shares of Rimini Street Class B Common Stock or Rimini Street Class A Common Stock, as applicable, into which the shares of Rimini Street Preferred Stock held by such holder could be converted as of the record date), and (iii) the majority of the outstanding shares of Rimini Street Class A Common Stock and Rimini Street Class B Common Stock, voting as a single class, being present in person or represented by proxy at the Rimini Street special meeting.
Rimini Street preferred stock conversion proposal : The approval of the Rimini Street preferred stock conversion proposal requires the affirmative vote of the holders of a majority of the shares of Rimini Street preferred stock then outstanding (voting as a single class and on an as-converted basis), being present in person or represented by proxy at the Rimini Street special meeting. Each holder of Rimini Street Preferred Stock shall be entitled to the number of votes equal to the number of shares of Rimini Street Class B Common Stock or Rimini Street Class A Common Stock, as applicable, into which the shares of Rimini Street Preferred Stock held by such holder could be converted as of the record date.
Q: What are the recommendations of Rimini Street’s board of directors?
A: Rimini Street’s board of directors believes that the Rimini Street business combination proposal and the Rimini Street preferred stock conversion proposal are in the best interest of Rimini Street’s stockholders and recommends that its stockholders vote “FOR” the Rimini Street business combination proposal and “FOR” the Rimini Street preferred stock conversion proposal, in each case, if presented to the special meeting.

The existence of financial and personal interests of one or more of Rimini Street’s directors may result in a conflict of interest on the part of such director(s) between what he, she or they may believe is in the best interests of Rimini Street and its stockholders and what he, she or they may believe is best for himself, herself or themselves in determining to recommend that stockholders vote for the proposals. See the section entitled “ Rimini Street Business Combination Proposal—Interests of Rimini Street’s Directors and Officers in the Business Combination ” for a further discussion of this.

Q: How do other Rimini Street stockholders intend to vote?
A: In connection with the business combination, Rimini Street stockholders representing a sufficient number of shares of Rimini Street capital stock necessary to approve the Rimini Street business combination proposal and Rimini Street preferred stock conversion proposal have entered into a transaction support and voting agreement pursuant to which they have agreed to support and vote all of their shares in favor of such proposals.
Q: What happens if I sell my shares of Rimini Street capital stock before the special meeting?
A: The record date for the special meeting is earlier than the date of the special meeting and earlier than the date that the business combination is expected to be completed. If you transfer your shares of Rimini Street capital stock after the applicable record date, but before the special meeting, unless you grant a proxy to the transferee, you will retain your right to vote at such special meeting.
Q: May I change my vote after I have mailed my signed proxy card?
A: Yes. Stockholders may send a later-dated, signed proxy card to Rimini Street’s secretary at Rimini Street, Inc., 3993 Howard Hughes Parkway, Suite 550, Las Vegas, NV 89169 so that it is received by Rimini Street’s secretary prior to the vote at the special meeting (which is scheduled to take place on [•], 2017) or attend the special meeting in person and vote. Stockholders also may revoke their proxy by sending a notice of revocation to Rimini Street’s secretary, which must be received by Rimini Street’s secretary prior to the vote at the special meeting.

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Q: What happens if I fail to take any action with respect to the special meeting?
A: If you fail to take any action with respect to the special meeting and the business combination is approved by stockholders and the business combination is consummated, you will become a stockholder of RMNI. If you fail to take any action with respect to the special meeting and the business combination is not approved, you will remain a stockholder of Rimini Street.
Q: What should I do with my stock certificates?
A: Upon the closing of the business combination, holders of Rimini Street capital stock will receive common stock in RMNI without needing to take any action and accordingly such holders should not submit the certificates relating to their capital stock.
Q: What should I do if I receive more than one set of voting materials?
A: Rimini Street stockholders may receive more than one set of voting materials, including multiple copies of this joint proxy statement/prospectus and multiple proxy cards or voting instruction cards. If you are a holder of record and your shares are registered in more than one name, you will receive more than one proxy card. Please complete, sign, date and return each proxy card and voting instruction card that you receive in order to cast a vote with respect to all of your shares of Rimini Street capital stock.
Q: Who can help answer my questions?
A: If you have any questions about how to vote or direct a vote in respect of your shares of Rimini Street capital stock, you may contact:

Thomas C. Shay
Corporate Secretary
Rimini Street, Inc.
3993 Howard Hughes Parkway, Suite 500
Las Vegas, NV 89169
Tel: (702) 839-9671

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SUMMARY OF THE JOINT PROXY STATEMENT/PROSPECTUS

This summary highlights selected information from this joint proxy statement/prospectus and does not contain all of the information that is important to you. To better understand the proposals to be submitted for a vote at the GPIA extraordinary general meeting and the Rimini Street special meeting, including the business combination, you should read this entire document carefully, including the merger agreement and the merger agreement amendment attached as Annex A and Annex B, respectively, to this joint proxy statement/prospectus. The merger agreement is the legal document that governs the business combination and the other transactions that will be undertaken in connection with the business combination. The merger agreement is also described in detail in this joint proxy statement/prospectus in the section entitled “The Merger Agreement”.

The Parties to the Business Combination

GP Investments Acquisition Corp.

GPIA is a blank check company incorporated as a Cayman Islands exempted company limited by shares and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. GPIA was incorporated under the laws of the Cayman Islands on January 28, 2015.

Our initial public offering was conducted pursuant to a registration statement on Form S-1 (Reg. No. 333-203500) that became effective on May 19, 2015.

On May 26, 2015, GPIA closed its initial public offering of 17,250,000 units, with each unit consisting of one share of its ordinary shares and one-half of a warrant to acquire one share of its ordinary shares upon consummation of an initial business combination. The units from our initial public offering were sold at an offering price of $10.00 per unit, generating total gross proceeds of $172,500,000. Simultaneously with the closing of our initial public offering, GPIA consummated the sale of 6,062,500 private placement warrants at a price of $1.00 per warrant in a private placement to the Sponsor, generating gross proceeds of $6,062,500.

Following the closing of our initial public offering, an amount of $172,500,000 ($10.00 per share) from the net proceeds of our initial public offering and the sale of the private placement warrants was placed in a trust account and the remaining $967,000 of net proceeds became available to be used as working capital to provide for business, legal and accounting due diligence on prospective business combinations and continuing general and administrative expenses.

On May 23, 2017, we held an extraordinary general meeting of shareholders at which, among other things, our shareholders voted to amend our memorandum and articles of association to extend the date by which the we must (i) consummate a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities (which we refer to as a business combination), (ii) cease its operations if we fail to complete such business combination, and (iii) redeem all of our ordinary shares included as part of the units sold in our initial public offering, from May 26, 2017 to November 27, 2017 (the “Extension”). In connection with the Extension, holders of our public shares had the right to elect to redeem their shares for a per-share price, payable in cash, based upon the aggregate amount then on deposit in our trust account. In connection with the Extension, shareholders holding 1,552,724 public shares validly elected to redeem their public shares.

As of March 31, 2017, there was cash and marketable securities held in the trust account of $173,227,105 and, as of May 25, 2017 (after giving effect to the redemptions of public shares redeemed in connection with the Extension), there was cash and marketable securities held in the trust account of $157,791,185.

As disclosed in connection with our initial public offering on a registration statement filed with the Securities and Exchange Commission on Form S-1 (Reg. No. 333-203500) that became effective on May 19, 2015, if our initial business combination is paid for using equity or debt securities, or not all of the funds released from the trust account are used for payment of the consideration in connection with our initial business combination or used for redemptions of our ordinary shares, we may apply the balance of the cash released to us from the trust account for general corporate purposes, including for maintenance or expansion of operations of post-transaction businesses, the payment of principal or interest due on indebtedness incurred in completing our initial business combination, to fund the purchase of other companies or for working capital.

Accordingly, after consummation of the business combination, the funds in the trust account will be released to RMNI (as successor to GPIA as a result of the domestication) and used by RMNI to pay holders of the public shares

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who exercise redemption rights and to pay expenses incurred by GPIA and Rimini Street in connection with the business combination. Such expenses include, among others (i) a fee to the underwriters of our initial public offering of $6,037,500, (ii) fees and expenses payable to our investment banking advisors for merger and acquisition advisory services of approximately $9.5 million and (iii) professional fees and expenses of our consultants, accountants and legal counsel of approximately $7.8 million. Any remaining balance in the trust account would thereafter be available for general corporate purposes, including, but not limited to, the prepayment of amounts owed under the Credit Facility and to provide working capital for operations.

In order to consummate the business combination, Rimini Street was required to obtain the consent of a majority of the lenders under the Credit Facility. Certain waiver letters, dated as of May 16, 2017, agreed to by Rimini Street and the agents and lenders provide for consent by the agents and lenders to consummate the business combination. The waiver letters also provide for the waiver of certain events of default under the Credit Facility that may arise as a result of the consummation of the business combination. As a condition to effectiveness of the waiver letters, Rimini Street is required to make a minimum payment to the lenders of $35.0 million to reduce certain outstanding obligations under the Credit Facility.

Prior to consummation of the business combination, Rimini Street and GPIA may jointly elect to offer the lenders under the Credit Facility the ability to convert up to $21.0 million of obligations under the Credit Facility at $10.00 per share for 2,100,000 GPIA ordinary shares, effective immediately prior to the first merger. If Rimini Street and GPIA elect to make this offer, the lenders under the Credit Facility are under no obligation to accept it.

GPIA’s units, ordinary shares and warrants are listed on NASDAQ under the symbols “GPIAU”, “GPIA”, and “GPIAW”, respectively.

The mailing address of GPIA’s principal executive office is 150 E. 52nd Street, Suite 5003, New York, NY 10022. Its telephone number is (212) 430-4340.

Let’s Go Acquisition Corp.

Let’s Go is a wholly-owned subsidiary of GPIA formed solely for the purpose of effecting a business combination. Let’s Go was incorporated under the laws of the State of Delaware on April 13, 2016. Let’s Go owns no material assets and does not operate any business. Pursuant to the first merger, Let’s Go will merge with and into Rimini Street, with Rimini Street as the surviving corporation. Therefore, upon consummation of the first merger, Let’s Go will cease to exist.

The mailing address of Let’s Go’s principal executive office is 150 E. 52nd Street, Suite 5003, New York, NY 10022. Its telephone number is (212) 430-4340.

After consummation of the first merger, Let’s Go will cease to exist.

Rimini Street, Inc.

Rimini Street, founded in 2005, is a global provider of enterprise software products and services, and the leading independent support provider for Oracle and SAP products, based on the number of clients supported. Rimini Street provides subscription-based support services for software products licensed by Oracle Corporation, SAP SE and other software vendors.

For the three months ended March 31, 2017, Rimini Street reported net revenue exceeding $49 million. Rimini Street employs approximately 900 professionals across 13 countries of operation, and currently serves over 1,200 clients – including nearly 100 of the Fortune 500 and Global 100.

Rimini Street’s principal executive offices are at 3993 Howard Hughes Parkway, Suite 500, Las Vegas, Nevada 89169. Rimini Street’s telephone number is (702) 839-9671 and its website is www.riministreet.com.

Information contained on Rimini Street’s website is not incorporated by reference into this joint proxy statement/prospectus and does not constitute part of this joint proxy statement/prospectus.

Emerging Growth Company

GPIA is an “emerging growth company”, as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth

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companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. GPIA has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, GPIA, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of GPIA’s financial statements with certain other public companies difficult or impossible because of the potential differences in accounting standards used.

We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of our initial public offering (which would be December 31, 2020), (b) in which we have total annual gross revenue of at least $1.07 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our ordinary shares that is held by non-affiliates exceeds $700 million as of the prior June 30 (whichever of (a), (b) or (c) occurs first), and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period.

Summary of the Merger Agreement

On May 16, 2017, GPIA, Let’s Go, Rimini Street and the Holder Representative entered into the merger agreement, which was amended on June 30, 2017. Pursuant to the merger agreement, among other things and in accordance with the terms and subject to the conditions of the merger agreement, and following the domestication of GPIA to Delaware, Let’s Go, will merge with and into Rimini Street, with Rimini Street as the surviving corporation (which we refer to as the first merger). The surviving corporation from the first merger will then merge with and into GPIA, with GPIA as the surviving corporation (which we refer to as the second merger). See “ GPIA Business Combination Proposal ”.

Prior to and as a condition of the mergers, GPIA will change its jurisdiction of incorporation by effecting a deregistration under Article 206 of the Cayman Islands Companies Law and a domestication under Section 388 of the DGCL, pursuant to which GPIA’s jurisdiction of incorporation will be changed from the Cayman Islands to the State of Delaware. The mergers will follow the domestication.

Merger Consideration

Pursuant to the merger agreement, the aggregate purchase price is $775,000,000, as adjusted in accordance with the terms of the merger agreement (which we refer to as the merger consideration). At the closing of the business combination, GPIA will pay the merger consideration in newly issued shares of RMNI common stock based on a per share issue price of $10.00 per share.

Under the merger agreement, at the effective time of the first merger (the “first effective time”), each issued and outstanding share of Rimini Street’s Class A Common Stock, Class B Common Stock, Series A Preferred Stock on an as-converted basis, Series B Preferred Stock on an as-converted basis and Series C Preferred Stock on an as-converted basis (other than, in each case, such shares, if any, (i) held in the treasury of Rimini Street, which treasury shares shall be canceled as part of the first merger and (ii) shares that are held by stockholders who have perfected and not withdrawn a demand for appraisal rights) will automatically be cancelled and converted into and become the right to receive the applicable portion of the merger consideration in accordance with the merger agreement.

Each option to purchase shares of Rimini Street’s common stock granted under an incentive plan that is outstanding at the first effective time will be converted into an option relating to shares of RMNI (a “RMNI option”) upon the same terms and conditions as are in effect with respect to such option immediately prior to the first effective

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time (except that the number of shares of RMNI subject to each RMNI option, and the exercise price thereof, shall be adjusted as set forth in the merger agreement to provide the holder thereof with the same economic value as the original option relating to shares of Rimini Street’s common stock). Rimini Street will take commercially reasonable actions so that any vested option held by a former employee or former service provider to Rimini Street is exercised or cancelled prior to the first effective time and, to the extent not exercised or cancelled, such option will be converted into the right to receive a cash payment equal to the product of (a) the excess of $10 over the per share exercise price and (b) the number of shares of the Rimini Street’s common stock subject to the vested portion of such option. As of May 31, 2017, we estimate that such cash payment would be approximately $161,000. The arrangements described in this paragraph are expected to result in the issuance of RMNI options and warrants relating to 15,637,834 shares of RMNI common stock, representing approximately 15.6% of RMNI’s common stock on a fully-diluted basis immediately following consummation of the business combination (assuming (i) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants, (ii) that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination and (iii) that no public shareholders exercise their redemption rights).

We have entered into a warrant consent and conversion agreement, dated May 16, 2017, with Rimini Street and CB Agent Services LLC (the “Origination Agent”). Pursuant to the warrant consent and conversion agreement, the Origination Agent warrant (as defined below) will be converted into a warrant relating to shares of RMNI. The warrants relating to such warrant consent and conversion agreement are expected to result in warrants relating to 3,537,412 shares of RMNI common stock being issued, representing approximately 20.5% of the total outstanding common stock of RMNI immediately following consummation of the business combination (assuming (i) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants, (ii) that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination and (iii) that no public shareholders exercise their redemption rights). See the section entitled “— Warrant Consent and Conversion Agreement ” for a further discussion of this. All other warrants to purchase shares of Rimini Street’s capital stock, which have an exercise price less than the value of merger consideration per fully diluted share, will be converted into shares of the applicable class of Rimini Street capital stock immediately prior to the first merger, in each case pursuant to a conversion agreement to be agreed with the holders of such warrants and the parties to the merger agreement.

The consummation of the mergers is subject to, among other things, a closing condition requiring a minimum of $50,000,000 of available cash, which is expected to be funded from cash available in the GPIA trust account (after satisfying any shareholder redemptions, but including certain deferred underwriting commissions and other fees) and, as needed, backstop equity financing from GPIC, Ltd. (which we refer to as the Sponsor) of up to $35,000,000 as described below, and other potential third party equity financing (collectively, “GPIA available cash”). Assuming such closing condition is satisfied (and the satisfaction or waiver of the other closing conditions described below), GPIA intends to use the GPIA available cash to fund unpaid transaction expenses incurred in connection with the mergers and the other transactions contemplated by the merger agreement, to pay down certain of Rimini Street’s indebtedness and to deposit any remaining GPIA available cash for the benefit of the combined company’s balance sheet.

The amendment, modification or waiver of the merger agreement in any manner that could reasonably be expected to be materially adverse to Rimini Street or the agents and lenders under the Credit Facility requires the prior written consent of the Origination Agent. There can be no assurance that GPIA, Let’s Go and Rimini Street would waive any such provision of the merger agreement, or that the agents and lenders under the Credit Facility would provide any required consents to such amendments, modifications or waivers.

Merger Agreement Amendment

On June 30, 2017, GPIA, Let’s Go, Rimini Street and the Holder Representative entered into amendment no. 1 to the merger agreement. Pursuant to the merger agreement amendment, the parties agreed to, among other things: (1) amend the provision of the merger agreement relating to cash payments to be made to former employees and

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former service providers of Rimini Street who hold outstanding options that have not been exercised by the first effective time, (2) update the capitalization of GPIA referred to in the merger agreement to reflect the number of public shares redeemed by GPIA on May 25, 2017, (3) provide that the mutual closing condition requiring a minimum of $50,000,000 of GPIA available cash includes (rather than excludes) the amount of $6,037,500 that will be paid in respect of deferred underwriting commissions, and (4) delete the provision of the merger agreement requiring GPIA to adopt an employee stock purchase plan.

Equity Commitment

We have entered into an equity commitment letter, dated May 16, 2017, with the Sponsor (the “equity commitment letter”). Pursuant to the equity commitment letter, the Sponsor will (in certain circumstances) provide backstop equity financing by means of purchasing newly issued GPIA ordinary shares based on a per share issue price of $10.00 per share in an aggregate amount of up to $35,000,000 (the “equity commitment”).

If, upon the effectiveness of the first merger, the sum of (i) the cash available in the trust account (after the deduction of the cash used for redemptions of our ordinary shares in connection with the business combination, and including an aggregate of $6,037,500 of deferred underwriting commissions and other fees held in the trust account) and (ii) the cash available to GPIA from the consummation of certain issuances of GPIA ordinary shares (the “non-Sponsor available cash”) is greater than or equal to $50,000,000, then the Sponsor’s equity commitment is zero.

If, upon the effectiveness of the first merger, the non-Sponsor available cash is less than $50,000,000, then the Sponsor’s equity commitment is the lesser of (i) $50,000,000 minus the non-Sponsor available cash and (ii) $35,000,000, which is the maximum commitment of the Sponsor under the equity commitment letter (such amount as calculated pursuant to the foregoing clauses (i) and (ii) being referred to in this joint proxy statement/prospectus as the “commitment”). In addition, pursuant to the equity commitment letter, the Sponsor may, in its sole discretion and in connection with the consummation of the business combination, elect to purchase (on or prior to the domestication) GPIA common shares at a price of $10.00 per share in excess of such commitment, but in all cases up to a maximum of $35,000,000 when aggregated with such commitment.

Therefore, the maximum number of GPIA ordinary shares that the Sponsor can be required to acquire pursuant to the equity commitment letter is 3,500,000 GPIA ordinary shares at a cash purchase price of $10.00 per share. Any GPIA ordinary shares to be acquired by the Sponsor pursuant to the equity commitment letter shall be acquired by the Sponsor upon or prior to the domestication of GPIA as a Delaware corporation.

For more information on the Sponsor’s equity commitment, see “ GPIA Business Combination Proposal—Related Agreements—Equity Commitment Letter ”.

Warrant Consent and Conversion Agreement

Rimini Street and the Origination Agent are party to a warrant purchase agreement (the “Origination Agent warrant agreement”), dated as of June 24, 2016, pursuant to which Rimini Street issued to the Origination Agent certain warrants (collectively the “Origination Agent warrants”) to purchase an aggregate of 14,110,259 shares of Rimini Street common stock at an exercise price per share of $1.35, upon the terms and subject to the conditions set forth in the Origination Agent warrant agreement.

In connection with the mergers, GPIA and Rimini Street have agreed to increase the aggregate number of shares of Rimini Street common stock issuable under the Origination Agent warrant agreement to include an additional 260,000 shares of Rimini Street common stock at an exercise price per share of $1.35 in full satisfaction of a provision of the Origination Agent warrant agreement. Such provision had required Rimini Street, under certain circumstances, to issue to holders of the Origination Agent warrants additional warrants to purchase a number of shares necessary to ensure that such holders hold 5% of Rimini Street’s fully-diluted share capital.

We have entered into a warrant consent and conversion agreement, dated May 16, 2017, by and among GPIA, Rimini Street and the Origination Agent. Pursuant to the warrant consent and conversion agreement, among other things, the Origination Agent agrees immediately prior to, and contingent upon the occurrence of, the first effective time, to: (i) terminate the Origination Agent warrant agreement, (ii) surrender to Rimini Street any and all of its Origination Agent warrants and (iii) receive warrants relating to shares of RMNI. At the consummation of the business combination, GPIA has agreed to issue to the holders of the Origination Agent warrants and each such holder has agreed to convert their relevant allocated portion of Origination Agent warrants into warrants to purchase shares

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of RMNI. After such conversion, the Origination Agent warrants will be cancelled and cease to represent a right to acquire shares of Rimini Street common stock. The total number of Origination Agent warrants that will be converted and cancelled is expected to result in warrants relating to 3,537,412 shares of RMNI common stock being issued.

Proposals to be Put to the Shareholders of GPIA at the Extraordinary General Meeting

The following is a summary of the proposals to be put to the extraordinary general meeting of the shareholders of GPIA.

GPIA Business Combination Proposal

The merger agreement provides for a business transaction combination pursuant to which, among other things and in accordance with the terms and subject to the conditions of the merger agreement, and following the domestication of GPIA to Delaware, Let’s Go will merge with and into Rimini Street, with Rimini Street as the surviving corporation (which we refer to as the first merger). The surviving corporation from the first merger will then merge with and into GPIA, with GPIA as the surviving corporation (which we refer to as the second merger). Prior to and as a condition of the mergers, GPIA will change its jurisdiction of incorporation by effecting a deregistration under Article 206 of the Cayman Islands Companies Law and a domestication under Section 388 of the DGCL, pursuant to which GPIA’s jurisdiction of incorporation will be changed from the Cayman Islands to the State of Delaware. The mergers will follow the domestication.

The aggregate merger consideration is $775 million, subject to certain adjustments identified in the merger agreement, and is payable entirely in newly issued common stock of RMNI based on a per share issue price of $10.00 per share.

After consideration of the factors identified and discussed in the section entitled “ GPIA Business Combination Proposal—GPIA’s Board of Directors’ and the Special Transaction Committee’s Reasons for the Business Combination ”, GPIA’s board of directors concluded that the business combination met all of the requirements disclosed in the prospectus for its initial public offering, including that the business of Rimini Street had a fair market value of at least 80% of the balance of the funds in the trust account at the time of execution of the merger agreement.

If any proposal is not approved by GPIA’s shareholders at the extraordinary general meeting, the GPIA board of directors may submit the adjournment proposal for a vote.

For additional information, see “ GPIA Business Combination Proposal ” section of this joint proxy statement/prospectus.

GPIA Domestication Proposal

As discussed in this joint proxy statement/prospectus, if the business combination proposal is approved, then GPIA is asking its shareholders to approve the domestication proposal. Under the merger agreement, the approval of the domestication proposal is also a condition to the consummation of the business combination. If, however, the domestication proposal is approved, but the business combination proposal is not approved, then neither the domestication nor the business combination will be consummated.

As a condition to closing the business combination pursuant to the terms of the merger agreement, the board of directors of GPIA has unanimously approved a change of GPIA’s jurisdiction of incorporation by deregistering as an exempted company in the Cayman Islands and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware (the “domestication”). To effect the domestication, GPIA will file a notice of deregistration with the Cayman Islands Registrar of Companies, together with the necessary accompanying documents, and file a certificate of incorporation and a certificate of corporate domestication with the Secretary of State of the State of Delaware, under which GPIA will be domesticated and continue as a Delaware corporation. On the effective date of the domestication, each currently issued and outstanding ordinary share, par value $0.0001 per share, of GPIA will convert automatically by operation of law, on a one-for-one basis, into shares of common stock, par value $0.0001 per share, of GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), which will be renamed “Rimini Street, Inc.” immediately after consummation of the second merger. Similarly, outstanding warrants of GPIA will become warrants to acquire the corresponding shares of RMNI common stock and no other changes will be made to the terms of any outstanding warrants as a result of the domestication.

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The domestication proposal, if approved, will approve a change of GPIA’s jurisdiction of incorporation from the Cayman Islands to the State of Delaware. Accordingly, while GPIA is currently governed by the Cayman Islands Companies Law, upon domestication, RMNI will be governed by the DGCL. Accordingly, we encourage shareholders to carefully consult the information set out below under “ Comparison of Corporate Governance and Shareholder Rights ”. Additionally, we note that if the domestication proposal is approved, then GPIA will also ask its shareholders to approve the organizational documents proposals (discussed below) and we encourage shareholders to carefully consult the section entitled “ GPIA Organizational Documents Proposals ” (including the chart of material differences included therein) and the Proposed Organizational Documents of RMNI, attached hereto as Annexes C and D.

For additional information, see “ GPIA Domestication Proposal ” section of this joint proxy statement/prospectus.

GPIA Organizational Documents Proposals

If the domestication proposal is approved and the business combination is to be consummated, GPIA will replace the current amended and restated memorandum of association of GPIA under the Cayman Islands Companies Law (the “Existing Memorandum”) and the current articles of association of GPIA (the “Existing Articles” and, together with the Existing Memorandum, the “Existing Organizational Documents”), in each case, under the Cayman Islands Companies Law, with a new certificate of incorporation (the “Proposed Charter”) and bylaws (the “Proposed Bylaws” and, together with the Proposed Charter, the “Proposed Organizational Documents”) of RMNI, in each case, under the Delaware General Corporation Law.

The Proposed Organizational Documents differ in certain material respects from the Existing Organizational Documents and we encourage shareholders to carefully consult the information set out in the Section “ GPIA Organizational Documents Proposals ” (including the chart of material differences included therein) and the full text of the Proposed Organizational Documents of RMNI, attached hereto as Annexes C and D.

GPIA’s shareholders are asked to consider and vote upon and to approve by special resolution seven separate proposals (collectively, the “organizational documents proposals”) in connection with the replacement of the Existing Organizational Documents with the Proposed Organizational Documents. The organizational documents proposals are conditioned on the approval of the domestication proposal, and, therefore, also conditioned on approval of the business combination proposal. Therefore, if the business combination proposal and the domestication proposal are not approved, the organizational documents proposals will have no effect, even if approved by holders of GPIA ordinary shares. A brief summary of each of the organizational documents proposals is set forth below. These summaries are qualified in their entirety by reference to the complete text of the Proposed Organizational Documents of RMNI.

GPIA Organizational Documents Proposal A—Approval of Authorization of Additional Shares of Common Stock and Preferred Stock of RMNI

Assuming the business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal A, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the business combination, and therefore, approval of this organizational documents proposal A is a condition to the consummation of the business combination.

As of the date of this joint proxy statement/prospectus, GPIA had 20,009,776 ordinary shares issued and outstanding, consisting of 15,697,276 shares sold as part of the units issued in our initial public offering (being 17,250,000 public shares issued in our initial public offering as reduced by the redemption of 1,552,724 public shares on May 25, 2017 in connection with the Extension) and 4,312,500 founder shares that were issued to the Sponsor prior to our initial public offering. All of the outstanding ordinary shares of GPIA will be converted by operation of law into shares of common stock of RMNI in the domestication.

In connection with the business combination, based on an illustrative Closing Date of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), based on assumptions described elsewhere in this joint proxy statement/prospectus, upon consummation of the first merger the stockholders of Rimini Street immediately prior to consummation of the first

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merger will receive 50,183,837 shares of RMNI common stock. In addition, in certain circumstances described elsewhere in this joint proxy statement/prospectus, the Sponsor may subscribe for up to 3,500,000 GPIA ordinary shares pursuant to its equity commitment at or prior to the consummation of the business combination.

In order to ensure that RMNI has sufficient authorized capital for future issuances, our board of directors has approved, subject to stockholder approval, that the Proposed Organizational Documents of RMNI (i) increase the number of shares of our common stock from 400,000,000 ordinary shares (as currently authorized in GPIA’s Existing Organizational Documents), to 1,000,000,000 shares of RMNI common stock (an increase of 600,000,000 shares of common stock), and (ii) increase the number of shares of our preferred stock from 20,000,000 (as currently authorized in GPIA’s Existing Organizational Documents), to 100,000,000 shares of RMNI preferred stock (an increase of 80,000,000 shares of preferred stock).

For additional information, see “ GPIA Organizational Documents Proposal A—Approval of Authorization of Additional Shares of Common Stock and Preferred Stock of RMNI, as Set Forth in the Proposed Organizational Documents ” section of this joint proxy statement/prospectus.

Organizational Documents Proposal B—Approval of Issuance of Preferred Stock of RMNI at the Board of Directors’ Sole Discretion

Assuming the business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal B, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the business combination, and therefore approval of this organizational documents proposal B is a condition to the consummation of the business combination.

GPIA currently has 20,000,000 shares of preferred stock that, assuming approval of the domestication proposal and RMNI’s incorporation in the State of Delaware, will become 20,000,000 shares of preferred stock of RMNI. In addition, if organizational documents proposal A is approved, the number of authorized shares of preferred stock of RMNI will be increased by 80,000,000 to 100,000,000 shares of preferred stock of RMNI. Approval of this organizational documents proposal B will allow for issuance of any or all of these shares of preferred stock from time to time at the discretion of the board of directors, as may be permitted by the DGCL, and without further stockholder action. The shares of preferred stock would be issuable for any proper corporate purpose, including, among other things, future acquisitions, capital raising transactions consisting of equity or convertible debt, stock dividends or issuances under current and any future stock incentive plans, pursuant to which we may provide equity incentives to employees, officers and directors, and in certain instances may be used as an anti-takeover defense.

For additional information, see “ GPIA Organizational Documents Proposal B—Approval of Proposal Regarding Issuance of Preferred Stock of RMNI at the Board of Directors’ Sole Discretion, as Set Forth in the Proposed Organizational Documents ” section of this joint proxy statement/prospectus.

Organizational Documents Proposal C—Standard Required for Director Removal

Assuming the business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal C, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the business combination and therefore approval of this organizational documents proposal C is a condition to the consummation of the business combination.

The Proposed Organizational Documents stipulate that any director or the entire board of directors may be removed from office at any time, but only for cause. Additionally, a decrease in the size of the board of directors will not have the effect of removing any incumbent director before his or her term expires.

For additional information, see “ GPIA Organizational Documents Proposal C—Approval of Standard Required For Director Removal, as Set Forth in the Proposed Organizational Documents ” section of this joint proxy statement/prospectus.

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Organizational Documents Proposal D—Approval of Proposal Relating to the Ability of Stockholders to Call a Special Meeting

Assuming the business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal D, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the business combination and therefore, approval of this organizational documents proposal D is a condition to the consummation of the business combination.

The Proposed Organizational Documents stipulate that, unless required by law, special meetings of stockholders may only be called by (i) the RMNI board of directors, (ii) the chairperson of the board of directors, (iii) the chief executive officer of RMNI or (iv) the president of RMNI (in the absence of the chief executive officer). Under the Proposed Organizational Documents, RMNI’s stockholders have no power to call a special meeting.

For additional information, see “ GPIA Organizational Documents Proposal D—Approval of Proposal Regarding the Ability of Stockholders To Call A Special Meeting, as Set Forth in the Proposed Organizational Documents ” section of this joint proxy statement/prospectus.

Organizational Documents Proposal E—Approval of Proposal Relating to the Ability of Stockholders to Act By Written Consent

Assuming the business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal E, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the business combination and therefore, approval of this organizational documents proposal E is a condition to the consummation of the business combination.

The Proposed Organizational Documents stipulate that any action required or permitted to be taken by the stockholders of RMNI must be effected at a duly called annual or special meeting of stockholders of RMNI, and may not be effected by any consent in writing by such stockholders.

For additional information, see “ GPIA Organizational Documents Proposal E—Approval of Proposal Regarding the Ability of Stockholders To Act By Written Consent, as Set Forth in the Proposed Organizational Documents ” section of this joint proxy statement/prospectus.

Organizational Documents Proposal F—Approval of Threshold for Stockholder Vote to Amend to the Certificate of Incorporation and Bylaws of RMNI

Assuming the business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal F, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the business combination and therefore approval of this organizational documents proposal F is a condition to the consummation of the business combination.

The Proposed Organizational Documents stipulate that RMNI reserves the right to amend, alter, change or repeal any provision of its certificate of incorporation. Stockholders of RMNI can amend, alter, change or repeal any provision of RMNI’s certificate of incorporation (other than the articles thereof relating to RMNI’s name, address and registered office, purpose and matters related to RMNI’s common and preferred stock), by the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of RMNI’s then outstanding capital stock entitled to vote generally in the election of directors, voting together as a single class.

The Proposed Organizational Documents also stipulate that RMNI’s bylaws may be amended, altered or repealed by the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of RMNI’s then outstanding capital stock entitled to vote generally in the election of directors, voting together as a single class. This provision is in addition to the ability of RMNI’s board of directors to take such action by the affirmative vote of at least a majority of the entire board of directors.

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For additional information, see “ GPIA Organizational Documents Proposal F—Approval of Threshold for Stockholder Vote to Amend (1) Certain Provisions of the Certificate of incorporation and (2) the Bylaws of RMNI, as Set Forth in the Proposed Organizational Documents ” section of this joint proxy statement/prospectus.

Organizational Documents Proposal G—Approval of Other Changes in Connection with Adoption of the Proposed Organizational Documents

Assuming the business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal G, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the business combination and therefore, approval of this organizational documents proposal G is a condition to the consummation of the business combination.

Organizational documents proposal G is a proposal to authorize all other changes in connection with the replacement of our memorandum and articles of association with a new certificate of incorporation and bylaws of RMNI as part of the domestication, including (i) changing the post-business combination corporate name from “GP Investments Acquisition Corp.” to “Rimini Street, Inc.” (with such change expected to be made immediately following the consummation of the second merger) and making RMNI’s corporate existence perpetual, (ii) adopting Delaware as the exclusive forum for certain stockholder litigation, and (iii) removing certain provisions related to our status as a blank check company that will no longer apply upon consummation of the business combination, all of which GPIA’s board of directors believe is necessary to adequately address the needs of RMNI after the business combination.

For additional information, see “ GPIA Organizational Documents Proposal G—Approval of Other Changes in Connection With Adoption of the Proposed Organizational Documents ” section of this joint proxy statement/prospectus.

GPIA Stock Issuance Proposal

Assuming the business combination proposal, the domestication proposal and each of the organizational documents proposals are approved, our shareholders are also being asked to approve, by ordinary resolution, the stock issuance proposal.

Our common shares are listed on NASDAQ and, as such, we are seeking shareholder approval of the issuance of RMNI common stock to (1) the existing stockholders of Rimini Street in connection with the business combination and (2) the Sponsor pursuant to its equity commitment in connection with the business combination, to the extent such issuance would require a shareholder vote under NASDAQ Listing Rule 5635, in each case, in order to comply with NASDAQ Listing Rule 5635.

For additional information, see “ GPIA Stock Issuance Proposal ” section of this joint proxy statement/prospectus.

GPIA Adjournment Proposal

If, based on the tabulated vote, there are not sufficient votes at the time of the extraordinary general meeting to authorize GPIA to consummate the business combination (because any of the condition precedent proposals have not been approved (including as a result of the failure of any other cross-conditioned condition precedent proposals to be approved)), GPIA’s board of directors may submit a proposal to adjourn the extraordinary general meeting to a later date or dates, if necessary, to permit further solicitation of proxies.

For additional information, see “ GPIA Adjournment Proposal ” section of this joint proxy statement/prospectus.

GPIA Initial Shareholders

As of the date of this joint proxy statement/prospectus, the Sponsor, GPIC, Ltd., an affiliate of GP Investments, Ltd., owns 4,252,500 ordinary shares, and our independent directors own an aggregate of 60,000 ordinary shares. We refer to the Sponsor and our independent directors that own any of our ordinary shares as our “initial shareholders”, and the 4,312,500 ordinary shares that they own in aggregate are referred to as the “founder shares”. In addition, the

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Sponsor owns 6,062,500 warrants (the “private placement warrants”) that were issued in a private placement that closed simultaneously with our initial public offering. In addition, an affiliate of the Sponsor owns 52,100 warrants that were acquired by such affiliate in the secondary market following our initial public offering.

Assuming consummation of the business combination as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), immediately following the consummation of the business combination (without taking into account any GPIA ordinary shares held by Rimini Street stockholders prior to the consummation of the business combination, and assuming (i) that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination, (ii) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants and (iii) that no public shareholders exercise their redemption rights), the former equityholders of Rimini Street are expected to own approximately 71.5% of RMNI’s common stock (or 65.5% of RMNI’s common stock on a fully-diluted basis) and GPIA’s current shareholders are expected to own approximately 28.5% of RMNI’s common stock (or 34.5% of RMNI’s common stock on a fully-diluted basis), which comprises (i) 6.2% of RMNI’s common stock (or 10.4% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s initial shareholders and (ii) 22.4% of RMNI’s common stock (or 24.2% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s public shareholders.

Assuming consummation of the business combination as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), immediately following the consummation of the business combination (without taking into account any GPIA ordinary shares held by Rimini Street stockholders prior to the consummation of the business combination, and assuming (i) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants, (ii) that the Sponsor subscribes for 3,500,000 GPIA ordinary shares pursuant to its equity commitment at or prior to the consummation of the business combination and (iii) that holders of 14,205,056 GPIA ordinary shares (or 90.5% of the outstanding public shares) (being our estimate of the maximum number of GPIA public shares that could be redeemed in order for GPIA to have $50,000,000 of available cash upon consummation of the first merger, after taking into account the Sponsor’s maximum equity commitment of $35,000,000) elect to redeem their ordinary shares in connection with the business combination), the former equityholders of Rimini Street are expected to own approximately 84.4% of RMNI’s common stock (or 73.3% of RMNI’s common stock on a fully-diluted basis) and GPIA’s current shareholders are expected to own approximately 15.6% of RMNI’s common stock (or 26.7% of RMNI’s common stock on a fully-diluted basis), which comprises (i) 13.1% of RMNI’s common stock (or 15.5% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s initial shareholders and (ii) 2.5% of RMNI’s common stock (or 11.3% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s public shareholders.

In connection with our initial public offering, our initial shareholders entered into letter agreements to vote their founder shares, as well as any public shares purchased during or after our initial public offering, in favor of the business combination proposal. In addition, on May 16, 2017, in connection with the transactions contemplated by the merger agreement, GPIAC, LLC entered into a transaction support and voting agreement with GPIA and Rimini Street, pursuant to which, among other things, GPIAC, LLC agreed to vote its GPIA ordinary shares in favor of the transactions at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, the aggregate number of shares covered by the transaction support and voting agreement entered into by GPIAC, LLC represents 21.3% of the outstanding GPIA ordinary shares. In addition, our independent directors have indicated that they intend to vote their shares in favor of all other proposals being presented at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, our independent directors own 0.3% of the outstanding GPIA ordinary shares.

In connection with our initial public offering, the founder shares were placed into an escrow account maintained in New York, New York by Continental Stock Transfer & Trust Company, acting as escrow agent. Subject to certain limited exceptions, these founder shares will not be transferred, assigned or sold until released from escrow on the

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date that is one year after the date of the consummation of our initial business combination or earlier if, subsequent to our business combination, (i) the last sale price of our ordinary shares equals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing at least 150 days after our initial business combination or (ii) we consummate a subsequent liquidation, merger, share exchange or other similar transaction which results in all of our shareholders having the right to exchange their ordinary shares for cash, securities or other property. We refer to such transfer restrictions throughout this joint proxy statement/prospectus as the “lock-up”.

Organizational Structure

The following diagram illustrates the ownership structure of RMNI immediately following consummation of the business combination. This diagram does not take into account any GPIA ordinary shares held by Rimini Street stockholders prior to the consummation of the business combination, is based on an illustrative Closing Date of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus) and assumes (i) the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination, (ii) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and (iii) that no public shareholders exercise their redemption rights. If these assumptions are not correct, then the shareholdings set forth in the diagram below would change.


Date, Time and Place of Extraordinary General Meeting of GPIA’s Shareholders

The extraordinary general meeting of the shareholders of GPIA will be held at [•] [a.m.][p.m.], Eastern Time, on [•], 2017, at the offices of Skadden, Arps, Slate, Meagher & Flom LLP at 4 Times Square, New York, New York 10036, to consider and vote upon the proposals to be put to the extraordinary general meeting, including if necessary, the adjournment proposal, to permit further solicitation and vote of proxies if, based upon the tabulated vote at the time of the extraordinary general meeting, each of the condition precedent proposals have not been approved.

Voting Power; Record Date

GPIA shareholders will be entitled to vote or direct votes to be cast at the extraordinary general meeting if they owned GPIA ordinary shares at the close of business on [•], 2017, which is the record date for the extraordinary general meeting. Shareholders will have one vote for each GPIA ordinary share owned at the close of business on the record date. If your shares are held in “street name” or are in a margin or similar account, you should contact your broker to ensure that votes related to the shares you beneficially own are properly counted. Our warrants do not have voting rights. On the record date, there were 20,009,776 GPIA ordinary shares outstanding, of which 15,697,276 were public shares with the rest being held by the GPIA initial shareholders.

Quorum and Vote of GPIA Shareholders

A quorum of GPIA shareholders is necessary to hold a valid meeting. A quorum will be present at the GPIA general meeting if a majority of the outstanding shares entitled to vote at the extraordinary general meeting are represented in person or by proxy. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

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As of the record date for the extraordinary general meeting, 10,004,889 GPIA ordinary shares would be required to achieve a quorum.

In connection with our initial public offering, our initial shareholders (consisting of the Sponsor and our independent directors at the time of our initial public offering) entered into letter agreements to vote their founder shares, as well as any public shares purchased during or after our initial public offering, in favor of the business combination proposal. In addition, on May 16, 2017, in connection with the transactions contemplated by the merger agreement, GPIAC, LLC entered into a transaction support and voting agreement with GPIA and Rimini Street, pursuant to which, among other things, GPIAC, LLC agreed to vote its GPIA ordinary shares in favor of the transactions at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, the aggregate number of shares covered by the transaction support and voting agreement entered into by GPIAC, LLC represents 21.3% of the outstanding GPIA ordinary shares. In addition, our independent directors have indicated that they intend to vote their shares in favor of all other proposals being presented at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, our independent directors own 0.3% of the outstanding GPIA ordinary shares.

The proposals presented at the extraordinary general meeting require the following votes:

Business combination proposal : The approval of the business combination proposal requires the affirmative vote for the proposal by the holders of a majority of the then outstanding ordinary shares who, being present and entitled to vote at the extraordinary general meeting to approve the business combination proposal, vote at the extraordinary general meeting.
Domestication proposal : The approval of the domestication proposal by special resolution requires a special resolution under Cayman Islands Companies Law, being the affirmative vote for the proposal by the holders of not less than two-thirds of the then outstanding ordinary shares who, being present and entitled to vote at the extraordinary general meeting to approve the domestication proposal, vote at the extraordinary general meeting.
Organizational documents proposals : The separate approval of each of the organizational documents proposals by special resolution requires a special resolution under the Cayman Islands Companies Law, being the affirmative vote for each of the organizational documents proposals by the holders of not less than two-thirds of the then outstanding ordinary shares who, being present and entitled to vote at the extraordinary general meeting to approve each such organizational documents proposal, vote at the extraordinary general meeting.
Stock issuance proposal : The approval of the stock issuance proposal requires the affirmative vote for the proposal by the holders of a majority of the then outstanding ordinary shares who, being present and entitled to vote at the extraordinary general meeting to approve the stock issuance proposal, vote at the extraordinary general meeting.
Adjournment proposal : The approval of the adjournment proposal requires the affirmative vote for the proposal by the holders of a majority of the then outstanding ordinary shares who, being present and entitled to vote at the extraordinary general meeting to approve the adjournment proposal, vote at the extraordinary general meeting.

Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

Redemption Rights

Pursuant to our memorandum and articles of association, a public shareholder may request of GPIA that RMNI redeem all or a portion of the RMNI public shares that such public shareholder will hold following the domestication for cash if the business combination is consummated. GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware) will be the continuing entity following the domestication, which is the entity that survives the mergers (and which will be renamed “Rimini Street, Inc.” immediately after consummation of the second merger). As a change of entity name does not involve a change in the legal form of the

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entity, in this joint proxy statement/prospectus, “RMNI” refers to GP Investments Acquisition Corp., a corporation incorporated in the State of Delaware, including subsequent to its change of name to Rimini Street, Inc. Public shareholders will be entitled to receive cash for RMNI public shares only as provided below:

(i) if the public shareholder holds ordinary shares through units, the shareholder must elect to separate its units into the underlying public shares and public warrants prior to exercising its redemption rights with respect to the public shares;
(ii) the public shareholder must submit a written request to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, that RMNI redeem all or a portion of their RMNI public shares for cash prior to the extraordinary general meeting; and
(iii) the public shareholder must deliver its ordinary shares to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, physically or electronically through DTC.

Holders of GPIA public shares should complete the procedures for electing to redeem their GPIA public shares in the manner described above prior to 5:00 p.m. Eastern Time on [ ], 2017 (two business days before the extraordinary general meeting).

As noted above, holders of units must elect to separate the underlying public shares and public warrants prior to exercising redemption rights with respect to the public shares. Holders may instruct their broker to do so, or if a holder holds units registered in its own name, the holder must contact Continental Stock Transfer & Trust Company, GPIA’s transfer agent, directly and instruct them to do so. Public stockholders may elect to redeem RMNI public shares regardless of if or how they vote in respect of the business combination proposal . If the business combination is not consummated, the public shares will not be redeemed for cash. If a public shareholder properly exercises its right to redeem all or a portion of the RMNI public shares that it will hold upon the domestication and timely delivers its public shares to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, RMNI will redeem such RMNI public shares into a pro rata portion of the trust account, calculated as of two business days prior to the consummation of the business combination. For illustrative purposes, as of May 25, 2017 (after giving effect to the redemptions of public shares redeemed in connection with the Extension), this would have amounted to approximately $10.05 per public share. If a public shareholder exercises its redemption rights, then it will be electing to exchange its GPIA ordinary shares (that become RMNI shares upon the domestication) for cash and will no longer own RMNI public shares. The redemption takes place following the domestication and accordingly it is RMNI public shares that are redeemed immediately after consummation of the second merger. See “ Extraordinary General Meeting of Shareholders of GPIA —Redemption Rights ” for a detailed description of the procedures to be followed if you wish to redeem your RMNI public shares for cash.

Notwithstanding the foregoing, a holder of public shares, together with any affiliate of such public shareholder or any other person with whom such public shareholder is acting in concert or as a “group” (as defined in Section 13(d)(3) of the Exchange Act), will be restricted from redeeming its RMNI public shares with respect to more than an aggregate of 20% of the RMNI public shares. Accordingly, if a public shareholder, alone or acting in concert or as a group, seeks to redeem more than 20% of the public shares, then any such shares in excess of that 20% limit would not be redeemed for cash.

Under the merger agreement, the consummation of the first merger is conditioned upon, among other things, (i) there being a minimum of $50,000,000 of cash available to GPIA (including the cash in our trust account and any cash provided by the Sponsor pursuant to its equity commitment) and (ii) there being a minimum amount of immediately available cash in the trust account of not less than $5,000,001 after giving effect to the redemption of GPIA ordinary shares that holders of GPIA ordinary shares validly elected to redeem in connection with the business combination. Therefore, unless these conditions are waived by GPIA, Let’s Go and Rimini Street, the merger agreement could terminate and the proposed business combination may not be consummated. There can be no assurance that GPIA, Let’s Go and Rimini Street would waive such provisions of the merger agreement. Furthermore, as provided in our memorandum and articles of association, in no event will we redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001 (so that we are not subject to the SEC’s “penny stock” rules).

In order for public shareholders to exercise their redemption rights in respect of the proposed business combination, public shareholders must properly exercise their right to redeem the RMNI public shares that you will hold upon the domestication prior to the extraordinary general meeting and deliver their ordinary shares (either

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physically or electronically) to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, prior to the extraordinary general meeting. Holders of GPIA public shares should complete the procedures for electing to redeem their GPIA public shares in the manner described above prior to 5:00 p.m. Eastern Time on [ ], 2017 (two business days before the extraordinary general meeting).

Therefore, the election to exercise redemption rights occurs prior to the domestication and the redemption is with respect to the RMNI public shares that an electing public shareholder holds after the domestication. For the purposes of Article 48.3 of our memorandum and articles of association and the Cayman Islands Companies Law, the exercise of redemption rights shall be treated as an election to have such public shares repurchased for cash and references in this joint proxy statement/prospectus to “redemption” or “redeeming” shall be interpreted accordingly. Immediately following the domestication and the consummation of the business combination, RMNI shall satisfy the exercise of redemption rights by redeeming the RMNI public shares issued to the public shareholders that validly exercised their redemption rights.

Holders of our warrants will not have redemption rights with respect to the warrants.

Appraisal Rights

Neither GPIA shareholders nor GPIA warrant holders have appraisal rights in connection with the business combination or the domestication under the Cayman Islands Companies Law or under the DGCL.

Proxy Solicitation

Proxies may be solicited by mail, telephone or in person. GPIA has engaged Morrow Sodali LLC to assist in the solicitation of proxies.

If a shareholder grants a proxy, it may still vote its shares in person if it revokes its proxy before the extraordinary general meeting. A shareholder also may change its vote by submitting a later-dated proxy as described in the section entitled “ Special Meeting of GPIA Shareholders—Revoking Your Proxy ”.

Interests of GPIA’s Directors and Officers in the Business Combination

When you consider the recommendation of GPIA’s board of directors in favor of approval of the business combination proposal, you should keep in mind that GPIA’s initial shareholders, including its directors and executive officers, have interests in such proposal that are different from, or in addition to, those of GPIA shareholders and warrant holders generally. These interests include, among other things, the interests listed below:

If we do not consummate a business combination transaction by November 27, 2017, we would cease all operations except for the purpose of winding up, redeeming all of the outstanding public shares for cash and, subject to the approval of our remaining shareholders and our board of directors, dissolving and liquidating, subject in each case to our obligations under the Cayman Islands Companies Law to provide for claims of creditors and the requirements of other applicable law. In such event, the 4,312,500 founder shares owned by our initial shareholders would be worthless because following the redemption of the public shares, we would likely have few, if any, net assets and because our initial shareholders have agreed to waive their rights to liquidating distributions from the trust account with respect to the founder shares if we fail to complete a business combination within the required period. The Sponsor purchased the founder shares prior to our initial public offering for an aggregate purchase price of $25,000, or approximately $0.006 per share. Such founder shares had an aggregate market value of $43,081,875 based upon the closing price of $9.99 per share on the NASDAQ on June 29, 2017, the most recent closing price.
In addition, simultaneously with the closing of our initial public offering, GPIA consummated the sale of 6,062,500 private placement warrants at a price of $1.00 per warrant in a private placement to the Sponsor. In addition, an affiliate of the Sponsor owns 52,100 warrants that were acquired by such affiliate in the secondary market following our initial public offering. The warrants are each exercisable for one ordinary share at $11.50 per share. If we do not consummate a business combination transaction by November 27, 2017, then the aggregate proceeds of $6,062,500 from the sale of the private placement warrants will be part of the liquidating distribution to the public shareholders, and the warrants held by the Sponsor and its affiliate will be worthless. The warrants held by the Sponsor and its affiliate had an aggregate market value of $4,402,512 based upon the closing price of $0.72 per warrant on the NASDAQ on June 29, 2017, the most recent closing price.

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Antonio Bonchristiano, our Chief Executive Officer and Chief Financial Officer, will be a director of RMNI after the consummation of the business combination. As such, in the future he will receive any cash fees, stock options, stock awards or other remuneration that the RMNI board of directors determines to pay to him.
In order to protect the amounts held in the trust account, the Sponsor has agreed that it will be liable to us if and to the extent any claims by a vendor for services rendered or products sold to us, or a prospective target business with which we have discussed entering into a transaction agreement, reduce the amount of funds in the trust account. This liability will not apply with respect to any claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in the trust account or to any claims under our indemnity of the underwriters of this offering against certain liabilities, including liabilities under the Securities Act.
Following consummation of the business combination, the Sponsor would be entitled to the repayment of any working capital loan and advances that have been made to GPIA and remain outstanding. The Sponsor has previously made working capital loans to us and may, in the future, make further working capital loans to us. As of March 31 2017, the Sponsor has committed to provide loans to GPIA up to an aggregate of $3,400,000 in order to finance transaction costs in connection with a business combination. The loans are evidenced by a promissory note, are non-interest bearing, unsecured and will only be repaid upon the completion of a business combination. As of March 31, 2017, $2,682,893 was outstanding under the loans. Up to $1,000,000 of working capital loans may be convertible into warrants of RMNI at a price of $1.00 per warrant at the option of the Sponsor. Such warrants would be identical to the private placement warrants. The terms of such working capital loans have not been determined and no written agreements exist with respect to the working capital loans. If we do not complete an initial business combination within the required period, we may use a portion of our working capital held outside the trust account to repay the working capital loans, but no proceeds held in the trust account would be used to repay the working capital loans.
Following consummation of the business combination, the Sponsor, our officers and directors and their respective affiliates would be entitled to reimbursement for any reasonable out-of-pocket expenses related to identifying, investigating and consummating an initial business combination, and repayment of any other loans, if any, and on such terms as to be determined by GPIA from time to time, made by the Sponsor or certain of our officers and directors to finance transaction costs in connection with an intended initial business combination. However, if we fail to consummate a business combination within the required period, the Sponsor and our officers and directors and their respective affiliates will not have any claim against the trust account for reimbursement. As of March 31 2017, the Sponsor has committed to provide loans to GPIA up to an aggregate of $3,400,000 in order to finance transaction costs in connection with a business combination. The loans are evidenced by a promissory note, are non-interest bearing, unsecured and will only be repaid upon the completion of a business combination. As of March 31, 2017, $2,682,893 was outstanding under the loans. Up to $1,000,000 of working capital loans may be convertible into warrants of the post business combination entity at a price of $1.00 per warrant at the option of the Sponsor.

At any time prior to the extraordinary general meeting, during a period when they are not then aware of any material nonpublic information regarding GPIA or its securities, the GPIA initial shareholders, Rimini Street and/or its affiliates may purchase shares from institutional and other investors who vote, or indicate an intention to vote, against the business combination proposal, or execute agreements to purchase such shares from such investors in the future, or they may enter into transactions with such investors and others to provide them with incentives to acquire shares of GPIA’s ordinary shares or vote their shares in favor of the business combination proposal. The purpose of such share purchases and other transactions would be to increase the likelihood of satisfaction of the requirements that (i) holders of a majority of the shares who, being present and entitled to vote at the extraordinary general meeting and who do vote, vote in favor of the business combination proposal, the stock issuance proposal and the adjournment proposal, (ii) holders of at least two-thirds of the share who, being present and entitled to vote at the extraordinary general meeting and who do vote, vote in favor of the domestication proposal and the organizational documents proposals, and (iii) the minimum available cash condition of $50,000,000 and the condition that the minimum trust account balance of $5,000,001 are satisfied. Any such share purchases and other transactions may thereby increase the likelihood of obtaining shareholder approval of the business combination. This may result in the completion of our business combination that may not otherwise have been possible. While the exact nature of any such incentives

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has not been determined as of the date of this joint proxy statement/prospectus, they might include, without limitation, arrangements to protect such investors or holders against potential loss in value of their shares, including the granting of put options and the transfer to such investors or holders of shares or rights owned by the GPIA initial shareholders for nominal value.

Entering into any such arrangements may have a depressive effect on GPIA’s ordinary shares. For example, as a result of these arrangements, an investor or holder may have the ability to effectively purchase shares at a price lower than market and may therefore be more likely to sell the shares he owns, either prior to or immediately after the extraordinary general meeting. Moreover, any such purchases may make it more likely that the minimum available cash condition of $50,000,000 and the condition that the minimum trust account balance of $5,000,001 are satisfied.

If such transactions are effected, the consequence could be to cause the business combination to be approved in circumstances where such approval could not otherwise be obtained. Purchases of shares by the persons described above would allow them to exert more influence over the approval of the proposal to be presented at the extraordinary general meeting and would likely increase the chances that such proposals would be approved. As of the date of this joint proxy statement/prospectus, there have been no such discussions and no agreements to such effect have been entered into with any such investor or holder. GPIA will file a Current Report on Form 8-K to disclose any arrangements entered into or significant purchases made by any of the aforementioned persons that would affect the vote on the proposals to be put to the extraordinary general meeting or the redemption threshold. Any such report will include descriptions of any arrangements entered into or significant purchases by any of the aforementioned persons.

The existence of financial and personal interests of one or more of GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is best for GPIA and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the sections entitled “ Risk Factors ” and “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this and other risks.

Recommendation to Shareholders of GPIA

GPIA’s board of directors believes that the business combination proposal and the other proposals to be presented at the extraordinary general meeting are in the best interest of GPIA’s shareholders and unanimously recommends that its shareholders vote “FOR” the business combination proposal, “FOR” the domestication proposal, “FOR” each of the separate organizational documents proposals, “FOR” the stock issuance proposal and “FOR” the adjournment proposal, in each case, if presented to the extraordinary general meeting.

The existence of financial and personal interests of one or more of GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

Proposals to be Put to the Stockholders of Rimini Street at the Special Meeting

The following is a summary of the proposals to be put to the special meeting of stockholders of Rimini Street.

Rimini Street Business Combination Proposal

The merger agreement provides for a business transaction combination pursuant to which, among other things and in accordance with the terms and subject to the conditions of the merger agreement, Let’s Go will merge with and into Rimini Street, with Rimini Street as the surviving corporation (which we refer to as the first merger). The surviving corporation from the first merger will then merge with and into GPIA, with GPIA as the surviving corporation (which we refer to as the second merger). Prior to and as a condition of the mergers, GPIA will change its jurisdiction of incorporation by effecting a deregistration under Article 206 of the Cayman Islands Companies Law and a domestication under Section 388 of the DGCL, pursuant to which GPIA’s jurisdiction of incorporation will be changed from the Cayman Islands to the State of Delaware. The mergers will follow the domestication.

The aggregate merger consideration is $775 million, subject to certain adjustments identified in the merger agreement, and is payable entirely in newly issued common stock of RMNI based on a per share issue price of $10.00 per share.

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After consideration of the factors identified and discussed in the section entitled “ Rimini Street Business Combination Proposal—Rimini Street’s Board of Directors’ Reasons for the Business Combination ”, Rimini Street’s board of directors concluded that the business combination, on the terms and conditions set forth in the merger agreement and other related documents, is advisable and fair to, and in the best interests of, Rimini Street’s stockholders.

For additional information, see the section entitled “ Rimini Street Business Combination Proposal ” in this joint proxy statement/prospectus.

Rimini Street Preferred Stock Conversion Proposal

Pursuant to the merger agreement, the holders of Rimini Street common stock will be entitled to the right to receive the applicable portion of merger consideration. As a result, in order to participate in the merger consideration provided to the holders of Rimini Street common stock, the holders of Rimini Street preferred stock are requesting the automatic conversion of all outstanding shares of Rimini Street preferred stock into shares of Rimini Street common stock.

For additional information, see the section entitled “ Rimini Street Preferred Stock Conversion Proposal ” in this joint proxy statement/prospectus.

Date, Time and Place of Special Meeting of Rimini Street’s Stockholders

The special meeting of the stockholders of Rimini Street will be held at [•] [a.m.][p.m.], Pacific Time, on [•], 2017, at [•], to consider and vote upon the proposals to be put to the special meeting.

Voting Power; Record Date of Special Meeting of Rimini Street’s Stockholders

Rimini Street stockholders will be entitled to vote or direct votes to be cast at the special meeting if they owned shares of Rimini Street capital stock at the close of business on [•], 2017, which is the record date for the special meeting. Each share of Rimini Street Class A Common Stock is entitled to one vote per share at the special meeting and each share of Rimini Street Class B Common Stock is entitled to fifteen votes per share at the special meeting. Each share of Rimini Street Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock is entitled to the number of votes equal to the number of shares of Class A Common Stock or Class B Common Stock, as applicable, into which the shares of preferred stock held by such holder could be converted as of the record date. As of the record date, each share of Rimini Street Series A Preferred Stock and Rimini Street Series B Preferred Stock will convert into one share of Rimini Street Class B Common Stock and each share of Rimini Street Series C Preferred Stock will convert into one share of Rimini Street Class A Common Stock. As of the close of business on the record date, there were [•] shares of Rimini Street Class A Common Stock, [•] shares of Rimini Street Class B Common Stock, [•] shares of Rimini Street Series A Preferred Stock, [•] shares of Rimini Street Series B Preferred Stock, and [•] shares of Rimini Street Series C Preferred Stock outstanding and entitled to vote.

Quorum and Vote of Rimini Street Stockholders

A quorum of Rimini Street stockholders is necessary to hold a valid meeting. The presence, in person or by proxy, of a majority of the aggregate voting power of the capital stock issued and outstanding and entitled to vote constitutes a quorum at the special meeting. Abstentions, while considered present for the purposes of establishing a quorum, will not count as votes cast at the special meeting.

As of the record date for the special meeting, [•] shares of Rimini Street capital stock would be required to achieve a quorum.

The proposals presented at the special meeting require the following votes:

Rimini Street business combination proposal : The affirmative vote of the holders of a (i) the majority of the voting power of shares of Rimini Street capital stock, (ii) more than 50% of the outstanding shares of Rimini Street Series B Preferred Stock and Series C Preferred Stock, voting as a single class and on an as-converted basis (each holder of Rimini Street Preferred Stock shall be entitled to the number of votes equal to the number of shares of Rimini Street Class B Common Stock or Rimini Street Class A Common Stock, as applicable, into which the shares of Rimini Street Preferred Stock held by such holder could be

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converted as of the record date), and (iii) the majority of the outstanding shares of Rimini Street Class A Common Stock and Rimini Street Class B Common Stock, voting as a single class, present in person or represented by proxy at the Rimini Street special meeting is required to approve the Rimini Street business combination proposal.

Rimini Street Preferred Stock Conversion Proposal : The affirmative vote of the holders of a majority of the shares of Rimini Street preferred stock then outstanding (voting as a single class on an as-converted basis) present in person or represented by proxy at the Rimini Street special meeting is required to approve the Rimini Street preferred stock conversion proposal. Each holder of Rimini Street Preferred Stock shall be entitled to the number of votes equal to the number of shares of Rimini Street Class B Common Stock or Rimini Street Class A Common Stock, as applicable, into which the shares of Rimini Street Preferred Stock held by such holder could be converted as of the record date.

Abstentions, while considered present for the purposes of establishing a quorum, will not count as votes cast at the special meeting.

Appraisal Rights for Rimini Street Stockholders

Rimini Street stockholders will be entitled to dissenters’ rights only if they comply with the Nevada law procedures summarized in the section entitled “ Appraisal Rights ”. To be eligible to exercise appraisal rights, record holders of Rimini Street capital stock must not vote in favor of the business combination and must properly demand payment for their shares. The entirety of sections 92A.300 to 92A.500 of the Nevada Revised Statutes (the “Nevada Dissenter’s Rights Statute”) is provided on Annex I to this joint proxy statement/prospectus. Upon effectiveness of the business combination, any Rimini Street stockholder who has perfected its dissenters’ rights and who believes that the merger consideration is insufficient will have the right to object and have a court in Nevada determine the value of each share of stock, and to be paid the appraised value determined by the court, which could be more or less than the merger consideration.

Proxy Solicitation for Rimini Street

Proxies may be solicited by mail, telephone or in person.

If a stockholder grants a proxy, it may still vote its shares in person if it revokes its proxy before the special meeting. A shareholder also may change its vote by submitting a later-dated proxy as described in the section entitled “ Special Meeting of Rimini Street Stockholders—Revoking Your Proxy ”.

Interests of Rimini Street’s Directors and Officers in the Business Combination

When you consider the recommendation of Rimini Street’s board of directors in favor of approval of the Rimini Street business combination proposal, you should keep in mind that Rimini Street’s directors and officers have interests in such proposal that are different from, or in addition to, those of Rimini Street stockholders generally. These interests include, among other things, the interests listed below:

The fact that each of Rimini Street’s directors and officers will continue to be directors and officers of RMNI after the consummation of the business combination. As such, in the future they will receive any cash fees, stock options, stock awards or other remuneration that the RMNI board of directors determines to pay to its directors and officers.
Upon completion of the business combination and the issuance of RMNI common stock in the business combination, assuming (i) that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination, (ii) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and (iii) that no public shareholders exercise their redemption rights, the directors and officers of Rimini Street will collectively beneficially own approximately 26.5% of the outstanding stock of RMNI.

The existence of financial and personal interests of one or more Rimini Street directors may result in a conflict of interest on the part of such director(s) between what he, she or they may believe is best for Rimini Street. See the sections entitled “ Risk Factors ” and “ Rimini Street Business Combination Proposal—Interests of Rimini Street’s Directors and Officers in the Business Combination ” for a further discussion of this and other risks.

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Recommendation to Stockholders of Rimini Street

Rimini Street’s board of directors believes that the Rimini Street business combination proposal and the Rimini Street preferred stock conversion proposal are in the best interest of Rimini Street’s stockholders and recommends that its stockholders vote “FOR” the Rimini Street business combination proposal and “FOR” the Rimini Street preferred stock conversion proposal.

The existence of financial and personal interests of one or more of Rimini Street’s directors may result in a conflict of interest on the part of such director(s) between what he, she or they may believe is in the best interests of Rimini Street and its stockholders and what he, she or they may believe is best for himself, herself or themselves in determining to recommend that stockholders vote for the proposals. See the section entitled “ Rimini Street Business Combination Proposal—Interests of Rimini Street’s Directors and Officers in the Business Combination ” in the accompanying joint proxy statement/prospectus for a further discussion of this.

Conditions to the Closing of the First Merger

Unless waived by the parties to the merger agreement, and subject to applicable law, the consummation of the first merger is subject to a number of conditions set forth in the merger agreement including, among others, receipt of the requisite shareholder approvals contemplated by this joint proxy statement/prospectus. For more information about conditions to the consummation of the first merger, see “ GPIA Business Combination Proposal—The Merger Agreement—Conditions to Closing of the First Merger ”.

Sources and Uses of Funds for the Business Combination

It is currently expected that the business combination will be consummated by August 31, 2017. The following table summarizes the sources and uses for funding the business combination assuming consummation of the business combination as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available) and August 31, 2017, respectively, and assuming that (i) RMNI issues the number of shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement as specified in the table below, (ii) the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination, and (iii) no public shareholders exercise their redemption rights in connection with the business combination. Where actual amounts are not known or knowable, the figures below represent GPIA’s good faith estimate of such amounts assuming a closing as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available) and August 31, 2017, respectively.

Sources
Uses
(U.S. dollars in millions, unaudited) (1)
As of May 31, 2017
Estimated cash from Rimini Street (2)
 
32.4
 
Estimated value of 50.18 million shares of RMNI common stock to be issued to former Rimini Street stockholders
 
501.8
 
Cash from trust account
 
157.8
 
Repayment of Rimini Street debt (3)
 
125.3
 
Shares of RMNI common stock issued to stockholders of Rimini Street, comprising 50.18 million shares issued at $10.00 per share (4)
 
501.8
 
Cash to balance sheet
 
41.5
 
 
 
 
 
Payment of transaction fees
 
3.7
 
 
 
 
 
Payment of deferred underwriting commission
 
6.0
 
 
 
 
 
Payment of Rimini Street transaction fees
 
13.6
 
Total Sources
 
692.1
 
Total Uses
 
692.1
 

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Sources
Uses
(U.S. dollars in millions, unaudited) (1)
As of August 31, 2017
Estimated cash from Rimini Street (5)
 
27.2
 
Estimated value of 50.58 million shares of RMNI common stock to be issued to former Rimini Street stockholders
 
505.8
 
Cash from trust account
 
157.8
 
Repayment of Rimini Street debt (3)
 
114.9
 
Shares of RMNI common stock issued to stockholders of Rimini Street, comprising 50.58 million shares issued at $10.00 per share (4)
 
505.8
 
Cash to balance sheet
 
46.7
 
 
 
 
 
Payment of transaction fees
 
3.7
 
 
 
 
 
Payment of deferred underwriting commission
 
6.0
 
 
 
 
 
Payment of Rimini Street transaction fees
 
13.6
 
Total Sources
 
6 9 0.8
 
Total Uses
 
690.8
 
(1) Amounts rounded to the nearest hundred thousand dollars. These sources and uses tables do not include the cash payment of up to $161,000 in respect of stock options held by former employees and former service providers of Rimini Street.
(2) Represents actual cash, including restricted cash, as of May 31, 2017. The amount of cash fluctuates in the ordinary course of business, including as a result of debt amortization payments.
(3) Represents (i) the required minimum payment of $35 million to repay outstanding borrowings under the Credit Facility in connection with the consummation of the business combination, as agreed with the lenders under the Credit Facility, and (ii) additional payments in respect of borrowings under the Credit Facility to reduce the amounts owed under the Credit Facility to $50 million. The reduction in the repayment of Rimini Street debt as of August 31, 2017 is lower than the required amount as of May 31, 2017 as a result of scheduled payments in respect of the Credit Facility between May 31, 2017 and August 31, 2017.
(4) The shares of RMNI common stock issued to stockholders excludes the common stock issuable pursuant to (i) each option to purchase shares of Rimini Street’s common stock granted under an incentive plan that is outstanding at the first effective time, which will be converted into an option to purchase shares of RMNI common stock upon the same terms and conditions as are in effect with respect to such option immediately prior to the first effective time (except that the number of shares of RMNI common stock subject to each RMNI option, and the exercise price thereof, shall be adjusted as set forth in the merger agreement to provide the holder thereof the same economic value as the original option relating to shares of Rimini Street’s common stock), and (ii) the warrants to purchase shares of Rimini Street’s capital stock to be issued to the holders of the Origination Agent warrants whereby pursuant to the warrant consent and conversion agreement the existing warrants held by such holders will be converted into warrants to purchase shares of RMNI common stock. See “ GPIA Business Combination Proposal—The Merger Agreement—Merger Consideration ”.
(5) Represents estimated cash as of August 31, 2017 provided by Rimini Street management. The amount of cash fluctuates in the ordinary course of business, including as a result of debt amortization payments.

U.S. Federal Income Tax Considerations

For a discussion summarizing the U.S. federal income tax considerations of the domestication, an exercise of redemption rights and the mergers, please see “ U.S. Federal Income Tax Considerations ” beginning on page 163 of this joint proxy statement/prospectus.

Expected Accounting Treatment

The Domestication

There will be no accounting effect or change in the carrying amount of the consolidated assets and liabilities of GPIA as a result of domestication. The business, capitalization, assets and liabilities and financial statements of GP Investments Acquisition Corp. immediately following the domestication will be the same as those of GPIA immediately prior to the domestication.

The Mergers

The mergers will be accounted for as a reverse recapitalization in accordance with U.S. generally accepted accounting principles (“GAAP”). If the merger agreement is approved by the shareholders of GPIA and Rimini Street, Rimini Street will have the right to appoint seven of the nine members of the board of directors of RMNI, and the current stockholders of Rimini Street are expected to own at least 70% of the outstanding common stock of RMNI, the combined company. Accordingly, the mergers will be accounted for as a reverse recapitalization, whereby Rimini Street will be the acquirer for accounting and financial reporting purposes and GPIA will be the legal acquirer. Under a reverse recapitalization, the shares of GPIA remaining after redemptions by public shareholders, and the

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unrestricted net cash and cash equivalents of GPIA on the date that the mergers are consummated, will be accounted for as a capital infusion into Rimini Street whereby all of the expenses incurred by Rimini Street related to the business combination will be charged to additional paid-in capital upon consummation of the mergers.

Comparison of Corporate Governance and Shareholder Rights

The domestication will change GPIA’s jurisdiction of incorporation from the Cayman Islands to Delaware, and as a result, GPIA’s organizational documents will change and will be governed by the DGCL rather than Cayman Islands Companies Law. There are differences between Cayman Islands corporate law, which currently governs GPIA, and Delaware corporate law, which will govern RMNI following the domestication. Additionally, there are differences between the new organizational documents of Rimini Street, Inc. and the current constitutional documents of GPIA.

For a summary of the material differences among the rights of holders of RMNI common stock and holders of GPIA ordinary shares, see “ Comparison of Corporate Governance and Shareholder Rights ”.

Regulatory Matters

The business combination and the transactions contemplated by the merger agreement are not subject to any additional federal or state regulatory requirements or approvals, except for (i) required filings under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) and (ii) filings with the Cayman Islands, the State of Delaware and the State of Nevada necessary to effectuate the transactions contemplated by the merger agreement. On June 2, 2017, Rimini Street and GPIA made the filings required to be made under the HSR Act. On June 28, 2017, the U.S. Federal Trade Commission (the “FTC”) notified Rimini Street that early termination of the waiting period under the HSR Act was granted, effective immediately. Therefore, the closing condition of the merger agreement relating to the expiration or termination of the applicable waiting period under the HSR Act has been satisfied.

Risk Factors

In evaluating the proposals to be presented at the GPIA extraordinary general meeting and the Rimini Street special meeting, a shareholder should carefully read this joint proxy statement/prospectus and especially consider the factors discussed in the section entitled “ Risk Factors ”.

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Summary Historical Financial and Other Information of Rimini Street, Inc.

The following table sets forth summary historical financial information of Rimini Street for the periods and as of the dates indicated. The consolidated statements of operations data and consolidated statements of cash flows data for the years ended December 31, 2014, 2015 and 2016, and the consolidated balance sheet data as of December 31, 2015 and 2016, are derived from our audited consolidated financial statements appearing elsewhere in this joint proxy statement/prospectus. The selected consolidated statements of operations and cash flows data for the three months ended March 31, 2016 and 2017 and the selected consolidated balance sheet data as of March 31, 2017 are derived from our unaudited condensed consolidated financial statements appearing elsewhere in this joint proxy statement/prospectus. The unaudited condensed consolidated financial statements were prepared on a basis consistent with our audited financial statements and include, in our opinion, all adjustments, consisting of normal and recurring adjustments that we consider necessary for a fair presentation of our unaudited condensed consolidated financial statements.

Rimini Street’s historical results are not necessarily indicative of future operating results. You should read the information set forth below in conjunction with “ Selected Historical Financial Information of Rimini Street ”, “ Management’s Discussion and Analysis of Financial Condition and Results of Operations of Rimini Street ” and Rimini Street’s financial statements and the related notes thereto included elsewhere in this joint proxy statement/prospectus.

 
Year Ended December 31,
Three Months Ended
March 31,
 
2014
2015
2016
2016
2017
 
(in thousands, except per share amounts)
Consolidated Statement of Operations Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenue
$
85,348
 
$
118,163
 
$
160,175
 
$
34,678
 
$
49,070
 
Cost of revenue
 
45,258
 
 
52,766
 
 
67,045
 
 
14,570
 
 
18,356
 
Gross profit
 
40,090
 
 
65,397
 
 
93,130
 
 
20,108
 
 
30,714
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and marketing
 
37,509
 
 
50,330
 
 
72,936
 
 
15,538
 
 
14,696
 
General and administrative
 
19,270
 
 
24,220
 
 
36,212
 
 
6,635
 
 
9,276
 
Litigation costs, net of insurance recoveries
 
103,266
 
 
32,732
 
 
(29,949
)
 
5,379
 
 
3,945
 
Write-off of deferred offering costs
 
5,307
 
 
 
 
 
 
 
 
 
Total operating expenses
 
165,352
 
 
107,282
 
 
79,199
 
 
27,552
 
 
27,917
 
Operating income (loss)
 
(125,262
)
 
(41,885
)
 
13,931
 
 
(7,444
)
 
2,797
 
Interest expense
 
(742
)
 
(829
)
 
(13,356
)
 
(211
)
 
(9,936
)
Debt financing fees
 
 
 
 
 
(6,371
)
 
 
 
(1,282
)
Loss on embedded derivatives and redeemable warrants, net
 
 
 
 
 
(3,822
)
 
 
 
(5,702
)
Other income (expense), net
 
(843
)
 
(1,104
)
 
(1,787
)
 
(75
)
 
89
 
Loss before income taxes
 
(126,847
)
 
(43,818
)
 
(11,405
)
 
(7,730
)
 
(14,034
)
Provision for income taxes
 
(981
)
 
(1,451
)
 
(1,532
)
 
(267
)
 
(441
)
Net loss
$
(127,828
)
$
(45,269
)
$
(12.937
)
$
(7,997
)
$
(14,475
)
Deemed dividend for beneficial conversion
feature of convertible preferred stock
 
 
 
 
 
(10,000
)
 
 
 
 
Net loss attributable to Class A and Class B common stockholders
$
(127,828
)
$
(45,269
)
$
(22,937
)
$
(7,997
)
$
(14,475
)
Net loss per share attributable to Class A and Class B stockholders (basic and diluted)
$
(1.27
)
$
(0.45
)
$
(0.23
)
$
(0.08
)
$
(0.14
)
Weighted average number of Class A and Class B common shares outstanding (basic and diluted)
 
100,930
 
 
101,174
 
 
101,341
 
 
101,310
 
 
101,721
 
Non-GAAP Financial Measures:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA (1)
$
(124,206
)
$
(41,538
)
$
3,734
 
$
(7,094
)
$
(3,622
)
Adjusted EBITDA (1)
$
(13,415
)
$
(6,534
)
$
(13,725
)
$
(1,098
)
$
7,668
 
Consolidated Statement of Cash Flows Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating activities
$
3,215
 
$
1,573
 
$
(59,609
)
$
6,003
 
$
6,594
 
Investing activities
 
(1,242
)
 
(1,747
)
 
(1,188
)
 
(53
)
 
(101
)
Financing activities
 
(2,954
)
 
(842
)
 
77,088
 
 
217
 
 
(1,650
)

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As of December 31,
As of
March 31, 2017
 
2014
2015
2016
 
(in thousands)
Consolidated Balance Sheet Data:
 
 
 
 
 
 
 
 
 
 
 
 
Working capital deficit (2)
$
(58,517
)
$
(199,731
)
$
(123,623
)
$
(155,759
)
Cash and cash equivalents
 
13,758
 
 
12,457
 
 
9,385
 
 
13,237
 
Restricted cash
 
102
 
 
102
 
 
18,852
 
 
20,112
 
Total assets
 
52,336
 
 
62,741
 
 
99,378
 
 
108,772
 
Current maturities of long-term debt
 
15,132
 
 
14,814
 
 
24,750
 
 
48,131
 
Total liabilities
 
221,541
 
 
275,060
 
 
312,888
 
 
336,189
 
Stockholders’ deficit
 
(169,205
)
 
(212,319
)
 
(213,510
)
 
(227,417
)
(1) Rimini Street presents EBITDA and Adjusted EBITDA because it believes they assist investors in comparing its performance across reporting periods on a consistent basis by excluding items that Rimini Street does not believe are indicative of its operating performance. For further information on our non-GAAP financial measures, including the limitations of such non-GAAP financial measures as an analytical tool, see “ Management’s Discussion and Analysis of Financial Condition and Results of Operations of Rimini Street ” appearing elsewhere in this joint proxy statement/prospectus. The following table presents a reconciliation of our net loss to earnings before interest, taxes, depreciation and amortization (“EBITDA”) and adjusted EBITDA (“Adjusted EBITDA”) for the periods presented:
 
Year Ended December 31,
Three Months Ended
March 31,
 
2014
2015
2016
2016
2017
 
(in thousands)
Net loss
$
(127,828
)
$
(45,269
)
$
(12,937
)
$
(7,997
)
$
(14,475
)
Interest expense
 
742
 
 
829
 
 
13,356
 
 
211
 
 
9,936
 
Income tax expense
 
981
 
 
1,451
 
 
1,532
 
 
267
 
 
441
 
Depreciation and amortization expense
 
1,899
 
 
1,451
 
 
1,783
 
 
425
 
 
476
 
EBITDA
 
(124,206
)
 
(41,538
)
 
3,734
 
 
(7,094
)
 
(3,622
)
Litigation costs, net of insurance recoveries
 
103,266
 
 
32,732
 
 
(29,949
)
 
5,379
 
 
3,945
 
Write-off of deferred offering costs
 
5,307
 
 
 
 
 
 
 
 
 
Write-off of debt issuance costs
 
138
 
 
 
 
 
 
 
 
 
Debt financing fees
 
 
 
 
 
6,371
 
 
 
 
1,282
 
Loss on embedded derivatives and redeemable warrants, net
 
 
 
 
 
3,822
 
 
 
 
5,702
 
Stock-based compensation
 
2,080
 
 
2,272
 
 
2,297
 
 
617
 
 
361
 
Adjusted EBITDA
$
(13,415
)
$
(6,534
)
$
(13,725
)
$
(1,098
)
$
7,668
 
(2) Working capital is computed by subtracting our total current liabilities from our total current assets in our historical financial statements appearing elsewhere in this joint proxy statement/prospectus.

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SELECTED HISTORICAL FINANCIAL INFORMATION OF GPIA

GPIA is providing the following selected historical financial information to assist you in your analysis of the financial aspects of the business combination.

GPIA’s balance sheet data as of December 31, 2016 and 2015 and statement of operations data for the year ended December 31, 2016 and for the period from January 28, 2015 (inception) through December 31, 2015 are derived from GPIA’s audited financial statements included elsewhere in this joint proxy statement/prospectus. GPIA’s balance sheet data as of March 31, 2017 and statement of operations data for the three months ended March 31, 2017 are derived from GPIA’s unaudited financial statements included elsewhere in this joint proxy statement/prospectus.

The information is only a summary and should be read in conjunction with GPIA’s consolidated financial statements and related notes and “ Other Information Related to GPIA—GPIA’s Management’s Discussion and Analysis of Financial Condition and Results of Operations ” contained elsewhere in this joint proxy statement/prospectus. The historical results included below and elsewhere in this joint proxy statement/prospectus are not indicative of the future performance of GPIA.

 
For the Period from
January 28, 2015
(inception) through
December 31, 2015
For the year ended
December 31, 2016
Three months ended
March 31, 2016
(Unaudited)
Three months ended
March 31, 2017
(Unaudited)
 
(in thousands, except per share amounts)
Statement of Operations Data:
 
 
 
 
 
 
 
 
 
 
 
 
Operating costs
$
208,978
 
$
3,334,903
 
$
1,066,912
 
$
179,386
 
Loss from operations
 
(208,978
)
 
(3,334,903
)
 
(1,066,912
)
 
(179,386
)
Interest income:
 
78,252
 
 
485,356
 
 
161,227
 
 
200,175
 
Unrealized (loss) gain on marketable securities held in the trust account
 
 
 
(11,618
)
 
(103,291
)
 
(25,060
)
Net Loss
$
(130,726
)
$
(2,861,165
)
$
(802,394
)
$
(4,271
)
Weighted average shares outstanding, basic and diluted
 
4,761,628
 
 
5,466,064
 
 
5,320,250
 
 
5,649,918
 
Basic and diluted net loss per common share
$
(0.03
)
$
(0.52
)
$
(0.15
)
$
0.00
 
 
For the Period from
January 28, 2015
(inception) through
December 31, 2015
For the year ended
December 31, 2016
Three months ended
March 31, 2016
(Unaudited)
Three months ended
March 31, 2017
(Unaudited)
 
(in thousands)
Statement of Cash Flows Data:
 
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in):
 
 
 
 
 
 
 
 
 
 
 
 
Operating activities
 
(196,961
)
 
(3,501,579
)
 
(95,529
)
 
(147,212
)
Financing activities
 
173,664,410
 
 
2,535,681
 
 
 
 
147,212
 
 
As of December 31,
As of March 31, 2017
(Unaudited)
 
2015
2016
 
(in thousands, except per share amounts)
Balance Sheet Data:
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
967,449
 
$
1,551
 
$
1,551
 
Prepaid expenses
 
7,951
 
 
217,668
 
 
256,417
 
Total Current Assets
 
975,400
 
 
219,219
 
 
257,968
 
 
 
 
 
 
 
 
 
 
 
Cash and securities held in trust account
 
172,578,252
 
 
173,051,990
 
 
173,227,105
 
Total Assets
$
173,553,652
 
$
173,271,209
 
$
173,485,073
 

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As of December 31,
As of March 31, 2017
(Unaudited)
 
2015
2016
 
(in thousands, except per share amounts)
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
Accounts payable and accrued expense
$
19,968
 
$
63,009
 
$
133,932
 
Advances from related party
 
 
 
635,681
 
 
 
Deferred underwriting fees
 
6,037,500
 
 
6,037,500
 
 
6,037,500
 
Promissory note related party
 
 
 
1,900,000
 
 
2,682,893
 
Total Liabilities
 
6,057,468
 
 
8,636,190
 
 
8,854,325
 
Commitments and Contingencies
 
 
 
 
 
 
Ordinary shares subject to possible redemption, 16,242,250, 15,912,582 and 15,896,071 shares at redemption value as of December 31, 2015 and 2016 and March 31, 2017, respectively
 
162,496,183
 
 
159,635,018
 
 
159,630,747
 
Shareholders’ Equity
 
 
 
 
 
 
Preferred shares, $0.0001 par value; 20,000,000 authorized, none issued and outstanding
 
 
 
 
 
 
Ordinary shares, $0.0001 par value; 400,000,000 shares authorized; 5,320,250, 5,649,918 and 5,666,429 shares issued and outstanding (excluding 16,242,250, 15,912,582 and 15,896,071 shares subject to possible redemption) as of December 31, 2015 and 2016 and March 31, 2017, respectively
 
532
 
 
565
 
 
566
 
Additional paid in capital
 
5,130,195
 
 
7,991,327
 
 
7,995,597
 
Accumulated deficit
 
(130,726
)
 
(2,991,891
)
 
(2,996,162
)
Total Shareholders’ Equity
 
5,000,001
 
 
5,000,001
 
 
5,000,001
 
Total Liabilities and Shareholders’ Equity
$
173,553,652
 
$
173,271,209
 
$
173,485,073
 

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SELECTED HISTORICAL FINANCIAL INFORMATION OF RIMINI STREET

The following selected historical financial data should be read together with the consolidated financial statements and accompanying notes and “ Management’s Discussion and Analysis of Financial Condition and Results of Operations of Rimini Street ” appearing elsewhere in this joint proxy statement/prospectus. The selected consolidated financial data in this section is not intended to replace our consolidated financial statements and the related notes. Our historical results are not necessarily indicative of our future results, and our results as of and for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.

We derived the selected consolidated statements of operations and cash flows data for the years ended December 31, 2014, 2015 and 2016, and the consolidated balance sheet data as of December 31, 2015 and 2016, from our audited consolidated financial statements appearing elsewhere in this joint proxy statement/prospectus. The selected consolidated statements of operations and cash flows data for the three months ended March 31, 2016 and 2017 and the selected consolidated balance sheet data as of March 31, 2017 are derived from our unaudited condensed consolidated financial statements appearing elsewhere in this joint proxy statement/prospectus. The consolidated balance sheet data as of December 31, 2014 is derived from our audited consolidated financial statements that are not included in this joint proxy statement/prospectus. The unaudited condensed consolidated financial statements were prepared on a basis consistent with our audited financial statements and include, in our opinion, all adjustments, consisting of normal and recurring adjustments that we consider necessary for a fair presentation of our unaudited condensed consolidated financial statements.

 
Year Ended December 31,
Three Months Ended
March 31,
 
2014
2015
2016
2016
2017
 
(in thousands, except per share amounts)
Consolidated Statement of Operations Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenue
$
85,348
 
$
118,163
 
$
160,175
 
$
34,678
 
$
49,070
 
Cost of revenue
 
45,258
 
 
52,766
 
 
67,045
 
 
14,570
 
 
18,356
 
Gross profit
 
40,090
 
 
65,397
 
 
93,130
 
 
20,108
 
 
30,714
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and marketing
 
37,509
 
 
50,330
 
 
72,936
 
 
15,538
 
 
14,696
 
General and administrative
 
19,270
 
 
24,178
 
 
36,212
 
 
6,635
 
 
9,276
 
Litigation costs, net of insurance recoveries
 
103,266
 
 
32,774
 
 
(29,949
)
 
5,379
 
 
3,945
 
Write-off of deferred offering costs
 
5,307
 
 
 
 
 
 
 
 
 
Total operating expenses
 
165,352
 
 
107,282
 
 
79,199
 
 
27,552
 
 
27,917
 
Operating income (loss)
 
(125,262
)
 
(41,885
)
 
13,931
 
 
(7,444
)
 
2,797
 
Interest expense
 
(742
)
 
(829
)
 
(13,356
)
 
(211
)
 
(9,936
)
Debt financing fees
 
 
 
 
 
(6,371
)
 
 
 
(1,282
)
Loss on embedded derivatives and redeemable warrants, net
 
 
 
 
 
(3,822
)
 
 
 
(5,702
)
Other income (expense), net
 
(843
)
 
(1,104
)
 
(1,787
)
 
(75
)
 
89
 
Loss before income taxes
 
(126,847
)
 
(43,818
)
 
(11,405
)
 
(7,730
)
 
(14,034
)
Provision for income taxes
 
(981
)
 
(1,451
)
 
(1,532
)
 
(267
)
 
(441
)
Net loss
$
(127,828
)
$
(45,269
)
$
(12,937
)
$
(7,997
)
$
(14,475
)
Deemed dividend for beneficial conversion feature of convertible preferred stock
 
 
 
 
 
(10,000
)
 
 
 
 
Net loss attributable to Class A and Class B common stockholders
$
(127,828
)
$
(45,269
)
$
(22,937
)
$
(7,997
)
$
(14,475
)
Net loss per share attributable to Class A and Class B stockholders (basic and diluted)
$
(1.27
)
$
(0.45
)
$
(0.23
)
$
(0.08
)
$
(0.14
)
Weighted average number of Class A and Class B common shares outstanding (basic and diluted)
 
100,930
 
 
101,174
 
 
101,341
 
 
101,310
 
 
100,721
 
Non-GAAP Financial Measures:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EBITDA (1)
$
(124,206
)
$
(41,523
)
$
3,734
 
$
(7,094
)
$
(3,622
)
Adjusted EBITDA (1)
$
(13,415
)
$
(6,534
)
$
(13,725
)
$
(1,098
)
$
7,668
 
Consolidated Statement of Cash Flows Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating activities
$
3,215
 
$
1,573
 
$
(59,609
)
$
6,003
 
$
6,594
 
Investing activities
 
(1,242
)
 
(1,747
)
 
(1,188
)
 
(53
)
 
(101
)
Financing activities
 
(2,954
)
 
(842
)
 
77,088
 
 
217
 
 
(1,650
)

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As of December 31,
As of
March 31, 2017
 
2014
2015
2016
 
(in thousands)
Consolidated Balance Sheet Data:
 
 
 
 
 
 
 
 
 
 
 
 
Working capital deficit (2)
$
(58,517
)
$
(199,731
)
$
(123,623
)
$
(155,759
)
Cash and cash equivalents
 
13,758
 
 
12,457
 
 
9,385
 
 
13,237
 
Restricted cash
 
102
 
 
102
 
 
18,852
 
 
20,112
 
Total assets
 
52,336
 
 
62,741
 
 
99,378
 
 
108,772
 
Current maturities of long-term debt
 
15,132
 
 
14,814
 
 
24,750
 
 
48,131
 
Total liabilities
 
221,541
 
 
275,060
 
 
312,888
 
 
336,189
 
Stockholders’ deficit
 
(169,205
)
 
(212,319
)
 
(213,510
)
 
(227,417
)
(1) Rimini Street presents EBITDA and Adjusted EBITDA because it believes they assist investors in comparing its performance across reporting periods on a consistent basis by excluding items that Rimini Street does not believe are indicative of its operating performance. For further information on our non-GAAP financial measures, including the limitations of such non-GAAP financial measures as an analytical tool, see “ Management’s Discussion and Analysis of Financial Condition and Results of Operations of Rimini Street ” appearing elsewhere in this joint proxy statement/prospectus. The following table presents a reconciliation of our net loss to EBITDA and Adjusted EBITDA for the periods presented:
 
Year Ended December 31,
Three Months Ended
March 31,
 
2014
2015
2016
2016
2017
 
(in thousands)
Net loss
$
(127,828
)
$
(45,269
)
$
(12,937
)
$
(7,997
)
$
(14,475
)
Interest expense
 
742
 
 
829
 
 
13,356
 
 
211
 
 
9,936
 
Income tax expense
 
981
 
 
1,451
 
 
1,532
 
 
267
 
 
441
 
Depreciation and amortization expense
 
1,899
 
 
1,451
 
 
1,783
 
 
425
 
 
476
 
EBITDA
 
(124,206
)
 
(41,538
)
 
3,734
 
 
(7,094
)
 
(3,622
)
Litigation costs, net of insurance recoveries
 
103,266
 
 
32,732
 
 
(29,949
)
 
5,379
 
 
3,945
 
Write-off of deferred offering costs
 
5,307
 
 
 
 
 
 
 
 
 
Write-off of debt issuance costs
 
138
 
 
 
 
 
 
 
 
 
Debt financing fees
 
 
 
 
 
6,371
 
 
 
 
1,282
 
Loss on embedded derivatives and redeemable warrants, net
 
 
 
 
 
(3,822
)
 
 
 
5,702
 
Stock-based compensation
 
2,080
 
 
2,272
 
 
2,297
 
 
617
 
 
361
 
Adjusted EBITDA
$
(13,415
)
$
(6,534
)
$
(13,725
)
$
(1,098
)
$
7,668
 
(2) Working capital is computed by subtracting our total current liabilities from our total current assets in our historical financial statements appearing elsewhere in this joint proxy statement/prospectus.

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SELECTED UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

The selected unaudited pro forma condensed combined financial information for the three-month period ended March 31, 2017 combines the historical consolidated statement of operations of GPIA for the three-month period ended March 31, 2017 and Rimini Street for the three-month period ended March 31, 2017, giving effect to the business combination as if it had been consummated on January 1, 2016, the beginning of GPIA’s most recently completed fiscal year.

The selected unaudited pro forma condensed combined financial information for the year ended December 31, 2016 combines the historical consolidated statement of operations of GPIA for the year ended December 31, 2016 and Rimini Street for the year ended December 31, 2016, giving effect to the business combination as if it had been consummated on January 1, 2016, the beginning of GPIA’s most recent fiscal year.

The selected unaudited pro forma condensed combined balance sheet at March 31, 2017 combines the historical unaudited condensed balance sheet of GPIA at March 31, 2017 and of Rimini Street at March 31, 2017, giving effect to the business combination as if it had been consummated on March 31, 2017.

The selected unaudited pro forma condensed combined financial information has been derived from and should be read in conjunction with the unaudited pro forma condensed combined financial information, including the notes thereto, which is included in this joint proxy statement/prospectus under “ Unaudited Pro Forma Condensed Combined Financial Information ”.

The selected unaudited pro forma condensed combined financial information presents two scenarios as follows:

Scenario No. 1 gives effect only to the actual redemptions of 1,552,724 ordinary shares of GPIA in connection with GPIA’s extraordinary general meeting of shareholders on May 23, 2017, and no public share redemptions in connection with a subsequent extraordinary general meeting of shareholders of GPIA to be held to approve, among other things, the business combination. For purposes of the pro forma condensed combined balance sheet under this scenario, $157.6 million of cash and cash equivalents will be available from the GPIA trust account to permit repayment of GPIA’s related party note payable of $2.7 million, a prepayment of $99.9 million of principal and a make-whole interest payment of $31.5 million related to Rimini Street’s Credit Facility, and payment of all transaction costs and deferred underwriting fees of $23.4 million. In this scenario, no cash available from Rimini Street is used to make any payments in respect of the Credit Facility. For purposes of the pro forma condensed combined statements of operations under this scenario, outstanding debt of $14.7 million as of January 1, 2016 is assumed to have been repaid on that date, and borrowings under the Credit Facility of $107.5 million during 2016 are assumed to have not occurred since sufficient cash would have been available to avoid such borrowings. Under this Scenario, the Credit Facility is treated as if it were a $125.0 million unfunded line of credit for the unaudited pro forma condensed combined statements of operations.
Scenario No. 2 modifies Scenario No. 1 to assume that in connection with the shareholder vote to approve the business combination with Rimini Street, holders of public shares of GPIA will elect to redeem public shares that result in a reduction of GPIA’s available cash required to consummate the business combination to the minimum threshold of $50.0 million specified in the merger agreement as a condition to the consummation of the first merger. This scenario gives effect to additional GPIA public share redemptions of approximately 14.2 million shares for aggregate redemption payments of $142.6 million, and a concurrent equity infusion of $35.0 million by GPIA’s Sponsor. For purposes of the pro forma condensed combined balance sheet under this scenario, $61.2 million of available cash is required for (i) payment of all transaction costs and deferred underwriting fees of $23.4 million, (ii) repayment of GPIA’s related party note payable of $2.7 million, and (iii) the minimum payment of $35.0 million required to be paid to the lenders under the Credit Facility. The payment of $35.0 million to the lenders is a condition to the consent given by the lenders to the mergers, resulting in a principal prepayment of $27.7 million and a make-whole interest payment of $7.3 million. Of the aggregate $61.2 million of cash and cash equivalents required, $50.0 million will be provided by GPIA, and $11.2 million will be provided from Rimini Street’s unrestricted cash and cash equivalents. For purposes of the pro forma condensed combined statements of operations under this scenario, outstanding debt of $14.7 million that was outstanding on January 1, 2016 (and subsequently repaid from Credit Facility borrowings) is assumed to have been repaid as of January 1,

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2016, and the first $35.0 million of borrowings under the Credit Facility during 2016 are assumed to have not occurred since sufficient cash would have been available to avoid incurring debt and a make-whole payment would not have applied to borrowings that did not occur.

The selected unaudited pro forma condensed combined financial information is presented for informational purposes only. The selected unaudited pro forma condensed combined financial information does not purport to represent what the combined company’s results of operations or financial condition would have been had the business combination actually been consummated on the dates indicated, and does not purport to project the combined company’s results of operations or financial condition for any future period or as of any future date. Except as expressly indicated in the unaudited pro forma condensed consolidated financial information included in this joint proxy statement/prospectus, the selected unaudited pro forma condensed combined financial information does not reflect any transactions that may occur prior to, or subsequent to, the completion of the business combination. The unaudited pro forma condensed combined financial information has been prepared by accounting for the business combination as a reverse recapitalization since substantially all of GPIA’s assets consist of cash and equivalents and its activities prior to the business combination consisted solely of seeking a target business with whom to enter into a business combination. In accounting for the business combination as a reverse recapitalization, Rimini Street will be the acquirer for accounting and financial reporting purposes and GPIA will be the legal acquirer. Therefore, the shares of GPIA remaining after public share redemptions, and the unrestricted net cash and equivalents on the date the business combination is consummated will be accounted for as a capital infusion into Rimini Street. Additionally, the unaudited pro forma adjustments made in the selected unaudited pro forma condensed combined financial information, which are described in those notes, are preliminary and may be revised.

 
Unaudited Pro Forma Condensed Combined Financial Information
 
Year Ended
December 31, 2016
Three Months Ended
March 31, 2017
 
Scenario
No. 1
Scenario
No. 2
Scenario
No. 1
Scenario
No. 2
 
(in thousands, except per share amounts)
Statements of Operations Data:
 
 
 
 
 
 
 
 
 
 
 
 
Net revenue
$
160,175
 
$
160,175
 
$
49,070
 
$
49,070
 
Cost of revenue
 
67,045
 
 
67,045
 
 
18,356
 
 
18,356
 
Gross profit
 
93,130
 
 
93,130
 
 
30,714
 
 
30,714
 
Operating expenses:
Sales and marketing
 
72,936
 
 
72,936
 
 
14,696
 
 
14,696
 
General and administrative
 
39,547
 
 
39,547
 
 
9,455
 
 
9,455
 
Litigation costs, net of insurance recoveries
 
(29,949
)
 
(29,949
)
 
3,945
 
 
3,945
 
Total operating expenses
 
82,534
 
 
82,534
 
 
28,096
 
 
28,096
 
Operating income
 
10,596
 
 
10,596
 
 
2,618
 
 
2,618
 
Interest expense
 
(183
)
 
(5,868
)
 
(42
)
 
(8,359
)
Debt financing fees
 
(16,423
)
 
(12,152
)
 
(8,995
)
 
(2,318
)
Loss on embedded derivatives and redeemable warrants, net
 
 
 
(3,600
)
 
 
 
(3,400
)
Other income and expense
 
(1,787
)
 
(1,787
)
 
89
 
 
89
 
Loss before income taxes
 
(7,797
)
 
(12,811
)
 
(6,330
)
 
(11,370
)
Provision for income taxes
 
(1,532
)
 
(1,532
)
 
(441
)
 
(441
)
Net loss
 
(9,329
)
 
(14,343
)
 
(6,771
)
 
(11,811
)
Deemed dividend for beneficial conversion feature of convertible preferred stock
 
(10,000
)
 
(10,000
)
 
 
 
 
Net loss attributable to Class A and Class B common stockholders
$
(19,329
)
$
(24,343
)
$
(6,771
)
$
(11,811
)
Net loss per share attributable to Class A and Class B stockholders (basic and diluted)
$
(0.33
)
$
(0.51
)
$
(0.10
)
$
(0.20
)
Weighted average number of Class A and Class B common shares outstanding (basic and diluted)
 
57,959
 
 
47,271
 
 
69,631
 
 
58,943
 

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Unaudited Pro Forma Condensed Combined
Financial Information
 
As of
March 31, 2017
 
Scenario
No. 1
Scenario
No. 2
 
(in thousands)
Balance Sheet Data :
 
 
 
 
 
 
Working capital deficit
$
(112,804
)
$
(162,827
)
Cash and cash equivalents
 
13,239
 
 
2,047
 
Restricted cash
 
20,112
 
 
20,112
 
Total assets
 
109,030
 
 
97,838
 
Debt:
 
 
 
 
 
 
Current maturities
 
9,300
 
 
48,131
 
Long-term portion
 
29,281
 
 
29,963
 
Total liabilities
 
269,806
 
 
309,319
 
Stockholders’ deficit
 
(160,776
)
 
(211,481
)

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COMPARATIVE PER SHARE DATA

The following table sets forth the per share data of Rimini Street on a stand-alone basis as of and for the three months ended March 31, 2017 and for the year ended December 31, 2016, the per share data of GPIA as of and for the three months ended March 31, 2017 and for the year ended December 31, 2016, and the unaudited pro forma consolidated and combined per share ownership information of Rimini Street and GPIA as of and for the three months ended March 31, 2017 and for the year ended December 31, 2016, after giving effect to the business combination, assuming, separately, Scenario No. 1 where no holders of GPIA public shares exercise their right to have their RMNI public shares redeemed upon consummation of the business combination; and Scenario No. 2 where holders of 14,205,056 GPIA ordinary shares (or 90.5% of the outstanding public shares) elect to redeem their ordinary shares in connection with the business combination. This assumption of the number of public shares that will be redeemed represents our estimate of the maximum number of GPIA public shares that could be redeemed in order for GPIA to have $50,000,000 of available cash upon consummation of the first merger, after taking into account the Sponsor’s maximum equity commitment of $35,000,000.

Under Scenario No. 1, assuming consummation of the business combination as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), immediately following the consummation of the business combination (without taking into account any GPIA ordinary shares held by Rimini Street stockholders prior to the consummation of the business combination, and assuming (i) the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination, (ii) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants and (iii) that no public shareholders exercise their redemption rights), the former equityholders of Rimini Street are expected to own approximately 71.5% of RMNI’s common stock (or 65.5% of RMNI’s common stock on a fully-diluted basis) and GPIA’s current shareholders are expected to own approximately 28.5% of RMNI’s common stock (or 34.5% of RMNI’s common stock on a fully-diluted basis), which comprises (i) 6.2% of RMNI’s common stock (or 10.4% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s initial shareholders and (ii) 22.4% of RMNI’s common stock (or 24.2% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s public shareholders.

Under Scenario No. 2, assuming consummation of the business combination as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), immediately following the consummation of the business combination (without taking into account any GPIA ordinary shares held by Rimini Street stockholders prior to the consummation of the business combination, and assuming (i) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants, (ii) that the Sponsor subscribes for 3,500,000 GPIA ordinary shares pursuant to its equity commitment at or prior to the consummation of the business combination and (iii) that holders of 14,205,056 GPIA ordinary shares (or 90.5% of the outstanding public shares) elect to redeem their ordinary shares in connection with the business combination), the former equityholders of Rimini Street are expected to own approximately 84.4% of RMNI’s common stock (or 73.3% of RMNI’s common stock on a fully-diluted basis) and GPIA’s current shareholders are expected to own approximately 15.6% of RMNI’s common stock (or 26.7% of RMNI’s common stock on a fully-diluted basis), which comprises (i) 13.1% of RMNI’s common stock (or 15.5% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s initial shareholders and (ii) 2.5% of RMNI’s common stock (or 11.3% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s public shareholders.

This information is only a summary and should be read together with the selected historical financial information summary included elsewhere in this joint proxy statement/prospectus, and the historical financial statements of GPIA and Rimini Street and related notes that are included elsewhere in this joint proxy statement/prospectus. The unaudited GPIA and Rimini Street pro forma combined per share information is derived from, and should be read in conjunction with, the unaudited pro forma condensed combined financial information and related notes included elsewhere in this joint proxy statement/prospectus. The unaudited pro forma combined net loss

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per share information below does not purport to represent the net loss per share which would have occurred had the companies been combined during the periods presented, nor the earnings (loss) per share for any future date or period. The unaudited pro forma combined stockholders’ deficit per share information below does not purport to represent what the value of GPIA and Rimini Street would have been had the companies been combined during the periods presented.

 
Historical
Pro Forma Combined
 
Rimini Street
GPIA
Scenario No. 1
Scenario No. 2
 
(in thousands, except per share amounts)
Three Months Ended March 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
$
(14,475
)
$
(4
)
$
(6,771
)
$
(11,811
)
Cash dividends declared
$
 
$
 
$
 
$
 
Stockholders’ equity (deficit), at end of period
$
(227,417
)
$
5,000
 
$
(160,776
)
$
(211,481
)
Weighted average common shares outstanding (basic and diluted)
 
101,721
 
 
5,650
 
 
69,631
 
 
58,943
 
Number of shares outstanding, on as converted basis at end of period (1)
 
202,683
(1)
 
5,650
 
 
69,948
 
 
69,948
 
Comparative per share data (basic and diluted):
 
 
 
 
 
 
 
 
 
 
 
 
Net loss per share (2)
$
(0.14
)
$
 
$
(0.10
)
$
(0.20
)
Cash dividends declared per share
$
 
$
 
$
 
$
 
Stockholders’ equity (deficit), at end of period (3)
$
(1.12
)
$
0.88
 
$
(2.30
)
$
(3.02
)
Year Ended December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
$
(12,937
)
$
(2,861
)
$
(9,329
)
$
(14,343
)
Net loss attributable to common stockholders
$
(22,937
)
$
(2,861
)
$
(19,329
)
$
(24,343
)
Cash dividends declared
$
 
$
 
$
 
$
 
Stockholders’ equity (deficit), at end of period
$
(213,510
)
$
5,000
 
 
n/a
(4)
 
n/a
(4)
Weighted average common shares outstanding (basic and diluted)
 
101,341
 
 
5,466
 
 
57,959
 
 
47,271
 
Number of shares outstanding, on as converted basis at end of period (1)
 
201,909
(1)
 
5,650
 
 
69,948
 
 
69,948
 
Comparative per share data (basic and diluted):
 
 
 
 
 
 
 
 
 
 
 
 
Net loss per share attributable to common stockholders (2)
$
(0.23
)
$
(0.52
)
$
(0.33
)
$
(0.51
)
Cash dividends declared per share
$
 
$
 
$
 
$
 
Stockholders’ equity (deficit), at end of period (3)
$
(1.06
)
$
0.91
 
 
n/a
(4)
 
n/a
(4)
(1) Computed based on the historical number of common shares outstanding at the end of the period. For Rimini Street, this includes the number of shares of common stock issuable upon conversion of all outstanding preferred stock based on the applicable conversion price.
(2) Computed based on the weighted average number of common shares outstanding.
(3) Computed by dividing stockholders’ equity (deficit) by the number of shares outstanding on an as converted basis at the end of the period.
(4) Pro forma combined financial information is not available as of December 31, 2016.

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The business combination is expected to be accounted for as a reverse recapitalization, whereby the net available cash of GPIA will be accounted for as a capital infusion by Rimini Street. The following table sets forth the historical results of operations and per share data of Rimini Street on a stand-alone basis as of and for the years ended December 31, 2014 and 2015:

 
Year ended December 31,
 
2014
2015
 
(in thousands, except per share amounts)
Net loss
$
(127,828
)
$
(45,269
)
Cash dividends declared
$
 
$
 
Stockholders’ deficit, at end of period
$
(169,205
)
$
(212,319
)
Weighted average common shares outstanding (basic and diluted)
 
100,930
 
 
101,174
 
Number of shares outstanding, on as converted basis at end of period (1)
 
145,127
 
 
145,323
 
Comparative per share data (basic and diluted):
 
 
 
Net loss per common share (2)
$
(1.27
)
$
(0.45
)
Cash dividends declared per share
$
 
$
 
Stockholders’ deficit, at end of period (3)
$
(1.17
)
$
(1.46
)
(1) Computed based on the historical number of common shares outstanding at the end of the period plus the number of shares of common stock issuable upon conversion of all outstanding preferred stock based on the applicable conversion price.
(2) Computed based on the weighted average number of common shares outstanding.
(3) Computed by dividing stockholders’ deficit by the number of shares outstanding on an as converted basis at the end of the period.

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MARKET PRICE AND DIVIDEND INFORMATION

Market Price of Units, Ordinary Shares and Warrants

GPIA’s units, ordinary shares and warrants are currently listed on the NASDAQ Capital Market under the symbols “GPIAU”, “GPIA” and “GPIAW”, respectively.

The following table sets forth the high and low sales prices for GPIA’s units, ordinary shares and warrants for the periods indicated since the units began public trading on May 26, 2015 and GPIA’s ordinary shares and warrants began public trading on July 10, 2015.

The closing price of GPIA’s units, ordinary shares and warrants on May 15, 2017, the last trading day before announcement of the execution of the merger agreement, was $10.11, $10.04 and $0.42, respectively. As of [•], 2017, the record date, the most recent closing price for each unit, ordinary shares and warrant of GPIA was $[•], $[•] and $[•], respectively.

 
Units
Ordinary shares
Warrants
 
High
Low
High
Low
High
Low
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
May 2015
 
10.55
 
 
10.00
 
 
(1)
 
(1)
 
(1)
 
(1)
June 2015
 
10.18
 
 
10.00
 
 
(1)
 
(1)
 
(1)
 
(1)
July 2015
 
10.20
 
 
10.00
 
 
(1)
 
(1)
 
0.63
 
 
0.50
 
August 2015
 
10.10
 
 
9.92
 
 
9.75
 
 
9.75
 
 
0.98
 
 
0.50
 
September 2015
 
10.00
 
 
9.90
 
 
9.75
 
 
9.60
 
 
0.80
 
 
0.60
 
October 2015
 
10.04
 
 
9.90
 
 
9.77
 
 
9.56
 
 
0.80
 
 
0.42
 
November 2015
 
9.99
 
 
9.93
 
 
9.77
 
 
9.55
 
 
0.40
 
 
0.36
 
December 2015
 
10.00
 
 
9.65
 
 
9.63
 
 
9.50
 
 
0.60
 
 
0.15
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
January 2016
 
9.99
 
 
9.72
 
 
10.4
 
 
9.56
 
 
0.40
 
 
0.38
 
February 2016
 
9.90
 
 
9.70
 
 
9.75
 
 
9.58
 
 
0.40
 
 
0.20
 
March 2016
 
9.88
 
 
9.88
 
 
9.75
 
 
9.69
 
 
0.30
 
 
0.30
 
April 2016
 
10.32
 
 
8.97
 
 
9.90
 
 
9.55
 
 
0.68
 
 
0.26
 
May 2016
 
10.30
 
 
10.14
 
 
9.88
 
 
9.78
 
 
0.70
 
 
0.60
 
June 2016
 
10.28
 
 
9.99
 
 
9.95
 
 
8.93
 
 
0.70
 
 
0.27
 
July 2016
 
10.25
 
 
9.65
 
 
9.90
 
 
9.42
 
 
0.78
 
 
0.40
 
August 2016
 
10.00
 
 
9.75
 
 
9.75
 
 
9.32
 
 
0.76
 
 
0.63
 
September 2016
 
10.00
 
 
9.48
 
 
(1)
 
(1)
 
0.71
 
 
0.60
 
October 2016
 
10.05
 
 
9.85
 
 
9.88
 
 
9.80
 
 
0.80
 
 
0.55
 
November 2016
 
11.04
 
 
11.04
 
 
9.90
 
 
9.72
 
 
0.42
 
 
0.18
 
December 2016
 
11.04
 
 
10.00
 
 
9.92
 
 
9.85
 
 
0.50
 
 
0.29
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
January 2017
 
10.40
 
 
9.98
 
 
9.99
 
 
9.90
 
 
0.60
 
 
0.46
 
February 2017
 
11.13
 
 
10.25
 
 
10.05
 
 
9.97
 
 
0.80
 
 
0.56
 
March 2017
 
14.00
 
 
10.10
 
 
10.15
 
 
9.90
 
 
0.63
 
 
0.47
 
April 2017
 
10.15
 
 
10.07
 
 
10.00
 
 
9.95
 
 
0.52
 
 
0.29
 
May 2017
 
10.12
 
 
10.00
 
 
10.07
 
 
9.90
 
 
0.80
 
 
0.20
 
June 2017 (through to June 29, 2017)
 
10.98
 
 
10.98
 
 
10.07
 
 
9.97
 
 
0.81
 
 
0.46
 
(1) There was no reported trading in the relevant securities in the relevant period.

Holders of GPIA’s units, ordinary shares and warrants should obtain current market quotations for their securities. The market price of GPIA’s securities could vary at any time before the business combination.

Holders

As of June 29, 2017, there were five holders of record of our ordinary shares, one holder of record of our units and two holders of our public warrants.

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Dividend Policy

GPIA has not paid any cash dividends on its ordinary shares to date and does not intend to pay cash dividends prior to the completion of the business combination. The payment of any cash dividends after consummation of the business combination will be dependent upon the revenue, earnings and financial condition of RMNI from time to time. The payment of any dividends subsequent to the business combination will be within the discretion of the board of directors of RMNI. It is presently expected that RMNI will retain all earnings for use in the business operations of RMNI and, accordingly, it is not expected that the board of directors of RMNI will declare any dividends in the foreseeable future. The ability of RMNI to declare dividends is limited by restrictive covenants in the Credit Facility and may be limited by the terms of any other financing and other agreements entered into by RMNI or its subsidiaries from time to time.

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RISK FACTORS

GPIA shareholders and Rimini Street stockholders should carefully consider the following risk factors, together with all of the other information included in this joint proxy statement/prospectus, before they decide whether to vote or instruct their vote to be cast to approve the relevant proposals described in this joint proxy statement/prospectus.

Risks Related to GPIA’s Business and Structure

Our initial shareholders have entered into letter agreements with us to vote in favor of the business combination with Rimini Street, regardless of how our public shareholders vote.

Unlike many other blank check companies in which the initial shareholders agree to vote their founder shares in accordance with the majority of the votes cast by the public shareholders in connection with an initial business combination, our initial shareholders have entered into letter agreements to vote their founder shares, as well as any public shares purchased during or after our initial public offering, in favor of the business combination with Rimini Street. As of the date of this joint proxy statement/prospectus, our initial shareholders own 21.6% of the outstanding GPIA ordinary shares. Accordingly, it is more likely that the necessary shareholder approval will be received than would be the case if our initial shareholders agreed to vote their founder shares in accordance with the majority of the votes cast by our public shareholders.

In addition, on May 16, 2017, in connection with the transactions contemplated by the merger agreement, GPIAC, LLC entered into a transaction support and voting agreement with GPIA and Rimini Street, pursuant to which, among other things, GPIAC, LLC agreed to vote its GPIA ordinary shares in favor of the transactions at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, the aggregate number of shares covered by the transaction support and voting agreement entered into by GPIAC, LLC represents 21.3% of the outstanding GPIA ordinary shares. In addition, our independent directors have indicated that they intend to vote their shares in favor of all other proposals being presented at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, our independent directors own 0.3% of the outstanding GPIA ordinary shares.

The ability of our public shareholders to exercise redemption rights with respect to a large number of our public shares may not allow us to complete the most desirable business combination or optimize the capital structure of RMNI.

At the time of entering into the merger agreement, we did not know how many shareholders may exercise their redemption rights, and therefore, we needed to structure the transaction based on our expectations as to the number of shares that will be submitted for redemption. Under the merger agreement, the consummation of the first merger is conditioned upon, among other things, (i) there being a minimum of $50,000,000 of cash available to GPIA (including the cash in our trust account and any cash provided by the Sponsor pursuant to its equity commitment) and (ii) there being a minimum amount of immediately available cash in the trust account of not less than $5,000,001 after giving effect to the redemption of GPIA ordinary shares that holders of GPIA ordinary shares validly elected to redeem in connection with the business combination.

Therefore, if our public shareholders exercise with redemption rights with respect to a large number of our public shares, then unless such conditions are waived by GPIA, Let’s Go and Rimini Street, GPIA may be unable to satisfy such conditions and the merger agreement could terminate and the proposed business combination may not be consummated. In addition, the amendment, modification or waiver of the merger agreement in any manner that could reasonably be expected to be materially adverse to Rimini Street or the agents and lenders under the Credit Facility requires the prior written consent of the Origination Agent. There can be no assurance that GPIA, Let’s Go and Rimini Street would waive any such provision of the merger agreement, or that the agents and lenders under the Credit Facility would provide any required consents to such amendments, modifications or waivers. In addition, the exercise of redemption rights with respect to a large number of our public shares may make GPIA and Rimini Street unable to take such actions as may be desirable in order to optimize the capital structure of RMNI upon consummation of the business combination.

The Sponsor, as well as our directors, executive officers, advisors and their affiliates may elect to purchase shares from public shareholders prior to the consummation of the business combination, which may influence the vote on the proposed business combination and reduce the public “float” of our ordinary shares.

The Sponsor, as well as our directors, executive officers, advisors or their affiliates may purchase our shares in privately negotiated transactions or in the open market either prior to or following the consummation of the business combination, although they are under no obligation to do so. Any such purchases may include an agreement with a

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selling shareholder that such shareholder, for so long as it remains the record holder of the shares in question, will vote in favor of the proposals to be voted upon the extraordinary general meeting and/or will not exercise its redemption rights with respect to the shares so purchased. In the event that the Sponsor or any of our directors, executive officers, advisors or their affiliates purchase shares in privately negotiated transactions from public shareholders who have already elected to exercise their redemption rights, such selling shareholders would be required to revoke their prior elections to redeem their RMNI public shares.

The purpose of such share purchases and other transactions would be to increase the likelihood of satisfaction of the requirements that (i) holders of a majority of the shares who, being present and entitled to vote at the extraordinary general meeting and who do vote, vote in favor of the business combination proposal, the stock issuance proposal and the adjournment proposal, (ii) holders of at least two-thirds of the shares who, being present and entitled to vote at the extraordinary general meeting and who do vote, vote in favor of the domestication proposal and the organizational documents proposals, and (iii) the minimum available cash condition of $50,000,000 and the condition that the minimum trust account balance of $5,000,001 are satisfied. Any such share purchases and other transactions may thereby increase the likelihood of obtaining shareholder approval of the business combination. This may result in the completion of our first merger that may not otherwise have been possible.

In addition, entering into any such arrangements may have a depressive effect on the market price of the GPIA ordinary shares. For example, as a result of these arrangements, an investor or holder may have the ability to effectively purchase shares at a price lower than market and may therefore be more likely to sell the shares he owns, either prior to or immediately after the extraordinary general meeting. Moreover, any such purchases may make it more likely that the minimum available cash condition of $50,000,000 and the condition that the minimum trust account balance of $5,000,001 are satisfied.

In addition, if such purchases are made, the public “float” of our ordinary shares and the number of beneficial holders of our securities may be reduced, which could make it difficult to obtain or maintain the quotation, listing or trading of our securities on a national securities exchange.

We are not registering the ordinary shares issuable upon exercise of the warrants under the Securities Act or any state securities laws at this time, and such registration may not be in place when an investor desires to exercise warrants, thus precluding such investor from being able to exercise its warrants and causing such warrants to expire worthless.

We are not registering the ordinary shares issuable upon exercise of the warrants under the Securities Act or any state securities laws at this time. However, under the terms of the warrant agreement, we have agreed to use our best efforts to file a registration statement under the Securities Act covering such shares and maintain a current prospectus relating to the ordinary shares issuable upon exercise of the warrants, until the expiration of the warrants in accordance with the provisions of the warrant agreement. We cannot assure you that we will be able to do so if, for example, any facts or events arise which represent a fundamental change in the information set forth in the registration statement or prospectus, the financial statements contained or incorporated by reference therein are not current or correct or the SEC issues a stop order. If the shares issuable upon exercise of the warrants are not registered under the Securities Act, we will be required to permit holders to exercise their warrants on a cashless basis. However, no warrant will be exercisable for cash or on a cashless basis, and we will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or unless an exemption from registration under the Securities Act, such as Rule 144 thereunder, is available. Notwithstanding the above, if our ordinary shares are at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or maintain in effect a registration statement or register or qualify the shares under blue sky laws. In no event will we be required to net cash settle any warrant, or issue securities or other compensation in exchange for the warrants in the event that we are unable to register or qualify the shares underlying the warrants under the Securities Act or applicable state securities laws. If the issuance of the shares upon exercise of the warrants is not so registered or qualified or exempt from registration or qualification, the holders of such warrants shall not be entitled to exercise such warrants and such warrants may have no value and expire worthless. In such event, holders who acquired their warrants as part of a purchase of units will

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have paid the full unit purchase price solely for the ordinary shares included in the units. If and when the warrants become redeemable by us, we may exercise our redemption right even if we are unable to register or qualify the underlying ordinary shares for sale under all applicable state securities laws.

If third parties bring claims against us, the proceeds held in the trust account could be reduced and the per share redemption amount received by shareholders may be less than $10.00 per share (which was the offering price in our initial public offering).

Our placing of funds in the trust account may not protect those funds from third party claims against us. Although we will seek to have all vendors, service providers (other than our independent auditors), prospective target businesses or other entities with which we do business execute agreements with us waiving any right, title, interest or claim of any kind in or to any monies held in the trust account, there is no guarantee that they will execute such agreements or even if they execute such agreements that they would be prevented from bringing claims against the trust account, including, but not limited to, fraudulent inducement, breach of fiduciary responsibility or other similar claims, as well as claims challenging the enforceability of the waiver, in each case in order to gain advantage with respect to a claim against our assets, including the funds held in the trust account. If any third party refuses to execute an agreement waiving such claims to the monies held in the trust account, our management will perform an analysis of the alternatives available to it and will only enter into an agreement with a third party that has not executed a waiver if management believes that such third party’s engagement would be significantly more beneficial to us than any alternative.

Examples of possible instances where we may engage a third party that refuses to execute a waiver include the engagement of a third party consultant whose particular expertise or skills are believed by management to be significantly superior to those of other consultants that would agree to execute a waiver or in cases where management is unable to find a service provider willing to execute a waiver. In addition, there is no guarantee that such entities will agree to waive any claims they may have in the future as a result of, or arising out of, any negotiations, contracts or agreements with us and will not seek recourse against the trust account for any reason. Upon redemption of our public shares, if we are unable to complete our business combination within the prescribed time frame, or upon the exercise of a redemption right in connection with our business combination, we will be required to provide for payment of claims of creditors that were not waived that may be brought against us within the 10 years following redemption. Accordingly, the per share redemption amount received by public shareholders could be less than the $10.00 per share initially held in the trust account, due to claims of such creditors. In order to protect the amounts held in the trust account, the Sponsor has agreed to be liable to us if and to the extent any claims by a vendor for services rendered or products sold to us, or a prospective target business with which we have discussed entering into a transaction agreement, reduces the amount of funds in the trust account. This liability will not apply with respect to any claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in the trust account or to any claims under our indemnity of the underwriters of our initial public offering against certain liabilities, including liabilities under the Securities Act. Moreover, even in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third party claims. We have not independently verified whether the Sponsor has sufficient funds to satisfy its indemnity obligations and we have not asked the Sponsor to reserve for such indemnification obligations. Therefore, we cannot assure you that the Sponsor would be able to satisfy those obligations. None of our officers will indemnify us for claims by third parties including, without limitation, claims by vendors and prospective target businesses.

Additionally, if we are forced to file a bankruptcy case or an involuntary bankruptcy case is filed against us which is not dismissed, or if we otherwise enter compulsory or court supervised liquidation, the proceeds held in the trust account could be subject to applicable bankruptcy law, and may be included in our bankruptcy estate and subject to the claims of third parties with priority over the claims of our shareholders. To the extent any bankruptcy claims deplete the trust account, we may not be able to return to our public shareholders $10.00 per share (which was the offering price in our initial public offering).

If, after we distribute the proceeds in the trust account to our public shareholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, a bankruptcy court may seek to recover such proceeds, and we and our board of directors may be exposed to claims of punitive damages.

If, after we distribute the proceeds in the trust account to our public shareholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, any distributions received by shareholders could be viewed under applicable debtor/creditor and/or bankruptcy laws as either a “preferential

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transfer” or a “fraudulent conveyance”. As a result, a bankruptcy court could seek to recover all amounts received by our shareholders. In addition, our board of directors may be viewed as having breached its fiduciary duty to our creditors and/or having acted in bad faith, thereby exposing it and us to claims of punitive damages, by paying public shareholders from the trust account prior to addressing the claims of creditors. We cannot assure you that claims will not be brought against us for these reasons.

If, before distributing the proceeds in the trust account to our public shareholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, the claims of creditors in such proceeding may have priority over the claims of our shareholders and the per share amount that would otherwise be received by our shareholders in connection with our liquidation may be reduced.

If, before distributing the proceeds in the trust account to our public shareholders, we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, the proceeds held in the trust account could be subject to applicable bankruptcy law, and may be included in our bankruptcy estate and subject to the claims of third parties with priority over the claims of our shareholders. To the extent any bankruptcy claims deplete the trust account, the per share amount that would otherwise be received by our shareholders in connection with our liquidation may be reduced.

Our shareholders may be held liable for claims by third parties against us to the extent of distributions received by them upon redemption of their shares.

If we are forced to enter into an insolvent liquidation, any distributions received by shareholders could be viewed as an unlawful payment if it was proved that immediately following the date on which the distribution was made, we were unable to pay our debts as they fall due in the ordinary course of business. As a result, a liquidator could seek to recover all amounts received by our shareholders. Furthermore, our directors may be viewed as having breached their fiduciary duties to us or our creditors and/or may have acted in bad faith, and thereby exposing themselves and our company to claims, by paying public shareholders from the trust account prior to addressing the claims of creditors. We cannot assure you that claims will not be brought against us for these reasons. We and our directors and officers who knowingly and willfully authorized or permitted any distribution to be paid out of our share premium account while we were unable to pay our debts as they fall due in the ordinary course of business would be guilty of an offence and may be liable to a fine of $15,000 and to imprisonment for five years in the Cayman Islands.

We are an emerging growth company within the meaning of the Securities Act, and if we take advantage of certain exemptions from disclosure requirements available to emerging growth companies, this could make our securities less attractive to investors and may make it more difficult to compare our performance with other public companies.

We are an “emerging growth company” within the meaning of the Securities Act, as modified by the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. As a result, our shareholders may not have access to certain information they may deem important. We could be an emerging growth company for up to five years, although circumstances could cause us to lose that status earlier, including if the market value of our ordinary shares held by non-affiliates exceeds $700 million as of any June 30 before that time, in which case we would no longer be an emerging growth company as of the following December 31. We cannot predict whether investors will find our securities less attractive because we will rely on these exemptions. If some investors find our securities less attractive as a result of our reliance on these exemptions, the market prices of our securities may be lower than they otherwise would be, there may be a less active trading market for our securities and the market prices of our securities may be more volatile.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides

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that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. We have elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of our financial statements with certain other public companies difficult or impossible because of the potential differences in accounting standards used.

Compliance obligations under the Sarbanes-Oxley Act may make it more difficult for us to effectuate our business combination, require substantial financial and management resources, and increase the time and costs of completing an acquisition.

Once we are no longer an emerging growth company, we will be required to comply with the independent registered public accounting firm attestation requirement on our internal control over financial reporting. The fact that we are a blank check company makes compliance with the requirements of the Sarbanes-Oxley Act particularly burdensome on us as compared to other public companies because a target company with which we seek to complete our business combination may not be in compliance with the provisions of the Sarbanes-Oxley Act regarding adequacy of its internal controls. The development of the internal control of any such entity to achieve compliance with the Sarbanes-Oxley Act may increase the time and costs necessary to complete any such acquisition.

Because we are incorporated under the laws of the Cayman Islands, you may face difficulties in protecting your interests, and your ability to protect your rights through the U.S. Federal courts may be limited.

We are an exempted company incorporated under the laws of the Cayman Islands. Prior the effectiveness of the business combination, we intend to affect a deregistration under Article 206 of the Cayman Islands Companies Law and a domestication under Section 388 of the Delaware General Corporation Law, pursuant to which GPIA’s jurisdiction of incorporation would be changed from the Cayman Islands to the State of Delaware. The mergers will follow the domestication. However, there can be no assurance that the domestication and the business combination will be consummated.

As an exempted company incorporated under the laws of the Cayman Islands, it may be difficult for investors to effect service of process within the United States upon our directors or executive officers, or enforce judgments obtained in the United States courts against our directors or officers.

The corporate affairs of GPIA are governed by our memorandum and articles of association, the Companies Law (as the same may be supplemented or amended from time to time) and the common law of the Cayman Islands. The rights of shareholders to take action against the directors, actions by minority shareholders and the fiduciary responsibilities of our directors to us under the Cayman Islands Companies Law are to a large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as from English common law, the decisions of whose courts are of persuasive authority but are not binding on a court in the Cayman Islands. The rights of our shareholders and the fiduciary responsibilities of our directors under Cayman Islands law, including the Cayman Islands Companies Law, are different from what they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular, the Cayman Islands has a different body of securities laws as compared to the United States, and certain states, such as Delaware, may have more fully developed and judicially interpreted bodies of corporate law. In addition, Cayman Islands companies may not have standing to initiate a shareholders derivative action in a Federal court of the United States.

We have been advised by our Cayman Islands legal counsel that the courts of the Cayman Islands are unlikely (i) to recognize or enforce against us judgments of courts of the United States predicated upon the civil liability provisions of the federal securities laws of the United States or any state; and (ii) in original actions brought in the Cayman Islands, to impose liabilities against us predicated upon the civil liability provisions of the federal securities laws of the United States or any state, so far as the liabilities imposed by those provisions are penal in nature. In those circumstances, although there is no statutory enforcement in the Cayman Islands of judgments obtained in the United States, the courts of the Cayman Islands will recognize and enforce a foreign money judgment of a foreign court of competent jurisdiction without retrial on the merits based on the principle that a judgment of a competent foreign court imposes upon the judgment debtor an obligation to pay the sum for which judgment has been given provided certain conditions are met. For a foreign judgment to be enforced in the Cayman Islands, such judgment must be final

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and conclusive and for a liquidated sum, and must not be in respect of taxes or a fine or penalty, inconsistent with a Cayman Islands judgment in respect of the same matter, impeachable on the grounds of fraud or obtained in a manner, or be of a kind the enforcement of which is, contrary to natural justice or the public policy of the Cayman Islands (awards of punitive or multiple damages may well be held to be contrary to public policy). A Cayman Islands court may stay enforcement proceedings if concurrent proceedings are being brought elsewhere.

As a result of all of the above, public shareholders of GPIA may have more difficulty in protecting their interests in the face of actions taken by management, members of the board of directors or controlling shareholders than they would as public shareholders of a United States company.

Risks Related to RMNI Business Following the Business Combination

The value of your investment in RMNI following consummation of the business combination will be subject to the significant risks affecting Rimini Street and those inherent in the industry in which it operates. Certain risks in relation to Rimini Street are described below under “ —Risks Related to Rimini Street’s Business, Operations and Industry ”. You should carefully consider the risks and uncertainties described below and other information included in this joint proxy statement/prospectus. If any of the events described below occur, the business and financial results of RMNI following the business combination could be adversely affected in a material way. This could cause the market price of RMNI common stock, warrants and units to decline, perhaps significantly, and you therefore may lose all or part of your investment. As used in the risks described in this section, references to “we”, “us” and “our” are intended to refer to RMNI (which is the post-business combination entity), including Rimini Street (which will merge into RMNI as part of the business combination) and the subsidiaries of Rimini Street, unless the context clearly indicates otherwise. The risk factors set forth under the heading “— Risks Related to Rimini Street’s Business, Operations and Industry ” apply to the business and operations of Rimini Street and will also apply to the business and operations of RMNI following consummation of the business combination.

Risks Related to Rimini Street’s Business, Operations and Industry

Risks Related to Litigation

We and our Chief Executive Officer are involved in litigation with Oracle. An adverse outcome in the ongoing litigation could result in the payment of substantial damages and/or an injunction against certain of our business practices, either of which could have a material adverse effect on our business and financial results.

In January 2010, certain subsidiaries of Oracle Corporation (together with its subsidiaries individually and collectively, “Oracle”) filed a lawsuit, Oracle USA, Inc. et al v. Rimini Street, Inc. et al (United States District Court for the District of Nevada) (“District Court”), against us and our Chief Executive Officer, Seth Ravin, alleging that certain of our processes violated Oracle’s license agreements with its customers and that we committed acts of copyright infringement and violated other federal and state laws (“Rimini I”). The litigation involved our business processes and the manner in which we provided our services to our clients. To provide software support and maintenance services, we request access to a separate environment for developing and testing the updates to the software programs. Prior to July 2014, PeopleSoft, J.D. Edwards and Siebel clients switching from Oracle to our enterprise software support systems were given a choice of two models for hosting the development and testing environment for their software: the environment could be hosted on the client’s servers or on our servers. In addition to other allegations, Oracle challenged the Rimini Street-hosted model for certain Oracle license agreements with its customers that contained site-based restrictions. Oracle alleged that its license agreements with its customers restrict licensees’ rights to provide third parties, such as Rimini Street, with copies of Oracle software and restrict where a licensee physically may install the software. Oracle alleged that, in the course of providing services, we violated such license agreements and illegally downloaded software and support materials without authorization. Oracle further alleged that we impaired its computer systems in the course of downloading materials for our clients. In April 2010 Oracle filed its first amended complaint, and in June 2011 Oracle filed its second amended complaint. Specifically, Oracle’s second amended complaint asserted the following causes of action: copyright infringement; violations of the Federal Computer Fraud and Abuse Act; violations of the Computer Data Access and Fraud Act; violations of Nevada Revised Statute 205.4765; breach of contract; inducing breach of contract; intentional interference with prospective economic advantage; unfair competition; trespass to chattels; unjust enrichment/restitution; unfair practices; and a demand for an accounting. Oracle’s second amended complaint sought the entry of a preliminary and permanent injunction prohibiting us from copying, distributing, using, or creating derivative works based on Oracle Software and Support Materials except as allowed by express license from Oracle; from using any software tool to access

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Oracle Software and Support Materials; and from engaging in other actions alleged to infringe Oracle’s copyrights or were related to its other causes of action. The parties conducted extensive fact and expert discovery from 2010 through mid-2012.

In March and September 2012, Oracle filed two motions seeking partial summary judgment as to, among other things, its claim of infringement of certain copyrighted works owned by Oracle. In February 2014, the District Court issued a ruling on Oracle’s March 2012 motion for partial summary judgment (i) granting summary judgment on Oracle’s claim of copyright infringement as it related to two of our PeopleSoft clients and (ii) denying summary judgment on Oracle’s claim with respect to one of our J.D. Edwards clients and one of our Siebel clients. The parties stipulated that the licenses among clients were substantially similar. In August 2014, the District Court issued a ruling on Oracle’s September 2012 motion for partial summary judgment (i) granting summary judgment on Oracle’s claim of copyright infringement as it relates to Oracle Database and (ii) dismissing our first counterclaim for defamation, business disparagement and trade libel and our third counterclaim for unfair competition. We believe we are in compliance with the District Court’s decisions not later than July 2014 when we revised our business practices to eliminate the processes determined to be infringing.

A jury trial in Rimini I commenced in September 2015. On October 13, 2015, the jury returned a verdict against us that (i) we were liable for innocent copyright infringement, (ii) we and Mr. Ravin were each liable for violating certain state computer access statutes, and (iii) neither we nor Mr. Ravin were liable for inducing breach of contract or intentional interference with prospective economic advantage. The jury determined that the copyright infringement did not cause Oracle to suffer lost profits, that the copyright infringement was not willful, and did not award punitive damages. Following post-trial motions, Oracle was awarded a final judgment of $124.4 million, consisting of copyright infringement damages based on the fair market value license damages theory, damages for violation of certain state computer access statutes, prejudgment interest and attorneys’ fees and costs. In addition, the District Court entered a permanent injunction prohibiting us from using certain processes – including processes adjudicated as infringing at trial – that we ceased using no later than July 2014. We paid the full judgment amount of $124.4 million to Oracle on October 31, 2016 and have appealed the case to the United States Court of Appeals for the Ninth Circuit (“Court of Appeals”) to appeal each of the above items in the final judgment as well as the injunction. With regard to the injunction entered by the District Court, we have argued on appeal that the injunction is vague and contains overly broad language that could be read to cover some of our current business practices that were not adjudicated to be infringing at trial and should not have been issued under applicable law. On December 6, 2016, the Court of Appeals granted our emergency motion for a stay of the permanent injunction pending resolution of the underlying appeal and agreed to consider the appeal on an expedited basis. Oral argument before the Court of Appeals is scheduled for July 13, 2017. We expect a decision from the Court of Appeals on our appeal by early 2018, although a decision could be announced sooner or later.

In October 2014, we filed a separate lawsuit, Rimini Street Inc. v. Oracle Int’l Corp. (United States District Court for the District of Nevada) (“Rimini II”), against Oracle seeking a declaratory judgment that our revised development processes, in use since at least July 2014, do not infringe certain Oracle copyrights. In February 2015, Oracle filed a counterclaim alleging copyright infringement, which included (i) the same allegations asserted in Rimini I but limited to new or existing clients for whom we provided support from the conclusion of Rimini I discovery in December 2011 until the revised support processes were fully implemented by July 2014, and (ii) new allegations that our revised support processes also infringe Oracle copyrights. Oracle’s counterclaim also included allegations of violation of the Lanham Act, intentional interference with prospective economic advantage, breach of contract and inducing breach of contract, unfair competition, and unjust enrichment/restitution. It also sought an accounting. On February 28, 2016, Oracle filed amended counterclaims adding allegations of violation of the Digital Millennium Copyright Act. On December 19, 2016, we filed an amended complaint against Oracle asking for a declaratory judgment of non-infringement of copyright and alleging intentional interference with contract, intentional interference with prospective economic advantage, violation of the Nevada Deceptive Trade Practices Act, violation of the Lanham Act, and violation of California Business & Professions Code § 17200 et seq. On January 17, 2017, Oracle filed a motion to dismiss our amended claims and filed its third amended counterclaims, adding three new claims for a declaratory judgment of no intentional interference with contractual relations, no intentional interference with prospective economic advantage, and no violation of California Business & Professions Code § 17200 et seq. On February 14, 2017, we filed our answer and motion to dismiss Oracle’s third amended counterclaim, which has been fully briefed and is pending consideration by the District Court. On March 7, 2017, Oracle filed a motion to strike our copyright misuse affirmative defense which is briefed and pending consideration by the District Court. By stipulation of the parties, the District Court granted our motion to file our third amended complaint to add claims

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arising from Oracle’s purported revocation of our access to its support websites on behalf of our clients, which was filed and served on May 2, 2017. By agreement of the parties, Oracle filed its motion to dismiss our third amended complaint on May 30, 2017, and our opposition is due on June 27, 2017, and any reply by Oracle is due on July 11, 2017.

Discovery with respect to the above action is expected to continue through at least July 2018. There is currently no trial date scheduled and we do not expect a trial to occur in this matter earlier than 2020, but the trial could occur earlier or later than that. Given that discovery is ongoing, we do not have sufficient information regarding possible damages exposure for the counterclaims asserted by Oracle or possible recovery by us in connection with our claims against Oracle. Both parties are seeking injunctive relief in addition to monetary damages in this matter.

For counterclaims in Rimini II on which Oracle may prevail, we could be required to pay substantial damages for our current or past business activities, be enjoined from certain business practices and/or be in breach of various covenants in our Financing Agreement with certain lenders listed therein, Cortland Capital Market Services as administrative agent and collateral agent, and CB Agent Services LLC as origination agent for the lenders, and the other parties named therein, dated as of June 24, 2016, as amended from time to time (the “Credit Facility”), which itself could result in an event of default, in which case the lenders could demand accelerated repayment of principal, accrued and default interest, and other fees and expenses. Any of these outcomes could result in a material adverse effect on our business and the pendency of the litigation alone could dissuade clients from purchasing or continuing to purchase our services. Our business has been and may continue to be materially harmed by this litigation and Oracle’s conduct. During the course of these cases, we anticipate there will be rulings by the District Court in Rimini II and the Court of Appeals in Rimini I in connection with hearings, motions, decisions and other matters, as well as other interim developments related to the litigations. If securities analysts or investors regard these rulings as negative, the market price of our common stock may decline.

While we plan to vigorously litigate the appeal in Rimini I and litigate the claims and counterclaims in Rimini II, we are unable to predict the timing or outcome of these lawsuits. No assurance is or can be given that we will prevail on any appeal, claim or counterclaim.

Refer to the discussion under “ Information About Rimini Street—Legal Proceedings ” for more information related to this litigation.

The Oracle software products that are part of our ongoing litigation with Oracle represent a significant portion of our current revenue.

Subject to appeal, we have paid the Rimini I final judgment of $124.4 million in full, and recovery of any part of the judgment will depend on the outcome of the appeal. If the permanent injunction is upheld and reinstated after the appeal of Rimini I, we estimate it will cost us between 1% and 2% of net revenue to further modify our support processes to comply with the terms of the injunction as ordered by the District Court. In Rimini II, Oracle has filed counterclaims relating to our support services for Oracle’s PeopleSoft, J.D. Edwards, Siebel, E-Business Suite and Database software products. For the three months ended March 31, 2017, approximately 72% of our total revenue was derived from the support services that we provide for our clients using Oracle’s PeopleSoft, J.D. Edwards, Siebel, E-Business Suite and Database software products. The percentage of revenue derived from services we provide for just PeopleSoft software was approximately 19% of our total revenue during this same period. Although we provide support services for additional Oracle product lines that are not subject to litigation and support services for software products provided by companies other than Oracle, our current revenue depends significantly on the product lines that are the subject of the Rimini II litigation and Rimini I appeal. Should Oracle prevail on its claims in Rimini II or should the permanent injunction as currently drafted be upheld and reinstated on appeal in Rimini I to include unadjudicated and non-infringing processes, we could be required to change the way we provide support services to some of our clients, which could result in the loss of clients and revenue, and may also give rise to claims for compensation from our clients, any of which could have a material adverse effect on our business, financial condition and results of operations.

Our ongoing litigation with Oracle presents challenges for growing our business.

We have experienced challenges growing our business as a result of our ongoing litigation with Oracle. Many of our existing and prospective clients have expressed concerns regarding our ongoing litigation and, in some cases, have been subjected to subpoenas, depositions and various negative communications by Oracle in connection with the litigation. We have experienced in the past, and may continue to experience in the future, volatility and slowness

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in acquiring new clients, as well as clients not renewing their agreements with us, due to these challenges relating to our ongoing litigation with Oracle. Further, certain of our prospective and existing clients may be subject to additional subpoenas, depositions and negative communications from software vendors. We have taken steps to minimize disruptions to our existing and prospective clients regarding the litigation, but we continue to face challenges growing our business while the litigation remains ongoing. In certain cases, we have agreed to reimburse our clients for their reasonable legal fees incurred in connection with any litigation-related subpoenas and depositions or to provide indemnification or termination rights if any outcome of litigation results in our inability to continue providing any of the paid-for services. In addition, we believe the length of our sales cycle is longer than it otherwise would be due to prospective client diligence on possible effects of the Oracle litigation on our business. We cannot assure you that we will continue to overcome the challenges we face as a result of the litigation and continue to renew existing clients or secure new clients.

Oracle has a history of litigation against companies offering alternative support programs for Oracle products, and Oracle could pursue additional litigation with us.

Oracle has been active in litigating against companies that have offered competing maintenance and support services for their products. For example, in March 2007, Oracle filed a lawsuit against SAP and its wholly-owned subsidiary, TomorrowNow, Inc., a company originally founded by our Chief Executive Officer, Seth Ravin, and acquired by SAP in 2005. After a jury verdict awarding Oracle $1.3 billion, the parties stipulated to a final judgment of $306 million subject to appeal. After the appeal, the parties settled the case in November 2014 for $356.7 million. In February 2012, Oracle filed suit against Service Key, Inc. and settled the case in October 2013. Oracle also filed suit against CedarCrestone Corporation in September 2012, and settled the case in July 2013. TomorrowNow and CedarCrestone offered maintenance and support for Oracle software products, and Service Key offered maintenance and support for Oracle technology products. Given Oracle’s history of litigation against companies offering alternative support programs for Oracle products, we can provide no assurance, regardless of the outcome of our current litigations with Oracle, that Oracle will not pursue additional litigation against us. Such additional litigation could be costly, distract our management team from running our business and reduce client interest and our sales revenue.

Risks Related to Indebtedness

We have substantial indebtedness, and the fact that a significant portion of our cash flow is used to make debt service payments could adversely affect our ability to raise additional capital to fund our operations, limit our ability to react to changes in the economy or our industry and prevent us from making debt service payments.

We have substantial indebtedness. As of March 31, 2017, we had total outstanding indebtedness in the aggregate principal amount of approximately $107.2 million, consisting entirely of obligations under the Credit Facility. In addition to principal obligations, there are also mandatory exit fees and consulting fees that result in total contractual liabilities, including the principal obligations, under the Credit Facility of $170.4 million as of March 31, 2017. Further, the Credit Facility has a make-whole interest provision that expires in June 2019. As a result, a significant portion of our liquidity needs are for servicing debt, including significant interest payments and significant monthly amortization and quarterly Excess Cash Flow prepayment obligations (as defined in the Credit Facility). See Note 5 to the financial statements for Rimini Street for the year ended December 31, 2016 included elsewhere in this joint proxy statement/prospectus for details of our outstanding indebtedness under the Credit Facility, including the related restrictive covenants.

Our level of debt could have important consequences, including:

making it more difficult to satisfy our obligations with respect to indebtedness;
requiring us to dedicate a substantial portion of our cash flow from operations to payments on indebtedness, thereby reducing the availability of cash flow to fund acquisitions, working capital, capital expenditures, expand sales and marketing efforts and other corporate purposes;
impacting our ability to grow our business as rapidly as we have in the past;
restricting us from making strategic acquisitions;
placing us at a competitive disadvantage relative to our competitors who are less leveraged and who therefore may be able to take advantage of opportunities that our leverage prevents us from pursuing;

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increasing our vulnerability to and limiting our flexibility in planning for, or reacting to, changes in the business, the industries in which we operate, the economy and governmental regulations; and
restricting our ability to borrow additional funds.

Any of the foregoing could have a material adverse effect on our business, financial condition, results of operations, prospects and ability to satisfy our outstanding debt obligations.

Significant amounts of cash will be required to service our indebtedness, and we may not be able to generate sufficient cash from operations or otherwise to service all of our indebtedness when due and may be forced to take other actions to satisfy our obligations under our indebtedness that may not be successful.

A significant amount of cash will be required to make payments on the Credit Facility when due, including significant interest payments and significant monthly amortization and quarterly Excess Cash Flow prepayment obligations. See Note 5 to the financial statements for Rimini Street for the year ended December 31, 2016 included elsewhere in this joint proxy statement/prospectus for details of our debt service obligations in respect of the Credit Facility.

Our ability to pay principal and interest on the Credit Facility will depend upon, among other things, our financial and operating performance, which will be affected by prevailing economic, industry and competitive conditions and financial, business, legislative, regulatory and other factors, many of which are beyond our control. We cannot assure you that our business will generate cash flow from operations or otherwise or that future borrowings will be available to us in an amount sufficient to fund our liquidity needs, including the payment of principal, interest and fees on the Credit Facility when due.

If our cash flows and capital resources are insufficient to service our indebtedness, we may be forced to reduce or delay capital expenditures, sales and marketing expenditures, general and administration expenses or operating expenses; sell assets; seek additional capital; or restructure or refinance our indebtedness, including the Credit Facility. These alternative measures may not be successful and may not permit us to meet our scheduled debt service obligations. Our ability to restructure or refinance our debt will depend on the condition of the financial and capital markets and our financial condition at such time. In addition, the terms of existing or future debt agreements, including the Credit Facility, may restrict us from adopting some of these alternatives. In the absence of such operating results and resources, we could face substantial liquidity problems and might be required to dispose of material assets or operations to meet our debt service and other obligations. We may not be able to consummate those dispositions for fair market value or at all. Furthermore, any proceeds that we could realize from any such dispositions may not be adequate to meet our debt service obligations then due. Our inability to generate sufficient cash flow to satisfy our debt obligations, or to refinance our indebtedness on commercially reasonable terms or at all, could result in a material adverse effect on our business, results of operations and financial condition and could negatively impact our ability to satisfy the obligations under the Credit Facility.

If we cannot make scheduled payments on our indebtedness when due or otherwise are unable to comply with our obligations under the Credit Facility, we will be in default, and lenders under the Credit Facility could declare all outstanding principal, interest and fees to be due and payable and could foreclose against the assets securing their loans and we could be forced into bankruptcy or liquidation.

In order to consummate the business combination, Rimini Street was required to obtain the consent of a majority of the lenders under the Credit Facility. Certain waiver letters, dated as of May 16, 2017, agreed to by Rimini Street and the agents and lenders provide for consent by the agents and lenders to consummate the business combination. The waiver letters also provide for the waiver of certain events of default under the Credit Facility that may arise as a result of the consummation of the business combination. As a condition to effectiveness of the waiver letters, Rimini Street is required to make a minimum payment to the lenders of $35.0 million to reduce certain outstanding obligations under the Credit Facility.

The Credit Facility contains restrictions that limit our flexibility in operating our business.

The Credit Facility contains, and any of our future indebtedness would likely contain, a number of covenants that impose significant operating and financial restrictions, including restrictions on our ability and our subsidiaries’ ability to, among other things:

incur additional debt or issue certain types of equity;

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pay dividends or make distributions in respect of capital stock or make other restricted payments;
make certain investments;
limit our ability to make sales and marketing expenditures;
sell certain assets;
create liens on certain assets;
consolidate, merge, sell or otherwise dispose of all or substantially all of our assets;
enter into certain transactions with affiliates;
make certain capital expenditures;
enter into sale/leaseback transactions;
change the nature of our business;
enter into insurance settlements that exceed certain amounts;
modify the terms of certain other indebtedness; and
allow the cash and cash equivalents held by our foreign subsidiaries to exceed a certain agreed upon amount.

For example, we were required to enter into an amendment to the Credit Facility to address our failure to comply with certain covenants relating to restrictions on operational expenditures. As a result of these covenants, we and our subsidiaries are limited in the manner in which we conduct business, and may be unable to engage in favorable business activities or finance future operations or capital needs.

We have pledged substantially all of our assets, including cash balances, as collateral under the Credit Facility. If any lenders accelerate the repayment of borrowings, there can be no assurance that there will be available assets to repay indebtedness.

Under the Credit Facility, we are also required to satisfy and maintain specified financial ratios, including a leverage ratio, asset coverage ratio and marketing return ratio, and to comply with other financial tests including a minimum liquidity test, minimum gross margin test, maximum churn rate test and certain budget compliance restrictions. We are also required to consummate certain equity issuances by November 30, 2018. See Note 5 to the financial statements for Rimini Street for the year ended December 31, 2016 included elsewhere in this joint proxy statement/prospectus for further information. Our ability to meet the financial ratios and the financial tests under the Credit Facility can be affected by events beyond our control, and there can be no assurance that we will be able to continue to meet those ratios and tests.

A failure to comply with the covenants contained in the Credit Facility could result in an event of default, which, if not cured or waived, could have a material adverse effect on our business, financial condition and results of operations. In the event of any default under the Financing Agreement, the lenders thereunder:

could cease making monthly disbursements to us in an amount necessary to satisfy our cash disbursement needs for the coming month;
could elect to declare all borrowings outstanding, together with accrued and unpaid interest and fees (including any applicable prepayment premium), to be due and payable and terminate all commitments to extend further credit;
could apply all of our available cash to repay such amounts; or
exercise any other rights and remedies permitted under applicable law, including, the collection and sale of any assets constituting collateral.

In addition, upon the occurrence and during the continuance of any event of default, the principal (including PIK interest), all unpaid interest, fees and other obligations shall bear an additional post-default interest rate of 2.0% per annum from the date such event of default occurs until it is cured or waived.

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Such actions by the lenders under the Credit Facility could cause cross defaults under our and our subsidiaries’ other future indebtedness, if any.

If the indebtedness under the Credit Facility or other indebtedness were to be accelerated, there can be no assurance that our assets would be sufficient to repay such indebtedness in full and we could be forced into bankruptcy or liquidation.

Other Risks Related to Our Business, Operations and Industry

The market for independent software support services is relatively undeveloped and may not grow.

The market for independent enterprise software support services is still relatively undeveloped, has not yet achieved widespread acceptance and may not grow quickly or at all. Our success will depend to a substantial extent on the willingness of companies to engage a third party such as us to provide software support services for their enterprise software. Many enterprise software licensees are still hesitant to use a third party to provide such support services, choosing instead to rely on support services provided by the enterprise software vendor. Other enterprise software licensees have invested substantial personnel, infrastructure and financial resources in their own organizations with respect to support of their licensed enterprise software products and may choose to self-support with their own internal resources instead of purchasing services from the enterprise software vendor or an independent provider such as ourselves. Companies may not engage us for other reasons, including concerns regarding our ongoing litigation with Oracle, the potential for future litigation, the potential negative effect our engagement could have on their relationships with their enterprise software vendor, or concerns that they could infringe third party intellectual property rights or breach one or more software license agreements if they engage us to provide support services. New concerns or considerations may also emerge in the future. Particularly because our market is relatively undeveloped, we must address our potential clients’ concerns and explain the benefits of our approach in order to convince them of the value of our services. If companies are not sufficiently convinced that we can address their concerns and that the benefits of our services are compelling, then the market for our services may not develop as we anticipate and our business will not grow.

We have a history of losses and may not achieve profitability in the future.

We incurred net losses of $127.8 million, $45.3 million and $12.9 million in 2014, 2015 and 2016, respectively, and $8.0 million and $14.5 million in the three months ended March 31, 2016 and 2017, respectively. As of March 31, 2017, we had an accumulated deficit of $265.6 million. We will need to generate and sustain increased revenue levels in future periods in order to become profitable, and, even if we do, we may not be able to maintain or increase our level of profitability. We intend to continue to expend significant funds to expand our sales and marketing operations, enhance our service offerings, expand into new markets, launch new product offerings and meet the increased compliance requirements associated with our transition to and operation as a public company. Our efforts to grow our business may be more costly than we expect, and we may not be able to increase our revenue enough to offset our higher operating expenses. We may incur significant losses in the future for a number of reasons, including, as a result of our ongoing litigation with Oracle, the potential for future litigation, other risks described in this joint proxy statement/prospectus, unforeseen expenses, difficulties, complications and delays and other unknown events. If we are unable to achieve and sustain profitability, the market price of our securities may significantly decrease.

If we are unable to attract new clients or retain and/or sell additional products or services to our existing clients, our revenue growth will be adversely affected.

To increase our revenue, we must add new clients, encourage existing clients to renew or extend their agreements with us on terms favorable to us and sell additional products and services to existing clients. As competitors introduce lower-cost and/or differentiated services that are perceived to compete with ours, or as enterprise software vendors introduce competitive pricing or additional products and services or implement other strategies to compete with us, our ability to sell to new clients and renew agreements with existing clients based on pricing, service levels, technology and functionality could be impaired. As a result, we may be unable to renew or extend our agreements with existing clients or attract new clients or new business from existing clients on terms that would be favorable or comparable to prior periods, which could have an adverse effect on our revenue and growth. In addition, certain of our existing clients may choose to license a new or different version of enterprise software from an enterprise software vendor, and such clients’ license agreements with the enterprise software vendor will typically include a minimum one-year mandatory maintenance and support services agreement. In such cases, it is unlikely that

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these clients would renew their maintenance and support services agreements with us, at least during the early term of the license agreement. In addition, such existing clients could move to another enterprise software vendor, product or release for which we do not offer any products or services.

If our retention rates decrease, or we do not accurately predict retention rates, our future revenue and results of operations may be harmed.

Our clients have no obligation to renew their product or service subscription agreements with us after the expiration of a non-cancellable agreement term. In addition, the majority of our multi-year, non-cancellable client agreements are not pre-paid other than the first year of the non-cancellable service period. We may not accurately predict retention rates for our clients. Our retention rates may decline or fluctuate as a result of a number of factors, including our clients’ decision to license a new product or release from an enterprise software vendor, our clients’ decision to move to another enterprise software vendor, product or release for which we do not offer products or services, client satisfaction with our products and services, the acquisition of our clients by other companies, and clients going out of business. If our clients do not renew their agreements for our products and services or if our clients decrease the amount they spend with us, our revenue will decline and our business will suffer.

We face significant competition from both enterprise software vendors and other companies offering independent enterprise software support services, as well as from software licensees that attempt to self-support, which may harm our ability to add new clients, retain existing clients and grow our business.

We face intense competition from enterprise software vendors, such as Oracle and SAP, who provide software support services for their own products. Enterprise software vendors have offered discounts to companies to whom we have marketed our services. In addition, our current and potential competitors and enterprise software vendors may develop and market new technologies that render our existing or future services less competitive or obsolete. Competition could significantly impede our ability to sell our services on terms favorable to us and we may need to decrease the prices for our services in order to remain competitive. If we are unable to maintain our current pricing due to competitive pressures, our margins will be reduced and our results of operations will be negatively affected.

There are also several smaller vendors in the independent enterprise software support services market with whom we compete with respect to certain of our services. We expect competition to continue to increase in the future, particularly if we prevail in Rimini II, which could harm our ability to increase sales, maintain or increase renewals and maintain our prices.

Our current and potential competitors may have significantly more financial, technical and other resources than we have, may be able to devote greater resources to the development, promotion, sale and support of their products and services, have more extensive customer bases and broader customer relationships than we have and may have longer operating histories and greater name recognition than we have. As a result, these competitors may be better able to respond quickly to new technologies and provide more robust support offerings. In addition, certain independent enterprise software support organizations may have or may develop more cooperative relationships with enterprise software vendors, which may allow them to compete more effectively over the long term. Enterprise software vendors may also offer support services at reduced or no additional cost to their customers. In addition, enterprise software vendors may take other actions in an attempt to maintain their support service business, including changing the terms of their customer agreements, the functionality of their products or services, or their pricing terms. For example, Oracle recently prohibited us from accessing its support websites to download software updates on behalf of our clients who are authorized to do so and permitted to authorize a third party to do so on their behalf. In addition, various support policies of Oracle and SAP may include clauses that could penalize customers that choose to use independent enterprise software support vendors or that, following a departure from the software vendor’s support program, seek to return to the software vendor to purchase new licenses or services. To the extent any of our competitors have existing relationships with potential clients for enterprise software products and support services, those potential clients may be unwilling to purchase our services because of those existing relationships. If we are unable to compete with such companies, the demand for our services could be substantially impacted.

Our recent rapid growth may not be indicative of our future growth and if we continue to grow rapidly, we may not be able to manage our growth effectively.

Our net revenue grew from $34.7 million for the three months ended March 31, 2016 to $49.1 million for the three months ended March 31, 2017, representing a period-over-period increase of 42%. We expect that, in the future,

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as our revenue increases to higher levels, our revenue growth rate may decline. You should not consider our recent growth as indicative of our future performance. We believe growth of our revenue depends on a number of factors, including our ability to:

price our products and services effectively so that we are able to attract and retain clients without compromising our profitability;
attract new clients, increase our existing clients’ use of our products and services and provide our clients with excellent service experience;
introduce our products and services to new geographic markets;
introduce new enterprise software products and services supporting additional enterprise software vendors, products and releases;
satisfactorily conclude the Oracle litigation; and
increase awareness of our company, products and services on a global basis.

We may not successfully accomplish all or any of these objectives. We plan to continue our investment in future growth. We expect to continue to expend substantial financial and other resources on, among others:

sales and marketing efforts;
training to optimize our opportunities to overcome litigation risk concerns of our clients;
expanding in new geographical areas;
growing our product and service offerings and related capabilities;
adding additional product and service offerings; and
general administration, including legal and accounting expenses related to being a public company.

In addition, our historical rapid growth has placed and may continue to place significant demands on our management and our operational and financial resources. Our organizational structure is becoming more complex as we add additional staff, and we will need to improve our operational, financial and management controls, as well as our reporting systems and procedures. We will require significant capital expenditures and the allocation of valuable management resources to grow and change in these areas without undermining our corporate culture of rapid innovation, teamwork and attention to client service that has been central to our growth so far.

Our failure to raise additional capital or generate the significant capital necessary to fund and expand our operations, invest in new services and products, and service our debt could reduce our ability to compete and could harm our business.

We will need to raise additional capital and we may not be able to obtain additional debt or equity financing on favorable terms, if at all. If we raise additional equity financing, our stockholders may experience significant dilution of their ownership interests and the per share value of our common stock could decline. If we engage in debt financings, the holders of the debt securities would have priority over the holders of our common stock. We may also be required to accept terms that further restrict our ability to incur additional indebtedness, take other actions that would otherwise not be in the best interests of our stockholders, or force us to maintain specified liquidity or other ratios, any of which could harm our business, results of operations and financial condition. If we cannot raise additional capital on acceptable terms, we may not be able to, among other things:

maintain our operations;
develop or enhance our products and services;
continue to expand our sales and marketing and research and development organizations;
acquire complementary technologies, products or businesses;
expand operations, in the United States or globally;
hire, train and retain employees; or
respond to competitive pressures or unanticipated working capital requirements.

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Our failure to do any of these things could seriously harm our business, financial condition and results of operations.

Our business may suffer if it is alleged or determined that our technology infringes the intellectual property rights of others.

The software industry is characterized by the existence of a large number of patents, copyrights, trademarks, trade secrets and other intellectual and proprietary rights. Companies in the software industry are often required to defend against claims and litigation alleging infringement or other violations of intellectual property rights. Many of our competitors and other industry participants have been issued patents and/or have filed patent applications and may assert patent or other intellectual property rights within the industry. From time to time, we may receive threatening letters or notices alleging infringement or may be the subject of claims that our services and underlying technology infringe or violate the intellectual property rights of others.

For example, as described further under “ Information About Rimini Street—Legal Proceedings ”, we are in litigation with Oracle relating in part to copyright infringement claims. Please refer to “ We and our Chief Executive Officer are involved in litigation with Oracle. An adverse outcome in the ongoing litigation could result in the payment of substantial damages and/or an injunction against certain of our business practices, either of which could have a material adverse effect on our business, financial condition and results of operations ” above for additional information regarding the Rimini I and Rimini II cases.

We rely on our management team and other key employees, including our Chief Executive Officer, and the loss of one or more key employees could harm our business.

Our success and future growth depend upon the continued services of our management team, including Seth Ravin, our Chief Executive Officer, and other key employees. Since 2008, Mr. Ravin has been under the regular care of a physician for kidney disease, which includes ongoing treatment. During this time, Mr. Ravin has continuously performed all of his duties as Chief Executive Officer of our company on a full-time basis. Although Mr. Ravin’s condition has not had any impact on his performance in his role as Chief Executive Officer or on the overall management of the company, we can provide no assurance that his condition will not affect his ability to perform the role of Chief Executive Officer in the future. In addition, from time to time, there may be changes in our management team resulting from the hiring or departure of executives, which could disrupt our business. We may terminate any employee’s employment at any time, with or without cause, and any employee may resign at any time, with or without cause. We do not maintain key man life insurance on any of our employees. The loss of one or more of our key employees could harm our business.

The failure to attract and retain additional qualified personnel could prevent us from executing our business strategy.

To execute our business strategy, we must attract and retain highly qualified personnel. We have from time to time experienced, and we expect to continue to experience, difficulty in hiring and retaining highly skilled employees with appropriate qualifications. In particular, we have experienced a more competitive hiring environment in the San Francisco Bay Area, where we have a significant base of operations. Many of the companies with which we compete for experienced personnel have greater resources than we do. In addition, in making employment decisions, job candidates often consider the value of the stock options or other equity incentives they are to receive in connection with their employment. If the price of our stock declines or experiences significant volatility, our ability to attract or retain qualified employees will be adversely affected. In addition, as we continue to expand into new geographic markets, there can be no assurance that we will be able to attract and retain the required management, sales, marketing and support services personnel to profitably grow our business. If we fail to attract new personnel or fail to retain and motivate our current personnel, our growth prospects could be severely harmed.

Because we recognize revenue from subscriptions over the term of the relevant contract, downturns or upturns in sales are not immediately reflected in full in our results of operations.

As a subscription-based business, we recognize revenue over the service period of our contracts. As a result, much of the revenue we report each quarter results from contracts entered into during previous quarters. Consequently, a shortfall in demand for our products and services or a decline in new or renewed contracts in any one quarter may not significantly reduce our revenue for that quarter but could negatively affect our revenue in future quarters. Accordingly, the effect of significant downturns in new sales, renewals or extensions of our service

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agreements will not be reflected in full in our results of operations until future periods. Our revenue recognition model also makes it difficult for us to rapidly increase our revenue through additional sales in any period, as revenue from new clients must be recognized over the applicable service term of the contracts.

Failure to effectively develop and expand our marketing and sales capabilities could harm our ability to increase our client base and achieve broader market acceptance of our products and services.

Our ability to increase our client base and achieve broader market acceptance of our products and services will depend to a significant extent on our ability to expand our marketing and sales operations. We plan to continue expanding our sales force globally. These efforts will require us to invest significant financial and other resources. Moreover, our sales personnel typically take an average of nine months before any new sales personnel can operate at the capacity typically expected of experienced sales personnel. This ramp cycle, combined with our typical six- to twelve-month sales cycle for engaged prospects, means that we will not immediately recognize a return on this investment in our sales department. In addition, the cost to acquire clients is high due to the cost of these marketing and sales efforts. Our business may be materially harmed if our efforts do not generate a correspondingly significant increase in revenue. We may not achieve anticipated revenue growth from expanding our sales force if we are unable to hire, develop and retain talented sales personnel, if our new sales personnel are unable to achieve desired productivity levels in a reasonable period of time or if our sales and marketing programs are not effective.

Interruptions to or degraded performance of our service could result in client dissatisfaction, damage to our reputation, loss of clients, limited growth and reduction in revenue.

Our software support agreements with our clients generally guarantee a 15-minute response time with respect to certain high-priority issues. To the extent that we do not meet the 15-minute guarantee, our clients may in some instances be entitled to liquidated damages, service credits or refunds. To date, no such payments have been made.

We also deliver tax, legal and regulatory updates to our clients and generally have done so faster than our competitors. If there are inaccuracies in these updates, or if we are not able to deliver them on a timely basis to our clients, our reputation may be damaged and we could face claims for compensation from our clients, lose clients, or both.

Any interruptions or delays in our service, whether as a result of third party error, our own error, natural disasters, security breaches or a result of any other issues, whether accidental or willful, could harm our relationships with clients and cause our revenue to decrease and our expenses to increase. Also, in the event of damage or interruption, our insurance policies may not adequately compensate us for any losses that we may incur. These factors, in turn, could further reduce our revenue, subject us to liability, cause us to pay liquidated damages, issue credits or cause clients not to renew their agreements with us, any of which could materially adversely affect our business.

We may experience quarterly fluctuations in our results of operations due to a number of factors, including the sales cycles for our products and services, which makes our future results difficult to predict and could cause our results of operations to fall below expectations or our guidance.

Our quarterly results of operations have fluctuated in the past and are expected to fluctuate in the future due to a variety of factors, many of which are outside of our control. Accordingly, the results of any one quarter should not be relied upon as an indication of future performance. Historically, our sales cycle has been tied to the renewal dates for our clients’ existing and prior vendor support agreements for the products that we support. Because our clients make support vendor selection decisions in conjunction with the renewal of their existing support agreements with Oracle and SAP, among other enterprise software vendors, we have experienced an increase in business activity during the periods in which those agreements are up for renewal. Because we have introduced and intend to continue to introduce products and services for additional software products that do not follow the same renewal timeline or pattern, our past results may not be indicative of our future performance, and comparing our results of operations on a period-to-period basis may not be meaningful. Also, if we are unable to engage a potential client before its renewal date for software support services in a particular year, it will likely be at least another year before we would have the opportunity to engage that potential client again, given that such potential client would most likely have to had to renew or extend its existing support agreement for at least an additional year’s worth of service with its existing

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support provider. Furthermore, our existing clients generally renew their agreements with us at or near the end of each calendar year, so we have also experienced and expect to continue to experience heavier renewal rates in the fourth quarter. In addition to the other risks described in this joint proxy statement/prospectus, factors that may affect our quarterly results of operations include the following:

changes in spending on enterprise software products and services by our current or prospective clients;
pricing of our products and services so that we are able to attract and retain clients;
acquisition of new clients and increases of our existing clients’ use of our products and services;
client renewal rates and the amounts for which agreements are renewed;
budgeting cycles of our clients;
changes in the competitive dynamics of our market, including consolidation among competitors or clients;
the amount and timing of payment for operating expenses, particularly sales and marketing expenses and employee benefit expenses;
the amount and timing of non-cash expenses, including stock-based compensation, goodwill impairments and other non-cash charges;
the amount and timing of costs associated with recruiting, training and integrating new employees;
the amount and timing of cash collections from our clients;
unforeseen costs and expenses related to the expansion of our business, operations and infrastructure;
the amount and timing of our legal costs, particularly related to our litigation with Oracle;
changes in the levels of our capital expenditures;
foreign currency exchange rate fluctuations; and
general economic and political conditions in global markets.

We may not be able to accurately forecast the amount and mix of future product and service subscriptions, revenue and expenses, and as a result, our results of operations may fall below our estimates or the expectations of securities analysts and investors. If our revenue or results of operations fall below the expectations of investors or securities analysts, or below any guidance we may provide, the price of our common stock could decline.

We may be subject to additional obligations to collect and remit sales tax and other taxes, and we may be subject to tax liability, interest and/or penalties for past sales, which could adversely harm our business.

State, local and foreign jurisdictions have differing rules and regulations governing sales, use, value-added and other taxes, and these rules and regulations can be complex and are subject to varying interpretations that may change over time. In particular, the applicability of such taxes to our products and services in various jurisdictions is unclear. Further, these jurisdictions’ rules regarding tax nexus are complex and can vary significantly. As a result, we could face the possibility of tax assessments and audits, and our liability for these taxes and associated interest and penalties could exceed our original estimates. A successful assertion that we should be collecting additional sales, use, value-added or other taxes in those jurisdictions where we have not historically done so and in which we do not accrue for such taxes could result in substantial tax liabilities and related penalties for past sales, discourage clients from purchasing our products and services or otherwise harm our business and results of operations.

We may need to change our pricing models to compete successfully.

We currently offer our customers support services for a fee that is equal to a percentage of the annual fees charged by the enterprise software vendor, so changes in such vendors’ fee structures would impact the fees we would receive from our customers. If the enterprise software vendors offer deep discounts on certain services or lower prices generally, we may need to change our pricing models or suffer adverse effect on our results of operations. In addition, we have recently begun to offer new products and services and do not have substantial experience with pricing such products and services, so we may need to change our pricing models for these new products and services over time to ensure that we remain competitive and realize a return on our investment in developing these new products and services. If we do not adapt our pricing models as necessary or appropriate, our revenue could decrease and adversely affect our results of operations.

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We may not be able to scale our business systems quickly enough to meet our clients’ growing needs, and if we are not able to grow efficiently, our results of operations could be harmed.

As enterprise software products become more advanced and complex, we will need to devote additional resources to innovating, improving and expanding our offerings to provide relevant products and services to our clients using these more advanced and complex products. In addition, we will need to appropriately scale our internal business systems and our global operations and client engagement teams to serve our growing client base, particularly as our client demographics expand over time. Any failure of or delay in these efforts could adversely affect the quality or success of our services and negatively impact client satisfaction, resulting in potential decreased sales to new clients and possibly lower renewal rates by existing clients.

Even if we are able to upgrade our systems and expand our services organizations, any such expansion may be expensive and complex, requiring financial investments, management time and attention. For example, in 2012, we began transitioning to only client-hosted environments for improved scalability, among other reasons, and in February 2014, we announced a plan to migrate all clients using a Rimini-hosted environment to a client-hosted environment. Client reimbursement obligations related to the client environment migration project of approximately $1.2 million were recorded as accrued liabilities with a corresponding reduction in deferred revenue during the three months ended March 31, 2014. Approximately $0.94 million, $0.24 million and $0.03 million were recorded during the years ended December 31, 2014, 2015 and 2016, respectively as reductions in revenue ratably over the applicable service periods. All of the client reimbursements of $1.2 million have been paid out as of November 30, 2016. Additionally, approximately $1.1 million was recorded as cost of revenue for the three months ended March 31, 2014, and an additional $2.2 million was recorded as cost of revenue in the remainder of the year ended December 31, 2014.

We could also face inefficiencies or operational failures as a result of our efforts to scale our infrastructure. There can be no assurance that the expansion and improvements to our infrastructure and systems will be fully or effectively implemented within budgets or on a timely basis, if at all. Any failure to efficiently scale our business could result in reduced revenue and adversely impact our operating margins and results of operations.

We have experienced significant growth resulting in changes to our organization and structure, which if not effectively managed, could have a negative impact on our business.

Our headcount and operations have grown substantially in recent years. We increased the number of full-time employees from 696 as of March 31, 2016 to 866 as of March 31, 2017. We believe that our corporate culture has been a critical component of our success. We have invested substantial time and resources in building our team and nurturing our culture. As we expand our business and operate as a public company, we may find it difficult to maintain our corporate culture while managing our employee growth. Any failure to manage our anticipated growth and related organizational changes in a manner that preserves our culture could negatively impact future growth and achievement of our business objectives.

In addition, our organizational structure has become more complex as a result of our significant growth. We have added employees and may need to continue to scale and adapt our operational, financial and management controls, as well as our reporting systems and procedures. The expansion of our systems and infrastructure may require us to commit additional financial, operational and management resources before our revenue increases and without any assurances that our revenue will increase. If we fail to successfully manage our growth, we likely will be unable to successfully execute our business strategy, which could have a negative impact on our business, financial condition and results of operations.

Because our long-term growth strategy involves further expansion of our sales to clients outside the United States, our business will be susceptible to risks associated with global operations.

A significant component of our growth strategy involves the further expansion of our operations and client base outside the United States. We currently have subsidiaries and operations outside of North America in Australia, Brazil, China, France, Germany, India, Israel, Japan, Korea, Singapore, Sweden and the United Kingdom, which focus primarily on selling our services in those regions.

In the future, we may expand to other locations outside of the United States. Our current global operations and future initiatives will involve a variety of risks, including:

changes in a specific country’s or region’s political or economic conditions;
changes in regulatory requirements, taxes or trade laws;

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more stringent regulations relating to data security, such as where and how data can be housed, accessed and used, and the unauthorized use of, or access to, commercial and personal information;
differing labor regulations, especially in countries and geographies where labor laws are generally more advantageous to employees as compared to the United States, including deemed hourly wage and overtime regulations in these locations;
challenges inherent in efficiently managing an increased number of employees over large geographic distances, including the need to implement appropriate systems, policies, benefits and compliance programs as well as hire and retain local management, sales, marketing and support personnel;
difficulties in managing a business in new markets with diverse cultures, languages, customs, legal systems, alternative dispute systems and regulatory systems;
increased travel, real estate, infrastructure and legal compliance costs associated with global operations;
currency exchange rate fluctuations and the resulting effect on our revenue and expenses, and the cost and risk of entering into hedging transactions if we choose to do so in the future;
limitations on our ability to reinvest earnings from operations in one country to fund the capital needs of our operations in other countries;
laws and business practices favoring local competitors or general preferences for local vendors;
limited or insufficient intellectual property protection;
political instability or terrorist activities;
exposure to liabilities under anti-corruption and anti-money laundering laws, including the U.S. Foreign Corrupt Practices Act and similar laws and regulations in other jurisdictions; and
adverse tax burdens and foreign exchange controls that could make it difficult to repatriate earnings and cash.

Our limited experience in operating our business globally and the unique challenges of each new geography increase the risk that any potential future expansion efforts that we may undertake will not be successful. If we invest substantial time and resources to expand our global operations and are unable to do so successfully and in a timely manner, our business and results of operations will be adversely affected.

If we fail to forecast our revenue accurately, or if we fail to match our expenditures with corresponding revenue, our results of operations could be adversely affected.

Because our recent growth has resulted in the rapid expansion of our business, we do not have a long history upon which to base forecasts of future operating revenue. In addition, the variability of the sales cycle for the evaluation and implementation of our products and services, which typically has been six to twelve months once a client is engaged, may also cause us to experience a delay between increasing operating expenses for such sales efforts, and the generation of corresponding revenue. Accordingly, we may be unable to prepare accurate internal financial forecasts or replace anticipated revenue that we do not receive as a result of delays arising from these factors. As a result, our results of operations in future reporting periods may be significantly below the expectations of the public market, securities analysts or investors, which could negatively impact the price of our common stock.

Consolidation in our target sales markets is continuing at a rapid pace, which could harm our business in the event that our clients are acquired and their agreements are terminated, or not renewed or extended.

Consolidation among companies in our target sales markets has been robust in recent years, and this trend poses a risk for us. If such consolidation continues, we expect that some of the acquiring companies will terminate, renegotiate and elect not to renew our agreements with the clients they acquire, which may have an adverse effect on our business and results of operations.

If there is a widespread shift by clients or potential clients to enterprise software vendors, products and releases for which we do not provide software products or services, our business would be adversely impacted.

Our current revenue is primarily derived from the provision of support services for Oracle and SAP enterprise software products. If other enterprise software vendors, products and releases emerge to take substantial market share from current Oracle and SAP products and releases we support, and we do not provide products or services for such

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vendor, products or releases, demand for our products and services may decline or our products and services may become obsolete. Developing new products and services to address different enterprise software vendors, products and releases could take a substantial investment of time and financial resources, and we cannot guarantee that we will be successful. If fewer clients use enterprise software products for which we provide products and services, and we are not able to provide services for new vendors, products or releases, our business may be adversely impacted.

Delayed or unsuccessful investment in new technology, products, services and markets may harm our financial condition and results of operations.

We plan to continue investing resources in research and development in order to enhance our current product and service offerings, and other new offerings that will appeal to clients and potential clients. The development of new product and service offerings could divert the attention of our management and our employees from the day-to-day operations of our business, the new product and service offerings may not generate sufficient revenue to offset the increased research and development expenses, and if we are not successful in implementing the new product and service offerings, we may need to write off the value of our investment. Furthermore, if our new or modified products, services or technology do not work as intended, are not responsive to client needs or industry or regulatory changes, are not appropriately timed with market opportunity, or are not effectively brought to market, we may lose existing and prospective clients or related opportunities, in which case our financial condition and results of operations may be adversely impacted.

If our security measures are compromised or unauthorized access to customer data is otherwise obtained, our services may be perceived as not being secure, customers may curtail or cease their use of our services, our reputation may be harmed and we may incur significant liabilities. Further, we are subject to governmental and other legal obligations related to privacy, and our actual or perceived failure to comply with such obligations could harm our business.

Our services sometimes involve access to, processing, sharing, using, storage and the transmission of proprietary information and protected data of our customers. We rely on proprietary and commercially available systems, software, tools and monitoring, as well as other processes, to provide security for accessing, processing, sharing, using, storage and transmission of such information. If our security measures are compromised as a result of third party action, employee or customer error, malfeasance, stolen or fraudulently obtained log-in credentials or otherwise, our reputation could be damaged, our business and our customers may be harmed and we could incur significant liability. In particular, cyberattacks and other inter-based activity continue to increase in frequency and in magnitude generally, and these threats are being driven by a variety of sources, including nation-state sponsored espionage and hacking activities, industrial espionage, organized crime, sophisticated organizations and hacking groups and individuals. In addition, if the security measures of our customers are compromised, even without any actual compromise of our own systems, we may face negative publicity or reputational harm if our customers or anyone else incorrectly attributes the blame for such security breaches on us, our products and services, or our systems. We may also be responsible for repairing any damage caused to our customers’ systems that we supports, and we may not be able to make such repairs in a timely manner or at all. We may be unable to anticipate or prevent techniques used to obtain unauthorized access or to sabotage systems because they change frequently and generally are not detected until after an incident has occurred. As we increase our customer base and our brand becomes more widely known and recognized when we are a public company, we may become more of a target for third parties seeking to compromise our security systems or gain unauthorized access to our customers’ proprietary and protected data.

Many governments have enacted laws requiring companies to notify individuals of data security incidents involving certain types of personal data. In addition, some of our customers contractually require notification of any data security compromise. Security compromises experienced by our customers, by our competitors or by us may lead to public disclosures, which may lead to widespread negative publicity. Any security compromise in our industry, whether actual or perceived, could harm our reputation, erode customer confidence in the effectiveness of our security measures, negatively impact our ability to attract new customers, cause existing customers to elect not to renew their agreements with us, or subject us to third party lawsuits, government investigations, regulatory fines or other action or liability, all or any of which could materially and adversely affect our business, financial condition and results of operations.

We cannot assure you that any limitations of liability provisions in our contracts for a security breach would be enforceable or adequate or would otherwise protect us from any such liabilities or damages with respect to any particular claim. We also cannot be sure that our existing general liability insurance coverage and coverage for errors

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or omissions will continue to be available on acceptable terms or will be available in sufficient amounts to cover one or more claims, or that the insurer will not deny coverage as to any future claim. The successful assertion of one or more claims against us that exceed available insurance coverage, or the occurrence of changes in our insurance policies, including premium increases or the imposition of substantial deductible or co-insurance requirements, could have a material adverse effect on our business, financial condition and results of operations.

As a global company, we are subject to numerous jurisdictions worldwide regarding the accessing, processing, sharing, using, storing, transmitting, disclosure and protection of personal data, the scope of which are constantly changing, subject to differing interpretation, and may be inconsistent between countries or in conflict with other laws, legal obligations or industry standards. We generally comply with industry standards and strive to comply with all applicable laws and other legal obligations relating to privacy and data protection, but it is possible that these laws and legal obligations may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another and may conflict with industry standards or our practices. Compliance with such laws and other legal obligations may be costly and may require us to modify our business practices, which could adversely affect our business and profitability. Any failure or perceived failure by us to comply with these laws, policies or other obligations may result in governmental enforcement actions or litigation against us, potential fines and other expenses related to such governmental actions, and could cause our customers to lose trust in us, any of which could have an adverse effect on our business.

If our products and services fail due to defects or similar problems, and if we fail to correct any defect or other software problems, we could lose clients, become subject to service performance or warranty claims or incur significant costs.

Our products and services and the systems infrastructure necessary for the successful delivery of our products and services to clients are inherently complex and may contain material defects or errors. We have from time to time found defects in our products and services and may discover additional defects in the future. In particular, we have developed our own tools and processes to deliver comprehensive tax, legal and regulatory updates tailored for each client, which we endeavor to deliver to our clients in a shorter timeframe than our competitors, which may result in an increased risk of material defects or errors. We may not be able to detect and correct defects or errors before clients begin to use our products and services. Consequently, defects or errors may be discovered after our products and services are provided and used. These defects or errors could also cause inaccuracies in the data we collect and process for our clients, or even the loss, damage or inadvertent release of such confidential data. Even if we are able to implement fixes or corrections to our tax, legal and regulatory updates in a timely manner, any history of defects or inaccuracies in the data we collect for our clients, or the loss, damage or inadvertent release of such confidential data could cause our reputation to be harmed, and clients may elect not to renew, extend or expand their agreements with us and subject us to service performance credits, warranty or other claims or increased insurance costs. The costs associated with any material defects or errors in our products and services or other performance problems may be substantial and could materially adversely affect our financial condition and results of operations.

The requirements of being a public company may strain our systems and resources, divert management’s attention and be costly.

As a public company, we will be subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations of NASDAQ. The requirements of these rules and regulations will increase our legal, accounting and financial compliance costs, will make some activities more difficult, time consuming and costly and may also place undue strain on our personnel, systems and resources. The Exchange Act requires, among other things, that we file annual, quarterly and current reports with respect to our business and results of operations.

We are continuing the costly process of implementing and testing our systems to report our results as a public company, to continue to manage our growth and to implement internal controls. We will be required to implement and maintain various other control and business systems related to our equity, finance, treasury, information technology, other recordkeeping systems and other operations. As a result of this implementation and maintenance, management’s attention may be diverted from other business concerns, which could adversely affect our business. Furthermore, we supplement our internal team with third party software and system providers to support our reporting obligations to achieve effective internal controls.

To the extent we do not sufficiently manage these third parties, and they fail to provide us with adequate service, we may not effectively manage our future growth which may result in ineffective internal controls over financial

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reporting and an increased cost of compliance. The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. In addition, changing laws, regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and financial compliance costs and making some activities more time consuming. These laws, regulations and standards are subject to varying interpretations, in many cases due to their lack of specificity, and as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion of management’s time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to their application and practice, regulatory authorities may initiate legal proceedings against us, and our business may be adversely affected.

In addition, we expect these laws, rules and regulations to make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required to incur substantial costs to maintain appropriate levels of coverage. These factors could also make it more difficult for us to attract and retain qualified executive officers and members of our board of directors, particularly members to serve on our audit committee.

As a result of disclosure of information in this joint proxy statement/prospectus and in filings required of a public company, our business and financial condition will become more visible, which we believe may result in threatened or actual litigation by third parties. If such claims are successful, our business and results of operations could be adversely affected, and even if the claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary to resolve them, could divert the time and resources of our management and adversely affect our business and results of operations.

If we are not able to maintain an effective system of internal control over financial reporting, current and potential investors could lose confidence in our financial reporting, which could harm our business and have an adverse effect on our stock price. In the years ended December 31, 2014, 2015 and 2016, material weaknesses in our internal control over financial reporting were identified. While we remediated two of these material weaknesses in the year ended December 31, 2016, we cannot provide assurance that a current material weakness or additional material weaknesses or significant deficiencies will not occur in the future.

Our management will be required to conduct an annual evaluation of our internal control over financial reporting and include a report of management on our internal control in our annual reports on Form 10-K. In addition, we will be required to have our independent public accounting firm attest to and report on management’s assessment of the effectiveness of our internal control over financial reporting when we cease qualifying as an “emerging growth company” pursuant to the Jumpstart Our Business Startups Act, as amended. If we are unable to conclude that we have effective internal control over financial reporting or, if our independent auditors are unable to provide us with an attestation and an unqualified report as to the effectiveness of our internal control over financial reporting, investors could lose confidence in the reliability of our financial statements, which could result in a decrease in the value of our securities.

In connection with the audit of our consolidated financial statements for the years ended December 31, 2014, 2015 and 2016, management determined that we had several material weaknesses in our internal control over financial reporting. The material weaknesses related to the following:

inadequate controls in relation to recognition of liabilities for embedded derivatives in connection with the Credit Facility (2016);
inadequate controls in relation to revenue recognition from support service sales contracts whereby Rimini Street incorrectly accounted for multi-year, non-cancelable support service sales contracts as a single delivery arrangement and incorrectly accounting for revenue for certain non-standard contract provisions (2014, 2015 and 2016);
various sales tax control matters related to manual processes and determination of tax liabilities in certain states (2014 and 2015); and
inadequate controls for accrual of loss contingencies related to Rimini Street’s litigation with Oracle (2014 and 2015).

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We have remediated the material wearknesses discussed above for sales taxes and accrual of loss contingencies. We are in the process of remediating material weaknesses for embedded derivatives and revenue recognition and cannot provide assurance that these steps will be adequate to prevent future recurrences, other material weaknesses or restatements of our financial statements in the future.

Economic uncertainties or downturns in the general economy or the industries in which our clients operate could disproportionately affect the demand for our products and services and negatively impact our results of operations.

General worldwide economic conditions have experienced significant fluctuations in recent years, and market volatility and uncertainty remain widespread. As a result, we and our clients find it extremely difficult to accurately forecast and plan future business activities. In addition, these conditions could cause our clients or prospective clients to reduce their IT budgets, which could decrease corporate spending on our products and services, resulting in delayed and lengthened sales cycles, a decrease in new client acquisition and loss of clients. Furthermore, during challenging economic times, our clients may face issues with their cash flows and in gaining timely access to sufficient credit or obtaining credit on reasonable terms, which could impair their ability to make timely payments to us, impact client renewal rates and adversely affect our revenue. If such conditions occur, we may be required to increase our reserves, allowances for doubtful accounts and write-offs of accounts receivable, and our results of operations would be harmed. We cannot predict the timing, strength or duration of any economic slowdown or recovery, whether global, regional or within specific markets. If the conditions of the general economy or markets in which we operate worsen, our business could be harmed. In addition, even if the overall economy improves, the market for our products and services may not experience growth.

If we fail to enhance our brand, our ability to expand our client base will be impaired and our financial condition may suffer.

We believe that our development of the Rimini Street brand is critical to achieving widespread awareness of our products and services, and as a result, is important to attracting new clients and maintaining existing clients. We also believe that the importance of brand recognition will increase as competition in our market increases. Successful promotion of our brand will depend largely on the effectiveness of our marketing efforts and on our ability to provide reliable products and services at competitive prices, as well as the outcome of our ongoing litigation with Oracle. Brand promotion activities may not yield increased revenue, and even if they do, any increased revenue may not offset the expenses we incurred in building our brand. If we fail to successfully promote and maintain our brand, our business could be adversely impacted.

If we fail to adequately protect our proprietary rights, our competitive position could be impaired and we may lose valuable assets, experience reduced revenue and incur costly litigation to protect our rights.

Our success is dependent, in part, upon protecting our proprietary products, services, knowledge, software tools and processes. We rely on a combination of copyrights, trademarks, service marks, trade secret laws and contractual restrictions to establish and protect our proprietary rights. However, the steps we take to protect our intellectual property may be inadequate. We will not be able to protect our intellectual property if we are unable to enforce our rights or if we do not detect unauthorized use of our intellectual property. Any of our copyrights, trademarks, service marks, trade secret rights or other intellectual property rights may be challenged by others or invalidated through administrative process or litigation. Furthermore, legal standards relating to the validity, enforceability and scope of protection of intellectual property rights are uncertain. Despite our precautions, it may be possible for unauthorized third parties to copy or use information that we regard as proprietary to create products and services that compete with ours. In addition, the laws of some countries do not protect proprietary rights to the same extent as the laws of the United States. To the extent we expand our global activities, our exposure to unauthorized copying and use of our processes and software tools may increase.

We enter into confidentiality and invention assignment agreements with our employees and consultants and enter into confidentiality agreements with the parties with whom we have strategic relationships and business alliances. No assurance can be given that these agreements will be effective in controlling access to and distribution of our proprietary, intellectual property. Further, these agreements may not prevent our competitors from independently developing products and services that are substantially equivalent or superior to our products and services.

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There can be no assurance that we will receive any patent protection for our proprietary software tools and processes. Even if we were to receive patent protection, those patent rights could be invalidated at a later date. Furthermore, any such patent rights may not adequately protect our processes, our software tools or prevent others from designing around our patent claims.

In order to protect our intellectual property rights, we may be required to spend significant resources to monitor and protect these rights. Litigation may be necessary in the future to enforce our intellectual property rights and to protect our trade secrets. Litigation brought to protect and enforce our intellectual property rights could be costly, time consuming and distracting to management and could result in the impairment or loss of portions of our intellectual property. Furthermore, our efforts to enforce our intellectual property rights may be met with defenses, counterclaims and countersuits attacking the validity and enforceability of our intellectual property rights. Our inability to protect our products, processes and software tools against unauthorized copying or use, as well as any costly litigation or diversion of our management’s attention and resources, could delay further sales or the implementation of our products and services, impair the functionality of our products and services, delay introductions of new products and services, result in our substituting inferior or more costly technologies into our products and services, or injure our reputation.

We may not be able to utilize a significant portion of our net operating loss carryforwards, which could adversely affect our profitability.

We have U.S. federal and state net operating loss carryforwards due to prior period losses, which could expire unused and be unavailable to offset future income tax liabilities, which could adversely affect our profitability.

In addition, under Section 382 of the Internal Revenue Code of 1986, as amended (Code), our ability to utilize net operating loss carryforwards or other tax attributes in any taxable year may be limited if we experience an “ownership change”. A Section 382 “ownership change” generally occurs if one or more stockholders or groups of stockholders who own at least 5% of our stock increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. Similar rules may apply under state tax laws in the United States. This offering or future issuances of our stock could cause an “ownership change”. It is possible that an ownership change, or any future ownership change, could have a material effect on the use of our net operating loss carryforwards or other tax attributes, which could adversely affect our profitability.

We are a multinational organization faced with increasingly complex tax issues in many jurisdictions, and we could be obligated to pay additional taxes in various jurisdictions.

As a multinational organization, we may be subject to taxation in several jurisdictions worldwide with increasingly complex tax laws, the application of which can be uncertain. The amount of taxes we pay in these jurisdictions could increase substantially as a result of changes in the applicable tax principles, including increased tax rates, new tax laws or revised interpretations of existing tax laws and precedents, which could have a material adverse effect on our liquidity and results of operations. In addition, the authorities in these jurisdictions could review our tax returns and impose additional tax, interest and penalties, and the authorities could claim that various withholding requirements apply to us or our subsidiaries or assert that benefits of tax treaties are not available to us or our subsidiaries, any of which could have a material impact on us and the results of our operations.

Future acquisitions, strategic investments, partnerships or alliances could be difficult to identify and integrate, divert the attention of management, disrupt our business, dilute stockholder value and adversely affect our financial condition and results of operations.

While our current Credit Facility restricts our ability to make acquisitions, we may in the future seek to acquire or invest in businesses, products or technologies that we believe could complement or expand our services, enhance our technical capabilities or otherwise offer growth opportunities. The pursuit of potential acquisitions may divert the attention of management and cause us to incur various expenses in identifying, investigating and pursuing suitable acquisitions, whether or not the acquisition purchases are completed. If we acquire businesses, we may not be able to integrate successfully the acquired personnel, operations and technologies, or effectively manage the combined business following the acquisition. We may not be able to find and identify desirable acquisition targets or be successful in entering into an agreement with any particular target or obtain adequate financing to complete such acquisitions. Acquisitions could also result in dilutive issuances of equity securities or the incurrence of debt, which could adversely affect our results of operations. In addition, if an acquired business fails to meet our expectations, our business, financial condition and results of operations may be adversely affected.

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Failure to comply with laws and regulations could harm our business.

Our business is subject to regulation by various global governmental agencies, including agencies responsible for monitoring and enforcing employment and labor laws, workplace safety, environmental laws, consumer protection laws, anti-bribery laws, import/export controls, federal securities laws and tax laws and regulations. For example, transfer of certain software outside of the United States or to certain persons is regulated by export controls. In certain jurisdictions, these regulatory requirements may be more stringent than those in the United States. Noncompliance with applicable regulations or requirements could subject us to investigations, sanctions, mandatory recalls, enforcement actions, disgorgement of profits, fines, damages, civil and criminal penalties or injunctions and may result in our inability to provide certain products and services to prospective clients or clients. If any governmental sanctions are imposed, or if we do not prevail in any possible civil or criminal litigation, or if clients made claims against us for compensation, our business, financial condition and results of operations could be harmed. In addition, responding to any action will likely result in a significant diversion of management’s attention and resources and an increase in professional fees and costs. Enforcement actions and sanctions could further harm our business, financial condition and results of operations.

Catastrophic events may disrupt our business.

We rely heavily on our network infrastructure and information technology systems for our business operations. A disruption or failure of these systems in the event of online attack, earthquake, fire, terrorist attack, power loss, telecommunications failure or other catastrophic event could cause system interruptions, delays in accessing our service, reputational harm, loss of critical data or could prevent us from providing our products and services to our clients. In addition, several of our employee groups reside in areas particularly susceptible to earthquakes, such as the San Francisco Bay Area and Japan, and a major earthquake or other catastrophic event could affect our employees, who may not be able to access our systems or otherwise continue to provide our services to our clients. A catastrophic event that results in the destruction or disruption of our data centers, or our network infrastructure or information technology systems, or access to our systems, could affect our ability to conduct normal business operations and adversely affect our business, financial condition and results of operations.

Changes in financial accounting standards or practices may cause adverse, unexpected financial reporting fluctuations and affect our reported results of operations.

Generally accepted accounting principles in the United States are subject to interpretation by the Financial Accounting Standards Board (FASB), the SEC and various bodies formed to promulgate and interpret appropriate accounting principles. A change in accounting standards or practices can have a significant effect on our reported results and may even affect our reporting of transactions completed before the change is effective. New accounting pronouncements and varying interpretations of accounting pronouncements have occurred and may occur in the future. Changes to existing rules or the questioning of current practices may adversely affect our reported financial results or the way we conduct our business. Accounting for revenue from sales of subscriptions to software products and services is particularly complex, is often the subject of intense scrutiny by the SEC, and will evolve when the new standard on revenue recognition, which was issued by FASB in May 2014, is implemented. The final revenue recognition standard is currently expected to take effect for us in the year ending December 31, 2018, assuming the mergers referred to in this joint proxy statement/prospectus are not consummated, otherwise it will be effective for the year ended December 31, 2019. Management has not completed its evaluation to determine the impact and method that adoption of this standard will have on Rimini Street’s consolidated financial statements.

In addition, in February 2016, the FASB issued ASU No. 2016-02, Leases, which requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than twelve months. Under the new guidance, both finance and operating leases will be required to be recognized on the balance sheet. Additional quantitative and qualitative disclosures, including significant judgments made by the management, will also be required. The new lease guidance is expected to take effect for us in the year ending December 31, 2019, assuming the mergers referred to in this joint proxy statement/prospectus are not consummated, otherwise it will be effective for the year ended December 31, 2020. Early adoption is permitted. However, the new guidance must be adopted retrospectively to each prior reporting period presented upon initial adoption. Management has not completed its evaluation to determine the impact that adoption of this standard will have on Rimini Street’s consolidated financial statements.

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Risks Related to the Consummation of the Domestication

The domestication may result in adverse tax consequences for holders of GPIA ordinary shares.

U.S. Holders (as defined in “ U.S. Federal Income Tax Considerations” below) of GPIA ordinary shares may be subject to U.S. federal income tax as a result of the domestication. Additionally, non-U.S. Holders (as defined in “ U.S. Federal Income Tax Considerations” below) of GPIA ordinary shares may become subject to withholding tax on any dividends paid on RMNI common stock subsequent to the domestication.

A U.S. Holder who on the day of the domestication beneficially owns (actually or constructively) GPIA ordinary shares with a fair market value of $50,000 or more, but less than 10% of the total combined voting power of all classes of GPIA ordinary shares entitled to vote, generally will recognize gain (but not loss) in respect of the domestication as if such holder exchanged its GPIA ordinary shares for RMNI common stock in a taxable transaction, unless such U.S. Holder elects in accordance with applicable Treasury regulations to include in income the “all earnings and profits amount” (as defined in the Treasury Regulations) attributable to the GPIA ordinary shares held directly by such holder.

A U.S. Holder who on the day of the domestication beneficially owns (actually or constructively) 10% or more of the total combined voting power of all classes of GPIA ordinary shares entitled to vote, will generally be required to include in income as a dividend the “all earnings and profits amount” attributable to the GPIA ordinary shares held directly by such holder.

Additionally, proposed Treasury Regulations with a retroactive effective date have been promulgated under Section 1291(f) of the Code which generally require that, a U.S. person who disposes of stock of a PFIC (including for this purpose exchanging GPIA warrants for newly issued RMNI warrants in the domestication) must recognize gain equal to the excess of the fair market value of such PFIC stock over its adjusted tax basis, notwithstanding any other provision of the Code. If GPIA is considered a PFIC for U.S. federal income tax purposes, these regulations, if finalized in their current form, would generally require U.S. Holders of GPIA ordinary shares to recognize gain on the exchange of GPIA ordinary shares or warrants for RMNI common stock or warrants pursuant to the domestication unless such U.S. Holder has made certain tax elections with respect to such holder’s GPIA ordinary shares. The tax on any such gain would be imposed at the rate applicable to ordinary income and an interest charge would apply based on complex rules designed to offset the tax deferral to such holders on the undistributed earnings, if any, of GPIA. The same rule may also apply to a U.S. Holder who exchanges GPIA warrants for RMNI warrants, however a U.S. Holder cannot currently make the elections mentioned above with respect to such holder’s GPIA warrants. It is not possible to determine at this time whether, in what form, and with what effective date, final Treasury regulations under Section 1291(f) of the Code will be adopted.

Because the domestication will occur immediately prior to the redemption of GPIA ordinary shares, U.S. Holders of GPIA ordinary shares exercising redemption rights will be subject to the potential tax consequences of Section 367 of the Code as a result of the domestication.

All holders are strongly urged to consult a tax advisor for the tax consequences of the domestication to their particular situation. For a more detailed description of the U.S. federal income tax consequences associated with the domestication, see “U.S. Federal Income Tax Considerations” beginning on page 163 of this joint proxy statement/prospectus.

Upon consummation of the business combination, the rights of holders of RMNI common stock arising under the DGCL as well as RMNI’s certificate of incorporation and bylaws will differ from and may be less favorable to the rights of holders of GPIA ordinary shares arising under the Cayman Islands Companies Law as well as our current memorandum and articles of association.

Upon consummation of the business combination, the rights of holders of RMNI common stock will arise under the certificate of incorporation and bylaws of RMNI as well as the DGCL. Those new organizational documents and the DGCL contain provisions that differ in some respects from those in our current memorandum and articles of association and the Cayman Islands Companies Law and, therefore, some rights of holders of RMNI common stock could differ from the rights that holders of GPIA ordinary shares currently possess. For instance, while class actions are generally not available to shareholders under Cayman Islands Companies Law, such actions are generally available under the DGCL. This change could increase the likelihood that RMNI becomes involved in costly litigation, which could have a material adverse effect on RMNI.

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In addition, there are differences between the new organizational documents of RMNI and the current constitutional documents of GPIA. For a more detailed description of the rights of holders of RMNI common stock and how they may differ from the rights of holders of GPIA ordinary shares, please see “Comparison of Corporate Governance and Shareholder Rights” . Forms of the certificate of incorporation and the bylaws of RMNI are attached as Annexes C and D, respectively, to this joint proxy statement/ prospectus and we urge you to read them.

Risks Related to the Business Combination

Upon consummation of the business combination, up to an estimated 50,183,837 shares of RMNI common stock, such maximum representing approximately 71.5% of RMNI’s post-issuance outstanding common stock, will be issued to the stockholders of Rimini Street . This issuance of common stock will dilute the interests of our existing shareholders.

In accordance with the terms and subject to the conditions of the merger agreement and subject to certain adjustments set forth therein, the aggregate purchase price for the business combination and related transactions is $775 million, which amount will be (i) reduced by, among other things set forth in the merger agreement, the amount of the indebtedness of Rimini Street existing on the Closing Date (as defined in the merger agreement) of the first merger (including all make-whole obligations and exit or similar fees payable to any third party), (ii) increased by, among other things set forth in the merger agreement, the cash and cash equivalents held by or on behalf of Rimini Street on the Closing Date (as defined in the merger agreement) of the first merger, and (iii) reduced by the unpaid transaction fees and expenses associated with the business combination incurred by Rimini Street and its subsidiaries. The merger consideration is payable entirely in newly issued common stock of RMNI based on a per share issue price of $10.00 per share.

It is currently expected that the business combination will be consummated by August 31, 2017. The precise amount of such adjustments is to be calculated as of the Closing Date and is therefore not currently known. However, based on an illustrative Closing Date of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), GPIA estimates a downward adjustment of approximately $156.5 million. Such downward adjustment represents the net result of (i) a $175.3 million reduction in respect of the amount of the indebtedness of Rimini Street existing on the Closing Date (as defined in the merger agreement) of the first merger (including all make-whole obligations and exit or similar fees payable to any third party), (ii) a $32.4 million increase in respect of the cash and cash equivalents held by or on behalf of Rimini Street on the Closing Date (as defined in the merger agreement) of the first merger, and (iii) a $13.6 million reduction in respect of unpaid transaction fees and expenses associated with the first merger incurred by Rimini Street and its subsidiaries. Based on such estimated adjustment, upon consummation of the business combination the stockholders of Rimini Street immediately prior to consummation of the first merger will receive an aggregate of shares of RMNI common stock equating to approximately $618.5 million (based on a per share issue price of $10.00 per share). The merger consideration is subject to adjustment to appropriately reflect the effect of any stock split, reverse stock split, stock dividend, reorganization, recapitalization, reclassification, combination, exchange of shares or other like change prior to consummation of the first merger, although no such events are currently contemplated.

It is currently expected that the business combination will be consummated by August 31, 2017. The estimation of the merger consideration described above is based on Rimini Street financial data as of May 31, 2017 and will change based upon, among other things, (i) the total debt obligations of Rimini Street on the Closing Date, which fluctuate in the ordinary course of business (including as a result of scheduled payments in respect of the Credit Facility between May 31, 2017 and August 31, 2017) and (ii) the cash and cash equivalents of Rimini Street on the Closing Date, which fluctuate in the ordinary course of business, including as a result of debt amortization payments.

Therefore, assuming that 50,183,837 shares of RMNI common stock would be issued by RMNI to the former equityholders of Rimini Street in connection with the business combination, this would represent 71.5% of RMNI’s common stock following the issuance of such shares (assuming that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination and assuming that no public shareholders exercise their redemption rights).

The issuance of additional common stock:

will significantly dilute the equity interests of existing holders of GPIA securities; and
may adversely affect prevailing market prices for our units, ordinary shares and/or warrants.

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Our ability to successfully effect the business combination and to be successful thereafter will be dependent upon the efforts of key personnel of RMNI, some of whom may be from GPIA or Rimini Street and some of whom may join RMNI following the business combination. The loss of key personnel or the hiring of ineffective personnel after the business combination could negatively impact the operations and profitability of RMNI.

Although some of GPIA’s key personnel may remain with the target business in senior management or advisory positions following our business combination, we expect Rimini Street’s current management to remain in place. While we intend to recruit and hire key individuals after the business combination, we cannot assure you that we will be successful in identifying, recruiting and integrating such key personnel.

The price of RMNI common stock, warrants and units may be volatile.

Upon consummation of the business combination, the price of RMNI common stock, warrants and units may fluctuate due to a variety of factors, including:

adverse developments in our continuing litigation with Oracle;
our ability to effectively service our outstanding debt obligations;
the announcement of new products or product enhancements by us or our competitors;
developments concerning intellectual property rights;
changes in legal, regulatory and enforcement frameworks impacting our products;
variations in our and our competitors’ results of operations;
the addition or departure of key personnel;
announcements by us or our competitors of acquisitions, investments or strategic alliances;
actual or anticipated fluctuations in our quarterly and annual results and those of other public companies in Rimini Street’s industry;
the failure of securities analysts to publish research about us, or shortfalls in our results of operations compared to levels forecast by securities analysts; and
the general state of the securities market.

These market and industry factors may materially reduce the market price of RMNI common stock, regardless of the operating performance of RMNI, including the Rimini Street business acquired in the business combination.

One of GPIA’s existing directors and an employee of GP Investments will become directors of RMNI upon consummation of the business combination. Such directors may agree to service agreements with RMNI. These agreements may provide for them to receive compensation following consummation of the business combination with Rimini Street and as a result, may cause them to have conflicts of interest in determining whether the business combination with Rimini Street is the most advantageous.

One of GPIA’s existing directors and an employee of GP Investments will become directors of RMNI upon consummation of the business combination. Such directors may agree to service agreements with RMNI which may provide for them to receive compensation following consummation of the business combination with Rimini Street. Therefore, the personal and financial interests of such persons may have influenced their motivation in identifying and selecting Rimini Street as a target business.

Following consummation of the business combination, 6.1% of the RMNI common stock will be held by the Sponsor and 59.8 % will be held by the Lock-up Stockholders (in each case on the assumptions set forth in the paragraph below). Future resales of RMNI common stock held by these significant stockholders may cause the market price of the RMNI common stock to drop significantly.

Assuming that (i) the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination, (ii) RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and (iii) no public shareholders exercise their redemption rights, immediately following consummation of the business combination, 6.1% of the RMNI common stock will be held by the Sponsor, 59.8% of the outstanding RMNI common stock will be held by the Lock-up Stockholders and 26.5% of the RMNI common stock will be held by Rimini Street’s directors and officers.

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Assuming that (i) RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement, (ii) that the Sponsor subscribes for 3,500,000 GPIA ordinary shares pursuant to its equity commitment at or prior to the consummation of the business combination and (iii) that holders of 14,205,056 GPIA ordinary shares (or 90.5% of the outstanding public shares) (being our estimate of the maximum number of GPIA public shares that could be redeemed in order for GPIA to have $50,000,000 of available cash upon consummation of the first merger, after taking into account the Sponsor’s maximum equity commitment of $35,000,000) elect to redeem their ordinary shares in connection with the business combination, immediately following consummation of the business combination, 13.0% of the RMNI common stock will be held by the Sponsor, 70.6% of the outstanding RMNI common stock will be held by the Lock-up Stockholders and 31.3% of the RMNI common stock will be held by Rimini Street’s directors and officers.

The Lock-up Stockholders have agreed in the lock-up letter not to transfer or otherwise dispose of any shares of RMNI common stock that they receive upon consummation of the business combination for a period of twelve months from the consummation of the business combination, subject to certain exceptions (including an exception related to when, following the six month anniversary of the consummation of the business combination, the 20 trading day volume weighted average price of RMNI common stock exceeds a specified price per share). See “GPIA Business Combination Proposal—Related Agreements— Lock-Up Letter ”.

In addition, the ordinary shares held by the initial shareholders are held in an escrow account maintained in New York, New York by Continental Stock Transfer & Trust Company, acting as escrow agent. Subject to certain limited exceptions, these shares will not be transferred, assigned or sold until released from escrow on the date that is one year after the date of the consummation of our initial business combination or earlier if, subsequent to our business combination, (i) the last sale price of our ordinary shares equals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing at least 150 days after our initial business combination or (ii) we consummate a subsequent liquidation, merger, share exchange or other similar transaction which results in all of our shareholders having the right to exchange their ordinary shares for cash, securities or other property.

If any significant stockholder sells large amounts of RMNI common stock in the open market or in privately negotiated transactions, this could have the effect of increasing the volatility in the price of RMNI common stock or putting significant downward pressure on the price of RMNI common stock.

We currently intend to only complete one business combination with the proceeds of our initial public offering and the sale of the private placement warrants, which will cause us to be solely dependent on Rimini Street’s business, which is focused on a specific industry sector. This lack of diversification may negatively impact our operations and profitability.

The net proceeds from the offering and the sale of the private placement of warrants provided us with $172.5 million that we may use to complete our business combination (including an aggregate of $6,037,500 of deferred underwriting commissions and other fees being held in the trust account). As of March 31, 2017, there was cash and marketable securities held in the trust account of $173,227,105 and, as of May 25, 2017 (after giving effect to the redemptions of public shares redeemed in connection with the Extension), there was cash and marketable securities held in the trust account of $157,791,185.

We currently intend to only complete one business combination with the proceeds of our initial public offering and the sale of the private placement warrants. By completing our initial business combination with only a single entity, our lack of diversification may result in numerous economic, competitive and regulatory consequences to us. Further, we would not be able to diversify our operations or benefit from the possible spreading of risks or offsetting of losses, unlike other entities, which may have the resources to complete several business combinations in different industries or different areas of a single industry. Accordingly, the prospects for our success will be solely dependent upon the business and financial performance of Rimini Street. This lack of diversification may have a substantial adverse impact upon our operations and profitability.

If a GPIA public shareholder fails to receive notice of our offer to redeem RMNI public shares in connection with the business combination, or fails to comply with the procedures for tendering its shares, such shares may not be redeemed.

We will comply with the proxy rules when conducting redemptions of our shares in connection with the business combination. Despite our compliance with these rules, if a GPIA public shareholder fails to receive our proxy materials, such public shareholder may not become aware of the opportunity to redeem the RMNI public shares that

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it will hold upon the domestication. In addition, the proxy materials, including this joint proxy statement/prospectus that we will furnish to holders of our public shares in connection with the proposed business combination will describe the various procedures that must be complied with in order to validly redeem public shares. For example, we require our public shareholders seeking to exercise their redemption rights, whether they are record holders or hold their shares in “street name”, to deliver their ordinary shares to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, physically or electronically through Depository Trust Company prior to the vote on the business combination proposal. In the event that a public shareholder fails to comply with these or any other procedures, its RMNI public shares may not be redeemed for a pro rata portion of the trust account. See Extraordinary General Meeting of Shareholders of GPIA —Redemption Rights” for the procedures to be followed if you wish to elect to redeem the RMNI public shares you will hold upon the domestication.

If you or a “group” of shareholders are deemed to hold in excess of 20% of our ordinary shares, you will lose the ability to redeem all such shares in excess of 20% of our ordinary shares.

Our memorandum and articles of association provide that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), will be restricted from seeking redemption rights with respect to more than an aggregate of 20% of the shares sold in our initial public offering, which we refer to as the “Excess Shares”. However, we would not be restricting our shareholders’ ability to vote all of their shares (including Excess Shares) for or against our initial business combination. Your inability to redeem the Excess Shares will reduce your influence over our ability to complete our business combination and you could suffer a material loss on your investment in us if you sell Excess Shares in open market transactions. Additionally, you will not receive redemption distributions with respect to the Excess Shares if we complete our business combination. As a result, you will continue to hold that number of shares exceeding 20% and, in order to dispose of such shares, would be required to sell your shares in open market transactions, potentially at a loss.

In order to determine whether a shareholder is acting in concert or as a group with another shareholder, GPIA will require each public shareholder seeking to exercise redemption rights to certify to GPIA whether such shareholder is acting in concert or as a group with any other shareholder. Such certifications, together with other public information relating to stock ownership available to GPIA at that time, such as Section 13D, Section 13G and Section 16 filings under the Exchange Act, will be the sole basis on which GPIA makes the above-referenced determination. Notwithstanding the foregoing, shareholders may challenge GPIA’s determination as to whether a shareholder is acting in concert or as a group with another shareholder in a court of competent jurisdiction.

NASDAQ may not list RMNI’s securities on its exchange, which could limit investors’ ability to make transactions in RMNI’s securities and subject RMNI to additional trading restrictions.

In connection with the business combination, in order to continue to maintain the listing of our securities on NASDAQ, we will be required to demonstrate compliance with NASDAQ’s initial listing requirements, which are more rigorous than NASDAQ’s continued listing requirements. We will apply to have RMNI’s securities listed on NASDAQ upon consummation of the business consummation. RMNI will be required to meet the initial listing requirements to be listed. We cannot assure you that we will be able to meet all initial listing requirements. Even if RMNI’s securities are listed on NASDAQ, RMNI may be unable to maintain the listing of its securities in the future.

If RMNI fails to meet the initial listing requirements and NASDAQ does not list its securities on its exchange, Rimini Street would not be required to consummate the first merger. In the event that Rimini Street elected to waive this condition, and the first merger was consummated without RMNI’s securities being listed on NASDAQ or on another national securities exchange, RMNI could face significant material adverse consequences, including:

a limited availability of market quotations for RMNI’s securities;
reduced liquidity for RMNI’s securities;
a determination that RMNI’s shares of common stock are a “penny stock” which will require brokers trading in RMNI’s ordinary shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for RMNI’s securities;
a limited amount of news and analyst coverage; and
a decreased ability to issue additional securities or obtain additional financing in the future.

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The National Securities Markets Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities, which are referred to as “covered securities”. If RMNI’s securities were not listed on NASDAQ, such securities would not be covered securities and we would be subject to regulation in each state in which we offer our securities because states are not preempted from regulating the sale of securities that are not covered securities.

Neither the board of directors nor the special transaction committee obtained a third party valuation in determining whether or not to pursue the business combination.

Neither the board of directors nor the special transaction committee is required to obtain an opinion from an independent investment banking or accounting firm that the price we are paying for Rimini Street is fair to our company from a financial point of view. Neither the board of directors nor the special transaction committee obtained a third party valuation in connection with the business combination. In analyzing the business combination our board of directors and management conducted due diligence on Rimini Street and researched the industry in which Rimini Street operates. The board of directors reviewed comparisons of selected financial data of Rimini Street with its peers in the industry and unlevered free cash flow analysis and concluded that the business combination was in the best interest of its shareholders. Accordingly, investors will be relying solely on the judgment of our board of directors and management in valuing Rimini Street, and our board of directors and management may not have properly valued such business. The lack of a third party valuation may also lead an increased number of shareholders to vote against the business combination or demand redemption of their shares, which could potentially impact our ability to consummate the business combination.

Since the Sponsor, as well as our executive officers and directors have interests which may differ from, or be in addition to (and which may conflict with), the interests of our shareholders, a conflict of interest may have existed in determining whether the business combination with Rimini Street is appropriate as our initial business combination. Such interests include that the Sponsor and our directors will lose their entire investment in us if our business combination is not completed.

The Sponsor and our directors will lose their entire investment in us if our business combination is not completed. Therefore, a conflict of interest may have existed in determining whether the business combination with Rimini Street is appropriate as our initial business combination.

On March 2, 2015, the Sponsor purchased an aggregate of 4,312,500 founder shares for an aggregate purchase price of $25,000, or approximately $0.006 per share. The number of founder shares issued was determined based on the expectation that such founder shares would represent 20% of the outstanding shares after our initial public offering. Prior to the closing of our initial public offering, the Sponsor transferred 20,000 founder shares to each of the independent directors at the time of the consummation of our initial public offering at their original purchase price. The founder shares will be worthless if we do not complete an initial business combination. In addition, simultaneously with the consummation of our initial public offering, the Sponsor purchased an aggregate 6,062,500 private placement warrants, each exercisable for one ordinary share at $11.50 per share, for a purchase price of $6,062,500, or $1.00 per warrant, which will also be worthless if we do not complete a business combination. In addition, an affiliate of the Sponsor owns 52,100 warrants that were acquired by such affiliate in the secondary market following our initial public offering, which would similarly be worthless if we do not complete a business combination. The founder shares are identical to the ordinary shares included in the units being sold in our initial public offering. However, the holders have entered into letter agreements with us, pursuant to which they have agreed (A) to vote any shares owned by them in favor of any proposed business combination and (B) not to redeem any shares in connection with a shareholder vote to approve a proposed initial business combination.

The securities of GPIA held by the Sponsor, an affiliate of the Sponsor and our independent directors had an aggregate market value of $48,803,787 on June 29, 2017, based upon the most recent closing prices of the securities on the NASDAQ. Furthermore, the Sponsor is entitled to reimbursement of out-of-pocket expenses incurred by it in connection with certain activities on GPIA’s behalf, such as identifying and investigating possible business targets and business combinations. These expenses will be repaid upon consummation of the business combination with Rimini Street. However, if GPIA fails to consummate the business combination, they will not have any claim against the trust account for reimbursement.

Accordingly, GPIA may not be able to reimburse these expenses if the business combination is not consummated. See “GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination” .

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In addition, the Sponsor and our directors and their respective affiliates have certain interests in and arising from the business combination that are different from, or in addition to (and which may conflict with), the interests of our public shareholders, which may result in a conflict of interest. One example of such a conflict is the continuation of at least two of our existing directors, Antonio Bonchristiano and Fersen Lamas Lambranho, as directors of the post-combination company.

The personal and financial interests of the Sponsor as well as our executive officers and our directors may have influenced their motivation in identifying and selecting Rimini Street as a business combination target, completing an initial business combination with Rimini Street and influencing the operation of the business following the initial business combination. In considering the recommendations of GPIA’s board of directors to vote for the proposals, its shareholders should consider these interests.

The exercise of GPIA’s directors’ and officers’ discretion in agreeing to changes or waivers in the terms of the business combination may result in a conflict of interest when determining whether such changes to the terms of the business combination or waivers of conditions are appropriate and in GPIA’s shareholders’ best interest.

In the period leading up to the closing of the business combination, events may occur that, pursuant to the merger agreement, would require GPIA to agree to amend the merger agreement, to consent to certain actions taken by Rimini Street or to waive rights that GPIA is entitled to under the merger agreement. Such events could arise because of changes in the course of Rimini Street’s business, a request by Rimini Street to undertake actions that would otherwise be prohibited by the terms of the merger agreement or the occurrence of other events that would have a material adverse effect on Rimini Street’s business and would entitle GPIA to terminate the merger agreement. In any of such circumstances, it would be at GPIA’s discretion, acting through its board of directors, to grant its consent or waive those rights. The existence of financial and personal interests of one or more of the directors described in the preceding risk factors may result in a conflict of interest on the part of such director(s) between what he or they may believe is best for GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining whether or not to take the requested action. As of the date of this joint proxy statement/prospectus, GPIA does not believe there will be any changes or waivers that GPIA’s directors and officers would be likely to make after shareholder approval of the business combination proposal has been obtained. While certain changes could be made without further shareholder approval, GPIA will circulate a new or amended joint proxy statement/prospectus and resolicit GPIA’s shareholders if changes to the terms of the transaction that would have a material impact on its shareholders are required prior to the vote on the business combination proposal.

The amendment, modification or waiver of the merger agreement in any manner that could reasonably be expected to be materially adverse to Rimini Street or the agents and lenders under the Credit Facility requires the prior written consent of the Origination Agent. There can be no assurance that GPIA, Let’s Go and Rimini Street would waive any such provision of the merger agreement, or that the agents and lenders under the Credit Facility would provide any required consents to such amendments, modifications or waivers.

Subsequent to consummation of the business combination, we may be required to subsequently take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative effect on our financial condition, results of operations and our share price, which could cause you to lose some or all of your investment.

We cannot assure you that the due diligence conducted in relation to Rimini Street has identified all material issues or risks associated with Rimini Street, its business or the industry in which it competes. Furthermore, we cannot assure you that factors outside of Rimini Street and our control will not later arise. As a result of these factors, we may incur additional costs and expenses and we may be forced to later write-down or write-off assets, restructure our operations, or incur impairment or other charges that could result in our reporting losses. Even if our due diligence has identified certain risks, unexpected risks may arise and previously known risks may materialize in a manner not consistent with our preliminary risk analysis. If any of these risks materialize, this could have a material adverse effect on our financial condition and results of operations and could contribute to negative market perceptions about our securities or RMNI. Accordingly, any shareholders of GPIA who choose to remain RMNI stockholders following the business combination could suffer a reduction in the value of their shares, warrants and units. Such shareholders are unlikely to have a remedy for such reduction in value unless they are able to successfully claim that the reduction was due to the breach by our officers or directors of a duty of care or other fiduciary duty owed to them, or if they are able to successfully bring a private claim under securities laws that the tender offer materials or proxy statement relating to the business combination contained an actionable material misstatement or material omission.

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The unaudited pro forma financial information included elsewhere in this joint proxy statement/prospectus may not be indicative of what RMNI’s actual financial position or results of operations would have been.

The unaudited pro forma financial information in this joint proxy statement/prospectus is presented for illustrative purposes only, has been prepared based on a number of assumptions and is not necessarily indicative of what RMNI’s actual financial position or results of operations would have been had the business combination been completed on the dates indicated. The unaudited pro forma condensed combined financial information does not reflect any cost savings, operating synergies or revenue enhancements that the combined companies may achieve as a result of the business combination or the costs to combine the operations of GPIA and Rimini Street or the costs necessary to achieve these cost savings, operating synergies and revenue enhancements. See “Unaudited Pro Forma Condensed Combined Financial Information” .

Reports published by analysts, including projections in those reports that differ from our actual results, could adversely affect the price and trading volume of our common shares.

Securities research analysts may establish and publish their own periodic projections for RMNI following consummation of the business combination. These projections may vary widely and may not accurately predict the results we actually achieve. Our share price may decline if our actual results do not match the projections of these securities research analysts. Similarly, if one or more of the analysts who write reports on us downgrades our stock or publishes inaccurate or unfavorable research about our business, our share price could decline. If one or more of these analysts ceases coverage of us or fails to publish reports on us regularly, our share price or trading volume could decline. While we expect research analyst coverage following consummation of the business combination, if no analysts commence coverage of us, the market price and volume for our common shares could be adversely affected.

Risks If the Adjournment Proposal Is Not Approved

If the adjournment proposal is not approved, and an insufficient number of votes have been obtained to authorize the consummation of the business combination and the domestication, GPIA’s board of directors will not have the ability to adjourn the extraordinary general meeting to a later date in order to solicit further votes, and, therefore, the business combination will not be approved, and, therefore, the business combination may not be consummated.

GPIA’s board of directors is seeking approval to adjourn the extraordinary general meeting to a later date or dates if, at the extraordinary general meeting, based upon the tabulated votes, there are insufficient votes to approve each of the condition precedent proposals. If the adjournment proposal is not approved, GPIA’s board will not have the ability to adjourn the extraordinary general meeting to a later date and, therefore, will not have more time to solicit votes to approve the condition precedent proposals. In such events, the first merger would not be completed.

Risks If the Domestication and the Business Combination are not Consummated

If we are not able to complete the business combination with Rimini Street by August 31, 2017 (or, subject to the conditions in the merger agreement pursuant to which this date may be extended by GPIA, November 17, 2017), nor able to complete another business combination by November 27, 2017, we would cease all operations except for the purpose of winding up and we would redeem our public shares and liquidate the trust account, in which case our public shareholders may only receive approximately $10.00 per share and our warrants will expire worthless.

The Sponsor, executive officers and directors have agreed that we must complete our initial first merger by November 27, 2017. If we have not completed the business combination with Rimini Street by August 31, 2017 (or, subject to the conditions in the merger agreement pursuant to which this date may be extended by GPIA, November 17, 2017), nor able to complete another business combination by November 27, 2017, we will: (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per share price, payable in cash, equal to the aggregate amount then on deposit in the trust account including interest earned on the funds held in the trust account and not previously released to us to pay taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining shareholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under the Cayman Islands Companies Law to provide for claims of creditors and the requirements of other applicable law. In such case, our public shareholders may only receive approximately $10.00 per share and our warrants will expire worthless.

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You will not have any rights or interests in funds from the trust account, except under certain limited circumstances. To liquidate your investment, therefore, you may be forced to sell your public shares or warrants, potentially at a loss.

Our public shareholders will be entitled to receive funds from the trust account only upon the earliest to occur of: (i) our completion of an initial business combination, and then only in connection with those of our ordinary shares that such shareholder properly elected to redeem, subject to the limitations described in this joint proxy statement/prospectus, (ii) a shareholder vote to amend our memorandum and articles of association to modify the substance or timing of our obligation to redeem 100% of our public shares if we do not complete our initial business combination by November 27, 2017, and then only in connection with those of our ordinary shares that such shareholder properly elected to redeem, and (iii) the redemption of our public shares if we are unable to complete an initial business combination by November 27, 2017, subject to applicable law and as further described in this joint proxy statement/prospectus. In no other circumstances will a public shareholder have any right or interest of any kind in the trust account. Accordingly, to liquidate your investment, you may be forced to sell your public shares or warrants, potentially at a loss.

If we are unable to consummate our initial business combination, our public shareholders may be forced to wait until after November 27, 2017 before redemption from the trust account.

If we are unable to consummate our initial business combination by November 27, 2017, we will distribute the aggregate amount then on deposit in the trust account (less up to $100,000 of the net interest earned thereon to pay dissolution expenses), pro rata to our public shareholders by way of redemption and cease all operations except for the purposes of winding up of our affairs, as further described in this joint proxy statement/prospectus. Any redemption of public shareholders from the trust account shall be affected automatically by function of our memorandum and articles of association prior to any voluntary winding up. If we are required to wind-up, liquidate the trust account and distribute such amount therein, pro rata, to our public shareholders, as part of any liquidation process, such winding up, liquidation and distribution must comply with the applicable provisions of the Cayman Islands Companies Law. In that case, investors may be forced to wait beyond November 27, 2017, before the redemption proceeds of the trust account become available to them, and they receive the return of their pro rata portion of the proceeds from the trust account. We have no obligation to return funds to investors prior to the date of our redemption or liquidation unless we consummate our initial business combination prior thereto and only then in cases where investors have sought to redeem their ordinary shares. Only upon our redemption or any liquidation will public shareholders be entitled to distributions if we are unable to complete our initial business combination.

If the net proceeds of our initial public offering not being held in the trust account are insufficient to allow us to operate through to November 27, 2017, and we are unable to obtain additional capital, we may be unable to complete our initial business combination, in which case our public shareholders may only receive $10.00 per share, and our warrants will expire worthless.

As of March 31, 2017, we had cash of $1,551 held outside the trust account, which is available for use by us to cover the costs associated with identifying a target business and negotiating a business combination and other general corporate uses. In addition, as of March 31, 2017, we had accounts payable and accrued expenses of $133,932. The funds available to us outside of the trust account may not be sufficient to allow us to operate for at least until November 27, 2017, assuming that our initial business combination is not completed during that time. Of the funds available to us, we could use a portion of the funds available to us to pay fees to consultants to assist us with our search for a target business. We could also use a portion of the funds as a down payment or to fund a “no-shop” provision (a provision in letters of intent designed to keep target businesses from “shopping” around for transactions with other companies on terms more favorable to such target businesses) with respect to a particular proposed business combination, although we do not have any current intention to do so. If we entered into a letter of intent where we paid for the right to receive exclusivity from a target business and were subsequently required to forfeit such funds (whether as a result of our breach or otherwise), we might not have sufficient funds to continue searching for, or conduct due diligence with respect to, a target business.

If we are required to seek additional capital, we would need to borrow funds from the Sponsor, members of our management team or other third parties to operate or may be forced to liquidate. Neither the Sponsor, members of our management team nor any of their affiliates is under any obligation to advance funds to us in such circumstances. Any such advances would be repaid only from funds held outside the trust account or from funds released to us upon completion of our initial business combination. If we are unable to obtain these loans, we may be unable to complete

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our initial business combination. If we are unable to complete our initial business combination because we do not have sufficient funds available to us, we will be forced to cease operations and liquidate the trust account. Consequently, our public shareholders may only receive approximately $10.00 per share on our redemption of our public shares, and our warrants will expire worthless.

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EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS OF GPIA

General

GPIA is furnishing this joint proxy statement/prospectus to GPIA’s shareholders as part of the solicitation of proxies by GPIA’s board of directors for use at the extraordinary general meeting of the shareholders of GPIA to be held on [•], 2017, and at any adjournment thereof. This joint proxy statement/prospectus is first being furnished to GPIA’s shareholders on or about [•], 2017 in connection with the vote on the proposals described in this joint proxy statement/prospectus. This joint proxy statement/prospectus provides GPIA’s shareholders with information they need to know to be able to vote or instruct their vote to be cast at the extraordinary general meeting.

Date, Time and Place

The extraordinary general meeting of shareholders of GPIA will be held on [•], 2017, at [•] [a.m.][p.m.], Eastern Time, at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, at 4 Times Square, New York, New York, 10036.

Purpose of the GPIA Special Meeting

At the extraordinary general meeting, GPIA is asking holders of GPIA ordinary shares to:

consider and vote upon a proposal to approve by ordinary resolution and adopt the merger agreement, as amended by the merger agreement amendment, and to approve the transactions contemplated thereby, which, among other things, provides for an integrated transaction consisting of the merger of Let’s Go with and into Rimini Street, with Rimini Street as the surviving corporation (which we refer to as the first merger), with the surviving corporation from the first merger then merging with and into GPIA, with GPIA as the surviving corporation (which we refer to as the second merger) (we refer to this proposal as the business combination proposal);
consider and vote upon a proposal to approve by special resolution, assuming the business combination proposal is approved and adopted, the change of GPIA’s jurisdiction of incorporation by deregistering as an exempted company in the Cayman Islands and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware (we refer to this proposal as the domestication proposal);
consider and vote upon the following seven separate proposals to approve by special resolution, assuming the domestication proposal is approved and adopted, the following material differences between our current memorandum and articles of association and the proposed new certificate of incorporation and bylaws of RMNI:
(1) to authorize (i) 600,000,000 additional shares of common stock of RMNI, which increases the total authorized shares of common stock to 1,000,000,000 shares of common stock and (ii) 80,000,000 additional shares of preferred stock of RMNI, which increases the total authorized shares of preferred stock to 100,000,000 (we refer to this as “organizational documents proposal A”);
(2) to authorize the board of directors of RMNI to issue any or all shares of RMNI’s preferred stock in one or more classes or series, with such terms and conditions as may be expressly determined by RMNI’s board of directors and as may be permitted by the General Corporation Law of the State of Delaware (the “DGCL”) (we refer to this as “organizational documents proposal B”);
(3) to authorize that directors of RMNI may only be removed for cause (we refer to this as “organizational documents proposal C”);
(4) to authorize that only the RMNI board of directors, chairperson of the board of directors, chief executive offer or president (in the absence of the chief executive officer) may call a meeting of stockholders (we refer to this as “organizational documents proposal D”);
(5) to authorize removal of the ability of RMNI stockholders to take action by written consent in lieu of a meeting (we refer to this as “organizational documents proposal E”);
(6) to authorize holders of sixty-six and two-thirds percent (66 2/3%) of the then outstanding RMNI capital stock as the minimum threshold required for a stockholder vote to amend RMNI’s certificate

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of incorporation (other than the articles thereof relating to the company’s name, address and registered office, purpose and matters related to the company’s common and preferred stock) and bylaws (we refer to this as “organizational documents proposal F”); and

(7) to authorize all other changes in connection with the replacement of our current memorandum and articles of association with a new certificate of incorporation and bylaws of RMNI as part of the domestication, including (i) changing the post-business combination corporate name from “GP Investments Acquisition Corp.” to “Rimini Street, Inc.” (with such change expected to be made immediately following the consummation of the second merger) and making RMNI’s corporate existence perpetual, (ii) adopting Delaware as the exclusive forum for certain stockholder litigation, and (iii) removing certain provisions related to our status as a blank check company that will no longer apply upon consummation of the business combination, all of which GPIA’s board of directors believe is necessary to adequately address the needs of RMNI after the business combination (we refer to this as “organizational documents proposal G”);
consider and vote upon a proposal to approve by ordinary resolution, assuming the organizational documents proposals are approved and adopted, for the purposes of complying with the applicable provisions of NASDAQ Listing Rule 5635, the issuance of RMNI common stock to (1) the existing stockholders of Rimini Street in connection with the business combination, and (2) the Sponsor that the Sponsor may purchase in connection with the consummation of the first merger pursuant to the Sponsor’s equity commitment, to the extent such issuance would require a shareholder vote under NASDAQ Listing Rule 5635 (we refer to this proposal as the stock issuance proposal and, collectively with the business combination proposal, the domestication proposal, and the organizational documents proposals, as the condition precedent proposals); and
consider and vote upon a proposal to approve by ordinary resolution the adjournment of the extraordinary general meeting to a later date or dates, if necessary, to permit further solicitation and vote of proxies if, based upon the tabulated vote at the time of the extraordinary general meeting, any of the condition precedent proposals would not be duly approved and adopted by our shareholders (we refer to this proposal as the adjournment proposal).

Recommendation of GPIA Board of Directors

GPIA’s board of directors has unanimously determined that the business combination proposal is in the best interests of GPIA and its shareholders; has unanimously approved the business combination proposal; unanimously recommends that shareholders vote “FOR” the business combination proposal, “FOR” the domestication proposal, “FOR” each of the separate organizational documents proposals, “FOR” the stock issuance proposal and “FOR” the adjournment proposal, in each case, if presented to the extraordinary general meeting.

The existence of financial and personal interests of one or more of GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

Record Date; Who is Entitled to Vote

GPIA has fixed the close of business on [•], 2017, as the “record date” for determining GPIA shareholders entitled to notice of and to attend and vote at the extraordinary general meeting. As of the close of business on [•], 2017, there were 20,009,776 GPIA ordinary shares outstanding and entitled to vote. Each GPIA ordinary share is entitled to one vote per share at the extraordinary general meeting.

In connection with our initial public offering, our initial shareholders (consisting of the Sponsor and our independent directors at the time of our initial public offering) entered into letter agreements to vote their founder shares, as well as any public shares purchased during or after our initial public offering, in favor of the business combination proposal. In addition, on May 16, 2017, in connection with the transactions contemplated by the merger agreement, GPIAC, LLC entered into a transaction support and voting agreement with GPIA and Rimini Street, pursuant to which, among other things, GPIAC, LLC agreed to vote its GPIA ordinary shares in favor of the transactions at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, the

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aggregate number of shares covered by the transaction support and voting agreement entered into by GPIAC, LLC represents 21.3% of the outstanding GPIA ordinary shares. In addition, our independent directors have indicated that they intend to vote their shares in favor of all other proposals being presented at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, our independent directors own 0.3% of the outstanding GPIA ordinary shares.

Quorum

The presence, in person or by proxy, of a majority of all the outstanding ordinary shares entitled to vote constitutes a quorum at the extraordinary general meeting.

Abstentions and Broker Non-Votes

Proxies that are marked “abstain” and proxies relating to “street name” shares that are returned to GPIA but marked by brokers as “not voted” will be treated as shares present for purposes of determining the presence of a quorum on all matters. They will also not be treated as shares voted on the matter. If a shareholder does not give the broker voting instructions, under applicable self-regulatory organization rules, its broker may not vote its shares on “non-routine” proposals, such as the business combination proposal, the domestication proposal and the various organizational documents proposals.

Vote Required for Approval

The approval of the business combination proposal requires an ordinary resolution, being the affirmative vote of the holders of a majority of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting.

The approval of the domestication proposal requires a special resolution under the Cayman Islands Companies Law, being the affirmative vote of the holders of at least two-thirds of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting. The domestication proposal is conditioned on the approval of the business combination proposal. Therefore, if the business combination proposal is not approved, the domestication proposal will have no effect, even if approved by holders of GPIA ordinary shares.

The approval of each of the separate organizational documents proposals requires a special resolution under the Cayman Islands Companies Law, being the affirmative vote of the holders of at least two-thirds of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Each of the organizational documents proposals is conditioned on the approval of the domestication proposal, and, therefore, also conditioned on approval of the business combination proposal. Therefore, if the business combination proposal and the domestication proposal are not approved, each of the organizational documents proposals will have no effect, even if approved by holders of GPIA ordinary shares.

The approval of the stock issuance proposal requires an ordinary resolution, being the affirmative vote of the holders of a majority of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. The stock issuance proposal is conditioned on the approval of the organizational documents proposals, and, therefore, also conditioned on approval of the domestication proposal and the business combination proposal. Therefore, if the business combination proposal, the domestication proposal and the organizational documents proposals, the stock issuance proposal will have no effect, even if approved by holders of GPIA ordinary shares.

The approval of the adjournment proposal requires an ordinary resolution, being the affirmative vote of the holders of a majority of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. The adjournment proposal is not conditioned upon any other proposal.

In each case, abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

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Voting Your Shares

Each GPIA ordinary share that you own in your name entitles you to one vote. Your proxy card shows the number of GPIA ordinary shares that you own. If your shares are held in “street name” or are in a margin or similar account, you should contact your broker to ensure that votes related to the shares you beneficially own are properly counted.

There are two ways to vote your GPIA ordinary shares at the extraordinary general meeting:

You Can Vote By Signing and Returning the Enclosed Proxy Card . If you vote by proxy card, your “proxy”, whose name is listed on the proxy card, will vote your shares as you instruct on the proxy card. If you sign and return the proxy card but do not give instructions on how to vote your shares, your shares will be voted as recommended by GPIA’s board “FOR” the business combination proposal, “FOR” the domestication proposal, “FOR” each of the separate organizational documents proposals, “FOR” the stock issuance proposal and “FOR” the adjournment proposal, in each case, if presented to the extraordinary general meeting. Votes received after a matter has been voted upon at the extraordinary general meeting will not be counted.
You Can Attend the Special Meeting and Vote in Person. You will receive a ballot when you arrive. However, if your shares are held in the name of your broker, bank or another nominee, you must get a valid legal proxy from the broker, bank or other nominee. That is the only way GPIA can be sure that the broker, bank or nominee has not already voted your shares.

Revoking Your Proxy

If you are a GPIA shareholder and you give a proxy, you may revoke it at any time before it is exercised by doing any one of the following:

you may send another proxy card with a later date;
you may notify Antonio Bonchristiano, GPIA’s Chief Executive Officer and Chief Financial Officer, in writing before the extraordinary general meeting that you have revoked your proxy; or
you may attend the extraordinary general meeting, revoke your proxy, and vote in person, as indicated above.

Who Can Answer Your Questions About Voting Your Shares

If you are a shareholder and have any questions about how to vote or direct a vote in respect of your GPIA ordinary shares, you may call Morrow Sodali LLC, our proxy solicitor, by calling (800) 662-5200, or banks and brokers can call collect at (203) 658-9400, or by emailing GPIA.info@morrowsodali.com.

Redemption Rights

Public shareholders may seek to redeem the RMNI public shares that such public shareholder will hold following the domestication, regardless of whether they vote for the proposed business combination, against the proposed business combination or do not vote in relation to the proposed business combination. Any public shareholder as of the record date who votes in favor of or against the business combination proposal may request of GPIA that RMNI redeem all or a portion of the RMNI public shares that it will hold upon the domestication for a pro rata portion of the trust account, calculated as of two business days prior to the consummation of the business combination. For illustrative purposes, as of May 25, 2017 (after giving effect to the redemptions of public shares redeemed in connection with the Extension), this would have amounted to approximately $10.05 per public share. If a holder properly seeks redemption as described in this section and the business combination is consummated, RMNI will redeem these RMNI public shares for a pro rata portion of funds deposited in the trust account and the holder will no longer own these shares following the business combination.

Notwithstanding the foregoing, a public shareholder, together with any affiliate of such holder or any other person with whom such holder is acting in concert or as a “group” (as defined in Section 13(d)(3) of the Exchange Act) will be restricted from seeking redemption rights with respect to 20% or more of the shares of the public shares. Accordingly, if a public shareholder, alone or acting in concert or as a group, seeks to redeem more than 20% of the public shares, then any such shares in excess of that 20% limit would not be redeemed for cash.

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GPIA’s initial shareholders will not have redemption rights with respect to any ordinary shares owned by them, directly or indirectly.

GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware) will be the continuing entity following the domestication, which is the entity that survives the mergers (and which will be renamed “Rimini Street, Inc.” immediately after consummation of the second merger). As a change of entity name does not involve a change in the legal form of the entity, in this joint proxy statement/prospectus, “RMNI” refers to GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), including subsequent to its change of name to Rimini Street, Inc. Holders of RMNI public shares will be entitled to receive cash for these RMNI public shares only if they comply with the following procedures:

(i) if the shareholder holds ordinary shares through units, the shareholder must elect to separate its units into the underlying public shares and public warrants prior to exercising its redemption rights with respect to the public shares;
(ii) submit a written request to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, that RMNI redeem all or a portion of such shareholder’s RMNI public shares for cash prior to the extraordinary general meeting; and
(iii) deliver the shareholder’s ordinary shares to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, physically or electronically through Depository Trust Company, or DTC.

Holders of GPIA public shares should complete the procedures for electing to redeem their GPIA public shares in the manner described above prior to 5:00 p.m. Eastern Time on [ ], 2017 (two business days before the extraordinary general meeting).

If you hold the shares in street name, you will have to coordinate with your broker to have your shares certificated or delivered electronically. RMNI public shares that have not been tendered (either physically or electronically) in accordance with these procedures will not be redeemed for cash. There is a nominal cost associated with this tendering process and the act of certificating the shares or delivering them through the DWAC system. The transfer agent will typically charge the tendering broker $80 and it would be up to the broker whether or not to pass this cost on to the redeeming shareholder. In the event the proposed business combination is not consummated this may result in an additional cost to shareholders for the return of their shares.

Holders of units must elect to separate the underlying public shares and public warrants prior to exercising redemption rights with respect to the public shares. If holders hold their units in an account at a brokerage firm or bank, holders must notify their broker or bank that they elect to separate the units into the underlying public shares and public warrants, or if a holder holds units registered in its own name, the holder must contact Continental Stock Transfer & Trust Company, GPIA’s transfer agent, directly and instruct them to do so.

Any request to redeem RMNI public shares, once made, may be withdrawn at any time until immediately prior to the vote on the proposed business combination. Furthermore, if a holder of a public share delivers its certificate in connection with an election of its redemption and subsequently decides prior to the applicable date not to elect to exercise such rights, it may simply request that GPIA instruct its transfer agent to return the certificate (physically or electronically). The holder can make such request by contacting Continental Stock Transfer & Trust Company, GPIA’s transfer agent, at the address or email address listed in this joint proxy statement/prospectus.

If the business combination is not approved or completed for any reason, then GPIA’s public shareholders who elected to exercise their redemption rights will not be entitled to redeem their shares. In such case, GPIA will promptly return any shares previously delivered by public holders.

The closing price of GPIA ordinary shares on June 29, 2017, the most recent closing price, was $9.99. For illustrative purposes, as of March 31, 2017, there was cash and marketable securities held in the trust account of $173,227,105 or $10.04 per public share outstanding on March 31, 2017. For illustrative purposes, as of May 25, 2017 (after giving effect to the redemptions of public shares redeemed in connection with the Extension), there was cash and marketable securities held in the trust account of $157,791,185 or $10.05 per public share.

Prior to exercising redemption rights, GPIA shareholders should verify the market price of GPIA ordinary shares as they may receive higher proceeds from the sale of their ordinary shares in the public market than from exercising

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their redemption rights if the market price per share is higher than the redemption price. GPIA cannot assure its shareholders that they will be able to sell their GPIA ordinary shares in the open market, even if the market price per share is higher than the redemption price stated above, as there may not be sufficient liquidity in its securities when its shareholders wish to sell their shares.

If a public shareholder exercises its redemption rights, then it will be electing to exchange its GPIA ordinary shares (that become RMNI shares upon the domestication) for cash and will no longer own RMNI public shares. The redemption takes place following the domestication and accordingly it is RMNI public shares that are redeemed immediately after consummation of the second merger. You will be entitled to receive cash for RMNI public shares only if you properly exercise your right to redeem the RMNI public shares that you will hold upon the domestication prior to the extraordinary general meeting, and deliver your ordinary shares (either physically or electronically) to Continental Stock Transfer & Trust Company, GPIA’s transfer agent prior to the extraordinary general meeting.

In order for public shareholders to exercise their redemption rights in respect of the proposed business combination, public shareholders must properly exercise their right to redeem the RMNI public shares that you will hold upon the domestication no later than the close of the vote on the business combination proposal and deliver their ordinary shares (either physically or electronically) to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, prior to the extraordinary general meeting. Holders of GPIA public shares should complete the procedures for electing to redeem their GPIA public shares in the manner described above prior to 5:00 p.m. Eastern Time on [ ], 2017 (two business days before the extraordinary general meeting).

Therefore, the election to exercise redemption rights occurs prior to the domestication and the redemption is with respect to the RMNI public shares that an electing public shareholder holds after the domestication. For the purposes of Article 48.3 of our memorandum and articles of association and the Cayman Islands Companies Law, the exercise of redemption rights shall be treated as an election to have such public shares repurchased for cash and references in this joint proxy statement/prospectus to “redemption” or “redeeming” shall be interpreted accordingly. Immediately following the domestication and the consummation of the business combination, RMNI shall satisfy the exercise of redemption rights by redeeming the RMNI public shares issued to the public shareholders that validly exercised their redemption rights.

Appraisal Rights

Neither GPIA shareholders nor GPIA warrant holders have appraisal rights in connection with the business combination or the domestication under the Cayman Islands Companies Law or under the DGCL.

Proxy Solicitation Costs

GPIA is soliciting proxies on behalf of its board of directors. This solicitation is being made by mail but also may be made by telephone or in person. GPIA and its directors, officers and employees may also solicit proxies in person, by telephone or by other electronic means. GPIA will bear the cost of the solicitation.

GPIA has hired Morrow Sodali LLC to assist in the proxy solicitation process. GPIA will pay that firm a fee of $17,500 plus disbursements. Such fee will be paid with non-trust account funds.

GPIA will ask banks, brokers and other institutions, nominees and fiduciaries to forward the proxy materials to their principals and to obtain their authority to execute proxies and voting instructions. GPIA will reimburse them for their reasonable expenses.

GPIA Initial Shareholders

As of the date of this joint proxy statement/prospectus, the Sponsor owns 4,252,500 ordinary shares, and our independent directors own an aggregate of 60,000 ordinary shares. In addition, the Sponsor owns 6,062,500 private placement warrants that were issued in a private placement that closed simultaneously with our initial public offering. Furthermore, an affiliate of the Sponsor owns 52,100 warrants that were acquired by such affiliate in the secondary market following our initial public offering.

At any time prior to the extraordinary general meeting, during a period when they are not then aware of any material nonpublic information regarding GPIA or its securities, the GPIA initial shareholders, Rimini Street or Rimini Street’s stockholders and/or their respective affiliates may purchase shares from institutional and other investors who vote, or indicate an intention to vote, against the business combination proposal, or execute agreements

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to purchase such shares from such investors in the future, or they may enter into transactions with such investors and others to provide them with incentives to acquire shares of GPIA’s ordinary shares or vote their shares in favor of the business combination proposal. The purpose of such share purchases and other transactions would be to increase the likelihood of satisfaction of the requirements that (i) holders of a majority of the shares who, being present and entitled to vote at the extraordinary general meeting and who do vote, vote in favor of the business combination proposal, the stock issuance proposal and the adjournment proposal, (ii) holders of at least two-thirds of the shares who, being present and entitled to vote at the extraordinary general meeting and who do vote, vote in favor of the domestication proposal and the organizational documents proposals, and (iii) the minimum available cash condition of $50,000,000 and the condition that the minimum trust account balance of $5,000,001 are satisfied. Any such share purchases and other transactions may thereby increase the likelihood of obtaining shareholder approval of the business combination. This may result in the completion of our first merger that may not otherwise have been possible. While the exact nature of any such incentives has not been determined as of the date of this joint proxy statement/prospectus, they might include, without limitation, arrangements to protect such investors or holders against potential loss in value of their shares, including the granting of put options and the transfer to such investors or holders of shares or rights owned by the GPIA initial shareholders for nominal value.

Entering into any such arrangements may have a depressive effect on GPIA ordinary shares. For example, as a result of these arrangements, an investor or holder may have the ability to effectively purchase shares at a price lower than market and may therefore be more likely to sell the shares he owns, either prior to or immediately after the extraordinary general meeting.

If such transactions are effected, the consequence could be to cause the business combination to be approved in circumstances where such approval could not otherwise be obtained. Purchases of shares by the persons described above would allow them to exert more influence over the approval of the proposals and would likely increase the chances that such proposals would be approved. As of the date of this joint proxy statement/prospectus, there have been no such discussions and no agreements to such effect have been entered into with any such investor or holder. GPIA will file a Current Report on Form 8-K to disclose arrangements entered into or significant purchases made by any of the aforementioned persons that would affect the vote on the proposals to be put to the extraordinary general meeting or the redemption threshold. Any such report will include descriptions of any arrangements entered into or significant purchases by any of the aforementioned persons.

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GPIA BUSINESS COMBINATION PROPOSAL

We are asking our shareholders to approve by ordinary resolution, and adopt the merger agreement, as amended by the merger agreement amendment, and the transactions contemplated thereby. GPIA shareholders should read carefully this joint proxy statement/prospectus in its entirety for more detailed information concerning the merger agreement and the merger agreement amendment, which are attached as Annex A and Annex B, respectively, to this joint proxy statement/prospectus. Except as expressly set forth in this joint proxy statement/prospectus, all references to the “merger agreement” shall refer to the merger agreement as amended by the merger agreement amendment. Please see the subsection entitled “ The Merger Agreement ” below, for additional information and a summary of certain terms of the merger agreement. You are urged to read carefully the merger agreement in its entirety before voting on this proposal.

Because we are holding a shareholder vote on the business combination, we may consummate the business combination only if it is approved by the affirmative vote of the holders of a majority of ordinary shares that are voted at the extraordinary general meeting.

The Merger Agreement

This subsection of the joint proxy statement/prospectus describes the material provisions of the merger agreement, but does not purport to describe all of the terms of the merger agreement. The following summary is qualified in its entirety by reference to the complete text of the merger agreement and the merger agreement amendment, which are attached as Annex A and Annex B, respectively, to this joint proxy statement/prospectus. You are urged to read the merger agreement in its entirety because it is the primary legal document that governs the business combination.

The merger agreement contains representations, warranties and covenants that the respective parties made to each other as of the date of the merger agreement or other specific dates. The assertions embodied in those representations, warranties and covenants were made for purposes of the contract among the respective parties and are subject to important qualifications and limitations agreed to by the parties in connection with negotiating the merger agreement. The representations, warranties and covenants in the merger agreement are also modified in part by the underlying disclosure letters, (the “disclosure letters”), which are not filed publicly and which are subject to a contractual standard of materiality different from that generally applicable to stockholders and were used for the purpose of allocating risk among the parties rather than establishing matters as facts. We do not believe that the disclosure letters contain information that is material to an investment decision.

Structure of the Business Combination

On May 16, 2017, GPIA, Let’s Go, Rimini Street and the Holder Representative entered into the merger agreement, which was amended on June 30, 2017. Pursuant to the merger agreement, among other things and in accordance with the terms and subject to the conditions of the merger agreement, and following the domestication of GPIA to Delaware, Let’s Go will merge with and into Rimini Street, with Rimini Street surviving and becoming a wholly-owned subsidiary of GPIA (which we refer to as the first merger). The surviving corporation of the first merger will then merge with and into GPIA (which we refer to as the second merger and, together with the first merger, the mergers).

Prior to and as a condition of the mergers, GPIA will change its jurisdiction of incorporation by effecting a deregistration under Article 206 of the Cayman Islands Companies Law and a domestication under Section 388 of the DGCL, pursuant to which GPIA’s jurisdiction of incorporation will be changed from the Cayman Islands to the State of Delaware. The mergers will follow the domestication.

Merger Consideration

Pursuant to the merger agreement, the aggregate purchase price is $775,000,000, as adjusted in accordance with the terms of the merger agreement (which we refer to as the merger consideration). At the closing of the business combination, GPIA will pay the merger consideration in newly issued shares of RMNI common stock based on a per share issue price of $10.00 per share.

Under the merger agreement, at the effective time of the first merger (which we refer to as the first effective time), each issued and outstanding share of Rimini Street’s Class A Common Stock, Class B Common Stock, Series A Preferred Stock on an as-converted basis, Series B Preferred Stock on an as-converted basis and Series C Preferred

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Stock on an as-converted basis (other than, in each case, such shares, if any, (i) held in the treasury of Rimini Street, which treasury shares shall be canceled as part of the mergers and (ii) shares that are held by stockholders who have perfected and not withdrawn a demand for appraisal rights) will automatically be cancelled and converted into and become the right to receive the applicable portion of the merger consideration in accordance with the merger agreement.

Each option to purchase shares of Rimini Street’s common stock granted under an incentive plan that is outstanding at the first effective time will be converted into an option relating to shares of RMNI upon the same terms and conditions as are in effect with respect to such option immediately prior to the first effective time (except that the number of shares of RMNI subject to each RMNI option, and the exercise price thereof, shall be adjusted as set forth in the merger agreement to provide the holder thereof with the same economic value as the original option relating to shares of Rimini Street’s common stock). Rimini Street will take commercially reasonable actions so that any vested option held by a former employee or former service provider to Rimini Street is exercised or cancelled prior to the first effective time and, to the extent not exercised or cancelled, such option will be converted into the right to receive a cash payment equal to the product of (a) the excess of $10 over the per share exercise price and (b) the number of shares of the Rimini Street’s common stock subject to the vested portion of such option. As of May 31, 2017, we estimate that such cash payment would be approximately $161,000. The arrangements described in this paragraph are expected to result in the issuance of RMNI options and warrants relating to 15,637,834 shares of RMNI common stock, representing approximately 15.6% of RMNI’s common stock on a fully-diluted basis immediately following consummation of the business combination (assuming (i) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants, (ii) that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination and (iii) that no public shareholders exercise their redemption rights).

We have entered into a warrant consent and conversion agreement, dated May 16, 2017, with Rimini Street and the Origination Agent. Pursuant to the warrant consent and conversion agreement, each Origination Agent warrant will be converted into a warrant relating to shares of RMNI. The warrants relating to such warrant consent and conversion agreement are expected to result in warrants relating to 3,537,412 shares of RMNI common stock being issued, representing approximately 20.5% of the total outstanding common stock of RMNI immediately following consummation of the business combination (assuming (i) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants, (ii) that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination and (iii) that no public shareholders exercise their redemption rights). See the section entitled “— Warrant Consent and Conversion Agreement ” for a further discussion of this. All other warrants to purchase shares of Rimini Street’s capital stock, which have an exercise price less than the value of merger consideration per fully diluted share, will be converted into shares of the applicable class of Rimini Street capital stock immediately prior to the first merger, in each case pursuant to a conversion agreement to be agreed with the holders of such warrants and the parties to the merger agreement.

In accordance with the terms and subject to the conditions of the merger agreement and subject to certain adjustments set forth therein, the aggregate purchase price for the business combination and related transactions is $775 million, which amount will be (i) reduced by, among other things set forth in the merger agreement, the amount of the indebtedness of Rimini Street existing not less than two business days prior to the Closing Date and in no event more than ten business days prior to the Closing Date, and (ii) increased by, among other things set forth in the merger agreement, the cash and cash equivalents held by or on behalf of Rimini Street existing not less than two business days prior to the Closing Date and in no event more than ten business days prior to the Closing Date (as adjusted in accordance with the terms of the merger agreement, the “merger consideration”) and (iii) reduced by, among other things set forth in the merger agreement, unpaid transaction expenses.

The precise amount of such adjustments is to be calculated as of the Closing Date and is therefore not currently known. However, based on an illustrative Closing Date of May 31, 2017 (being the most recent date for which Rimini

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Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), GPIA estimates a downward adjustment of approximately $156.5 million. This estimated adjustment is based on an illustrative Closing Date of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), and such downward adjustment represents the net result of (i) a $175.3 million reduction in respect of the amount of the indebtedness of Rimini Street existing on the Closing Date (as defined in the merger agreement) of the first merger (including all make-whole obligations and exit or similar fees payable to any third party), (ii) a $32.4 million increase in respect of the cash and cash equivalents held by or on behalf of Rimini Street on the Closing Date (as defined in the merger agreement) of the first merger, and (iii) a $13.6 million reduction in respect of unpaid transaction fees and expenses associated with the first merger incurred by Rimini Street and its subsidiaries.

The following table provides an illustrative calculation of the estimated merger consideration, assuming a closing as of August 31, 2017 (in millions, except for number of shares):

 
Enterprise Offer Value
$
775.0
 
Less:
Estimated Closing Date Indebtedness (1)
 
(175.3
)
Plus:
Estimated Closing Date Cash (2)
 
32.4
 
Less:
Estimated Closing Date Unpaid Transaction Expenses (3)
 
(13.6
)
Equals:
Merger Consideration
 
618.5
 
(1) Represents actual total debt obligations (including all make-whole obligations and exit or similar fees payable to any third party) as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the filing of this registration statement). Total debt obligations fluctuate in the ordinary course of business (including as a result of scheduled payments in respect of the Credit Facility between May 31, 2017 and August 31, 2017).
(2) Represents actual cash, including restricted cash, as of May 31, 2017, (being the most recent date for which Rimini Street month end balance sheet data is available prior to the filing of this registration statement). The amount of cash fluctuates in the ordinary course of business, including as a result of debt amortization payments.
(3) Represents estimate of unpaid transaction expenses assuming an estimated Closing Date of August 31, 2017.

The merger consideration is also subject to an indemnification escrow of 5,500,000 RMNI shares of common stock for a period of one year following the consummation of the business combination. These escrow shares will be deducted from the RMNI shares issuable as merger consideration to certain Rimini Street stockholders, to secure any indemnification claims by GPIA under the merger agreement. Any RMNI shares remaining in the indemnification escrow after twelve months following the consummation of the business combination (subject to any outstanding claims) will be distributed to those Rimini Street stockholders from whom the shares were withheld.

The consummation of the business combination is subject to, among other things, a closing condition requiring a minimum of $50,000,000 of available cash, which is expected to be funded from cash available in the GPIA trust account (after satisfying any shareholder redemptions, but including certain deferred underwriting commissions and other fees) and, as needed, backstop equity financing from GPIC, Ltd. (which we refer to as the Sponsor) of up to $35,000,000 as described below, and other potential third party equity financing (which we refer to as, collectively, GPIA available cash). Assuming such closing condition is satisfied (and the satisfaction or waiver of the other closing conditions described below), GPIA intends to use the GPIA available cash to fund unpaid transaction expenses incurred in connection with the business combination and the other transactions contemplated by the merger agreement, to pay down certain of Rimini Street’s indebtedness and to deposit any remaining GPIA available cash for the benefit of the combined company’s balance sheet.

Assuming consummation of the business combination as of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), immediately following the consummation of the business combination (without taking into account any GPIA ordinary shares held by Rimini Street stockholders prior to the consummation of the business combination, and assuming (i) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and that, at consummation of the business combination, there will be outstanding RMNI options and warrants held by former holders of Rimini Street options and warrants, pursuant to which up to 15,637,834 shares of RMNI common stock will be issuable in accordance with the terms of such RMNI options and warrants, (ii) that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination and (iii) that no public shareholders exercise their redemption rights), the former equityholders of Rimini Street are expected to own approximately 71.5%

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of RMNI’s common stock (or 65.5% of RMNI’s common stock on a fully-diluted basis) and GPIA’s current shareholders are expected to own approximately 28.5% of RMNI’s common stock (or 34.5% of RMNI’s common stock on a fully-diluted basis), which comprises (i) 6.2% of RMNI’s common stock (or 10.4% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s initial shareholders and (ii) 22.4% of RMNI’s common stock (or 24.2% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s public shareholders.

The Sponsor has agreed to purchase, on or on or prior to the date that the business combination is consummated, up to 3,500,000 GPIA ordinary shares for a cash purchase price of $10.00 per share in order that GPIA has $50,000,000 of available cash upon consummation of the first merger, after taking into account the Sponsor’s maximum equity commitment of $35,000,000. The subscription of up to 3,500,000 shares of RMNI common stock by the Sponsor would increase the relative percentage ownership of the Sponsor, and accordingly would increase the percentage ownership by the initial shareholders. Immediately following the consummation of the business combination (assuming (i) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement, (ii) that the Sponsor subscribes for 3,500,000 GPIA ordinary shares pursuant to its equity commitment at or prior to the consummation of the business combination and (iii) that holders of 14,205,056 GPIA ordinary shares (or 90.5% of the outstanding public shares) (being our estimate of the maximum number of GPIA public shares that could be redeemed in order for GPIA to have $50,000,000 of available cash upon consummation of the first merger, after taking into account the Sponsor’s maximum equity commitment of $35,000,000) elect to redeem their ordinary shares in connection with the business combination), the former equityholders of Rimini Street are expected to own approximately 84.4% of RMNI’s common stock (or 73.3% of RMNI’s common stock on a fully-diluted basis) and GPIA’s current shareholders are expected to own approximately 15.6% of RMNI’s common stock (or 26.7% of RMNI’s common stock on a fully-diluted basis), which comprises (i) 13.1% of RMNI’s common stock (or 15.5% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s initial shareholders and (ii) 2.5% of RMNI’s common stock (or 11.3% of RMNI’s common stock on a fully-diluted basis) expected to be owned by GPIA’s public shareholders.

GPIA may enter into equity financing or debt financing in connection with the proposed business combination from the Sponsor or its affiliates or any third parties. The purposes of any such financings may include increasing the likelihood of GPIA having a minimum of $50,000,000 of available cash upon consummation of the first merger, which is a condition to consummation of the first merger. The merger agreement provides that any equity financing be contingent upon closing of the business combination and further provides that any proposed financing be subject to the mutual agreement of GPIA and Rimini Street. Any equity issuances to the Sponsor or its affiliates would increase the relative percentage ownership of the Sponsor and, accordingly, would increase the percentage ownership of the initial shareholders. Any additional equity issuances would result in dilution of the relative ownership interest of the non-redeeming public shareholders or the former equity holders of Rimini Street. As the amount of any such equity issuances is not currently known, GPIA cannot provide exact figures as to percentage ownership that may result therefrom.

Material Adverse Effect

Under the merger agreement, certain representations and warranties of GPIA and Let’s Go are qualified in whole or in part by a material adverse effect standard for the purposes of determining whether a breach of such representations and warranties has occurred. Where referred to in this joint proxy statement/prospectus, for the purposes of the merger agreement, a “GPIA material adverse effect” means any event, state of facts, development, circumstance, occurrence or effect that has or would reasonably be expected to, individually or in the aggregate, prevent or materially impair the ability of GPIA or Let’s Go to perform its obligations under the merger agreement or to consummate the business combination.

Under the merger agreement, certain representations and warranties of Rimini Street are qualified in whole or in part by a material adverse effect standard for the purposes of determining whether a breach of such representations and warranties has occurred. Where referred to in this joint proxy statement/prospectus, for the purposes of the merger agreement, a “Rimini Street material adverse effect” means any event, state of facts, development, circumstance, occurrence or effect that (i) has had, or would reasonably be expected to have, individually or in the aggregate, a material adverse effect on the business, assets, properties, results of operations or financial condition of Rimini Street and its subsidiaries, taken as a whole or (ii) has or would reasonably be expected to, individually or in the aggregate, prevent or materially impair the ability of Rimini Street to perform its obligations under the merger agreement or to consummate the business combination; provided, however, in respect of the preceding clause (i), that

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in no event would any of the following (or the effect of any of the following), alone or in combination, be deemed to constitute, or be taken into account in determining whether there has been or will be, a Rimini Street material adverse effect on or in respect of Rimini Street and its subsidiaries: (a) any change in applicable laws or GAAP or any interpretation thereof, (b) any change in interest rates or economic, political, business or financial market conditions generally, (c) any change generally affecting any of the industries in which Rimini Street or its subsidiaries operates or the economy as a whole, including any change in commodity prices, (d) the announcement or pendency of the merger agreement or the consummation of the business combination, (e) the compliance with the terms of the merger agreement or the taking of any action required by the merger agreement, (f) any natural disaster, (g) any acts of terrorism or war or the outbreak or escalation of hostilities or change in geopolitical conditions or (h) any failure of Rimini Street to meet any projections or forecasts, provided that clause (h) shall not prevent a determination that any change or effect underlying such failure to meet projections or forecasts has resulted in a Rimini Street material adverse effect (to the extent such change or effect is not otherwise excluded from this definition of Rimini Street material adverse effect); or (i) any action taken (or omitted to be taken) at the request of GPIA; provided, further, that any event, state of facts, change, development, circumstance, occurrence or effect referred to in clauses (a), (b), (c), (f), or (g) above may be taken into account in determining if a Rimini Street material adverse effect has occurred to the extent it has a materially disproportionate and adverse effect on the business, assets, properties, results of operations or financial condition of Rimini Street and its subsidiaries, taken as a whole, relative to similarly situated companies in the industry in which Rimini Street and its subsidiaries conduct their respective operations.

Closing and Effective Time of the Business Combination

The closing of the first merger will take place on the date which is two business days after the first date on which all the conditions of the obligations of GPIA, Let’s Go and Rimini Street under the merger agreement have been satisfied or waived. The closing of the second merger will take place promptly after the first effective time.

Representations and Warranties

The merger agreement contains representations and warranties of Rimini Street, GPIA and Let’s Go, certain of which are limited by materiality and material adverse effect. See “— Material Adverse Effect ” above.

Rimini Street’s representations and warranties generally relate, among other things, to corporate organization; subsidiaries; due authorization; no conflict; governmental authorities and consents; capitalization of Rimini Street and its subsidiaries; financial statements; undisclosed liabilities; litigation and proceedings; legal compliance; contracts; no defaults; benefit plans; labor relations; employees; taxes; broker’s fees; insurance; licenses, permits and authorizations; equipment and other tangible property; real property; intellectual property; environmental matters; absence of changes; related party transactions; anti-corruption compliance; indebtedness; internal controls; information supplied; customers and suppliers; and capital expenditures.

GPIA’s and Let’s Go’s representations and warranties generally relate, among other things, to: corporate organization; due authorization; no conflict; litigation and proceedings; compliance with laws; SEC filings; internal controls; listing; financial statements; governmental authorities; consents; Sponsor backstop; the trust account; Investment Company Act; JOBS Act; absence of changes; no undisclosed liabilities; capitalization; broker’s fees; indebtedness; solvency; first-step surviving corporation after the business combination; no outside reliance; and acquisition for investment.

Covenants

Rimini Street, GPIA and Let’s Go have each agreed to certain covenants contained in the merger agreement.

Rimini Street, GPIA and Let’s Go have each agreed, among other things, to take all actions as may reasonably be necessary or as another party may reasonably request to satisfy the conditions to closing of the merger agreement and to consummate the transaction as soon as practicable. In addition, the merger agreement contains additional joint covenants relating to this joint proxy statement/prospectus, shareholder approvals of the shareholders of GPIA and Rimini Street, the escrow agreement, tax matters and financing matters.

Rimini Street has agreed to operate, and cause its subsidiaries to operate, its business in the ordinary course of and substantially in accordance with past practice. Without limiting the generality of the foregoing, Rimini Street has agreed not to, and to cause its subsidiaries not to, take the following actions, among others, except as permitted by the merger agreement or as consented by to GPIA:

materially change or amend its organizational documents;

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(i) make or declare any dividend or distribution to its stockholders or make any other distributions in respect of any of Rimini Street’s or any of its subsidiary’s capital stock, except for dividends by any of Rimini Street’s wholly-owned subsidiaries made in the ordinary course; (ii) amend any terms of any shares or series of Rimini Street’s or any of its subsidiaries capital stock; or (iii) acquire any issued and outstanding share capital or other equity interests of Rimini Street or its subsidiaries;
materially adversely modify or terminate (other than expiration in accordance with its terms, if allowing such contract to expire is in the ordinary course of business) any real property leases and material contracts of the types identified in Section 4.12 of the merger agreement;
sell, assign, transfer, convey, lease or otherwise dispose of any material assets or properties, except in the ordinary course of business;
acquire any ownership interest in any real property;
(i) take any action with respect to the grant of any severance, retention, change in control or termination or similar pay, except as required by law and any existing benefit plan or contract, (ii) make any material change in the key management structure of Rimini Street or any of its subsidiaries, including the hiring of additional officers or the termination of existing officers, (iii) terminate, enter into or materially amend any benefit plan, other than in the ordinary course of business, (iv) increase the compensation or other remuneration of any employee, officer, director or other service provider whose annual base salary does not exceed $200,000, except in the ordinary course of business, (v) establish any trust or take any other action to secure the payment of any compensation, (vi) take any action to accelerate the time of payment or vesting any compensation or benefit or (vii) amend the terms of any option or grant any severance, change in control, retention or similar payment or benefits;
acquire by merger or consolidation with, or merge or consolidate with, or purchase substantially all of the assets of, any corporation, partnership, association, joint venture or other business organization or division thereof;
make any material loans or material advances to any person, except for advances to employees or officers of Rimini Street or any of its subsidiaries for expenses incurred in the ordinary course of business;
except as required by applicable law, (i) change any tax accounting methods, (ii) make, revoke or amend any material tax election, (iii) enter into any closing agreement in respect of taxes, (iv) settle or compromise any material tax liability of Rimini Street or any of its subsidiaries, (v) make or surrender any right to claim a refund of taxes or (vi) consent to any waiver or extension of the statute of limitations applicable to any material taxes or any tax return;
incur or assume any indebtedness or guarantee any indebtedness of another person, issue or sell any debt securities or warrants or other rights to acquire any debt securities of Rimini Street or any subsidiary or guaranty any debt securities of another person, other than any indebtedness or guarantee (i) incurred in the ordinary course of business or (ii) incurred between Rimini Street and any of its wholly-owned subsidiaries or between any of such wholly-owned subsidiaries;
discharge any secured or unsecured obligation or liability (whether accrued, absolute, contingent or otherwise) which individually or in the aggregate exceed $250,000, except as otherwise contemplated by the merger agreement or such obligations become due;
issue any additional shares of common stock or securities exercisable for or convertible into common stock other than in connection with the exercise of options outstanding on the date of the merger agreement or grant any additional stock equity or equity-based compensation;
form or cause to be formed any new subsidiary of Rimini Street;
waive, release, assign, settle, compromise or otherwise resolve any material investigation, claim (excluding customer claims in the ordinary course of business that have not resulted in litigation), or other legal proceedings, except where such action involves only the payment of monetary damages in an amount less than $250,000 per individual claim or $2,000,000 in the aggregate (as well as related non-substantive

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incidental provisions and other remedies or obligations that are not material in the context of the applicable resolution) or are covered by insurance; however, under no circumstances shall Rimini Street settle or otherwise resolve legal proceedings referred to in section 4.10 of the merger agreement without prior written consent of GPIA;

grant to or acquire from, or agree to grant to or acquire from any person, intellectual property that is material to Rimini Street and its subsidiaries, other than in the ordinary course of business and consistent with past practice, or dispose of, abandon or permit to lapse any rights to any material intellectual property of Rimini Street and its subsidiaries except in the ordinary course of business consistent with past practice, and, other than in the ordinary course of business and pursuant to obligations to maintain the confidentiality thereof, disclose to any person any trade secret or any other material confidential or proprietary information, know-how or process of Rimini Street or any of its subsidiaries;
make or commit to make capital expenditures in excess of amounts as disclosed by Rimini Street to GPIA pursuant to the merger agreement;
enter into any collective bargaining agreement or similar agreement, other than as required by applicable law;
(i) limit in any material respect the right of Rimini Street or any of its subsidiaries to engage in any line of business or in any geographic area, to develop, market or sell products or services, or to compete with any person or (ii) grant any exclusive or similar rights to any person; and
pay accounts payable prior to the stated maturity (other than for a valid and legitimate business reason) or discharge any obligor from its obligations under any account receivable other than upon payment in full of all amounts payable thereunder (other than for a valid and legitimate business reason).

In addition, Rimini Street has also agreed:

subject to applicable confidentiality and privilege restrictions, that Rimini Street shall afford GPIA access its books, contracts, commitments, tax returns, records, financial and operating data, officers and employers as may be reasonably requested;
to certain covenants in relation to required antitrust filings and approvals;
not to solicit any acquisition proposals for Rimini Street or agree to enter into any acquisition transaction involving Rimini Street;
to deliver a FIRPTA certificate and form of notice to the U.S. Internal Revenue Service; and
to prepare and deliver certain financial statements to GPIA.

GPIA has agreed, among other things, to:

take certain actions in relation to antitrust notification and reporting requirements in connection with the business combination and to cooperate in good faith with antitrust authorities in connection with the business combination;
provide customary indemnities in relation to the present and former directors and officers of Rimini Street and its subsidiaries in relation to certain matters, and that Rimini Street shall obtain “tail” directors’ and officers’ liability insurance;
prior to the effectiveness of the registration statement of which this joint proxy statement/prospectus forms part, to adopt a customary employee stock purchase plan that is proposed by Rimini Street and as reasonably accepted by GPIA;
use its reasonable best efforts to obtain approval from NASDAQ for the listing of the RMNI common stock to be issued in connection with the business combination;
use the GPIA available cash at consummation of the business combination to (i) first, pay the Rimini Street’s and GPIA’s unpaid transaction expenses in connection with the mergers and the other transactions contemplated by merger agreement, (ii) thereafter to pay certain amounts under the Credit Facility (as described elsewhere in this joint proxy statement/prospectus), and (iii) thereafter, deposit any remaining GPIA available cash for the benefit of the RMNI’s balance sheet;

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not to solicit any business combination proposals for GPIA or agree to enter into any business combination other than the merger with Rimini Street; and
without limiting the generality of the foregoing, not to, and to cause its subsidiaries not to, take the following actions, among others, except as permitted by the merger agreement or as consented by to Rimini Street:
change or amend its organizational documents;
(i) make or declare any dividend or distribution to its shareholders or make any other distributions in respect of any of GPIA’s or any of its subsidiary’s capital stock, except for dividends by any of GPIA’s wholly-owned subsidiaries made in the ordinary course; (ii) amend any terms of any shares or series of GPIA’s or any of its subsidiaries capital stock; or (iii) acquire any issued and outstanding share capital or other equity interests of GPIA or its subsidiaries other than the redemption of the shares of public shareholders who elect to redeem the RMNI public shares that they will receive upon the domestication in connection with the business combination;
incur or assume any indebtedness or guarantee any indebtedness of another person, issue or sell any debt securities or warrants or other rights to acquire any debt securities of GPIA or any subsidiary or guaranty any debt securities of another person, other than any indebtedness or guarantee (i) incurred in the ordinary course of business or (ii) incurred between GPIA and any of its wholly-owned subsidiaries or between any of such wholly-owned subsidiaries;
(i) issue any securities of GPIA or any securities convertible into securities of GPIA, other than pursuant to the Sponsor equity backstop and any third party equity financing of GPIA contingent upon the Closing or (ii) grant any options, warrants or stock appreciation rights in respect of securities of GPIA; and
enter into, or become bound by, any contract except in the ordinary course of business or as reasonably necessary in connection with the transactions contemplated by the merger agreement.

Conditions to Closing of the First Merger

General Conditions

GPIA’s, Let’s Go’s and Rimini Street’s obligations to consummate the transactions contemplated by the merger agreement are conditioned upon, among other things:

the approval of GPIA’s shareholders at the extraordinary general meeting of shareholders which took place on May 23, 2017, of the proposals set forth in GPIA’s definitive proxy statement filed with the SEC on April 24, 2017 (which condition has accordingly been satisfied);
proposals to be voted on by the shareholders of GPIA at a shareholders’ meeting having been duly approved and adopted by the GPIA shareholders by the requisite vote;
proposals to be voted on by the stockholders of Rimini Street at a stockholders’ meeting having been duly approved and adopted by the stockholders of Rimini Street by the requisite vote;
the registration statement of which this joint proxy statement/prospectus forms part being declared effective and no stop order suspending the effectiveness of such registration statement being issued and no proceeding initiated or threatened by the SEC and not withdrawn;
expiration or termination of all applicable waiting periods under the HSR Act, which condition was satisfied when GPIA and Rimini Street received early termination of the waiting period under the HSR Act on June 28, 2017;
all other material permits, approvals, clearances, and consents of or filings with any antitrust authorities required to be procured or made by GPIA, Let’s Go and Rimini Street in connection with the mergers and the transactions contemplated by the merger agreement having been procured or made;
there being no governmental order, statute, rule or regulation enjoining or prohibiting the consummation of the business combination;

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there being no pending legal proceedings by any governmental authority seeking to restrain or prohibit the consummation of the business combination or any other transaction contemplated thereby;
GPIA having at least $50,000,000 in cash to fund the transaction;
following payment by GPIA to its stockholders who have validly elected to have their GPIA public shares redeemed for cash in connection with the mergers, the amount of immediately available cash in the trust account shall be no less than $5,000,001; and
the shares of RMNI common stock shall have been conditionally approved for listing on NASDAQ, subject to run-off of GPIA’s current listing and official notice from NASDAQ of such issuance with respect to GPIA’s post-combination listing.

GPIA’s and Let’s Go’s Conditions to Closing

In addition, each of GPIA’s and Let’s Go’s obligations to consummate the transactions contemplated by the merger agreement are conditioned upon, among other things:

certain specified fundamental representations and warranties of Rimini Street being true and correct in all material respects (or, in respect of representations in relation to capitalization, being true and correct in all but de minimis respects) as of the date that the first merger is consummated (except to the extent expressly made as of an earlier date, in which case as of such earlier date);
all other representations and warranties of Rimini Street being true and correct (without giving effect to any limitation as to materiality, material adverse effect or Rimini Street material adverse effect) as of the date that the first merger is consummated (except to the extent expressly made as of an earlier date, in which case as of such earlier date), except for any inaccuracies or omissions that would not, individually or in the aggregate, reasonably be expected to have a Rimini Street material adverse effect;
each of the covenants of Rimini Street in the merger agreement to be performed as of or prior to the consummation of the first merger having been performed in all material respects;
Rimini Street having delivered, on the date that the business combination is consummated, a closing certificate signed by an officer of Rimini Street in relation to the satisfaction of certain conditions;
the escrow agreement in relation to the adjustment and indemnification escrow amounts having been duly executed by all parties other than GPIA and Let’s Go; and
since the date of the merger agreement through the date that the business combination is consummated, there having been no material adverse effect on Rimini Street and its subsidiaries, taken as a whole, or event preventing or materially impairing the ability of Rimini Street to consummate the business combination.

Rimini Street’s Conditions to Closing

The obligations of Rimini Street to consummate the transactions contemplated by the merger agreement also are conditioned upon, among other things:

certain specified fundamental representations and warranties of GPIA being true and correct in all material respects (or, in respect of representations in relation to the trust account and brokers fees, being true and correct in all but de minimis respects) as of the date that the first merger is consummated (except to the extent expressly made as of an earlier date, in which case as of such earlier date);
all other representations and warranties of GPIA being true and correct (without giving effect to any limitation as to materiality, material adverse effect or GPIA material adverse effect) as of the date that the first merger is consummated (except to the extent expressly made as of an earlier date, in which case as of such earlier date), except for any inaccuracies or omissions that would not, individually or in the aggregate, reasonably be expected to have a GPIA material adverse effect;
each of the covenants of GPIA in the merger agreement to be performed as of or prior to the consummation of the first merger having been performed in all material respects;
GPIA having delivered, on the date that the first merger is consummated, a closing certificate signed by an officer of GPIA in relation to the satisfaction of certain conditions;

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the escrow agreement in relation to the adjustment and indemnification escrow amounts having been duly executed by all parties other than Rimini Street and the Holder Representative;
since the date of the merger agreement through to the date that the business combination is consummated, there having been no GPIA material adverse effect;
the directors designated pursuant to Section 7.9 of the merger agreement shall have been appointed in accordance with the DGCL and the RMNI governing documents to serve on the RMNI board of directors the board of directors of RMNI effective as of the first effective time; and
GPIA having made all necessary and appropriate arrangements with Continental Stock Transfer & Trust Company, as trustee of the trust account, to have all of the funds contained in the trust account disbursed to RMNI immediately prior to the consummation of the first merger, and all such funds released from the trust account being available to RMNI in respect of all or a portion of the payment obligations in connection with the business combination and the payment of GPIA’s and RMNI’s fees and expenses incurred in connection with the merger agreement and related transactions.

Holder Representative

Pursuant to the merger agreement, the Holder Representative has been designated to act on behalf of holders of Rimini Street’s capital stock. The Holder Representative has full power, authority and discretion to, among other things, (i) from and after consummation of the business combination, negotiate and enter into any amendments to the merger agreement that the parties thereto may seek to make; (ii) agree to, dispute, negotiate, compromise, settle and take other actions as may be necessary or desirable in respect of any matters contemplated by the merger agreement or the other related agreements, including in connection with final calculation and determination of Closing Date indebtedness, Closing Date cash and Closing Date unpaid transaction expenses, as contemplated in the merger agreement, (iii) authorize, administer or object to the release and disbursement of the indemnification escrow shares to the former holders of Rimini Street’s capital stock; (iv) deduct and/or hold back any funds that may be payable to any Rimini Street stockholder pursuant to the terms of the merger agreement or the other related agreements, (v) give and receive all notices, communications and to receive and accept service of legal process in connection with any action, suit or proceeding arising under the merger agreement or the other related agreements; (vi) act for the Rimini Street stockholders with respect to all indemnification matters referred to in the merger agreement or the other related agreements, including the right to negotiate and compromise on behalf of the Rimini Street stockholders any indemnification claim made by or against the Rimini Street stockholders; (vii) disburse indemnification escrow shares (to the extent such indemnification escrow shares are released to the Holder Representative pursuant to the terms of the merger agreement); (viii) engage, employ and obtain the advice of legal counsel, accountants and other professional advisors and rely on their advice and counsel, and to incur and pay fees and expenses of such advisors on behalf of the Rimini Street stockholders; (ix) take or refrain from taking all actions necessary or appropriate on behalf of the Rimini Street stockholders in the sole judgment of Holder Representative for the accomplishment of the foregoing or required or permitted by the terms of the merger agreement or the other related agreements; and (x) do each and every act and exercise any and all rights which such Rimini Street stockholder, or any or all of the Rimini Street stockholders collectively, are permitted or required to do or exercise under the merger agreement or any related agreement.

Waiver

Any party to the merger agreement may, at any time prior to the consummation of the business combination, waive any of the terms or conditions of the merger agreement or agree to an amendment or modification to the merger agreement by an agreement in writing.

The existence of financial and personal interests of one or more of GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is best for GPIA and what he or they may believe is best in determining whether or not to recommend that shareholders vote for the proposals.

The amendment, modification or waiver of the merger agreement in any manner that could reasonably be expected to be materially adverse to Rimini Street or the agents and lenders under the Credit Facility requires the prior written consent of the Origination Agent. There can be no assurance that GPIA, Let’s Go and Rimini Street would waive any such provision of the merger agreement, or that the agents and lenders under the Credit Facility would provide any required consents to such amendments, modifications or waivers.

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Termination

The merger agreement may be terminated at any time, but not later than the consummation of the business combination, as follows:

by written consent of Rimini Street and GPIA;
by either Rimini Street or GPIA if any governmental authority in the United States shall have enacted, issued, promulgated, enforced or entered any injunction, order, decree or ruling (whether temporary, preliminary or permanent) which has become final and non-appealable and has the effect of making consummation of the business combination illegal or otherwise preventing or prohibiting consummation of the business combination;
by either Rimini Street or GPIA if the GPIA extension approval shall not have been obtained by reason of the failure to obtain the required vote at the extraordinary shareholders’ meeting duly convened therefor or at any adjournment or postponement thereof;
by either Rimini Street or GPIA if the proposals to be voted on by the shareholders of GPIA at the extraordinary general meeting are not duly approved and adopted by the GPIA shareholders by the requisite vote at the extraordinary general meeting or at any adjournment thereof;
prior to the consummation of the business combination, by written notice to Rimini Street from GPIA if:
(i) there is any material breach of any representation, warranty, covenant or agreement of Rimini Street (and Rimini Street has not cured such breach within 20 days of receiving notice of such breach from GPIA), such that the relevant conditions to the consummation of the business combination would not be satisfied;
(ii) the consummation of any of the transactions contemplated by the merger agreement is permanently enjoined, prohibited or otherwise restrained or made illegal by the terms of a final, non-appealable order or judgment of a court of competent jurisdiction;
(iii) the business combination has not been consummated on or before August 31, 2017 (the “end date”), unless the willful breach by GPIA of the merger agreement is the primary reason for the consummation of the business combination not occurring on or before such date; provided, that, under certain circumstances, GPIA or Rimini Street may by notice delivered to the other party unilaterally extend the end date to November 17, 2017, in which case the end date shall be deemed for all purposes to be such date; provided further, that in the event GPIA delivers such a notice to extend the end date, any subsequent event of default of Rimini Street under its current financing arrangements as a result of not raising such capital as Rimini Street is required to obtain under such arrangements on or before September 1, 2017, shall not in itself be deemed a failure of any condition in Section 9.2 of the merger agreement; or
(iv) a fully-executed copy of each of the transaction support and voting agreements has not been received by GPIA by 5:00 p.m. Eastern Time on the business day of the execution and delivery of the merger agreement; or
prior to consummation of the business combination, by written notice to GPIA from Rimini Street if:
(i) there is any material breach of any representation, warranty, covenant or agreement of GPIA (and GPIA has not cured such breach within 20 days of receiving notice of such breach from Rimini Street), such that the relevant conditions to the consummation of the business combination would not be satisfied;
(ii) the first merger shall not have been consummated on the second business day after all of the conditions to the business combination (other than conditions to be satisfied at consummation of the business combination) and the first merger is not consummated on or prior to the second business day after notice has been given to GPIA by Rimini Street of such proposed termination;
(iii) the business combination has not been consummated on or before the end date (as may be further extended as described above), unless the willful breach by Rimini Street of the merger agreement is the primary reason for the closing not occurring on or before such date; or

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(iv) the consummation of any of the transactions contemplated by the merger agreement is permanently enjoined, prohibited or otherwise restrained or made illegal by the terms of a final, non-appealable order or judgment of a court of competent jurisdiction.

Effect of Termination

In the event of proper termination by either GPIA or Rimini Street, the merger agreement will be of no further force or effect and the business combination will be abandoned, except that, among other things:

the obligation of each party to pay fees and expenses incurred by such party in connection with the merger agreement will survive;
the obligations of GPIA and Rimini Street set forth in the confidentiality agreement dated as of April 6, 2017, between GPIA and Rimini Street will survive; and
each party’s liability for willful and material breach of any covenant in the merger agreement or willful and material breach of any of its representations and warranties in the merger agreement prior to such termination will survive.

Survival of Representations, Warranties and Covenants; Indemnification; Escrowed Merger Consideration

The representations, warranties and covenants of the parties contained in the merger agreement shall survive the consummation of the business combination and shall continue in full force and effect for one year following consummation of the business combination, provided that any covenant that, by its terms, provides for performance following the consummation of the business combination shall survive until such covenant is performed.

Holders of GPIA common shares immediately before the first effective time (the “GPIA indemnified parties”) shall be entitled, for one year from the date the business combination is consummated, to indemnification from the indemnification escrow shares for any and all damages to the extent arising from:

any breach of any representation or warranty Rimini Street has made in the merger agreement or in the certificate to be delivered pursuant to the merger agreement (a “Rimini Street warranty breach”) (provided that any qualification or exception relating to materiality, material adverse effect or Rimini Street material adverse effect shall be disregarded for purposes of determining the amount of any damages and for purposes of determining whether such representation or warranty has been breached);
any breach by the Rimini Street or its subsidiaries of any covenant or agreement of Rimini Street or its subsidiaries in the merger agreement;
the absolute value of such negative number in the event the estimated Closing Date indebtedness minus Closing Date indebtedness, plus Closing Date cash minus estimated Closing Date cash, plus estimated Closing Date unpaid transactions minus Closing Date unpaid transactions is a negative number;
any Rimini Street stockholder’s exercise of dissenters’ rights; and
any legal proceeding by any Rimini Street stockholder against Rimini Street or GPIA, or their respective officers and directors, in each case, arising out of or related to the merger agreement or the business combination.

GPIA shall indemnify, defend and hold the Holder Representative and the Rimini Street stockholders (collectively, the “seller indemnified parties”) harmless for any and all damages to the extent arising from (i) any breach of any representation or warranty GPIA or Let’s Go has made in the merger agreement or in the certificate to be delivered pursuant to the merger agreement (an “acquiror warranty breach”) (provided that any qualification or exception relating to materiality, material adverse effect or GPIA material adverse effect shall be disregarded solely for purposes of determining the amount of any damages, but not for purposes of determining whether such representation or warranty has been breached) or (ii) any breach by GPIA or Let’s Go of any covenant or agreement of GPIA or Let’s Go in the merger agreement.

GPIA indemnified parties shall not be entitled to indemnification with respect to any indemnification claim made with respect to Rimini Street warranty breach (other than Rimini Street warranty breaches with respect to Rimini Street fundamental representations) unless and until damages exceed both a per claim amount of $75,000 and a $1,750,000 threshold for all claims (excluding amounts below the per claim amount).

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All damages for which any indemnified party would otherwise be entitled to indemnification under the merger agreement shall be reduced by the amount of insurance proceeds, tax benefits actually realized by the indemnified in the taxable year in which such indemnification payment is made, indemnification payments and other third party recoveries which any indemnified party actually receives in respect of any damages incurred by such indemnified, net of applicable reserves, and deductibles, and reasonable internal or third party expenses actually incurred in obtaining or receiving such recoveries.

Fees and Expenses

In the event that the transactions contemplated by the merger agreement are not consummated, each party to the merger agreement shall bear its own expenses incurred in connection with the merger agreement and the transactions therein, including all fees of its legal counsel, financial advisers and accountants; it being agreed and acknowledged by the parties that all such expenses of Rimini Street and its subsidiaries shall be deemed transaction expenses. However, in the event that the transactions contemplated by the merger agreement shall be consummated, the merger agreement provides that RMNI shall bear all expenses incurred by the parties to the merger agreement in connection with the merger agreement and the transactions contemplated therein, including all fees of the parties’ respective legal counsel, financial advisers and accountants.

Amendments

The merger agreement may be amended or modified in whole or in part, only by a duly authorized agreement in writing executed in the same manner as the merger agreement and which makes reference to the merger agreement.

Governing Law; Consent to Jurisdiction

The merger agreement is governed by and construed in accordance with the law of the state of Delaware.

With respect to any proceeding or action based upon, arising out of or related to the merger agreement or the transactions contemplated by the merger agreement, each party irrevocably submits to the exclusive jurisdiction of Court of Chancery of the State of Delaware (or, to the extent such Court does not have subject matter jurisdiction, the Superior Court of the State of Delaware), or, if it has or can acquire jurisdiction, in the United States District Court for the District of Delaware in respect of any action, suit or proceeding arising in connection with the merger agreement, and agrees that any action, suit or proceeding may be brought only in such court.

Merger Agreement Amendment

On June 30, 2017, GPIA, Let’s Go, Rimini Street and the Holder Representative entered into amendment no. 1 to the merger agreement. Pursuant to the merger agreement amendment, the parties agreed to, among other things: (1) amend the provision of the merger agreement relating to cash payments to be made to former employees and former service providers of Rimini Street who hold outstanding options that have not been exercised by the first effective time, (2) update the capitalization of GPIA referred to in the merger agreement to reflect the number of public shares redeemed by GPIA on May 25, 2017, (3) provide that the mutual closing condition requiring a minimum of $50,000,000 of GPIA available cash includes (rather than excludes) the amount of $6,037,500 that will be paid in respect of deferred underwriting commissions, and (4) delete the provision of the merger agreement requiring GPIA to adopt an employee stock purchase plan.

Related Agreements

Non-Disclosure Agreement

On April 6, 2017, the Sponsor entered into a non-disclosure agreement with Rimini Street, the provisions of which agreement survived the execution of the merger agreement and shall automatically on April 6, 2019. The non-disclosure agreement provides for confidentiality obligations owed by GPIA to Rimini Street in relation to the information disclosed by or on behalf of Rimini Street in connection with the proposed business combination.

Rimini Street Transaction Support and Voting Agreement

On May 16, 2017, we entered into a transaction support and voting agreement with Seth A. Ravin (as trustee of a trust holding common and preferred stock of Rimini Street), Thomas C. Shay, Adams Street Partners, LLC and certain Adams Street fund limited partnerships, pursuant to which, among other things, such stockholders have,

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among other things, agreed to vote their shares of Rimini Street Class A Common Stock, Rimini Street Class B Common Stock, Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock in favor of adoption of the merger agreement and the approval of the business combination at the meeting of the Rimini Street stockholders held for such purpose.

As of the date of this joint proxy statement/prospectus, the aggregate number of shares covered by the transaction support and voting agreement represents 71.6% of the outstanding Rimini Street Class B Common Stock, 36.4% of the outstanding Series A Preferred Stock, 100% of the outstanding Series B Preferred Stock and 100% of the outstanding Series C Preferred Stock. Accordingly, assuming the performance in accordance with the terms of such transaction support and voting agreement by each of the Rimini Street stockholders named therein, Rimini Street will obtain the relevant approvals of its stockholders in connection with the business combination and the other transactions contemplated by the merger agreement.

GPIAC, LLC’s Sponsor Transaction Support and Voting Agreement

On May 16, 2017, in connection with the transactions contemplated by the merger agreement, GPIAC, LLC entered into a transaction support and voting agreement with GPIA and Rimini Street, pursuant to which, among other things, GPIAC, LLC agreed to vote its GPIA ordinary shares in favor of the transactions at the extraordinary general meeting of GPIA’s shareholders to be held in connection with the transactions contemplated by the merger agreement. As of the date of this joint proxy statement/prospectus, the aggregate number of shares covered by the transaction support and voting agreement entered into by GPIAC, LLC represents 21.3% of the GPIA ordinary shares.

Lock-Up Letter

In connection with the transactions contemplated by the merger agreement, certain of Rimini Street’s stockholders (which we refer to as the Lock-up Stockholders) have executed a letter agreement, dated as of May 16, 2017, pursuant to which, among other things, such Lock-up Stockholders have agreed to certain restrictions regarding the transfer of the GPIA ordinary shares received by such Lock-up Stockholders in connection with the business combination.

Pursuant to the lock-up letter, the Lock-up Stockholders shall not transfer any GPIA shares from the first effective time through the first anniversary of the consummation of the business combination or earlier, if subsequent to the first effective time, (i) the last sale price of the RMNI common stock equals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the first effective time or (ii) the date following the completion of the first effective time on which RMNI completes a liquidation, merger, share exchange or other similar transaction that results in all of the stockholders having the right to exchange their RMNI common stock for cash, securities or other property.

The lock-up letter allows the Lock-up Stockholders to transfer their shares to among others, GPIA’s officers or directors, any affiliates or any spouse, domestic partner, parent, sibling, child or grandchild of any of GPIA’s officers or directors, any members of the Sponsor or their affiliates, any other Lock-up Stockholder or any affiliate or immediate family member of any Lock-up Stockholder.

The lock-up letter shall terminate in the event of the termination of the merger agreement.

Equity Commitment Letter

We have entered into an equity commitment letter with the Sponsor dated May 16, 2017 (which we refer to as the equity commitment letter). Pursuant to the equity commitment letter, among other things, the Sponsor will (in certain circumstances) provide backstop equity financing by means of purchasing newly issued GPIA ordinary shares based on a per share issue price of $10.00 per share in an aggregate amount of up to $35,000,000 (which we refer to as the equity commitment).

If, upon the effectiveness of the first merger, the sum of (i) the cash available in the trust account (after the deduction of the cash used for redemptions of our ordinary shares in connection with the business combination, and including an aggregate of $6,037,500 of deferred underwriting commissions and other fees held in the trust account) and (ii) the cash available to GPIA from the consummation of certain issuances of GPIA ordinary shares (which we refer to as non-Sponsor available cash) is greater than or equal to $50,000,000, then the Sponsor’s equity commitment is zero.

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If, upon the effectiveness of the first merger, the non-Sponsor available cash is less than $50,000,000, then the Sponsor’s equity commitment is the lesser of (i) $50,000,000 minus the non-Sponsor available cash and (ii) $35,000,000, which is the maximum commitment of the Sponsor under the equity commitment letter (such amount as calculated pursuant to the foregoing clauses (i) and (ii) being referred to in this joint proxy statement/prospectus as the commitment. In addition, pursuant to the equity commitment letter, the Sponsor may, in its sole discretion and in connection with the consummation of the business combination, elect to purchase (on or prior to the domestication) GPIA common shares at a price of $10.00 per share in excess of such commitment, but in all cases up to a maximum of $35,000,000 when aggregated with such commitment.

Therefore, the maximum number of shares of GPIA common shares that the Sponsor can be required to acquire pursuant to the equity commitment letter is 3,500,000 shares of GPIA common shares at a cash purchase price of $10.00 per share of common stock. Any shares of GPIA common shares to be acquired by the Sponsor pursuant to the equity commitment letter shall be acquired by the Sponsor upon or prior to the domestication of GPIA as a Delaware corporation.

The GPIA common shares issued pursuant to the equity commitment letter shall constitute registrable securities under the registration rights agreement. Pursuant to the terms of the equity commitment letter, the Sponsor may allocate all or a portion of its obligations under the equity commitment letter to one or more persons who commit to purchase GPIA ordinary shares in connection with the business combination, but such allocation shall not relieve the Sponsor of its obligations thereunder.

The Sponsor’s obligations under the equity commitment letter are subject to the following conditions:

execution of the merger agreement by the parties thereto and all related agreements required by the merger agreement;
satisfaction in full or waiver by GPIA and Let’s Go of each of the conditions to the obligations of GPIA and Let’s Go to consummate the transactions contemplated by the merger agreement;
confirmation by Rimini Street that all conditions in the merger agreement that are for the benefit of Rimini Street have satisfied or have been waived by Rimini Street;
the execution and delivery of each of the waiver letter agreements, dated May 16, 2017, (i) among Rimini Street, the lender parties thereto, Cortland Capital Market Services LLC, as collateral agent and as administrative agent, and CB Agent Services LLC, as origination agent, providing for, among other things, subject to the satisfaction of the conditions set forth therein, the required lenders’ consent to the execution of the merger agreement, (ii) among Rimini Street and CB Agent Services LLC, as origination agent, providing for, among other things, subject to the satisfaction of the conditions set forth therein, the origination agent’s consent to the consummation of the transactions contemplated by the merger agreement, and (iii) among Rimini Street, the lender parties thereto, Cortland Capital Market Services LLC, as collateral agent and as administrative agent, and CB Agent Services LLC, as origination agent, providing for, among other things, subject to the satisfaction of the conditions set forth therein, the required lenders consent to the consummation of the transactions contemplated by the merger agreement, substantially concurrently with the execution of the equity commitment letter; and
consummation of the first merger and the transactions contemplated by the merger agreement occurring substantially concurrently with the payment required under the equity commitment.

The equity commitment letter terminates automatically upon the earliest to occur of (a) the consummation of the first merger and (b) the date that the merger agreement is validly terminated pursuant to its terms.

Warrant Consent and Conversion Agreement

Rimini Street and the Origination Agent are party to the Origination Agent warrant agreement, dated as of June 24, 2016, pursuant to which Rimini Street issued Origination Agent warrants to purchase an aggregate of 14,110,259 shares of Rimini Street common stock at an exercise price per share of $1.35, upon the terms and subject to the conditions set forth in the Origination Agent warrant agreement.

In connection with the mergers, GPIA and Rimini Street have agreed to increase the aggregate number of shares of Rimini Street common stock issuable under the Origination Agent warrant agreement to include an additional 260,000 shares of Rimini Street common stock at an exercise price per share of $1.35 in full satisfaction of a

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provision of the Origination Agent warrant agreement. Such provision had required Rimini Street, under certain circumstances, to issue to holders of the Origination Agent warrants additional warrants to purchase a number of shares necessary to ensure that such holders hold 5% of Rimini Street’s fully-diluted share capital.

We have entered into a warrant consent and conversion agreement, dated May 16, 2017, by and among GPIA, Rimini Street and the Origination Agent. Pursuant to the warrant consent and conversion agreement, among other things, the Origination Agent agrees immediately prior to, and contingent upon the occurrence of, the first effective time, to: (i) terminate the Origination Agent warrant agreement, (ii) surrender to Rimini Street any and all of its Origination Agent warrants and (iii) receive warrants relating to shares of RMNI. At the consummation of the business combination, GPIA has agreed to issue to the holders of the Origination Agent warrants and each such holder has agreed to convert their relevant allocated portion of Origination Agent warrants into warrants to purchase shares of RMNI. After such conversion, the Origination Agent warrants will be cancelled and cease to represent a right to acquire shares of Rimini Street common stock. The total number of Origination Agent warrants that will be converted and cancelled is expected to result in warrants relating to 3,537,412 shares of RMNI common stock being issued.

Background to the Business Combination

On May 26, 2015, GPIA closed its initial public offering of 17,250,000 units, with each unit consisting of one ordinary share and one-half of a warrant to acquire one ordinary share upon consummation of an initial business combination. The units from our initial public offering were sold at an offering price of $10.00 per unit, generating total gross proceeds of $172,500,000. Simultaneously with the closing of our initial public offering, GPIA consummated the sale of 6,062,500 warrants at a price of $1.00 per warrant in a private placement to the Sponsor, generating gross proceeds of $6,062,500.

The following table sets forth the gross proceeds received from our initial public offering and the sale of the private placement warrants, the total expenses related thereto and the net proceeds received by GPIA, in each case, as of May 26, 2015:

Gross Proceeds
Initial public offering gross proceeds
$
172,500,000
 
 
Private placement warrants gross proceeds
$
6,062,500
 
 
Total gross proceeds (initial public offering
and private placement warrants)
$
178,562,500
 
Expenses / Underwriters’ Deferred Discount
Initial public offering-related expenses
$
4,923,090
 
 
Underwriters’ deferred discount
$
6,037,500
 
 
Total expenses and deferred discounts
related to our initial public offering and sale
of private placement warrants
$
10,960,590
 
Net Proceeds
Initial public offering net proceeds
$
161,539,410
 
 
Private placement warrants net proceeds
$
6,062,500
 
 
Total net proceeds (initial public offering
and private placement warrants)
$
167,601,910
 
Trust Account
Initial public offering proceeds (including
underwriters’ deferred discount)
$
166,437,500
 
 
Private placement warrant proceeds
$
6,062,500
 
 
Total proceeds placed in trust account
$
172,500,000
 
Operating Account
Proceeds from initial public offering and
private placement warrants
$
1,110,063
 
 
Total proceeds held in operating account
$
1,110,063
 

Following the closing of our initial public offering, an amount of $172,500,000 ($10.00 per share) from the net proceeds of the sale of the units in our initial public offering was placed in the trust account and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “1940 Act”), with a maturity of 180 days or less or in any open-ended investment company that holds

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itself out as a money market fund selected by GPIA meeting the conditions of paragraphs (d)(1), (d)(2), (d)(3) and (d)(4) of Rule 2a-7 of the 1940 Act, as determined by GPIA, until the earlier of: (i) the consummation of an initial business combination within the prescribed time or (ii) the distribution of the trust account as described below.

Initially, the Sponsor and our executive officers and directors agreed that we must complete our initial business combination by May 26, 2017, which was 24 months from the closing of our initial public offering. As further discussed below, on May 23, 2017, the shareholders of GPIA approved, among other things, the Extension Amendment Proposal and the Trust Amendment Proposal (in each case, as defined below and further described in the definitive proxy statement filed by GPIA with the SEC on April 24, 2017 relating to GPIA’s extraordinary general meeting held on May 23, 2017 (the “Extension Meeting”)). At the Extension Meeting, the shareholders of GPIA approved the Extension Amendment Proposal and the Trust Amendment Proposal, which, among other things, extended the date by which GPIA must (i) consummate our initial business combination, (ii) cease our operations if we fail to complete such initial business combination, and (iii) redeem all of GPIA’s shareholder’s ordinary shares included as part of the units sold in GPIA’s initial public offering, from May 26, 2017 to November 27, 2017.

If we are not able to complete the business combination with Rimini Street by November 27, 2017, or another business combination by that date, we would cease all operations, except for the purpose of winding up, redeeming all of the outstanding public shares for cash and, subject to the approval of our remaining shareholders and our board of directors, dissolving and liquidating, subject in each case to our obligations under Cayman Islands law, including the Cayman Islands Companies Law, to provide for claims of creditors and the requirements of other applicable law.

Following the completion of our initial public offering in May 2015, representatives of GPIA engaged in extensive discussions with investment bankers and business owners with respect to potential investment opportunities in the consumer and services sectors in the United States and Europe. GPIA sought an established company that included the following traits: strong brands and products or services with the potential to expand market share over time; strong growth stories and a clear value creation potential; and potential to enter new markets, such as emerging markets.

In the process that led to identifying Rimini Street as an attractive investment opportunity, GPIA reviewed and performed varying levels of due diligence on approximately 350 companies in the United States and Europe, including Rimini Street. In addition to the offer made to Rimini Street in connection with the business combination, GPIA made formal presentations to and/or submitted offers to multiple companies in the consumer goods, services, retail and restaurants sectors. The most developed opportunity prior to Rimini Street involved the proposed acquisition of WKI Holding Company, Inc. (“World Kitchen”), a leading multinational manufacturer and marketer of houseware products. This transaction was publicly announced in April 2016, with associated filings with the SEC, but was terminated in November 2016. Of the 350 companies referenced above, GPIA performed varying levels of due diligence on approximately 100 companies in the United States and Europe since November 2016, and, in addition to the offer made to Rimini Street, GPIA made formal presentations to and/or submitted offers to the following companies: an e-commerce company focused on home wares based in Europe (“Company A”), a food company focused on healthy snacking based in the United States (“Company B”), a transportation company focused on car hauling based in the United States (“Company C”), a packaging business based in Europe focused on plastic containers (“Company D”), a craft brewer based in the United States (“Company E”), a recreational boat manufacturer based in the United States (“Company F”) and a provider of event technology services based in the United States (“Company G”).

Each of the aforementioned opportunities did not progress for the following reasons. Company A, after due diligence, was determined to be not yet public company ready in terms of infrastructure and required public reporting. Company B required a sizeable secondary component to the transaction value and also required a higher valuation than GPIA assessed as appropriate. Company C would have yielded an equity value likely to be inadequate measured by overall size and expected float. Company D was determined to have too much deal risk based on the required combination and integration of ancillary businesses in advance of a potential closing. Company E believed it could command a higher valuation by pursuing a sale to a strategic buyer. Company F preferred to capitalize on the low interest rate environment by pursuing a dividend recapitalization instead. Company G experienced negative earnings versus the comparable prior year period, and we believed such circumstances would not be viewed favorably by the public market.

On March 24, 2017, during a call between Mr. Andrew Fleiss, Managing Director at GP North America, LLC, an affiliate of the Sponsor and Mr. Zachary Fisher, Managing Director at Cowen and Company, LLC (“Cowen”),

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Mr. Fisher mentioned Rimini Street as a potential business combination partner for GPIA. On March 27, 2017, Mr. Fleiss, Mr. Rodrigo Boscolo, Director at GP North America, LLC, Mr. Fisher and Mr. Peter Gant, Managing Director at Cowen, discussed in greater detail a potential transaction involving Rimini Street and GPIA.

On April 5, 2017, Mr. Fleiss, Mr. Boscolo, Mr. Fisher, Mr. Michael Campbell, Managing Director at Cowen, Mr. Seth Ravin, CEO at Rimini Street, and Mr. Tom Sabol, CFO at Rimini Street, met in person with the purpose of learning more about Rimini Street and further evaluating Rimini Street as a business combination opportunity. GPIA and Rimini Street executed a non-disclosure agreement concurrently with this meeting.

On April 10, 2017, GPIA made a preliminary proposal to Rimini Street that included background on GPIA and GP Investments, qualitative and quantitative considerations regarding a potential merger between GPIA and Rimini Street, and assessed valuation for such a potential transaction. Valuation was determined by taking a discount to the trading multiples of software and software-services comparable companies.

On April 12, 2017, GPIA’s board of directors held a meeting to discuss the investment pipeline and advanced leads, including Rimini Street, and to evaluate the merits of extending GPIA’s corporate life. GPIA’s board of directors determined that it was in the best interest of GPIA’s shareholders to seek an extension, and resolved to recommend that GPIA’s shareholders vote to, among other things, approve such an extension, of GPIA’s corporate life from May 26, 2017 to November 27, 2017, in order to pursue such advanced leads.

On April 13, 2017, GPIA filed with the SEC a preliminary proxy statement providing notice of an extraordinary general meeting of shareholders at which its shareholders would consider proposals to (i) amend GPIA’s amended and restated memorandum and articles of association to extend the date that GPIA has to consummate a business combination from May 26, 2017 to November 27, 2017 (the “Extension Amendment Proposal”), (ii) amend the Investment Management Trust Agreement, dated May 19, 2015, by and between GPIA and Continental Stock Transfer & Trust Company, to extend the date on which Continental Stock Transfer & Trust Company must liquidate the Trust Account established in connection with GPIA’s initial public offering if GPIA has not completed a business combination from May 26, 2017 to November 27, 2017 and to permit the withdrawal of funds from the Trust Account to pay shareholders who properly exercise their redemption rights in connection with the Extension Amendment Proposal (the “Trust Amendment Proposal”), and (iii) adjourn the Extension Meeting to a later date or dates, if necessary, to permit further solicitation and vote of proxies in the event that there are insufficient votes for, or otherwise in connection with, the approval of the prior two proposals. On the same day, GPIA announced that it had set April 24, 2017 as the record date in respect of the proposals to be voted on by GPIA’s shareholders at the Extension Meeting.

Also on April 13, 2017, GPIA submitted a non-binding letter of intent to Rimini Street with respect to a business combination involving the two entities, at an enterprise value of $770 million, in a debt-free, cash-free transaction. GPIA determined this valuation by applying a multiple to future expected revenue of Rimini Street or each of 2017 and 2018. This letter of intent also proposed a 21-day exclusivity period in order to allow GPIA time to perform due diligence and advance transaction-related documentation.

On April 17, 2017, Rimini Street provided feedback to GPIA on the April 13 non-binding letter of intent and the two parties engaged in discussions regarding potential paths forward and structuring of a possible transaction.

On April 18, 2017, GPIA submitted a revised non-binding letter of intent to Rimini Street. This letter included an enterprise valuation of $775 million, an increase of $5 million from the enterprise valuation as described in the April 13 letter. Additionally, the revised letter provided further detail with respect to corporate governance measures that would be put in place upon the consummation of the transaction. The revised letter also contained an exclusivity period until May 9, 2017. GPIA and Rimini Street executed, and certain other parties who agreed to be bound by certain specified sections of such letter countersigned, the non-binding letter shortly thereafter. Subsequently, GPIA engaged third party advisors to perform business, financial, legal, insurance and technology due diligence on Rimini Street. GPIA and certain of its advisors were provided with access to Rimini Street’s electronic data room on or about April 23, 2017.

On April 24, 2017, GPIA filed with the SEC a definitive proxy statement, updated from the preliminary proxy statement filed on April 13, 2017 with respect to the matters to be voted on at the Extension Meeting. The definitive proxy statement was mailed to holders of record on or about April 24, 2017.

On April 24, 25, and 26, 2017, GPIA and its advisors met with Rimini Street in Pleasanton, CA for presentations by Rimini Street’s senior management team as well as various due diligence sessions. Attendees from GPIA included

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Mr. Antonio Bonchristiano, Chief Executive Officer and Chief Financial Officer of GPIA, and Mr. Fersen Lambranho, Chairman of GPIA’s board of directors, as well as Messrs. Fleiss and Boscolo. Representatives including Cowen, financial advisor to Rimini Street, Citigroup Inc. (“Citi”), capital markets and financial advisor to GPIA, and Skadden, Arps, Slate, Meagher & Flom LLP, which we refer to as Skadden, legal counsel to GPIA, participated telephonically in the due diligence sessions held on April 26, 2017.

On April 28, 2017, the GPIA board of directors held a meeting to discuss the merits of a business combination with Rimini Street and major findings from the April 24-26 management meetings and diligence sessions. At such meeting, a representative of Maples and Calder, which we refer to as Maples, Cayman Islands legal counsel to GPIA, distributed materials to the directors and discussed applicable legal duties with the directors. Also at such meeting, a representative of Skadden discussed certain legal matters, including the importance of identifying any potential conflicts of interest on the part of the GPIA board of directors or its advisors. The GPIA board of directors identified the related party nature of the possible equity investment by the Sponsor and reached consensus that it would be prudent to establish a committee of independent directors to review, among other things, the terms of such an equity investment if the transaction proceeded. The GPIA board of directors resolved to form a Special Transaction Committee (the “special transaction committee”), composed of Messrs. Christopher Brotchie, Fernando d’Ornellas Silva and Alexandre Hohagen, each of whom had previously been determined by the GPIA Board to be an “independent director” as defined in the NASDAQ listing standards and applicable SEC rules. While the initial rationale behind formation of the special transaction committee was the related party nature of the proposed equity commitment from the Sponsor, the GPIA Board resolved that the special transaction committee should consider and evaluate the entirety of the proposed business combination, including the equity commitment and recommend to the full GPIA board of directors the approval or rejection of such proposed business combination.

On May 1, 2017, Skadden, on behalf of GPIA, provided a draft merger agreement to Wilson, Sonsini, Goodrich & Rosati, Professional Corporation (“WSGR”), counsel to Rimini Street.

On May 3, 2017, Skadden and WSGR had a conference call to discuss the merger agreement and certain issues identified by Rimini Street.

Also on May 3, 2017, GPIA sent a draft equity commitment letter between GPIA and the Sponsor to WSGR.

On May 4, 2017, WSGR provided a revised draft of the merger agreement to Skadden. Later that day, Skadden and WSGR had a conference call to discuss the revised draft of the merger agreement.

On May 6, 2017, Skadden provided a revised draft of the merger agreement to WSGR. Later that day, Skadden and WSGR had a conference call to discuss the revised draft of the merger agreement and certain open issues related to indemnification and go-forward governance of GPIA from and after the consummation of the proposed business combination.

On May 7, 2017, WSGR provided a revised draft of the merger agreement to Skadden.

On May 8, 2017, the GPIA board of directors held a meeting at which it received information from various third parties advisors who had conducted due diligence with respect to Rimini Street and the proposed business combination, including: Skadden for legal and litigation due diligence; PricewaterhouseCoopers LLP for financial, tax, and commercial due diligence; Willis Towers Watson for property and casualty insurance and employee benefits due diligence; and Performance Improvement Partners LLC for technology due diligence. In its consideration of the proposed business combination with Rimini Street, the GPIA board of directors determined not to obtain a fairness opinion. The officers and directors of GPIA have significant experience in evaluating the business, operations and financial metrics of companies and concluded that such experience, together with the experience of GPIA’s financial advisor enabled them to make informed analyses and determinations regarding the potential business combination with Rimini Street. To that end, to assist the GPIA board of directors in better analyzing the business combination, the directors asked Citi to present certain discussion materials prepared by Citi, including a value assessment of Rimini Street and a comparable company benchmarking based on both operational and valuation metrics. Also at this meeting, Maples and Skadden representatives discussed certain legal matters and Skadden representatives provided an update regarding the potential Rimini Street transaction and reviewed the draft transaction documentation.

On May 8, 2017, Skadden and WSGR had a conference call to discuss certain open issues in the merger agreement and other related transaction documentation. Thereafter, GPIA and its advisors as well as Rimini Street and its advisors had a conference call regarding key open issues in the transaction agreements in connection with the proposed transaction between GPIA and Rimini Street.

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On the morning of May 9, 2017, the GPIA board of directors held a meeting to review and discuss the status of negotiations between GPIA and Rimini Street and open issues in the various transaction agreements related to the proposed transaction. Skadden representatives provided an update on the transaction agreements. The GPIA board of directors engaged in a thorough discussion and provided guidance with respect to the transaction documents and the open points. Mr. Brotchie, a director and a member of the special transaction committee, advised the GPIA board of directors that, based on recent discussions with GPIA’s Sponsor, an entity with which Mr. Brotchie is affiliated may participate in the Sponsor’s equity financing for the proposed transaction, and, accordingly, Mr. Brotchie thought it best that he be removed from the special transaction committee, given its purpose, among other things, was to consider and evaluate the terms of the equity commitment. The other directors unanimously agreed, and the composition of the special transaction committee was revised accordingly. Thereafter, the special transaction committee, then comprised solely of Messrs. d’Ornellas Silva and Hohagen, held an executive session with Skadden representatives to discuss the proposed business combination, including, among other things, the equity commitment letter with the Sponsor.

On May 9, 2017, Skadden provided a revised draft of the merger agreement to WSGR. Later that day, Skadden and WSGR had a conference call to discuss the revised draft of the merger agreement and related transaction documentation.

In the evening on May 9, 2017, the GPIA board of directors held a meeting to discuss the progress made throughout the day with respect to the transaction agreements and open issues.

On May 10, 2017, WSGR provided a revised draft of the merger agreement to Skadden. Later that day, Skadden and WSGR had a conference call to discuss the revised draft of the merger agreement and related transaction documentation.

Later that evening, Rimini Street and its advisors had a conference call with GPIA and its advisors to discuss certain matters related to the proposed transaction, including that Rimini Street was reviewing the proposed transaction structure and sought to alter such structure in light of certain tax considerations for Rimini Street’s securityholders.

From May 10, 2017 to May 14, 2017, representatives of GPIA, Skadden and Citi worked with representatives of Rimini Street, WSGR and Cowen to finalize transaction structure, resolve open issues and progress the transaction agreements based on the outcome of the parties discussion and agreed upon resolution of such issues.

In the morning on May 15, 2017, WSGR provided a revised draft of the merger agreement to Skadden, reflecting the “two-step” merger structure described in this joint proxy statement/prospectus in place of the reverse subsidiary merger structure contemplated in previous drafts. Later that morning, Skadden provided a revised draft of the merger agreement to WSGR, reserving on certain open points pending discussion with GPIA’s board of directors for a meeting scheduled for later that day.

In the afternoon on May 15, 2017, GPIA’s board of directors held a meeting to review and discuss the revised transaction structure and to determine whether or not to authorize entry into the business combination with Rimini Street. Representatives of Maples and Skadden also were in attendance. Maples representatives provided an overview of the directors’ fiduciary duties under Cayman Islands law. Representatives of Citi were invited to join the meeting and provided an update to the directors on Citi’s discussion materials, including a reaffirmation of Citi’s analyses as presented to the GPIA board of directors on May 8, 2017. Skadden representatives reviewed legal matters and the terms of the transaction agreements, including a remaining issue related to certain indemnification mechanics in the merger agreement. During the meeting, the special transaction committee held an executive session with Skadden representatives to discuss the proposed business combination, including, among other things, the equity commitment letter with the Sponsor, and thereafter determined to recommend the transaction with Rimini Street to the full GPIA board of directors, pending satisfactory resolution of the open issue regarding the indemnity mechanics in the merger agreement. Thereafter, the full board of directors engaged in thorough discussions on the proposed transaction with Rimini Street, including the special transaction committee’s recommendation of approval thereof contingent upon resolution of such open issue. The GPIA board of directors provided guidance on what they believed to be a satisfactory resolution of such open issue and authorized the authorized officers of GPIA to negotiate a resolution based on such guidance. After discussing the proposed transaction and considering the presentations by Maples, Skadden and Citi, the GPIA board of directors unanimously determined the transaction with Rimini Street to be fair to, advisable and in the best interests of GPIA and its shareholders, determined to approve the merger agreement upon

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resolution of the remaining issue and resolved to recommend that its shareholders vote in favor of, among other things, the business combination, the merger agreement, the stock issuance in connection therewith, and certain corporate governance matters in relation to the adoption of new organizational documents upon GPIA’s domestication in the State of Delaware.

In the morning on May 16, 2017, Skadden provided WSGR with a revised proposal on the open indemnity issues in the merger agreement, reflecting the guidance provided by GPIA’s board of directors at their May 15, 2017 meeting. Thereafter, representatives of GPIA, Skadden and Citi worked with representatives of Rimini Street, WSGR and Cowen to resolve the above-referenced indemnity issues, and the parties revised the merger agreement to reflect the same.

Throughout the morning of May 16, 2017, GPIA and Skadden worked with Rimini Street and WSGR to finalize the merger agreement and the related transaction agreements. The merger agreement and the related documentation were executed by the respective parties thereto at approximately 7:30 a.m. Eastern Time on May 16, 2017.

On May 16, 2017, prior to the opening of trading in the U.S. capital markets, a press release was issued announcing the execution of the merger agreement and the planned business combination. Shortly thereafter, GPIA made filings with the SEC that included the press release and an investor presentation in relation to the business combination between GPIA and Rimini Street.

At 10:00 a.m. Eastern Time on May 16, 2017, Messrs. Bonchristiano and Ravin held an investor call to discuss the business combination and Rimini Street’s business, during which they reviewed the investor presentation that had been filed with the SEC that morning.

On May 23, 2017, the shareholders of GPIA approved the Extension Amendment Proposal and the Trust Amendment Proposal at the Extension meeting, which, among other things, had the effect of extending GPIA’s corporate life until November 27, 2017. In connection with the Extension Amendment Proposal, GPIA’s public shareholders had the right to elect to redeem their shares of GPIA’s common stock for a per share price, payable in cash, based upon the aggregate amount then on deposit in the GPIA’s trust account. In connection with the Extension Amendment Proposal, public shareholders of GPIA holding 1,552,724 ordinary shares validly elected to redeem their ordinary shares and, accordingly, the balance in the GPIA’s trust account, after deduction of the amount required to redeem the ordinary shares subsequently redeemed on May 25, 2017, was announced as $157.8 million.

On June 1, 2017, representatives of GPIA and Rimini Street discussed possible modifications to the merger agreement to clarify, among other things, the parties’ intent that certain deferred underwriting commissions and other fees being held in the trust account should be included in the calculation of the cash available in GPIA’s trust fund for purposes of determining the satisfaction of the mutual closing condition that at least $50.0 million in cash be available to GPIA as of consummation of the business combination. On June 1, 2017, Skadden provided a draft of the merger agreement amendment to WSGR.

Between June 23, 2017 and June 28, 2017, WSGR and Skadden exchanged revised drafts of the merger agreement amendment, reflecting additional proposed changes to the merger agreement by Rimini Street and GPIA.

On June 29, 2017, the special transaction committee and the full board of directors reviewed the draft of the registration statement of which this joint proxy statement/prospectus forms part. In addition, also on June 29, 2017, the special transaction committee unanimously recommended entry into the merger agreement amendment to the full board of directors and the full board of directors unanimously resolved to enter into the merger agreement amendment.

On June 30, 2017, the merger agreement amendment was executed by the respective parties thereto at approximately 4:00 p.m. Eastern Time, in advance the filing with the SEC of the registration statement of which this joint proxy statement/prospectus forms part.

The parties have continued and expect to continue regular discussions regarding the execution and timing of the business combination.

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Description of Discussions with Citi

The following is a brief summary of the discussions materials presented by Citi as part of a discussion with GPIA’s board of directors. The GPIA board of directors did not request, and Citi did not render any report, opinion as to the fairness or appraisal of the consideration or any other aspect of the merger to GPIA, Sponsor, Rimini Street or any other person. Because Citi did not render any report, opinion as to the fairness or appraisal of the consideration or any other matter, Citi did not follow the procedures that it would ordinarily follow in connection with rendering a report, opinion or appraisal. Citi conducted a review of information provided to it by GPIA, Sponsor and Rimini. Citi did not make, and the discussion with GPIA’s board of directors did not constitute, a recommendation to the GPIA board of directors with respect to the merger or any other matter.

The forward-looking statements included below are not a reliable indication of future results, and GPIA, Rimini Street and their respective management teams do not make any representation to readers of this joint proxy statement/prospectus concerning the ultimate performance of RMNI. Actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under the sections entitled “Risk Factors”, “Management’s Discussion and Analysis of Financial Condition and Results of Operations of Rimini Street” and elsewhere in this joint proxy statement/prospectus.

Citi’s Limited Role

GPIA retained Citi to act as capital markets advisor and financial advisor to GPIA’s board of directors. Citi did not render any report, opinion as to the fairness or appraisal of the consideration or any other aspect of the merger to GPIA, Sponsor, Rimini Street or any other person. Citi presented to GPIA’s board of directors on May 8, 2017 and on May 15, 2017. Citi presented its discussion materials for the information and assistance of the GPIA board of directors in connection with the GPIA board of directors’ consideration of the merger. Citi did not make, and its review of the information provided to it by GPIA, Sponsor and Rimini did not constitute, a recommendation to the GPIA board of directors with respect to the merger or any other matter.

Citi conducted a review of information provided to it by GPIA, Sponsor and Rimini Street. With the consent of GPIA’s board of directors, Citi assumed and relied upon, without independent verification, the accuracy and completeness of the information provided to it. In addition, with the consent of GPIA’s board of directors, Citi did not make any independent evaluation or appraisal of any of the assets or liabilities (contingent or otherwise) of GPIA, Sponsor or Rimini Street, nor was Citi furnished with any such evaluation or appraisal. With respect to the financial forecasts and estimates reviewed, Citi assumed, at the direction of GPIA’s board of directors, that they were reasonably prepared on a basis reflecting the best then-available estimates and judgments of the management of Rimini Street as to the future financial performance of Rimini Street.

The consideration to be paid by GPIA in the merger was determined through negotiations between GPIA and Rimini Street and the decision by GPIA to enter into the merger was solely that of GPIA’s board of directors. The discussions between GPIA’s board of directors and Citi was only one of many factors considered by GPIA’s board of directors in its evaluation of the merger. While Citi provided advice to GPIA’s board of directors during GPIA’s negotiations with Rimini Street, GPIA’s board of directors determined the consideration and Citi did not recommend any specific amount or type of consideration.

Summary of Discussion Materials

The following is a brief summary of the discussions between Citi and GPIA’s board of directors on May 8, 2017 and May 15, 2017.

Investment Highlights Summary and Financial Summary

Citi provided an overview summary of Rimini Street’s business to GPIA’s board of directors. Citi discussed that GPIA’s cash available following the closing of the business combination was anticipated to improve Rimini Street’s balance sheet, reduce leverage and position Rimini Street for accelerated growth. Furthermore, based on the following information provided to it by GPIA, Sponsor and Rimini: a post-combination pro forma enterprise value of $838 million; Rimini Street’s competitive advantages over competitors, including offering premium support at a significant discount to competing service providers and Rimini Street’s projected growth – Citi expressed its view that at a share price of $10.00 per share for the pro forma company would represent a meaningful discount to market comparables based on the comparable company discussion below.

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Discussion of Companies

Citi discussed with GPIA’s board of directors Citi’s comparison of selected financial data of Rimini Street provided to it by GPIA, Sponsor and Rimini Street with a set of companies operating in similar industries, consisting of: (a) certain well-known application software providers with revenue growth over 20%: (i) BlackLine, (ii) Kinaxis, (iii) Ultimate Software, (iv) Coupa, (v) salesforce.com and (vi) Workday (the “Application Software Peers – High Growth Companies”); (b) certain well-known application software providers with revenue growth below 20%: (i) AspenTech, (ii) CallidusCloud, (iii) Cornerstone OnDemand, (iv) Descartes, (v) Manhattan Associates, (vi) Microsoft, (vii) Oracle, (viii) PTC, (ix) SAP and (x) Tyler Technologies (the “Application Software Peers – Low Growth Companies”); (c) software companies with revenue growth over 20% and EBIT margin between 15% and 20%: (i) Atlassian, (ii) CyberArk, (iii) Kinaxis, (iv) Palo Alto Networks, (v) salesforce.com, (vi) ServiceNow and (vii) Ultimate Software (the “High Growth/Strong Margin Software Peer Companies”); and (d) companies with revenue growth over 20% that have services as a major component of total revenue: (i) EPAM, (ii) Globant and (iii) Luxoft (the “High Growth Services Companies”); (companies under categories (a) through (d), the “selected companies”). The preceding selected companies were chosen by Citi based on its experience in the industry and the data used to compare them to the selected financial data of Rimini Street was obtained from the following publicly available data sources: SEC filings and FactSet consensus estimates.

Citi presented, among other things, a comparable benchmarking review of key operating metrics (including consensus estimates of 2018 revenue growth rates and 2018 Adjusted EBITDA margins) and valuation multiples (including consensus estimates of 2018 revenue multiples and 2018 Adjusted EBITDA multiples) of Rimini Street as provided to it by GPIA, Sponsor and Rimini Street against the selected companies.

Citi reviewed the provided estimated 2018 revenue growth of 34.0% for Rimini compared to a median of 22.3% for the Application Software Peers – High Growth Companies, 7.5% for the Application Software Peers – Low Growth Companies, 21.9% for High Growth/Strong Margin Software Peer Companies and 20.4% for the High Growth Services Companies.

Citi reviewed the provided estimated 2018 Adjusted EBITDA margin of 19.2% for Rimini Street, compared to a median of 19.0% for the Application Software Peers – High Growth Companies, 35.1% for the Application Software Peers – Low Growth Companies, 24.9% for High Growth/Strong Margin Software Peer Companies and 18.4% for the High Growth Services Companies.

Citi reviewed the provided estimated 2018 revenue multiple for Rimini Street, compared to a median of 7.3x for the Application Software Peers – High Growth Companies, 4.8x for the Application Software Peers – Low Growth Companies, 5.4x for High Growth/Strong Margin Software Peer Companies and 2.3x for the High Growth Services Companies.

Citi reviewed the provided estimated 2018 Adjusted EBITDA multiple for Rimini Street of 14.8x, compared to a median Adjusted EBITDA multiple of 26.7x for the Application Software Peers – High Growth Companies, 19.0x for the Application Software Peers – Low Growth Companies, 23.2x for High Growth/Strong Margin Software Peer Companies and 12.7x for the High Growth Services Companies.

Discussion Implied Price Per Share of Combined Company (GPIA and Rimini Street) Compared to $10.00 Per Share

Based on the provided estimates for 2018 revenue and median revenue multiples of the selected companies, Citi discussed implied price per share premia to the assumed $10.00 per share for Rimini Street as combined with GPIA of 156% for Application Software Peers – High Growth Companies, 69% for the Application Software Peers – Low Growth Companies, 88% for High Growth/Strong Margin Software Peer Companies, and -17.4% for the High Growth Services Companies.

Based on the provided Rimini Street’s estimates for 2018 Adjusted EBITDA and median Adjusted EBITDA multiples of the selected companies, Citi discussed derived implied price per share premia to the assumed $10.00 per share for Rimini Street as combined with GPIA of 80.0% for Application Software Peers – High Growth Companies, 28% for the Application Software Peers – Low Growth Companies, 56% for High Growth/Strong Margin Software Peer Companies , and -14% for the High Growth Services Companies.

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Miscellaneous

Citi and/or certain of its affiliates, in connection with Citi’s engagement as our capital markets and financial advisor and in its capacity as underwriter in connection with our IPO, is entitled to $6,037,500 of deferred underwriting fees upon the consummation of our initial business combination. Additionally, under the terms of Citi’s engagement, GPIA agreed to reimburse Citi for its reasonable expenses, including fees, disbursements and other charges of counsel, and to indemnify Citi and related parties against liabilities, including liabilities under federal securities laws, relating to, or arising out of, its engagement. In the ordinary course of business, Citi and its affiliates may hold or trade, for their own accounts and the accounts of their customers, securities of GPIA and, accordingly, may at any time hold a long or short position in such securities.

GPIA selected Citi as its financial advisor in connection with the transaction because Citi is an internationally recognized investment banking firm with substantial experience in similar transactions and extensive familiarity and experience with SPAC-vehicles and related capital markets considerations.

GPIA’s Board of Directors’ and the Special Transaction Committee’s Reasons for the Business Combination

In seeking a candidate for a business combination, GPIA set out to target attractive investment opportunities in the consumer and services sectors in the United States and Europe with long-term growth potential. As identified in our initial public offering prospectus, our board of directors and management developed a set of general criteria and guidelines they believed to be important in evaluating a prospective target business, including, but not limited to, consideration of a business or businesses with one or more of the following qualities (listed in no particular order):

exhibit unrecognized value or other characteristics, such as observable competitive advantages, and multiple pathways to growth that we believe have been mis-evaluated by the marketplace based on our company specific analysis and due diligence review; and
will offer risk-adjusted equity return on investment for our shareholders. Returns will be evaluated based on (i) the potential for organic growth in cash flows, (ii) the opportunity for follow-on acquisitions and (iii) the prospects for creating value through new initiatives. Potential upside from growth in the target business and an improved capital structure will be weighed against any identified downside risks,

In addition to the guidelines set forth above, our board of directors and management refined their evaluation criteria using investor feedback received during the proposed acquisition of World Kitchen (as described in the section “— Background to the Business Combination ”) which was terminated in November 2016. Specifically, our board of directors and management have evaluated the extent to which businesses:

merit an equity valuation at transaction closing which is significantly larger than that of World Kitchen, as opposed to solely the potential to grow into a larger equity valuation in future years; and
achieve significant growth at time of transaction closing, as opposed to solely the potential for high growth in future years.

Since its initial public offering in May 2015, GPIA has been in search of a business combination partner that meets its general screening criteria. To determine whether GPIA should pursue a business combination with Rimini Street, GPIA, as part of its comprehensive due diligence review of Rimini Street, retained third-party advisors who conducted and advised GPIA on legal matters, including litigation, financial, tax and commercial matters, property and casualty insurance, employee benefits and technology, respectively. Additionally, GPIA conducted numerous telephonic and on-site due diligence sessions with Rimini Street’s management and operations teams. GPIA’s management team conducted its own extensive financial analyses of Rimini Street, its current business and its future prospects.

GPIA’s board of directors and the special transaction committee considered a wide variety of factors in connection with their respective evaluations of the business combination. In light of the complexity of those factors, GPIA’s board of directors and the special transaction committee, in each case, as a whole, did not consider it practicable to, nor did it attempt to, quantify or otherwise assign relative weights to the specific factors it took into account in reaching their respective decisions. Individual members of GPIA’s board of directors and the special transaction committee may have given different weight to different factors. This explanation of GPIA’s reasons for

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the board of directors’ and the special transaction committee’s approval of the business combination, and all other information presented in this section, is forward-looking in nature and, therefore, should be read in light of the factors discussed under “ Cautionary Statement Regarding Forward-Looking Statements ”.

In evaluating the business combination, GPIA’s board of directors and the special transaction committee consulted with GPIA management and representatives of PricewaterhouseCoopers LLP, Willis Towers Watson, Performance Improvement Partners LLC, Citi, Maples and Skadden. The special transaction committee, in recommending the business combination to the full board of directors, and the board of directors, in recommending that shareholders vote in favor of adoption of the merger agreement, considered a number of factors, including the following (which factors are not necessarily presented in order of relative importance):

History of Significant Growth . Our board of directors and the special transaction committee considered that Rimini Street has been a high growth company with strong gross margin (58% for the year ended December 31, 2016 (actual)) targeting a large addressable market and noted that Rimini Street had experienced 45 consecutive quarters of revenue growth.
Predictable Business Model . Our board of directors and the special transaction committee considered the predictability of Rimini Street’s historical revenue stream, noting that approximately 100% of such revenue was subscription and recurring revenue-based, with over 90% net renewal revenue.
Size of Market Opportunity . Our board of directors and the special transaction committee considered the potential size of the market in which Rimini Street could seize future opportunities, focusing on an $81 billion revenue total addressable market for on-premise maintenance opportunities and $6 billion revenue total addressable market for supplemental cloud premium maintenance opportunities.
Size of Post-Combination Company . Our board of directors and the special transaction committee considered that the transaction implied an enterprise value of approximately $837 million and an equity value of $854 million for Rimini Street, to provide our shareholders with the opportunity of go-forward ownership in a public company with a larger market capitalization.
Opportunistic Timing & Discounted Valuation . Our board of directors and the special transaction committee considered that the proposed transaction values Rimini Street at a meaningful discount to comparable public companies. This attractive purchase valuation represents an approximately 50% or greater discount to small / mid cap enterprise resource planning peers.
Financial Terms of the Merger Agreement. Our board of directors and the special transaction committee considered the amount of GPIA stock to be issued as consideration, and also noted that the value of RMNI’s common stock to be paid to Rimini Street’s existing common stockholders upon consummation of the business combination could be significantly more or less than the $10.00 implied value per share immediately prior to the announcement of the entry into the merger agreement based on any fluctuations in the market price of GPIA’s common shares.
Other Terms and Conditions of the Merger Agreement. Our board of directors and the special transaction committee considered the other terms and conditions of the merger agreement, including the nature and scope of the closing conditions and the likelihood of obtaining any necessary regulatory approvals.
Pro Forma Ownership. Our board of directors took note of the fact that following completion of the business combination and assuming there are no redemptions of public shares, GPIA’s existing shareholders, including the Sponsor, are expected to retain an ownership interest of approximately 28.5% of the outstanding common stock of RMNI, and the stockholders of Rimini Street immediately prior to the consummation of the mergers are expected to own approximately 71.5% of the outstanding common stock of RMNI. In addition, our board of directors took note of the fact that, if holders of 90.5% of the outstanding GPIA public shares elect to redeem their ordinary shares in connection with the mergers, GPIA’s existing shareholders, including the Sponsor, are expected to retain an ownership interest of approximately 15.6% of the outstanding common stock of RMNI, and the stockholders of Rimini Street immediately prior to the consummation of the mergers are expected to own approximately 84.4% of the outstanding common stock of RMNI, in each case on the assumptions described elsewhere in this joint proxy statement/prospectus. The percentage ownership figures referred to in this paragraph have been updated to reflect the current transaction structure and timing. Our board of directors is aware of these updated figures.

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Presentations by GPIA’s Financial Advisor. Our board of directors and the special transaction committee considered the presentation of Citi in connection with the business combination. The presentation by Citi is more fully described above under the caption “ Description of Discussion Materials of Citi ”.

The GPIA board of directors considered each of the above factors and elected to pursue a transaction with Rimini Street primarily because, in its judgment, Rimini Street presented a unique business combination opportunity given Rimini Street’s year-over-year growth rate and low valuation multiple compared to public company peers. The GPIA board of directors believes that, in light of the foregoing, the business combination with Rimini Street presents an opportunity to increase shareholder value.

The special transaction committee and GPIA’s board of directors also gave consideration to the following negative factors (which are more fully described in the “ Risk Factors ” section of this joint proxy statement/prospectus), although not weighted or presented in any order of significance:

Rimini Street is involved in ongoing litigation with Oracle, without near term visibility as to litigation outcome;
Rimini Street has sizeable debt in place, not all of which will be repaid at consummation of the business combination;
Rimini Street may face increased competition in the marketplace as its business grows in share and prominence, and as competitors are attracted to the market opportunity;
Rimini Street may experience an increase in the cost of delivering its service based on the cost of hiring experienced software engineers;
Rimini Street could face impediments to its continued growth if it is unable to continue hiring effective salespeople to win new business, or if its existing salespeople experience lower productivity;
Rimini Street faces a business threat of customer migration to enterprise software vendors, products and releases for which it does not provide software products or services, as customers may choose to abandon their existing enterprise software solutions in favor of such offerings;
Rimini Street could face a business risk from an intellectual property perspective if customers’ software licenses do not permit Rimini Street to service the software;
Rimini Street could be challenged to sufficiently service new software applications as the underlying technology continues to evolve; and
Rimini Street could experience slower growth if customers upgrade or otherwise renew their maintenance agreements with their legacy software vendor.

After considering these and other factors, the special transaction committee and our board of directors concluded that these risks could be managed or mitigated by GPIA or were unlikely to have a material impact on the business combination with GPIA, and that overall, the potentially negative factors or risks associated with the business combination were outweighed by the potential benefits of the business combination to GPIA and its shareholders. The special transaction committee and our board of directors realized that there can be no assurance about future results, including results considered or expected as disclosed in the foregoing reasons.

The foregoing discussion is not meant to be exhaustive, but summarizes many of the material factors considered by the special transaction committee and the GPIA board of directors in their respective consideration of the merger. In view of the variety of factors considered by the special transaction committee and the GPIA board of directors and the complexity of these factors, the special transaction committee and the GPIA board of directors did not find it practicable to, and did not, quantify or otherwise assign relative weights to the foregoing factors in reaching their respective determinations and recommendations. Moreover, each member of the special transaction committee and the GPIA board of directors applied his own personal business judgment to the process and may have assigned different weights to different factors. The special transaction committee recommended that the board of directors approve the proposed business combination and all related documentation based upon the totality of the information presented to and considered by the special transaction committee. The GPIA board of directors unanimously approved the merger agreement, the business combination and the other transactions contemplated by the merger agreement and recommends that shareholders adopt the merger agreement based upon the totality of the information presented to and considered by the board of directors.

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The existence of financial and personal interests of GPIA’s directors may result in a conflict of interest on the part of one or more of the directors between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “— Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of these matters.

Projected Financial Information

Rimini Street does not normally publicly disclose long-term projections as to future revenue, earnings or other results due to, among other reasons, the uncertainty, unpredictability and subjectivity of the underlying assumptions and estimates. However, in connection with the evaluation of the business combination, GPIA reviewed certain non-public financial information provided by Rimini Street management and incorporated such information into its financial forecasts. The forecasts reflect certain adjustments made by GPIA management, which were based on GPIA’s due diligence of Rimini Street and certain assumptions regarding the projected financial performance of Rimini Street through 2018. Copies of the non-public financial information and forecasts, and GPIA management’s adjustment thereof, were also provided to Citi. A summary of such prospective financial information is included in the table below.

The projections below are not a reliable indication of future results, and GPIA, Rimini Street and their respective management teams do not endorse the projections as such, and they do not make any representation to readers of this joint proxy statement/prospectus concerning the ultimate performance of RMNI. GPIA is including these projections in this joint proxy statement/prospectus solely because it was among the financial information made available to the board of directors in connection with their evaluation of the business combination, and not to influence your decision on how to vote on any proposal. Actual results may differ materially from those projected below as a result of many factors, including those discussed under the sections titled “ Risk Factors ”, “ Management’s Discussion and Analysis of Financial Condition and Results of Operations of Rimini Street ” and elsewhere in this joint proxy statement/prospectus.

The following table summarizes the historical results and future projections used by the board of directors for purposes of its consideration of the merger:

 
Rimini Street
Historical Results
Year Ended December 31,
Rimini Street
Projections
Year Ending December 31,
 
2014 (1)
2015 (1)
2016 (2)
2017E
2018E
 
(in thousands)
Revenue
$
85,348
 
$
118,163
 
$
160,138
 
$
219,907
 
$
294,716
 
Cost of Revenue
 
45,258
 
 
52,766
 
 
67,045
 
 
88,007
 
 
116,451
 
Gross Profit
 
40,090
 
 
65,396
 
 
93,093
 
 
131,901
 
 
178,265
 
Adjusted EBITDA
 
(13,791
)
 
(6,547
)
 
(12,887
)
 
26,314
 
 
56,700
 
Capital Expenditures
$
(1,679
)
$
(1,721
)
$
(1,521
)
$
(1,990
)
$
(2,084
)
Foreign Income Taxes
 
(980
)
 
(1,451
)
 
(1,532
)
 
(1,829
)
 
(1,891
)
Adjusted Net Working Capital Changes
 
20,513
 
 
18,581
 
 
53,952
 
 
16,796
 
 
18,948
 
Adjusted Unlevered Free Cash Flow
 
4,063
 
 
8,862
 
 
38,012
 
 
39,292
 
 
71,674
 
(1) The Adjusted EBITDA for the years ended December 31, 2014 and 2015 that was presented to the GPIA board of directors as part of their review of the proposed transaction did not give effect to certain subsequent reclassifications as reflected in the financial information of Rimini Street included elsewhere in this joint proxy statement/prospectus.
(2) The financial information for the year ended December 31, 2016 provided by Rimini Street that was presented to the GPIA board of directors as part of their review of the proposed transaction was not final and was unaudited. Accordingly, the financial information set forth above (as well as the projections based upon such information) may be different from the final audited financial statements for Rimini Street for the year ended December 31, 2016 included elsewhere in this joint proxy statement/prospectus.

The foregoing projections include “Adjusted EBITDA” which is a non-GAAP financial measure. This non-GAAP financial measure is a key measure used to evaluate profitability and operating performance. GPIA believes such measure, when viewed in conjunction with its consolidated financial statements, consistency and comparability with Rimini Street’s past financial performance, facilitates period-to-period comparisons of operating performance and may facilitate comparisons with other companies. GPIA uses this measure in conjunction with GAAP operating performance measures as part of its overall assessment of Rimini Street’s performance.

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Undue reliance should not be placed on these measures as Rimini Street’s only measures of operating performance, nor should such measures be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP. Non-GAAP financial measures may not be comparable to similarly titled amounts used by other companies. The following table provides a reconciliation of such non-GAAP financial measures to GAAP financial measures.

Non-GAAP Reconciliation
Rimini Street
Historical Results
Year Ended December 31,
Rimini Street
Projections
Year Ending December 31,*
 
2014
2015
2016**
2017E
2018E
 
(in millions)
Net Income / (Loss)
 
 (128
)
 
  (45
)
 
  (22
)
 
 (108
)
 
  21
 
Depreciation and Amortization
 
2
 
 
1
 
 
2
 
 
2
 
 
2
 
Interest Expense, Net
 
1
 
 
1
 
 
20
 
 
130
 
 
6
 
Income Taxes
 
1
 
 
1
 
 
2
 
 
2
 
 
2
 
EBITDA
 
(124
)
 
(42
)
 
1
 
 
26
 
 
30
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
External Litigation Related Expenses, Net of Insurance Proceeds
 
103
 
 
33
 
 
(29
)
 
(4
)
 
20
 
Stock Based Compensation Expense
 
2
 
 
2
 
 
2
 
 
4
 
 
6
 
Non-recurring Expenses
 
5
 
 
 
 
 
 
 
 
 
Warrant Expense
 
 
 
 
 
12
 
 
 
 
 
Adjusted EBITDA
 
(14
)
 
(7
)
 
(13
)
 
26
 
 
57
 
* Amounts may not sum (and may not match projections set forth in the previous charts included in this “ Projected Financial Information section) due to rounding.
** The financial information for the year ended December 31, 2016 provided by Rimini Street that was presented to the GPIA board of directors as part of their review of the proposed transaction was not final and was unaudited. Accordingly, the financial information set forth above (as well as the projections based upon such information) may be different from the final audited financial statements for Rimini Street for the year ended December 31, 2016 included elsewhere in this joint proxy statement/prospectus.

Satisfaction of 80% Test

It is a requirement under our memorandum and articles of association that any business acquired by GPIA have a fair market value equal to at least 80% of the balance of the funds in the trust account at the time of the execution of a definitive agreement for an initial business combination. Based on the financial analysis of Rimini Street generally used to approve the transaction, the GPIA board of directors determined that this requirement was met. The board determined that the consideration being paid in the business combination, which amount was negotiated at arms-length, were fair to and in the best interests of GPIA and its shareholders and appropriately reflected Rimini Street’s value. In reaching this determination, the board concluded that it was appropriate to base such valuation in part on qualitative factors such as management strength and depth, competitive positioning, customer relationships, and technical skills, as well as quantitative factors such as Rimini Street’s historical growth rate and its potential for future growth in revenue and profits. GPIA’s board of directors believes that the financial skills and background of its members qualify it to conclude that the acquisition of Rimini Street met this requirement.

Interests of GPIA’s Directors and Officers in the Business Combination

When you consider the recommendation of GPIA’s board of directors in favor of approval of the business combination proposal, you should keep in mind that GPIA’s initial shareholders, including its directors and executive officers, have interests in such proposal that are different from, or in addition to, those of GPIA shareholders and warrant holders generally. These interests include, among other things, the interests listed below:

If we do not consummate a business combination transaction by November 27, 2017, we would cease all operations except for the purpose of winding up, redeeming all of the outstanding public shares for cash and, subject to the approval of our remaining shareholders and our board of directors, dissolving and liquidating, subject in each case to our obligations under the Cayman Islands Companies Law to provide for claims of creditors and the requirements of other applicable law. In such event, the 4,312,500 founder

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shares owned by our initial shareholders would be worthless because following the redemption of the public shares, we would likely have few, if any, net assets and because our initial shareholders have agreed to waive their rights to liquidating distributions from the trust account with respect to the founder shares if we fail to complete a business combination within the required period. The Sponsor purchased the founder shares prior to our initial public offering for an aggregate purchase price of $25,000, or approximately $0.006 per share. Such founder shares had an aggregate market value of $43,081,875 based upon the closing price of $9.99 per share on the NASDAQ on June 29, 2017, the most recent closing price.

In addition, simultaneously with the closing of our initial public offering, GPIA consummated the sale of 6,062,500 private placement warrants at a price of $1.00 per warrant in a private placement to the Sponsor. In addition, an affiliate of the Sponsor owns 52,100 warrants that were acquired by such affiliate in the secondary market following our initial public offering. The warrants are each exercisable for one ordinary share at $11.50 per share. If we do not consummate a business combination transaction by November 27, 2017, then the aggregate proceeds of $6,062,500 from the sale of the private placement warrants will be part of the liquidating distribution to the public shareholders and the warrants held by the Sponsor and its affiliate will be worthless. The warrants held by the Sponsor and its affiliate had an aggregate market value of $4,402,512 based upon the closing price of $0.72 per warrant on the NASDAQ on June 29, 2017, the most recent closing price.
Antonio Bonchristiano, our Chief Executive Officer and Chief Financial Officer, will be a director of RMNI after the consummation of the business combination. As such, in the future he will receive any cash fees, stock options, stock awards or other remuneration that the RMNI board of directors determines to pay to him.
In order to protect the amounts held in the trust account, the Sponsor has agreed that it will be liable to us if and to the extent any claims by a vendor for services rendered or products sold to us, or a prospective target business with which we have discussed entering into a transaction agreement, reduce the amount of funds in the trust account. This liability will not apply with respect to any claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in the trust account or to any claims under our indemnity of the underwriters of this offering against certain liabilities, including liabilities under the Securities Act.
Following consummation of the business combination, the Sponsor would be entitled to the repayment of any working capital loan and advances that have been made to GPIA and remain outstanding. The Sponsor has previously made working capital loans to us and may, in the future, make further working capital loans to us. As of March 31, 2017, the Sponsor has committed to provide loans to GPIA up to an aggregate of $3,400,000 in order to finance transaction costs in connection with a business combination. The loans are evidenced by a promissory note, are non-interest bearing, unsecured and will only be repaid upon the completion of a business combination. As of March 31, 2017, $2,682,893 was outstanding under the loans. Up to $1,000,000 of working capital loans may be convertible into warrants of RMNI at a price of $1.00 per warrant at the option of the Sponsor. Such warrants would be identical to the private placement warrants. The terms of such working capital loans have not been determined, and no written agreements exist with respect to the working capital loans. If we do not complete an initial business combination within the required period, we may use a portion of our working capital held outside the trust account to repay the working capital loans, but no proceeds held in the trust account would be used to repay the working capital loans.
Following consummation of the business combination, the Sponsor, our officers and directors and their respective affiliates would be entitled to reimbursement for any reasonable out-of-pocket expenses related to identifying, investigating and consummating an initial business combination, and repayment of any other loans, if any, and on such terms as to be determined by GPIA from time to time, made by the Sponsor or certain of our officers and directors to finance transaction costs in connection with an intended initial business combination. However, if we fail to consummate a business combination within the required period, the Sponsor and our officers and directors and their respective affiliates will not have any claim against the trust account for reimbursement. As of March 31, 2017, the Sponsor has committed to provide loans to GPIA up to an aggregate of $3,400,000 in order to finance transaction costs in connection with a business combination. The loans are evidenced by a promissory note, are non-interest bearing, unsecured

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and will only be repaid upon the completion of a business combination. As of March 31, 2017, $2,682,893 was outstanding under the loans. Up to $1,000,000 of working capital loans may be convertible into warrants of the post business combination entity at a price of $1.00 per warrant at the option of the Sponsor.

Recommendation of GPIA’s Board of Directors

After careful consideration of the matters described above, and particularly Rimini Street’s historical financial performance, potential for growth and profitability, the experience of Rimini Street’s management, Rimini Street’s competitive positioning, its customer relationships and technical skills, GPIA’s board of directors determined unanimously that each of the business combination proposal, the domestication proposal and the adjournment proposal, if presented, are in the best interests of GPIA and its shareholders. GPIA’s board of directors has approved and declared advisable and unanimously recommends that you vote or give instructions to vote “FOR” each of these proposals.

The foregoing discussion of the information and factors considered by the GPIA board of directors is not meant to be exhaustive but includes the material information and factors considered by the GPIA board of directors.

Expected Accounting Treatment of the Mergers

The mergers will be accounted for as a reverse recapitalization in accordance with GAAP. If the merger agreement is approved by the shareholders of GPIA and Rimini Street, Rimini Street will have the right to appoint seven of the nine members of the board of directors of RMNI, and the current stockholders of Rimini Street are expected to own at least 70% of the outstanding common stock of RMNI, the combined company. Accordingly, the mergers will be accounted for as a reverse recapitalization, whereby Rimini Street will be the acquirer for accounting and financial reporting purposes and GPIA will be the legal acquirer. Under a reverse recapitalization, the shares of GPIA remaining after redemptions by public shareholders, and the unrestricted net cash and cash equivalents of GPIA on the date that the mergers are consummated, will be accounted for as a capital infusion into Rimini Street whereby all of the expenses incurred by Rimini Street related to the business combination will be charged to additional paid-in capital upon consummation of the mergers.

Regulatory Matters

The business combination and the transactions contemplated by the merger agreement are not subject to any additional federal or state regulatory requirement or approval, except for (i) required filings under the HSR Act and (ii) filings with the Cayman Islands, the State of Delaware and the State of Nevada necessary to effectuate the transactions contemplated by the merger agreement. On June 28, 2017, GPIA and Rimini Street received early termination of the waiting period under the HSR Act. On June 2, 2017, Rimini Street and GPIA made the filings required to be made under the HSR Act. On June 28, 2017, the FTC notified Rimini Street that early termination of the waiting period under the HSR Act was granted, effective immediately. Therefore, the closing condition of the merger agreement relating to the expiration or termination of the applicable waiting period under the HSR Act has been satisfied.

Vote Required for Approval

The approval of the business combination proposal requires an ordinary resolution, being the affirmative vote of the holders of a majority of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

Recommendation of the GPIA Board of Directors

THE GPIA BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT THE GPIA
SHAREHOLDERS VOTE “FOR” THE APPROVAL OF THE BUSINESS COMBINATION PROPOSAL.

The existence of financial and personal interests of one or more of GPIA’s directors may result in a conflict of interest between what such director(s) may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ —Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

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GPIA DOMESTICATION PROPOSAL

Overview

As discussed in this joint proxy statement/prospectus, if the business combination proposal is approved, then GPIA is asking its shareholders to approve the domestication proposal. Under the merger agreement, the approval of the domestication proposal is also a condition to the consummation of the first merger. If, however, the domestication proposal is approved, but the business combination proposal is not approved, then neither the domestication nor the business combination will be consummated.

As a condition to closing the first merger pursuant to the terms of the merger agreement, the board of directors of GPIA has unanimously approved a change of GPIA’s jurisdiction of incorporation by deregistering as an exempted company in the Cayman Islands and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware (the “domestication”). To effect the domestication, GPIA will file a notice of deregistration with the Cayman Islands Registrar of Companies, together with the necessary accompanying documents, and file a certificate of incorporation and a certificate of corporate domestication with the Secretary of State of the State of Delaware, under which GPIA will be domesticated and continue as a Delaware corporation. On the effective date of the domestication, each currently issued and outstanding ordinary share, par value $0.0001 per share, of GPIA will automatically convert by operation of law, on a one-for-one basis, into shares of common stock, par value $0.0001 per share, of GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), which will be renamed “Rimini Street, Inc.” immediately after consummation of the second merger. Similarly, outstanding warrants of GPIA will become warrants to acquire the corresponding shares of RMNI common stock and no other changes will be made to the terms of any outstanding warrants as a result of the domestication.

The domestication proposal, if approved, will approve a change of GPIA’s jurisdiction of incorporation from the Cayman Islands to the State of Delaware. Accordingly, while GPIA is currently governed by the Cayman Islands Companies Law, upon domestication, RMNI will be governed by the DGCL. We encourage shareholders to carefully consult the information set out below under “ Comparison of Corporate Governance and Shareholder Rights ”. Additionally, we note that if the domestication proposal is approved, then GPIA will also ask its shareholders to approve the organizational documents proposals (discussed below), which, if approved, will replace our current memorandum and articles of association under the Cayman Islands Companies Law (the “Existing Organizational Documents”) with a new certificate of incorporation and bylaws of RMNI under the DGCL (the “Proposed Organizational Documents”). The Proposed Organizational Documents differ in certain material respects from the Existing Organizational Documents and we encourage shareholders to carefully consult the information set out below under “GPIA Organizational Documents Proposals”, the Existing Organizational Documents of GPIA, attached hereto as Annex C and the Proposed Organizational Documents of RMNI, attached hereto as Annex D and Annex E.

Reasons for the Domestication

Our board of directors believes that there are significant advantages to RMNI that will arise as a result of a change of domicile to Delaware. Further, our board of directors believes that any direct benefit that Delaware law provides to a corporation also indirectly benefits the stockholders, who are the owners of the corporation. The board of directors believes that there are several reasons why a reincorporation in Delaware is in the best interests of GPIA and its shareholders. As explained in more detail below, these reasons can be summarized as follows:

Prominence, Predictability, and Flexibility of Delaware Law . For many years Delaware has followed a policy of encouraging incorporation in its state and, in furtherance of that policy, has been a leader in adopting, construing, and implementing comprehensive, flexible corporate laws responsive to the legal and business needs of corporations organized under its laws. Many corporations have chosen Delaware initially as a state of incorporation or have subsequently changed corporate domicile to Delaware. Because of Delaware’s prominence as the state of incorporation for many major corporations, both the legislature and courts in Delaware have demonstrated the ability and a willingness to act quickly and effectively to meet changing business needs. The DGCL is frequently revised and updated to accommodate changing legal and business needs and is more comprehensive, widely used and interpreted than other state corporate laws. This favorable corporate and regulatory environment is attractive to businesses such as ours. Based on publicly available data, over half of publicly-traded corporations in the United States and 60% of all Fortune 500 companies are incorporated in Delaware.
Well-Established Principles of Corporate Governance . There is substantial judicial precedent in the Delaware courts as to the legal principles applicable to measures that may be taken by a corporation and

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to the conduct of a company’s board of directors, such as under the business judgment rule and other standards. Because the judicial system is based largely on legal precedents, the abundance of Delaware case law provides clarity and predictability to many areas of corporate law. Such clarity would be advantageous to RMNI, its board of directors and management to make corporate decisions and take corporate actions with greater assurance as to the validity and consequences of those decisions and actions. Further, investors and securities professionals are generally more familiar with Delaware corporations, and the laws governing such corporations, increasing their level of comfort with Delaware corporations relative to other jurisdictions. The Delaware courts have developed considerable expertise in dealing with corporate issues, and a substantial body of case law has developed construing Delaware law and establishing public policies with respect to corporate legal affairs. Moreover, Delaware’s vast body of law on the fiduciary duties of directors provides appropriate protection for RMNI’s stockholders from possible abuses by directors and officers.

Increased Ability to Attract and Retain Qualified Directors . Reincorporation from the Cayman Islands to Delaware is attractive to directors, officers, and stockholders alike. RMNI’s incorporation in Delaware may make RMNI more attractive to future candidates for our board of directors, because many such candidates are already familiar with Delaware corporate law from their past business experience. To date, we have not experienced difficulty in retaining directors or officers, but directors of public companies are exposed to significant potential liability. Thus, candidates’ familiarity and comfort with Delaware laws—especially those relating to director indemnification (as discussed below)—draw such qualified candidates to Delaware corporations. Our board of directors therefore believes that providing the benefits afforded directors by Delaware law will enable RMNI to compete more effectively with other public companies in the recruitment of talented and experienced directors and officers. Moreover, Delaware’s vast body of law on the fiduciary duties of directors provides appropriate protection for our stockholders from possible abuses by directors and officers.

The frequency of claims and litigation pursued against directors and officers has greatly expanded the risks facing directors and officers of corporations in carrying out their respective duties. The amount of time and money required to respond to such claims and to defend such litigation can be substantial. While both Cayman and Delaware law permit a corporation to include a provision in its governing documents to reduce or eliminate the monetary liability of directors for breaches of fiduciary duty in certain circumstances, we believe that, in general, Delaware law is more developed and provides more guidance than Cayman law on matters regarding a company’s ability to limit director liability. As a result, we believe that the corporate environment afforded by Delaware will enable the surviving corporation to compete more effectively with other public companies in attracting and retaining new directors.

Expected Accounting Treatment of the Domestication

There will be no accounting effect or change in the carrying amount of the consolidated assets and liabilities of GPIA as a result of domestication. The business, capitalization, assets and liabilities and financial statements of RMNI immediately following the domestication will be the same as those of GPIA immediately prior to the domestication.

Vote Required for Approval

The approval of the domestication proposal requires a special resolution under the Cayman Islands Companies Law, being the affirmative vote of the holders of at least two-thirds of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

The domestication proposal is conditioned on the approval of the business combination proposal. Therefore, if the business combination proposal is not approved, the domestication proposal will have no effect, even if approved by holders of GPIA ordinary shares.

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Recommendation of the GPIA Board of Directors

THE GPIA BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT GPIA
SHAREHOLDERS VOTE “FOR” THE APPROVAL OF THE GPIA DOMESTICATION PROPOSAL.

The existence of financial and personal interests of one or more of GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

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GPIA ORGANIZATIONAL DOCUMENTS PROPOSALS

If the domestication proposal is approved and the business combination is to be consummated, GPIA will replace the current amended and restated memorandum of association of GPIA under the Cayman Islands Companies Law (the “Existing Memorandum”) and the current articles of association of GPIA (the “Existing Articles” and, together with the Existing Memorandum, the “Existing Organizational Documents”), in each case, under the Cayman Islands Companies Law, with a new certificate of incorporation (the “Proposed Charter”) and bylaws (the “Proposed Bylaws” and, together with the Proposed Charter, the “Proposed Organizational Documents”) of RMNI, in each case, under the DGCL.

GPIA’s shareholders are asked to consider and vote upon and to approve by special resolution seven separate proposals (collectively, the “organizational documents proposals”) in connection with the replacement of the Existing Organizational Documents with the Proposed Organizational Documents. The organizational documents proposals are conditioned on the approval of the domestication proposal, and, therefore, also conditioned on approval of the GPIA business combination proposal. Therefore, if the GPIA business combination proposal and the domestication proposal are not approved, the organizational documents proposals will have no effect, even if approved by holders of GPIA ordinary shares.

The Proposed Organizational Documents differ materially from the Existing Organizational Documents. The following table sets forth a summary of the principal changes proposed to be made between our existing memorandum and articles of association and the proposed certificate of incorporation and proposed bylaws for RMNI. This summary is qualified by reference to the complete text of the Existing Organizational Documents of GPIA, attached to this joint proxy statement/prospectus as Annex C, the complete text of the proposed charter, a copy of which is attached to this joint proxy statement/prospectus as Annex D and the complete text of the proposed bylaws, a copy of which is attached to this joint proxy statement/prospectus as Annex E. All stockholders are encouraged to read each of the Proposed Organizational Documents in its entirety for a more complete description of its terms. Additionally, as the Existing Organizational Documents are governed by the Cayman Islands Companies Law and the Proposed Organizational Documents will be governed by the DGCL, we encourage shareholders to carefully consult the information set out under the “ Comparison of Corporate Governance and Shareholder Rights ” section of this joint proxy statement/prospectus.

 
Existing Organizational Documents
Proposed Organizational Documents
Authorized Shares
( Organizational Documents
Proposal A )
The Existing Organizational Documents authorize 420,000,000 shares, consisting of 400,000,000 common shares and 20,000,000 preferred shares.
The Proposed Organizational Documents authorize 1,100,000,000 shares, consisting of 1,000,000,000 shares of common stock and 100,000,000 shares of preferred stock.
 
 
 
 
See paragraph 5 of our current memorandum and articles of association.
See Article IV of the Proposed Charter.
 
 
 
Authorize the Board of Directors to Issue Preferred Stock Without Stockholder Consent
( Organizational Documents
Proposal B )
The Existing Organizational Documents authorize the issuance of 20,000,000 preferred shares with such designation, rights and preferences as may be determined from time to time by our board of directors. Accordingly, our board of directors is empowered under the Existing Organizational Documents, without shareholder approval, to issue preferred shares with dividend, liquidation, redemption, voting or other rights which could adversely affect the voting power or other rights of the holders of ordinary shares.
The Proposed Organizational Documents authorize the board of directors to issue all or any shares of preferred stock in one or more classes or series and to fix for each such class or series such voting powers, full or limited, or no voting powers, and such distinctive designations, preferences and relative, participating, optional or other special rights and such qualifications, limitations or restrictions thereof, as the board of directors may determine.
 
 
 
 
See paragraph 5 and Article 3 of our current memorandum and articles of association.
See Article IV of the Proposed Charter.

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Existing Organizational Documents
Proposed Organizational Documents
Removal of Directors Only For Cause
( Organizational Documents
Proposal C )
Upon the first to occur of the consummation of any business combination and the distribution of the trust fund, the Existing Organizational Documents provide that the directors of GPIA may be removed by an ordinary resolution (being a resolution passed by a simple majority of the shareholders as, being entitled to do so, vote at a general meeting and includes an unanimous written resolution).
   
See Article 28 of our current memorandum and articles of association.
The Proposed Organizational Documents provide that the directors of RMNI may only be removed for cause. Additionally, a decrease in the size of the board of directors will not have the effect of removing any incumbent director before his or her term expires.
   
See Article V of the Proposed Charter and Section 3.11 of the Proposed Bylaws.
 
 
 
Ability of Stockholders to Call a Special Meeting
( Organizational Documents

Proposal D )
The Existing Organizational Documents provide that the board of directors shall, on a shareholders’ requisition, proceed to convene an extraordinary general meeting of GPIA, provided that the requesting shareholder holds not less than 10% in par value of the issued shares entitled to vote at a general meeting.
   
See Article 19 of our current memorandum and articles of association.
The Proposed Organizational Documents do not permit the stockholders of RMNI to call a special meeting.
   
See Article VIII of the Proposed Charter.
 
 
 
Shareholder/Stockholder Written Consent In Lieu of a Meeting
( Organizational Documents
Proposal E )
The Existing Organizational Documents provide that resolutions may be passed by a vote in person, by proxy at a general meeting, or by unanimous written resolution.
The Proposed Organizational Documents allow stockholders to vote in person or by proxy at a meeting of stockholders, but prohibit the ability of stockholders to act by written consent in lieu of a meeting.
 
 
 
 
See Article 1 of our current memorandum and articles of association.
See Article VIII of the Proposed Charter.
 
 
 
Amendments of Organizational Documents
( Organizational Documents
Proposal F )
The Existing Organizational Documents require a special resolution (being either (i) a resolution passed by a majority of at least two-thirds of GPIA’s shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting of which notice specifying the intention to propose the resolution as a special resolution or (ii) a unanimous written resolution of GPIA’s shareholders) to amend the Existing Organizational Documents.
The Proposed Organizational Documents require the affirmative vote of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of RMNI’s then outstanding capital stock entitled to vote to amend either of the Proposed Charter (other than the articles thereof relating to RMNI’s name, address and registered office, purpose and matters related to RMNI’s common and preferred stock) and the Proposed Bylaws, subject to certain exceptions.
 
 
 
 
See Article 17 of our current memorandum and articles of association.
See Article XI of the Proposed Charter and Article Tenth of the Proposed Bylaws.

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Existing Organizational Documents
Proposed Organizational Documents
Corporate Name
( Organizational Documents
Proposal G )
The Existing Organizational Documents provide the name of the company is “GP Investments Acquisition Corp.”.
The Proposed Organizational Documents will be further amended immediately after the consummation of the second merger to provide that the name of the corporation will be “Rimini Street, Inc.”.
 
 
 
 
See paragraph 1 of our current memorandum and articles of association.
As this name change will occur immediately after the consummation of the second merger, and therefore, after the corporation’s domestication in Delaware and associated adoption of the Proposed Organizational Documents, the name of the corporation as it appears in the Proposed Organizational Documents attached as Annex D and Annex E to this joint proxy statement/prospectus and to be in effect as of the domestication will be “GP Investments Acquisition Corp.”.
 
 
 
Perpetual Existence
( Organizational Documents
Proposal G )
The Existing Organizational Documents provide that if we do not consummate a business combination (as defined in the Existing Organizational Documents) by November 27, 2017 (as amended by a special resolution of shareholders passed on May 23, 2017), GPIA shall cease all operations except for the purposes of winding up and shall redeem the shares issued in our initial public offering and liquidate our trust account.
   
See Article 48 of our current memorandum and articles of association.
The Proposed Organizational Documents do not include any provisions relating to RMNI’s ongoing existence; the default under the DGCL will make RMNI’s existence perpetual.
   
This is the default rule under the DGCL.
 
 
 
Exclusive Jurisdiction
( Organizational Documents
Proposal G )
The Existing Organizational Documents do not contain a provision adopting an exclusive forum for certain stockholder litigation.
The Proposed Organizational Documents adopt Delaware as the exclusive forum for certain stockholder litigation.
   
See Section 9.5 of the Proposed Bylaws.
 
 
 
Provisions Related to Status as Blank Check Company
( Organizational Documents
Proposal G )
The Existing Organizational Documents set forth various provisions related to our status as a blank check company prior to the consummation of a business combination.
   
See Article 48 of our current memorandum and articles of association.
The Proposed Organizational Documents do not include such provisions related to our status as a blank check company, which no longer will apply upon consummation of the business combination, as we will cease to be a blank check company at such time.

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GPIA ORGANIZATIONAL DOCUMENTS PROPOSAL A—APPROVAL OF AUTHORIZATION OF ADDITIONAL SHARES OF COMMON STOCK AND PREFERRED STOCK OF RMNI, AS SET FORTH IN THE PROPOSED ORGANIZATIONAL DOCUMENTS

Overview

Organizational Documents Proposal A —to authorize (i) 600,000,000 additional shares of common stock of RMNI, which increases the total authorized shares of common stock to 1,000,000,000 shares of common stock and (ii) 80,000,000 additional shares of preferred stock of RMNI, which increases the total authorized shares of preferred stock to 100,000,000.

Assuming the GPIA business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal A, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the business combination, and therefore, approval of this organizational documents proposal A is a condition to the consummation of the business combination.

As of the date of this joint proxy statement/prospectus, GPIA had 20,009,776 ordinary shares issued and outstanding, consisting of 15,697,276 shares sold as part of the units issued in our initial public offering (being 17,250,000 public shares issued in our initial public offering as reduced by the redemption of 1,552,724 public shares on May 25, 2017 in connection with the Extension) and 4,312,500 founder shares that were issued to the Sponsor prior to our initial public offering. All of the outstanding ordinary shares of GPIA will be converted by operation of law into shares of common stock of RMNI in the domestication.

In connection with the business combination, based on an illustrative Closing Date of May 31, 2017 (being the most recent date for which Rimini Street month end balance sheet data is available prior to the date of this joint proxy statement/prospectus), based on assumptions described elsewhere in this joint proxy statement/prospectus, upon consummation of the first merger the stockholders of Rimini Street immediately prior to consummation of the first merger will receive 50,183,837 shares of RMNI common stock. In addition, in certain circumstances described elsewhere in this joint proxy statement/prospectus, the Sponsor may subscribe for up to 3,500,000 GPIA ordinary shares pursuant to its equity commitment at or prior to the consummation of the business combination.

In order to ensure that RMNI has sufficient authorized capital for future issuances, including pursuant to the 2013 Equity Incentive Plan of Rimini Street (the “2013 Plan”), our board of directors has approved, subject to stockholder approval, that the Proposed Organizational Documents of RMNI (i) increase the number of shares of our common stock from 400,000,000 ordinary shares (as currently authorized in GPIA’s Existing Organizational Documents), to 1,000,000,000 shares of RMNI common stock and (ii) increase the number of shares of our preferred stock from 20,000,000 ordinary shares (as currently authorized in GPIA’s Existing Organizational Documents), to 100,000,000 shares of RMNI preferred stock.

This summary is qualified by reference to the complete text of the Proposed Organizational Documents of RMNI, copies of which are attached to this joint proxy statement/prospectus as Annexes C and D. All stockholders are encouraged to read the Proposed Organizational Documents in their entirety for a more complete description of their terms.

Reasons for the Amendments

The principal purpose of this proposal is to authorize additional shares of our common stock, which will be used to issue shares pursuant to the merger agreement, under the 2013 Plan and for general corporate purposes. Our board of directors believes that it is important for us to have available for issuance a number of authorized shares of common stock and preferred stock sufficient to support our growth and to provide flexibility for future corporate needs (including, if needed, as part of financing for future growth acquisitions).

Notwithstanding the foregoing, authorized but unissued common shares and preferred shares may enable GPIA’s board of directors to render it more difficult or to discourage an attempt to obtain control of GPIA and thereby protect continuity of or entrench its management, which may adversely affect the market price of GPIA’s common shares. If, in the due exercise of its fiduciary obligations, for example, GPIA’s board of directors were to determine that a takeover proposal was not in the best interests of GPIA, such shares could be issued by the board of directors without shareholder approval in one or more private placements or other transactions that might prevent or render more

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difficult or make more costly the completion of any attempted takeover transaction by diluting voting or other rights of the proposed acquirer or insurgent stockholder group, by creating a substantial voting bloc in institutional or other hands that might support the position of the incumbent board of directors, by effecting an acquisition that might complicate or preclude the takeover, or otherwise. The authorization of additional shares will, however, enable GPIA to have the flexibility to authorize the issuance of shares in the future for financing its business, for acquiring other businesses, for forming strategic partnerships and alliances and for stock dividends and stock splits. GPIA currently has no such plans, proposals, or arrangements, written or otherwise, to issue any of the additional authorized shares for such purposes.

Vote Required for Approval

The approval of organizational documents proposal A requires a special resolution under the Cayman Islands Companies Law, being the affirmative vote of the holders of two-thirds of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

Organizational documents proposal A is conditioned on the approval of the domestication proposal, and, therefore, also conditioned on approval of the GPIA business combination proposal. Therefore, if the GPIA business combination proposal and the domestication proposal are not approved, organizational documents proposal A will have no effect, even if approved by holders of GPIA ordinary shares.

Recommendation of the GPIA Board of Directors

THE GPIA BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT GPIA SHAREHOLDERS VOTE “FOR” THE APPROVAL OF THE ORGANIZATIONAL DOCUMENTS PROPOSAL A.

The existence of financial and personal interests of one or more GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

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GPIA ORGANIZATIONAL DOCUMENTS PROPOSAL B—APPROVAL OF PROPOSAL REGARDING ISSUANCE OF PREFERRED STOCK OF RMNI AT THE BOARD OF DIRECTORS’ SOLE DISCRETION, AS SET FORTH IN THE PROPOSED ORGANIZATIONAL DOCUMENTS

Overview

Organizational Documents Proposal B —to authorize the board of directors of RMNI to issue any or all shares of RMNI’s preferred stock in one or more classes or series, with such terms and conditions as may be expressly determined by RMNI’s board of directors and as may be permitted by the General Corporation Law of the State of Delaware (the “DGCL”).

Assuming the business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal B, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the mergers, and therefore, approval of this organizational documents proposal B is a condition to the consummation of the mergers.

GPIA currently has 20,000,000 shares of preferred stock that, assuming approval of the domestication proposal and RMNI’s incorporation in the State of Delaware, will become 20,000,000 shares of preferred stock of RMNI, par value $0.001 per share. In addition, if organizational documents proposal A is approved, the number of authorized shares of preferred stock of RMNI will be increased by 80,000,000 to 100,000,000 shares of preferred stock of RMNI. Approval of this organizational documents proposal B will allow for issuance of any or all of these shares of preferred stock from time to time at the discretion of the board of directors, as may be permitted by the DGCL, and without further stockholder action. The shares of preferred stock would be issuable for any proper corporate purpose, including, among other things, future acquisitions, capital raising transactions consisting of equity or convertible debt, stock dividends or issuances under current and any future stock incentive plans, pursuant to which we may provide equity incentives to employees, officers and directors, and in certain instances may be used as an anti-takeover defense.

This summary is qualified by reference to the complete text of the Proposed Organizational Documents of RMNI, copies of which are attached to this joint proxy statement/prospectus as Annexes C and D. All stockholders are encouraged to read the Proposed Organizational Documents in their entirety for a more complete description of their terms.

Reasons for the Amendments

Our board of directors believes that these additional shares will provide us with needed flexibility to issue shares in the future in a timely manner and under circumstances we consider favorable without incurring the risk, delay and potential expense incident to obtaining stockholder approval for a particular issuance.

Authorized but unissued preferred stock may enable the board of directors to render it more difficult or to discourage an attempt to obtain control of RMNI and thereby protect continuity of or entrench its management, which may adversely affect the market price of Rimini Street. If, in the due exercise of its fiduciary obligations, for example, the board of directors was to determine that a takeover proposal was not in the best interests of RMNI, such preferred stock could be issued by the board without stockholder approval in one or more private placements or other transactions that might prevent or render more difficult or make more costly the completion of any attempted takeover transaction by diluting voting or other rights of the proposed acquirer or insurgent stockholder group, by creating a substantial voting bloc in institutional or other hands that might support the position of the board of directors, by effecting an acquisition that might complicate or preclude the takeover, or otherwise. Allowing RMNI’s board of directors to issue the authorized preferred stock on its own volition will enable RMNI to have the flexibility to issue such preferred stock in the future for financing its business, for acquiring other businesses, for forming strategic partnerships and alliances and for stock dividends and stock splits. RMNI currently has no such plans, proposals, or arrangements, written or otherwise, to issue any of the additional authorized stock for such purposes.

Vote Required for Approval

The approval of organizational documents proposal B requires a special resolution under the Cayman Islands Companies Law, being the affirmative vote of the holders of two-thirds of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

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Organizational documents proposal B is conditioned on the approval of the domestication proposal, and, therefore, also conditioned on approval of the business combination proposal. Therefore, if the business combination proposal and the domestication proposal are not approved, organizational documents proposal B will have no effect, even if approved by holders of GPIA ordinary shares.

Recommendation of the GPIA Board of Directors

THE GPIA BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT GPIA SHAREHOLDERS VOTE “FOR” THE APPROVAL OF THE ORGANIZATIONAL DOCUMENTS PROPOSAL B.

The existence of financial and personal interests of one or more of GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

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GPIA ORGANIZATIONAL DOCUMENTS PROPOSAL C—APPROVAL OF STANDARD REQUIRED FOR DIRECTOR REMOVAL, AS SET FORTH IN THE PROPOSED ORGANIZATIONAL DOCUMENTS

Overview

Organizational Documents Proposal C —to authorize that directors of RMNI may only be removed for cause.

Assuming the GPIA business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal C, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the business combination, and therefore, approval of this organizational documents proposal C is a condition to the consummation of the business combination.

The Proposed Organizational Documents stipulate that any director or the entire board of directors may be removed from office at any time, but only for cause. Additionally, a decrease in the size of the board of directors will not have the effect of removing any incumbent director before his or her term expires.

This summary is qualified by reference to the complete text of the Proposed Organizational Documents of RMNI, copies of which are attached to this joint proxy statement/prospectus as Annexes C and D. All stockholders are encouraged to read the Proposed Organizational Documents in their entirety for a more complete description of their terms.

Reasons for the Amendments

GPIA’s Existing Organizational Documents and RMNI’s Proposed Organizational Documents both provide for a classified board of directors, such that only a specified portion of the directors is to be elected each year. Under the DGCL, removal of a director only for cause is automatic with a classified board. Our board of directors believes that such a standard will, in conjunction with the classified nature of RMNI’s board of directors (i) increase board continuity and the likelihood that experienced board members with familiarity of RMNI’s business operations would serve on the board at any given time and (ii) make it more difficult for a potential acquiror or other person, group or entity to gain control of RMNI’s board of directors.

Vote Required for Approval

The approval of organizational documents proposal C requires a special resolution under the Cayman Islands Companies Law, being the affirmative vote of the holders of two-thirds of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

Organizational documents proposal C is conditioned on the approval of the domestication proposal, and, therefore, also conditioned on approval of the GPIA business combination proposal. Therefore, if the GPIA business combination proposal and the domestication proposal are not approved, organizational documents proposal C will have no effect, even if approved by holders of GPIA ordinary shares.

Recommendation of the GPIA Board of Directors

THE GPIA BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT GPIA SHAREHOLDERS VOTE “FOR” THE APPROVAL OF THE ORGANIZATIONAL DOCUMENTS PROPOSAL C.

The existence of financial and personal interests of one or more GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

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GPIA ORGANIZATIONAL DOCUMENTS PROPOSAL D—APPROVAL OF PROPOSAL REGARDING THE ABILITY OF STOCKHOLDERS TO CALL A SPECIAL MEETING, AS SET FORTH IN THE PROPOSED ORGANIZATIONAL DOCUMENTS

Overview

Organizational Documents Proposal D —to authorize that only the RMNI board of directors, chairperson of the board of directors, chief executive officer or president (in the absence of a chief executive officer) may call a meeting of stockholders.

Assuming the GPIA business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal D, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the business combination, and therefore, approval of this organizational documents proposal D is a condition to the consummation of the business combination.

The Proposed Organizational Documents stipulate that, unless required by law, special meetings of stockholders may only be called by (i) the RMNI board of directors, (ii) the chairperson of the board of directors, (iii) the chief executive officer of RMNI or (iv) the president of RMNI (in the absence of a chief executive officer). Under the Proposed Organizational Documents, RMNI’s stockholders have no power to call a special meeting.

This summary is qualified by reference to the complete text of the Proposed Organizational Documents of RMNI, copies of which are attached to this joint proxy statement/prospectus as Annexes C and D. All stockholders are encouraged to read the Proposed Organizational Documents in their entirety for a more complete description of their terms.

Reasons for the Amendments

Limiting the stockholders’ ability to call a special meeting limits the opportunities for minority stockholders to remove directors, amend organizational documents or take other actions without the board of directors’ consent or to call a stockholders meeting to otherwise advance minority stockholders’ agenda. The amendment is intended to avoid distraction of management caused by holding meetings in addition to the annual meeting unless the board of directors, chairperson of the board of directors, chief executive officer or president (in the absence of a chief executive officer) determines such expense and management focus is warranted.

Vote Required for Approval

The approval of organizational documents proposal D requires a special resolution under the Cayman Islands Companies Law, being the affirmative vote of the holders of two-thirds of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

Organizational documents proposal D is conditioned on the approval of the domestication proposal, and, therefore, also conditioned on approval of the GPIA business combination proposal. Therefore, if the GPIA business combination proposal and the domestication proposal are not approved, organizational documents proposal D will have no effect, even if approved by holders of GPIA ordinary shares.

Recommendation of the GPIA Board of Directors

THE GPIA BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT GPIA SHAREHOLDERS VOTE “FOR” THE APPROVAL OF THE ORGANIZATIONAL DOCUMENTS PROPOSAL D.

The existence of financial and personal interests of one or more of GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

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GPIA ORGANIZATIONAL DOCUMENTS PROPOSAL E—APPROVAL OF PROPOSAL REGARDING THE ABILITY OF STOCKHOLDERS TO ACT BY WRITTEN CONSENT, AS SET FORTH IN THE PROPOSED ORGANIZATIONAL DOCUMENTS

Overview

Organizational Documents Proposal E —to authorize removal of the ability of RMNI stockholders to take action by written consent in lieu of a meeting.

Assuming the GPIA business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal E, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the business combination, and therefore, approval of this organizational documents proposal E is a condition to the consummation of the business combination.

The Proposed Organizational Documents stipulate that any action required or permitted to be taken by the stockholders of RMNI must be effected at a duly called annual or special meeting of stockholders of RMNI, and may not be effected by any consent in writing by such stockholders.

This summary is qualified by reference to the complete text of the Proposed Organizational Documents of RMNI, copies of which are attached to this joint proxy statement/prospectus as Annexes C and D. All stockholders are encouraged to read the Proposed Organizational Documents in their entirety for a more complete description of their terms.

Reasons for the Amendments

Under the Proposed Organizational Documents, RMNI’s stockholders will have the ability to propose items of business (subject to the restrictions set forth therein) at duly convened stockholder meetings. Eliminating the right of Stockholders to act by written consent limits the circumstances under which stockholders can act on their own initiative to remove directors, or alter or amend RMNI’s organizational documents outside of a duly called special or annual meeting of the stockholders of RMNI. Further, our board of directors believes continuing to limit stockholders’ ability to act by written consent will reduce the time and effort our board of directors and management would need to devote to stockholder proposals, which time and effort could distract our directors and management from other important company business.

In addition, the elimination of the stockholders’ ability to act by written consent may have certain anti-takeover effects by forcing a potential acquirer to take control of the board of directors only at a duly called special or annual meeting. However, this proposal is not in response to any effort of which GPIA is aware to obtain control of RMNI, and GPIA and its management do not presently intend to propose other anti-takeover measures in future proxy solicitations. Further, the board of directors does not believe that the effects of the elimination of stockholder action by written consent will create a significant impediment to a tender offer or other effort to take control of RMNI. Inclusion of these provisions in the Proposed Organizational Documents might also increase the likelihood that a potential acquirer would negotiate the terms of any proposed transaction with the board of directors and thereby help protect stockholders from the use of abusive and coercive takeover tactics.

Vote Required for Approval

The approval of organizational documents proposal E requires a special resolution under the Cayman Islands Companies Law, being the affirmative vote of the holders of two-thirds of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

Organizational documents proposal E is conditioned on the approval of the domestication proposal, and, therefore, also conditioned on approval of the GPIA business combination proposal. Therefore, if the GPIA business combination proposal and the domestication proposal are not approved, organizational documents proposal E will have no effect, even if approved by holders of GPIA ordinary shares.

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Recommendation of the GPIA Board of Directors

THE GPIA BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT GPIA SHAREHOLDERS VOTE “FOR” THE APPROVAL OF THE ORGANIZATIONAL DOCUMENTS PROPOSAL E.

The existence of financial and personal interests of one or more of GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

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GPIA ORGANIZATIONAL DOCUMENTS PROPOSAL F—APPROVAL OF THRESHOLD FOR STOCKHOLDER VOTE TO AMEND (1) CERTAIN PROVISIONS OF THE CERTIFICATE OF INCORPORATION AND (2) THE BYLAWS OF RMNI, AS SET FORTH IN THE PROPOSED ORGANIZATIONAL DOCUMENTS

Overview

Organizational Documents Proposal F —to authorize holders of sixty-six and two-thirds percent (66 2/3%) of the then outstanding RMNI capital stock as the minimum threshold required for a stockholder vote to amend RMNI’s certificate of incorporation (other than the articles thereof relating to the company’s name, address and registered office, purpose and matters related to the company’s common and preferred stock) and bylaws.

Assuming the GPIA business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal F, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the business combination, and therefore, approval of this organizational documents proposal F is a condition to the consummation of the business combination.

The Proposed Organizational Documents stipulate that RMNI reserves the right to amend, alter, change or repeal any provision of its certificate of incorporation. Stockholders of RMNI can amend, alter, change or repeal any provision of RMNI’s certificate of incorporation (other than the articles thereof relating to the company’s name, address and registered office, purpose and matters related to the company’s common and preferred stock), by the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of RMNI’s then outstanding capital stock entitled to vote generally in the election of directors, voting together as a single class.

The Proposed Organizational Documents also stipulate that RMNI’s bylaws may be amended, altered or repealed by the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of RMNI’s then outstanding capital stock entitled to vote generally in the election of directors, voting together as a single class. This provision is in addition to the ability of RMNI’s board of directors to take such action by the affirmative vote of at least a majority of the entire board of directors.

This summary is qualified by reference to the complete text of the Proposed Organizational Documents of RMNI, copies of which are attached to this joint proxy statement/prospectus as Annexes C and D. All stockholders are encouraged to read the Proposed Organizational Documents in their entirety for a more complete description of their terms.

Reasons for the Amendments

Requiring the approval by affirmative vote of holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of RMNI’s then outstanding capital stock entitled to vote generally in the election of directors, voting together as a single class, to make any amendment to RMNI’s certificate of incorporation (other than the articles thereof relating to the company’s name, address and registered office, purpose and matters related to the company’s common and preferred stock) or bylaws is intended to protect key provisions of the proposed certificate of incorporation and bylaws from arbitrary amendment and to prevent a simple majority of stockholders from taking actions that may be harmful to other stockholders or making changes to provisions that are intended to protect all stockholders.

Vote Required for Approval

The approval of organizational documents proposal F requires a special resolution under the Cayman Islands Companies Law, being the affirmative vote of the holders of two-thirds of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

Organizational documents proposal F is conditioned on the approval of the domestication proposal, and, therefore, also conditioned on approval of the GPIA business combination proposal. Therefore, if the GPIA business combination proposal and the domestication proposal are not approved, organizational documents proposal F will have no effect, even if approved by holders of GPIA ordinary shares.

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Recommendation of the GPIA Board of Directors

THE GPIA BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT GPIA SHAREHOLDERS VOTE “FOR” THE APPROVAL OF THE ORGANIZATIONAL DOCUMENTS PROPOSAL F.

The existence of financial and personal interests of one or more GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

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GPIA ORGANIZATIONAL DOCUMENTS PROPOSAL G—APPROVAL OF OTHER CHANGES IN CONNECTION WITH ADOPTION OF THE PROPOSED ORGANIZATIONAL DOCUMENTS

Overview

Organizational Documents Proposal G —to authorize all other changes in connection with the replacement of the current amended and restated memorandum and articles of association of GPIA with a new certificate of incorporation and bylaws of RMNI as part of the domestication, including (i) changing the post-business combination corporate name from “GP Investments Acquisition Corp.” to “Rimini Street, Inc.” (with such change expected to be made immediately following the consummation of the second merger) making RMNI’s corporate existence perpetual, (ii) adopting Delaware as the exclusive forum for certain stockholder litigation, and (iii) removing certain provisions related to our status as a blank check company that will no longer apply upon consummation of the business combination.

Assuming the GPIA business combination proposal and the domestication proposal are approved, our shareholders are also being asked to approve organizational documents proposal G, which is, in the judgment of our board of directors, necessary to adequately address the needs of RMNI after the business combination. Under the merger agreement, the approval of each of the organizational documents proposals is a condition to the consummation of the business combination, and therefore, approval of this organizational documents proposal G is a condition to the consummation of the business combination.

The Proposed Organizational Documents will make RMNI’s corporate existence perpetual. In addition, the Proposed Organizational Documents will be further amended immediately after consummation of the second merger to provide that the name of the corporation will be “Rimini Street, Inc.”. However, as this name change is expected to occur immediately after consummation of the second merger, and therefore, after the corporation’s domestication in Delaware and associated adoption of the Proposed Organizational Documents, the name of the corporation as it appears in the Proposed Organizational Documents attached as Annex D to this joint proxy statement/prospectus and to be in effect as of the domestication will be “GP Investments Acquisition Corp.”.

The Proposed Organizational Documents stipulate that the Court of Chancery for the State of Delaware, which we refer to as the “Court of Chancery”, be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of RMNI, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer, or other employee of RMNI to RMNI or RMNI’s stockholders, (iii) any action asserting a claim against RMNI or any director or officer or other employee of RMNI arising pursuant to any provision of the DGCL or RMNI’s certificate of incorporation or bylaws, or (iv) any action asserting a claim against RMNI or any director, officer, stockholder or employee of RMNI governed by the internal affairs doctrine of the State of Delaware. If the Court of Chancery dismisses any action, proceeding or claim because it does not have subject matter jurisdiction thereon, then such action or proceeding must be brought in another state or federal court in the State of Delaware. RMNI may decide that it is in the best interests of RMNI and its stockholders to bring an action in a forum other than the Court of Chancery (or a state court in the State of Delaware if the Court of Chancery does not have subject matter jurisdiction), and it may consent in writing to the selection of an alternative forum. The related provisions also stipulate that any person who acquires an interest in the stock of RMNI will be deemed to have notice of this provision and consent to personal jurisdiction in the applicable Delaware court.

The Proposed Organizational Documents will not contain provisions related to a blank check company (including those related to operation of our trust account, winding up of our operations should we not complete a business combination by a specified date, and other such blank check-specific provisions as are present in the Existing Organizational Documents) because following the consummation of the business combination, RMNI will not be a blank check company.

Approval of each of the organizational documents proposals, assuming approval of each of the other condition precedent proposals, will result, upon consummation of the business combination, in the wholesale replacement of GPIA’s Existing Organizational Documents with RMNI’s Proposed Organizational Documents. While certain material changes between the Existing Organizational Documents and the Proposed Organizational Documents have been unbundled into distinct organizational documents proposals or otherwise identified in this organizational documents proposal F, there are other differences between the Existing and Proposed Organizational Documents (arising from, among other things, differences between the Cayman Islands Companies Law and the DGCL and the typical form of organizational documents under each such body of law) that will be approved (subject to the approval aforementioned related proposals and consummation of the business combination) if our shareholders approve this

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proposal F. Accordingly, we encourage shareholders to carefully review the terms of the Proposed Organizational Documents of RMNI, attached hereto as Annexes C and D as well as the information set under the “ Comparison of Corporate Governance and Shareholder Rights ” section of this joint proxy statement/prospectus.

Reasons for the Amendments

Changing the post-business combination corporate name from “GP Investments Acquisition Corp.” to “Rimini Street, Inc.” (with such change expected to be made immediately following consummation of the second merger) and making RMNI’s corporate existence perpetual

Changing the post-business combination corporate name from “GP Investments Acquisition Corp.” to “Rimini Street, Inc.” (with such change expected to be made immediately following the consummation of the second merger) and making RMNI’s corporate existence perpetual is desirable to reflect the business combination with Rimini Street and to clearly identify RMNI as the publicly traded entity. Additionally, perpetual existence is the usual period of existence for corporations, and our board of director believes it is the most appropriate period for RMNI following the business combination.

Adopting Delaware as the exclusive forum for certain stockholder litigation

Adopting Delaware as the exclusive forum for certain stockholder litigation is intended to assist RMNI in avoiding multiple lawsuits in multiple jurisdictions regarding the same matter. The ability to require such claims to be brought in a single forum will help to assure consistent consideration of the issues, the application of a relatively known body of case law and level of expertise and should promote efficiency and cost-savings in the resolutions of such claims. Our board of directors believes that the Delaware courts are best suited to address disputes involving such matters given that the after the domestication, RMNI will be incorporated in Delaware. Delaware law generally applies to such matters and the Delaware courts have a reputation for expertise in corporate law matters. Delaware offers a specialized Court of Chancery to address corporate law matters, with streamlined procedures and processes which help provide relatively quick decisions. This accelerated schedule can minimize the time, cost and uncertainty of litigation for all parties. The Court of Chancery has developed considerable expertise with respect to corporate law issues, as well as a substantial and influential body of case law construing Delaware’s corporate law and long-standing precedent regarding corporate governance. This provides stockholders and the post-combination company with more predictability regarding the outcome of intra-corporate disputes. In the event the Court of Chancery does not have jurisdiction, the other state courts located in Delaware would be the most appropriate forums because these courts have more expertise on matters of Delaware law compared to other jurisdictions.

In addition, this amendment would promote judicial fairness and avoid conflicting results, as well as make the post-combination company’s defense of applicable claims less disruptive and more economically feasible, principally by avoiding duplicative discovery.

For these reasons, our board of directors believes that providing for Delaware as the exclusive forum for the types of disputes described above is in the best interests of the RMNI and its stockholders. At the same time, our board of directors believes that RMNI should retain the ability to consent to an alternative forum on a case-by-case basis where RMNI determines that its interests and those of its stockholders are best served by permitting such a dispute to proceed in a forum other than in Delaware.

Removing certain provisions related to our status as a blank check company that will no longer apply upon consummation of the business combination

The elimination of certain provisions related to our status as a blank check company is desirable because these provisions will serve no purpose following the business combination. For example, the Proposed Organizational Documents do not include the requirement to dissolve RMNI and allows it to continue as a corporate entity with perpetual existence following consummation of the business combination. Perpetual existence is the usual period of existence for corporations, and our board of directors believes it is the most appropriate period for RMNI following the business combination. In addition, certain other provisions in our current certificate require that proceeds from the GPIA’s initial public offering be held in the trust account until a business combination or liquidation of GPIA has occurred. These provisions cease to apply once the business combination is consummated and are therefore not included in the Proposed Organizational Documents.

Vote Required for Approval

The approval of organizational documents proposal G requires a special resolution under the Cayman Islands Companies Law, being the affirmative vote of the holders of two-thirds of the then outstanding GPIA ordinary shares

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who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

Organizational documents proposal G is conditioned on the approval of the domestication proposal, and, therefore, also conditioned on approval of the GPIA business combination proposal. Therefore, if the GPIA business combination proposal and the domestication proposal are not approved, organizational documents proposal G will have no effect, even if approved by holders of GPIA ordinary shares.

Recommendation of the GPIA Board of Directors

THE GPIA BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT GPIA SHAREHOLDERS VOTE “FOR” THE APPROVAL OF THE ORGANIZATIONAL DOCUMENTS PROPOSAL G.

The existence of financial and personal interests of one or more of GPIA’s directors may result in a conflict of interest on the part of such director(s) between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

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GPIA STOCK ISSUANCE PROPOSAL

Overview

The Stock Issuance Proposal—to consider and vote upon a proposal to approve by ordinary resolution, assuming the organizational documents proposals are approved and adopted, for the purposes of complying with the applicable provisions of NASDAQ Listing Rule 5635, the issuance of RMNI common stock to (1) the existing stockholders of Rimini Street in connection with the first merger and (2) the Sponsor, such that the Sponsor may purchase such RMNI common stock in connection with the consummation of the first merger pursuant to the Sponsor’s equity commitment, to the extent such issuance would require a shareholder vote under NASDAQ Listing Rule 5635 (we refer to this proposal as the “stock issuance proposal”).

Assuming the business combination proposal, the domestication proposal and each of the organizational documents proposals are approved, our shareholders are also being asked to approve, by ordinary resolution, the stock issuance proposal.

Our common shares are listed on NASDAQ and, as such, we are seeking shareholder approval for the issuance of RMNI common stock to (1) the existing stockholders of Rimini Street in connection with the business combination and (2) the Sponsor pursuant to its equity commitment in connection with the business combination, in each case, in order to comply with NASDAQ Listing Rule 5635, to the extent such issuance would require a shareholder vote under NASDAQ Listing Rule 5635.

Reasons for the Approval for Purposes of NASDAQ Listing Rule 5635

Under NASDAQ Listing Rule 5635, a company is required to obtain stockholder approval prior to the issuance of securities if the number of shares of common stock to be issued is, or will be upon issuance, equal to or in excess of 20% of the number of shares of common stock outstanding before the issuance of the common stock or of securities convertible into or exercisable for common stock. If the business combination is completed pursuant to the merger agreement, GPIA currently expects to issue an estimated 50,183,837 shares of RMNI common stock in connection with the business combination. Accordingly, the aggregate number of shares of RMNI common stock that GPIA will issue in the business combination will exceed 20% of the shares of RMNI common stock outstanding before such issuance, and for this reason, GPIA is seeking the approval of GPIA stockholders for the issuance of shares of RMNI common stock pursuant to the merger agreement.

Additionally, pursuant to NASDAQ Listing Rule 5635, when a NASDAQ-listed company proposes to issue securities in connection with the acquisition of the stock or assets of another company, stockholder approval is required if a substantial stockholder of such company has a 5% or greater interest, directly or indirectly, in such company or the assets to be acquired or in the consideration to be paid in the transaction or series of related transactions and the present or potential issuance of common stock could result in an increase in outstanding shares of common stock or voting power of 5% or more. NASDAQ Listing Rule 5635(e)(3) defines a substantial stockholder as the holder of an interest of 5% or more of either the number of shares of common stock or the voting power outstanding of a NASDAQ-listed company. Because the Sponsor currently owns greater than 5% of GPIA’s ordinary shares, the Sponsor is considered a substantial stockholder of GPIA under NASDAQ Listing Rule 5635(e)(3).

Furthermore, pursuant to the equity commitment which GPIA entered into with the Sponsor in connection with the merger agreement, the Sponsor will (in certain circumstances described elsewhere in this joint proxy statement/prospectus) provide backstop equity financing by means of purchasing newly issued GPIA ordinary shares based on a per share issue price of $10.00 per share in an aggregate amount of up to $35,000,000 (such GPIA ordinary shares becoming shares of RMNI common stock upon the domestication) and, accordingly, the Sponsor may have a greater than 5% interest in the consideration to be paid in respect of the business combination (as adjusted at closing of the business combination pursuant to the merger consideration adjustment provisions of the merger agreement described elsewhere in this joint proxy statement/prospectus), and for this reason, GPIA is seeking the approval of GPIA’s shareholders for the purposes of NASDAQ Listing Rule 5635 in respect of the Sponsor’s proposed equity commitment.

In the event that this proposal is not approved by GPIA shareholders, the business combination cannot be consummated. In the event that this proposal is approved by GPIA shareholders, but the merger agreement is terminated (without the business combination being consummated) prior to the issuance of shares of RMNI common stock pursuant to the merger agreement, RMNI will not issue the shares of RMNI common stock.

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Vote Required for Approval

The approval of the stock issuance proposal requires an ordinary resolution, being the affirmative vote of the holders of a majority of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

The stock issuance proposal is conditioned on the approval of the organizational documents proposals, and, therefore, also conditioned on approval of the domestication proposal and the business combination proposal. Therefore, if the business combination proposal, the domestication proposal and the organizational documents proposals are not approved, the stock issuance proposal will have no effect, even if approved by holders of GPIA ordinary shares.

Recommendation of the GPIA Board of Directors

THE GPIA BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT GPIA SHAREHOLDERS VOTE “FOR” THE APPROVAL OF THE GPIA STOCK ISSUANCE PROPOSAL.

The existence of financial and personal interests of GPIA’s directors may result in a conflict of interest on the part of one or more of the directors between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

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GPIA ADJOURNMENT PROPOSAL

The adjournment proposal allows GPIA’s board of directors to submit a proposal to approve, by ordinary resolution, the adjournment of the extraordinary general meeting to a later date or dates, if necessary, to permit further solicitation of proxies in the event, based on the tabulated votes, there are not sufficient votes at the time of the extraordinary general meeting to approve the condition precedent proposals. The purpose of the adjournment proposal is to permit further solicitation of proxies and to provide additional time for the GPIA initial shareholders, Rimini Street and the Rimini Street stockholders to make purchases of public shares or other arrangements that would increase the likelihood of obtaining a favorable vote on the proposals to be put to the extraordinary general meeting. See “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ”.

Consequences if the Adjournment Proposal is Not Approved

If the adjournment proposal is presented to the extraordinary general meeting and is not approved by the shareholders, GPIA’s board of directors may not be able to adjourn the extraordinary general meeting to a later date in the event that, based on the tabulated votes, there are not sufficient votes at the time of the extraordinary general meeting to approve the condition precedent proposals. In such events, the first merger would not be completed.

Vote Required for Approval

The approval of the adjournment proposal requires an ordinary resolution, being the affirmative vote of the holders of a majority of the then outstanding GPIA ordinary shares who, being present and entitled to vote at the extraordinary general meeting, vote at the extraordinary general meeting. Abstentions and broker non-votes, while considered present for the purposes of establishing a quorum, will not count as votes cast at the extraordinary general meeting.

The adjournment proposal is not conditioned upon any other proposal.

Recommendation of the GPIA Board of Directors

THE GPIA BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT GPIA SHAREHOLDERS VOTE “FOR” THE APPROVAL OF THE GPIA ADJOURNMENT PROPOSAL.

The existence of financial and personal interests of GPIA’s directors may result in a conflict of interest on the part of one or more of the directors between what he or they may believe is in the best interests of GPIA and its shareholders and what he or they may believe is best for himself or themselves in determining to recommend that shareholders vote for the proposals. See the section entitled “ GPIA Business Combination Proposal—Interests of GPIA’s Directors and Officers in the Business Combination ” for a further discussion of this.

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SPECIAL MEETING OF RIMINI STREET STOCKHOLDERS

General

Rimini Street is furnishing this joint proxy statement/prospectus to Rimini Street’s stockholders as part of the solicitation of proxies by Rimini Street’s board of directors for use at the special meeting of stockholders of Rimini Street to be held on [•], 2017, and at any adjournment or postponement thereof (the “special meeting”). This joint proxy statement/prospectus is first being furnished to Rimini Street’s stockholders on or about [•], 2017 in connection with the vote on the proposals described in this joint proxy statement/prospectus. This joint proxy statement/prospectus provides Rimini Street’s stockholders with information they need to know to be able to vote or instruct their vote to be cast at the special meeting.

Date, Time and Place

The special meeting of stockholders will be held on [•], 2017, at [•], Pacific Time, at [•].

Purpose of the Rimini Street Special Meeting

At the special meeting, Rimini Street is asking holders of Rimini Street capital stock to:

to consider and vote upon a proposal to approve and adopt the merger agreement, as amended by the merger agreement amendment, which, among other things, provides for an integrated transaction consisting of the merger of Let’s Go with and into Rimini Street, with Rimini Street surviving the merger and becoming a wholly-owned subsidiary of GPIA, and for the surviving corporation of the first merger to merge with and into GPIA, and to approve the transactions contemplated by the merger agreement (we refer to this proposal as the “Rimini Street business combination proposal”); and
to obtain the approval of the Rimini Street preferred stockholders to request the conversion of all outstanding shares of Rimini Street preferred stock into shares of Rimini Street common stock, effective as of immediately prior to the effectiveness of the first merger (we refer to this proposal as the “Rimini Street preferred stock conversion proposal”).

Recommendation of Rimini Street Board of Directors

Rimini Street’s board of directors has unanimously determined that the Rimini Street business combination proposal and the Rimini Street preferred stock conversion proposal are in the best interests of Rimini Street and its stockholders; has unanimously approved the Rimini Street business combination proposal and the Rimini Street preferred stock conversion proposal; and unanimously recommends that stockholders vote “FOR” the Rimini Street business combination proposal and “FOR” the Rimini Street preferred stock conversion proposal, in each case, if presented to the special meeting.

The existence of financial and personal interests of one or more of Rimini Street’s directors may result in a conflict of interest on the part of such director(s) between what he, she or they may believe is in the best interests of Rimini Street and its stockholders and what he, she or they may believe is best for himself, herself or themselves in determining to recommend that stockholders vote for the proposals. See the section entitled “ Rimini Street Business Combination Proposal—Interests of Rimini Street’s Directors and Officers in the Business Combination ” for a further discussion of this.

Record Date; Who is Entitled to Vote

Rimini Street has fixed the close of business on [•], 2017, as the “record date” for determining Rimini Street stockholders entitled to notice of and to attend and vote at the special meeting. As of the close of business on [•], 2017, there were [•] shares of Rimini Street Class A Common Stock, [•] shares of Rimini Street Class B Common Stock, [•] shares of Rimini Street Series A Preferred Stock, [•] shares of Rimini Street Series B Preferred Stock, and [•] shares of Rimini Street Series C Preferred Stock outstanding and entitled to vote. Each share of Rimini Street Class A Common Stock is entitled to one vote per share at the special meeting and each share of Rimini Street Class B Common Stock is entitled to fifteen votes per share at the special meeting. Each share of Rimini Street Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock is entitled to the number of votes equal to the number of shares of Class B Common Stock or Class A Common Stock, as applicable, into which the shares of

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preferred stock held by such holder could be converted as of the record date. As of the record date, each share of Rimini Street Series A Preferred Stock and Rimini Street Series B Preferred Stock will convert into one share of Rimini Street Class B Common Stock and each share of Rimini Street Series C Preferred Stock will convert into one share of Rimini Street Class A Common Stock.

In connection with the business combination, Rimini Street stockholders representing a sufficient amount of Rimini Street capital stock necessary to approve the Rimini Street business combination proposal and the Rimini Street preferred stock conversion proposal have entered into a transaction support and voting agreement pursuant to which they have agreed to support and vote all of their shares in favor of such proposals.

Quorum

The presence, in person or by proxy, of a majority of the aggregate voting power of the capital stock issued and outstanding and entitled to vote constitutes a quorum at the special meeting.

Abstentions

Proxies that are marked “abstain” will be treated as shares present for purposes of determining the presence of a quorum on all matters. They will not be treated as shares voted on the matter.

Vote Required for Approval

The approval of the Rimini Street business combination proposal requires the affirmative vote of the holders of a (i) the majority of the voting power of shares of Rimini Street capital stock, (ii) more than 50% of the outstanding shares of Rimini Street Series B Preferred Stock and Series C Preferred Stock, voting as a single class on an as-converted basis (each holder of Rimini Street Preferred Stock shall be entitled to the number of votes equal to the number of shares of Rimini Street Class B Common Stock or Rimini Street Class A Common Stock, as applicable, into which the shares of Rimini Street Preferred Stock held by such holder could be converted as of the record date), and (iii) the majority of the outstanding shares of Rimini Street Class A Common Stock and Rimini Street Class B Common Stock, voting as a single class, present in person or represented by proxy at the Rimini Street special meeting.

The approval of the Rimini Street preferred stock conversion proposal requires the affirmative vote of the holders of a majority of the shares of Rimini Street preferred stock then outstanding (voting as a single class and on an as-converted basis) present in person or represented by proxy at the Rimini Street special meeting. Each holder of Rimini Street Preferred Stock shall be entitled to the number of votes equal to the number of shares of Rimini Street Class B Common Stock or Rimini Street Class A Common Stock, as applicable, into which the shares of Rimini Street Preferred Stock held by such holder could be converted as of the record date.

In each case, abstentions, while considered present for the purposes of establishing a quorum, will not count as votes cast at the special meeting.

Voting Your Shares

Each share of Rimini Street capital stock that you own in your name entitles you to the number of votes detailed in the section entitled “— Record Date; Who is Entitled to Vote ”.

There are two ways to vote your shares of Rimini Street capital stock at the special meeting:

You Can Vote By Signing and Returning the Enclosed Proxy Card . If you vote by proxy card, your “proxy”, whose name is listed on the proxy card, will vote your shares as you instruct on the proxy card. If you sign and return the proxy card but do not give instructions on how to vote your shares, your shares will be voted as recommended by Rimini Street’s board “FOR” the Rimini Street business combination proposal and “FOR” the Rimini Street preferred stock conversion proposal, in each case, if presented at the special meeting. Votes received after a matter has been voted upon at the special meeting will not be counted.
You Can Attend the Special Meeting and Vote in Person . You will receive a ballot when you arrive.

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Revoking Your Proxy

If you are a Rimini Street stockholder and you give a proxy, you may revoke it at any time before it is exercised by doing any one of the following:

you may send another proxy card with a later date;
you may notify Thomas C. Shay, Rimini Street’s Corporate Secretary, in writing before the special meeting that you have revoked your proxy; or
you may attend the special meeting, revoke your proxy, and vote in person, as indicated above.

Who Can Answer Your Questions About Voting Your Shares

If you have any questions about how to vote or direct a vote in respect of your shares of Rimini Street capital stock, you may contact:

Thomas C. Shay
Corporate Secretary
Rimini Street, Inc.
3993 Howard Hughes Parkway, Suite 500
Las Vegas, NV 89169
Tel: (702) 839-9671

Appraisal Rights

Rimini Street stockholders will be entitled to dissenters’ rights only if they comply with the Nevada law procedures summarized in the section entitled “ Appraisal Rights ”. To be eligible to exercise appraisal rights, record holders of Rimini Street capital stock must not vote in favor of the business combination and must properly demand payment for their shares. The entirety of sections 92A.300 to 92A.500 of the Nevada Revised Statutes (the “Nevada Dissenter’s Rights Statute”) is provided on Annex I to this joint proxy statement/prospectus. Upon effectiveness of the business combination, any Rimini Street stockholder who has perfected its dissenters’ rights and who believes that the merger consideration is insufficient will have the right to object and have a court in Nevada determine the value of each share of stock, and to be paid the appraised value determined by the court, which could be more or less than the merger consideration.

Proxy Solicitation Costs

Rimini Street is soliciting proxies on behalf of its board of directors. This solicitation is being made by mail but also may be made by telephone or in person. Rimini Street and its directors, officers and employees may also solicit proxies in person, by telephone or by other electronic means. Rimini Street will bear the cost of the solicitation.

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RIMINI STREET BUSINESS COMBINATION PROPOSAL

We are asking Rimini Street stockholders to approve and adopt the merger agreement, as amended by the merger agreement amendment, and the transactions contemplated thereby. Rimini Street stockholders should read carefully this joint proxy statement/prospectus in its entirety for more detailed information concerning the merger agreement and the merger agreement amendment, which are attached as Annex A and Annex B, respectively, to this joint proxy statement/prospectus.

The terms of, reasons for and other aspects of the merger agreement and the business combination are described in detail in the other sections in this joint proxy statement/prospectus. Rimini Street stockholders are urged to read carefully the merger agreement in its entirety before voting on this proposal.

Rimini Street’s Board of Directors’ Reasons for the Business Combination

The board of directors of Rimini Street unanimously approved the merger agreement and the transactions contemplated thereby, and determined the business combination, on the terms and conditions set forth in the merger agreement and other related documents, is advisable and fair to, and in the best interests of, Rimini Street’s stockholders. The board of directors also approved and declared advisable to submit the merger agreement to Rimini Street’s stockholders and to recommend that Rimini Street’s stockholders adopt the merger agreement and approve the transactions contemplated thereby (including the business combination). In reaching its conclusion regarding the fairness of the business combination to Rimini Street’s stockholders and its decision to approve the merger agreement and to recommend its approval to Rimini Street’s stockholders, the board of directors of Rimini Street considered the following factors, among others, each of which the board of directors of Rimini Street believes supported its conclusion but which are not listed in any relative order of importance:

Rimini Street’s business, financial condition, results of operations, assets, management, competitive position, operating performance and prospects, including Rimini Street’s prospects and risks to the business if it were to continue development of its business as a private company;
Rimini Street’s forecasts of operating performance and financial condition;
current industry, market and economic conditions, including the state of the financial markets;
Rimini Street’s anticipated requirements for additional capital if it continued development of its business as an independent company, including the prospects of raising such capital in the public markets or from private sources;
the potential for RMNI to access additional capital from the public markets;
Rimini Street’s experience and previous attempts to consummate an initial public offering;
the valuations at which the Rimini Street might raise additional capital (and the potential sources of such capital), compared to the consideration being paid by GPIAC pursuant to the merger agreement;
the potential dilution to the existing equity interests of Rimini Street in connection with alternative strategic transactions, compared to anticipated dilution to the existing equity interests of Rimini Street that would result from the consummation of the business combination (including the closing of any third party equity financing contingent upon the closing of the business combination);
the opportunity for liquidity for Rimini Street stockholders;
the terms and conditions of the merger agreement and the transactions contemplated thereby;
the determination by the board of directors of Rimini Street that the aggregate merger consideration represents a fair value for Rimini Street and its stockholders as a whole, including a consideration of the likelihood of securing an alternative transaction and the risks that Rimini Street’s prospects could become less attractive to potential buyers or that macroeconomic changes would result in potential buyers not being interested in any strategic transaction with Rimini Street;
the impact of the adjustments to the merger consideration for indebtedness, cash and unpaid transaction expenses, and the amount of consideration held back pursuant to the escrow agreement;

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GPIA’s cash position of at least $50 million (including cash held in GPIA’s trust account plus cash available to GPIA in connection with the consummation of third party equity financing contingent upon the closing of the business combination) that would be available to the surviving entity in the mergers for the working capital and business development needs;
the impact of the business combination on Rimini Street’s employees, stockholders, option holders, warrant holders, customers and partners;
the availability of appraisal rights, only to the extent available under the Nevada Revised Statutes, to Rimini Street stockholders who comply with the required procedures under the Nevada Revised Statutes, which will allow Rimini Street stockholders to seek appraisal of the fair value of their shares as determined pursuant to the Nevada Revised Statutes (see the section entitled “ Appraisal Rights ” and Annex I to this joint proxy/prospectus); and
the likelihood that the business combination will be consummated in light of the conditions to GPIA’s obligations to consummate the transactions contemplated by the merger agreement, and the likelihood of obtaining any necessary regulatory approvals.

The board of directors of Rimini Street also considered a variety of risks and other potentially negative factors concerning the merger agreement and the business combination, including the following:

the likelihood that the business combination would be completed compared to the risks in executing alternatives;
the risk that the business combination may not be completed in a timely manner, or at all;
the risks and costs to Rimini Street if transactions contemplated by the merger agreement are not consummated, including the diversion of management and employee attention, the potential effect on business and customer relationships, and the transaction costs including legal fees incurred in connection with the business combination;
the fact that Rimini Street entered into the merger agreement with a “blank check” corporation organized to effect a business combination with one or more businesses;
the indemnification obligations of Rimini Street’s stockholders pursuant to the merger agreement and the escrow agreement; and
the restrictions on the conduct of Rimini Street’s business prior to the consummation of the business combination, including a requirement that Rimini Street conduct its business only in the ordinary course, subject to specific limitations or GPIA’s consent, which may delay or prevent Rimini Street from undertaking business opportunities that may arise pending completion of the business combination.

The foregoing discussion of the information and factors considered by the board of directors of Rimini Street is not intended to be exhaustive but includes a number of the material factors considered by it. The board of directors of Rimini Street approved the merger agreement, the mergers and the other transactions contemplated thereby and recommended that the stockholders of Rimini Street vote to adopt the merger agreement and approve the mergers and the other transactions contemplated thereby based upon the totality of the information presented to and considered by them. In arriving at their recommendation, the members of the board of directors of Rimini Street also considered the interests that certain executive officers of Rimini Street may have with respect to the business combination that differ from, or are in addition to, their interests as stockholders generally, as described below under “ Interests of Rimini Street Directors and Officers in the Business Combination ”.

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Interests of Rimini Street’s Directors and Officers in the Business Combination

When you consider the recommendation of Rimini Street’s board of directors in favor of approval of the Rimini Street business combination proposal, you should keep in mind that Rimini Street’s directors and officers have interests in such proposal that are different from, or in addition to, those of Rimini Street stockholders generally. The boards of directors of both companies were aware of these interests and considered them in approving the business combination and the merger agreement. These interests include, among other things:

The fact that each of Rimini Street’s directors and officers will continue to be directors and executive officers of RMNI after the consummation of the business combination. As such, in the future they will receive any cash fees, stock options, stock awards or other remuneration that the RMNI board of directors determines to pay to its directors and officers.
Upon completion of the business combination and the issuance of RMNI common stock in the business combination, assuming (i) that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination, (ii) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement and (iii) that no public shareholders exercise their redemption rights, the directors and officers of Rimini Street will collectively beneficially own approximately 26.5% of the outstanding stock of RMNI.

As a result of, or in connection with, the business combination Rimini Street’s directors and officers could be more likely to vote to approve the merger agreement and the conversion of Rimini Street preferred stock than Rimini Street stockholders generally.

Vote Required for Approval

Presuming a quorum is present, the affirmative vote of the holders of a (i) the majority of the voting power of shares of Rimini Street capital stock, (ii) more than 50% of the outstanding shares of Rimini Street Series B Preferred Stock and Series C Preferred Stock, voting as a single class on an as-converted basis (each holder of Rimini Street Preferred Stock shall be entitled to the number of votes equal to the number of shares of Rimini Street Class B Common Stock or Rimini Street Class A Common Stock, as applicable, into which the shares of Rimini Street Preferred Stock held by such holder could be converted as of the record date), and (iii) the majority of the outstanding shares of Rimini Street Class A Common Stock and Rimini Street Class B Common Stock, voting as a single class, present in person or represented by proxy at the Rimini Street special meeting is required for approval of the Rimini Street business combination proposal.

Recommendation of Rimini Street Board of Directors

THE RIMINI STREET BOARD OF DIRECTORS RECOMMENDS THAT THE RIMINI STREET STOCKHOLDERS VOTE “FOR” THE RIMINI STREET BUSINESS COMBINATION PROPOSAL.

The existence of financial and personal interests of one or more of Rimini Street’s directors may result in a conflict of interest on the part of such director(s) between what he, she or they may believe is in the best interests of Rimini Street and its stockholders and what he, she or they may believe is best for himself, herself or themselves in determining to recommend that stockholders vote for the proposals. See the section entitled “ Rimini Street Business Combination Proposal—Interests of Rimini Street’s Directors and Officers in the Business Combination ” for a further discussion of this.

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RIMINI STREET PREFERRED STOCK CONVERSION PROPOSAL

Pursuant to the merger agreement, the holders of Rimini Street common stock will be entitled to the right to receive the applicable portion of merger consideration. As a result, in order to participate in the merger consideration provided to the holders of Rimini Street common stock, the holders of Rimini Street preferred stock are requesting the automatic conversion of all outstanding shares of Rimini Street preferred stock into shares of Rimini Street common stock. Rimini Street is asking the holders of its preferred stock to vote “FOR” the following resolution at the special meeting:

“RESOLVED, that, pursuant to Section 3(c)(ii) of the Rimini Street Amended and Restated Articles of Incorporation (the “ Articles ”), the holders of a majority of the outstanding shares of Rimini Street preferred stock hereby request the automatic conversion of (i) each outstanding share of Rimini Street Series A Preferred Stock and Rimini Street Series B Preferred Stock into one share of Rimini Street Class B Common Stock and (ii) each outstanding share of Rimini Street Series C Preferred Stock into one share of Rimini Street Class A Common Stock, effective as of immediately prior to the effectiveness of the first merger”.

Vote Required for Approval

Presuming a quorum is present, the affirmative vote of the holders of a majority of the shares of Rimini Street preferred stock then outstanding (voting as a single class and on an as-converted basis) present in person or represented by proxy at the Rimini Street special meeting is required for approval of the Rimini Street preferred stock conversion proposal. Each holder of Rimini Street Preferred Stock shall be entitled to the number of votes equal to the number of shares of Rimini Street Class B Common Stock or Rimini Street Class A Common Stock, as applicable, into which the shares of Rimini Street Preferred Stock held by such holder could be converted as of the record date.

Recommendation of Rimini Street Board of Directors

THE RIMINI STREET BOARD OF DIRECTORS RECOMMENDS THAT THE RIMINI STREET STOCKHOLDERS VOTE “FOR” THE RIMINI STREET PREFERRED STOCK CONVERSION PROPOSAL.

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U.S. FEDERAL INCOME TAX CONSIDERATIONS

The following summary is a discussion of U.S. federal income tax considerations of the domestication, an exercise of redemption rights and the mergers generally applicable to holders of GPIA ordinary shares or warrants and holders of Rimini Street common stock. This section applies only to holders that hold their GPIA ordinary shares, warrants or Rimini Street common stock as capital assets for U.S. federal income tax purposes (generally, property held for investment). It does not apply to holders of Rimini Street options, warrants or promissory notes.

Upon the domestication, GPIA will become GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), which corporation will be renamed Rimini Street, Inc. immediately after consummation of the second merger. As a change of entity name does not involve a change in the legal form of the entity, in this joint proxy statement/prospectus, “RMNI” refers to GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), the continuing entity following the domestication, including subsequent to its change of name to Rimini Street, Inc., which shall occur immediately after consummation of the second merger.

This section is general in nature and does not discuss all aspects of U.S. federal income taxation that might be relevant to a particular holder in light of such holder’s circumstances or status, nor does it address tax considerations applicable to a holder subject to special rules, including:

a dealer in securities;
a trader in securities that elects to use a mark-to-market method of accounting;
a tax-exempt organization;
a life insurance company, real estate investment trust or regulated investment company;
a person that actually or constructively owns 10% or more of GPIA voting stock;
a person that holds GPIA ordinary shares or warrants or Rimini Street common stock as part of a straddle or a hedging or conversion transaction;
a U.S. Holder whose functional currency is not the U.S. dollar;
a person that received GPIA ordinary shares or warrants or Rimini Street common stock or warrants (including options) as compensation for services;
a person that holds Rimini Street common stock that constitutes “qualified small business stock” under Section 1202 of the Code;
holders of Rimini Street common stock that also own ordinary shares or warrants of GPIA;
a U.S. expatriate;
a controlled foreign corporation; or
a passive foreign investment company.

This discussion is based on the Code, proposed, temporary and final Treasury Regulations promulgated under the Code, and judicial and administrative interpretations thereof, all as of the date hereof. All of the foregoing is subject to change, which change could apply retroactively and could affect the tax considerations described herein. This discussion does not address U.S. federal taxes other than those pertaining to U.S. federal income taxation (such as estate or gift taxes, the alternative minimum tax or the Medicare tax on investment income), nor does it address any aspects of U.S. state or local or non-U.S. taxation.

We have not and do not intend to seek any rulings from the U.S. Internal Revenue Service (the “IRS”) regarding the domestication, an exercise of redemption rights or the mergers. There can be no assurance that the IRS will not take positions concerning the tax consequences of the transactions that are inconsistent with the considerations discussed below or that any such positions would not be sustained by a court.

If a partnership (or any entity so characterized for U.S. federal income tax purposes) holds GPIA ordinary shares or warrants or Rimini Street common stock, the tax treatment of such partnership and a person treated as a partner of such partnership will generally depend on the status of the partner and the activities of the partnership. Partnerships

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holding any GPIA ordinary shares or warrants or Rimini Street common stock and persons that are treated as partners of such partnerships should consult their tax advisors as to the particular U.S. federal income tax consequences of the domestication, an exercise of redemption rights and the mergers to them.

THE FOLLOWING IS FOR INFORMATIONAL PURPOSES ONLY. ALL HOLDERS SHOULD CONSULT THEIR TAX ADVISORS REGARDING THE TAX CONSEQUENCES OF THE DOMESTICATION, ORGANIZATIONAL DOCUMENTS PROPOSALS, AN EXERCISE OF REDEMPTION RIGHTS AND THE MERGERS, INCLUDING THE EFFECTS OF U.S. FEDERAL, STATE AND LOCAL AND NON-U.S. TAX LAWS.

U.S. HOLDERS

For purposes of this discussion, a U.S. Holder means a beneficial owner of GPIA ordinary shares or warrants or Rimini Street common stock, as the case may be, who or that is, for U.S. federal income tax purposes:

an individual who is a citizen or resident of the United States,
a corporation (or other entity that is treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the U.S. or any state thereof (including the District of Columbia),
an estate whose income is subject to U.S. federal income tax regardless of its source, or
a trust if (1) a U.S. court can exercise primary supervision over the trust’s administration and one or more U.S. persons are authorized to control all substantial decisions of the trust; or (2) the trust has a valid election in effect under applicable Treasury regulations to be treated as a U.S. person.

Effects of the Domestication on U.S. Holders of GPIA Ordinary Shares or Warrants

The U.S. federal income tax consequences of the domestication will depend primarily upon whether the domestication qualifies as a “reorganization” within the meaning of Section 368 of the Code.

Under Section 368(a)(1)(F) of the Code, a reorganization (an “F Reorganization”) is a “mere change in identity, form, or place of organization of one corporation, however effected”. Pursuant to the domestication, GPIA will change its jurisdiction of incorporation from the Cayman Islands to Delaware.

It is intended that the domestication qualify as an F Reorganization. Assuming the domestication so qualifies, U.S. Holders of GPIA ordinary shares or warrants generally should not recognize taxable gain or loss on the domestication for U.S. federal income tax purposes, except as provided below under the caption headings “—Effects of Section 367” and “—PFIC Considerations”, and the domestication should be treated for U.S. federal income tax purposes as if GPIA (i) transferred all of its assets and liabilities to RMNI in exchange for all of the outstanding common stock and warrants of RMNI; and (ii) then distributed the common stock and warrants of RMNI to the shareholders of GPIA in liquidation of GPIA. The taxable year of GPIA will be deemed to end on the date of the domestication.

Because the domestication will occur immediately prior to the redemption of U.S. Holders that exercise redemption rights with respect to GPIA ordinary shares, U.S. Holders exercising such redemption rights will be subject to the potential tax consequences of the domestication. All U.S. Holders of GPIA ordinary shares considering exercising redemption rights with respect to such shares are urged to consult with their tax advisors with respect to the potential tax consequences of the domestication and an exercise of redemption rights to them.

Basis and Holding Period Considerations

Assuming the domestication qualifies as an F Reorganization: (i) the tax basis of a RMNI share or warrant received by a U.S. Holder in the domestication will equal the U.S. Holder’s tax basis in the GPIA share or warrant, as the case may be, surrendered in exchange therefor, increased by any amount included in the income of such U.S. Holder as a result of Section 367 of the Code (as discussed below) and (ii) the holding period for a RMNI share or warrant received by a U.S. Holder will include such holder’s holding period for the GPIA share or warrant surrendered in exchange therefor.

Effects of Section 367 to U.S. Holders of GPIA Ordinary Shares or Warrants

Section 367 of the Code applies to certain non-recognition transactions involving foreign corporations, including a domestication of a foreign corporation in an F Reorganization. Section 367 of the Code imposes income tax on certain United States persons in connection with transactions that would otherwise be tax-free. Section 367(b) of the

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Code will generally apply to U.S. Holders of GPIA on the date of the domestication. Because the domestication will occur immediately prior to the redemption of holders that exercise redemption rights with respect to GPIA ordinary shares, U.S. Holders exercising such redemption rights will be subject to the potential tax consequences of Section 367 of the Code as a result of the domestication.

A. “U.S. Shareholders” of GPIA

A U.S. Holder who, on the date of the domestication beneficially owns (directly, indirectly or constructively) 10% or more of the total combined voting power of all classes of GPIA ordinary shares entitled to vote (a “U.S. Shareholder”) must include in income as a dividend the “all earnings and profits amount” attributable to the GPIA ordinary shares it directly owns, within the meaning of Treasury Regulations under Section 367. A U.S. Holder’s ownership of warrants will be taken into account in determining whether such holder owns 10% or more of the total combined voting power of all classes of stock. Complex attribution rules apply in determining whether a U.S. Holder owns 10% or more of the total combined voting power of all classes of GPIA ordinary shares entitled to vote and all U.S. Holders are urged to consult their tax advisors with respect to these attribution rules.

A U.S. Shareholder’s all earnings and profits amount with respect to its GPIA ordinary shares is the net positive earnings and profits of GPIA (as determined under Treasury Regulations under Section 367) attributable to the shares (as determined under Treasury Regulations under Section 367) but without regard to any gain that would be realized on a sale or exchange of such shares. Treasury Regulations under Section 367 provide that the all earnings and profits amount attributable to a shareholder’s stock is determined according to the principles of Section 1248 of the Code. In general, Section 1248 of the Code and the Treasury Regulations thereunder provide that the amount of earnings and profits attributable to a block of stock in a foreign corporation is the ratably allocated portion of the foreign corporation’s earnings and profits generated during the period the shareholder held the block of stock.

GPIA does not expect to have significant, if any, cumulative net earnings and profits on the date of the domestication. If GPIA’s cumulative net earnings and profits through the date of the domestication are less than or equal to zero, then a U.S. Shareholder should not be required to include in gross income an all earnings and profits amount with respect to its GPIA ordinary shares. It is possible, however, that the amount of GPIA’s cumulative net earnings and profits could be greater than expected through the date of the domestication in which case a U.S. Shareholder would be required to include it’s all earnings and profits amount in income as a deemed dividend under Treasury Regulations under Section 367 as a result of the domestication.

B. U.S. Holders That Own Less Than 10 Percent of GPIA

A U.S. Holder who, on the date of the domestication, beneficially owns (directly, indirectly or constructively) GPIA ordinary shares with a fair market value of $50,000 or more but less than 10% of the total combined voting power of all classes of GPIA ordinary shares entitled to vote will recognize gain (but not loss) with respect to the domestication or, in the alternative, may elect to recognize the “all earnings and profits” amount attributable to such holder as described below.

Unless a U.S. Holder makes the “all earnings and profits” election as described below, such holder generally must recognize gain (but not loss) with respect to RMNI common stock received in the domestication in an amount equal to the excess of the fair market value of the RMNI common stock received over the U.S. Holder’s adjusted tax basis in the GPIA ordinary shares deemed surrendered in exchange therefor.

In lieu of recognizing any gain as described in the preceding paragraph, a U.S. Holder may elect to include in income the all earnings and profits amount attributable to its GPIA ordinary shares under Section 367(b). There are, however, strict conditions for making this election. This election must comply with applicable Treasury Regulations and generally must include, among other things:

(i) a statement that the domestication is a Section 367(b) exchange;
(ii) a complete description of the domestication;
(iii) a description of any stock, securities or other consideration transferred or received in the domestication;
(iv) a statement describing the amounts required to be taken into account for U.S. federal income tax purposes;
(v) a statement that the U.S. Holder is making the election that includes (A) a copy of the information that the U.S. Holder received from GPIA establishing and substantiating the U.S. Holder’s all earnings and profits

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amount with respect to the U.S. Holder’s GPIA ordinary shares, and (B) a representation that the U.S. Holder has notified GPIA (or RMNI) that the U.S. Holder is making the election; and

(vi) certain other information required to be furnished with the U.S. Holder’s tax return or otherwise furnished pursuant to the Code or the Treasury Regulations.

In addition, the election must be attached by an electing U.S. Holder to such holder’s timely filed U.S. federal income tax return for the year of the domestication, and the U.S. Holder must send notice of making the election to GPIA or RMNI no later than the date such tax return is filed. In connection with this election, GPIA intends to provide each U.S. Holder eligible to make such an election with information regarding GPIA’s earnings and profits upon request.

GPIA does not expect to have significant, if any, cumulative earnings and profits through the date of the domestication and if that proves to be the case, U.S. Holders who make this election should generally not have an income inclusion under Section 367(b) of the Code provided the U.S. Holder properly executes the election and complies with the applicable notice requirements. However, as noted above, if it were determined that GPIA had positive earnings and profits through the date of the domestication, a U.S. Holder that makes the election described herein could have an all earnings and profits amount with respect to its GPIA shares, and thus could be required to include that amount in income as a deemed dividend under Treasury Regulation Section 1.367(b)-3(b)(3) as a result of the domestication.

U.S. HOLDERS ARE STRONGLY URGED TO CONSULT A TAX ADVISOR REGARDING THE CONSEQUENCES OF MAKING AN ELECTION AND THE APPROPRIATE FILING REQUIREMENTS WITH RESPECT TO AN ELECTION.

C. U.S. Holders that Own GPIA ordinary shares with a Fair Market Value of Less Than $50,000

A U.S. Holder who, on the date of the domestication, owns (or is considered to own) stock of GPIA with a fair market value less than $50,000 should not be required to recognize any gain or loss under Section 367 of the Code in connection with the domestication, and generally should not be required to include any part of the all earnings and profits amount in income.

Tax Consequences for U.S. Holders of GPIA Warrants

Subject to the considerations described above relating to a U.S. Holder’s ownership of warrants being taken into account in determining whether such holder beneficially owns 10% or more of the total combined voting power of all classes of stock for purposes of Section 367(b), and the considerations described below relating to PFIC considerations, a U.S. Holder of GPIA warrants should not be subject to U.S. federal income tax with respect to the exchange of GPIA warrants for RMNI warrants in the domestication.

All U.S. Holders of GPIA ordinary shares or warrants are urged to consult their tax advisors with respect to the effect of Section 367 of the Code to their particular circumstances.

PFIC Considerations

In addition to the discussion under the heading “—Effects of Section 367”, above, the domestication could be a taxable event to U.S. Holders under the passive foreign investment company (“PFIC”) provisions of the Code.

A. Definition of a PFIC

In general, GPIA will be a PFIC with respect to a U.S. Holder if, for any taxable year in which such holder held GPIA ordinary shares or warrants, (a) at least 75% or more of GPIA’s gross income for the taxable year was passive income or (b) at least 50% or more of the value, determined on the basis of a quarterly average, of GPIA’s assets is attributable to assets that produce or are held to produce passive income. Passive income generally includes dividends, interest, rents and royalties (other than certain rents and royalties that are derived in the active conduct of a trade or business) and gains from the disposition of passive assets. For purposes of these rules, interest income earned by GPIA would be considered to be passive income and cash held by GPIA would be considered to be a passive asset.

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B. PFIC Status of GPIA

Based upon the composition of its income and assets, and upon a review of its financial statements, GPIA believes that it likely was a PFIC for its most recent taxable year ended on December 31, 2016, was likely a PFIC for its taxable year ended on December 31, 2015 and will likely be considered a PFIC for its current taxable year which ends as a result of the domestication.

C. Effects of PFIC Rules on the domestication

As discussed above, GPIA believes that it is likely treated as a PFIC for U.S. federal income tax purposes. Section 1291(f) of the Code requires that, to the extent provided in Treasury Regulations, a United States person who disposes of stock of a PFIC (including for this purpose exchanging GPIA warrants for newly issued RMNI warrants in the domestication) recognizes gain notwithstanding any other provision of the Code. No final Treasury Regulations are currently in effect under Section 1291(f) of the Code. However, proposed Treasury Regulations under Section 1291(f) of the Code have been promulgated with a retroactive effective date. If finalized in their current form, those regulations may require taxable gain recognition to U.S. Holders of GPIA ordinary shares and warrants upon the domestication if GPIA were classified as a PFIC at any time during such U.S. Holder’s holding period in such ordinary shares or warrants and the U.S. Holder had not made a QEF Election (as described below) for the first taxable year in which the U.S. Holder owned GPIA ordinary shares or in which GPIA was a PFIC, whichever is later, or a mark-to-market election (as described below) with respect to such holder’s ordinary shares. Generally, neither election is available with respect to GPIA warrants. The tax on any such recognized gain would be imposed based on a complex set of computational rules designed to offset the tax deferral with respect to the undistributed earnings of GPIA.

Under these rules:

the U.S. Holder’s gain would be allocated ratably over the U.S. Holder’s holding period for such holder’s GPIA ordinary shares or warrants;
the amount of gain allocated to the U.S. Holder’s taxable year in which the U.S. Holder recognized the gain, or to the period in the U.S. Holder’s holding period before the first day of the first taxable year in which GPIA was a PFIC, would be taxed as ordinary income;
the amount of gain allocated to other taxable years (or portions thereof) of the U.S. Holder and included in such holder’s holding period would be taxed at the highest tax rate in effect for that year applicable to the U.S. Holder; and
the interest charge generally applicable to underpayments of tax would be imposed in respect of the tax attributable to each such other taxable year of the U.S. Holder.

Any “all earnings and profits amount” included in income by a U.S. Holder as a result of the domestication (discussed under the heading “—Effects of Section 367” above) generally would be treated as gain subject to these rules.

It is difficult to predict whether, in what form and with what effective date, final Treasury Regulations under Section 1291(f) of the Code will be adopted. Therefore, U.S. Holders of GPIA ordinary shares that have not made a timely QEF Election or a mark-to-market election (as described below) and U.S. Holders of GPIA warrants may, pursuant to the proposed Treasury Regulations, be subject to taxation on the domestication to the extent their ordinary shares or warrants have a fair market value in excess of their tax basis. An Electing Shareholder (as described below) generally would not be subject to the adverse PFIC rules discussed above with respect to their ordinary shares but rather would include annually in gross income its pro rata share of the ordinary earnings and net capital gain of GPIA, whether or not such amounts are actually distributed.

D. Impact of PFIC Rules on U.S. Holders of GPIA Ordinary Shares

The impact of the PFIC rules on a U.S. Holder of GPIA ordinary shares will depend on whether the U.S. Holder has made a timely and effective election to treat GPIA as a “qualified electing fund” under Section 1295 of the Code for the tax year that is the first year in the U.S. Holder’s holding period of GPIA ordinary shares during which GPIA qualified as a PFIC (a “QEF Election”). A U.S. Holder’s ability to make a QEF Election with respect to GPIA is contingent upon, among other things, the provision by GPIA of a “PFIC Annual Information Statement” to such U.S. Holder. GPIA will endeavor to make available such information statements to U.S. Holders upon request but no

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assurance can be made that GPIA will make such information statement available to a U.S. Holder. A U.S. Holder of GPIA that made a QEF Election may be referred to as an “Electing Shareholder” and a U.S. Holder of GPIA that did not make a QEF Election may be referred to as a “Non-Electing Shareholder”. A U.S. Holder is not able to make a QEF Election with respect to GPIA warrants.

A Non-Electing Shareholder may be subject to adverse tax consequences upon the sale of its GPIA ordinary shares and upon the domestication (as described below). If a Non-Electing Shareholder sells or is otherwise treated as disposing of its GPIA ordinary shares, the entire amount of any gain realized upon the sale will be treated as an “excess distribution” made in the year of sale and as a consequence will generally be treated as ordinary income, and, to the extent allocated to years prior to the year of sale, will be subject to a special interest charge.

The impact of the PFIC rules on a U.S. Holder of GPIA ordinary shares may also depend on whether the U.S. Holder has made an election under Section 1296 of the Code. U.S. Holders who hold (actually or constructively) stock of a foreign corporation that is classified as a PFIC may annually elect to mark such stock to its market value if such stock is regularly traded on an established exchange (a “mark-to-market election”). No assurance can be given that the GPIA ordinary shares are considered to be regularly traded for purposes of the mark-to-market election or whether the other requirements of this election are satisfied. If such an election is available and has been made, such U.S. Holders will generally not be subject to the special taxation rules of Section 1291 of the Code discussed herein. However, if the mark-to-market election is made by a Non-Electing Shareholder after the beginning of the holding period for the PFIC stock, then the Section 1291 rules will apply to certain dispositions of, distributions on and other amounts taxable with respect to GPIA ordinary shares. A mark-to-market election is not available with respect to GPIA warrants.

U.S. Holders are strongly urged to consult their tax advisors concerning the impact of the PFIC rules on the domestication, including, without limitation, whether a QEF Election, “deemed sale” election and/or “mark to market” election is available and whether a “deemed sale” election is available to the extent a timely QEF Election cannot be made with respect to their GPIA ordinary shares and the consequences to them of any such election.

Effects to U.S. Holders of GPIA Ordinary Shares Exercising Redemption Rights

The U.S. federal income tax consequences to a U.S. Holder of GPIA ordinary shares (which become RMNI common stock in the domestication) that exercises its redemption rights to receive cash from the trust account in exchange for all or a portion of its RMNI common stock will depend on whether the redemption qualifies as a sale of the RMNI common stock redeemed under Section 302 of the Code or is treated as a distribution under Section 301 of the Code. If the redemption qualifies as a sale of such U.S. Holder’s RMNI common stock redeemed, the holder will generally recognize capital gain or capital loss equal to the difference, if any, between the amount of cash received and such holder’s tax basis in the RMNI common stock redeemed.

Whether a redemption qualifies for sale treatment to a U.S. Holder will depend largely on the total amount of RMNI common stock treated as held by the U.S. Holder (including any shares constructively owned by the U.S. Holder as a result of owning RMNI warrants) relative to all of RMNI’s common stock outstanding both before and after the redemption (which will include any RMNI stock issued under the stock issuance proposal). The redemption of RMNI common stock will generally be treated as a sale of the RMNI common stock (rather than as a corporate distribution) if the redemption (i) is “substantially disproportionate” with respect to the U.S. Holder, (ii) results in a “complete termination” of the U.S. Holder’s interest in RMNI or (iii) is “not essentially equivalent to a dividend” with respect to the U.S. Holder. The redemption of RMNI common stock will not be essentially equivalent to a dividend if the redemption results in a “meaningful reduction” of the U.S. Holder’s proportionate interest in RMNI. Whether the redemption will result in a meaningful reduction in a U.S. Holder’s proportionate interest in RMNI will depend on the particular facts and circumstances. However, the IRS has indicated in a published ruling that even a small reduction in the proportionate interest of a minority stockholder in a publicly held corporation who exercises no control over corporate affairs may constitute such a “meaningful reduction”. In determining whether any of the foregoing tests are satisfied, a U.S. Holder takes into account not only RMNI common stock actually owned by the U.S. Holder, but also RMNI common stock constructively owned by the U.S. Holder. A U.S. Holder may constructively own, in addition to RMNI shares owned directly, shares owned by certain related individuals and entities in which the U.S. Holder has an interest or that have an interest in such U.S. Holder, as well as any shares the U.S. Holder has a right to acquire by exercise of an option, which would generally include RMNI common stock which could be acquired pursuant to an exercise of any RMNI warrants by such U.S. Holder.

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If the redemption does not qualify as a sale of the RMNI common stock redeemed, the U.S. Holder will be treated as receiving a corporate distribution from RMNI. Such distribution will generally be treated as a dividend for U.S. federal income tax purposes to the extent the distribution is paid out of RMNI’s current or accumulated earnings and profits (as determined under U.S. federal income tax principles). Distributions in excess of any such earnings and profits will generally be applied against and reduce the U.S. Holder’s basis in its other RMNI common stock (but not below zero) and, to the extent in excess of such basis, will be treated as capital gain from the sale or exchange of such redeemed shares. After the application of those rules, any remaining tax basis of the U.S. Holder in such holder’s RMNI common stock redeemed will generally be added to the U.S. Holder’s adjusted tax basis in its remaining RMNI common stock, or, if it has none, to the U.S. Holder’s adjusted tax basis in its RMNI warrants or possibly in other RMNI common stock shares constructively owned by such holder.

Because the domestication will occur immediately prior to the redemption of U.S. Holders that exercise redemption rights, U.S. Holders exercising redemption rights will be subject to the potential tax consequences of Section 367 of the Code as a result of the domestication discussed further above.

All U.S. Holders are urged to consult with their tax advisors as to the tax consequences of a redemption of all or a portion of their RMNI common stock pursuant to an exercise of redemption rights.

Effects of the Mergers to U.S. Holders

It is intended that the mergers will constitute an integrated transaction and qualify as a “reorganization” within the meaning of Section 368(a) of the Code and the discussion below assumes such qualification. In the event that the mergers do not so qualify, different tax consequences would result. All U.S. Holders are urged to consult a tax advisor as to the tax consequences to them in such a situation.

A. Rimini Street Stockholders

Assuming the mergers qualify as a “reorganization” within the meaning of Section 368(a) of the Code, U.S. Holders of Rimini Street common stock generally will not recognize gain or loss on the exchange of their Rimini Street common stock solely for shares of RMNI common stock in the mergers and their basis in and holding periods for their Rimini Street common stock will generally carry over to the RMNI common stock received in exchange therefor in the mergers.

If a U.S. Holder of Rimini Street common stock receives cash in lieu of a fractional share of RMNI common stock, such stockholder will be treated as having received the fractional share of RMNI common stock in the mergers and then as having received such cash in redemption of the fractional share of RMNI common stock. As a result, such redemption will be treated being a full payment in exchange for such fractional share under Section 302(a) of the Code provided the redemption is not essentially equivalent to a dividend to such stockholder and such stockholder generally would recognize gain or loss equal to the difference between the amount of cash received in lieu of such fractional share and the portion of such shareholder’s aggregate adjusted tax basis in the shares of Rimini Street common stock surrendered in the mergers which is allocable to such fractional share. This gain or loss generally will be capital gain or loss, and will be long-term capital gain or loss if such stockholder’s holding period for the Rimini Street common stock surrendered therefor is greater than one year as of the effective date of the mergers. The deductibility of capital losses is subject to limitations. Any basis allocated to the fractional share will reduce the basis of RMNI common stock as determined in the paragraph above, and any gain recognized with respect to such stockholder’s fractional share of RMNI common stock may not be taken into account in determining the basis of the whole shares of RMNI common stock received in the mergers. If the redemption is considered essentially equivalent to a dividend with respect to a stockholder, it will be treated as a distribution under Section 301 of the Code to such stockholder. See “— Effects to U.S. Holders of GPIA ordinary shares Exercising Redemption Rights ” above for further information on determining whether a redemption is essentially equivalent to a dividend with respect to a shareholder.

Certain Tax Reporting Rules

U.S. Holders of Rimini Street that are considered “significant holders” generally will be required to comply with certain reporting requirements. A U.S. Holder of Rimini Street would be viewed as a “significant holder” if, immediately before the mergers, such holder held 1% or more, by vote or value, of the total outstanding Rimini Street stock. Significant holders generally are required to file a statement with their U.S. federal income tax return for the taxable year that includes the consummation of the mergers. That statement must set forth the U.S. Holder’s tax basis

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in, and the fair market value of, the shares of Rimini Street stock surrendered in the mergers (both as determined immediately before the surrender of shares), the date of the mergers, and the name and employer identification numbers of Rimini Street, RMNI and Let’s Go, and the U.S. Holder will be required to retain permanent records of these facts. U.S. Holders of Rimini Street should consult their tax advisors as to whether they may be treated as a “significant holder”.

B. RMNI Stockholders

RMNI stockholders that receive RMNI stock in the domestication (i.e., former GPIA shareholders that do not exercise redemption rights with respect to their RMNI common stock) will not recognize gain or loss for U.S. federal income tax purposes solely as a result of the mergers.

NON-U.S. HOLDERS

Effects of the Domestication on non-U.S. Holders of GPIA Ordinary Shares or Warrants

The following describes U.S. federal income tax considerations relating to the ownership and disposition of RMNI common stock and warrants by a non-U.S. Holder after the domestication. For purposes of this discussion, a non-U.S. Holder means a beneficial owner of RMNI common stock or warrants who or that is, for U.S. federal income tax purposes, not a U.S. Holder (as defined above) or an entity or arrangement classified as a partnership for U.S. federal income tax purposes.

Distributions

In general, any distributions made to a non-U.S. Holder on shares of RMNI, to the extent paid out of RMNI’s current or accumulated earnings and profits (as determined under U.S. federal income tax principles), will constitute dividends for U.S. federal income tax purposes and, provided such dividends are not effectively connected with the non-U.S. Holder’s conduct of a trade or business within the United States, will be subject to withholding tax from the gross amount of the dividend at a rate of 30%, unless such non-U.S. Holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides proper certification of its eligibility for such reduced rate (usually on an IRS Form W-8BEN or W-8BEN-E, as applicable). Any distribution not constituting a dividend will be treated first as reducing (but not below zero) the non-U.S. Holder’s adjusted tax basis in its common stock or warrants of RMNI and then, to the extent such distribution exceeds the non-U.S. Holder’s adjusted tax basis, as gain realized from the sale or other disposition of the RMNI common stock or warrants, which will be treated as described under “ Non-U.S. Holders—Gain on Sale, Taxable Exchange or Other Taxable Disposition of RMNI Common Stock and Warrants ” below.

Dividends paid by RMNI to a non-U.S. Holder that are effectively connected with such non-U.S. Holder’s conduct of a trade or business within the United States (or if a tax treaty applies are attributable to a U.S. permanent establishment or fixed base maintained by the non-U.S. Holder) will generally not be subject to U.S. withholding tax, provided such non-U.S. Holder complies with certain certification and disclosure requirements (usually by providing an IRS Form W-8ECI). Instead, such dividends will generally be subject to U.S. federal income tax, net of certain deductions, at the same graduated individual or corporate rates applicable to U.S. Holders. If the non-U.S. Holder is a corporation, dividends that are effectively connected income may also be subject to a “branch profits tax”.

Gain on Sale, Taxable Exchange or Other Taxable Disposition of RMNI Common Stock and Warrants

A non-U.S. Holder will generally not be subject to U.S. federal income tax on gain realized on a sale or other disposition of RMNI common stock or warrants unless:

(i) such non-U.S. Holder is an individual who was present in the United States for 183 days or more in the taxable year of the disposition and certain other requirements are met, in which case any gain realized would generally be subject to a flat 30% U.S. federal income tax,
(ii) the gain is effectively connected with a trade or business of the non-U.S. Holder in the United States, (and, if an applicable treaty so requires, is attributable to the conduct of trade or business through a permanent establishment or fixed base in the United States in which case the gain would be subject to U.S. federal income tax on a net income basis at the regular graduated rates and in the manner applicable to U.S. Holders and, if the non-U.S. Holder is a corporation, an additional “branch profits tax” may also apply), or

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(iii) RMNI is or has been a U.S. real property holding corporation at any time within the five-year period preceding the disposition or the non-U.S. Holder’s holding period, whichever period is shorter, and either (A) the RMNI common stock has ceased to be regularly traded on an established securities market or (B) the non-U.S. Holder has owned or is deemed to have owned, at any time within the five-year period preceding the disposition or the non-U.S. Holder’s holding period, whichever period is shorter, more than 5% of RMNI’s common stock.

If the third bullet point above applies to a non-U.S. Holder, gain recognized by such holder on the sale, exchange or other disposition of RMNI common stock or warrants will be subject to tax at generally applicable U.S. federal income tax rates. In addition, a buyer of such stock or warrants from a non-U.S. Holder may be required to withhold U.S. income tax at a rate of 15% of the amount realized upon such disposition. We would be classified as a U.S. real property holding corporation if the fair market value of our “United States real property interests” equals or exceeds 50% of the sum of the fair market value of our worldwide real property interests plus our other assets used or held for use in a trade or business, as determined for U.S. federal income tax purposes. We do not expect to be classified as a U.S. real property holding corporation following the mergers. However, such determination is factual and in nature and subject to change and no assurance can be provided as to whether we are or will be a U.S. real property holding corporation with respect to a non-U.S. holder following the mergers or at any future time.

Information Reporting Requirements and Backup Withholding

Information returns will be filed with the IRS in connection with payments of dividends on and the proceeds from a sale or other disposition of RMNI common stock. A non-U.S. Holder may have to comply with certification procedures to establish that it is not a United States person for U.S. federal income tax purposes or otherwise establish an exemption in order to avoid information reporting and backup withholding requirements or to claim a reduced rate of withholding under an applicable income tax treaty. The amount of any backup withholding from a payment to a non-U.S. Holder will be allowed as a credit against such non-U.S. Holder’s U.S. federal income tax liability and may entitle such non-U.S. Holder to a refund, provided that the required information is furnished by such non-U.S. Holder to the IRS in a timely manner.

Foreign Account Tax Compliance Act

Sections 1471 through 1474 of the Code and the Treasury Regulations and administrative guidance promulgated thereunder (commonly referred as the “Foreign Account Tax Compliance Act” or “FATCA”) generally impose withholding at a rate of 30% in certain circumstances on dividends in respect of, and, after December 31, 2018, gross proceeds from the sale or other disposition of, securities (including GPIA ordinary shares or warrants and RMNI common stock or warrants) which are held by or through certain foreign financial institutions (including investment funds), unless any such institution (i) enters into, and complies with, an agreement with the IRS to report, on an annual basis, information with respect to interests in, and accounts maintained by, the institution that are owned by certain U.S. persons and by certain non-U.S. entities that are wholly or partially owned by U.S. persons and to withhold on certain payments, or (ii) if required under an intergovernmental agreement between the United States and an applicable foreign country, reports such information to its local tax authority, which will exchange such information with the U.S. authorities. An intergovernmental agreement between the United States and an applicable foreign country may modify these requirements. Accordingly, the entity through which GPIA ordinary shares or warrants or RMNI common stock or warrants are held will affect the determination of whether such withholding is required. Similarly, dividends in respect of, and, after December 31, 2018, gross proceeds from the sale or other disposition of, GPIA ordinary shares or warrants or RMNI common stock or warrants held by an investor that is a non-financial non-U.S. entity that does not qualify under certain exceptions will generally be subject to withholding at a rate of 30%, unless such entity either (i) certifies to the applicable withholding agent that such entity does not have any “substantial United States owners” or (ii) provides certain information regarding the entity’s “substantial United States owners”, which will in turn be provided to the U.S. Department of Treasury. All holders should consult their tax advisors regarding the possible implications of FATCA on their investment in GPIA ordinary shares or warrants or RMNI common stock or warrants.

 

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UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

On May 16, 2017, Rimini Street entered into an Agreement and Plan of Merger (the “merger agreement”) with GPIA for the purpose of effecting a business combination. The merger agreement provides that a wholly-owned subsidiary of GPIA (with such change expected to be made immediately following the consummation of the second merger) will merge with and into Rimini Street, with Rimini Street as the surviving corporation, after which Rimini Street will merge with and into GPIA, with GPIA as the surviving corporation. In connection with the mergers, GPIA will domesticate as a Delaware corporation prior to the mergers, and will change its name to “Rimini Street, Inc.”. Pursuant to the merger agreement, the merger will result in the conversion of all currently issued and outstanding shares of capital stock of Rimini Street into approximately 49.9 million shares of the common stock of RMNI. If the merger agreement is approved, Rimini Street will have the right to appoint seven of the nine members of the Board of Directors of RMNI, and the current stockholders of Rimini Street are expected to own at least 70% of the outstanding shares of RMNI. Accordingly, since substantially all of the assets of GPIA consist of cash and cash equivalents, the business combination will be accounted for as a reverse recapitalization whereby Rimini Street will be the acquirer for accounting and financial reporting purposes and GPIA will be the legal acquirer. Under a reverse recapitalization, the shares of GPIA remaining after public share redemptions, and the unrestricted net cash and equivalents on the date the business combination is consummated, will be accounted for as a capital infusion into Rimini Street, whereby all of the expenses incurred by Rimini Street related to the business combination will be charged to additional paid-in capital upon consummation of the mergers.

The pro forma financial information gives effect to the consummation of the business combination through the exchange of capital stock by the stockholders of Rimini Street, two alternative scenarios for redemption of public shares of GPIA by the holders thereof, repayment of debt based on the alternative redemption scenarios, and an equity infusion by GPIA’s Sponsor in the scenario where shareholders of GPIA elect to redeem public shares that would result in a reduction of GPIA’s available cash required to consummate the business combination to the minimum threshold specified in the merger agreement as a condition to the consummation of the first merger. Assumptions and estimates underlying the unaudited pro forma adjustments set forth in the unaudited pro forma condensed combined financial information are described in the accompanying notes. The unaudited pro forma condensed combined financial information has been presented for illustrative purposes only and is not necessarily indicative of the operating results and financial position that would have been achieved had the business combination occurred on the dates indicated. Further, the unaudited pro forma condensed combined financial information does not purport to project the future operating results or financial position of RMNI. The unaudited pro forma adjustments represent management's estimates based on information available as of the date of this unaudited pro forma condensed combined financial information and are subject to change as additional information becomes available and analyses are performed.

The unaudited pro forma condensed combined financial information should be read in conjunction with the accompanying notes to the unaudited pro forma condensed combined financial information. In addition, the unaudited pro forma condensed combined financial information was based on, and should be read in conjunction with, the following historical consolidated financial statements and accompanying notes, which are included in this joint proxy statement/prospectus:

historical unaudited condensed consolidated financial statements of Rimini Street as of and for the three-month period ended March 31, 2017, and the related notes to unaudited condensed consolidated financial statements;
historical unaudited condensed financial statements of GPIA as of and for the three-month period ended March 31, 2017, and the related notes to unaudited condensed consolidated financial statements;
historical audited consolidated financial statements of Rimini Street as of and for the year ended December 31, 2016, and the related notes to consolidated financial statements; and
historical audited consolidated financial statements of GPIA as of and for the year ended December 31, 2016, and the related notes to consolidated financial statements.

GPIA’s memorandum and articles of association provide that it must complete a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination (collectively referred to as a “GPIA business combination”) by May 26, 2017. On May 23, 2017, GPIA held an extraordinary general meeting of its shareholders whereby the shareholders approved an amendment to GPIA’s memorandum and articles of association to extend the date by which GPIA must consummate a GPIA business combination from May 26, 2017 to

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November 27, 2017. In connection with the extraordinary general meeting on May 23, 2017, the holders of 1,552,724 public shares of GPIA elected to redeem their shares for $10.05 per share, equating to aggregate public share redemptions of $15.6 million, which was paid from the GPIA trust account. As set forth in GPIA’s memorandum and articles of association, the holders of public shares of GPIA that did not elect to redeem their public shares on May 23, 2017, will have a subsequent opportunity to elect to redeem their public shares in connection with the shareholder vote to approve the business combination with Rimini Street, as described elsewhere in this joint proxy statement/prospectus.

Prior to consummation of the business combination, Rimini Street and GPIA may jointly elect to offer the lenders under the Credit Facility the ability to convert up to $21.0 million of obligations under the Credit Facility at $10.00 per share for 2,100,000 GPIA ordinary shares, effective immediately prior to the first merger. If Rimini Street and GPIA elect to make this offer, the lenders under the Credit Facility are under no obligation to accept it. Accordingly, we have not given pro forma effect to this in the accompanying unaudited pro forma condensed combined financial information.

The unaudited pro forma condensed combined financial information presents two scenarios as follows:

Scenario No. 1 gives effect only to the actual redemptions of 1,552,724 ordinary shares of GPIA in connection with GPIA’s extraordinary general meeting of shareholders on May 23, 2017, and no public share redemptions in connection with a subsequent extraordinary general meeting of shareholders of GPIA to be held to approve, among other things, the business combination. For purposes of the pro forma condensed combined balance sheet under this scenario, $157.6 million of cash and cash equivalents will be available from the GPIA trust account to permit repayment of GPIA’s related party note payable of $2.7 million, a prepayment of $99.9 million of principal and a make-whole interest payment of $31.5 million related to Rimini Street’s Credit Facility, and payment of all transaction costs and deferred underwriting fees of $23.4 million. In this scenario, no cash available from Rimini Street is used to make any payments in respect of the Credit Facility. For purposes of the pro forma condensed combined statements of operations under this scenario, outstanding debt of $14.7 million as of January 1, 2016 is assumed to have been repaid on that date, and borrowings under the Credit Facility of $107.5 million during 2016 are assumed to have not occurred since sufficient cash would have been available to avoid such borrowings. Under this scenario, the Credit Facility is treated as if it were a $125.0 million unfunded line of credit for the unaudited pro forma condensed combined statements of operations.
Scenario No. 2 modifies Scenario No. 1 to assume that in connection with the shareholder vote to approve the business combination with Rimini Street, holders of public shares of GPIA will elect to redeem public shares that result in a reduction of GPIA’s available cash required to consummate the business combination to the minimum threshold of $50.0 million specified in the merger agreement as a condition to the consummation of the first merger. This scenario gives effect to additional GPIA public share redemptions of approximately 14.2 million shares for aggregate redemption payments of $142.6 million, and a concurrent equity infusion of $35.0 million by GPIA’s Sponsor. For purposes of the pro forma condensed combined balance sheet under this scenario, $61.2 million of available cash is required for (i) payment of all transaction costs and deferred underwriting fees of $23.4 million, (ii) repayment of GPIA’s related party note payable of $2.7 million, and (iii) the minimum payment of $35.0 million required to be paid to the lenders under the Credit Facility. The payment of $35.0 million to the lenders is a condition to the consent given by the lenders to the mergers, resulting in a principal prepayment of $27.7 million and a make-whole interest payment of $7.3 million. Of the aggregate $61.2 million of cash and cash equivalents required, $50.0 million will be provided by GPIA, and $11.2 million will be provided from Rimini Street’s unrestricted cash and cash equivalents. For purposes of the pro forma condensed combined statements of operations under this scenario, outstanding debt of $14.7 million that was outstanding on January 1, 2016 (and subsequently repaid from Credit Facility borrowings) is assumed to have been repaid as of January 1, 2016, and the first $35.0 million of borrowings under the Credit Facility during 2016 are assumed to have not occurred since sufficient cash would have been available to avoid incurring debt and a make-whole payment would not have applied to borrowings that did not occur.

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RIMINI STREET, INC.
Unaudited Pro Forma Condensed Combined Balance Sheet
March 31, 2017
(Dollars in Thousands)

 
 
 
Scenario No. 1
Scenario No. 2
 
 
 
Pro Forma Adjustments
 
Pro Forma Adjustments
 
 
Rimini
Street(A)
GPIA(B)
May 2017
Redemptions
Reverse
Recapitalization
Debt
Payment
Pro Forma
Combined
Closing
Redemptions
Sponsor Equity/
Debt Repayment
Pro Forma
Combined
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
13,237
 
$
2
 
$
 
$
 
$
 
$
13,239
 
$
(8,509
) (J)
$
(2,683
) (K)
$
2,047
 
Restricted cash
 
20,112
 
 
 
 
 
 
 
134,081
(D)(E)(F)
 
(134,081
) (H)
 
20,112
 
 
 
 
 
 
 
 
20,112
 
Accounts receivable, prepaid expenses and other
 
65,810
 
 
256
 
 
 
 
 
 
 
 
 
 
 
66,066
 
 
 
 
 
 
 
 
66,066
 
Total current assets
 
99,159
 
 
258
 
 
 
 
 
 
 
 
 
 
 
99,417
 
 
 
 
 
 
 
 
88,225
 
Long-term assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted cash
 
 
 
173,227
 
 
(15,608
) (C)
 
(157,619
) (D)
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred debt issuance costs, net
 
3,675
 
 
 
 
 
 
 
 
 
 
 
 
 
3,675
 
 
 
 
 
 
 
 
3,675
 
Other long-term assets
 
5,938
 
 
 
 
 
 
 
 
 
 
 
 
 
5,938
 
 
 
 
 
 
 
 
5,938
 
Total assets
$
108,772
 
$
173,485
 
 
 
 
 
 
 
 
 
 
$
109,030
 
 
 
 
 
 
 
$
97,838
 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current maturities of long-term debt
$
48,131
 
$
 
$
 
$
 
$
(38,831
) (H)
$
9,300
 
$
38,831
(J)
$
 
$
48,131
 
Accounts payable, accrued expenses and other
 
57,603
 
 
134
 
 
 
 
 
 
 
 
 
 
 
57,737
 
 
 
 
 
 
 
 
57,737
 
Deferred revenue
 
138,684
 
 
 
 
 
 
 
 
 
 
 
 
 
138,684
 
 
 
 
 
 
 
 
138,684
 
Embedded derivative liability
 
10,500
 
 
 
 
 
 
 
 
 
 
(4,000
) (H)
 
6,500
 
 
4,000
(J)
 
(4,000)
(K)
 
6,500
 
Total current liabilities
 
254,918
 
 
134
 
 
 
 
 
 
 
 
 
 
 
212,221
 
 
 
 
 
 
 
 
251,052
 
Long-term liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, net of current maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contractual obligations, net of current maturities
 
122,296
 
 
 
 
 
 
 
 
 
 
(61,067
) (H)
 
61,229
 
 
61,067
(J)
 
(27,700
) (K)
 
94,596
 
Debt discount
 
(77,200
)
 
 
 
 
 
 
 
 
 
45,252
(I)
 
(31,948
)
 
(45,252
) (J)
 
12,567
(L)
 
(64,633
)
Long-term debt, net of current maturities
 
45,096
 
 
 
 
 
 
 
 
 
 
 
 
 
29,281
 
 
 
 
 
 
 
 
29,963
 
Note payable to related party
 
 
 
2,683
 
 
 
 
 
 
 
 
(2,683
) (H)
 
 
 
2,683
(J)
 
(2,683
) (K)
 
 
Warrant liability
 
7,871
 
 
 
 
 
 
 
(7,871
) (F)
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred revenue and other
 
28,304
 
 
6,037
 
 
 
 
 
(6,037
) (E)
 
 
 
 
28,304
 
 
 
 
 
 
 
 
28,304
 
Total liabilities
 
336,189
 
 
8,854
 
 
 
 
 
 
 
 
 
 
 
269,806
 
 
 
 
 
 
 
 
309,319
 
Ordinary shares subject to redemption
 
 
 
159,631
 
 
(15,608
) (C)
 
(144,023
) (D)
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders’ equity (deficit):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Convertible preferred stock
 
19,542
 
 
 
 
 
 
 
(19,542
) (G)
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary shares
 
 
 
1
 
 
 
 
 
(1
) (G)
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
102
 
 
 
 
 
 
 
(95
) (G)
 
 
 
 
7
 
 
 
 
 
 
 
 
7
 
Additional paid-in capital
 
19,459
 
 
7,995
 
 
 
 
 
151,341
(D)(E)(F)(G)
 
 
 
 
178,795
 
 
(142,590
) (J)
 
35,000
(K)
 
71,205
 
Accumulated other comprehensive loss
 
(935
)
 
 
 
 
 
 
 
 
 
 
 
 
(935
)
 
 
 
 
 
 
 
(935
)
Accumulated deficit
 
(265,585
)
 
(2,996
)
 
 
 
 
2,690
(F)(G)
 
(72,752
) (H)(I)
 
(338,643
)
 
72,752
(J)
 
(15,867
) (K)(L)
 
(281,758
)
Total stockholders' equity (deficit)
 
(227,417
)
 
5,000
 
 
 
 
 
 
 
 
 
 
 
(160,776
)
 
 
 
 
 
 
 
(211,481
)
Total liabilities and stockholders' equity (deficit)
$
108,772
 
$
173,485
 
 
 
 
 
 
 
 
 
 
$
109,030
 
 
 
 
 
 
 
$
97,838
 

See accompanying notes to unaudited pro forma condensed combined financial information.

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RIMINI STREET, INC.
Unaudited Pro Forma Condensed Combined Statement of Operations
For the Three Months Ended March 31, 2017
(Dollars in Thousands , Except Per Share Amounts )

 
 
 
Scenario No. 1
Scenario No. 2
 
Rimini
Street (AA)
GPIA (BB)
Pro Forma
Adjustments
Pro Forma
Combined
Pro Forma
Adjustments
Pro Forma
Combined
Net revenue
$
49,070
 
$
 
$
 
$
49,070
 
$
 
$
49,070
 
Cost of revenue
 
18,356
 
 
 
 
 
 
 
18,356
 
 
 
 
 
18,356
 
Gross profit
 
30,714
 
 
 
 
 
 
 
30,714
 
 
 
 
 
30,714
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and marketing
 
14,696
 
 
 
 
 
 
 
14,696
 
 
 
 
 
14,696
 
General and administrative
 
9,276
 
 
179
 
 
 
 
 
9,455
 
 
 
 
 
9,455
 
Litigation costs and related insurance recoveries:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Professional fees and other defense costs of litigation
 
4,971
 
 
 
 
 
 
 
4,971
 
 
 
 
 
4,971
 
Insurance recoveries
 
(1,026
)
 
 
 
 
 
 
(1,026
)
 
 
 
 
(1,026
)
Total operating expenses
 
27,917
 
 
179
 
 
 
 
 
28,096
 
 
 
 
 
28,096
 
Operating income (loss)
 
2,797
 
 
(179
)
 
 
 
 
2,618
 
 
 
 
 
2,618
 
Non-operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(9,936
)
 
 
 
9,894
(CC)
 
(42
)
 
(8,317
) (GG)
 
(8,359
)
Debt financing fees
 
(1,282
)
 
 
 
(7,713
) (CC)
 
(8,995
)
 
6,677
(GG)
 
(2,318
)
Loss on embedded derivatives and redeemable warrants, net
 
(5,702
)
 
 
 
5,702
(DD)
 
 
 
(3,400
) (DD)
 
(3,400
)
Other, net
 
89
 
 
175
 
 
(175
) (EE)
 
89
 
 
 
 
 
89
 
Loss before income taxes
 
(14,034
)
 
(4
)
 
 
 
 
(6,330
)
 
 
 
 
(11,370
)
Income tax expense
 
(441
)
 
 
 
 
 
 
(441
)
 
 
 
 
(441
)
Net loss
$
(14,475
)
$
(4
)
 
 
 
$
(6,771
)
 
 
 
$
(11,811
)
Net loss per share attributable to common stockholders - Basic and Diluted
$
(0.14
)
$
 
 
 
 
$
(0.10
)
 
 
 
$
(0.20
)
Weighted average number of common shares outstanding - Basic and Diluted
 
101,721
 
 
5,650
 
 
 
 
 
69,631
(FF)
 
 
 
 
58,943
(FF)

See accompanying notes to unaudited pro forma condensed combined financial information.

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RIMINI STREET, INC.
Unaudited Pro Forma Condensed Combined Statement of Operations
For the Year Ended December 31, 2016
(Dollars in Thousands , Except Per Share Amounts )

 
 
 
Scenario No. 1
Scenario No. 2
 
Rimini
Street ( HH )
GPIA ( II )
Pro Forma
Adjustments
Pro Forma
Combined
Pro Forma
Adjustments
Pro Forma
Combined
Net revenue
$
160,175
 
$
 
$
 
$
160,175
 
$
 
$
160,175
 
Cost of revenue
 
67,045
 
 
 
 
 
 
 
67,045
 
 
 
 
 
67,045
 
Gross profit
 
93,130
 
 
 
 
 
 
 
93,130
 
 
 
 
 
93,130
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and marketing
 
72,936
 
 
 
 
 
 
 
72,936
 
 
 
 
 
72,936
 
General and administrative
 
36,212
 
 
3,335
 
 
 
 
 
39,547
 
 
 
 
 
39,547
 
Litigation costs and related insurance recoveries:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-judgment interest
 
2,920
 
 
 
 
 
 
 
2,920
 
 
 
 
 
2,920
 
Professional fees and other defense costs of litigation
 
21,379
 
 
 
 
 
 
 
21,379
 
 
 
 
 
21,379
 
Insurance recoveries
 
(54,248
)
 
 
 
 
 
 
(54,248
)
 
 
 
 
(54,248
)
Total operating expenses
 
79,199
 
 
3,335
 
 
 
 
 
82,534
 
 
 
 
 
82,534
 
Operating income (loss)
 
13,931
 
 
(3,335
)
 
 
 
 
10,596
 
 
 
 
 
10,596
 
Non-operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(13,356
)
 
 
 
13,173
(CC)
 
(183
)
 
(5,685
) (GG)
 
(5,868
)
Debt financing fees
 
(6,371
)
 
 
 
(10,052
) (CC)
 
(16,423
)
 
4,271
(GG)
 
(12,152
)
Loss on embedded derivatives and redeemable warrants, net
 
(3,822
)
 
 
 
3,822
(DD)
 
 
 
(3,600
) (DD)
 
(3,600
)
Other, net
 
(1,787
)
 
474
 
 
(474
) (EE)
 
(1,787
)
 
 
 
 
(1,787
)
Loss before income taxes
 
(11,405
)
 
(2,861
)
 
 
 
 
(7,797
)
 
 
 
 
(12,811
)
Income tax expense
 
(1,532
)
 
 
 
 
 
 
(1,532
)
 
 
 
 
(1,532
)
Net loss
 
(12,937
)
 
(2,861
)
 
 
 
 
(9,329
)
 
 
 
 
(14,343
)
Deemed dividend for beneficial conversion feature
 
(10,000
)
 
 
 
 
 
 
(10,000
)
 
 
 
 
(10,000
)
Net loss attributable to common stockholders
$
(22,937
)
$
(2,861
)
 
 
 
$
(19,329
)
 
 
 
$
(24,343
)
Net loss per share attributable to common stockholders - Basic and Diluted
$
(0.23
)
$
(0.52
)
 
 
 
$
(0.33
)
 
 
 
$
(0.51
)
Weighted average number of common shares outstanding - Basic and Diluted
 
101,341
 
 
5,466
 
 
 
 
 
57,959
(JJ)
 
 
 
 
47,271
(JJ)

See accompanying notes to unaudited pro forma condensed combined financial information.

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RIMINI STREET, INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

1. Basis of Pro Forma Presentation

The unaudited pro forma condensed combined balance sheet at March 31, 2017 combines the historical unaudited condensed balance sheets of GPIA and Rimini Street as of March 31, 2017, giving effect to the business combination as if it had been consummated on March 31, 2017. The unaudited pro forma condensed combined statements of operations give effect to the business combination as if it had been consummated on January 1, 2016, and combine the historical consolidated statements of operations of GPIA and Rimini Street for each of (i) the three-month period ended March 31, 2017, and (ii) the year ended December 31, 2016. The historical consolidated statements of operations and balance sheet of GPIA conform to Rimini Street's financial statement presentation and accounting policies. The unaudited pro forma condensed combined financial information has been prepared based on the historical consolidated financial statements of GPIA and Rimini Street, and by accounting for the business combination as a reverse recapitalization since substantially all of GPIA’s assets consist of cash and equivalents and its activities prior to the business combination consisted solely of seeking a target business with whom to enter into a business combination. In accounting for the business combination as a reverse recapitalization, Rimini Street will be the acquirer for accounting and financial reporting purposes and GPIA will be the legal acquirer. Therefore, the shares of GPIA remaining after public share redemptions, and the unrestricted net cash and equivalents on the date the business combination is consummated will be accounted for as a capital infusion into Rimini Street.

The historical consolidated financial statements have been adjusted in the unaudited pro forma condensed combined financial information to give pro forma effect to events that are: (1) directly attributable to the business combination; (2) factually supportable; and (3) with respect to the statement of operations, expected to have a continuing impact on the combined results of operations. The unaudited pro forma condensed combined financial information does not reflect the impact of possible revenue enhancements or cost savings initiatives.

Pro forma effect has been given for GPIA’s public share redemptions in May 2017 because such redemptions reduce the proceeds that may be available from GPIA upon consummation of the business combination. However, pro forma effect is not given for an aggregate of $26.3 million of principal payments by Rimini Street after the date of the pro forma balance sheet since those payments are not directly attributable to the business combination. Excluded principal payments include those discussed in Note 12 to Rimini Street’s historical consolidated financial statements for the year ended December 31, 2016, as well as ongoing principal payments required under the Credit Facility. For the period from April 1, 2017 through June 30, 2017, excluded principal payments of $26.3 million consist of (i) a mandatory principal prepayment of $14.1 million in April 2017 in connection with an insurance settlement, (ii) a $4.0 million payment in May 2017 to satisfy the mandatory principal prepayment based on 75% of Excess Cash Flow for the first quarter of 2017, (iii) a $2.5 million additional principal prepayment in connection with the Third Amendment to the Credit Facility, (iv) required monthly principal payments in the aggregate of $5.3 million for April, May and June 2017, and (v) $0.4 million of customer payments for service periods exceeding one year that were applied as a mandatory principal prepayment under the Credit Facility.

2. Adjustments to Unaudited Pro Forma Condensed Combined Balance Sheet

(A)   Rimini Street Historical Balance Sheet . Represents the historical condensed consolidated balance sheet of Rimini Street as of March 31, 2017.

(B)   GPIA Historical Balance Sheet . Represents the historical condensed consolidated balance sheet of GPIA as of March 31, 2017.

   

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(C)   Public Share Redemption by GPIA Shareholders . Gives effect to an election exercised by holders of GPIA’s public shares to redeem 1,552,724 public shares (classified within temporary equity as of March 31, 2017) for aggregate consideration of $15.6 million in May 2017. Presented below is a summary of the pro forma impact of these public share redemptions on the issued and outstanding ordinary shares of GPIA (in thousands):

 
Historical
May 2017
Redemptions
Pro Forma
Scenario No. 1
Public shares:
 
 
 
 
 
 
 
 
 
Subject to possible redemption
 
15,896
 
 
(1,553
)
 
14,343
 
Not subject to redemption
 
1,354
 
 
 
 
1,354
 
Total public shares
 
17,250
 
 
(1,553
)
 
15,697
 
Shares owned by initial shareholder
 
4,312
 
 
 
 
4,312
 
Total
 
21,562
 
 
(1,553
)
 
20,009
 

Under Scenario No. 1, it is assumed that the holders of GPIA public shares do not elect further redemptions. Accordingly, the 20.0 million shares of GPIA shown in the table above will, upon the domestication, convert automatically by operation of law, on a one-for-one basis into shares of RMNI, as discussed in Note 2(G).

(D)   Release of GPIA Restricted Cash . Upon consummation of the transactions contemplated by the merger agreement and assuming no additional holders of GPIA public shares elect to redeem their shares in connection with the shareholder vote to approve the business combination with Rimini Street, as described elsewhere in the joint proxy statement/prospectus, the restrictions will be released on $157.6 million of cash and equivalents held in trust by GPIA as of March 31, 2017 (after giving effect to public share redemptions discussed in Note 2 (C)). Accordingly, such funds will be transferred to restricted cash of Rimini Street (since all of Rimini Street’s cash receipts are required to be deposited in accounts controlled by the lenders under the Credit Facility). As a result of holders of GPIA’s public shares not electing to redeem their shares, the carrying value of $144.0 million related to a total of approximately 14,343,000 ordinary shares of GPIA shown in the table in Note 2(C), will be reclassified from temporary equity to permanent equity due to the elimination of future public share redemption rights.

The table below presents the impact of the transfer of GPIA’s restricted cash and the impact on Rimini Street’s restricted cash of the other pro forma adjustments related to the recapitalization (in thousands):

Description
Pro Forma
Adjustment
Amount
Transfer of GPIA restricted cash
(D)
$
157,619
 
Payment of GPIA's liability for deferred underwriting fees
(E)
 
(6,037
)
Payment of transaction costs expected to be incurred after March 31, 2017:
 
 
 
 
Rimini Street
(E)
 
(13,600
)
GPIA
(E)
 
(3,740
)
Payment for cancellation of certain Rimini Street stock options
(F)
 
(161
)
Total
 
$
134,081
 

(E)   Payment of Rimini Street and GPIA Transaction Costs . Gives effect to the cash payment of transaction costs consisting of (i) GPIA’s deferred underwriting fees of $6.0 million that are included in long-term liabilities on its historical balance sheet as of March 31, 2017, (ii) additional transaction costs of $3.7 million that are expected to be incurred by GPIA in connection with the business combination, and (iii) transaction costs of $13.6 million that are expected to be incurred by Rimini Street in connection with the business combination. With respect to the transaction costs related to the business combination, all of the costs are reflected as a reduction of additional paid-in capital in the unaudited pro forma condensed combined balance sheet, since those amounts are direct and incremental costs associated with obtaining the capital infusion from GPIA.

   

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The table below presents a summary of the estimated transaction costs expected to be incurred after March 31, 2017 by Rimini Street and GPIA (in thousands):

 
Rimini
Street
GPIA
Investment banking and financial advisory
$
9,500
 
$
 
Legal contracts, due diligence and registration statement
 
3,250
 
 
2,405
 
Accounting, financial reporting, printing and other
 
850
 
 
1,336
 
Total
$
13,600
 
$
3,741
 

(F)   Rimini Street Warrant and Option Adjustments . As of March 31, 2017, the Origination Agent warrants issued by Rimini Street in connection with the Credit Facility were exercisable for approximately 14.1 million shares of Rimini Street common stock at an exercise price of $1.35 per share. The Origination Agent warrants are redeemable for cash at the option of the holder under certain circumstances that required classification as a liability of $7.9 million as of March 31, 2017. Subject to consummation of the business combination, the holder of Origination Agent warrants agreed to eliminate the cash redemption feature and the anti-dilution provisions associated with such warrants in exchange for the issuance of additional warrants to purchase up to 260,000 shares of Rimini Street common stock at $1.35 per share. After giving pro forma effect to these additional warrants, the holder of Origination Agent warrants will hold warrants to purchase up to an aggregate of approximately 14.4 million shares of Rimini Street common stock. As of March 31, 2017, the estimated fair value related to the additional warrant to purchase up to 260,000 shares of Rimini Street common stock amounted to $145,000. A pro forma adjustment is reflected as an increase in the accumulated deficit since the fair value of $145,000 will be charged to expense upon consummation of the transactions contemplated by the merger agreement. The holder of the Origination Agent warrants agreed that such warrants will be converted into warrants to purchase shares of RMNI common stock, with the number of shares and exercise price adjusted for the Exchange Ratio upon consummation of the transactions contemplated by the merger agreement. Due to the elimination of the cash redemption feature, upon consummation of the transactions contemplated by the merger agreement, the warrants will no longer be accounted for as a liability. Accordingly, a pro forma adjustment gives effect to the reclassification of the fair value of the warrants of $7.9 million to additional paid-in capital.

The holder of certain other warrants issued by Rimini Street for 344,828 shares of its Class A Common Stock pursuant to a guarantee arrangement entered into in October 2014, has agreed that immediately preceding the effectiveness of the first merger, such warrants will be converted to approximately 187,000 shares of Rimini Street Class A common stock using a cashless exercise formula and which, upon consummation of the business combination, based on the Exchange Ratio will result in approximately 46,000 shares of RMNI common stock being issued to the holder of such warrants. Since the fair value of these warrants is already reflected in Rimini Street’s historical financial statements, no pro forma adjustment for the par value of RMNI common stock is required since the amount is de minimis.

Outstanding stock options held by existing employees and service providers of Rimini Street will be converted into stock options for common stock of RMNI upon the same terms and conditions as are in effect with respect to such options immediately prior to the business combination, after giving effect to the Exchange Ratio. For outstanding stock options held by former employees and former service providers, Rimini Street will take commercially reasonable actions to make cash payments for an aggregate of up to $161,000 to effect the cancellation of such stock options prior to the effectiveness of the first merger. Accordingly, a pro forma adjustment gives effect to this cash payment of $161,000.

   

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(G)   Capital Structure Adjustments . Upon consummation of the transactions contemplated by the merger agreement, all of the outstanding shares of common stock and convertible preferred stock of Rimini Street will automatically convert into shares of common stock of RMNI. As a result of the domestication of GPIA as a Delaware corporation, the existing ordinary shares of GPIA with par value of $0.0001 per share will convert automatically by operation of law, on a one-for-one basis, into shares of RMNI common stock with a par value of $0.0001 per share. As of March 31, 2017, the following table summarizes the outstanding shares of Rimini Street that will be converted to shares of RMNI based on the Exchange Ratio that is expected to result in the issuance of one share of RMNI for every 4.0624 shares of Rimini Street (shares and dollars in thousands):

 
 
Rimini Street Shares to be Converted
Rimini Street Carrying Value
Type
Series/ Class
Shares
Exchange
Ratio
RMNI
Pro Forma
Preferred
Stock
Common
Stock
Additional
Paid-in Capital
Preferred
A
 
5,500
 
 
4.0624
 
 
1,354
 
$
493
 
$
 
$
 
Preferred
B
 
38,545
 
 
4.0624
 
 
9,488
 
 
9,142
 
 
 
 
 
Preferred
C
 
56,441
 
 
4.0624
 
 
13,894
 
 
9,907
 
 
 
 
 
Common
A
 
368
 
 
4.0624
 
 
91
 
 
 
 
 
 
 
Common
B
 
101,829
 
 
4.0624
 
 
25,066
 
 
 
 
102
 
 
 
Common Warrants
A
 
187
(1)
 
4.0624
 
 
46
 
 
 
 
 
 
 
Additional paid-in capital
 
 
 
n/a
 
 
 
 
 
 
 
19,459
 
Total
 
 
202,870
 
 
 
 
 
49,939
 
$
19,542
 
$
102
 
$
19,459
 
(1) Consists of currently outstanding warrants for 344,828 shares that will be converted using a cashless exercise formula upon the effectiveness of the first merger to approximately 187,000 shares of Rimini Street Class A common stock.

The table below presents the transition from the capital structures of GPIA and Rimini Street into the capital structure of RMNI, including the impact of the pro forma adjustments discussed herein to arrive at the Scenario No. 1 Pro Forma Combined number of shares of RMNI common stock, and the individual components of RMNI’s stockholders’ deficit as shown in the pro forma balance sheet as of March 31, 2017 (in thousands):

 
 
Scenario No. 1 Balance Sheet Classification of RMNI
 
Number
of Shares
Common
Stock
Additional
Paid-in Capital
Accumulated
 
OCI
Deficit
Total
Adjustments for GPIA (Notes 2(C) and (G)):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reclassify GPIA shares in temporary equity
 
15,896
 
$
1
 
$
159,630
 
$
 
$
 
$
159,631
 
Less GPIA redemptions on May 23, 2017
 
(1,553
)
 
 
 
(15,608
)
 
 
 
 
 
(15,608
)
Net GPIA shares reclassified from temporary equity
 
14,343
 
 
1
 
 
144,022
 
 
 
 
 
 
144,023
 
Eliminate GPIA historical accumulated deficit
 
 
 
 
 
(2,996
)
 
 
 
 
 
(2,996
)
GPIA shares outstanding in permanent equity
 
5,666
 
 
1
 
 
7,995
 
 
 
 
 
 
7,996
 
Net GPIA adjustments
 
20,009
 
 
2
 
 
149,021
 
 
 
 
 
 
149,023
 
Adjustments for Rimini Street (Note 2(G)):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conversion of Series A, B and C preferred stock
 
24,736
 
 
2
 
 
19,540
 
 
 
 
 
 
19,542
 
Conversion of Class A and B common stock
 
25,157
 
 
3
 
 
19,558
 
 
 
 
 
 
19,561
 
Cash-less exercise of warrants discussed above
 
46
 
 
 
 
 
 
 
 
 
 
 
Redemption of certain non-employee stock options
 
 
 
 
 
 
 
 
 
(161
)
 
(161
)
Accumulated other comprehensive income (OCI)
 
 
 
 
 
 
 
(935
)
 
 
 
(935
)
Historical accumulated deficit
 
 
 
 
 
 
 
 
 
(265,585
)
 
(265,585
)
Net Rimini Street adjustments
 
49,939
 
 
5
 
 
39,098
 
 
(935
)
 
(265,746
)
 
(227,578
)
Other pro forma adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transaction costs related to capital infusion (Note 2(E))
 
 
 
 
 
(17,340
)
 
 
 
 
 
(17,340
)
Reclassification of warrant liability to equity (Note 2(F))
 
 
 
 
 
7,871
 
 
 
 
 
 
7,871
 
Fair value of warrant issuable to lenders (Note 2(F))
 
 
 
 
 
145
 
 
 
 
(145
)
 
 
Embedded derivative fair value adjustment (Note 2(H))
 
 
 
 
 
 
 
 
 
4,000
 
 
4,000
 
Debt extinguishment charges (Note 2 (H))
 
 
 
 
 
 
 
 
 
(76,752
)
 
(76,752
)
Total other pro forma adjustments
 
 
 
 
 
(9,324
)
 
 
 
(72,897
)
 
(82,221
)
Pro Forma Combined under Scenario No.1
 
69,948
 
$
7
 
$
178,795
 
$
(935
)
$
(338,643
)
$
(160,776
)

   

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(H)   Prepayment of Rimini Street Credit Facility Debt . Assuming no additional redemptions by holders of GPIA’s public shares, as of March 31, 2017 all of the available cash of $134.1 million from the reverse recapitalization (after payment of all transaction costs and deferred underwriting fees of $23.4 million) will be used to make payments consisting of (i) a principal prepayment under the Credit Facility for $99.9 million, (ii) a make-whole interest payment of approximately $31.5 million due to the early payoff of the principal balance, and (iii) the repayment in full of outstanding related party debt of GPIA for $2.7 million. The make-whole interest payment of $31.5 million would be charged to debt extinguishment expense in the period of the payment, resulting in an increase in the accumulated deficit.

Under Rimini Street’s Credit Facility, the requirement to pay make-whole interest payments associated with certain principal prepayments is an embedded derivative. Accordingly, the assumed principal and make-whole interest payments discussed above would fully satisfy Rimini Street’s requirement to complete an equity offering for minimum net proceeds of $35.0 million by November 30, 2018. As a result, the reduction in the fair value of the embedded derivative liability of $4.0 million results in a corresponding gain of $4.0 million that reduces the accumulated deficit in the unaudited condensed combined balance sheet.

On a pro forma combined basis, the remaining contractual obligations under the Credit Facility as of March 31, 2017 will consist of the principal balance of $7.3 million, mandatory consulting fees of $6.0 million, and trigger event fees of $57.2 million, for a total of $70.5 million. The current portion of the remaining obligations consists of the remaining principal balance of $7.3 million and $2.0 million of annual mandatory consulting fees, for a total of $9.3 million. The remainder of the obligations under the Credit Facility of $61.2 million are classified as long-term liabilities since the trigger event fees of $57.2 million are payable upon the earlier of the termination date or the maturity date of the Credit Facility, and the remainder of the consulting fees are payable for $2.0 million in June 2018 and $2.0 million in June 2019. These increases in the accumulated deficit of $76.8 million are partially offset by the embedded derivative gain adjustment in Note 2(H) of $4.0 million, resulting in a net increase in the accumulated deficit of $72.8 million.

(I)   Extinguishment of Debt . As a result of the prepayment of $99.9 million of the principal balance under the Credit Facility, an extinguishment charge of $45.3 million would be required based on the 58.6% prorated amount of the debt discount associated with the prepayment. The combined impact of this extinguishment charge and the make-whole interest extinguishment charge of $31.5 million as discussed in Note 2(H), amounts to an increase in the accumulated deficit of $76.8 million as of March 31, 2017.

(J)   Additional GPIA Public Share Redemptions . Under Scenario No. 2, in connection with the vote of GPIA’s shareholders to approve the business combination with Rimini Street, we have assumed that holders of GPIA’s public shares will elect to redeem such number of public shares that would cause the GPIA available cash to be reduced to $15.0 million and GPIA’s Sponsor will be required to purchase incremental equity as discussed in Note 2(K) to increase the minimum available cash required to consummate the business combination to the $50.0 million threshold specified in the merger agreement as a condition to the consummation of the first merger. This public share redemption scenario gives effect to additional redemptions of approximately 14.2 million ordinary shares of GPIA at a price of $10.05 per share, resulting in aggregate cash redemption payments of approximately $142.6 million, and a corresponding decrease in additional paid-in capital. Due to the additional redemptions of GPIA public shares under Scenario No. 2, RMNI would be unable to make all of the payments under the Credit Facility as reflected in Note 2(H). As a result, a pro forma adjustment reverses all of the cash payments totaling $134.1 million as discussed in Note 2(H), and the elimination of the increase in the accumulated deficit of $76.8 million resulting from the debt extinguishment charges discussed in Note 2(I). The reduction in GPIA available cash of $142.6 million is partially offset by (i) the reversal of cash payments of $134.1 million made as part of the pro forma adjustments described in Note 2 (H), and (ii) the use of $8.5 million of Rimini Street’s cash and cash equivalents.

   

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Presented below is a summary of the pro forma impact of these redemptions between Scenario No. 1 and Scenario No. 2 with respect to the issued and outstanding ordinary shares of GPIA as of March 31, 2017 (in thousands):

 
Pro Forma
Scenario No. 1
Redemptions
Pro Forma
Scenario No. 2
Public shares:
 
 
 
 
 
 
 
 
 
Subject to possible redemption
 
14,343
 
 
(14,188
)
 
155
 
Not subject to redemption
 
1,354
 
 
 
 
1,354
 
Total public shares
 
15,697
 
 
(14,188
)
 
1,509
 
Shares owned by initial shareholder
 
4,312
 
 
 
 
4,312
 
Total
 
20,009
 
 
(14,188
)
 
5,821
 

(K)   GPIA’s Sponsor Equity Infusion and Debt Prepayment . The result of the pro forma adjustment discussed in Note 2(J) is that GPIA would only have $15.0 million of available cash in comparison to the $50.0 million minimum threshold specified in the merger agreement as a condition to the consummation of the first merger. GPIA’s Sponsor has entered into an equity commitment letter that provides an option to GPIA’s Sponsor to purchase up to 3,500,00 ordinary shares of GPIA at $10.00 per share up to a maximum of $35.0 million. To the extent that GPIA’s available cash at the time of the business combination is at least $15.0 million, GPIA’s Sponsor is obligated to purchase ordinary shares of GPIA in order to ensure that GPIA’s available cash is the minimum of $50.0 million required to consummate the business combination. For purposes of Scenario No. 2, we have assumed that the entire $35.0 million capital infusion from GPIA’s Sponsor will be required, and that upon consummation of the business combination the proceeds will be used to make a principal prepayment of $27.7 million and a make-whole interest payment of $7.3 million under the terms of the Credit Facility. The make-whole interest payment of $7.3 million would be charged to debt extinguishment expense in the period of the payment, resulting in an increase in the accumulated deficit. The assumed principal and make-whole interest payments under the Credit Facility would fully satisfy Rimini Street’s requirement to complete an equity offering for minimum net proceeds of $35.0 million by November 30, 2018. As a result, a pro forma adjustment reduces the fair value of the embedded derivative liability for $4.0 million with a corresponding reduction in the accumulated deficit. Additionally, we have assumed that the $2.7 million note payable to related party of GPIA will be paid from unrestricted cash and cash equivalents of Rimini Street.

The table below presents the pro forma impact to RMNI of additional public share redemptions of 14.2 million ordinary shares of GPIA, resulting in aggregate redemption payments of approximately $142.6 million as discussed in Note 2(J), and the equity infusion by GPIA’s Sponsor as discussed above as of March 31, 2017 (in thousands):

 
 
Scenario No. 2 Balance Sheet Classification of RMNI
 
Number
of Shares
Common
Stock
Additional
Paid-in Capital
Accumulated
 
OCI
Deficit
Total
Pro Forma Combined under Scenario No. 1
 
69,948
 
$
7
 
$
178,795
 
$
(935
)
$
(338,643
)
$
(160,776
)
Scenario No. 2 pro forma adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Additional redemptions (Note 2(J))
 
(14,188
)
 
 
 
(142,590
)
 
 
 
 
 
(142,590
)
Sponsor equity infusion (Note 2(K))
 
3,500
 
 
 
 
35,000
 
 
 
 
 
 
35,000
 
Scenario No. 1 closing redemption adjustments (Note 2(J))
 
 
 
 
 
 
 
 
 
72,752
 
 
72,752
 
Scenario No. 2 debt repayment adjustments (Note 2(L))
 
 
 
 
 
 
 
 
 
(15,867
)
 
(15,867
)
Pro Forma Combined under Scenario No. 2
 
59,260
 
$
7
 
$
71,205
 
$
(935
)
$
(281,758
)
$
(211,481
)

(L)   Extinguishment of Debt Under Scenario 2 . As a result of the prepayment of $27.7 million of the principal balance under the Credit Facility, an extinguishment charge of $12.6 million would be required based on the 16.3% prorated amount of the debt discount associated with the prepayment. The combined impact of this extinguishment charge and the make-whole interest extinguishment charge of $7.3 million as discussed in Note 2(K), results in an increase in the accumulated deficit of $19.9 million as of March 31, 2017. These increases in the accumulated deficit of $19.9 million are partially offset by a reduction due to the embedded derivative gain adjustment in Note 2(K) of $4.0 million, resulting in a net increase in the accumulated deficit of $15.9 million.

   

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3. Adjustments to Unaudited Pro Forma Condensed Combined Statements of Operations

(AA)   Rimini Street Historical Statement of Operations . Represents the historical condensed consolidated statement of operations of Rimini Street for the three months ended March 31, 2017.

(BB)   GPIA Historical Statement of Operations . Represents the historical condensed consolidated statement of operations of GPIA for the three months ended March 31, 2017.

(CC)   Interest Expense and Debt Financing Fees (Scenario No. 1) . As discussed in Note 2(H) for Scenario No. 1, a pro forma adjustment gives effect to the prepayment of $99.9 million of principal under the Credit Facility. Since the business combination is assumed to occur on January 1, 2016 for purposes of the pro forma condensed combined statements of operations, the make-whole interest payment assumed in Note 2(H) of $31.5 million as of March 31, 2017 would not have been required since make-whole interest payments are only applicable when amounts are borrowed and subsequently prepaid. Accordingly, for purposes of the pro forma condensed combined statements of operations the entire amount of the net proceeds of $134.1 million would have been available to enable the avoidance of all borrowings under the Credit Facility. A discussion of the pro forma treatment and related impact in the unaudited pro forma condensed combined statements of operations for the three months ended March 31, 2017 and the year ended December 31, 2016, are presented below.

Three Months Ended March 31, 2017 . Giving effect to the elimination of Credit Facility borrowings, the following table presents the historical debt balances as of January 1, 2017 and the pro forma adjustments to arrive at the balances used in Scenario No. 1, which are the basis for the calculation of interest expense and debt financing fees after giving effect to the ability to avoid borrowings in 2016 under the Credit Facility:

 
Historical
Pro Forma
Adjustments
Pro Forma
Scenario No. 1
Contractual obligations:
 
 
 
 
 
 
 
 
 
Principal balance
$
107,900
 
$
(107,900
) (1)
$
 
Mandatory trigger event exit fees
 
55,258
 
 
 
 
55,258
 
Mandatory consulting fee
 
6,000
 
 
 
 
6,000
 
Total
 
169,158
 
 
(107,900
)
 
61,258
 
Less debt discount
 
(81,094
)
 
81,094
(2)
 
 
Net carrying value
$
88,064
 
$
(26,806
)
$
61,258
 
(1) Represents the portion of the $134.1 million proceeds from consummation of the business combination assumed in Scenario No. 1 that are applied to principal reduction as discussed above.
(2) As a result of the assumption under Scenario No. 1 that no borrowings would have occurred under the Credit Facility, all debt discount and issuance costs would be accounted for as an unfunded line of credit whereby the costs would be amortized using the straight-line method ratably over the period from the date incurred through the maturity date of the Credit Facility in June 2020.

Based on the revised principal balances and net carrying value set forth in the table above, the pro forma adjustments to interest expense and debt financing fees under Scenario No. 1 for the three months ended March 31, 2017, are as follows (in thousands):

 
Historical
Pro Forma
Adjustments
Pro Forma
Scenario No. 1
Interest expense:
 
 
 
 
 
 
 
 
 
Credit Facility:
 
 
 
 
 
 
 
 
 
Interest at 12.0%
$
3,216
 
$
(3,216
) (1)
$
 
PIK interest at 3.0%
 
808
 
 
(808
) (1)
 
 
Accretion expense for funded debt
 
5,870
 
 
(5,870
) (1)(2)
 
 
Interest on other borrowings
 
42
 
 
 
 
42
 
Total interest expense
$
9,936
 
$
(9,894
)
$
42
 
Debt financing fees:
 
 
 
 
 
 
 
 
 
Fees payable monthly in cash:
 
 
 
 
 
 
 
 
 
Unused line fees
$
219
 
$
2,594
(3)
$
2,813
 
Collateral monitoring fees
 
674
 
 
(674
) (1)
 
 
Amortization of debt issuance costs related to unfunded debt
 
275
 
 
5,793
(2)
 
6,068
 
Amortization of prepaid agent fees
 
114
 
 
 
 
114
 
Total debt financing fees
$
1,282
 
$
7,713
 
$
8,995
 

   

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(1) A pro forma adjustment to eliminate the historical expense results from the assumed elimination of Credit Facility borrowings due to the application of a portion of the $134.1 million proceeds from consummation of the business combination assumed in Scenario No. 1.
(2) As a result of the assumption under Scenario No. 1 that no borrowings would have occurred under the Credit Facility, all debt discount and issuance costs related to the funded debt would be accounted for as an unfunded line of credit. Accordingly, all accretion expense has been eliminated and a pro forma adjustment is reflected under debt financing fees for amortization of all debt discounts and issuance costs using the straight-line method.
(3) Due to the assumption that no amounts would be borrowed under the Credit Facility, Rimini Street would be obligated to pay unused line fees on the (i) delayed draw A Term loan under the Credit Facility at 15.0% per annum, and (ii) the delayed draw B Term Loan under the Credit Facility at 5.0% per annum. Such unused line fees are assumed to have been paid for the entirety of the three months ended March 31, 2017.

Year Ended December 31, 2016. Upon giving effect to the consummation of the business combination on January 1, 2016, Rimini Street would have net available cash of $134.1 million (after payment of all transaction costs and deferred underwriting fees of $23.4 million) as discussed in Note 2(D). The pro forma adjustments assume that Rimini Street would have utilized the $134.1 million of available cash to (i) repay $14.8 million of outstanding debt that was outstanding on January 1, 2016, and (ii) avoid the need to borrow an aggregate of $107.5 million drawn under the Credit Facility in 2016. While no borrowings would be assumed under the Credit Facility, Rimini Street would remain obligated for the future repayment of other contractual obligations for trigger event fees and mandatory consulting fees which amount to $61.3 million as of December 31, 2016, and would retain the ability to borrow up to the entire commitment of $125.0 million. Accordingly, pro forma adjustments give effect to (i) reclassification of all debt discount and issuance costs (except for original issue discount which would no longer be incurred under Scenario No. 1) historically associated with the funded portion of the Credit Facility of $88.4 million to the unfunded debt, whereby amortization is computed using the straight-line method through the maturity date in June 2020, (ii) unused line fees are computed for the entire commitment with respect to the delayed draw A Term Loan and B Term Loan under the Credit Facility, and (iii) collateral monitoring fees are eliminated since no borrowings are assumed to be outstanding. Accordingly, the pro forma adjustments to interest expense and debt financing fees for the year ended December 31, 2016, are set forth below (in thousands):

 
Historical
Pro Forma
Adjustments
Pro Forma
Scenario No. 1
Interest expense:
 
 
 
 
 
 
 
 
 
Credit Facility:
 
 
 
 
 
 
 
 
 
Interest at 12.0%
$
3,597
 
$
(3,597
) (1)
$
 
PIK interest at 3.0%
 
900
 
 
(900
) (1)
 
 
Accretion expense for funded debt
 
8,371
 
 
(8,371
) (1)
 
 
Interest on other borrowings
 
488
 
 
(305
) (1)
 
183
 
Total interest expense
$
13,356
 
$
(13,173
)
$
183
 
Debt financing fees:
 
 
 
 
 
 
 
 
 
Fees payable monthly in cash:
 
 
 
 
 
 
 
 
 
Unused line fees
$
4,095
 
$
1,873
(2)
$
5,968
 
Collateral monitoring fees
 
538
 
 
(538
) (1)
 
 
Amortization of debt issuance costs
 
 
 
 
 
 
 
 
 
related to unfunded debt
 
1,501
 
 
8,717
(3)
 
10,218
 
Amortization of prepaid agent fees
 
237
 
 
 
 
237
 
Total debt financing fees
$
6,371
 
$
10,052
 
$
16,423
 
(1) Pro forma adjustment to eliminate the historical expense results from the assumed elimination of Credit Facility borrowings due to the application of a portion of the $134.1 million proceeds from consummation of the business combination, and the assumed prepayment of Rimini Street’s line of credit on January 1, 2016.
(2) Due to the assumption that no amounts would be borrowed under the Credit Facility, Rimini Street would be obligated to pay unused line fees on the (i) delayed draw A Term loan under the Credit Facility at 15.0% per annum, and (ii) delayed draw B Term Loan under the Credit Facility at 5.0% per annum. Such unused line fees are assumed to have been paid for the period from inception of the Credit Facility on June 24, 2016 through December 31, 2016.
(3) As a result of the pro forma assumption that no borrowings would be required under the Credit Facility, the debt discount and issuance costs were accounted for as an unfunded line of credit whereby the costs are amortized ratably over the period from the date incurred through the maturity date of the Credit Facility in June 2020.

   

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(DD)   Loss on Embedded Derivatives and Redeemable Warrants, Net . As discussed in Note 2(F), subject to consummation of the mergers, the holder of Origination Agent warrants agreed to eliminate the cash redemption feature associated with 14.1 million of warrants issued during 2016. Due to the existence of the redemption feature, the fair value of the warrants was classified as a liability in Rimini Street’s historical balance sheets and periodic changes in fair value were recognized as gains and losses in the historical statements of operations. Upon elimination of the cash redemption feature, the warrant liability will be reclassified to additional paid-in capital and changes in fair value will no longer be reflected in Rimini Street’s financial statements. Accordingly, upon giving effect to the consummation of the mergers and the amended terms agreed to with the Origination Agent, pro forma adjustments eliminated a gain on the redeemable warrants of $1.6 million for the year ended December 31, 2016, and a loss on the redeemable warrants of $0.6 million for the three months ended March 31, 2017.

For the year ended December 31, 2016 and the three months ended March 31, 2017, Rimini Street recognized losses related to the fair valued of embedded derivatives of $5.4 million and $5.1 million, respectively. The embedded derivatives include default interest and make-whole interest features associated with the Credit Facility. Under Scenario No. 1, no borrowings are assumed to be outstanding under the Credit Facility and no fair value would be associated with these embedded derivatives. Accordingly, a pro forma adjustment eliminates all losses related to embedded derivatives under Scenario No. 1. Under Scenario No. 2, the principal balance is approximately 33% lower than the historical balances. Therefore, in comparison to historical amounts, a pro forma adjustment reflects an embedded derivative loss of that is approximately 33% lower than the historical amounts, or $3.4 million for the three months ended March 31, 2017 and $3.6 million for the year ended December 31, 2016.

(EE)   Interest Income of GPIA . The entire amount of the capital infusion obtained from GPIA in the reverse recapitalization will be utilized to repay indebtedness and related transaction costs associated with the business combination. Accordingly, a pro forma adjustment is reflected to eliminate 100% of the interest income reported in GPIA’s historical statements of operations for the year ended December 31, 2016 and the three months ended March 31, 2017, since the business combination is given effect as of the beginning of the period covered by the pro forma statements of operations.

(FF)   Weighted Average Shares Outstanding for the Three Months Ended March 31, 2017 . The following table summarizes the shares of capital stock of Rimini Street that will be converted to shares of common stock of RMNI based on the Exchange Ratio in the business combination, along with the calculation of the weighted average number of shares upon conversion to RMNI shares for the three months ended March 31, 2017 (in thousands):

 
Preferred Stock
Common Stock
 
 
 
Series A
Series B
Series C
Class A
Class B
Warrants
Total
Total Rimini Street shares convertible to RMNI shares (Note 2(G))
 
5,500
 
 
38,545
 
 
56,441
 
 
368
 
 
101,829
 
 
187
 
 
202,870
 
Rimini Street Weighted Average Shares Outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock per historical financial statements
 
 
 
 
 
 
 
361
 
 
101,360
 
 
 
 
101,721
 
Preferred stock convertible to common stock
 
5,500
 
 
38,545
 
 
56,441
 
 
 
 
 
 
 
 
 
100,486
 
Warrants convertible to common stock
 
 
 
 
 
 
 
 
 
 
 
187
 
 
187
 
Total
 
5,500
 
 
38,545
 
 
56,441
 
 
361
 
 
101,360
 
 
187
 
 
202,394
 
Effect of Exchange Ratio to RMNI common stock
 
1,354
 
 
9,488
 
 
13,894
 
 
89
 
 
24,951
 
 
46
 
 
49,822
 

   

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Presented below for the three months ended March 31, 2017, is the calculation of the weighted average number of RMNI shares under (i) Scenario No. 1 where no additional public share redemptions of GPIA are assumed as described in Note 2(H), and (ii) Scenario No. 2 where additional public share redemptions of GPIA are assumed as described in Note 2(K), and GPIA’s Sponsor equity infusion is assumed as described in Note 2(K) (in thousands):

 
Scenario No. 1
Scenario No. 2
GPIA weighted average shares outstanding, as converted:
 
 
 
 
 
 
Ordinary shares per historical financial statements
 
5,466
 
 
5,466
 
Ordinary shares not redeemed (Notes 2(C) and (J))
 
14,343
 
 
155
 
GPIA Sponsor equity infusion (Note 2(K))
 
 
 
3,500
 
Total for GPIA
 
19,809
 
 
9,121
 
Rimini Street weighted average shares outstanding, as converted
 
49,822
 
 
49,822
 
RMNI pro forma combined
 
69,631
 
 
58,943
 

For the three months ended March 31, 2017, outstanding common stock equivalents have been excluded from the weighted average number of shares outstanding since the impact on the calculation of earnings per share would be anti-dilutive. Accordingly, the weighted average number of shares outstanding is the same for the calculation of basic and diluted earnings per share.

(GG)   Interest Expense and Debt Financing Fees (Scenario No. 2) . As discussed in Note 2(J) and Note 2(K), for Scenario No. 2 a pro forma adjustment reverses the Scenario No. 1 assumption that no amounts would be borrowed under the Credit Facility, and assumes that a principal prepayment of $35.0 million is made from the proceeds of the equity infusion from GPIA’s Sponsor. Since the business combination is assumed to occur on January 1, 2016 for purposes of the pro forma condensed combined statements of operations, the make-whole interest payment assumed in Note 2(K) of $7.3 million as of March 31, 2017, would not have been required since make-whole interest payments are only applicable when amounts are borrowed and subsequently prepaid. A discussion of the pro forma treatment and related impact in the unaudited pro forma condensed combined statements of operations for the three months ended March 31, 2017 and the year ended December 31, 2016, are presented below.

Three Months Ended March 31, 2017. Rimini Street’s debt balances are the basis for the calculation of interest expense and debt financing fees after giving effect as of January 1, 2016 to the reduced prepayment contemplated in Scenario No. 2. The following table summarizes the impact on debt balances between Scenario No. 1 and Scenario No. 2 as of January 1, 2017 (in thousands):

 
Historical
Pro Forma
Scenario No. 1
Pro Forma
Adjustment
Pro Forma
Scenario No. 2
Contractual obligations:
 
 
 
 
 
 
 
 
 
 
 
 
Principal balance
$
107,900
 
$
 
$
72,393
(1)
$
72,393
 
Mandatory trigger event exit fees
 
55,258
 
 
55,258
 
 
 
 
55,258
 
Mandatory consulting fee
 
6,000
 
 
6,000
 
 
 
 
6,000
 
Total
 
169,158
 
 
61,258
 
 
72,393
 
 
133,651
 
Less debt discount
 
(81,094
)
 
 
 
(77,225
) (2)
 
(77,225
)
Net carrying value
$
88,064
 
$
61,258
 
$
(4,832
)
$
56,426
 
(1) Consists of (i) the assumed principal prepayment of $35.0 million in Scenario No. 2 as compared to the historical balance as of January 1, 2017, and (ii) an increase in PIK interest earned during 2016 under Scenario No. 2.
(2) Represents the reclassification to funded debt for debt discounts and issuance costs that were accounted for as costs associated with an unfunded line of credit under Scenario No. 1.

   

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Based on the revised principal balances and net carrying value set forth in the table above, the historical and pro forma adjustments to interest expense and debt financing fees under Scenario No. 2 for the three months ended March 31, 2017, are as follows (in thousands):

 
 
Pro Forma
 
Historical
Scenario No. 1
Adjustments
Scenario No. 2
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
Credit Facility:
 
 
 
 
 
 
 
 
 
 
 
 
Interest at 12.0%
$
3,216
 
$
 
$
2,162
(1)
$
2,162
 
PIK interest at 3.0%
 
808
 
 
 
 
541
(1)
 
541
 
Accretion expense for funded debt
 
5,870
 
 
 
 
5,614
(2)
 
5,614
 
Interest on other borrowings
 
42
 
 
42
 
 
 
 
42
 
Total interest expense
$
9,936
 
$
42
 
$
8,317
 
$
8,359
 
Debt financing fees:
 
 
 
 
 
 
 
 
 
 
 
 
Fees payable monthly in cash:
 
 
 
 
 
 
 
 
 
 
 
 
Unused line fees
$
219
 
$
2,813
 
$
(1,813
)
$
1,000
 
Collateral monitoring fees
 
674
 
 
 
 
448
(1)
 
448
 
Amortization of debt issuance costs
 
 
 
 
 
 
 
 
 
 
 
 
related to unfunded debt
 
275
 
 
6,068
 
 
(5,312
) (3)
 
756
 
Amortization of prepaid agent fees
 
114
 
 
114
 
 
 
 
114
 
Total debt financing fees
$
1,282
 
$
8,995
 
$
(6,677
)
$
2,318
 
(1) Pro forma adjustment is directly attributable to the increased principal balance between Scenario No. 1 and Scenario No. 2.
(2) Pro forma adjustment is directly attributable to the increased net carrying value shown above. Additionally, the effective interest rate for accretion of the debt discount and issuance costs was 26.7% for the historical period and 39.3% under Scenario No. 2 for the three months ended March 31, 2017.

Year Ended December 31, 2016. As discussed in Note 2(K), upon giving effect to the consummation of the business combination on January 1, 2016 under Scenario No. 2, RMNI would have net available cash of $23.9 million from the merger consisting of the following (in thousands):

Available cash from GPIA
$
50,000
 
Less transaction costs paid at closing:
 
 
 
Rimini Street costs
 
(13,600
)
GPIA costs
 
(3,741
)
Less liability for GPIA deferred underwriting fees
 
(6,037
)
Less repayment of GPIA related party note payable
 
(2,683
)
RMNI net available cash from merger
$
23,939
 

   

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In addition, unrestricted cash of Rimini Street of $11.2 million would also be utilized in order to have a minimum of $35.0 million available for debt repayment. Since the Credit Facility was not outstanding for the entire year, the debt repayment is assumed to eliminate borrowings under the Credit Facility as actual borrowings occurred until the entire $35.0 million is utilized. Accordingly, the pro forma adjustments for the year ended December 31, 2016 assume that RMNI would have utilized the $35.0 million of available cash to (i) repay $14.7 million of debt under a line of credit that was outstanding on January 1, 2016, (ii) avoid the need to borrow $30.0 million under the Credit Facility on June 24, 2016 (of which $14.7 million was used to repay debt under the line of credit; therefore, in order to avoid duplication, these funds are assumed to be available to repay debt under the Credit Facility), and (iii) avoid the need to borrow $5.0 million under the Credit Facility on October 28, 2016. The pro forma adjustments to interest expense and debt financing fees for the year ended December 31, 2016, are set forth below:

 
 
Pro Forma
 
Historical
Scenario No. 1
Adjustments
Scenario No. 2
Interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
Credit Facility:
 
 
 
 
 
 
 
 
 
 
 
 
Interest at 12.0%
$
3,597
 
$
 
$
1,570
(1)
$
1,570
 
PIK interest at 3.0%
 
900
 
 
 
 
393
(1)
 
393
 
Accretion expense for funded debt
 
8,371
 
 
 
 
3,722
(2)
 
3,722
 
Interest on other borrowings
 
488
 
 
183
 
 
 
 
183
 
Total interest expense
$
13,356
 
$
183
 
$
5,685
 
$
5,868
 
Debt financing fees:
 
 
 
 
 
 
 
 
 
 
 
 
Fees payable monthly in cash:
 
 
 
 
 
 
 
 
 
 
 
 
Unused line fees
$
4,095
 
$
5,968
 
$
(1,151
) (3)
$
4,817
 
Collateral monitoring fees
 
538
 
 
 
 
327
(4)
 
327
 
Amortization of debt issuance costs related to unfunded debt
 
1,501
 
 
10,218
 
 
(3,447
) (5)
 
6,771
 
Amortization of prepaid agent fees
 
237
 
 
237
 
 
 
 
237
 
Total debt financing fees
$
6,371
 
$
16,423
 
$
(4,271
)
$
12,152
 
(1) Pro forma adjustment is directly attributable to increased Credit Facility borrowings compared to Scenario No. 1. The pro forma adjustment is comprised of the historical interest expense, less a reduction in interest expense related to un-borrowed funds of $35.0 million.
(2) Pro forma adjustment is directly attributable to the reclassification of certain debt issuance costs to unfunded debt where they were amortized as discussed under footnote (5) below since no borrowings under the Credit Facility were assumed to be outstanding until October 28, 2016. Additionally, the effective interest rate for accretion of the debt discount and issuance costs was 25.6% for the historical period and 38.9% under Scenario No. 2 as of December 31, 2016.
(3) Pro forma adjustment to decrease unused line fees compared to Scenario No. 1 is based on additional borrowings resulting from less available cash for debt repayment. Unused line fees are computed based on the contractual rates of 15.0% under the delayed draw A Term Loan and 5.0% under the delayed draw B Term Loan.
(4) Pro forma adjustment is based on the higher principal balance under Scenario No. 2 based on the contractual rate charged for collateral monitoring fees in effect during 2016.
(5) Based on the additional $35.0 million that was assumed to be un-borrowed in 2016, additional amounts were allocated to the unfunded debt, and accounted for as an unfunded line of credit whereby the costs are amortized ratably over the period from the date incurred through the maturity date of the Credit Facility in June 2020.

(HH)   Rimini Street Historical Statement of Operations . Represents the historical condensed consolidated statement of operations of Rimini Street for the year ended December 31, 2016.

(II)   GPIA Historical Statement of Operations . Represents the historical condensed consolidated statement of operations of GPIA for the year ended December 31, 2016.

   

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(JJ)   Weighted Average Shares Outstanding for the Year Ended December 31, 2016 . The following table summarizes the shares of capital stock of Rimini Street that will be converted into shares of the common stock of RMNI based on the Exchange Ratio in the business combination, along with the calculation of the weighted average number of shares upon conversion to RMNI shares for the year ended December 31, 2016 (in thousands):

 
Preferred Stock
Common Stock
 
 
 
Series A
Series B
Series C
Class A
Class B
Warrants
Total
Total Rimini Street shares convertible to RMNI shares (Note 2(G))
 
5,500
 
 
38,545
 
 
56,441
 
 
368
 
 
101,829
 
 
187
 
 
202,870
 
Rimini Street Weighted Average Shares Outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock per historical financial statements
 
 
 
 
 
 
 
335
 
 
101,006
 
 
 
 
101,341
 
Preferred stock convertible to common stock
 
5,500
 
 
38,545
 
 
9,407
 
 
 
 
 
 
 
 
 
53,452
 
Warrants convertible to common stock
 
 
 
 
 
 
 
 
 
 
 
187
 
 
187
 
Total
 
5,500
 
 
38,545
 
 
9,407
 
 
335
 
 
101,006
 
 
187
 
 
154,980
 
Effect of Exchange Ratio to RMNI common stock
 
1,354
 
 
9,488
 
 
2,316
 
 
82
 
 
24,864
 
 
46
 
 
38,150
 

Presented below for the year ended December 31, 2016, is the calculation of the weighted average number of RMNI shares under (i) Scenario No. 1 where no additional GPIA public share redemptions are assumed as described in Note 2(H), and (ii) Scenario No. 2 where additional GPIA public share redemptions are assumed as described in Note 2(J), and the equity infusion from GPIA’s Sponsor is assumed as described in Note 2(K) (in thousands):

 
Scenario No. 1
Scenario No. 2
GPIA weighted average shares outstanding, as converted:
 
 
 
 
 
 
Ordinary shares per historical financial statements
 
5,466
 
 
5,466
 
Ordinary shares not redeemed
 
14,343
 
 
155
 
GPIA Sponsor equity infusion
 
 
 
3,500
 
Total for GPIA
 
19,809
 
 
9,121
 
Rimini Street weighted average shares outstanding, as converted
 
38,150
 
 
38,150
 
RMNI pro forma combined
 
57,959
 
 
47,271
 

For the year ended December 31, 2016, outstanding common stock equivalents have been excluded from the weighted average number of shares outstanding since the impact on the calculation of earnings per share would be anti-dilutive. Accordingly, the weighted average number of shares outstanding is the same for the calculation of basic and diluted earnings per share.

   

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COMPARISON OF CORPORATE GOVERNANCE AND SHAREHOLDER RIGHTS

GPIA is an exempted company incorporated under the Cayman Islands Companies Law (2016 Revision) (the “Cayman Islands Companies Law”). The Cayman Islands Companies Law and GPIA’s memorandum and articles of association govern the rights of its shareholders. The Cayman Islands Companies Law differs in some material respects from laws generally applicable to United States corporations and their stockholders. In addition, the memorandum and articles of association will differ in certain material respects from the certificate of incorporation and bylaws of Rimini Street. As a result, when you become a stockholder of RMNI, your rights will differ in some regards as compared to when you were a shareholder of GPIA.

Below is a summary chart outlining important similarities and differences in the corporate governance and stockholder/shareholder rights associated with each of GPIA and RMNI according to applicable law and/or the organizational documents of GPIA and RMNI. You also should review the certificate of incorporation and bylaws of RMNI attached hereto as Annexes C and D to this joint proxy statement/prospectus, as well as the Delaware corporate law and corporate laws of the Cayman Islands, including the Cayman Islands Companies Law, to understand how these laws apply to GPIA and RMNI.

 
Delaware
Cayman Islands
Stockholder/Shareholder Approval of Business Combinations
Mergers generally require approval of a majority of all outstanding shares.
   
Mergers in which less than 20% of the acquirer’s stock is issued generally do not require acquirer stockholder approval.
   
Mergers in which one corporation owns 90% or more of a second corporation may be completed without the vote of the second corporation’s board of directors or stockholders.
Mergers require a special resolution, and any other authorization as may be specified in the relevant articles of association. Parties holding certain security interests in the constituent companies must also consent.
   
All mergers (other than parent/subsidiary mergers) require shareholder approval—there is no exception for smaller mergers.
   
Where a bidder has acquired 90% or more of the shares in a Cayman Islands company, it can compel the acquisition of the shares of the remaining shareholders and thereby become the sole shareholder.
   
A Cayman Islands company may also be acquired through a “scheme of arrangement” sanctioned by a Cayman Islands court and approved by 50%+1 in number and 75% in value of shareholders in attendance and voting at a shareholders’ meeting.
 
 
 
Stockholder/Shareholder Votes for Routine Matters
Generally, approval of routine corporate matters that are put to a stockholder vote require the affirmative vote of the majority of shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter.
Under the Cayman Islands Companies Law and GPIA’s memorandum and articles of association law, routine corporate matters may be approved by an ordinary resolution (being a resolution passed by a simple majority of the shareholders as being entitled to do so).

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Delaware
Cayman Islands
Appraisal Rights
Generally a stockholder of a publicly traded corporation does not have appraisal rights in connection with a merger, except in certain circumstances.
Minority shareholders that dissent from a merger are entitled to be paid the fair market value of their shares, which if necessary may ultimately be determined by the court.
 
 
 
Inspection of Books and Records
Any stockholder may inspect the corporation’s books and records for a proper purpose during the usual hours for business.
Shareholders generally do not have any rights to inspect or obtain copies of the register of shareholders or other corporate records of a company.
 
 
 
Stockholder/Shareholder Lawsuits
A stockholder may bring a derivative suit subject to procedural requirements (including adopting Delaware as the exclusive forum as per Organizational Documents Proposal G).
In the Cayman Islands, the decision to institute proceedings on behalf of a company is generally taken by the company’s board of directors. A shareholder may be entitled to bring a derivative action on behalf of the company, but only in certain limited circumstances.
 
 
 
Fiduciary Duties of Directors
Directors must exercise a duty of care and duty of loyalty and good faith to the company and its stockholders.
A director owes fiduciary duties to a company, including to exercise loyalty, honesty and good faith to the company as a whole.
   
In addition to fiduciary duties, directors owe a duty of care, diligence and skill.
   
Such duties are owed to the company but may be owed direct to creditors or shareholders in certain limited circumstances.
 
 
 
Indemnification of Directors and Officers
A corporation is generally permitted to indemnify its directors and officers acting in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation.
A Cayman Islands company generally may indemnify its directors or officers except with regard to fraud or willful default.
 
 
 
Limited Liability of Directors
Permits limiting or eliminating the monetary liability of a director to a corporation or its stockholders, except with regard to breaches of duty of loyalty, intentional misconduct, unlawful repurchases or dividends, or improper personal benefit.
Liability of directors may be unlimited, except with regard to their own fraud or willful default.

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OTHER INFORMATION RELATED TO GPIA

Introduction

GPIA was incorporated on January 28, 2015 in order to serve as a vehicle for the acquisition of a target business. GPIA’s efforts to identify a prospective target business were not limited to any particular industry or geographic region and it did not focus on any specific type of company or any specific geographic region in its search for a target business. Prior to executing the merger agreement with Rimini Street, GPIA’s efforts were limited to organizational activities, completion of its initial public offering, the evaluation of possible business combinations, the execution of a definitive merger agreement with World Kitchen, activities relating to seeking shareholder approval of such acquisition and the termination of such acquisition.

Formation

On March 2, 2015, GPIA issued 4,312,500 ordinary shares to GPIA, LLC, a company whose sole member is the Sponsor (which are referred to as the founder shares), for an aggregate purchase price of $25,000. The 4,312,500 founder shares included an aggregate of up to 562,500 shares subject to forfeiture by the initial shareholders (or their permitted transferees) on a pro rata basis depending on the extent to which the underwriter’s over-allotment was exercised. As a result of the underwriter’s election to exercise its full over-allotment option to purchase 2,250,000 units on May 26, 2015, 562,500 founder shares were no longer subject to forfeiture. The founder shares are identical to the public shares included in the units sold in our initial public offering described below, except that (1) the founder shares are subject to certain transfer restrictions, as described in more detail below, and (2) the initial shareholders have agreed in the insider letter agreement (i) to waive their redemption rights with respect to the founder shares and public shares purchased during or after our initial public offering in connection with the completion of a business combination and (ii) to waive their rights to liquidating distributions from the trust account with respect to the founder shares if GPIA fails to complete a business combination by November 27, 2017, which is the date on which our shareholders agreed in an extraordinary general meeting held on May 23, 2017 to extend such deadline.

Initial Public Offering

On May 26, 2015, GPIA consummated its initial public offering of 17,250,000 units, with each unit consisting of one ordinary share and one-half of a warrant to acquire one ordinary share at a price of $11.50. The units were sold at an offering price of $10.00 per unit, generating gross proceeds of $172,500,000. The ordinary shares and warrants comprising the units commenced separate trading on July 10, 2015.

Simultaneously with the closing of our initial public offering, GPIA consummated the sale of 6,062,500 private placement warrants at a price of $1.00 per warrant in a private placement to the Sponsor, generating gross proceeds of $6,062,500.

The founder shares are identical to the ordinary shares included in the units that were sold in our initial public offering, except that:

the founder shares are subject to certain transfer restrictions, as described in more detail in this joint proxy statement/prospectus; and
our initial shareholders have agreed in the insider letter agreement (i) to waive their redemption rights with respect to their founder shares and public shares in connection with the completion of our initial business combination and (ii) to waive their rights to liquidating distributions from the trust account with respect to their founder shares if we fail to complete our initial business combination by November 27, 2017, although they will be entitled to liquidating distributions from the trust account with respect to any public shares they hold if we fail to complete our business combination within the prescribed time frame. If we submit our initial business combination to our public shareholders for a vote, our initial shareholders have entered into letter agreements with us to vote their founder shares and any public shares purchased during or after our initial public offering in favor of our initial business combination.

Offering Proceeds Held in Trust

A total of $172,500,000, comprised of approximately $166,437,500 of the proceeds from our initial public offering, including $6,037,500 of underwriters’ deferred discount, and $6,062,500 of the proceeds of the sale of the private placement warrants were placed in a trust account maintained by Continental Stock Transfer & Trust

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Company, acting as trustee. As of March 31, 2017, there was cash and marketable securities held in the trust account of $173,227,105 and, as of May 25, 2017 (after giving effect to the redemptions of public shares redeemed in connection with the Extension), there was cash and marketable securities held in the trust account of $157,791,185. The funds in the trust account will not be released until the earlier of the completion of our initial business combination or the redemption of our public shares if we are unable to complete a business combination by November 27, 2017, although we may withdraw the interest earned on the funds held in the trust account to pay franchise and income taxes.

Fair Market Value of Target Business

The target business or businesses that GPIA acquires must collectively have a fair market value equal to at least 80% of the balance of the funds in the trust account at the time of the execution of a definitive agreement for its initial business combination, although GPIA may acquire a target business whose fair market value significantly exceeds 80% of the trust account balance. GPIA’s board of directors determined that this test was met in connection with the proposed business combination with Rimini Street.

Shareholder Approval of Business Combination

Under our memorandum and articles of association, in connection with any proposed business combination, GPIA must seek shareholder approval of an initial business combination at a meeting called for such purpose at which public shareholders may seek to redeem their public shares, subject to the limitations described in the prospectus for GPIA’s initial public offering. Accordingly, in connection with the business combination with Rimini Street, the public shareholders may seek to redeem all or a portion of the RMNI public shares that such public shareholder will hold upon the domestication in accordance with the procedures set forth in this joint proxy statement/prospectus.

Voting Restrictions in Connection with Shareholder Meeting

In connection with our initial public offering, our initial shareholders (consisting of the Sponsor and our independent directors at the time of our initial public offering) entered into letter agreements to vote their founder shares, as well as any public shares purchased during or after our initial public offering, in favor of the business combination proposal. In addition, on May 16, 2017, in connection with the transactions contemplated by the merger agreement, GPIAC, LLC entered into a transaction support and voting agreement with GPIA and Rimini Street, pursuant to which, among other things, GPIAC, LLC agreed to vote its GPIA ordinary shares in favor of the transactions at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, the aggregate number of shares covered by the transaction support and voting agreement entered into by GPIAC, LLC represents 21.3% of the outstanding GPIA ordinary shares. In addition, our independent directors have indicated that they intend to vote their shares in favor of all other proposals being presented at the extraordinary general meeting. As of the date of this joint proxy statement/prospectus, our independent directors own 0.3% of the outstanding GPIA ordinary shares.

At any time prior to the extraordinary general meeting, during a period when they are not then aware of any material nonpublic information regarding GPIA or its securities, the GPIA initial shareholders, Rimini Street and/or its affiliates may purchase shares from institutional and other investors who vote, or indicate an intention to vote, against the business combination proposal, or execute agreements to purchase such shares from such investors in the future, or they may enter into transactions with such investors and others to provide them with incentives to acquire shares of GPIA’s ordinary shares or vote their shares in favor of the business combination proposal. The purpose of such share purchases and other transactions would be to increase the likelihood of satisfaction of the requirements that (i) holders of a majority of the shares who, being present and entitled to vote at the extraordinary general meeting and who do vote, vote in favor of the business combination proposal, the stock issuance proposal and the adjournment proposal, (ii) holders of at least two-thirds of the shares who, being present and entitled to vote at the extraordinary general meeting and who do vote, vote in favor of the domestication proposal and the organizational documents proposals, and (iii) the minimum available cash condition $50,000,000 and the condition that the minimum trust account balance is $5,000,001 are satisfied. Any such share purchases and other transactions may thereby increase the likelihood of obtaining shareholder approval of the business combination. This may result in the completion of our first merger that may not otherwise have been possible. While the exact nature of any such incentives has not been determined as of the date of this joint proxy statement/prospectus, they might include, without limitation, arrangements to protect such investors or holders against potential loss in value of their shares, including the granting of put options and the transfer to such investors or holders of shares or rights owned by the GPIA initial shareholders for nominal value.

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Liquidation if No Business Combination

Our memorandum and articles of association provide that we will have only until November 27, 2017 to complete our initial business combination. If we are unable to complete our business combination within such 24-month period, we will: (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than 10 business days thereafter, redeem the public shares, at a per share price, payable in cash, equal to the aggregate amount then on deposit in the trust account including interest earned on the funds held in the trust account and not previously released to us to pay our franchise and income taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining shareholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under the Cayman Islands Companies Law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to our warrants, which will expire worthless if we fail to complete our business combination by November 27, 2017.

Our initial shareholders have entered into letter agreements with us, pursuant to which they have waived their rights to liquidating distributions from the trust account with respect to their founder shares if we fail to complete our initial business combination by November 27, 2017. However, if our initial shareholders acquire public shares in or after our initial public offering, they will be entitled to liquidating distributions from the trust account with respect to such public shares if we fail to complete our initial business combination by November 27, 2017. Such events might delay distribution of some or all of our assets to our public shareholders.

The Sponsor as well as our executive officers, directors and director nominees have agreed, pursuant to a written agreement with us, that they will not propose any amendment to our memorandum and articles of association that would affect the substance or timing of our obligation to redeem 100% of our public shares if we do not complete our initial business combination by November 27, 2017, unless we provide our public shareholders with the opportunity to redeem their ordinary shares upon approval of such amendment at a per share price, payable in cash, equal to the aggregate amount then on deposit in the trust account including interest earned on the funds held in the trust account and not previously released to us to pay our franchise and income taxes, divided by the number of then outstanding public shares. This redemption right shall apply in the event of the approval of any such amendment, whether proposed by the Sponsor, any executive officer, director or director nominee of GPIA, or any other person. However, we may not redeem our public shares in an amount that would cause our net tangible assets to be less than $5,000,001 (so that we are not subject to the SEC’s “penny stock” rules).

We may request the trustee to release to us an additional amount of up to $100,000 of accrued interest in the trust account to pay the costs and expenses associated with implementing our plan of dissolution, as well as payments to any creditors.

If we were to expend all of the net proceeds of our initial public offering, other than the proceeds deposited in the trust account, and without taking into account interest, if any, earned on the trust account, the per share redemption amount received by shareholders upon our dissolution would be approximately $10.00. The proceeds deposited in the trust account could, however, become subject to the claims of our creditors, which would have higher priority than the claims of our public shareholders. We cannot assure you that the actual per share redemption amount received by shareholders will not be substantially less than $10.00. While we intend to pay such amounts, if any, we cannot assure you that we will have funds sufficient to pay or provide for all creditors’ claims.

Although we will seek to have all vendors, service providers (other than our independent auditors), prospective target businesses or other entities with which we do business execute agreements with us waiving any right, title, interest or claim of any kind in or to any monies held in the trust account for the benefit of our public shareholders, there is no guarantee that they will execute such agreements or even if they execute such agreements that they would be prevented from bringing claims against the trust account including but not limited to fraudulent inducement, breach of fiduciary responsibility or other similar claims, as well as claims challenging the enforceability of the waiver, in each case in order to gain an advantage with respect to a claim against our assets, including the funds held in the trust account. If any third party refuses to execute an agreement waiving such claims to the monies held in the trust account, our management will perform an analysis of the alternatives available to it and will only enter into an agreement with a third party that has not executed a waiver if management believes that such third party’s engagement would be significantly more beneficial to us than any alternative. Examples of possible instances where

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we may engage a third party that refuses to execute a waiver include the engagement of a third party consultant whose particular expertise or skills are believed by management to be significantly superior to those of other consultants that would agree to execute a waiver or in cases where management is unable to find a service provider willing to execute a waiver. In addition, there is no guarantee that such entities will agree to waive any claims they may have in the future as a result of, or arising out of, any negotiations, contracts or agreements with us and will not seek recourse against the trust account for any reason. Upon redemption of our public shares, if we are unable to complete our business combination within the prescribed time frame, or upon the exercise of a redemption right in connection with our business combination, we will be required to provide for payment of claims of creditors that were not waived that may be brought against us within the 10 years following redemption. In order to protect the amounts held in the trust account, the Sponsor has agreed that it will be liable to us if and to the extent any claims by a vendor for services rendered or products sold to us, or a prospective target business with which we have discussed entering into a transaction agreement, reduce the amount of funds in the trust account. This liability will not apply with respect to any claims by a third party that executed a waiver of any right, title, interest or claim of any kind in or to any monies held in the trust account or to any claims under our indemnity of the underwriters of our initial public offering against certain liabilities, including liabilities under the Securities Act. In the event that an executed waiver is deemed to be unenforceable against a third party, then the Sponsor will not be responsible to the extent of any liability for such third party claims.

We have not independently verified whether the Sponsor has sufficient funds to satisfy its indemnity obligations and we have not asked the Sponsor to reserve for such indemnification obligations. Therefore, we cannot assure you that the Sponsor would be able to satisfy those obligations. None of our officers will indemnify us for claims by third parties including, without limitation, claims by vendors and prospective target businesses.

In the event that the proceeds in the trust account are reduced and the Sponsor asserts that it is unable to satisfy its indemnification obligations or that it has no indemnification obligations related to a particular claim, our independent directors would determine whether to take legal action against the Sponsor to enforce its indemnification obligations. While we currently expect that our independent directors would take legal action on our behalf against the Sponsor to enforce its indemnification obligations to us, it is possible that our independent directors in exercising their business judgment may choose not to do so if, for example, the cost of such legal action is deemed by the independent directors to be too high relative to the amount recoverable or if the independent directors determine that a favorable outcome is not likely. We have not asked the Sponsor to reserve for such indemnification obligations and we cannot assure you that the Sponsor would be able to satisfy those obligations. Accordingly, we cannot assure you that due to claims of creditors the actual value of the per share redemption price will not be less than $10.00 per public share.

We will seek to reduce the possibility that the Sponsor will have to indemnify the trust account due to claims of creditors by endeavoring to have all vendors, service providers (other than our independent auditors), prospective target businesses or other entities with which we do business execute agreements with us waiving any right, title, interest or claim of any kind in or to monies held in the trust account. The Sponsor will also not be liable as to any claims under our indemnity of the underwriters of our initial public offering against certain liabilities, including liabilities under the Securities Act. In the event that we liquidate and it is subsequently determined that the reserve for claims and liabilities is insufficient, shareholders who received funds from the trust account could be liable for claims made by creditors.

If we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, the proceeds held in the trust account could be subject to applicable bankruptcy law, and may be included in our bankruptcy estate and subject to the claims of third parties with priority over the claims of our shareholders. To the extent any bankruptcy claims deplete the trust account, we cannot assure you we will be able to return $10.00 per share to our public shareholders. Additionally, if we file a bankruptcy petition or an involuntary bankruptcy petition is filed against us that is not dismissed, any distributions received by shareholders could be viewed under applicable debtor/creditor and/or bankruptcy laws as either a “preferential transfer” or a “fraudulent conveyance”. As a result, a bankruptcy court could seek to recover all amounts received by our shareholders. Furthermore, our board of directors may be viewed as having breached its fiduciary duty to our creditors and/or may have acted in bad faith, and thereby exposing itself and our company to claims of punitive damages, by paying public shareholders from the trust account prior to addressing the claims of creditors. We cannot assure you that claims will not be brought against us for these reasons.

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Our public shareholders will be entitled to receive funds from the trust account only in the event of the redemption of our public shares if we do not complete our business combination by November 27, 2017 or if they redeem their respective shares for cash upon the completion of the initial business combination. In no other circumstances will a shareholder have any right or interest of any kind to or in the trust account. In the event we seek shareholder approval in connection with our initial business combination, a shareholder’s voting in connection with the business combination alone will not result in a shareholder’s redeeming its shares to us for an applicable pro rata share of the trust account. Such shareholder must have also exercised its redemption rights described above.

Properties

GPIA’s executive offices are located at 150 E. 52nd Street, Suite 5003 New York, New York 10022, and GPIA’s telephone number is (212) 430-4340. Our executive offices are provided to us by an affiliate of the Sponsor. We have agreed to pay an affiliate of the Sponsor a total of $10,000 per month for office space, utilities, secretarial support and administrative services. We believe, based on rents and fees for similar services, that this amount is at least as favorable as we could have obtained from an unaffiliated person. We consider our current office space adequate for our current operations.

Upon consummation of the business combination, the principal executive offices of RMNI will be located at 3993 Howard Hughes Parkway, Suite 500, Las Vegas, NV 89169, which are the current executive offices of Rimini Street.

Employees

GPIA has two executive officers. These individuals are not obligated to devote any specific number of hours to GPIA’s matters and intend to devote only as much time as they deem necessary to its affairs. GPIA does not intend to have any full time employees prior to the consummation of a business combination.

Directors and Executive Officers

GPIA’s current directors and executive officers are as follows:

Name
Age
Position
Antonio Bonchristiano
50
Chief Executive Officer; Chief Financial Officer (Principal Financial and Accounting Officer); Director
Fersen Lamas Lambranho
55
Chairman, Director
Christopher Brotchie
71
Director
Fernando d’Ornellas Silva
59
Director
Alexandre Hohagen
49
Director

Antonio Bonchristiano

Mr. Bonchristiano has been our Chief Executive Officer, Chief Financial Officer and a member of our board of directors since March 2015. Mr. Bonchristiano is also a member of the board and Chief Executive Officer of GP Investments. He joined GP Investments in 1993 and has been a Managing Director since 1995. Prior to joining GP Investments, Mr. Bonchristiano was a Partner at Johnston Associates Inc., a finance consultancy based in London, and worked for Salomon Brothers Inc. in London and New York. Currently, he serves as a member of the board of directors of AMBEV, GP Advisors, and SPICE. Mr. Bonchristiano is also on the board of several non-profit organizations, including: Fundacao Bienal and Fundacao Estudar in Sao Paulo, Brazil and John Carter Brown Library in Providence, RI, USA. Previously, he served as a member of the boards of directors of several companies including BHG, Estacio, BR Properties, ALL, CEMAR, Gafisa, Submarino, Equatorial, BR Malls, Tempo and Magnesita Refratarios. He was also previously the Chief Financial Officer of SuperMar Supermercados and Founder and Chief Executive Officer of Submarino. Mr. Bonchristiano holds a bachelor’s degree in Politics, Philosophy, and Economics from the University of Oxford. Mr. Bonchristiano is well qualified to serve as a director due to his extensive experience in private equity, numerous directorship roles and financial expertise.

Fersen Lamas Lambranho

Mr. Lambranho has been the Chairman of our board of directors since March 2015. He is also a member of the board and Chairman of GP Investments. He joined the firm in 1998 and became a Managing Director in 1999. Prior to joining GP, Mr. Lambranho was CEO of Lojas Americanas, where he worked for 12 years and was a board member

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from 1998 to 2003. Currently, he is Chairman of the Board of Magnesita. He has served as chairman of the boards of LBR, Oi, Contax, Gafisa and ABC Supermercados. Mr. Lambranho serves on the boards of Centauro, BRZ Investimentos and GP Advisors. He previously served on the board of several companies, including BRMalls, San Antonio, Estácio, Tele Norte Leste Participações, São Carlos Empreendimentos e Participações, Farmasa, BR Properties and Americanas.com. He is a board member of several non-profit entities, such as Fundação Bienal de São Paulo and COPPEAD-UFRJ. Mr. Lambranho holds a bachelor’s degree in civil engineering from the Universidade Federal do Rio de Janeiro and a Msc degree in business administration from COPPEAD-UFRJ. He also completed the Owner President Management Program at the Harvard Business School. Mr. Lambranho’s education, investment experience and experience serving on boards make him an ideal candidate to be the Chairman of our board of directors.

Christopher Brotchie

Mr. Brotchie has been a member of our board of directors since May 2015. He serves as a director on the boards of Baring Private Equity International Ltd, Baring Private Equity Group Ltd, SWICORP Ltd (Riyadh), Firmdale Hotel Holdings Ltd (London) and Bolero International Ltd (London). He is a member of the Investment Committees of Baring Vostok Capital Partners (Moscow), ICentis Capital (Warsaw) and Intaj II (MENA) private equity funds. He is a member of the Advisory Councils of Baring Private Equity Partners Asia (Hong Kong), GP Investments, Ltd., ICentis Capital (Warsaw), Triton Capital Partners (Frankfurt & Stockholm) and the Pacific Pensions Institute (San Francisco). Mr. Brotchie’s private equity career started in 1986 when he joined Baring Private Equity Partners in Germany. As a Senior Partner, he was responsible for starting Baring Private Equity’s businesses first in Germany (1986 to 1995) and Asia (1995 to 2000) based in Singapore. After 18 years with the firm, he retired in March 2004 as Chief Executive Officer of the Baring Private Equity Partners Group and Member of the Management Council of the ING Group. He holds a Bachelor of Technology degree, with honors, from Brunel University and is a Chartered Engineer. He is a winner of the Society of British Aerospace Companies John de Havilland Award and Fellow of the Royal Society of Arts. Mr. Brotchie is well qualified to serve as a director due to his expansive career in private equity, business contacts and financial acumen.

Fernando d’Ornellas Silva

Mr. d’Ornellas Silva has been a member of our board of directors since May 2015. He currently serves as a Director on the Boards of Meliá Hotels International SA and Dinamia Capital Privado SCR SA, and on the Supervisory Board of Willis Iberia. Mr. d’Ornellas Silva is an advisor for Spain and Latam of Mitsubishi Corporation and a senior advisor of Spain and Latam for Lazard. Mr. d’Ornellas Silva was previously employed as Chairman by Berge Automoción, he was also the Managing Director of Bergé Group until 2012. He has also held the positions of Deputy Financial Manager of Johnson & Johnson Spain, Financial Director of Toyota Spain and Managing Director of Chrysler Spain. Mr. d’Ornellas Silva was also Vice Chairman for Skberge Latinoamérica and of Mitsubishi Motors Chile, and Chairman of Mitsubishi Motors Peru, KIA Argentina, Peru and Portugal, Chrysler Colombia and Chry Portugal. He has also served on the boards of Endesa S.A. and Endesa Chile. Mr. d’Ornellas Silva was a Vice Chairman of the Spanish Import Automobile Association, and a member of the Business Councils Spain-China, Spain-Japan. He is also a member of the International Advisory Board of the Hispanic Society of America. Mr. d’Ornellas graduated in Law and Economics from Madrid’s Universidad Pontificia Comillas (ICADE E-3) and holds an MBA from IESE (International Section). Mr. d’Ornellas Silva is well qualified to serve as a director due to his leadership experience, financial expertise and his extensive business acumen.

Alexandre Hohagen

Mr. Hohagen has been a member of our board of directors since December 2015. Mr. Hohagen is an investor and board advisor with more than 20 years of experience in technology and media in Latin America and United States Hispanics. Until June 2015, Mr. Hohagen was the Vice President for Facebook in Latin America & United States Hispanics, a position he held since February 2011. Before Facebook, Mr. Hohagen was responsible for initiating Google’s operations in Latin America. Between 2005 and 2011, Mr. Hohagen led Google’s operations in more than 20 countries in Latin America. Mr. Hohagen also previously held the position of Head of Global Sales in the U.S. and vice president of advertising and e-commerce for UOL (Universo Online). He was also previously General Manager for HBO in Brazil, where he led the commercial area of the premium channels (HBO, Warner). Mr. Hohagen previously worked for Dow Chemical Company, Boehringer Ingelheim and ABN Amro Bank. Mr. Hohagen serves on the board of directors of Estácio Participações S.A. Mr. Hohagen has a degree in journalism

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and advertising from FIAM, a master’s degree in Human Resources from University of Sao Paulo and has attended people management courses at IMD (Switzerland), FGV (Brazil) and IIHR (Netherlands). Mr. Hohagen is well qualified to serve as a director due to his leadership experience and business acumen.

Number and Terms of Office of Directors and Officers

We have five directors. Our board of directors is divided into three classes with only one class of directors being elected in each year and each class (except for those directors appointed prior to our first annual meeting of shareholders) serving a three-year term. The term of office of the first class of directors, consisting of Mr. d’Ornellas Silva, will expire at our first annual meeting of shareholders. The term of office of the second class of directors, consisting of Mr. Brotchie and Mr. Hohagen, will expire at the second annual meeting of shareholders. The term of office of the third class of directors, consisting of Mr. Bonchristiano and Mr. Lambranho, will expire at the third annual meeting of shareholders. We may not hold an annual meeting of shareholders until after we consummate our initial business combination.

Our officers are appointed by our board of directors and serve at the discretion of our board of directors, rather than for specific terms of office. Our board of directors is authorized to appoint persons to the offices set forth in our memorandum and articles of association as it deems appropriate. Our memorandum and articles of association provide that our officers shall consist of a Chief Executive Officer and a Secretary, and may consist of a Chairman of the Board, Vice Chairman of the Board, one or more Presidents, a Chief Financial Officer, a Treasurer, Vice Presidents, one or more Assistant Vice Presidents, one or more Assistant Treasurers, one or more Assistant Secretaries and any such other officers as may be determined by our board of directors.

Director Independence

NASDAQ listing standards require that a majority of our board of directors be independent. An “independent director” is defined generally as a person other than an officer or employee of the company or its subsidiaries or any other individual having a relationship which in the opinion of the company’s board of directors, would interfere with the director’s exercise of independent judgment in carrying out the responsibilities of a director. Our board of directors has determined that Fersen Lamas Lambranho, Christopher Brotchie, Fernando d’Ornellas Silva and Alexandre Hohagen are “independent directors” as defined in the NASDAQ listing standards and applicable SEC rules. Our independent directors will have regularly scheduled meetings at which only independent directors are present.

Legal Proceedings

There is no material litigation, arbitration or governmental proceeding currently pending against us or any members of our management team in their capacity as such, and we and the members of our management team have not been subject to any such proceeding in the twelve months preceding the date of this joint proxy statement/prospectus.

Periodic Reporting and Audited Financial Statements

GPIA has registered its securities under the Exchange Act and has reporting obligations, including the requirement to file annual and quarterly reports with the Securities and Exchange Commission. In accordance with the requirements of the Exchange Act, GPIA’s annual reports contain financial statements audited and reported on by GPIA’s independent registered public accounting firm. GPIA has filed with the SEC its Annual Report on Form 10-K for the year ended December 31, 2016 and its Quarterly Report on Form 10-Q covering the three months ended March 31, 2017.

GPIA’s Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion of GPIA’s financial condition and results of operations should be read in conjunction with GPIA’s consolidated financial statements and notes to those statements included in this joint proxy statement/prospectus. This discussion contains forward-looking statements that involve risks and uncertainties. Please see “ Cautionary Statement Regarding Forward-Looking Statements ” and “ Risk Factors ” in this joint proxy statement/prospectus.

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Overview

We are a blank check company incorporated on January 28, 2015 as a Cayman Islands exempted company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. We intend to effectuate our initial business combination using cash from the proceeds of our initial public offering, the sale of warrants in a private placement that occurred simultaneously with the consummation of our initial public offering, our shares, debt or a combination of these as the consideration to be paid in our initial business combination.

Significant Accounting Policies

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following significant accounting policy:

Ordinary Shares Subject to Possible Redemption

We account for our ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity”. Ordinary shares subject to mandatory redemption (if any) are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. Our ordinary shares feature certain redemption rights that are considered to be outside of our control and subject to occurrence of uncertain future events. Accordingly, at March 31, 2017, the ordinary shares subject to possible redemption in the amount of $159,630,747 (or 15,896,071 shares) are presented as temporary equity, outside of the shareholders’ equity section of our balance sheet.

Results of Operations

Since the completion of our initial public offering, we have not generated any operating revenue and will not generate such revenue until after the completion of a business combination. All activity from inception to March 31, 2017 relates to our formation, our initial public offering and private placement, the identification and evaluation of prospective candidates for a business combination, the execution and subsequent termination of a proposed acquisition of World Kitchen, the negotiation of the proposed business combination with Rimini Street and the execution of the merger agreement and related agreements (including the equity commitment letter, the lock-up agreement, the transaction support and voting agreements and the warrant consent and conversion agreement), filings with the SEC in relation to the proposed business combination and other activities related to the proposed business combination. We generate non-operating income in the form of interest income on cash and securities held, which we expect to be insignificant in view of the low yields on short-term government securities. We expect to incur increased expenses as a result of being a public company (in respect of legal, financial reporting, accounting and auditing compliance expenses), as well as for due diligence expenses.

For the year ended December 31, 2016, we had a net loss of $2,861,165, mainly consisting of target identification expenses, transaction expenses relating to the terminated business combination with World Kitchen and other operating costs of $3,334,903 and an unrealized loss on marketable securities held in the trust account of $11,618, offset by interest earned on securities in the trust account of $485,356.

For the period from January 28, 2015 (inception) through December 31, 2015, we had a net loss of $130,726. The results of operations mainly consist of operating costs, offset by interest earned on securities in the trust account.

For the three months ended March 31, 2017, we had a net loss of $4,271, mainly consisting of operating costs and transaction expenses relating to the terminated business combination with World Kitchen of $179,386 and an unrealized loss on marketable securities held in the trust account of $25,060, offset by interest earned on marketable securities held in the trust account of $200,175.

For the three months ended March 31, 2016, we had a net loss of $802,394, mainly consisting of target identification expenses, transaction expenses relating to the terminated business combination with World Kitchen and

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other operating costs of $1,066,912, offset by interest earned on marketable securities held in the trust account of $161,227, and an unrealized gain on marketable securities of $103,291.

The results of operations in each period mainly consist of operating costs, offset by interest earned on securities in the trust account.

Liquidity and Capital Resources

On May 26, 2015, we consummated our initial public offering of 17,250,000 units, which includes the exercise by the underwriters of their entire over-allotment option in the amount of 2,250,000 units, at $10.00 per unit, generating gross proceeds of $172,500,000 before underwriting discounts and expenses. Simultaneously with the consummation of our initial public offering, we consummated the sale of an aggregate of 6,062,500 private placement warrants, at a price of $1.00 per warrant in a private placement to the Sponsor, generating gross proceeds of $6,062,500. Each private placement warrant is exercisable to purchase one ordinary share at $11.50 per share and, following the domestication, will entitle the holder thereof to purchase one RMNI common share at the same price.

We received net proceeds from our initial public offering and sale of the private placement warrants of $173,639,410, net of $4,312,500 cash paid for underwriting fees and $610,590 cash paid for offering costs. In addition, up to $6,037,500 of underwriting fees were deferred until the closing of a business combination. Upon the closing of our initial public offering and the private placement warrants, $172,500,000 was placed into the trust account, while the remaining funds were placed in an account outside of the trust account for working capital purposes.

As of March 31, 2017, we had cash and marketable securities held in the trust account of $173,227,105 (including approximately $727,000 of interest income which is available to pay our income tax obligations) consisting of cash and U.S. treasury bills with a maturity of 180 days or less. Interest income on the balance in the trust account may be available to us to pay taxes and up to $100,000 of our dissolution expenses. Through March 31, 2017, we did not withdraw any funds from the interest earned on the trust account. Other than deferred underwriting fees payable in the event of a business combination, no amounts are payable to the underwriters of our initial public offering. As of May 25, 2017 (after giving effect to the redemptions of public shares redeemed in connection with the Extension), there was cash and marketable securities held in the trust account of $157,791,185.

As of March 31, 2017, we had cash of $1,551 held outside the trust account, which is available for use by us to cover the costs associated with identifying a target business and negotiating a business combination and other general corporate uses. In addition, as of March 31, 2017, we had accounts payable and accrued expenses of $133,932, primarily representing amounts owed to certain service providers and advisors who have advised us on matters related to the terminated business combination with World Kitchen. We have entered into fee arrangements with certain service providers and advisors pursuant to which certain fees incurred by us in connection with the terminated business combination with World Kitchen will be deferred and become payable only if we consummate an initial business combination. If an initial business combination does not occur, we will not be required to pay these contingent fees. As of March 31, 2017, the amount of these contingent fees was approximately $3,993,000. To the extent a potential initial business combination is consummated, we anticipate incurring a significant amount of additional costs. There can be no assurances that we will complete any initial business combination.

For the three months ended March 31, 2017, cash used in operating activities amounted to $147,212, mainly resulting from a net loss of $4,271, interest earned on the trust account of $200,175, and an unrealized loss on marketable securities held in the trust account of $25,060. Changes in operating assets and liabilities provided $32,174 of cash for operating activities.

For the three months ended March 31, 2016, cash used in operating activities amounted to $95,529, mainly resulting from a net loss of $802,394, interest earned on the trust account of $161,227 and an unrealized gain on marketable securities held in the trust account of $103,291. Changes in operating assets and liabilities provided $971,383 of cash for operating activities.

We intend to use substantially all of the funds held in the trust account (less amounts used to pay taxes, but including deferred underwriting commissions) to complete our business combination. To the extent that our capital stock or debt is used, in whole or in part, as consideration to complete our business combination, the remaining proceeds held in the trust account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.

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For the year ended December 31, 2016, cash used in operating activities amounted to $3,501,579, mainly resulting from a net loss of $2,861,165 and interest earned on the trust account of $485,356, offset by an unrealized loss on marketable securities held in the trust account of $11,618. Changes in working capital provided $166,676 of cash for operating activities.

For the period from January 28, 2015 (inception) through December 31, 2015, cash used in operating activities amounted to $196,961, mainly resulting from a net loss of $130,726, interest earned on the trust account of $61,682, and an unrealized gain on marketable securities of $16,570. Changes in working capital provided $12,017 of cash for operating activities.

We intend to use the funds held outside the trust account primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners, structure, negotiate and complete a business combination and pay taxes to the extend the interest earned on the trust account is insufficient to pay our taxes.

Based upon (i) amounts held outside the trust account, (ii) interest earned on the trust account available to be released to GPIA for the payment of income tax obligations and (iii) loans that the Sponsor has committed to provide to GPIA, in each case as described in this joint proxy statement/prospectus, we believe we have sufficient cash to operate our business through the earlier of a consummation of a business combination or by November 27, 2017, the date that GPIA will be required to cease all operations except for the purpose of winding up, if a business combination is not consummated. However, if our estimates of the costs of identifying a target business, undertaking in-depth due diligence and negotiating an initial business combination is less than the actual amounts necessary to do so, we may have insufficient funds available to operate our business prior to our business combination. Moreover, we may need to obtain additional financing either to complete our business combination or because we become obligated to redeem a significant number of our public shares upon completion of our business combination, in which case we may issue additional securities or incur debt in connection with such business combination. Subject to compliance with applicable securities laws, we would only complete such financing simultaneously with the completion our business combination. If we are unable to complete our initial business combination because we do not have sufficient funds available to use, we will be forced to cease operations and liquidate the trust account. In addition, following our initial business combination, if cash on hand is insufficient, we may need to obtain additional financing in order to meet our obligations.

Off-balance sheet financing arrangements

We have no obligations, assets or liabilities that would be considered off-balance sheet arrangements. We do not participate in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements.

We have not entered into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities or entered into any non-financial agreements involving assets.

Contractual obligations

We do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities, other than an administrative agreement to pay an affiliate of the Sponsor a total of $10,000 per month for office space, utilities, secretarial support and administrative services, commencing on the date our securities are first listed on The NASDAQ Capital Market. Upon the earlier of the completion of the initial business combination or our liquidation, we will cease paying these monthly fees.

Independent Auditors’ Fees

The firm of Marcum LLP acts as GPIA’s independent registered public accounting firm. The following is a summary of fees paid or to be paid to Marcum LLP for services rendered. Marcum LLP has not waived its right to make claims against the funds in the trust account for fees of any nature owed to it.

Audit Fees

During the year ended December 31, 2016 and the period from January 28, 2015 (inception) through December 31, 2015, audit fees for Marcum LLP were $50,310 and $93,078, respectively. Audit fees consist of fees

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billed for professional services rendered for the audit of our year-end financial statements and services that are normally provided by Marcum LLP in connection with regulatory filings.

Audit-Related Fees

During the year ended December 31, 2016 and for the period from January 28, 2015 (inception) through December 31, 2015, audit-related fees were $94,056 and $0, respectively.

Tax Fees

During the year ended December 31, 2016 and the period from January 28, 2015 (inception) through December 31, 2015, Marcum LLP did not render any fees for tax services to us.

All Other Fees

During the year ended December 31, 2016 and the period from January 28, 2015 (inception) through December 31, 2015, there were no fees billed for services provided by Marcum LLP other than those set forth above.

Audit Committee Pre-Approval Policies and Procedures

Our audit committee, on at least an annual basis, reviews audit and non-audit services performed by Marcum LLP as well as the fees charged by Marcum LLP for such services. Our policy is that all audit and non-audit services must be pre-approved by the audit committee. All of such services and fees were pre-approved during the year ended December 31, 2016.

Code of Ethics

Upon consummation of our initial public offering, we adopted a Code of Ethics that is applicable to our directors, officers and employees. We filed a copy of our Code of Ethics and our audit and compensation committee charters as exhibits to the registration statement on Form S-1 (Reg. No. 333-203500), which became effective on May 19, 2015. You are able to review these documents by accessing our public filings at the SEC’s website at www.sec.gov. In addition, a copy of the Code of Ethics will be provided without charge upon request from us. Requests for copies of GPIA’s Code of Ethics should be sent in writing to GP Investments Acquisition Corp., 150 E. 52nd Street, Suite 5003, New York, NY 10022. We intend to disclose any amendments to or waivers of certain provisions of our Code of Ethics in a Current Report on Form 8-K.

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INFORMATION ABOUT RIMINI STREET

The following description applies to the current business of Rimini Street, as well as the business of RMNI following the consummation of the business combination. In this section, references to “we”, “us”, “our”, the “Company”, and “Rimini Street” are intended to refer to Rimini Street, Inc. and its subsidiaries, unless the context clearly indicates otherwise.

Business Overview

Rimini Street is a global provider of enterprise software support products and services, and the leading independent software support provider for Oracle and SAP products, based on the number of clients supported. We founded our company to disrupt and redefine the enterprise software support market by developing and delivering innovative new products and services that fill a then-unmet need in the market. We achieved our leadership position in independent enterprise software support by recruiting and hiring experienced, skilled and proven staff; delivering outcomes-based, value-driven and award-winning enterprise software support products and services; seeking to provide an exceptional client-service, satisfaction and success experience; and continuously innovating our unique products and services by leveraging our proprietary knowledge, tools, technology and processes.

Enterprise software support products and services is one of the largest categories of overall global information technology (“IT”) spending. As core enterprise resource planning (“ERP”), customer relationship management (“CRM”), product lifecycle management (“PLM”) and technology software platforms have become increasingly important in the operation of mission-critical business processes over the last 30 years, the costs associated with failure, downtime, security exposure and maintaining the tax, legal and regulatory compliance of these core software systems have also increased. As a result, licensees often view software support as a mandatory risk management expense, resulting in recurring and highly profitable revenue streams for enterprise software vendors. For example, for its fiscal year 2016, SAP reported that support revenue represented approximately 48% of its total revenue, and Oracle reported a margin of 94% for software license updates and product support.

We believe that software vendor support is an increasingly costly model that has not evolved to offer licensees the responsiveness, quality, breadth of capabilities or value needed to meet the needs of licensees. Organizations are under increasing pressure to reduce their IT costs while also delivering improved business performance through the adoption and integration of emerging technologies, such as mobile, virtualization, Internet of Things (“IoT”) and cloud computing. Today, however, the majority of IT budget is spent operating and maintaining existing infrastructure and systems. Organizations are increasingly seeking ways to redirect budgets from maintenance to new technology investments that provide greater strategic value, and our software products and services help clients achieve these objectives by reducing the total cost of support.

We have experienced 45 consecutive quarters of revenue growth through March 31, 2017. In addition, our subscription-based revenue model provides a foundation for, and visibility into, future period results. We generated revenue of $85.3 million, $118.2 million and $160.2 million for the years ended December 31, 2014, 2015 and 2016, respectively, representing a year-over-year increase of 39% and 36% in 2015 and 2016, respectively, and $34.7 million and $49.1 million for the three months ended March 31, 2016 and 2017, respectively, representing a period-over-period increase of 42%. We have a history of losses, and as of March 31, 2017, we had an accumulated deficit of $265.6 million. We had net losses of $127.8 million, $45.3 million and $12.9 million for the years ended December 31, 2014, 2015 and 2016, respectively, and net losses of $8.0 million and $14.5 million for the three months ended March 31, 2016 and 2017, respectively.

As of March 31, 2017, we employed approximately 900 professionals and supported nearly 1,300 clients globally, including 74 Fortune 500 companies and 21 Fortune Global 100 companies across a broad range of industries. We define a client as a distinct entity, such as a company, an educational or government institution, or a business unit of a company that purchases our services to support a specific product. For example, we count as two separate client instances in circumstances where we provide support for two different products to the same entity.

We market and sell our services globally, primarily through our direct sales force, and have wholly-owned subsidiaries in Australia, Brazil, Germany, Hong Kong, India, Israel, Japan, Korea, Sweden, Taiwan, the United Kingdom and the United States. Our primary competitors are the enterprise software vendors whose products we service and support, including IBM, Microsoft, Oracle and SAP.

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Our Industry

Most enterprise software vendors license the rights for customers to use their software. In a traditional licensing model, the customer typically procures a perpetual software license and pays for the license in a single upfront fee (“perpetual license”), and base software support services can be optionally procured from the software vendor for an annual fee that averages 22% of the total cost of the software license. In a subscription-based licensing model, such as software as a service, or SaaS, the customer generally pays as it goes for usage of the software on a monthly or annual basis (“subscription license”). Under a subscription license, the product license and a base level of software support are generally bundled together as a single purchase, and the base level of software support is not procured separately nor is it an optional purchase.

The base level of software support provided by enterprise software vendors for both perpetual licenses and subscription licenses has traditionally been delivered through call centers and generally includes the right to receive and use product support services, software bug fixes, and functional, technical, tax, legal and regulatory updates. In both licensing models, software support also generally includes the right to receive and use new releases of the licensed products, if and when made available. Base software support provided by enterprise software vendors for both models generally excludes other important, commonly needed enterprise services, such as support for interoperability, security, software performance, how-to questions, add-ons and customizations. Some enterprise software vendors do not include major new releases in the base support services, and instead, they charge additional license fees for such releases.

Enterprise software vendors historically have been the primary providers of software support services for their products, enabling such vendors to control which products and releases are supported and for how long, the scope of support services offered, service levels, terms and pricing. The lack of credible competitors of any scale left software licensees with little choice but to agree to the software vendors’ terms of service, or risk potential tax, legal and regulatory non-compliance or failures of critical systems that require knowledge and skill sets beyond a licensee’s own abilities to resolve. Some software vendor support customers may be required to perform expensive and disruptive upgrades to newer product releases – even if they find no business value in doing so – just to remain eligible to receive full support.

Today, many organizations are combining different software under perpetual licenses and subscription licenses into an integrated business platform that is deployed across their own systems and cloud providers, commonly referred to as hybrid IT environments. For these organizations, the cost of operating and supporting their hybrid IT environments consumes too many financial and labor resources and prevents the strategic investment that is needed to compete effectively, grow revenue and improve margins.

For all these reasons and others, we believe the software products and services historically offered by software vendors, such as IBM, Microsoft, Oracle and SAP, do not meet the full and evolving needs of their customers and are too expensive. The product, service and cost gaps have created a significant market opportunity for our competitive software support products and services to meet the underserved needs of enterprise software licensees at a value-driven price point.

Our Solution

Our subscription-based software support products and services offer enterprise software licensees a choice of solutions that replace or supplement the support products and services offered by enterprise software vendors for their products. Features, service levels, service breadth, technology and pricing differentiate our software products and services from our competitors. Clients utilize our software products and services to achieve substantial cost savings; receive more responsive and comprehensive support; obtain support for their customized software that is not generally covered under the enterprise software vendor’s service offerings; enhance their software functionality, capabilities, and data usage; and protect their systems and extend the life of their existing software releases and products. Our products and services seek to enable our clients to keep their mission-critical systems operating smoothly and to remain in tax, legal and regulatory compliance; improve productivity; and better allocate limited budgets, labor and other resources to investments that provide competitive advantage and support growth.

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The following table summarizes and compares our base software support features to the typical features of enterprise software vendors:

Base Software Support Feature
Rimini
Street
Typical
Enterprise
Software
Vendor
Significant Annual Cost Savings Compared to the Software Vendor
 
Guaranteed 15 Minutes Response 24x7 For High Priority Issues
 
Named Primary Support Engineer for Each Client
 
Issue Resolution and Software Bug Fixes
Support for Application Customizations
 
Operational, Installation, Configuration and Upgrade Support
Migration Support
 
Performance, Interoperability and Integration Support
 
Security Support
 
Localization Support
 
New Features, Functions and Technical Releases
 
Tax, Legal and Regulatory Updates

Our current software support products and service offerings cover a broad range of enterprise software vendors, product families and product lines. In the future, we intend to expand our support to new vendors and products in order to meet the growing and diverse needs of our clients. The table below sets out the vendors and products we currently support:

Supported Vendor and Product Family
Supported Product Lines
IBM DB2 Database
All
Microsoft SQL Server Database
All
Oracle Siebel
All
Oracle PeopleSoft
HCM, FIN, CRM, EPM, SRM, SCM, Public Sector, and Campus Solutions
Oracle J.D. Edwards
HCM, Financials, Distribution and Manufacturing
Oracle E-Business Suite
All
Oracle Retail
Retek Merchandising Operations Management (MOM), Merchandise Planning & Optimization, Supply Chain Planning and Execution
Oracle Database
All
Oracle Fusion Middleware
All
Oracle Hyperion
Hyperion Planning, Essbase, Financial Management, Financial Close Management, Strategic Finance and Financial Management Analytics
SAP Business Suite
R/3, ECC
SAP S/4HANA
All
SAP HANA Database
All
SAP Sybase Database
SAP ASE, SAP Advantage Server, SAP IQ, SAP SQL Anywhere
SAP Business Objects
BusinessObjects Enterprise, Advanced Analysis, Interactive Analysis (Web Intelligence), Explorer, Dashboard Design (Xcelsius) and Crystal Reports
Oracle Agile
All
Oracle ATG Web Commerce
Campaign Optimizer, Outreach, MDEX Engine 6.5, Oracle Commerce Guided Search(Endeca Search) and Experience Manager

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When we provide base software support for a perpetual license, we generally offer our clients service for a fee that is equal to approximately 50% of the annual fees charged by the software vendor for their base support. When providing supplemental software support for a perpetual license, where the client procures our support service in addition to retaining the software vendor’s base support, we generally offer our clients service for a fee that is equal to 25% of the annual fees charged by the software vendor for their base support. For supplemental software support on a subscription license, we generally offer our clients services for a fee that is equal to 50% of the annual fees charged by the software vendor for their supplemental or premium support. We also offer a special support service, Rimini Street Extra Secure Support, available to clients that require a more rigorous level of security background checks for engineers accessing the client’s system than our standard employment security background check process. Rimini Street Extra Secure Support is an additional fee added to our base or supplemental support fee, and priced at approximately 1% of the software vendor’s annual fees for base maintenance for perpetual licenses and priced at approximately 2% of the subscription fees for subscription licenses. Subscriptions for additional software products and services are available, designed to meet specific client needs and provide exceptional value for the fees charged.

Over the past 11 years, we have invested significant resources developing our proprietary knowledge, software tools and processes to meet the growing needs of our clients. For example, from our inception through March 31, 2017, we have delivered over 130,000 tax, legal and regulatory updates to our global client base. We believe that we offer the most comprehensive scope of tax, legal and regulatory research from a single vendor, including collecting and analyzing information from more than 3,400 government sites, close to 3,500 information sources and over 26,000 localities for 93 countries. We utilize a certified triple-scope verification process that involves multiple third-parties such as premier subject matter experts including industry associations as well as accounting, consulting and law firms. Our capabilities are enabled by our proprietary data capture, management and analysis tool and ISO 9001:2008 certified processes that we believe provide us with a significant competitive advantage.

Sales and Marketing

We sell our solutions through our global direct sales organization. We organize our sales force by geographic region with sales teams currently covering North America, Latin America, Europe, Africa, the Middle East, Asia, and Asia-Pacific. We organize our sales and marketing professionals into territory-specific teams in order to align sales and marketing towards common sales goals. A typical sales cycle with a prospective client begins with the generation of a sales lead through trade shows, industry events, online marketing, outbound calling or other means of referral. The sales cycle continues with an assessment of the prospective client’s support contract renewal date, sales presentations and, in many cases, client reference calls. Our sales cycle can vary substantially from client to client, but typically requires six to twelve months. Enterprise software customers typically need to renew their contracts on an annual basis so there is already budget for our services, and that budget is usually larger than our fees since most of our prospective clients are enterprise software vendor customers paying higher annual fees for their current support services.

We attempt to commence discussions with prospective clients far enough in advance of that prospective client’s current support service end date to provide enough time to complete the sale and to perform certain transition tasks. In certain situations, we will engage with a prospective client over multiple renewal cycles. In addition to new client sales, we have a dedicated sales team focused on renewals of existing clients.

We generate customer leads, accelerate sales opportunities and build brand awareness through our marketing programs. Our marketing programs target chief information officers, other IT executives, senior business leaders and procurement specialists, focusing on the unique benefits of our offerings. Additionally, our marketing programs serve to create further market awareness of the benefits of independent enterprise software support. As a result of our efforts in educating organizations on the alternatives to vendor support, we believe we are recognized as a thought leader in this market.

Our marketing programs include the following:

use of our website to provide application and company information, as well as learning opportunities for potential customers;
business development representatives who respond to incoming leads to convert them into new sales opportunities;
participation in, and sponsorship of, field marketing events including user conferences, trade shows and industry events;

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online marketing activities including email campaigns, online advertising and webinars;
public relations; and
thought leadership through marketing to industry analysts, webinars, speaking engagements and sponsored research.

Competitive Strengths

We believe that we have a number of competitive advantages that will enable us to strengthen our position as the leading independent provider of enterprise software support. Our key competitive strengths include:

Unique enterprise software support model, products and services

Our enterprise software support model, products and services differentiate us from traditional enterprise software vendors. We built our company from the ground up to disrupt the 30-year old traditional enterprise software vendor support model. We are focused on delivering unique, highly responsive and award-winning enterprise software support solutions. We believe our innovative support products and services, offered at a value-driven price point, provide a significant return on investment for our clients that cannot be achieved by use of traditional enterprise software vendor offerings. Our highly qualified engineers have an average of over 15 years of relevant industry experience, which provides us with a competitive advantage and is a key element of our proven track record of providing exceptional client service.

Scalable business model

We have developed proprietary knowledge, software tools and processes in the design, development and delivery of our enterprise software support services. We have also designed an innovative support model that organizes our support engineers into modular, scalable teams. We believe our client support model enables us to quickly and cost effectively scale to meet growing global demand in our existing product lines. We have become proficient at applying our support methodologies and approach to new product lines, enabling us to rapidly and efficiently support additional enterprise software products in the future. Additionally, we have received ISO certifications for our support services, which we believe helps ensure our clients consistently receive high quality, responsive service as our client base continues to grow.

Large global client base

As of March 31, 2017, we supported nearly 1,300 clients globally, including 74 Fortune 500 companies and 21 Fortune Global 100 companies. We also believe that our proven ability to deliver value to an extensive list of clients across a broad range of industries validates our business model and provides us with important references to prospective clients.

Comprehensive support services

We offer clients a comprehensive suite of independent support offerings in terms of features and capabilities; global breadth; vendor products and releases supported; and tax, legal and regulatory updates. We believe our continued investment in our software support products and services will expand our scope of services to the benefit of our clients.

Clear leadership position

We are the global leader of independent enterprise software support services for Oracle and SAP products, based on number of clients. We believe we have substantial thought leadership in our market through our extensive marketing efforts and promotion of the independent enterprise software support model, including participation in key industry conferences, publishing white papers and hosting webinars. Leading industry analyst firms have cited Rimini Street as a market leader. We believe that our position as a market leader enables us to bring new services to market more quickly, attract and retain high quality personnel, and acquire new clients.

Highly experienced management team

Our senior management team has over 150 years of combined experience in the enterprise software and services industry with companies such as Accenture, Agile, EDS, JD Edwards, Oracle, PeopleSoft, Saba, and SAP, and with a significant amount of time and experience focused on building, managing and delivering support products and services. We believe our senior management team’s significant relevant industry experience positions us to continue to extend our market leadership.

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Client-centric culture

We believe that our culture is a key element of our success and one of our core values. We recruit employees who share a passion for delivering exceptional service to our clients and continuously measure, recognize and reward employees for achieving exemplary client satisfaction. We further believe that our culture has enabled us to attract and retain high quality, experienced and skilled professionals. Over the years, we have earned exceptional customer satisfaction ratings and have won numerous Stevie Awards for customer service.

Our Growth Strategy

We possess deep expertise in enterprise software products, services and support and intend to leverage our leadership position to further penetrate our current markets and expand our support product and service capabilities into new markets. The key elements of our growth strategy include:

Add new clients

We believe that the market for independent enterprise software support products and services is large, growing and underserved. We expect significant growth opportunities in our market as organizations increasingly look to achieve more value from their technology budgets. We are continuing to make significant investments in sales and marketing and will continue our strong focus on acquiring new clients.

Continue global expansion

In 2016, we generated approximately 31% of our revenue outside of the United States. We believe that there is a large opportunity to grow our global business by increasing our direct sales force and by selective utilization of strategic marketing and sales partnerships around the world. In the first quarter of 2017, we increased our revenue generated outside of the United States to approximately 34%.

Expand the portfolio of supported vendors and products

Over the past 11 years, we have developed enterprise support services for four software vendors and 17 software product families. We believe there is a significant market opportunity to offer support for additional product lines, and we intend to extend our support service offerings to additional enterprise software products.

Capitalize on the shift to hybrid IT

Customers are increasingly creating IT environments that are a mixture of perpetual license and subscription license software solutions deployed across the client’s system and cloud computing providers (hybrid IT environments), and traditional enterprise software vendors cannot effectively support these environments because of complex integrations, customizations and other unique challenges. A hybrid IT strategy enables customers to reliably and cost-effectively run their business on an existing, stable core ERP application, while at the same time enabling them to more quickly adopt new innovative applications and services, including cloud, mobile and analytics. Multi-application, multi-environment solutions create a unique growth opportunity for independent support providers like Rimini Street.

Further penetrate our existing client base

We intend to increase adoption of our services among our existing clients by selling additional support contracts for other software products within their organizations. Approximately 48% of our clients have selected us to provide support for more than one product line, and we believe there is additional opportunity for growth. Our client-centric focus in combination with the critical nature of our services, enables us to maintain close working relationships with primary decision makers, which we believe helps us identify and capitalize on additional growth opportunities, including products, business divisions and geographies, within our existing client base.

Launch new enterprise software support solutions

We intend to develop and bring to market new software products and services that help our clients with various business and support functions. For example, we recently announced Rimini Street Advanced Database Security, a new subscription product that, enhanced with technology from McAfee, a global leader in cybersecurity, protects databases from known vulnerabilities by monitoring and analyzing database communications traffic and allowing

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faster blocking of attempted attacks using advanced virtual patching technology. We are also bringing innovative mobile and analytic applications, in concert with key technology partners, to extend the value of a client’s IT investment and leverage a client’s existing, stable core ERP software.

Client Service Delivery

Client Support Delivery

Our Client Support Delivery operation is staffed globally, and provides product support services to our clients 24 hours a day, seven days a week. A key element of our support delivery model is the assignment of one or more named Primary Support Engineers (“PSEs”), who serve as the primary product support contact for our clients. PSEs provide technical advice, functional expertise and general support to ensure the resolution of all support issues. Our PSEs are focused exclusively on supporting our clients and have on average over 15 years of experience and significant real-world understanding of client implementations and deployments. For the twelve months ended March 31, 2017, we delivered an average support call response time of less than five minutes for a PSE to engage with a client to address high priority issues, which is significantly shorter than the 15-minute guaranteed response time that is standard in our client support agreements.

Each PSE works as part of our global network of engineers, and provides deep expertise for a vendor, product family and product line. Support engineers across the company are able to leverage their collective knowledge and experience to meet the complex support needs of our clients.

Product Delivery

The Product Delivery team manages the scoping, development, testing and delivery of all client deliverables and internally developed applications, tools and technologies. The primary client deliverables are grouped into the following categories:

Global tax, legal and regulatory updates

We provide our clients with the proactive updates they need to maintain compliance with changing tax, payroll, accounting, fixed-asset and related rates, regulations and standards. In addition, we also create and update documentation that supports our tax, legal and regulatory updates.

New client synchronization

When a client switches to our support, they may not be up to date with the latest tax, legal and regulatory updates made available by the enterprise software vendor. As part of the client onboarding process, our Product Delivery team assesses the compliance level of each client deployment and creates initial updates as needed for clients to ensure full adherence to current tax, legal and regulatory standards in their jurisdictions of operation and to streamline the process for future updates.

We believe the quality and scope of our Product Delivery processes and deliverables surpass those of traditional enterprise software vendors. For example, we maintain updates for tax, legal, and regulatory changes for over 93 countries on a continuous basis by employing a rigorous software development lifecycle that is ISO 9001:2008 certified to ensure that required and identified tax, legal, and regulatory changes are delivered in an accurate and timely manner that is typically earlier than traditional enterprise software vendors. Our Product Delivery organization is scalable and has the capability to deploy its solutions for additional countries based on the needs of our clients. As of March 31, 2017, we have delivered over 130,000 tax, legal and regulatory updates to clients with quality and accuracy.

Product Delivery professionals serve in a variety of roles which include business, functional and technical analysts as well as software development, testing, quality assurance and delivery professionals. Scoping professionals and business analysts utilize proprietary methodologies to search for updates across all supported jurisdictions and provide support for all product groups. Technical and software development professionals are product-focused and have relevant domain expertise. Testing and delivery professionals are responsible for implementation of any changes and support all product groups. Engineers support all aspects of analysis, development and testing for the Product Delivery team. This flexible model has enabled us to identify best practices and solutions for the multiple product lines we service. Additionally, we utilize internally developed proprietary tools, technologies and processes to efficiently research and deliver quality and timely tax, legal and regulatory updates.

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Client Engagement

Account managers in our Client Engagement organization serve as a single point of contact for all non-product support related client issues. The Client Engagement organization works closely with our Support, Product Delivery and Sales organizations to provide an exceptional client experience with superior client satisfaction and success, with the ultimate goal of retention, renewal and expansion of our client contracts. The Client Engagement team oversees the following client management processes:

Onboarding

When a client switches to our support products and services, an account manager oversees the onboarding process, which is a set of interwoven processes that new clients undertake to facilitate a successful migration to our support model. During this time, we help clients smoothly transition their support while we gain an in-depth understanding of a client’s business needs, IT infrastructure, IT strategies and objectives.

Account Management

Following the onboarding period, account managers coordinate our resources and capabilities to provide personalized support to each client. When issues arise, account managers escalate them within our organization as appropriate to help ensure client satisfaction. Account managers are also tasked with establishing and maintaining executive relationships and promoting usage of our extensive services within each client’s organization.

Account Retention

Account managers play an integral role in client retention by helping to ensure our clients are realizing the full value of our service offering, and working with our Renewal Sales team on the renewal and extension of client contracts.

Clients

As of March 31, 2017, we supported nearly 1,300 clients globally, including 74 Fortune 500 companies and 21 Fortune Global 100 companies across a broad range of industries. We define a client as a distinct entity, such as a company, an educational or government institution, or a business unit of a company that purchases our services to support a specific product. For example, we count as two separate client instances in circumstances where we provide support for two different products to the same entity.

Employees

We have built our culture centered on our dedication to provide our clients with an exceptional service experience. Our employees focus on providing exceptional service to our clients, and we strive to foster an environment that enables and encourages them in this pursuit. Our culture is a key aspect of our success and enables us to recruit and retain high quality talent. Furthermore, our remote delivery model provides an attractive employment option for our highly experienced PSEs compared to consulting roles that can require significant travel.

As of March 31, 2017, we employed approximately 900 professionals globally. We also engage temporary employees and consultants as needed. We have not experienced any work stoppages, and we consider our relations with our employees to be very good.

Technology Infrastructure and Operations

We have IT infrastructure and staff globally. Our operations support our client offerings, compliance requirements and future global expansion. To connect to systems owned, leased or otherwise controlled by our clients, we utilize site-to-site tunnels and virtual private networks with secure firewall administration underpinned with a high level of global network reliability, security and performance.

We maintain a formal and comprehensive security program designed to ensure the security and integrity of client data, protect against security threats or data breaches, and prevent unauthorized access to the data of our customers. We have achieved worldwide ISO 27001:2013 information security certification for our security processes. We strictly regulate and limit all access to our offices, have deployed advanced security software and hardware, and utilize advanced security measures.

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Compliance and Certifications

ISO certifications are part of our commitment to developing and executing best-in-class processes to ensure our clients consistently receive exceptional service. We have achieved and maintain ISO 9001 and ISO 27001 certifications.

In 2010, we achieved ISO 9001 Quality Management System certification for “Third-party provider of enterprise software support services specifically on-boarding of client and client environments”. In 2011, we expanded our certification for “Provision of third-party enterprise software support services specifically on-boarding of client, building of client environments, worldwide tax and regulatory research and delivery of tax and regulatory updates”. In 2012, we expanded our certification for “Global provision of third-party enterprise software maintenance services, including client onboarding; client account management; product support for vendor delivered and client customized code; fix development and delivery; and research, development and delivery of worldwide tax, legal and regulatory updates”. The certification process verifies that detailed processes for relevant business areas are reviewed, continuously monitored and improved to ensure services and deliverables are consistently delivered with excellence. As of March 31, 2017, we are ISO 9001:2008 certified, and the certification is valid for three years with surveillance audits taking place annually.

In 2013, we achieved worldwide ISO 27001 information security certification for our support services. ISO 27001 is a security standard covering “The information security management system that supports the global provisioning of third-party software maintenance services”. Independent assessments of our conformity to the ISO 27001 standard includes evaluating security risks, designing and implementing comprehensive security controls and adopting an information security management process to meet security needs on an ongoing basis. As of March 31, 2017, we are ISO 27001:2013 certified, and the certification is valid for three years with surveillance audits taking place annually.

Competition

We compete in the market for enterprise software support products and services. This market has been dominated by the enterprise software vendors themselves as the primary support providers for their own products. The competitive service market with new independent competitors is still relatively undeveloped and maturing. As a result, our primary competition today comes from the enterprise software vendors who license the products we service, such as IBM, Microsoft, Oracle and SAP. We expect that continued growth in our market could lead to significantly increased competition resulting from new entrants. In the meantime, our success will depend to a substantial extent on the willingness of companies to engage an independent service vendor such as us to provide software maintenance and support services for their enterprise software.

The principal competitive factors in our market include the following:

track record of technical capability to provide the required software support;
ability to identify, develop and deliver required tax, legal and regulatory updates;
infrastructure model to deliver support globally within guaranteed service levels;
track record of providing a high level of client satisfaction;
ease of support model onboarding, deployment and usage;
breadth and depth of support functionality, including the ability to support customized software;
cost of products and services;
brand awareness and reputation;
capability for delivering services in a secure, scalable and reliable manner;
ability to innovate and respond to client needs rapidly; and
size of referenceable client base.

We believe we compete favorably with our competitors on the basis of these factors. Our support model allows us to gain an in-depth understanding of a given client’s unique software environment, enabling rapid and accurate responses to the client’s support requests. We provide our clients with comprehensive software support capabilities, including full support for add-ons and custom code as part of our services, something that enterprise software vendors

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typically do not provide with their standard support offering. We also offer our clients a substantial discount to the fees they would otherwise pay their enterprise software vendor for their support services and enable them to avoid or defer undesired, costly upgrades. By eliminating unnecessary upgrades, additional resources to support customizations and providing savings on support fees, based on our estimates, our clients can save up to approximately 1.5 times their traditional vendor base support fees per year when using our base support services over a 10-year period. We have also invested significant resources developing our unique service methodologies and a data capture and management process to deliver comprehensive tax, legal and regulatory updates tailored for each client.

However, some of our actual and potential competitors have advantages over us, such as longer operating histories, significantly greater financial, technical, marketing or other resources, greater name recognition and deeper customer relationships. Additionally, many software licensees are reluctant to engage a smaller independent company such as us to provide software maintenance and support services for their enterprise application software, choosing instead to continue relying on support services provided by their enterprise software vendor.

We expect competition and competitive pressure, both from new and existing competitors, to increase in the future.

Intellectual Property

We rely on federal, state, common law and international rights, as well as contractual restrictions, to protect our intellectual property. We control access to our proprietary technology by entering into confidentiality and invention assignment agreements with our employees and contractors, and confidentiality agreements with third parties, such as service providers, vendors, individuals and entities that may be exploring a business relationship with us.

In addition to these contractual arrangements, we also rely on a combination of trade secrets, copyrights, trademarks, service marks and domain names to protect our intellectual property.

We currently have three pending patent applications in the United States.

We own a federal trademark registration for the Rimini Street trademark in the United States, which registration will expire in March 2020 unless renewed through customary processes. We also own trademark registrations for Rimini Street in Canada, the European Union, China, Japan, India, Australia and certain other countries. Such registered trademarks will expire unless renewed at various times in the future. We have also applied for registration of Rimini Street as a trademark in certain other countries.

Despite our efforts to protect our proprietary processes and software tools and our intellectual property rights, unauthorized parties may attempt to copy or obtain and use our processes and software tools to develop competitive services.

Policing unauthorized use of our processes and software tools and intellectual property rights is difficult. As of March 31, 2017, we are not aware of any breaches of our intellectual property rights.

We expect that software, services and products in our industry may be subject to third-party infringement claims as the number of competitors grows and the functionality of software, services and products in different industry segments overlaps. Any of these third parties might make a claim of infringement against us at any time.

Facilities

Our principal executive offices are located in Las Vegas, Nevada. We also have offices located in Pleasanton, California; San Diego, California; New York, New York; Wilmington, Delaware; Greensboro, North Carolina; London, United Kingdom; Sydney, Australia; Melbourne, Australia; São Paulo, Brazil; Frankfurt, Germany; Paris, France; Stockholm, Sweden; Taipei, Taiwan; Tel Aviv, Israel; Tokyo, Japan; Osaka, Japan; Seoul, South Korea; Beijing, China; Hyderabad, India; Bengaluru, India; and Singapore.

We lease all of our facilities, and we do not own any real property. We are building and expanding in multiple locations globally. To the extent, we may require additional office space in the future, we believe that it would be readily available on commercially reasonable terms.

Legal Proceedings

In January 2010, certain subsidiaries of Oracle Corporation (together with its subsidiaries individually and collectively, “Oracle”) filed a lawsuit, Oracle USA, Inc. et al. v. Rimini Street, Inc. et al. (United States District Court for the District of Nevada) (“District Court”), against us and our Chief Executive Officer, Seth Ravin, alleging that

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certain of our processes violated Oracle’s license agreements with its customers and that we committed acts of copyright infringement and violated other federal and state laws (“Rimini I”). The litigation involved our business processes and the manner in which we provided our services to our clients. To provide software support and maintenance services, we request access to a separate environment for developing and testing the updates to the software programs. Prior to July 2014, PeopleSoft, J.D. Edwards and Siebel clients switching from Oracle to our enterprise software support systems were given a choice of two models for hosting the development and testing environment for their software: the environment could be hosted on the client’s servers or on our servers. In addition to other allegations, Oracle challenged the Rimini Street-hosted model for certain Oracle license agreements with its customers that contained site-based restrictions. Oracle alleged that its license agreements with its customers restrict licensees’ rights to provide third parties, such as Rimini Street, with copies of Oracle software and restrict where a licensee physically may install the software. Oracle alleged that, in the course of providing services, we violated such license agreements and illegally downloaded software and support materials without authorization. Oracle further alleged that we impaired its computer systems in the course of downloading materials for our clients. In April 2010 Oracle filed its first amended complaint, and in June 2011 Oracle filed its second amended complaint. Specifically, Oracle’s second amended complaint asserted the following causes of action: copyright infringement; violations of the Federal Computer Fraud and Abuse Act; violations of the Computer Data Access and Fraud Act; violations of Nevada Revised Statute 205.4765; breach of contract; inducing breach of contract; intentional interference with prospective economic advantage; unfair competition; trespass to chattels; unjust enrichment/restitution; unfair practices; and a demand for an accounting. Oracle’s second amended complaint sought the entry of a preliminary and permanent injunction prohibiting us from copying, distributing, using, or creating derivative works based on Oracle Software and Support Materials except as allowed by express license from Oracle; from using any software tool to access Oracle Software and Support Materials; and from engaging in other actions alleged to infringe Oracle’s copyrights or were related to its other causes of action. The parties conducted extensive fact and expert discovery from 2010 through mid-2012.

In March and September 2012, Oracle filed two motions seeking partial summary judgment as to, among other things, its claim of infringement of certain copyrighted works owned by Oracle. In February 2014, the District Court issued a ruling on Oracle’s March 2012 motion for partial summary judgment (i) granting summary judgment on Oracle’s claim of copyright infringement as it related to two of our PeopleSoft clients and (ii) denying summary judgment on Oracle’s claim with respect to one of our J.D. Edwards clients and one of our Siebel clients. The parties stipulated that the licenses among clients were substantially similar. In August 2014, the District Court issued a ruling on Oracle’s September 2012 motion for partial summary judgment (i) granting summary judgment on Oracle’s claim of copyright infringement as it relates to Oracle Database and (ii) dismissing our first counterclaim for defamation, business disparagement and trade libel and our third counterclaim for unfair competition. We believe we are in compliance with the District Court’s decisions not later than July 2014 when we revised our business practices to eliminate the processes determined to be infringing.

A jury trial in Rimini I commenced in September 2015. On October 13, 2015, the jury returned a verdict against us that (i) we were liable for innocent copyright infringement, (ii) we and Mr. Ravin were each liable for violating certain state computer access statutes, and (iii) neither we nor Mr. Ravin were liable for inducing breach of contract or intentional interference with prospective economic advantage. The jury determined that the copyright infringement did not cause Oracle to suffer lost profits, that the copyright infringement was not willful, and did not award punitive damages. Following post-trial motions, Oracle was awarded a final judgment of $124.4 million, consisting of copyright infringement damages based on the fair market value license damages theory, damages for violation of certain state computer access statutes, prejudgment interest and attorneys’ fees and costs. In addition, the District Court entered a permanent injunction prohibiting us from using certain processes – including processes adjudicated as infringing at trial – that we ceased using no later than July 2014. We paid the full judgment amount of $124.4 million to Oracle on October 31, 2016 and have appealed the case to the United States Court of Appeals for the Ninth Circuit (“Court of Appeals”) to appeal each of the above items in the final judgment as well as the injunction. With regard to the injunction entered by the District Court, we have argued on appeal that the injunction is vague and contains overly broad language that could be read to cover some of our current business practices that were not adjudicated to be infringing at trial and should not have been issued under applicable law. On December 6, 2016, the Court of Appeals granted our emergency motion for a stay of the permanent injunction pending resolution of the underlying appeal and agreed to consider the appeal on an expedited basis. Oral argument before the Court of Appeals is scheduled for July 13, 2017. We expect a decision from the Court of Appeals on our appeal by early 2018, although a decision could be announced sooner or later.

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In October 2014, we filed a separate lawsuit, Rimini Street Inc. v. Oracle Int’l Corp. (United States District Court for the District of Nevada) (“Rimini II”), against Oracle seeking a declaratory judgment that our revised development processes, in use since at least July 2014, do not infringe certain Oracle copyrights. In February 2015, Oracle filed a counterclaim alleging copyright infringement, which included (i) the same allegations asserted in Rimini I but limited to new or existing clients for whom we provided support from the conclusion of Rimini I discovery in December 2011 until the revised support processes were fully implemented by July 2014, and (ii) new allegations that our revised support processes also infringe Oracle copyrights. Oracle’s counterclaim also included allegations of violation of the Lanham Act, intentional interference with prospective economic advantage, breach of contract and inducing breach of contract, unfair competition, and unjust enrichment/restitution. It also sought an accounting. On February 28, 2016, Oracle filed amended counterclaims adding allegations of violation of the Digital Millennium Copyright Act. On December 19, 2016, we filed an amended complaint against Oracle asking for a declaratory judgment of non-infringement of copyright and alleging intentional interference with contract, intentional interference with prospective economic advantage, violation of the Nevada Deceptive Trade Practices Act, violation of the Lanham Act, and violation of California Business & Professions Code §17200 et seq. On January 17, 2017, Oracle filed a motion to dismiss our amended claims and filed its third amended counterclaims, adding three new claims for a declaratory judgment of no intentional interference with contractual relations, no intentional interference with prospective economic advantage, and no violation of California Business & Professions Code §17200 et seq. On February 14, 2017, we filed our answer and motion to dismiss Oracle’s third amended counterclaim, which has been fully briefed and is pending consideration by the District Court. On March 7, 2017, Oracle filed a motion to strike our copyright misuse affirmative defense which is briefed and pending consideration by the District Court. By stipulation of the parties, the District Court granted our motion to file our third amended complaint to add claims arising from Oracle’s purported revocation of our access to its support websites on behalf of our clients, which was filed and served on May 2, 2017. By agreement of the parties, Oracle filed its motion to dismiss our third amended complaint on May 30, 2017, and our opposition is due on June 27, 2017, and any reply by Oracle is due on July 11, 2017.

Discovery with respect to the above action is expected to continue through at least July 2018. There is currently no trial date scheduled and we do not expect a trial to occur in this matter earlier than 2020, but the trial could occur earlier or later than that. Given that discovery is ongoing, we do not have sufficient information regarding possible damages exposure for the counterclaims asserted by Oracle or possible recovery by us in connection with our claims against Oracle. Both parties are seeking injunctive relief in addition to monetary damages in this matter.

In addition, from time to time, we may be a party to litigation and subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business. Regardless of the outcome, litigation can have an adverse impact on us because of judgment, defense and settlement costs, diversion of management resources and other factors.

Executive Officers of Rimini Street

As of the date of this joint proxy statement/prospectus, Rimini Street’s executive officers are as follows:

Name
Age
Position
Executive Officers
 
 
Seth A. Ravin
51
Chief Executive Officer
Sebastian Grady
53
President
Nancy Lyskawa
54
Senior Vice President, Global Client Onboarding
Kevin Maddock
52
Senior Vice President, Global Sales
David Rowe
51
Senior Vice President and Chief Marketing Officer
Thomas Sabol
58
Senior Vice President and Chief Financial Officer
Thomas C. Shay
51
Senior Vice President, Chief Information Officer, Secretary
Brian Slepko
54
Senior Vice President, Global Service Delivery
Daniel B. Winslow
59
Senior Vice President, General Counsel

Seth A. Ravin

Seth A. Ravin founded our company and has served as our Chief Executive Officer and Chairman of the Board since September 2005 and also served as our President from September 2005 to January 2011. Mr. Ravin has served

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as a member of our board of directors since September 2005. Prior to joining us, Mr. Ravin served in various executive roles at TomorrowNow, Inc. from May 2002 to April 2005, most recently as President and a board director. TomorrowNow, Inc. was a supplier of software maintenance and support services for Oracle’s PeopleSoft and J.D. Edwards applications, and was acquired in January 2005 as a wholly-owned subsidiary of SAP America, Inc. From April 2000 to March 2001, Mr. Ravin served as Vice President of Inside Sales for Saba Software, Inc., a provider of e-Learning and human resource management software. From April 1996 to April 2000, Mr. Ravin served in various management roles at PeopleSoft, Inc. (acquired by Oracle), most recently as a Vice President of the Customer Sales Division. Mr. Ravin holds a Bachelor of Science in Business Administration from the University of Southern California.

Sebastian Grady

Sebastian Grady has served as our President since January 2011. Prior to joining us, Mr. Grady served as President and Chief Operating Officer at Altus Corporation, a provider of video search and management software for sales enablement, from March 2005 to January 2011. From October 2000 to October 2001, he served as President and Chief Operating Officer of Saba Software, Inc. From March 1993 to October 2000, Mr. Grady served in various executive roles with PeopleSoft, Inc. (acquired by Oracle Corporation), most recently as Vice President and General Manager of the customer sales division from March 1997 to October 2000. From February 1987 to March 1993, Mr. Grady served in various roles with Accenture (formerly Andersen Consulting). Mr. Grady holds a Bachelor of Science degree in Computer Science from Rensselaer Polytechnic Institute.

Nancy Lyskawa

Nancy Lyskawa has served as our Senior Vice President, Global Client Onboarding since September 2009. Prior to joining us, Ms. Lyskawa was with Oracle Corporation, a computer technology company, from December 2004 to September 2009, where she served in various executive roles, most recently as Vice President, Support Services and Marketing, from August 2005 to September 2009. From March 1994 to December 2004, she served as head of Global Services Marketing for PeopleSoft, Inc. (acquired by Oracle Corporation). From May 1986 to March 1994, Ms. Lyskawa served in various roles with Electronic Data Systems Corporation (acquired by Hewlett-Packard Company). Ms. Lyskawa is a Certified Management Accountant (CMA). Ms. Lyskawa holds a Bachelor of Business Administration in Accounting and Finance from the University of North Dakota and a Masters Certificate in Marketing from the Cox School of Business at Southern Methodist University.

Kevin Maddock

Kevin Maddock has served as our Senior Vice President, Global Sales since December 2008. Prior to joining us, Mr. Maddock served as Executive Vice President of Worldwide Inside Sales and Operations for ServiceSource, a recurring revenue management company, from October 2004 to March 2008. From May 1998 to September 2004, Mr. Maddock served as Vice President of Worldwide Support Service Sales at PeopleSoft, Inc. (acquired by Oracle). From September 1995 to May 1998, Mr. Maddock served in multiple roles at KPMG Consulting. From August 1987 to April 1993, Mr. Maddock served in various roles at Accenture (formerly Andersen Consulting). Mr. Maddock holds a Bachelor of Business Administration in Finance with Honors from the University of Notre Dame and an M.B.A. from the Anderson School of Management at UCLA.

David Rowe

David Rowe has served as our Senior Vice President and Chief Marketing Officer since April 2012 and was our Senior Vice President of Global Marketing and Alliances from December 2008 to April 2012 and our Vice President Marketing and Alliances from September 2006 to December 2008. Prior to joining us, Mr. Rowe served as Vice President of Product Management and Marketing at Perfect Commerce, Inc., an eProcurement company, from November 2004 to June 2006. From May 1995 to June 1999, Mr. Rowe held various positions with PeopleSoft, Inc. (acquired by Oracle Corporation), most recently serving as Director, Product Strategy. From July 1988 to April 1995, Mr. Rowe served in various roles at Accenture (formerly Andersen Consulting). Mr. Rowe holds a Bachelor of Science degree in Engineering from Harvey Mudd College.

Thomas Sabol

Thomas Sabol has served as our Senior Vice President and Chief Financial Officer since November 2016. Prior to joining the company, Mr. Sabol provided management consulting services from May 2015 to November 2016. He served as Chief Financial Officer of Comverse, Inc. (now Mavenir Systems, Inc.), a global software service provider,

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from July 2012 to April 2015. From April 2009 to August 2011, Mr. Sabol served as Chief Financial Officer of Hypercom Corporation, a publicly-traded global leader in high security, end-to-end electronic payment products and services. From February 2006 to April 2009, he served as Chief Financial Officer of Suntron Corporation, a publicly-traded provider of electronic manufacturing services that was taken private by its majority shareholder in December 2007. Prior thereto, Mr. Sabol served as Chief Financial Officer of Wolverine Tube, Inc. and in senior executive positions at Plexus Corp., including as its Chief Operating Officer and Chief Financial Officer. Mr. Sabol was also the General Auditor at Kemper Corporation and practiced public accounting with Coopers & Lybrand. Mr. Sabol formerly served as a director of Suntron Corporation from July 2004 to April 2009. Mr. Sabol is a Certified Public Accountant and holds a B.S. in Accounting from Marquette University.

Thomas Shay

Thomas C. Shay co-founded our company and has served as our Senior Vice President and Chief Information Officer since August 2012, was our Executive Vice President, Operations from October 2006 to August 2012, and was our Chief Technology Officer from January 2006 to October 2006. Mr. Shay served as our Secretary since August 2006. From July 1989 to November 2004, Mr. Shay served in various roles at Sun Microsystems, Inc. (acquired by Oracle Corporation), most recently as Field Application Engineering Manager, Asia Pacific where he oversaw multiple engineering teams across Japan, China, Taiwan, Korea and Singapore. Mr. Shay has served as a member of our board of directors since August 2006. Mr. Shay holds a Bachelor of Science in Electrical Engineering from UCLA, and a Masters of Engineering in Electrical and Computer Engineering from Cornell University.

Brian Slepko

Brian Slepko has served as our Senior Vice President, Global Service Delivery, since 2008 and served as a member of our board of directors from October 2006 to July 2007. Prior to joining us, Mr. Slepko was with Oracle Corporation, which he joined as part of Oracle’s acquisition of Agile Software, Inc., an enterprise software solutions company. From July 2005 to June 2007, Mr. Slepko served as Vice President of Global Maintenance Revenue and Sales Operations at Agile Software. From March 2003 to February 2005, Mr. Slepko served as a Director of Sales Operations for Ocular Sciences, Inc. From August 1995 to May 2001, Mr. Slepko served in a variety of roles with PeopleSoft, Inc. (acquired by Oracle Corporation), most recently serving as Director, Sales Operations. From January 1990 to August 1995, Mr. Slepko held various roles with Accenture (formerly Andersen Consulting). Mr. Slepko holds a Bachelor of Business Administration in Management and Management Information Systems from the University of Oklahoma and an M.B.A. from Loyola University of Chicago.

Daniel B. Winslow

Daniel B. Winslow has served as our Senior Vice President, General Counsel since September 2013. Prior to joining us, Mr. Winslow was a member of the Massachusetts House of Representatives from January 2011 to September 2013. Mr. Winslow served as Of Counsel at the law firm of Duane Morris LLP from June 2013 to September 2013. He served as Senior Counsel at the law firm of Proskauer Rose LLP from May 2010 to March 2013 and as a partner at Duane Morris LLP from January 2005 to May 2010. From January 2002 to December 2004, he was Chief Legal Counsel to then-Massachusetts Governor Mitt Romney and was previously a presiding justice and appellate division justice in the Massachusetts Trial Court. Mr. Winslow holds a Bachelor of Arts degree in Political Science from Tufts University and a J.D. from Boston College Law School.

Rimini Street, Inc. Related Person Transactions

In addition to the director and executive officer compensation arrangements and indemnification arrangements discussed above in the section entitled “ Executive Compensation in Relation to Rimini Street ” the following is a description of transactions and series of similar transactions, during our last three fiscal years, to which Rimini Street was a party or will be a party, in which:

the amounts involved exceeded or will exceed $120,000; and
any of our directors, executive officers or beneficial holders of more than 5% of any class of our capital stock, or any immediate family member of such related person, had or will have a direct or indirect material interest.

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Series C Convertible Preferred Stock Financing

On October 31, 2016, Rimini Street sold an aggregate of 56,441,036 shares of its Series C convertible preferred stock at a purchase price of approximately $0.1772 per share, for an aggregate purchase price of $10 million. The following table summarizes purchases of Rimini Street, Inc.’s Series C convertible preferred stock by related persons:

Name of Stockholder
Shares of Series C
Preferred Stock
Total
Purchase
Price
Entities affiliated with Adams Street Partners (1)
 
56,441,036
 
$
10,001,351
 
(1) Entities affiliated with Adams Street Partners, whose shares are aggregated for purposes of reporting share ownership information, are Adams Street 2007 Direct Fund, L.P., Adams Street 2008 Direct Fund, L.P., Adams Street 2009 Direct Fund, L.P., Adams Street 2013 Direct Fund LP, Adams Street 2014 Direct Fund LP, Adams Street 2015 Direct Venture/Growth Fund LP, Adams Street 2016 Direct Venture/Growth Fund LP, and Adams Street Venture/Growth Fund VI LP. Entities affiliated with Adam Street Partners beneficially hold more than 5% of the capital stock of Rimini Street and Robin Murray, a member of Rimini Street’s board of directors, is a partner at Adams Street Partners.

Investors’ Rights Agreement

Rimini Street is party to an investors’ rights agreement that provides, among other things, that holders of Rimini Street’s preferred stock, including stockholders affiliated with some of its directors, have the right to demand that Rimini Street file a registration statement or request that their shares be covered by a registration statement that it is otherwise filing. For a more detailed description of these registration rights, see the section entitled “ Description of RMNI Securities—Registration Rights ”.

Debt Financing Agreements

In June 2016, Rimini Street entered into a multi-draw term loan Financing Agreement (the “Credit Facility”) and other related agreements with a syndicate of lenders including Cortland Capital Market Services as administrative agent and collateral agent, and CB Agent Services LLC as origination agent for the lenders, and the other parties named therein. The Financing Agreement was subsequently amended in August 2016, October 2016 and twice in May 2017. The Credit Facility, as amended, provides for an aggregate commitment up to $125.0 million, which consisted of an initial term loan for $30.0 million, a “delayed draw A Term Loan” for $65.0 million, and a “delayed draw B Term Loan” for $30.0 million. Outstanding borrowings under the Credit Facility require monthly interest payments of 15.0% per annum. The principal balance outstanding under the Credit Facility for the year ended December 31, 2016 was $107.0 million and the largest aggregate principal balance outstanding under the Credit Facility was $107.5 million. Rimini Street paid a total of $0.5 million in principal payments and $2.5 million in interest payments during the year ended December 31, 2016. Certain affiliates of CB Agent Services LLC, who is the origination agent under the Credit Facility and beneficially holds more than 5% of the capital stock of Rimini Street in the form of warrants as described below, are lenders under the Credit Facility with respect to outstanding loans and unfunded commitments totaling $35.0 million in the aggregate. Entities affiliated with Adams Street Partners, who beneficially hold more than 5% of the capital stock of Rimini Street and who is affiliated with Robin Murray, a member of Rimini Street’s board of directors, hold a $10.0 million participation interest in outstanding loans under the Credit Facility. In connection with entry into the Credit Facility, Rimini Street paid for consulting, legal, due diligence and other fees totaling $25.7 million. See the section entitled “ Management’s Discussion and Analysis of Financial Condition and Results of Operations of Rimini Street—Liquidity and Capital Resources ” for further information.

Warrant Agreements

In connection with entry into the Credit Facility, in June 2016, Rimini Street issued a warrant to CB Agent Services LLC, which was subsequently amended in May 2017. Upon the terms of the amended warrant, the warrant holder has the right to purchase up to 3,537,412 shares of common stock of Rimini Street at $1.35 per share. The warrant is exercisable on or before June 24, 2026 or upon a change of control, as defined therein. Upon the closing of the business combination, the warrant holder’s rights to shares of Rimini Street will convert into rights to shares of RMNI.

In October 2014, Rimini Street issued a warrant to entities affiliated with Adams Street Partners, who beneficially hold more than 5% of the capital stock of Rimini Street and who is affiliated with Robin Murray, a member of Rimini Street’s board of directors, in exchange for a guarantee up to £550,000 to the United Kingdom

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government for support service agreements to be provided by the Rimini Street for approximately three years. Upon the terms of the warrant, the warrant holder has the right to purchase up to 344,828 shares of common stock of Rimini Street. at $1.16 per share. The warrant is exercisable on or before October 29, 2019 or upon the occurrence of a merger.

Consulting Services Agreement

For the year ended December 31, 2015, Rimini Street paid $180,000 to Doug Zorn, who served as our Chief Financial Officer during portions of 2015 and 2016, for certain consulting services. This arrangement terminated in August 2015 when Mr. Zorn was hired to serve as the Rimini Street’s Chief Financial Officer. Mr. Zorn retired from Rimini Street prior to December 31, 2016.

Rimini Street Related Person Policy

As a privately held company, Rimini Street was not required to maintain a Related Person Policy. Following consummation of the business combination, Rimini Street will be subject to RMNI’s Related Person Policy described under the section entitled “ Certain Relationships and Related Person Transactions—Rimini Street, Inc.—RMNI Related Person Policy ”.

With respect to the consolidated financial statements of Rimini Street, Inc. and subsidiaries contained elsewhere in this joint proxy statement/prospectus, Rimini Street is subject to Auditing Standard No. 18 of the Public Company Accounting Oversight Board, which requires auditors to evaluate a company’s identification of, accounting for and disclosure of related party relationships and transactions.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OF RIMINI STREET

The following discussion and analysis of Rimini Street’s financial condition and results of operations should be read in conjunction with Rimini Street’s consolidated financial statements and the related notes to those statements included elsewhere in this joint proxy statement/prospectus. In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Rimini Street’s actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under the section titled “Risk Factors” and elsewhere in this joint proxy statement/prospectus.

Certain figures, such as interest rates and other percentages, included in this section have been rounded for ease of presentation. Percentage figures included in this section have not in all cases been calculated on the basis of such rounded figures but on the basis of such amounts prior to rounding. For this reason, percentage amounts in this section may vary slightly from those obtained by performing the same calculations using the figures in our consolidated financial statements or in the associated text. Certain other amounts that appear in this section may similarly not sum due to rounding.

Unlike in certain other sections of this joint proxy statement/prospectus, in this section, references to “we”, the “Company”, “us” and “our” are references to Rimini Street, Inc.

Overview

Rimini Street, Inc. is a global provider of enterprise software support products and services, and the leading independent software support provider for Oracle and SAP products, based on the number of clients supported. We founded our company to disrupt and redefine the enterprise software support market by developing and delivering innovative new products and services that fill a then unmet need in the market. We achieved our leadership position in independent enterprise software support by recruiting and hiring experienced, skilled and proven staff; delivering outcomes-based, value-driven and award-winning enterprise software support products and services; seeking to provide an exceptional client-service, satisfaction and success experience; and continuously innovating our unique products and services by leveraging our proprietary knowledge, tools, technology and processes.

Enterprise software support products and services is one of the largest categories of overall global information technology (“IT”) spending. As core enterprise resource planning (“ERP”), customer relationship management (“CRM”), product lifecycle management (“PLM”) and technology software platforms have become increasingly important in the operation of mission-critical business processes over the last 30 years, the costs associated with failure, downtime, security exposure and maintaining the tax, legal and regulatory compliance of these core software systems have also increased. As a result, licensees often view software support as a mandatory cost of doing business, resulting in recurring and highly profitable revenue streams for enterprise software vendors. For example, for its fiscal year 2016, SAP reported that support revenue represented approximately 48% of its total revenue, and Oracle reported a margin of 94% for software license updates and product support.

We believe that software vendor support is an increasingly costly model that has not evolved to offer licensees the responsiveness, quality, breadth of capabilities or value needed to meet the needs of licensees. Organizations are under increasing pressure to reduce their IT costs while also delivering improved business performance through the adoption and integration of emerging technologies, such as mobile, virtualization, internet of things (“IoT”) and cloud computing. Today, however, the majority of IT budget is spent operating and maintaining existing infrastructure and systems. Organizations are increasingly seeking ways to redirect budgets from maintenance to new technology investments that provide greater strategic value, and our software products and services help clients achieve these objectives by reducing the total cost of support.

As of March 31, 2017, we employed approximately 900 professionals and supported nearly 1,300 clients globally, including 74 Fortune 500 companies and 21 Fortune Global 100 companies across a broad range of industries. We define a client as a distinct entity, such as a company, an educational or government institution, or a business unit of a company that purchases our services to support a specific product. For example, we count as two separate client instances in circumstances where we provide support for two different products to the same entity.

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We market and sell our services globally, primarily through our direct sales force, and have wholly-owned subsidiaries in Australia, Brazil, Germany, Hong Kong, India, Israel, Japan, Korea, Sweden, Taiwan, the United Kingdom and the United States. Our primary competitors are the enterprise software vendors whose products we service and support, including IBM, Microsoft, Oracle and SAP.

We have experienced 45 consecutive quarters of revenue growth through March 31, 2017. In addition, our subscription-based revenue provides a strong foundation for, and visibility into, future period results. We generated net revenue of $85.3 million, $118.2 million and $160.2 million for the years ended December 31, 2014, 2015 and 2016, respectively, representing a year-over-year increase of 38% and 36% in 2015 and 2016, respectively, and $34.7 million and $49.1 million for the three months ended March 31, 2016 and 2017, respectively, representing a period-over-period increase of 42%. We have a history of losses, and as of March 31, 2017, we had an accumulated deficit of $265.6. We had net losses of $127.8 million, $45.3 million and $12.9 million for the years ended December 31, 2014, 2015 and 2016, respectively, and $8.0 million and $14.5 million for the three months ended March 31, 2016 and 2017, respectively. We generated approximately 66% of our net revenue in the United States and approximately 34% of our net revenue from our international business for the three months ended March 31, 2017.

Since our inception, we have financed our operations through cash collected from clients and net proceeds from equity financings and borrowings. As of March 31, 2017, we had outstanding contractual obligations under the Credit Facility of $170.4 million and the net carrying value of those debt obligations was $93.2 million.

We intend to continue investing for long-term growth. We have invested and expect to continue investing in expanding our ability to market, sell and provide our current and future products and services to clients globally. We also expect to continue investing in the development and improvement of new and existing products and services to address client needs. We currently do not expect to be profitable in the near future.

Our Business Model

Most enterprise software vendors license the rights for customers to use their software. In a traditional licensing model, the customer typically procures a perpetual software license and pays for the license in a single upfront fee (“Perpetual License”), and base software support services can be optionally procured from the software vendor for an annual fee that averages 22% of the total cost of the software license. In a subscription-based licensing model, such as software as a service, or SaaS, the customer generally pays as it goes for usage of the software on a monthly or annual basis (“Subscription License”). Under a Subscription License, the product license and a base level of software support are generally bundled together as a single purchase, and the base level of software support is not procured separately nor is it an optional purchase.

When we provide base software support for a Perpetual License, we generally offer our clients service for a fee that is equal to approximately 50% of the annual fees charged by the software vendor for their base support. When providing supplemental software support for a Perpetual License, where the client procures our support service in addition to retaining the software vendor’s base support, we generally offer our clients service for a fee that is equal to 25% of the annual fees charged by the software vendor for their base support. For supplemental software support on a Subscription License, we generally offer our clients services for a fee that is equal to 50% of the annual fees charged by the software vendor for their supplemental or premium support. We also offer a special support service, Rimini Street Extra Secure Support, for clients that require a higher level of security clearance for our engineers accessing their system. Rimini Street Extra Secure Support is an additional fee added to our base or supplemental support fee, and priced at approximately 1% of the software vendor’s annual fees for base maintenance for Perpetual Licenses and priced at approximately 2% of the subscription fees for Subscription Licenses. Subscriptions for additional software products and services are available, designed to meet specific client needs and provide exceptional value for the fees charged.

Our subscription-based software support products and services offer enterprise software licensees a choice of solutions that replace or supplement the support products and services offered by enterprise software vendors for their products. Features, service levels, service breadth, technology and pricing differentiate our software products and services. Clients utilize our software products and services to achieve substantial cost savings; receive more responsive and comprehensive support; obtain support for their customized software that is not generally covered under the enterprise software vendor’s service offerings; enhance their software functionality, capabilities, and data usage; and protect their systems and extend the life of their existing software releases and products. Our products and

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services enable our clients to keep their mission-critical systems operating smoothly and to remain in tax, legal and regulatory compliance; improve productivity; and better allocate limited budgets, labor and other resources to investments that provide competitive advantage and support growth.

We currently offer most of our support products and services on a subscription basis for a term that is generally 15 years in length with an average initial, non-cancellable period of two years. The negotiated fees extend for the full term of the contract and usually include modest increases (averaging approximately three percent) after the initial non-cancelable period of each contract. For the year ended December 31, 2016, approximately 78% of our invoicing was generated inside a non-cancellable period, and approximately 22% of our invoicing was generated outside of a non-cancellable period.

After a non-cancellable period, our clients generally have the ability to terminate their support contracts on an annual basis upon 90 days’ notice prior to the end of the support period or renegotiate a mutually-agreeable, additional support period – including potentially an additional multi-year, non-cancellable support period. We generally invoice our clients annually in advance of the support period. We record amounts invoiced for support periods that have not yet occurred as deferred revenue on our balance sheet. We net any unpaid accounts receivable amounts relating to cancellable support periods against deferred revenue on our balance sheet.

Our pricing model is a key component of our marketing and sales strategy and delivers significant savings and value to our clients.

Key Business Metrics

Number of clients

Since we founded our company, we have made the expansion of our client base a priority. We believe that our ability to expand our client base is an indicator of the growth of our business, the success of our sales and marketing activities, and the value that our services bring to our clients. We define a client as a distinct entity, such as a company, an educational or government institution, or a business unit of a company that purchases our services to support a specific product. For example, we count as two separate clients when support for two different products is being provided to the same entity. As of December 31, 2014, 2015 and 2016 and March 31, 2016 and 2017, we had over 650, 850 and 1200 and over 880 and 1,280 clients, respectively. We believe that the growth in our number of clients is an indication of the increased adoption of our enterprise software products and services.

Annualized subscription revenue

We recognize subscription revenue on a daily basis. We define annualized subscription revenue as the amount of subscription revenue recognized during a quarter and multiplied by four. This gives us an indication of the revenue that can be earned in the following 12-month period from our existing client base assuming no cancellations or price changes occur during that period. Subscription revenue excludes any non-recurring revenue, which has been insignificant to date.

Our annualized subscription revenue was approximately $102 million, $132 million and $187 million as of December 31, 2014, 2015 and 2016, respectively, and $196 million as of March 31, 2017 compared to $139 million as of March 31, 2016. We believe the sequential increase in annualized subscription revenue demonstrates a growing client base, which is an indicator of stability in future subscription revenue.

Revenue retention rate

A key part of our business model is the recurring nature of our revenue. As a result, it is important that we retain clients after the completion of the non-cancellable portion of the support period. We believe that our revenue retention rate provides insight into the quality of our products and services and the value that our products and services provide our clients.

We define revenue retention rate as the actual subscription revenue (dollar-based) recognized in a 12-month period from clients that existed on the day prior to the start of the 12-month period divided by our annualized subscription revenue as of the day prior to the start of the 12-month period. Our revenue retention rate was 95%, 91% and 94% for the years ended December 31, 2014, 2015 and 2016, respectively, and 94% for the three-month period ended March 31, 2017 compared to 92% for the three-month period ended March 31, 2016.

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Gross profit percentage

We derive revenue through the provision of our enterprise software products and services. All the costs incurred in providing these products and services are recognized as part of the cost of revenue, and presented on our income statement. The cost of revenue includes all direct product line expenses, as well as the expenses incurred by our shared services organization which supports all product lines.

We define gross profit as the difference between net revenue and the costs incurred in providing the software products and services. Gross profit percentage is the ratio of gross profit divided by net revenue. Our gross profit percentage was 47%, 55% and 58% for the years ended December 31, 2014, 2015, and 2016 respectively, and 63% for the three-month period ended March 31, 2017 compared to 58% for the three-month period ended March 31, 2016. We believe the gross profit percentage provides an indication of how efficiently and effectively we are operating our business and serving our clients.

Factors Affecting Our Operating Performance

Litigation

In January 2010, certain subsidiaries of Oracle filed a lawsuit, Oracle USA, Inc. et al v. Rimini Street, Inc. et al. (United States District Court for the District of Nevada) (“District Court”), against us and our Chief Executive Officer, Seth Ravin, alleging that certain of our processes violated Oracle’s license agreements with its customers and that we committed acts of copyright infringement and violated other federal and state laws (“Rimini I”). In 2014, the District Court issued rulings that we infringed Oracle’s copyrights as it related to two of our PeopleSoft clients and by copying Oracle Relational Database Management software to our servers. We revised our business processes by July 2014, to eliminate the infringing processes in compliance with the District Court’s rulings.

A jury trial in Rimini I resulted in a verdict against us that (i) we were liable for innocent copyright infringement, (ii) we and Mr. Ravin were each liable for violating certain state computer access statutes and (iii) neither we nor Mr. Ravin were liable for inducing breach of contract or intentional interference with prospective economic advantage. The jury determined that the copyright infringement did not cause Oracle to suffer lost profits, that the copyright infringement was not willful, and did not award punitive damages. Following post-trial motions, Oracle was awarded a final judgment of $124.4 million, consisting of copyright infringement damages based on the fair market value license damages theory, damages for violation of certain state computer access statutes, prejudgment interest and attorneys’ fees and costs. In addition, the District Court entered a permanent injunction prohibiting us from using certain processes – including processes adjudicated as infringing at trial – that we ceased using no later than July 2014. We paid the full judgment amount of $124.4 million to Oracle on October 31, 2016 and have appealed the case to the United States Court of Appeals for the Ninth Circuit (“Court of Appeals”). On December 6, 2016, the Court of Appeals granted our emergency motion for a stay of the permanent injunction pending resolution of the underlying appeal and agreed to consider the appeal on an expedited basis. Oral argument before the Court of Appeals is scheduled for July 13, 2017.

We expect a decision from the Court of Appeals on our appeal by early 2018, although a decision could be announced sooner or later.

In October 2014, we filed a separate lawsuit, Rimini Street Inc. v. Oracle Int’l Corp. (United States District Court for the District of Nevada) (“Rimini II”), against Oracle seeking a declaratory judgment that our revised development processes, in use since at least July 2014, do not infringe certain Oracle copyrights. In February 2015, Oracle filed a counterclaim alleging copyright infringement, which included (i) the same allegations asserted in Rimini I but limited to new or existing clients for whom we provided support from the conclusion of Rimini I discovery in December 2011 until the revised support processes were fully implemented by July 2014, and (ii) new allegations that our revised support processes also infringe Oracle copyrights. Oracle’s counterclaim also included allegations of violation of the Lanham Act, intentional interference with prospective economic advantage, breach of contract and inducing breach of contract, unfair competition, and unjust enrichment/restitution. It also sought an accounting. On February 28, 2016, Oracle filed amended counterclaims adding allegations of violation of the Digital Millennium Copyright Act. On December 19, 2016, we filed an amended complaint against Oracle asking for a declaratory judgment of non-infringement of copyright and alleging intentional interference with contract, intentional interference with prospective economic advantage, violation of the Nevada Deceptive Trade Practices Act, violation of the Lanham Act, and violation of California Business & Professions Code §17200 et seq. On January 17, 2017, Oracle filed a motion to dismiss our amended claims and filed its third amended counterclaims, adding three new claims for a declaratory judgment of no intentional interference with contractual relations, no intentional interference

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with prospective economic advantage, and no violation of California Business & Professions Code §17200 et seq. On February 14, 2017, we filed our answer and motion to dismiss Oracle’s third amended counterclaim, which has been fully briefed and is pending consideration by the District Court. On March 7, 2017, Oracle filed a motion to strike our copyright misuse affirmative defense which is briefed and pending consideration by the District Court. By stipulation of the parties, the District Court granted our motion to file our third amended complaint to add claims arising from Oracle’s purported revocation of our access to its support websites on behalf of our clients, which was filed and served on May 2, 2017. By agreement of the parties, Oracle filed its motion to dismiss our third amended complaint on May 30, 2017 and our opposition is due on June 27, 2017, and any reply by Oracle is due on July 11, 2017. Discovery with respect to this action is expected to continue through at least July 2018. There is currently no trial date scheduled and we do not expect a trial to occur in this matter earlier than 2020, but the trial could occur earlier or later than that. Given that discovery is ongoing, we do not have sufficient information regarding possible damages exposure for the counterclaims asserted by Oracle or possible recovery by us in connection with our claims against Oracle. Both parties are seeking injunctive relief in addition to monetary damages in this matter.

The details of these cases are discussed under “ Information about Rimini Street—Legal Proceedings ”, “ Risk Factors— Risks Related to Rimini Street’s Business, Operations and Industry—Risks Related to Litigation—We and our Chief Executive Officer are involved in litigation with Oracle. An adverse outcome in the ongoing litigation could result in the payment of substantial damages and/or an injunction against certain of our business practices, either of which could have a material adverse effect on our business and financial results ” and elsewhere in this joint proxy/prospectus. For claims on which Oracle has prevailed or may prevail, we have been and could be required to pay substantial damages for our current or past business activities, be enjoined from certain business practices, and/or be in breach of various covenants in our financing arrangements, which could result in an event of default, in which case the lenders could demand accelerated repayment of principal, accrued and default interest and other fees and expenses. Any of these outcomes could result in a material adverse effect on our business.

We accounted for the $124.4 million award in Rimini I to Oracle by recording an accrued legal settlement expense of (i) $100.0 million for the year ended December 31, 2014, (ii) $21.4 million for the year ended December 31, 2015, and (iii) pre-judgment interest of $3.0 million for the period from January 1, 2016 through October 31, 2016, which is reflected in our 2016 financial statements. There remain significant disputes between us and Oracle in Rimini II, and we do not concede any liability or damages related to any claim. After assessing the current procedural and substantive status of the Rimini II litigation, we do not believe a loss or range of reasonably possible losses can be estimated at this time.

Adoption of enterprise software products and services

We believe the existing market for independent enterprise software support services is underserved. We currently provide support services for IBM, Microsoft, SAP, Oracle and other enterprise software vendors’ products. We also believe the existing market for our other enterprise software products and services is underserved, and that we have unique products and services that can meet client needs in the marketplace. For example, we provide the Rimini Street Advanced Database Security product in partnership with McAfee, a global leader in cybersecurity.

We also believe that our total addressable market for our enterprise software products and services is substantially larger than our current client base and the products and services we currently offer. As a result, we believe we have the opportunity to expand our global client base and to further increase adoption of our software products and services within and across existing clients. However, as the market for independent enterprise software support services as well as our other software products and services is still emerging, it is difficult for us to predict the timing of when and if widespread acceptance will occur.

Sales cycle

We sell our services to our clients primarily through our direct sales organization. Our sales cycle, depending on the product or service, typically ranges from six months to a year from when a prospective client is engaged. While we believe that there is a significant market opportunity for our enterprise software products and services, we often must educate prospective clients about the value of our products and services, which can result in lengthy sales cycles, particularly for larger prospective clients, as well as the incurrence of significant marketing expenses. Our typical sales cycle with a prospective client begins with the generation of a sales lead through trade shows, industry events, online marketing, media interviews and articles, inbound calls, outbound calls or client, analyst or other referral. The sales lead is followed by an assessment of the prospect’s current software license contract terms, systems environment, products and releases being used, needs and objectives.

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The variability in our sales cycle for replacement or supplemental software support services is impacted by whether software vendors are able to convince potential clients that they should renew their software maintenance with the existing vendor or procure or renew supplemental support services from the existing vendor, respectively. Another driver of our sales cycle variability is any announcement by a software vendor of their discontinuation, reduction or limitation of support services for a particular software product or release for which we continue to offer a competing support service. In addition, our litigation with Oracle can also drive sales cycle variability as clients oftentimes perform their own legal due diligence, which can lengthen the sales cycle.

Key Components of Consolidated Statements of Operations

Net Revenue. We derive nearly all our revenue from subscription-based contracts for software services. Revenue from these contracts are recognized ratably on a straight-line basis over the applicable service period.

Cost of revenue. Cost of revenue includes salaries, benefits and stock - based compensation expenses associated with our technical support and services organization, as well as allocated overhead and non - personnel expenses such as outside services, professional fees and travel - related expenses. Allocated overhead includes overhead costs for depreciation of equipment, facilities (consisting of leasehold improvements and rent) and technical operations (including costs for compensation of our personnel and costs associated with our infrastructure). We recognize expenses related to our technical support and services organization as they are incurred.

Sales and marketing expenses. Sales and marketing expenses consist primarily of personnel costs for our sales, marketing and business development employees and executives, including commissions earned by our sales and marketing personnel, which are expensed when a client contract is executed. We also incur other non - personnel expenses, such as outside services, professional fees, marketing programs, travel - related expenses, allocation of our general overhead expenses and the expenses associated with several key industry trade shows.

General and administrative expenses. General and administrative expenses consist primarily of personnel costs for our administrative, legal, human resources, finance and accounting employees and executives. These expenses also include non - employee expenses, such as travel - related expenses, outside services, legal, auditing and other professional fees, and general corporate expenses, along with an allocation of our general overhead expenses.

Litigation costs and related insurance recoveries. Litigation costs consist of legal settlements, pre - judgment interest, professional fees to defend against litigation claims. In the past, we have had liability insurance policies where a portion of our defense costs and litigation settlements have been reimbursed under the terms of the policies. Such insurance recoveries are reflected as a reduction of litigation costs.

Interest expense. Interest expense is incurred under our credit facilities and other debt obligations. The components of interest expense include the amount of interest payable in cash at the stated interest rate, interest that is payable in kind through additional borrowings, and accretion of debt discounts and issuance costs using the effective interest method.

Debt financing fees. Debt financing fees are incurred pursuant to the Credit Facility. The components of debt financing fees include collateral monitoring fees, unused line fees required to ensure our availability to funding, amortization of debt issuance costs related to the unfunded portions of the Credit Facility, and fees charged for administrative agent and loan servicing fees.

Loss on embedded derivatives and redeemable warrants, net. The Credit Facility contains features referred to as embedded derivatives, that are required to be bifurcated and recorded at fair value. Embedded derivatives include requirements to pay default interest upon the existence of an event of default, and to pay “make-whole” interest for certain mandatory and voluntary prepayments of the outstanding principal balance under the Credit Facility. We also have warrants outstanding that are redeemable in cash at the option of the holders at the earliest to occur of (i) termination of the Credit Facility, (ii) a change of control, or (iii) 30 days prior to the stated expiration date of the Lender warrants. Due to the existence of the cash redemption feature, the warrants are recorded as a liability at fair value. We engage an independent valuation specialist to perform valuations of the embedded derivatives and redeemable warrants on a quarterly basis. Changes in the fair value of embedded derivatives and redeemable warrants are reflected as a non - operating gain or loss in our consolidated statements of operations.

Other income (expense), net. Other income (expense), net consists primarily of gains or losses on foreign currency transactions and income earned on temporary cash investments.

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Income tax expense. The provision for income taxes is based on the amount of our taxable income and enacted federal, state and foreign tax rates, as adjusted for allowable credits and deductions. Our provision for income taxes consists only of foreign taxes for the periods presented as we had no taxable income for U.S. federal or state purposes. In addition, because of Rimini Street’s lack of domestic earnings history and U.S. federal tax net operating losses, the domestic net deferred tax assets have been fully offset by a valuation allowance, and therefore, no tax benefit has been recognized.

Results of Operations

Our condensed consolidated statements of operations for the years ended December 31, 2014, 2015 and 2016, and for the three months ended March 31, 2016 and 2017, are presented below:

 
Year Ended December 31,
Three Months Ended
March 31,
(unaudited)
 
2014
2015
2016
2016
2017
 
(in thousands)
Consolidated Statement of Operations Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net revenue
$
85,348
 
$
118,163
 
$
160,175
 
$
34,678
 
$
49,070
 
Cost of revenue
 
45,258
 
 
52,766
 
 
67,045
 
 
14,570
 
 
18,356
 
Gross profit
 
40,090
 
 
65,397
 
 
93,130
 
 
20,108
 
 
30,714
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales and marketing
 
37,509
 
 
50,330
 
 
72,936
 
 
15,538
 
 
14,696
 
General and administrative
 
19,270
 
 
24,220
 
 
36,212
 
 
6,635
 
 
9,276
 
Litigation costs, net of insurance recoveries
 
103,266
 
 
32,732
 
 
(29,949
)
 
5,379
 
 
3,945
 
Write-off of deferred offering costs
 
5,307
 
 
 
 
 
 
 
 
 
Total operating expenses
 
165,352
 
 
107,282
 
 
79,199
 
 
27,552
 
 
27,917
 
Operating income (loss)
 
(125,262
)
 
(41,885
)
 
13,931
 
 
(7,444
)
 
2,797
 
Interest expense
 
(742
)
 
(829
)
 
(13,356
)
 
(211
)
 
(9,936
)
Debt financing fees
 
 
 
 
 
(6,371
)
 
 
 
(1,282
)
Loss on embedded derivatives and redeemable warrants, net
 
 
 
 
 
(3,822
)
 
 
 
(5,702
)
Other income (expense), net
 
(843
)
 
(1,104
)
 
(1,787
)
 
(75
)
 
89
 
Loss before income taxes
 
(126,847
)
 
(43,818
)
 
(11,405
)
 
(7,730
)
 
(14,034
)
Income tax expense
 
(981
)
 
(1,451
)
 
(1,532
)
 
(267
)
 
(441
)
Net loss
$
(127,828
)
$
(45,269
)
$
(12,937
)
$
(7,997
)
$
(14,475
)

Comparison of Three Months Ended March 31, 2016 and 2017

Net revenue. Net revenue increased from $34.7 million for the three months ended March 31, 2016 to $49.1 million for the three months ended March 31, 2017, an increase of $14.4 million or 42%. This increase was primarily driven by a 46% increase in the average number of clients. On a regional basis, United States net revenue grew from $22.9 million to $32.6 million, an increase of $9.7 million or 42%, while international net revenue grew from $11.8 million to $16.5 million, an increase of $4.7 million or 40%.

Cost of revenue. Cost of revenue increased from $14.6 million for the three months ended March 31, 2016 to $18.4 million for the three months ended March 31, 2017, an increase of $3.8 million or 26%. This increase was primarily due to an increase in employee compensation and related costs of $2.6 million as a result of an average service delivery headcount increase of 34%, and an increase in contract labor costs of $1.0 million to support the increasing number of clients. In addition, the shared support services costs grew at a lower rate than the increase in clients and net revenue as the support provided by these functions was spread out over a wider client base.

Gross profit. Gross profit increased from $20.1 million for the three months ended March 31, 2016 to $30.7 million for the three months ended March 31, 2017, an increase of $10.6 million or 53%. Gross profit percentage increased from 58% for the three months ended March 31, 2016 to 63% for the three months ended March

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31, 2017. The increase in gross profit was primarily due to an increase in net revenue as a result of client growth and optimization within the shared services support organization, partially offset by an increase in headcount and contract labor costs to support the increase in the number of clients.

Sales and marketing expenses. Sales and marketing expenses decreased from $15.5 million for the three months ended March 31, 2016 to $14.7 million for the three months ended March 31, 2017, a decrease of $0.8 million or 5%. This decrease was primarily due to the cancellation of our annual sales meeting, which resulted in decreased expenses of $1.6 million. In addition, a reduction in advertising costs of $0.2 million, contract labor costs of $0.2 million, and recruitment costs of $0.2 million also contributed to the decrease. The decrease also reflects the requirement to adhere to a sales and marketing spending ratio covenant included in our Credit Facility. These decreases were partially offset by an increase in employee compensation and related costs of $1.1 million due to an 18% increase in average sales and marketing personnel headcount.

General and administrative expenses. General and administrative expenses increased from $6.6 million for the three months ended March 31, 2016 to $9.3 million for the three months ended March 31, 2017, an increase of $2.7 million or 41%. This increase was primarily due to an increase in employee and related compensation costs of $0.8 million as a result of an increase in average general and administrative personnel headcount of 21% as we continued to support our growth and prepare to transition to become a public company, external audit service costs of $1.2 million, consulting costs of $0.2 million, and contract labor costs of $0.3 million in support of discovery services related to our litigation (Rimini II) with Oracle.

We expect to incur incremental expenses associated with supporting the growth of our business, both in terms of size and geographical diversity, and to meet the increased compliance requirements associated with our transition to a public company. In addition, we will begin to incur additional expenses associated with being a public company after completion of the merger. Those expenses include additional information systems costs, costs for additional personnel in our accounting, human resources, IT and legal functions, and incremental professional, legal, audit and insurance costs. As a result, we expect our general and administrative expenses to increase in future periods.

Litigation costs, net of related insurance recoveries. Litigation costs, net of related insurance recoveries for the three months ended March 31, 2016 and 2017, consist of the following:

 
2016
2017
Change
 
(in thousands)
Pre-judgment interest
$
891
 
$
 
$
(891
)
Professional fees and other defense costs of litigation
 
5,477
 
 
4,971
 
 
(506
)
Insurance recoveries
 
(989
)
 
(1,026
)
 
(37
)
Litigation costs, net of related insurance recoveries
$
5,379
 
$
3,945
 
$
(1,434
)

Professional fees and other defense costs associated with litigation decreased from $5.5 million for the three months ended March 31, 2016 to $5.0 million in the three months ended March 31, 2017, a decrease of $0.5 million or 9%. Such costs in 2016 reflected incremental legal activity that occurred in Q1 2016 after the 2015 jury verdict in the “Rimini I” case. For the comparable period in 2017, we incurred professional fees related to ongoing litigation with Oracle that we refer to as “Rimini II” along with our appeal of the Rimini I judgment. Total insurance reimbursements received were $1.0 million during both three-month periods. Since 2010, we have been actively engaged in the Rimini I litigation with Oracle. With respect to the judgment award of $124.4 million to Oracle in October 2016 for the Rimini I litigation, we accrued pre-judgment interest through October 2016 of $3.0 million, for which we recognized $0.9 million as the portion that related to the three months ended March 31, 2016. We currently expect to continue to incur legal expenses related to the Rimini I appeal through early 2018 while the Rimini II litigation costs are expected to continue through 2020 or 2021. Litigation costs related to these matters are currently expected to range between $2.0 and $5.0 million per quarter, at least through the Rimini II trial date that is expected to occur in 2020 or 2021. In March 2017, we entered into a settlement agreement with an insurance company that had been providing defense cost coverage related to Rimini II. Pursuant to the settlement, we received a one-time payment of $19.3 million in April 2017. The $19.3 million settlement proceeds are being accounted for as a deferred liability that will be reduced as legal expenses are incurred in the future. Accordingly, we will be required to pay the gross amount of legal defense costs even though the amount charged to expense will be net of the impact of future reductions of the deferred liability.

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Interest expense. Interest expense increased from $0.2 million for the three months ended March 31, 2016 to $9.9 million for the three months ended March 31, 2017, an increase of $9.7 million. The significant increase in interest expense resulted from the $125.0 million Credit Facility entered in June 2016. For the three months ended March 31, 2017, interest expense under the Credit Facility consisted of (i) interest payable in cash at an annual rate of 12.0% for a total of $3.2 million, (ii) interest payable in kind at an annual rate of 3.0% for a total of $0.8 million, and (iii) accretion at an annual rate of 25.9% that resulted in accretion expense of $5.9 million associated with total discount costs of $92.5 million as of March 31, 2017. Due to principal prepayments during the second quarter of 2017, we expect a pro rata portion of the debt discounts will be charged to expense during the second quarter of 2017.

Debt financing fees. No debt financing fees were incurred for the three months ended March 31, 2016. Debt financing fees of $1.3 million for the three months ended March 31, 2017 were attributable to the Credit Facility entered in June 2016. For the three months ended March 31, 2017, debt financing fees consisted of (i) collateral monitoring fees at the rate of 2.5% of outstanding borrowings for a total of $0.7 million, (ii) unused line fees at 5.0% of undrawn borrowings of $17.5 million, for a total of $0.2 million, (iii) amortization of $0.3 million related to $4.4 million of debt issuance costs associated with the undrawn portion of the Credit Facility, and (iv) amortization of prepaid agent fees of $0.1 million. We expect the collateral monitoring fees will decrease during the remainder of the year ending December 31, 2017 due to a reduction in outstanding borrowings.

Loss on embedded derivatives and redeemable warrants, net. We did not have any embedded derivatives or redeemable warrants outstanding for the three months ended March 31, 2016. Our June 2016 Credit Facility includes embedded derivatives requiring bifurcation and accounting as separate financial instruments. The requirements to pay default interest at 2.0% during the existence of an event of default, and “make-whole” interest payments for certain principal prepayments as defined in the Credit Facility, are examples of embedded derivatives required to be bifurcated and reported at fair value. Make-whole interest payments are computed as set forth in the Credit Facility primarily based on the 15.0% per annum stated rate, and are required for certain prepayments prior to June 2019. As of December 31, 2016, the fair value of embedded derivatives was $5.4 million and this amount increased to $10.5 million as of March 31, 2017, resulting in the recognition of an expense of $5.1 million for the three months ended March 31, 2017. The increase in the fair value of embedded derivatives was driven by an insurance settlement that resulted in net insurance proceeds of $18.7 million in April 2017, which were required to be applied under the Credit Facility to prepay principal of $14.1 million along with a make-whole interest payment of $4.6 million. The likelihood of the insurance settlement was not considered in the valuation of the embedded derivatives as of December 31, 2016 but resulted in a significant increase for the calculation of fair value as of March 31, 2017.

In connection with our June 2016 Credit Facility, we issued redeemable warrants to the Origination Agent for 11.1 million shares of our Class A common stock. Due to an anti-dilution provision in the original warrant agreement, in October 2016 we issued a warrant for an additional 3.0 million shares resulting in outstanding warrants for 14.1 million shares as of December 31, 2016 and March 31, 2017. These warrants had an estimated fair value of $7.3 million as of December 31, 2016 and $7.9 million as of March 31, 2017. For the three months ended March 31, 2017, we incurred a loss of $0.6 million due to the change in fair value of the redeemable warrants.

Other income (expense), net. For the three months ended March 31, 2016, we had net other expense of $0.1 million as compared to the three months ended March 31, 2017 when we had net other income of $0.1 million. The change of $0.2 million for the three months ended March 31, 2017 was primarily attributable to an increase in foreign exchange gains.

Comparison of Years ended December 31, 2015 and 2016

Net revenue. Net revenue increased from $118.2 million for the year ended December 31, 2015 to $160.2 million for the year ended December 31, 2016, an increase of $42.0 million or 36%. This increase was primarily driven by a 34% increase in the average number of clients. On a regional basis, United States net revenue grew from $82.8 million to $110.7 million, an increase of $27.9 million or 34%, while international net revenue grew from $35.4 million to $49.5 million, an increase of $14.1 million or 40%. Accelerated growth in our international business was driven by an increase in sales headcount primarily in Asia and Europe and an increase in marketing and advertising spend targeted for prospective clients outside the United States.

Cost of revenue. Total cost of revenue increased from $52.8 million for the year ended December 31, 2015 to $67.0 million for the year ended December 31, 2016, an increase of $14.2 million or 27%. This increase was primarily due to additional support for the increasing number of clients that resulted in an increase in employee compensation and related costs of $10.5 million as a result of an increase in average service delivery headcount of

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34%, an increase in IT, facilities and security cost allocations of $2.4 million, an increase in contract labor costs of $1.6 million and an increase of $0.2 million in outside services. The costs of both direct product support and shared services grew at a lower rate than the increase in clients and net revenue as the support provided by these functions was spread over a wider client base.

Gross profit. Gross profit increased from $65.4 million for the year ended December 31, 2015 to $93.1 million for the year ended December 31, 2016, an increase of $27.7 million or 42%. Gross profit percentage increased from 55% for the year ended December 31, 2015 to 58% for the year ended December 31, 2016. The increase in gross profit was primarily due to an increase in net revenue as a result of the increase in the number of clients and efficiency gains within the shared services support organization partially offset by a rise in headcount and contract labor costs.

Sales and marketing expenses. Sales and marketing expenses increased from $50.3 million for the year ended December 31, 2015 to $72.9 million for the year ended December 31, 2016, an increase of $22.6 million or 45%. This increase was primarily due to a $16.1 million increase in employee and related compensation costs as a result of a 35% increase in average headcount, a $2.2 million increase in marketing and advertising costs, a $1.6 million increase in travel costs, a $1.1 million increase in contract labor and consulting costs as we continued to increase our investment in building brand awareness and supporting net revenue growth.

General and administrative expenses. General and administrative expenses increased from $24.2 million for the year ended December 31, 2015 to $36.2 million for the year ended December 31, 2016, an increase of $12.0 million or 49%. This increase was primarily due to an increase in average headcount of 26% resulting in an increase in employee and related compensation costs of $6.5 million, an increase in outside professional service costs of $3.5 million, an increase in sales and other taxes of $1.9 million, and an increase in contract labor costs related to Rimini II discovery of $0.6 million, partially offset by higher general and administrative allocations out to other departments of $2.9 million.

Litigation costs, net of related insurance recoveries. Litigation costs, net of related insurance recoveries for the years ended December 31, 2015 and 2016, consist of the following:

 
2015
2016
Change
 
(in thousands)
Litigation settlement and pre-judgment interest
$
21,411
 
$
2,920
 
$
(18,491
)
Professional fees and other defense costs of litigation
 
17,140
 
 
21,379
 
 
4,239
 
Insurance recoveries
 
(5,819
)
 
(54,248
)
 
(48,429
)
Litigation costs, net of related insurance recoveries
$
32,732
 
$
(29,949
)
$
(62,681
)

Professional fees and other defense costs associated with litigation increased from $17.1 million for the year ended December 31, 2015 to $21.4 million for the year ended December 31, 2016, an increase of $4.3 million or 24%. This increase was due to appeals and additional litigation motions following the jury verdict in October 2015 for the Rimini I case and the increase of costs associated with the Rimini II case. Total insurance recoveries for professional fees and other defense costs also increased from $5.8 million for the year ended December 31, 2015 to $54.2 million for the year ended December 31, 2016, of which $12.5 million related to the reimbursement of professional fees while $41.7 million was reimbursement for insurance recoveries related to the judgment in 2016. The insurance recoveries for professional service fees increased in 2016 due to the higher level of such costs when compared to 2015. The Rimini I litigation had been ongoing from 2010 until October 2016 when the court ordered a judgment award of $124.4 million to Oracle. We recognized $100.0 million of the judgment award as a loss for the year ended December 31, 2014, $21.4 million for the year ended December 31, 2015, and the remainder of $2.9 million was comprised of pre-judgment interest for the year ended December 31, 2016.

Interest expense. Interest expense increased from $0.8 million for the year ended December 31, 2015 to $13.4 million for the year ended December 31, 2016, an increase of $12.6 million. The significant increase in interest expense resulted from the $125.0 million Credit Facility that we entered into in June 2016. For the year ended December 31, 2016, interest expense under the Credit Facility consisted of (i) interest payable in cash at an annual rate of 12.0% for a total of $3.6 million, (ii) interest payable in kind at an annual rate of 3.0% for a total of $0.9 million, and (iii) accretion expense of $8.4 million associated with total discount costs of $90.5 million and an annual accretion rate of 25.5% as of December 31, 2016, partially offset by a decrease in interest expense of $0.3 million on our previous line of credit that was fully paid off in June 2016.

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Debt financing fees. No debt financing fees were incurred for the year ended December 31, 2015. Debt financing fees of $6.4 million for the year ended December 31, 2016 were attributable to the Credit Facility entered in June 2016. For the year ended December 31, 2016, debt financing fees consisted of (i) unused line fees at 15.0% for $65.0 million of undrawn borrowings for the period from June 24, 2016 through October 2016, and 5.0% for $17.5 million of undrawn borrowings for the period from June 24, 2016 through December 31, 2016, for a total of $4.1 million, (ii) collateral monitoring fees of 0.5% of outstanding borrowings through October 2016, and 2.5% of outstanding borrowings for the last two months of the year ended December 31, 2016, for a total of $0.5 million, (iii) amortization of $1.5 million related to debt issuance costs associated with the undrawn portions of the Credit Facility during the year ended December 31, 2016, and (iv) amortization of prepaid agent fees of $0.3 million. We expect the unused line fees will decrease during the year ending December 31, 2017 due to additional borrowings of $77.5 million in October 2016.

Loss on embedded derivatives and redeemable warrants, net. We did not have any embedded derivatives or redeemable warrants outstanding for the year ended December 31, 2015. Our June 2016 Credit Facility includes embedded derivatives requiring bifurcation and accounting as separate financial instruments. The requirements to pay default interest at 2.0% during the existence of an event of default, and “make-whole” interest payments for certain principal prepayments as defined in the Credit Facility, are examples of embedded derivatives required to be bifurcated and reported at fair value. Make-whole interest payments are computed as set forth in the Credit Facility primarily based on the 15.0% per annum stated rate, and are required for certain prepayments prior to June 2019. As of December 31, 2016, the fair value of embedded derivatives was $5.4 million resulting in the recognition of an expense of $5.4 million for the year ended December 31, 2016. The requirement to incur make-whole interest payments are the most significant factor in the valuation of our embedded derivatives.

In connection with our June 2016 Credit Facility, we issued redeemable warrants to the Origination Agent for 11.1 million shares of our Class A common stock. These warrants had an estimated fair value of $8.8 million upon issuance and were treated as a debt issuance cost associated with the Credit Facility. Due to an anti-dilution provision in the original warrant agreement, in October 2016 we issued warrants for an additional 3.0 million shares of our Class A common stock with an estimated fair value of $1.5 million that was charged to expense. For the year ended December 31, 2016, we recognized a gain of $3.1 million due to changes in the fair value of the warrants between the issuance date and December 31, 2016.

Other expense, net. For the year ended December 31, 2015, we had other expense, net of $1.1 million as compared to $1.8 million for the year ended December 31, 2016, an increase of $0.7 million. The increase in other expense, net was primarily attributable to an increase in foreign exchange transaction losses.

Comparison of Years Ended December 31, 2014 and 2015

Net revenue. Net revenue increased from $85.3 million for the year ended December 31, 2014 to $118.2 million for the year ended December 31, 2015, an increase of $32.9 million or 38%. This increase was primarily driven by a 29% increase in the average number of clients, and an 8% increase in the average net revenue per client. On a regional basis, our United States net revenue grew from $62.3 million to $82.8 million, an increase of $20.5 million or 33%, while international net revenue grew from $23.1 million to $35.4 million, an increase of $12.3 million or 53%.

Cost of revenue. Cost of revenue increased from $45.3 million for the year ended December 31, 2014 to $52.8 million for the year ended December 31, 2015, an increase of $7.5 million or 17%. This increase was primarily due to an increase in employee and related compensation costs of $5.0 million as a result of an average service delivery headcount increase of 33%, allocation of shared costs such as rent, security and technology support of $1.3 million, travel and related costs of $1.0 million, recruitment costs of $0.7 million, and contract labor costs of $0.4 million, partially offset by lower software license costs of $1.0 million. The costs of both direct product support and shared services grew at a lower rate than the increase in clients and net revenue as the support provided by these functions was spread over a wider client base.

Gross profit. Gross profit increased from $40.1 million for the year ended December 31, 2014 to $65.4 million for the year ended December 31, 2015, an increase of $25.3 million or 63%. Gross profit percentage increased from 47% for the year ended December 31, 2014 to 55% for the year ended December 31, 2015. The increase in gross profit was primarily due to increase in net revenue as a result of the increase in the number of clients and optimization within the shared services support organization partially offset by an increase in employee, contract labor, and travel costs.

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Sales and marketing expenses. Sales and marketing expenses increased from $37.5 million for the year ended December 31, 2014 to $50.3 million for the year ended December 31, 2015, an increase of $12.8 million or 34%. This increase was primarily due to an increase in employee and related costs of $7.8 million as a result of an increase in average headcount of 37%, allocation of shared costs such as security, information technology and facilities of $2.0 million, advertising and marketing costs of $1.0 million, travel and related costs of $1.3 million, recruitment costs of $0.5 million, and contract labor and consulting costs of $0.2 million, as an effort to increase our investment in building brand awareness and client growth.

General and administrative expenses. General and administrative expenses increased from $19.3 million for the year ended December 31, 2014 to $24.2 million for the year ended December 31, 2015, an increase of $4.9 million or 26%. This increase was primarily due to an increase in average headcount of 39% resulting in an increase of compensation and related costs of $3.4 million, contract labor costs of $0.3 million, recruitment costs of $0.5 million, traveling and related costs of $0.5 million, and software license fees of $0.5 million as we continued to invest in revenue, infrastructure and geographic growth. These increases were partially offset by a reduction in external audit and accounting costs of $0.5 million due to our deferral of an initial public offering in the third quarter of 2014.

Litigation costs, net of related insurance recoveries. Litigation costs, net of related insurance recoveries for the years ended December 31, 2014 and 2015, consist of the following:

 
2014
2015
Change
 
(in thousands)
Litigation settlement and pre-judgment interest
$
100,000
 
$
21,411
 
$
(78,589
)
Professional fees and other defense costs of litigation
 
3,266
 
 
17,140
 
 
13,874
 
Insurance recoveries
 
 
 
(5,819
)
 
(5,819
)
Litigation costs, net of related insurance recoveries
$
103,226
 
$
32,732
 
$
(70,534
)

Professional fees and other defense costs associated with litigation increased from $3.3 million for the year ended December 31, 2014 to $17.1 million for the year ended December 31, 2015, an increase of $13.8 million. Total insurance recoveries for professional fees and other defense costs were $5.8 million for the year ended December 31, 2015, whereas no insurance recoveries were received in 2014. Such costs and the related insurance recoveries increased in 2015 due to the higher level of activity as we approached the September 2015 trial date for Rimini I. As discussed above, in October 2016 the court ordered a judgment award of $124.4 million to Oracle. In order to reflect an offer made to Oracle to settle the litigation prior to the issuance of our 2014 financial statements, we recognized $100.0 million of the judgment award as a loss for the year ended December 31, 2014. The remainder of the judgement award was recognized for $21.4 million for the year ended December 31, 2015, and $3.0 million of pre-judgment interest was recognized for the year ended December 31, 2016.

Write-off of deferred offering costs. During the third quarter of 2014, we determined that proceeding with an initial public offering under then-current market and business conditions was not in the best interests of our stockholders. Accordingly, total costs incurred through the third quarter of 2014 of $5.3 million were recorded as an expense and charged to operating expenses.

Interest expense. Interest expense increased from $0.7 million for the year ended December 31, 2014 to $0.8 million for the year ended December 31, 2015, an increase of $0.1 million. The increase in interest expense was primarily due to higher borrowings under our prior line of credit.

Other expense, net. For the year ended December 31, 2014, we had other expense, net of $0.8 million as compared to $1.1 million for the year ended December 31, 2015, an increase of $0.3 million or 38%. This increase in other expense, net was primarily attributable to an increase in foreign exchange transaction losses.

Non-GAAP Financial Measures

We define EBITDA as net income (loss), as determined under U.S. GAAP, plus interest expense, income taxes, depreciation and amortization expense. We define Adjusted EBITDA as EBITDA plus debt financing fees, stock-based compensation expense, write-off of deferred offering costs and debt issuance costs, losses on embedded derivatives and redeemable warrants, and litigation costs; and by subtracting gains on embedded derivatives and redeemable warrants, and insurance recoveries related to litigation. These further adjustments eliminate the impact of items that we do not consider indicative of our core operating performance. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to many of

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the adjustments in this presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

We present EBITDA and Adjusted EBITDA because we believe they assist investors in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. EBITDA and Adjusted EBITDA have limitations as an analytical tool. Some of these limitations are:

EBITDA and Adjusted EBITDA do not reflect our cash expenditures, or future requirements for capital expenditures, contractual commitments or working capital needs;
EBITDA and Adjusted EBITDA do not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debts;
although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and EBITDA and Adjusted EBITDA do not reflect any cash requirements for such replacements;
Adjusted EBITDA excludes expenses under our stock-based compensation arrangements and gains and losses on embedded derivatives and redeemable warrants. While these are non-cash gains and losses, their exclusion ignores the significant dilutive impact to our common stockholders as represented by the underlying transactions that gave rise to these excluded gains and losses;
EBITDA and Adjusted EBITDA do not reflect the impact of certain cash charges such as litigation settlements and related defense costs resulting from matters we consider not to be indicative of our ongoing operations; and
other companies in our industry may calculate EBITDA and Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

We seek to address these limitations by considering the economic effect of the excluded expense items independently as well as collectively in connection with our analysis of net income (loss). EBITDA and Adjusted EBITDA should be considered in addition to, but not as a substitute for, any measure of financial performance reported in accordance with U.S. GAAP, such as net revenue, operating income (loss), and net income (loss).

The following table presents a reconciliation of our net loss to EBITDA and Adjusted EBITDA:

 
Year Ended December 31,
Three Months Ended
March 31,
 
2014
2015
2016
2016
2017
 
(in thousands)
Net loss
$
(127,828
)
$
(45,269
)
$
(12,937
)
$
(7,997
)
$
(14,475
)
Interest expense
 
742
 
 
829
 
 
13,356
 
 
211
 
 
9,936
 
Income tax expense
 
981
 
 
1,451
 
 
1,532
 
 
267
 
 
441
 
Depreciation and amortization expense
 
1,899
 
 
1,451
 
 
1,783
 
 
425
 
 
476
 
EBITDA
 
(124,206
)
 
(41,538
)
 
3,734
 
 
(7,094
)
 
(3,622
)
Litigation costs, net of insurance recoveries
 
103,266
 
 
32,732
 
 
(29,949
)
 
5,379
 
 
3,945
 
Write-off of deferred offering costs
 
5,307
 
 
 
 
 
 
 
 
 
Write-off of debt issuance costs
 
138
 
 
 
 
 
 
 
 
 
Debt financing fees
 
 
 
 
 
6,371
 
 
 
 
1,282
 
Loss on embedded derivatives and redeemable warrants, net
 
 
 
 
 
3,822
 
 
 
 
5,702
 
Stock-based compensation
 
2,080
 
 
2,272
 
 
2,297
 
 
617
 
 
361
 
Adjusted EBITDA
$
(13,415
)
$
(6,534
)
$
(13,725
)
$
(1,098
)
$
7,668
 

Liquidity and Capital Resources

As of March 31, 2017, we have a working capital deficit of $155.8 million and an accumulated deficit of $265.6 million. We incurred a net loss of $12.9 million for the year ended December 31, 2016 and a net loss of $14.5 million for the three months ended March 31, 2017.

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Our foreign subsidiaries and branches are dependent on our U.S.-based parent for continued funding. We do not intend to repatriate any amounts that have been invested overseas back to the U.S.-based parent. Should any funds from our foreign subsidiaries be repatriated in the future, we believe we would not need to accrue and pay taxes on the amounts repatriated due to the significant amount of tax net operating loss carryforwards we have available to offset such income taxes. As of March 31, 2017, we had cash and cash equivalents of $8.6 million in our foreign subsidiaries.

In June 2016, we entered into a multi-draw term loan Financing Agreement (the “Credit Facility”) with a syndicate of lenders (the “lenders”). The Credit Facility provides for an aggregate commitment of up to $125.0 million, which consisted of an initial term loan of $30.0 million to repay our then existing line of credit. At inception, the Credit Facility was structured to fund required payments to settle the judgment in the Oracle litigation (Rimini I) and to accelerate our next phase of growth and product portfolio expansion. In October 2016, we determined that the amount of borrowings required to fully settle Rimini I exceeded the limitation set forth in the Credit Facility which prevented us from being able to gain access to further borrowings under the Credit Facility. In October 2016, we entered into an amendment to the Credit Facility (the “Second Amendment”) with the lenders under the Credit Facility that enabled us to borrow an additional $77.5 million in term loans, bringing total borrowings under the Credit Facility to $107.5 million ($17.5 million remains undrawn but may be borrowed only with the consent of the Origination Agent (as defined below)). The Second Amendment imposed additional mandatory prepayments in connection with Excess Cash Flow and Customer Prepayments (as defined in the Credit Facility).

From November 2016 through April 2017, we had made expenditures that exceeded certain budgetary compliance covenants set forth in the Credit Facility. We entered into a third amendment (the “Third Amendment”) to the Credit Facility in May 2017, whereby the previously violated covenants were made less restrictive for past and future compliance such that we are currently in compliance with all covenants. Other changes provided for in the Third Amendment included (i) extensions for deadlines to deliver audited financial statements and to consummate equity issuances resulting in net proceeds of at least $35.0 million to August 31, 2017, (ii) the making of a principal payment in May 2017 of $6.5 million, including satisfying the 75% of Excess Cash Flow payment of $4.0 million for the first quarter of 2017 and an additional principal payment of $2.5 million, and (iii) contractual principal amortization payments for April and May 2017 were increased by an aggregate of $2.5 million with one-half paid in May 2017 and the other half paid in June 2017.

In May 2017, we entered into a fourth amendment to the Credit Facility, whereby the covenants related to costs that may be incurred for an initial public offering were revised. In June 2017, we entered into a fifth amendment (the “Fifth Amendment”) to the Credit Facility whereby the deadline was extended from August 31, 2017 until November 30, 2018 to consummate equity issuances for a minimum of $35.0 million, as discussed below. Additionally, certain changes were made to the financial covenants whereby we expect to be able to remain in compliance with such covenants. In connection with the Fifth Amendment, we incurred an amendment fee equal to 1.0% of the $125.0 million commitment under the Credit Facility, and agreed to pay certain “target date” fees if (i) the filing date for the Form S-4 registration statement discussed below occurs after June 30, 2017, and (ii) the consummation of the merger discussed below occurs after August 31, 2017. If these target dates are not achieved, additional fees of 1.0% of the $125.0 million commitment will be required as of the designated target date and will continue to be incurred for each subsequent calendar month that the delays continue. The amendment fee is payable in cash upon the earlier of receipt of the equity issuance proceeds discussed above, and March 31, 2018. The target date fees are payable in cash upon the earlier of (i) receipt of the equity issuance proceeds discussed above, (ii) the maturity date, and (iii) the termination date of the Credit Facility. For additional information about the Credit Facility, please refer to Notes 5 and 12 to our consolidated financial statements for the year ended December 31, 2016 included elsewhere in this joint proxy statement/prospectus.

An origination fee equal to 5.0% of the $125.0 million commitment was paid in cash to the lenders under the Credit Facility from the proceeds of the initial term loan and a $10.0 million fee was paid in cash to the lenders under the Credit Facility in connection with the Second Amendment. The Credit Facility also provides for an Original Issue Discount of 2.0% of the initial face amount of the loans and all future loans.

Outstanding term loans under the Credit Facility mature in June 2020, and require monthly interest payments of 15.0% per annum, consisting of 12.0% per annum that is payable in cash and 3.0% per annum that is capitalized and added to the then outstanding principal of the term loans (referred to as paid-in-kind, or “PIK” interest). We were also required to pay unused line fees and we remain obligated to pay an unused line fee of 5.0% per annum on the

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currently unfunded portion of the Credit Facility which expires in June 2020, subject to early termination events. We are also currently subject to collateral monitoring fees at the per annum rate of 2.5% of the outstanding principal amounts of the term loans. Beginning in 2017 through maturity of the term loans, the Credit Facility requires additional quarterly mandatory principal prepayments of the term loans equal to 75% of the calculated Excess Cash Flow for the previous fiscal quarter. In connection with the Third Amendment to the Credit Facility, we made a principal prepayment of $6.5 million in May 2017, including satisfying the 75% of Excess Cash Flow mandatory prepayment of $4.0 million for the first quarter of 2017 and an additional principal prepayment of $2.5 million.

Pursuant to a consulting agreement entered into concurrently with the Credit Facility, certain payments to an affiliate of one of the lenders (the “Origination Agent”), are required upon the occurrence of a trigger event, which is defined as the earliest of (i) the debt maturity date of June 2020, (ii) the first date on which all the obligations under the Credit Facility are repaid in full and the commitments of the lenders under the Credit Facility are terminated, (iii) the acceleration of the obligations under the Credit Facility in the event of a default, (iv) initiation of any insolvency proceeding, foreclosure or deed in lieu of foreclosure, and (v) the termination of the Credit Facility for any reason (collectively referred to as a “Trigger Event”). Upon a Trigger Event, we will be required to pay (i) a commitment exit fee in an amount equal to $9.6 million at inception of the Credit Facility, (ii) a continuing origination agent service fee in an amount equal to $19.7 million at inception of the Credit Facility, (iii) a consulting exit fee of $14.0 million, and (iv) a foreign withholding tax fee up to $2.0 million. The commitment exit fee and origination agent service fee are calculated based on a percentage of annualized quarterly revenue as defined in the Credit Facility. Due to increases in our net revenue, the aggregate Trigger Event fees have increased from $45.3 million at inception of the Credit Facility in June 2016 to $57.2 million as of March 31, 2017.

As of March 31, 2017, the aggregate fees accounted for as discounts and issuance costs (collectively, “DIC”) related to the $107.5 million funded portion of the Credit Facility amounts to $92.5 million, and DIC associated with the $17.5 million unfunded portion of the Credit amounted to $4.4 million. DIC related to the funded debt is accreted to interest expense using the effective interest method, and DIC related to unfunded debt is being amortized using the straight-line method over the term of the Credit Facility. Presented below is a summary of activity related to the funded debt for the three months ended March 31, 2017 (in thousands):

 
December 31,
2016
PIK
Accrual
Amendment
Costs
Liability
Adjustments
Principal
Payments
March 31,
2017
 
(in thousands)
Contractual liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal balance
$
107,900
 
$
808
 
$
 
$
 
$
(1,500
)
$
107,208
 
Mandatory trigger event exit fees
 
55,258
 
 
 
 
 
 
1,961
 
 
 
 
57,219
 
Mandatory consulting fees
 
6,000
 
 
 
 
 
 
 
 
 
 
6,000
 
Total contractual liability
$
169,158
 
$
808
 
 
 
 
$
1,961
 
$
(1,500
)
 
170,427
 
Debt discount and issuance costs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Original issue discount
$
2,150
 
$
 
$
 
$
 
$
 
$
2,150
 
Origination fee
 
5,375
 
 
 
 
 
 
 
 
 
 
5,375
 
Amendment fee
 
8,600
 
 
 
 
 
 
 
 
 
 
8,600
 
Fair value of warrants
 
7,608
 
 
 
 
 
 
 
 
 
 
7,608
 
Consulting fees to lenders
 
7,720
 
 
 
 
 
 
 
 
 
 
7,720
 
Mandatory trigger event exit fees
 
55,258
 
 
 
 
 
 
1,961
 
 
 
 
57,219
 
Other issuance costs
 
3,823
 
 
 
 
15
 
 
 
 
 
 
3,838
 
Total discount and issuance costs
 
90,534
 
$
 
$
15
 
$
1,961
 
$
 
 
92,510
 
Cumulative accretion expense
 
(9,440
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(15,310
)
Net discount
 
81,094
 
 
 
 
 
 
 
 
 
 
 
 
 
 
77,200
 
Net carrying value
$
88,064
 
 
 
 
 
 
 
 
 
 
 
 
 
$
93,227
 

As of March 31, 2017, accretion of DIC for the funded debt of the Credit Facility is at an annual rate of 25.9%, resulting in an overall effective annual rate of 40.9% (excluding the impact of unused line fees, collateral monitoring fees, and amortization of debt issuance costs related to the unfunded portion of the Credit Facility).

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Based on the $170.4 million contractual liability outstanding under the Credit Facility, the scheduled future maturities as of March 31, 2017, are as follows (in thousands):

12-Months Ending March 31,
Principal
Trigger
Event Fees
Consulting
Total
 
(in thousands)
2018
$
46,131
(1)
$
 
$
2,000
 
$
48,131
 
2019
 
29,250
 
 
 
 
2,000
 
 
31,250
 
2020
 
30,000
 
 
 
 
2,000
 
 
32,000
 
2021
 
1,827
 
 
57,219
 
 
 
 
59,046
 
Total
$
107,208
 
$
57,219
 
$
6,000
 
$
170,427
 
(1) As discussed in Notes 8 and 11 to our unaudited consolidated financial statements included elsewhere in this joint proxy statement/prospectus, consists of (i) aggregate monthly principal amortization of $25.5 million as set forth in the Third Amendment to the Credit Facility, (ii) the mandatory prepayment of $14.8 million of principal in April 2017 in connection with an insurance settlement agreement, and (ii) a principal payment of $6.5 million, including satisfaction of the 75% of Excess Cash Flow mandatory prepayment of $4.0 million for the quarter ended March 31, 2017 and an additional principal payment of $2.5 million required as part of the Third Amendment.

As of March 31, 2017, the current maturities of long-term debt amounted to $48.1 million as shown in the table above. The scheduled minimum principal payments shown above for the 12-month period ending March 31, 2018 exclude (i) principal payments based on the calculation of 75% of Excess Cash Flow generated for each of the four calendar quarters for the 12-month period ending on March 31, 2018, (ii) additional principal payments that we are required to make from the $35.0 million equity issuance proceeds, (iii) Customer Prepayments for service periods exceeding one year that are received after April 1, 2017, and that are required to be applied to reduce the outstanding principal balance, and (iv) additional principal payments that we may elect to make in connection with the merger agreement. In May 2017, we made a principal prepayment of $6.5 million, including satisfaction of the 75% of Excess Cash Flow mandatory prepayment of $4.0 million for the first quarter of 2017 and an additional principal prepayment of $2.5 million. Mandatory principal payments based on Excess Cash Flow generated in subsequent quarters are excluded since they are contingent payments based on the generation of working capital in the future, and changes resulting from the Third Amendment are not given effect prior to the execution date. Fifty percent of the proceeds from the $35.0 million of equity issuances are required to be applied as a $13.8 million principal payment and a make-whole interest payment of approximately $3.7 million.

Borrowings under the Credit Facility are collateralized by substantially all of our assets, including certain cash depository accounts that are subject to control agreements with the lenders under the Credit Facility. As of March 31, 2017, the restricted cash balance under the control agreements totaled $19.5 million. Under the Credit Facility, we are required to comply with various financial and operational covenants on a monthly or quarterly basis, including a leverage ratio, minimum liquidity, churn rate, asset coverage ratio, minimum gross margin, and certain budgetary compliance restrictions. The Credit Facility also prohibits or limits our ability to incur additional debt, pay cash dividends, sell assets, merge or consolidate with another company, and other customary restrictions associated with debt arrangements. From November 2016 through April 2017, we had made expenditures that exceeded certain budgetary compliance covenants which resulted in the existence of an event of default under the Credit Facility that was subsequently cured by the Third Amendment.

In addition to the Credit Facility, we entered into a consulting agreement with the Origination Agent. In addition to four cash payments of $2.0 million to the Origination Agent, the consulting agreement also provided for the issuance of a warrant to the Origination Agent at an exercise price of $1.35 per share to purchase 11,075,027 shares of our Class A common stock, representing approximately 5.0% of our fully-diluted share capital. In order to maintain the number of shares equivalent to 5.0% of our fully-diluted share capital, the number of shares issuable under the warrant is subject to increase if we subsequently complete equity offerings up to $20.0 million. As of March 31, 2017, warrants held by the Origination Agent were exercisable for a total of approximately 14,110,260 shares of our Class A common stock, reflecting additional warrants issued as part of the Series C Preferred (defined below) issuance that triggered the ant-dilution provision noted above. The Origination Agent warrants are redeemable for cash at the option of the holders at the earliest to occur of (i) termination of the Credit Facility, (ii) a change of control, or (ii) 30 days prior to the stated expiration date of the warrants. The redemption price is equal to the fair value of the warrants on the date that redemption is elected. The fair value of this redemption liability as of March 31, 2017 amounted to $7.9 million and is included in our consolidated balance sheet as a long-term liability.

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Subject to consummation of the merger agreement, the Origination Agent warrants were modified to provide for the issuance of an additional 260,000 warrants exercisable at $1.35 per share, resulting in an aggregate of 14.4 million warrants exercisable by the Origination Agent. The Origination Agent agreed that upon consummation of the merger agreement such warrants will be converted into warrants for shares of RMNI, with the number of shares and exercise price adjusted for the Exchange Ratio. Additionally, the anti-dilution provisions and the cash redemption feature would be eliminated.

In October 2016, we filed Amended and Restated Articles of Incorporation (“Restated Articles”) to create a newly designated Series C Preferred Stock (“Series C Preferred”) and to authorize the issuance of up to 56,441,036 shares of Series C Preferred. The Restated Articles set forth the rights of the holders of Series C Preferred and modified certain rights of the holders of Series B Preferred Stock (“Series B Preferred”). The Series C Preferred has similar terms to the Series B Preferred.

In October 2016, we entered into a Series C Preferred Stock Purchase Agreement with a group of investors resulting in the issuance of 56,441,036 shares of Series C Preferred for approximately $0.18 per share, for gross proceeds of $10.0 million. The net proceeds were $9.9 million and were used to satisfy the required equity participation by the lenders under the Credit Facility and payment of the Rimini I judgment.

In May 2017, we entered into the merger agreement with GPIA, which is expected to satisfy the covenant discussed above to issue at least $35.0 million of equity. However, the merger agreement requires GPIA and us to jointly file a Form S-4 registration statement with the SEC. Upon effectiveness of the Form S-4 registration statement, among other conditions to consummation of the business combination, our stockholders and the shareholders of GPIA are required to vote to approve the consummation of the business combination. Therefore, no assurance can be provided that consummation of the business combination will occur. Pursuant to the Fifth Amendment, the lenders under the Credit Facility will be entitled to certain “target date” fees if (i) the filing date for the Form S-4 registration statement occurs after June 30, 2017, and (ii) the consummation of the merger occurs after August 31, 2017. If these target dates are not achieved, additional fees of 1.0% of the $125.0 million commitment will be required as of the designated target date and will continue to be incurred for each subsequent calendar month that the delays continue. The target date fees are payable in cash upon the earlier of (i) receipt of the equity issuance proceeds discussed above, (ii) the maturity date of the Credit Facility, and (iii) the termination date of the Credit Facility.

Prior to consummation of the business combination, Rimini Street and GPIA may jointly elect to offer the lenders under the Credit Facility the ability to convert up to $21.0 million of obligations under the Credit Facility at $10.00 per share for 2,100,000 GPIA ordinary shares, effective immediately prior to the first merger. If Rimini Street and GPIA elect to make this offer, the lenders under the Credit Facility are under no obligation to accept it.

During 2015 and 2016, we experienced net revenue growth in excess of 35% annually. As of March 31, 2017, we had unrestricted cash and cash equivalents of approximately $13.2 million and restricted cash and cash equivalents of approximately $20.1 million. We believe that our existing capital resources combined with expected cash flow from operating activities will be sufficient to meet our anticipated cash needs for the next year or longer.

If the equity issuances are not completed by November 30, 2018, and the lenders under the Credit Facility are unwilling to continue to amend the terms of the Credit Facility and provide waivers, they may demand immediate payment of all outstanding contractual liabilities under the Credit Facility. In this case, we may seek other financing alternatives, which could result in further restricting our operations. There can be no assurance that additional equity or debt financing alternatives will be available on acceptable terms, if at all.

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Cash Flows Summary

Presented below is a summary of our operating, investing and financing cash flows:

 
Year Ended December 31,
Three Months Ended
March 31,
 
2014
2015
2016
2016
2017
 
(in thousands)
Consolidated Statements of Cash Flows Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by (used in):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating activities
$
3,215
 
$
1,573
 
$
(59,609
)
$
6,003
 
$
6,594
 
Investing activities
 
(1,242
)
 
(1,747
)
 
(1,188
)
 
(53
)
 
(101
)
Financing activities
 
(2,954
)
 
(842
)
 
77,088
 
 
217
 
 
(1,650
)

Cash Flows Provided By Operating Activities

For the three months ended March 31, 2017, cash flows provided by operating activities was $6.6 million. The positive cash flows resulted primarily from an increase in deferred revenue of $0.3 million, non-cash expenses of $8.3 million (including $6.0 million of accretion of debt discount and issuance costs) and a reduction of accounts receivable of $14.9 million, offset by a net loss of $14.5 million and a net decrease in other working capital amounts of $7.5 million.

For the three months ended March 31, 2016, cash flows provided by operating activities was $6.0 million. The positive cash flows resulted primarily from an increase in deferred revenue of $3.6 million, non-cash expenses of $1.1 million and a reduction of accounts receivable of $11.5 million, offset by a net loss of $8.0 million and a net decrease in other working capital amounts of $2.2 million.

For the year ended December 31, 2016, cash flows used in operating activities was $59.6 million. The cash used primarily related to our net loss of $12.9 million, the $124.4 million litigation payment and an increase in accounts receivable of $14.6 million, partially offset by an increase in deferred revenue of $57.0 million, non-cash expenses of $18.4 million (including $10.1 million of accretion of debt discount and issuance costs) and a net decrease in other working capital amounts of $14.0 million.

For the year ended December 31, 2015, cash flows provided by operating activities was $1.6 million. The positive cash flows resulted primarily from an increase in deferred revenue and accrued litigation settlement of $22.3 million and $21.4 million, respectively, and a reduction of other working capital amounts of $8.2 million, and non-cash expenses of $3.5 million partially offset by an increase in accounts receivable of $8.5 million and our net loss of $45.3 million.

For the year ended December 31, 2014, cash flows provided by operating activities was $3.2 million. The positive cash flows resulted primarily from an increase in accrued litigation settlement and deferred revenue of $100.0 million and $25.7 million, respectively, a reduction in other working capital amounts of $4.9 million, and non-cash expenses of $9.5 million, partially offset by an increase in accounts receivable of $9.0 million, and our net loss of $127.8 million.

Cash Flows Used In Investing Activities

Cash used in investing activities is primarily driven by capital expenditures for leasehold improvements and computer equipment as we continued to invest in our business infrastructure and advance our geographic expansion. Capital expenditures totaled $1.2 million, $1.7 million and $1.2 million for the years ended December 31, 2014, 2015 and 2016, respectively, and $0.1 million and $0.1 million for the three months ended March 31, 2016 and 2017, respectively. The 2015 activity was higher than 2014 due to office expansions and infrastructure spending both inside and outside the United States, while 2016 spending decreased due to covenants in the Credit Facility that put restrictions on cash expenditures.

Cash Flows From Financing Activities

Cash used in financing activities of $1.7 million for the three months ended March 31, 2017 was primarily attributable to scheduled principal payments of $1.5 million under our new Credit Facility and principal payments on capital lease obligations of $0.2 million.

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Cash provided by financing activities of $0.2 million for the three months ended March 31, 2016 was primarily attributable to borrowings under our prior line of credit of $0.5 million, partially offset by principal payments of $0.2 million under our prior line of credit, and principal payments of $0.1 million on capital lease obligations.

Cash provided by financing activities of $77.1 million for the year ended December 31, 2016 was primarily attributable to net proceeds from borrowings under the Credit Facility entered in June 2016 for $83.8 million, and net proceeds of $9.9 million from the issuance of Series C preferred stock in October 2016. These sources of cash total $93.7 million and were partially offset by (i) principal payments to repay our previous line of credit for $14.8 million, (ii) principal payment under our new Credit Facility of $0.5 million, (iii) principal payments on capital lease obligations of $0.7 million, and (iv) payments for debt issuance costs of $0.6 million.

Cash used in financing activities of $0.8 million for the year ended December 31, 2015 was primarily attributable to principal payments of $0.4 million under our prior line of credit, and principal payments of $0.4 million on capital lease obligations.

Cash used in financing activities of $2.9 million for the year ended December 31, 2014 was primarily attributable to payments for deferred offering costs of $2.3 million, and net principal reductions of $0.6 million under our prior line of credit and capital lease obligations.

Contractual Obligations

The following table summarizes our contractual obligations on an undiscounted basis as of December 31, 2016, and the period in which each contractual obligation is due:

 
Year Ending December 31,
 
 
2017
2018
2019
2020
2021
Thereafter
Total
 
(in thousands)
Credit Facility:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Components of debt carrying value (1) :
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal
$
22,750
 
$
28,500
 
$
30,000
 
$
26,650
 
$
 
$
 
$
107,900
 
Consulting
 
2,000
 
 
2,000
 
 
2,000
 
 
 
 
 
 
 
 
6,000
 
Trigger event fees
 
 
 
 
 
 
 
55,258
 
 
 
 
 
 
55,258
 
Components of stated interest rate (2) :
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest payable in cash
 
12,281
 
 
9,320
 
 
5,960
 
 
1,657
 
 
 
 
 
 
29,218
 
Interest payable in kind
 
 
 
 
 
 
 
8,205
 
 
 
 
 
 
8,205
 
Components of debt financing fees:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collateral monitoring fees (3)
 
2,600
 
 
2,018
 
 
1,317
 
 
332
 
 
 
 
 
 
6,267
 
Unused line fees (4)
 
887
 
 
887
 
 
425
 
 
 
 
 
 
 
 
2,199
 
Annual loan service fee
 
395
 
 
395
 
 
395
 
 
 
 
 
 
 
 
1,185
 
Annual agent fee
 
55
 
 
55
 
 
55
 
 
 
 
 
 
 
 
165
 
Leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating leases
 
4,198
 
 
3,899
 
 
3,350
 
 
3,001
 
 
2,883
 
 
2,075
 
 
19,406
 
Capital leases
 
893
 
 
460
 
 
87
 
 
 
 
 
 
 
 
1,440
 
Total
$
46,059
 
$
47,534
 
$
43,589
 
$
95,103
 
$
2,883
 
$
2,075
 
$
237,243
 
(1) The principal payments are based on the Credit Facility amortization schedule, as amended. Scheduled minimum principal payments shown above for the year ending December 31, 2017 exclude the impact of (i) the repayment of $14.1 million of principal in April 2017 in connection with an insurance settlement, (ii) principal payments based on the calculation of 75% of Excess Cash Flow, if any, generated for each of the calendar quarters ending in 2017, (iii) additional principal payments that Rimini Street is required to make from the $35.0 million equity issuance proceeds, (iv) Customer Prepayments for service periods exceeding one year that are received after April 1, 2017, and that are required to be applied to reduce the outstanding principal balance, and (v) additional principal payments that Rimini Street may elect to make in connection with the merger agreement. Principal payments based on the insurance settlement, Excess Cash Flow and future Customer Prepayments are excluded from the table since they are contingent payments based on the generation of working capital in the future, and principal payments that result from modifications of the Credit Facility are excluded until the period of the modification.
(2) Interest payable in cash at the stated rate of 12.0% per annum is included in the table based on the calculated principal balance as described in footnote (1) above. Make-whole interest payments are excluded from the table since they are in lieu of interest otherwise included in the table. Interest that is payable in kind at the stated rate of 3.0% per annum is payable at maturity of the Credit Facility and the amount presented is the cumulative PIK interest from January 1, 2017 through the maturity date, based on the principal balance as described in footnote (1) above.
(3) Collateral monitoring fees are 2.5% per annum based on the outstanding principal balance as described in footnote (1) above.
(4) Unused line fee line fees are charged on the unfunded portion of the Credit Facility of $17.5 million based on a fee of 5.0% per annum. We are permitted to terminate the commitment related to the $17.5 million beginning in June 2019, and if we have not borrowed these funds we intend to terminate the commitment at that time. Accordingly, we have not included unused line fees in the table after June 2019.

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Off-Balance Sheet Arrangements

During the periods presented, we did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special purpose entities, which were established for the purpose of facilitating off - balance sheet arrangements.

Qualitative and Quantitative Disclosures About Market Risk

Foreign Currency Exchange Risk

We have foreign currency risks related to our net revenue and operating expenses denominated in currencies other than the U.S. Dollar, primarily the Euro, British Pound Sterling, Brazilian Real, Australian Dollar, Indian Rupee and the Japanese Yen. We generated approximately 73%, 70%, 69%, 66% and 66% of our net revenue in the United States and approximately 27%, 30%, 31%, 34% and 34% of our net revenue from our international business for the years ended December 31, 2014, 2015 and 2016, respectively, and for the three months ended March 31, 2016 and 2017, respectively. Increases in the relative value of the U.S. Dollar to other currencies may negatively affect our net revenue, partially offset by a positive impact to operating expenses in other currencies as expressed in U.S. Dollars.

We have experienced and will continue to experience fluctuations in our net loss as a result of transaction gains or losses related to revaluing certain current asset and current liability balances, including intercompany receivables and payables, which are denominated in currencies other than the functional currency of the entities in which they are recorded. While we have not engaged in the hedging of our foreign currency transactions to date, we are evaluating the costs and benefits of initiating such a program and we may in the future hedge selected significant transactions denominated in currencies other than the U.S. Dollar.

Interest Rate Sensitivity

We hold cash and cash equivalents for working capital purposes. We do not have material exposure to market risk with respect to investments, as any investments we enter into are primarily highly liquid investments.

Inflation Risk

We do not believe that inflation currently has a material effect on our business.

Critical Accounting Policies and Significant Judgements and Estimates

Our management’s discussion and analysis of financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as the reported net revenue and expenses during the reporting periods. These items are monitored and analyzed by us for changes in facts and circumstances, and material changes in these estimates could occur in the future. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Changes in estimates are reflected in reported results for the period in which they become known. Actual results may differ from these estimates under different assumptions or conditions.

We believe that of our significant accounting policies, which are described in note 2 to our consolidated financial statements, the following accounting policies involve a greater degree of judgment and complexity. Accordingly, these are the policies we believe are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of operations.

Debt

At inception of the Credit Facility, we evaluated the Credit Facility as well as several related agreements that were entered into concurrently to determine if the fair value of the cash and non-cash amounts payable pursuant to such agreements are required to be treated as debt discounts and issuance costs. In addition, for amounts subject to a consulting agreement entered into concurrently with the Origination Agent, we determined that the fair value of the warrants issued at inception, the annual consulting services, and the trigger event fees payable at termination of the

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Credit Facility, should all be accounted for as additional consideration to obtain the financing. Accordingly, these costs, as well as origination fees, original issue discounts, and incremental and direct professional fees paid by us for our own account and similar costs paid on behalf of the lenders under the Credit Facility, were treated as debt discount and issuance costs.

Debt issuance costs are allocated proportionately, based on cumulative borrowings in relation to the total financing commitment, between the funded and unfunded portions of the Credit Facility debt. Debt issuance costs and discounts related to funded debt are classified as a reduction in the carrying value of the debt in our consolidated balance sheets and are accreted to interest expense using the effective interest method. Debt issuance costs related to unfunded debt are classified as a long-term asset in our consolidated balance sheets, and are generally amortized using the straight-line method over the contractual term of the debt agreement. When we borrow incremental amounts under the Credit Facility, the net carrying value of debt issuance costs related to previously unfunded debt are transferred to debt discounts and issuance costs related to funded debt where they are included as a component of the carrying value of the funded debt and accreted prospectively using the effective interest method.

The Credit Facility is a highly complex legal document that contains numerous embedded derivatives that we are required to evaluate for accounting recognition. For embedded derivatives, we record the fair value, if any, as a liability at the date of such determination. We also evaluate each embedded derivative on a quarterly basis to determine if the facts and circumstances have changed whereby the liability has increased or decreased. When a liability is initially established or changed for an embedded derivative, a corresponding adjustment to non-operating income or expenses is reflected in our consolidated statements of operations.

The balance sheet classification of our debt between current and long-term liabilities takes into account scheduled principal payments in effect under the Credit Facility, and Excess Cash Flow prepayments, if any, for quarterly periods ending on or before the balance sheet date. We are obligated to make principal payments in the future based on the calculation of Excess Cash Flow and such prepayments for periods after the balance sheet date are not included in current liabilities since they are contingent prepayments based on the generation of working capital in the future.

When we amend our debt agreements, we evaluate the terms to determine if the amendment should be accounted for as a modification or an extinguishment. This determination has a significant impact on our current and future results of operations, since a conclusion that a debt extinguishment has occurred results in the recognition of a loss consisting of all costs incurred before the amendment. Alternatively, if we conclude that the amendment should be accounted for as a modification, such costs continue to be accounted for as a component of the carrying value of the debt, and amounts paid to the lenders under the Credit Facility to obtain the amendment are accounted for as a debt issuance cost and allocated between the funded debt and the unfunded debt. When we make mandatory prepayments of principal under the Credit Facility we write-off a proportional amount of unamortized debt discounts and issuance costs in relation to the total debt obligations under the Credit Facility.

Revenue Recognition

Revenue is derived from support services, and to a lesser extent, software licensing and related maintenance and professional services. A substantial majority of revenue is from support services, and revenue from other sources has been minimal to date. Revenue is recognized when all the following criteria are met:

Persuasive evidence of an arrangement exists . We generally rely on a written sales contract to determine the existence of an arrangement.
Delivery has occurred . We consider delivery to have occurred over the contractual term when support service is available to the customer in the manner prescribed in the contractual arrangement, and when there are no further additional performance or delivery obligations.
Fee is fixed or determinable . We assess whether the sales price is fixed or determinable based on the payment terms and whether the sales price is subject to refund or adjustment.
Collection is reasonably assured . Collection is deemed probable if we expect that the customer will be able to pay amounts under the arrangement as payments become due. Previous uncollectable receivables have not had a material impact on the consolidated financial statements for the periods presented.

We recognize our support services revenue provided on third-party software in accordance with Accounting Standards Codification (ASC) 605, Revenue Recognition , and SEC Staff Accounting Bulletin (SAB) 104, Revenue

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Recognition . Pricing for support services is generally established on a per-customer basis as set forth in the arrangements. The non-cancellable terms of our support services arrangements average two years and in most cases, include an extended initial support service period of generally three to six months for transition and onboarding tasks. This results in a discounted fee for the initial support service period. For such arrangements, revenue is limited to the amount that is not contingent upon the future delivery of support services whereby each annual billing period is recognized on a straight-line basis over the respective annual support service period. For arrangements not subject to this contingent revenue limitation, the total arrangement fee is recognized as revenue on a straight-line basis over the non-cancellable term.

In certain circumstances, we enter into arrangements with multiple elements, comprised of support services for multiple third-party software platforms and to a much lesser extent professional services and software product licensing and related maintenance support. When we enter into multiple element arrangements, these arrangements are evaluated to determine if the multiple elements consist of more than one unit of accounting and can be separated accordingly. Based on separation criteria under U.S. GAAP, deliverables in multiple element arrangements can be segregated into separate units of accounting if: a) they have value to the customer on a standalone basis. The items have value on a standalone basis if they are sold separately by any vendor or the customer could resell the delivered items on a standalone basis; b) if the sales arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered items are considered probable and substantially in the control of the vendor. If deliverables can be separated into individual units of accounting, then we allocate consideration at the inception of an arrangement to all deliverables based on the relative selling price method in accordance with the selling price hierarchy, which includes: (i) vendor-specific objective evidence (“VSOE”) if available; (ii) third-party evidence (“TPE”) if VSOE is not available, and (iii) best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. Revenue from each deliverable are recognized when all requirements are met for that specific deliverable. If deliverables cannot be separated into separate units of accounting, then the arrangement will be accounted for as a single unit of accounting and revenue will be recognized when all requirements are met for all deliverables within the arrangement.

In determining VSOE, accounting guidance requires that a substantial majority of the standalone selling prices for these products fall within a reasonably narrow pricing range. We have not established VSOE due to lack of pricing consistency. We have also concluded that TPE is not a practical alternative due to differences in our service offerings compared to other parties and the availability of relevant third-party pricing information. Accordingly, for replacement of vendor support services, we establish BESP primarily by consistently pricing its arrangements following its internal pricing policy of quoting the customers a 50% discount to their current annual support fees they would otherwise pay enterprise software vendors. We regularly review BESP. Changes in assumptions or judgments or changes to the elements in the arrangement could cause an increase or decrease in the amount of revenue that we report in a particular period.

In a limited number of arrangements, we also license software products and related maintenance services under term-based arrangements. The terms of software licenses and services support are the same, and when support services are terminated, the software license is also terminated. To date software has not been licensed separately, but rather has only been licensed along with service support arrangements. This software is considered essential to the functionality of the support services for these arrangements. We apply the provisions of ASC 985-605, Software Revenue Recognition , to these deliverables. Accordingly, all revenue from the software license is recognized over the term of the support services.

Deferred revenue consists of billings issued that are non-cancellable but not yet paid and payments received in advance of revenue recognition. We typically invoice our customers at the beginning of the contract term, in annual and multi-year installments. Deferred revenue that is anticipated to be recognized during the succeeding 12-month period is recorded as current deferred revenue and the remaining portion is recorded as long-term deferred revenue.

Valuation of Embedded Derivatives, Redeemable Warrants, and Stock-Based Compensation

We are a private company with no active market for our common stock. When we enter into a financial instrument such as a debt or equity agreement (the “host contract”), we assess whether the economic characteristics of any embedded features are clearly and closely related to the primary economic characteristics of the remainder of the host contract. When it is determined that (i) an embedded feature possesses economic characteristics that are not clearly and closely related to the primary economic characteristics of the host contract, and (ii) a separate, stand-alone instrument with the same terms would meet the definition of a financial derivative instrument, then the embedded

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feature is bifurcated from the host contract and accounted for as a derivative instrument. The estimated fair value of the derivative feature is recorded separately from the carrying value of the host contract, with subsequent changes in the estimated fair value recorded as a non-operating gain or loss in our consolidated statements of operations.

The Credit Facility includes features that were determined to be embedded derivatives requiring bifurcation and accounting as separate financial instruments. The fair value of these embedded derivatives is estimated using the “with” and “without” method. Accordingly, the Credit Facility was first valued with the embedded derivatives (the “with” scenario) and subsequently valued without the embedded derivative (the “without” scenario). The fair values of the embedded derivatives were estimated as the difference between the fair values of the Credit Facility in the “with” and “without” scenarios. The fair values of the Credit Facility in the “with” and “without” scenarios were determined using the income approach, specifically the yield method. Significant “Level 3” assumptions used in the valuation of the embedded derivatives include the timing of projected principal payments, the remaining term to maturity, and the discount rate.

We issued warrants to the Origination Agent in connection with a consulting agreement entered into concurrently with the Credit Facility. The Origination Agent warrants are redeemable for cash at the option of the holders under certain circumstances, including termination of the Credit Facility.

The valuation methodology for the warrants was performed through a hybrid model using Monte Carlo simulation, which considers possible future equity financing and liquidity scenarios, including an initial public offering, a sale of the business, and a liquidation of Rimini Street. Key assumptions inherent in the warrant valuation methodology include projected revenue multiples, historical volatility, the risk-free interest rate, a discount rate for lack of marketability, and an overall discount rate.

We measure the cost of employee and director services received in exchange for all equity awards granted, including stock options, based on the fair market value of the award as of the grant date. We compute the fair value of options using the Black-Scholes-Merton (“BSM”) option pricing model. Assumptions used in the valuation of stock options include the expected life, volatility, risk-free interest rate, dividend yield, and the fair value of our common stock on the date of grant. We utilized the observable data for a group of peer companies that grant options with substantially similar terms to assist in developing our volatility assumption. The risk-free rate is based on U.S. Treasury yields in effect at the time of grant over the expected term. We did not assume a dividend yield since we have never paid dividends and do not plan to do so for the foreseeable future. The fair value of our common stock is based on the valuation methodology described above for the Origination Agent warrants.

We recognize the cost of the equity awards over the period that services are provided to earn the award, usually the vesting period. For awards granted which contain a graded vesting schedule, and the only condition for vesting is a service condition, compensation cost is recognized as an expense on a straight-line basis over the requisite service period as if the award was, in substance, a single award. Stock-based compensation expense is recognized based on awards ultimately expected to vest whereby estimates of forfeitures are based upon historical experience.

The assumptions used in estimating the fair value of warrants, derivatives and stock-based payment awards represent our best estimates, but these estimates involve inherent uncertainties and the application of our judgment. As a result, if factors change and we use different assumptions, warrant and stock-based compensation expense could be different in the future. Once our common stock becomes publicly traded, certain key valuation inputs to the option pricing method will be based on publicly available information. These key valuation inputs include the fair value of our common stock, and once there is sufficient trading history the volatility is expected to be derived from the historical trading activity of our common stock.

Please refer to Note 7, Stock Options and Warrants , to our 2016 audited consolidated financial statements included elsewhere in this joint proxy statement/prospectus for details regarding valuation and accounting for warrants and options under our equity-based compensation plans.

Income Taxes

We account for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered or settled. Realization of deferred tax assets is dependent upon future taxable income. A valuation allowance is recognized if it is more likely than not that some portion or all of a deferred tax asset will not be realized based on the weight of available evidence, including expected future earnings.

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We recognize an uncertain tax position in its financial statements when we conclude that a tax position is more likely than not to be sustained upon examination based solely on its technical merits. Only after a tax position passes the first step of recognition will measurement be required. Under the measurement step, the tax benefit is measured as the largest amount of benefit that is more likely than not to be realized upon effective settlement. This is determined on a cumulative probability basis. The full impact of any change in recognition or measurement is reflected in the period in which such change occurs. Interest and penalties related to income taxes are recognized in the provision for income taxes.

United States federal and state laws impose substantial restrictions on the utilization of net operating loss and tax credit carryforwards in the event of an ownership change for tax purposes, as defined in Section 382 of the Internal Revenue Code. Depending on the significance of past and future ownership changes, our ability to realize the potential future benefit of tax losses and tax credits that existed at the time of the ownership change may be significantly reduced. We have not yet performed a Section 382 study to determine the amount of reduction, if any.

We have no provision for United States income taxes on undistributed earnings of its foreign subsidiaries because it is our intention to permanently reinvest these earnings outside the United States. If such earnings were distributed, we may be subject to additional United States tax expense. As of December 31, 2016, the cumulative amount of earnings upon which United States income taxes had not been provided was approximately $7.0 million. The unrecognized deferred tax liability for these earnings was approximately $0.5 million.

We file income tax returns in the United States federal, State of California and various other state jurisdictions, as well as various other jurisdictions outside of the United States. Our United States federal and state tax years for 2006 and forward are subject to examination by taxing authorities, due to unutilized net operating losses. All tax years for jurisdictions outside of the United States are also subject to examination. We do not have any unrecognized tax benefits to date.

Loss Contingencies

We are subject to the possibility of various loss contingencies arising in the ordinary course of business. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. If some amount within a range of loss appears to be a better estimate than any other amount within the range, we accrue that amount. Alternatively, when no amount within a range of loss appears to be a better estimate than any other amount, we accrue the lowest amount in the range. If we determine that a loss is reasonably possible and the range of the loss is estimable, then we disclose the range of the possible loss. If we cannot estimate the range of loss, it will disclose the reason why we cannot estimate the range of loss. On a quarterly basis we evaluate current information available to it to determine whether an accrual is required, an accrual should be adjusted and if a range of possible loss should be disclosed.

Recent Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (FASB) or other standard setting bodies that are adopted by us as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption.

Please refer to the section entitled Recent Accounting Pronouncements under Note 2 –Significant Accounting Policies in the notes to the 2016 consolidated financial statements of Rimini Street included elsewhere in this joint proxy statement/prospectus for additional information on recently issued accounting standards and our plans for adoption of those standards.

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MANAGEMENT OF RMNI FOLLOWING THE BUSINESS COMBINATION

Currently, GPIA’s board of directors is comprised of five directors, Antonio Bonchristiano (Chief Executive Officer and Chief Financial Officer), Fersen Lamas Lambranho (Chairman), Christopher Brotchie, Alexandre Hohagen and Fernando d’Ornellas Silva.

Our board of directors following the business combination is expected to be comprised of nine directors, of which seven (including Seth A. Ravin) will be designated by Rimini Street and two will be designated by GPIA. Each director will hold office until his term expires at the next annual general meeting of shareholders or until his death, resignation, removal or the earlier termination of his term of office.

Currently, Rimini Street’s executive management team is comprised of Seth A. Ravin, Sebastian Grady, Nancy Lyskawa, Kevin Maddock, David Rowe, Thomas Sabol, Thomas C. Shay, Brian Slepko, and Daniel B. Winslow.

Our executive management team following the business combination is expected to be comprised of Seth A. Ravin (Chief Executive Officer), Sebastian Grady, Nancy Lyskawa, Kevin Maddock, David Rowe, Thomas Sabol, Thomas C. Shay, Brian Slepko, and Daniel B. Winslow.

The following sets forth certain information, as of the date of this joint proxy statement/prospectus, concerning the persons who are expected to serve as directors and executive officers of RMNI following the consummation of the business combination.

Name
Age
Position
Seth A. Ravin
51
Chief Executive Officer and Chairman of the Board of Directors
Sebastian Grady
53
President
Nancy Lyskawa
54
Senior Vice President, Global Client Onboarding
Kevin Maddock
52
Senior Vice President, Global Sales
David Rowe
51
Senior Vice President and Chief Marketing Officer
Thomas Sabol
58
Senior Vice President and Chief Financial Officer
Thomas C. Shay
51
Senior Vice President, Chief Information Officer, Secretary and Director
Brian Slepko
54
Senior Vice President, Global Service Delivery
Daniel B. Winslow
59
Senior Vice President, General Counsel
Jack L. Acosta (1)
69
Director
Thomas Ashburn (2)(3)
73
Director
Steve Capelli (2)(3)
59
Director
Robin Murray (1)
51
Director
Margaret (Peggy) Taylor (1)(2)
66
Director
Antonio Bonchristiano (3)
50
Director
Andrew Fleiss (1)(2)
39
Director
(1) Member of the Audit Committee.
(2) Member of the Compensation Committee.
(3) Member of the Nominating and Corporate Governance Committee.

Directors and Executive Officers

Seth A. Ravin

The biography of Mr. Ravin is set forth in the section entitled “ Information about Rimini Street—Executive Officers of Rimini Street—Seth A. Ravin ”.

We believe that Mr. Ravin possesses specific attributes to qualify him to serve as a member of our board of directors, including the perspective and experience he brings as Rimini Street’s Chief Executive Officer. We also value his deep understanding of Rimini Street’s business as it has evolved over time and his extensive senior management expertise in the software maintenance and support services industry.

Sebastian Grady

The biography of Mr. Grady is set forth in the section entitled “ Information about Rimini Street—Executive Officers of Rimini Street—Sebastian Grady ”.

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Nancy Lyskawa

The biography of Ms. Lyskawa is set forth in the section entitled “ Information about Rimini Street—Executive Officers of Rimini Street—Nancy Lyskawa ”.

Kevin Maddock

The biography of Mr. Maddock is set forth in the section entitled “ Information about Rimini Street—Executive Officers of Rimini Street—Kevin Maddock ”.

David Rowe

The biography of Mr. Rowe is set forth in the section entitled “ Information about Rimini Street—Executive Officers of Rimini Street—David Rowe ”.

Thomas Sabol

The biography of Mr. Sabol is set forth in the section entitled “ Information about Rimini Street—Executive Officers of Rimini Street—Thomas Sabol ”.

Thomas Shay

The biography of Mr. Shay is set forth in the section entitled “ Information about Rimini Street—Executive Officers of Rimini Street—Thomas Shay ”.

We believe that Mr. Shay possesses specific attributes to qualify him to serve as a member of our board of directors, including the perspective and experience he brings as our Chief Information Officer and a longstanding member of our board of directors. We also value his deep understanding of our business as it has evolved over time and his strong background in enterprise software maintenance and support.

Brian Slepko

The biography of Mr. Slepko is set forth in the section entitled “ Information about Rimini Street—Executive Officers of Rimini Street—Brian Slepko ”.

Daniel B. Winslow

The biography of Mr. Winslow is set forth in the section entitled “ Information about Rimini Street—Executive Officers of Rimini Street—Daniel B. Winslow ”.

Jack L. Acosta

Jack L. Acosta has served as a member of our board of directors since October 2013. Mr. Acosta served as Chief Financial Officer and Vice President, Finance of Portal Software, a software company acquired by Oracle Corporation, from February 1999 to September 2001. In addition, Mr. Acosta served as Secretary of Portal Software from February 1999 to April 1999. From July 1996 to January 1999, Mr. Acosta served as Executive Vice President and Chief Financial Officer of Sybase, Inc., a database company acquired by SAP AG. Mr. Acosta serves on the board of directors of Five9, Inc., a provider of cloud software for contact centers. From March 2004 to July 2009, Mr. Acosta served on the board of directors of SumTotal Systems, Inc., a provider of learning, performance, and compensation management software and services. Mr. Acosta has served and continues to serve as a member of the board of directors of various private companies. Mr. Acosta holds a Bachelor of Science in Industrial Relations from California State University East Bay, a M.S. in Management Sciences from California State University East Bay and an Honorary Doctor of Humane Letters degree from California State University East Bay.

We believe Mr. Acosta is qualified to serve as a member of our board of directors because of his extensive experience in the enterprise software industry and serving on the boards of directors of various technology companies.

Thomas Ashburn

Thomas Ashburn has served as a member of our board of directors since January 2014. Previously, Mr. Ashburn served in various management positions at BEA Systems, Inc. (acquired by Oracle Corporation), from February 2002 to 2007, and served as President, Worldwide Field Organization, from May 2006 to 2007, as Executive Vice

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President, Worldwide Field Organization, from August 2004 to May 2006, and as Executive Vice President, Worldwide Services, from February 2002 to August 2004. Mr. Ashburn served as an advisor to BEA Systems, Inc. for Worldwide Services from August 2001 to February 2002. Prior to his service with BEA Systems, Inc., Mr. Ashburn served in various management positions at Hewlett-Packard Company, including most recently as Vice President and General Manager, Hewlett-Packard Services, from 1998 to February 2001. Mr. Ashburn has also served and continues to serve as a member of the board of directors of various private companies. Mr. Ashburn holds a Bachelor of Science degree in Industrial Technology from California State University, Long Beach.

We believe Mr. Ashburn is qualified to serve as a member of our board of directors because of his extensive experience in the enterprise software industry and serving on boards of directors of various technology companies.

Steve Capelli

Steve Capelli has served as a member of our board of directors since January 2014. Mr. Capelli is the Chief Financial Officer of Blackberry Limited, a position he has held since October 2016. Previously, Mr. Capelli served in various management positions at Sybase, Inc. (acquired by SAP), from December 1997 to April 2011, most recently as President, Worldwide Field Operations, from August 2006 to April 2011. From August 1992 to December 1997, Mr. Capelli served in various management positions at Siemens-Pyramid, a subsidiary of Siemens Nixdorf, a computer and electronics company, including as Chief Financial Officer, Vice President of InterContinental Sales, and Director of Field Operations. From January 2005 to November 2005, Mr. Capelli served on the board of directors of Apropos Technology, Inc., a publicly traded business communication software firm. In addition, Mr. Capelli serves as a member of the board of directors of various private companies. Mr. Capelli holds a Bachelor of Science degree in Accounting from The College of New Jersey and an M.B.A. from Rutgers University.

We believe Mr. Capelli is qualified to serve as a member of our board of directors because of his extensive experience in the enterprise software industry and serving on boards of directors of various technology companies.

Robin Murray

Robin Murray has served as a member of our board of directors since June 2009. Mr. Murray is a partner at Adams Street Partners, LLC, a global venture capital firm, which he joined in 2008. From 2001 to 2008, Mr. Murray served as a partner at 3i Ventures Corporation where he led the Menlo Park, California office. From 1997 to 2001, Mr. Murray served as Chief Financial Officer of both iPIN Corporation (ultimately acquired by Intel Corporation) and Ubicoms Ltd (ultimately acquired by The Hackett Group). From 1988 to 1995, Mr. Murray served in various roles in the London offices of J Sainsbury plc and Ernst & Young. Mr. Murray qualified as a Chartered Accountant with the Institute of Chartered Accountants of England & Wales. He holds a Bachelor of Science in Chemistry from Bristol University, England and an M.B.A. from Stanford University Graduate School of Business.

We believe Mr. Murray is qualified to serve as a member of our board of directors because of his substantial corporate finance, business strategy and corporate development expertise gained from his significant experience in the venture capital industry analyzing, investing in and serving on the boards of directors of various private technology companies. We also value his perspective as a representative of one of RMNI’s largest stockholders.

Margaret (Peggy) Taylor

Margaret (Peggy) Taylor has served as a member of our board of directors since January 2014. Previously, Ms. Taylor served as President of PeopleSoft Investments, Inc., a subsidiary of PeopleSoft, Inc. (acquired by Oracle Corporation), from January 2000 to January 2005, and as Senior Vice President of Corporate Operations of PeopleSoft, Inc. from January 1989 to December 1999. From January 2000 to December 2003, Ms. Taylor served as President of Nevada Pacific Development Corp., a consulting services firm. From December 1999 to December 2000, Ms. Taylor served as Chief Executive Officer of Venture Builders, LLC, a consulting company for start-up businesses. From May 1986 to October 1988, Ms. Taylor served as a Vice President Trust and Investment Management at Hibernia Bank. From January 1983 to October 1985, Ms. Taylor served as Vice President of Organization, Planning, and Development at Bank of California. Ms. Taylor has also served on the board of directors of numerous publicly traded corporations, including Fair Isaac Corporation, a decision analytics company, from December 1999 to February 2012. In addition, Ms. Taylor has served and continues to serve as a member of the board of directors of various private companies. Ms. Taylor holds a Bachelor of Arts degree in Communications and Psychology from Lone Mountain College of California. Ms. Taylor has also completed the Corporate Governance Program at Stanford Business School and the Compensation Committees Program at Harvard Business School.

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We believe Ms. Taylor is qualified to serve as a member of our board of directors because of her extensive experience in the enterprise software industry and serving on boards of directors of various technology companies.

Antonio Bonchristiano

The biography of Mr. Bonchristiano is set forth in the section entitled “ Other Information Related to GPIA— Directors and Executive Officers—Antonio Bonchristiano ”.

Andrew Fleiss

Mr. Fleiss currently serves as a Managing Director of GP Investments and has led the team structuring a transaction with and performing due diligence on Rimini Street. He has 19 years of experience in principal investments and investment banking. Since joining GP Investments in 2015, Mr. Fleiss has been focused primarily on identifying a suitable consumer or services investment opportunity for GPIA to effectuate a business combination. Prior to joining GP Investments, Mr. Fleiss worked as a Principal at Liberty Partners, a private equity firm focused on control investments in manufacturing, services, healthcare and education companies. Prior to joining Liberty Partners, Mr. Fleiss worked as an Associate in the investment banking division of UBS Warburg focused on equity and debt financings, and mergers and acquisitions, for healthcare companies. Mr. Fleiss holds a bachelor’s degree from Amherst College.

We believe Mr. Fleiss is qualified to serve as a member of our board of directors because of his extensive experience in private equity and investment banking.

Corporate Governance Guidelines and Code of Business Conduct

Our board of directors will adopt Corporate Governance Guidelines that address items such as the qualifications and responsibilities of our directors and director candidates and corporate governance policies and standards applicable to us in general. In addition, our board of directors will adopt a Code of Business Conduct and Ethics that applies to all of our employees, officers and directors, including our Chief Executive Officer, Chief Financial Officer, and other executive and senior financial officers. The full text of our Corporate Governance Guidelines and Code of Business Conduct and Ethics will be posted on the Corporate Governance portion of the investor relations page of RMNI’s website at www.riministreet.com. We will post amendments to our Code of Business Conduct and Ethics or waivers of our Code of Business Conduct and Ethics for directors and executive officers on the same website.

Board Composition

Our business affairs will be managed under the direction of our board of directors. Our board of directors will consist of nine members, six of whom will qualify as independent within the meaning of the independent director guidelines of NASDAQ. Messrs. Ravin, Shay and Bonchristiano are not considered independent.

Our board of directors will be divided into three staggered classes of directors. At each annual meeting of stockholders, a class of directors will be elected for a three-year term to succeed the same class whose term is then expiring, as follows:

the Class I directors will be [•], [•] and [•], and their terms will expire at the annual meeting of stockholders to be held in 2018;
the Class II directors will be [•], [•] and [•], and their terms will expire at the annual meeting of stockholders to be held in 2019; and
the Class III directors will be [•], [•] and [•], and their terms will expire at the annual meeting of stockholders to be held in 2020.

Our articles of incorporation and bylaws will provide that the number of directors, which will be fixed at nine members, may be increased or decreased from time to time by a resolution of our board of directors. Each director’s term continues until the election and qualification of his successor, or his earlier death, resignation, or removal. Any increase or decrease in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the total number of directors. This classification of our board of directors may have the effect of delaying or preventing changes in control of RMNI.

Each of our executive officers will serve at the discretion of our board of directors and will hold office until his or her successor is duly appointed and qualified or until his or her earlier resignation or removal. There are no family relationships among any of our directors or executive officers.

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Director Independence

In connection with the business combination, RMNI’s common stock will be listed on NASDAQ. Under the rules of NASDAQ, independent directors must comprise a majority of a listed company’s board of directors. In addition, the rules of NASDAQ require that, subject to specified exceptions, each member of a listed company’s audit, compensation, and nominating and corporate governance committees be independent. Under the rules of NASDAQ, a director will only qualify as an “independent director” if, in the opinion of that company’s board of directors, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. Audit committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act. Compensation committee members must also satisfy the independence criteria set forth in Rule 10C-1 under the Exchange Act.

In order to be considered independent for purposes of Rule 10A-3 and Rule 10C-1, a member of an audit committee or compensation committee of a listed company may not, other than in his or her capacity as a member of the committee, the board of directors, or any other board committee: (1) accept, directly or indirectly, any consulting, advisory, or other compensatory fee from the listed company or any of its subsidiaries; or (2) be an affiliated person of the listed company or any of its subsidiaries.

We have undertaken a review of the independence of each director and considered whether each director has a material relationship with us that could compromise his or her ability to exercise independent judgment in carrying out his or her responsibilities. As a result of this review, we determined that Messrs. Acosta, Ashburn, Capelli, Murray and Fleiss and Ms. Taylor, representing six of RMNI’s nine directors, will be considered “independent directors” as defined under the applicable rules and regulations of the SEC and the listing requirements and rules of NASDAQ.

Lead Independent Director

Our board of directors will adopt corporate governance guidelines that provide that one of our independent directors should serve as our Lead Independent Director at any time when the Chairman of our board of directors is not an independent director. Because Mr. Ravin will serve as the Chairman, we will appoint Ms. Taylor to serve as its Lead Independent Director. As Lead Independent Director, Ms. Taylor will communicate with our Chief Executive Officer, and serve as a liaison between members of our management and our independent directors.

Committees of the Board of Directors

Our board of directors will have the authority to appoint committees to perform certain management and administrative functions. Our board of directors will have an audit committee, a compensation committee, and a nominating and corporate governance committee, each of which will have the composition and responsibilities described below. Members serve on these committees until their resignation or until otherwise determined by our board of directors.

Audit Committee

Messrs. Acosta, Murray and Fleiss and Ms. Taylor, each of whom will be a non-employee member of our board of directors, will comprise our audit committee. Mr. Acosta will be the chairman of our audit committee. We have determined that each of the members of our audit committee will satisfy the requirements for independence and financial literacy under the rules of NASDAQ and the SEC. We have also determined that Mr. Acosta will qualify as an “audit committee financial expert” as defined in the SEC rules and will satisfy the financial sophistication requirements of NASDAQ. The audit committee will be responsible for, among other things:

selecting and hiring our registered public accounting firm;
supervising and evaluating the performance and independence of our registered public accounting firm;
approving the audit and audit fees and pre-approving any non-audit services to be performed by our registered public accounting firm;
reviewing our financial statements and related disclosures and reviewing our critical accounting policies and practices;
reviewing and discussing with management and the independent registered public accounting firm the results of our annual audit, our quarterly financial statements, and our publicly filed reports;

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preparing the audit committee report that the SEC requires in our annual proxy statement;
reviewing the adequacy and effectiveness of our internal control policies and procedures and our disclosure controls and procedures;
reviewing and discussing with management and the independent auditor, the overall adequacy and effectiveness of our legal, regulatory and ethical compliance programs;
reviewing and discussing with management and the independent auditor reports regarding compliance with applicable laws, regulations and internal compliance programs;
overseeing the internal audit function;
overseeing procedures for the treatment of complaints on accounting, internal accounting controls, or audit matters; and
reviewing and oversee any proposed related person transactions.

Our board of directors will adopt a written charter for the audit committee which is attached to this joint proxy statement/prospectus as Annex K.

Compensation Committee

Messrs. Ashburn, Capelli and Fleiss and Ms. Taylor, each of whom will be a non-employee member of our board of directors, will comprise our compensation committee. Ms. Taylor will be the chairman of our compensation committee. We have determined that each member of our compensation committee will meet the requirements for independence under the rules of NASDAQ and SEC rules and regulations, as well as Section 162(m) of the Code. The compensation committee will be responsible for, among other things:

reviewing and approving our Chief Executive Officer’s and other executive officers’ annual base salaries, incentive compensation plans, including the specific goals and amounts, equity compensation, employment agreements, severance arrangements and change in control agreements, and any other benefits, compensation or arrangements;
administering our equity compensation plans;
overseeing our overall compensation philosophy, compensation plans, and benefits programs; and
reviewing and evaluating director compensation.

Our board of directors will adopt a written charter for the compensation committee which is attached to this joint proxy statement/prospectus as Annex L.

Nominating and Corporate Governance Committee

Messrs. Ashburn, Capelli and Bonchristiano, each of whom will be a non-employee member of our board of directors, will comprise our nominating and corporate governance committee. Mr. Ashburn will be the chairman of our nominating and corporate governance committee. We have determined that each member of our nominating and corporate governance committee will meet the requirements for independence under the rules of NASDAQ. The nominating and corporate governance committee will be responsible for, among other things:

evaluating and making recommendations regarding the composition, organization, and governance of our board of directors and its committees;
evaluating and making recommendations regarding the creation of additional committees or the change in mandate or dissolution of committees;
reviewing and making recommendations with regard to our corporate governance guidelines and compliance with laws and regulations; and
reviewing and approving conflicts of interest of our directors and corporate officers, other than related person transactions reviewed by the audit committee.

Our board of directors will adopt a written charter for the nominating and corporate governance committee which is attached to this joint proxy statement/prospectus as Annex M.

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Compensation Committee Interlocks and Insider Participation

None of the members of our compensation committee is or has been an officer or employee of GPIA or Rimini Street. None of our executive officers currently serves, or in the past year has served, as a member of the compensation committee or director (or other board committee performing equivalent functions or, in the absence of any such committee, the entire board of directors) of any entity that has one or more executive officers serving on GPIA or Rimini Street’s compensation committee or board of directors.

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EXECUTIVE COMPENSATION IN RELATION TO GPIA

Other than as described below, none of GPIA’s executive officers or directors has received any cash or other compensation for services rendered on behalf of GPIA to date. We have agreed to pay an affiliate of the Sponsor a total of $10,000 per month for office space, utilities, secretarial support and administrative services. Upon consummation of the business combination, we will cease paying these monthly fees.

GPIA is not party to any agreements with its executive officers or directors that provide for benefits upon termination of employment or service.

We expect that any of the directors or members of GPIA’s management team who provide services to RMNI after consummation of the business combination will receive compensation in the form of consulting or management fees from RMNI or one of its affiliates in respect of those services, but the amounts of any such fees and the terms of any related arrangements have not yet been determined. We do not currently expect the amount of any such fees or the terms of any such arrangements to be determined until after consummation of the business combination.

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EXECUTIVE COMPENSATION IN RELATION TO RIMINI STREET

Unlike in certain other sections of this joint proxy statement/prospectus, in this section, references to “we”, the “Company”, “us” and “our” are references to Rimini Street, Inc.

Rimini Street’s named executive officers (our “Named Executive Officers”) for 2016, which consist of the person who served as our principal executive officer during 2016 and the next two most highly compensated executive officers who served as executive officers in 2016, are as follows:

Seth A. Ravin, our Chief Executive Officer;
Sebastian Grady, our President; and
Daniel B. Winslow, our Senior Vice President, General Counsel.

In addition, we have included compensation information for Doug Zorn, who served as our Chief Financial Officer during portions of 2015 and 2016. Mr. Zorn retired prior to December 31, 2016.

Year ended December 31, 2016 Summary Compensation Table

The following table presents summary information regarding the total compensation for services rendered in all capacities that was awarded to, earned by, and paid to each individual who served as our Chief Executive Officer at any time during 2016, which is our last completed fiscal year, our two other most highly compensated executive officers who were serving as executive officers at December 31, 2016, and one former executive officer who would have been one of our most highly compensation executive officers, but retired prior to December 31, 2016. These individuals are our Named Executive Officers for the year ended December 31, 2016.

Name and Principal Position
Year
Salary
Bonus
Option
Awards (1)
Non-Equity
Incentive
Plan Compensation (2)
All Other
Compensation (3)
Total
Seth Ravin
 
2016
 
$
300,000
 
 
 
 
 
$
278,400
 
$
94,387
 
$
672,787
 
Chief Executive Officer and Chairman of the Board
 
2015
 
 
298,958
 
 
 
$
565,837
 
 
332,698
 
 
18,201
 
 
1,215,694
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sebastian Grady
 
2016
 
 
275,000
 
 
 
 
 
 
259,050
 
 
10,533
 
 
544,583
 
President
 
2015
 
 
275,000
 
 
 
 
 
 
304,973
 
 
10,075
 
 
590,048
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Daniel Winslow
 
2016
 
 
300,000
 
$
250,000
(4)
 
 
 
104,650
 
 
11,550
 
 
666,200
 
Senior Vice President and General Counsel
 
2015
 
 
300,000
 
 
 
 
 
 
99,095
 
 
11,050
 
 
410,145
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Doug Zorn (5)
 
2016
 
 
238,333
 
 
1,500,000
(6)
 
 
 
 
 
 
 
1,738,333
 
Former Chief
Financial Officer
 
2015
 
 
97,500
 
 
 
 
 
 
 
 
145,135
(7)
 
242,635
 
(1) The amounts reported in the Option Awards column represent the grant date fair value of the stock options granted to the Named Executive Officers during the years ended December 31, 2015 and 2016 as computed in accordance with ASC Topic 718. The assumptions used in calculating the grant date fair value of the stock options reported in this column are set forth in the notes to our audited consolidated financial statements included in this prospectus. Note that the amounts reported in this column do not correspond to the actual economic value that may be received by the Named Executive Officers from the options.
(2) The amounts reported in the Non-Equity Incentive Plan Compensation represent amounts earned in 2015 and 2016 for all our Named Executive Officers under our Bonus Program.

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(3) Represents the following other compensation:
Name
Year
Life Insurance
Premiums
401(k)
Match
Reimbursed
Attorney
Fees(a)
Health
Costs(b)
Clothing(c)
Total
Seth Ravin
 
2016
 
$
450
 
 
 
$
81,424
 
$
12,513
 
 
 
$
94,387
 
 
 
2015
 
 
450
 
 
 
 
 
 
2,974
 
$
14,777
 
 
18,201
 
Sebastian Grady
 
2016
 
 
450
 
$
10,083
 
 
 
 
 
 
 
 
10,533
 
 
 
2015
 
 
450
 
 
9,625
 
 
 
 
 
 
 
 
10,075
 
Daniel Winslow
 
2016
 
 
450
 
 
11,100
 
 
 
 
 
 
 
 
11,550
 
 
 
2015
 
 
450
 
 
10,600
 
 
 
 
 
 
 
 
11,050
 
(a) Represents reimbursed attorney fees related to the negotiation of Mr. Ravin’s amended and restated employment agreement during 2016.
(b) Represents certain health expenses on business trips.
(c) Represents clothing for trial in 2015.
(4) Represents a special bonus earned by Mr. Winslow for work related to completion of the Credit Facility in 2016. We anticipate that this bonus will be paid in full upon completion of the business combination.
(5) Mr. Zorn served as our Chief Financial Officer from August 2015 through November 2016. Prior to his employment, Mr. Zorn worked as a consultant for us during 2015.
(6) Represents a special bonus earned by Mr. Zorn for work related to completion of the Credit Facility in 2016. We anticipate that this bonus will be paid in full upon completion of the business combination.
(7) Represents consulting fees paid to Mr. Zorn from January 2015 through August 2015 prior to rejoining us Chief Financial Officer as noted in footnote 5 above.

Non-Equity Incentive Plan Compensation

Our Named Executive Officers are eligible for incentive compensation under our Bonus Program that includes a quarterly performance element and/or an annual retention element.

The quarterly performance bonus is calculated by multiplying the individual’s quarterly target incentive amount by (i) the percentage of achievement of company performance factors and (ii) the percentage of achievement of individual factors.

Our company-level performance factors are aggregate client invoicing and aggregate expenses compared to plan and these are weighted 80% and 20%, respectively. With respect to individual factors, these generally are the individual’s achievement of individual goals and objectives for that quarter and the individual’s overall contribution to our success. For our Named Executive Officers (other than our Chief Executive Officer) individual achievement is determined by our Chief Executive Officer and for our Chief Executive Officer achievement is determined by our board of directors.

In addition, there is an annual retention bonus element that is substantially similar to the quarterly performance element. The annual retention bonus is calculated by multiplying the individual’s annual retention bonus target by (i) the percentage of achievement of company performance factors and (ii) the average of the individual performance for each quarter. As to the quarterly performance element, our company-level performance factors are aggregate client invoicing and aggregate expenses compared to plan, and these are weighted 80% and 20%, respectively.

In 2015 and 2016, our Named Executive Officers had annual target incentives, which with respect to Messrs. Ravin and Grady include both the quarterly performance bonus and the annual retention bonus and with respect to Mr. Winslow includes the quarterly performance bonus, as follows: (i) Seth A. Ravin, $300,000, (ii) Sebastian Grady, $275,000 and (iii) Daniel B. Winslow, $100,000. Mr. Zorn did not participate in the Bonus Program in 2015 and 2016.

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Year ended December 31, 2016 Outstanding Equity Awards at Fiscal Year-End

The following table presents, for each of our Named Executive Officers, information regarding outstanding stock options and other equity awards held as of December 31, 2016. Mr. Zorn had no outstanding equity awards as of December 31, 2016.

Named Executive Officer
Grant
Date
Option Awards—
Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable
Option Awards—
Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable
Option Awards—
Option Exercise
Price
Option Awards—
Option Expiration
Date
Seth A. Ravin
 
1/21/15
(1)
 
800,000
 
 
400,000
 
$
1.12
 
 
1/21/25
 
Sebastian Grady
 
7/1/11
(2)
 
1,084,335
 
 
 
 
0.28
 
 
7/1/21
 
 
 
7/1/11
(2)
 
4,690,665
 
 
 
 
0.28
 
 
7/1/21
 
 
 
7/1/11
(3)
 
1,125,000
 
 
 
 
0.28
 
 
7/1/21
 
 
 
10/14/14
(4)
 
172,412
 
 
86,206
 
 
1.16
 
 
10/14/24
 
 
 
10/14/14
(4)
 
27,588
 
 
13,794
 
 
1.16
 
 
10/14/24
 
Daniel B. Winslow
 
10/07/13
(5)
 
272,727
 
 
 
 
1.10
 
 
10/7/23
 
 
 
10/07/13
(5)
 
227,273
 
 
 
 
1.10
 
 
10/7/23
 
 
 
10/14/14
(4)
 
 
 
66,667
 
 
1.16
 
 
10/14/24
 
 
 
10/14/14
(4)
 
133,333
 
 
 
 
1.16
 
 
10/14/24
 
(1) One-third of the shares subject to the option vest on each of January 1, 2016, January 1, 2017 and January 1, 2018.
(2) One-third of the shares subject to the option vested on each of January 4, 2012, January 4, 2013 and January 4, 2014.
(3) One-third of the shares subject to the option vested on each of April 1, 2012, April 1, 2013 and April 1, 2014.
(4) One-third of the shares subject to the option vest on each of October 1, 2015 and each one-year anniversary thereafter, subject to continued service.
(5) One-third of the shares subject to the option vested on September 30, 2014 and each one-year anniversary thereafter, subject to continued service.

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Executive Employment Agreements

Seth A. Ravin

We entered into an employment agreement on May 1, 2009, with Seth A. Ravin, our Chief Executive Officer. The employment agreement was updated in June 2013, September 2013, and January 2017. The employment agreement has no specific term and provides for at-will employment. Mr. Ravin’s current annual base salary is $300,000, and he is eligible for annual target bonus equal to the greater of $300,000 or his then-current annual base salary, with 75% of such target bonus earned and paid on a quarterly basis and 25% of such target bonus earned and paid on an annual basis, in each case, subject to achievement of performance metrics.

If Mr. Ravin’s employment is terminated either by us other than for “cause” (as defined below), death, or disability or by him for “good reason” (as defined below), then, in each case, he receives: (i) 100% acceleration of all outstanding unvested equity awards issued under any equity incentive plan approved by our board of directors; (ii) continued payments of his then-current annual base salary and target bonus for 24 months; and (iii) COBRA reimbursements for him and his covered dependents for up to 24 months generally.

If Mr. Ravin’s employment is terminated within 24 months following a “change of control” (as defined below) either by us other than for “cause” (as defined below), death, or disability or by him for “good reason” (as defined below), then, in each case, he receives: (i) 100% acceleration of all outstanding unvested equity awards issued under any equity incentive plan approved by our board of directors; (ii) a lump sum payment of two times his then-current annual base salary and annual target bonus; and (iii) COBRA premiums for him and his covered dependents for 24 months generally.

Severance benefits in all cases are subject to Mr. Ravin executing and not revoking a release of claims and to his resignation from all of his employment with us.

For purposes of the employment agreement with Mr. Ravin, “cause” means generally:

his failure to perform the duties and responsibilities of his position after he has been provided a written demand for performance and a cure period of 30 days;
any act of gross negligence or willful misconduct taken by him in connection with his employment, and in the case of gross negligence such act had a material adverse effect on our business or reputation;
any act of dishonesty or moral turpitude constituting fraud or embezzlement or otherwise adversely affecting our business or reputation;
his conviction of, or plea of nolo contendere to, a felony (other than minor traffic-related offenses);
his indictment for a criminal violation of state or federal securities law; or
any breach by him of any covenants set forth in the employment agreement which is not cured within 15 days of receipt of a written notice of breach.

For purposes of the employment agreement with Mr. Ravin, “good reason” means generally a resignation within 90 days following the expiration of the cure period (described below) following the occurrence of any of the following without his express written consent:

a material reduction of his duties, authority or responsibilities;
a material reduction in his base compensation other than pursuant to a reduction that also is applied to substantially all of our other executives;
a material change in geographic location at which he must perform services (in other words, a change in geographic location of more than 50 miles); or
any material breach by us of the employment agreement.

Mr. Ravin must provide notice of the facts constituting the grounds for good reason within 90 days of the event he believes constitutes “good reason” and a reasonable cure period of not less than 30 days.

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For purposes of the employment agreement with Mr. Ravin, “change of control” means generally:

a change in our ownership, which is deemed to occur on the date that any one person, or more than one person acting as a group, acquires ownership of our stock that, together with the stock held by such person, constitutes more than 50% of our total voting power, except for a financing transaction approved by our board;
a change in our effective control, which is deemed to occur on the date that a majority of members of our board of directors is replaced during any 12-month period by directors whose appointment or election was not endorsed by a majority of the members of our board of directors prior to the date of appointment or election; or
a change in the ownership of a substantial portion of our assets, which is deemed to occur on the date that any person, or more than one person acting as a group, acquires assets from us that have a total gross fair market value equal to or more than 50% of the total gross fair market value of all of our assets immediately prior to such acquisition or acquisitions.

Sebastian Grady

We entered into an employment agreement as of January 1, 2011, with Sebastian Grady, our President. The employment agreement was updated in May 2013 and January 2015. The employment agreement has no specific term and provides for at-will employment. Mr. Grady’s current annual base salary is $275,000, and he is eligible for target incentive payments equal to $51,563 each quarter, and an annual retention incentive of $68,750, in each case, subject to achievement of performance metrics.

Mr. Grady’s employment agreement included potential severance and change in control-related benefits. Eligibility for these benefits expired in January 2014.

Daniel B. Winslow

We entered into an offer letter agreement on September 13, 2013 with Mr. Winslow, our Senior Vice President, General Counsel. The offer letter was updated as of October 2014. The offer letter agreement has no specific term and provides for at-will employment. Mr. Winslow’s current annual base salary is $300,000, and he is eligible for target incentive payments equal to $25,000 each quarter, subject to achievement of performance metrics.

Employee Benefit Plans and Stock Plans

2013 Equity Incentive Plan

In October 2013, our board of directors adopted, and our stockholders approved, the 2013 Equity Incentive Plan (the “2013 Plan”). Our 2013 Plan was most recently amended on October 27, 2016, and we expect to amend the 2013 Plan in connection with the business combination; this description includes such anticipated amendments. Our 2013 Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to our employees and any parent and subsidiary corporations’ employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and performance shares to our employees, directors and consultants and our parent and subsidiary corporations’ employees and consultants.

Authorized Shares. Following the expected amendment of the 2013 Plan in connection with the business combination, the total number of shares of our common stock reserved for issuance pursuant to the 2013 Plan will be equal to 19,905,958 shares plus any shares subject to awards granted under our 2007 Stock Plan that, after the date the 2013 Plan was adopted by our board of directors, expire or otherwise terminate without having been exercised in full and any shares issued pursuant to awards granted under our 2007 Stock Plan that are forfeited to or repurchased by us, (provided that the maximum number of shares of our common stock that may be added to our 2013 Plan pursuant to 2007 Plan (defined below) grants is 46,996,297 shares). In addition, following such amendment of the 2013 Plan, the number of shares available for issuance under the 2013 Plan will also include an annual increase on the first day of each fiscal year beginning in 2018, equal to the least of:

20,000,000 shares;

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5% of the outstanding shares of all classes of our common stock as of the last day of our immediately preceding fiscal year; or
such other amount as our board of directors may determine.

As of May 31, 2017, options to purchase 10,975,446 shares of our common stock were outstanding under our 2013 Plan.

Pursuant to the provision in the 2013 Plan providing for adjustments upon certain changes in our capitalization (discussed below), following the completion of the business combination, the numbers above will be adjusted according to an exchange ratio based on the “Merger Consideration Per Fully-Diluted Share” (as defined in the merger agreement).

Plan Administration. Our board of directors or one or more committees appointed by our board of directors administers the 2013 Plan. We anticipate that the compensation committee of the RMNI board of directors will administer our 2013 Plan following the completion of the business combination. In the case of awards intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Internal Revenue Code, the committee will consist of two or more “outside directors” within the meaning of Section 162(m). In addition, if we determine it is desirable to qualify transactions under the 2013 Plan as exempt under Rule 16b-3 of the Securities Exchange Act of 1934, as amended, such transactions will be structured to satisfy the requirements for exemption under Rule 16b-3 (including requirements pertaining to the composition of the Compensation Committee, if possible). Subject to the provisions of our 2013 Plan, the administrator has the power to administer the 2013 Plan, including but not limited to: the power to interpret the terms of the 2013 Plan and awards granted under it; to create, amend and revoke rules relating to the 2013 Plan, including creating sub-plans; and to determine the terms of the awards, including the exercise price, the number of shares subject to each such award, the exercisability of the awards, and the form of consideration, if any, payable upon exercise of an award. The administrator also has the authority to modify or amend existing awards to reduce or increase their exercise price, to allow participants the opportunity to transfer outstanding awards to a financial institution or other person or entity selected by the administrator, and to institute an exchange program by which outstanding awards may be surrendered in exchange for awards of the same type which may have a higher or lower exercise price or different terms, awards of a different type and/or cash.

Stock Options. Stock options may be granted under the 2013 Plan. The exercise price per share of any option granted under our 2013 Plan must at least be equal to the fair market value of a share of our common stock on the date of grant, and the term of any incentive stock option granted under our 2013 Plan may not exceed 10 years. However, with respect to any incentive stock option granted to a person who owns more than 10% of the voting power of all classes of our outstanding stock, the incentive stock option’s term must not exceed five years, and its exercise price per share must equal at least 110% of the fair market value of a share of our common stock on the grant date. The administrator will determine the methods of payment of the exercise price of an option, which may include cash, shares or other property acceptable to the administrator, as well as other types of consideration permitted by applicable law. After the termination of service of a participant, he or she generally may exercise the vested portion of his or her option for 6 months if termination is due to death or disability or for 30 days in all other cases. However, in no event may an option be exercised later than the expiration of its term. Subject to the provisions of our 2013 Plan, the administrator determines the other terms of the options.

Stock Appreciation Rights. Stock appreciation rights may be granted under our 2013 Plan. Stock appreciation rights generally allow the recipient to receive the appreciation in the fair market value of our common stock between the exercise date and the date of grant. Stock appreciation rights may not have a term exceeding 10 years. After the termination of service of an employee, director or consultant, he or she may exercise his or her stock appreciation right for the period of time stated in his or her award agreement. Generally, stock appreciation rights will be subject to the same post-termination exercise restrictions as options as described above. However, in no event may a stock appreciation right be exercised later than the expiration of its term. Subject to the provisions of our 2013 Plan, the administrator determines the other terms of stock appreciation rights, including when such rights become exercisable and whether to pay any appreciation in cash or with shares of our common stock, or a combination thereof.

Restricted Stock. Restricted stock may be granted under our 2013 Plan. Restricted stock awards are grants of shares of our common stock that vest in accordance with the terms and conditions established by the administrator. The administrator will determine the number of shares of restricted stock granted to any eligible employee, director or consultant and, subject to the provisions of our 2013 Plan, will determine the terms and conditions of such awards.

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The administrator may impose whatever conditions to vesting it determines to be appropriate (for example, the administrator may set restrictions based on the achievement of specific performance goals or continued service to us). Notwithstanding the foregoing, the administrator, in its sole discretion, may accelerate the time at which any restrictions will lapse or be removed. Recipients of restricted stock awards generally will have voting and dividend rights with respect to such shares upon grant without regard to vesting, unless the administrator provides otherwise. Shares of restricted stock that do not vest are subject to our right of repurchase or forfeiture.

Restricted Stock Units. Restricted stock units may be granted under our 2013 Plan. Restricted stock units are bookkeeping entries representing an amount equal to the fair market value of one share of our common stock. Subject to the provisions of our 2013 Plan, the administrator determines the terms and conditions of restricted stock units, including the number of restricted stock units granted, vesting criteria (which may include accomplishing specified performance criteria or continued service to us) and the form and timing of payment. Notwithstanding the foregoing, the administrator, in its sole discretion, may accelerate the time at which any restrictions will lapse or be removed.

Performance Units and Performance Shares. Performance units and performance shares may be granted under our 2013 Plan. Performance units and performance shares are awards that will result in a payment to a participant only if performance goals established by the administrator are achieved or the awards otherwise vest. The administrator will establish organizational or individual performance goals or other vesting criteria in its discretion, which, depending on the extent to which they are met, will determine the number and/or the value of performance units and performance shares to be paid out to participants.

After the grant of a performance unit or performance share, the administrator, in its sole discretion, may reduce or waive any performance criteria or other vesting provisions for such performance units or performance shares. Performance units shall have an initial dollar value established by the administrator prior to the grant date. Performance shares shall have an initial value equal to the fair market value of our common stock on the grant date. The administrator, in its sole discretion, may pay earned performance units or performance shares in the form of cash, in shares or in some combination thereof.

Outside Directors. Our 2013 Plan provides that all outside directors will be eligible to receive all types of awards (except for incentive stock options) under the 2013 Plan. Our 2013 Equity Incentive Plan provides that in any given year an outside director will not receive (i) cash-settled awards having a grant date fair value greater than $1,000,000, increased to $2,000,000 in connection with his or her initial service; and (ii) stock-settled awards having a grant date fair value greater than $1,000,000, increased to $2,000,000 in connection with his or her initial service, in each case, as determined under generally accepted accounting principles.

Non-Transferability of Awards. Unless the administrator provides otherwise, our 2013 Plan generally does not allow for the transfer of awards other than by will or the laws of descent or distribution, and only the recipient of an award may exercise an award during his or her lifetime.

Certain Adjustments. In the event of certain changes in our capitalization (which includes the business combination), to prevent diminution or enlargement of the benefits or potential benefits available under the 2013 Plan, the administrator will adjust the number and class of shares that may be delivered under the 2013 Plan and/or the number, class, and price of shares covered by each outstanding award, and the numerical share limits set forth in the 2013 Plan.

Dissolution or Liquidation. In the event of our proposed liquidation or dissolution, the administrator will notify participants as soon as practicable and all awards will terminate immediately prior to the consummation of such proposed transaction.

Merger or Change in Control. Our 2013 Plan provides that in the event of a merger or change in control, as defined under the 2013 Plan, each outstanding award will be treated as the administrator determines, except that if a successor corporation or its parent or subsidiary does not assume or substitute an equivalent award for any outstanding award, then such award will fully vest, all restrictions on such award will lapse, all performance goals or other vesting criteria applicable to such award will be deemed achieved at 100% of target levels and such award will become fully exercisable, if applicable, for a specified period prior to the transaction. The award will then terminate upon the expiration of the specified period of time. If the service of an outside director is terminated on or following a change of control, other than pursuant to a voluntary resignation that is not at the request of the

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successor corporation, his or her options and stock appreciation rights, if any, will vest fully and become immediately exercisable, all restrictions on his or her restricted stock and restricted stock units will lapse, all performance goals or other vesting requirements for his or her performance shares and units will be deemed achieved at 100% of target levels and all other terms and conditions met.

Amendment, Termination. The administrator has the authority to amend, suspend or terminate the 2013 Plan provided such action does not impair the existing rights of any participant. Following the expected amendment of our 2013 Plan in connection with the business combination, our 2013 Plan will automatically terminate in 2027, unless we terminate it sooner.

2007 Stock Plan

Our board of directors and our stockholders adopted our 2007 Stock Plan in May 2007, (as amended the “2007 Plan”). Our 2007 Plan was most recently amended September 30, 2013. The 2007 Plan was terminated in November 2013, and no additional awards will be granted under our 2007 Plan. However, the terms of the 2007 Plan will continue to govern any outstanding awards thereunder.

Authorized Shares. As of May 31, 2017, options to purchase 38,180,890 shares of our common stock remained outstanding under our 2007 Plan. Pursuant to the provision in the 2007 Plan providing for adjustments upon certain changes in our capitalization (discussed below), following the completion of the business combination, the number of shares subject to and the exercise price per share of such options will be adjusted according to an exchange ratio based on the Merger Consideration Per Fully-Diluted Share.

Plan Administration. Our board of directors or a committee appointed by our board of directors administers the 2013 Plan. We anticipate that the compensation committee of our board of directors will administer our 2013 Plan following the completion of the business combination. Subject to the provisions of our 2007 Plan, the administrator has the power to construe and interpret our 2007 Plan and any agreement thereunder. The administrator may, at any time, institute an exchange program by which outstanding awards may be surrendered or cancelled in exchange for awards that may have a lower exercise price or purchase price and different terms, awards of a different type, and/or cash, and/or by which the exercise or purchase price of outstanding awards is reduced. The administrator also has the authority to establish rules and regulations, including sub-plans for satisfying applicable laws in jurisdictions outside of the U.S.

Stock Options. The exercise price per share and term of a stock option granted under our 2007 Plan was determined by the administrator. The term of any option may not have exceeded 10 years, and the exercise price per share of any incentive stock option must have equaled at least 100% of the fair market value per share of our common stock on the date of grant. In addition, with respect to any incentive stock option granted to a person who owned more than 10% of the voting power of all classes of our outstanding stock, the incentive stock option’s term must not have exceeded five years and its exercise price per share must have equaled at least 110% of the fair market value of a share of our common stock on the grant date. The administrator determined the methods of payment of the exercise price of an option (which may be payable in cash or cash equivalents). After the termination of service of a participant, he or she generally may exercise the vested portion of his or her option for 6 months if termination is due to death or disability or for 30 days in all other cases. However, in no event may an option be exercised later than the expiration of its term.

Stock Purchase Rights. Stock purchase rights granted under our 2007 Plan are grants of rights to purchase shares of our common stock that are subject to various restrictions, including restrictions on transferability and forfeiture provisions. After the administrator determined that it would offer share purchase rights, it advised the purchaser of the terms, conditions and restrictions related to the offer, including the number of shares that the purchaser is entitled to purchase, the price to be paid and the time within which the purchaser must accept such offer. A purchaser accepted the offer by execution of a restricted share purchase agreement in the form determined by the administrator. Once the share purchase right is exercised, the purchaser will have rights equivalent to a shareholder, subject to such forfeiture conditions, rights of repurchase or other restrictions that the administrator may determine and set forth in the award agreement.

Non-Transferability of Awards. Unless the administrator provides otherwise, our 2007 Plan generally does not allow for the transfer of awards other than by will or the laws of descent or distribution, and only the recipient of an option may exercise an award during his or her lifetime.

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Certain Adjustments. In the event of certain changes in our capitalization (which includes the business combination), to prevent diminution or enlargement of the benefits or potential benefits available under the 2007 Plan, the administrator will adjust the number, class and price of shares covered by each outstanding award.

Dissolution or Liquidation. In the event of our proposed liquidation or dissolution, the administrator will notify participants as soon as practicable prior to the effective date of such proposed transactions and all awards will terminate immediately prior to the completion of such proposed transaction.

Merger or Change in Control. Our 2007 Plan provides that, in the event of a merger or change in control, as defined under our 2007 Plan, each outstanding award may be assumed or substituted for an equivalent award. In the event that awards are not assumed or substituted for, then the vesting of outstanding awards will be accelerated, and stock options will become exercisable in full prior to such transaction. In addition, if an option is not assumed or substituted in the event of a merger or change in control, the administrator will notify the participant that such award will be fully vested and exercisable for a specified period prior to the transaction, and such award will terminate upon the expiration of such period, unless otherwise determined by the administrator.

Amendment. The administrator has the authority to amend or alter the 2007 Plan at any time, provided that such amendment does not impair the rights of any award holder under outstanding awards without the award holder’s written consent.

Executive Incentive Compensation Plan

We expect to adopt an Executive Incentive Compensation Plan (the “Bonus Plan”). Our Bonus Plan will allow its administrator to provide cash incentive awards to selected employees, including our Named Executive Officers, based upon performance goals established by the administrator. Pursuant to the Bonus Plan, the administrator, in its sole discretion, will establish a target award for each participant and a bonus pool, with actual awards payable from such bonus pool, with respect to the applicable performance period.

Under our Bonus Plan, the administrator, in its sole discretion, will determine the performance goals applicable to awards, which goals will be able to include, without limitation: attainment of research and development milestones, bookings, business divestitures and acquisitions, cash flow, cash position, contract awards or backlog, customer renewals, customer retention rates from an acquired company, subsidiary, business unit or division, earnings (which will be able to include earnings before interest and taxes, earnings before taxes, and net taxes), earnings per share, expenses, gross margin, growth in stockholder value relative to the moving average of the S&P 500 Index or another index, installs, internal rate of return, market share, net income, net profit, net sales, new product development, new product invention or innovation, number of customers, operating cash flow, operating expenses, operating income, operating margin, overhead or other expense reduction, product defect measures, product release timelines, productivity, profit, retained earnings, return on assets, return on capital, return on equity, return on investment, return on sales, revenue, revenue growth, sales results, sales growth, stock price, time to market, total stockholder return, working capital, unadjusted or adjusted actual contract value, unadjusted or adjusted total contractual value, and individual objectives such as peer reviews or other subjective or objective criteria. The administrator will determine whether performance goals that include our financial results will be determined in accordance with GAAP, or whether such financial results will consist of non-GAAP financial measures, and the administrator will be able to adjust any actual results for one-time items or unbudgeted or unexpected items and/or payments when determining whether the performance goals have been met. The goals will be able to be on the basis of any factors the administrator determines relevant, and may be on an individual, divisional, business unit, segment, or company-wide basis. The performance goals will be able to differ from participant to participant and from award to award.

The administrator will have the discretion at any time to increase, reduce or eliminate a participant’s actual award, or increase, reduce or eliminate the amount allocated to the bonus pool for a particular performance period. The actual award will be able to be below, at or above a participant’s target award, in the administrator’s discretion. The administrator will be able to determine the amount of any reduction on the basis of such factors as it deems relevant, and it will not be required to establish any allocation or weighting with respect to the factors it considers.

Actual awards will be paid in cash in a single lump sum as soon as practicable after the end of the performance period during which they are earned and after they are approved by the administrator, but in no event later than the later of March 15 of the following calendar year or the 15th day of the third month of the following fiscal year. Unless otherwise determined by the administrator, to earn an actual award, a participant will be required to be employed by us (or an affiliate of ours) through the date the award is paid.

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Our board of directors or the administrator, in their sole discretion, will be able to alter, suspend, or terminate the Bonus Plan, provided such action does not, without the consent of the participant, alter or impair the rights or obligations under any award already earned by such participant.

401(k) Plan

We maintain a tax-qualified 401(k) retirement plan that provides eligible employees with an opportunity to save for retirement on a tax-advantaged basis. All participants’ interests in their deferrals are 100% vested when contributed. Pre-tax contributions are allocated to each participant’s individual account and are then invested in selected investment alternatives according to the participants’ directions. Our 401(k) plan is a “safe harbor” plan under the tax rules, which means that we make a matching contribution to all employees equal to 100% of all elective deferrals that do not exceed 4% of an employee’s compensation. The safe-harbor matching contribution is 100% vested. The 401(k) plan is intended to qualify under Sections 401(a) and 501(a) of the Internal Revenue Code. As a tax-qualified retirement plan, contributions to the 401(k) plan and earnings on those contributions are not taxable to the employees until distributed from the 401(k) plan, and all contributions are deductible by us when made.

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LIMITATION ON LIABILITY AND INDEMNIFICATION MATTERS IN
RELATION TO RIMINI STREET

As permitted under Nevada law, our amended and restated articles of incorporation and amended and restated bylaws provide that we will indemnify our directors and officers, and may indemnify our employees and other agents, to the fullest extent permitted by the Nevada Revised Statutes. Under Nevada law, a director or officer is not individually liable to the corporation or its stockholders or creditors for damages as a result of any act or failure to act unless it is proven that the director’s or officer’s act or failure to act constituted a breach of fiduciary duties and the breach involved intentional misconduct or a knowing violation of the law and was material to the cause of action. A director may be liable for an unlawful payment of dividends or other distribution.

Our amended and restated articles of incorporation does not eliminate a director’s or an officer’s fiduciary duties and in appropriate circumstances, equitable remedies, such as injunctive or other forms of non-monetary relief, remain available under Nevada law. This provision also does not affect a director’s responsibilities under any other laws, such as the federal securities laws or other state or federal laws. Under our amended and restated bylaws, we will also be empowered to purchase insurance on behalf of any person whom we are required or permitted to indemnify.

In addition to the indemnification required in our amended and restated articles of incorporation and amended and restated bylaws, we have entered into indemnification agreements with each of our current directors, officers, and some employees. These agreements provide indemnification for certain expenses and liabilities incurred in connection with any action, suit, proceeding, or alternative dispute resolution mechanism, or hearing, inquiry, or investigation that may lead to the foregoing, to which they are a party, or are threatened to be made a party, by reason of the fact that they are or were a director, officer, employee, agent, or fiduciary of our company, or any of our subsidiaries, by reason of any action or inaction by them while serving as an officer, director, agent, or fiduciary, or by reason of the fact that they were serving at our request as a director, officer, employee, agent, or fiduciary of another entity. In the case of an action or proceeding by, or in the right of, our company or any of our subsidiaries, no indemnification will be provided for any claim where a court determines that the indemnified party is prohibited from receiving indemnification. We believe that these bylaw provisions and indemnification agreements are necessary to attract and retain qualified persons as directors and officers. We also maintain directors’ and officers’ liability insurance.

The indemnification provisions in our amended and restated articles of incorporation and amended and restated bylaws and Nevada law limiting personal liability of directors or officers may discourage stockholders from bringing a lawsuit against directors or officers for breach of their fiduciary duties.

They may also reduce the likelihood of derivative litigation against directors and officers, even though an action, if successful, might benefit us and our stockholders. A stockholder’s investment may be harmed to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. Insofar as we may provide indemnification for liabilities arising under the Securities Act to our directors, officers, and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act, and is, therefore, unenforceable.

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DIRECTOR COMPENSATION OF RIMINI STREET DIRECTORS

Year Ended December 31, 2016 Director Compensation Table

The following table presents for each of the Rimini Street directors serving during the year ended December 31, 2016, other than those who are Named Executive Officers, information regarding their compensation paid to them for their services as directors for the year ended December 31, 2016. There were no stock awards made to non-executive directors in the year ended December 31, 2016.

Name (1)
Cash
($)
Stock
Option
Awards
Total
($)
Jack Acosta
 
50,000
 
 
 
 
50,000
 
Thomas Ashburn
 
50,000
 
 
 
 
50,000
 
Steve Capelli
 
50,000
 
 
 
 
50,000
 
Robin Murray (2)
 
50,000
 
 
 
 
50,000
 
Margaret (Peggy) Taylor
 
50,000
 
 
 
 
50,000
 
(1) During the year ended December 31, 2016, two directors, Messrs. Ravin and Shay, were also our employees. Messrs. Ravin and Shay did not receive compensation for their service as directors. Mr. Ravin’s executive compensation is discussed in the section titled “ Executive Compensation in Relation to Rimini Street ”.
(2) Fees payable for Mr. Murray’s service on Rimini Street’s board of directors are paid directly to Adams Street Partners LLC.

Cash Compensation

In 2016, each of Rimini Street’s non-employee directors received an annual fee of $50,000 in cash for serving on the Rimini Street board of directors. Rimini Street also reimbursed its directors for reasonable travel expenses associated with attending meetings of its board of directors and meetings of committees of its board of directors.

RMNI expects to adopt an outside director compensation policy in connection with the consummation of the business combination.

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BENEFICIAL OWNERSHIP OF SECURITIES

Security Ownership of Certain Beneficial Owners and Management of GPIA

The following table sets forth information regarding the beneficial ownership of GPIA common shares as of the record date and immediately following consummation of the business combination by:

each person known by GPIA to be the beneficial owner of more than 5% of GPIA’s 20,009,776 outstanding ordinary shares either on the record date or after the consummation of the business combination;
each of GPIA’s current executive officers and directors;
each person who will become an executive officer or a director of GPIA upon consummation of the business combination;
all of GPIA’s current executive officers and directors as a group; and
all of GPIA’s executive officers and directors as a group after the consummation of the business combination.

At any time prior to the extraordinary general meeting, during a period when they are not then aware of any material nonpublic information regarding GPIA or its securities, the GPIA initial shareholders, Rimini Street and/or their affiliates, may enter into a written plan to purchase GPIA securities pursuant to Rule 10b5-1 of the Exchange Act, and may engage in other public market purchases, as well as private purchases, of securities. The ownership percentages listed below do not include any such shares that may be purchased after the record date.

At any time prior to the extraordinary general meeting, during a period when they are not then aware of any material nonpublic information regarding GPIA or its securities, the GPIA initial shareholders, Rimini Street and/or its affiliates may purchase shares from institutional and other investors who vote, or indicate an intention to vote, against the business combination proposal, or execute agreements to purchase such shares from such investors in the future, or they may enter into transactions with such investors and others to provide them with incentives to acquire shares of GPIA’s ordinary shares or vote their shares in favor of the business combination proposal. The purpose of such share purchases and other transactions would be to increase the likelihood of satisfaction of the requirements that (i) holders of a majority of the shares who, being present and entitled to vote at the extraordinary general meeting and who do vote, vote in favor of the business combination proposal, the stock issuance proposal and the adjournment proposal, (ii) holders of at least two-thirds of the shares who, being present and entitled to vote at the extraordinary general meeting and who do vote, vote in favor of the domestication proposal and the organizational documents proposals, and (iii) the minimum available cash condition of $50,000,000 and the condition that the minimum trust account balance of $5,000,001 are satisfied. Any such share purchases and other transactions may thereby increase the likelihood of obtaining shareholder approval of the business combination. This may result in the completion of our first merger that may not otherwise have been possible. While the exact nature of any such incentives has not been determined as of the date of this joint proxy statement/prospectus, they might include, without limitation, arrangements to protect such investors or holders against potential loss in value of their shares, including the granting of put options and the transfer to such investors or holders of shares or rights owned by the GPIA initial shareholders for nominal value.

Entering into any such arrangements may have a depressive effect on GPIA ordinary shares. For example, as a result of these arrangements, an investor or holder may have the ability to effectively purchase shares at a price lower than market and may therefore be more likely to sell the shares it owns, either prior to or immediately after the extraordinary general meeting.

If such transactions are effected, the consequence could be to cause the business combination to be approved in circumstances where such approval could not otherwise be obtained. Purchases of shares by the persons described above would allow them to exert more influence over the approval of the business combination proposal and the other proposals and would likely increase the chances that such proposals would be approved. As of the date of this joint proxy statement/prospectus, there have been no such discussions and no agreements to such effect have been entered into with any such investor or holder. GPIA will file a Current Report on Form 8-K to disclose arrangements entered into or significant purchases made by any of the aforementioned persons that would affect the vote on the proposals to be put to the extraordinary general meeting or the redemption threshold. Any such report will include descriptions of any arrangements entered into or significant purchases by any of the aforementioned persons.

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Name and Address of Beneficial Owner
Beneficial Ownership on
Record Date (1)
Beneficial Ownership Upon
Consummation of the
Business Combination
Assuming No Public Shares
are Redeemed (2)
Beneficial Ownership Upon
Consummation of the
Business Combination
Assuming 90.5% of the
Outstanding Public Shares
are Redeemed (3)
Amount and
Nature of
Beneficial
Ownership
Approximate
Percentage
of
Outstanding
Ordinary
Shares (2)
Amount and
Nature of
Beneficial
Ownership
Percentage
of
Outstanding
Shares of
Common
Stock (2)
Amount and
Nature of
Beneficial
Ownership
Approximate
Percentage
of
Outstanding
Shares of
Common
Stock (3)
Current Directors and Executive Officers (4) :
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Antonio Bonchristiano
 
 
 
 
 
 
 
 
 
 
 
 
Fersen Lamas Lambranho
 
 
 
 
 
 
 
 
 
 
 
 
Christopher Brotchie (5)
 
20,000
 
*
 
20,000
 
*
 
20,000
 
*
Fernando d’Ornellas Silva (5)
 
20,000
 
*
 
20,000
 
*
 
20,000
 
*
Alexandre Hohagen (6)
 
20,000
 
*
 
20,000
 
*
 
20,000
 
*
All Directors and Executive Officers as a Group (5 Individuals)
 
60,000
 
*
 
60,000
 
*
 
60,000
 
*
 
 
 
 
 
 
 
 
 
 
 
 
 
Directors and Executive Officers of RMNI After Consummation of the Business Combination (4)
 
 
 
 
 
 
 
 
 
 
 
 
Seth A. Ravin (7)
 
 
 
13,865,271
 
19.7%
 
13,865,271
 
23.2%
Thomas C. Shay (8)
 
 
 
5,086,451
 
7.2%
 
5,086,451
 
8.5%
Jack L. Acosta (9)
 
 
 
246,162
 
*
 
246,162
 
*
Thomas Ashburn (10)
 
 
 
164,108
 
*
 
164,108
 
*
Steve Capelli (11)
 
 
 
123,081
 
*
 
123,081
 
*
Robin Murray (12)
 
 
 
23,590,055
 
33.5%
 
23,590,055
 
40.0%
Margaret (Peggy) Taylor (13)
 
 
 
246,162
 
*
 
246,162
 
*
Antonio Bonchristiano
 
 
 
 
 
 
Andrew Fleiss
 
 
 
 
 
 
All Directors and Executive Officers as a Group ( 16 Individuals) ( 14 )
 
 
 
49, 001 , 376
 
63.8 %
 
49, 001 , 376
 
74.1 %
 
 
 
 
 
 
 
 
 
 
 
 
 
Five Percent Holders:
 
 
 
 
 
 
 
 
 
 
 
 
Entities Affiliated with Adams Street Partners (15)
 
 
 
23,466,974
 
33.4%
 
23,466,974
 
39.4%
GPIA, LLC (16)
 
4,252,500
 
21.3%
 
9,252,500
 
6.1%
 
10,052,500
 
13.0%
Polar Asset Management Partners Inc. (17)
 
3,207,333
 
16.0%
 
3,207,333
 
4.6%
 
3,207,333
 
5.4%
Davidson Kempner Capital Management LP (18)
 
1,400,000
 
7.0%
 
1,400,000
 
2.0%
 
1,400,000
 
2.4%
TD Asset Management Inc. (19)
 
1,349,600
 
6.7%
 
1,349,600
 
1.9%
 
1,349,600
 
2.3%
Arrowgrass Capital Partners (US) LP (20)
 
1,316,500
 
6.6%
 
1,316,500
 
1.9%
 
1,316,500
 
2.2%
Silver Rock Financial GP LLC (21)
 
1,250,000
 
6.2%
 
1,250,000
 
1.8%
 
1,250,000
 
2.1%
Weiss Asset Management LP (22)
 
1,196,315
 
6.0%
 
1,196,315
 
1.7%
 
1,196,315
 
2.0%
* Less than one percent.

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(1) The percentage of beneficial ownership on the record date is calculated based on 20,009,776 outstanding ordinary shares as of such date. The amount of beneficial ownership does not reflect the ordinary shares issuable as a result of the warrants as such warrants may not be convertible within 60 days. Unless otherwise indicated, GPIA believes that all persons named in the table have sole voting and investment power with respect to all ordinary shares beneficially owned by them.
(2) The percentage of beneficial ownership upon consummation of the business combination is presented based upon the beneficial ownership of ordinary shares of GPIA as of the record date and is calculated based on 70,193,613 outstanding common shares, assuming (i) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement, (ii) that the Sponsor does not subscribe for any common shares pursuant to its equity commitment at or prior to the consummation of the business combination and (iii) that no public shareholders exercise their redemption rights. Unless otherwise indicated, GPIA believes that all persons named in the table have sole voting and investment power with respect to all ordinary shares beneficially owned by them upon consummation of the business combination.
(3) The percentage of beneficial ownership upon consummation of the business combination is calculated based on 59,488,556 outstanding common shares, assuming (i) that RMNI issues 50,183,837 shares of RMNI common stock to the former equityholders of Rimini Street pursuant to the merger agreement, (ii) that the Sponsor subscribes for 3,500,000 GPIA ordinary shares pursuant to its equity commitment at or prior to the consummation of the business combination and (iii) that holders of 14,205,056 GPIA ordinary shares (or 90.5% of the outstanding public shares) (being our estimate of the maximum number of GPIA public shares that could be redeemed in order for GPIA to have $50,000,000 of available cash upon consummation of the first merger, after taking into account the Sponsor’s maximum equity commitment of $35,000,000). Unless otherwise indicated, GPIA believes that all persons named in the table have sole voting and investment power with respect to all ordinary shares beneficially owned by them upon consummation of the business combination.
(4) The business address of each of the individuals is 150 E. 52nd Street, Suite 5003, New York, NY 10022.
(5) Based on information contained in a Form 3 filed on May 19, 2015.
(6) Based on information contained in a Form 3 filed on December 28, 2015.
(7) Consists of (i) 13,668,342 shares of RMNI common stock held by Seth A. Ravin, Trustee of the SAR Trust U/A/D August 30, 2005, and (ii) 196,929 shares of RMNI common stock issuable upon exercise of options exercisable within 60 days of the record date.
(8) Consists of (i) 4,684,387 shares of RMNI common stock and (ii) 402,065 shares of RMNI common stock issuable upon exercise of options exercisable within 60 days of the record date.
(9) Consists of 246,162 shares of RMNI common stock issuable upon exercise of options exercisable within 60 days of the record date.
(10) Consists of 164,108 shares of RMNI common stock issuable upon exercise of options exercisable within 60 days of the record date.
(11) Consists of 123,081 shares of RMNI common stock issuable upon exercise of options exercisable within 60 days of the record date.
(12) Consists of (i) shares of RMNI common stock listed in footnote (15) below, which are held by entities affiliated with Adams Street Partners and (ii) 123,081 shares of RMNI common stock issuable upon exercise of options exercisable within 60 days of the record date. Mr. Murray, one of Rimini Street’s directors (and, immediately after the consummation of the business combination, one of RMNI’s directors), is a partner with Adams Street Partners, LLC.
(13) Consists of 246,162 shares of RMNI common stock issuable upon exercise of options exercisable within 60 days of the record date.
(14) Consists of (i) 42,352,452 shares of RMNI common stock and (ii) 6,648,924 shares of RMNI common stock issuable upon exercise of options exercisable within 60 days of the record date.
(15) Consists of (i) 4,384,500 shares of RMNI common stock held by Adams Street 2007 Direct Fund, L.P. (“AS 2007”), (ii) 4,942,054 shares of RMNI common stock held by Adams Street 2008 Direct Fund, L.P. (“AS 2008”), (iii) 4,329,990 shares of RMNI common stock held by Adams Street 2009 Direct Fund, L.P. (“AS 2009”), (iv) 3,949,083 shares of RMNI common stock held by Adams Street Venture/Growth Fund VI LP (“VG VI”), (v) 1,771,516 shares of RMNI common stock held by Adams Street 2014 Direct Fund LP (“AS 2014”), (vi) 1,359,839 shares of RMNI common stock held by Adams Street 2015 Direct Venture/Growth Fund LP (“AS 2015”), (vii) 1,342,688 shares of RMNI common stock held by Adams Street 2016 Direct Venture/Growth Fund LP (“AS 2016”), (viii) 1,302,420 shares of RMNI common stock held by Adams Street 2013 Direct Fund LP (“AS 2013”) and (ix) 84,884 shares of RMNI common stock subject to a warrant exercisable within 60 days of the record date. The shares owned by AS 2007, AS 2008, AS 2009, VG VI, AS 2013, AS 2014, AS 2015 and AS 2016 may be deemed to be beneficially owned by Adams Street Partners, LLC, the managing member of the general partner of each of AS 2007, AS 2008 and AS 2009 and the managing member of the general partner of the general partner of each of VG VI, AS 2013, AS 2014, AS 2015 and AS 2016. Thomas S. Bremner, Jeffrey T. Diehl, Elisha P. Gould III, Robin P. Murray, Fred Wang and Michael R. Zappert, each of whom is a partner of Adams Street Partners, LLC (or a subsidiary thereof) may be deemed to have shared voting and investment power over the shares owned by AS 2007, AS 2008, AS 2009, VG VI, AS 2013, AS 2014, AS 2015 and AS 2016. Adams Street Partners, LLC and Thomas S. Bremner, Jeffrey T. Diehl, Elisha P. Gould III, Robin P. Murray, Fred Wang and Michael R. Zappert disclaim beneficial ownership of these shares except to the extent of their pecuniary interest therein. The shares owned by AS 2007, AS 2008, AS 2009, VG VI, AS 2013, AS 2014, AS 2015 and AS 2016 are aggregated for purposes of reporting share ownership information. Together, the aforementioned funds beneficially hold more than 5% of the capital stock of Rimini Street (and will, immediately after consummation of the business combination, hold more than 5% of the capital stock of RMNI). Robin Murray, who is a member of Rimini Street’s board of directors (and will, immediately after consummation of the business combination, be a member of the RMNI board of directors), is a partner of Adams Street Partners, LLC (or a subsidiary thereof). The business address of the foregoing entities and individual is One North Wacker Drive, Suite 2200, Chicago, Illinois 60606.
(16) The Sponsor is GPIA, Ltd. The sole member of GPIA, LLC is GPIC, Ltd. Mr. Alvario Lopes da Silva Neto is an officer of the Sponsor and has sole voting and investment power over the shares held by the Sponsor. GPIA, LLC is controlled by GP Investments, Ltd., an affiliate of the Sponsor. Accordingly each of the foregoing entities and persons may be deemed to share beneficial ownership of such ordinary shares. The business address of GPIA, LLC is 4001 Kennett Pike, Suite 302, Wilmington, Delaware 19807. The business address of GP Investments, Ltd and GPIC, Ltd. Is 129 Front Street HM12, Suite 4, Penthouse, Hamilton, Bermuda. The business address of Mr. Alvaro Lopes da Silva Neto is 150 E 52nd Street, Suite 5003, New York, NY 10022. Information regarding this beneficial owner is furnished in reliance upon its Schedule 13G filed with the SEC on February 5, 2016.
(17) The business address of Polar Asset Management Partners Inc. is 401 Bay Street, Suite 1900, PO Box 19, Toronto, Ontario M5H 2Y4. Polar Asset Management Partners Inc. serves as the investment manager to Polar Multi Strategy Master Fund. Information regarding this beneficial owner is furnished in reliance upon its Schedule 13G filed with the SEC on June 19, 2017.

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(18) Each of Davidson Kempner Partners, Davidson Kempner Institutional Partners, L.P., Davidson Kempner International, Ltd., Davidson Kempner Capital Management LP, Thomas L. Kempner and Jr., Robert J. Brivio, Jr. may be deemed to share beneficial ownership of some or all of such ordinary shares. Thomas L. Kempner, Jr. and Robert J. Brivio, Jr., through Davidson Kempner Capital Management L.P., are responsible for the voting and investment decisions relating to the securities held by Davidson Kempner Partners, Davidson Kempner Institutional Partners, L.P. and DKIP and Davidson Kempner International, Ltd. The business address of the foregoing entities and individuals is 520 Madison Avenue, 30th Floor, New York, NY 10022. Information regarding this beneficial owner is furnished in reliance upon its Schedule 13G filed with the SEC on June 1, 2015.
(19) TD Asset Management Inc. beneficially owns 1,349,400 ordinary shares and TDAM USA Inc. beneficially owns 200 ordinary shares, collectively they may be deemed to beneficially own 1,349,600 ordinary shares. The business address of TD Asset Management Inc. and TDAM USA Inc. is 161 Bay Street, 35th Floor, Toronto, Ontario M5J 2T2. Information regarding this beneficial owner is furnished in reliance upon its Schedule 13G filed with the SEC on February 8, 2017.
(20) The business address of Arrowgrass Capital Partners (US) LP. is 1330 Avenue of the Americas, 32nd Floor, New York, NY 10019. Arrowgrass Capital Partners (US) LP serves as the investment manager to Arrowgrass Master Fund Ltd. and Arrowgrass Customised Solutions Limited. Arrowgrass Capital Services (US) Inc. serves as the general partner of Arrowgrass Capital Partners (US) LP. Information regarding this beneficial owner is furnished in reliance upon its Schedule 13G filed with the SEC on February 14, 2017.
(21) Silver Rock Financial LP (“SRF-LP”) has the exclusive power to vote and dispose of the 1,250,000 ordinary shares of GPIA referred to above. Mr. Carl Meyer is the sole member of Silver Rock Financial GP LLC (“SRF-GP”) and, as a result, controls the investment activities of SRF-GP and SRF-LP. The business address of the foregoing entities and individuals is 1250 Fourth Street, Suite 550, Santa Monica, CA 90401. Information regarding this beneficial owner is furnished in reliance upon its Schedule 13G filed with the SEC on June 21, 2016.
(22) Weiss Asset Management LP, WAM GP LLC and Andrew M. Weiss, Ph.D. beneficial beneficially 1,196,315 ordinary shares and BIP GP LLC beneficially owns 747,619 ordinary shares. Beneficial ownership of ordinary shares reported for BIP GP LLC include shares beneficially owned by a private investment partnership (the “WAM Partnership”) of which BIP GP is the sole general partner. Weiss Asset Management LP is the sole investment manager to the WAM Partnership. WAM GP LLC is the sole general partner of Weiss Asset Management LP. Andrew M. Weiss Ph.D. is the managing member of WAM GP LLC and BIP GP LLC. Beneficial ownership of ordinary shares reported for WAM GP LLC, Andrew M. Weiss Ph.D and Weiss Asset Management LP include ordinary shares beneficially owned by the WAM Partnership and reported for BIP GP LLC. Information regarding this beneficial owner is furnished in reliance upon its Schedule 13G filed with the SEC on February 14, 2017. The business address of the foregoing entities and individuals is 222 Berkeley St. 16th Floor, Boston, MA 02116.

GPIA’s initial shareholders, including certain of its directors, beneficially own 20% of its issued and outstanding ordinary shares as of the record date. Because of the ownership block held by GPIA’s initial shareholders, such individuals may be able to effectively exercise control over all matters requiring approval by GPIA’s shareholders, including the election of directors and approval of significant corporate transactions other than approval of its initial business combination.

In connection with our initial public offering, the founder shares were placed into an escrow account maintained in New York, New York by Continental Stock Transfer & Trust Company, acting as escrow agent. Subject to certain limited exceptions, these founder shares will not be transferred, assigned or sold until released from escrow on the date that is one year after the date of the consummation of our initial business combination or earlier if, subsequent to our business combination, (i) the last sale price of our ordinary shares equals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing at least 150 days after our initial business combination or (ii) we consummate a subsequent liquidation, merger, share exchange or other similar transaction which results in all of our shareholders having the right to exchange their ordinary shares for cash, securities or other property.

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CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS

GP Investments Acquisition Corp.

Existing GPIA Related Party Policy

Prior to the consummation of our initial public offering, we adopted a code of ethics requiring us to avoid, wherever possible, all conflicts of interests, except under guidelines or resolutions approved by our board of directors (or the appropriate committee of our board of directors) or as disclosed in our public filings with the SEC. Under our code of ethics, conflict of interest situations will include any financial transaction, arrangement or relationship (including any indebtedness or guarantee of indebtedness) involving GPIA. A form of the code of ethics that was adopted prior to the consummation of our initial public offering was filed as an exhibit to the registration statement relating to our initial public offering.

In addition, our audit committee, pursuant to a written charter, is responsible for reviewing and approving related party transactions to the extent that we enter into such transactions. An affirmative vote of a majority of the members of the audit committee present at a meeting at which a quorum is present will be required in order to approve a related party transaction. A majority of the members of the entire audit committee will constitute a quorum. Without a meeting, the unanimous written consent of all of the members of the audit committee will be required to approve a related party transaction. A form of the audit committee charter that we adopted prior to the consummation of our initial public offering is filed as an exhibit to the registration statement relating to our initial public offering. We also require each of our directors and executive officers to complete a directors’ and officers’ questionnaire that elicits information about related party transactions.

These procedures are intended to determine whether any such related party transaction impairs the independence of a director or presents a conflict of interest on the part of a director, employee or officer.

To further minimize conflicts of interest, we have agreed not to consummate an initial business combination with an entity that is affiliated with any of the Sponsor, officers or directors unless we, or a committee of independent directors, have obtained an opinion from an independent investment banking firm which is a member of FINRA that our initial business combination is fair to our company from a financial point of view. Furthermore, no finder’s fees, reimbursements or cash payments will be made to the Sponsor, officers or directors, or our or their affiliates, for services rendered to us prior to or in connection with the completion of our initial business combination, other than the following payments, none of which will be made from the proceeds of our offering held in the trust account prior to the completion of our initial business combination:

repayment of a loan and advances of an aggregate of $100,000 made to GPIA by the Sponsor, which was repaid upon consummation of our initial public offering;
repayment of an advance of $86,321 to the Sponsor, which was repaid upon consummation of our initial public offering;
payment to an affiliate of the Sponsor for office space, utilities and secretarial support for a total of $10,000 per month; and
reimbursement for any reasonable out-of-pocket expenses related to identifying, investigating and consummating an initial business combination, and repayment of loans on such terms as determined by GPIA from time to time, made by the Sponsor or certain of GPIA’s officers and directors to finance transaction costs in connection with an intended initial business combination, provided, that, if GPIA does not consummate an initial business combination, a portion of the working capital held outside the trust account may be used by GPIA to repay such loaned amounts so long as no proceeds from the trust account are used for such repayment. As of March 31 2017, the Sponsor has committed to provide loans to GPIA up to an aggregate of $3,400,000 in order to finance transaction costs in connection with a business combination. The loans are evidenced by a promissory note, are non-interest bearing, unsecured and will only be repaid upon the completion of a business combination. As of March 31, 2017, $2,682,893 was outstanding under the loans. Up to $1,000,000 of promissory notes or other working capital loans may be convertible into warrants of RMNI at a price of $1.00 per warrant at the option of the Sponsor.

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GPIA Related Person Transactions

Founder Shares

On March 2, 2015, GPIA issued 4,312,500 ordinary shares to GPIA, LLC, a company whose sole member is the Sponsor (which are referred to as the founder shares), for an aggregate purchase price of $25,000. The 4,312,500 founder shares included an aggregate of up to 562,500 shares subject to forfeiture by the initial shareholders (or their permitted transferees) on a pro rata basis depending on the extent to which the underwriter’s over-allotment was exercised. As a result of the underwriter’s election to exercise its full over-allotment option to purchase 2,250,000 Units on May 26, 2015, 562,500 founder shares were no longer subject to forfeiture. The founder shares are identical to the public shares included in the units sold in our initial public offering, except that (1) the founder shares are subject to certain transfer restrictions, as described in more detail below, and (2) the initial shareholders have agreed in the insider letter agreement (i) to waive their redemption rights with respect to the founder shares and public shares purchased during or after our initial public offering in connection with the completion of a business combination and (ii) to waive their rights to liquidating distributions from the trust account with respect to the founder shares if GPIA fails to complete a business combination by November 27, 2017.

Administrative Services Fee

Commencing on May 19, 2015, GPIA has agreed to pay an affiliate of the Sponsor a monthly fee of $10,000 for general and administrative services. For the year ended December 31, 2016 and for the period from January 28, 2015 (inception) through December 31, 2015, GPIA incurred $120,000 and $80,000, respectively, of administrative service fees, with $60,000 and $10,000, respectively, being included in accounts payable and accrued expenses in the balance sheet of GPIA as of December 31, 2016 and December 31, 2015, respectively. For the three months ended March 31, 2017 and March 31, 2016, GPIA incurred $30,000 and $30,000, respectively, of administrative service fees, with $90,000 and $60,000, respectively, being included in accounts payable and accrued expenses in the balance sheet as of March 31, 2017 and March 31, 2016, respectively. Upon completing of the business combination, these monthly service fees for general and administrative services will cease.

Promissory Notes—Related Party

GPIA entered into a promissory note with the Sponsor, pursuant to which the Sponsor loaned GPIA $100,000 to be used for the payment of costs associated with our initial public offering. The Promissory Note was non-interest bearing, unsecured and due on the earlier of December 31, 2015 or the closing of our initial public offering. The promissory note was repaid upon consummation of our initial public offering.

In May 2016, the Sponsor committed to provide loans to GPIA up to an aggregate of $500,000 in order to finance transaction costs in connection with a business combination. The Sponsor and GPIA have amended the commitment from time to time to increase the Sponsor’s commitment to provide loans to GPIA. In February 2017, GPIA and the Sponsor amended the commitment such that the Sponsor has committed to provide loans to GPIA up to a total aggregate amount of $3,400,000. The loans are evidenced by a promissory note, are non-interest bearing, unsecured and will only be repaid at the earliest upon the completion of a business combination. As of March 31, 2017, $2,682,893 was outstanding under the loans.

Other than as described above, the Sponsor or an affiliate of the Sponsor or certain of GPIA’s officers and directors may, but are not obligated to, loan GPIA additional funds as may be required (“working capital loans”). The Sponsor has previously made working capital loans to GPIA and may, in the future, make further working capital loans to GPIA. If GPIA completes a business combination, GPIA may repay the working capital loans out of the proceeds held in the trust account released to GPIA. Otherwise, the working capital loans would be repaid only out of funds held outside the trust account. In the event that GPIA does not consummate a business combination, GPIA may use a portion of the working capital held outside the trust account to repay the working capital loans, but no proceeds held in the trust account would be used to repay the working capital loans. Up to $1,000,000 of working capital loans or promissory notes may be convertible into warrants of the post-business combination entity at a price of $1.00 per warrant at the option of the Sponsor. Such warrants would be identical to the private placement warrants. The terms of such working capital loans, if any, have not been determined, and no written agreements exist with respect to the working capital loans.

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Related Party Advances

As of May 26, 2015, the Sponsor advanced an aggregate of $86,321, of which $85,000 was paid directly to GPIA’s vendors for costs associated with our initial public offering. The advances were non-interest bearing, unsecured and due on demand. The advances were repaid upon consummation of our initial public offering.

Through December 31, 2016, the Sponsor advanced an aggregate of $635,681 in order to finance transaction costs in connection with the terminated business combination with World Kitchen. The advances were non-interest bearing, unsecured and payable only upon the completion of a business combination. As a result of the amendment to the Sponsor’s commitment to provide loans to GPIA of up to a total aggregate amount of $3,400,000 (see above), the outstanding advances of $635,681 were reclassified to related party promissory loans and are now included in the outstanding amounts owed under such loans. Accordingly, as of March 31, 2017, there are no related party advances outstanding.

Equity Commitment—Related Party

We have entered into an equity commitment letter, dated May 16, 2017, with the Sponsor and GPIA, LLC, a company whose sole member is the Sponsor. Pursuant to the equity commitment letter, the Sponsor has agreed to provide a specified amount of cash for the purchase of shares of RMNI common stock at a cash purchase price of $10.00 per share of common stock.

If, upon the effectiveness of the first merger, the sum of (i) the cash available in the trust account (after the deduction of the cash used for redemptions of our ordinary shares in connection with the business combination, and including an aggregate of $6,037,500 of deferred underwriting commissions and other fees held in the trust account) and (ii) the cash available to GPIA from the consummation of certain issuances of GPIA ordinary shares (which we refer to as non-Sponsor available cash) is greater than or equal to $50,000,000, then the Sponsor’s equity commitment is zero.

If, upon the effectiveness of the first merger, the non-Sponsor available cash is less than $50,000,000, then the Sponsor’s equity commitment is the lesser of (i) $50,000,000 minus the non-Sponsor available cash and (ii) $35,000,000, which is the maximum commitment of the Sponsor under the equity commitment letter (such amount as calculated pursuant to the foregoing clauses (i) and (ii) being referred to in this joint proxy statement/prospectus as the commitment. In addition, pursuant to the equity commitment letter, the Sponsor may, in its sole discretion and in connection with the consummation of the business combination, elect to purchase (on or prior to the domestication) GPIA common shares at a price of $10.00 per share in excess of such commitment, but in all cases up to a maximum of $35,000,000 when aggregated with such commitment.

Therefore, the maximum number of shares of GPIA common shares that the Sponsor can be required to acquire pursuant to the equity commitment letter is 3,500,000 shares of GPIA common shares at a cash purchase price of $10.00 per share of common stock. Any shares of GPIA common shares to be acquired by the Sponsor pursuant to the equity commitment letter shall be acquired by the Sponsor upon or prior to the domestication of GPIA as a Delaware corporation.

The GPIA common shares issued pursuant to the equity commitment letter shall constitute registrable securities under the registration rights agreement. Pursuant to the terms of the equity commitment letter, the Sponsor may allocate all or a portion of its obligations under the equity commitment letter to one or more persons who commit to purchase GPIA ordinary shares in connection with the business combination, but such allocation shall not relieve the Sponsor of its obligations thereunder.

The Sponsor’s obligations under the equity commitment letter are subject to the following conditions:

execution of the merger agreement by the parties thereto and all related agreements required by the merger agreement;
satisfaction in full or waiver by RMNI and Let’s Go (with the Sponsor’s prior written consent) of each of the conditions to the obligations of RMNI and Let’s Go to consummate the transactions contemplated by the merger agreement;
confirmation by Rimini Street that all conditions in the merger agreement that are for the benefit of Rimini Street have satisfied or have been waived by Rimini Street; and

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consummation of the first merger and the transactions contemplated by the merger agreement substantially concurrently with the payment required under the equity commitment.

The equity commitment letter terminates automatically upon the earliest to occur of (a) the consummation of the business combination, (b) the date that the merger agreement is validly terminated pursuant to its terms and (c) except as specified in the equity commitment letter, the date that Rimini Street or any of its affiliates, or any holder of securities of Rimini Street prior to the consummation of the business combination asserts or files any legal action with respect to the business combination or any transaction contemplated by the merger agreement.

Rimini Street, Inc.

RMNI Related Person Policy

RMNI will adopt a formal written policy that will be effective upon the business combination providing that RMNI’s executive officers, directors, nominees for election as directors, beneficial owners of more than 5% of any class of RMNI’s capital stock, any member of the immediate family of any of the foregoing persons, and any firm, corporation or other entity in which any of the foregoing persons is employed or is a general partner or principal or in a similar position or in which such person has a 5% or greater beneficial ownership interest, are not permitted to enter into a related party transaction with us without the approval of RMNI’s audit committee, subject to the exceptions described below. In approving or rejecting any such proposal, RMNI’s audit committee will consider the relevant facts and circumstances available and deemed relevant to RMNI’s audit committee, including whether the transaction is on terms no less favorable than terms generally available to an unaffiliated third party under the same or similar circumstances and the extent of the related party’s interest in the transaction. RMNI’s audit committee has determined that certain transactions will not require audit committee approval, including certain employment arrangements of executive officers, director compensation, transactions with another company at which a related party’s only relationship is as a director, non-executive employee or beneficial owner of less than 10% of that company’s outstanding capital stock, transactions where a related party’s interest arises solely from the ownership of RMNI’s common stock and all holders of RMNI’s common stock received the same benefit on a pro rata basis, and transactions available to all employees generally.

RMNI Related Person Transactions

In June 2017, a subsidiary of RMNI entered into a Master Services Agreement, as supplemented by a Statement of Work No. 1 and Statement of Work No 2 of the same date (together, the “MSA”), for the provision of certain services by RMNI to GP Investimetos Ltda., an affiliate of GPIAC, who, upon consummation of the business combination, will be a greater than 5% stockholder of RMNI. Antonio Bonchristiano and Andrew Fleiss, who will be directors of RMNI upon consummation of the business combination, are also affiliates of GPIAC. As of the date of this joint proxy statement/prospectus, no amounts have been paid to RMNI pursuant to the MSA.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Exchange Act requires GPIA directors, officers and persons owning more than 10% of GPIA ordinary shares to file reports of ownership and changes of ownership with the SEC. Based on its review of the copies of such reports furnished to GPIA, or representations from certain reporting persons that no other reports were required, GPIA believes that all applicable filing requirements were complied with during the period from January 28, 2015 (inception) through December 31, 2016 and for the three months ended March 31, 2017.

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DESCRIPTION OF RMNI SECURITIES

The following description of the RMNI capital stock (common and preferred) reflects RMNI’s capital stock as it will exist upon completion of the domestication and as of the effective time of the business combination. The RMNI capital stock will be governed by RMNI’s certificate of incorporation and bylaws and the DGCL. This description is a summary and is not complete. We urge you to read in their entirety (1) RMNI’s certificate of incorporation, which will be in effect as of the effective time of the second merger and a form of which is included as Annex D to this joint proxy statement/prospectus and is incorporated herein by reference; and (2) RMNI’s bylaws, which will be in effect as of the effective time of the second merger and a form of which is included as Annex E to this joint proxy statement/prospectus and is incorporated herein by reference. The following summary should be read in conjunction with the section entitled “ Comparison of Corporate Governance and Shareholder Rights ”.

General

GPIA is a recently organized blank check company incorporated as a Cayman Islands exempted company. In connection with the business combination and pursuant to the domestication, GPIA proposes to change its jurisdiction of incorporation by deregistering as an exempted company in the Cayman Islands and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware, and such entity will be renamed “Rimini Street, Inc.” immediately after consummation of the second merger.

Common Stock

Number of Authorized and Outstanding Shares

Until the domestication is effective, GPIA will not have any Delaware capital stock and will not exist as a Delaware entity; thereafter, RMNI will have Delaware capital stock and RMNI will be a Delaware corporation. Upon effectiveness of the domestication and pursuant to the business combination, RMNI’s authorized capital stock will consist of 1,000,000,000 shares of common stock, par value $0.0001 per share, and 100,000,000 shares of preferred stock, par value $0.0001 per share.

On May 26, 2015, GPIA closed its initial public offering of 17,250,000 units, with each unit consisting of one ordinary share and one-half of a warrant to acquire one ordinary share upon consummation of an initial business combination. As of the date of this joint proxy statement/prospectus, GPIA had 20,009,776 ordinary shares issued and outstanding, consisting of 15,697,276 shares sold as part of the units issued in our initial public offering (being 17,250,000 public shares issued in our initial public offering as reduced by the redemption of 1,552,724 public shares on May 25, 2017 in connection with the Extension) and 4,312,500 founder shares that were issued to the Sponsor prior to our initial public offering. On the effective date of the domestication, each currently issued and outstanding ordinary share of GPIA will automatically convert by operation of law, on a one-for-one basis, into one share of common stock of GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), which will be renamed “Rimini Street, Inc.” immediately after consummation of the second merger.

Dividend Rights

Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of RMNI common stock are entitled to receive dividends out of funds legally available if the RMNI board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that the board of directors may determine.

Voting Rights

Holders of shares of common stock shall be entitled to cast one vote for each share held on all matters submitted to a vote of stockholders. Holders of shares of common stock have no cumulative voting rights. RMNI’s certificate of incorporation establishes a classified board of directors that is divided into three classes with staggered three-year terms. Only the directors in one class will be subject to election by a plurality of votes cast at each annual meeting of RMNI stockholders, with the directors in the other classes continuing for the remainder of their respective three-year terms.

No Preemptive or Similar Rights

RMNI common stock is not entitled to preemptive rights and is not subject to conversion, redemption, or sinking fund provisions.

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Right to Receive Liquidation Distributions

If RMNI becomes subject to a liquidation, dissolution, or winding-up, the assets legally available for distribution to RMNI stockholders would be distributable ratably among the holders of RMNI common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights and payment of liquidation preferences, if any, on any outstanding shares of preferred stock.

Other

The ordinary shares held by the initial shareholders were held in an escrow account maintained in New York, New York by Continental Stock Transfer & Trust Company, acting as escrow agent. Subject to certain limited exceptions, these shares will not be transferred, assigned or sold until released from escrow on the date that is one year after the date of the consummation of our initial business combination or earlier if, subsequent to our business combination, (i) the last sale price of our ordinary shares equals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing at least 150 days after our initial business combination or (ii) we consummate a subsequent liquidation, merger, share exchange or other similar transaction which results in all of our shareholders having the right to exchange their ordinary shares for cash, securities or other property.

Pursuant to GPIA’s amended and restated memorandum and articles of association, a public shareholder may request of GPIA that RMNI redeem all or a portion of the RMNI public shares that such public shareholder will hold following the domestication for cash if the business combination is consummated. Any holder of public shares will be entitled to request that their RMNI public shares be redeemed for a pro rata portion of the amount then on deposit in the trust account as of two business days prior to the consummation of the business combination including interest earned on the funds held in the trust account and not previously released to us. GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware) will be the continuing entity following the domestication, which is the entity that survives the mergers (and which will be renamed “Rimini Street, Inc.” immediately after consummation of the second merger). As a change of entity name does not involve a change in the legal form of the entity, in this joint proxy statement/prospectus, “RMNI” refers to GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), including subsequent to its change of name to Rimini Street, Inc. Holders of GPIA public shares will be entitled to receive cash for RMNI public shares only as provided below:

(i) if the public shareholder holds ordinary shares through units, the shareholder must elect to separate its units into the underlying public shares and public warrants prior to exercising its redemption rights with respect to the public shares;
(ii) the public shareholder must submit a written request to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, that RMNI redeem all or a portion of their RMNI public shares for cash prior to the extraordinary general meeting; and
(iii) the public shareholder must deliver its ordinary shares to Continental Stock Transfer & Trust Company, GPIA’s transfer agent, physically or electronically through Depository Trust Company, or DTC.

Holders of GPIA public shares should complete the procedures for electing to redeem their GPIA public shares in the manner described above prior to 5:00 p.m. Eastern Time on [ ], 2017 (two business days before the extraordinary general meeting).

Founder Shares

We refer to the Sponsor and our independent directors that own any of our ordinary shares as our “initial shareholders”, and the 4,312,500 ordinary shares that they own in aggregate are referred to as the “founder shares”, which represent 20% of the GPIA ordinary shares outstanding as of the date of this joint proxy statement/prospectus. The founder shares are identical to the ordinary shares included in the units sold in our initial public offering and on the effective date of the domestication, each currently issued and outstanding founder share of GPIA will automatically convert by operation of law, on a one-for-one basis, into one share of common stock of GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), which will be

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renamed “Rimini Street, Inc.” immediately after consummation of the second merger. However, holders have entered into letter agreements with us, pursuant to which they have agreed (A) to vote any shares owned by them in favor of any proposed business combination and (B) not to redeem any shares in connection with a shareholder vote to approve a proposed initial business combination.

In connection with our initial public offering, the founder shares were placed into an escrow account maintained in New York, New York by Continental Stock Transfer & Trust Company, acting as escrow agent. Subject to certain limited exceptions, these founder shares will not be transferred, assigned or sold until released from escrow on the date that is one year after the date of the consummation of our initial business combination or earlier if, subsequent to our business combination, (i) the last sale price of our ordinary shares equals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing at least 150 days after our initial business combination or (ii) we consummate a subsequent liquidation, merger, share exchange or other similar transaction which results in all of our shareholders having the right to exchange their ordinary shares for cash, securities or other property.

Preferred Stock

No shares of preferred stock of RMNI will be issued or outstanding immediately following the consummation of the business combination. Pursuant to RMNI’s amended and restated certificate of incorporation, the board of directors will have the authority, without further action by the stockholders, to issue from time to time shares of preferred stock in one or more series. The RMNI board of directors may designate the rights, preferences, privileges and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, redemption rights, liquidation preference, sinking fund terms, and the number of shares constituting any series or the designation of any series. The issuance of preferred stock could have the effect of restricting dividends on RMNI common stock, diluting the voting power of RMNI common stock, impairing the liquidation rights of RMNI common stock, or delaying, deterring, or preventing a change in control. Such issuance could have the effect of decreasing the market price of RMNI common stock. RMNI currently has no plans to issue any shares of preferred stock.

Outstanding Warrants

As of the date of this joint proxy statement/prospectus, there is outstanding an aggregate of 14,687,500 warrants to acquire GPIA ordinary shares, which comprise the 6,062,500 private placement warrants held by the Sponsor and the 8,625,000 public warrants, of which 52,100 are held by an affiliate of the Sponsor. Each of the 17,250,000 units issued in our initial public offering contains one-half of a warrant. Each warrant entitles the holder thereof to purchase one GPIA ordinary share and, following the domestication, will entitle the holder thereof to purchase one RMNI common share.

The warrants are each exercisable for one ordinary share at $11.50 per share. On the effective date of the domestication, our outstanding warrants will become warrants to acquire the corresponding shares of RMNI common stock and no other changes will be made to the terms of any outstanding warrants as a result of the domestication. For the avoidance of doubt, all of the outstanding warrants to acquire GPIA ordinary shares will be converted by operation of law into warrants to acquire RMNI common stock in the domestication, but only the RMNI public warrants are being registered hereby.

Any holders of public shares who exercise their redemption rights with respect to such public shares must elect to separate the underlying public shares and public warrants.

Simultaneously with the closing of our initial public offering, GPIA consummated the sale of 6,062,500 warrants at a price of $1.00 per warrant in a private placement to the Sponsor, generating gross proceeds of $6,062,500. The warrants held by the Sponsor and 52,100 warrants held by its affiliate had an aggregate market value of $4,402,512 based upon the closing price of $0.72 per warrant on the NASDAQ on June 29, 2017, the most recent closing price. If we do not consummate a business combination transaction by November 27, 2017, then the proceeds from the sale of the private placement warrants will be part of the liquidating distribution to the public shareholders, and the warrants held by the Sponsor and its affiliate will be worthless.

In connection with the business combination, certain warrants to purchase shares of Class A common stock of Rimini Street were converted into warrants to purchase up to [•] shares of RMNI common stock at an exercise price of $[•] per share.

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Registration Rights

The holders of the founder shares, private placement warrants and warrants that may be issued upon conversion of working capital loans (and any ordinary shares issuable upon the exercise of the private placement warrant and warrants that may be issued upon conversion of working capital loans) are entitled to registration rights pursuant to a registration rights agreement entered into as of May 19, 2015, among GPIA, the Sponsor, GPIAC, LLC and the other parties thereto, which we will refer to as the “registration rights agreement”. The holders of the majority of these securities are entitled to make up to three demands, excluding short form demands, that we register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to our completion of our initial business combination and rights to require us to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that we will not permit any registration statement filed under the Securities Act to become effective until termination of the applicable lock-up period, which occurs (a) in the case of the founder shares, one year after the date of the consummation of our initial business combination or earlier if, subsequent to our business combination, (i) the last sale price of our ordinary shares equals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing at least 150 days after our initial business combination or (ii) we consummate a subsequent liquidation, merger, share exchange or other similar transaction which results in all of our shareholders having the right to exchange their ordinary shares for cash, securities or other property; and (b) in the case of the private placement warrants and the respective ordinary shares underlying such warrants, 30 days after the completion of our initial business combination. We will bear the expenses incurred in connection with the filing of any such registration statements.

In connection with the Sponsor’s equity commitment, GPIA, the Sponsor and GPIAC, LLC agreed that the securities issued to the Sponsor upon the funding of its equity commitment will be deemed “Registrable Securities” under the registration rights agreement and GPIA, the Sponsor and GPIAC, LLC agree to take all such actions as may be necessary to amend the registration rights as of the funding of the commitment to memorialize such treatment.

Certain Registration Rights Provided to Certain of Rimini Street’s Stockholders

After consummation of the business combination, certain Rimini Street stockholders will be entitled to rights with respect to the registration of their shares under the Securities Act. These registration rights are contained in Rimini Street’s amended and restated investors’ rights agreement, or the IRA, dated as of October 31, 2016. The registration rights set forth in the IRA will expire on the earlier of five years following the completion of an initial public offering of Rimini Street, or, with respect to any particular stockholder, when such stockholder is able to sell all of its shares entitled to registration rights pursuant to Rule 144 of the Securities Act during any 90-day period.

Transfer Agent

The transfer agent for RMNI common stock will be Continental Stock Transfer & Trust Company, which is located at 1 State Street Plaza, 30th Floor, New York, New York 10004, e-mail: mzimkind@continentalstock.com.

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SECURITIES ACT RESTRICTIONS ON RESALE OF RMNI SECURITIES

Pursuant to Rule 144 under the Securities Act (“Rule 144”), a person who has beneficially owned restricted RMNI common stock or RMNI warrants for at least six months would be entitled to sell their securities provided that (i) such person is not deemed to have been an affiliate of RMNI at the time of, or at any time during the three months preceding, a sale and (ii) RMNI is subject to the Exchange Act periodic reporting requirements for at least three months before the sale and have filed all required reports under Section 13 or 15(d) of the Exchange Act during the twelve months (or such shorter period as RMNI was required to file reports) preceding the sale.

Persons who have beneficially owned restricted RMNI common stock shares or RMNI warrants for at least six months but who are affiliates of RMNI at the time of, or at any time during the three months preceding, a sale, would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of securities that does not exceed the greater of:

1% of the total number of RMNI common stock then outstanding (as of the date of this joint proxy statement/prospectus, GPIA has 20,009,776 ordinary shares outstanding); or
the average weekly reported trading volume of the RMNI common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale.

Sales by affiliates of RMNI under Rule 144 are also limited by manner of sale provisions and notice requirements and to the availability of current public information about RMNI.

Restrictions on the Use of Rule 144 by Shell Companies or Former Shell Companies

Rule 144 is not available for the resale of securities initially issued by shell companies (other than business combination related shell companies) or issuers that have been at any time previously a shell company. However, Rule 144 also includes an important exception to this prohibition if the following conditions are met:

the issuer of the securities that was formerly a shell company has ceased to be a shell company;
the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act;
the issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding twelve months (or such shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports; and
at least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company.

As a result, our initial shareholders will be able to sell their founder shares and private placement warrants, as applicable, pursuant to Rule 144 without registration one year after we have completed our initial business combination.

We anticipate that following the consummation of the first merger, RMNI will no longer be a shell company, and so, once the conditions set forth in the exceptions listed above are satisfied, Rule 144 will become available for the resale of the above noted restricted securities.

Registration Rights

See “ Description of RMNI Securities—Registration Rights ” above.

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APPRAISAL RIGHTS

Neither GPIA shareholders nor GPIA warrant holders have appraisal rights in connection with the business combination or the domestication under the Cayman Islands Companies Law or under the DGCL.

Rimini Street stockholders will be will be entitled to dissenters’ rights only if they comply with Nevada law, as described below. To be eligible to exercise appraisal rights, record holders of Rimini Street capital stock must not vote in favor of the business combination and must properly demand payment for their shares. This summary of the rights of dissenting holders of Rimini Street capital stock under the Nevada Dissenter’s Rights Statute does not purport to be a complete statement of the procedures to be followed by Rimini Street stockholders desiring to exercise any dissenters’ rights of appraisal rights available under Nevada law.

A COPY OF THE NEVADA DISSENTER’S RIGHTS STATUTE IS PROVIDED ON ANNEX I TO THIS JOINT PROXY STATEMENT/PROSPECTUS.

IF YOU FAIL TO COMPLY WITH THE PROCEDURES SPECIFIED IN THE NEVADA DISSENTER’S RIGHTS STATUTE IN A TIMELY MANNER, YOU MAY LOSE YOUR DISSENTER’S RIGHTS. BECAUSE OF THE COMPLEXITY OF THOSE PROCEDURES, YOU SHOULD SEEK THE ADVICE OF COUNSEL IF YOU ARE CONSIDERING EXERCISING YOUR DISSENTER’S RIGHTS.

Pursuant to provisions of the Nevada Dissenter’s Rights Statute, holders of Rimini Street capital stock who do not wish to accept the merger consideration have the right to seek an appraisal of the fair cash value of their shares, as determined in a judicial proceeding in accordance with the Nevada Dissenter’s Rights Statute. Such value shall be determined exclusive of any element of value arising from the accomplishment or expectation of the business combination, excluding any appreciation or depreciation in anticipation of the business combination, unless exclusion of any appreciation or depreciation would be inequitable. The value so determined could be more or less than the merger consideration to be paid in connection with the business combination . In addition, holders of Rimini Street capital stock who invoke dissenters’ rights may be entitled to receive payment of a fair rate of interest from the effective date of the business combination on the amount determined to be the fair value of their shares.

To assert dissenter’s rights, each Rimini Street stockholder must (i) before the vote is taken on the business combination must give written notice to Rimini Street of his or her intent to demand payment for the stockholder’s shares and (ii) not vote or cause or permit to be voted such shares in favor of the business combination. If a stockholder returns a signed proxy but does not specify in the proxy a vote against the business combination or an instruction to abstain, the proxy will be voted FOR adoption of the business combination, which will have the effect of waiving the rights of that stockholder to have the stockholder’s shares purchased at fair value pursuant to the Nevada Rights Statute. Abstaining from voting or voting against the business combination will NOT constitute a waiver of a stockholder’s rights. A form of Notice of Stockholder’s Intent to Demand Payment is attached to this joint proxy statement/prospectus as Annex J, but in any event such demand will be sufficient if (a) it reasonably informs Rimini Street of the identity of the stockholder making the demand and that the stockholder intends thereby to demand an appraisal of the fair value of his or her shares and (b) includes the certificates representing the dissenter’s shares. Failure to make such a timely demand will foreclose the right to Appraisal . All written demands for Appraisal should be sent or delivered to Rimini Street at the following address: Thomas C. Shay, Corporate Secretary, Rimini Street, Inc., 3993 Howard Hughes Parkway, Suite 500, Las Vegas, NV 89169. After the vote is taken at the special meeting, if the business combination is approved, no later than 10 days after the business combination takes place, a written dissenters’ notice, accompanied by a copy of the Nevada Rights Statute Sections 92A.300-92A.500 inclusive, will be sent to each stockholder of record entitled to assert dissenter’s rights and any beneficial stockholder who previously asserted dissenter’s rights by giving written notice to demand payment for his or her shares and did not vote in favor of the business combination. Each such dissenting stockholder has the right, 30 days after the date of this written notice to deliver its shares to Rimini Street’s transfer agent, demand in writing from Rimini Street an appraisal of its shares and a demand of payment therefor (together, an “Appraisal”).

Within 30 days after receipt of a demand for Appraisal, Rimini Street must pay each dissenter who complied with the provisions of the Nevada Dissenter’s Rights Statute the amount Rimini Street estimates to be the fair value of such dissenter’s shares, in addition to interest from the effective date of the business combination. The payment must be accompanied by the following: (i) Rimini Street’s balance sheet as of [•], a statement of income for [•], a statement of changes in the stockholders’ equity for [•] or, where such financial statements are not reasonably available, then such reasonably equivalent financial information and the latest available quarterly financial statements, if any; (ii) a statement of Rimini Street’s estimate of the fair value of the shares; (iii) an explanation of

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how interest was calculated, and (iv) a statement of the dissenter’s rights to demand payment under Nevada law, and that if any such dissenter does not do so within the period specified, such dissenter shall be deemed to have accepted such payment in full satisfaction of Rimini Street’s obligations under the Nevada Dissenter’s Rights Statute.

If a dissenter disagrees with the amount of Rimini Street’s payment or Rimini Street does not respond to the demand for Appraisal, then the dissenter may, within 30 days of such payment, (i) notify Rimini Street in writing of the dissenter’s own estimate of the fair value of the dissenter’s shares and the amount of interest due, and demand payment of such estimate, less any payments made by Rimini Street, or (ii) reject the offer by Rimini Street if the dissenter believes that the amount offered by Rimini Street is less than the fair value of the dissenter’s shares or that the interest due is incorrectly calculated. If a dissenter submits a written demand as set forth above and Rimini Street accepts the offer to purchase the shares at the offer price, then such dissenter will be sent a check for the full purchase price of the shares within 30 days of acceptance.

If a demand for payment remains unsettled, Rimini Street must commence a proceeding in the Clark County, Nevada district court within 60 days after receiving the demand. Each dissenter who is made a party to the proceeding shall be entitled to a judgment in the amount, if any, by which the court finds the fair value of the dissenter’s shares, plus interest, exceeds the amount paid by Rimini Street. If a proceeding is commenced to determine the fair value of the shares, the costs of such proceeding, including the reasonable compensation and expenses of any appraisers appointed by the court, shall be assessed against Rimini Street, unless the court finds the dissenters acted arbitrarily, vexatiously or not in good faith in demanding payment. The court may also assess the fees and expenses of the counsel and experts for the respective parties, in amounts the court finds equitable against Rimini Street if the court finds that (i) Rimini Street did not comply with the Nevada Dissenter’s Rights Statute or (ii) against either Rimini Street or a dissenter, if the court finds that such party acted arbitrarily, vexatiously or not in good faith with respect to the rights provided by the Nevada Dissenter’s Rights Statute. If the proceeding determines the fair value of the shares to be below the merger consideration or the amount otherwise paid to the dissenter, the dissenter will be required to return the difference to Rimini Street.

A person having a beneficial interest in shares that are held of record in the name of another person, such as a broker, fiduciary, depository or other nominee, must act to cause the record holder to follow the requisite steps properly and in a timely manner to perfect dissenters’ rights under the Nevada Dissenter’s Rights Statute. If the shares are owned of record by a person other than the beneficial owner, including a broker, fiduciary (such as a trustee, guardian or custodian), depositary or other nominee, the written demand for dissenters’ rights of appraisal must be executed by or for the record owner. If shares are owned of record by more than one person, as in joint tenancy or tenancy in common, the demand must be executed by or for all joint owners. An authorized agent, including an agent for two or more joint owners, may execute a demand for Appraisal for a stockholder of record, provided that the agent identifies the record owner and expressly discloses, when the demand is made, that the agent is acting as agent for the record owner. If a stockholder owns shares through a broker who in turn holds the shares through a central securities depository nominee, a demand for Appraisal of such shares must be made by or on behalf of the depository nominee and must identify the depository nominee as the record holder of such shares.

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STOCKHOLDER PROPOSALS AND NOMINATIONS

Stockholder Proposals

RMNI’s Proposed Bylaws provide that stockholders may present proper proposals for inclusion in RMNI’s proxy statement for consideration at an annual meeting of stockholders by submitting their proposals in writing to RMNI’s secretary in a timely manner. For a stockholder proposal to be considered for inclusion in RMNI’s proxy statement for RMNI’s annual meeting of stockholders, RMNI’s secretary must receive the written proposal at RMNI’s principal executive offices not less than 120 calendar days before RMNI’s proxy statement is released to shareholders. However, if RMNI did not hold an annual meeting the previous year, then RMNI’s secretary must receive the written proposal within a reasonable time before RMNI begins to print and send its proxy materials. In addition, stockholder proposals must comply with the requirements of Rule 14a-8 regarding the inclusion of stockholder proposals in company-sponsored proxy materials. Stockholder proposals should be addressed to:

Rimini Street, Inc.
Attention: Secretary
3993 Howard Hughes Parkway, Suite 500
Las Vegas, NV 89169

RMNI’s Proposed Bylaws also establish an advance notice procedure for stockholders who wish to present a proposal before an annual meeting of stockholders but do not intend for the proposal to be included in RMNI’s proxy statement. RMNI’s Proposed Bylaws provide that the only business that may be conducted at an annual meeting of stockholders is business that is (i) specified in RMNI’s proxy materials with respect to such meeting, (ii) otherwise properly brought before such meeting by or at the direction of RMNI’s board of directors, or (iii) properly brought before such meeting by a stockholder of record entitled to vote at the annual meeting who has delivered timely written notice to RMNI’s secretary, which notice must contain the information specified in RMNI’s Proposed Bylaws. To be timely for RMNI’s annual meeting of stockholders, RMNI’s secretary must receive the written notice at RMNI’s principal executive offices:

not earlier than the 45 th day; and
not later than the 75 th day

before the one-year anniversary of the date on which RMNI first mailed its proxy materials or a notice of availability of proxy materials (whichever is earlier) for the preceding year’s annual meeting.

In the event that no annual meeting was held in the previous year or RMNI holds its annual meeting of stockholders more than 30 days before or more than 60 days after the one-year anniversary of a preceding year’s annual meeting, notice of a stockholder proposal that is not intended to be included in RMNI’s proxy statement must be received no earlier than the close of business on the 120th day before RMNI’s annual meeting of stockholders and no later than the close of business on the later of the following two dates:

the 90th day prior to the date of RMNI’s annual meeting of stockholders; or
the 10th day following the day on which public announcement of the date of RMNI’s annual meeting of stockholders is first made.

If a stockholder who has notified RMNI of his, her or its intention to present a proposal at an annual meeting does not appear to present his, her or its proposal at such annual meeting, RMNI is not required to present the proposal for a vote at such annual meeting.

Stockholder Director Nominees and Recommendations for Nominees

RMNI stockholders may propose director candidates for consideration by RMNI’s nominating and corporate governance committee. Any such recommendations should include the nominee’s name and qualifications for membership on RMNI’s board of directors and should be directed to RMNI’s secretary at the address set forth above.

RMNI’s nominating and corporate governance committee will consider candidates for director recommended by stockholders so long as such recommendations comply with RMNI’s Proposed Charter and Proposed Bylaws and applicable laws, rules and regulations, including those promulgated by the SEC. RMNI’s nominating and corporate governance committee will evaluate such recommendations in accordance with its charter, RMNI’s Proposed Bylaws, as well as the regular director nominee criteria described above. This process is designed to ensure that RMNI’s board

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of directors includes members with diverse backgrounds, skills and experience, including appropriate financial and other expertise relevant to our business. Eligible stockholders wishing to recommend a candidate for nomination should contact RMNI’s General Counsel or Legal Department in writing. Such recommendations must include information about the candidate, a statement of support by the recommending stockholder, evidence of the recommending stockholder’s ownership of our common stock and a signed letter from the candidate confirming willingness to serve on our board of directors. RMNI’s nominating and corporate governance committee has discretion to decide which individuals to recommend for nomination as directors.

In addition, RMNI’s Proposed Bylaws permit stockholders to nominate directors for election at an annual meeting of stockholders. To nominate a director, the stockholder must provide the information required by RMNI’s Proposed Bylaws. In addition, the stockholder must give timely notice to RMNI’s secretary in accordance with RMNI’s Proposed Bylaws, which, in general, require that the notice be received by RMNI’s secretary within the time periods described above under “Stockholder Proposals” for stockholder proposals that are not intended to be included in a proxy statement.

SHAREHOLDER COMMUNICATIONS

Shareholders and interested parties may communicate with GPIA’s board of directors, any committee chairperson or the non-management directors as a group by writing to the board or committee chairperson in care of GP Investments Acquisition Corp., 150 E. 52nd Street, Suite 5003, New York, NY 10022. Following the business combination, such communications should be sent in care of GPIA, 150 E. 52nd Street, Suite 5003, New York, NY 10022. Each communication will be forwarded, depending on the subject matter, to the board of directors, the appropriate committee chairperson or all non-management directors.

LEGAL MATTERS

Skadden, Arps, Slate, Meagher & Flom LLP have passed upon the validity of the securities of RMNI offered by this joint proxy statement/prospectus and certain other legal matters related to this joint proxy statement/prospectus.

EXPERTS

The consolidated financial statements of Rimini Street, Inc. and Subsidiaries as of December 31, 2016 and 2015, and for each of the years in the three-year period ended December 31, 2016, have been included in this joint proxy statement/prospectus in reliance upon the report of KPMG LLP, independent registered public accounting firm, appearing elsewhere in this joint proxy statement/prospectus, and upon the authority of said firm as experts in accounting and auditing.

The financial statements of GP Investments Acquisition Corp. as of December 31, 2016 and 2015, and for the year ended December 31, 2016 and for the period from January 28, 2015 (inception) through December 31, 2015, appearing in this joint proxy statement/prospectus have been audited by Marcum LLP, independent registered public accounting firm, as set forth in their report thereon appearing elsewhere in this joint proxy statement/prospectus and are included in reliance on such report given the authority of such firm as expert in accounting and auditing.

RIMINI STREET CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

BDO USA, LLP (“BDO”) audited the consolidated financial statements of Rimini Street for the year ended December 31, 2013. BDO had also performed an audit for the year ended December 31, 2014, and issued a report dated August 28, 2015. On December 2, 2016, BDO communicated to the audit committee that it effectively withdrew its audit report on the consolidated financial statements for the year ended December 31, 2014. BDO’s report for the year ended December 31, 2013, did not contain an adverse opinion or disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principles.

On May 25, 2016, the Rimini Street audit committee dismissed BDO as the independent auditor of Rimini Street and engaged KPMG LLP as the independent auditor of Rimini Street commencing with work to be performed in relation to the audit of Rimini Street for the year ended December 31, 2014. In addition, the Rimini Street audit committee engaged KPMG LLP to audit the consolidated financial statements of Rimini Street for the year ended December 31, 2015 and for the year ended December 31, 2016.

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During the period in which BDO served as the independent auditor of Rimini Street, there were no disagreements between BDO and Rimini Street on any matter of accounting principles or practices, financial statements disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of BDO, would have caused BDO to make reference to such disagreements in the firm’s reports on the financial statements of Rimini Street for such periods. In addition, no reportable events, as defined in Item 304(a)(1)(v) of Regulation S-K, occurred during Rimini Street's two most recent fiscal years or the interim period preceding the dismissal of BDO.

Rimini Street has provided BDO with a copy of the foregoing disclosure and has requested that BDO furnish Rimini Street with a letter addressed to the SEC stating whether or not BDO agrees with the above statements and, if not, stating the respects in which it does not agree. A copy of the letter from BDO, in which BDO agrees with the above statements, is filed as an exhibit to the registration statement of which this joint proxy statement/prospectus forms part.

DELIVERY OF DOCUMENTS TO SHAREHOLDERS

Pursuant to the rules of the SEC, GPIA and services that it employs to deliver communications to its shareholders are permitted to deliver to two or more shareholders sharing the same address a single copy of each of GPIA’s annual report to shareholders and GPIA’s proxy statement. Upon written or oral request, GPIA will deliver a separate copy of the annual report to shareholders and/or proxy statement to any shareholder at a shared address to which a single copy of each document was delivered and who wishes to receive separate copies of such documents. Shareholders receiving multiple copies of such documents may likewise request that GPIA deliver single copies of such documents in the future. Shareholders receiving multiple copies of such documents may request that GPIA deliver single copies of such documents in the future. Shareholders may notify GPIA of their requests by calling or writing GPIA at its principal executive offices at 150 E. 52nd Street, Suite 5003, New York, NY 10022 or (212) 430-4340.

ENFORCEABILITY OF CIVIL LIABILITY

GPIA is a Cayman Islands exempted company. If GPIA does not change its jurisdiction of incorporation from the Cayman Islands to Delaware by effecting the domestication, you may have difficulty serving legal process within the United States upon GPIA. You may also have difficulty enforcing, both in and outside the United States, judgments you may obtain in U.S. courts against GPIA in any action, including actions based upon the civil liability provisions of U.S. federal or state securities laws. Furthermore, there is doubt that the courts of the Cayman Islands would enter judgments in original actions brought in those courts predicated on U.S. federal or state securities laws. However, GPIA may be served with process in the United States with respect to actions against GPIA arising out of or in connection with violation of U.S. federal securities laws relating to offers and sales of GPIA’s securities by serving GPIA’s U.S. agent irrevocably appointed for that purpose.

WHERE YOU CAN FIND MORE INFORMATION; INCORPORATION BY REFERENCE

GPIA has filed a registration statement on Form S-4 to register the issuance of securities described elsewhere in this joint proxy statement/prospectus. This joint proxy statement/prospectus is a part of that registration statement.

GPIA files reports, proxy statements and other information with the SEC as required by the Exchange Act. You may read and copy reports, proxy statements and other information filed by GPIA with the SEC at the SEC public reference room located at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. You may also obtain copies of the materials described above at prescribed rates by writing to the Securities and Exchange Commission, Public Reference Section, 100 F Street, N.E., Washington, D.C. 20549. You may access information on GPIA at the SEC website containing reports, proxy statements and other information at: http://www.sec.gov.

Information and statements contained in this joint proxy statement/prospectus or any annex to this joint proxy statement/prospectus are qualified in all respects by reference to the copy of the relevant contract or other annex filed as an exhibit to the registration statement of which this joint proxy statement/prospectus forms a part, which includes exhibits incorporated by reference from other filings made with the SEC.

All information contained in this joint proxy statement/prospectus relating to GPIA has been supplied by GPIA, and all such information relating to Rimini Street has been supplied by Rimini Street. Information provided by one another does not constitute any representation, estimate or projection of the other.

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Incorporation by Reference of Certain of GPIA’s Filings with the SEC

The SEC allows GPIA to “incorporate by reference” certain information filed with the SEC into this joint proxy statement/prospectus, which means that GPIA can disclose important information to you by referring you to other documents that GPIA has filed separately with the SEC. You should read any information incorporated by reference because it is an important part of this this joint proxy statement/prospectus.

This joint proxy statement/prospectus incorporates by reference any filings that GPIA makes with the SEC under Section 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this joint proxy statement/prospectus and prior to the date of the special meeting, and thereafter until the consummation of the business combination (other than those documents or the portions of those documents furnished, including pursuant to Items 2.02 or 7.01 of any Current Report on Form 8-K or exhibits filed under Item 9.01 relating to those Items, unless expressly stated otherwise therein). Any statement contained in a document incorporated by reference into this joint proxy statement/prospectus will be deemed to be modified or superseded to the extent that a statement contained in any other subsequently filed document that is also, or is deemed to be, incorporated by reference into this joint proxy statement/prospectus conflicts with, negates, modifies or supersedes that statement. Any statement that is modified or superseded will not constitute a part of this joint proxy statement/prospectus, except as modified or superseded.

If you would like additional copies of this joint proxy statement/prospectus or any document incorporated by reference in this joint proxy statement/prospectus, or if you have questions about the business combination, you should contact via phone or in writing:

Morrow Sodali LLC
470 West Avenue
Stamford CT 06902
Tel: (800) 662-5200
Banks and brokers call collect: (203) 658-9400
E-mail: GPIA.info@morrowsodali.com

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INDEX TO FINANCIAL STATEMENTS

GP INVESTMENTS ACQUISITION CORP .

Condensed Financial Statements as of March 31, 2017 and December 31, 2016 , and for the Three Months Ended March 31, 2017 and 2016
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
Financial Statements as of December 31, 2016 and 2015 , and for the Year Ended December 31, 2016 and for the Period from January 28, 2015 (Inception) through December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

RIMINI STREET, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Financial Statements as of December 31, 2016 and March 31, 2017 , and for the T hree M onths E nded March 31, 201 6 and 201 7
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
Consolidated Financial Statements as of December 31, 2015 and 2016 , and for the Years Ended December 31, 2014, 2015 and 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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GP INVESTMENTS ACQUISITION CORP.
   
Condensed Financial Statements as of March 31, 2017 and December 31, 2016
and for the Three Months Ended March 31, 2017

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
   
Condensed Balance Sheets

 
March 31,
2017
December 31,
2016
 
(Unaudited)
 
ASSETS
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
Cash and cash equivalents
$
1,551
 
$
1,551
 
Prepaid expenses
 
256,417
 
 
217,668
 
Total Current Assets
 
257,968
 
 
219,219
 
 
 
 
 
 
 
 
Cash and marketable securities held in Trust Account
 
173,227,105
 
 
173,051,990
 
TOTAL ASSETS
$
173,485,073
 
$
173,271,209
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
Accounts payable and accrued expenses
$
133,932
 
$
63,009
 
Advances from related party
 
 
 
635,681
 
Total Current Liabilities
 
133,932
 
 
698,690
 
 
 
 
 
 
 
 
Deferred underwriting fees
 
6,037,500
 
 
6,037,500
 
Promissory note – related party
 
2,682,893
 
 
1,900,000
 
Total Liabilities
 
8,854,325
 
 
8,636,190
 
 
 
 
 
 
 
 
Commitments and Contingencies
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary shares subject to possible redemption, 15,896,071 and 15,912,582 shares at redemption value as of March 31, 2017 and December 31, 2016, respectively
 
159,630,747
 
 
159,635,018
 
 
 
 
 
 
 
 
Shareholders’ Equity
 
 
 
 
 
 
Preferred shares, $0.0001 par value; 20,000,000 authorized, none issued and outstanding
 
 
 
 
Ordinary shares, $0.0001 par value; 400,000,000 shares authorized; 5,666,429 and 5,649,918 shares issued and outstanding (excluding 15,896,071 and 15,912,582 shares subject to possible redemption) as of March 31, 2017 and December 31, 2016, respectively
 
566
 
 
565
 
Additional paid-in capital
 
7,995,597
 
 
7,991,327
 
Accumulated deficit
 
(2,996,162
)
 
(2,991,891
)
Total Shareholders’ Equity
 
5,000,001
 
 
5,000,001
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
173,485,073
 
$
173,271,209
 

The accompanying notes are an integral part of the condensed financial statements.

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
   
Condensed Statements of Operations
(Unaudited)

 
Three Months Ended
March 31,
 
2017
2016
 
 
 
 
 
 
 
Operating costs
$
179,386
 
$
1,066,912
 
Loss from operations
 
(179,386
)
 
(1,066,912
)
 
 
 
 
 
 
 
Other income:
 
 
 
 
 
 
Interest income
 
200,175
 
 
161,227
 
Unrealized (loss) gain on marketable securities held in Trust Account
 
(25,060
)
 
103,291
 
Net Loss
$
(4,271
)
$
(802,394
)
 
 
 
 
 
 
 
Weighted average shares outstanding, basic and diluted (1)
 
5,649,918
 
 
5,320,250
 
 
 
 
 
 
 
 
Basic and diluted net loss per common share
$
0.00
 
$
(0.15
)
(1) Excludes an aggregate of up to 15,896,071 and 16,137,312 shares subject to redemption at March 31, 2017 and 2016, respectively.

The accompanying notes are an integral part of the condensed financial statements.

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
   
Condensed Statements of Cash Flows
(Unaudited)

 
Three Months Ended
March 31,
 
2017
2016
 
 
 
 
 
 
 
Cash Flows from Operating Activities:
 
 
 
 
 
 
Net loss
$
(4,271
)
$
(802,394
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 
Interest earned on marketable securities held in Trust Account
 
(200,175
)
 
(161,227
)
Unrealized loss (gain) on marketable securities held in Trust Account
 
25,060
 
 
(103,291
)
Changes in operating assets and liabilities:
 
 
 
 
 
 
Prepaid expenses
 
(38,749
)
 
(75,622
)
Accounts payable and accrued expenses
 
70,923
 
 
1,047,005
 
Net cash used in operating activities
 
(147,212
)
 
(95,529
)
 
 
 
 
 
 
 
Cash Flows from Financing Activities:
 
 
 
 
 
 
Proceeds from related party promissory notes
 
147,212
 
 
 
Net cash provided by financing activities
 
147,212
 
 
 
 
 
 
 
 
 
 
Net Change in Cash and Cash Equivalents
 
 
 
(95,529
)
Cash and Cash Equivalents - Beginning
 
1,551
 
 
967,449
 
Cash and Cash Equivalents - Ending
$
1,551
 
$
871,920
 
 
 
 
 
 
 
 
Non-cash investing and financing activities:
 
 
 
 
 
 
Change in value of ordinary shares subject to possible redemption
$
(4,271
)
$
(802,394
)
Reclassification of related party advances to related party promissory notes
$
635,681
 
$
 

The accompanying notes are an integral part of the condensed financial statements.

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 2017
(Unaudited)

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

GP Investments Acquisition Corp. (the “Company”) is a blank check company incorporated in the Cayman Islands on January 28, 2015. The Company was formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (“Business Combination”).

At March 31, 2017, the Company had not yet commenced operations. All activity through March 31, 2017 related to the Company’s formation, its Initial Public Offering (as defined below), which is described below, and identifying and evaluating a target company for a Business Combination and activities in connection with the announced and subsequently terminated proposed acquisition of WKI Holding Company, Inc. (“WKI”) described below.

On April 19, 2016, the Company entered into an Agreement and Plan of Merger (as amended on July 28, 2016, the “Merger Agreement”), by and among the Company, Let’s Go Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of the Company, WKI, and, solely in its capacity as the initial Holder Representative thereunder, WKI Group, LLC, a Delaware limited liability company. Pursuant to the Merger Agreement, the Company agreed to acquire all of the outstanding capital stock of WKI, the parent company of World Kitchen, LLC, a leading multinational manufacturer and marketer of houseware products. On November 11, 2016, the parties entered into a letter agreement terminating the Merger Agreement, effective November 11, 2016.

The registration statement for the Company’s initial public offering (the “Initial Public Offering”) was declared effective on May 19, 2015. On May 26, 2015, the Company consummated the Initial Public Offering of 17,250,000 units (“Units”), which included the exercise by the underwriters of their entire overallotment option in the amount of 2,250,000 Units, at $10.00 per Unit, generating gross proceeds of $172,500,000. The Initial Public Offering is further described in Note 3.

Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 6,062,500 warrants (the “Private Placement Warrants”) at a price of $1.00 per warrant in a private placement to the Company’s sponsor, GPIC Ltd, a Bermuda company (“Sponsor”), generating gross proceeds of $6,062,500. The sale of Private Placement Warrants is further described in Note 4.

Transaction costs amounted to $10,960,590, consisting of $4,312,500 of underwriting fees, $6,037,500 of deferred underwriting fees (which are held in the Trust Account (defined below)) and $610,590 of Initial Public Offering costs. In addition, at March 31, 2017, $1,551 of cash was held outside of the Trust Account and was available for working capital purposes.

Following the closing of the Initial Public Offering, an amount of $172,500,000 ($10.00 per share) from the net proceeds of the sale of the Units in the Initial Public Offering and the Private Placement Warrants was placed in a trust account (“Trust Account”) and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “1940 Act”), with a maturity of 180 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of paragraphs (c)(2), (c)(3) and (c)(4) of Rule 2a-7 of the 1940 Act, as determined by the Company, until the earlier of: (i) the consummation of a Business Combination or (ii) the distribution of the Trust Account as described below.

The Company’s management has broad discretion with respect to the specific application of the net proceeds of its Initial Public Offering and Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. The Company’s Units are listed on the Nasdaq Capital Market (“NASDAQ”). Pursuant to the NASDAQ listing rules, the Company’s Business Combination must be with a target business or businesses whose collective fair market value is equal to at least 80% of the balance in the Trust Account at the time of the execution of a definitive agreement for such Business Combination. There is no assurance that the Company will be able to successfully effect a Business Combination.

The Company will provide its shareholders with the opportunity to redeem all or a portion of their shares included in the Units sold in the Initial Public Offering (the “Public Shares”) upon the completion of a Business

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS  (continued)
MARCH 31, 2017
(Unaudited)

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS  (continued)

Combination either (i) in connection with a shareholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The per-share price of the Public Shares to be redeemed (initially $10.00 per share), payable in cash, will be equal to the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of a Business Combination, including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its income tax obligations, divided by the number of then outstanding Public Shares. The per-share amount to be distributed to shareholders who redeem their shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriter (as discussed in Note 6). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. However, in no event will the Company redeem its Public Shares in an amount that would cause its net tangible assets to be less than $5,000,001. The Company’s initial shareholders have agreed to waive their redemption rights with respect to the founder shares (as defined in Note 5) and Public Shares in connection with the completion of a Business Combination. If a shareholder vote is not required by law and the Company does not decide to hold a shareholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Memorandum and Articles of Association, conduct the redemptions pursuant to the tender offer rules of the Securities and Exchange Commission (“SEC”), and file tender offer documents with the SEC prior to completing a Business Combination.

If, however, a shareholder approval of the transaction is required by law, or the Company decides to obtain shareholder approval for business or other legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks shareholder approval, it will complete a Business Combination only if a majority of the outstanding ordinary shares voted are voted in favor of the Business Combination. If the Company seeks shareholder approval in connection with a Business Combination, the initial shareholders have agreed to vote their founder shares and any Public Shares purchased during or after the Initial Public Offering in favor of a Business Combination. Additionally, each shareholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction.

If the Company seeks shareholder approval of a Business Combination and it does not conduct redemptions in connection with a Business Combination pursuant to the tender offer rules, the Company’s Amended and Restated Memorandum and Articles of Association provides that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 20% of the shares sold in the Initial Public Offering (“Excess Shares”). However, the Company would not be restricting the shareholders’ ability to vote all of their shares (including Excess Shares) for or against a Business Combination.

The Company has until May 26, 2017 to complete a Business Combination (the “Combination Period”). The Company is scheduled to hold a shareholders meeting on May 23, 2017, pursuant to which it is proposing to amend and restate its Memorandum and Articles of Association in order to extend the date by which the Company must consummate a Business Combination from May 26, 2017 to November 27, 2017 (the “Extended Combination Period”). On April 24, 2017, the Company filed a definitive proxy statement (the “Proxy Statement”) with the SEC relating to such shareholder meeting. Further information in connection with such shareholders meeting is included in the Proxy Statement. If the Company is unable to complete a Business Combination within the Combination Period or the Extended Combination Period (if approved by the shareholders as described in the Proxy Statement), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but no more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its income tax obligations (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public shareholders’ rights as shareholders (including the right to receive further liquidation

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS  (continued)
MARCH 31, 2017
(Unaudited)

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS  (continued)

distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining shareholders and the Company’s board of directors, proceed to commence a voluntary liquidation and thereby a formal dissolution of the Company, subject in each case to its obligations to provide for claims of creditors and the requirements of the laws of the Cayman Islands and other applicable law. There will be no redemption rights or liquidating distributions with respect to the Company’s Warrants, which will expire worthless if the Company fails to complete a Business Combination within the Combination Period or the Extended Combination Period (if approved by the shareholders as described in the Proxy Statement).

The initial shareholders have agreed to waive their rights to liquidating distributions from the Trust Account with respect to the founder shares if the Company fails to complete a Business Combination during the Combination Period or the Extended Combination (if approved by the shareholders as described in the Proxy Statement). However, if the initial shareholders acquire Public Shares in or after the Initial Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if the Company fails to complete a Business Combination within the Combination Period or the Extended Combination (if approved by the shareholders as described in the Proxy Statement). The underwriter has agreed to waive its rights to the deferred underwriting commission held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Period or the Extended Combination (if approved by the shareholders as described in the Proxy Statement) and, in such event, such amounts will be included with the funds held in the Trust Account that will be available to fund the redemption of the Company’s Public Shares. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the $10.00 per share initially held in the Trust Account. In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a vendor for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account. This liability will not apply with respect to any claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in the Trust Account or to any claims under the Company’s indemnity of the underwriter of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third party claims.

The Company has principally financed its operations from inception using proceeds from the sale of its equity securities to its initial shareholders and such amount of proceeds from the Initial Public Offering that were placed in an account outside of the Trust Account for working capital purposes. As of March 3, 2017, the Company had $1,551 held outside of the Trust Account. Interest earned on the Trust Account balance through March 31, 2017 available to be released to the Company for the payment of income tax obligations amounted to approximately $727,000. As of March 2017, the Sponsor has committed to provide loans to the Company up to a total aggregate amount of $3,400,000, of which $2,682,893 was outstanding as of March 31, 2017 (see Note 5). Based on the foregoing, the Company believes it will have sufficient cash to meet its needs through the earlier of consummation of a Business Combination or the end of the Combination Period or the end of the Extended Combination Period (if approved by the shareholders as described in the Proxy Statement), the date that the Company will be required to cease all operations except for the purpose of winding up, if a Business Combination is not consummated.

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS  (continued)
MARCH 31, 2017
(Unaudited)

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting.

Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

The accompanying unaudited condensed financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2016 as filed with the SEC, which contains the audited financial statements and notes thereto. The financial information as of December 31, 2016 is derived from the audited financial statements presented in the Company's Annual Report on Form 10-K for the year ended December 31, 2016. The interim results for the three months ended March 31, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017 or for any future interim periods.

Emerging growth company

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future events. Accordingly, the actual results could differ significantly from those estimates.

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS  (continued)
MARCH 31, 2017
(Unaudited)

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (continued)

Cash and cash equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of March 31, 2017 and December 31, 2016.

Cash and marketable securities held in Trust Account

The amounts held in the Trust Account represent substantially all of the proceeds of the Initial Public Offering and are classified as restricted assets since such amounts can only be used by the Company in connection with the consummation of a Business Combination. As of March 31, 2017, cash and marketable securities held in the Trust Account consisted of $173,227,105 in United States Treasury Bills with a maturity date of 180 days or less.

Ordinary shares subject to possible redemption

The Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Ordinary shares subject to mandatory redemption (if any) are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at March 31, 2017 and December 31, 2016, the ordinary shares subject to possible redemption are presented as temporary equity, outside of the shareholders’ equity section of the Company’s balance sheet.

Income taxes

The Company complies with the accounting and reporting requirements of ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company’s management determined that the Cayman Islands is the Company’s only major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of March 31, 2017, there were no amounts accrued for interest and penalties. There were no unrecognized tax benefits as of March 31, 2017. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position over the next twelve months.

The Company may be subject to potential examination by U.S. federal, U.S. states or foreign taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with U.S. federal, U.S. state and foreign tax laws.

The Company’s tax provision is zero because the Company is organized in the Cayman Islands with no connection to any other taxable jurisdiction. As such, the Company has no deferred tax assets. The Company is considered to be an exempted Cayman Islands Company, and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States.

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS  (continued)
MARCH 31, 2017
(Unaudited)

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (continued)

Net loss per share

The Company complies with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share.” Net loss per share is computed by dividing net loss by the weighted average number of ordinary shares outstanding during the period. Ordinary shares subject to possible redemption at March 31, 2017 and 2016 have been excluded from the calculation of basic loss per share since such shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. The Company has not considered the effect of warrants to purchase 14,687,500 ordinary shares in the calculation of diluted loss per share, since the exercise of the warrants is contingent upon the occurrence of future events. As a result, diluted loss per share is the same as basic loss per share for the periods presented.

Concentration of credit risk

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in a financial institution which, at times may exceed the Federal depository insurance coverage of $250,000. At March 31, 2017, the Company had not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Fair value of financial instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature.

Recent Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements.

NOTE 3. INITIAL PUBLIC OFFERING

On May 26, 2015, the Company sold 15,000,000 Units at a purchase price of $10.00 per Unit. In addition, as a result of the underwriters election to exercise their entire over-allotment option, the Company sold an additional 2,250,000 Units to the underwriters at a purchase price of $10.00 per Unit. Each Unit consists of one ordinary share and one-half of one warrant (“Public Warrant”). Each whole Public Warrant entitles the holder to purchase one ordinary share at a price of $11.50 per share (see Note 7).

NOTE 4. PRIVATE PLACEMENT

Simultaneously with the Initial Public Offering, the Sponsor purchased an aggregate of 6,062,500 Private Placement Warrants at a purchase price of $1.00 per warrant in a private placement. Each Private Placement Warrant is exercisable to purchase one ordinary share at $11.50 per share. The proceeds from the Private Placement Warrants were added to the net proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period or the Extended Combination (if approved by the shareholders as described in the Proxy Statement), the proceeds of the sale of the Private Placement Warrants will be used to fund the redemption of the Company’s Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless. There will be no redemption rights or liquidating distributions with respect to the Private Placement Warrants.

NOTE 5. RELATED PARTY TRANSACTIONS

Founder Shares

On March 2, 2015, the Company issued 4,312,500 ordinary shares to GPIAC, LLC, a company whose sole member is the Sponsor (the “founder shares”), for an aggregate purchase price of $25,000. The 4,312,500 founder shares included an aggregate of up to 562,500 shares subject to forfeiture by the initial shareholders (or their

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS  (continued)
MARCH 31, 2017
(Unaudited)

NOTE 5. RELATED PARTY TRANSACTIONS  (continued)

permitted transferees) on a pro rata basis depending on the extent to which the underwriter’s over-allotment was exercised. As a result of the underwriter’s election to exercise its full over-allotment option to purchase 2,250,000 Units on May 26, 2015 (see Note 6), 562,500 founder shares were no longer subject to forfeiture. The founder shares are identical to the Public Shares included in the Units sold in the Initial Public Offering, except that (1) the founder shares are subject to certain transfer restrictions and (2) the initial shareholders have agreed (i) to waive their redemption rights with respect to the founder shares and Public Shares purchased during or after the Initial Public Offering in connection with the completion of a Business Combination and (ii) to waive their rights to liquidating distributions from the Trust Account with respect to the founder shares if the Company fails to complete a Business Combination within the Combination Period or the Extended Combination (if approved by the shareholders as described in the Proxy Statement).

Administrative Services Fee

Commencing on May 19, 2015, the Company has agreed to pay an affiliate of the Sponsor a monthly fee of $10,000 for general and administrative services. For the three months ended March 31, 2017 and 2016, the Company incurred $30,000 and $30,000, respectively, of administrative service fees, of which $90,000 and $60,000, respectively, is payable and included in accounts payable and accrued expenses in the accompanying condensed balance sheet as of March 31, 2017 and December 31, 2016, respectively.

Related Party Advances

Through December 31, 2016, the Sponsor advanced an aggregate of $635,681 in order to finance transaction costs in connection with the terminated Business Combination with WKI. The advances were non-interest bearing, unsecured and payable only upon the completion of a Business Combination. As a result of the amendment to the Sponsor’s commitment to provide loans to the Company of up to a total aggregate amount of $3,400,000 (see below), the outstanding advances of $635,681 were reclassified to related party promissory loans and are now included in the outstanding amounts owed under such loans. Accordingly, as of March 31, 2017, there are no related party advances outstanding.

Related Party Loans

As of March 2017, the Sponsor has committed to provide loans to the Company up to an aggregate of $3,400,000 in order to finance transaction costs in connection with a Business Combination. The loans are evidenced by a promissory note, are non-interest bearing, unsecured and will only be repaid upon the completion of a Business Combination. As of March 31, 2017, $2,682,893 was outstanding under the loans.

Other than as described above, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, loan the Company additional funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds held in the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account.

In the event that a Business Combination does not close, the Company may use a portion of the working capital held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Up to $1,000,000 of Working Capital Loans may be convertible into warrants of the post business combination entity at a price of $1.00 per warrant at the option of the lender. Such warrants would be identical to the Private Placement Warrants. The terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to the Working Capital Loans.

NOTE 6. COMMITMENTS AND CONTINGENCIES

Contingent Transaction Fee Arrangements

The Company has entered into fee arrangements with certain service providers and advisors pursuant to which certain fees incurred by the Company in connection with a potential Business Combination will be deferred and become payable only if the Company consummates a Business Combination. If a Business Combination does not

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GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS  (continued)
MARCH 31, 2017
(Unaudited)

NOTE 6. COMMITMENTS AND CONTINGENCIES  (continued)

occur, the Company will not be required to pay these contingent fees. As of March 31, 2017, the amount of these contingent fees was approximately $3,993,000. To the extent a Business Combination is consummated, the Company anticipates incurring a significant amount of additional costs. There can be no assurances that the Company will complete a Business Combination.

Registration Rights

Pursuant to a registration rights agreement entered into on May 19, 2015 with the holders of the founder shares, Private Placement Warrants and Warrants, the holders of the majority of these securities are entitled to make up to three demands, excluding short form demands, that the Company register such securities and shares that may be issued upon conversion of the Private Placement Warrants, Warrants and Working Capital Loans, if any. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act to become effective until termination of the applicable Lock-Up Period (as defined in the registration rights agreement). The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The underwriters are entitled to an underwriting discount of 6.0%, of which two and one-half percent (2.5%), or $4,312,500, was paid in cash at the closing of the Initial Public Offering on May 26, 2015, and up to three and one-half percent (3.5%), or $6,037,500, has been deferred. The deferred fee will be paid in cash upon the closing of a Business Combination from the amounts held in the Trust Account, subject to the terms of the underwriting agreement.

NOTE 7. SHAREHOLDERS’ EQUITY

Preferred Shares - The Company is authorized to issue 20,000,000 preferred shares with a par value of $0.0001 per share in one or more series. The Company’s board of directors will be authorized to fix the voting rights, if any, designations, powers, preferences, the relative, participating, optional or other special rights and any qualifications, limitations and restrictions thereof, applicable to the shares of each series. At March 31, 2017, there are no preferred shares designated, issued or outstanding.

Ordinary Shares - The Company is authorized to issue up to 400,000,000 ordinary shares, with a par value of $0.0001 per share. Holders of the Company’s ordinary shares are entitled to one vote for each share. At March 31, 2017, there were 5,666,429 ordinary shares issued and outstanding (excluding 15,896,071 ordinary shares subject to possible redemption).

Warrants - Public Warrants may only be exercised for a whole number of ordinary shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination or (b) 12 months from the closing of the Initial Public Offering; provided in each case that the Company has an effective registration statement under the Securities Act covering the ordinary shares issuable upon exercise of the Public Warrants and a current prospectus relating to them is available (or the Company permits holders to exercise their Public Warrants on a cashless basis and such cashless exercise is exempt from registration under the Securities Act). The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation.

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the ordinary shares issuable upon exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions.

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS  (continued)
MARCH 31, 2017
(Unaudited)

NOTE 7. SHAREHOLDERS’ EQUITY  (continued)

Additionally, the Private Placement Warrants will be non-redeemable so long as they are held by the initial purchasers or such purchasers’ permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or such purchasers’ permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

The exercise price and number of ordinary shares issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a share dividend, or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuances of ordinary shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. Accordingly, the warrants may expire worthless.

NOTE 8. FAIR VALUE MEASUREMENTS

The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.

The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.
Level 3: Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.

The following table presents information about the Company’s assets that are measured at fair value on a recurring basis at March 31, 2017 and December 31, 2016, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

Description
Level
March 31,
2017
December 31,
2016
Assets:
 
 
 
 
 
 
 
 
 
Cash and marketable securities held in Trust Account
 
1
 
$
173,227,105
 
$
173,051,990
 

NOTE 9. SUBSEQUENT EVENTS

The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements were issued for potential recognition or disclosure. Other than as described below, the Company did not identify subsequent events that would have required adjustment to or disclosure in the financial statements.

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS  (continued)
MARCH 31, 2017
(Unaudited)

NOTE 9. SUBSEQUENT EVENTS  (continued)

The Company is scheduled to hold a shareholders meeting on May 23, 2017, pursuant to which it is proposing, among other things, to amend its Memorandum and Articles of Association in order to extend the date by which the Company must consummate a Business Combination from May 26, 2017 to November 27, 2017. On April 24, 2017, the Company filed a Proxy Statement with the SEC relating to such shareholders meeting. Further information in connection with such shareholders meeting is included in the Proxy Statement.

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GP INVESTMENTS ACQUISITION CORP.
   
Financial Statements as of December 31, 2016 and 2015
and for the Year Ended December 31, 2016
and for the Period from January 28, 2015 (Inception)
through December 31, 2015

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Report of Independent Registered Public Accounting Firm

To the Audit Committee of the Board of Directors and Shareholders
of GP Investments Acquisition Corp.

We have audited the accompanying balance sheets of GP Investments Acquisition Corp. (the “Company”) as of December 31, 2016 and 2015 the related statements of operations, changes in shareholders’ equity, and cash flows for the year ended December 31, 2016 and for the period from January 28, 2015 (inception) through December 31, 2015. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of GP Investments Acquisition Corp. as of December 31, 2016 and 2015, and the results of its operations and its cash flows for the year ended December 31, 2016 and for the period from January 28, 2015 (inception) through December 31, 2015 in conformity with accounting principles generally accepted in the United States of America.

/s/ Marcum LLP

Marcum LLP
New York, NY
March 16, 2017

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GP INVESTMENTS ACQUISITION CORP.
   
Balance Sheets

 
December 31
 
2016
2015
ASSETS
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
Cash and cash equivalents
$
1,551
 
$
967,449
 
Prepaid expenses
 
217,668
 
 
7,951
 
Total Current Assets
 
219,219
 
 
975,400
 
 
 
 
 
 
 
 
Cash and marketable securities held in Trust Account
 
173,051,990
 
 
172,578,252
 
 
 
 
 
 
 
 
TOTAL ASSETS
$
173,271,209
 
$
173,553,652
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
Current Liabilities
 
 
 
 
 
 
Accounts payable and accrued expenses
$
63,009
 
$
19,968
 
Advances from related party
 
635,681
 
 
 
Total Current Liabilities
 
698,690
 
 
19,968
 
 
 
 
 
 
 
 
Deferred underwriting fees
 
6,037,500
 
 
6,037,500
 
Promissory note – related party
 
1,900,000
 
 
 
Total Liabilities
 
8,636,190
 
 
6,057,468
 
 
 
 
 
 
 
 
Commitments
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary shares subject to possible redemption, 15,912,582 and 16,242,250 shares at redemption value as of December 31, 2016 and 2015, respectively
 
159,635,018
 
 
162,496,183
 
 
 
 
 
 
 
 
Shareholders’ Equity
 
 
 
 
 
 
Preferred shares, $0.0001 par value; 20,000,000 authorized, none issued and outstanding
 
 
 
 
Ordinary shares, $0.0001 par value; 400,000,000 shares authorized; 5,649,918 and 5,320,250 shares issued and outstanding (excluding 15,912,582 and 16,242,250 shares subject to possible redemption) as of December 31, 2016 and 2015, respectively
 
565
 
 
532
 
Additional paid-in capital
 
7,991,327
 
 
5,130,195
 
Accumulated deficit
 
(2,991,891
)
 
(130,726
)
Total Shareholders’ Equity
 
5,000,001
 
 
5,000,001
 
 
 
 
 
 
 
 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
173,271,209
 
$
173,553,652
 

The accompanying notes are an integral part of the financial statements.

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GP INVESTMENTS ACQUISITION CORP.
   
Statements of Operations

 
Year Ended
December 31, 2016
For the Period from
January 28, 2015
(inception) through
December 31, 2015
 
 
 
 
 
 
 
Operating costs
$
3,334,903
 
$
208,978
 
Loss from operations
 
(3,334,903
)
 
(208,978
)
 
 
 
 
 
 
 
Other income:
 
 
 
 
 
 
Interest income
 
485,356
 
 
78,252
 
Unrealized loss on marketable securities held in the Trust Account
 
(11,618
)
 
 
Net Loss
$
(2,861,165
)
$
(130,726
)
 
 
 
 
 
 
 
Weighted average shares outstanding, basic and diluted
 
5,466,064
 
 
4,761,628
 
 
 
 
 
 
 
 
Basic and diluted net loss per common share
$
(0.52
)
$
(0.03
)

The accompanying notes are an integral part of the financial statements.

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GP INVESTMENTS ACQUISITION CORP.
   
Statement of Changes in Shareholders’ Equity
   
Year ended December 31, 2016 and for the Period from January 28, 2015 (inception) through December 31, 2015

 
Ordinary Shares
Additional
Paid-in
Capital
Accumulated
Deficit
Total
Shareholders’
Equity
 
Shares
Amount
Balance at January 27, 2015 (Inception)
 
 
$
 
$
 
$
 
$
 
Ordinary shares issued to initial shareholder
 
4,312,500
 
 
431
 
 
24,569
 
 
 
 
25,000
 
Sale of 15,000,000 Units, net of underwriters discount and offering expenses
 
15,000,000
 
 
1,500
 
 
140,387,910
 
 
 
 
140,389,410
 
Sale of 2,250,000 over-allotment Units to underwriters, net of underwriters discount
 
2,250,000
 
 
225
 
 
21,149,775
 
 
 
 
21,150,000
 
Sale of 6,062,500 Private Placement Warrants
 
 
 
 
 
6,062,500
 
 
 
 
6,062,500
 
Ordinary shares subject to redemption
 
(16,242,250
)
 
(1,624
)
 
(162,494,559
)
 
 
 
(162,496,183
)
Net loss
 
 
 
 
 
 
 
(130,726
)
 
(130,726
)
Balance – December 31, 2015
 
5,320,250
 
 
532
 
 
5,130,195
 
 
(130,726
)
 
5,000,001
 
Ordinary shares subject to redemption
 
329,668
 
 
33
 
 
2,861,132
 
 
 
 
2,861,165
 
Net loss
 
 
 
 
 
 
 
(2,861,165
)
 
(2,861,165
)
Balance – December 31, 2016
 
5,649,918
 
$
565
 
$
7,991,327
 
$
(2,991,891
)
$
5,000,001
 

The accompanying notes are an integral part of the financial statements.

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GP INVESTMENTS ACQUISITION CORP.
   
Statements of Cash Flows

 
Year Ended
December 31,
2016
For the period
from January 28,
2015 (inception)
through
December 31,
2015
Cash Flows from Operating Activities:
 
 
 
 
 
 
Net loss
$
(2,861,165
)
$
(130,726
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 
Interest earned on marketable securities held in Trust Account
 
(485,356
)
 
(78,252
)
Unrealized loss on marketable securities held in Trust Account
 
11,618
 
 
 
Changes in operating assets and liabilities:
 
 
 
 
 
 
Prepaid expenses
 
(209,717
)
 
(7,951
)
Accounts payable and accrued expenses
 
43,041
 
 
19,968
 
Net cash used in operating activities
 
(3,501,579
)
 
(196,961
)
 
 
 
 
 
 
 
Cash Flows from Investing Activities:
 
 
 
 
 
 
Investment of cash and marketable securities held in trust
 
 
 
(172,500,000
)
Net cash used in investing activities
 
 
 
(172,500,000
)
 
 
 
 
 
 
 
Cash Flows from Financing Activities:
 
 
 
 
 
 
Proceeds from issuance of ordinary shares to initial shareholder
 
 
 
25,000
 
Proceeds from sale of Units, net of underwriting discounts paid
 
 
 
146,250,000
 
Proceeds from sale of Private Placement Warrants
 
 
 
6,062,500
 
Proceeds from sale of over-allotment Units, net of underwriting discounts paid
 
 
 
21,937,500
 
Payment of offering costs
 
 
 
(525,590
)
Proceeds from related party advances
 
635,681
 
 
1,321
 
Repayment of related party advances
 
 
 
(86,321
)
Proceeds from related party promissory notes
 
1,900,000
 
 
100,000
 
Repayment of related party promissory notes
 
 
 
(100,000
)
Net cash provided by financing activities
 
2,535,681
 
 
173,664,410
 
 
 
 
 
 
 
 
Net Change in Cash and Cash Equivalents
 
(965,898
)
 
967,449
 
Cash and Cash Equivalents – Beginning
 
967,449
 
 
 
Cash and Cash Equivalents – Ending
$
1,551
 
$
967,449
 
 
 
 
 
 
 
 
Non-cash investing and financing activities:
 
 
 
 
 
 
Payment of offering costs and operational costs pursuant to related party advances
$
 
$
85,000
 
Deferred underwriting fees
$
 
$
6,037,500
 
Initial classification of ordinary shares subject to possible redemption
$
 
$
162,617,560
 
Change in value of ordinary shares subject to possible redemption
$
2,861,165
 
$
121,377
 

The accompanying notes are an integral part of the financial statements.

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GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
DECEMBER 31, 2016

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

GP Investments Acquisition Corp. (the “Company”) is a blank check company incorporated in the Cayman Islands on January 28, 2015. The Company was formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (“Business Combination”).

At December 31, 2016, the Company had not yet commenced operations. All activity through December 31, 2016 related to the Company’s formation, its Initial Public Offering (as defined below), which is described below, and identifying and evaluating a target company for a Business Combination and activities in connection with the announced and subsequently terminated proposed acquisition of WKI Holding Company, Inc. (“WKI”) described below.

On April 19, 2016, the Company entered into an Agreement and Plan of Merger (as amended on July 28, 2016, the “Merger Agreement”), by and among the Company, Let’s Go Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of the Company, WKI, and, solely in its capacity as the initial Holder Representative thereunder, WKI Group, LLC, a Delaware limited liability company. Pursuant to the Merger Agreement, the Company agreed to acquire all of the outstanding capital stock of WKI, the parent company of World Kitchen, LLC, a leading multinational manufacturer and marketer of houseware products. On November 11, 2016, the parties entered into a letter agreement terminating the Merger Agreement, effective November 11, 2016.

The registration statement for the Company’s initial public offering (the “Initial Public Offering”) was declared effective on May 19, 2015. On May 26, 2015, the Company consummated the Initial Public Offering of 17,250,000 units (“Units”), which included the exercise by the underwriters of their entire overallotment option in the amount of 2,250,000 Units, at $10.00 per Unit, generating gross proceeds of $172,500,000. The Initial Public Offering is further described in Note 3.

Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 6,062,500 warrants (the “Private Placement Warrants”) at a price of $1.00 per warrant in a private placement to the Company’s sponsor, GPIC Ltd, a Bermuda company (“Sponsor”), generating gross proceeds of $6,062,500. The sale of Private Placement Warrants is further described in Note 4.

Transaction costs amounted to $10,960,590, consisting of $4,312,500 of underwriting fees, $6,037,500 of deferred underwriting fees (which are held in the Trust Account (defined below)) and $610,590 of Initial Public Offering costs. In addition, at December 31, 2016, $1,551 of cash was held outside of the Trust Account and was available for working capital purposes.

Following the closing of the Initial Public Offering, an amount of $172,500,000 ($10.00 per share) from the net proceeds of the sale of the Units in the Initial Public Offering and the Private Placement Warrants was placed in a trust account (“Trust Account”) and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “1940 Act”), with a maturity of 180 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of paragraphs (c)(2), (c)(3) and (c)(4) of Rule 2a-7 of the 1940 Act, as determined by the Company, until the earlier of: (i) the consummation of a Business Combination or (ii) the distribution of the Trust Account as described below.

The Company’s management has broad discretion with respect to the specific application of the net proceeds of its Initial Public Offering and Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. The Company’s Units are listed on the Nasdaq Capital Market (“NASDAQ”). Pursuant to the NASDAQ listing rules, the Company’s Business Combination must be with a target business or businesses whose collective fair market value is equal to at least 80% of the balance in the Trust Account at the time of the execution of a definitive agreement for such Business Combination. There is no assurance that the Company will be able to successfully effect a Business Combination.

The Company will provide its shareholders with the opportunity to redeem all or a portion of their shares included in the Units sold in the Initial Public Offering (the “Public Shares”) upon the completion of a Business Combination either (i) in connection with a shareholder meeting called to approve the Business Combination or

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
DECEMBER 31, 2016  (continued)

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS  (continued)

(ii) by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The per-share price of the Public Shares to be redeemed (initially $10.00 per share), payable in cash, will be equal to the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of a Business Combination, including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its income tax obligations, divided by the number of then outstanding Public Shares. The per-share amount to be distributed to shareholders who redeem their shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriter (as discussed in Note 6). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. However, in no event will the Company redeem its Public Shares in an amount that would cause its net tangible assets to be less than $5,000,001. The Company’s initial shareholders have agreed to waive their redemption rights with respect to the founder shares (as defined in Note 5) and Public Shares in connection with the completion of a Business Combination. If a shareholder vote is not required by law and the Company does not decide to hold a shareholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Memorandum and Articles of Association, conduct the redemptions pursuant to the tender offer rules of the Securities and Exchange Commission (“SEC”), and file tender offer documents with the SEC prior to completing a Business Combination.

If, however, a shareholder approval of the transaction is required by law, or the Company decides to obtain shareholder approval for business or other legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks shareholder approval, it will complete a Business Combination only if a majority of the outstanding ordinary shares voted are voted in favor of the Business Combination. If the Company seeks shareholder approval in connection with a Business Combination, the initial shareholders have agreed to vote their founder shares and any Public Shares purchased during or after the Initial Public Offering in favor of a Business Combination. Additionally, each shareholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction.

If the Company seeks shareholder approval of a Business Combination and it does not conduct redemptions in connection with a Business Combination pursuant to the tender offer rules, the Company’s Amended and Restated Memorandum and Articles of Association provides that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 20% of the shares sold in the Initial Public Offering (“Excess Shares”). However, the Company would not be restricting the shareholders’ ability to vote all of their shares (including Excess Shares) for or against a Business Combination.

If the Company is unable to complete a Business Combination within 24 months from the closing of the Initial Public Offering (the “Combination Period”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but no more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its income tax obligations (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining shareholders and the Company’s board of directors, proceed to commence a voluntary liquidation and thereby a formal dissolution of the Company, subject in each case to its obligations to provide for claims of creditors and the requirements of the laws of the Cayman Islands and other applicable law. There will be no redemption rights or liquidating distributions with respect to the Company’s Warrants, which will expire worthless if the Company fails to complete a Business Combination within the Combination Period.

The initial shareholders have agreed to waive their rights to liquidating distributions from the Trust Account with respect to the founder shares if the Company fails to complete a Business Combination during the Combination

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
DECEMBER 31, 2016  (continued)

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS  (continued)

Period. However, if the initial shareholders acquire Public Shares in or after the Initial Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if the Company fails to complete a Business Combination within the Combination Period. The underwriter has agreed to waive its rights to the deferred underwriting commission held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Period and, in such event, such amounts will be included with the funds held in the Trust Account that will be available to fund the redemption of the Company’s Public Shares. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the $10.00 per share initially held in the Trust Account. In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a vendor for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account. This liability will not apply with respect to any claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in the Trust Account or to any claims under the Company’s indemnity of the underwriter of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third party claims.

The Company has principally financed its operations from inception using proceeds from the sale of its equity securities to its initial shareholders and such amount of proceeds from the Initial Public Offering that were placed in an account outside of the Trust Account for working capital purposes. As of December 31, 2016, the Company had $1,551 held outside of the Trust Account. Interest earned on the Trust Account balance through December 31, 2016 available to be released to the Company for the payment of income tax obligations amounted to approximately $552,000. In May 2016, the Sponsor committed to provide loans to the Company up to an aggregate of $500,000 and as of December 31, 2016, the Company amended the previous commitment such that the Sponsor has committed to provide loans to the Company up to a total aggregate amount of $1,900,000, of which $1,900,000 was outstanding as of December 31, 2016 (see Note 5). In February 2017, the Company amended the commitment such that the Sponsor has committed to provide loans to the Company up to a total aggregate amount of $3,400,000. As of December 31, 2016, the Sponsor advanced an aggregate of $635,681 in order to finance transaction costs in connection with the terminated Business Combination with WKI (see Note 5). Based on the foregoing, the Company believes it will have sufficient cash to meet its needs through the earlier of consummation of a Business Combination or May 26, 2017, the date that the Company will be required to cease all operations except for the purpose of winding up, if a Business Combination is not consummated.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules of the Securities and Exchange Commission (“SEC”).

Emerging growth company

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
DECEMBER 31, 2016  (continued)

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (continued)

Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future events. Accordingly, the actual results could differ significantly from those estimates.

Cash and cash equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of December 31, 2016 and 2015.

Cash and marketable securities held in Trust Account

The amounts held in the Trust Account represent substantially all of the proceeds of the Initial Public Offering and are classified as restricted assets since such amounts can only be used by the Company in connection with the consummation of a Business Combination. As of December 31, 2016, cash and marketable securities held in the Trust Account consisted of $173,051,990 in United States Treasury Bills with a maturity date of 180 days or less.

Ordinary share subject to possible redemption

The Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Ordinary shares subject to mandatory redemption (if any) are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at December 31, 2016 and 2015, the ordinary shares subject to possible redemption are presented as temporary equity, outside of the shareholders’ equity section of the Company’s balance sheet.

Income taxes

The Company complies with the accounting and reporting requirements of ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
DECEMBER 31, 2016  (continued)

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (continued)

and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company’s management determined that the Cayman Islands is the Company’s only major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of December 31, 2016, there were no amounts accrued for interest and penalties. There were no unrecognized tax benefits as of December 31. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position over the next twelve months.

The Company may be subject to potential examination by U.S. federal, U.S. states or foreign taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with U.S. federal, U.S. state and foreign tax laws.

The Company’s tax provision is zero because the Company is organized in the Cayman Islands with no connection to any other taxable jurisdiction. As such, the Company has no deferred tax assets. The Company is considered to be an exempted Cayman Islands Company, and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States.

Net loss per share

The Company complies with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share.” Net loss per share is computed by dividing net loss by the weighted average number of ordinary shares outstanding during the period. Ordinary shares subject to possible redemption at December 31, 2016 and 2015 have been excluded from the calculation of basic loss per share since such shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. The Company has not considered the effect of warrants to purchase 14,687,500 ordinary shares in the calculation of diluted loss per share, since the exercise of the warrants is contingent upon the occurrence of future events. As a result, diluted loss per share is the same as basic loss per share for the periods presented.

Concentration of credit risk

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in a financial institution which, at times may exceed the Federal depository insurance coverage of $250,000. At December 31, 2016, the Company had not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Fair value of financial instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”), approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

Recent Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements.

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
DECEMBER 31, 2016  (continued)

NOTE 3. INITIAL PUBLIC OFFERING

On May 26, 2015, the Company sold 15,000,000 Units at a purchase price of $10.00 per Unit. In addition, as a result of the underwriters election to exercise their entire over-allotment option, the Company sold an additional 2,250,000 Units to the underwriters at a purchase price of $10.00 per Unit. Each Unit consists of one ordinary share and one-half of one warrant (“Public Warrant”). Each whole Public Warrant entitles the holder to purchase one ordinary share at a price of $11.50 per share (see Note 7).

NOTE 4. PRIVATE PLACEMENT

Simultaneously with the Initial Public Offering, the Sponsor purchased an aggregate of 6,062,500 Private Placement Warrants at a purchase price of $1.00 per warrant in a private placement. Each Private Placement Warrant is exercisable to purchase one ordinary share at $11.50 per share. The proceeds from the Private Placement Warrants were added to the net proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the proceeds of the sale of the Private Placement Warrants will be used to fund the redemption of the Company’s Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless. There will be no redemption rights or liquidating distributions with respect to the Private Placement Warrants.

NOTE 5. RELATED PARTY TRANSACTIONS

Founder Shares

On March 2, 2015, the Company issued 4,312,500 ordinary shares to GPIAC, LLC, a company whose sole member is the Sponsor (the “founder shares”), for an aggregate purchase price of $25,000. The 4,312,500 founder shares included an aggregate of up to 562,500 shares subject to forfeiture by the initial shareholders (or their permitted transferees) on a pro rata basis depending on the extent to which the underwriter’s over-allotment was exercised. As a result of the underwriter’s election to exercise its full over-allotment option to purchase 2,250,000 Units on May 26, 2015 (see Note 6), 562,500 founder shares were no longer subject to forfeiture. The founder shares are identical to the Public Shares included in the Units sold in the Initial Public Offering, except that (1) the founder shares are subject to certain transfer restrictions, as described in more detail below, and (2) the initial shareholders have agreed (i) to waive their redemption rights with respect to the founder shares and Public Shares purchased during or after the Initial Public Offering in connection with the completion of a Business Combination and (ii) to waive their rights to liquidating distributions from the Trust Account with respect to the founder shares if the Company fails to complete a Business Combination within the Combination Period.

Administrative Services Fee

Commencing on May 19, 2015, the Company has agreed to pay an affiliate of the Sponsor a monthly fee of $10,000 for general and administrative services. For the year ended December 31, 2016 and for the period from January 28, 2015 (inception) through December 31, 2015, the Company incurred $120,000 and $80,000, respectively, of administrative service fees, of which $60,000 and $10,000, respectively, is included in accounts payable and accrued expenses in the accompanying condensed balance sheets.

Related Party Advances

As of December 31, 2016, the Sponsor advanced an aggregate of $635,681 in order to finance transaction costs in connection with the terminated Business Combination with WKI. The advances are non-interest bearing, unsecured and due on demand. In February 2017, the terms of the advances were amended such that they will be payable only upon the completion of a Business Combination.

Related Party Loans

In May 2016, the Sponsor committed to provide loans to the Company up to an aggregate of $500,000 in order to finance transaction costs in connection with the terminated Business Combination with WKI. As of December 31, 2016, the Company amended the previous commitment such that the Sponsor has committed to provide loans to the

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
DECEMBER 31, 2016  (continued)

NOTE 5. RELATED PARTY TRANSACTIONS  (continued)

Company up to a total aggregate amount of $1,900,000. The loans are evidenced by a promissory note, are non-interest bearing, unsecured and will only be repaid upon the completion of a Business Combination. As of December 31, 2016, $1,900,000 was outstanding under the loans. In February 2017, the Company amended the commitment such that the Sponsor has committed to provide loans to the Company up to a total aggregate amount of $3,400,000.

Other than as described above, the Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, loan the Company additional funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds held in the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account.

In the event that a Business Combination does not close, the Company may use a portion of the working capital held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Up to $1,000,000 of Working Capital Loans may be convertible into warrants of the post business combination entity at a price of $1.00 per warrant at the option of the lender. Such warrants would be identical to the Private Placement Warrants. The terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to the Working Capital Loans.

NOTE 6. COMMITMENTS AND CONTINGENCIES

Contingent Transaction Fee Arrangements

The Company has entered into fee arrangements with certain service providers and advisors pursuant to which certain fees incurred by the Company in connection with a potential Business Combination will be deferred and become payable only if the Company consummates a Business Combination. If a Business Combination does not occur, the Company will not be required to pay these contingent fees. As of December 31, 2016, the amount of these contingent fees was approximately $3,993,000. To the extent a Business Combination is consummated, the Company anticipates incurring a significant amount of additional costs. There can be no assurances that the Company will complete a Business Combination.

Registration Rights

Pursuant to a registration rights agreement entered into on May 19, 2015 with the holders of the founder shares, Private Placement Warrants and Warrants, the holders of the majority of these securities are entitled to make up to three demands, excluding short form demands, that the Company register such securities and shares that may be issued upon conversion of the Private Placement Warrants, Warrants and Working Capital Loans, if any. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act to become effective until termination of the applicable Lock-Up Period (as defined in the registration rights agreement). The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The underwriters are entitled to an underwriting discount of 6.0%, of which two and one-half percent (2.5%), or $4,312,500, was paid in cash at the closing of the Initial Public Offering on May 26, 2015, and up to three and one-half percent (3.5%), or $6,037,500, has been deferred. The deferred fee is payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement.

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
DECEMBER 31, 2016  (continued)

NOTE 7. SHAREHOLDERS’ EQUITY

Preferred Shares - The Company is authorized to issue 20,000,000 preferred shares with a par value of $0.0001 per share in one or more series. The Company’s board of directors will be authorized to fix the voting rights, if any, designations, powers, preferences, the relative, participating, optional or other special rights and any qualifications, limitations and restrictions thereof, applicable to the shares of each series. At December 31, 2016, there are no preferred shares designated, issued or outstanding.

Ordinary Shares - The Company is authorized to issue up to 400,000,000 ordinary shares, with a par value of $0.0001 per share. Holders of the Company’s ordinary shares are entitled to one vote for each share. At December 31, 2016, there were 5,649,918 ordinary shares issued and outstanding (excluding 15,912,582 ordinary shares subject to possible redemption).

Warrants - Public Warrants may only be exercised for a whole number of ordinary shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination or (b) 12 months from the closing of the Initial Public Offering; provided in each case that the Company has an effective registration statement under the Securities Act covering the ordinary shares issuable upon exercise of the Public Warrants and a current prospectus relating to them is available (or the Company permits holders to exercise their Public Warrants on a cashless basis and such cashless exercise is exempt from registration under the Securities Act). The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation.

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the ordinary shares issuable upon exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions.

Additionally, the Private Placement Warrants will be non-redeemable so long as they are held by the initial purchasers or such purchasers’ permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or such purchasers’ permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

The exercise price and number of ordinary shares issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a share dividend, or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuances of ordinary shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. Accordingly, the warrants may expire worthless.

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TABLE OF CONTENTS

GP INVESTMENTS ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
DECEMBER 31, 2016  (continued)

NOTE 8. FAIR VALUE MEASUREMENTS

The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.

The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.
Level 3: Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability.

The following table presents information about the Company’s assets that are measured at fair value on a recurring basis at December 31, 2016 and 2015, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

Description
Level
December 31,
2016
December 31,
2015
Assets:
 
 
 
 
 
 
 
 
 
Cash and marketable securities held in Trust Account
 
1
 
$
173,051,990
 
$
172,578,252
 

NOTE 9. SUBSEQUENT EVENTS

The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements were issued for potential recognition or disclosure. Other than as described in Note 5, the Company did not identify subsequent events that would have required adjustment to or disclosure in the financial statements.

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TABLE OF CONTENTS

RIMINI STREET, INC. AND SUBSIDIARIES
   
Unaudited Condensed Consolidated Financial Statements
as of December 31, 2016 and March 31, 2017 ,
and for the Three Months Ended March 31, 201 6 and 201 7

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TABLE OF CONTENTS

RIMINI STREET, INC. AND SUBSIDIARIES
   
Condensed Consolidated Balance Sheets
December 31, 2016 and March 31, 2017
(In thousands, except per share amounts)
(Unaudited)

 
2016
2017
ASSETS
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
$
9,385
 
$
13,237
 
Restricted cash
 
18,852
 
 
20,112
 
Accounts receivable, net of allowance of $36 and $30, respectively
 
55,324
 
 
40,578
 
Receivable from insurance settlement
 
 
 
19,317
 
Prepaid expenses and other
 
5,748
 
 
5,915
 
Total current assets
 
89,309
 
 
99,159
 
Long-term assets:
 
 
 
 
 
 
Property and equipment, net
 
4,559
 
 
4,281
 
Deferred debt issuance costs, net
 
3,950
 
 
3,675
 
Deposits and other
 
965
 
 
1,036
 
Deferred income taxes, net
 
595
 
 
621
 
Total assets
$
99,378
 
$
108,772
 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
Current maturities of long-term debt
$
24,750
 
$
48,131
 
Accounts payable
 
8,839
 
 
6,063
 
Accrued expenses
 
36,650
 
 
32,223
 
Deferred insurance settlement
 
 
 
19,317
 
Liability for embedded derivatives
 
5,400
 
 
10,500
 
Deferred revenue
 
137,293
 
 
138,684
 
Total current liabilities
 
212,932
 
 
254,918
 
Long-term liabilities:
 
 
 
 
 
 
Long-term debt, net of current maturities
 
63,314
 
 
45,096
 
Deferred revenue
 
27,538
 
 
26,592
 
Liability for redeemable warrants
 
7,269
 
 
7,871
 
Deferred rent and other
 
1,835
 
 
1,712
 
Total liabilities
 
312,888
 
 
336,189
 
Commitments and contingencies (Note 8)
 
 
 
 
 
 
Stockholders’ deficit:
 
 
 
 
 
 
Convertible preferred stock, $0.001 par value per share. Authorized, issued and outstanding 100,486 shares; aggregate liquidation preference of $20,551
 
19,542
 
 
19,542
 
Convertible Class A common stock, $0.001 par value. Authorized 500,000 shares; 340 and 368 shares issued and outstanding as of December 31, 2016 and March 31, 2017, respectively
 
 
 
 
Convertible Class B common stock, $0.001 par value. Authorized 192,000 shares; 101,083 and 101,829 shares issued and outstanding as of December 31, 2016 and March 31, 2017, respectively
 
101
 
 
102
 
Common stock; $0.001 par value. Authorized 500,000 shares; no shares issued and outstanding
 
 
 
 
Additional paid-in capital
 
19,003
 
 
19,459
 
Accumulated other comprehensive loss
 
(1,046
)
 
(935
)
Accumulated deficit
 
(251,110
)
 
(265,585
)
Total stockholders’ deficit
 
(213,510
)
 
(227,417
)
Total liabilities and stockholders’ deficit
$
99,378
 
$
108,772
 

The accompanying notes are an integral part of these condensed consolidated financial statements.

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RIMINI STREET, INC. AND SUBSIDIARIES
   
Condensed Consolidated Statements of Operations and Comprehensive Loss
Three Months Ended March 31, 2016 and 2017
(In thousands, except per share amounts)
(Unaudited)

 
2016
2017
Net revenue
$
34,678
 
$
49,070
 
Cost of revenue
 
14,570
 
 
18,356
 
Gross profit
 
20,108
 
 
30,714
 
Operating expenses:
 
 
 
 
 
 
Sales and marketing
 
15,538
 
 
14,696
 
General and administrative
 
6,635
 
 
9,276
 
Litigation costs and related insurance recoveries:
 
 
 
 
 
 
Pre-judgment interest
 
891
 
 
 
Professional fees and other defense costs of litigation
 
5,477
 
 
4,971
 
Insurance recoveries
 
(989
)
 
(1,026
)
Total operating expenses
 
27,552
 
 
27,917
 
Operating income (loss)
 
(7,444
)
 
2,797
 
Non-operating expenses:
 
 
 
 
 
 
Interest expense
 
(211
)
 
(9,936
)
Debt financing fees
 
 
 
(1,282
)
Loss on embedded derivatives and redeemable warrants
 
 
 
(5,702
)
Other, net
 
(75
)
 
89
 
Loss before income taxes
 
(7,730
)
 
(14,034
)
Income tax expense
 
(267
)
 
(441
)
Net loss
 
(7,997
)
 
(14,475
)
Foreign currency translation gain (loss)
 
(60
)
 
111
 
Comprehensive loss
$
(8,057
)
$
(14,364
)
 
 
 
 
 
 
 
Net loss per share attributable to Class A and Class B common stockholders (basic and diluted)
$
(0.08
)
$
(0.14
)
 
 
 
 
 
 
 
Weighted average number of Class A and Class B common shares outstanding (basic and diluted)
 
101,310
 
 
101,721
 

The accompanying notes are an integral part of these condensed consolidated financial statements.

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RIMINI STREET, INC. AND SUBSIDIARIES
   
Condensed Consolidated Statements of Stockholders’ Deficit
Three Months Ended March 31, 2017
(In thousands)
(Unaudited)

 
Convertible
Preferred Stock
Convertible Common Stock
Additional
Paid-in
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total
Class A
Class B
 
Shares
Amount
Shares
Amount
Shares
Amount
Balances, December 31, 2016
 
100,486
 
$
19,542
 
 
340
 
$
 
 
101,083
 
$
101
 
$
19,003
 
$
(1,046
)
$
(251,110
)
$
(213,510
)
Stock-based compensation
 
 
 
 
 
 
 
 
 
 
 
 
 
361
 
 
 
 
 
 
361
 
Warrant expense
 
 
 
 
 
 
 
 
 
 
 
 
 
32
 
 
 
 
 
 
32
 
Issuance of shares upon exercise of stock options
 
 
 
 
 
28
 
 
 
 
746
 
 
1
 
 
63
 
 
 
 
 
 
64
 
Foreign currency translation gain
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
111
 
 
 
 
111
 
Net loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(14,475
)
 
(14,475
)
Balances, March 31, 2017
 
100,486
 
$
19,542
 
 
368
 
$
 
 
101,829
 
$
102
 
$
19,459
 
$
(935
)
$
(265,585
)
$
(227,417
)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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RIMINI STREET, INC. AND SUBSIDIARIES
   
Condensed Consolidated Statements of Cash Flows
Three Months Ended March 31, 2016 and 2017
(In thousands)
(Unaudited)

 
2016
2017
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
Net loss
$
(7,997
)
$
(14,475
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
 
Depreciation and amortization
 
425
 
 
476
 
Accretion and amortization of debt discounts and issuance costs
 
 
 
6,145
 
Stock-based compensation
 
617
 
 
361
 
Loss on embedded derivatives and redeemable warrants, net
 
 
 
5,702
 
Paid-in-kind interest expense
 
 
 
808
 
Deferred income taxes
 
 
 
(20
)
Other
 
25
 
 
30
 
Changes in operating assets and liabilities:
 
 
 
 
 
 
Accounts receivable
 
11,536
 
 
14,902
 
Receivable from insurance settlement
 
 
 
(19,317
)
Prepaid expenses, deposits and other
 
(2,213
)
 
162
 
Accounts payable
 
(217
)
 
(2,848
)
Accrued expenses
 
(707
)
 
(4,922
)
Deferred insurance settlement
 
 
 
19,317
 
Accrued pre-judgement interest on litigation settlement
 
891
 
 
 
Deferred revenue
 
3,643
 
 
273
 
Net cash provided by operating activities
 
6,003
 
 
6,594
 
CASH FLOWS USED IN INVESTING ACTIVITIES:
 
 
 
 
 
 
Capital expenditures
 
(53
)
 
(101
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
Net proceeds from borrowings
 
504
 
 
 
Principal payments on borrowings
 
(164
)
 
(1,500
)
Principal payments on capital leases
 
(135
)
 
(214
)
Proceeds from exercise of employee stock options
 
12
 
 
64
 
Net cash provided by (used in) financing activities
 
217
 
 
(1,650
)
Effect of foreign currency translation changes
 
99
 
 
269
 
Net change in cash, cash equivalents and restricted cash
 
6,266
 
 
5,112
 
Cash, cash equivalents and restricted cash at beginning of period
 
12,559
 
 
28,237
 
Cash, cash equivalents and restricted cash at end of period
$
18,825
 
$
33,349
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
Cash paid for interest
$
211
 
$
3,262
 
Cash paid for income taxes
 
302
 
 
513
 
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
 
 
 
 
 
 
Adjustment for updated calculation of mandatory trigger event exit fees and related debt discount under Credit Facility
$
 
$
1,961
 
Purchase of equipment under capital lease obligations
 
145
 
 
 
Payables for capital expenditures
 
 
 
59
 

The accompanying notes are an integral part of these condensed consolidated financial statements.

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Description of Business

Rimini Street, Inc. (“Rimini Street” or the “Company”) was incorporated in the state of Nevada in September 2005. The Company provides enterprise software support services.

Basis of Presentation and Consolidation

The unaudited condensed consolidated financial statements, which include the accounts of the Company and its wholly-owned subsidiaries, are prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). All significant intercompany balances and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the unaudited condensed consolidated financial statements have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's consolidated financial statements for the year ended December 31, 2016, included elsewhere herein.

The accompanying condensed balance sheet and related disclosures as of December 31, 2016 have been derived from the Company’s audited financial statements. The Company’s financial condition as of March 31, 2017, and operating results for the three months ended March 31, 2017 are not necessarily indicative of the financial condition and results of operations that may be expected for any future interim period or for the year ending December 31, 2017.

The Company has evaluated subsequent events through June 30, 2017, the date the unaudited condensed consolidated financial statements were issued.

Liquidity

As of March 31, 2017, the Company had available cash, cash equivalents and restricted cash of $33.3 million. As of March 31, 2017 and June 30, 2017, the Company has cash obligations related to its Credit Facility that are due within the next 12 months for principal, interest and other fees of $65.8 million and $40.8 million, respectively. The Company believes that current cash, cash equivalents, restricted cash and future cash flow from operating activities will be sufficient to meet the Company’s anticipated cash needs, including working capital needs, capital expenditures and various contractual obligations for at least 12 months from the issuance date of these financial statements.

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies followed by the Company are set forth in Note 2 to the Company’s consolidated financial statements for the year ended December 31, 2016 included elsewhere herein. For the three months ended March 31, 2017, there were no significant changes in the Company’s estimates and critical accounting policies.

Use of Estimates

The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires the Company to make judgments, assumptions, and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. The Company’s significant accounting estimates include, but are not necessarily limited to, revenue recognition, allowance for doubtful accounts, valuation of stock options, warrants and embedded derivatives, useful lives for depreciation and amortization, deferred income taxes and related valuation allowances, and evaluation and measurement of

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES   (continued)

contingencies. To the extent there are material differences between the Company’s estimates and the actual results, the Company’s future consolidated results of operation may be affected.

Recent Accounting Pronouncements

Standards Required to be Adopted in Future Years. The following recently issued accounting standards are not yet effective; the Company is assessing the impact these standards will have on its consolidated financial statements, as well as the method of adoption and period in which adoption is expected to occur:

In February 2016, the FASB issued ASU No. 2016-02, Leases , which require organizations that lease assets (“lessees”) to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. Under the new guidance, both finance and operating leases will be required to be recognized on the balance sheet. Additional quantitative and qualitative disclosures, including significant judgments made by the management, will also be required. For public entities, the new guidance will be effective in fiscal years, and interim periods within those fiscal years beginning after December 15, 2018. For other entities, the new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. However, the new guidance must be adopted retrospectively to each prior reporting period presented upon initial adoption. Management has not completed its evaluation to determine the impact that adoption of this standard will have on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The new guidance provides a five-step process for recognizing revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also requires expanded qualitative and quantitative disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for public companies with annual reporting periods beginning after December 31, 2017, and is to be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial adoption. Early adoption is permitted for all entities but not before the original effective date for public entities. The guidance is effective for private companies with annual reporting periods beginning after December 15, 2018, with the option of adopting early at the same time as public companies. Management is currently reviewing historical contracts to quantify the impact that the adoption of the standard will have on specific performance obligations, as well as the recognition of costs related to obtaining customer contracts. Management has not completed its evaluation to determine the impact and method that adoption of this standard will have on the Company’s consolidated financial statements.

Recently Adopted Standards. The following recently issued accounting standard was adopted effective January 1, 2017:

In March 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-09, Improvements to Employee Share-Based Payment , aimed at simplifying the accounting for share-based transactions. The update included modifications to the accounting for income taxes upon vesting or settlement of equity awards, employer tax withholding on share-based compensation and financial statement presentation of excess tax benefits. The update also provides an alternative on incorporating forfeitures in share-based compensation. The adoption of ASU No. 2016-09 did not have a material impact on the Company’s consolidated financial statements. The Company decided to maintain its current practice of estimating forfeitures in accounting for stock-based compensation.

NOTE 3—Financial Instruments and Significant Concentrations

Fair Value Measurements

Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Additional information on fair value measurements is included in the Company’s audited financial statements for the year ended December 31, 2016.

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 3—Financial Instruments and Significant Concentrations  (continued)

The carrying amounts of the Company’s financial instruments including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued liabilities approximate fair values due to their short-term maturities. Based on borrowing rates currently available to the Company for debt with similar terms, the carrying value of capital lease obligations approximate fair value as of the respective balance sheet dates. Due to the complex and unique terms of the Credit Facility, it is not reasonably practicable to determine the current fair value. The Company’s redeemable warrant liability and embedded derivative liability are the only liabilities that are carried at fair value on a recurring basis and are classified within Level 3 of the fair value hierarchy. Details of the redeemable warrant and embedded derivative liability including valuation methodology and key assumptions and estimates used are disclosed in Note 6 and Note 5, respectively.

Significant Concentrations

The Company attributes revenue to geographic regions based on the location of its customers’ contracting entity. The following shows net revenue by geographic region for the three months ended March 31, 2016 and 2017 (in thousands):

 
2016
2017
United States of America
$
22,883
 
$
32,569
 
International
 
11,795
 
 
16,501
 
Total revenue
$
34,678
 
$
49,070
 

No customer represented more than 10% of revenue for the three months ended March 31, 2016 or 2017. As of December 31, 2016 and March 31, 2017, no customers represented 10% or more of total net accounts receivable. The Company tracks its assets by physical location. The majority of the Company’s long-lived assets are located in the United States.

Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, and accounts receivable. The Company maintains its cash, cash equivalents and restricted cash at high-quality financial institutions, primarily in the United States of America. Deposits, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such deposits. As of December 31, 2016, the Company had cash and cash equivalents of $4.5 million and restricted cash of $15.9 million with a single financial institution. As of March 31, 2017, the Company had cash and cash equivalents of $4.6 million and restricted cash of $18.3 million with a single financial institution. The Company also had $2.4 million and $1.2 million of restricted cash with another financial institution as of December 31, 2016 and March 31, 2017, respectively. The Company has never experienced any losses related to these balances.

Generally, credit risk with respect to accounts receivable is diversified due to the number of entities comprising the Company’s customer base and their dispersion across different geographies and industries. The Company performs ongoing credit evaluations on certain customers and generally does not require collateral on accounts receivable. The Company maintains reserves for potential bad debts and historically such losses are generally not significant.

NOTE 4—CASH, CASH EQUIVALENTS AND RESTRICTED CASH

For purposes of the 2017 statement of cash flows, as of December 31, 2016 and March 31,2017, cash, cash equivalents and restricted cash are as follows (in thousands):

 
2016
2017
Cash and cash equivalents
$
9,385
 
$
13,237
 
Restricted cash:
 
 
 
 
 
 
Control accounts under Credit Facility
 
18,263
 
 
19,523
 
Corporate credit card debts and other
 
589
 
 
589
 
Total cash, cash equivalents and restricted cash
$
28,237
 
$
33,349
 

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 5—DEBT

As of December 31, 2016 and March 31, 2017, debt consists of the following (dollars in thousands):

 
2016
2017
Contractual obligations under Credit Facility
$
169,158
 
$
170,427
 
Debt discount and issuance costs, net
 
(81,094
)
 
(77,200
)
Net carrying value of long-term debt
 
88,064
 
 
93,227
 
Less current maturities
 
(24,750
)
 
(48,131
)
Long-term debt, net of current maturities
$
63,314
 
$
45,096
 

In June 2016, the Company entered into a multi-draw term loan Financing Agreement (the “Credit Facility”) with a syndicate of lenders (the “Lenders”). The Credit Facility provides for an aggregate commitment up to $125.0 million, which consisted of an initial term loan for $30.0 million, a “delayed draw A Term Loan” for $65.0 million, and a “delayed draw B Term Loan” for $30.0 million. In October 2016, the Company and the Lenders entered into an amendment to the Credit Facility (the “Second Amendment”) that enabled the Company to borrow $65.0 million under the delayed draw A Term Loan and $12.5 million under the delayed draw B Term Loan, bringing total term loan borrowings under the Credit Facility to $107.5 million ($17.5 million remains unfunded but may be borrowed only with the consent of the Origination Agent (as defined below)). As of December 31, 2016 and March 31, 2017, debt consists of Credit Facility obligations, net of discount, of $88.1 million and $93.2 million, respectively. Presented below is a summary of activity related to the funded debt for the three months ended March 31, 2017 (in thousands):

 
December 31,
2016
PIK
Accrual
Amendment
Costs
Liability
Adjustments
Principal
Payments
March 31,
2017
Contractual liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal balance
$
107,900
 
$
808
 
$
 
$
 
$
(1,500
)
$
107,208
 
Mandatory trigger event exit fees
 
55,258
 
 
 
 
 
 
1,961
 
 
 
 
57,219
 
Madatory consulting fees
 
6,000
 
 
 
 
 
 
 
 
 
 
6,000
 
Total contractual liability
$
169,158
 
$
808
 
$
 
$
1,961
 
$
(1,500
)
 
170,427
 
Debt discount and issuance costs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Original issue discount
$
2,150
 
$
 
$
 
$
 
$
 
$
2,150
 
Origination fee
 
5,375
 
 
 
 
 
 
 
 
 
 
5,375
 
Amendment fee
 
8,600
 
 
 
 
 
 
 
 
 
 
8,600
 
Fair value of warrants
 
7,608
 
 
 
 
 
 
 
 
 
 
7,608
 
Consulting fees to lenders
 
7,720
 
 
 
 
 
 
 
 
 
 
7,720
 
Mandatory trigger event exit fees
 
55,258
 
 
 
 
 
 
1,961
 
 
 
 
57,219
 
Other issuance costs
 
3,823
 
 
 
 
15
 
 
 
 
 
 
3,838
 
Total discount and issuance costs
 
90,534
 
$
 
$
15
 
$
1,961
 
$
 
 
92,510
 
Cumulative accretion expense
 
(9,440
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(15,310
)
Net discount
 
81,094
 
 
 
 
 
 
 
 
 
 
 
 
 
 
77,200
 
Net carrying value
$
88,064
 
 
 
 
 
 
 
 
 
 
 
 
 
$
93,227
 

Outstanding term loans under the Credit Facility mature in June 2020, and require monthly interest payments at 15.0% per annum, consisting of 12.0% per annum that is payable in cash and 3.0% per annum that is capitalized and added to the then-outstanding principal of the term loans (referred to as paid-in-kind, or “PIK” interest). The Company is required to pay an unused line fee of 5.0% per annum on the on the currently unfunded portion of the Credit Facility which expires in June 2020, subject to early termination events as set forth in the Credit Facility. The Company was also subject to collateral monitoring fees at the rate of 0.5% of the outstanding term loans until the date of the Second Amendment, when such fees increased to 2.5% of the outstanding term loans. All unused line fees and collateral monitoring fees are payable monthly in arrears and are recorded as a component of debt financing fees

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 5—DEBT   (continued)

in the period incurred. Upon the occurrence and during the continuance of any event of default, the principal (including PIK interest) and all unpaid interest shall be assessed an additional interest rate of 2.0% per annum from the date such event of default occurs until it is cured or waived. As of December 31, 2016 and March 31, 2017, accretion of discount and debt issuance costs related to the funded portion of the Credit Facility is at an annual rate of 25.6% and 26.7%, respectively. The overall effective rate (exclusive of the impact of unused line fees, collateral monitoring fees, and amortization of debt issuance costs related to the unfunded portion of the Credit Facility) was 40.6% and 41.7% as of December 31, 2016 and March 31, 2017, respectively.

As set forth in the Second Amendment, beginning in the second quarter of 2017 and continuing through maturity of the term loans, the Credit Facility requires additional quarterly principal payments of the term loans equal to 75% of the calculated Excess Cash Flow (as defined in the Credit Facility) for the previous fiscal quarter. The calculation of Excess Cash Flow for the quarter ended March 31, 2017 resulted in a mandatory principal payment of $4.0 million that was payable and paid in May 2017. Additionally, all customer prepayments in excess of one year received after April 1, 2017, are required to be applied to reduce the outstanding principal balance.

The Credit Facility also requires certain payments to the origination agent (the “Origination Agent”) upon the occurrence of a trigger event (“Trigger Event”), which is defined as the earliest of (i) the debt maturity date of June 2020, (ii) the first date on which all the obligations are repaid in full and the commitments of the Lenders are terminated, (iii) if the Lenders elect to accelerate the obligations in the event of a default, (iv) initiation of any insolvency proceeding, foreclosure or deed in lieu of foreclosure, and (v) the termination of the Credit Facility for any reason. Upon a Trigger Event, the Company is required to pay (i) a commitment exit fee, (ii) a continuing origination agent service fee, (iii) a consulting exit fee of $14.0 million, and (iv) a foreign withholding tax fee up to $2.0 million. The commitment exit fee is calculated using the annualized revenue for the most recent fiscal quarter in which a Trigger Event occurs, times a multiplier of 6.9% of annualized revenue up to $300.0 million, and lower percentages for annualized revenue in excess of $300.0 million. The settlement value of the commitment exit fee was $12.9 million and $13.5 million as of December 31, 2016 and March 31, 2017, respectively. The continuing origination agent service fee is also calculated using the annualized revenue for the most recent fiscal quarter in which a Trigger Event occurs, times a multiplier of 14.1% of annualized revenue up to $300.0 million, and lower percentages for annualized revenue in excess of $300.0 million. The settlement value of the continuing origination agent fee was $26.4 million and $27.7 million as of December 31, 2016 and March 31, 2017, respectively. As of December 31, 2016 and March 31, 2017, the aggregate Trigger Event fees amounted to approximately $55.3 million and $57.2 million, respectively.

Based on the $170.4 million contractual liability outstanding under the Credit Facility, the scheduled future maturities as of March 31, 2017, are as follows (in thousands):

12-Month Period Ending March 31,
Principal
Trigger
Event Fees
Consulting
Total
2018
$
46,131
(1)
$
 
$
2,000
 
$
48,131
 
2019
 
29,250
 
 
 
 
2,000
 
 
31,250
 
2020
 
30,000
 
 
 
 
2,000
 
 
32,000
 
2021
 
1,827
 
 
57,219
 
 
 
 
59,046
 
Total
$
107,208
 
$
57,219
 
$
6,000
 
$
170,427
 
(1) Consists of (i) aggregate monthly principal amortization of $25.5 million as set forth in the Third Amendment to the Credit Facility discussed in Note 11, (ii) the prepayment of $14.1 million of principal in April 2017 in connection with the insurance settlement discussed in Note 8, and (iii) a principal payment of $6.5 million, including satisfaction of the 75% of Excess Cash Flow mandatory prepayment of $4.0 million for the quarter ended March 31, 2017 and an additional principal payment of $2.5 million required as part of the Third Amendment.

As of March 31, 2017, the current maturities of long-term debt amounted to $48.1 million as shown in the table above. The scheduled minimum principal payments shown above for the 12-month period ending March 31, 2018 exclude (i) principal payments based on the calculation of 75% of Excess Cash Flow generated for each of the four calendar quarters for the 12-month period ending on March 31, 2018, (ii) customer prepayments for service periods

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 5—DEBT   (continued)

exceeding one year that are received after April 1, 2017, and that are required to be applied to reduce the outstanding principal balance, and (iii) additional principal payments that the Company may elect to make in connection with the Merger Agreement discussed in Note 11. As discussed in Note 11, as part of the Third Amendment in May 2017, the Company agreed to make a principal prepayment of $6.5 million, including satisfaction of the 75% of Excess Cash Flow mandatory prepayment of $4.0 million for the first quarter of 2017 and an additional principal prepayment of $2.5 million. Mandatory principal payments based on Excess Cash Flow generated in subsequent quarters are excluded from current liabilities since they are contingent payments based on the generation of working capital in the future. However, changes in principal payments for the year ending March 31, 2018 that result from the Third Amendment are included as current maturities since the amendment was required to cure events of default that existed as of March 31, 2017.

Term loans under the Credit Facility are collateralized by substantially all assets of the Company, including certain cash depository accounts that are subject to control agreements with the Lenders. As of December 31, 2016 and March 31, 2017, the restricted cash balance under the control agreements totaled $18.3 million and $19.5 million, respectively. The Company is required to comply with various financial and operational covenants on a monthly or quarterly basis, including a leverage ratio, minimum liquidity, churn rate, asset coverage ratio, minimum gross margin, and certain budget compliance restrictions. Additionally, the covenants in the Credit Facility prohibit or limit the Company’s ability to incur additional debt, pay cash dividends, sell assets, merge or consolidate with another company, and other customary restrictions associated with debt arrangements. During November and December of 2016 and the first four months of 2017, the Company had made expenditures that exceeded certain budgetary compliance covenants set forth in the Credit Facility and the Company failed to provide audited financial statements by April 30, 2017, which resulted in the existence of events of default under the Credit Facility. As discussed in Note 11, the Lenders amended the Credit Facility in May 2017, which resulted in the elimination of these covenant violations, and the Lenders did not charge Default Interest during the period that the events of default existed. Due to the events of default that existed as of March 31, 2017, the Company did not have the ability to borrow the remaining $17.5 million under the Credit Facility.

The components of interest expense for the three months ended March 31, 2016 and 2017 are presented below (in thousands):

 
2016
2017
Credit Facility:
 
 
 
 
 
 
Interest expense at 12.0%
$
 
$
3,216
 
PIK interest at 3.0%
 
 
 
808
 
Accretion expense for funded debt
 
 
 
5,870
 
Interest on other borrowings
 
211
 
 
42
 
Total interest expense
$
211
 
$
9,936
 

The components of fees associated with debt financings for the three months ended March 31, 2016 and 2017 are presented below (in thousands):

 
2016
2017
Unused line fees
$
 
$
219
 
Collateral monitoring fees
 
 
 
674
 
Amortization of debt issuance costs related to unfunded debt
 
 
 
275
 
Amortization of prepaid agent fees
 
 
 
114
 
Total debt financing fees
$
 
$
1,282
 

Embedded Derivatives

The Company’s Credit Facility includes features that were determined to be embedded derivatives requiring bifurcation and accounting as separate financial instruments. The Company determined that the mandatory

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 5—DEBT   (continued)

prepayment and default interest due to non-credit-related events of default derivatives are classified within Level 3 of the fair value hierarchy and have a fair value of $10.5 million as of March 31, 2017.

The fair value of these embedded derivatives was estimated using the “with” and “without” method. Accordingly, the Credit Facility was first valued with the embedded derivatives (the “with” scenario) and subsequently valued without the embedded derivatives (the “without” scenario). The fair values of the embedded derivatives were estimated as the difference between these two scenarios. The fair values were determined using the income approach, specifically the yield method. As of March 31, 2017, key Level 3 assumptions and estimates used in the valuation of the embedded derivatives include timing of projected principal payments, remaining term to maturity of approximately 3.3 years, probability of default of approximately 55%, and a discount rate of 19%. The discount rate is comprised of a risk-free rate of 2% and a credit spread of 17% determined based on option-adjusted spreads from public companies with similar credit quality.

A reconciliation of the Company’s embedded derivative liabilities for the three months ended March 31, 2017, is as follows:

Balance, December 31, 2016
$
5,400
 
Change in fair value
 
5,100
 
Balance, March 31, 2017
$
10,500
 

The increase in the fair value of embedded derivative liabilities of $5.1 million for the three months ended March 31, 2017 is reflected in the Company’s consolidated statements of operations as a loss on embedded derivatives and redeemable warrants, net.

NOTE 6—STOCK OPTIONS AND WARRANTS

Stock Options

For additional information about the Company’s stock option plans, please refer to Note 7 to the Company’s consolidated financial statements for the year ended December 31, 2016, included elsewhere herein. The following table sets forth the summary of stock option activity under the Company’s stock option plans for the three months ended March 31, 2017 (shares in thousands):

 
Shares
Price (1)
Term (2)
Outstanding, December 31, 2016
 
53,731
 
$
0.46
 
 
4.6
 
Granted
 
 
 
 
 
 
 
Cancellations
 
(46
)
 
1.28
 
 
 
 
Exercised
 
(774
)
 
0.08
 
 
 
 
Outstanding, March 31, 2017 (3)(4)
 
52,911
 
 
0.47
 
 
4.4
 
Vested, March 31, 2017 (3)
 
48,678
 
 
0.40
 
 
4.0
 
(1) Represents the weighted average exercise price.
(2) Represents the weighted average remaining contractual term until the stock options expire.
(3) As of March 31, 2017, the aggregate intrinsic value of stock options outstanding was $32.4 million and the aggregate intrinsic value of vested stock options was $32.4 million.
(4) The number of outstanding stock options that are not expected to ultimately vest due to forfeiture is immaterial as of March 31, 2017.

As of March 31, 2017, the Company had approximately 12.2 million shares available for grant under its stock option plans. The intrinsic value of employee options exercised during the three months ended March 31, 2017 was $1.1 million.

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 6—STOCK OPTIONS AND WARRANTS   (continued)

Stock-based compensation expense for the three months ended March 31, 2016 and 2017 is classified as follows (in thousands):

 
2016
2017
Cost of revenue
$
79
 
$
64
 
Sales and marketing
 
199
 
 
140
 
General and administrative
 
339
 
 
157
 
Total
$
617
 
$
361
 

As of March 31, 2017, total unrecognized compensation costs related to unvested stock options were $1.5 million. The remaining unrecognized costs are expected to be recognized on a straight-line basis over a weighted-average period of approximately 1.4 years.

Warrants

As of December 31, 2016 and March 31, 2017, the Company had redeemable warrants outstanding for approximately 14.5 million shares of Class A Common Stock. These redeemable warrants are classified under Level 3 of the fair value hierarchy. No warrants were granted or exercised for the three months ended March 31, 2017. The fair value of the warrants at December 31, 2016 and March 31, 2017 was $7.3 million and $7.9 million, respectively. The change in fair value of $0.6 million was recorded as a loss on embedded derivatives and redeemable warrants, net for the three months ended March 31, 2017.

The valuation methodology for the warrants discussed above was performed through a hybrid model using Monte Carlo simulation, which considered possible future equity financing and liquidity scenarios, including an initial public offering, a sale of the business, and a liquidation of the Company. Key Level 3 assumptions inherent in the warrant valuation methodology as of March 31, 2017 include projected revenue multiples of 1.7 to 2.1, volatility of 52% to 57%, the risk-free interest rate of 1.08% to 1.36%, a discount rate for lack of marketability of 29%, and the overall discount rate of approximately 25%.

NOTE 7—INCOME TAXES

For the three months ended March 31, 2016 and 2017, income tax expense was primarily attributable to income in foreign jurisdictions subject to income taxes. The Company’s effective tax rates on foreign earnings were 29% and 36% for the three months ended March 31, 2016 and 2017, respectively. The Company did not have any material changes to its conclusions regarding valuation allowances for deferred income tax assets or uncertain tax positions for the three months ended March 31, 2016 or 2017.

NOTE 8—COMMITMENTS AND CONTINGENCIES

Litigation

Oracle Litigation. In January 2010, certain subsidiaries of Oracle Corporation (together with its subsidiaries individually and collectively, “Oracle”) filed a lawsuit, Oracle USA, Inc. et al. v. Rimini Street, Inc. et al. (United States District Court for the District of Nevada) (“Rimini I”), against the Company and its Chief Executive Officer, Seth Ravin, alleging that certain of the Company’s processes violated Oracle’s license agreements with its customers and that the Company committed acts of copyright infringement and violated other federal and state laws. The litigation involved the Company’s business processes and the manner in which the Company provided its services to its clients. To provide software support and maintenance services, the Company requests access to a separate environment for developing and testing the updates to the software programs. Prior to July 2014, PeopleSoft, J.D. Edwards and Siebel clients switching from Oracle to the Company’s enterprise software support systems were given a choice of two models for hosting the development and testing environment for their software: the environment could be hosted on the client’s servers or on the Company’s servers. In addition to other allegations, Oracle challenged the Rimini Street-hosted model for certain Oracle license agreements with its customers that contained site-based restrictions. Oracle alleged that its license agreements with its customers restrict licensees’ rights to

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 8—COMMITMENTS AND CONTINGENCIES   (continued)

provide third parties, such as the Company, with copies of Oracle software and restrict where a licensee physically may install the software. Oracle alleged that, in the course of providing services, the Company violated such license agreements and illegally downloaded software and support materials without authorization. Oracle further alleged that the Company impaired its computer systems in the course of downloading materials for the Company’s clients. Oracle filed amended complaints (together, the “amended complaint”) in April 2010 and June 2011. Specifically, Oracle’s amended complaint asserted the following causes of action: copyright infringement; violations of the Federal Computer Fraud and Abuse Act; violations of the Computer Data Access and Fraud Act violations of Nevada Revised Statute 205.4765; breach of contract; inducing breach of contract; intentional interference with prospective economic advantage; unfair competition; trespass to chattels; unjust enrichment/restitution; unfair practices; and a demand for an accounting. Oracle’s amended complaint sought the entry of a preliminary and permanent injunction prohibiting the Company from copying, distributing, using, or creating derivative works based on Oracle Software and Support Materials except as allowed by express license from Oracle; from using any software tool to access Oracle Software and Support Materials; and from engaging in other actions alleged to infringe Oracle’s copyrights or were related to its other causes of action. The parties conducted extensive fact and expert discovery from 2010 through mid-2012.

In March and September 2012, Oracle filed two motions seeking partial summary judgment as to, among other things, its claim of infringement of certain copyrighted works owned by Oracle. In February 2014, the court issued a ruling on Oracle’s March 2012 motion for partial summary judgment (i) summary judgment on granting Oracle’s claim of copyright infringement as it related to two of the Company’s PeopleSoft clients and (ii) denying summary judgment on Oracle’s claim with respect to one of the Company’s J.D. Edwards clients and one of the Company’s Siebel clients. The parties stipulated that the licenses among clients were substantially similar. In August 2014, the court issued a ruling on Oracle’s September 2012 motion for partial summary judgment (i) granting summary judgment on Oracle’s claim of copyright infringement as it relates to Oracle Database and (ii) dismissing the Company’s first counterclaim for defamation, business disparagement and trade libel and the Company’s third counterclaim for unfair competition. The Company believes it is in compliance with the court’s decisions not later than July 2014 when it revised its business practices to eliminate the processes determined to be infringing.

A jury trial in Rimini I commenced in September 2015. On October 13, 2015, the jury returned a verdict against the Company that (i) the Company was liable for innocent copyright infringement, (ii) the Company and Mr. Ravin were each liable for violating certain state computer access statutes, and (iii) neither the Company nor Mr. Ravin were liable for inducing breach of contract or intentional interference with prospective economic advantage. The jury determined that the copyright infringement did not cause Oracle to suffer lost profits, that the copyright infringentment was not willful, and did not award punitive damages. Following post-trial motions, Oracle was awarded a final judgment of $124.4 million, consisting of copyright infringement damages based on the fair market value license damages theory, damages for violation of certain state computer access statutes, prejudgment interest and attorneys’ fees and costs. In addition, the court entered a permanent injunction prohibiting the Company from using certain processes – including processes adjudicated as infringing at trial – that the Company ceased using no later than July 2014. The Company paid the full judgment amount of $124.4 million to Oracle on October 31, 2016 and has appealed the case to the United States Court of Appeals for the Ninth Circuit (“Court of Appeals”) to appeal each of the above items in the final judgment as well as the injunction. With regard to the injunction entered by the court, the Company has argued on appeal that the injunction is vague and contains overly broad language that could be read to cover some of the Company’s current business practices that were not adjudicated to be infringing at trial and should not have been issued under applicable law. On December 6, 2016, the Court of Appeals granted the Company’s emergency motion for a stay of the permanent injunction pending resolution of the underlying appeal and agreed to consider the appeal on an expedited basis. Oral argument before the Court of Appeals is scheduled for July 13, 2017. The Company expects a decision from the Court of Appeals on its appeal by early 2018, although a decision could be announced sooner or later.

The Company accounted for the $124.4 million award to Oracle by recording accrued legal settlement expense of (i) $100.0 million for the year ended December 31, 2014, (ii) $21.4 million for the year ended December 31, 2015, and (iii) pre-judgment interest of $3.0 million for the period from January l, 2016 through October 31, 2016 (of which $0.9 million relates to the three months ended March 31, 2016). On October 31, 2016, the Company paid the full judgement amount of $124.4 million to Oracle.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 8—COMMITMENTS AND CONTINGENCIES   (continued)

The Company had insurance coverage in place for reasonable defense costs related to the Oracle litigation. In October 2016, the Company received insurance indemnity payments for the judgment totaling $41.7 million as settlement from its insurers without any admission by the insurers of liability. Since the insurance indemnity settlement represented a gain contingency, it was recorded as a reduction in litigation settlement expense in the fourth quarter of 2016 when it was received. As of the issuance date of these unaudited condensed consolidated financial statements, the Circuit Court had not ruled on the Company’s appeal. An award, if any, that is paid to the Company as a result of the appeal will be reflected as a reduction of litigation settlement expense in the period received, since the appeal is also being accounted for as a gain contingency.

In October 2014, the Company filed a separate lawsuit, Rimini Street Inc. v. Oracle Int‘l Corp. (United States District Court for the District of Nevada) (“Rimini II”), against Oracle seeking a declaratory judgment that the Company’s revised development processes, in use since at least July 2014, do not infringe certain Oracle copyrights. In February 2015, Oracle filed a counterclaim alleging copyright infringement, which included (i) the same allegations asserted in Rimini I but limited to new or existing clients for whom the Company provided support from the conclusion of Rimini I discovery in December 2011 until the revised support processes were fully implemented by July 2014, and (ii) new allegations that the Company’s revised support processes also infringe Oracle copyrights. Oracle’s counterclaim also included allegations of violation of the Lanham Act, intentional interference with prospective economic advantage, breach of contract and inducing breach of contract, unfair competition, and unjust enrichment/restitution. It also sought an accounting. On February 28, 2016, Oracle filed amended counterclaims adding allegations of violation of the Digital Millennium Copyright Act. On December 19, 2016, the Company filed an amended complaint against Oracle asking for a declaratory judgment of non-infringement of copyright and alleging intentional interference with contract, intentional interference with prospective economic advantage, violation of the Nevada Deceptive Trade Practices Act, violation of the Lanham Act, and violation of California Business & Professions Code §17200 et seq. On January 17, 2017, Oracle filed a motion to dismiss the Company’s amended claims and filed its third amended counterclaims, adding three new claims for a declaratory judgment of no intentional interference with contractual relations, no intentional interference with prospective economic advantage, and no violation of California Business & Professions Code §17200 et seq. On February 14, 2017, the Company filed its answer and motion to dismiss Oracle’s third amended counterclaim, which has been fully briefed and is pending consideration by the court. On March 7, 2017, Oracle filed a motion to strike the Company’s copyright misuse affirmative defense which is briefed and pending consideration by the court. By stipulation of the parties, the court granted the Company’s motion to file its third amended complaint to add claims arising from Oracle’s purported revocation of access by the Company to its support websites on behalf of the Company’s clients, which was filed and served on May 2, 2017. By agreement of the parties, Oracle filed its motion to dismiss the Company’s third amended complaint on May 30, 2017, and the Company’s opposition is due on June 27, 2017, and any reply by Oracle is due on July 11, 2017.

Discovery with respect to the above action is expected to continue through at least July 2018. There is currently no trial date scheduled and the Company does not expect a trial to occur in this matter earlier than 2020, but the trial could occur earlier or later than that. Given that discovery is ongoing, the Company does not have sufficient information regarding possible damages exposure for the counterclaims asserted by Oracle or possible recovery by the Company in connection with its claims against Oracle. Both parties are seeking injunctive relief in addition to monetary damages in this matter. As a result, an estimate of the range of loss cannot be determined. The Company believes that an award for damages is not probable, so no accrual has been made as of December 31, 2016.

Other Litigation. In addition, from time to time, the Company may be a party to litigation and subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not have a material adverse effect on its business. Regardless of the outcome, litigation can have an adverse impact on the Company because of judgment, defense and settlement costs, diversion of management resources and other factors.

Settlement Agreement

On March 31, 2017, the Company entered into a Settlement Agreement, Release and Policy Buyback Agreement (“Settlement Agreement”) with an insurance company that previously provided coverage for the defense costs

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 8—COMMITMENTS AND CONTINGENCIES   (continued)

related to the Oracle litigation referred to as Rimini II. The Settlement Agreement provided for aggregate payments to the Company of $24.0 million and resulted in the termination of coverage under the insurance policies. Prior to execution of the Settlement Agreement, the insurance company reimbursed the Company an aggregate of $4.7 million of defense costs, and pursuant to the settlement agreed to make an additional payment to the Company of $19.3 million that was received in April 2017. In April 2017, the Company paid $0.6 million of settlement expenses that are included in accrued expenses as of March 31, 2017, and the remaining $18.7 million of the settlement proceeds was used to make a mandatory $14.1 million principal payment and a $4.6 million make-whole interest payment due to the Lenders pursuant to the terms of the Credit Facility discussed in Note 5. Since the Settlement Agreement was entered into on March 31, 2017 and the net proceeds were required to be applied towards a mandatory principal prepayment, the $14.1 million payment is included in current maturities of long-term debt as of March 31, 2017.

The Settlement Agreement provides that the Company received proceeds of $19.3 million in advance of incurring legal defense costs related to Rimini II. The Settlement Agreement was accounted for by recognizing a receivable and deferred insurance settlement liability for $19.3 million as of March 31, 2017. This deferred insurance settlement liability will be reduced as legal expenses are incurred in the future.

Guarantees

The Company enters into agreements with customers that contain provisions related to liquidated damages that would be triggered in the event that the Company is no longer able to provide services to these customers. The maximum cash payments related to these liquidated damages is approximately $11.3 million and $15.7 million as of December 31, 2016 and March 31, 2017, respectively. To date, the Company has not incurred any costs as a result of such provisions and has not accrued any liabilities related to such provisions in the consolidated financial statements.

NOTE 9—RELATED PARTY TRANSACTIONS

For the three months ended March 31, 2016 the Company paid $28,000 to The Living Pages, Inc. for the provision of certain consulting, advertising and marketing services, where the Company’s Chief Executive Officer is a member of the board of directors and minority shareholder. No amounts were incurred for the three months ended March 31, 2017.

NOTE 10—EARNINGS PER SHARE

The Company computes earnings per share (“EPS”) of Class A and Class B common stock using the two-class method required for participating securities. Basic and diluted EPS was the same for each period presented as the inclusion of all potential Class A and Class B common shares outstanding would have been anti-dilutive. Basic and diluted EPS are the same for each class of common stock because they are entitled to the same liquidation and dividend rights. The following table sets forth the computation of basic and diluted loss per Class A and Class B common share for the three months ended March 31, 2016 and 2017 (in thousands, except per share amounts):

 
2016
2017
 
Class A
Class B
Total
Class A
Class B
Total
Numerator- net loss
$
(26
)
$
(7,971
)
$
(7,997
)
$
(51
)
$
(14,424
)
$
(14,475
)
Denominator- weighted average number of common shares outstanding
 
333
 
 
100,977
 
 
101,310
 
 
361
 
 
101,360
 
 
101,721
 
Basic and diluted net loss per common share
$
(0.08
)
$
(0.08
)
$
(0.08
)
$
(0.14
)
$
(0.14
)
$
(0.14
)

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 10—EARNINGS PER SHARE   (continued)

For the three months ended March 31, 2016 and 2017, the following potential common stock equivalents were excluded from the computation of diluted earnings per share since the impact of inclusion was anti-dilutive (in thousands):

 
2016
2017
Convertible preferred stock
 
100,486
 
 
100,486
 
Options
 
53,731
 
 
52,912
 
Warrants
 
14,455
 
 
14,455
 
Total
 
168,672
 
 
167,853
 

NOTE 11—SUBSEQUENT EVENTS

Amendments to the Credit Facility

In May 2017, the Company and the Lenders entered into a third amendment (the “Third Amendment”) to the Credit Facility discussed in Note 5, which includes the following provisions:

The deadlines to deliver audited financial statements and to consummate equity issuances resulting in net proceeds of at least $35.0 million were both extended until August 31, 2017. Fifty percent of the net cash proceeds received are required to be applied as a mandatory prepayment as defined in the Credit Facility. Assuming the minimum net proceeds of $35.0 million, a principal payment of $13.7 million and a make-whole interest payment of $3.8 million would be required. The make-whole interest payment will be charged to interest expense in the period of the related principal payment;
The Company agreed to make a principal prepayment of $6.5 million, including satisfying the 75% of Excess Cash Flow payment of $4.0 million for the first quarter of 2017 and an additional principal prepayment of $2.5 million. These amounts were paid in May 2017;
Contractual principal amortization payments for April and May 2017 were increased by an aggregate of $2.5 million and paid in May 2017; and
The Lenders amended the terms of the Credit Facility which eliminated non-compliance with certain budgetary compliance covenants prior to the effective date of the Third Amendment, and certain budgetary compliance covenants were amended to be generally less restrictive after the effective date of the Third Amendment. Additionally, the Lenders did not charge Default Interest during the period that the events of default existed.

In May 2017, the Company and the Lenders entered into a fourth amendment to the Credit Facility, whereby the covenants related to costs that may be incurred for an initial public offering were revised. In June 2017, the Company and the Lenders entered into a fifth amendment (the “Fifth Amendment”) to the Credit Facility whereby the deadline was extended from August 31, 2017 until November 30, 2018 to consummate equity issuances for a minimum of $35.0 million, as discussed above. Additionally, certain financial covenants were revised whereby the Company expects to remain in compliance. In connection with the Fifth Amendment, the Company incurred an amendment fee equal to 1.0% of the $125.0 million commitment under the Credit Facility, and agreed to pay certain “target date” fees if (i) the filing date for the Form S-4 registration statement discussed below occurs after June 30, 2017, and (ii) the consummation of the merger discussed below occurs after August 31, 2017. If these target dates are not achieved, additional fees of 1.0% of the $125.0 million commitment will be required as of the designated target date and will continue to be incurred for each subsequent calendar month that the delays continue. The amendment fee is payable in cash upon the earlier of receipt of the equity issuance proceeds discussed above, or March 31, 2018. The target date fees are payable in cash upon the earlier of (i) receipt of the equity issuance proceeds discussed above, (ii) the maturity date of the Credit Facility, or (iii) the termination date of the Credit Facility.

Merger Agreement

On May 16, 2017, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with GP Investments Acquisition Corp. (“GPIA”), a publicly-held special purpose acquisition company (“SPAC”)

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 11—SUBSEQUENT EVENTS   (continued)

incorporated in the Cayman Islands and formed for the purpose of effecting a business combination with one or more businesses. The Merger Agreement provides that a wholly owned subsidiary of GPIA will merge with and into the Company, after which the Company will merge with and into GPIA, with GPIA with be the surviving corporation. In connection with the merger, GPIA will domesticate as a Delaware corporation, and will change its name to “Rimini Street, Inc.”. Key terms of the Merger Agreement include, but are not limited to, the following:

The aggregate purchase price for the Company is $775.0 million, which amount will be reduced by, among other things, the aggregate amount of certain debt obligations of the Company as set forth in the Merger Agreement. The Merger Consideration is expected to be settled by issuing shares of GPIA common stock based on a per share issue price of $10.00 per share and an exchange ratio of approximately four shares of the Company’s Capital Stock on an as converted basis for each share of GPIA (the “Exchange Ratio”).
In order to obtain the Lender’s consent to the Merger Agreement, a minimum of $30.0 million of net proceeds from GPIA, along with $5.0 million of the Company’s cash is required to be utilized for a mandatory payment under the Credit Facility at the closing of the transaction. The required minimum payment will consist of principal of approximately $27.7 million and a required make-whole interest payment of approximately $7.3 million.
Each issued and outstanding share of the Company’s Class A and Class B Common Stock, and each issued and outstanding share of each series of Preferred Stock on an as-converted basis (collectively, “Capital Stock”), will automatically be cancelled and converted into the right to receive the applicable portion of the Merger Consideration in accordance with the Merger Agreement.
Outstanding options to purchase shares of the Company’s Capital Stock granted under the Company’s 2007 Plan and 2013 Plan will be converted into stock options for ordinary shares of GPIA upon the same terms and conditions as are in effect with respect to such options immediately prior to the merger, after giving effect to the Exchange Ratio.
Subject to consummation of the Merger Agreement, the Origination Agent warrants discussed in Note 6 were modified to provide for the issuance of an additional 260,000 warrants exercisable at $1.35 per share, resulting in an aggregate of 14.4 million warrants exercisable by the Origination Agent. The Origination Agent agreed that upon consummation of the Merger Agreement such warrants will be converted into warrants for shares of GPIA, with the number of shares and exercise price adjusted for the Exchange Ratio. Additionally, further adjustments pursuant to the anti-dilution provisions and the cash redemption feature will be eliminated.
The Merger Agreement is subject to effectiveness of a registration statement on Form S-4 registering the shares of common stock to be issued to the Company’s stockholders, whereby approvals by the shareholders of the Company and GPIA are required. As discussed above, GPIA’s shareholders have the opportunity to redeem their ordinary shares for cash, and the Company’s shareholders have the right to demand appraisal rights.
Certain of the Company’s stockholders have entered into transaction support and voting agreements with GPIA, pursuant to which, among other things, such stockholders have agreed to vote their shares of Capital Stock in favor of adoption of the Merger Agreement. Additionally, certain of the Company’s stockholders have agreed to certain restrictions regarding the future transfer of the ordinary shares of GPIA to be received in connection with the Merger Agreement.
If the Merger Agreement is approved, the Company will have the right to appoint seven of the nine members of the Board of Directors, and the current shareholders of the Company are expected to own at least 75% of the outstanding shares of GPIA. Accordingly, the Company expects this merger will be accounted for as a reverse recapitalization, whereby the Company will be the acquirer for accounting and financial reporting purposes and GPIA will be the legal acquirer. Under a reverse recapitalization, the

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 11—SUBSEQUENT EVENTS   (continued)

shares of GPIA remaining after redemptions, and the unrestricted net cash and cash equivalents on the date the merger is consummated will be accounted for as a capital infusion received by the Company. All of the transaction costs incurred by the Company related to the merger will be charged to additional paid-in capital upon consummation of the merger.

In certain circumstances, including if the Merger Agreement has not been consummated by August 31, 2017 (subject to extension until November 17, 2017), either party may elect to terminate the Merger Agreement.

Stock Options

On June 29, 2017, the Company granted stock options for approximately 6.6 million shares of Class A Common Stock with an exercise price of $1.80 per share to employees and members of the Company’s Board of Directors under the 2013 Equity Incentive Plan.

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RIMINI STREET, INC. AND SUBSIDIARIES
   
Consolidated Financial Statements
as of December 31, 2015 and 2016 ,
and for the Years Ended December 31, 2014, 2015 and 2016

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Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders
Rimini Street, Inc.:

We have audited the accompanying consolidated balance sheets of Rimini Street, Inc. and Subsidiaries as of December 31, 2016 and 2015, and the related consolidated statements of operations and comprehensive loss, stockholders’ deficit, and cash flows for each of the years in the three-year period ended December 31, 2016. These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Rimini Street, Inc. and Subsidiaries as of December 31, 2016 and 2015, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2016, in conformity with U.S. generally accepted accounting principles.

/s/ KPMG LLP

San Francisco, California
June 30, 2017

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RIMINI STREET, INC. AND SUBSIDIARIES
   
Consolidated Balance Sheets
December 31, 2015 and 2016
(In thousands, except per share amounts)

 
2015
2016
ASSETS
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
Cash and cash equivalents
$
12,457
 
$
9,385
 
Restricted cash
 
102
 
 
18,852
 
Accounts receivable, net of allowance of $115 and $36, respectively
 
39,978
 
 
55,324
 
Prepaid expenses and other
 
5,077
 
 
5,748
 
Total current assets
 
57,614
 
 
89,309
 
Long-term assets:
 
 
 
 
 
 
Property and equipment, net
 
4,133
 
 
4,559
 
Deferred debt issuance costs, net
 
 
 
3,950
 
Deposits and other
 
919
 
 
965
 
Deferred income taxes, net
 
75
 
 
595
 
Total assets
$
62,741
 
$
99,378
 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
Current maturities of long-term debt
$
14,814
 
$
24,750
 
Accounts payable
 
3,823
 
 
8,839
 
Accrued expenses
 
26,152
 
 
36,650
 
Deferred revenue
 
91,145
 
 
137,293
 
Liability for embedded derivatives
 
 
 
5,400
 
Accrued litigation settlement
 
121,411
 
 
 
Total current liabilities
 
257,345
 
 
212,932
 
Long-term liabilities:
 
 
 
 
 
 
Long-term debt, net of current maturities
 
 
 
63,314
 
Deferred revenue
 
15,933
 
 
27,538
 
Liability for redeemable warrants
 
 
 
7,269
 
Deferred rent and other
 
1,782
 
 
1,835
 
Total liabilities
 
275,060
 
 
312,888
 
Commitments and contingencies (Note 9)
 
 
 
 
 
 
Stockholders’ deficit:
 
 
 
 
 
 
Convertible preferred stock, $0.001 par value per share; 44,045 and 100,486 shares authorized, issued and outstanding as of December 31, 2015, and 2016, respectively; aggregate liquidation preference of $10,550 and $20,551 as of December 31, 2015 and 2016, respectively
 
9,635
 
 
19,542
 
Convertible Class A common stock, $0.001 par value. Authorized 500,000 shares; 332 and 340 shares issued and outstanding as of December 31, 2015 and 2016, respectively
 
 
 
 
Convertible Class B common stock, $0.001 par value. Authorized 192,000 shares; 100,946 and 101,083 shares issued shares outstanding as of December 31, 2015 and 2016, respectively
 
101
 
 
101
 
Common stock; $0.001 par value. Authorized 500,000 shares; no shares issued and outstanding
 
 
 
 
Additional paid-in capital
 
16,664
 
 
19,003
 
Accumulated other comprehensive loss
 
(546
)
 
(1,046
)
Accumulated deficit
 
(238,173
)
 
(251,110
)
Total stockholders’ deficit
 
(212,319
)
 
(213,510
)
Total liabilities and stockholders’ deficit
$
62,741
 
$
99,378
 

The accompanying notes are an integral part of these consolidated financial statements.

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RIMINI STREET, INC. AND SUBSIDIARIES
   
Consolidated Statements of Operations and Comprehensive Loss
Years Ended December 31, 2014, 2015 and 2016
(In thousands, except per share amounts)

 
2014
2015
2016
Net revenue
$
85,348
 
$
118,163
 
$
160,175
 
Cost of revenue
 
45,258
 
 
52,766
 
 
67,045
 
Gross profit
 
40,090
 
 
65,397
 
 
93,130
 
Operating expenses:
 
 
 
 
 
 
 
 
 
Sales and marketing
 
37,509
 
 
50,330
 
 
72,936
 
General and administrative
 
19,270
 
 
24,220
 
 
36,212
 
Litigation costs and related insurance recoveries:
 
 
 
 
 
 
 
 
 
Litigation settlement and pre-judgment interest
 
100,000
 
 
21,411
 
 
2,920
 
Professional fees and other defense costs of litigation
 
3,266
 
 
17,140
 
 
21,379
 
Insurance recoveries
 
 
 
(5,819
)
 
(54,248
)
Write-off of deferred offering costs
 
5,307
 
 
 
 
 
Total operating expenses
 
165,352
 
 
107,282
 
 
79,199
 
Operating income (loss)
 
(125,262
)
 
(41,885
)
 
13,931
 
Non-operating expenses:
 
 
 
 
 
 
 
 
 
Interest expense
 
(742
)
 
(829
)
 
(13,356
)
Debt financing fees
 
 
 
 
 
(6,371
)
Loss on embedded derivatives and redeemable warrants, net
 
 
 
 
 
(3,822
)
Other, net
 
(843
)
 
(1,104
)
 
(1,787
)
Loss before income taxes
 
(126,847
)
 
(43,818
)
 
(11,405
)
Income tax expense
 
(981
)
 
(1,451
)
 
(1,532
)
Net loss
 
(127,828
)
 
(45,269
)
 
(12,937
)
Other comprehensive loss-foreign currency translation loss
 
(158
)
 
(227
)
 
(500
)
Comprehensive loss
$
(127,986
)
$
(45,496
)
$
(13,437
)
Net loss
$
(127,828
)
$
(45,269
)
$
(12,937
)
Deemed dividend for beneficial conversion feature of convertible preferred stock
 
 
 
 
 
(10,000
)
Net loss attributable to Class A and Class B common stockholders
$
(127,828
)
$
(45,269
)
$
(22,937
)
Net loss per share attributable to Class A and Class B common stockholders (basic and diluted)
$
(1.27
)
$
(0.45
)
$
(0.23
)
Weighted average number of Class A and Class B common shares outstanding (basic and diluted)
 
100,930
 
 
101,174
 
 
101,341
 

The accompanying notes are an integral part of these consolidated financial statements.

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RIMINI STREET, INC. AND SUBSIDIARIES
   
Consolidated Statements of Stockholders’ Deficit
Years Ended December 31, 2014, 2015 and 2016
(In thousands)

 
Convertible
Preferred Stock
Convertible Common Stock
Additional
Paid-in
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total
Class A
Class B
 
Shares
Amount
Shares
Amount
Shares
Amount
Balances, December 31, 2013
 
44,045
 
$
9,635
 
 
 
$
 
 
100,658
 
$
101
 
$
12,103
 
$
(161
)
$
(65,076
)
$
(43,398
)
Stock-based compensation
 
 
 
 
 
 
 
 
 
 
 
 
 
2,080
 
 
 
 
 
 
2,080
 
Warrant expense
 
 
 
 
 
 
 
 
 
 
 
 
 
8
 
 
 
 
 
 
8
 
Issuance of shares upon exercise of stock options
 
 
 
 
 
 
 
 
 
424
 
 
 
 
91
 
 
 
 
 
 
91
 
Transfer of shares
 
 
 
 
 
332
 
 
 
 
(332
)
 
 
 
 
 
 
 
 
 
 
Foreign currency translation loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(158
)
 
 
 
(158
)
Net loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(127,828
)
 
(127,828
)
Balances, December 31, 2014
 
44,045
 
 
9,635
 
 
332
 
 
 
 
100,750
 
 
101
 
 
14,282
 
 
(319
)
 
(192,904
)
 
(169,205
)
Stock-based compensation
 
 
 
 
 
 
 
 
 
 
 
 
 
2,272
 
 
 
 
 
 
2,272
 
Warrant expense
 
 
 
 
 
 
 
 
 
 
 
 
 
59
 
 
 
 
 
 
59
 
Issuance of shares upon exercise of stock options
 
 
 
 
 
 
 
 
 
196
 
 
 
 
51
 
 
 
 
 
 
51
 
Foreign currency translation loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(227
)
 
 
 
(227
)
Net loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(45,269
)
 
(45,269
)
Balances, December 31, 2015
 
44,045
 
 
9,635
 
 
332
 
 
 
 
100,946
 
 
101
 
 
16,664
 
 
(546
)
 
(238,173
)
 
(212,319
)
Issuance of Series C Preferred Stock
 
56,441
 
 
10,001
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,001
 
Series C Preferred Stock offering costs
 
 
 
(94
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(94
)
Beneficial conversion feature of Series C Preferred Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
10,000
 
 
 
 
 
 
10,000
 
Deemed dividend for beneficial conversion feature of Series C Preferred Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
(10,000
)
 
 
 
 
 
(10,000
)
Stock-based compensation
 
 
 
 
 
 
 
 
 
 
 
 
 
2,297
 
 
 
 
 
 
2,297
 
Warrant expense
 
 
 
 
 
 
 
 
 
 
 
 
 
(7
)
 
 
 
 
 
(7
)
Issuance of shares upon exercise of stock options
 
 
 
 
 
8
 
 
 
 
137
 
 
 
 
49
 
 
 
 
 
 
49
 
Foreign currency translation loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(500
)
 
 
 
(500
)
Net loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(12,937
)
 
(12,937
)
Balances, December 31, 2016
 
100,486
 
$
19,542
 
 
340
 
$
 
 
101,083
 
$
101
 
$
19,003
 
$
(1,046
)
$
(251,110
)
$
(213,510
)

The accompanying notes are an integral part of these consolidated financial statements.

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RIMINI STREET, INC. AND SUBSIDIARIES
   
Consolidated Statements of Cash Flows
Years Ended December 31, 2014, 2015 and 2016
(In thousands)

 
2014
2015
2016
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Net loss
$
(127,828
)
$
(45,269
)
$
(12,937
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
1,899
 
 
1,451
 
 
1,783
 
Accretion of debt discount and issuance costs
 
 
 
 
 
10,121
 
Stock-based compensation
 
2,080
 
 
2,272
 
 
2,297
 
Loss on embedded derivatives and redeemable warrants, net
 
 
 
 
 
3,822
 
Write-off of deferred offering costs
 
5,307
 
 
 
 
 
Write-off of debt issuance costs
 
138
 
 
 
 
 
Paid-in-kind interest expense
 
 
 
 
 
900
 
Deferred income taxes
 
19
 
 
(379
)
 
(520
)
Other
 
53
 
 
131
 
 
 
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
 
 
Accounts receivable
 
(9,040
)
 
(8,501
)
 
(14,663
)
Prepaid expenses, deposits and other
 
(1,045
)
 
(2,676
)
 
(1,427
)
Accounts payable
 
(91
)
 
2,257
 
 
4,636
 
Accrued expenses
 
5,978
 
 
8,621
 
 
10,759
 
Accrued litigation settlement
 
100,000
 
 
21,411
 
 
(121,411
)
Deferred revenue
 
25,745
 
 
22,255
 
 
57,031
 
Net cash provided by (used in) operating activities
 
3,215
 
 
1,573
 
 
(59,609
)
CASH FLOWS USED IN INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(1,242
)
 
(1,747
)
 
(1,188
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Net proceeds from borrowings
 
869
 
 
 
 
83,743
 
Net proceeds from issuance of Series C Preferred Stock
 
 
 
 
 
9,907
 
Principal payments on borrowings
 
(1,271
)
 
(432
)
 
(15,313
)
Principal payments on capital leases
 
(173
)
 
(430
)
 
(733
)
Debt issuance costs paid
 
(176
)
 
(31
)
 
(560
)
Proceeds from exercise of employee stock options
 
91
 
 
51
 
 
44
 
Deferred offering costs paid
 
(2,294
)
 
 
 
 
Net cash provided by (used in) financing activities
 
(2,954
)
 
(842
)
 
77,088
 
Effect of foreign currency translation changes
 
(294
)
 
(285
)
 
(613
)
Net change in cash, cash equivalents and restricted cash
 
(1,275
)
 
(1,301
)
 
15,678
 
Cash, cash equivalents and restricted cash at beginning of year
 
15,135
 
 
13,860
 
 
12,559
 
Cash, cash equivalents and restricted cash at end of year
$
13,860
 
$
12,559
 
$
28,237
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
 
 
 
 
Cash paid for interest
$
711
 
$
829
 
$
2,972
 
Cash paid for income taxes
 
822
 
 
907
 
 
1,609
 
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Liability for mandatory fees and related debt discount under Credit Facility:
 
 
 
 
 
 
 
 
 
Balance at inception of Credit Facility
$
 
$
 
$
45,301
 
Adjustment for updated calculation of mandatory trigger event exit fees
 
 
 
 
 
9,957
 
Adjustment for mandatory consulting fees due to Amendment
 
 
 
 
 
6,000
 
Deemed dividend for beneficial conversion feature related to Series C Preferred Stock
 
 
 
 
 
10,000
 
Issuance of redeemable warrants for debt issuance costs
 
 
 
 
 
8,847
 
Purchase of equipment under capital lease obligations
 
883
 
 
769
 
 
868
 
Payables for capital expenditures
 
 
 
26
 
 
47
 

The accompanying notes are an integral part of these consolidated financial statements.

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Description of Business

Rimini Street, Inc. (“Rimini Street” or the “Company”) was incorporated in the state of Nevada in September 2005. The Company provides enterprise software support services.

Basis of Presentation and Consolidation

The consolidated financial statements, which include the accounts of the Company and its wholly-owned subsidiaries, are prepared in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). All significant intercompany balances and transactions have been eliminated. The Company has evaluated subsequent events through June 30, 2017, the date the consolidated financial statements were issued.

Liquidity

As of December 31, 2016, the Company had available cash, cash equivalents and restricted cash of $28.2 million. As of December 31, 2016 and June 30, 2017, the Company has cash obligations related to its Credit Facility that are due within the next 12 months for principal, interest and other fees of $40.6 million and $40.8 million, respectively. The Company believes that current cash, cash equivalents, restricted cash and future cash flow from operating activities will be sufficient to meet the Company’s anticipated cash needs, including working capital needs, capital expenditures and various contractual obligations for at least 12 months from the issuance date of these financial statements.

Reclassifications

Certain amounts in the prior years’ consolidated financial statements have been reclassified to conform to the current year’s presentation. These reclassifications had no effect on the previously reported net loss, working capital, stockholders’ deficit and cash flows.

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires the Company to make judgments, assumptions, and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes. The Company bases its estimates and assumptions on current facts, historical experience, and various other factors that it believes are reasonable under the circumstances, to determine the carrying values of assets and liabilities that are not readily apparent from other sources. The Company’s significant accounting estimates include, but are not necessarily limited to, revenue recognition, allowance for doubtful accounts, valuation of stock options, derivatives and warrants, useful lives for depreciation and amortization, deferred income taxes and related valuation allowances, and evaluation and measurement of contingencies. To the extent there are material differences between the Company’s estimates and the actual results, the Company’s future consolidated results of operation may be affected.

Risks and Uncertainties

Inherent in the Company’s business are various risks and uncertainties, including its limited operating history in a rapidly changing industry. These risks include the Company’s ability to manage its rapid growth and its ability to attract new customers and expand sales to existing customers, risks related to the litigation with Oracle Corporation as described in Note 9, as well as other risks and uncertainties. In the event that the Company does not successfully execute its business plan, certain assets may not be recoverable, certain liabilities may not be paid and investments in its capital stock may not be recoverable. The Company’s success depends upon the acceptance of its expertise in providing services, development of sales and distribution channels, and its ability to generate significant revenue from the use of this expertise.

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES   (continued)

Segments

The Company’s chief operating decision maker (the “CODM”), who is the Company’s Chief Executive Officer, allocates resources and assesses performance based on financial information of the Company. The CODM reviews financial information presented on an entity-level basis for purposes of making operating decisions and assessing financial performance. The entity-level financial information is identical to the information presented in the accompanying consolidated statements of operations and comprehensive loss. Accordingly, the Company has determined that it operates in a single operating and reportable segment.

Cash, Cash Equivalents and Restricted Cash

All highly liquid investments purchased with an original maturity of three months or less that are freely available for the Company’s immediate and general business use are classified as cash and cash equivalents. Cash and cash equivalents consist primarily of demand deposits with financial institutions.

Payments received from customers are initially deposited in cash accounts controlled by an agent of the Company’s lenders under the credit facility discussed in Note 5. Restricted cash also includes demand deposits that are pledged as collateral for corporate credit card debts. On a monthly basis, the Company submits a request to release the restricted funds and upon approval, the funds are transferred to the Company’s bank accounts that are classified as cash and cash equivalents.

Property and Equipment

Property and equipment are recorded at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful life of the following assets:

 
Years
Computer equipment
1-3
Furniture and fixtures
3-7
Capitalized software costs
3
Leasehold improvements
Up to 8 years, not to exceed lease term

Maintenance and repairs are expensed as incurred. Application development costs related to internal use software projects are capitalized and included in property and equipment on the consolidated balance sheets. Preliminary planning activities and post implementation activities for internal use software projects are expensed as incurred. Construction-in-progress primarily consists of computer equipment and leasehold improvements that have not yet been placed to service for their intended use. Depreciation commences once it is placed in service for its intended use.

Impairment of Long-lived Assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Impairment exists for property and equipment and other long term assets if the carrying amounts of such assets exceed the estimates of future net undiscounted cash flows expected to be generated by such assets. Impairment for software intangible assets is based upon a net realizable value assessment. An impairment charge is recognized by the amount by which the carrying amount of the asset, or asset group, exceeds its fair value. No impairment of long-lived assets occurred in the years presented.

Debt Issuance Costs and Discounts

Debt issuance costs are costs incurred to obtain new debt financing and consist of incremental direct costs incurred for professional fees and due diligence services, including reimbursement of similar costs incurred by the lenders. Debt issuance costs are allocated proportionately between funded and unfunded portions of debt. Amounts paid to the lenders when a financing is consummated are a reduction of the proceeds and are treated as a debt discount. Debt issuance costs and discounts related to funded debt are presented in the accompanying consolidated

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES   (continued)

balance sheet as a reduction in the carrying value of the debt and are accreted to interest expense using the effective interest method. When we make mandatory prepayments of principal under the Credit Facility, we write-off a proportional amount of unaccreted debt discount and issuance costs in relation to the total debt obligations under the Credit Facility. Debt issuance costs related to unfunded debt is presented in the accompanying consolidated balance sheet as a long-term asset and are amortized using the straight-line method over the contractual term of the debt agreement. Unamortized deferred debt issue costs are not charged to expense when the related debt becomes a demand obligation so long as it is probable that the lenders will either waive the violation of terms or will agree to amend or restructure the terms of the indebtedness. If either circumstance is probable, the deferred debt issuance costs continue to be amortized over the remaining term of the initial amortization period. If it is not probable, the costs will be charged to expense.

Deferred Offering Costs

Commissions, legal fees and other costs that are directly associated with equity offerings are capitalized as deferred offering costs, pending a determination of the success of the offering. Deferred offering costs related to successful offerings are charged to stockholders’ deficit in the period it is determined that the offering was successful. Deferred offering costs related to unsuccessful equity offerings are recorded as expense in the period when it is determined that an offering is unsuccessful. The Company expensed the costs related to an unsuccessful offering in 2014.

Revenue Recognition

Revenue is derived from support services, and to a lesser extent, software licensing and related maintenance and professional services. A substantial majority of revenue is from support services, and revenue from other sources has been minimal to date. Revenue is recognized when all the following criteria are met:

Persuasive evidence of an arrangement exists . The Company generally relies on a written sales contract to determine the existence of an arrangement.
Delivery has occurred . The Company considers delivery to have occurred over the contractual term when support service is available to the customer in the manner prescribed in the contractual arrangement, and when there are no further additional performance or delivery obligations.
Fee is fixed or determinable . The Company assesses whether the sales price is fixed or determinable based on the payment terms and whether the sales price is subject to refund or adjustment.
Collection is reasonably assured . Collection is deemed probable if the Company expects that the customer will be able to pay amounts under the arrangement as payments become due. Previous uncollectable receivables have not had a material impact on the consolidated financial statements for the periods presented.

The Company recognizes its support services revenue provided on third-party software in accordance with Accounting Standards Codification (ASC) 605 , Revenue Recognition , and SEC Staff Accounting Bulletin (SAB) 104, Revenue Recognition . Pricing for support services is generally established on a per-customer basis as set forth in the arrangements. The non-cancellable terms of the Company’s support services arrangements generally range from one to three years and in most cases, include an extended initial support service period of generally three to six months. This results in a discounted fee for the initial support service period. For such arrangements, revenue is limited to the amount that is not contingent upon the future delivery of support services whereby each annual billing period is recognized on a straight-line basis over the respective annual support service period. For arrangements not subject to this contingent revenue limitation, the total arrangement fee is recognized as revenue on a straight-line basis over the non-cancellable term.

In certain circumstances the Company enters into arrangements with multiple elements, comprised of support services for multiple third-party software platforms and to a much lesser extent professional services and software licensing and related maintenance support. When the Company enters into multiple element arrangements, these arrangements are evaluated to determine if the multiple elements consist of more than one unit of accounting and can

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES   (continued)

be separated accordingly. Based on separation criteria under U.S. GAAP, deliverables in multiple element arrangements can be segregated into separate units of accounting if they have value to the customer on a standalone basis. The items have value on a standalone basis if they are sold separately by any vendor or the customer could resell the delivered items on a standalone basis. If the sales arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered items are considered probable and substantially in the control of the vendor. If deliverables can be separated into individual units of accounting, then the Company allocates consideration at the inception of an arrangement to all deliverables based on the relative selling price method in accordance with the selling price hierarchy, which includes: (i) vendor-specific objective evidence (“VSOE”) if available; (ii) third-party evidence (“TPE”) if VSOE is not available, and (iii) best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. Revenue from each deliverable is recognized when all requirements are met for that specific deliverable. If deliverables cannot be separated into separate units of accounting, then the arrangement will be accounted for as a single unit of accounting and revenue will be recognized when all requirements are met for all deliverables within the arrangement.

In determining VSOE, accounting guidance requires that a substantial majority of the standalone selling prices for these products fall within a reasonably narrow pricing range. The Company has not established VSOE due to lack of pricing consistency. The Company has also concluded that TPE is not a practical alternative due to differences in its service offerings compared to other parties and the availability of relevant third-party-pricing information. Accordingly, the Company establishes BESP primarily by consistently pricing its arrangements following its internal pricing policy of quoting the customers a 50% discount to their current annual support fees they would otherwise pay enterprise software vendors. The Company regularly reviews BESP. Changes in assumptions or judgments or changes to the elements in the arrangement could cause an increase or decrease in the amount of revenue that the Company reports in a particular period.

In a limited number of arrangements, the Company also licenses software and related maintenance services under term-based arrangements. The terms of software licenses and services support are the same, and when support services are terminated, the software license is also terminated. To date software has not been licensed separately, but rather has only been licensed along with service support arrangements. This software is considered essential to the functionality of the support services for these arrangements. The Company applies the provisions of ASC 985-605, Software Revenue Recognition , to these deliverables. Accordingly, all revenue from the software license is recognized over the term of the support services.

Domestic sales taxes of $1.3 million, $1.3 million and $1.9 million for the years ended December 31, 2014, 2015 and 2016, respectively, have not been billed to customers, and have been included in general and administrative costs. Revenue generally includes any taxes withheld by foreign customers and subsequently remitted to governmental authorities in those foreign jurisdictions. Foreign withholding taxes included in revenue amounted to $0.2 million, $0.3 million and $0.5 million for the years ended December 31, 2014, 2015 and 2016, respectively.

Deferred revenue consists of billings issued that are non-cancellable but not yet paid and payments received in advance of revenue recognition. The Company typically invoices its customers at the beginning of the contract term, in annual and multi-year installments. Deferred revenue that is anticipated to be recognized during the succeeding 12-month period is recorded as current deferred revenue and the remaining portion is recorded as long-term deferred revenue.

Allowance for Doubtful Accounts

The Company records a provision for doubtful accounts based on historical experience and a detailed assessment of the collectability of its accounts receivable. In estimating the allowance for doubtful accounts, the Company considers, among other factors, the aging of the accounts receivable, its historical write-offs, the credit worthiness of customers, and general economic conditions. Account balances are charged off against the allowance when the Company believes that it is probable that the receivable will not be recovered. Actual write-offs may either be in excess or less than the estimated allowance.

Advertising

Advertising costs are charged to sales and marketing expense in the period incurred.

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES   (continued)

Legal Costs

Legal fees and costs are charged to general and administrative expense as incurred, other than legal fees and costs that are accounted for as deferred offering costs and debt issuance costs.

Loss Contingencies

The Company is subject to the possibility of various loss contingencies arising in the ordinary course of business. An estimated loss contingency is accrued when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. If some amount within a range of loss appears to be a better estimate than any other amount within the range, the Company accrues that amount. Alternatively, when no amount within a range of loss appears to be a better estimate than any other amount, the Company accrues the lowest amount in the range. If the Company determines that a loss is reasonably possible and the range of the loss is estimable, then the Company discloses the range of the possible loss. If the Company cannot estimate the range of loss, it will disclose the reason why it cannot estimate the range of loss. The Company regularly evaluates current information available to it to determine whether an accrual is required, an accrual should be adjusted and if a range of possible loss should be disclosed.

Stock-Based Compensation and Warrant Expense

The Company measures the cost of employee and director services received in exchange for all equity awards granted, including stock options, based on the fair market value of the award as of the grant date. The Company computes the fair value of options using the Black-Scholes-Merton (“BSM”) option pricing model. The Company recognizes the cost of the equity awards over the period that services are provided to earn the award, usually the vesting period. For awards granted which contain a graded vesting schedule, and the only condition for vesting is a service condition, compensation cost is recognized as an expense on a straight-line basis over the requisite service period as if the award was, in substance, a single award. Stock-based compensation expense is recognized based on awards ultimately expected to vest whereby estimates of forfeitures are based upon historical experience.

In addition, the Company also utilizes the BSM option-pricing model to estimate the fair value of warrants granted to one of its stockholders in 2014. The fair value of such warrants is charged to expense on a straight-line basis over the requisite service period. For warrants where a performance commitment date has not been established, the fair value is adjusted periodically until the commitment date occurs.

Embedded Derivatives

When the Company enters into a financial instrument such as a debt or equity agreement (the “host contract”), the Company assesses whether the economic characteristics of any embedded features are clearly and closely related to the primary economic characteristics of the remainder of the host contract. When it is determined that (i) an embedded feature possesses economic characteristics that are not clearly and closely related to the primary economic characteristics of the host contract, and (ii) a separate, stand-alone instrument with the same terms would meet the definition of a financial derivative instrument, then the embedded feature is bifurcated from the host contract and accounted for as a derivative instrument. The estimated fair value of the derivative feature is recorded separately from the carrying value of the host contract, with subsequent changes in the estimated fair value recorded as a non-operating gain or loss in the Company’s consolidated statements of operations.

Beneficial Conversion Features

A beneficial conversion feature is a non-detachable conversion feature that is “in the money” at the commitment date, which requires recognition of a deemed dividend. A conversion option is in the money if the conversion price is lower than the fair value of a share into which it is convertible.

Income Taxes

The Company accounts for income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES   (continued)

are expected to be recovered or settled. Realization of deferred tax assets is dependent upon future taxable income. A valuation allowance is recognized if it is more likely than not that some portion or all of a deferred tax asset will not be realized based on the weight of available evidence, including expected future earnings.

The Company recognizes an uncertain tax position in its financial statements when it concludes that a tax position is more likely than not to be sustained upon examination based solely on its technical merits. Only after a tax position passes the first step of recognition will measurement be required. Under the measurement step, the tax benefit is measured as the largest amount of benefit that is more likely than not to be realized upon effective settlement. This is determined on a cumulative probability basis. The full impact of any change in recognition or measurement is reflected in the period in which such change occurs. Interest and penalties related to income taxes are recognized in the provision for income taxes.

Foreign Currency Translation

The Company’s reporting currency is the U.S. Dollar, while the functional currencies of its foreign subsidiaries are their respective local currencies. The asset and liability accounts of the foreign subsidiaries are translated from their local currencies at the exchange rates in effect on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the period. Gains and losses resulting from the translation of the subsidiary balance sheets are recorded net of tax as a component of accumulated other comprehensive loss. Gains and losses from foreign currency transactions are recorded in other income and expense in the consolidated statements of operations and comprehensive loss. The tax effect has not been material to date.

Loss Per Share

Basic net loss per share is computed by dividing the net loss by weighted average number of common shares outstanding for each fiscal period presented. Diluted net loss per common share is computed by giving effect to all potential shares of common stock, including convertible preferred stock, stock options and warrants, to the extent dilutive. Preferred stock shares participate in dividends but are not considered participating securities when there is a net loss because the holders do not have a contractual obligation to share in the losses.

Recent Accounting Pronouncements

Standards Required to be Adopted in Future Years. The following recently issued accounting standards are not yet effective; the Company is assessing the impact these standards will have on its consolidated financial statements, as well as the method of adoption and period in which adoption is expected to occur:

In March 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-09, Improvements to Employee Share-Based Payment , aimed at simplifying the accounting for share-based transactions. The update included modifications to the accounting for income taxes upon vesting or settlement of equity awards, employer tax withholding on share-based compensation and financial statement presentation of excess tax benefits. The update also provides an alternative on incorporating forfeitures in share-based compensation. The Company adopted ASU No. 2016-09 effective January 1, 2017. The impact of adoption did not have a material effect on the Company’s consolidated financial statements, and the Company will maintain its current practice of estimating forfeitures in accounting for stock-based compensation.

In February 2016, the FASB issued ASU No. 2016-02, Leases , which requires organizations that lease assets (“lessees”) to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. Under the new guidance, both finance and operating leases will be required to be recognized on the balance sheet. Additional quantitative and qualitative disclosures, including significant judgments made by the management, will also be required. For public entities, the new guidance will be effective in fiscal years, and interim periods within those fiscal years beginning after December 15, 2018. For other entities, the new guidance is effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019. Early adoption is permitted. However, the new guidance must be adopted retrospectively to each prior reporting period presented upon initial adoption. Management has not completed its evaluation to determine the impact that adoption of this standard will have on the Company’s consolidated financial statements.

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES   (continued)

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The new guidance provides a five-step process for recognizing revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also requires expanded qualitative and quantitative disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for public companies with annual reporting periods beginning after December 31, 2017, and is to be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial adoption. Early adoption is permitted for all entities but not before the original effective date for public entities. The guidance is effective for private companies with annual reporting periods beginning after December 15, 2018, with the option of adopting early at the same time as public companies. Management is currently reviewing historical contracts to quantify the impact that the adoption of the standard will have on specific performance obligations, as well as the recognition of costs related to obtaining customer contracts. Management has not completed its evaluation to determine the impact and method that adoption of this standard will have on the Company’s consolidated financial statements.

Recently Adopted Standards. The following recently issued accounting standards were adopted during the year ended December 31, 2016:

In November 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-18, Statement of Cash Flows – Restricted Cash , which require entities that have restricted cash or restricted cash equivalents to reconcile the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents in its statement of cash flows. As a result, amounts generally described as cash and restricted cash equivalents should be included with cash and cash equivalents shown on the statement of cash flows. As permitted by ASU No. 2016-18, the Company elected to adopt this standard during 2016 using the retrospective transition method. As discussed in Note 4, the adoption did not have a material impact on the Company’s previously reported consolidated statements of cash flows for the years ended December 31, 2014 and 2015.

In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern that requires management to evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued on both an interim and annual basis. Management is required to provide certain footnote disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the Company’s ability to continue as a going concern. The Company adopted ASU No. 2014-15 during the fourth quarter of 2016 and the adoption did not have an impact on its consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , which provides guidance to customers on whether a cloud computing arrangement includes a software license. If so, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The Company adopted ASU No. 2015-05 during the first quarter of 2016 and the adoption did not have an impact on its consolidated financial statements.

During 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs , and No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements , which generally require the presentation of debt issuance costs as a direct deduction from the carrying amount of the related debt liabilities. However, for debt issuance costs related to line-of-credit and similar arrangements, the Company is permitted to continue presenting debt issuance costs as a deferred asset and subsequently amortizing the debt issuance costs ratably over the contractual term of the debt arrangement. The Company adopted ASU No. 2015-03 and ASU 2015-15 during the first quarter of 2015. As a result of the

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES   (continued)

adoption of these standards, as discussed in Note 5, the allocable debt issuance costs related to the funded portion of the Credit Facility (defined below) are presented as a reduction of the carrying value of the debt, and the allocable debt issuance costs related to the unfunded portion of the Credit Facility are presented as deferred assets.

NOTE 3—Financial Instruments and Significant Concentrations

Fair Value Measurements

Fair value is defined as the price that would be received upon sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it transacts, and considers assumptions that market participants would use when pricing the asset or liability. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair measurement:

Level 1—Quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date

Level 2—Other than quoted prices included in Level 1 that are observable for the asset and liability, either directly or indirectly through market collaboration, for substantially the full term of the asset or liability

Level 3—Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any market activity for the asset or liability at measurement date

The Company does not have any assets that are carried at fair value on a recurring basis. The Company’s redeemable warrant liability and embedded derivative liability are the only liabilities that are carried at fair value on a recurring basis and are classified within Level 3 of the fair value hierarchy. Details of the redeemable warrant and embedded derivative liabilities, including valuation methodology and key assumptions and estimates used, are disclosed in Note 7 and Note 5, respectively. The Company’s policy is to recognize asset or liability transfers among Level 1, Level 2 and Level 3 as of the actual date of the events or change in circumstances that caused the transfer. During the two years ended December 31, 2015 and 2016, the Company had no transfers of its assets or liabilities between levels of the fair value hierarchy.

The carrying amounts of the Company’s financial instruments including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued liabilities approximate fair values due to their short-term maturities. Based on borrowing rates currently available to the Company for debt with similar terms, the carrying value of capital lease obligations, the line of credit and loan payable also approximate fair value as of the respective balance sheet dates. Due to the complex and unique terms of the Credit Facility, it is not reasonably practicable to determine the current fair value.

Significant Concentrations

The Company attributes revenue to geographic regions based on the location of its customers’ contracting entity. The following shows net revenue by geographic region for the years ended December 31, 2014, 2015 and 2016 (in thousands):

 
2014
2015
2016
United States of America
$
62,341
 
$
82,803
 
$
110,746
 
International
 
23,007
 
 
35,360
 
 
49,429
 
Total revenue
$
85,348
 
$
118,163
 
$
160,175
 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 3—Financial Instruments and Significant Concentrations  (continued)

No customer represented more than 10% of revenue for the years ended December 31, 2014, 2015 or 2016. As of December 31, 2014, 2015 and 2016, no customers represented 10% or more of total net accounts receivable. The Company tracks its assets by physical location. The majority of the Company’s long-lived assets are located in the United States as of December 31, 2015 and 2016.

Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, and accounts receivable. The Company maintains its cash, cash equivalents and restricted cash at high-quality financial institutions, primarily in the United States of America. Deposits, including those held in foreign branches of global banks, may exceed the amount of insurance provided on such deposits. As of December 31, 2016, the Company had cash and cash equivalents of $4.5 million and restricted cash of $15.9 million with a single financial institution. The Company also had $2.4 million of restricted cash with another financial institution. The Company has never experienced any losses related to these balances.

Generally, credit risk with respect to accounts receivable is diversified due to the number of entities comprising the Company’s customer base and their dispersion across different geographies and industries. The Company performs ongoing credit evaluations on certain customers and generally does not require collateral on accounts receivable. The Company maintains reserves for potential bad debts and historically such losses are generally not significant.

NOTE 4—OTHER FINANCIAL INFORMATION

Cash, cash equivalents and restricted cash

As discussed above, during 2016 the Company elected to early adopt ASU No. 2016-18, Statement of Cash Flows – Restricted Cash , which requires the inclusion of restricted cash to reconcile the change during the period in the total cash, cash equivalents, and restricted cash in the consolidated statements of cash flows. As required by ASU No. 2016-18, the adoption of this standard was applied using the retrospective transition method, which did not result in a change to the previously reported cash flows from operating, investing and financing activities.

For purposes of the statement of cash flows, as of December 31, 2014, 2015 and 2016 cash, cash equivalents and restricted cash are as follows (in thousands):

 
2014
2015
2016
Cash and cash equivalents
$
13,758
 
$
12,457
 
$
9,385
 
Restricted cash:
 
 
 
 
 
 
 
 
 
Control accounts under Credit Facility
 
 
 
 
 
18,263
 
Corporate credit card debts and other
 
102
 
 
102
 
 
589
 
Total cash, cash equivalents and restricted cash
$
13,860
 
$
12,559
 
$
28,237
 

Allowance for Doubtful Accounts

Activity in the allowance for doubtful accounts is set forth below for the years ended December 31, 2014, 2015 and 2016 (in thousands):

 
2014
2015
2016
Allowance, beginning of year
$
 
$
115
 
$
115
 
Provisions
 
186
 
 
55
 
 
57
 
Write offs, net of recoveries
 
(71
)
 
(55
)
 
(136
)
Allowance, end of year
$
115
 
$
115
 
$
36
 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 4—OTHER FINANCIAL INFORMATION  (continued)

Prepaid Expenses and Other Current Assets

As of December 31, 2015 and 2016, prepaid expenses and other current assets consist of the following (in thousands):

 
2015
2016
Prepaid expenses and deposits
$
4,298
 
$
4,500
 
Foreign tax refunds receivable
 
238
 
 
483
 
Prepaid loan agent and service fees
 
 
 
218
 
Other
 
541
 
 
547
 
Total
$
5,077
 
$
5,748
 

Property and Equipment

As of December 31, 2015 and 2016, property and equipment consisted of the following (in thousands):

 
2015
2016
Computer equipment
$
4,942
 
$
6,033
 
Furniture and fixtures
 
2,078
 
 
2,406
 
Capitalized software costs
 
508
 
 
433
 
Leasehold improvements
 
605
 
 
739
 
Construction-in-progress
 
255
 
 
297
 
Total property and equipment
 
8,388
 
 
9,908
 
Less accumulated depreciation
 
(4,255
)
 
(5,349
)
Property and equipment, net
$
4,133
 
$
4,559
 

Depreciation expense was $0.8 million, $1.4 million and $1.7 million for the years ended December 31, 2014, 2015 and 2016, respectively.

Other Accrued Liabilities

As of December 31, 2015 and 2016, accrued expenses consist of the following (in thousands):

 
2015
2016
Accrued compensation and benefits:
 
 
 
 
 
 
Bonuses and commissions
$
6,754
 
$
11,015
 
Salaries and benefits
 
5,568
 
 
7,289
 
Accrued sales and other taxes
 
4,845
 
 
8,411
 
Accrued professional fees
 
5,935
 
 
7,184
 
Current maturities of capital lease obligations
 
531
 
 
802
 
Income taxes payable
 
492
 
 
433
 
Other accrued expenses
 
2,027
 
 
1,516
 
Total accrued expenses
$
26,152
 
$
36,650
 

As of December 31, 2015 and 2016, accrued professional fees included a 15% holdback, or approximately $2.7 million, for amounts due to one of the Company’s attorneys for defense costs in connection with the Oracle litigation described in Note 9. The holdback amount is expected to be paid in the second half of 2017.

Advertising

Advertising costs were $0.3 million, $0.8 million and $1.3 million for the years ended December 31, 2014, 2015 and 2016, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 4—OTHER FINANCIAL INFORMATION  (continued)

Other Expense, Net

For the years ended December 31, 2014, 2015 and 2016, other expense, net consists of the following (in thousands):

 
2014
2015
2016
Interest income
$
8
 
$
11
 
$
27
 
Other expenses
 
(4
)
 
(50
)
 
(90
)
Foreign currency transaction losses
 
(847
)
 
(1,065
)
 
(1,724
)
Total other expense, net
$
(843
)
$
(1,104
)
$
(1,787
)

NOTE 5—DEBT

As of December 31, 2015 and 2016, debt consists of the following (dollars in thousands):

 
2015
2016
Credit Facility, net of discount
$
 
$
88,064
 
Line of credit
 
14,700
 
 
 
Note payable, interest at 9.0%
 
114
 
 
 
Total
 
14,814
 
 
88,064
 
Less current maturities
 
(14,814
)
 
(24,750
)
Long-term debt, net of current maturities
$
 
$
63,314
 

Credit Facility

Initial Agreement. In June 2016, the Company entered into a multi-draw term loan Financing Agreement (the “Credit Facility”) with a syndicate of lenders (the “Lenders”). The Credit Facility provides for an aggregate commitment up to $125.0 million, which consisted of an initial term loan for $30.0 million in June 2016, a “delayed draw A Term Loan” for $65.0 million, and a “delayed draw B Term Loan” for $30.0 million. The net proceeds received at closing of the initial $30.0 million term loan amounted to $19.1 million.

Outstanding term loans under the Credit Facility mature in June 2020, and require monthly interest payments at 15.0% per annum, consisting of 12.0% per annum that is payable in cash and 3.0% per annum that is payable through the issuance of additional borrowings beginning on the interest payment due date (referred to as paid-in-kind, or “PIK” interest). Until full funding occurs, the Company was required to pay an unused line fee of 15.0% per annum on the $65.0 million commitment under the delayed draw A Term Loan and 5.0% per annum on the $30.0 million commitment under the delayed draw B Term Loan. The unused line fee expired in October 2016 for the delayed draw A Term Loan. The unused line fee for the delayed draw B Term Loan will expire in June 2020, subject to early termination events as set forth in the Credit Facility. The Company is also subject to collateral monitoring fees at the rate of 0.5% (2.5% after the Second Amendment discussed below) of the outstanding term loans. All unused line fees and collateral monitoring fees are payable monthly in arrears and are recorded as a component of debt financing fees in the period incurred. In addition, a make whole interest payment of 15.0% per annum through June 2019 is required for certain principal prepayments as defined in the Credit Facility. Upon the occurrence and during the continuance of any event of default, the principal (including PIK interest), and all unpaid interest shall bear an additional interest rate of 2.0% per annum (the “Default Interest”) from the date such event of default occurs until it is cured or waived.

Beginning in the second quarter of 2017 and continuing through maturity of the term loans, the Credit Facility requires additional quarterly principal payments of the term loans equal to 25% of the calculated Excess Cash Flow (as defined in the Credit Facility) for the previous fiscal quarter. As discussed below, this percentage was subsequently increased to 75%.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 5—DEBT   (continued)

An origination fee equal to 5.0% of the $125.0 million commitment was paid in cash to the Lenders from the proceeds of the initial term loan. The Credit Facility provides for an Original Issue Discount of 2.0% of the initial face amount of the debt and is applicable to the initial term loan as well as the delayed draw A and B Term Loans, upon meeting the conditions for funding.

Concurrently with execution of the Credit Facility, one of the lenders that serves as the origination agent (the “Origination Agent”) agreed to provide general business and financial strategy, corporate structure, and long-term strategic planning services pursuant to a consulting agreement that required the Company to issue a warrant and to make annual cash payments of $2.0 million over the four-year term of the agreement. The Credit Facility provided for a pro rata reduction in the annual cash portion of the consulting fee when over 50% of the original principal balances have been repaid. The Company accounts for the fees payable under this arrangement as debt issuance costs since the value of the services is not determinable. The consulting agreement entered into with the Origination Agent also provided for the issuance of a warrant to purchase 11,075,027 shares of the Company’s Class A Common Stock, representing approximately 5.0% of the Company’s fully-diluted share capital, at an exercise price of $1.35 per share. In order to maintain the number of shares equivalent to 5.0% of the Company’s fully-diluted share capital, the number of shares issuable under the warrant shall increase if the Company subsequently completes equity offerings up to $20.0 million (subsequently reduced to $10.0 million due to issuance of Series C Preferred Stock discussed in Note 6). The fair value of the warrant at issuance was $8.8 million, which was accounted for as a debt issuance cost. As discussed in Note 7, due to a cash redemption feature the fair value of the warrant is being accounted for as a liability in the Company’s consolidated balance sheet, and is subject to periodic re-measurement to reflect changes in the fair value that are reflected as a component of non-operating income (expense).

The Credit Facility also requires certain payments to the Origination Agent upon the occurrence of a trigger event (“Trigger Event”), which is defined as the earliest of (i) the debt maturity date of June 2020, (ii) the first date on which all the obligations are repaid in full and the commitments of the Lenders are terminated, (iii) the acceleration of the obligations in the event of a default, (iv) initiation of any insolvency proceeding, foreclosure or deed in lieu of foreclosure, and (v) the termination of the Credit Facility for any reason. Upon a Trigger Event, the Company is required to pay (i) a commitment exit fee, (ii) a continuing origination agent service fee, (iii) a consulting exit fee of $14.0 million, and (iv) a foreign withholding tax fee of up to $2.0 million. The commitment exit fee is calculated using the annualized revenue for the most recent fiscal quarter in which a Trigger Event occurs, times a multiplier of 6.9% of annualized revenue up to $300.0 million, and lower percentages for annualized revenue in excess of $300.0 million. The settlement value of the commitment exit fee was $9.6 million at inception of the Credit Facility. The continuing origination agent service fee is also calculated using the annualized revenue for the most recent fiscal quarter in which a Trigger Event occurs, times a multiplier of 14.1% of annualized revenue up to $300.0 million, and lower percentages for annualized revenue in excess of $300.0 million. The continuing origination agent fee was estimated at $19.7 million at inception of the Credit Facility. At inception of the Credit Facility, the aggregate Trigger Event fees amounted to approximately $45.3 million. This amount is subject to change by the time the Company terminates the Credit Facility; as of December 31, 2016, the aggregate Trigger Event fees amounted to $55.3 million.

Debt issuance costs at inception of the Credit Facility include incremental direct costs incurred by the Company for professional fees and due diligence services of $2.9 million that were incurred to obtain the Credit Facility, including reimbursement of similar costs incurred by the Lenders. Debt issuance costs were accreted to interest expense using the effective interest method for the funded portion of the Credit Facility. Debt issuance costs allocated to unfunded portions of the Credit Facility are being amortized using the straight-line method over the contractual term of the Credit Facility. Amortization of debt issuance costs allocated to unfunded portions of the Credit Facility are included in debt financing fees in the accompanying consolidated statement of operations for the year ended December 31, 2016. The Company also incurred an annual loan service fee of $0.4 million and an annual agent fee of $0.1 million, which are being amortized to debt financing fees using the straight-line method over the annual period of the services. As of December 31, 2016, the aggregate unamortized balance of the loan service and agent fees was approximately $0.2 million, which is included in prepaid expenses and other in the accompanying consolidated balance sheet.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 5—DEBT   (continued)

Borrowings under the Credit Facility are collateralized by substantially all assets of the Company, including certain cash depository accounts that are subject to control agreements with the Lenders. As of December 31, 2016, the restricted cash balance under the control agreements totaled $18.3 million. The Company is required to comply with various financial and operational covenants on a monthly or quarterly basis, including a leverage ratio, minimum liquidity, churn rate, asset coverage ratio, minimum gross margin, and certain budget compliance restrictions. Additionally, the covenants in the Credit Facility prohibit or limit the Company’s ability to incur additional debt, pay cash dividends, sell assets, merge or consolidate with another company, and other customary restrictions associated with debt arrangements.

At inception of the Credit Facility, the future proceeds from the delayed draw A and B Term Loans were structured to fund required payments to settle the judgment in the Oracle litigation and to accelerate the Company’s next phase of growth and product portfolio expansion. Under the Credit Facility, the Lenders’ obligation to fund the delayed draw A and B Term Loans was subject to certain conditions set forth in the Credit Facility. In October 2016, the Company determined that the amount of borrowings required to fully settle the Oracle litigation discussed in Note 9 exceeded the limitation set forth in the Credit Facility, and the Company had not delivered 2015 audited financial statements to the Lenders, both of which resulted in the existence of an event of default and prevented the Company from being able to gain access to the delayed draw A and B Term Loans.

Amendment to Credit Facility. In October 2016, the Company and the Lenders entered into an amendment to the Credit Facility (the “Second Amendment”), which provided for the following:

The Lenders agreed to modify certain conditions precedent to enable funding of the delayed draw A Term Loan for $65.0 million and the delayed draw B Term Loan for $12.5 million. An original issue discount equal to 2.0% of each loan was deducted from the proceeds for a total of $1.6 million. Such loans were required to be used solely for payments required under the Oracle litigation. Subject to additional conditions precedent and with the consent of the Origination Agent, the Company can borrow the remaining $17.5 million under the delayed draw B Term Loan. Due to an existing event of default as discussed below, the Company did not have the ability to borrow the $17.5 million as of December 31, 2016.
The Lenders provided a waiver of the existing events of default, and agreed to waive their right to charge Default Interest during the period that the event of default existed.
The Company was required to complete an equity offering of at least $10.0 million, which was effected through the issuance of newly authorized Series C Preferred Stock as discussed in Note 6.
During the seven-month period ending on May 28, 2017, the Company was required to complete additional equity issuances that result in aggregate net proceeds of at least $35.0 million, with 50% of such net proceeds utilized to repay outstanding borrowings to the Lenders. At the time of such payment the Company will be subject to a make-whole interest payment pursuant to the terms of the Credit Facility. As discussed in Note 12, the Lenders agreed to extend the date to complete equity issuances of at least $35.0 million from May 2017 until November 2018; if the Company fails to obtain such proceeds by November 2018, an event of default will exist.
Beginning in the second quarter of 2017, the requirement to make quarterly principal payments equal to 25% of the calculated Excess Cash Flow was increased to 75% of Excess Cash Flow. Additionally, all customer prepayments for service periods in excess of one year that are received after April 1, 2017, are required to be applied to reduce the outstanding principal balance.
The monthly collateral monitoring fee increased from 0.50% per annum to 2.50% per annum of the outstanding borrowings, including PIK borrowings.
The Company paid a $10.0 million fee to the Lenders for the Second Amendment and incurred professional fees and other incremental and direct costs of the Second Amendment of $1.5 million. These costs are being accounted for as additional debt issuance costs and were allocated proportionately to the funded and unfunded debt.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 5—DEBT   (continued)

In addition to the execution of the Second Amendment, the Company and the Origination Agent entered into an amended consulting agreement, which eliminated the pro rata reduction in the annual cash portion of the consulting fee when over 50% of the principal balances have been repaid. The elimination of the pro rata reduction changed the contingent nature of the future consulting payments and, accordingly, the Company accrued the entire $6.0 million of remaining payments as a contractual debt liability and a corresponding debt discount as of the date of the Second Amendment. The Company evaluated the initial term loan and the unfunded delayed draw A and B Term loans separately and concluded that the Second Amendment should be accounted for as a modification rather than an extinguishment. Accordingly, the debt discount and issuance costs immediately before the Second Amendment, plus the additional amendment fee and third-party costs related to the Second Amendment, are included as part of the net carrying value of the funded debt and as long-term debt issuance costs for the unfunded debt. An existing preferred stockholder has a $10.0 million indirect interest in the amended Credit Facility.

During November and December of 2016 and the first four months of 2017, the Company had made expenditures that exceeded certain budgetary compliance covenants set forth in the Credit Facility and the Company failed to provide audited financial statements by April 30, 2017, which resulted in the existence of events of default under the Credit Facility. As discussed in Note 12, the Lenders amended the Credit Facility in May 2017 (the “Third Amendment”) and revised the metrics associated with the previously violated covenants whereby they are less restrictive for past and future compliance and extended the due date of the audited financial statements to August 31, 2017, which resulted in the elimination of these covenant violations.

Presented below is a summary of activity related to the funded debt, including allocated debt issuance costs, for the period from June 24, 2016 (inception of the loan) through December 31, 2016 (in thousands):

 
June 24,
2016
PIK
Accrual
Liability
Adjustments
Principal
Funding
Transfers (1)
Amendment
Costs
December 31,
2016
Borrowings
Payments
Contractual liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal balance
$
30,000
 
$
900
 
$
 
$
77,500
 
$
(500
)
$
 
$
 
$
107,900
 
Mandatory trigger event exit fees
 
45,301
 
 
 
 
9,957
 
 
 
 
 
 
 
 
 
 
55,258
 
Mandatory consulting fees
 
 
 
 
 
6,000
 
 
 
 
 
 
 
 
 
 
6,000
 
Total contractual liability
$
75,301
 
$
900
 
$
15,957
 
$
77,500
 
$
(500
)
$
 
$
 
 
169,158
 
Debt discount and issuance costs:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Original issue discount
$
600
 
$
 
$
 
$
1,550
 
$
 
$
 
$
 
$
2,150
 
Origination fee
 
1,500
 
 
 
 
 
 
 
 
 
 
3,875
 
 
 
 
5,375
 
Amendment fee
 
 
 
 
 
 
 
 
 
 
 
 
 
8,600
 
 
8,600
 
Fair value of warrants
 
2,123
 
 
 
 
 
 
 
 
 
 
5,485
 
 
 
 
7,608
 
Consulting fees to lenders
 
480
 
 
 
 
6,000
 
 
 
 
 
 
1,240
 
 
 
 
7,720
 
Mandatory trigger event exit fees
 
45,301
 
 
 
 
9,957
 
 
 
 
 
 
 
 
 
 
55,258
 
Other issuance costs
 
697
 
 
 
 
 
 
 
 
 
 
1,799
 
 
1,327
 
 
3,823
 
Total discount and issuance costs
$
50,701
 
$
 
$
15,957
 
$
1,550
 
$
 
$
12,399
 
$
9,927
 
 
90,534
 
Amortization expense, net (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(9,440
)
Net discount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
81,094
 
Net carrying value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
88,064
 
(1) The proportionate debt issuance costs for periods prior to the funding date were transferred from the unfunded debt to the funded debt in October 2016 in connection with the Amendment.
(2) Consists of $8.4 million of accretion related to funded debt, plus a $1.1 million transfer of amortization from the unfunded debt issuance costs in October 2016 in connection with the Amendment.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 5—DEBT   (continued)

The Company accounts for debt issuance costs related to the unfunded portion of the Credit Facility as a long-term asset that is amortized to expense using the straight-line method over the four-year term of the Credit Facility. Presented below is a summary of activity related to debt issuance costs allocated to the unfunded debt for the period from June 24, 2016 (inception of the loan) through December 31, 2016 (in thousands):

 
June 24,
2016
Funding
Transfers (1)
Amendment
Costs
December 31,
2016
Origination fee
$
4,750
 
$
(3,875
)
$
 
$
875
 
Amendment fee
 
 
 
 
 
1,400
 
 
1,400
 
Fair value of warrants
 
6,724
 
 
(5,485
)
 
 
 
1,239
 
Consulting fees to lenders
 
1,520
 
 
(1,240
)
 
 
 
280
 
Other issuance costs
 
2,205
 
 
(1,799
)
 
183
 
 
589
 
Total deferred debt issuance costs
$
15,199
 
$
(12,399
)
$
1,583
 
 
4,383
 
Amortization expense, net (2)
 
 
 
 
 
 
 
 
 
 
(433
)
Deferred debt issuance costs, net
 
 
 
 
 
 
 
 
 
$
3,950
 
(1) The proportionate costs and accumulated amortization for the period prior to the funding date were transferred from the unfunded debt to the funded debt in October 2016 in connection with the Amendment.
(2) Consists of amortization expense related to unfunded debt of $1.5 million for the period through October 2016, net of the transfer of $1.1 million of accumulated amortization upon funding of $77.5 million in connection with the Amendment in October 2016.

As of December 31, 2016, accretion of discount and debt issuance costs related to the funded portion of the Credit Facility is at an annual rate of 25.6%, resulting in an overall effective rate of 40.6% (excluding the impact of unused line fees, collateral monitoring fees, and amortization of debt issuance costs related to the unfunded portion of the Credit Facility). Based on the $169.2 million contractual liability outstanding under the Credit Facility, the scheduled future maturities as of December 31, 2016, are as follows (in thousands):

Year Ending December 31,
Principal
Trigger
Event Fees
Consulting
Total
2017
$
22,750
(1)
$
 
$
2,000
 
$
24,750
 
2018
 
28,500
 
 
 
 
2,000
 
 
30,500
 
2019
 
30,000
 
 
 
 
2,000
 
 
32,000
 
2020
 
26,650
 
 
55,258
 
 
 
 
81,908
 
Total
$
107,900
 
$
55,258
 
$
6,000
 
$
169,158
 
(1) Consists of aggregate monthly principal amortization as set forth in the Third Amendment to the Credit Facility discussed in Note 12.

The principal amortization set forth in the table above reflects accelerated payment amounts assuming the Company is unable to complete equity issuances for net proceeds of at least $35.0 million by the original deadline of May 28, 2017 (subsequently amended to November 30, 2018) as set forth in the Credit Facility. As of December 31, 2016, the current maturities of long-term debt amounted to $24.8 million as shown in the table above. The scheduled minimum principal payments shown above for the year ending December 31, 2017 exclude (i) the repayment of $14.1 million of principal in April 2017 in connection with the insurance settlement discussed in Note 12; (ii) principal payments based on the calculation of 75% of Excess Cash Flow generated for each of the calendar quarters ending in 2017, (iii) customer prepayments for service periods exceeding one year that are received after April 1, 2017, and that are required to be applied to reduce the outstanding principal balance, and (iv) additional principal payments that the Company may be required or elected in connection with the Merger Agreement discussed in Note 12. As discussed in Note 12, in May 2017 the Company made a principal payment of $6.5 million, including satisfaction of the 75% of Excess Cash Flow payment of $4.0 million for the first quarter of 2017. Principal payments

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 5—DEBT   (continued)

based on Excess Cash Flow are excluded from current maturities since they are contingent payments based on the generation of working capital in the future. However, changes in principal payments for 2017 that result from the Third Amendment to the Credit Facility are included as current maturities since the amendment was required to cure events of default that existed as of December 31, 2016.

The components of interest expense for the years ended December 31, 2014, 2015 and 2016 are presented below (in thousands):

 
2014
2015
2016
Credit Facility:
 
 
 
 
 
 
 
 
 
Interest expense at 12.0%
$
 
$
 
$
3,597
 
PIK interest at 3.0%
 
 
 
 
 
900
 
Accretion expense for funded debt
 
 
 
 
 
8,371
 
Interest on other borrowings
 
742
 
 
829
 
 
488
 
Total interest expense
$
742
 
$
829
 
$
13,356
 

The components of fees associated with debt financings for the years ended December 31, 2014, 2015 and 2016 are presented below (in thousands):

 
2014
2015
2016
Unused line fees
$
 
$
 
$
4,095
 
Collateral monitoring fees
 
 
 
 
 
538
 
Amortization of debt issuance costs related to unfunded debt
 
 
 
 
 
1,501
 
Amortization of prepaid agent fees and other
 
 
 
 
 
237
 
Total debt financing fees
$
 
$
 
$
6,371
 

Success Fee. If the Company requests that the Lenders assist in arranging future debt financings, a “success fee” equal to 4.0% of the total maximum commitment amount (whether or not drawn) will be payable to the Lenders. This arrangement will automatically terminate in June 2020, but the Company may elect for early termination at any time. To the extent that a qualified financing is completed within one year after the termination date, the Company will remain obligated to pay the success fee.

Embedded Derivatives

The Company’s Credit Facility includes features that were determined to be embedded derivatives requiring bifurcation and accounting as separate financial instruments. The Company determined that the mandatory prepayment and default interest due to non-credit-related events of default derivatives are classified within Level 3 of the fair value hierarchy. Based on the nature of these features, the embedded derivatives had a de minimis initial fair value at inception of the Credit Facility. Embedded derivatives are initially recorded at fair value and are subject to periodic re-measurement as of each balance sheet date.

The fair value of these embedded derivatives was estimated using the “with” and “without” method. Accordingly, the Credit Facility was first valued with the embedded derivatives (the “with” method) and subsequently valued without the embedded derivatives (the “without” method). The fair values of the embedded derivatives were estimated as the difference between these two methods. The fair values were determined using the income approach, specifically the yield method. Key Level 3 assumptions and estimates used in the valuation of the embedded derivatives as of December 31, 2016 include timing of projected principal payments, remaining term to maturity of approximately 3.5 years, probability of default of approximately 34% and a discount rate of 21%. The discount rate is comprised of a risk-free rate of 2% and a credit spread of 19% determined based on option-adjusted spreads from public companies with similar credit quality. The re-measurement of fair value for these embedded derivatives resulted in a liability of $5.4 million as of December 31, 2016, which was also recognized as a loss on embedded derivatives and redeemable warrants, net in the Company’s consolidated statements of operations.

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 5—DEBT   (continued)

Line of Credit

Until June 2016, the Company had a line of credit that provided for total borrowings of $15.0 million, with a $0.3 million sub-limit for the Company’s corporate credit card program. Borrowings under the line of credit provided for interest at the bank’s prime rate plus 0.75%. The interest rate was 4.25% as of December 31, 2015. The line of credit had a lockbox provision whereby customer payments were received in a lockbox controlled by the Lenders. In June 2016, the line of credit balance was paid in full and the related agreement was terminated.

NOTE 6—CAPITAL STRUCTURE

On October 31, 2016, the Company filed Amended and Restated Articles of Incorporation (“Restated Articles”) in connection with the designation and issuance of 56,441,036 shares of Series C Preferred Stock, that resulted in gross proceeds of $10.0 million. The Restated Articles also provide for the issuance of capital stock designated as “Class A Common Stock,” “Class B Common Stock,” “Common Stock” (collectively referred to as “Common Stock Securities”) and preferred stock designated as Series A, Series B and Series C (collectively referred to as “Preferred Stock”).

Common Stock

Voting Rights. The holders of Class A Common Stock, Class B Common Stock and Common Stock shall vote together as one class on all matters submitted to a vote of the stockholders. Each holder of Class B Common Stock is entitled to 15 votes for each share owned. Each holder of Class A Common Stock and Common Stock is entitled to one vote for each share owned. Additionally, as discussed below, each holder of convertible Preferred Stock is entitled to vote on an as converted basis.

Conversion. Each share of Class B Common Stock is convertible into one share of Class A Common Stock at the option of the holder at any time, or automatically into one share of Class A Common Stock at the earliest of:

Date specified by affirmative vote of the holders of at least two-thirds of the outstanding shares of Class B Common Stock, voting as a single class;
Transfer of such share, except permitted transfers as defined;
Immediate conversion upon the death or incapacity of the owner of Class B Common Stock; or
Conversion upon death or incapacity of both of the Company’s co-founders, and when there has been no designated proxy holder.

The shares of Class B Common Stock will convert automatically into Class A Common Stock on the date on which the number of outstanding shares of Class B Common Stock represents less than 10% of the aggregate combined number of outstanding shares of Class A Common Stock and Class B Common Stock. Following the conversion of all outstanding shares of Class B Common Stock into Class A Common Stock, the Class A Common Stock will then automatically convert into a single class designated as Common Stock. Upon conversion, no further shares of Class A Common Stock or Class B Common Stock will be issued. Upon issuance, the shares of Common Stock will have rights identical to Class A Common Stock.

Transfer of Shares. During 2014, a partnership owned 331,928 shares of the Company’s Class B Common Stock. During 2014, the partnership made a distribution of these shares to its partners. Pursuant to the Company’s articles of incorporation, the transferred shares converted into shares of Class A Common Stock.

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 6—CAPITAL STRUCTURE   (continued)

Preferred Stock

Summary. Presented below is a summary by series of the authorized, issued and outstanding shares, the net carrying values, and the liquidation preferences of Preferred Stock as of December 31, 2015 and 2016 (in thousands):

Series of Preferred Stock
Number of Shares (1)
Carrying Value (2)
Liquidation Preference (3)
2015
2016
2015
2016
2015
2016
A
 
5,500
 
 
5,500
 
$
493
 
$
493
 
$
550
 
$
550
 
B
 
38,545
 
 
38,545
 
 
9,142
 
 
9,142
 
 
10,000
 
 
10,000
 
C
 
 
 
56,441
 
 
 
 
9,907
 
 
 
 
10,001
 
Total
 
44,045
 
 
100,486
 
$
9,635
 
$
19,542
 
$
10,550
 
$
20,551
 
(1) Represents the number of shares by series that are authorized, issued and outstanding.
(2) The carrying value for each series of Preferred Stock is net of incremental and direct professional fees and other costs incurred in connection with the original issuance.
(3) In the event of a liquidation, sale, dissolution, change of control, or winding up of the Company, whether voluntary or involuntary, the holders of Preferred Stock are entitled to receive, prior and in preference to the holders of Common Stock Securities, any distribution of the assets of the Company in an amount equal to the sum of (i) the original issuance price of $0.1000 for Series A, $0.2594 for Series B, and $0.1772 for Series C Preferred Stock, and (ii) all declared but unpaid dividends on such share of Preferred Stock (collectively, the “Liquidation Preference”). In the event funds are insufficient to make a complete distribution to all holders of Preferred Stock, the remaining assets will be distributed with equal priority and pro rata among the holders of each series of Preferred Stock so that each holder receives the same percentage of the applicable preferential amount. After full payment of the Liquidation Preference has been made to the holders of Preferred Stock, the remaining assets will be distributed with equal priority and pro rata to the holders of Common Stock Securities based on the number of shares of Common Stock Securities held by each common stockholder.

Conversion, Ownership and Voting Rights. Each share of Preferred Stock is immediately convertible at the option of the holder into shares of Class A or Class B Common Stock. Presented below are the respective conversion prices applicable to each series of Preferred Stock, the number of shares of Class A or Class B Common Stock into which each series of Preferred Stock is convertible, and the respective ownership and voting percentages by series on an as converted basis as of December 31, 2016 (in thousands, except conversion prices and percentages):

 
 
Conversion Rights
As Converted Basis
Series of
Preferred Stock
Liquidation
Preference
Conversion
Price (1)
Number of Shares of Common Stock (2)
Ownership
Percentage (3)
Voting
Power (4)
Class A
Class B
Total
A
$
550
 
$
0.1000
 
 
 
 
5,500
 
 
5,500
 
 
2.7
%
 
3.7
%
B
 
10,000
 
$
0.2594
 
 
 
 
38,545
 
 
38,545
 
 
19.1
%
 
25.9
%
C
 
10,001
 
$
0.1772
 
 
56,441
 
 
 
 
56,441
 
 
27.9
%
 
2.5
%
Total
$
20,551
 
 
 
 
 
56,441
 
 
44,045
 
 
100,486
 
 
49.7
%
 
32.1
%
(1) The conversion rates for each series of Preferred Stock are initially equal to the original issuance price per share, subject to future adjustment for the effect of any stock split, stock dividend, or similar event. The conversion rates are also subject to anti-dilution adjustments in the event the Company subsequently issues equity securities at an issuance price, or equity-derived securities at a conversion price, below the original issuance price per share of the Preferred Stock. The Series B holders agreed to forego their right to anti-dilution protection upon issuance of the Series C Preferred, although such rights remain in effect for any future issuances. Additionally, if the Company subsequently issues any equity or equity-derived securities, the holders of Series B and Series C Preferred Stock have the right to convert their shares to such securities at any time prior to the earlier of (i) completion of a qualified IPO (defined below), or (ii) October 28, 2018.

Conversion of the Preferred Stock is automatic upon (i) a firm commitment for an underwritten qualified public offering (“Qualified IPO”) of Class A Common Stock at a per share price that reflects an equity valuation for the Company of at least $300.0 million and with gross proceeds from the Qualified IPO of at least $60 million, or (ii) at the election of holders of a majority of the voting power of the outstanding shares of Preferred Stock, voting together as a single class on an as-converted to common stock basis. If the Company completes a Qualified IPO at a price reflecting an equity valuation that is less than $300.0 million, the conversion prices of the Series A and Series B Preferred Stock will be adjusted to an amount derived as if the equity valuation was $300.0 million. The Company has reserved 56,441,036 shares of its Class A Common Stock and 44,045,460 shares of its Class B Common Stock for issuance upon conversion of the Preferred Stock.

(2) Computed by dividing the aggregate liquidation preference by the applicable conversion price applicable to each series of Preferred Stock.

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 6—CAPITAL STRUCTURE   (continued)

(3) Represents the aggregate ownership percentage by series as of December 31, 2016, based on the number of shares of Common Stock Securities into which each series of Preferred Stock is convertible. The holders of the Series B and Series C Preferred Stock are under common control whereby their aggregate ownership is 47.0%.
(4) Represents the aggregate voting power by series as of December 31, 2016, based on the number of shares of Common Stock Securities into which each series of Preferred Stock is convertible. Specifically, (i) the holders of Series A and Series B Preferred Stock are entitled to 15 votes for each share of Class B Common Stock into which their shares of Preferred Stock are convertible, and (ii) the holders of Series C Preferred Stock are entitled to one vote for each share of Class A Common Stock into which their shares of Preferred Stock are convertible. So long as at least 3,750,000 shares of Preferred Stock remain outstanding, the holders of the Series A and Series B Preferred Stock, voting as a single class, are entitled to elect one member to the Company’s board of directors. The holders of the Series B and Series C Preferred Stock are under common control whereby their aggregate voting power is 28.4%.

The holders of Series B and Series C Preferred Stock vote as a single class on an as-converted basis with respect to certain protective provisions, including approval for (i) a merger, acquisition or sale of substantially all assets of the Company, (ii) a voluntary liquidation or dissolution of the Company, (iii) the acquisition or disposal of another business or assets having a value in excess of $0.5 million, (iv) the ability to incur indebtedness in excess of $0.5 million unless the Board of Directors unanimously approves, and (v) the ability to declare or pay dividends on any class of the Company’s capital stock.

Redemption Events. A liquidation or winding up of the Company, a greater than 50% change in control, payment of aggregate dividends in excess of $20.0 million, or a sale of substantially all of its assets would constitute redemption events under the Restated Articles. Upon a redemption event, holders of Preferred Stock are entitled to demand cash settlement of the Liquidation Preference associated with their shares. The owners of Common Stock Securities can elect the majority of the Company’s Board of Directors, which is required to approve all events that might trigger a redemption event. Due to ownership and voting control by the current holders of Common Stock Securities, the ability to avoid events that could trigger redemption of Preferred Stock is solely within the control of the Company.

Beneficial Conversion Feature. At the date of issuance of the Series C Preferred Stock, the fair value of the Company’s Class A Common Stock exceeded the $0.1772 issuance price per share of the Series C Preferred Stock. The fair value of the shares of Class A Common Stock into which the shares of Series C Preferred Stock were immediately convertible had a fair value more than $10.0 million greater than the cash consideration received for the issuance of the Series C Preferred Stock, resulting in the recognition of a beneficial conversion feature that was equal to the aggregate Series C Preferred Stock issuance price of $10.0 million. Accordingly, deemed dividends of $10.0 million are reflected as an adjustment to the net loss attributable to the holders of Class A and Class B Common Stock for purposes of the calculation of earnings per share. Deemed dividends reflecting the beneficial conversion feature are treated as an increase in additional paid-in capital with a corresponding reduction in additional paid-in capital in the accompanying consolidated statement of stockholders’ deficit for the year ended December 31, 2016.

Dividends

The holders of Class A Common Stock, Class B Common Stock and Common Stock shall be treated equally on a per share basis with respect to dividends or distributions paid in cash by the Company. However, if dividends are declared in the form of shares, such distribution of shares shall be based on the class of Common Stock Securities owned at the date such dividend is declared.

The holders of Preferred Stock are entitled to dividends per share at the annual rate of 8.0% of the initial issuance price. The right to receive dividends is not cumulative. Accordingly, dividends are payable when, as, and if declared by the Board of Directors, and subject to the rights of the holders of other classes of capital stock. The Company is not permitted to pay dividends in cash related to Preferred Stock and Common Stock Securities pursuant to the terms of the Credit Facility discussed in Note 5. Notwithstanding current restrictions, dividends are only permitted to be declared and paid if the Company complies with certain financial metrics prescribed in the Restated Articles. If the Board of Directors declares dividends, two-thirds of such dividends are required to be allocated to the holders of Preferred Stock and one-third to the holders of Common Stock Securities. No dividends have been declared through December 31, 2016.

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 7—STOCK OPTIONS AND WARRANTS

Stock Options

In 2007, the Company established the 2007 Stock Plan (the “2007 Plan”), which cumulatively reserved up to 59,537,015 shares of Class B Common Stock, and governs the grant of stock options to employees and directors. The 2007 Plan was terminated in November 2013, however the terms of the 2007 Plan will continue to govern any outstanding awards thereunder.

In October 2013, the Company established the 2013 Equity Incentive Plan (the “2013 Plan”). Initially reserved under the 2013 Plan are up to 8,563,463 shares of Class A Common Stock. In addition, the board of directors and stockholders authorized the reservation of up to 46,996,297 shares of Class A Common Stock under the 2013 Plan to cover any outstanding options issued pursuant to the 2007 Plan, which may be forfeited or expire unexercised. As the 2007 Plan was terminated in November 2013, options that expired or were forfeited under the 2007 Plan thereafter will be available for re-grant under the 2013 Plan as options for Class A Common Stock.

The 2007 Plan and 2013 Plan (collectively referred to as the “Stock Plans”) provide for stock options to be granted to employees and directors at an exercise price not less than 100% of the fair value at the grant date as determined by the Board of Directors. The options granted generally have a maximum term of 10 years from grant date and are exercisable upon vesting. Option grants generally vest as to one-third of the shares subject to the award on each anniversary of the vesting commencement date, which may precede the grant date of such award. The Company had reserved shares of Class A Common Stock under the 2013 Plan for a total of 16,803,459 and 23,240,522 shares (before giving effect for options exercised under the 2013 Plan for 8,329 shares in 2016) as of December 31, 2015 and 2016, respectively. As of December 31, 2015 and 2016, options were outstanding under the 2013 Plan for 9,901,529 and 11,123,362 shares, respectively. As of December 31, 2016, stock options for 42,607,940 shares were outstanding under the 2007 Plan.

The following table sets forth the summary of stock option activity under the Company’s Stock Plans (shares in thousands):

 
2014
2015
2016
 
Shares
Price (1)
Term (2)
Shares
Price (1)
Term (2)
Shares
Price (1)
Term (2)
Outstanding, beginning of year
 
46,883
 
$
0.27
 
 
 
 
 
49,183
 
$
0.37
 
 
 
 
 
52,795
 
$
0.44
 
 
 
 
Granted
 
5,563
 
 
1.20
 
 
 
 
 
4,942
 
 
1.21
 
 
 
 
 
2,386
 
 
1.39
 
 
 
 
Forfeited
 
(2,839
)
 
0.38
 
 
 
 
 
(1,134
)
 
0.78
 
 
 
 
 
(1,305
)
 
1.21
 
 
 
 
Exercised
 
(424
)
 
0.21
 
 
 
 
 
(196
)
 
0.26
 
 
 
 
 
(145
)
 
0.34
 
 
 
 
Outstanding, end of year (3)(4)
 
49,183
 
 
0.37
 
 
6.1
 
 
52,795
 
 
0.44
 
 
5.4
 
 
53,731
 
 
0.46
 
 
4.6
 
Vested, end of year (3)
 
38,010
 
 
0.23
 
 
5.4
 
 
43,493
 
 
0.29
 
 
4.7
 
 
47,491
 
 
0.36
 
 
4.1
 
(1) Represents the weighted average exercise price.
(2) Represents the weighted average remaining contractual term in years until the stock options expire.
(3) As of December 31, 2014, 2015 and 2016, the aggregate intrinsic value of stock options outstanding was $37.3 million, $45.6 million and $28.7 million, respectively. As of December 31, 2014, 2015 and 2016, the aggregate intrinsic value of vested stock options was $33.7 million, $43.9 million and $28.7 million, respectively.
(4) The number of outstanding stock options that are not expected to ultimately vest due to forfeiture is immaterial as of December 31, 2016.

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 7—STOCK OPTIONS AND WARRANTS   (continued)

The following table presents the stock option activity affecting the total number of shares available for grant under the 2013 Plan for the years ended December 31, 2014, 2015 and 2016 (in thousands):

 
2014
2015
2016
Available, beginning of year
 
8,380
 
 
5,656
 
 
6,902
 
Granted
 
(5,563
)
 
(4,942
)
 
(2,386
)
Cancellations under 2007 and 2013 Plans
 
2,839
 
 
1,134
 
 
1,305
 
Newly authorized by Board of Directors
 
 
 
5,054
 
 
6,288
 
Available, end of year
 
5,656
 
 
6,902
 
 
12,109
 

The fair value of each stock option grant under the Stock Plans was estimated on the date of grant using the BSM option-pricing model, with the following weighted-average assumptions for the years ended December 31, 2014, 2015 and 2016 (in thousands):

 
2014
2015
2016
Expected life (in years)
6.0
6.0
6.0
Volatility
49%
40%
37%
Dividend yield
0%
0%
0%
Risk-free interest rate
1.8%
1.6%
1.4%
Fair value per common share
$1.20
$1.21
$1.39

The BSM model requires various highly subjective assumptions that represent management’s best estimates of the fair value of the Company’s common stock, volatility, risk-free interest rates, expected term, and dividend yield. Given the absence of an active market for the Company’s common stock, the Company utilized an independent valuation firm to determine its common stock value generally using the income approach and the market approach valuation methods. The valuation results are reviewed and approved by the Company’s board of directors. The forfeiture rate is based on an analysis of the Company’s actual historical experience.

The expected term represents the weighted-average period that options granted are expected to be outstanding giving consideration to vesting schedules. Since the Company does not have an extended history of actual exercises, the Company has estimated the expected term using a simplified method which calculates the expected term as the average of the time-to-vesting and the contractual life of the awards. The Company has never declared or paid cash dividends and does not plan to pay cash dividends in the foreseeable future; therefore, the Company used an expected dividend yield of zero. The risk-free interest rate is based on U.S. Treasury rates in effect during the expected term of the grant. The expected volatility is based on historical volatility of publicly-traded peer companies.

The intrinsic value of the vested employee options exercised during the years ended December 31, 2014, 2015, and 2016 was $0.4 million, $0.2 million and $0.2 million, respectively. The weighted-average grant date fair value per share of employee options during the years ended December 31, 2014, 2015 and 2016 was $0.57, $0.49 and $0.52, respectively.

Stock-based compensation expense for the years ended December 31, 2014, 2015 and 2016 is classified as follows (in thousands):

 
2014
2015
2016
Cost of revenue
$
375
 
$
319
 
$
286
 
Sales and marketing
 
573
 
 
698
 
 
764
 
General and administrative
 
1,132
 
 
1,255
 
 
1,247
 
Total
$
2,080
 
$
2,272
 
$
2,297
 

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TABLE OF CONTENTS

RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 7—STOCK OPTIONS AND WARRANTS   (continued)

As of December 31, 2014, 2015 and 2016, total unrecognized compensation costs related to unvested stock options were $3.6 million, $3.3 million and $1.9 million, respectively. The remaining unrecognized costs are expected to be recognized on a straight-line basis over a weighted-average period of approximately 1.5 years.

Warrants

A summary of the terms of outstanding stock purchase warrants and the number of shares of Class A Common Stock issuable upon exercise is presented below as of December 31, 2015 and 2016 (in thousands, except per share amounts):

 
Grant
Date
Expiration
Date
Exercise
Price
Number of Shares
Description
2015
2016
Guarantee Warrants
October 2014
October 2019
$
1.16
 
 
345
(1)
 
345
(1)
Redeemable Origination Agent Warrants:
 
 
 
 
 
 
 
 
 
 
 
Original Warrants
June 2016
June 2026 (2)
$
1.35
 
 
 
 
11,075
(3)
Anti-dilution Warrants
October 2016
October 2026 (2)
$
1.35
 
 
 
 
3,035
(3)
Total
 
 
 
 
 
 
345
 
 
14,455
 
(1) In October 2014, the Company issued warrants to certain owners of Series B Preferred Stock, in exchange for a guarantee up to £550,000 to the United Kingdom government for support service agreements to be provided by the Company for approximately three years. As of December 31, 2016, all of the shares pursuant to the warrants are exercisable and no shares have been exercised since the original grant. Since a performance commitment date has not been established, the fair value of the warrants is adjusted periodically until the commitment date occurs. The aggregate fair value through December 31, 2016 amounts to $84,000, which was amortized as a component of sales and marketing expense over the guarantee period. Accordingly, the Company recognized expenses of approximately $8,000, $59,000 and $(7,000), respectively, for the years ended December 31, 2014, 2015 and 2016. The unamortized expense as of December 31, 2016 is approximately $24,000, which is expected to be amortized to sales and marketing expense during the year ending December 31, 2017.
(2) The expiration date is the earlier to occur of the stated expiration date or the date when the Company experiences a change of control.
(3) In order to maintain the number of shares equivalent to 5.0% of the Company’s fully-diluted share capital, the number of shares issuable under the original warrant increased in October 2016. The number of shares is subject to further increases if the Company completes additional equity offerings up to $10.0 million.

The Origination Agent warrants are redeemable for cash at the option of the holders at the earliest to occur of (i) termination of the Credit Facility discussed in Note 5, (ii) a change of control, or (ii) 30 days prior to the stated expiration date of the Origination Agent warrants. Since none of these events are probable of occurrence before January 1, 2018, the redemption value of the warrants is classified as a long-term liability in the accompanying consolidated balance sheet as of December 31, 2016. The redemption price is equal to the fair value of the Origination Agent warrants on the date that redemption is elected. Presented below is a summary of the accounting treatment for the original issuance of warrants to the Origination Agent, the subsequent adjustments due to anti-dilution features, and other changes in fair value for the year ended December 31, 2016 (in thousands except per share amounts):

Redeemable Origination
Agent Warrants
Exercise
Price
Number of
Shares
Valuation of Warrants Issued (1)
Year-End
Changes in
Fair Value (1)
Liability
December 31,
2016
Original
Anti-dilution
Original Warrants
$
1.35
 
 
11,075
 
$
8,847
(2)
$
 
$
(3,142
) (4)
$
5,705
 
Anti-dilution Warrants
$
1.35
 
 
3,035
 
 
 
 
1,484
(3)
 
80
(4)
 
1,564
 
Total
 
 
 
 
14,110
 
$
8,847
 
$
1,484
 
$
(3,062
)
$
7,269
 
(1) The Redeemable warrants are classified within Level 3 of the fair value hierarchy. Valuation of the warrants was performed by an independent valuation specialist at the original issuance dates and as of December 31, 2016. The valuation methodology was performed through a hybrid model using Monte Carlo simulation, which considered possible future equity financing and liquidity scenarios, including an initial public offering, a sale of the business, and a liquidation of the Company. The valuation methodology for the redeemable warrants was performed through a hybrid model using Monte Carlo simulation, which considered possible future equity financing and liquidity scenarios, including an initial public offering, a sale of the business, and a liquidation of the Company. Key Level 3 assumptions inherent in the valuation methodology during 2016 include projected revenue multiples ranging from 1.7 to 2.0, volatility ranging from 44% to 65%, the risk-free interest rate ranging from 0.5% to 1.4%, a discount rate for lack of marketability ranging from 26% to 31%, and the overall discount rate of approximately 25%.

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NOTE 7—STOCK OPTIONS AND WARRANTS   (continued)

(2) As discussed in Note 5, the original fair value of the warrants to purchase 11,075,027 shares of the Company’s Class A Common Stock was $8.8 million which is being accounted for as a debt issuance cost.
(3) As discussed in Note 6, the issuance of 56,441,036 shares of Series C Preferred Stock for $0.1772 per share increased the Company’s fully diluted share capital. Accordingly, an additional warrant was issued to the Origination Agent for 3,035,232 shares of the Company’s Class A Common Stock with an estimated fair value of $1.5 million, which is included in the loss on embedded derivatives and redeemable warrants, net in the accompanying consolidated statement of operations for the year ended December 31, 2016.
(4) The adjustment to fair value of both warrants from the respective issuance dates through December 31, 2016 was a gain of $3.1 million, which is included in the loss on embedded derivatives and redeemable warrants, net for the year ended December 31, 2016.

NOTE 8—INCOME TAXES

For the years ended December 31, 2014, 2015 and 2016, income (loss) before income tax expense is as follows (in thousands):

 
2014
2015
2016
Domestic
$
(127,909
)
$
(46,683
)
$
(14,644
)
International
 
1,062
 
 
2,865
 
 
3,239
 
 
$
(126,847
)
$
(43,818
)
$
(11,405
)

For the years ended December 31, 2014, 2015 and 2016, the reconciliation between the actual income tax expense and the income tax benefit computed by applying the statutory U.S. federal income tax rate to the pre-tax loss before income taxes is as follows (in thousands):

 
2014
2015
2016
Income tax benefit at statutory U.S. federal rate
$
42,940
 
$
14,898
 
$
3,877
 
Income tax benefit attributable to U.S. states, net
 
4,673
 
 
1,502
 
 
380
 
Permanent differences:
 
 
 
 
 
 
 
 
 
Non-deductible expenses
 
(161
)
 
(225
)
 
(301
)
Stock-based compensation
 
(302
)
 
(284
)
 
(299
)
Royalty from Brazil
 
(108
)
 
(94
)
 
(169
)
Other
 
(3
)
 
(16
)
 
(87
)
Foreign rate differential and foreign tax credits
 
(319
)
 
(328
)
 
(211
)
Other
 
743
 
 
(1,446
)
 
1,421
 
Change in valuation allowance
 
(48,444
)
 
(15,458
)
 
(6,143
)
Total income tax expense
$
(981
)
$
(1,451
)
$
(1,532
)

For the years ended December 31, 2014, 2015 and 2016, income tax benefit (expense) consisted of the following (in thousands):

 
2014
2015
2016
Current:
 
 
 
 
 
 
 
 
 
Federal
$
 
$
 
$
 
State
 
(38
)
 
(62
)
 
(98
)
Foreign
 
(925
)
 
(1,444
)
 
(1,954
)
Total current income tax expense
 
(963
)
 
(1,506
)
 
(2,052
)
Deferred:
 
 
 
 
 
 
 
 
 
Federal
 
 
 
 
 
 
State
 
 
 
 
 
 
Foreign
 
(18
)
 
55
 
 
520
 
Total deferred income tax benefit (expense)
 
(18
)
 
55
 
 
520
 
Total income tax expense
$
(981
)
$
(1,451
)
$
(1,532
)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 8—INCOME TAXES   (continued)

As of December 31, 2015 and 2016, the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows (in thousands):

 
2015
2016
Deferred income tax assets:
 
 
 
 
 
 
Accounts receivable, net
$
43
 
$
13
 
Property and equipment, net
 
114
 
 
18
 
Capitalized software and intangibles
 
37
 
 
16
 
Accounts payable and accrued expenses
 
7,415
 
 
6,776
 
Accrued litigation settlement
 
45,480
 
 
 
Deferred revenue
 
5,263
 
 
6,030
 
Deferred rent and other
 
402
 
 
620
 
Redeemable warrant and embedded derivative liabilities
 
 
 
4,796
 
Foreign deferreds
 
84
 
 
1,706
 
Stock-based compensation
 
1,213
 
 
1,793
 
Capital loss carryforwards
 
2,029
 
 
2,051
 
Tax credit carryforwards
 
296
 
 
418
 
Net operating loss carryforwards
 
22,466
 
 
73,027
 
Gross deferred income tax assets
 
84,842
 
 
97,264
 
Valuation allowance for deferred income tax assets
 
(84,758
)
 
(90,902
)
Net deferred income tax assets
 
84
 
 
6,362
 
Deferred income tax liabilities:
 
 
 
 
 
 
Debt financing interest and fees
 
 
 
(5,759
)
Deferred income tax liability - foreign
 
(9
)
 
(8
)
Net deferred tax assets
$
75
 
$
595
 

Net deferred tax assets are included in long-term assets in the accompanying consolidated balance sheets. For the years ended December 31, 2015 and 2016 the net change in the valuation allowance was $15.5 million and $6.1 million, respectively. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Because of the Company’s lack of domestic earnings history, the domestic net deferred tax assets have been fully offset by a valuation allowance. The foreign deferred tax assets are expected to be realized in the future.

At December 31, 2016, the Company has federal net operating tax loss carryforwards of approximately $193.4 million that begin to expire in 2026. At December 31, 2016, the Company has federal foreign tax credits carryforwards of $0.4 million expiring beginning in 2021. Additionally, the Company has varying amounts of net operating loss carryforwards in the U.S. states in which it does business.

Federal and state laws impose substantial restrictions on the utilization of net operating loss and tax credit carryforwards in the event of an ownership change for tax purposes, as defined in Section 382 of the Internal Revenue Code. Depending on the significance of past and future ownership changes, the Company’s ability to realize the potential future benefit of tax losses and tax credits that existed at the time of the ownership change may be significantly reduced. The Company has not yet performed a Section 382 study to determine the amount of reduction, if any.

The Company has made no provision for U.S. income taxes on undistributed earnings of its foreign subsidiaries because it is the Company’s intention to permanently reinvest these earnings outside the U.S. If such earnings were

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 8—INCOME TAXES   (continued)

distributed, the Company may be subject to additional U.S. tax expense. As of December 31, 2016, the cumulative amount of earnings upon which U.S. income taxes had not been provided was approximately $7.0 million. The unrecognized deferred tax liability for these earnings was approximately $0.5 million.

The Company files income tax returns in the U.S. federal jurisdictions, State of California and various other state and foreign jurisdictions. The Company’s federal and state tax years for 2006 and forward are subject to examination by taxing authorities, due to unutilized net operating losses. All foreign jurisdictions tax years are also subject to examination. The Company does not have any unrecognized tax benefits to date.

NOTE 9—COMMITMENTS AND CONTINGENCIES

Operating leases

The Company leases its office facilities under non-cancellable operating lease agreements that expire from March 2017 to January 2023. The Company recognizes rent expense on a straight-line basis over the lease period. Rent expense for the years ended December 31, 2014, 2015 and 2016 was $2.2 million, $3.1 million and $4.2 million, respectively.

Future minimum lease payments under the non-cancellable operating lease agreements are as follows (in thousands):

Year Ending December 31,
 
2017
$
4,198
 
2018
 
3,899
 
2019
 
3,350
 
2020
 
3,001
 
2021
 
2,883
 
Thereafter
 
2,075
 
Total
$
19,406
 

Capital leases

The Company has entered into various capital lease agreements for certain computer equipment. The lease terms are 36 months with annual interest rates of 4% to 12%. As of December 31, 2016, the future annual minimum lease payments under capital lease obligations are as follows (in thousands):

Year ending December 31 ,
 
2017
$
893
 
2018
 
460
 
2019
 
87
 
Total minimum lease payments
 
1,440
 
Less amounts representing interest
 
125
 
Present value of minimum lease payments
 
1,315
 
Less current portion, included in accrued expenses
 
802
 
Long term obligation, included in other long-term liabilities
$
513
 

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 9—COMMITMENTS AND CONTINGENCIES   (continued)

As of December 31, 2015 and 2016, the carrying values of leased equipment (included as a component of property and equipment) in the consolidated balance sheets, are as follows (in thousands):

 
2015
2016
Leased computer equipment
$
1,479
 
$
2,487
 
Less accumulated depreciation
 
(379
)
 
(946
)
Net
$
1,100
 
$
1,541
 

Retirement Plan

The Company has a qualified 401(k) plan for all eligible U.S. employees. Employees may contribute up to the statutory maximum, which is set by law each year. The plan also provides for discretionary employer contributions in an amount equal to 100% of each employee’s contribution, not to exceed 4% of eligible compensation. The Company’s matching contribution to the plan totaled $0.7 million, $1.1 million and $1.4 million for the years ended December 31, 2014, 2015 and 2016, respectively.

Litigation

Oracle Litigation. In January 2010, certain subsidiaries of Oracle Corporation (together with its subsidiaries individually and collectively, “Oracle”) filed a lawsuit, Oracle USA, Inc. et al. v. Rimini Street, Inc. et al. (United States District Court for the District of Nevada) (“Rimini I”), against the Company and its Chief Executive Officer, Seth Ravin, alleging that certain of the Company’s processes violated Oracle’s license agreements with its customers and that the Company committed acts of copyright infringement and violated other federal and state laws. The litigation involved the Company’s business processes and the manner in which the Company provided its services to its clients. To provide software support and maintenance services, the Company requests access to a separate environment for developing and testing the updates to the software programs. Prior to July 2014, PeopleSoft, J.D. Edwards and Siebel clients switching from Oracle to the Company’s enterprise software support systems were given a choice of two models for hosting the development and testing environment for their software: the environment could be hosted on the client’s servers or on the Company’s servers. In addition to other allegations, Oracle challenged the Rimini Street-hosted model for certain Oracle license agreements with its customers that contained site-based restrictions. Oracle alleged that its license agreements with its customers restrict licensees’ rights to provide third parties with copies of Oracle software and restrict where a licensee physically may install the software. Oracle alleged that, in the course of providing services, the Company violated such license agreements and illegally downloaded software and support materials without authorization. Oracle further alleged that the Company impaired its computer systems in the course of downloading materials for the Company’s clients. Oracle filed amended complaints (together, the “amended complaint”) in April 2010 and June 2011. Specifically, Oracle’s amended complaint asserted the following causes of action: copyright infringement; violations of the Federal Computer Fraud and Abuse Act; violations of the Computer Data Access and Fraud Act; violations of Nevada Revised Statute 205.4765; breach of contract; inducing breach of contract; intentional interference with prospective economic advantage; unfair competition; trespass to chattels; unjust enrichment/restitution; unfair practices; and a demand for an accounting. Oracle’s amended complaint sought the entry of a preliminary and permanent injunction prohibiting the Company from copying, distributing, using, or creating derivative works based on Oracle Software and Support Materials except as allowed by express license from Oracle; as from using any software tool to access Oracle Software and Support Materials; and from engaging in other actions alleged to infringe Oracle’s copyrights or were related to its other causes of action. The parties conducted extensive fact and expert discovery from 2010 through mid-2012.

In March and September 2012, Oracle filed two motions seeking partial summary judgment as to, among other things, its claim of infringement of certain copyrighted works owned by Oracle. In February 2014, the court issued a ruling on Oracle’s March 2012 motion for partial summary judgment (i) granting summary judgment on Oracle’s claim of copyright infringement as it related to two of the Company’s PeopleSoft clients and (ii) denying summary judgment on Oracle’s claim with respect to one of the Company’s J.D. Edwards clients and one of the Company’s

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 9—COMMITMENTS AND CONTINGENCIES   (continued)

Siebel clients. The parties stipulated that the licenses among clients were substantially similar. In August 2014, the court issued a ruling on Oracle’s September 2012 motion for partial summary judgment (i) granting summary judgment of Oracle’s claim of copyright infringement as it relates to Oracle Database and (ii) dismissing the Company’s first counterclaim for defamation, business disparagement and trade libel and the Company’s third counterclaim for unfair competition. The Company believes it is in compliance with the court’s decisions not later than July 2014 when it revised its business practices to eliminate the processes determined to be infringing.

A jury trial in Rimini I commenced in September 2015. On October 13, 2015, the jury returned a verdict against the Company that (i) the Company was liable for innocent copyright infringement, (ii) the Company and Mr. Ravin were each liable for violating certain state computer access statutes and (iii) neither we nor Mr. Ravin were liable for inducing breach of contract or intentional interference with prospective economic advantage. The jury determined that the copyright infringement did not cause Oracle to suffer lost profits, that the copyright infringement was not willful, and did not award punitive damages. Following post-trial motions, Oracle was awarded a final judgment of $124.4 million, consisting of copyright infringement damages based on the fair market value license damages theory, damages for violation of certain state computer access statutes, prejudgment interest and attorneys’ fees and costs. In addition, the court entered a permanent injunction prohibiting the Company from using certain processes − including processes adjudicated as infringing at trial − that the Company ceased using no later than July 2014. The Company paid the full judgment amount of $124.4 million to Oracle on October 31, 2016 and has appealed the case to the United States Court of Appeals for the Ninth Circuit (“Court of Appeals”) to appeal each of the above items in the final judgment as well as the injunction. With regard to the injunction entered by the court, the Company has argued on appeal that the injunction is vague and contains overly broad language that could be read to cover some of the Company’s current business practices that were not adjudicated to be infringing at trial and should not have been issued under applicable law. On December 6, 2016, the Court of Appeals granted the Company’s emergency motion for a stay of the permanent injunction pending resolution of the underlying appeal and agreed to consider the appeal on an expedited basis. Oral argument before the Court of Appeals is scheduled for July 13, 2017. The Company expects a decision from the Court of Appeals on its appeal by early 2018, although a decision could be announced sooner or later.

The Company accounted for the $124.4 million award to Oracle by recording accrued legal settlement expense of (i) $100.0 million for the year ended December 31, 2014, (ii) $21.4 million for the year ended December 31, 2015, and (iii) pre-judgment interest of $3.0 million for the period from January l, 2016 through October 31, 2016. Prior to issuance of the 2014 financial statements, the Company made an offer to Oracle for $100.0 million to settle the litigation and recorded the $100.0 million as a liability as of December 31, 2014 because it was considered probable that a contingent liability had been incurred for the amount of the offer. As a result, the Company accrued a legal settlement expense of $100.0 million as of December 31, 2014 as stated above. On October 31, 2016, the Company paid the full judgement amount of $124.4 million to Oracle.

The Company had insurance coverage in place for reasonable defense costs related to the Oracle litigation. In October 2016, the Company received insurance indemnity payments for the judgment totaling $41.7 million as settlement from its insurers without any admission by the insurers of liability. Since the insurance indemnity settlement represents a gain contingency, it has been recorded as a reduction in litigation settlement expense for the year ended December 31, 2016. As of the issuance date of the consolidated financial statements for the year ended December 31, 2016, the Circuit Court had not ruled on the Company’s appeal. An award, if any, that is paid to the Company as a result of the appeal net of any insurance reimbursement will be reflected as a reduction of litigation settlement expense in the period received, since the appeal is also being accounted for as a gain contingency.

In October 2014, the Company filed a separate lawsuit, Rimini Street Inc. v. Oracle Int’l Corp. (United States District Court for the District of Nevada) (“Rimini II”), against Oracle seeking declaratory judgment that the Company’s revised development processes, in use since at least July 2014, do not infringe certain Oracle copyrights. In February 2015, Oracle filed a counterclaim alleging copyright infringement, which included (i) the same allegations asserted in Rimini I but limited to new or existing clients for whom the Company provided support from the conclusion of Rimini I discovery in December 2011 until the revised support processes were fully implemented by July 2014, and (ii) new allegations that the Company’s revised support processes also infringe Oracle copyrights.

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NOTE 9—COMMITMENTS AND CONTINGENCIES   (continued)

Oracle’s counterclaim also included allegations of violation of the Lanham Act, intentional interference with prospective economic advantage, breach of contract and inducing breach of contract, unfair competition, and unjust enrichment/restitution. It also sought an accounting. On February 28, 2016, Oracle filed amended counterclaims adding allegations of violation of the Digital Millennium Copyright Act. On December 19, 2016, the Company filed an amended complaint against Oracle asking for a declaratory judgment of non-infringement of copyright and alleging intentional interference with contract, intentional interference with prospective economic advantage, violation of the Nevada Deceptive Trade Practices Act, violation of the Lanham Act, and violation of California Business & Professions Code §17200 et seq. On January 17, 2017, Oracle filed a motion to dismiss the Company’s amended claims and filed its third amended counterclaims, adding three new claims for a declaratory judgment of no intentional interference with contractual relations, no intentional interference with prospective economic advantage, and no violation of California Business & Professions Code §17200 et seq. On February 14, 2017, the Company filed its answer and motion to dismiss Oracle’s third amended counterclaim, which has been fully briefed and is pending consideration by the court. On March 7, 2017, Oracle filed a motion to strike the Company’s copyright misuse affirmative defense which is briefed and pending consideration by the court. By stipulation of the parties, the court granted the Company’s motion to file its third amended complaint to add claims arising from Oracle’s purported revocation of access by the Company to its support websites on behalf of the Company’s clients, which was filed and served on May 2, 2017. By agreement of the parties, Oracle filed its motion to dismiss the Company’s third amended complaint on May 30, 2017, and the Company’s opposition is due on June 27, 2017, and any reply by Oracle is due on July 11, 2017.

Discovery with respect to the above action is expected to continue through at least July 2018. There is currently no trial date scheduled and the Company does not expect a trial to occur in this matter earlier than 2020, but the trial could occur earlier or later than that. Given that discovery is ongoing, the Company does not have sufficient information regarding possible damages exposure for the counterclaims asserted by Oracle or possible recovery by the Company in connection with its claims against Oracle. Both parties are seeking injunctive relief in addition to monetary damages in this matter. As a result, an estimate of the range of loss cannot be determined. The Company believes that an award for damages is not probable, so no accrual has been made as of December 31, 2016.

Other Litigation. In addition, from time to time, the Company may be a party to litigation and subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not have a material adverse effect on its business. Regardless of the outcome, litigation can have an adverse impact on the Company because of judgment, defense and settlement costs, diversion of management resources and other factors.

Guarantees

The Company enters into agreements with customers that contain provisions related to liquidated damages that would be triggered in the event that the Company is no longer able to provide services to these customers. The maximum cash payments related to these liquidated damages is approximately $15.3 million and $11.3 million as of December 31, 2015 and 2016, respectively. To date, the Company has not incurred any material costs as a result of such provisions and have not accrued any liabilities related to such provisions in the consolidated financial statements.

NOTE 10—RELATED PARTY TRANSACTIONS

For the years ended December 31, 2015 and 2016, the Company paid $301,000 and $28,000, respectively to The Living Pages, Inc. for the provision of certain consulting, advertising and marketing services, where the Company’s Chief Executive Officer is a member of the board of directors and minority shareholder.

For the year ended December 31, 2015, the Company paid $180,000 to a minority stockholder of the Company, for certain consulting services. This arrangement terminated in August 2015 when the minority stockholder was hired to serve as the Company’s interim Chief Financial Officer. This individual resigned as an officer and employee of the Company in December 2016.

As discussed in Note 6, in October 2016, the Company issued 56,441,036 shares of Series C Preferred Stock in exchange for a cash contribution of $10.0 million. The purchasers of the Series C Preferred Stock are under

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NOTE 10—RELATED PARTY TRANSACTIONS   (continued)

common control with the stockholders that own 38,545,560 shares of Series B Preferred Stock. On an as converted basis, the affiliates that own the Company’s Series B and Series C Preferred Stock have an ownership percentage of 47.0% and have voting power of 28.4%. Additionally, this preferred stockholder has a $10.0 million indirect interest in the amended Credit Facility discussed in Note 5, and provided a guarantee in exchange for warrants as discussed in Note 7.

NOTE 11—EARNINGS PER SHARE

The Company computes earnings per share (“EPS”) of Class A and Class B common stock using the two-class method required for participating securities. Basic and diluted EPS was the same for each period presented as the inclusion of all potential Class A and Class B common shares outstanding would have been anti-dilutive. Basic and diluted EPS are the same for each class of common stock because they are entitled to the same liquidation and dividend rights. The following table sets forth the computation of basic and diluted loss per Class A and Class B common share (in thousands, except per share amounts):

 
2014
2015
2016
 
Class A
Class B
Total
Class A
Class B
Total
Class A
Class B
Total
Numerator- net loss attributable to common shareholders
$
(192
)
$
(127,636
)
$
(127,828
)
$
(148
)
$
(45,121
)
$
(45,269
)
$
(76
)
$
(22,861
)
$
(22,937
)
Denominator- weighted average number of common shares outstanding
 
151
 
 
100,779
 
 
100,930
 
 
332
 
 
100,842
 
 
101,174
 
 
335
 
 
101,006
 
 
101,341
 
Basic and diluted net loss per common share
$
(1.27
)
$
(1.27
)
$
(1.27
)
$
(0.45
)
$
(0.45
)
$
(0.45
)
$
(0.23
)
$
(0.23
)
$
(0.23
)

For the years ended December 31, 2014, 2015 and 2016, the following potential common stock equivalents were excluded from the computation of diluted earnings per share since the impact of inclusion was anti-dilutive (in thousands):

 
2014
2015
2016
Convertible preferred stock
 
44,045
 
 
44,045
 
 
100,486
 
Options
 
49,183
 
 
52,795
 
 
53,731
 
Warrants
 
345
 
 
345
 
 
14,455
 
Total
 
93,573
 
 
97,185
 
 
168,672
 

NOTE 12—SUBSEQUENT EVENTS

Settlement Agreement

In March 2017, the Company entered into a Settlement Agreement, Release and Policy Buyback Agreement (“Settlement Agreement”) with an insurance company that previously provided coverage for the defense costs related to the Rimini II litigation discussed in Note 9. The Settlement Agreement provided for aggregate payments to the Company of $24.0 million and resulted in the termination of coverage under the insurance policies. During 2016 and 2017, the insurance company reimbursed $4.7 million of defense costs, and pursuant to the settlement agreed to make an additional payment to the Company of $19.3 million that was received in April 2017. After payment of $0.6 million of settlement expenses, the remaining $18.7 million was used to make a mandatory $14.1 million principal payment and a $4.6 million make-whole interest payment due to the Lenders pursuant to the terms of the Credit Facility discussed in Note 5.

The Settlement Agreement provides that the Company received proceeds of $19.3 million in advance of incurring legal defense costs related to Rimini II. The Settlement Agreement is expected to be accounted for by recognizing a receivable and deferred liability for the proceeds of $19.3 million at the date the Settlement Agreement was executed. This deferred liability will be reduced as legal expenses are incurred in the future.

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NOTE 12—SUBSEQUENT EVENTS   (continued)

Amendments to the Credit Facility

In May 2017, the Company and the Lenders entered into the Third Amendment to the Credit Facility discussed in Note 5, which includes the following provisions:

The deadlines to deliver audited financial statements and to consummate equity issuances resulting in net proceeds of at least $35.0 million were both extended until August 31, 2017. Fifty percent of the net cash proceeds received are required to be applied as a mandatory prepayment as defined in the Credit Facility. Assuming the minimum net proceeds of $35.0 million, a principal payment of $13.7 million and a make-whole interest payment of $3.8 million would be required. The make-whole interest payment will be charged to interest expense in the period of the related principal payment.
The Company agreed to make a principal payment of $6.5 million, including satisfying the 75% of Excess Cash Flow payment of $4.0 million for the first quarter of 2017 and an additional principal payment of $2.5 million. These amounts were paid in May 2017.
Contractual principal amortization payments for April and May 2017 were increased by an aggregate of $2.5 million, with one-half paid in May 2017 and the other one-half paid in June 2017.
The Lenders amended the terms of the Credit Facility which eliminated non-compliance with certain budgetary covenants prior to the effective date of the Third Amendment, and Certain budgetary compliance covenants were amended to be generally less restrictive after the effective date of the Third Amendment. Additionally, the Lenders did not charge Default Interest during the period that the events of default existed.

In May 2017, the Company and the Lenders entered into a Fourth Amendment to the Credit Facility, whereby the covenants related to costs that may be incurred for an initial public offering were revised. In June 2017, the Company and the Lenders entered into a fifth amendment (the “Fifth Amendment”) to the Credit Facility whereby the deadline was extended from August 31, 2017 until November 30, 2018 to consummate equity issuances for a minimum of $35.0 million, as discussed above. Additionally, certain financial covenants were revised. In connection with the Fifth Amendment, the Company incurred an amendment fee equal to 1.0% of the $125.0 million commitment under the Credit Facility, and agreed to pay certain “target date” fees if (i) the filing date for the Form S-4 registration statement discussed below occurs after June 30, 2017, and (ii) the consummation of the merger discussed below occurs after August 31, 2017. If these target dates are not achieved, additional fees of 1.0% of the $125.0 million commitment will be required as of the designated target date and will continue to be incurred for each subsequent calendar month that the delays continue. The amendment fee is payable in cash upon the earlier of receipt of the equity issuance proceeds discussed above or March 31, 2018. The target date fees are payable in cash upon the earlier of (i) receipt of the equity issuance proceeds discussed above, (ii) the maturity date, and (iii) the termination date of the Credit Facility.

Merger Agreement

On May 16, 2017, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with GP Investments Acquisition Corp. (“GPIA”), a publicly-held special purpose acquisition company (“SPAC”) incorporated in the Cayman Islands and formed for the purpose of effecting a business combination with one or more businesses. The Merger Agreement provides that a wholly owned subsidiary of GPIA will merge with and into the Company, after which the Company will merge with and into GPIA, with GPIA as the surviving corporation of the merger. In connection with the merger, GPIA will domesticate as a Delaware corporation, and will change its name to “Rimini Street, Inc.”. Key terms of the Merger Agreement include, but are not limited to, the following:

The aggregate purchase price for the Company is $775.0 million, which amount will be reduced by, among other things, the aggregate amount of certain debt obligations of the Company as set forth in the Merger Agreement. The Merger Consideration is expected to be settled by issuing shares of GPIA common stock based on a per share issue price of $10.00 per share and an exchange ratio of approximately four shares of the Company’s Capital Stock on an as converted basis for each share of GPIA (the “Exchange Ratio”).

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RIMINI STREET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (continued)

NOTE 12—SUBSEQUENT EVENTS   (continued)

In order to obtain the Lender’s consent to the Merger Agreement, a minimum of $30.0 million of net proceeds from GPIA, along with $5.0 million of the Company’s cash is required to be utilized to pay down the Credit Facility at the closing of the transaction. The required payment will consist of principal of approximately $27.7 million and a required make-whole interest payment for approximately $7.3 million.
Each issued and outstanding share of the Company’s Class A and Class B Common Stock, and each issued and outstanding share of each series of Preferred Stock on an as-converted basis (collectively, “Capital Stock”), will automatically be cancelled and converted into the right to receive the applicable portion of the Merger Consideration in accordance with the Merger Agreement.
Outstanding options to purchase shares of the Company’s Capital Stock granted under the Company’s 2007 Plan and 2013 Plan will be converted into stock options for ordinary shares of GPIA upon the same terms and conditions as are in effect with respect to such options immediately prior to the merger, after giving effect to the Exchange Ratio.
Subject to consummation of the Merger Agreement, the Origination Agent warrants discussed in Notes 5 and 7 were modified to provide for the issuance of an additional 260,000 warrants exercisable at $1.35 per share, resulting in an aggregate of 14.4 million warrants exercisable by the Origination Agent. The Origination Agent agreed that upon consummation of the Merger Agreement such warrants will be converted into warrants for shares of GPIA, with the number of shares and exercise price adjusted for the Exchange Ratio. Additionally, further adjustments pursuant to the anti-dilution provisions discussed in Note 5 and the cash redemption feature discussed in Note 7 will be eliminated.
The Merger Agreement is subject to effectiveness of a registration statement on Form S-4 registering the shares of common stock to be issued to the Company’s stockholders, whereby approvals by the shareholders of the Company and GPIA are required. As discussed above, GPIA’s shareholders have the opportunity to redeem their ordinary shares for cash, and the Company’s stockholders have the right to demand appraisal rights.
Certain of the Company’s stockholders have entered into transaction support and voting agreements with GPIA, pursuant to which, among other things, such stockholders have agreed to vote their shares of Capital Stock in favor of adoption of the Merger Agreement. Additionally, certain of the Company’s stockholders have agreed to certain restrictions regarding the future transfer of the ordinary shares of GPIA to be received in connection with the Merger Agreement.
If the Merger Agreement is approved, the Company will have the right to appoint seven of the nine members of the Board of Directors, and the current shareholders of the Company are expected to own at least 75% of the outstanding shares of GPIA. Accordingly, the Company expects this merger will be accounted for as a reverse recapitalization, whereby the Company will be the acquirer for accounting and financial reporting purposes and GPIA will be the legal acquirer. Under a reverse recapitalization, the shares of GPIA remaining after redemptions, and the unrestricted net cash and cash equivalents on the date the merger is consummated will be accounted for as a capital infusion received by the Company. All of the transaction costs incurred by the Company related to the merger will be charged to additional paid-in capital upon consummation of the merger.

In certain circumstances, including if the Merger Agreement has not been consummated by August 31, 2017 (subject to extension until November 17, 2017), either party may elect to terminate the Merger Agreement.

Stock Options

On June 29, 2017, the Company granted stock options for approximately 6.6 million shares of Class A Common Stock with an exercise price of $1.80 per share to employees and members of the Company’s Board of Directors under the 2013 Equity Incentive Plan.

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ANNEXES

Agreement and Plan of Merger, dated as of May 16, 2017, by and among GP Investments Acquisition Corp., Let’s Go Acquisition Corp., Rimini Street, Inc., and the initial Holder Representative
   
 
Amendment No. 1 dated June 30, 2017, to the Agreement and Plan of Merger, dated as of May 16, 2017, by and among GP Investments Acquisition Corp., Let’s Go Acquisition Corp., Rimini Street, Inc., and the initial Holder Representative
   
 
Amended and Restated Memorandum and Articles of Association of GP Investments Acquisition Corp., a Cayman Islands exempted company
   
 
Form of Certificate of Incorporation of GP Investments Acquisition Corp., a Delaware corporation (to be effective upon the domestication), such corporation to be renamed Rimini Street, Inc. immediately after consummation of the second merger
   
 
Form of Bylaws of GP Investments Acquisition Corp., a Delaware corporation (to be effective upon the domestication), such corporation to be renamed Rimini Street, Inc. immediately after consummation of the second merger
   
 
Form of Certificate of Domestication of GP Investments Acquisition Corp. to be filed with the Secretary of State of the State of Delaware (to be effective upon the domestication)
   
 
Form of Proxy Card for GP Investments Acquisition Corp. Extraordinary General Meeting of Shareholders (Pre-domestication)
   
 
Form of Proxy Card for Rimini Street, Inc. Special Meeting of Shareholders (Pre-domestication)
   
 
Rights of Dissenting Stockholder
   
 
Form of Notice of Stockholder’s Intent to Demand Payment
   
 
Form of Audit Committee Charter
   
 
Form of Compensation Committee Charter
   
 
Form of Nominating and Corporate Governance Committee Charter

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ANNEX A

AGREEMENT AND PLAN OF MERGER

by and among

GP INVESTMENTS ACQUISITION CORP.,

LET’S GO ACQUISITION CORP.,

RIMINI STREET, INC.,

and

solely in his capacity as the initial
Holder Representative hereunder,

THE HOLDER REPRESENTATIVE NAMED HEREIN,

dated as of May 16, 2017

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Page
 
 
 
 
 
 
 
Article I
 
 
 
 
 
 
 
CERTAIN DEFINITIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Article II
 
 
 
 
 
THE MERGERS; CLOSING
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Article III
 
 
 
 
 
EFFECTS OF THE MERGERS ON THE CAPITAL STOCK AND EQUITY AWARDS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Article IV
 
 
 
 
 
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Article V
 
 
 
 
 
REPRESENTATIONS AND WARRANTIES OF ACQUIROR AND MERGER SUB
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Article VI
 
 
 
 
 
COVENANTS OF THE COMPANY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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Page
Article VII
 
 
 
 
 
COVENANTS OF ACQUIROR
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Article VIII
 
 
 
 
 
JOINT COVENANTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Article IX
 
 
 
 
 
CONDITIONS TO OBLIGATIONS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Article X
 
 
 
 
 
TERMINATION/EFFECTIVENESS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Article XI
 
 
 
 
 
HOLDER REPRESENTATIVE; GPIAC-DESIGNATED DIRECTORS
 
 
 
 
 
 
 
 
 

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Page
Article XII
 
 
 
 
 
INDEMNIFICATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Article XIII
 
 
 
 
 
MISCELLANEOUS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exhibits
 
 
 
 
 
 
 
 
 
Exhibit A
Form of Transaction Support and Voting Agreement
 
 
 
Exhibit B
Form of Certificate of Incorporation of Acquiror upon Domestication
 
 
 
Exhibit C
Form of Bylaws of Acquiror upon Domestication
 
 
 

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AGREEMENT AND PLAN OF MERGER

This Agreement and Plan of Merger, dated as of May 16, 2017 (this “ Agreement ”), is made and entered into by and among GP Investments Acquisition Corp., a Cayman Islands exempted company limited by shares (which shall domesticate as a Delaware corporation prior to the Closing (as defined below)) (“ Acquiror ”), Let’s Go Acquisition Corp., a Delaware corporation and a direct wholly owned subsidiary of Acquiror (“ Merger Sub ”), Rimini Street, Inc., a Nevada corporation (the “ Company ”), and, solely in its capacity as the initial Holder Representative hereunder, Robin Murray.

RECITALS

WHEREAS , Acquiror is a blank check company incorporated as a Cayman Islands exempted company and formed for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses;

WHEREAS , prior to the Closing (as defined below) and subject to the conditions of this Agreement, Acquiror shall domesticate as a Delaware corporation in accordance with Section 388 of the Delaware General Corporation Law, as amended (the “ DGCL ”) and Article 206 of the Cayman Islands Companies Law (2016 Revision) (the “ Domestication ”);

WHEREAS , upon the terms and subject to the conditions of this Agreement, and in accordance with Section 251 of the DGCL and Section 92A.250 of the NRS, at the Closing, Merger Sub will merge with and into the Company, the separate corporate existence of Merger Sub will cease and the Company will be the surviving corporation and a wholly-owned subsidiary of Acquiror (the “ First Merger ”), and, as part of the Integrated Transaction (as defined below), the surviving corporation of the First Merger would merge with and into Acquiror (the “ Second Merger ”, and together with the First Merger, the “ Mergers ”) upon the First Effective Time (as defined below) of the First Merger, all shares of the Company’s Capital Stock will be converted into the right to receive the Merger Consideration as set forth in this Agreement;

WHEREAS , the Board of Directors of the Company has (i) approved and declared advisable this Agreement and the First Merger and (ii) resolved to recommend approval of this Agreement by the stockholders of the Company;

WHEREAS , the Board of Directors of Acquiror has (i) approved and declared advisable this Agreement and the Mergers and (ii) resolved to recommend approval of this Agreement by the shareholders of Acquiror;

WHEREAS , in furtherance of the First Merger and in accordance with the terms hereof, Acquiror shall provide an opportunity to its shareholders to have their outstanding shares of Acquiror Common Stock redeemed on the terms and subject to the conditions set forth in this Agreement and Acquiror’s amended and restated memorandum and articles of association (as the same may be amended from time to time as permitted hereby, the “ Acquiror Governing Documents ”) in connection with obtaining the Acquiror Shareholder Approval (as defined below);

WHEREAS , in connection with Acquiror’s and Merger Sub’s entry into this Agreement, and as a condition to the willingness of Acquiror to enter into this Agreement, certain holders of the Company’s Capital Stock have executed and delivered to Acquiror a letter agreement, dated as of the date hereof, pursuant to which, among other things, such stockholders have agreed to certain restrictions regarding the transfer of the Acquiror Common Shares to be received by them pursuant to the First Merger (the “ Company Stockholder Letter ”);

WHEREAS , promptly following the execution of this Agreement, and as a condition to the willingness of Acquiror to enter into this Agreement, certain holders of (i) the Company’s Class A Common Stock, (ii) the Company’s Class B Common Stock, (iii) the Company’s Series A Preferred Stock, (iv) the Company’s Series B Preferred Stock and (v) the Company’s Series C Preferred Stock (in each case, as defined below) (such stockholders, the “ Principal Stockholders ”) are entering into Transaction Support and Voting Agreements in substantially the form attached hereto as Exhibit A with Acquiror pursuant to which, among other things, such securityholders have agreed to (a) vote their shares of Company Class A Common Stock, Company Class B Common Stock, Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, respectively, in favor of adoption of this Agreement and the approval of the First Merger, (b) certain restrictions regarding the transfer of the Merger Consideration to be received by them and (c) take other actions in furtherance of the transactions contemplated by this Agreement (as the same may be amended from time to time pursuant to its terms, each a “ Transaction Support and Voting Agreement ” and collectively, the “ Transaction Support and Voting Agreements ”) on the terms and conditions set forth therein; and

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WHEREAS , for certain limited purposes, and subject to the terms set forth herein, the Holder Representative shall serve as a representative of the Pre-Closing Holders.

WHEREAS , each of the parties intends that, for U.S. federal income tax purposes, the First Merger and the Second Merger, taken together, will constitute an integrated plan described in Rev. Rul. 2001-46, 2001-2 C.B. 321 (the “ Integrated Transaction ”) and qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the “ Code ”) and the Treasury Regulations to which each of Acquiror, Merger Sub and the Company are to be parties under Section 368(b) of the Code, and this Agreement is intended to constitute a “plan of reorganization” within the meaning of Section 368 of the Code and the Treasury Regulations.

NOW , THEREFORE , in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth in this Agreement and intending to be legally bound hereby, Acquiror, Merger Sub, the Company and Holder Representative agree as follows:

ARTICLE I

CERTAIN DEFINITIONS

Section 1.1    Definitions .   As used herein, the following terms shall have the following meanings:

2016 Financial Statements ” has the meaning specified in Section 6.6(a) .

Acquiror ” has the meaning specified in the preamble hereto.

Acquiror Acquisition Proposal ” means, as to any Person, other than the transactions contemplated by this Agreement, any offer or proposal relating to (i) any acquisition or purchase, direct or indirect, of any portion of the consolidated assets of such Person and its Subsidiaries or any class of equity or voting securities of such Person or any of its Subsidiaries, (ii) any tender offer (including a self-tender offer) or exchange offer that, if consummated, would result in any other Person beneficially owning any class of equity or voting securities of such Person or any of its Subsidiaries or (iii) a merger, consolidation, share exchange, business combination, sale of substantially all the assets, reorganization, recapitalization, liquidation, dissolution or other similar transaction involving such Person or any of its Subsidiaries.

Acquiror Board ” has the meaning specified in Section 7.9(a) .

Acquiror Closing Calculation Statement ” has the meaning specified in Section 3.6(a) .

Acquiror Common Share ” means a share of Acquiror Common Stock.

Acquiror Common Stock ” means common stock, par value $0.0001 per share, of Acquiror.

Acquiror Cure Period ” has the meaning specified in Section 10.1(f) .

Acquiror Disclosure Letter ” has the meaning specified in Article V .

Acquiror Extension Approval ” means the approval of the Acquiror Shareholders at the extraordinary general meeting of shareholders scheduled for May 23, 2017, of the proposals set forth in Acquiror’s definitive proxy statement filed with the SEC on April 24, 2017.

Acquiror Financial Statements ” has the meaning specified in Section 5.6(d) .

Acquiror Fundamental Representations ” has the meaning specified in Section 9.3(a) .

Acquiror Governing Documents ” has the meaning specified in the Recitals hereto.

Acquiror Material Adverse Effect ” means any event, state of facts, development, circumstance, occurrence or effect that has or would reasonably be expected to, individually or in the aggregate, prevent or materially impair the ability of Acquiror or Merger Sub to perform its obligations under this Agreement or to consummate the Mergers.

Acquiror Option ” has the meaning specified in Section 3.2(a) .

Acquiror Pre-Closing Holders ” has the meaning specified in Section 12.2(a) .

Acquiror Preferred Shares ” has the meaning specified in Section 5.13(a) .

Acquiror SEC Reports ” has the meaning specified in Section 5.5 .

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Acquiror Securities ” has the meaning specified in Section 5.13(a) .

Acquiror Share Redemption ” means the election of an eligible (as determined in accordance with the Acquiror Governing Documents) Acquiror Pre-Closing Holder to redeem all or a portion of the Acquiror Common Shares held by such shareholder at the at a per-share price, payable in cash, equal such holder’s pro rata share of the Trust Account (as determined in accordance with the Acquiror Governing Documents) in connection with the Acquiror Extension Approval or the Acquiror Shareholder Approval.

Acquiror Share Redemptions ” means the aggregate of each Acquiror Share Redemption.

Acquiror Shareholder Approval ” means the approval of (1) those Transaction Proposals identified in clauses (A), (B) and (C) of Section 8.1(b) , in each case, by an affirmative vote of the holders of at least two-thirds of the then outstanding Acquiror Common Shares and (2) those Transaction Proposals identified in clauses (D), (E), (F), (G), (H), (I), (J) and (K) of Section 8.1(b) , in each case, by an affirmative vote of the holders of at least a majority of the outstanding Acquiror Common Shares or such other approval threshold required by Law, in each case, at a shareholders’ meeting duly called by the Board of Directors of Acquiror and held for such purpose.

Acquiror Shareholders ” means the shareholders of Acquiror as of immediately prior to the First Effective Time.

Acquiror Shareholders’ Meeting ” has the meaning specified in Section 8.1(b) .

Acquiror Warrant ” means a warrant to purchase one (1) share of Acquiror Common Stock at an exercise price of eleven Dollars fifty cents ($11.50).

Acquiror Warranty Breach ” has the meaning specified in Section 12.2(b) .

Acquisition Proposal ” means, as to any Person, other than the transactions contemplated by this Agreement, any offer or proposal relating to (i) any acquisition or purchase, direct or indirect, of 15% or more of the consolidated assets of such Person and its Subsidiaries or 15% or more of any class of equity or voting securities of such Person or any of its Subsidiaries whose assets, individually or in the aggregate, constitute 15% or more of the consolidated assets of such Person and its Subsidiaries, (ii) any tender offer (including a self-tender offer) or exchange offer that, if consummated, would result in any other Person beneficially owning 15% or more of any class of equity or voting securities of such Person or any of its Subsidiaries whose assets, individually or in the aggregate, constitute 15% or more of the consolidated assets of such Person or (iii) a merger, consolidation, share exchange, business combination, sale of substantially all the assets, reorganization, recapitalization, liquidation, dissolution or other similar transaction involving such Person or any of its Subsidiaries whose assets, individually or in the aggregate, constitute 15% or more of the consolidated assets of such Person.

Action ” means any claim, action, suit, audit, examination, assessment, arbitration, mediation or inquiry, or any proceeding or investigation, by or before any Governmental Authority.

Affiliate ” means, with respect to any specified Person, any Person that, directly or indirectly, controls, is controlled by, or is under common control with, such specified Person, whether through one or more intermediaries or otherwise.

Aggregate Fully-Diluted Shares of the Company’s Capital Stock ” means the sum, without duplication, of the aggregate number of shares of Capital Stock that are (i) issued and outstanding immediately prior to the First Effective Time (on an as-converted to Common Stock basis) or (ii) issuable upon the settlement of Options or Company Warrants (in the case of the Specified Warrants, as adjusted per the terms of the Specified Warrant Agreement, including with respect to the Rimini Ratchet Shares, as defined therein), in each case, that are issued and outstanding immediately prior to the First Effective Time (whether or not then vested or exercisable) and prior to their conversion pursuant to the terms of Section 3.2 or Section 3.3 .

Aggregate Vested Option Exercise Price ” has the meaning specified in Section 3.1(e) .

Aggregate Warrant Exercise Price ” has the meaning specified in Section 3.1(e) .

Agreement ” has the meaning specified in the Recitals hereto.

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Anti-Bribery Laws ” means the anti-bribery provisions of the Foreign Corrupt Practices Act of 1977, as amended, and all other applicable anti-corruption and bribery laws and conventions (including the U.K. Bribery Act 2010, and any rules or regulations promulgated thereunder or other laws and regulations by other countries implementing the OECD Convention on Combating Bribery of Foreign Officials).

Antitrust Authorities ” means the Antitrust Division of the United States Department of Justice, the United States Federal Trade Commission or the antitrust or competition law authorities of any other jurisdiction (whether United States, foreign or multinational).

Antitrust Information or Document Request ” means any request or demand for the production, delivery or disclosure of documents or other evidence, or any request or demand for the production of witnesses for interviews or depositions or other oral or written testimony, by any Antitrust Authorities relating to the transactions contemplated hereby or by any third party challenging the transactions contemplated hereby, including any so called “second request” for additional information or documentary material or any civil investigative demand made or issued by any Antitrust Authority or any subpoena, interrogatory or deposition.

Applicable Percentage ” means, with respect to any Escrow Stockholder, a ratio (expressed as a percentage) equal to (x) the number of shares of Capital Stock held by such holder immediately prior to the First Effective Time, divided by (y) the sum of (A) the aggregate number of shares of Capital Stock held by all Escrow Stockholders immediately prior to the First Effective Time.

Assumed Plan ” has the meaning specified in Section 7.3(a) .

Audited Financial Statements ” has the meaning specified in Section 4.8(a) .

Auditor ” has the meaning specified in Section 3.6(b) .

Available Acquiror Cash ” has the meaning specified in Section 7.4 .

Base Purchase Price ” means $775,000,000.00.

Basket Amount ” has the meaning specified in Section 12.4(b) .

Business Combination ” has the meaning set forth in Article 48 of the Acquiror Governing Documents.

Business Combination Proposal ” means any offer, inquiry, proposal or indication of interest (whether written or oral, binding or non-binding, and other than an offer, inquiry, proposal or indication of interest with respect to the transactions contemplated by this Agreement), relating to a Business Combination.

Business Day ” means a day other than a Saturday, Sunday or other day on which commercial banks in New York, New York or Governmental Authorities in the Cayman Islands (for so long as Acquiror remains domiciled in Cayman Islands) or the State of Delaware are authorized or required by Law to close.

Capital Stock ” has the meaning specified in Section 3.1(a) .

Cash and Cash Equivalents ” of any Person as of any date means the cash and cash equivalents (restricted and unrestricted) and marketable securities, required to be reflected as cash, cash equivalents (restricted and unrestricted) and marketable securities on a consolidated balance sheet of such Person and its Subsidiaries as of such date prepared in accordance with GAAP.

Certificates ” has the meaning specified in Section 3.4(b) .

Certificates of First Merger ” has the meaning specified in Section 2.1(a) .

Certificates of Second Merger ” has the meaning specified in Section 2.1(c) .

Class A Common Stock ” has the meaning specified in Section 3.1(a) .

Class B Common Stock ” has the meaning specified in Section 3.1(a) .

Closing ” has the meaning specified in Section 2.3 .

Closing Date ” has the meaning specified in Section 2.3 .

Closing Date Cash ” has the meaning specified in Section 3.6(a) .

Closing Date Indebtedness ” has the meaning specified in Section 3.6(a) .

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Closing Date Unpaid Transaction Expenses ” has the meaning specified in Section 3.6(a) .

Closing Ownership Ratio ” means (A) the Merger Consideration, divided by (B) the total number of Acquiror Common Shares issued and outstanding immediately after the First Effective Time.

Co-Founder ” means any of Thomas C. Shay, Seth A. Ravin or SAR Trust U/A/D August 30, 2005, or any permitted transferee of any of the foregoing as permitted in accordance with the terms of the Company Stockholder Letter.

Code ” means the Internal Revenue Code of 1986, as amended.

Common Stock ” means the voting Class A Common Stock and the Class B Common Stock, par value $0.001 per share, of the Company.

Company ” has the meaning specified in the preamble hereto.

Company Benefit Plan ” has the meaning specified in Section 4.13(a) .

Company Cure Period ” has the meaning specified in Section 10.1(e) .

Company Disclosure Letter ” has the meaning specified in Article IV .

Company Fundamental Representations ” has the meaning specified in Section 9.2(a) .

Company Incentive Plans ” means the Rimini Street, Inc. 2007 Stock Plan, as amended through September 30, 2013 and the Rimini Street, Inc. 2013 Equity Incentive Plan.

Company Material Adverse Effect ” means any event, state of facts, development, circumstance, occurrence or effect that (i) has had, or would reasonably be expected to have, individually or in the aggregate, a material adverse effect on the business, assets, properties, results of operations or financial condition of the Company and its Subsidiaries, taken as a whole or (ii) has or would reasonably be expected to, individually or in the aggregate, prevent or materially impair the ability of the Company to perform its obligations under this Agreement or to consummate the Mergers; provided , however , in respect of the preceding clause (i), that in no event would any of the following (or the effect of any of the following), alone or in combination, be deemed to constitute, or be taken into account in determining whether there has been or will be, a “Company Material Adverse Effect” on or in respect of the Company and its Subsidiaries: (a) any change in applicable Laws or GAAP or any interpretation thereof, (b) any change in interest rates or economic, political, business or financial market conditions generally, (c) any change generally affecting any of the industries in which the Company or its Subsidiaries operates or the economy as a whole, including any change in commodity prices, (d) the announcement or pendency of this Agreement or the consummation of the Mergers, (e) the compliance with the terms of this Agreement or the taking of any action required by this Agreement, (f) any natural disaster, (g) any acts of terrorism or war or the outbreak or escalation of hostilities or change in geopolitical conditions or (h) any failure of the Company to meet any projections or forecasts, provided that clause (h) shall not prevent a determination that any change or effect underlying such failure to meet projections or forecasts has resulted in a Company Material Adverse Effect (to the extent such change or effect is not otherwise excluded from this definition of Company Material Adverse Effect); or (i) any action taken (or omitted to be taken) at the request of Acquiror; provided , further , that any event, state of facts, change, development, circumstance, occurrence or effect referred to in clauses (a), (b), (c), (f), or (g) above may be taken into account in determining if a Company Material Adverse Effect has occurred to the extent it has a materially disproportionate and adverse effect on the business, assets, properties, results of operations or financial condition of the Company and its Subsidiaries, taken as a whole, relative to similarly situated companies in the industry in which the Company and its Subsidiaries conduct their respective operations.

Company Preferred Stock ” means the Series A Preferred Stock, the Series B Preferred Stock, and the Series C Preferred Stock.

Company Registered Intellectual Property ” has the meaning specified in Section 4.21(a) .

Company Stockholder Approvals ” means (a) the approval of this Agreement and the transactions contemplated hereby by the (i) affirmative vote of the holders of at least a majority of the voting power of the outstanding Capital Stock, (ii) the affirmative vote of the holders of more than fifty percent (50%) of the outstanding shares of the Company’s Series B Preferred Stock and Company’s Series C Preferred Stock, voting as a single class and on an as-converted basis, (iii) the affirmative vote of the holders of a majority of the outstanding shares of Company

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Class A Common Stock and (iv) the affirmative vote of the holders of a majority of the outstanding shares of Company Class A Common Stock, in each case, at the Company Stockholders’ Meeting duly called by the Board of Directors of the Company and held for such purpose and (b) the approval of the conversion of all outstanding shares of Company Preferred Stock into shares of Class A Common Stock, to be effective as of immediately prior to the First Effective Time, by the holders of at least a majority of the outstanding shares of Company Preferred Stock (voting as a single class of stock and on an as-converted basis) at such time and the Company’s receipt of a request for such conversion by the holders of such a majority of the Company Preferred Stock.

Company Stockholder Letter ” has the meaning set forth in the Recitals hereto.

Company Stockholders’ Meeting ” has the meaning specified Section 8.1(c) .

Company Warrant Agreement ” has the meaning specified in Section 3.3(b) .

Company Warrants ” has the meaning specified in Section 3.3(a) .

Company Warranty Breach ” has the meaning specified in Section 12.2(a)(i) .

Confidentiality Agreement ” has the meaning specified in Section 13.10 .

Constituent Corporations ” has the meaning specified in Section 2.1(a) .

Contracts ” means any legally binding contracts, agreements, subcontracts, leases, and purchase orders.

Conversion Agreement ” has the meaning specified in Section 3.3(a) .

Damages ” means all losses, damages, liabilities and other costs and expenses.

Deficit Amount ” has the meaning specified in Section 3.6(c) .

Determination Date ” has the meaning specified in Section 3.6(b) .

DGCL ” has the meaning specified in the Recitals hereto.

Disclosure Letter ” means, as applicable, the Company Disclosure Letter or the Acquiror Disclosure Letter.

Dissenting Shares ” has the meaning specified in Section 3.10 .

Dollars ” means lawful money of the United States.

Domestication ” has the meaning specified in the Recitals hereto.

End Date ” has the meaning specified in Section 10.1(e) .

Environmental Laws ” means any and all applicable foreign, United States federal, state or local laws (including common law), statutes, ordinances, rules, regulations, orders, judgments or other requirements having the force of law with its principal purpose relating to Hazardous Materials, pollution, or the protection or management of the environment or natural resources, or protection of human health (with respect to exposure to Hazardous Materials).

Equity Commitment Letter ” has the meaning specified in Section 5.8 .

Equity Issue Amount ” has the meaning specified in Section 7.4 .

ERISA ” has the meaning specified in Section 4.13(a) .

ERISA Affiliate ” means any affiliate or business, whether or not incorporated, that together with the Company would be deemed to be a “single employer” within the meaning of Section 414(b), (c), (m) or (o) of the Code.

Escrow Agent ” means Continental Stock Transfer & Trust Company, or another third party escrow agent to be mutually agreed by Acquiror and the Company.

Escrow Agreement ” has the meaning specified in Section 8.5 .

Escrow Stockholders ” has the meaning specified in the definition of Indemnification Escrow Amount.

ESPP ” has the meaning specified in Section 7.3(b) .

Estimated Closing Date Cash ” has the meaning specified in Section 3.5 .

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Estimated Closing Date Indebtedness ” has the meaning specified in Section 3.5 .

Estimated Closing Date Unpaid Transaction Expenses ” has the meaning specified in Section 3.5 .

Exchange Act ” means the Securities Exchange Act of 1934.

Exchange Agent ” has the meaning specified in Section 3.4(a)(i) .

Excluded Shares ” has the mean specified in Section 3.1(a) .

Extension Shareholders’ Meeting ” means the extraordinary general meeting of Acquiror Shareholders scheduled for May 23, 2017.

Financial Statements ” has the meaning specified in Section 4.8(a) .

First Delaware Certificate of Merger ” has the meaning specified in Section 2.1(a) .

First Effective Time ” has the meaning specified in Section 2.3 .

First Merger ” has the meaning specified in the recitals.

First Nevada Articles of Merger ” has the meaning specified in Section 2.1(a) .

First-Step Constituent Corporations ” has the meaning specified in Section 2.1(a) .

GAAP ” means generally accepted accounting principles in the United States as in effect from time to time.

Governmental Authority ” means any federal, state, provincial, municipal, local or foreign government, governmental authority, regulatory or administrative agency, governmental commission, department, board, bureau, agency or instrumentality, court or tribunal.

Governmental Order ” means any order, judgment, injunction, decree, writ, stipulation, determination or award, in each case, entered by or with any Governmental Authority.

GPIAC-Designated Directors ” has the meaning specified in Section 11.2 .

GPIAC Indemnified Parties ” has the meaning specified in Section 12.2(a) .

Hazardous Material ” means any (i) pollutant, contaminant, chemical, (ii) industrial, solid, liquid or gaseous toxic or hazardous substance, material or waste, (iii) petroleum or any fraction or product thereof, (iv) asbestos or asbestos-containing material, (v) polychlorinated biphenyl, (vi) chlorofluorocarbons, and (vii) other substance, material or waste, in each case, which are regulated under any Environmental Law or as to which liability may be imposed pursuant to Environmental Law.

Holder Representative ” has the meaning specified in Section 11.1(a) .

HSR Act ” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder.

In The Money ” has the meaning specified in Section 3.3(a) .

Indebtedness ” means with respect to any Person, without duplication, any obligations, contingent or otherwise, in respect of (a) the principal of and premium (if any) in respect of all indebtedness for borrowed money, including accrued interest (and any cost associated with prepaying any such debt solely to the extent such debt is actually prepaid), (b) amounts drawn on letters of credit, bank guarantees, bankers’ acceptances and other similar instruments (solely to the extent such amounts have actually been drawn), (c) the principal of and premium (if any) in respect of obligations evidenced by bonds, debentures, notes and similar instruments, (d) all make-whole obligations and exit or similar fees payable to any third party with respect to any of the Company’s existing debt whether such debt is on or off balance sheet, and (e) all Indebtedness of another Person referred to in clauses (a) through (c) above guaranteed directly or indirectly, jointly or severally.

Indemnification Claim ” has the meaning specified in Section 12.3(a) .

Indemnification Escrow Amount ” means a portion of the Merger Consideration equal to Five Million Five Hundred Thousand (5,500,000) Acquiror Common Shares, deducted from the Merger Consideration otherwise payable to the Persons (the “ Escrow Stockholders ”) as listed in Section 1.1 of the Company Disclosure Letter, in accordance with their respective Applicable Percentage.

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Indemnification Escrow Shares ” means, at any given time after Closing, the Acquiror Common Shares then remaining in the one or more accounts in which the Escrow Agent has deposited the Indemnification Escrow Amount in accordance with the Escrow Agreement.

Indemnified Party ” has the meaning specified in Section 12.3(a) .

Indemnitor ” means the party required to provide indemnification pursuant to Section 12.2 ; provided , however , that solely for the purposes of Sections 8.4 , Section 12.3 and 12.4 , the Holder Representative shall be considered the Indemnitor with respect to an Indemnification Claim pursuant to Section 12.3(a) (it being understood that such status as an Indemnitor is solely for the purpose of providing the Holder Representative with the right (i) to control the defense and settlement of any Action giving rise to an Indemnification Claim pursuant to Section 12.3(a) and (ii) to engage in discussions, negotiations, and other dispute resolution with the applicable Indemnified Party regarding the Indemnification Claim, and such status shall not obligate the Holder Representative to provide any indemnification or otherwise impose any liability on the Holder Representative).

Integrated Transaction ” has the meaning specified in the Recitals.

Intellectual Property ” means any of the rights in or associated with any of the following: (i) patents, patent applications, invention disclosures, and all related continuations, continuations-in-part, divisionals, reissues, re-examinations, substitutions, and extensions thereof; (ii) registered and unregistered trademarks, service marks, trade dress and trade names, pending applications therefor, and similar reservations of names and marks, including any such rights in internet domain names; (iii) registered and unregistered copyrights, and applications for registration of copyright, including such corresponding rights in software and other works of authorship; (iv) trade secrets, know-how, processes, and other confidential information or proprietary rights; and (v) any other similar type of proprietary or intellectual property rights.

IRS ” means Internal Revenue Service.

JOBS Act ” has the meaning specified in Section 5.6(a) .

Joint Proxy Statement ” has the meaning specified in Section 8.1(a)(i) .

Law ” means any statute, law, ordinance, rule, regulation or Governmental Order, in each case, of any Governmental Authority.

Leased Real Property ” means all real property leased, licensed, subleased or otherwise used or occupied by the Company or any of its Subsidiaries, the lease, license, sublease or other occupancy agreement of which (x) may not be terminated at will, or by giving notice of thirty (30) days or less, without any cost or penalty, and (y) provides for annual rental payments in excess of $100,000.

Legal Proceedings ” has the meaning specified in Section 4.10 .

Lien ” means any mortgage, deed of trust, pledge, hypothecation, encumbrance, security interest or other lien of any kind.

Mergers ” has the meaning specified in the recitals.

Merger Consideration ” has the meaning specified in Section 3.1(c) .

Merger Consideration Per Fully-Diluted Share ” has the meaning specified in Section 3.1(e) .

Merger Sub ” has the meaning specified in the preamble hereto.

Minimum Trust Release Amount ” has the meaning specified in Section 9.1(j) .

Multiemployer Plan ” has the meaning specified in Section 4.13(c) .

NASDAQ ” has the meaning specified in Section 3.1(f) .

Net Issue Exercise ” means that the holder of any Company Warrant shall be entitled to receive that number of shares of the applicable class of the Company’s Capital Stock (as prescribed in each such Company Warrant Agreement) equal to the quotient obtained by dividing (i) (the Per-Share Dollar Value – B)*(X) by (ii) the Per-Share Dollar Value, where (B) equals the exercise price of each such Company Warrant, and (X) equals the number of shares of the applicable class of the Company’s Capital Stock (as prescribed in each such Company Warrant

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Agreement) that would be issuable upon exercise of such Company Warrant in accordance with the terms of its issuance if such exercise were by means of a cash exercise rather than a net issue exercise, or such other formula as the parties to this Agreement and the holders of such Company Warrant may agree.

Notification Date ” has the meaning specified in Section 10.1(f) .

NRS ” has the meaning specified in Section 2.1(a) .

Offer Documents ” has the meaning specified in Section 8.1(a)(i) .

Option ” means an option to purchase a share of Common Stock granted under a Company Incentive Plan.

Pending Claim ” has the meaning specified in Section 12.9 .

Per-Claim Basket ” has the meaning specified in Section 12.4(b) .

Per-Share Dollar Value ” has the meaning specified in Section 3.3(a) .

Permits ” means any approvals, authorizations, consents, licenses, registrations, permits or certificates of a Governmental Authority.

Permitted Liens ” means (i) mechanic’s, materialmen’s and similar Liens arising in the ordinary course of business with respect to any amounts (A) not yet due and payable or which are being contested in good faith through (if then appropriate) appropriate proceedings, (B) for which adequate accruals or reserves have been established in accordance with GAAP (if deemed appropriate) and (C) which are not, individually or in the aggregate, material, (ii) Liens for Taxes not yet due and payable or which are being contested in good faith through (if then appropriate) appropriate proceedings and for which adequate accruals or reserves have been established in accordance with GAAP (if deemed appropriate), (iii) Liens securing rental payments under capital lease agreements, (iv) with respect to any Leased Real Property minor title defects or irregularities that do not, individually or in the aggregate, materially interfere with the present uses of such real property, (v) Liens securing payment, or any other obligations, of the Company or its Subsidiaries with respect to Indebtedness, (vi) other Liens arising in the ordinary course of business and not incurred in connection with the borrowing of money and (vii) Liens described in Section 1.2 of the Company Disclosure Letter.

Person ” means any individual, firm, corporation, partnership, limited liability company, incorporated or unincorporated association, joint venture, joint stock company, Governmental Authority or instrumentality or other entity of any kind.

Post-Closing Tax Period ” means any taxable period (or portion thereof) after the Closing Date.

Pre-Closing Holders ” means all Persons who hold one or more shares of the Company’s Capital Stock immediately prior to the First Effective Time.

Pre-Closing Tax Period ” means any taxable period (or portion thereof) ending on or before the Closing Date.

Principal Stockholders ” has the meaning specified in the Recitals.

Prospectus ” has the meaning specified in Section 13.1 .

Q1 Financial Statements ” has the meaning specified in Section 6.6(b) .

Real Property Leases ” has the meaning specified in Section 4.20(b)(iv) .

Registration Statement ” means the Registration Statement on Form S-4, or other appropriate form, including any pre-effective or post-effective amendments or supplements thereto, to be filed with the SEC by Acquiror under the Securities Act with respect to the shares of Acquiror Common Stock to be issued to shareholders of the Company pursuant to this Agreement.

Related Party Transaction ” has the meaning specified in Section 4.24 .

Sarbanes-Oxley Act ” means the Sarbanes-Oxley Act of 2002.

SEC ” means the United States Securities and Exchange Commission.

Second-Step Constituent Corporations ” has the meaning specified in Section 2.1(c) .

Second Delaware Certificate of Merger ” has the meaning specified in Section 2.1(c) .

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Second Effective Time ” has the meaning specified in Section 2.3 .

Second Merger ” has the meaning specified in the recitals.

Second Nevada Articles of Merger ” has the meaning specified in Section 2.1(c) .

Securities Act ” has the meaning specified in Section 4.24 .

Seller Indemnified Parties ” has the meaning specified in Section 12.2(b) .

Series A Preferred Stock ” has the meaning specified in Section 3.1(a) .

Series B Preferred Stock ” has the meaning specified in Section 3.1(a) .

Series C Preferred Stock ” has the meaning specified in Section 3.1(a) .

Specified Co-Founder Fraud Claim ” has the meaning set forth in Section 12.4(a) .

Specified Pre-Closing Holder Fraud Claim ” has the meaning set forth in Section 12.4(a) .

Specified Warrant ” has the meaning set forth in Section 3.3(c) .

Specified Warrant Agreement ” means that certain Warrant Consent and Conversion Agreement, to be entered into contemporaneously with this Agreement, by and among Acquiror, the Company and CB Agent Services LLC.

Sponsor ” means GPIC, Ltd., a company organized under the laws of Bermuda, or, as applicable, any affiliate thereof providing equity financing to Acquiror pursuant to the Equity Commitment Letter.

Subsidiary ” means, with respect to a Person, a corporation or other entity of which 75% or more of the voting power of the equity securities or equity interests is owned, directly or indirectly, by such Person.

Survival Expiration Date ” has the meaning specified in Section 12.1 .

Surviving Corporation ” has the meaning specified in Section 2.1(b) .

Tax Return ” means any return, declaration, report, statement, information statement or other document filed or required to be filed with any Governmental Authority with respect to Taxes, including any claims for refunds of Taxes, any information returns and any amendments or supplements of any of the foregoing.

Taxes ” means (a) all federal, state, local, foreign or other taxes imposed by any Governmental Authority, including without limitation, all income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, ad valorem, value added, inventory, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, alternative or add-on minimum, or estimated taxes, and including any interest, penalty, or addition thereto and (b) any amounts described in clause (a) of this definition (x) as a result of being prior to the Closing a member of an affiliated, consolidated, combined, unitary or other similar group, (y) as a result of being prior to the Closing a party to any Tax sharing or Tax allocation agreement or other similar arrangement (other than customary commercial contracts not primarily related to Taxes) or (z) as a result of being liable for another Person’s Taxes as a transferee or successor.

Terminating Acquiror Breach ” has the meaning specified in Section 10.1(f) .

Terminating Company Breach ” has the meaning specified in Section 10.1(e) .

Title IV Plan ” has the meaning specified in Section 4.13(c) .

Top Customers ” has the meaning specified in Section 4.29(a) .

Top Vendors ” has the meaning specified in Section 4.29(a) .

Transaction Expenses ” means (A) any fees and expenses paid or payable by the Company or any of its Subsidiaries as a result of or in connection with the consummation of the transactions contemplated hereby, including any bonuses paid or payable by the Company or any of its Subsidiaries as a result of or in connection with the consummation of the transactions contemplated hereby (but excluding “double-trigger” obligations); and (B) the Transfer Taxes to be satisfied by recourse to the Indemnification Escrow Amount pursuant to Section 8.4(b) ; provided that , the following shall not constitute “Transaction Expenses” and shall be borne by Acquiror: (i) fees and expenses of the Escrow Agent; (ii) fees and expenses of the Exchange Agent; (iii) fees and expenses incurred by the Company

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or any of its Subsidiaries to the extent relating to any third party financing of Acquiror that is contingent on the Closing; and (iv) to the extent paid prior to the Closing, any fees of expenses of the Company or any of its Subsidiaries in connection with the matters set forth in Section 7.2(b) .

Transaction Proposals ” has the meaning specified in Section 8.1(b) .

Transaction Support and Voting Agreement ” has the meaning specified in the Recitals.

Transfer Taxes ” has the meaning specified in Section 8.4(b) .

Treasury Regulations ” means the regulations promulgated under the Code by the United States Department of the Treasury (whether in final, proposed or temporary form), as the same may be amended from time to time.

Trust Account ” has the meaning specified in Section 5.9 .

Trust Agreement ” has the meaning specified in Section 5.9 .

Trust Release Amount ” has the meaning specified in Section 7.4 .

Trustee ” has the meaning specified in Section 5.9 .

Section 1.2    Construction .

(a) Unless the context of this Agreement otherwise requires, (i) words of any gender include each other gender; (ii) words using the singular or plural number also include the plural or singular number, respectively; (iii) the terms “hereof,” “herein,” “hereby,” “hereto” and derivative or similar words refer to this entire Agreement; (iv) the terms “Article” or “Section” refer to the specified Article or Section of this Agreement; (v) the word “including” shall mean “including, without limitation” and (vi) the word “or” shall be disjunctive but not exclusive.

(b) Unless the context of this Agreement otherwise requires, references to agreements and other documents shall be deemed to include all subsequent amendments and other modifications thereto.

(c) Unless the context of this Agreement otherwise requires, references to statutes shall include all regulations promulgated thereunder and references to statutes or regulations shall be construed as including all statutory and regulatory provisions consolidating, amending or replacing the statute or regulation.

(d) The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent and no rule of strict construction shall be applied against any party.

(e) Whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are specified.

(f) All accounting terms used herein and not expressly defined herein shall have the meanings given to them under GAAP.

Section 1.3    Knowledge .   As used herein, (i) the phrase “to the knowledge” of the Company shall mean the actual knowledge of the individuals identified on Section 1.3 of the Company Disclosure Letter and (ii) the phrase “to the knowledge” of Acquiror shall mean the actual knowledge of the individuals identified on Section 1.3 of the Acquiror Disclosure Letter.

ARTICLE II

THE MERGERS; CLOSING

Section 2.1    The Mergers .

(a) Upon the terms and subject to the conditions set forth in this Agreement, Acquiror, Merger Sub and the Company (Merger Sub and the Company sometimes being referred to herein as the “ First-Step Constituent Corporations ”) shall cause Merger Sub to be merged with and into the Company, with the Company being the surviving corporation in the First Merger. The First Merger shall be consummated in accordance with this Agreement and evidenced by (i) a certificate of merger with respect to the First Merger (as so filed, the “ First Delaware Certificate of Merger ”) executed by the First-Step Constituent Corporations in accordance with the relevant provisions of the DGCL and (ii) articles of merger with respect to the First Merger (as so filed, the “ First Nevada Articles of Merger ” and, together with the First

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Delaware Certificate of Merger, the “ Certificates of First Merger ”) executed by the First-Step Constituent Corporations in accordance with the relevant provisions of the Nevada Revised Statutes (“ NRS ”), such First Merger to be effective as of the First Effective Time.

(b) Upon consummation of the First Merger, the separate corporate existence of Merger Sub shall cease and the Company, as the surviving corporation of the First Merger (hereinafter referred to for the periods at and after the First Effective Time as the “ First-Step Surviving Corporation ”), shall continue its corporate existence under the NRS, as a wholly owned subsidiary of Acquiror.

(c) Upon the terms and subject to the conditions set forth in this Agreement, Acquiror and the First-Step Surviving Corporation (Acquiror and the First-Step Surviving Corporation sometimes being referred to herein as the “ Second-Step Constituent Corporations ”) shall cause the First-Step Surviving Corporation to be merged with and into Acquiror, with Acquiror being the surviving corporation in the Second Merger. The Second Merger shall be consummated in accordance with this Agreement and evidenced by (i) a certificate of merger with respect to the Second Merger (as so filed, the “ Second Delaware Certificate of Merger ”) executed by the Second-Step Constituent Corporations in accordance with the relevant provisions of the DGCL and (ii) articles of merger with respect to the Second Merger (as so filed, the “ Second Nevada Articles of Merger ” and, together with the Second Delaware Certificate of Merger, the “ Certificates of Second Merger ,” and together with the Certificate of First Merger, the “ Certificates of Merger ”) executed by the Second-Step Constituent Corporations in accordance with the relevant provisions of the NRS, such Second Merger to be effective as of the Second Effective Time.

(d) Upon consummation of the Second Merger, the separate corporate existence of the First-Step Surviving Corporation shall cease and Acquiror, as the surviving corporation of the Second Merger (hereinafter sometimes referred to for the periods at and after the Second Effective Time as the “ Surviving Corporation ”), shall continue its corporate existence under the DGCL.

Section 2.2    Effects of the Mergers .

(a) At and after the First Effective Time, the First-Step Surviving Corporation shall thereupon and thereafter possess all of the rights, privileges, powers and franchises, of a public as well as a private nature, of the First-Step Constituent Corporations, and shall become subject to all the restrictions, disabilities and duties of each of the First-Step Constituent Corporations; and all rights, privileges, powers and franchises of each First-Step Constituent Corporation, and all property, real, personal and mixed, and all debts due to each such First-Step Constituent Corporation, on whatever account, and all choses in action belonging to each such corporation, shall become vested in the First-Step Surviving Corporation; and all property, rights, privileges, powers and franchises, and all and every other interest shall become thereafter the property of the First-Step Surviving Corporation as they are of the First-Step Constituent Corporations; and the title to any real property vested by deed or otherwise or any other interest in real estate vested by any instrument or otherwise in either of such First-Step Constituent Corporations shall not revert or become in any way impaired by reason of the First Merger; but all Liens upon any property of either First-Step Constituent Corporation shall thereafter attach to the First-Step Surviving Corporation and shall be enforceable against it to the same extent as if said debts, liabilities and duties had been incurred or contracted by it; all of the foregoing in accordance with the applicable provisions of the DGCL and the NRS.

(b) At and after the Second Effective Time, the Surviving Corporation shall thereupon and thereafter possess all of the rights, privileges, powers and franchises, of a public as well as a private nature, of the Second-Step Constituent Corporations, and shall become subject to all the restrictions, disabilities and duties of each of the Second-Step Constituent Corporations; and all rights, privileges, powers and franchises of each Second-Step Constituent Corporation, and all property, real, personal and mixed, and all debts due to each such Second-Step Constituent Corporation, on whatever account, and all choses in action belonging to each such corporation, shall become vested in the Surviving Corporation; and all property, rights, privileges, powers and franchises, and all and every other interest shall become thereafter the property of the Surviving Corporation as they are of the Second-Step Constituent Corporations; and the title to any real property vested by deed or otherwise or any other interest in real estate vested by any instrument or otherwise in either of such Second -Step Constituent Corporations shall not revert or become in any way impaired by reason of the First Merger; but all Liens upon any property of either Second-Step Constituent

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Corporation shall thereafter attach to the Surviving Corporation and shall be enforceable against it to the same extent as if said debts, liabilities and duties had been incurred or contracted by it; all of the foregoing in accordance with the applicable provisions of the DGCL and the NRS.

Section 2.3    Closing; First Effective Time; Second Effective Time .

(a) In accordance with the terms and subject to the conditions of this Agreement, the closing of the First Merger (the “ Closing ”) shall take place at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, New York 10036, at 10:00 a.m. (New York time) on the date which is two (2) Business Days after the first date on which all conditions set forth in Article IX shall have been satisfied or waived (other than those conditions that by their terms are to be satisfied at the Closing) or such other time and place as Acquiror and the Company may mutually agree in writing. The date on which the Closing actually occurs is referred to in this Agreement as the “ Closing Date ”.

(b) Subject to the satisfaction or waiver of all of the conditions set forth in Article IX of this Agreement, and provided this Agreement has not theretofore been terminated pursuant to its terms, Acquiror, Merger Sub and the Company shall cause the (i) First Delaware Certificate of Merger to be executed and duly submitted for filing with the Secretary of State of the State of Delaware as provided in Section 251 of the DGCL and (ii) First Nevada Articles of Merger to be executed and duly submitted for filing with the Secretary of State of the State of Nevada as provided in Section 92A.200 of the NRS. The First Merger shall become effective at the time when each of the (i) First Delaware Certificate of Merger has been accepted for filing by the Secretary of State of the State of Delaware and (ii) Nevada Articles of Merger have been accepted for filing by the Secretary of State of the State of Nevada, or at such later time as may be agreed by Acquiror and the Company in writing and specified in the Certificates of First Merger (the “ First Effective Time ”).

(c) Promptly after the First Effective Time, but in all cases within one (1) Business Day thereafter, Acquiror and the First-Step Surviving Corporation shall cause the (i) Second Delaware Certificate of Merger to be executed and duly submitted for filing with the Secretary of State of the State of Delaware as provided in Section 251 of the DGCL and (ii) Second Nevada Articles of Merger to be executed and duly submitted for filing with the Secretary of State of the State of Nevada as provided in Section 92A.200 of the NRS. The Second Merger shall become effective at the time when each of the (i) Second Delaware Certificate of Merger has been accepted for filing by the Secretary of State of the State of Delaware and (ii) Second Nevada Articles of Merger have been accepted for filing by the Secretary of State of the State of Nevada, or at such later time as may be agreed by Acquiror and the Company in writing and specified in the Certificates of Second Merger (the “ Second Effective Time ”).

Section 2.4    Certificate of Incorporation and Bylaws of the First-Step Surviving Corporation and the Second-Step Surviving Corporation .

(a) At the First Effective Time, the certificate of incorporation and bylaws of the First-Step Surviving Corporation shall be amended and restated in their entirety in the forms attached as Sections 2.4(a)-1 and 2.4(a)-2 of the Acquiror Disclosure Letter, respectively, and as so amended and restated shall be the certificate of incorporation and bylaws, respectively, of the First-Step Surviving Corporation until thereafter amended as provided therein and under the NRS.

(b) At the Second Effective Time, the certificate of incorporation and bylaws of the Second-Step Surviving Corporation shall be amended and restated in their entirety to the same form as the certificate of incorporation and bylaws of Acquiror (which, for the avoidance of doubt, shall be in substantially the forms attached as Exhibits B and C hereto upon effectiveness of the Domestication), respectively, except that the name of the Second-Step Surviving Corporation shall be Rimini Street, Inc. and as so amended and restated shall be the certificate of incorporation and bylaws, respectively, of the Surviving Corporation until thereafter amended as provided therein and under the DGCL.

Section 2.5    Directors and Officers of the First-Step Surviving Corporation and the Second-Step Surviving Corporation .

(a) From and after the First Effective Time, the Persons identified on Section 2.5(a) of the Company Disclosure Letter as the initial directors and officers of the First-Step Surviving Corporation shall be the

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directors and officers (and in the case of such officers, holding such positions as set forth on Section 2.5(a) of the Company Disclosure Letter), respectively, of the First-Step Surviving Corporation, each to hold office in accordance with the certificate of incorporation and bylaws of the First-Step Surviving Corporation.

(b) From and after the Second Effective Time, the Persons identified as the initial directors and officers of the Second-Step Surviving Corporation in accordance with the provisions of Section 7.9 shall be the initial directors and officers of the Surviving Corporation, each to hold office in accordance with the certificate of incorporation and bylaws of the Surviving Corporation.

Section 2.6    Tax Free Reorganization Matters .   The parties intend that, for U.S. federal income tax purposes, the First Merger and the Second Merger (taken together as the Integrated Transaction), will constitute an integrated plan described in Rev. Rul. 2001-46, 2001-2 C.B. 32, 1 and qualify as a “reorganization” within the meaning of Section 368(a) of the Code and the Treasury Regulations and this Agreement is intended to be, and is adopted as, a plan of reorganization for purposes of Sections 354, 361 and the 368 of the Code and within the meaning of Treasury Regulations Section 1.368-2(g). None of the parties knows of any fact or circumstance (without conducting independent inquiry or diligence of the other relevant party), or has taken or will take any action, if such fact, circumstance or action would be reasonably expected to cause the Integrated Transaction to fail to qualify as a reorganization within the meaning of Section 368(a) of the Code. The Integrated Transaction shall be reported by the parties for all Tax purposes in accordance with the foregoing, unless otherwise required by a Governmental Authority.

ARTICLE III

EFFECTS OF THE MERGERS ON THE CAPITAL STOCK AND EQUITY AWARDS

Section 3.1    Conversion of Securities .

(a) At the First Effective Time, by virtue of the First Merger and without any action on the part of any holder of Capital Stock, each share of the Company’s (v) Class A Common Stock, par value $0.001 per share (“ Class A Common Stock ”), (w) Class B Common Stock, par value $0.001 per share (“ Class B Common Stock ”), (x) Series A Preferred Stock, par value $0.001 per share (“ Series A Preferred Stock ”), on an as-converted basis, (y) Series B Preferred Stock, par value $0.001 per share (“ Series B Preferred Stock ”), on an as-converted basis and (z) Series C Preferred Stock, par value $0.001 per share (“ Series C Preferred Stock ”, and together with the Class A Common Stock, Class B Common Stock, Series A Preferred Stock, the “ Capital Stock ”), on an as converted basis, that is issued and outstanding immediately prior to the First Effective Time (other than shares of Capital Stock, if any, (i) held in the treasury of the Company, which treasury shares shall be canceled as part of the First Merger and shall not constitute “Capital Stock” hereunder and (ii) shares that are held by stockholders who have perfected and not withdrawn a demand for appraisal rights pursuant to Sections 92A.300 through 92A.500 of the NRS (each such share of Capital Stock referred to in clauses (i) and (ii) above, an “ Excluded Share ” and, collectively, “ Excluded Shares ”)) shall be canceled and converted into and become the right to receive the applicable portion of the Merger Consideration as determined pursuant to Section 3.1(e) .

(b) At the First Effective Time, by virtue of the First Merger and without any action on the part of Acquiror or Merger Sub, each share of common stock, par value $0.001 per share, of Merger Sub shall be converted into one share of common stock, par value $0.001 per share, of the First-Step Surviving Corporation.

(c) At the Second Effective Time, by virtue of the Second Merger and without any action on the part of Acquiror or the First-Step Surviving Corporation, each share of common stock, par value $0.001 per share, of the First-Step Surviving Corporation shall be cancelled.

(d) The “ Merger Consideration ” shall consist of a number of Acquiror Common Shares equal to the quotient obtained by dividing (i) (A) the Base Purchase Price, less (B) Estimated Closing Date Indebtedness, plus (C) the Estimated Closing Date Cash, less (D) the Estimated Closing Date Unpaid Transaction Expenses by (ii) $10.00.

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(e) Each Pre-Closing Holder of Capital Stock (other than in respect of Company Warrants which are treated in Section 3.3 , and Excluded Shares) shall be entitled to receive a portion (in shares) of the Merger Consideration equal to (x) the Merger Consideration Per Fully-Diluted Share (as defined below), multiplied by (y) the number of shares of Capital Stock held by such holder immediately prior to the First Effective Time.

For purposes of the foregoing, the “ Merger Consideration Per Fully-Diluted Share ” shall mean (X) (i) the sum of (A) the Merger Consideration multiplied by $10.00, plus (B) the Aggregate Warrant Exercise Price, plus (C) the Aggregate Vested Option Exercise Price, divided by (ii) the sum of the Aggregate Fully-Diluted Shares of the Company’s Capital Stock; divided by (Y) $10.00. For the purposes of the foregoing, (i) the “ Aggregate Warrant Exercise Price ” shall be the sum total of all cash exercise prices of all Company Warrants outstanding (in the case of the Specified Warrants, as per the terms of the Specified Warrant Agreement, including with respect to the Rimini Ratchet Shares, as defined therein), unexercised, prior to the effect of Section 3.3 and having a per share exercise price less than the Per-Share Dollar Value immediately prior to the First Effective Time and (ii) the “ Aggregate Vested Option Exercise Price ” shall be the sum total of all cash exercise prices of all vested Options outstanding, unexercised and in the money immediately prior to the First Effective Time.

(f) Fractional Shares . Notwithstanding anything in this Agreement to the contrary, no certificate or scrip representing fractional Acquiror Common Stock shall be issued upon the conversion of the Capital Stock pursuant to this Article III , and such fractional share interests shall not entitle the owner thereof to vote or to any other rights of an Acquiror Shareholder. In lieu of any fractional shares, Acquiror shall pay each Pre-Closing Holder of Capital Stock (including any Company Warrants that convert into Capital Stock pursuant to Section 3.3(a) ) entitled to any portion of Acquiror Common Stock, and such holder shall be entitled to receive, an amount in cash, rounded up to the nearest cent, equal to the product obtained by multiplying (i) the fractional share interest to which such holder (after taking into account all Acquiror Common Shares held at the First Effective Time by such holder) would otherwise be entitled by (ii) the closing price on the NASDAQ Capital Market (“ NASDAQ ”) for an Acquiror Common Share on the last trading day immediately preceding the First Effective Time.

(g) Adjustment to Merger Consideration . The Merger Consideration shall be adjusted appropriately to reflect the effect of any stock split, reverse stock split, stock dividend (including any dividend or other distribution of securities convertible into Acquiror Common Shares), reorganization, recapitalization, reclassification, combination, exchange of shares or other like change with respect to the number of Acquiror Common Shares outstanding after the date hereof and prior to the First Effective Time so as to provide the holders of shares of the Company’s Capital Stock (other than Excluded Shares) with the same economic effect as contemplated by this Agreement prior to such event and as so adjusted shall, from and after the date of such event, be the Merger Consideration.

Section 3.2    Treatment of Options .

(a) Prior to the First Effective Time, the Company shall take all necessary and appropriate actions so that, as of the First Effective Time, each Option that is then outstanding shall be converted into an option relating to shares of Acquiror Common Shares upon the same terms and conditions as are in effect with respect to such option immediately prior to the First Effective Time (each, a “ Acquiror Option ”) except that (a) each such Acquiror Option shall relate to that whole number of Acquiror Common Shares (rounded down to the nearest whole share) equal to the number of shares of the Company’s Common Stock subject to such Option multiplied by the Merger Consideration Per Fully Diluted Share and (b) the exercise price per share for each such Acquiror Option shall be equal to the exercise price per share of such Option in effect immediately prior to the First Effective Time divided by the Merger Consideration Per Fully Diluted Share(the exercise price per share, as so determined, being rounded up to the nearest full cent).

(b) Prior to the First Effective Time, the Company shall take commercially reasonable actions so that any Option which is held by a former employee or former service provider to the Company or any Affiliate is exercised or cancelled not later than immediately prior to the First Effective Time and, to the extent that any such option is not so exercised or cancelled, such Option shall be converted automatically into the right

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to receive a cash payment equal to the product of (a) the excess of $10.00 over the per-share exercise of the options and (b) the number of shares of the Company’s Common Stock subject to the vested portion of the Option (such amount to be paid as soon as practicable following the First Effective Time, less applicable withholdings).

Section 3.3    Treatment of Company Warrants .

(a) Immediately prior to the First Effective Time, all warrants to purchase shares of Company Common Stock (the “ Company Warrants ”) as of immediately preceding the First Effective Time, shall, if such Company Warrants have a per share exercise price less than the value of the Merger Consideration Per Fully Diluted Share (as calculated by multiplying the number of Acquiror Common Shares comprising the Merger Consideration Per Fully Diluted Share by $10.00 (such result, the “ Per-Share Dollar Value ”)) (any such Company Warrant being referred to herein as “ In The Money ”), cease to represent a right to acquire shares of the Company’s Capital Stock and shall be converted, immediately prior to the First Effective Time, into shares of the applicable class of the Company’s Capital Stock (as prescribed in the relevant underlying warrant agreement) according to a Net Issue Exercise, in all cases pursuant to a consent and conversion agreement, as agreed in good faith between the parties hereto and the holder of any such Company Warrant (each a “ Conversion Agreement ”).

(b) Immediately prior to the First Effective Time, all agreements granting such Company Warrants (each a “ Company Warrant Agreement ”), shall be terminated. In addition, and pursuant to each Company Warrant Agreement, all Company Warrants with any exercise price in equal to or greater than the Per-Share Dollar Value, shall cease to represent a right to acquire shares of Company Common Stock and shall be cancelled, and each Company Warrant Agreement covering such Company Warrants shall be terminated and each holder of such Company Warrants shall not have a right to acquire shares of the Company’s Capital Stock or Acquiror Common Shares.

(c) Notwithstanding the foregoing, each Company Warrant listed on Section 3.3(c) of the Company Disclosure Letter (each, a “ Specified Warrant ”) shall be treated according this Section 3.3(c) , and not pursuant to the terms of subsections (a) or (b) above. As of the First Effective Time, in accordance with the terms of the Specified Warrant Agreement, (i) each Specified Warrant that is then-outstanding shall be surrendered by the holder thereof to the Company, and the Company shall cancel such Specified Warrants, and (ii) as of the Closing Acquiror shall issue warrants relating to shares of Acquiror Common Shares upon the terms and subject to the conditions as are set forth in the Specified Warrant Agreement.

Section 3.4    Payment and Exchange of Certificates .

(a) Payment of Merger Consideration and other Transaction-Related Payments .

(i) Deposit with Exchange Agent . Immediately prior to the First Effective Time, Acquiror shall deposit with an exchange agent (the “ Exchange Agent ”) selected by the Company and reasonably acceptable to Acquiror, (1) the number of shares of Acquiror Common Stock equal to the Merger Consideration due to holders of Capital Stock (including Company Warrants other than Specified Warrants) minus (2) the Indemnification Escrow Amount.

(ii) Deposit with Escrow Agent . Immediately prior to the First Effective Time, Acquiror shall deposit with the Escrow Agent the Indemnification Escrow Amount.

(b) After the First Effective Time, (i) each Pre-Closing Holder of an outstanding certificate or certificates for Capital Stock (other than Company Warrants which have been converted to Capital Stock pursuant to Section 3.3(a) , and Excluded Shares) (collectively, the “ Certificates ”), upon surrender of such Certificates to the Exchange Agent, (ii) and each holder of Company Warrants, upon delivery of a Conversion Agreement or a Specified Conversion Agreement to the Exchange Agent, shall be entitled to receive from the Exchange Agent in exchange therefor (subject to the provisions of Section 3.7 ) such portion of the Merger Consideration into which such holder’s Capital Stock (other than Excluded Shares) or Company Warrants shall have been converted as a result of the First Merger; provided , however , that a portion of the Merger Consideration that is payable to each Escrow Stockholders that is equal to the product of the Indemnification Escrow Amount multiplied by such holder’s Applicable Percentage shall be held in escrow in accordance with Section 3.4(a)(ii) and the Escrow Agreement. Pending such surrender and

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exchange of a Pre-Closing Holder’s Certificate(s), a holder’s Certificate(s) shall be deemed for all purposes to evidence such holder’s right to receive the portion of the Merger Consideration into which such shares of Capital Stock (other than Excluded Shares) shall have been converted by the First Merger.

Section 3.5    Estimated Closing Amounts .   Not less than two (2) Business Days prior to the Closing Date and in no event more than ten (10) Business Days prior to the Closing Date, the Company shall deliver to Acquiror a written statement signed by the Chief Financial Officer of the Company setting forth (a) its good faith estimate of (i) Indebtedness of the Company (“ Estimated Closing Date Indebtedness ”), (ii) Cash and Cash Equivalents of the Company (“ Estimated Closing Date Cash ”) and (iii) unpaid Transaction Expenses (“ Estimated Closing Date Unpaid Transaction Expenses ”), in each case, calculated as of the close of business on the Closing Date without giving effect to the consummation of the First Merger or any financing transactions in connection therewith.

Section 3.6    Final Calculation of Closing Date Indebtedness, Closing Date Cash and Closing Date Unpaid Transaction Expenses .

(a) As soon as reasonably practicable following the Closing Date, and in any event within sixty (60) calendar days thereof, the GPIAC-Designated Directors (or appointed representatives thereof) shall prepare (and Acquiror shall, and shall cause its Subsidiaries and Affiliates to, assist the GPIAC-Designated Directors and their representatives in preparing, as required) and deliver to the Holder Representative (i) a calculation of the aggregate amount of all Indebtedness of the Company (“ Closing Date Indebtedness ”), (ii) a calculation of Cash and Cash Equivalents of the Company (“ Closing Date Cash ”) and (iii) a calculation of unpaid and accrued Transaction Expenses (“ Closing Date Unpaid Transaction Expenses ”), in each case, calculated as of the close of business on the Closing Date without giving effect to the consummation of the Mergers or any financing transactions in connection therewith or, after the First Effective Time, any other action or omission by Acquiror, the First-Step Surviving Corporation, the Surviving Corporation or any of their respective Subsidiaries that is not in the ordinary course of business consistent with past practice (such delivered statement, the “ Acquiror Closing Calculation Statement ”). Following the Closing, Acquiror shall, and shall cause its Subsidiaries and Affiliates to, provide the GPIAC-Designated Directors and the Holder Representative and their respective representatives access to the records, properties, personnel and (subject to the execution of customary work paper access letters if requested) auditors of the Company and its Subsidiaries relating to the preparation of the Company’s Financial Statements and calculations of Estimated Closing Date Indebtedness, Estimated Closing Date Cash and Estimated Closing Date Unpaid Transaction Expenses and shall cause the personnel of the Company and its Subsidiaries to reasonably cooperate with the GPIAC-Designated Directors, the Holder Representative and their respective representatives in connection with their review of the Company’s Indebtedness, Cash and Cash Equivalents and unpaid Transaction Expenses, in each case, calculated as of the close of business on the Closing Date.

(b) If the Holder Representative shall disagree with the calculation of Closing Date Indebtedness, Closing Date Cash and/or Closing Date Unpaid Transaction Expenses, it shall notify the GPIAC-Designated Directors of such disagreement in writing, setting forth in reasonable detail the particulars of such disagreement, within forty-five (45) days after its receipt of the Acquiror Closing Calculation Statement. In the event that the Holder Representative does not provide such a notice of disagreement within such forty-five (45) day period, the Holder Representative shall be deemed to have accepted the calculation of Closing Date Indebtedness, Closing Date Cash and Closing Date Unpaid Transaction Expenses delivered by the GPIAC-Designated Directors, which shall be final, binding and conclusive for all purposes hereunder. In the event any such notice of disagreement is timely provided, the GPIAC-Designated Directors and the Holder Representative shall use reasonable best efforts for a period of thirty (30) days (or such longer period as they may mutually agree) to resolve any such disagreements specified in such notice. If, at the end of such period, they are unable to resolve such disagreements, then Ernst & Young (or such independent accounting or financial consulting firm of recognized national standing as may be mutually selected by the GPIAC-Designated Directors and the Holder Representative) (the “ Auditor ”) shall resolve any remaining disagreements. Each of the GPIAC-Designated Directors and the Holder Representative shall promptly provide their assertions regarding such disagreements in writing to the Auditor and to each other. The Auditor shall be instructed to render its determination with respect to such disagreements as soon as reasonably possible (which the parties hereto agree should not be later than ninety (90) days following the day on which any such disagreements are referred to the Auditor). The Auditor shall

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base its determination solely on (i) the written submissions of the parties and shall not conduct an independent investigation and (ii) the extent (if any) to which the Closing Date Indebtedness, Closing Date Cash and/or Closing Date Unpaid Transaction Expenses require adjustment (only with respect to the remaining disagreements submitted to the Auditor) in order to be determined in accordance with Section 3.6(a) (including the definitions of the defined terms used in Section 3.6(a) ). The determination of the Auditor shall be final, conclusive and binding on the parties. The date on which Closing Date Indebtedness, Closing Date Cash and Closing Date Unpaid Transaction Expenses are finally determined in accordance with this Section 3.6(b) is hereinafter referred to as the “ Determination Date .” All fees and expenses of the Auditor relating to the work, if any, to be performed by the Auditor hereunder shall be borne by Acquiror.

(c) If, on the Determination Date, (i) Estimated Closing Date Indebtedness, minus Closing Date Indebtedness (as finally determined in accordance with Section 3.6(b) ), plus (ii) Closing Date Cash (as finally determined in accordance with Section 3.6(b) ), minus Estimated Closing Date Cash, plus (iii) Estimated Closing Date Unpaid Transaction Expenses, minus Closing Date Unpaid Transaction Expenses (as finally determined in accordance with Section 3.6(b) ) is a negative number, then the GPIAC Indemnified Parties shall be entitled to indemnification in respect of the absolute value of such negative number (the “ Deficit Amount ”) in accordance with Article XII .

Section 3.7    Exchange Agent .   Promptly following the date that is one year after the First Effective Time, Acquiror shall instruct the Exchange Agent to deliver to Acquiror all cash, Certificates and other documents in its possession relating to the transactions contemplated hereby, and the Exchange Agent’s duties shall terminate. Thereafter, each Pre-Closing Holder of a Certificate (in respect of shares of Capital Stock other than Excluded Shares) who has not delivered a Certificate may surrender such Certificate, and each former holder of Company Warrants who has not delivered a Conversion Agreement or a Specified Conversion Agreement may deliver such Conversion Agreement or Specified Conversion Agreement, to Acquiror and (subject to applicable abandoned property, escheat and similar Laws) receive in consideration therefor, and Acquiror shall promptly deliver, the portion of the Merger Consideration deliverable in respect thereof as determined in accordance with this Article III without any interest thereon. None of Acquiror, Merger Sub, the Company, the First-Step Surviving Corporation, the Surviving Corporation or the Exchange Agent shall be liable to any Person in respect of any Merger Consideration delivered to a public official pursuant to and in accordance with any applicable abandoned property, escheat or similar Laws. If any Certificate shall not have been surrendered immediately prior to such date on which any amounts payable pursuant to this Article III would otherwise escheat to or become the property of any Governmental Authority, any such amounts shall, to the extent permitted by applicable Law, become the property of the Surviving Corporation, free and clear of all claims or interest of any Person previously entitled thereto.

Section 3.8    Lost Certificate .   In the event any Certificate has been lost, stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed and, if reasonably required by Acquiror or the Exchange Agent, the posting by such Person of a bond, in such customary amount as Acquiror or the Exchange Agent may direct, as indemnity against any claim made against it with respect to such Certificate, the Exchange Agent shall issue, in exchange for such lost, stolen or destroyed Certificate, the Merger Consideration deliverable in respect thereof as determined in accordance with this Article III .

Section 3.9    Withholding .   Notwithstanding any other provision to this Agreement, Acquiror, the Company, the Exchange Agent and the Escrow Agent shall be entitled to deduct and withhold from the cash otherwise deliverable under this Agreement, and from any other consideration otherwise paid or delivered in connection with the transactions contemplated in this Agreement, to any Person such amounts that Acquiror, the Company, the Exchange Agent and the Escrow Agent are required to deduct and withhold with respect to any such deliveries and payments under the Code or any provision of Law. To the extent that amounts are so deducted and withheld and duly deposited with the appropriate Governmental Authority by Acquiror, the Company, the Exchange Agent or the Escrow Agent, such deducted and withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect of which such deduction and withholding was made.

Section 3.10    Dissenting Shares .   If, pursuant to the terms of NRS 92A.300 through 92A.500, holders of Capital Stock are entitled to dissenter’s rights, then notwithstanding anything in this Agreement to the contrary, shares of Capital Stock issued and outstanding immediately prior to the First Effective Time that are held by any holder who has not voted such Capital Stock in favor of the First Merger or consented thereto in writing and who shall have properly demanded and perfected dissenter’s rights under NRS 92A.300 through 92A.500, inclusive (“ Dissenting Shares ”) shall not be converted into the right to receive the applicable portion of the Merger Consideration as

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determined pursuant to Section 3.1(e), but instead shall be entitled to receive such payment from the Surviving Corporation with respect to such Dissenting Shares as shall be determined pursuant to the NRS; provided , however , that if such holder shall have failed to perfect or shall have effectively withdrawn or otherwise lost such holder’s right to dissent and demand payment of fair value under the NRS, each such share of Capital Stock held by such holder shall thereupon be deemed to have been converted into, as of the First Effective Time, the right to receive, without any interest thereon, the applicable portion of the Merger Consideration as determined pursuant to Section 3.1(e) , and each such share of Capital Stock shall no longer be a Dissenting Share. The Company shall give prompt notice to Acquiror of any written demands received by the Company for payment of the fair value (as defined in NRS 92A.320) in respect of any shares of Capital Stock and attempted withdrawals of such demands and any other instruments served pursuant to NRS 92A.440 and received by the Company, and Acquiror shall have the right to participate in all negotiations and proceedings with respect to such demands. The Company shall not, except with the prior written consent of Acquiror, voluntarily make or agree to make any payment with respect to any demands for appraisals of shares of Capital Stock, offer to settle or settle any demands or approve any withdrawal of any such demands.

Section 3.11    Closing of Transfer Books .   At the First Effective Time, the stock transfer books of the Company shall be closed and there shall be no further registration of transfers of Capital Stock thereafter on the records of the Company.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

Except as set forth in the disclosure letter delivered to Acquiror and Merger Sub by the Company on the date of this Agreement (the “ Company Disclosure Letter ”) to this Agreement, (each section of which, subject to Section 13.9 , qualifies the correspondingly numbered and lettered representations in this Article IV ) the Company represents and warrants to Acquiror and Merger Sub as of the date of this Agreement as follows:

Section 4.1    Corporate Organization of the Company .   The Company has been duly incorporated and is validly existing as a corporation in good standing under the NRS and has the corporate power and authority to own or lease all of its properties and assets and to conduct its business as it is now being conducted. The copies of the certificate of incorporation and bylaws of the Company, in each case, as amended to the date of this Agreement, previously made available by the Company to Acquiror are true, correct and complete. The Company is duly licensed or qualified and in good standing as a foreign corporation in each jurisdiction in which the ownership of its property or the character of its activities is such as to require it to be so licensed or qualified, except where the failure to be so licensed or qualified would not have, or would not reasonably be expected to have, individually or in the aggregate a Company Material Adverse Effect.

Section 4.2    Subsidiaries .   A complete list of each Subsidiary of the Company and its jurisdiction of incorporation, formation or organization, as applicable, is set forth on Section 4.2 of the Company Disclosure Letter. The Subsidiaries have been duly formed or organized and are validly existing under the laws of their jurisdiction of incorporation or organization and have the requisite power and authority to own or lease all of their properties and assets and to conduct their business as it is now being conducted. The Company has previously provided to Acquiror true, correct and complete copies of the organizational documents of its Subsidiaries, in each case, as amended to the date of this Agreement. Each Subsidiary is duly licensed or qualified and in good standing as a foreign or extra-provincial corporation (or other entity, if applicable) in each jurisdiction in which its ownership of property or the character of its activities is such as to require it to be so licensed or qualified or in good standing, as applicable, except where the failure to be so licensed or qualified or in good standing would not have, or would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.3    Due Authorization .

(a) The Company has all requisite corporate power and authority to execute and deliver this Agreement and (subject to the approvals described in Section 4.5 ) to consummate the transactions contemplated hereby and to perform all of its obligations hereunder. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized and approved by the Board of Directors, and no other corporate proceeding on the part of the Company is necessary to authorize this Agreement (other than the approval of the First Merger by the Company’s stockholders, in accordance with the Company’s certificate of incorporation). This Agreement

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has been duly and validly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity.

(b) On or prior to the date of this Agreement, the Board of Directors of the Company has duly adopted resolutions (i) determining that this Agreement and the transactions contemplated by this Agreement are advisable and fair to, and in the best interests of the Company and its stockholders, (ii) authorizing and approving the execution, delivery and performance of this Agreement and the transactions contemplated hereby by the stockholders of the Company, (iii) directing that the adoption of this Agreement and the transactions contemplated hereby be submitted to a vote at the Company Stockholders’ Meeting and (iv) resolving to recommend that the stockholders of the Company entitled to vote thereon approve and adopt this Agreement. No other corporate action is required by the Company or its stockholders to enter into this Agreement or approve the First Merger, other than the Company Stockholder Approvals.

(c) Assuming the performance in accordance with the terms of the Transaction Support and Voting Agreement of each of the Stockholders named therein, at the Company Stockholders’ Meeting the Company Stockholder Approvals shall be obtained.

Section 4.4    No Conflict .   Subject to the Company Stockholder Approvals, the execution and delivery of this Agreement by the Company and the consummation of the transactions contemplated hereby do not and will not (a) violate or conflict with any provision of, or result in the breach of, or default under the certificate of incorporation, bylaws or other organizational documents of the Company or any of its Subsidiaries, (b) violate or conflict with any provision of, or result in the breach of, or default under any applicable Law or Governmental Order (nor, with respect to any Governmental Order, give any Person the right to obtain any relief or exercise any remedy thereunder), (c) violate or conflict with any provision of, or result in the breach of, or default under Contract required to be disclosed in Section 4.12(a) of the Company Disclosure Letter to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries may be bound, or terminate or result in the termination of any such Contract, or (d) result in the creation of any Lien upon any of the properties or assets of the Company or any of its Subsidiaries, or constitute an event which, after notice or lapse of time or both, would result in any such violation, conflict, default, breach, termination or creation of a Lien or result in a violation or revocation of any required license, permit or approval from any Governmental Authority or other Person, except, in the case of clauses (b) through (d), to the extent that the occurrence of any of the foregoing would not have, or would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.5    Governmental Authorities; Consents .   Assuming the truth and completeness of the representations and warranties of Acquiror contained in this Agreement, no consent, waiver, approval or authorization of, or designation, declaration or filing with, or notification to, any Governmental Authority is required on the part of the Company or any of its Subsidiaries with respect to the Company’s execution or delivery of this Agreement or the consummation of the transactions contemplated hereby, except for (i) applicable requirements of the HSR Act or any similar foreign Law; (ii) any consents, approvals, authorizations, designations, declarations or filings, the absence of which would not have, or would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect; and (iii) the filing of the appropriate Certificates of Merger in accordance with the DGCL and NRS.

Section 4.6    Capitalization of the Company .

(a) The authorized capital stock of the Company consists of 500,000,000 shares of Common Stock, of which no shares are issued and outstanding as of the date of this Agreement, 500,000,000 shares of Class A Common Stock, of which 368,170 shares are issued and outstanding as of the date of this Agreement, 192,000,000 shares of Class B Common Stock, of which 101,828,700 shares are issued and outstanding as of the date of this Agreement, 100,486,496 shares of Preferred Stock, of which 5,499,900 Series A Preferred Stock shares are issued and outstanding as of the date of this Agreement, 38,545,560 Series B Preferred Stock shares are issued and outstanding as of the date of this Agreement and 56,441,036 Series C Preferred Stock shares are issued and outstanding as of the date of this Agreement. All of the issued and outstanding shares of Common Stock and Preferred Stock have been duly authorized and validly issued and are fully paid and nonassessable.

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(b) Except as set forth on Section 4.6(b) of the Company Disclosure Letter, the Company has not granted any outstanding options, stock appreciation rights, warrants, rights or other securities convertible into or exchangeable or exercisable for shares of the Common Stock, or any other commitments or agreements providing for the issuance of additional shares, the sale of treasury shares, for the repurchase or redemption of shares of Common Stock or the value of which is determined by reference to the Common Stock, and there are no agreements of any kind which may obligate the Company to issue, purchase, redeem or otherwise acquire any of its Common Stock. No equity or equity-based compensation has been granted by the Company or an Affiliate other than pursuant to the Company Incentive Plans.

Section 4.7    Capitalization of Subsidiaries .

(a) The outstanding shares of capital stock of each of the Company’s Subsidiaries have been duly authorized and validly issued and are fully paid and nonassessable.

(b) Except as set forth on Section 4.7(b) of the Company Disclosure Letter, the Company or one or more of its wholly owned Subsidiaries collectively own of record and beneficially all the issued and outstanding shares of capital stock of such Subsidiaries free and clear of any Liens other than Permitted Liens.

(c) For each of the Company’s Subsidiaries not so wholly owned by the Company or one or more of its Subsidiaries, Section 4.7(c) of the Company Disclosure Letter sets forth the number of all issued and outstanding securities, including shares of each class of capital stock or equity interests, the names of the holders thereof and the number of shares or equity interests held by each holder of such Subsidiary. Except as set forth on Section 4.7(c) of the Company Disclosure Letter, there are no outstanding subscriptions, options, warrants, rights or other securities exercisable or exchangeable for any capital stock of such Subsidiaries, any other commitments, calls, conversion rights, rights of exchange or privilege (whether pre-emptive, contractual or by matter of Law), plans or other agreements of any character providing for the issuance of additional shares, the sale of treasury shares or other equity interests, or for the repurchase or redemption of shares or other equity interests of such Subsidiaries’ capital stock, or any voting trusts, proxies or agreements of any kind which may obligate any Subsidiary of the Company to issue, purchase, register for sale, redeem or otherwise acquire any of its capital stock.

Section 4.8    Financial Statements .

(a) Attached as Section 4.8(a) of the Company Disclosure Letter are true and complete copies of the audited consolidated balance sheets and statements of operations and comprehensive loss, cash flow and stockholders’ deficit of the Company and its Subsidiaries as of and for the years ended December 31, 2015 and December 31, 2014, together with the auditor’s reports thereon (the “ Audited Financial Statements ” and, collectively with the 2016 Financial Statements and the Q1 Financial Statements (as defined in, and to be delivered in accordance with, Section 6.6 ), the “ Financial Statements ”).

(b) Except as set forth on Section 4.8(b) of the Company Disclosure Letter, the Audited Financial Statements and, when delivered pursuant to Section 6.6 , the Q1 Financial Statements and the 2016 Financial Statements, (i) fairly present in all material respects the consolidated financial position of the Company and its consolidated Subsidiaries, as at the respective dates thereof, and the consolidated results of their operations, their consolidated incomes, their consolidated changes in stockholders’ equity (with respect to the Audited Financial Statements only) and their consolidated cash flows for the respective periods then ended (subject, in the case of the Q1 Financial Statements, to normal year-end adjustments and the absence of footnotes), (ii) were prepared in conformity with GAAP applied on a consistent basis during the periods involved (except as may be indicated therein or in the notes thereto and, in the case of the Q1 Financial Statements, the absence of footnotes or the inclusion of limited footnotes), and (iii) were prepared from, and are in accordance with, the books and records of the Company and its consolidated Subsidiaries and (iv) when delivered by the Company for inclusion in the Registration Statement for filing with the SEC following the date of this Agreement in accordance with Section 6.6 , will comply in all material respects with the applicable accounting requirements and with the rules and regulations of the SEC, the Exchange Act and the Securities Act in effect as of the respective dates thereof. The books and records of the Company and its Subsidiaries have been, and are being, maintained in all material respects in accordance with GAAP and any other applicable legal and accounting requirements.

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Section 4.9    Undisclosed Liabilities .   Except as set forth on Section 4.9 of the Company Disclosure Letter, as of the date of this Agreement, there is no liability, debt or obligation of, or claim or judgment against, the Company or any of its Subsidiaries, (whether direct or indirect, absolute or contingent, accrued or unaccrued, known or unknown, liquidated or unliquidated, or due or to become due), except for liabilities, debts, obligations, claims or judgments (i) reflected or reserved for on the Financial Statements or disclosed in the notes thereto, (ii) that have arisen since the date of the most recent balance sheet included in the Financial Statements in the ordinary course of the operation of business, consistent with past practice, of the Company and its Subsidiaries, or (iii) which would not have, or would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

Section 4.10    Litigation and Proceedings .   Except (i) as set forth on Section 4.10 of the Company Disclosure Letter and (ii) Actions relating to Taxes (as to which certain representations and warranties are made pursuant to Section 4.15 ), as of the date of this Agreement, there are no pending or, to the knowledge of the Company, threatened, lawsuits, actions, suits, judgments, claims or other proceedings at law or in equity before any Governmental Authority (collectively, “ Legal Proceedings ”) against the Company or any of its Subsidiaries or, to the knowledge of the Company, any of their respective directors, officers or employees (in their capacity as such). As of the date of this Agreement, no investigations or other inquiries are pending or, to the knowledge of the Company, threatened by any Governmental Authority, against Company or any of its Subsidiaries, or, to the knowledge of the Company, any of their respective officers, directors or employees (in their capacity as such). All pending Legal Proceedings against the Company or any of its Subsidiaries or, to the knowledge of the Company, any of their respective directors, officers or employees (in their capacity as such) are fully covered (subject to applicable deductibles or self-insured retention amount) by a valid and fully-paid insurance policy, with the exception of any contractually required deductible or contribution by the Company. There is no outstanding Governmental Order imposed upon the Company or any of its Subsidiaries; nor are any assets of the Company’s or its Subsidiaries respective business, bound or subject to any Governmental Order.

Section 4.11    Legal Compliance .   Each of the Company and its Subsidiaries is in compliance with all applicable Laws in all material respects.

Section 4.12    Contracts; No Defaults .

(a) Section 4.12(a) of the Company Disclosure Letter contains a listing of all Contracts described in clauses (i) through (xxii) below to which, as of the date of this Agreement, the Company or any of its Subsidiaries is a party. True, correct and complete copies of the Contracts listed on Section 4.12(a) of the Company Disclosure Letter have been delivered to or made available to Acquiror or its agents or representatives, together with all amendments thereto.

(i) Any Contract with any of the Top Customers or Top Vendors;

(ii) Each note, debenture, other evidence of indebtedness, guarantee, loan, credit or financing agreement or instrument or other contract for money borrowed by the Company or any of its Subsidiaries, including any agreement or commitment for future loans, credit or financing;

(iii) Each Contract for the acquisition of any Person or any business unit thereof or the disposition of any material assets of the Company or any of its Subsidiaries (other than in the ordinary course of business), in each case, involving payments in excess of $1,000,000, other than Contracts in which the applicable acquisition or disposition has been consummated and there are no material obligations ongoing;

(iv) Each lease, rental or occupancy agreement, license, installment and conditional sale agreement, and other Contract that provides for the ownership of, leasing of, title to, use of, or any leasehold or other interest in any real or personal property and involves aggregate payments in excess of $100,000 in any calendar year;

(v) Each Contract involving the formation of a joint venture, partnership, or limited liability company;

(vi) Any Contract between the Company or any of its Subsidiaries;

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(vii) Contracts with each current officer, director, or current employee or worker of or consultant to the Company or any of its Subsidiaries, who receives annual base compensation (excluding bonus and other benefits) in excess of $200,000;

(viii) Contracts with any employee or consultant of the Company or any of its Subsidiaries that provide for change in control, retention or similar payments or benefits contingent upon, accelerated by or triggered by the consummation of the transactions contemplated by this Agreement;

(ix) Contracts containing covenants of the Company or any of its Subsidiaries prohibiting or limiting the right of the Company or any of its Subsidiaries to engage in or compete with any Person in any line of business or prohibiting or restricting the Company’s and its Subsidiaries’ ability to conduct their business in all material respects with any Person in any geographic area;

(x) Any Contracts either (x) to which the Company is a party or (y) to the knowledge of the Company, and relating to the voting of the equity interests or the election of directors, officers or managers, as applicable, of the Company or any of its Subsidiaries, or granting a right of first refusal, first offer or similar preferential right to purchase or acquire equity interests of the Company or any of its Subsidiaries;

(xi) Any collective bargaining agreement or Contract between the Company, on one hand, and any labor union, works council or other body representing employees of the Company or any of its Subsidiaries on the other hand;

(xii) Each Contract (including license agreements, coexistence agreements, and agreements with covenants not to sue) pursuant to which the Company or any of its Subsidiaries (i) grants to a third Person the right to use material Intellectual Property of the Company and its Subsidiaries, or (ii) is granted by a third Person the right to use Intellectual Property that is material to the Company and its Subsidiaries (in each case other than Contracts containing nonexclusive rights to Intellectual Property granted or received by the Company and its Subsidiaries in the ordinary course of business);

(xiii) Each Contract requiring capital expenditures after the date of this Agreement in an amount in excess of $500,000 in any calendar year;

(xiv) Any Contract that (A) grants to any third Person any “most favored nation rights” or (B) grants to any third Person price guarantees for a period greater than one year from the date of this Agreement and requires aggregate future payments to the Company or any of its Subsidiaries in excess of $100,000 per annum;

(xv) Contracts granting to any Person (other than the Company or one of its Subsidiaries) a right of first refusal, first offer or similar preferential right to purchase or acquire equity interests in the Company or any of its Subsidiaries;

(xvi) Any Contract entered into in the last twelve (12) months reflecting the settlement of any Legal Proceedings, other than (A) releases immaterial in nature or amount entered into with former employees or independent contractors of the Company or any of its Subsidiaries, in the ordinary course of business consistent with past practice with the routine cessation of such employee’s or independent contractor’s employment or service, as applicable, with the Company or any of its Subsidiaries, (B) Contracts reflecting the settlement of any Legal Proceedings in which the liability is covered by insurance, or (C) settlement Contracts for cash only (which have been paid) that do not exceed $150,000;

(xvii) Any Contract providing for liquidated or stipulated damages in excess of $1,000,000 that may become payable by the Company or any of its Subsidiaries;

(xviii) Any power of attorney or agency agreement to which the Company or any of its Subsidiaries is a party (other than powers of attorney granted to local attorneys, agents or accountants or their respective firms for the purposes of registrations, filings or corporate formation, tax filings or administration matters for corporate entities) involving any payments by the Company;

(xix) Any stockholders agreement(s) of the Company or any of its Subsidiaries;

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(xx) Contracts relating to the voting of the equity interests or the election of directors, officers or managers, as applicable, of the Company or any of its Subsidiaries;

(xxi) Any Contract providing for indemnification (including any obligation to advance funds for expenses) by the Company of the current or former directors or officers of the Company or any of its Subsidiaries; and

(xxii) Contracts involving the profit sharing of the Company or any of its Subsidiaries in excess of $100,000 in any given year.

(b) As of the date of this Agreement, all of the Contracts listed pursuant to Section 4.12(a) are (i) in full force and effect and (ii) represent the legal, valid and binding obligations of the Company or one of its Subsidiaries party thereto and, to the knowledge of the Company, represent the legal, valid and binding obligations of the counter parties thereto. Except, in each case, where the occurrence of such breach or default would not have, or would not reasonably be expected to have, a Company Material Adverse Effect, (x) the Company and its Subsidiaries have performed in all material respects all respective obligations required to be performed by them to date under such Contracts listed pursuant to Section 4.12(a) and neither the Company, any of its Subsidiaries nor, to the knowledge of the Company, any other party thereto is in material breach of or default under any such Contract, (y) as of the date of this Agreement, neither the Company nor any of its Subsidiaries has received any claim or notice of termination or breach of or default under any such Contract, and (z) to the knowledge of the Company, no event has occurred which individually or together with other events, would reasonably be expected to result in a breach of or a default under any such Contract (in each case, with or without notice or lapse of time or both).

Section 4.13    Company Benefit Plans .

(a) Section 4.13(a) of the Company Disclosure Letter sets forth a complete list of each “employee benefit plan” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended, (“ ERISA ”) and any other plan, policy, program or agreement (including without limitation, any employment, severance, retention, change in control or similar agreement) providing compensation or other benefits to any current or former director, officer, individual consultant or employee, which are maintained, sponsored or contributed to by the Company or any of its ERISA Affiliates, or to which the Company or any ERISA Affiliate is a party or has or may have any liability (each, a “ Company Benefit Plan ”). The Company has delivered to Acquiror complete copies of (i) each Company Benefit Plan (or, if not written a written summary of its material terms), including without limitation all plan documents, trust agreements, insurance contracts or other funding vehicles and all amendments thereto, (ii) all summaries and summary plan descriptions, including any summary of material modifications (iii) the most recent annual reports (Form 5500 series) filed with the IRS with respect to such Company Benefit Plan, (iv) the most recent actuarial report or other financial statement relating to such Company Benefit Plan, and (v) the most recent determination or opinion letter, if any, issued by the IRS with respect to any Company Benefit Plan and any pending request for such a determination letter.

(b) Except as set forth on Section 4.13(b) of the Company Disclosure Letter, (i) each Company Benefit Plan has been operated and administered in material compliance with its terms and all applicable Laws, including ERISA and the Code; (ii) all contributions required to be made with respect to any Company Benefit Plan on or before the date hereof have been made and all obligations in respect of each Company Benefit Plan as of the date hereof have been accrued and reflected in the Company’s financial statements to the extent required by GAAP; and (iii) each Company Benefit Plan which is intended to be qualified within the meaning of Section 401(a) of the Code (A) has received a favorable determination or opinion letter as to its qualification, (B) has been established under a standardized master and prototype or volume submitter plan for which a current favorable Internal Revenue Service advisory letter or opinion letter has been obtained by the plan sponsor and is valid as to the adopting employer, or (C) has time remaining under applicable Laws to apply for a determination or opinion letter or to make any amendments necessary to obtain a favorable determination or opinion letter. Each Option is exempt from the application of the provisions of Section 409A of the Code.

(c) No Company Benefit Plan is a multiemployer pension plan (as defined in Section 3(37) of ERISA) (a “ Multiemployer Plan ”) or other pension plan that is subject to Title IV of ERISA (“ Title IV Plan ”) and

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neither the Company nor any of its ERISA Affiliates has sponsored or contributed to or been required to contribute to a Multiemployer Plan or Title IV Plan at any time within the previous six (6) years. Neither the Company nor any ERISA Affiliates has incurred any withdrawal liability under Section 4201 of ERISA.

(d) With respect to the Company Benefit Plans, no actions, suits or claims (other than routine claims for benefits in the ordinary course) are pending or, to the knowledge of the Company, threatened, and to the knowledge of the Company, no facts or circumstances exist that would reasonably be expected to give rise to any such actions, suits or claims.

(e) No Company Benefit Plan provides medical, surgical, hospitalization, death or similar benefits (whether or not insured) for employees or former employees of the Company or any Subsidiary for periods extending beyond their retirement or other termination of service, other than (i) coverage mandated by applicable Law, (ii) death benefits under any “pension plan,” or (iii) benefits the full cost of which is borne by the current or former employee (or his beneficiary). No condition exists that would prevent the Company or any Subsidiary from amending or terminating any Company Benefit Plan providing health or medical benefits in respect of any active employee of the Company or any Subsidiary other than limitations imposed under the terms of collective bargaining agreement.

(f) Except as set forth on Section 4.13(f) of the Company Disclosure Letter, the consummation of the transactions contemplated by this Agreement will not, either alone or in combination with another event (such as termination following the consummation of the transactions contemplated hereby), (i) entitle any current or former employee, officer or other service provider of the Company or any Subsidiary to any severance pay, unemployment compensation or any other payment, except as expressly provided in this Agreement or in the Company Disclosure Letter, or (ii) accelerate the time of payment or vesting, or increase the amount of compensation due any such employee, officer or other service provider. No amounts payable under the Company Benefit Plans will fail to be deductible for federal income tax purposes by virtue of Section 280G of the Code.

(g) With respect to each Company Benefit Plan subject to the laws of any jurisdiction outside the United States, (i) all employer contributions to each such Company Benefit Plan required by Law or by the terms of such Company Benefit Plan have been made and (ii) each such Company Benefit Plan required to be registered has been registered and has been maintained in good standing with applicable regulatory authorities. Each Company Benefit Plan subject to the laws of any jurisdiction outside the United States which provides retirement benefits is a defined contribution plan.

Section 4.14    Labor Relations; Employees .

(a) Except as set forth on Section 4.14(a) of the Company Disclosure Letter, neither the Company nor any of its Subsidiaries is a party to or bound by any collective bargaining agreement, works council agreement, or any similar agreement, no such agreement is being negotiated by the Company or any of its Subsidiaries, and no labor union has requested or, to the Company’s knowledge, has sought to represent any of the employees of the Company or its Subsidiaries. There is no strike, slowdown, work stoppage, lockout or other material labor dispute involving the Company or any Subsidiary pending, or to the Company’s knowledge threatened, nor is the Company aware of any labor organization activity involving any employees of the Company or any Subsidiary.

(b) The Company and its Subsidiaries (i) are in material compliance with all applicable Laws respecting labor and employment, including obligations under the National Labor Relations Act and any notice and other requirements under the Workers’ Adjustment and Retraining Notification Act and any similar state or local law; (ii) has not committed any unfair labor practices, (iii) has no material pending or threatened claims or controversies regarding employment, terms of employment or termination of employment.

(c) To the knowledge of the Company, no employee of the Company or any of its Subsidiaries with annual base salary in excess of $200,000 intends to terminate his or her employment.

(d) The Contracts listed on Section 4.14(d) of the Company Disclosure Letter include all individual written employment, consulting, retention, change in control bonus or severance agreements to which, as of the date of this Agreement, either the Company or any of its Subsidiaries is a party with respect to any

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current employee whose base salary during the fiscal year ending December 31, 2016 exceeds $200,000 and which may not be terminated at will, or by giving notice of thirty (30) days or less, without cost or penalty. The Company has delivered or made available to Acquiror true, correct and complete copies of each such Contract, as amended to date.

(e) To the knowledge of the Company, no present or former employee or independent contractor of the Company or any of its Subsidiaries with annual base salary in excess of $200,000 is in violation of any term of any restrictive covenant, nondisclosure obligation or fiduciary duty (i) to the Company or any of its Subsidiaries or (ii) to a former employer or engager of any such individual relating to the right of any such individual to work for or provide services to the Company or any of its Subsidiaries.

(f) Neither the Company nor any of its Subsidiaries are “contractors” or “subcontractors” as defined by Executive Order 11246 or required to maintain an affirmative action plan.

Section 4.15    Taxes .

(a) All income and other material Tax Returns required to be filed by or with respect to the Company or any of its Subsidiaries have been timely filed (taking into account any applicable extensions), all such Tax Returns (taking into account all amendments thereto) are complete and accurate in all material respects and all income and other material Taxes due and payable (whether or not shown on any Tax Return) have been paid, other than Taxes being contested in good faith and for which adequate reserves have been established in accordance with GAAP.

(b) The Company and its Subsidiaries have withheld from amounts owing to any employee, creditor or other Person all material Taxes required by Law to be withheld, and has paid over to the proper Governmental Authority in a timely manner all such withheld amounts and has otherwise complied in all material respects with all applicable withholding and related reporting requirements.

(c) There are no Liens for any Taxes (other than Permitted Liens) upon any property or assets of the Company or any of its Subsidiaries.

(d) No deficiency for any amount of Tax has been asserted or assessed by any Governmental Authority in writing against the Company or any of its Subsidiaries that remains unpaid except for deficiencies being contested in good faith and for which adequate reserves have been established in accordance with GAAP.

(e) The Company and each of its Subsidiaries is registered for the purposes of sales Tax, use Tax, transfer Taxes, value added Taxes or any similar Tax in all jurisdictions where it is required by Law to be so registered, and has complied in all material respects with all Laws relating to such Taxes.

(f) There are no ongoing or pending Actions with respect to any Taxes of the Company or any of its Subsidiaries and there are no waivers, extensions or requests for any waivers or extensions of any statute of limitations currently in effect with respect to any Taxes of the Company or any of its Subsidiaries.

(g) Neither the Company nor any of its Subsidiaries has made a request for an advance tax ruling, request for technical advice, a request for a change of any method of accounting or any similar request that is in progress or pending with any Governmental Authority with respect to any Taxes.

(h) Neither the Company nor any of its Subsidiaries is a party to any Tax indemnification or Tax sharing agreement (other than any such agreement solely between the Company and/or its existing Subsidiaries and customary commercial contracts not primarily related to Taxes).

(i) Neither the Company nor any of its Subsidiaries has been a party to any transaction treated by the parties as a distribution of stock qualifying for tax-free treatment under Section 355 of the Code in the two years prior to the date of this Agreement.

(j) Neither the Company nor any of its Subsidiaries is liable for Taxes of any other Person (other than the Company or any of its Subsidiaries) under Treasury Regulation Section 1.1502-6 or any similar provision of state, local or foreign Tax Law or as a transferee or successor or by contract (other than customary commercial contracts not primarily related to Taxes).

(k) No written claim has been made by any Governmental Authority where the Company or any of its Subsidiaries does not file Tax Returns that it is or may be subject to taxation in that jurisdiction.

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(l) Neither the Company nor any of its Subsidiaries has participated in a “listed transaction” within the meaning of Treasury Regulation Section 1.6011-4(b)(2).

(m) Neither the Company nor any of its Subsidiaries is or has been a United States real property holding corporation (as defined in Section 897(c)(2) of the Code) during the applicable period specified in Section 897(c)(1)(ii) of the Code.

(n) The Company has not been, is not, and immediately prior to the First Effective Time will not be, treated as an “investment company” within the meaning of Section 368(a)(2)(F) of the Code.

(o) Neither the Company nor any of its Subsidiaries will be required, as a result of (i) a change in accounting method for a Tax period (or a portion thereof) ending on or before the Closing Date, except as required by applicable Laws, to include any adjustment under Section 481(c) of the Code (or any similar provision of state, local or foreign Law) in taxable income for any Tax period (or portion thereof) beginning after the Closing Date or (ii) (A) any “closing agreement” described in Section 7121 of the Code (or any similar provision of state, local or foreign Law) entered into on or before the Closing Date, (B) any installment sale or intercompany transaction described in the Treasury Regulations under Section 1502 of the Code entered into on or before the Closing Date or prepaid amount received outside the ordinary course of business on or before the Closing Date, or (C) an election pursuant to Section 108(i) of the Code (or any similar provision of state, local or foreign Law) made on or before the Closing Date, to include any material item of income or exclude any material item of deduction from Tax liability in any Tax period (or portion thereof), beginning after the Closing Date.

(p) Notwithstanding anything to the contrary herein, nothing in this Section 4.15 is or shall be construed as a representation or warranty with respect to (i) any transaction or event occurring or any Tax position that any Person may take, in each case, in respect of any Post-Closing Tax Period, or (ii) the amount, value or condition of, or any limitations on, any net operating losses, net capital losses, research and development, research and experimentation, investment, foreign or other Tax credits, basis and similar Tax assets and attributes, or the ability of Acquiror or any of its Affiliates to utilize such Tax assets and attributes in respect of any Post-Closing Tax Period.

Section 4.16    Brokers’ Fees .   Except as set forth on Section 4.16 of the Company Disclosure Letter, no broker, finder, investment banker or other Person is entitled to any brokerage fee, finders’ fee or other commission in connection with the transactions contemplated by this Agreement based upon arrangements made by the Company, any of its Subsidiaries or any of their Affiliates.

Section 4.17    Insurance .    Section 4.17 of the Company Disclosure Letter contains a list of all material policies or binders of property, fire and casualty, product liability, workers’ compensation, and other forms of insurance held by, or for the benefit of, the Company or any of its Subsidiaries as of the date of this Agreement. True correct and complete copies of such insurance policies as in effect as of the date hereof have been made available to Acquiror.

Section 4.18    Licenses, Permits and Authorizations .   The Company and its Subsidiaries have obtained all of the licenses, approvals, consents, registrations and permits necessary under applicable Laws to permit the Company and its Subsidiaries to own, operate, use and maintain their assets in the manner in which they are now operated and maintained and to conduct the business of the Company and its Subsidiaries as currently conducted, except where the absence of any such license, approval, consent, registration or permit would not, or would not reasonably be expected to, individually or in the aggregate, have a Company Material Adverse Effect. Each Permit held by the Company or any of its Subsidiaries, is valid, binding and in full force and effect. Neither the Company nor any of its Subsidiaries is in default or violation (and no event has occurred which, with notice or the lapse of time or both, would constitute a material default or violation) in any material respect of any term, condition or provision of any Permit to which it is a party.

Section 4.19    Equipment and Other Tangible Property .

(a) All material personal property and leased personal property assets of the Company and its Subsidiaries are structurally sound and in good operating condition and repair (ordinary wear and tear expected) and are suitable for their present uses.

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(b) The tangible and real property assets owned by or leased to the Company and its Subsidiaries as of the date of this Agreement, constitute substantially all tangible and real property assets necessary to operate the business in substantially the same manner and scope as the business (i) has been conducted during the previous twelve (12) months and (ii) is operated as of the date hereof and immediately prior to the Closing.

Section 4.20    Real Property .

(a) Neither the Company nor any of its Subsidiaries own any real property.

(b) Section 4.20(b) of the Company Disclosure Letter sets forth a true, accurate and complete list, as of the date of this Agreement, of all Leased Real Property and all Real Property Leases (as hereinafter defined) pertaining to such Leased Real Property. With respect to each parcel of Leased Real Property:

(i) The Company or one of its Subsidiaries holds a valid and existing leasehold estate in, and enjoys peaceful and undisturbed possession of, such Leased Real Property, free and clear of all Liens, except for Permitted Liens.

(ii) The Company or its applicable Subsidiary is in material compliance with all laws, rules, regulations and ordinances related to the business as it is currently conducted on such Leased Real Property.

(iii) The Company and its Subsidiaries are in material compliance with all Liens, encumbrances, easements, restrictions, and other matters of record affecting the Leased Real Property, and neither the Company nor any of its Subsidiaries has received any notice alleging any default under any of such Liens, encumbrances, easements, restrictions, or other matters. The Company’s and its Subsidiaries’, as applicable, possession and quiet enjoyment of the Leased Real Property under such Real Property Leases has not been materially disturbed, and to the knowledge of the Company, there are no material disputes with respect to such Real Property Leases.

(iv) The Company and its Subsidiaries have delivered to Acquiror true, correct and complete copies of all leases, lease guaranties, subleases, agreements for the leasing, use or occupancy of, or otherwise granting a right in or relating to the Leased Real Property, including all amendments, terminations and modifications thereof (collectively, the “ Real Property Leases ”), and none of such Real Property Leases have been modified in any material respect, except to the extent that such modifications are disclosed by the copies delivered to Acquiror; and there are no other lease agreements for real property affecting the Leased Real Property or to which any of the Company or its Subsidiaries is bound; and all such Real Property Leases are, and shall be, in full force and effect and valid and binding, and enforceable in accordance with their respective terms. The Company or a Subsidiary owns all of the lessee’s or tenant’s interest under the Real Property Leases and has not assigned, pledged or otherwise hypothecated any such interest. The Company and its Subsidiaries are in material compliance with the terms of all of the Real Property Leases, and there are no breaches or defaults under the Real Property Leases by the Company or its Subsidiaries, or, to the knowledge of the Company, the lessor or landlord thereunder, and there are no events which with the passage of time or notice, or both, would constitute a monetary default or material non-monetary breach or default on the part of the Company or a Subsidiary, or, to the knowledge of the Company, any other party to the Real Property Leases. Neither the Company nor any Subsidiary has received any notice alleging any monetary default or material non-monetary breach or default that is ongoing under any of the Real Property Leases. Except as described on Section 4.20(b)(iv) of the Company Disclosure Letter, the consummation of the transactions provided for herein will not create or constitute a default or event of default under any Real Property Lease or require the consent of any other party to any such lease to avoid a default or event of default.

(v) As of the date of this Agreement, no party, other than the Company or a Subsidiary, has any right to use or occupy the Leased Real Property or any portion thereof, whether as tenants, subtenants, trespassers or otherwise.

(vi) No third party has a right to acquire any interest in the Leased Real Property.

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(vii) There are no eminent domain or similar proceedings pending or, to the Company’s knowledge, threatened affecting any portion of the Leased Real Property. There is no writ, injunction, decree, order or judgment outstanding, nor any action claim, suit or proceeding pending or, to the Company’s knowledge, threatened, relating to the ownership, lease, use, occupancy or operation by any Person of the Leased Real Property.

(viii) The Leased Real Property is in good condition and repair and is sufficient for the uses in which such property is presently employed.

Section 4.21    Intellectual Property .

(a) Section 4.21(a) of the Company Disclosure Letter lists each item of registered and applied-for with a Governmental Authority, Intellectual Property owned by the Company or any of its Subsidiaries as of the date of this Agreement, whether applied for or registered in the United States or internationally as of the date of this Agreement (“ Company Registered Intellectual Property ”). The Company or one of its Subsidiaries is the sole and exclusive beneficial and record owner of all of the Company Registered Intellectual Property items set forth in Section 4.21(a) of the Company Disclosure Letter, and, to the knowledge of the Company, all such Company Registered Intellectual Property is subsisting, valid, and enforceable.

(b) The Company and its Subsidiaries are not interfering with, infringing upon, misappropriating or otherwise violating any Intellectual Property of any third Person, except for any interference, infringement, misappropriation or other violation that would not have, or would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, and there is no claim, action, suit or proceeding pending to which the Company or any of its Subsidiaries is a named party, or to the Company’s knowledge, threatened, alleging the Company’s or its Subsidiaries’ interference, infringement, misappropriation or other violation of any Intellectual Property of any third Person. There are no orders, writs, injunctions, or decrees to which the Company or any of its Subsidiaries is subject with respect to any material Intellectual Property.

(c) Except as set forth on Section 4.21(c) of the Company Disclosure Letter, to the knowledge of the Company as of the date of this Agreement (i) no Person is interfering with, infringing upon, misappropriating or otherwise violating any Intellectual Property of the Company or any of its Subsidiaries in any material respect, and (ii) the Company and its Subsidiaries have not sent to any Person in the past two (2) years any written notice, charge, complaint, claim or other written assertion against such third Person claiming infringement or violation by or misappropriation of any Intellectual Property of the Company or any of its Subsidiaries.

(d) The Company and its Subsidiaries take reasonable measures to protect the confidentiality of trade secrets and other material confidential or proprietary information, know-how and processes. To the knowledge of the Company, there has not been any unauthorized disclosure of or unauthorized access to any trade secrets or other material confidential or proprietary information, know-how and processes of the Company or any of its Subsidiaries to or by any Person in a manner that has resulted or may result in the misappropriation of, or loss of trade secret or other rights in and to, such information, know-how or processes, except as would not result in a Company Material Adverse Effect.

(e) The Company and its Subsidiaries are in compliance with applicable Law, as well as their own policies, relating to privacy, data protection, and the collection and use of personal information collected, used, or held for use by the Company and its Subsidiaries, and, there are no claims pending to which the Company or any of its Subsidiaries is a named party or, to the knowledge of the Company, threatened in writing against the Company or its Subsidiaries alleging a violation of any third Person’s privacy or personal information rights. There have been no material security breaches in the information technology systems of the Company and its Subsidiaries or, to the knowledge of the Company, the information technology systems of third Persons to the extent used by or on behalf of the Company and its Subsidiaries, and, to knowledge of the Company as of the date of this Agreement, there have been no disruptions in any information technology systems that materially adversely affected the Company’s and its subsidiaries’ business or operations. With respect to the software used or held for use in the business of the Company and its Subsidiaries, to the knowledge of the Company, no such software contains any undisclosed or hidden device or feature designed to disrupt, disable, or otherwise impair the functioning of any software

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or any “back door,” “time bomb”, “Trojan horse,” “worm,” “drop dead device,” or other malicious code or routines that permit unauthorized access or the unauthorized disablement or erasure of such or other software or information or data (or any parts thereof) of the Company or its Subsidiaries or customers of the Company and its Subsidiaries.

Section 4.22    Environmental Matters .   Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect:

(a) The Company and its Subsidiaries are and, during the last five years, have been in compliance with all Environmental Laws;

(b) There has been no release of any Hazardous Materials by the Company or its Subsidiaries at, in, on or under any Leased Real Property or in connection with the Company’s or its Subsidiaries’ operations off-site of the Leased Real Property or, to the knowledge of the Company, at, in, on or under any formerly owned or leased real property during the time that the Company owned or leased such property;

(c) Neither the Company nor its Subsidiaries is subject to any current Governmental Order relating to any non-compliance with Environmental Laws by the Company or its Subsidiaries or the investigation, sampling, monitoring, treatment, remediation, removal or cleanup of hazardous materials; and

(d) No Action is pending or threatened with respect to the Company’s or its Subsidiaries’ compliance with or liability under Environmental Laws.

Section 4.23    Absence of Changes .

(a) Except as set forth on Section 4.23(a) of the Company Disclosure Letter, from the date of the most recent balance sheet included in the Financial Statements to the date of this Agreement, there has not been any, Company Material Adverse Effect.

(b) Except as set forth on Section 4.23(b) of the Company Disclosure Letter, from the date of the most recent balance sheet included in the Financial Statements through the date of this Agreement, the Company and its Subsidiaries have, in all material respects, conducted their business and operated their properties in the ordinary course of business consistent with past practice.

Section 4.24    Related Party Transactions .   Except as set forth in Section 4.24 of the Company Disclosure Letter, there are no transactions, Contracts, agreements, arrangements or understandings or series of related transactions, Contracts, agreements, arrangements or understandings (each, a “ Related Party Transaction ”), nor are there any of the foregoing currently proposed, that (if proposed but not having been consummated or executed, if consummated or executed) would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Securities Act of 1933, as amended (the “ Securities Act ”). The Company has made available to Acquiror copies of each Contract or other relevant documentation (including any amendments or modifications thereto) available as of the date of this Agreement with respect to each Related Party Transaction.

Section 4.25    Anti-Corruption Compliance .

(a) Since June 1, 2012, neither the Company nor any of its Subsidiaries has offered or given, and to the knowledge of the Company, no Person has offered or given on behalf of the any of the Company or any of its Subsidiaries, anything of value to: (i) any official, member, employer or customer of a Governmental Authority, any political party or official thereof, or any candidate for political office or (ii) any other Person, in any such case while knowing or having reason to know that all or a portion of such money or thing of value may be offered, given or promised, directly or indirectly, to any customer, member of the government or candidate for political office, in each case in violation of the Anti-Bribery Laws.

(b) Each of the Company and its Subsidiaries, have instituted and maintain policies and procedures reasonably designed to ensure compliance in all material respects with the Anti-Bribery Laws.

(c) To the knowledge of the Company, as of the date hereof, there are no current or pending internal investigations, third party investigations (including by any Governmental Authority), internal or external audits, or internal or external reports that address any material allegations or information concerning possible material violations of the Anti-Bribery Laws related to the Company or any of its Subsidiaries.

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Section 4.26    Indebtedness .    Section 4.26 of the Company Disclosure Letter sets forth, as of the date of this Agreement, all Indebtedness of the Company and its Subsidiaries, except for Indebtedness in amounts that are not individually, or in the aggregate, in excess of $1,000,000.

Section 4.27    Internal Controls .   The Company and its Subsidiaries have established and maintained a system of internal accounting controls over financial reporting. Such internal accounting controls are sufficient to provide reasonable assurance regarding the reliability of the Company and its Subsidiaries’ financial reporting and the preparation of Financial Statements for external purposes in accordance with GAAP, as applicable. The Company has made available to Acquiror all known information related to fraud or suspected fraud which affects the Company or any of its Subsidiaries or any material deficiencies identified in its internal controls process, whether or not the Company has disclosed such information to the Company and its Subsidiaries’ auditors relating to any fraud affecting the Company or a Subsidiary, from January 1, 2012 to the date of this Agreement.

Section 4.28    Information Supplied .   None of the information supplied or to be supplied by the Company or any of its Subsidiaries specifically for inclusion in the Registration Statement will, at the date on which the Joint Proxy Statement/Registration Statement is first mailed to Acquiror’s stockholders or at the time of the Acquiror Shareholders’ Meeting, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading.

Section 4.29    Customer and Suppliers .

(a) Section 4.29(a) of the Company Disclosure Letter sets forth, as of the date of this Agreement, the top seventy-five (75) customers, and top ten (10) vendors, in each case based on the aggregate dollar value of the Company’s transaction volume with such counterparty during the trailing twelve months for the period ending March 31, 2017 (each such group of Persons, respectively, the “ Top Customers ” and the “ Top Vendors ”)

(b) Except as set forth on Section 4.29(b) of the Company Disclosure Letter, during the six months prior to the date of this Agreement, none of the Top Customers or Top Vendors has informed in writing any of the Company or any of its Subsidiaries that it will, or, to the knowledge of the Company, has threatened to, terminate, cancel, or, other than in the ordinary course of business, materially limit or materially and adversely modify any of its existing or planned business with the Company or any of its Subsidiaries (other than due to the expiration of an existing contractual arrangement), and to the knowledge of the Company, none of the Top Customers or Top Vendors is otherwise involved in or threatening, a material dispute against the Company or its Subsidiaries.

(c) Except as set forth on Section 4.29(b) of the Company Disclosure Letter, since January 1, 2012, neither the Company nor any of its Subsidiaries has suffered any material shortage, cessation or interruption of operations or the provision of any services as a result of conduct by any Top Vendors.

Section 4.30    Capital Expenditures .    Section 4.30 of the Company Disclosure Letter identifies, as of the date of this Agreement, all quarterly budgeted capital expenditures of the Company and its Subsidiaries anticipated through December 31, 2017. There are no deferred or unfunded capital expenditures that are required for the operation of the Company and its Subsidiaries in the ordinary course of business.

Section 4.31    No Additional Representation or Warranties    Except as provided in this Article IV , neither the Company nor any of its Affiliates, nor any of their respective directors, officers, employees, stockholders, partners, members or representatives has made, or is making, any representation or warranty whatsoever to Acquiror or Merger Sub or their Affiliates and no such party shall be liable in respect of the accuracy or completeness of any information provided to Acquiror or Merger Sub or their Affiliates. Without limiting the foregoing, Acquiror and Merger Sub acknowledge that Acquiror, together with its advisors, has made its own investigation of the Company and its Subsidiaries and is not relying on any implied warranties or upon any representation or warranty whatsoever as to the prospects (financial or otherwise) or the viability or likelihood of success of the business of the Company and its Subsidiaries as conducted after the Closing, as contained in any materials provided by the Company or any of its Affiliates or any of their respective directors, officers, employees, shareholders, partners, members or representatives or otherwise. For the purposes herein, any information provided to, or made available to, Acquiror or Merger Sub by

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the Company and its Subsidiaries shall include any and all information that may be contained or posted prior to 5:00 p.m. (New York Time) two Business Days prior to the execution of this Agreement in the electronic data room established by the Company or its representatives in connection with the transactions contemplated by this Agreement.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF ACQUIROR AND MERGER SUB

Except, in the case of Acquiror, as set forth in (i) any Acquiror SEC Reports (excluding any disclosures in any risk factors section that do not constitute statements of fact, disclosures in any forward-looking statements disclaimer and other disclosures that are generally cautionary, predictive or forward-looking in nature), or (ii) in the disclosure letter delivered by Acquiror and Merger Sub to the Company (the “ Acquiror Disclosure Letter ”) on the date of this Agreement (each section of which, subject to Section 13.9 , qualifies the correspondingly numbered and lettered representations in this Article V ), Acquiror and Merger Sub represent and warrant to the Company as of the date of this Agreement as follows:

Section 5.1    Corporate Organization .   Each of Acquiror and Merger Sub has been duly incorporated and is validly existing as a corporation in good standing (or equivalent status, to the extent that such concept exists) under the laws of its jurisdiction of organization or formation, and has the corporate power and authority to own or lease all of its properties and assets and to conduct its business as it is now being conducted The copies of the amended and restated memorandum and articles of association of Acquiror and the certificate of organization of Merger Sub, in each case, as amended to the date of this Agreement, previously delivered by Acquiror to the Company, are true, correct and complete. Merger Sub has no assets or operations other than those required to effect the transactions contemplated by this Agreement. All of the capital stock of Merger Sub is held directly by Acquiror. Each of Acquiror and Merger Sub is duly licensed or qualified and in good standing as a foreign corporation in all jurisdictions in which its ownership of property or the character of its activities is such as to require it to be so licensed or qualified, except where failure to be so licensed or qualified would not reasonably be expected to have an Acquiror Material Adverse Effect.

Section 5.2    Due Authorization .   Each of Acquiror and Merger Sub has all requisite corporate power and authority to (a) execute and deliver this Agreement, and (b) consummate the transactions contemplated hereby and perform all obligations to be performed by it hereunder (assuming, if such consummation and performance, as applicable, would occur after May 26, 2017, that the Acquiror Extension Approval has been obtained). The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been (i) duly and validly authorized and approved by the Board of Directors of Acquiror and Merger Sub, respectively and (ii) determined by the Board of Directors of Acquiror as advisable to Merger Sub and its stockholder, and Acquiror and its stockholders. No other corporate proceeding on the part of Acquiror or Merger Sub is necessary to authorize this Agreement (other than in the case of Transaction Proposals, the Acquiror Shareholder Approval). The Board of Directors of Acquiror has duly adopted resolutions to recommend approval of this Agreement by the shareholders of Acquiror. This Agreement has been duly and validly executed and delivered by each of Acquiror and Merger Sub, and this Agreement constitutes a legal, valid and binding obligation of each of Acquiror and Merger Sub, enforceable against Acquiror and Merger Sub in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws affecting creditors’ rights generally and subject, as to enforceability, to general principles of equity.

Section 5.3    No Conflict .   Subject to the Acquiror Extension Approval and the Acquiror Shareholder Approval, the execution and delivery of this Agreement by Acquiror and Merger Sub and the consummation of the transactions contemplated hereby do not and will not (a) violate or conflict with any provision of, or result in the breach of or default under the certificate of incorporation, bylaws or other organizational documents of Acquiror or any Subsidiary of Acquiror (including Merger Sub), (b) violate or conflict with any provision of, or result in the breach of or default under any applicable Law or Governmental Order (nor with respect to any Governmental Order, give any Person the right to obtain any relief or exercise any remedy thereunder), (c) violate or conflict with any provision of, or result in the breach of or default under any agreement, indenture or other instrument to which Acquiror or any Subsidiary of Acquiror (including Merger Sub) is a party or by which Acquiror or any Subsidiary of Acquiror (including Merger Sub) may be bound, or terminate or result in the termination of any such agreement, indenture or instrument, or (d) result in the creation of any Lien upon any of the properties or assets of Acquiror or any Subsidiary of Acquiror (including Merger Sub) or constitute an event that, after notice or lapse of time or both,

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would reasonably be expected to result in any such violation, conflict, default, breach, termination or creation of a Lien, except in the case of clauses (b) through (d), to the extent that the occurrence of the foregoing would not have, or would not reasonably be expected to have, individually or in the aggregate, an Acquiror Material Adverse Effect.

Section 5.4    Litigation and Proceedings; Compliance with Laws .   There are no pending or, to the knowledge of Acquiror, threatened Legal Proceedings against Acquiror or Merger Sub or any of its Subsidiaries or, to the knowledge of Acquiror, any of their respective directors, officers or employees (in their capacity as such). There are no investigations or other inquiries are pending or, to the knowledge of Acquiror, threatened by any Governmental Authority, against Acquiror or Merger Sub or any of its Subsidiaries, or, to the knowledge of Acquiror, any of their respective officers, directors or employees (in their capacity as such). There is no outstanding Governmental Order imposed upon Acquiror or Merger Sub or any of its Subsidiaries; nor are any assets of Acquiror’s or its Subsidiaries respective business, bound or subject to any Governmental Order that individually or in the aggregate would reasonably be expected to have an Acquiror Material Adverse Effect. Each of Acquiror, Merger Sub and their Subsidiaries are, and since the date of their respective incorporations have been, in compliance with all applicable Laws in all material respects.

Section 5.5    SEC Filings .   Acquiror has timely filed or furnished all statements, prospectuses, registration statements, forms, reports and documents required to be filed by it with the SEC since May 20, 2015 and made publicly available at least two (2) Business Days prior to the date of this Agreement, pursuant to the Exchange Act or the Securities Act (collectively, and together with any exhibits and schedules thereto and other information incorporated therein, and as they have been supplemented, modified or amended since the time of filing, the “ Acquiror SEC Reports ”). Each of the Acquiror SEC Reports, as of the respective date of its filing, and as of the date of any amendment, complied in all material respects with the applicable requirements of the Securities Act, the Exchange Act, the Sarbanes-Oxley Act and any rules and regulations promulgated thereunder applicable to the Acquiror SEC Reports. As of the respective date of its filing, the Acquiror SEC Reports did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. As of the date hereof, there are no outstanding or unresolved comments in comment letters received from the SEC with respect to the Acquiror SEC Reports.

Section 5.6    Internal Controls; Listing; Financial Statements .

(a) Except as not required in reliance on exemptions from various reporting requirements by virtue of Acquiror’s status as an “emerging growth company” within the meaning of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012 (“ JOBS Act ”), (i) Acquiror has established and maintains disclosure controls and procedures (as defined in Rule 13a-15 under the Exchange Act). Such disclosure controls and procedures are designed to ensure that material information relating to Acquiror, including its consolidated Subsidiaries, is made known to Acquiror’s principal executive officer and its principal financial officer by others within those entities, particularly during the periods in which the periodic reports required under the Exchange Act are being prepared and (ii) since May 20, 2015, Acquiror and its Subsidiaries have established and maintained a system of internal controls over financial reporting (as defined in Rule 13a-15 under the Exchange Act) sufficient to provide reasonable assurance regarding the reliability of Acquiror’s financial reporting and the preparation of Acquiror’s financial statements for external purposes in accordance with GAAP.

(b) Each director and executive officer of Acquiror has filed with the SEC on a timely basis all statements required by Section 16(a) of the Exchange Act and the rules and regulations promulgated thereunder. Acquiror has not taken any action prohibited by Section 402 of the Sarbanes-Oxley Act.

(c) Since May 20, 2015, Acquiror has complied in all material respects with the applicable listing and corporate governance rules and regulations of NASDAQ. The issued and outstanding shares of Acquiror Common Stock are registered pursuant to Section 12(b) of the Exchange Act and are listed for trading on NASDAQ. There is no Legal Proceeding pending or, to the knowledge of Acquiror, threatened against Acquiror by NASDAQ or the SEC with respect to any intention by such entity to deregister the Acquiror Common Stock or prohibit or terminate the listing of Acquiror Common Stock on NASDAQ. Acquiror has taken no action that is designed to terminate the registration of Acquiror Common Stock under the Exchange Act.

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(d) The Acquiror SEC filings contain true and complete copies of the (i) audited consolidated balance sheet as of December 31, 2016, and statement of operations, cash flow and shareholders’ equity of Acquiror and its Subsidiaries for the period commencing from its date of incorporation through December 31, 2016, together with the auditor’s reports thereon, and (ii) unaudited consolidated balance sheet and statements of operations, cash flow and shareholders’ equity of Acquiror and its Subsidiaries for the periods ended March 31, 2016, June 30, 2016 and September 30, 2016 ((i) and (ii) together, the “ Acquiror Financial Statements ”). Except as disclosed in the Acquiror SEC filings, the Acquiror Financial Statements present (i) fairly present in all material respects the consolidated financial position of the Company and its consolidated Subsidiaries, as at the respective dates thereof, and the consolidated results of their operations and their consolidated cash flows for the respective periods then ended, (ii) were prepared in conformity with GAAP applied on a consistent basis during the periods involved (except as may be indicated therein or in the notes thereto), and (iii) comply in all material respects with the applicable accounting requirements and with the rules and regulations of the SEC, the Exchange Act and the Securities Act in effect as of the respective dates thereof. The books and records of the Company and its Subsidiaries have been, and are being, maintained in all material respects in accordance with GAAP and any other applicable legal and accounting requirements.

(e) The audited consolidated financial statements and unaudited consolidated interim financial statements of Acquiror included or incorporated by reference in the Acquiror SEC filings fairly present in all material respects, in conformity with GAAP applied on a consistent basis (except as may be indicated in the notes thereto), the consolidated financial position of Acquiror and its consolidated Subsidiaries as of the dates thereof and their consolidated results of operations and cash flows for the periods then ended (subject to normal year-end audit adjustments in the case of any unaudited interim financial statements).

Section 5.7    Governmental Authorities; Consents .   Assuming the truth and completeness of the representations and warranties of the Company contained in this Agreement, no consent, approval or authorization of, or designation, declaration or filing with, any Governmental Authority or other Person is required on the part of Acquiror or Merger Sub with respect to Acquiror or Merger Sub’s execution or delivery of this Agreement or the consummation of the transactions contemplated hereby, except for (i) applicable requirements of the HSR Act or any similar foreign antitrust Law and (ii) as otherwise disclosed on Section 5.7 of the Acquiror Disclosure Letter.

Section 5.8    Sponsor Backstop .   Acquiror has delivered to the Company a true, correct and complete copy of the Equity Commitment Letter, dated as of the date hereof, by and between Acquiror and Sponsor (the “ Equity Commitment Letter ”).

Section 5.9    Trust Account .   Acquiror has (and will have immediately prior to Closing (assuming no Acquiror Common Shares are redeemed pursuant to the Acquiror Share Redemptions)) at least $172,500,000 in the account established by Acquiror for the benefit of its public stockholders at the Trustee (the “ Trust Account ”) (excluding an aggregate of approximately $6,000,000 of deferred underwriting commissions and other fees being held in the Trust Account), such monies invested in United States government securities or money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act and held in trust by Continental Stock Transfer & Trust Company (the “ Trustee ”) pursuant to that certain Investment Management Trust Agreement, dated as of May 19, 2015, between Acquiror and Trustee (the “ Trust Agreement ”). There are no separate Contracts, side letters or other arrangements or understandings (whether written or unwritten, express or implied) that would cause the description of the Trust Agreement in the Acquiror SEC Reports to be inaccurate or that would entitle any Person (other than shareholders of Acquiror holding Acquiror Common Shares sold in Acquiror’s initial public offering who shall have elected to redeem their shares of Acquiror Common Stock pursuant to the Acquiror Governing Documents) to any portion of the proceeds in the Trust Account. Prior to the Closing, none of the funds held in the Trust Account may be released. There are no proceedings pending or, to the knowledge of Acquiror, threatened with respect to the Trust Account.

Section 5.10    Investment Company Act; JOBS Act .   Acquiror is not an “investment company” or a Person directly or indirectly “controlled” by or acting on behalf of an “investment company”, in each case within the meaning of the Investment Company Act. Acquiror constitutes an “emerging growth company” within the meaning of the JOBS Act.

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Section 5.11    Absence of Changes .   Since the date of Acquiror’s incorporation, (a) there has not been any Acquiror Material Adverse Effect and (b) except as set forth in Section 5.11 of the Acquiror Disclosure Letter, Acquiror and its Subsidiaries have, in all material respects, conducted their business and operated their properties in the ordinary course of business consistent with past practice.

Section 5.12    No Undisclosed Liabilities .   Except for any fees and expenses payable by Acquiror or any of its Subsidiaries as a result of or in connection with the consummation of the transactions contemplated hereby, there is no liability, debt or obligation of or claim or judgment against Acquiror or any of its Subsidiaries, (whether direct or indirect, absolute or contingent, accrued or unaccrued, known or unknown, liquidated or unliquidated, or due or to become due), except for liabilities and obligations (i) reflected or reserved for on the financial statements or disclosed in the notes thereto included in Acquiror SEC Reports or (ii) that have arisen since the date of the most recent balance sheet included in the Acquiror SEC Reports in the ordinary course of the operation of business of Acquiror and its Subsidiaries which do not exceed $75,000 individually or $750,000 in the aggregate.

Section 5.13    Capitalization of Acquiror .

(a) As of the date hereof, the authorized share capital of Acquiror consists of (i) 400,000,000 Acquiror Common Shares, of which 21,562,500 shares are issued and outstanding as of the date of this Agreement, and (ii) 20,000,000 preferred shares (“ Acquiror Preferred Shares ”) of par value $.0001 each, of which no shares are issued and outstanding as of the date of this Agreement ((i) and (ii) collectively, the “ Acquiror Securities ”). Without giving effect to the Sponsor Equity Backstop or any third party equity financing to Acquiror contingent upon the Closing, as of immediately prior to Closing, Acquiror shall have 21,562,500 shares of Acquiror Common Stock issued and outstanding, and no Acquiror Preferred Shares issued and outstanding. All Acquiror Securities have been duly authorized and validly issued, fully paid and nonassessable and issued in compliance with all applicable state and federal securities Laws and is not subject to, or issued in violation of, any Lien, purchase option, call option, right of first refusal, preemptive right, subscription right or any similar right under applicable Law, the Acquiror Governing Documents or any Contract to which Acquiror is a party or otherwise bound.

(b) The Acquiror Warrants are, and after giving effect to the First Merger will be, exercisable for one share of Acquiror Common Stock at an exercise price of eleven Dollars and fifty cents ($11.50) per share. As of the date hereof, 14,687,500 Acquiror Warrants are outstanding. No Acquiror Warrants are exercisable until the Closing. All outstanding Acquiror Warrants have been duly authorized and validly issued, are fully paid and were issued in compliance with all applicable federal and state securities Laws and are not subject to, and were not issued in violation of, any purchase option, call option, right of first refusal, preemptive right, subscription right or any similar right under any provision of the DGCL, the Acquiror Governing Documents or any Contract to which Acquiror is a party or by which it is bound. Except for the IPO Repurchase (as defined in the Acquiror Governing Documents), there are no outstanding Contracts of Acquiror to repurchase, redeem or otherwise acquire any Acquiror Securities.

(c) Except as set forth in this Section 5.13 or with respect to any Acquiror Common Shares issued as part of any third party equity financing to Acquiror contingent upon the Closing or in connection with the Sponsor Equity Backstop, Acquiror has not granted any outstanding options, stock appreciation rights, warrants, rights or other securities convertible into or exchangeable or exercisable for Acquiror Securities, or any other commitments or agreements providing for the issuance of additional shares, the sale of treasury shares, for the repurchase or redemption of any Acquiror Securities or the value of which is determined by reference to the Acquiror Securities, and there are no Contracts of any kind which may obligate Acquiror to issue, purchase, redeem or otherwise acquire any of its Acquiror Securities.

(d) The Merger Consideration and the Acquiror Common Shares, when issued in accordance with the terms hereof, shall be duly authorized and validly issued, fully paid and nonassessable and issued in compliance with all applicable state and federal securities Laws and not subject to, and not issued in violation of, any Lien, purchase option, call option, right of first refusal, preemptive right, subscription right or any similar right under any provision of applicable Law, the Acquiror Governing Documents or any Contract to which Acquiror is a party or otherwise bound.

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(e) Acquiror has no Subsidiaries, apart from Merger Sub, and does not own, directly or indirectly, any equity interests or other interests or investments (whether equity or debt) in any Person, whether incorporated or unincorporated. Acquiror is not party to any Contract that obligates Acquiror to invest money in, loan money to or make any capital contribution to any other Person.

Section 5.14    Brokers’ Fees .   Except fees described on Section 5.14 of the Acquiror Disclosure Letter (which fees shall be the sole responsibility of Acquiror), no broker, finder, investment banker or other Person is entitled to any brokerage fee, finders’ fee or other commission in connection with the transactions contemplated by this Agreement based upon arrangements made by Acquiror or any of its Affiliates.

Section 5.15    Indebtedness .   Acquiror has no Indebtedness.

Section 5.16    Solvency; First-Step Surviving Corporation and Surviving Corporation After the Mergers .   None of Acquiror or Merger Sub is entering into this Agreement or the transactions contemplated hereby with the actual intent to hinder, delay or defraud either present or future creditors of Acquiror or any of its Affiliates. Assuming that the representations and warranties of the Company contained in this Agreement are true and correct in all material respects, and after giving effect to the First Merger, at and immediately after the First Effective Time, each of Acquiror, the First-Step Surviving Corporation and the Surviving Corporation and its Subsidiaries (i) will be solvent (in that both the fair value of its assets will not be less than the sum of its debts and that the present fair saleable value of its assets will not be less than the amount required to pay its probable liability on its recourse debts as they mature or become due); (ii) will have adequate capital and liquidity with which to engage in its business and all businesses in which it is about to engage; and (iii) will not have incurred and does not plan to incur debts beyond its ability to pay as they mature or become due.

Section 5.17    No Outside Reliance; Acquisition for Investment .   Notwithstanding anything contained in this Article V or any other provision hereof, each of Acquiror and Merger Sub acknowledge and agree that neither the Company nor any of its Affiliates, agents or representatives is making any representation or warranty whatsoever, express or implied, beyond those expressly given in Article IV , including any implied warranty or representation as to condition, merchantability, suitability or fitness for a particular purpose or trade as to any of the assets of the Company or any of its Subsidiaries, and each of Acquiror and Merger Sub specifically disclaims that it is relying upon or has relied upon any representations or warranties beyond those expressly given in Article IV that may have been made by any Person, and acknowledges and agrees that the Company has specifically disclaimed and does hereby specifically disclaim any such other representation or warranty made by any Person; provided , however , the foregoing shall not relieve any party for any liability with respect to fraud.

Section 5.18    No Additional Representation or Warranties .   Except as provided in this Article V , neither Acquiror nor Merger Sub nor any their respective Affiliates, nor any of their respective directors, officers, employees, stockholders, partners, members or representatives has made, or is making, any representation or warranty whatsoever to the Company or Holder Representative or their Affiliates and no such party shall be liable in respect of the accuracy or completeness of any information provided to the Company or Holder Representative or their Affiliates. Without limiting the foregoing, the Company or Holder Representative acknowledge that the Company or Holder Representative, together with their respective advisors, have made their own investigation of Acquiror, Merger Sub and their respective Subsidiaries and is not relying on any implied warranties or upon any representation or warranty whatsoever as to the prospects (financial or otherwise) or the viability or likelihood of success of the business of Acquiror, Merger Sub and their respective Subsidiaries as conducted after the Closing, as contained in any materials provided by Acquiror, Merger Sub or any of their Affiliates or any of their respective directors, officers, employees, shareholders, partners, members or representatives or otherwise. For the purposes herein, any information provided to, or made available to, the Company or Holder Representative by Acquiror, Merger Sub and their respective Subsidiaries shall include any and all information that may be contained or posted prior to 5:00 p.m. (New York Time) two Business Days prior to the execution of this Agreement.

ARTICLE VI

COVENANTS OF THE COMPANY

Section 6.1    Conduct of Business .   From the date of this Agreement through the earlier of the Closing or valid termination of this Agreement pursuant to Article X , the Company shall, and shall cause its Subsidiaries to, except as contemplated by this Agreement or as consented to by Acquiror in writing (which consent shall not be unreasonably conditioned, withheld, delayed or denied), operate its business in the ordinary course and substantially

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in accordance with past practice. Without limiting the generality of the foregoing, except as set forth on Section 6.1 of the Company Disclosure Letter or as consented to by Acquiror in writing (which consent shall not be unreasonably conditioned, withheld, delayed or denied), the Company shall not, and the Company shall cause its Subsidiaries not to, except as otherwise contemplated by this Agreement:

(a) materially change or amend the certificate of incorporation, bylaws or other organizational documents of the Company or any of its Subsidiaries, except as otherwise required by Law;

(b) (i) make or declare any dividend or distribution to the stockholders of the Company or make any other distributions in respect of any of the Company’s or any of its Subsidiary’s capital stock, except for dividends by any of the Company’s wholly-owned Subsidiaries made in the ordinary course, (ii) split, combine, reclassify, recapitalize or otherwise amend any terms of any shares or series of the Company’s or any of its Subsidiary’s capital stock or (iii) purchase, repurchase, redeem or otherwise acquire any issued and outstanding share capital, outstanding shares of capital stock, membership interests or other equity interests of the Company or its Subsidiaries;

(c) materially adversely modify or terminate (other than expiration in accordance with its terms, if allowing such Contract to expire is in the ordinary course of business) any Contract of a type required to be listed on Section 4.12 of the Company Disclosure Letter or any Real Property Lease, except in the ordinary course of business;

(d) sell, assign, transfer, convey, lease or otherwise dispose of any material assets or properties, including, without limitation, the Leased Real Property, except in the ordinary course of business;

(e) acquire any ownership interest in any real property;

(f) except as otherwise required by Law, existing Company Benefit Plans or the Contracts listed on Section 4.12 of the Company Disclosure Letter, or (except with respect to clause (iv) below) in the ordinary course of business consistent with past practice (i) take any action with respect to the grant of any severance, retention, change in control or termination or similar pay (ii) make any material change in the key management structure of the Company or any of its Subsidiaries, including the hiring of additional officers or the termination of existing officers, (iii) terminate, adopt, enter into or materially amend any Company Benefit Plan other than in the ordinary course of business; (iv) increase the compensation, bonus opportunity or other remuneration of any employee, officer, director or other service provider, except, with respect to any employee, officer, director or service provider of the Company or any of its Subsidiaries whose annual base salary does not exceed $200,000, for increases in the ordinary course of business; (v) establish any trust or take any other action to secure the payment of any compensation; (vi) take any action to accelerate the time of payment or vesting of any compensation or benefit or (vii) amend the terms of any Option or grant any severance, change in control, retention or similar payment or benefits;

(g) acquire by merger or consolidation with, or merge or consolidate with, or purchase substantially all of the assets of, any corporation, partnership, association, joint venture or other business organization or division thereof;

(h) make any material loans or material advances to any Person, except for advances to employees or officers of the Company or any of its Subsidiaries for expenses incurred in the ordinary course of business;

(i) except as required by applicable Law, (A) change any Tax accounting methods, (B) make, revoke or amend any material Tax election, (C) enter into any closing agreement in respect of Taxes, (D) settle or compromise any material Tax liability of the Company or any of its Subsidiaries, (E) make or surrender any right to claim a refund of Taxes or (F) consent to any waiver or extension of the statute of limitations applicable to any material Taxes or any Tax Return;

(j) incur or assume any Indebtedness or guarantee any Indebtedness of another Person, issue or sell any debt securities or warrants or other rights to acquire any debt securities of the Company or any Subsidiary or guaranty any debt securities of another Person, other than any Indebtedness or guarantee (x) incurred in the ordinary course of business or (y) incurred between the Company and any of its wholly-owned Subsidiaries or between any of such wholly-owned Subsidiaries;

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(k) discharge any secured or unsecured obligation or liability (whether accrued, absolute, contingent or otherwise) which individually or in the aggregate exceed $250,000, except as otherwise contemplated by this Agreement or as such obligations become due;

(l) issue any additional shares of Common Stock or securities exercisable for or convertible into Common Stock other than in connection with the exercise of Options outstanding on the date hereof or grant any additional stock equity or equity-based compensation;

(m) form or cause to be formed any new Subsidiary of the Company;

(n) waive, release, assign, settle, compromise or otherwise resolve any material investigation, claim (excluding customer claims in the ordinary course of business that have not resulted in litigation), action, litigation or other legal proceedings, except where such waivers, releases, assignments, settlements or compromises involve only the payment of monetary damages in an amount less than $250,000 per individual claim or $2,000,000 in the aggregate (as well as related non-substantive incidental provisions and other remedies or obligations that are not material in the context of the applicable resolution) or are covered by insurance; however, under no circumstances shall the Company settle or otherwise resolve the Legal Proceedings set forth in Section 4.10 without prior written consent from Acquiror;

(o) grant to or acquire from, or agree to grant to or acquire from, any Person Intellectual Property that is material to the Company and its Subsidiaries, other than in the ordinary course of business and consistent with past practice, or dispose of, abandon or permit to lapse any rights to any material Intellectual Property of the Company and its Subsidiaries except in the ordinary course of business consistent with past practice, and, other than in the ordinary course of business and pursuant to obligations to maintain the confidentiality thereof, disclose or agree to disclose to any Person (other than Acquiror or any of its representatives) any trade secret or any other material confidential or proprietary information, know-how or process of the Company or any of its Subsidiary;

(p) make or commit to make capital expenditures (which for the avoidance of doubt shall not include capital leases) other than as set forth on Section 4.30 of the Company Disclosure Letter; or

(q) enter into any collective bargaining agreement or similar agreement, other than as required by applicable Law; or

(r) (i) limit in any material respect the right of the Company or any of its Subsidiaries to engage in any line of business or in any geographic area, to develop, market or sell products or services, or to compete with any Person or (ii) grant any exclusive or similar rights to any Person;

(s) pay accounts payable prior to the stated maturity (other than for a valid and legitimate business reason) or discharge any obligor from its obligations under any account receivable other than upon payment in full of all amounts payable thereunder (other than for a valid and legitimate business reason);

(t) enter into any agreement, or otherwise become obligated, to do any action prohibited under this Section 6.1 .

Section 6.2    Inspection .   Subject to confidentiality obligations and similar restrictions that may be applicable to information furnished to the Company or any of its Subsidiaries by third parties that may be in the Company’s or any of its Subsidiaries’ possession from time to time, and except for any information that is subject to attorney-client privilege or other privilege from disclosure (provided that, to the extent possible, the parties shall cooperate in good faith to permit disclosure of such information in a manner that preserves such privilege), the Company shall, and shall cause its Subsidiaries to, afford to Acquiror and its accountants, counsel and other representatives reasonable access (including for the purpose of coordinating transition planning for employees), during normal business hours, in such manner as to not interfere with the normal operation of the Company and its Subsidiaries, to all of their respective properties, books, contracts, commitments, Tax Returns, records and appropriate officers and employees of the Company and its Subsidiaries, and shall furnish such representatives with all financial and operating data and other information concerning the affairs of the Company and its Subsidiaries as such representatives may reasonably request. All information obtained by Acquiror, Merger Sub and their respective representatives shall be subject to the Confidentiality Agreement.

Section 6.3    HSR Act and Foreign Antitrust Approvals .   In connection with the transactions contemplated by this Agreement, the Company shall (and, to the extent required, shall cause its Affiliates to) (i) comply promptly but

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in no event later than ten (10) Business Days after the date hereof with the notification and reporting requirements of the HSR Act and use its reasonable best efforts to obtain early termination of the waiting period under the HSR Act and (ii) as soon as practicable, make such other filings with any similar foreign Governmental Authorities as may be required under any applicable similar foreign Law. The Company shall substantially comply with any Antitrust Information or Document Requests.

Section 6.4    Acquisition Proposals .   From the date hereof until the Closing Date or, if earlier, the termination of this Agreement in accordance with Article X , the Company and its Subsidiaries shall not, and the Company shall instruct and use its reasonable best efforts to cause its representatives not to (i) initiate, solicit or knowingly encourage any inquiry or the making of any proposal or offer that constitutes an Acquisition Proposal, (ii) initiate any discussions or negotiations with any Person with respect to, or provide any non-public information or data concerning the Company or any of its Subsidiaries to any Person relating to, an Acquisition Proposal or afford to any Person access to the business, properties, assets or personnel of the Company or any of its Subsidiaries in connection with an Acquisition Proposal, (iii) enter into any acquisition agreement, merger agreement or similar definitive agreement, or any letter of intent, memorandum of understanding or agreement in principle, or any other agreement relating to an Acquisition Proposal, (iv) grant any waiver, amendment or release under any standstill or confidentiality agreement or the anti-takeover laws of any state, or (v) otherwise knowingly facilitate any such inquiries, proposals, discussions, or negotiations or any effort or attempt by any Person to make an Acquisition Proposal. From and after the date hereof, the Company and its officers and directors shall, and the Company shall instruct and cause the Company’s representatives, its Subsidiaries and their representatives to, immediately cease and terminate all discussions and negotiations with any Persons that may be ongoing with respect to an Acquisition Proposal, and as promptly as practicable thereafter notify each such Person to the effect that the Company is ending all discussions and negotiations with such Person with respect to any Acquisition Proposal, effective immediately, which notice shall also request such Person to promptly return or destroy all confidential information concerning the Company and its Subsidiaries and the Company shall take all reasonable necessary actions to secure its rights and ensure the performance of any such Person’s obligations under any applicable confidentiality agreement.

Section 6.5    FIRPTA Certificate .   On the Closing Date, the Company shall deliver to Acquiror a duly executed certificate as specified in Section 1.1445-2(c)(3) of the Treasury Regulations, together with a form of notice to the IRS required under Section 1.897-2(h)(2) of the Treasury Regulations. If the Company fails to deliver such certificate and notice, then notwithstanding anything contained to the contrary herein, Acquiror shall be entitled to withhold any amounts required to be withheld under Section 1445 of the Code, provided however that failure to deliver such certificate and notice shall not be a closing condition under Section 9.2 .

Section 6.6    Preparation and Delivery of 2016 Financial Statements and Q1 2017 Financial Statements .

(a) As soon as reasonably practicable, the Company shall deliver to Acquiror the audited consolidated balance sheets and statements of operations and comprehensive loss, stockholders’ deficit and cash flow of the Company and its Subsidiaries as of and for the year ended December 31, 2016 (the “ 2016 Financial Statements ”), and shall use its commercially reasonable efforts to do so by June 30, 2017.

(b) As soon as reasonably practicable, the Company shall deliver to Acquiror the unaudited condensed consolidated balance sheets and statements of operations and comprehensive loss, stockholders’ deficit and cash flow of the Company and its Subsidiaries as of and for the three-month period ended March 31, 2017 (the “ Q1 Financial Statements ”), and shall use its commercially reasonable efforts to do so by June 30, 2017.

ARTICLE VII

COVENANTS OF ACQUIROR

Section 7.1    HSR Act and Foreign Antitrust Approvals .

(a) In connection with the transactions contemplated by this Agreement, Acquiror shall (and, to the extent required, shall cause its Affiliates to) (i) comply promptly but in no event later than ten (10) Business Days after the date hereof with the notification and reporting requirements of the HSR Act and use its reasonable best efforts to obtain early termination of the waiting period under the HSR Act and (ii) as soon as practicable, make such other filings with any foreign Governmental Authorities as may be required under any applicable similar foreign Law. Acquiror shall substantially comply with any Antitrust Information or Document Requests.

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(b) Acquiror shall exercise its reasonable best efforts to (i) obtain termination or expiration of the waiting period under the HSR Act and such other approvals, consents and clearances as may be necessary, proper or advisable under any foreign antitrust or competition laws and (ii) prevent the entry, in any Action brought by an Antitrust Authority or any other Person, of any Governmental Order which would prohibit, make unlawful or delay the consummation of the transactions contemplated by this Agreement.

(c) Acquiror shall cooperate in good faith with the Antitrust Authorities and undertake promptly any and all action required to complete lawfully the transactions contemplated by this Agreement as soon as practicable (but in any event prior to the End Date) and any and all action necessary or advisable to avoid, prevent, eliminate or remove the actual or threatened commencement of any proceeding in any forum by or on behalf of any Antitrust Authority or the issuance of any Governmental Order that would delay, enjoin, prevent, restrain or otherwise prohibit the consummation of the Mergers, including (i) proffering and consenting and/or agreeing to a Governmental Order or other agreement providing for the sale, licensing or other disposition, or the holding separate, of particular assets, categories of assets or lines of business of the Company or Acquiror and (ii) promptly effecting the disposition, licensing or holding separate of assets or lines of business, in each case, at such time as may be necessary to permit the lawful consummation of the transactions contemplated hereby on or prior to the End Date. The entry by any Governmental Authority in any Action of a Governmental Order permitting the consummation of the transactions contemplated hereby but requiring any of the assets or lines of business of Acquiror to be sold, licensed or otherwise disposed or held separate thereafter (including the business and assets of the Company and its Subsidiaries) shall not be deemed a failure to satisfy any condition specified in Article IX .

(d) Acquiror shall promptly furnish to the Company and the Holder Representative copies of any notices or written communications received by Acquiror or any of its Affiliates from any third party or any Governmental Authority with respect to the transactions contemplated by this Agreement, and Acquiror shall permit counsel to the Company an opportunity to review in advance, and Acquiror shall consider in good faith the views of such counsel in connection with, any proposed written communications by Acquiror and/or its Affiliates to any Governmental Authority concerning the transactions contemplated by this Agreement. Acquiror agrees to provide the Company, the Holder Representative and its counsel the opportunity, on reasonable advance notice, to participate in any substantive meetings or discussions, either in person or by telephone, between Acquiror and/or any of its Affiliates, agents or advisors, on the one hand, and any Governmental Authority, on the other hand, concerning or in connection with the transactions contemplated hereby.

(e) Acquiror shall be solely responsible for and pay all filing fees (whether or not such fees may be the obligation of the Company under applicable Law) payable to the Antitrust Authorities in connection with the transactions contemplated by this Agreement.

Section 7.2    D&O Indemnification and Insurance .

(a) From and after the First Effective Time, Acquiror agrees that it shall indemnify and hold harmless each present and former director and officer of the Company or any of its Subsidiaries against any costs or expenses (including reasonable attorneys’ fees), judgments, fines, losses, claims, damages or liabilities incurred in connection with any claim, action, suit, proceeding or investigation, whether civil, criminal, administrative or investigative, arising out of or pertaining to matters existing or occurring at or prior to the First Effective Time, whether asserted or claimed prior to, at or after the First Effective Time, to the fullest extent that the Company or any of its Subsidiaries, as the case may be, would have been permitted under applicable Law and its respective certificate of incorporation, bylaws or other organizational documents in effect on the date of this Agreement to indemnify such Person (including the advancing of expenses as incurred to the fullest extent permitted under applicable Law). Without limiting the foregoing, for a period of six years from and after the Closing Date, Acquiror shall cause the certificate of incorporation and the bylaws of the Surviving Corporation or any successor thereof to contain provisions no less favorable with respect to exculpation, indemnification and advancement of expenses of present and former directors and officers of the Company or any of its Subsidiaries for periods at or prior to the Closing Date than are set forth in the certificate of incorporation and the bylaws of the Company as of the date of this Agreement.

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(b) Prior to the First Effective Time, the Company shall obtain prepaid “tail” policies reasonably acceptable to Acquiror extending coverage for an aggregate period of six (6) years providing directors’ and officers’ liability insurance with respect to claims arising from facts or events that occurred on or before the First Effective Time covering those Persons who are currently covered by the Company’s or any of its Subsidiaries’ directors’ and officers’ liability insurance policies (true, correct and complete copies of which have been heretofore provided to Acquiror or its agents or representatives); provided however that the amount paid for such prepaid policies pursuant to this sentence shall not exceed the annual equivalent of two hundred and fifty percent (250%) of the annual premiums paid by the Company in its last full fiscal year without the prior written consent of Acquiror.

(c) Notwithstanding anything contained in this Agreement to the contrary, this Section 7.2 shall survive the consummation of the Mergers indefinitely and shall be binding, jointly and severally, on all successors and assigns of Acquiror and the Surviving Corporation. In the event that Acquiror or the Surviving Corporation or any of their respective successors or assigns consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger or transfers or conveys all or substantially all of its properties and assets to any Person, then, and in each such case, proper provision shall be made so that the successors and assigns of Acquiror or the Surviving Corporation, as the case may be, shall succeed to the obligations set forth in this Section 7.2 .

(d) Prior to the Closing, Acquiror shall obtain a directors and officers liability insurance policy, which shall be effective from and after the First Effective Time and shall be reasonably acceptable to the Company, with limits of at least $40,000,000 and including a Side A only limit of at least $10,000,000, totaling at least $50,000,000 of total limit.

Section 7.3    Adoption of Option Plan and Employee Stock Purchase Plan .   Subject to the approval pursuant to Section 8.1(c) :

(a) Prior to the First Effective Time, Acquiror, Merger Sub and Company shall cooperate to permit Acquiror to assume, as of the First Effective Time, the Rimini Street, Inc. 2013 Equity Incentive Plan (the “ Assumed Plan ”). Prior to the First Effective Time, the Company shall amend: (i) Section 3(a) of the Assumed Plan so that it has an initial share reserve of no greater than 12% of the shares of Acquiror outstanding as of immediately following the First Effective Time; (ii) Section 3(b) of the Assumed Plan so that the evergreen annual replenishment will cover no greater than four percent (4%) of the outstanding shares of all classes of the Company’s (or its successor’s) common stock on the last day of the immediately preceding fiscal year or such lower number approved by the Board of Directors of the Company and (iii) Section 18 of the Assumed Plan to provide for a term of 10 years following the amendment of the Assumed Plan by the Board of Directors of the Company.

(b) Prior to the effectiveness of the Registration Statement, Acquiror will adopt a customary employee stock purchase plan that is proposed by the Company (the “ ESPP ”) and as reasonably accepted by Acquiror.

Section 7.4    Use of Trust Account Proceeds and Related Available Equity .   At the First Effective Time, Acquiror shall utilize the sum of (i) the cash available in the Trust Account after satisfying the Acquiror Share Redemptions (and excluding an aggregate of approximately $6,000,000 of deferred underwriting commissions and other fees being held in the Trust Account) (the “ Trust Release Amount ”) plus (ii) if the Trust Release Amount is less than Fifty Million Dollars ($50,000,000), cash available to Acquiror in connection with the consummation of any third party equity financing to Acquiror contingent upon the Closing from the Sponsor and/or other third-party investors (the “ Equity Issue Amount ”) in a minimum aggregate amount such that the Trust Release Amount plus the Equity Issue Amount equals at least Fifty Million Dollars ($50,000,000) (the amount as calculated by adding clause (i) and (ii), the “ Available Acquiror Cash ”), to (x) first, pay the Company’s and Acquiror’s unpaid transaction expenses in connection with the Mergers and the other transactions contemplated by this Agreement, (y) thereafter pay, the debt holders specified in Section 7.4 of the Company Disclosure Letter, an amount, in cash, equal to (1) the remaining Available Acquiror Cash after satisfaction of the payment obligations in the preceding clause (x), (2) multiplied by each such debt holder’s applicable percentages as specified in Section 7.4 of the Company Disclosure Letter, in the case of each such debt holder, up to the amount owed to such debt holder by the Company in respect of such Indebtedness, and (z) thereafter, deposit any remaining Available Acquiror Cash for the benefit of the Company’s balance sheet.

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Section 7.5    [ Reserved ] .

Section 7.6    NASDAQ Listing .   Prior to First Effective Time, Acquiror shall prepare and submit to NASDAQ a listing application, if required under NASDAQ rules, covering the Acquiror Common Shares issuable in the First Merger, and shall use its reasonable best efforts to obtain conditional approval for the listing of such Acquiror Common Shares, subject to run-off off of Acquiror’s current listing and official notice of issuance with respect to Acquiror’s post-combination listing, and the Company shall reasonably cooperate with Acquiror with respect to such listing.

Section 7.7    No Solicitation by Acquiror .   From the date hereof until the Closing Date or, if earlier, the termination of this Agreement in accordance with Article X , Acquiror and its Subsidiaries shall not, and Acquiror shall instruct and use its reasonable best efforts to cause its representatives not to, (i) make any proposal or offer that constitutes a Business Combination Proposal, (ii) initiate any discussions or negotiations with any Person with respect to a Business Combination Proposal or (iii) enter into any acquisition agreement, business combination, merger agreement or similar definitive agreement, or any letter of intent, memorandum of understanding or agreement in principle, or any other agreement relating to a Business Combination Proposal provided , however , that nothing in this Section 7.7 shall limit Acquiror and its Subsidiaries, or any of their representatives, from taking any actions in connection with any Acquiror Acquisition Proposal with any Person to the extent that such Acquiror Acquisition Proposal would not (x) constitute a Business Combination Proposal, (y) be consummated before the Second Effective Time, and (z) would not reasonably be expected to prevent or impair the consummation of the Mergers or the performance by Acquiror or Merger Sub of any of their obligations hereunder. From and after the date hereof, Acquiror and its officers and directors shall, and Acquiror shall instruct and cause Acquiror’s representatives, its Subsidiaries and their representatives to, immediately cease and terminate all discussions and negotiations with any Persons that may be ongoing with respect to a Business Combination Proposal.

Section 7.8    Acquiror Conduct of Business .   From the date of this Agreement through the earlier of the Closing or valid termination of this Agreement pursuant to Article X , Acquiror shall, and shall cause its Subsidiaries to, except as contemplated by this Agreement or as consented to by Company in writing (which consent shall not be unreasonably conditioned, withheld, delayed or denied), operate its business in the ordinary course and substantially in accordance with past practice. Without limiting the generality of the foregoing, except as (x) for actions taken in connection with the Acquiror Extension Approval or (y) consented to by Company in writing (which consent shall not be unreasonably conditioned, withheld, delayed or denied), Acquiror shall not, and Acquiror shall cause its Subsidiaries not to, except as otherwise contemplated by this Agreement:

(a) change or amend the certificate of incorporation, bylaws or other organizational documents of Acquiror or any of its Subsidiaries, except as otherwise required by Law;

(b) (i) make or declare any dividend or distribution to the stockholders of Acquiror or make any other distributions in respect of any of Acquiror’s or any of its Subsidiary’s capital stock, except for dividends by any of Acquiror’s wholly-owned Subsidiaries, (ii) split, combine, reclassify or otherwise amend any terms of any shares or series of Acquiror’s or any of its Subsidiary’s capital stock or (iii) purchase, repurchase, redeem or otherwise acquire any issued and outstanding share capital, outstanding shares of capital stock, membership interests, warrants or other equity interests of Acquiror or its Subsidiaries, other than a redemption of Acquiror Common Shares made as part of the Acquiror Share Redemptions;

(c) incur or assume any Indebtedness or guarantee any Indebtedness of another Person, issue or sell any debt securities or warrants or other rights to acquire any debt securities of the Company or any Subsidiary or guaranty any debt securities of another Person, other than any Indebtedness or guarantee (x) incurred in the ordinary course of business or (y) incurred between Acquiror and any of its wholly-owned Subsidiaries or between any of such wholly-owned Subsidiaries;

(d) (A) issue any Acquiror Securities or securities exercisable for or convertible into Acquiror Securities, other than (i) issuance of Acquiror Common Shares pursuant to, and in accordance with the Sponsor Equity Backstop and any third party equity financing of Acquiror contingent upon the Closing, and (ii) issuance of the Merger Consideration, or (B) grant any additional options, warrants or stock appreciation rights with respect to Acquiror Securities not outstanding on the date hereof; or

(e) enter into, or become bound by, any Contract except in the ordinary course of business or as reasonably necessary in connection with the transactions contemplated hereby.

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(f) enter into any agreement, or otherwise become obligated, to do any action prohibited under this Section 7.8 .

Section 7.9    Post-Closing Directors and Officers of Acquiror .   Acquiror shall take all such action within its power as may be necessary or appropriate such that immediately following the First Effective Time:

(a) the board of directors of Acquiror (the “ Acquiror Board ”) shall consist of nine (9) directors, which shall be divided into three classes, designated Class I, Class II and Class III, with each such class consisting, as nearly as may be possible, of one-third of the total number of directors constituting the entire Acquiror Board;

(b) the composition and initial division into classes of the Acquiror Board shall consist of seven (7) directors designated in a written notice delivered by the Company to Acquiror prior to the effectiveness of the Registration Statement and the two (2) GPIAC Designated Directors, with one GPIAC Designated Director in each of Class II and Class III and the other directors being divided among the classes as set forth in such written notice from the Company (subject to Section 7.9(a) );

(c) the term of the initial Class I directors shall terminate on the date of the 2018 annual meeting of Acquiror’s stockholders; the term of the initial Class II directors shall terminate on the date of the 2019 annual meeting of Acquiror’s stockholders; and the term of the initial Class III directors shall terminate on the date of the 2020 annual meeting of Acquiror’s stockholders or, in each case, upon such director’s earlier death, resignation or removal; notwithstanding anything herein to the contrary, if any GPIAC Designated Director ceases to be on the Acquiror Board for any reason prior to the expiration of such GPIAC Designated Director’s initial term determined pursuant to this Section 7.9 , then Sponsor shall designate a replacement, and Acquiror shall appoint such designee, to serve as a GPIAC Designated Director for the remainder of such initial term;

(d) at least one GPIAC Designated Director shall be appointed to each Committee of the Acquiror Board through the 2020 annual meeting of Acquiror’s stockholders;

(e) the Chairman of the Acquiror Board shall be Seth A. Ravin, who shall serve in such capacity until such time as may otherwise be determined by the Acquiror Board following the Effective Time or upon such Chairman’s earlier death, resignation or removal; and

(f) the initial officers of Acquiror shall be as set forth on Section 7.9(f) of the Acquiror Disclosure Letter, subject to any such individual’s death, resignation, removal or refusal to serve, in which case such position shall be determined by the Acquiror Board following the First Effective Time.

ARTICLE VIII

JOINT COVENANTS

Section 8.1    Preparation of Joint Proxy Statement/Registration Statement; Shareholders’ Meetings and Approvals .

(a) Registration Statement and Prospectus .

(i) As promptly as practicable after the execution of this Agreement, (x) Acquiror and the Company shall jointly prepare and Acquiror and the Company, as applicable, shall file with the SEC, mutually acceptable materials which shall include the proxy statement to be filed with the SEC as part of the Registration Statement and sent to the Acquiror Shareholders relating to the Acquiror Shareholders’ Meeting (such proxy statement, together with any amendments or supplements thereto, the “ Joint Proxy Statement ”) and (ii) Acquiror shall prepare (with the Company’s reasonable cooperation (including causing its Subsidiaries and representatives to cooperate)) and file with the SEC the Registration Statement, in which the Joint Proxy Statement will be included as a prospectus, in connection with the registration under the Securities Act of the Acquiror Common Shares to be issued in connection with the transactions contemplated by this Agreement. Each of Acquiror and the Company shall use its reasonable best efforts to cause the Registration Statement and the Joint Proxy Statement to comply with the rules and regulations promulgated by the SEC, to have the Registration Statement declared effective under the Securities Act as promptly as practicable after such filing and to keep the Registration Statement effective as long as is necessary to consummate the transactions

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contemplated hereby. Acquiror also agrees to use its reasonable best efforts to obtain all necessary state securities law or “Blue Sky” permits and approvals required to carry out the transactions contemplated by this Agreement, and the Company shall furnish all information concerning the Company, its Subsidiaries and any of their respective stockholders as may be reasonably requested in connection with any such action. Each of Acquiror and the Company agrees to furnish to the other party all information concerning itself, its Subsidiaries, officers, directors and stockholders and information regarding such other matters as may be reasonably necessary or advisable or as may be reasonably requested in connection with the Joint Proxy Statement/Registration Statement or any other statement, filing, notice or application made by or on behalf of Acquiror, the Company or their respective Subsidiaries to any regulatory authority (including the NASDAQ) in connection with the Mergers and the other transactions contemplated by this Agreement (the “ Offer Documents ”), including in connection with any tax disclosure in any Offer Document relating to the qualification of the Mergers as a reorganization within the meaning of Section 368(a) of the Code. The Company will cause the Joint Proxy Statement to be mailed to stockholders of the Company and Acquiror will cause the Joint Proxy Statement/Registration Statement to be mailed to Acquiror Shareholders in each case promptly after the Registration Statement is declared effective under the Securities Act.

(ii) To the extent that any opinions relating to the Tax treatment of the Integrated Transaction are required in connection with any Offer Document, the Company shall use its reasonable best efforts to cause Wilson Sonsini Goodrich & Rosati, Professional Corporation, to deliver its opinion to the Company, and Acquiror shall use its reasonable best efforts to cause Skadden, Arps, Slate, Meagher & Flom LLP to deliver its opinion to Acquiror.

(iii) In connection with the opinions relating to the Tax treatment of the Integrated Transaction required to be delivered in connection with any Offer Document, upon the request of Skadden, Arps, Slate, Meagher & Flom LLP and/or Wilson Sonsini Goodrich & Rosati, Professional Corporation, officers of each of the Company and Acquiror shall use their reasonable best efforts to deliver to Skadden, Arps, Slate, Meagher & Flom LLP and Wilson Sonsini Goodrich & Rosati, Professional Corporation, as applicable, certificates, dated as of the necessary date for the relevant Offer Document, signed by such officer of the Company or Acquiror, as applicable, containing customary representations in connection with such opinions.

(iv) Acquiror will advise the Company, promptly after Acquiror receives notice thereof, of the time when the Joint Proxy Statement/Registration Statement has become effective or any supplement or amendment has been filed, of the issuance of any stop order or the suspension of the qualification of the Acquiror Common Stock for offering or sale in any jurisdiction, of the initiation or written threat of any proceeding for any such purpose, or of any request by the SEC for the amendment or supplement of the Joint Proxy Statement/Registration Statement or for additional information. The Company and its counsel shall be given a reasonable opportunity to review and comment on the Joint Proxy Statement/Registration Statement and any Offer Document each time before any such document is filed with the SEC, and Acquiror shall give reasonable and good faith consideration to any comments made by the Company and their counsel. Acquiror shall provide the Company and their counsel with (i) any comments or other communications, whether written or oral, that Acquiror or their counsel may receive from time to time from the SEC or its staff with respect to the Joint Proxy Statement/Registration Statements or Offer Documents promptly after receipt of those comments or other communications and (ii) a reasonable opportunity to participate in the response of Acquiror to those comments and to provide comments on that response (to which reasonable and good faith consideration shall be given), including by participating with Company or their counsel in any discussions or meetings with the SEC.

(v) Each of Acquiror and the Company shall ensure that none of the information supplied by or on its behalf for inclusion or incorporation by reference in (A) the Registration Statement will, at the time the Registration Statement is filed with the SEC, at each time at which it is amended and at the time it becomes effective under the Securities Act, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they are made, not misleading or (B) the Joint Proxy Statement will, at the date it is first mailed to the stockholders of the Company and at the time of the

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Company Stockholders’ Meeting, and at the date it is first mailed to the Acquiror Shareholders and at the time of the Acquiror Shareholders’ Meeting contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading.

(vi) If at any time prior to the First Effective Time any information relating to the Company, Acquiror or any of their respective Subsidiaries, Affiliates, directors or officers is discovered by the Company or Acquiror, which is required to be set forth in an amendment or supplement to the Joint Proxy Statement or the Registration Statement, so that neither of such documents would include any misstatement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the party which discovers such information shall promptly notify the other parties and an appropriate amendment or supplement describing such information shall be promptly filed with the SEC and, to the extent required by Law, disseminated to the stockholders of the Company and/or the Acquiror Shareholders, as applicable.

(b) Acquiror Shareholder Approval . Acquiror shall, as promptly as practicable after the Registration Statement is declared effective under the Securities Act, and, solely with respect to the following clause (1), in any event within thirty (30) Business Days following such date of effectiveness, duly (1) give notice of and (2) convene and hold a meeting of its shareholders (the “ Acquiror Shareholders’ Meeting ”) in accordance with the Acquiror Governing Documents, solely for the purpose of obtaining the Acquiror Shareholder Approval and, if applicable, any approvals related thereto, and provide its shareholders with the opportunity to elect to effect an Acquiror Share Redemption. Acquiror shall, through its Board of Directors, recommend to its shareholders the (A) approval of the change in the jurisdiction of incorporation of Acquiror to the State of Delaware, (B) approval of the change of Acquiror’s name to “Rimini Street, Inc.” upon the Second Effective Time, (C) amendment and restatement of its Acquiror Governing Documents, in substantially the form attached as Exhibits B and C to this Agreement (as may be subsequently amended by mutual written agreement of the Company and Acquiror at any time before the effectiveness of the Registration Statement) in connection with the domestication, including any separate or unbundled proposals as are required to implement the foregoing, (D) the adoption and approval of this Agreement in accordance with applicable Law and exchange rules and regulations, (E) approval of the issuance of shares of Acquiror Common Stock in connection with the First Merger, (F) approval of the issuance of more than twenty percent (20%) of Acquiror’s outstanding common stock pursuant to the rules of NASDAQ, (G) approval of the presence of a Substantial Shareholder (as defined in NASDAQ Rule 5635(e)(3)) having a greater than five percent (5%) in the consideration to be paid in the transactions contemplated hereby, (H) adoption and approval of any other proposals as the SEC (or staff member thereof) may indicate are necessary in its comments to the Registration Statement or correspondence related thereto, (I) approval of the adoption by Acquiror of the equity plans described in Section 7.3 , (J) adoption and approval of any other proposals as reasonably agreed by Acquiror and the Company to be necessary or appropriate in connection with the transactions contemplated hereby, and (K) the adjournment of the Acquiror Shareholders’ Meeting, if necessary, to permit further solicitation of proxies because there are not sufficient votes to approve and adopt any of the foregoing (such proposals in (A) through (K), together, the “ Transaction Proposals ”); provided , however , that notwithstanding anything to the contrary herein, there shall be no limit or restriction on Acquiror’s Boards of Directors’ right to withdraw, amend, qualify or modify its recommendation based on such directors’ finding in good faith (after consulting with legal counsel) that the failure to do so would constitute a breach of their fiduciary duties under applicable Law. Acquiror shall promptly notify the Company in writing of any determination to make any withdrawal of such recommendation or amendment, qualification or modification of such recommendation in a manner adverse to the Company. Acquiror may only postpone or adjourn the Acquiror Shareholders’ Meeting (i) to solicit additional proxies for the purpose of obtaining the Acquiror Shareholder Approval, (ii) for the absence of a quorum and (iii) to allow reasonable additional time for the filing or mailing of any supplemental or amended disclosure that Acquiror has determined after consultation with outside legal counsel is reasonably likely to be required under applicable Law and for such supplemental or amended disclosure to be disseminated and reviewed by stockholders of Acquiror prior to the Acquiror Shareholders’ Meeting.

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(c) Company Stockholder Approvals . Company shall (A) as promptly as practicable after the Registration Statement is declared effective under the Securities Act, and, solely with respect to the following clause (1), in any event within twenty (20) Business Days following such date of effectiveness, duly (1) give notice of and (2) convene and hold a meeting of its stockholders (the “ Company Stockholders’ Meeting ”) in accordance with the NRS, solely for the purpose of obtaining the Company Stockholder Approvals and, if applicable, any approvals related thereto and (B) take all other action necessary or advisable to secure the Company Stockholder Approvals or consent of its stockholders.

(d) The Company and Acquiror shall use their reasonable best efforts to schedule and hold the Company Stockholders’ Meeting approximately ten (10) days prior to the Acquiror Shareholders’ Meeting.

Section 8.2    Support of Transaction .   Without limiting any covenant contained in Article VI or Article VII , Acquiror and the Company shall each, and shall each cause their respective Subsidiaries to: (a) use reasonable best efforts to assemble, prepare and file any information (and, as needed, to supplement such information) as may be reasonably necessary to obtain as promptly as practicable all governmental and regulatory consents required to be obtained in connection with the transactions contemplated hereby, (b) use reasonable best efforts to obtain all material consents and approvals of third parties that any of Acquiror, the Company, or their respective Affiliates are required to obtain in order to consummate the First Merger, (c) endeavor in good faith to assist in optimizing the Company’s capital structure, giving due regard to the Company’s ongoing operating and financial requirements after consultation with the Company’s management, and (d) take such other action as may reasonably be necessary or as another party may reasonably request to satisfy the conditions of Article IX or otherwise to comply with this Agreement and to consummate the transaction contemplated hereby as soon as practicable. Notwithstanding the foregoing and except as otherwise provided in this Agreement, in no event shall the Company or any of its Subsidiaries be obligated to bear any material expense or pay any material fee or grant any material concession in connection with obtaining any consents, authorizations or approvals required in order to consummate the Mergers pursuant to the terms of any Contract (other than this Agreement and the agreements contemplated hereby) to which the Company or any of its Subsidiaries is a party.

Section 8.3    Escrow Agreement .   Each of the Company, the Holder Representative, Acquiror and Merger Sub shall execute and deliver to one another the Escrow Agreement at the Closing.

Section 8.4    Tax Matters .

(a) Acquiror and the Holder Representative shall reasonably cooperate, and shall cause their respective Affiliates to reasonably cooperate, in connection with the filing of Tax Returns and any Action regarding Taxes with respect to any Pre-Closing Tax Period of the Company or its Subsidiaries. Such Tax Returns with respect to Pre-Closing Tax Periods shall be prepared in a manner consistent with the past practices of the Company and its Subsidiaries unless otherwise required by applicable Law. Such cooperation shall include the retention of and (upon the other party’s request) the provision of records and information reasonably relevant to any such Action and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder, and the provision of such powers of attorney as may be necessary to allow for the conduct of Tax audits or proceedings as described in Section 12.3 hereof.

(b) All transfer, documentary, sales, use, real property, stamp, registration and other similar Taxes, fees and costs (including any associated penalties and interest) (“ Transfer Taxes ”) incurred in connection with this Agreement, if any, shall be borne 50% by Acquiror and 50% solely from and to the extent of the Indemnification Escrow Amount, and Acquiror shall timely file all necessary Tax Returns and other documentation with respect to any such Transfer Taxes, and upon Acquiror’s payment of such Transfer Taxes the Holder Representative and the GPIAC-Designated Directors shall instruct the Escrow Agent to satisfy such claim for Damages in respect of 50% of such Transfer Taxes (in the manner prescribed in Section 12.9 ).

(c) None of Acquiror or any of its Affiliates shall (i) amend any Tax Return of the Company or any of its Subsidiaries with respect to any Pre-Closing Tax Period or enter into any voluntary disclosure agreement, engage in any voluntary compliance procedures or make any other similar voluntary contact with any Governmental Authority with respect to any Tax Return of the for any Pre-Closing Tax Period, (ii) consent to the extension or waiver of the limitations period applicable to any Tax claim or assessment with respect to the Company or any of its Subsidiaries for any Pre-Closing Tax Period, (iii) take any action

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other on the Closing Date after the Closing with respect to the Company or any of its Subsidiaries other than in the ordinary course of business, or (iv) make any Tax election with respect to the Company or any of its Subsidiaries that has effect for any Pre-Closing Tax Period, in each case without the prior written consent of the Holder Representative, which consent shall not be unreasonably withheld, conditioned or delayed.

Section 8.5    Escrow Matters .   Each of the Company, the Holder Representative, Acquiror and Merger Sub shall use their respective reasonable best efforts to negotiate in good faith and, prior to or concurrently with the Closing, enter into a mutually agreed escrow agreement (the “ Escrow Agreement ”) with each other and the Escrow Agent for the establishment of the escrow account and provision of the escrow services in accordance with the terms and subject to the conditions of this Agreement. The Escrow Agreement shall provide that all Indemnification Escrow Shares will be issued in the name of the applicable Escrow Stockholder from whom such Indemnification Escrow Shares were withheld and placed in escrow pursuant to Section 3.4 , with full voting rights and entitlement to any dividends thereon, but subject to such restrictions, including with respect to transfer and encumbrance of such Indemnification Escrow Shares, as shall be set forth in the Escrow Agreement. For the purposes of the foregoing, it is understood and agreed that the Escrow Agent shall be deemed mutually agreed.

Section 8.6    Section 16 Matters .   Prior to the First Effective Time, each of the Company and Acquiror shall take all such steps as may be required (to the extent permitted under applicable Law) to cause any dispositions of shares of the Company’s Capital Stock or acquisitions of Acquiror Common Shares (including, in each case, securities deliverable upon exercise, vesting or settlement of any derivative securities) resulting from the transactions contemplated hereby by each individual who may become subject to the reporting requirements of Section 16(a) of the Exchange Act in connection with the transactions contemplated hereby to be exempt under Rule 16b-3 promulgated under the Exchange Act.

Section 8.7    Cooperation with Financing .   Prior to Closing, each of the Company and Acquiror shall, and each of them shall cause its respective Subsidiaries and Affiliates (as applicable) and its and their officers, directors, managers, employees, consultants, counsel, accounts, agents and other representatives to, reasonably cooperate in a timely manner in connection with any financing arrangement the parties seek in connection with the transactions contemplated by this Agreement (it being understood and agreed that the consummation of any such financing in the Company or Acquiror shall be subject to the parties’ mutual agreement), including (i) by providing such information and assistance (including available financial statements and other financial data relating to the Company and its Subsidiaries) as the other party may reasonably request, (ii) granting such access to the other party and its representatives as may be reasonably necessary for their due diligence, and (iii) participating in a reasonable number of meetings, presentations, road shows, drafting sessions, due diligence sessions with respect to such financing efforts (including direct contact between senior management and other representatives of the Company and its Subsidiaries at reasonable times and locations). All such cooperation, assistance and access shall be granted during normal business hours and shall be granted under conditions that shall not unreasonably interfere with the business and operations of the Company, Acquiror, or their respective auditors.

ARTICLE IX

CONDITIONS TO OBLIGATIONS

Section 9.1    Conditions to Obligations of Acquiror, Merger Sub and the Company .   The obligations of Acquiror, Merger Sub and the Company to consummate, or cause to be consummated, the First Merger is subject to the satisfaction of the following conditions, any one or more of which may be waived in writing by all of such parties:

(a) The Acquiror Extension Approval shall have been obtained;

(b) The Acquiror Shareholder Approval shall have been obtained;

(c) The Company Stockholder Approvals shall have been obtained;

(d) The Registration Statement shall have become effective under the Securities Act and no stop order suspending the effectiveness of the Registration Statement shall have been issued and no proceedings for that purposes shall have been initiated or threatened by the SEC and not withdrawn;

(e) All waiting periods under the HSR Act applicable to the Mergers shall have expired or been terminated;

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(f) All other material permits, approvals, clearances, and consents of or filings with any Antitrust Authorities required to be procured or made by Acquiror, Merger Sub and the Company in connection with the Mergers and the transactions contemplated by this Agreement shall have been procured or made, as applicable;

(g) There shall not be in force any Governmental Order, statute, rule or regulation enjoining or prohibiting the consummation of the Mergers;

(h) There shall not be pending any Legal Proceedings by any Governmental Authority seeking to restrain or prohibit the consummation of the Mergers or any other transaction contemplated hereby;

(i) The Available Acquiror Cash shall be no less than Fifty Million Dollars ($50,000,000); and

(j) Following payment by Acquiror to its stockholders who have validly elected to have their Acquiror Common Shares redeemed for cash pursuant to Article 48 of the Acquiror Governing Documents and as part of the Acquiror Share Redemptions, the amount of immediately available cash in the Trust Account shall be no less than $5,000,001 (the “ Minimum Trust Release Amount ”); and

(k) The shares of Acquiror Common Stock to be issued in connection with the First Merger shall have been conditionally approved for listing on NASDAQ, subject to run-off of Acquiror’s current listing and official notice from NASDAQ of such issuance with respect to Acquiror’s post-combination listing.

Section 9.2    Conditions to Obligations of Acquiror and Merger Sub .   The obligations of Acquiror and Merger Sub to consummate, or cause to be consummated, the First Merger are subject to the satisfaction of the following additional conditions, any one or more of which may be waived in writing by Acquiror and Merger Sub:

(a) (i) Each of the representations and warranties of the Company contained in Sections 4.1 , 4.2 , 4.3 , 4.6 and 4.7(b) (the “ Company Fundamental Representations ”) of this Agreement shall be true and correct in all material respects, except for Section 4.6 , which shall be true and correct in all but de minimis respects, in each case as of the Closing Date, as if made anew at and as of that time, except with respect to such representations and warranties which speak as to an earlier date, which representations and warranties shall be true and correct in all material respects at and as of such date, except for changes after the date of this Agreement which are contemplated or expressly permitted by this Agreement, and (ii) each of the representations and warranties of the Company contained in this Agreement other than the Company Fundamental Representations (disregarding any qualifications and exceptions contained therein relating to materiality, material adverse effect and Company Material Adverse Effect or any similar qualification or exception) shall be true and correct as of the Closing Date, as if made anew at and as of that time, except with respect to such representations and warranties which speak as to an earlier date, which representations and warranties shall be true and correct at and as of such date, except for, in each case, (x) inaccuracies or omissions that would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect and (y) changes after the date of this Agreement which are contemplated or expressly permitted by this Agreement;

(b) Each of the covenants of the Company to be performed as of or prior to the Closing shall have been performed in all material respects;

(c) The Company shall have delivered to Acquiror a certificate signed by an officer of the Company, dated the Closing Date, certifying that, to the knowledge and belief of such officer, the conditions specified in Section 9.2(a) and Section 9.2(b) have been fulfilled;

(d) The Escrow Agreement shall have been duly executed by all parties other than Acquiror and Merger Sub;

(e) Since the date of this Agreement through the Closing Date, there shall not have been any Company Material Adverse Effect; and

Section 9.3    Conditions to the Obligations of the Company .   The obligation of the Company to consummate the First Merger is subject to the satisfaction of the following additional conditions, any one or more of which may be waived in writing by the Company:

(a) (i) Each of the representations and warranties of Acquiror contained in Sections 5.1 , 5.2 , 5.3 , 5.9 , 5.14 (the “ Acquiror Fundamental Representations ”) of this Agreement shall be true and correct in all

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material respects, except for Section 5.9 , which shall be true and correct in all but de minimis respects, in each case as of the Closing Date, as if made anew at and as of that time, except with respect to such representations and warranties which speak as to an earlier date, which representations and warranties shall be true and correct in all material respects at and as of such date, except for changes after the date of this Agreement which are contemplated or expressly permitted by this Agreement, and (ii) each of the representations and warranties of Acquiror contained in this Agreement other than the Acquiror Fundamental Representations (disregarding any qualifications and exceptions contained therein relating to materiality, material adverse effect and Acquiror Material Adverse Effect or any similar qualification or exception) shall be true and correct as of the Closing Date, as if made anew at and as of that time, except with respect to such representations and warranties which speak as to an earlier date, which representations and warranties shall be true and correct at and as of such date, except for, in each case, (x) inaccuracies or omissions that would not, individually or in the aggregate, reasonably be expected to have an Acquiror Material Adverse Effect and (y) changes after the date of this Agreement which are contemplated or expressly permitted by this Agreement;

(b) Each of the covenants of Acquiror to be performed as of or prior to the Closing shall have been performed in all material respects;

(c) Acquiror shall have delivered to the Company a certificate signed by an officer of Acquiror, dated the Closing Date, certifying that, to the knowledge and belief of such officer, the conditions specified in Section 9.3(a) and Section 9.3(b) have been fulfilled;

(d) Since the date of this Agreement through the Closing Date, there shall not have been any Acquiror Material Adverse Effect;

(e) The Escrow Agreement shall have been duly executed by all parties other than the Company and Holder Representative;

(f) The directors designated pursuant to Section 7.9 shall have been appointed in accordance with the DGCL and the Acquiror Governing Documents to serve on the Acquiror Board effective as of the First Effective Time; and

(g) Acquiror shall have made all necessary and appropriate arrangements with the Trustee to have all of the funds contained in the Trust Account disbursed to Acquiror immediately prior to the Closing, and all such funds released from the Trust Account shall be available to Acquiror in respect of all or a portion of the payment obligations set forth in Section 7.4 and the payment of Acquiror’s fees and expenses incurred in connection with this Agreement and the transactions herein contemplated.

ARTICLE X

TERMINATION/EFFECTIVENESS

Section 10.1    Termination .   This Agreement may be terminated and the transactions contemplated hereby abandoned:

(a) by written consent of the Company and Acquiror;

(b) by either the Company or Acquiror if any Governmental Authority in the United States shall have enacted, issued, promulgated, enforced or entered any injunction, order, decree or ruling (whether temporary, preliminary or permanent) which has become final and nonappealable and has the effect of making consummation of the Mergers illegal or otherwise preventing or prohibiting consummation of the Mergers;

(c) by either the Company or Acquiror if the Acquiror Extension Approval shall have not been obtained by reason of the failure to obtain the required vote at the Extension Shareholders’ Meeting duly convened therefor or at any adjournment or postponement thereof;

(d) by either the Company or Acquiror if the Acquiror Shareholder Approval shall not have been obtained by reason of the failure to obtain the required vote at the Acquiror Shareholders’ Meeting duly convened therefor or at any adjournment or postponement thereof;

(e) prior to the Closing, by written notice to the Company from Acquiror if (i) there is any material breach of any representation, warranty, covenant or agreement on the part of the Company set forth in this

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Agreement, such that the conditions specified in Section 9.2(a) or Section 9.2(b) would not be satisfied at the Closing (a “ Terminating Company Breach ”), except that, if such Terminating Company Breach is curable by the Company through the exercise of its reasonable best efforts, then, for a period of up to twenty (20) days after receipt by the Company of notice from Acquiror of such breach, but only as long as the Company continues to use its reasonable best efforts to cure such Terminating Company Breach (the “ Company Cure Period ”), such termination shall not be effective, and such termination shall become effective only if the Terminating Company Breach is not cured within the Company Cure Period, (ii) the consummation of any of the transactions contemplated hereby is permanently enjoined, prohibited or otherwise restrained or made illegal by the terms of a final, non-appealable order or judgment of a court of competent jurisdiction, (iii) the Closing has not occurred on or before August 31, 2017 (the “ End Date ”), unless Acquiror is in willful breach hereof and such breach is the primary reason for the Closing not occurring on or before such date; provided , however , that in the event any of the conditions set forth in Section 9.1(a) , Section 9.1(b) , Section 9.1(c) , Section 9.1(d) , Section 9.1(e) , Section 9.1(f) , Section 9.1(i) , Section 9.1(j) or Section 9.1(k) shall not have been satisfied on or before the End Date but all of the other conditions set forth in Section 9.1 have been satisfied or are capable of being satisfied on or before the End Date, either Acquiror or the Company may by notice delivered to the other party unilaterally extend the End Date to November 17, 2017, in which case the End Date shall be deemed for all purposes to be such date; provided , further , that in the event that Acquiror delivers such a notice to extend the End Date, any subsequent event of default of the Company under its current financing arrangements as a result of not raising such capital as the Company is required to obtain under such arrangements on or before September 1, 2017, shall not in itself be deemed a failure of any condition in Section 9.2 or give rise to a right to indemnification on the part of the Acquiror Pre-Closing Holders or (iv) a fully-executed copy of each of the Transaction Support and Voting Agreements has not been received by Acquiror by 5:00 p.m. EDT on the Business Day of the execution and delivery of this Agreement; or

(f) prior to the Closing, by written notice to Acquiror from the Company if (i) there is any material breach of any representation, warranty, covenant or agreement on the part of Acquiror or Merger Sub set forth in this Agreement, such that the conditions specified in Section 9.3(a) and Section 9.3(b) would not be satisfied at the Closing (a “ Terminating Acquiror Breach ”), except that, if any such Terminating Acquiror Breach is curable by Acquiror through the exercise of its reasonable best efforts, then, for a period of up to twenty (20) days after receipt by Acquiror of notice from the Company of such breach, but only as long as Acquiror continues to exercise such reasonable best efforts to cure such Terminating Acquiror Breach (the “ Acquiror Cure Period ”), such termination shall not be effective, and such termination shall become effective only if the Terminating Acquiror Breach is not cured within the Acquiror Cure Period, (ii) the First Merger shall not have been consummated on the second Business Day (the “ Notification Date ”) after all of the conditions set forth in Article IX (other than conditions that by their nature are to be satisfied at the Closing) have been satisfied on the Notification Date; provided that the Company shall not terminate this Agreement pursuant to this Section 10.1(f)(ii) unless (A) the Company gives Acquiror prior notice of such proposed termination on or following the Notification Date and (B) the First Merger is not consummated on or prior to the day that is two Business Days following the date of delivery of such notice, (iii) the Closing has not occurred on or before the End Date (as may be extended as provided in Section 10.1(c) ), unless the Company is in willful breach hereof and such breach is the primary reason for the Closing not occurring on or before such date, or (iv) the consummation of any of the transactions contemplated hereby is permanently enjoined, prohibited or otherwise restrained or made illegal by the terms of a final, non-appealable order or judgment of a court of competent jurisdiction.

Section 10.2    Effect of Termination .   In the event of the termination of this Agreement pursuant to Section 10.1 , this Agreement shall forthwith become void and have no effect, without any liability on the part of any party hereto or its respective Affiliates, officers, directors or stockholders, other than liability of the Company, Acquiror or Merger Sub, as the case may be, for any breach of this Agreement occurring prior to such termination, except that (i) the provisions of Sections 10.2 , 13.5 , 13.6 , 13.7 , 13.14 and 13.16 herein, Article XI herein, and the Confidentiality Agreement, shall survive any termination of this Agreement and (ii) notwithstanding anything to the contrary contained in this Agreement, neither Acquiror nor the Company shall be relieved or released from any liabilities arising out of its willful and material breach of any covenant of this Agreement prior to such termination or willful and material breach of any of its representations and warranties set forth in this Agreement prior to such termination.

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ARTICLE XI

HOLDER REPRESENTATIVE; GPIAC-DESIGNATED DIRECTORS

Section 11.1    Holder Representative .

(a) Designation of Holder Representative . The parties have agreed that it is desirable to designate a representative to act on behalf of Pre-Closing Holders as specified herein (the “ Holder Representative ”). The Company and each Pre-Closing Holder hereby appoints Robin Murray as the representative, agent and attorney-in-fact of the Pre-Closing Holders with full powers of substitution to act in the name, place and stead of the Pre-Closing Holders with respect to the performance on behalf of the Pre-Closing Holders under the terms and provisions of this Agreement and the related agreements, as the same may be from time to time amended, and to do or refrain from doing all such further acts and things, and to execute all such documents on behalf of the Pre-Closing Holders as the Holder Representative deems necessary or appropriate without inquiry of and without additional approval from the Pre-Closing Holders in connection with any of the transactions contemplated by this Agreement and the related agreements, including those authorities identified in subsection (c) below. This grant of authority (including the appointment of agency and this power of attorney) (i) shall be deemed to be facts ascertainable outside of this Agreement and shall be binding on the Pre-Closing Holders, (ii) is coupled with an interest and will be irrevocable and will not be terminated by any Pre-Closing Holder or by operation of Law, whether by the death, incompetence, bankruptcy, liquidation or incapacity of any Pre-Closing Holder or the occurrence of any other event, and any action taken by Holder Representative will be as valid as if such death, incompetence, bankruptcy, liquidation, incapacity or other event had not occurred, regardless of whether or not any Pre-Closing Holder or Holder Representative will have received any notice thereof and shall be binding on any successor thereto and (iii) shall survive the delivery of an assignment by any Escrow Stockholder of the whole or fraction of his, her or its interest in the Indemnification Escrow Shares.

(b) Replacement of Holder Representative . The Holder Representative may resign at any time, and the Holder Representative may be removed by the vote of Escrow Stockholders who collectively own more than fifty percent (50%) of the Indemnification Escrow Shares (the “ Majority Holders ”). In the event that a Holder Representative resigns or is removed in accordance herewith, a new Holder Representative shall be appointed by a vote of the Majority Holders, such appointment to become effective upon the written acceptance thereof by the new Holder Representative.

(c) Authority and Rights of the Holder Representative; Limitations on Liability . The Holder Representative shall have such powers and authority as are granted in this Section 11.1 ; provided , however , that the Holder Representative shall have no obligation to act on behalf of the Pre-Closing Holders, except as expressly provided herein. Without limiting the generality of the foregoing, the Holder Representative shall have full power, authority and discretion to, for and on behalf of the Pre-Closing Holders (and, as applicable, the Escrow Stockholders):

(i) from and after the Closing, negotiate and enter into amendments to this Agreement and the other related agreements;

(ii) agree to, dispute, negotiate, compromise, settle and take other actions as may be necessary or desirable in respect of any matters contemplated by this Agreement or the other related agreements, including in connection with final calculation and determination of Closing Date Indebtedness, Closing Date Cash and Closing Date Unpaid Transaction Expenses, as contemplated in Section 3.6 ;

(iii) authorize, administer or object to the release and disbursement of the Indemnification Escrow Shares pursuant to Section 12 ; provided, however, the Holder Representative is not acting as a withholding agent or in any similar capacity in connection with the Indemnification Escrow Shares and is not responsible for any Tax reporting or withholding with respect thereto;

(iv) to deduct and/or hold back any funds that may be payable to any Pre-Closing Holder pursuant to the terms of this Agreement or the other related agreements in order to pay any amount that may be payable by such Pre-Closing Holder to the Holder Representative under the terms of this Section 11.1 ;

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(v) to give and receive all notices, communications and to receive and accept service of legal process in connection with any action, suit or proceeding arising under this Agreement or the other related agreements;

(vi) to act for the Pre-Closing Holders with respect to all indemnification matters referred to in this Agreement or the other related agreements, including the right to negotiate and compromise on behalf of the Pre-Closing Holders any indemnification claim made by or against the Pre-Closing Holders;

(vii) to disburse funds or Indemnification Escrow Shares (to the extent such Indemnification Escrow Shares are released to the Holder Representative pursuant to the terms of clause (xi) below) to third parties for expenses and liabilities;

(viii) to engage, employ and obtain the advice of legal counsel, accountants and other professional advisors and rely on their advice and counsel, and to incur and pay fees and expenses of such advisors on behalf of the Pre-Closing Holders, in each case following reasonable prior consultation with the Escrow Stockholders, to the extent practicable;

(ix) to take or refrain from taking all actions necessary or appropriate on behalf of the Pre-Closing Holders in the sole judgment of Holder Representative for the accomplishment of the foregoing or required or permitted by the terms of this Agreement or the other related agreements; and

(x) to do each and every act and exercise any and all rights which such Pre-Closing Holder, or any or all of the Pre-Closing Holders collectively, are permitted or required to do or exercise under this Agreement or any related agreement.

(xi) The Holder Representative shall have no liability to Acquiror, the Company, any Pre-Closing Holder or any other holder of Common Stock or Options, with respect to actions taken or omitted to be taken in his capacity as the Holder Representative (except for those arising out of the Holder Representative’s gross negligence or willful misconduct). The Escrow Stockholders shall indemnify, defend and hold harmless the Holder Representative from and against any loss, liability, damage, claim, costs, fees or expenses (including the fees and expenses of counsel and experts and their staffs and all expense of document location, duplication and shipment), and shall advance and reimburse costs, fees and expenses, in each case arising out of or in connection with the performance of the Holder Representative of his duties in accordance with their Applicable Percentage (except for those arising out of the Holder Representative’s gross negligence or willful misconduct). A decision, act, consent or instruction of the Holder Representative shall constitute a decision of all Pre-Closing Holders and shall be final, binding and conclusive upon each such Pre-Closing Holder. The Holder Representative shall at all times be entitled to rely on any directions, acts, consents, waivers or instructions received from the Escrow Stockholders (acting unanimously) and shall act in accordance with such instructions. In the event that the Holder Representative does not receive unanimous direction from the Escrow Stockholders with respect to a given contemplated action, he shall have no obligation to take any such action or any liability with respect to the failure to take such action. If not paid directly to Holder Representative by the Escrow Stockholders, any such amounts may be recovered by Holder Representative from the Indemnification Escrow Shares at such time as remaining shares would otherwise be released to the Escrow Stockholders pursuant to Section 12.9 ; provided, that while this section allows Holder Representative to be paid from the aforementioned source of shares, this does not relieve the Escrow Stockholders from their obligation to promptly pay such amounts as they are suffered or incurred, nor does it prevent the Holder Representative from seeking any remedies available to him at law or otherwise. In no event will the Holder Representative be required (absent his specific agreement to do so, in his sole discretion) to incur costs, expenses or fees or advance its own funds on behalf of the Escrow Stockholders or the Pre-Closing Holders, or in any other manner in connection with the performance of his duties as the Holder Representative. Notwithstanding anything in this Agreement to the contrary, any restrictions or limitations on liability or indemnity set forth elsewhere in this Agreement are not intended to be applicable to the indemnities provided to the Holder Representative under this section. The foregoing indemnities will survive the Closing, the resignation or removal of the Holder Representative or the termination of this Agreement.

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Notwithstanding any other provision contained herein, the Holder Representative shall not have authority to settle any claim in excess of the Indemnification Escrow Shares without the prior written consent of each Pre-Closing Holder responsible for the payment of any amount in excess of the Indemnification Escrow Shares.

Section 11.2    GPIAC-Designated Directors .

(a) Designation the GPIAC Designated Directors. Prior to the effectiveness of the Registration Statement, the board of directors of Acquiror shall designate two individuals (the “ GPIAC Designated Directors ”) to serve as representatives of Acquiror from and after the First Effective Time and to act on behalf of Acquiror to take all necessary actions and make all decisions and direct all actions of Acquiror related to its rights and obligations (and the rights of the Acquiror Pre-Closing Holders and the GPIAC Indemnified Parties) hereunder and pursuant to the Escrow Agreement on behalf of Acquiror. In the event of a GPIAC Designated Director’s death, resignation, removal or refusal to serve, then, if prior to the First Effective Time, the board of directors of Acquiror or, if following the First Effective Time, the Sponsor, shall designate another individual as a replacement for such GPIAC Designated Director.

(b) Authority and Rights of the GPIAC Designated Directors . Each of the GPIAC Designated Directors shall have such powers and authority as are necessary to carry out the functions assigned to it under this Agreement; provided , however , that the GPIAC Designated Directors shall have no obligation to act on behalf of the Acquiror Pre-Closing Holders, except as expressly provided herein. Without limiting the generality of the foregoing, the GPIAC Designated Directors shall have full power, authority and discretion, for and on behalf of the Acquiror Pre-Closing Holders (and as applicable to the extent provided in this Agreement, on behalf of Acquiror), to (i) after the Closing, negotiate and enter into amendments to this Agreement and the Escrow Agreement, (ii) dispute, negotiate, settle and take other actions as may be required in connection with final calculation and determination of Closing Date Indebtedness, Closing Date Cash and Closing Date Unpaid Transaction Expenses, as contemplated in Section 3.6 , and (iii) dispute, negotiate, settle and take other actions as may be required in connection with Article XII , including in respect of any Specified Co-Founder Fraud Claims and Specified Pre-Closing Holder Fraud Claims and to administer the release and cancellation of the Indemnification Escrow Shares or other disbursement pursuant to Section 14.4 and Section 12.8 . None of the GPIAC Designated Directors shall have any liability to Acquiror, the Company or any holder of Acquiror Common Shares or Acquiror Preferred Shares or warrants to purchase Acquiror Common Shares or Acquiror Preferred Shares, with respect to actions taken or omitted to be taken in his or her capacity as a GPIAC Designated Director as designated hereunder (except for those arising out of such GPIAC Designated Director’s gross negligence or willful misconduct), but without effect on such GPIAC Designated Director’s duties to Acquiror and its shareholders in his or her capacity as a member of the board of directors of Acquiror in matters unrelated to this Agreement and the transactions contemplated hereby.

ARTICLE XII

INDEMNIFICATION

Section 12.1    Survival of Representations, Warranties and Covenants .   Each representation warranty, covenant and obligation contained herein and any certificate related to any such representation, warranty, covenant or obligation will survive the Closing and continue in full force and effect for one (1) year after the Closing Date (the “ Survival Expiration Date ”); provided , further , that any covenant contained in this Agreement that, by its terms, provides for performance following the Closing Date shall survive until such covenant is performed. No Indemnification Claim for breach of any representation, warranty, covenant or agreement contained in, or otherwise pursuant to, this Agreement (other than any covenant that provides for performance following the Closing) may be asserted pursuant to this Agreement unless (i) on or before the Survival Expiration Date, such claim is asserted by proper written notice in accordance with this Article XII , specifying, in reasonable detail, the basis of the claim, and (ii) such claim is made in respect of Damages specified, in reasonable detail, and incurred prior to the Survival Expiration Date, or, to the extent arising out of a third party claim (including any claim by any Governmental Authority) asserted in writing prior to the Survival Expiration Date, such claim is made in respect of a reasonably estimated amount of Damages reasonably expected to arise in connection with such claim.

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Section 12.2    Indemnification .

(a) Subject to Section 12.4 , from and after the First Effective Time and until and through the Survival Expiration Date, holders of Acquiror Common Shares immediately before the First Effective Time (collectively, the “ Acquiror Pre-Closing Holders ” or the “ GPIAC Indemnified Parties ”) shall be entitled to indemnification from the Indemnification Escrow Shares for any and all Damages to the extent arising from:

(i) any breach of any representation or warranty the Company has made in this Agreement or in the certificate to be delivered pursuant to Section 9.2(c) (a “ Company Warranty Breach ”) (provided that any qualification or exception relating to materiality, material adverse effect or “Company Material Adverse Effect” shall be disregarded for purposes of determining the amount of any Damages and for purposes of determining whether such representation or warranty has been breached);

(ii) any breach by the Company or its Subsidiaries of any covenant or agreement of the Company or its Subsidiaries in this Agreement;

(iii) any Deficit Amount, as finally determined in accordance with Section 3.6 ;

(iv) any Pre-Closing Holder’s exercise of dissenters’ rights; and

(v) any Legal Proceeding by any Pre-Closing Holder against Acquiror or the Company, or their respective officers and directors, in each case, arising out of or related to this Agreement or the Mergers.

(b) Subject to Section 12.4 , from and after the First Effective Time and until and through the Survival Expiration Date, Acquiror shall indemnify, defend and hold the Holder Representative and the Pre-Closing Holders (collectively, the “ Seller Indemnified Parties ”) harmless for any and all Damages to the extent arising from (i) any breach of any representation or warranty Acquiror or Merger Sub has made in this Agreement or in the certificate to be delivered pursuant to Section 9.3(c) (an “ Acquiror Warranty Breach ”) (provided that any qualification or exception relating to materiality, material adverse effect or Acquiror Material Adverse Effect shall be disregarded solely for purposes of determining the amount of any Damages, but not for purposes of determining whether such representation or warranty has been breached) or (ii) any breach by Acquiror or Merger Sub of any covenant or agreement of Acquiror or Merger Sub in this Agreement.

(c) The amount of indemnification to which an Indemnified Party shall be entitled under this Article XII shall be determined: (i) by the written agreement between the Indemnified Party and the Indemnitor; (ii) with respect to any Deficit Amount, in the manner set forth in Section 12.3(e) ; (iii) by a final judgment or decree of any court of competent jurisdiction; or (iv) by any other means to which the Indemnified Party and the Indemnitor shall agree in writing. The judgment or decree of a court shall be deemed final when the time for appeal, if any, shall have expired and no appeal shall have been taken or when all appeals taken shall have been finally determined. The Indemnified Party shall have the burden of proof in establishing the amount of Damages suffered by it.

Section 12.3    Indemnification Claim Procedures .

(a) If any Action is commenced or threatened that may give rise to a claim for indemnification (an “ Indemnification Claim ”) by any Person entitled to indemnification under this Agreement (each, an “ Indemnified Party ”), then such Indemnified Party shall promptly (i) notify the Indemnitor and (ii) deliver to the Indemnitor a written notice (A) describing in reasonable detail the nature of the Action, (B) including a copy of all papers served with respect to such Action, (C) including the Indemnified Party’s best estimate of the amount of Damages that may arise from such Action, and (D) describing in reasonable detail the basis for the Indemnified Party’s Indemnification Claim under this Agreement. Failure to notify the Indemnitor in accordance with this Section 12.3(a) will not relieve the Indemnitor of any liability that it may have to the Indemnified Party, except to the extent (1) the defense of such Action is prejudiced by the Indemnified Party’s failure to give such notice or (2) the Indemnified Party fails to notify the Indemnitor of such Indemnification Claim in accordance with this Section 12.3(a) prior to the Survival Expiration Date.

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(b) An Indemnitor may elect at any time to assume and thereafter conduct the defense of any Action subject to any such Indemnification Claim with counsel of the Indemnitor’s choice and to settle or compromise any such Action, and each Indemnified Party shall cooperate in all respects with the conduct of such defense by the Indemnitor (including the making of any related claims, counterclaim or cross complaint against any Person in connection with the Action) and/or the settlement of such Action by the Indemnitor; provided , however , that (1) the Indemnified Party shall be entitled to participate in any such defense with separate counsel at the reasonable expense of the Indemnitor if (x) so requested by the Indemnitor in writing or (y) in the reasonable opinion of counsel to the Indemnified Party, representation of the Indemnified Party and the Indemnitor would create a conflict of interest; provided , that in any such circumstance the Indemnitor shall not be required to pay for more than one such counsel for all Indemnified Parties in connection with any Indemnification Claim, and (2) the Indemnitor will not approve of the entry of any judgment or enter into any settlement or compromise with respect to the Indemnification Claim without the Indemnified Party’s prior written approval (which must not be unreasonably withheld or delayed), unless the terms of such settlement provide for a complete release of the claims that are the subject of such Action in favor of the Indemnified Party. If the Indemnified Party gives an Indemnitor notice of an Indemnification Claim and the Indemnitor does not, within sixty (60) days after such notice is given, (i) give notice to the Indemnified Party of its election to assume the defense of the Action or Actions subject to such Indemnification Claim and (ii) thereafter promptly assume such defense, then the Indemnified Party may conduct the defense of such Action; provided , however , that (A) the Indemnified Party will not agree to the entry of any judgment or enter into any settlement or compromise with respect to the Action or Actions subject to any such Indemnification Claim without the prior written consent of the Indemnitor (which consent shall not be unreasonably withheld) and (B) if at any time the Indemnitor acknowledges in writing that such Action is a Damage subject to this Article XII , the Indemnitor may thereafter assume the defense of such Action.

(c) If any Indemnified Party becomes aware of any circumstances that may be reasonably likely to give rise to an Indemnification Claim for any matter not involving an Action, then such Indemnified Party shall promptly (i) notify the Indemnitor and (ii) deliver to the Indemnitor a written notice (A) describing in reasonable detail the nature of the circumstances giving rise to the Indemnification Claim, (B) including the Indemnified Party’s best estimate of the amount of Damages that may arise from such circumstances, and (C) describing in reasonable detail the basis for the Indemnified Party’s Indemnification Claim under this Agreement. Failure to notify the Indemnitor in accordance with this Section 12.3(c) will not relieve the Indemnitor of any liability that it may have to the Indemnified Party, except to the extent (1) the defense of such Action is prejudiced by the Indemnified Party’s failure to give such notice or (2) the Indemnified Party fails to notify the Indemnitor of such Indemnification Claim in accordance with this Section 12.3(c) prior to the Survival Expiration Date.

(d) At the reasonable request of the Indemnitor, each Indemnified Party shall grant the Indemnitor and its representatives all reasonable access to the books, records, employees and properties of such Indemnified Party to the extent reasonably related to the matters to which the applicable Indemnification Claim relates. All such access shall be granted during normal business hours and shall be granted under the conditions which shall not unreasonably interfere with the business and operations of such Indemnified Party.

(e) The claim procedures otherwise specified in this Section 12.3 shall not apply to indemnification claims in respect of any Deficit Amount. In the event of a Deficit Amount, as finally determined in accordance with Section 3.6 , then, promptly following the Determination Date, and in any event within five (5) Business Days of the Determination Date, the GPIAC-Designated Directors and the Holder Representative shall execute a joint written instruction to the Escrow Agent instructing the Escrow Agent to disburse to Acquiror an amount of Acquiror Common Shares equal to (A) (i) the Deficit Amount, divided by $10.00; divided by (B) the Closing Ownership Ratio. Upon receipt of such Acquiror Common Shares from the Escrow Agent, Acquiror shall promptly cancel such shares.

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Section 12.4    Limitations on Indemnification Liability .   Notwithstanding any provision of this Agreement to the contrary, any claims an Indemnified Party makes under this Article XII will be limited as follows:

(a) Source and Order of Recovery . If there is determined to be any amount owing to a GPIAC Indemnified Party as a result of indemnification under this Article XII , the amount of then-remaining Indemnification Escrow Shares shall be a GPIAC Indemnified Party’s sole source of recovery with respect to any and all amounts owed to a GPIAC Indemnified Party pursuant to this Article XII , except in the case of fraud, in which case:

(i) in respect of claims against (A) the Company or (B) a Co-Founder, whether in such Co-Founder’s capacity as a Stockholder, director, officer or employee of the Company, who was perpetrator or had actual knowledge of fraud (any such claim under clause (A) or clause (B), a “ Specified Co-Founder Fraud Claim ”), then (A) Damages shall first be paid out of the then-remaining Indemnification Escrow Shares and (B) if the amount then-remaining in the Indemnification Escrow Shares is insufficient to satisfy in full any amount owing to a GPIAC Indemnified Party in respect of such Specified Co-Founder Fraud Claim, then the GPIAC Indemnified Party shall only be entitled to recourse directly against the Co-Founders for the amount of Damages in excess of the then-remaining Indemnification Escrow Shares and shall not be entitled to recourse against any other Pre-Closing Holder in respect of such Specified Co-Founder Fraud Claim; and

(ii) notwithstanding the foregoing, if a Pre-Closing Holder (other than the Co-Founders), whether in such Pre-Closing Holder’s capacity as a Stockholder, director, officer or employee of the Company, was a perpetrator or had actual knowledge of fraud (“ Specified Pre-Closing Holder Fraud Claim ”), then (A) Damages relating to such Specified Pre-Closing Holder Fraud Claim shall first be paid out of the then-remaining Indemnification Escrow Shares and (B) if the amount then-remaining in the Indemnification Escrow Shares is insufficient to satisfy in full any amount owing to a GPIAC Indemnified Party in respect of such Specified Pre-Closing Holder Fraud Claim, then the GPIAC Indemnified Party shall only be entitled to recourse directly against such Pre-Closing Holder and the Co-Founders for the amount of Damages in excess of the then-remaining Indemnification Escrow Shares and shall not be entitled to recourse against any other Pre-Closing Holder in respect of such Specified Pre-Closing Holder Fraud Claim; provided that the Pre-Closing Holder and the Co-Founders shall first satisfy their obligations to the GPIAC Indemnified Party in excess of the then-remaining Indemnification Escrow Shares through the delivery of Acquiror Common Shares then held by such Persons, pursuant to the formula described below. The amount of any Acquiror Common Shares necessary to satisfy any such excess shall equal (x) such excess amount of Damages to be satisfied through the delivery of Acquiror Common Shares divided by $10.00, divided by (y) the Closing Ownership Ratio. Upon determination of the amount of Acquiror Common Shares necessary to satisfy any Damages under this Section 12.4(a)(ii) , such Pre-Closing Holder and such Co-Founders shall promptly and, in any event, within five (5) Business Days, remit such amount of Acquiror Common Shares to Acquiror for cancellation;

provided , however , that Section 12.4(a)(i) and Section 12.4(a)(ii) shall not be mutually exclusive and the liability of any Pre-Closing Holder or Co-Founder resulting from any claim that is finally determined pursuant to both a Specified Co-Founder Fraud Claim and a Specified Pre-Closing Holder Fraud Claim shall be several and shall be satisfied pursuant to Section 12.4(a)(i) and Section 12.4(a)(ii) , as applicable, in the relative proportion of each such Persons’ comparative fault in respect of such claims.

(b) Claims Basket . The GPIAC Indemnified Parties shall not be entitled to indemnification pursuant to this Article XII with respect to any Indemnification Claim made with respect to a Company Warranty Breach (other than Company Warranty Breaches with respect to Company Fundamental Representations) unless and until the amount of Damages (excluding costs and expenses of GPIAC Indemnified Parties incurred in connection with making such claim under this Agreement) incurred by the GPIAC Indemnified Parties that are the subject of such claim exceeds $75,000 (the “ Per-Claim Basket ”), and the GPIAC Indemnified Parties shall only be entitled to indemnification pursuant to this Article XII with respect to Indemnification Claims made with respect to Company Warranty Breaches (other than Company Warranty Breaches with respect to Company Fundamental Representations) to the extent the aggregate amount of all Damages (excluding costs and expenses of GPIAC Indemnified Parties incurred in connection with making such claim under this Agreement) incurred by the GPIAC Indemnified Parties for which the GPIAC

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Indemnified Parties are entitled to indemnification pursuant to this Article XII for all such Indemnification Claims (excluding amounts below the applicable Per-Claim Basket) exceeds One Million Seven Hundred and Fifty Thousand Dollars ($1,750,000) (the “ Basket Amount ”). Once the Basket Amount is exceeded, if at all, the GPIAC Indemnified Parties shall only be entitled to indemnification for such Damages to the extent both (i) such Damages considered on a per-claim basis exceed the Per-Claim Basket, and (ii) Damages in respect of all such Indemnification Claims that satisfy clause (i) of this sentence exceed the Basket Amount. Other than with respect to any claim or counterclaim for breach by Acquiror of any representations, warranties or covenants set forth in Article V or Article VII , the Seller Indemnified Parties shall not be entitled to indemnification pursuant to this Article XII with respect to any Indemnification Claim made with respect to an Acquiror Warranty Breach (other than Acquiror Warranty Breaches with respect to Acquiror Fundamental Representations) unless and until the amount of Damages incurred by the Seller Indemnified Parties that are the subject of such claim exceeds the Per-Claim Basket, and the Seller Indemnified Parties shall only be entitled to indemnification pursuant to this Article XII with respect to Indemnification Claims made with respect to Acquiror Warranty Breaches (other than Acquiror Warranty Breaches with respect to Acquiror Fundamental Representations) to the extent the aggregate amount of all Damages incurred by the Seller Indemnified Parties for which the Seller Indemnified Parties are entitled to indemnification pursuant to this Article XII for all such Indemnification Claims (excluding amounts below the applicable Per-Claim Basket) exceeds the Basket Amount. Once the Basket Amount is exceeded, if at all, the Seller Indemnified Parties shall only be entitled to indemnification for such Damages to the extent both (i) such Damages considered on a per-claim basis exceed the Per-Claim Basket, and (ii) Damages in respect of all such Indemnification Claims that satisfy clause (i) of this sentence exceed the Basket Amount.

(c) Damages Net of Insurance Proceeds, Tax Benefits and Other Third-Party Recoveries . All Damages for which any Indemnified Party would otherwise be entitled to indemnification under this Article XII shall be reduced by the amount of insurance proceeds, Tax benefits actually realized by the Indemnified Party in the taxable year in which such indemnification payment is made, indemnification payments and other third-party recoveries which any Indemnified Party actually receives in respect of any Damages incurred by such Indemnified Party, net of applicable reserves, and deductibles, and reasonable internal or third party expenses actually incurred in obtaining or receiving such recoveries. In the event any Indemnified Party is entitled to any such insurance proceeds, Tax benefits, indemnity payments or any third-party recoveries in respect of any Damages for which such Indemnified Party is entitled to indemnification pursuant to this Article XII, such Indemnified Party shall use commercially reasonable efforts to obtain, receive or realize such proceeds, benefits, payments or recoveries. In the event that any such insurance proceeds, Tax benefits, indemnity payments or other third-party recoveries are realized by an Indemnified Party subsequent to receipt by such Indemnified Party of any indemnification payment hereunder in respect of the claims to which such insurance proceeds, Tax benefits, indemnity payments or other third-party recoveries relate, appropriate refunds shall be made promptly by the relevant Indemnified Parties of all or the relevant portion of such indemnification payment.

(d) Assignment of Claims . If any Indemnified Party receives any indemnification payment pursuant to this Article XII , at the election of the Indemnitor, such Indemnified Party shall assign to the Indemnitor all of its claims for recovery against third Persons as to such Damages, whether by insurance coverage, contribution claims, subrogation or otherwise.

(e) Expenses . In the event that the Holder Representative assumes any defense of any Action for which a GPIAC Indemnified Party has sought indemnification, reasonable expenses incurred by any Seller Indemnified Party in connection therewith, including reasonable legal costs and expenses, shall constitute Damages for purposes of determining the maximum aggregate amount to which the GPIAC Indemnified Parties shall be entitled pursuant to Section 12.4(a) .

(f) Consequential, Punitive and Certain Other Damages . No Indemnified Party shall be entitled to indemnification for any (i) special, punitive or exemplary damages, (ii) any loss of enterprise value, diminution in value of any business, damage to reputation or loss of goodwill, or (iii) any lost profits, consequential, indirect or incidental damages.

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(g) Damages Reserved for on the Closing Balance Sheet . No GPIAC Indemnified Party shall be entitled to indemnification for any Damages in respect of any liability or obligation accrued or reserved for on the Closing balance sheet.

(h) No Duplicate Claims . In the event a GPIAC Indemnified Party or Seller Indemnified Party, as the case may be, recovers Damages in respect of an Indemnification Claim, no other GPIAC Indemnified Party or Seller Indemnified Party, as applicable, may recover the same Damages in respect of an Indemnification Claim under this Agreement.

(i) Other Limitations . Notwithstanding anything else in this Agreement or otherwise, no Indemnified Party shall be entitled to recover Damages, and no equityholder, director, officer or employee of the Company shall have any liability hereunder as a result of any Action or announcement by the persons identified on Section 12.4(i) of the Company Disclosure Letter following the announcement of the transactions contemplated hereby.

Section 12.5    Mitigation of Damages .   An Indemnified Party shall use its reasonable best efforts to mitigate any Damages for which it is entitled to indemnification pursuant to this Article XII .

Section 12.6    Tax Treatment .   All amounts paid with respect to Indemnification Claims under this Agreement shall be treated by the parties hereto for all Tax purposes as adjustments to the Merger Consideration.

Section 12.7    Indemnification Sole and Exclusive Remedy .   Following the Closing, except in the case of fraud, indemnification pursuant to this Article XII shall be the sole and exclusive remedy (other than for specific performance) of the parties and any parties claiming by or through any party (including the Indemnified Parties) related to or arising from any breach of any representation, warranty, covenant or agreement contained in, or otherwise pursuant to, this Agreement.

Section 12.8    Nature of GPIAC Indemnified Parties’ Recovery from Indemnity Escrow .   Except as otherwise contemplated by Section 12.4(a) , the Parties agree recovery by the GPIAC Indemnified Parties for any Damages (as finally determined pursuant to this Article XII ) shall be satisfied from the Indemnification Escrow Shares by Escrow Agent’s release to Acquiror, and upon receipt thereof, Acquiror’s prompt cancellation of: an amount of Acquiror Common Shares equal to (A) such Damages, divided by $10.00; divided by (B) the Closing Ownership Ratio.

Section 12.9    Release of Escrow .   The Escrow Agreement shall specify that the Indemnification Escrow Shares (if any) shall be released to the Escrow Stockholders in accordance with such holders’ relative Applicable Percentages on the first Business Day following the Survival Expiration Date; provided , however , that if any claim pursuant to this Article XII shall have been properly asserted by any GPIAC Indemnified Party in accordance with this Agreement on or prior to the Survival Expiration Date and remain pending on the Survival Expiration Date (any such claim, a “ Pending Claim ”), (i) the Indemnification Escrow Shares released to the Escrow Stockholders shall be the amount of Indemnification Escrow Shares then held by the Escrow Agent, minus the aggregate number of Acquiror Common Shares equal to (A) the amount of such Pending Claim divided by $10.00, divided by (B) the Closing Ownership Ratio and (ii) any shares that remain in escrow following the Survival Expiration Date in respect of any such Pending Claim shall be released to the Escrow Stockholders entitled to receive the Merger Consideration in accordance with such holders’ relative Applicable Percentages promptly upon resolution or (if applicable) satisfaction of such Pending Claim. In each case in which this Section 12.9 provides for the release of Indemnification Escrow Shares, each of the GPIAC-Designated Directors and the Holder Representative shall promptly submit joint written instructions to the Escrow Agent instructing the Escrow Agent to distribute the Indemnification Escrow Shares in accordance with this Section 12.9 and the Escrow Agreement.

ARTICLE XIII

MISCELLANEOUS

Section 13.1    Trust Account Waiver .   Each of the Company and Holder Representative acknowledges that Acquiror is a blank check company with the powers and privileges to effect a Business Combination. Each of the Company and Holder Representative further acknowledges that, as described in the prospectus dated May 19, 2015 (the “ Prospectus ”) available at www.sec.gov, substantially all of Acquiror assets consist of the cash proceeds of Acquiror’s initial public offering and private placements of its securities and substantially all of those proceeds have been deposited in the Trust Account for the benefit of Acquiror, certain of its public stockholders and the underwriters of Acquiror’s initial public offering. Each of the Company and Holder Representative acknowledges that it has been

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advised by Acquiror that, except with respect to interest earned on the funds held in the Trust Account that may be released to Acquiror to pay its franchise tax, income tax and similar obligations, the Trust Agreement provides that cash in the Trust Account may be disbursed only (i) to Acquiror in limited amounts from time to time in order to permit Acquiror to pay its operating expenses; (ii) if Acquiror completes the transactions which constitute a Business Combination, then to those Persons and in such amounts as described in the Prospectus; and (iii) if Acquiror fails to complete a Business Combination within the allotted time period and liquidates, subject to the terms of the Trust Agreement, to Acquiror in limited amounts to permit Acquiror to pay the costs and expenses of its liquidation and dissolution, and then to Acquiror’s public stockholders. For and in consideration of Acquiror entering into this Agreement, the receipt and sufficiency of which are hereby acknowledged, each of the Company and Holder Representative, on behalf of the Pre-Closing Holders, hereby irrevocably waives any right, title, interest or claim of any kind they have or may have in the future in or to any monies in the Trust Account and agree not to seek recourse against the Trust Account or any funds distributed therefrom as a result of, or arising out of, this Agreement and any negotiations, contracts or agreements with Acquiror; provided that (x) nothing herein shall serve to limit or prohibit the Company’s and Holder Representative’s right to pursue a claim against Acquiror for legal relief against monies or other assets held outside the Trust Account, for specific performance or other equitable relief in connection with the consummation of the transactions (including a claim for Acquiror to specifically perform its obligations under this Agreement and cause the disbursement of the balance of the cash remaining in the Trust Account (after giving effect to the Acquiror Share Redemptions) to the Pre-Closing Holders in accordance with the terms of this Agreement and the Trust Agreement) so long as such claim would not affect Acquiror’s ability to fulfill its obligation to effectuate the Acquiror Share Redemptions, or for fraud and (y) nothing herein shall serve to limit or prohibit any claims that the Company and Holder Representative may have in the future against Acquiror’s assets or funds that are not held in the Trust Account (including any funds that have been released from the Trust Account and any assets that have been purchased or acquired with any such funds).

Section 13.2    Waiver .   Any party to this Agreement may, at any time prior to the Closing, by action taken by its Board of Directors, or officers thereunto duly authorized, waive any of the terms or conditions of this Agreement or agree to an amendment or modification to this Agreement by an agreement in writing executed in the same manner (but not necessarily by the same Persons) as this Agreement.

Section 13.3    Notices .   All notices and other communications among the parties shall be in writing and shall be deemed to have been duly given (i) when delivered in person, (ii) when delivered after posting in the United States mail having been sent registered or certified mail return receipt requested, postage prepaid, (iii) when delivered by FedEx or other nationally recognized overnight delivery service, or (iv) when delivered by telecopy or email (in each case in this clause (iv), solely if receipt is confirmed and, in the case of email, excluding any automated reply, such as an out-of-office notification), addressed as follows:

(a)
If to Acquiror or Merger Sub or, after the Closing, to the Company, to:
 
 
 
 
GP Investments Acquisition Corp.
 
150 E. 52nd Street, Suite 5003
 
New York, NY 10022
 
Attention:
Antonio Bonchristiano
 
Telecopy No.:
+1 (212) 430-4365
 
 
+ 55 11 3556-5566
 
 
 
 
with copies to (which shall not constitute notice):
 
 
 
 
Skadden, Arps, Slate, Meagher & Flom LLP
 
Four Times Square
 
New York, New York 10036
 
Attention:
Paul T. Schnell
 
 
Timothy M. Fesenmyer
 
Telecopy No.:
(212) 735-2000
 
Email:
paul.schnell@skadden.com
 
 
timothy.fesenmyer@skadden.com

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(b)
If to the Company, prior to the Closing, to:
 
 
 
 
Rimini Street, Inc.
 
3993 Howard Hughes Parkway
 
Suite 500
 
Las Vegas, NV 89169
 
Attention:
Daniel B. Winslow
 
 
Senior Vice President
 
 
and General Counsel
 
Telecopy No.:
(702) 973-7491
 
Email:
dwinslow@riministreet.com
 
 
 
 
with copies to (which shall not constitute notice):
 
 
 
 
Wilson Sonsini Goodrich & Rosati
 
Professional Corporation
 
650 Page Mill Road
 
Palo Alto, California 94304
 
Attention:
Jon C. Avina
 
 
Michael S. Ringler
 
Telecopy No.:
(650) 493-6811
 
Email:
javina@wsgr.com
 
 
mringler@wsgr.com

or to such other address or addresses as the parties may from time to time designate in writing. Copies delivered solely to outside counsel shall not constitute notice.

Section 13.4    Assignment .   No party hereto shall assign this Agreement or any part hereof without the prior written consent of the other parties and any such transfer without prior written consent shall be void. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns.

Section 13.5    Rights of Third Parties .   Nothing expressed or implied in this Agreement is intended or shall be construed to confer upon or give any Person, other than the parties hereto, any right or remedies under or by reason of this Agreement; provided , however , that, notwithstanding the foregoing (i) in the event the Closing occurs, the past, present and future officers and directors of the Company (and their successors, heirs and representatives) are intended third-party beneficiaries of, and may enforce, Section 7.2 , (ii) from and after the First Effective Time, the Pre-Closing Holders (and their successors, heirs and representatives) shall be intended third-party beneficiaries of, and may enforce, Article II and Article III , (iii) from and after the First Effective Time, the Sponsor shall be an intended third-party beneficiary of, and may enforce, Section 11.2 , and (iv) the past, present and future directors, officers, employees, incorporators, members, partners, stockholders, Affiliates, agents, attorneys, advisors and representatives of the parties, and any Affiliate of any of the foregoing (and their successors, heirs and representatives), are intended third-party beneficiaries of, and may enforce, Section 13.16 .

Section 13.6    Expenses .   If the Closing shall not occur, each party hereto shall bear its own expenses incurred in connection with this Agreement and the transactions herein, including all fees of its legal counsel, financial advisers and accountants; it being agreed and acknowledged by the parties that all such expenses of the Company and its Subsidiaries shall be deemed Transaction Expenses hereunder. If the Closing shall occur, Acquiror shall bear all expenses incurred by the parties hereto in connection with this Agreement and the transactions herein, including all fees of such parties respective legal counsel, financial advisers and accountants; and the fees and expenses of the Auditor, if any, shall be paid in accordance with Section 3.5 .

Section 13.7    Governing Law .   This Agreement, and all claims or causes of action based upon, arising out of, or related to this Agreement or the transactions contemplated hereby, shall be governed by, and construed in accordance with, the Laws of the State of Delaware, without giving effect to principles or rules of conflict of laws

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to the extent such principles or rules would require or permit the application of Laws of another jurisdiction, except that (a) the internal affairs of the Company, and (b) all other provisions of, or transactions contemplated by, this Agreement that are expressly or otherwise required to be governed by the NRS shall be governed by the Laws of the State of Nevada.

Section 13.8    Captions; Counterparts .   The captions in this Agreement are for convenience only and shall not be considered a part of or affect the construction or interpretation of any provision of this Agreement. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

Section 13.9    Company and Acquiror Disclosure Letters .   The Company Disclosure Letter and the Acquiror Disclosure Letter (including, in each case, any section thereof) referenced herein are a part of this Agreement as if fully set forth herein. All references herein to the Company Disclosure Letter and/or the Acquiror Disclosure Letter (including, in each case, any section thereof) shall be deemed references to such parts of this Agreement, unless the context shall otherwise require. Any disclosure made by a party in the applicable Disclosure Letter, or any section thereof, with reference to any section of this Agreement or section of the applicable Disclosure Letter shall be deemed to be a disclosure with respect to such other applicable sections of this Agreement or sections of applicable Disclosure Letter as to which the disclosure on its face is reasonably apparent upon reading the disclosure contained in such section of the applicable Disclosure Letter, without independent knowledge on the part of the reader regarding the matter disclosed, that such disclosure is responsive to such other section of this Agreement or section of the applicable Disclosure Letter. Certain information set forth in the Disclosure Letters is included solely for informational purposes and may not be required to be disclosed pursuant to this Agreement. The disclosure of any information shall not be deemed to constitute an acknowledgment that such information is required to be disclosed in connection with the representations and warranties made in this Agreement, nor shall such information be deemed to establish a standard of materiality.

Section 13.10    Entire Agreement .   (i) This Agreement (together with the Company Disclosure Letter and the Acquiror Disclosure Letter) and (ii) that certain Non-Disclosure Agreement, dated as of April 6, 2017, between Sponsor and the Company (the “ Confidentiality Agreement ”) constitute the entire agreement among the parties relating to the transactions contemplated hereby and supersede any other agreements, whether written or oral, that may have been made or entered into by or among any of the parties hereto or any of their respective Subsidiaries relating to the transactions contemplated hereby. No representations, warranties, covenants, understandings, agreements, oral or otherwise, relating to the transactions contemplated by this Agreement exist between the parties except as expressly set forth in this Agreement and the Confidentiality Agreement.

Section 13.11    Amendments .   This Agreement may be amended or modified in whole or in part, only by a duly authorized (including pursuant to the provisions of Article XI ) agreement in writing executed in the same manner as this Agreement and which makes reference to this Agreement.

Section 13.12    Publicity .

(a) All press releases or other public communications relating to the transactions contemplated by this Agreement, and the method of the release for publication thereof, shall prior to the Closing be subject to the prior mutual approval of Acquiror and the Company, which approval shall not be unreasonably withheld by any party; provided , that no party shall be required to obtain consent pursuant to this Section 13.12(a) to the extent any proposed release or statement is substantially equivalent to the information that has previously been made public without breach of the obligation under this Section 13.12(a) .

(b) The restriction in Section 13.12(a) shall not apply to the extent the public announcement is required by applicable securities Law, any Governmental Authority or stock exchange rule; provided , however , that in such an event, the party making the announcement shall use its commercially reasonable efforts to consult with the other party in advance as to its form, content and timing. For the avoidance of doubt, disclosures resulting from the parties’ efforts to obtain approval or early termination under the HSR Act and to make any relating filing shall be deemed not to violate this Agreement.

Section 13.13    Severability .   If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall remain in full force and effect. The parties further agree that if any provision contained herein is, to any extent, held invalid or unenforceable in any respect under the Laws governing this Agreement, they shall take any actions necessary to render the remaining provisions

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of this Agreement valid and enforceable to the fullest extent permitted by Law and, to the extent necessary, shall amend or otherwise modify this Agreement to replace any provision contained herein that is held invalid or unenforceable with a valid and enforceable provision giving effect to the intent of the parties.

Section 13.14    Jurisdiction; Waiver of Jury Trial .

(a) Any proceeding or action based upon, arising out of or related to this Agreement or the transactions contemplated hereby must be brought in the Court of Chancery of the State of Delaware (or, to the extent such Court does not have subject matter jurisdiction, the Superior Court of the State of Delaware), or, if it has or can acquire jurisdiction, in the United States District Court for the District of Delaware,and each of the parties irrevocably submits to the exclusive jurisdiction of each such court in any such proceeding or action, waives any objection it may now or hereafter have to personal jurisdiction, venue or to convenience of forum, agrees that all claims in respect of the proceeding or action shall be heard and determined only in any such court, and agrees not to bring any proceeding or action arising out of or relating to this Agreement or the transactions contemplated hereby in any other court. Nothing herein contained shall be deemed to affect the right of any party to serve process in any manner permitted by Law or to commence legal proceedings or otherwise proceed against any other party in any other jurisdiction, in each case, to enforce judgments obtained in any action, suit or proceeding brought pursuant to this Section 13.14 .

(b) Each party acknowledges and agrees that any controversy which may arise under this Agreement and the transactions contemplated hereby is likely to involve complicated and difficult issues, and therefore each such party hereby irrevocably, unconditionally and voluntarily waives any right such party may have to a trial by jury in respect of any action, suit or proceeding directly or indirectly arising out of or relating to this Agreement or any of the transactions contemplated hereby.

Section 13.15    Enforcement .   The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to specific enforcement of the terms and provisions of this Agreement, in addition to any other remedy to which any party is entitled at law or in equity. In the event that any action shall be brought in equity to enforce the provisions of this Agreement, no party shall allege, and each party hereby waives the defense, that there is an adequate remedy at law, and each party agrees to waiver any requirement for the securing or posting of any bond in connection therewith.

Section 13.16    Non-Recourse .   This Agreement may only be enforced against, and any claim or cause of action based upon, arising out of, or related to this Agreement or the transactions contemplated hereby may only be brought against, the entities that are expressly named as parties hereto and any express guarantor of any such party’s obligations hereunder and then only with respect to the specific obligations set forth herein with respect to such party; provided , however , that the foregoing shall not relieve (i) any party for liability with respect to fraud committed by such party or (ii) any Pre-Closing Holder, (including any Co-Founder) for liability with respect to fraud perpetrated by or actually known to such Pre-Closing Holder, in accordance with, in the case of each of clause (i) and (ii), Section 12.4(a) . Except to the extent a named party to this Agreement (and then only to the extent of the specific obligations undertaken by such named party in this Agreement and not otherwise), no past, present or future director, officer, employee, incorporator, member, partner, stockholder, Affiliate, agent, attorney, advisor or representative or Affiliate of any of the foregoing shall have any liability (whether in contract, tort, equity or otherwise) for any one or more of the representations, warranties, covenants, agreements or other obligations or liabilities of any one or more of the Company or Acquiror under this Agreement (whether for indemnification or otherwise) of or for any claim based on, arising out of, or related to this Agreement or the transactions contemplated hereby.

Section 13.17    Conflicts and Privilege .   Acquiror, the Company and the Holder Representative hereby agree that, in the event a dispute with respect to this Agreement or the transactions contemplated hereby arises after the Closing between or among Acquiror, the GPIAC Designated Directors and/or the Sponsor, on the one hand, and the Company, the Pre-Closing Holders, the Holder Representative and/or the Escrow Stockholders, on the other hand, any legal counsel (including Skadden, Arps, Slate, Meagher & Flom LLP) that represented Acquiror, the GPIAC Designated Directors and/or the Sponsor prior to the Closing may represent the GPIAC Designated Directors and/or Sponsor in such dispute even though the interests of the GPIAC Designated Directors and/or Sponsor may be directly adverse to the Acquiror, and even though such counsel may have represented Acquiror in a matter substantially

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related to such dispute, or may be handling ongoing matters for Acquiror, the GPIAC Designated Directors and/or the Sponsor. Acquiror, the Company and the Holder Representative further agree that, as to all legally privileged communications prior to the Closing between or among any legal counsel (including Skadden, Arps, Slate, Meagher & Flom LLP) that represented Acquiror, the GPIAC Designated Directors and/or the Sponsor prior to the Closing and any one or more such Persons that relate in any way to the transactions contemplated by this Agreement, the attorney/client privilege and the expectation of client confidence belongs to the GPIAC Designated Directors and may be controlled by such GPIAC Designated Directors, and shall not pass to or be claimed or controlled by Acquiror (after giving effect to the Closing), the Company and the Holder Representative; provided that the GPIAC Designated Directors shall not waive such attorney/client privilege other than to the extent they determine appropriate in connection with the enforcement or defense of their respective rights or obligations existing under this Agreement. Notwithstanding the foregoing, any privileged communications or information shared by the Company prior to the Closing with Acquiror, Sponsor or the GPIAC Appointed Directors (in any capacity) under a common interest agreement shall remain the privileged communications or information of the Surviving Corporation.

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IN WITNESS WHEREOF the parties have hereunto caused this Agreement to be duly executed as of the date first above written.

 
GP INVESTMENTS ACQUISITION CORP.
 
 
 
 
 
By:
/s/ Antonio Bonchristiano
 
 
Name:
Antonio Bonchristiano
 
 
Title:
Chief Executive Officer
 
 
 
 
 
LET’S GO ACQUISITION CORP.
 
 
 
 
 
By:
/s/ Antonio Bonchristiano
 
 
Name:
Antonio Bonchristiano
 
 
Title:
Authorized Signatory

[Signature Page to Agreement and Plan of Merger]

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RIMINI STREET, INC.
 
 
 
 
 
By:
/s/ Seth A. Ravin
 
 
Name:
Seth A. Ravin
 
 
Title:
Chief Executive Officer

[Signature Page to Agreement and Plan of Merger]

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ROBIN MURRAY, solely in his capacity as Holder Representative
   
 
 
/s/ Robin Murray

[Signature Page to Agreement and Plan of Merger]

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ANNEX B

GP Investments Acquisition Corp.
150 E. 52nd Street, Suite 5003
New York, New York 10022
Let’s Go Acquisition Corp
150 E. 52nd Street, Suite 5003
New York, New York 10022

June 30, 2017

Rimini Street, Inc.
3993 Howard Hughes Parkway
Suite 500
Las Vegas, NV 89169

Re: Amendment No. 1 to the Agreement and Plan of Merger dated May 16, 2017

Ladies and Gentlemen:

Reference is made to the Agreement and Plan of Merger, dated as of May 16, 2017 (the “ Merger Agreement ”), by and among GP Investments Acquisition Corp., a Cayman Islands exempted company limited by shares (which shall domesticate as a Delaware corporation prior to the Closing) (“ Acquiror ”), Let’s Go Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of Acquiror (“ Merger Sub ”), Rimini Street, Inc., a Nevada corporation (the “ Company ”) and, solely in his capacity as the initial Holder Representative hereunder, Robin Murray (collectively with Acquiror, Merger Sub and the Company, the “ Parties ”). Capitalized terms used but not defined in this letter agreement (this “ Letter Agreement ”) shall have the meanings specified in the Merger Agreement.

The Parties desire to amend the Merger Agreement as set forth in this Letter Agreement. By execution of this Letter Agreement, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows, notwithstanding anything to the contrary contained in the Merger Agreement:

Section 1     Amendment of Treatment of Options Held by Former Employees and Former Service Providers . Section 3.2(b) of the Merger Agreement is hereby deleted in its entirety and replaced with the following:

Prior to the First Effective Time, the Company shall take commercially reasonable actions so that any Option which is held by a former employee or former service provider to the Company or any Affiliate is exercised not later than immediately prior to the First Effective Time and, to the extent that any such option is not so exercised (“ Relevant Outstanding Options ”), each such Relevant Outstanding Option shall be converted automatically into the right to receive a cash payment equal to the product of (a) the excess (if any) of the Per-Share Dollar Value over the per-share exercise price of such Relevant Outstanding Option and (b) the number of shares of the Company’s Common Stock subject to the vested portion of such Relevant Outstanding Option (such amount to be paid as soon as practicable following the First Effective Time, less applicable withholdings). All Relevant Outstanding Options shall be cancelled immediately prior to the First Effective Time.

Section 2     Amendment of Capitalization of Acquiror . Section 5.13(a) of the Merger Agreement is hereby amended by replacing the number “21,562,500” in the second sentence of such section with the number “20,009,776”.

Section 3     Amendment of Use of Trust Account Proceeds and Related Available Equity . Section 7.4 of the Merger Agreement is hereby amended by replacing the word “excluding” in the first sentence of such section with the word “including”.

Section 4     Delete Reference to an ESPP . Section 7.3(b) of the Merger Agreement is deleted in its entirety.

Section 5     Miscellaneous . The provisions of Article XIII of the Merger Agreement are incorporated by reference herein mutatis mutandis and this Letter Agreement shall be governed by and construed in accordance with such provisions.

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In addition, pursuant to Section 6.1(c) of the Merger Agreement, Acquiror hereby consents to the Fifth Amendment of the Financing Agreement, among the Company, each subsidiary of the Company party thereto as a Guarantor (if any), the Lenders (as defined therein), Cortland Capital Market Services LLC, as collateral agent and as administrative agent for such Lenders, and CB Agent Services LLC, as origination agent for such Lenders, dated as of June 24, 2016, as amended.

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If the foregoing accurately sets forth our agreement, please execute this Letter Agreement where indicated and return a copy to us.

 
Very truly yours,
 
 
 
 
GP INVESTMENTS ACQUISITION CORP.
 
 
 
 
By:
/s/ Antonio Bonchristiano
 
 
Name: Antonio Bonchristiano
 
 
Title: Chief Executive Officer
 
 
 
 
LET’S GO ACQUISITION CORP.
 
 
 
 
By:
/s/ Antonio Bonchristiano
 
 
Name: Antonio Bonchristiano
 
 
Title: Authorized Signatory

[Signature Page to Amendment No. 1 to Merger Agreement]

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

RIMINI STREET, INC.
 
 
 
 
By:
/s/ Seth Ravin
 
Name:
Seth Ravin
 
Title:
Chief Executive Officer
 
 
 
 
ROBIN MURRAY , solely in his capacity as
Holder Representative
 
 
 
 
By:
/s/ Robin Murray
 
Name:
Robin Murray
 

[Signature Page to Amendment No. 1 to Merger Agreement]

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ANNEX C

THE COMPANIES LAW (2013 REVISION)
OF THE CAYMAN ISLANDS
COMPANY LIMITED BY SHARES
AMENDED AND RESTATED
MEMORANDUM AND ARTICLES OF ASSOCIATION
OF
GP INVESTMENTS ACQUISITION CORP.
(adopted by special resolution dated 7 May 2015)

THE COMPANIES LAW (2013 REVISION)
OF THE CAYMAN ISLANDS
COMPANY LIMITED BY SHARES
AMENDED AND RESTATED
MEMORANDUM OF ASSOCIATION
OF
GP INVESTMENTS ACQUISITION CORP.
(adopted by special resolution dated 7 May 2015)

1 The name of the Company is GP Investments Acquisition Corp.
2 The Registered Office of the Company shall be at the offices of Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands, or at such other place within the Cayman Islands as the Directors may decide.
3 The objects for which the Company is established are unrestricted and the Company shall have full power and authority to carry out any object not prohibited by the laws of the Cayman Islands.
4 The liability of each Member is limited to the amount unpaid on such Member’s shares.
5 The share capital of the Company is US$42,000 divided into 400,000,000 shares of a par value of US$0.0001 each and 20,000,000 preferred shares of a par value of US$0.0001 each.
6 The Company has power to register by way of continuation as a body corporate limited by shares under the laws of any jurisdiction outside the Cayman Islands and to be deregistered in the Cayman Islands.
7 Capitalised terms that are not defined in this Memorandum of Association bear the respective meanings given to them in the Articles of Association of the Company.

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THE COMPANIES LAW (2013 REVISION)

OF THE CAYMAN ISLANDS

COMPANY LIMITED BY SHARES

AMENDED AND RESTATED

ARTICLES OF ASSOCIATION

OF

GP INVESTMENTS ACQUISITION CORP.

(adopted by special resolution dated 7 May 2015)

1 1 Interpretation
1.1 In the Articles Table A in the First Schedule to the Statute does not apply and, unless there is something in the subject or context inconsistent therewith:
 
Articles
means these articles of association of the Company.
 
 
 
 
Audit Committee
means the audit committee of the Company formed pursuant to Article 41.2 hereof, or any successor audit committee.
 
 
 
 
Auditor
means the person for the time being performing the duties of auditor of the Company (if any).
 
 
 
 
Business Combination
has the meaning given to it in Article 48.1.
 
 
 
 
business day
means any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorised or obligated by law to close in New York City.
 
 
 
 
clearing house
a clearing house recognised by the laws of the jurisdiction in which the Shares (or depositary receipts therefor) are listed or quoted on a stock exchange or interdealer quotation system in such jurisdiction.
 
 
 
 
Company
means GP Investments Acquisition Corp.
 
 
 
 
Designated Stock Exchange
means any national securities exchange including NASDAQ Capital Market, or NASDAQ.
 
 
 
 
Directors
means the directors for the time being of the Company.
 
 
 
 
Dividend
means any dividend (whether interim or final) resolved to be paid on Shares pursuant to the Articles.
 
 
 
 
Electronic Record
has the same meaning as in the Electronic Transactions Law.
 
 
 
 
Electronic Transactions Law
means the Electronic Transactions Law (2003 Revision) of the Cayman Islands.
 
 
 
 
Founders
means all Members immediately prior to the consummation of the IPO.
 
 
 
 
IPO
means the Company’s initial public offering of securities.
 
 
 
 
IPO Repurchase
has the meaning given to it in Article 48.3.
 
 
 
 
Member
has the same meaning as in the Statute.

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Memorandum
means the memorandum of association of the Company, as amended from time to time.
 
 
 
 
Ordinary Resolution
means a resolution passed by a simple majority of the Members as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting, and includes a unanimous written resolution. In computing the majority when a poll is demanded regard shall be had to the number of votes to which each Member is entitled by the Articles.
 
 
 
 
Over-allotment Option
means the option of the Underwriters to purchase up to an additional 2,250,000 units (as defined at Article 3.3) at a price equal to $10.00 per unit, less underwriting discounts and commissions.
 
 
 
 
Repurchase Price
has the meaning given to it in Article 48.3.
 
 
 
 
Register of Members
means the register of Members maintained in accordance with the Statute and includes (except where otherwise stated) any branch or duplicate register of Members.
 
 
 
 
Registered Office
means the registered office for the time being of the Company.
 
 
 
 
Seal
means the common seal of the Company and includes every duplicate seal.
 
 
 
 
SEC
means the United States Securities and Exchange Commission.
 
 
 
 
Share
means a share in the Company and includes a fraction of a share in the Company.
 
 
 
 
Special Resolution
has the same meaning as in the Statute, and includes a unanimous written resolution.
 
 
 
 
Statute
means the Companies Law (2013 Revision) of the Cayman Islands.
 
 
 
 
Treasury Share
means a Share held in the name of the Company as a treasury share in accordance with the Statute.
 
 
 
 
Trust Fund
has the meaning given to it in Article 48.1.
 
 
 
 
Underwriters
means Citigroup Global Markets Inc. on its own behalf and for any other underwriters from time to time, and any successor underwriter.
1.2 In the Articles:
(a) words importing the singular number include the plural number and vice versa;
(b) words importing the masculine gender include the feminine gender;
(c) words importing persons include corporations as well as any other legal or natural person;
(d) “written” and “in writing” include all modes of representing or reproducing words in visible form, including in the form of an Electronic Record;
(e) “shall” shall be construed as imperative and “may” shall be construed as permissive;

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(f) references to provisions of any law or regulation shall be construed as references to those provisions as amended, modified, re-enacted or replaced;
(g) any phrase introduced by the terms “including”, “include”, “in particular” or any similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms;
(h) the term “and/or” is used herein to mean both “and” as well as “or.” The use of “and/or” in certain contexts in no respects qualifies or modifies the use of the terms “and” or “or” in others. The term “or” shall not be interpreted to be exclusive and the term “and” shall not be interpreted to require the conjunctive (in each case, unless the context otherwise requires);
(i) headings are inserted for reference only and shall be ignored in construing the Articles;
(j) any requirements as to delivery under the Articles include delivery in the form of an Electronic Record;
(k) any requirements as to execution or signature under the Articles including the execution of the Articles themselves can be satisfied in the form of an electronic signature as defined in the Electronic Transactions Law;
(l) sections 8 and 19(3) of the Electronic Transactions Law shall not apply;
(m) the term “clear days” in relation to the period of a notice means that period excluding the day when the notice is received or deemed to be received and the day for which it is given or on which it is to take effect; and
(n) the term “holder” in relation to a Share means a person whose name is entered in the Register of Members as the holder of such Share.
2 2 Commencement of Business
2.1 The business of the Company may be commenced as soon after incorporation of the Company as the Directors shall see fit.
2.2 The Directors may pay, out of the capital or any other monies of the Company, all expenses incurred in or about the formation and establishment of the Company, including the expenses of registration.
3 3 Issue of Shares
3.1 Subject to the provisions, if any, in the Memorandum (and to any direction that may be given by the Company in general meeting) and, where applicable, the rules of the Designated Stock Exchange and/or any competent regulatory authority, and without prejudice to any rights attached to any existing Shares, the Directors may allot, issue, grant options over or otherwise dispose of Shares (including fractions of a Share) with or without preferred, deferred or other rights or restrictions, whether in regard to Dividend or other distribution, voting, return of capital or otherwise and to such persons, at such times and on such other terms as they think proper, and may also (subject to the Statute and the Articles) vary such rights.
3.2 The Company may issue rights, options, warrants or convertible securities or securities of similar nature conferring the right upon the holders thereof to subscribe for, purchase or receive any class of Shares or other securities in the Company on such terms as the Directors may from time to time determine.
3.3 The Company may issue units of securities in the Company, which may be comprised of whole or fractional Shares, rights, options, warrants or convertible securities or securities of similar nature conferring the right upon the holders thereof to subscribe for, purchase or receive any class of Shares or other securities in the Company, upon such terms as the Directors may from time to time determine. The securities comprising any such units which are issued pursuant to the IPO can only be traded separately from one another on the 52 nd day following the date of the prospectus relating to the IPO unless the Underwriters determine that an earlier date is acceptable, subject to the Company having filed a Current Report on Form 8-K with the SEC and a press release announcing when such separate trading will begin. Prior to such date, the units can be traded, but the securities comprising such units cannot be traded separately from one another.
3.4 The Company shall not issue Shares to bearer.

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4 4 Register of Members
4.1 The Company shall maintain or cause to be maintained the Register of Members in accordance with the Statute.
4.2 The Directors may determine that the Company shall maintain one or more branch registers of Members in accordance with the Statute. The Directors may also determine which register of Members shall constitute the principal register and which shall constitute the branch register or registers, and to vary such determination from time to time.
5 5 Closing Register of Members or Fixing Record Date
5.1 For the purpose of determining Members entitled to notice of, or to vote at any meeting of Members or any adjournment thereof, or Members entitled to receive payment of any Dividend or other distribution, or in order to make a determination of Members for any other purpose, the Directors may, after notice has been given by advertisement in an appointed newspaper or any other newspaper or by any other means in accordance with the requirements of the Designated Stock Exchange, provide that the Register of Members shall be closed for transfers for a stated period which shall not in any case exceed forty days.
5.2 In lieu of, or apart from, closing the Register of Members, the Directors may fix in advance or arrears a date as the record date for any such determination of Members entitled to notice of, or to vote at any meeting of the Members or any adjournment thereof, or for the purpose of determining the Members entitled to receive payment of any Dividend or other distribution, or in order to make a determination of Members for any other purpose.
5.3 If the Register of Members is not so closed and no record date is fixed for the determination of Members entitled to notice of, or to vote at, a meeting of Members or Members entitled to receive payment of a Dividend or other distribution, the date on which notice of the meeting is sent or the date on which the resolution of the Directors resolving to pay such Dividend or other distribution is passed, as the case may be, shall be the record date for such determination of Members. When a determination of Members entitled to vote at any meeting of Members has been made as provided in this Article, such determination shall apply to any adjournment thereof.
6 6 Certificates for Shares
6.1 A Member shall only be entitled to a share certificate if the Directors resolve that share certificates shall be issued. Share certificates representing Shares, if any, shall be in such form as the Directors may determine. Share certificates shall be signed by one or more Directors or other person authorised by the Directors. The Directors may authorise certificates to be issued with the authorised signature(s) affixed by mechanical process. All certificates for Shares shall be consecutively numbered or otherwise identified and shall specify the Shares to which they relate. All certificates surrendered to the Company for transfer shall be cancelled and, subject to the Articles, no new certificate shall be issued until the former certificate representing a like number of relevant Shares shall have been surrendered and cancelled.
6.2 The Company shall not be bound to issue more than one certificate for Shares held jointly by more than one person and delivery of a certificate to one joint holder shall be a sufficient delivery to all of them.
6.3 If a share certificate is defaced, worn out, lost or destroyed, it may be renewed on such terms (if any) as to evidence and indemnity and on the payment of such expenses reasonably incurred by the Company in investigating evidence, as the Directors may prescribe, and (in the case of defacement or wearing out) upon delivery of the old certificate.
6.4 Every share certificate sent in accordance with the Articles will be sent at the risk of the Member or other person entitled to the certificate. The Company will not be responsible for any share certificate lost or delayed in the course of delivery.
6.5 Share certificates shall be issued within the relevant time limit as prescribed by the Statute, if applicable, or as the Designated Stock Exchange may from time to time determine, whichever is shorter, after the allotment or, except in the case of a Share transfer which the Company is for the time being entitled to refuse to register and does not register, after lodgement of a Share transfer with the Company.

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7 7 Transfer of Shares
7.1 Subject to the terms of these Articles, any Member may transfer all or any of his Shares by an instrument of transfer provided that such transfer complies with applicable rules of the SEC and federal and state securities laws of the United States. If the Shares in question were issued in conjunction with rights, options or warrants issued pursuant to Article 3 on terms that one cannot be transferred without the other, the Directors shall refuse to register the transfer of any such Share without evidence satisfactory to them of the like transfer of such option or warrant.
7.2 The instrument of transfer of any Share shall be in writing in the usual or common form or in a form prescribed by the Designated Stock Exchange or in any other form approved by the Directors and shall be executed by or on behalf of the transferor (and if the Directors so require, signed by or on behalf of the transferee) and may be under hand or, if the transferor or transferee is a clearing house or its nominee(s), by hand or by machine imprinted signature or by such other manner of execution as the Directors may approve from time to time. The transferor shall be deemed to remain the holder of a Share until the name of the transferee is entered in the Register of Members.
8 8 Redemption, Repurchase and Surrender of Shares
8.1 Subject to the provisions of the Statute, and, where applicable, the rules of the Designated Stock Exchange and/or any competent regulatory authority, the Company may issue Shares that are to be redeemed or are liable to be redeemed at the option of the Member or the Company. The redemption of such Shares, except Shares in the IPO, shall be effected in such manner and upon such other terms as the Company may, by Special Resolution, determine before the issue of such Shares. With respect to repurchasing shares of the Company:
(a) members who hold Shares issued in the IPO are entitled to request repurchase of such Shares in the circumstances described in Article 48.3;
(b) shares held by the Founders shall be compulsorily repurchased on a pro rata basis to the extent that the Over-allotment Option is not exercised in full so that the Founders will own 20% of the Company’s issued and outstanding Shares after the IPO (exclusive of any securities purchased in a private placement simultaneously with the IPO); and
(c) shares issued in the IPO shall be repurchased by way of tender offer in the circumstances set out in Article 48.2(b).
8.2 Subject to the provisions of the Statute, and, where applicable, the rules of the Designated Stock Exchange and/or any competent regulatory authority, the Company may purchase its own Shares (including any redeemable Shares) in such manner and on such other terms as the Directors may agree with the relevant Member. For the avoidance of doubt, repurchases of Shares in the circumstances described at Articles 8.1(a), 8.1(b) and 8.1(c) above shall not require further approval of the Members.
8.3 The Company may make a payment in respect of the redemption or purchase of its own Shares in any manner permitted by the Statute, including out of capital.
8.4 The Directors may accept the surrender for no consideration of any fully paid Share.
9 9 Treasury Shares
9.1 The Directors may, prior to the purchase, redemption or surrender of any Share, determine that such Share shall be held as a Treasury Share.
9.2 The Directors may determine to cancel a Treasury Share or transfer a Treasury Share on such terms as they think proper (including, without limitation, for nil consideration).
10 10 Variation of Rights of Shares
10.1 If at any time the share capital of the Company is divided into different classes of Shares, all or any of the rights attached to any class (unless otherwise provided by the terms of issue of the Shares of that class) may, whether or not the Company is being wound up, be varied without the consent of the holders of the issued Shares of that class where such variation is considered by the Directors not to have a material adverse effect upon such rights; otherwise, any such variation shall be made only with the consent in writing of the

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holders of not less than two thirds of the issued Shares of that class, or with the sanction of a resolution passed by a majority of not less than two thirds of the votes cast at a separate meeting of the holders of the Shares of that class. For the avoidance of doubt, the Directors reserve the right, notwithstanding that any such variation may not have a material adverse effect, to obtain consent from the holders of Shares of the relevant class. To any such meeting all the provisions of the Articles relating to general meetings shall apply mutatis mutandis , except that the necessary quorum shall be one person holding or representing by proxy at least one third of the issued Shares of the class and that any holder of Shares of the class present in person or by proxy may demand a poll.

10.2 For the purposes of a separate class meeting, the Directors may treat two or more or all the classes of Shares as forming one class of Shares if the Directors consider that such class of Shares would be affected in the same way by the proposals under consideration, but in any other case shall treat them as separate classes of Shares.
10.3 The rights conferred upon the holders of the Shares of any class issued with preferred or other rights shall not, unless otherwise expressly provided by the terms of issue of the Shares of that class, be deemed to be varied by the creation or issue of further Shares ranking pari passu therewith.
11 11 Commission on Sale of Shares

The Company may, in so far as the Statute permits, pay a commission to any person in consideration of his subscribing or agreeing to subscribe (whether absolutely or conditionally) or procuring or agreeing to procure subscriptions (whether absolutely or conditionally) for any Shares. Such commissions may be satisfied by the payment of cash and/or the issue of fully or partly paid-up Shares. The Company may also on any issue of Shares pay such brokerage as

12 12 Non Recognition of Trusts

The Company shall not be bound by or compelled to recognise in any way (even when notified) any equitable, contingent, future or partial interest in any Share, or (except only as is otherwise provided by the Articles or the Statute) any other rights in respect of any Share other than an absolute right to the entirety thereof in the holder.

13 13 Lien on Shares
13.1 The Company shall have a first and paramount lien on all Shares (whether fully paid-up or not) registered in the name of a Member (whether solely or jointly with others) for all debts, liabilities or engagements to or with the Company (whether presently payable or not) by such Member or his estate, either alone or jointly with any other person, whether a Member or not, but the Directors may at any time declare any Share to be wholly or in part exempt from the provisions of this Article. The registration of a transfer of any such Share shall operate as a waiver of the Company’s lien thereon. The Company’s lien on a Share shall also extend to any amount payable in respect of that Share.
13.2 The Company may sell, in such manner as the Directors think fit, any Shares on which the Company has a lien, if a sum in respect of which the lien exists is presently payable, and is not paid within fourteen clear days after notice has been received or deemed to have been received by the holder of the Shares, or to the person entitled to it in consequence of the death or bankruptcy of the holder, demanding payment and stating that if the notice is not complied with the Shares may be sold.
13.3 To give effect to any such sale the Directors may authorise any person to execute an instrument of transfer of the Shares sold to, or in accordance with the directions of, the purchaser. The purchaser or his nominee shall be registered as the holder of the Shares comprised in any such transfer, and he shall not be bound to see to the application of the purchase money, nor shall his title to the Shares be affected by any irregularity or invalidity in the sale or the exercise of the Company’s power of sale under the Articles.
13.4 The net proceeds of such sale after payment of costs, shall be applied in payment of such part of the amount in respect of which the lien exists as is presently payable and any balance shall (subject to a like lien for sums not presently payable as existed upon the Shares before the sale) be paid to the person entitled to the Shares at the date of the sale.

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14 14 Call on Shares
14.1 Subject to the terms of the allotment and issue of any Shares, the Directors may make calls upon the Members in respect of any monies unpaid on their Shares (whether in respect of par value or premium), and each Member shall (subject to receiving at least fourteen clear days’ notice specifying the time or times of payment) pay to the Company at the time or times so specified the amount called on the Shares. A call may be revoked or postponed, in whole or in part, as the Directors may determine. A call may be required to be paid by instalments. A person upon whom a call is made shall remain liable for calls made upon him notwithstanding the subsequent transfer of the Shares in respect of which the call was made.
14.2 A call shall be deemed to have been made at the time when the resolution of the Directors authorising such call was passed.
14.3 The joint holders of a Share shall be jointly and severally liable to pay all calls in respect thereof.
14.4 If a call remains unpaid after it has become due and payable, the person from whom it is due shall pay interest on the amount unpaid from the day it became due and payable until it is paid at such rate as the Directors may determine (and in addition all expenses that have been incurred by the Company by reason of such non-payment), but the Directors may waive payment of the interest or expenses wholly or in part.
14.5 An amount payable in respect of a Share on issue or allotment or at any fixed date, whether on account of the par value of the Share or premium or otherwise, shall be deemed to be a call and if it is not paid all the provisions of the Articles shall apply as if that amount had become due and payable by virtue of a call.
14.6 The Directors may issue Shares with different terms as to the amount and times of payment of calls, or the interest to be paid.
14.7 The Directors may, if they think fit, receive an amount from any Member willing to advance all or any part of the monies uncalled and unpaid upon any Shares held by him, and may (until the amount would otherwise become payable) pay interest at such rate as may be agreed upon between the Directors and the Member paying such amount in advance.
14.8 No such amount paid in advance of calls shall entitle the Member paying such amount to any portion of a Dividend or other distribution payable in respect of any period prior to the date upon which such amount would, but for such payment, become payable.
15 15 Forfeiture of Shares
15.1 If a call or instalment of a call remains unpaid after it has become due and payable the Directors may give to the person from whom it is due not less than fourteen clear days’ notice requiring payment of the amount unpaid together with any interest which may have accrued and any expenses incurred by the Company by reason of such non-payment. The notice shall specify where payment is to be made and shall state that if the notice is not complied with the Shares in respect of which the call was made will be liable to be forfeited.
15.2 If the notice is not complied with, any Share in respect of which it was given may, before the payment required by the notice has been made, be forfeited by a resolution of the Directors. Such forfeiture shall include all Dividends, other distributions or other monies payable in respect of the forfeited Share and not paid before the forfeiture.
15.3 A forfeited Share may be sold, re-allotted or otherwise disposed of on such terms and in such manner as the Directors think fit and at any time before a sale, re-allotment or disposition the forfeiture may be cancelled on such terms as the Directors think fit. Where for the purposes of its disposal a forfeited Share is to be transferred to any person the Directors may authorise some person to execute an instrument of transfer of the Share in favour of that person.
15.4 A person any of whose Shares have been forfeited shall cease to be a Member in respect of them and shall surrender to the Company for cancellation the certificate for the Shares forfeited and shall remain liable to pay to the Company all monies which at the date of forfeiture were payable by him to the Company in respect of those Shares together with interest at such rate as the Directors may determine, but his liability shall cease if and when the Company shall have received payment in full of all monies due and payable by him in respect of those Shares.

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15.5 A certificate in writing under the hand of one Director or officer of the Company that a Share has been forfeited on a specified date shall be conclusive evidence of the facts stated in it as against all persons claiming to be entitled to the Share. The certificate shall (subject to the execution of an instrument of transfer) constitute a good title to the Share and the person to whom the Share is sold or otherwise disposed of shall not be bound to see to the application of the purchase money, if any, nor shall his title to the Share be affected by any irregularity or invalidity in the proceedings in reference to the forfeiture, sale or disposal of the Share.
15.6 The provisions of the Articles as to forfeiture shall apply in the case of non payment of any sum which, by the terms of issue of a Share, becomes payable at a fixed time, whether on account of the par value of the Share or by way of premium as if it had been payable by virtue of a call duly made and notified.
16 16 Transmission of Shares
16.1 If a Member dies the survivor or survivors (where he was a joint holder) or his legal personal representatives (where he was a sole holder), shall be the only persons recognised by the Company as having any title to his Shares. The estate of a deceased Member is not thereby released from any liability in respect of any Share, for which he was a joint or sole holder.
16.2 Any person becoming entitled to a Share in consequence of the death or bankruptcy or liquidation or dissolution of a Member (or in any other way than by transfer) may, upon such evidence being produced as may be required by the Directors, elect, by a notice in writing sent by him to the Company, either to become the holder of such Share or to have some person nominated by him registered as the holder of such Share. If he elects to have another person registered as the holder of such Share he shall sign an instrument of transfer of that Share to that person. The Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the Share by the relevant Member before his death or bankruptcy or liquidation or dissolution, as the case may be.
16.3 A person becoming entitled to a Share by reason of the death or bankruptcy or liquidation or dissolution of a Member (or in any other case than by transfer) shall be entitled to the same Dividends, other distributions and other advantages to which he would be entitled if he were the holder of such Share. However, he shall not, before becoming a Member in respect of a Share, be entitled in respect of it to exercise any right conferred by membership in relation to general meetings of the Company and the Directors may at any time give notice requiring any such person to elect either to be registered himself or to have some person nominated by him be registered as the holder of the Share (but the Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the Share by the relevant Member before his death or bankruptcy or liquidation or dissolution or any other case than by transfer, as the case may be). If the notice is not complied with within ninety days of being received or deemed to be received (as determined pursuant to the Articles) the Directors may thereafter withhold payment of all Dividends, other distributions, bonuses or other monies payable in respect of the Share until the requirements of the notice have been complied with.
17 17 Amendments of Memorandum and Articles of Association and Alteration of Capital
17.1 The Company may by Ordinary Resolution:
(a) increase its share capital by such sum as the Ordinary Resolution shall prescribe and with such rights, priorities and privileges annexed thereto, as the Company in general meeting may determine;
(b) consolidate and divide all or any of its share capital into Shares of larger amount than its existing Shares;
(c) convert all or any of its paid-up Shares into stock, and reconvert that stock into paid-up Shares of any denomination;
(d) by subdivision of its existing Shares or any of them divide the whole or any part of its share capital into Shares of smaller amount than is fixed by the Memorandum or into Shares without par value; and

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(e) cancel any Shares that at the date of the passing of the Ordinary Resolution have not been taken or agreed to be taken by any person and diminish the amount of its share capital by the amount of the Shares so cancelled.
17.2 All new Shares created in accordance with the provisions of the preceding Article shall be subject to the same provisions of the Articles with reference to the payment of calls, liens, transfer, transmission, forfeiture and otherwise as the Shares in the original share capital.
17.3 Subject to the provisions of the Statute, the provisions of the Articles as regards the matters to be dealt with by Ordinary Resolution and Article 48.1, the Company may by Special Resolution:
(a) change its name;
(b) alter or add to the Articles;
(c) alter or add to the Memorandum with respect to any objects, powers or other matters specified therein; and
(d) reduce its share capital or any capital redemption reserve fund.
18 18 Offices and Places of Business

Subject to the provisions of the Statute, the Company may by resolution of the Directors change the location of its Registered Office. The Company may, in addition to its Registered Office, maintain such other offices or places of business as the Directors determine.

19 19 General Meetings
19.1 All general meetings other than annual general meetings shall be called extraordinary general meetings.
19.2 The Company may, but shall not (unless required by the Statute) be obliged to, in each year hold a general meeting as its annual general meeting, and shall specify the meeting as such in the notices calling it. Any annual general meeting shall be held at such time and place as the Directors shall appoint and if no other time and place is prescribed by them, it shall be held at the Registered Office on the second Wednesday in December of each year at ten o’clock in the morning. At these meetings the report of the Directors (if any) shall be presented.
19.3 The Directors, the chief executive officer or the chairman of the board of Directors may call general meetings, and they shall on a Members’ requisition forthwith proceed to convene an extraordinary general meeting of the Company.
19.4 A Members’ requisition is a requisition of Members holding at the date of deposit of the requisition not less than ten per cent. in par value of the issued Shares which as at that date carry the right to vote at general meetings of the Company.
19.5 The Members’ requisition must state the objects of the meeting and must be signed by the requisitionists and deposited at the Registered Office, and may consist of several documents in like form each signed by one or more requisitionists.
19.6 If there are no Directors as at the date of the deposit of the Members’ requisition or if the Directors do not within twenty-one days from the date of the deposit of the Members’ requisition duly proceed to convene a general meeting to be held within a further twenty-one days, the requisitionists, or any of them representing more than one-half of the total voting rights of all of the requisitionists, may themselves convene a general meeting, but any meeting so convened shall be held no later than the day which falls three months after the expiration of the said twenty-one day period.
19.7 A general meeting convened as aforesaid by requisitionists shall be convened in the same manner as nearly as possible as that in which general meetings are to be convened by Directors.
19.8 Members seeking to bring business before the annual general meeting or to nominate candidates for election as directors at the annual general meeting must deliver notice to the principal executive offices of the Company not later than the close of business on the 90 th day nor earlier than the close of business on the 120 th day prior to the scheduled date of the annual general meeting.

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20 20 Notice of General Meetings
20.1 At least five days’ notice shall be given of any general meeting. Every notice shall specify the place, the day and the hour of the meeting and the general nature of the business to be conducted at the general meeting and shall be given in the manner hereinafter mentioned or in such other manner if any as may be prescribed by the Company, provided that a general meeting of the Company shall, whether or not the notice specified in this Article has been given and whether or not the provisions of the Articles regarding general meetings have been complied with, be deemed to have been duly convened if it is so agreed:
(a) in the case of an annual general meeting, by all of the Members entitled to attend and vote thereat; and
(b) in the case of an extraordinary general meeting, by a majority in number of the Members having a right to attend and vote at the meeting, together holding not less than ninety five per cent. in par value of the Shares giving that right.
20.2 The accidental omission to give notice of a general meeting to, or the non receipt of notice of a general meeting by, any person entitled to receive such notice shall not invalidate the proceedings of that general meeting.
21 21 Proceedings at General Meetings
21.1 No business shall be transacted at any general meeting unless a quorum is present. The holders of a majority of the Shares being individuals present in person or by proxy or if a corporation or other non-natural person by its duly authorised representative or proxy shall be a quorum.
21.2 A person may participate at a general meeting by conference telephone or other communications equipment by means of which all the persons participating in the meeting can communicate with each other. Participation by a person in a general meeting in this manner is treated as presence in person at that meeting.
21.3 A resolution (including a Special Resolution) in writing (in one or more counterparts) signed by or on behalf of all of the Members for the time being entitled to receive notice of and to attend and vote at general meetings (or, being corporations or other non-natural persons, signed by their duly authorised representatives) shall be as valid and effective as if the resolution had been passed at a general meeting of the Company duly convened and held.
21.4 If a quorum is not present within half an hour from the time appointed for the meeting to commence or if during such a meeting a quorum ceases to be present, the meeting, if convened upon a Members’ requisition, shall be dissolved and in any other case it shall stand adjourned to the same day in the next week at the same time and/or place or to such other day, time and/or place as the Directors may determine, and if at the adjourned meeting a quorum is not present within half an hour from the time appointed for the meeting to commence, the Members present shall be a quorum.
21.5 The Directors may, at any time prior to the time appointed for the meeting to commence, appoint any person to act as chairman of a general meeting of the Company or, if the Directors do not make any such appointment, the chairman, if any, of the board of Directors shall preside as chairman at such general meeting. If there is no such chairman, or if he shall not be present within fifteen minutes after the time appointed for the meeting to commence, or is unwilling to act, the Directors present shall elect one of their number to be chairman of the meeting.
21.6 If no Director is willing to act as chairman or if no Director is present within fifteen minutes after the time appointed for the meeting to commence, the Members present shall choose one of their number to be chairman of the meeting.
21.7 The chairman may, with the consent of a meeting at which a quorum is present (and shall if so directed by the meeting) adjourn the meeting from time to time and from place to place, but no business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.

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21.8 When a general meeting is adjourned for thirty days or more, notice of the adjourned meeting shall be given as in the case of an original meeting. Otherwise it shall not be necessary to give any such notice of an adjourned meeting.
21.9 A resolution put to the vote of the meeting shall be decided on a poll.
21.10 A poll shall be taken as the chairman directs, and the result of the poll shall be deemed to be the resolution of the general meeting at which the poll was demanded.
21.11 A poll demanded on the election of a chairman or on a question of adjournment shall be taken forthwith. A poll demanded on any other question shall be taken at such date, time and place as the chairman of the general meeting directs, and any business other than that upon which a poll has been demanded or is contingent thereon may proceed pending the taking of the poll.
21.12 In the case of an equality of votes the chairman shall be entitled to a second or casting vote.
22 22 Votes of Members
22.1 Subject to any rights or restrictions attached to any Shares, every Member present in any such manner shall have one vote for every Share of which he is the holder.
22.2 In the case of joint holders the vote of the senior holder who tenders a vote, whether in person or by proxy (or, in the case of a corporation or other non-natural person, by its duly authorised representative or proxy), shall be accepted to the exclusion of the votes of the other joint holders, and seniority shall be determined by the order in which the names of the holders stand in the Register of Members.
22.3 A Member of unsound mind, or in respect of whom an order has been made by any court, having jurisdiction in lunacy, may vote by his committee, receiver, curator bonis, or other person on such Member’s behalf appointed by that court, and any such committee, receiver, curator bonis or other person may vote by proxy.
22.4 No person shall be entitled to vote at any general meeting unless he is registered as a Member on the record date for such meeting nor unless all calls or other monies then payable by him in respect of Shares have been paid.
22.5 No objection shall be raised as to the qualification of any voter except at the general meeting or adjourned general meeting at which the vote objected to is given or tendered and every vote not disallowed at the meeting shall be valid. Any objection made in due time in accordance with this Article shall be referred to the chairman whose decision shall be final and conclusive.
22.6 Votes may be cast either personally or by proxy (or in the case of a corporation or other non-natural person by its duly authorised representative or proxy). A Member may appoint more than one proxy or the same proxy under one or more instruments to attend and vote at a meeting. Where a Member appoints more than one proxy the instrument of proxy shall specify the number of Shares in respect of which each proxy is entitled to exercise the related votes.
22.7 A Member holding more than one Share need not cast the votes in respect of his Shares in the same way on any resolution and therefore may vote a Share or some or all such Shares either for or against a resolution and/or abstain from voting a Share or some or all of the Shares and, subject to the terms of the instrument appointing him, a proxy appointed under one or more instruments may vote a Share or some or all of the Shares in respect of which he is appointed either for or against a resolution and/or abstain from voting a Share or some or all of the Shares in respect of which he is appointed.
23 23 Proxies
23.1 The instrument appointing a proxy shall be in writing and shall be executed under the hand of the appointor or of his attorney duly authorised in writing, or, if the appointor is a corporation or other non natural person, under the hand of its duly authorised representative. A proxy need not be a Member.
23.2 The Directors may, in the notice convening any meeting or adjourned meeting, or in an instrument of proxy sent out by the Company, specify the manner by which the instrument appointing a proxy shall be deposited and the place and the time (being not later than the time appointed for the commencement of the meeting or adjourned meeting to which the proxy relates) at which the instrument appointing a proxy shall be

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deposited. In the absence of any such direction from the Directors in the notice convening any meeting or adjourned meeting or in an instrument of proxy sent out by the Company, the instrument appointing a proxy shall be deposited physically at the Registered Office not less than 48 hours before the time appointed for the meeting or adjourned meeting to commence at which the person named in the instrument proposes to vote.

The chairman may in any event at his discretion declare that an instrument of proxy shall be deemed to have been duly deposited. An instrument of proxy that is not deposited in the manner permitted, or which has not been declared to have been duly deposited by the chairman, shall be invalid.

23.3 The instrument appointing a proxy may be in any usual or common form (or such other form as the Directors may approve) and may be expressed to be for a particular meeting or any adjournment thereof or generally until revoked. An instrument appointing a proxy shall be deemed to include the power to demand or join or concur in demanding a poll.
23.4 Votes given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the previous death or insanity of the principal or revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the Share in respect of which the proxy is given unless notice in writing of such death, insanity, revocation or transfer was received by the Company at the Registered Office before the commencement of the general meeting, or adjourned meeting at which it is sought to use the proxy.
24 24 Corporate Members
24.1 Any corporation or other non-natural person which is a Member may in accordance with its constitutional documents, or in the absence of such provision by resolution of its directors or other governing body, authorise such person as it thinks fit to act as its representative at any meeting of the Company or of any class of Members, and the person so authorised shall be entitled to exercise the same powers on behalf of the corporation which he represents as the corporation could exercise if it were an individual Member.
24.2 If a clearing house (or its nominee(s)), being a corporation, is a Member, it may authorise such persons as it sees fit to act as its representative at any meeting of the Company or at any meeting of any class of Members provided that the authorisation shall specify the number and class of Shares in respect of which each such representative is so authorised. Each person so authorised under the provisions of this Article shall be deemed to have been duly authorised without further evidence of the facts and be entitled to exercise the same rights and powers on behalf of the clearing house (or its nominee(s)) as if such person was the registered holder of such Shares held by the clearing house (or its nominee(s)).
25 25 Shares that May Not be Voted

Shares in the Company that are beneficially owned by the Company shall not be voted, directly or indirectly, at any meeting and shall not be counted in determining the total number of outstanding Shares at any given time.

26 26 Directors

There shall be a board of Directors consisting of not less than one person provided however that the Company may by Ordinary Resolution increase or reduce the limits in the number of Directors.

27 27 Powers of Directors
27.1 Subject to the provisions of the Statute, the Memorandum and the Articles and to any directions given by Special Resolution, the business of the Company shall be managed by the Directors who may exercise all the powers of the Company. No alteration of the Memorandum or Articles and no such direction shall invalidate any prior act of the Directors which would have been valid if that alteration had not been made or that direction had not been given. A duly convened meeting of Directors at which a quorum is present may exercise all powers exercisable by the Directors.
27.2 All cheques, promissory notes, drafts, bills of exchange and other negotiable or transferable instruments and all receipts for monies paid to the Company shall be signed, drawn, accepted, endorsed or otherwise executed as the case may be in such manner as the Directors shall determine by resolution.

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27.3 The Directors on behalf of the Company may pay a gratuity or pension or allowance on retirement to any Director who has held any other salaried office or place of profit with the Company or to his widow or dependants and may make contributions to any fund and pay premiums for the purchase or provision of any such gratuity, pension or allowance.
27.4 The Directors may exercise all the powers of the Company to borrow money and to mortgage or charge its undertaking, property and assets (present and future) and uncalled capital or any part thereof and to issue debentures, debenture stock, mortgages, bonds and other such securities whether outright or as security for any debt, liability or obligation of the Company or of any third party.
28 28 Appointment and Removal of Directors
28.1 The Company may by Ordinary Resolution appoint any person to be a Director or may by Ordinary Resolution remove any Director.
28.2 The Directors may appoint any person to be a Director, either to fill a vacancy or as an additional Director provided that the appointment does not cause the number of Directors to exceed any number fixed by or in accordance with the Articles as the maximum number of Directors.
29 29 Vacation of Office of Director

The office of a Director shall be vacated if:

(a) the Director gives notice in writing to the Company that he resigns the office of Director; or
(b) the Director absents himself (for the avoidance of doubt, without being represented by proxy) from three consecutive meetings of the board of Directors without special leave of absence from the Directors, and the Directors pass a resolution that he has by reason of such absence vacated office; or
(c) the Director dies, becomes bankrupt or makes any arrangement or composition with his creditors generally; or
(d) the Director is found to be or becomes of unsound mind; or
(e) all of the other Directors (being not less than two in number) determine that he should be removed as a Director, either by a resolution passed by all of the other Directors at a meeting of the Directors duly convened and held in accordance with the Articles or by a resolution in writing signed by all of the other Directors.
30 30 Proceedings of Directors
30.1 The quorum for the transaction of the business of the Directors may be fixed by the Directors, and unless so fixed shall be two if there are two or more Directors, and shall be one if there is only one Director.
30.2 Subject to the provisions of the Articles, the Directors may regulate their proceedings as they think fit. Questions arising at any meeting shall be decided by a majority of votes. In the case of an equality of votes, the chairman shall have a second or casting vote.
30.3 A person may participate in a meeting of the Directors or committee of Directors by conference telephone or other communications equipment by means of which all the persons participating in the meeting can communicate with each other at the same time. Participation by a person in a meeting in this manner is treated as presence in person at that meeting. Unless otherwise determined by the Directors the meeting shall be deemed to be held at the place where the chairman is located at the start of the meeting.
30.4 A resolution in writing (in one or more counterparts) signed by all the Directors or all the members of a committee of the Directors or, in the case of a resolution in writing relating to the removal of any Director or the vacation of office by any Director, all of the Directors other than the Director who is the subject of such resolution shall be as valid and effectual as if it had been passed at a meeting of the Directors, or committee of Directors as the case may be, duly convened and held.
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nature of the business to be considered unless notice is waived by all the Directors either at, before or after the meeting is held. To any such notice of a meeting of the Directors all the provisions of the Articles relating to the giving of notices by the Company to the Members shall apply mutatis mutandis.

30.6 The continuing Directors (or a sole continuing Director, as the case may be) may act notwithstanding any vacancy in their body, but if and so long as their number is reduced below the number fixed by or pursuant to the Articles as the necessary quorum of Directors the continuing Directors or Director may act for the purpose of increasing the number of Directors to be equal to such fixed number, or of summoning a general meeting of the Company, but for no other purpose.
30.7 The Directors may elect a chairman of their board and determine the period for which he is to hold office; but if no such chairman is elected, or if at any meeting the chairman is not present within five minutes after the time appointed for the meeting to commence, the Directors present may choose one of their number to be chairman of the meeting.
30.8 All acts done by any meeting of the Directors or of a committee of the Directors shall, notwithstanding that it is afterwards discovered that there was some defect in the appointment of any Director, and/or that they or any of them were disqualified, and/or had vacated their office and/or were not entitled to vote, be as valid as if every such person had been duly appointed and/or not disqualified to be a Director and/or had not vacated their office and/or had been entitled to vote, as the case may be.
30.9 A Director may be represented at any meetings of the board of Directors by a proxy appointed in writing by him. The proxy shall count towards the quorum and the vote of the proxy shall for all purposes be deemed to be that of the appointing Director.
31 31 Presumption of Assent

A Director who is present at a meeting of the board of Directors at which action on any Company matter is taken shall be presumed to have assented to the action taken unless his dissent shall be entered in the minutes of the meeting or unless he shall file his written dissent from such action with the person acting as the chairman or secretary of the meeting before the adjournment thereof or shall forward such dissent by registered post to such person immediately after the adjournment of the meeting. Such right to dissent shall not apply to a Director who voted in favour of such action.

32 32 Directors’ Interests
32.1 A Director may hold any other office or place of profit under the Company (other than the office of Auditor) in conjunction with his office of Director for such period and on such terms as to remuneration and otherwise as the Directors may determine.
32.2 A Director may act by himself or by, through or on behalf of his firm in a professional capacity for the Company and he or his firm shall be entitled to remuneration for professional services as if he were not a Director.
32.3 A Director may be or become a director or other officer of or otherwise interested in any company promoted by the Company or in which the Company may be interested as a shareholder, a contracting party or otherwise, and no such Director shall be accountable to the Company for any remuneration or other benefits received by him as a director or officer of, or from his interest in, such other company.
32.4 No person shall be disqualified from the office of Director or prevented by such office from contracting with the Company, either as vendor, purchaser or otherwise, nor shall any such contract or any contract or transaction entered into by or on behalf of the Company in which any Director shall be in any way interested be or be liable to be avoided, nor shall any Director so contracting or being so interested be liable to account to the Company for any profit realised by or arising in connection with any such contract or transaction by reason of such Director or alternate Director holding office or of the fiduciary relationship thereby established. A Director shall be at liberty to vote in respect of any contract or transaction in which he is interested provided that the nature of the interest of any Director in any such contract or transaction shall be disclosed by him at or prior to its consideration and any vote thereon.

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32.5 A general notice that a Director is a shareholder, director, officer or employee of any specified firm or company and is to be regarded as interested in any transaction with such firm or company shall be sufficient disclosure for the purposes of voting on a resolution in respect of a contract or transaction in which he has an interest, and after such general notice it shall not be necessary to give special notice relating to any particular transaction.
33 33 Minutes

The Directors shall cause minutes to be made in books kept for the purpose of all appointments of officers made by the Directors, all proceedings at meetings of the Company or the holders of any class of Shares and of the Directors, and of committees of the Directors, including the names of the Directors present at each meeting.

34 34 Delegation of Directors’ Powers
34.1 The Directors may delegate any of their powers, authorities and discretions, including the power to sub-delegate, to any committee consisting of one or more Directors. Any such delegation may be made subject to any conditions the Directors may impose and either collaterally with or to the exclusion of their own powers and any such delegation may be revoked or altered by the Directors. Subject to any such conditions, the proceedings of a committee of Directors shall be governed by the Articles regulating the proceedings of Directors, so far as they are capable of applying.
34.2 The Directors may establish any committees, local boards or agencies or appoint any person to be a manager or agent for managing the affairs of the Company and may appoint any person to be a member of such committees, local boards or agencies. Any such appointment may be made subject to any conditions the Directors may impose, and either collaterally with or to the exclusion of their own powers and any such appointment may be revoked or altered by the Directors. Subject to any such conditions, the proceedings of any such committee, local board or agency shall be governed by the Articles regulating the proceedings of Directors, so far as they are capable of applying.
34.3 The Directors may by power of attorney or otherwise appoint any person to be the agent of the Company on such conditions as the Directors may determine, provided that the delegation is not to the exclusion of their own powers and may be revoked by the Directors at any time.
34.4 The Directors may by power of attorney or otherwise appoint any company, firm, person or body of persons, whether nominated directly or indirectly by the Directors, to be the attorney or authorised signatory of the Company for such purpose and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the Directors under the Articles) and for such period and subject to such conditions as they may think fit, and any such powers of attorney or other appointment may contain such provisions for the protection and convenience of persons dealing with any such attorneys or authorised signatories as the Directors may think fit and may also authorise any such attorney or authorised signatory to delegate all or any of the powers, authorities and discretions vested in him.
34.5 The Directors shall appoint a chief executive officer and a secretary and may appoint such other officers of the Company (including, for the avoidance of doubt and without limitation, any chairman of the board of Directors, vice chairman of the board of Directors, one or more presidents, a chief financial officer, a treasurer, vice-presidents, one or more assistant vice presidents, one or more assistant treasurers, one or more assistant secretaries or any other officers as may be determined by the Directors) as they consider necessary on such terms, at such remuneration and to perform such duties, and subject to such provisions as to disqualification and removal as the Directors may think fit. Unless otherwise specified in the terms of his appointment an officer of the Company may be removed by resolution of the Directors or Members. An officer of the Company may vacate his office at any time if he gives notice in writing to the Company that he resigns his office.
35 35 No Minimum Shareholding

The Company in general meeting may fix a minimum shareholding required to be held by a Director, but unless and until such a shareholding qualification is fixed a Director is not required to hold Shares.

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36 36 Remuneration of Directors
36.1 The remuneration to be paid to the Directors, if any, shall be such remuneration as the Directors shall determine, provided that no remuneration shall be paid to any Director prior to the consummation of a Business Combination. The Directors shall also, whether prior to or after the consummation of a Business Combination, be entitled to be paid all travelling, hotel and other expenses properly incurred by them in connection with their attendance at meetings of Directors or committees of Directors, or general meetings of the Company, or separate meetings of the holders of any class of Shares or debentures of the Company, or otherwise in connection with the business of the Company or the discharge of their duties as a Director, or to receive a fixed allowance in respect thereof as may be determined by the Directors, or a combination partly of one such method and partly the other.
36.2 The Directors may by resolution approve additional remuneration to any Director for any services which in the opinion of the Directors go beyond his ordinary routine work as a Director. Any fees paid to a Director who is also counsel, attorney or solicitor to the Company, or otherwise serves it in a professional capacity shall be in addition to his remuneration as a Director.
37 37 Seal
37.1 The Company may, if the Directors so determine, have a Seal. The Seal shall only be used by the authority of the Directors or of a committee of the Directors authorised by the Directors. Every instrument to which the Seal has been affixed shall be signed by at least one person who shall be either a Director or some officer of the Company or other person appointed by the Directors for the purpose.
37.2 The Company may have for use in any place or places outside the Cayman Islands a duplicate Seal or Seals each of which shall be a facsimile of the common Seal of the Company and, if the Directors so determine, with the addition on its face of the name of every place where it is to be used.
37.3 A Director or officer, representative or attorney of the Company may without further authority of the Directors affix the Seal over his signature alone to any document of the Company required to be authenticated by him under seal or to be filed with the Registrar of Companies in the Cayman Islands or elsewhere wheresoever.
38 38 Dividends, Distributions and Reserve
38.1 Subject to the Statute and this Article and except as otherwise provided by the rights attached to any Shares, the Directors may resolve to pay Dividends and other distributions on Shares in issue and authorise payment of the Dividends or other distributions out of the funds of the Company lawfully available therefor. A Dividend shall be deemed to be an interim Dividend unless the terms of the resolution pursuant to which the Directors resolve to pay such Dividend specifically state that such Dividend shall be a final Dividend. No Dividend or other distribution shall be paid except out of the realised or unrealised profits of the Company, out of the share premium account or as otherwise permitted by the Statute.
38.2 Except as otherwise provided by the rights attached to any Shares, all Dividends and other distributions shall be paid according to the par value of the Shares that a Member holds. If any Share is issued on terms providing that it shall rank for Dividend as from a particular date, that Share shall rank for Dividend accordingly.
38.3 The Directors may deduct from any Dividend or other distribution payable to any Member all sums of money (if any) then payable by him to the Company on account of calls or otherwise.
38.4 The Directors may resolve that any Dividend or other distribution be paid wholly or partly by the distribution of specific assets and in particular (but without limitation) by the distribution of shares, debentures, or securities of any other company or in any one or more of such ways and where any difficulty arises in regard to such distribution, the Directors may settle the same as they think expedient and in particular may issue fractional Shares and may fix the value for distribution of such specific assets or any part thereof and may determine that cash payments shall be made to any Members upon the basis of the value so fixed in order to adjust the rights of all Members and may vest any such specific assets in trustees in such manner as may seem expedient to the Directors.

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38.5 Except as otherwise provided by the rights attached to any Shares, Dividends and other distributions may be paid in any currency. The Directors may determine the basis of conversion for any currency conversions that may be required and how any costs involved are to be met.
38.6 The Directors may, before resolving to pay any Dividend or other distribution, set aside such sums as they think proper as a reserve or reserves which shall, at the discretion of the Directors, be applicable for any purpose of the Company and pending such application may, at the discretion of the Directors, be employed in the business of the Company.
38.7 Any Dividend, other distribution, interest or other monies payable in cash in respect of Shares may be paid by wire transfer to the holder or by cheque or warrant sent through the post directed to the registered address of the holder or, in the case of joint holders, to the registered address of the holder who is first named on the Register of Members or to such person and to such address as such holder or joint holders may in writing direct. Every such cheque or warrant shall be made payable to the order of the person to whom it is sent. Any one of two or more joint holders may give effectual receipts for any Dividends, other distributions, bonuses, or other monies payable in respect of the Share held by them as joint holders.
38.8 No Dividend or other distribution shall bear interest against the Company.
38.9 Any Dividend or other distribution which cannot be paid to a Member and/or which remains unclaimed after six months from the date on which such Dividend or other distribution becomes payable may, in the discretion of the Directors, be paid into a separate account in the Company’s name, provided that the Company shall not be constituted as a trustee in respect of that account and the Dividend or other distribution shall remain as a debt due to the Member. Any Dividend or other distribution which remains unclaimed after a period of six years from the date on which such Dividend or other distribution becomes payable shall be forfeited and shall revert to the Company.
39 39 Capitalisation

The Directors may at any time capitalise any sum standing to the credit of any of the Company’s reserve accounts or funds (including the share premium account and capital redemption reserve fund) or any sum standing to the credit of the profit and loss account or otherwise available for distribution; appropriate such sum to Members in the proportions in which such sum would have been divisible amongst such Members had the same been a distribution of profits by way of Dividend or other distribution; and apply such sum on their behalf in paying up in full unissued Shares for allotment and distribution credited as fully paid-up to and amongst them in the proportion aforesaid. In such event the Directors shall do all acts and things required to give effect to such capitalisation, with full power given to the Directors to make such provisions as they think fit in the case of Shares becoming distributable in fractions (including provisions whereby the benefit of fractional entitlements accrue to the Company rather than to the Members concerned). The Directors may authorise any person to enter on behalf of all of the Members interested into an agreement with the Company providing for such capitalisation and matters incidental or relating thereto and any agreement made under such authority shall be effective and binding on all such Members and the Company.

40 40 Books of Account
40.1 The Directors shall cause proper books of account to be kept with respect to all sums of money received and expended by the Company and the matters in respect of which the receipt or expenditure takes place, all sales and purchases of goods by the Company and the assets and liabilities of the Company. Proper books of account shall not be deemed to be kept if there are not kept such books of account as are necessary to give a true and fair view of the state of the Company’s affairs and to explain its transactions.
40.2 The Directors shall determine whether and to what extent and at what times and places and under what conditions or regulations the accounts and books of the Company or any of them shall be open to the inspection of Members not being Directors and no Member (not being a Director) shall have any right of inspecting any account or book or document of the Company except as conferred by Statute or authorised by the Directors or by the Company in general meeting.
40.3 The Directors may cause to be prepared and to be laid before the Company in general meeting profit and loss accounts, balance sheets, group accounts (if any) and such other reports and accounts as may be required by law.

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41 41 Audit
41.1 The Directors may appoint an Auditor of the Company who shall hold office on such terms as the Directors determine.
41.2 Without prejudice to the freedom of the Directors to establish any other committee, if the Shares (or depositary receipts therefor) are listed or quoted on the Designated Stock Exchange, and if required by the Designated Stock Exchange, the Directors shall establish and maintain an Audit Committee as a committee of the board of Directors and shall adopt a formal written Audit Committee charter and review and assess the adequacy of the formal written charter on an annual basis. The composition and responsibilities of the Audit Committee shall comply with the rules and regulations of the SEC and the Designated Stock Exchange. The Audit Committee shall meet at least once every financial quarter, or more frequently as circumstances dictate.
41.3 If the Shares (or depositary receipts therefor) are listed or quoted on the Designated Stock Exchange, the Company shall conduct an appropriate review of all related party transactions on an ongoing basis and shall utilise the Audit Committee for the review and approval of potential conflicts of interest.
41.4 The remuneration of the Auditor shall be fixed by the Audit Committee (if one exists).
41.5 If the office of Auditor becomes vacant by resignation or death of the Auditor, or by his becoming incapable of acting by reason of illness or other disability at a time when his services are required, the Directors shall fill the vacancy and determine the remuneration of such Auditor.
41.6 Every Auditor of the Company shall have a right of access at all times to the books and accounts and vouchers of the Company and shall be entitled to require from the Directors and officers of the Company such information and explanation as may be necessary for the performance of the duties of the Auditor.
41.7 Auditors shall, if so required by the Directors, make a report on the accounts of the Company during their tenure of office at the next annual general meeting following their appointment in the case of a company which is registered with the Registrar of Companies as an ordinary company, and at the next extraordinary general meeting following their appointment in the case of a company which is registered with the Registrar of Companies as an exempted company, and at any other time during their term of office, upon request of the Directors or any general meeting of the Members.
42 42 Notices
42.1 Notices shall be in writing and may be given by the Company to any Member either personally or by sending it by courier, post, cable, telex, fax or e-mail to him or to his address as shown in the Register of Members (or where the notice is given by e-mail by sending it to the e-mail address provided by such Member). Notice may also be served in accordance with the requirements of the Designated Stock Exchange.
42.2 Where a notice is sent by courier, service of the notice shall be deemed to be effected by delivery of the notice to a courier company, and shall be deemed to have been received on the third day (not including Saturdays or Sundays or public holidays) following the day on which the notice was delivered to the courier. Where a notice is sent by post, service of the notice shall be deemed to be effected by properly addressing, pre paying and posting a letter containing the notice, and shall be deemed to have been received on the fifth day (not including Saturdays or Sundays or public holidays in the Cayman Islands) following the day on which the notice was posted. Where a notice is sent by cable, telex or fax, service of the notice shall be deemed to be effected by properly addressing and sending such notice and shall be deemed to have been received on the same day that it was transmitted. Where a notice is given by e-mail service shall be deemed to be effected by transmitting the e-mail to the e-mail address provided by the intended recipient and shall be deemed to have been received on the same day that it was sent, and it shall not be necessary for the receipt of the e-mail to be acknowledged by the recipient.
42.3 A notice may be given by the Company to the person or persons which the Company has been advised are entitled to a Share or Shares in consequence of the death or bankruptcy of a Member in the same manner as other notices which are required to be given under the Articles and shall be addressed to them by name,

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or by the title of representatives of the deceased, or trustee of the bankrupt, or by any like description at the address supplied for that purpose by the persons claiming to be so entitled, or at the option of the Company by giving the notice in any manner in which the same might have been given if the death or bankruptcy had not occurred.

42.4 Notice of every general meeting shall be given in any manner authorised by the Articles to every holder of Shares carrying an entitlement to receive such notice on the record date for such meeting except that in the case of joint holders the notice shall be sufficient if given to the joint holder first named in the Register of Members and every person upon whom the ownership of a Share devolves by reason of his being a legal personal representative or a trustee in bankruptcy of a Member where the Member but for his death or bankruptcy would be entitled to receive notice of the meeting, and no other person shall be entitled to receive notices of general meetings.
43 43 Winding Up
43.1 If the Company shall be wound up the liquidator shall apply the assets of the Company in satisfaction of creditors’ claims in such manner and order as such liquidator thinks fit. Subject to the rights attaching to any Shares, in a winding up:
(a) if the assets available for distribution amongst the Members shall be insufficient to repay the whole of the Company’s issued share capital, such assets shall be distributed so that, as nearly as may be, the losses shall be borne by the Members in proportion to the par value of the Shares held by them; or
(b) if the assets available for distribution amongst the Members shall be more than sufficient to repay the whole of the Company’s issued share capital at the commencement of the winding up, the surplus shall be distributed amongst the Members in proportion to the par value of the Shares held by them at the commencement of the winding up subject to a deduction from those Shares in respect of which there are monies due, of all monies payable to the Company for unpaid calls or otherwise.
43.2 If the Company shall be wound up the liquidator may, subject to the rights attaching to any Shares and with the sanction of a Special Resolution of the Company and any other sanction required by the Statute, divide amongst the Members in kind the whole or any part of the assets of the Company (whether such assets shall consist of property of the same kind or not) and may for that purpose value any assets and determine how the division shall be carried out as between the Members or different classes of Members. The liquidator may, with the like sanction, vest the whole or any part of such assets in trustees upon such trusts for the benefit of the Members as the liquidator, with the like sanction, shall think fit, but so that no Member shall be compelled to accept any asset upon which there is a liability.
44 44 Indemnity and Insurance
44.1 Every Director and officer of the Company (which for the avoidance of doubt, shall not include auditors of the Company), together with every former Director and former officer of the Company (each an “ Indemnified Person ”) shall be indemnified out of the assets of the Company against any liability, action, proceeding, claim, demand, costs, damages or expenses, including legal expenses, whatsoever which they or any of them may incur as a result of any act or failure to act in carrying out their functions other than such liability (if any) that they may incur by reason of their own actual fraud, wilful neglect or wilful default. No Indemnified Person shall be liable to the Company for any loss or damage incurred by the Company as a result (whether direct or indirect) of the carrying out of their functions unless that liability arises through the actual fraud, wilful neglect or wilful default of such Indemnified Person. No person shall be found to have committed actual fraud, wilful neglect or wilful default under this Article unless or until a court of competent jurisdiction shall have made a finding to that effect.
44.2 The Company shall advance to each Indemnified Person reasonable attorneys’ fees and other costs and expenses incurred in connection with the defence of any action, suit, proceeding or investigation involving such Indemnified Person for which indemnity will or could be sought. In connection with any advance of any expenses hereunder, the Indemnified Person shall execute an undertaking to repay the advanced amount to the Company if it shall be determined by final judgment or other final adjudication that such Indemnified Person was not entitled to indemnification pursuant to this Article. If it shall be determined by

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a final judgment or other final adjudication that such Indemnified Person was not entitled to indemnification with respect to such judgment, costs or expenses, then such party shall not be indemnified with respect to such judgment, costs or expenses and any advancement shall be returned to the Company (without interest) by the Indemnified Person.

44.3 The Directors, on behalf of the Company, may purchase and maintain insurance for the benefit of any Director or other officer of the Company against any liability which, by virtue of any rule of law, would otherwise attach to such person in respect of any negligence, default, breach of duty or breach of trust of which such person may be guilty in relation to the Company.
45 45 Financial Year

Unless the Directors otherwise prescribe, the financial year of the Company shall end on 31st December in each year and, following the year of incorporation, shall begin on 1st January in each year.

46 46 Transfer by Way of Continuation

If the Company is exempted as defined in the Statute, it shall, subject to the provisions of the Statute and with the approval of a Special Resolution, have the power to register by way of continuation as a body corporate under the laws of any jurisdiction outside the Cayman Islands and to be deregistered in the Cayman Islands.

47 47 Mergers and Consolidations

The Company shall, with the approval of a Special Resolution, have the power to merge or consolidate with one or more constituent companies (as defined in the Statute), upon such terms as the Directors may determine.

48 48 Business Combination
48.1 Notwithstanding any other provision of these Articles, this Article 48 shall apply during the period commencing upon the adoption of these Articles and terminating upon the first to occur of the consummation of any Business Combination and the distribution of the Trust Fund (as defined below) pursuant to Article 48.4. A “ Business Combination ” shall mean a merger, share exchange, asset acquisition, share purchase, reorganisation or similar business combination, with one or more businesses or entities (the “ target business ”), which Business Combination: (i) must occur with one or more target businesses that together have an aggregate fair market value of at least 80% of the assets held in the Trust Fund (as defined in the below paragraph) (excluding the deferred underwriting commissions and taxes payable on the income earned on the Trust Fund) at the time of the agreement to enter into the Business Combination; and (ii) must not be effectuated with another blank check company or a similar company with nominal operations.

In the event of a conflict between this Article 48 and any other Articles, the provisions of this Article 48 shall prevail, and this Article 48.1 may not be amended prior to the consummation of a Business Combination. “ Trust Fund ” shall mean the trust account established by the Company upon the consummation of its IPO and into which a certain amount of the net proceeds of the IPO, together with the proceeds of the private placement of the warrants simultaneously with the closing date of the IPO, will be deposited.

48.2 Prior to the consummation of any Business Combination, the Company shall either:
(a) submit such Business Combination to its Members for approval; or
(b) provide Members with the opportunity to have their Shares redeemed by means of a tender offer for an amount equal to their pro rata share of the Trust Fund, provided that the Company shall not redeem Shares in an amount that would cause the Company’s net tangible assets to be less than US$5,000,001.

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offer documents with the SEC prior to completing a Business Combination which contain substantially the same financial and other information about such Business Combination and the redemption rights as is required under Regulation 14A of the Exchange Act, to repurchase Shares issued in the IPO.

At a meeting called for the purposes of approving a Business Combination pursuant to this Article, in the event that a majority of the Shares voted are voted for the approval of the Business Combination, the Company shall be authorised to consummate the Business Combination, provided that the Company shall not consummate any Business Combination unless the Company has net tangible assets of at least US$5,000,001 upon such consummation or any greater net tangible asset or cash requirement that may be contained in the agreement relating to the Business Combination.

48.3 Any Member holding Shares issued to persons who are not a Founder, officer or Director may, contemporaneously with any vote on a Business Combination, elect to have their Shares issued in the IPO repurchased for cash (the “ IPO Repurchase ”), provided that no such Member acting together with any affiliate of his or any other person with whom he is acting in concert or as a partnership, syndicate, or other group for the purposes of acquiring, holding, or disposing of Shares may exercise this repurchase right with respect to more than 20 per cent. of the Shares issued in the IPO. If so demanded, the Company shall pay any such repurchasing Member, regardless of whether he is voting for or against such proposed Business Combination, a per Share repurchase price equal to their pro rata share of the Trust Fund (such repurchase price being referred to herein as the “ Repurchase Price ”).

The Repurchase Price shall be paid promptly following the consummation of the relevant Business Combination. If the proposed Business Combination is not approved or completed for any reason then such repurchases shall be cancelled and share certificates (if any) returned to the relevant Members as appropriate.

48.4 In the event that:
(a) the Company does not consummate a Business Combination by twenty-four months after the closing of the IPO the Company shall: (i) cease all operations except for the purpose of winding up; (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Shares issued in the IPO, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Fund including interest earned on the funds held in the Trust Fund and not previously released to the Company to pay its franchise and income taxes (less up to US$100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Shares issued in the IPO, which redemption will completely extinguish public Members’ rights as Members (including the right to receive further liquidation distributions, if any), subject to applicable law; and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining Members and its board of directors, dissolve and liquidate, subject in each case to its obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law.
(b) the Company’s Members approve an amendment to Article 48.4(a) that would affect the substance or timing of the Company’s obligation to redeem the Shares issued in the IPO if the Company did not complete its Business Combination within 24 months from closing of the IPO, the Company shall provide the Members holding Shares issued in the IPO with the opportunity to redeem all or a portion of their Shares upon such approval at a per-share price, payable in cash, equal to the aggregate amount of the Trust Fund, including interest earned on the funds held in the Trust Fund and not previously released to the Company to pay its franchise and income taxes, divided by the number of then outstanding Shares issued in the IPO.
48.5 A holder of Shares issued in the IPO shall be entitled to receive distributions from the Trust Fund only in the event of an IPO Repurchase, a repurchase of shares by means of a tender offer pursuant to Article 48.2(b), or a distribution of the Trust Fund pursuant to Article 48.4(a) or (b). In no other circumstance shall a holder of Shares issued in the IPO have any right or interest of any kind in the Trust Fund.
48.6 After the issue of Shares in the IPO, and prior to the consummation of a Business Combination, the Directors shall not issue additional Shares or any other securities that participate in any manner in the Trust Fund or that vote as a class with Shares issued in the IPO on any Business Combination.

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48.7 The uninterested independent directors shall approve any transaction or transactions between the Company and any of the following parties:
(a) any Member owning an interest in the voting power of the Company that gives such Member a significant influence over the Company; and
(b) any Director or executive officer of the Company and any affiliate or relative of such Director or executive officer.
48.8 Any payment made to members of the Audit Committee (if one exists) shall require the review and approval of the Directors, with any Director interested in such payment abstaining from such review and approval.
48.9 A Director may vote in respect of any Business Combination in which such Director has a conflict of interest with respect to the evaluation of such Business Combination. Such Director must disclose such interest or conflict to the other Directors and abstain from voting in connection with the Business Combination.
48.10 The Directors shall be divided into three classes: Class A, Class B and Class C. The number of Directors in each class shall be as nearly equal as possible. Upon the adoption of these Articles, the existing Directors shall by resolution classify themselves as Class A, Class B or Class C Directors. The Class A Directors shall stand elected for a term expiring at the Company’s first annual general meeting, the Class B Directors shall stand elected for a term expiring at the Company’s second annual general meeting and the Class C Directors shall stand elected for a term expiring at the Company’s third annual general meeting. Commencing at the Company’s first annual general meeting, and at each annual general meeting thereafter, Directors elected to succeed those Directors whose terms expire shall be elected for a term of office to expire at the third succeeding annual general meeting after their election. Except as the Statute or other applicable law may otherwise require, in the interim between annual general meetings or extraordinary general meetings called for the election of Directors and/or the removal of one or more Directors and the filling of any vacancy in that connection, additional Directors and any vacancies in the board of Directors, including unfilled vacancies resulting from the removal of Directors for cause, may be filled by the vote of a majority of the remaining Directors then in office, although less than a quorum (as defined in these Articles), or by the sole remaining Director. All Directors shall hold office until the expiration of their respective terms of office and until their successors shall have been elected and qualified. A Director elected to fill a vacancy resulting from the death, resignation or removal of a Director shall serve for the remainder of the full term of the Director whose death, resignation or removal shall have created such vacancy and until his successor shall have been elected and qualified.
48.11 The Audit Committee shall monitor compliance with the terms of the IPO and, if any non-compliance is identified, the Audit Committee shall be charged with the responsibility to take all action necessary to rectify such non-compliance or otherwise cause compliance with the terms of the IPO.
48.12 The Company may enter into a Business Combination with a target business that is affiliated with GPIC, Ltd., the Directors or executive officers of the Company.

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ANNEX D

FORM OF
CERTIFICATE OF INCORPORATION OF
GP INVESTMENTS ACQUISITION CORP.

ARTICLE I

The name of the corporation is GP Investments Acquisition Corp.

ARTICLE II

The address of the corporation’s registered office in the State of Delaware is Corporation Trust Center, 1209 Orange Street, Wilmington, New Castle County, Delaware 19801. The name of its registered agent at such address is The Corporation Trust Company.

ARTICLE III

The purpose of the corporation is to engage in any lawful act or activity for which corporations may be organized under the DGCL.

ARTICLE IV

The total number of shares of stock that the corporation shall have authority to issue is 1,100,000,000, consisting of the following:

1,000,000,000 shares of Common Stock, par value $0.0001 per share. Each share of Common Stock shall entitle the holder thereof to one (1) vote on each matter submitted to a vote at a meeting of stockholders.

100,000,000 shares of Preferred Stock, par value $0.0001 per share, which may be issued from time to time in one or more series pursuant to a resolution or resolutions providing for such issue duly adopted by the Board of Directors (authority to do so being hereby expressly vested in the Board of Directors). The Board of Directors is further authorized, subject to limitations prescribed by law, to fix by resolution or resolutions the designations, powers, preferences and rights, and the qualifications, limitations or restrictions thereof, of any wholly unissued series of Preferred Stock, including without limitation authority to fix by resolution or resolutions the dividend rights, dividend rate, conversion rights, voting rights, rights and terms of redemption (including sinking fund provisions), redemption price or prices, and liquidation preferences of any such series, and the number of shares constituting any such series and the designation thereof, or any of the foregoing.

The Board of Directors is further authorized to increase (but not above the total number of authorized shares of the class) or decrease (but not below the number of shares of any such series then outstanding) the number of shares of any series, the number of which was fixed by it, subsequent to the issuance of shares of such series then outstanding, subject to the powers, preferences and rights, and the qualifications, limitations and restrictions thereof stated in the Certificate of Incorporation or the resolution of the Board of Directors originally fixing the number of shares of such series. If the number of shares of any series is so decreased, then the shares constituting such decrease shall resume the status which they had prior to the adoption of the resolution originally fixing the number of shares of such series.

ARTICLE V

The number of directors that constitutes the entire Board of Directors of the corporation shall be fixed by, or in the manner provided in, the Bylaws of the corporation. At each annual meeting of stockholders, directors of the corporation shall be elected to hold office until the expiration of the term for which they are elected and until their successors have been duly elected and qualified or until their earlier resignation or removal; except that if any such election shall not be so held, such election shall take place at a stockholders’ meeting called and held in accordance with the DGCL.

Effective upon the effective date of the filing of this Certificate of Incorporation (the “ Effective Date ”), the directors of the corporation shall be divided into three classes as nearly equal in size as is practicable, hereby designated Class I, Class II and Class III. The Board of Directors may assign members of the Board of Directors already in office to such classes at the time such classification becomes effective. The term of office of the initial

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Class I directors shall expire at the first regularly-scheduled annual meeting of the stockholders following the Effective Date, the term of office of the initial Class II directors shall expire at the second annual meeting of the stockholders following the Effective Date and the term of office of the initial Class III directors shall expire at the third annual meeting of the stockholders following the Effective Date. At each annual meeting of stockholders, commencing with the first regularly-scheduled annual meeting of stockholders following the Effective Date, each of the successors elected to replace the directors of a Class whose term shall have expired at such annual meeting shall be elected to hold office until the third annual meeting next succeeding his or her election and until his or her respective successor shall have been duly elected and qualified.

Notwithstanding the foregoing provisions of this Article, each director shall serve until his or her successor is duly elected and qualified or until his or her death, resignation, or removal. If the number of directors is hereafter changed, any newly created directorships or decrease in directorships shall be so apportioned among the classes as to make all classes as nearly equal in number as is practicable, provided that no decrease in the number of directors constituting the Board of Directors shall shorten the term of any incumbent director.

Any director may be removed from office by the stockholders of the corporation only for cause. Vacancies occurring on the Board of Directors for any reason and newly created directorships resulting from an increase in the authorized number of directors may be filled only by vote of a majority of the remaining members of the Board of Directors, although less than a quorum, or by a sole remaining director, at any meeting of the Board of Directors. A person so elected by the Board of Directors to fill a vacancy or newly created directorship shall hold office until the next election of the class for which such director shall have been chosen and until his or her successor shall be duly elected and qualified.

ARTICLE VI

In furtherance and not in limitation of the powers conferred by statute, the Board of Directors of the corporation is expressly authorized to adopt, amend or repeal the Bylaws of the corporation.

ARTICLE VII

Elections of directors need not be by written ballot unless the Bylaws of the corporation shall so provide.

No stockholder will be permitted to cumulate votes at any election of directors.

ARTICLE VIII

No action shall be taken by the stockholders of the corporation except at an annual or special meeting of the stockholders called in accordance with the Bylaws, and no action shall be taken by the stockholders by written consent.

ARTICLE IX

To the fullest extent permitted by the DGCL, as it presently exists or may hereafter be amended from time to time, a director of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director. If the DGCL is amended to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director of the corporation shall be eliminated or limited to the fullest extent permitted by the DGCL, as so amended.

Neither any amendment nor repeal of this Article, nor the adoption of any provision of this corporation’s Certificate of Incorporation inconsistent with this Article, shall eliminate or reduce the effect of this Article in respect of any matter occurring, or any cause of action, suit or proceeding accruing or arising or that, but for this Article, would accrue or arise, prior to such amendment, repeal or adoption of an inconsistent provision.

ARTICLE X

Subject to any provisions in the Bylaws of the corporation related to indemnification of directors or officers of the corporation, the corporation shall indemnify, to the fullest extent permitted by applicable law, any director or officer of the corporation who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (a “ Proceeding ”) by reason of the fact that he or she is or was a director, officer, employee or agent of the corporation or is or was serving

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at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with any such Proceeding. The corporation shall be required to indemnify a person in connection with a Proceeding initiated by such person only if the Proceeding was authorized by the Board.

The corporation shall have the power to indemnify, to the extent permitted by the DGCL, as it presently exists or may hereafter be amended from time to time, any employee or agent of the corporation who was or is a party or is threatened to be made a party to any Proceeding by reason of the fact that he or she is or was a director, officer, employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with any such Proceeding.

A right to indemnification or to advancement of expenses arising under a provision of this Certificate of Incorporation or a bylaw of the corporation shall not be eliminated or impaired by an amendment to this Certificate of Incorporation or the Bylaws of the corporation after the occurrence of the act or omission that is the subject of the civil, criminal, administrative or investigative action, suit or proceeding for which indemnification or advancement of expenses is sought, unless the provision in effect at the time of such act or omission explicitly authorizes such elimination or impairment after such action or omission has occurred.

ARTICLE XI

If any provision of this Certificate of Incorporation becomes or is declared on any ground by a court of competent jurisdiction to be illegal, unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Certificate of Incorporation, and the court will replace such illegal, void or unenforceable provision of this Certificate of Incorporation with a valid and enforceable provision that most accurately reflects the Corporation’s intent, in order to achieve, to the maximum extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Certificate of Incorporation shall be enforceable in accordance with its terms.

Except as provided in ARTICLE IX and ARTICLE X above, the corporation reserves the right to amend, alter, change or repeal any provision contained in this Certificate of Incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation; provided , that, notwithstanding any other provision of this Certificate of Incorporation or any provision of law that might otherwise permit a lesser vote or no vote, but in addition to any vote of the holders of any class or series of the stock of this corporation required by law or by this Certificate of Incorporation, the affirmative vote of the holders of at least sixty-six and two-thirds percent (66-2/3%) of the voting power of the outstanding shares of stock of the corporation entitled to vote generally in the election of directors, voting together as a single class, shall be required to amend or repeal, or adopt any provision of this Certificate of Incorporation inconsistent with, ARTICLE V, ARTICLE VI, ARTICLE VII, ARTICLE VIII, ARTICLE IX, ARTICLE X or this ARTICLE XI.

ARTICLE XII

The name and mailing address of the Sole Incorporator is as follows:

Name
Address
GP Investments Acquisition Corp
[•]

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IN WITNESS WHEREOF, GP Investments Acquisition Corp. has caused this Certificate of Incorporation to be executed on its behalf on this [•] day of [•], 2017.

 
GP INVESTMENTS ACQUISITION CORP.,
A Cayman Islands Company
 
 
 
 
By:
 
 
Name:
[•]
 
Title:
Authorized Signatory

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ANNEX E

FORM OF

BYLAWS OF

GP INVESTMENTS ACQUISITION CORP.

(adopted on [•], 2017)

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BYLAWS OF GP INVESTMENTS ACQUISITION CORP.

ARTICLE I - CORPORATE OFFICES

1.1 REGISTERED OFFICE

The registered office of GP Investments Acquisition Corp. shall be fixed in the corporation’s certificate of incorporation, as the same may be amended from time to time.

1.2 OTHER OFFICES

The corporation’s board of directors may at any time establish other offices at any place or places where the corporation is qualified to do business.

ARTICLE II - MEETINGS OF STOCKHOLDERS

2.1 PLACE OF MEETINGS

Meetings of stockholders shall be held at any place, within or outside the State of Delaware, designated by the board of directors. The board of directors may, in its sole discretion, determine that a meeting of stockholders shall not be held at any place, but may instead be held solely by means of remote communication as authorized by Section 211(a)(2) of the Delaware General Corporation Law (the “ DGCL ”). In the absence of any such designation or determination, stockholders’ meetings shall be held at the corporation’s principal executive office.

2.2 ANNUAL MEETING

The annual meeting of stockholders shall be held each year. The board of directors shall designate the date and time of the annual meeting. At the annual meeting, directors shall be elected and any other proper business may be transacted.

2.3 SPECIAL MEETING

(i) A special meeting of the stockholders, other than those required by statute, may be called at any time by the board of directors, chairperson of the board of directors, chief executive officer or president (in the absence of a chief executive officer), but a special meeting may not be called by any other person or persons. The board of directors may cancel, postpone or reschedule any previously scheduled special meeting at any time, before or after the notice for such meeting has been sent to the stockholders.

(ii) The notice of a special meeting shall include the purpose for which the meeting is called. Only such business shall be conducted at a special meeting of stockholders as shall have been brought before the meeting by or at the direction of the board of directors, chairperson of the board of directors, chief executive officer or president (in the absence of a chief executive officer). Nothing contained in this Section 2.3(ii) shall be construed as limiting, fixing or affecting the time when a meeting of stockholders called by action of the board of directors may be held.

2.4 ADVANCE NOTICE PROCEDURES

(i) Advance Notice of Stockholder Business. At an annual meeting of the stockholders, only such business shall be conducted as shall have been properly brought before the meeting. To be properly brought before an annual meeting, business must be brought: (A) pursuant to the corporation’s proxy materials with respect to such meeting, (B) by or at the direction of the board of directors, or (C) by a stockholder of the corporation who (1) is a stockholder of record at the time of the giving of the notice required by this Section 2.4(i), and on the record date for the determination of stockholders entitled to vote at the annual meeting and (2) has timely complied in proper written form with the notice procedures set forth in this Section 2.4(i). In addition, for business to be properly brought before an annual meeting by a stockholder, such business must be a proper matter for stockholder action pursuant to these bylaws and applicable law. For the avoidance of doubt, clause (C) above shall be the exclusive means for a stockholder to bring business before an annual meeting of stockholders.

(a) To comply with clause (C) of Section 2.4(i) above, a stockholder’s notice must set forth all information required under this Section 2.4(i) and must be timely received by the secretary of the corporation. To be timely, a stockholder’s notice must be received by the secretary at the principal executive offices of the corporation

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not later than the 45th day nor earlier than the 75th day before the one-year anniversary of the date on which the corporation first mailed its proxy materials or a notice of availability of proxy materials (whichever is earlier) for the preceding year’s annual meeting; provided , however , that in the event that no annual meeting was held in the previous year or if the date of the annual meeting is advanced by more than 30 days prior to or delayed by more than 60 days after the one-year anniversary of the date of the previous year’s annual meeting, then, for notice by the stockholder to be timely, it must be so received by the secretary not earlier than the close of business on the 120th day prior to such annual meeting and not later than the close of business on the later of (i) the 90th day prior to such annual meeting, or (ii) the tenth day following the day on which Public Announcement (as defined below) of the date of such annual meeting is first made. In no event shall any adjournment or postponement of an annual meeting or the announcement thereof commence a new time period for the giving of a stockholder’s notice as described in this Section 2.4(i)(a). “ Public Announcement ” shall mean disclosure in a press release reported by the Dow Jones News Service, Associated Press or a comparable national news service or in a document publicly filed by the corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Securities Exchange Act of 1934, as amended, or any successor thereto (the “ 1934 Act ”).

(b) To be in proper written form, a stockholder’s notice to the secretary must set forth as to each matter of business the stockholder intends to bring before the annual meeting: (1) a brief description of the business intended to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, (2) the name and address, as they appear on the corporation’s books, of the stockholder proposing such business and any Stockholder Associated Person (as defined below), (3) the class and number of shares of the corporation that are held of record or are beneficially owned by the stockholder or any Stockholder Associated Person and any derivative positions held or beneficially held by the stockholder or any Stockholder Associated Person, (4) whether and the extent to which any hedging or other transaction or series of transactions has been entered into by or on behalf of such stockholder or any Stockholder Associated Person with respect to any securities of the corporation, and a description of any other agreement, arrangement or understanding (including any short position or any borrowing or lending of shares), the effect or intent of which is to mitigate loss to, or to manage the risk or benefit from share price changes for, or to increase or decrease the voting power of, such stockholder or any Stockholder Associated Person with respect to any securities of the corporation, (5) any material interest of the stockholder or a Stockholder Associated Person in such business, and (6) a statement whether either such stockholder or any Stockholder Associated Person will deliver a proxy statement and form of proxy to holders of at least the percentage of the corporation’s voting shares required under applicable law to carry the proposal (such information provided and statements made as required by clauses (1) through (6), a “ Business Solicitation Statement ”). In addition, to be in proper written form, a stockholder’s notice to the secretary must be supplemented not later than ten days following the record date for the determination of stockholders entitled to notice of the meeting, to disclose the information contained in clauses (3) and (4) above as of the record date. For purposes of this Section 2.4, a “ Stockholder Associated Person ” of any stockholder shall mean (i) any person controlling, directly or indirectly, or acting in concert with, such stockholder, (ii) any beneficial owner of shares of stock of the corporation owned of record or beneficially by such stockholder and on whose behalf the proposal or nomination, as the case may be, is being made, or (iii) any person controlling, controlled by or under common control with such person referred to in the preceding clauses (i) and (ii).

(c) Without exception, no business shall be conducted at any annual meeting except in accordance with the provisions set forth in this Section 2.4(i) and, if applicable, Section 2.4(ii). In addition, business proposed to be brought by a stockholder may not be brought before the annual meeting if such stockholder or a Stockholder Associated Person, as applicable, takes action contrary to the representations made in the Business Solicitation Statement applicable to such business or if the Business Solicitation Statement applicable to such business contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements therein not misleading. The chairperson of the annual meeting shall, if the facts warrant, determine and declare at the annual meeting that business was not properly brought before the annual meeting and in accordance with the provisions of this Section 2.4(i), and, if the chairperson should so determine, he or she shall so declare at the annual meeting that any such business not properly brought before the annual meeting shall not be conducted.

(ii) Advance Notice of Director Nominations at Annual Meetings. Notwithstanding anything in these bylaws to the contrary, only persons who are nominated in accordance with the procedures set forth in this Section 2.4(ii) shall be eligible for election or re-election as directors at an annual meeting of stockholders. Nominations of persons for election to the board of directors of the corporation shall be made at an annual meeting of stockholders only (A) by or at the direction of the board of directors or (B) by a stockholder of the corporation who (1) was a

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stockholder of record at the time of the giving of the notice required by this Section 2.4(ii) and on the record date for the determination of stockholders entitled to vote at the annual meeting and (2) has complied with the notice procedures set forth in this Section 2.4(ii). In addition to any other applicable requirements, for a nomination to be made by a stockholder, the stockholder must have given timely notice thereof in proper written form to the secretary of the corporation.

(a) To comply with clause (B) of Section 2.4(ii) above, a nomination to be made by a stockholder must set forth all information required under this Section 2.4(ii) and must be received by the secretary of the corporation at the principal executive offices of the corporation at the time set forth in, and in accordance with, the final three sentences of Section 2.4(i)(a) above.

(b) To be in proper written form, such stockholder’s notice to the secretary must set forth:

(1) as to each person (a “ nominee ”) whom the stockholder proposes to nominate for election or re-election as a director: (A) the name, age, business address and residence address of the nominee, (B) the principal occupation or employment of the nominee, (C) the class and number of shares of the corporation that are held of record or are beneficially owned by the nominee and any derivative positions held or beneficially held by the nominee, (D) whether and the extent to which any hedging or other transaction or series of transactions has been entered into by or on behalf of the nominee with respect to any securities of the corporation, and a description of any other agreement, arrangement or understanding (including any short position or any borrowing or lending of shares), the effect or intent of which is to mitigate loss to, or to manage the risk or benefit of share price changes for, or to increase or decrease the voting power of the nominee, (E) a description of all arrangements or understandings between the stockholder and each nominee and any other person or persons (naming such person or persons) pursuant to which the nominations are to be made by the stockholder, (F) a written statement executed by the nominee acknowledging that as a director of the corporation, the nominee will owe a fiduciary duty under Delaware law with respect to the corporation and its stockholders, and (G) any other information relating to the nominee that would be required to be disclosed about such nominee if proxies were being solicited for the election of the nominee as a director, or that is otherwise required, in each case pursuant to Regulation 14A under the 1934 Act (including without limitation the nominee’s written consent to being named in the proxy statement, if any, as a nominee and to serving as a director if elected); and

(2) as to such stockholder giving notice, (A) the information required to be provided pursuant to clauses (2) through (5) of Section 2.4(i)(b) above, and the supplement referenced in the second sentence of Section 2.4(i)(b) above (except that the references to “business” in such clauses shall instead refer to nominations of directors for purposes of this paragraph), and (B) a statement whether either such stockholder or Stockholder Associated Person will deliver a proxy statement and form of proxy to holders of a number of the corporation’s voting shares reasonably believed by such stockholder or Stockholder Associated Person to be necessary to elect such nominee(s) (such information provided and statements made as required by clauses (A) and (B) above, a “ Nominee Solicitation Statement ”).

(c) At the request of the board of directors, any person nominated by a stockholder for election as a director must furnish to the secretary of the corporation (1) that information required to be set forth in the stockholder’s notice of nomination of such person as a director as of a date subsequent to the date on which the notice of such person’s nomination was given and (2) such other information as may reasonably be required by the corporation to determine the eligibility of such proposed nominee to serve as an independent director of the corporation or that could be material to a reasonable stockholder’s understanding of the independence, or lack thereof, of such nominee; in the absence of the furnishing of such information if requested, such stockholder’s nomination shall not be considered in proper form pursuant to this Section 2.4(ii).

(d) Without exception, no person shall be eligible for election or re-election as a director of the corporation at an annual meeting of stockholders unless nominated in accordance with the provisions set forth in this Section 2.4(ii). In addition, a nominee shall not be eligible for election or re-election if a stockholder or Stockholder Associated Person, as applicable, takes action contrary to the representations made in the Nominee Solicitation Statement applicable to such nominee or if the Nominee Solicitation Statement applicable to such nominee contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements therein not

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misleading. The chairperson of the annual meeting shall, if the facts warrant, determine and declare at the annual meeting that a nomination was not made in accordance with the provisions prescribed by these bylaws, and if the chairperson should so determine, he or she shall so declare at the annual meeting, and the defective nomination shall be disregarded.

(iii) Advance Notice of Director Nominations for Special Meetings.

(a) For a special meeting of stockholders at which directors are to be elected pursuant to Section 2.3, nominations of persons for election to the board of directors shall be made only (1) by or at the direction of the board of directors or (2) by any stockholder of the corporation who (A) is a stockholder of record at the time of the giving of the notice required by this Section 2.4(iii) and on the record date for the determination of stockholders entitled to vote at the special meeting and (B) delivers a timely written notice of the nomination to the secretary of the corporation that includes the information set forth in Sections 2.4(ii)(b) and (ii)(c) above. To be timely, such notice must be received by the secretary at the principal executive offices of the corporation not later than the close of business on the later of the 90th day prior to such special meeting or the tenth day following the day on which Public Announcement is first made of the date of the special meeting and of the nominees proposed by the board of directors to be elected at such meeting. A person shall not be eligible for election or re-election as a director at a special meeting unless the person is nominated (i) by or at the direction of the board of directors or (ii) by a stockholder in accordance with the notice procedures set forth in this Section 2.4(iii). In addition, a nominee shall not be eligible for election or re-election if a stockholder or Stockholder Associated Person, as applicable, takes action contrary to the representations made in the Nominee Solicitation Statement applicable to such nominee or if the Nominee Solicitation Statement applicable to such nominee contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements therein not misleading.

(b) The chairperson of the special meeting shall, if the facts warrant, determine and declare at the meeting that a nomination or business was not made in accordance with the procedures prescribed by these bylaws, and if the chairperson should so determine, he or she shall so declare at the meeting, and the defective nomination or business shall be disregarded.

(iv) Other Requirements and Rights. In addition to the foregoing provisions of this Section 2.4, a stockholder must also comply with all applicable requirements of state law and of the 1934 Act and the rules and regulations thereunder with respect to the matters set forth in this Section 2.4, including, with respect to business such stockholder intends to bring before the annual meeting that involves a proposal that such stockholder requests to be included in the corporation’s proxy statement, the requirements of Rule 14a-8 (or any successor provision) under the 1934 Act. Nothing in this Section 2.4 shall be deemed to affect any right of the corporation to omit a proposal from the corporation’s proxy statement pursuant to Rule 14a-8 (or any successor provision) under the 1934 Act.

2.5 NOTICE OF STOCKHOLDERS’ MEETINGS

Whenever stockholders are required or permitted to take any action at a meeting, a written notice of the meeting shall be given which shall state the place, if any, date and hour of the meeting, the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such meeting, the record date for determining the stockholders entitled to vote at the meeting, if such date is different from the record date for determining stockholders entitled to notice of the meeting, and, in the case of a special meeting, the purpose or purposes for which the meeting is called. Except as otherwise provided in the DGCL, the certificate of incorporation or these bylaws, the written notice of any meeting of stockholders shall be given not less than 10 nor more than 60 days before the date of the meeting to each stockholder entitled to vote at such meeting as of the record date for determining the stockholders entitled to notice of the meeting.

2.6 QUORUM

The holders of a majority of the stock issued and outstanding and entitled to vote, present in person or represented by proxy, shall constitute a quorum for the transaction of business at all meetings of the stockholders. Where a separate vote by a class or series or classes or series is required, a majority of the outstanding shares of such class or series or classes or series, present in person or represented by proxy, shall constitute a quorum entitled to take action with respect to that vote on that matter, except as otherwise provided by law, the certificate of incorporation or these bylaws.

If, however, such quorum is not present or represented at any meeting of the stockholders, then either (i) the chairperson of the meeting, or (ii) the stockholders entitled to vote at the meeting, present in person or represented

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by proxy, shall have power to adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present or represented. At such adjourned meeting at which a quorum is present or represented, any business may be transacted that might have been transacted at the meeting as originally noticed.

2.7 ADJOURNED MEETING; NOTICE

When a meeting is adjourned to another time or place, unless these bylaws otherwise require, notice need not be given of the adjourned meeting if the time, place, if any, thereof, and the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at such adjourned meeting are announced at the meeting at which the adjournment is taken. At the adjourned meeting, the corporation may transact any business which might have been transacted at the original meeting. If the adjournment is for more than 30 days, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting. If after the adjournment a new record date for stockholders entitled to vote is fixed for the adjourned meeting, the board of directors shall fix a new record date for notice of such adjourned meeting in accordance with Section 213(a) of the DGCL and Section 2.11 of these bylaws, and shall give notice of the adjourned meeting to each stockholder of record entitled to vote at such adjourned meeting as of the record date fixed for notice of such adjourned meeting.

2.8 CONDUCT OF BUSINESS

The chairperson of any meeting of stockholders shall determine the order of business and the procedure at the meeting, including such regulation of the manner of voting and the conduct of business, and shall have the power to adjourn the meeting to another place, if any, date or time, whether or not a quorum is present.

2.9 VOTING

The stockholders entitled to vote at any meeting of stockholders shall be determined in accordance with the provisions of Section 2.11 of these bylaws, subject to Section 217 (relating to voting rights of fiduciaries, pledgors and joint owners of stock) and Section 218 (relating to voting trusts and other voting agreements) of the DGCL.

Except as may be otherwise provided in the certificate of incorporation or these bylaws, each stockholder shall be entitled to one vote for each share of capital stock held by such stockholder.

Except as otherwise required by law, the certificate of incorporation or these bylaws, in all matters other than the election of directors, the affirmative vote of a majority of the voting power of the shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter shall be the act of the stockholders. Except as otherwise required by law, the certificate of incorporation or these bylaws, directors shall be elected by a plurality of the voting power of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. Where a separate vote by a class or series or classes or series is required, in all matters other than the election of directors, the affirmative vote of the majority of shares of such class or series or classes or series present in person or represented by proxy at the meeting shall be the act of such class or series or classes or series, except as otherwise provided by law, the certificate of incorporation or these bylaws.

2.10 STOCKHOLDER ACTION BY WRITTEN CONSENT WITHOUT A MEETING

Subject to the rights of the holders of the shares of any series of Preferred Stock or any other class of stock or series thereof having a preference over the Common Stock as dividend or upon liquidation, any action required or permitted to be taken by the stockholders of the corporation must be effected at a duly called annual or special meeting of stockholders of the corporation and may not be effected by any consent in writing by such stockholders.

2.11 RECORD DATES

In order that the corporation may determine the stockholders entitled to notice of any meeting of stockholders or any adjournment thereof, the board of directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the board of directors and which record date shall not be more than 60 nor less than 10 days before the date of such meeting. If the board of directors so fixes a date, such date shall also be the record date for determining the stockholders entitled to vote at such meeting unless the board of directors determines, at the time it fixes such record date, that a later date on or before the date of the meeting shall be the date for making such determination.

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If no record date is fixed by the board of directors, the record date for determining stockholders entitled to notice of and to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held.

A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however , that the board of directors may fix a new record date for determination of stockholders entitled to vote at the adjourned meeting, and in such case shall also fix as the record date for stockholders entitled to notice of such adjourned meeting the same or an earlier date as that fixed for determination of stockholders entitled to vote in accordance with the provisions of Section 213 of the DGCL and this Section 2.11 at the adjourned meeting.

In order that the corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the board of directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted, and which record date shall be not more than 60 days prior to such action. If no record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the day on which the board of directors adopts the resolution relating thereto.

2.12 PROXIES

Each stockholder entitled to vote at a meeting of stockholders may authorize another person or persons to act for such stockholder by proxy authorized by an instrument in writing or by a transmission permitted by law filed in accordance with the procedure established for the meeting, but no such proxy shall be voted or acted upon after three years from its date, unless the proxy provides for a longer period. The revocability of a proxy that states on its face that it is irrevocable shall be governed by the provisions of Section 212 of the DGCL.

2.13 LIST OF STOCKHOLDERS ENTITLED TO VOTE

The officer who has charge of the stock ledger of the corporation shall prepare and make, at least 10 days before every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting; provided, however, if the record date for determining the stockholders entitled to vote is less than 10 days before the meeting date, the list shall reflect the stockholders entitled to vote as of the tenth day before the meeting date, arranged in alphabetical order, and showing the address of each stockholder and the number of shares registered in the name of each stockholder. The corporation shall not be required to include electronic mail addresses or other electronic contact information on such list. Such list shall be open to the examination of any stockholder for any purpose germane to the meeting for a period of at least 10 days prior to the meeting: (i) on a reasonably accessible electronic network, provided that the information required to gain access to such list is provided with the notice of the meeting, or (ii) during ordinary business hours, at the corporation’s principal place of business. In the event that the corporation determines to make the list available on an electronic network, the corporation may take reasonable steps to ensure that such information is available only to stockholders of the corporation. If the meeting is to be held at a place, then a list of stockholders entitled to vote at the meeting shall be produced and kept at the time and place of the meeting during the whole time thereof, and may be examined by any stockholder who is present. If the meeting is to be held solely by means of remote communication, then such list shall also be open to the examination of any stockholder during the whole time of the meeting on a reasonably accessible electronic network, and the information required to access such list shall be provided with the notice of the meeting.

2.14 INSPECTORS OF ELECTION

A written proxy may be in the form of a telegram, cablegram, or other means of electronic transmission which sets forth or is submitted with information from which it can be determined that the telegram, cablegram, or other means of electronic transmission was authorized by the person.

Before any meeting of stockholders, the board of directors shall appoint an inspector or inspectors of election to act at the meeting or its adjournment. The number of inspectors shall be either one (1) or three (3). If any person appointed as inspector fails to appear or fails or refuses to act, then the chairperson of the meeting may, and upon the request of any stockholder or a stockholder’s proxy shall, appoint a person to fill that vacancy.

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Such inspectors shall:

(i) ascertain the number of shares outstanding and the voting power of each;

(ii) determine the shares represented at the meeting and the validity of proxies and ballots;

(iii) count all votes and ballots;

(iv) determine and retain for a reasonable period a record of the disposition of any challenges made to any determination by the inspectors; and

(v) certify their determination of the number of shares represented at the meeting, and their count of all votes and ballots.

The inspectors of election shall perform their duties impartially, in good faith, to the best of their ability and as expeditiously as is practical. If there are three (3) inspectors of election, the decision, act or certificate of a majority is effective in all respects as the decision, act or certificate of all. Any report or certificate made by the inspectors of election is prima facie evidence of the facts stated therein.

ARTICLE III - DIRECTORS

3.1 POWERS

The business and affairs of the corporation shall be managed by or under the direction of the board of directors, except as may be otherwise provided in the DGCL or the certificate of incorporation.

3.2 NUMBER OF DIRECTORS

The board of directors shall consist of one or more members, each of whom shall be a natural person. Unless the certificate of incorporation fixes the number of directors, the number of directors shall be determined from time to time by resolution of the board of directors. No reduction of the authorized number of directors shall have the effect of removing any director before that director’s term of office expires.

3.3 ELECTION, QUALIFICATION AND TERM OF OFFICE OF DIRECTORS

Except as provided in Section 3.4 of these bylaws, each director, including a director elected to fill a vacancy, shall hold office until the expiration of the term for which elected and until such director’s successor is elected and qualified or until such director’s earlier death, resignation or removal. Directors need not be stockholders unless so required by the certificate of incorporation or these bylaws. The certificate of incorporation or these bylaws may prescribe other qualifications for directors.

If so provided in the certificate of incorporation, the directors of the corporation shall be divided into three classes.

3.4 RESIGNATION AND VACANCIES

Any director may resign at any time upon notice given in writing or by electronic transmission to the corporation. A resignation is effective when the resignation is delivered unless the resignation specifies a later effective date or an effective date determined upon the happening of an event or events. A resignation which is conditioned upon the director failing to receive a specified vote for reelection as a director may provide that it is irrevocable. Unless otherwise provided in the certificate of incorporation or these bylaws, when one or more directors resign from the board of directors, effective at a future date, a majority of the directors then in office, including those who have so resigned, shall have power to fill such vacancy or vacancies, the vote thereon to take effect when such resignation or resignations shall become effective.

Unless otherwise provided in the certificate of incorporation or these bylaws, vacancies and newly created directorships resulting from any increase in the authorized number of directors elected by all of the stockholders having the right to vote as a single class may be filled by a majority of the directors then in office, although less than a quorum, or by a sole remaining director, and not by stockholders. If the directors are divided into classes, a person so elected by the directors then in office to fill a vacancy or newly created directorship shall hold office until the next election of the class for which such director shall have been chosen and until his or her successor shall have been duly elected and qualified.

If at any time, by reason of death or resignation or other cause, the corporation should have no directors in office, then any officer or any stockholder or an executor, administrator, trustee or guardian of a stockholder, or other

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fiduciary entrusted with like responsibility for the person or estate of a stockholder, may call a special meeting of stockholders in accordance with the provisions of the certificate of incorporation or these bylaws, or may apply to the Court of Chancery for a decree summarily ordering an election as provided in Section 211 of the DGCL.

If, at the time of filling any vacancy or any newly created directorship, the directors then in office constitute less than a majority of the whole board of directors (as constituted immediately prior to any such increase), the Court of Chancery may, upon application of any stockholder or stockholders holding at least 10% of the voting stock at the time outstanding having the right to vote for such directors, summarily order an election to be held to fill any such vacancies or newly created directorships, or to replace the directors chosen by the directors then in office as aforesaid, which election shall be governed by the provisions of Section 211 of the DGCL as far as applicable.

3.5 PLACE OF MEETINGS; MEETINGS BY TELEPHONE

The board of directors may hold meetings, both regular and special, either within or outside the State of Delaware.

Unless otherwise restricted by the certificate of incorporation or these bylaws, members of the board of directors, or any committee designated by the board of directors or any subcommittee, may participate in a meeting of the board of directors, or any such committee or subcommittee, by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and such participation in a meeting shall constitute presence in person at the meeting.

3.6 REGULAR MEETINGS

Regular meetings of the board of directors may be held without notice at such time and at such place as shall from time to time be determined by the board of directors.

3.7 SPECIAL MEETINGS; NOTICE

Special meetings of the board of directors for any purpose or purposes may be called at any time by the chairperson of the board of directors, the chief executive officer, the president, the secretary or a majority of the authorized number of directors.

Notice of the time and place of special meetings shall be:

(i) delivered personally by hand, by courier or by telephone;

(ii) sent by United States first-class mail, postage prepaid;

(iii) sent by facsimile; or

(iv) sent by electronic mail,

directed to each director at that director’s address, telephone number, facsimile number or electronic mail address, as the case may be, as shown on the corporation’s records.

If the notice is (i) delivered personally by hand, by courier or by telephone, (ii) sent by facsimile or (iii) sent by electronic mail, it shall be delivered or sent at least 24 hours before the time of the holding of the meeting. If the notice is sent by United States mail, it shall be deposited in the United States mail at least four days before the time of the holding of the meeting. Any oral notice may be communicated to the director. The notice need not specify the place of the meeting (if the meeting is to be held at the corporation’s principal executive office) nor the purpose of the meeting.

3.8 QUORUM; VOTING

At all meetings of the board of directors, a majority of the total authorized number of directors shall constitute a quorum for the transaction of business. If a quorum is not present at any meeting of the board of directors, then the directors present thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum is present. A meeting at which a quorum is initially present may continue to transact business notwithstanding the withdrawal of directors, if any action taken is approved by at least a majority of the required quorum for that meeting.

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The vote of a majority of the directors present at any meeting at which a quorum is present shall be the act of the board of directors, except as may be otherwise specifically provided by statute, the certificate of incorporation or these bylaws.

If the certificate of incorporation provides that one or more directors shall have more or less than one vote per director on any matter, every reference in these bylaws to a majority or other proportion of the directors shall refer to a majority or other proportion of the votes of the directors.

3.9 BOARD ACTION BY WRITTEN CONSENT WITHOUT A MEETING

Unless otherwise restricted by the certificate of incorporation or these bylaws, any action required or permitted to be taken at any meeting of the board of directors, or of any committee or subcommittee thereof, may be taken without a meeting if all members of the board of directors or committee or subcommittee, as the case may be, consent thereto in writing or by electronic transmission and the writing or writings or electronic transmission or transmissions are filed with the minutes of proceedings of the board of directors or committee or subcommittee. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form. Any person (whether or not then a director) may provide, whether through instruction to an agent or otherwise, that a consent to action will be effective at a future time (including a time determined upon the happening of an event), no later than 60 days after such instruction is given or such provision is made and such consent shall be deemed to have been given for purposes of this Section 3.9 at such effective time so long as such person is then a director and did not revoke the consent prior to such time. Any such consent shall be revocable prior to its becoming effective.

3.10 FEES AND COMPENSATION OF DIRECTORS

Unless otherwise restricted by the certificate of incorporation or these bylaws, the board of directors shall have the authority to fix the compensation of directors.

3.11 REMOVAL OF DIRECTORS

Any director may be removed from office by the stockholders of the corporation only for cause.

No reduction of the authorized number of directors shall have the effect of removing any director prior to the expiration of such director’s term of office.

ARTICLE IV - COMMITTEES

4.1 COMMITTEES OF DIRECTORS

The board of directors may, by resolution passed by a majority of the authorized number of directors, designate one or more committees, each committee to consist of one or more of the directors of the corporation. The board of directors may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of a committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the board of directors to act at the meeting in the place of any such absent or disqualified member. Any such committee, to the extent provided in the resolution of the board of directors or in these bylaws, shall have and may exercise all the powers and authority of the board of directors in the management of the business and affairs of the corporation, and may authorize the seal of the corporation to be affixed to all papers that may require it; but no such committee shall have the power or authority to (i) approve or adopt, or recommend to the stockholders, any action or matter (other than the election or removal of directors) expressly required by the DGCL to be submitted to stockholders for approval, or (ii) adopt, amend or repeal any bylaw of the corporation.

4.2 COMMITTEE MINUTES

Each committee and subcommittee shall keep regular minutes of its meetings and report the same to the board of directors, or the committee, when required.

4.3 MEETINGS AND ACTION OF COMMITTEES

A majority of the directors then serving on a committee or subcommittee shall constitute a quorum for the transaction of business by the committee or subcommittee, unless the certificate of incorporation, these bylaws, a resolution of the board of directors or a resolution of a committee that created the subcommittee requires a greater

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or lesser number, provided that in no case shall a quorum be less than 1/3 of the directors then serving on the committee or subcommittee. The vote of the majority of the members of a committee or subcommittee present at a meeting at which a quorum is present shall be the act of the committee or subcommittee, unless the certificate of incorporation, these bylaws, a resolution of the board of directors or a resolution of a committee that created the subcommittee requires a greater number. Meetings and actions of committees and subcommittees shall otherwise be governed by, and held and taken in accordance with, the provisions of:

(i) Section 3.5 (place of meetings and meetings by telephone);

(ii) Section 3.6 (regular meetings);

(iii) Section 3.7 (special meetings and notice);

(iv) Section 3.8 (quorum; voting);

(v) Section 7.5 (waiver of notice); and

(vi) Section 3.9 (action without a meeting)

with such changes in the context of those bylaws as are necessary to substitute the committee or subcommittee and its members for the board of directors and its members. However :

(i) the time and place of regular meetings of committees and subcommittees may be determined either by resolution of the board of directors or by resolution of the committee or subcommittee;

(ii) special meetings of committees and subcommittees may also be called by resolution of the board of directors or the committee or subcommittee; and

(iii) notice of special meetings of committees and subcommittees shall also be given to all alternate members, as applicable, who shall have the right to attend all meetings of the committee or subcommittee. The board of directors, or, in the absence of any such action by the board of directors, the committee or subcommittee, may adopt rules for the government of any committee or subcommittee not inconsistent with the provisions of these bylaws.

Any provision in the certificate of incorporation providing that one or more directors shall have more or less than one vote per director on any matter shall apply to voting in any committee or subcommittee, unless otherwise provided in the certificate of incorporation or these bylaws.

4.4 SUBCOMMITTEES

Unless otherwise provided in the certificate of incorporation, these bylaws or the resolutions of the board of directors designating the committee, a committee may create one or more subcommittees, each subcommittee to consist of one or more members of the committee, and delegate to a subcommittee any or all of the powers and authority of the committee.

ARTICLE V - OFFICERS

5.1 OFFICERS

The officers of the corporation shall be a president and a secretary. The corporation may also have, at the discretion of the board of directors, a chairperson of the board of directors, a vice chairperson of the board of directors, a chief executive officer, a chief financial officer or treasurer, one or more vice presidents, one or more assistant vice presidents, one or more assistant treasurers, one or more assistant secretaries, and any such other officers as may be appointed in accordance with the provisions of these bylaws. Any number of offices may be held by the same person.

5.2 APPOINTMENT OF OFFICERS

The board of directors shall appoint the officers of the corporation, except such officers as may be appointed in accordance with the provisions of Sections 5.3 of these bylaws, subject to the rights, if any, of an officer under any contract of employment.

5.3 SUBORDINATE OFFICERS

The board of directors may appoint, or empower the chief executive officer or, in the absence of a chief executive officer, the president, to appoint, such other officers and agents as the business of the corporation may

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require. Each of such officers and agents shall hold office for such period, have such authority, and perform such duties as are provided in these bylaws or as the board of directors may from time to time determine.

5.4 REMOVAL AND RESIGNATION OF OFFICERS

Subject to the rights, if any, of an officer under any contract of employment, any officer may be removed, either with or without cause, by an affirmative vote of the majority of the board of directors at any regular or special meeting of the board of directors or, except in the case of an officer chosen by the board of directors, by any officer upon whom such power of removal may be conferred by the board of directors.

Any officer may resign at any time by giving written notice to the corporation. Any resignation shall take effect at the date of the receipt of that notice or at any later time specified in that notice. Unless otherwise specified in the notice of resignation, the acceptance of the resignation shall not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of the corporation under any contract to which the officer is a party.

5.5 VACANCIES IN OFFICES

Any vacancy occurring in any office of the corporation shall be filled by the board of directors or as provided in Section 5.3.

5.6 REPRESENTATION OF SHARES OF OTHER CORPORATIONS

The chairperson of the board of directors, the president, any vice president, the treasurer, the secretary or assistant secretary of this corporation, or any other person authorized by the board of directors or the president or a vice president, is authorized to vote, represent, and exercise on behalf of this corporation all rights incident to any and all shares of any other corporation or corporations standing in the name of this corporation. The authority granted herein may be exercised either by such person directly or by any other person authorized to do so by proxy or power of attorney duly executed by such person having the authority.

5.7 AUTHORITY AND DUTIES OF OFFICERS

All officers of the corporation shall respectively have such authority and perform such duties in the management of the business of the corporation as may be designated from time to time by the board of directors and, to the extent not so provided, as generally pertain to their respective offices, subject to the control of the board of directors.

ARTICLE VI - STOCK

6.1 STOCK CERTIFICATES; PARTLY PAID SHARES

The shares of the corporation shall be represented by certificates, provided that the board of directors may provide by resolution or resolutions that some or all of any or all classes or series of its stock shall be uncertificated shares. Any such resolution shall not apply to shares represented by a certificate until such certificate is surrendered to the corporation. Any or all of the signatures on the certificate may be a facsimile. In case any officer, transfer agent or registrar who has signed or whose facsimile signature has been placed upon a certificate has ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the corporation with the same effect as if such person were such officer, transfer agent or registrar at the date of issue. The corporation shall not have power to issue a certificate in bearer form.

The corporation may issue the whole or any part of its shares as partly paid and subject to call for the remainder of the consideration to be paid therefor. Upon the face or back of each stock certificate issued to represent any such partly paid shares, or upon the books and records of the corporation in the case of uncertificated partly paid shares, the total amount of the consideration to be paid therefor and the amount paid thereon shall be stated. Upon the declaration of any dividend on fully paid shares, the corporation shall declare a dividend upon partly paid shares of the same class, but only upon the basis of the percentage of the consideration actually paid thereon.

6.2 SPECIAL DESIGNATION ON CERTIFICATES

If the corporation is authorized to issue more than one class of stock or more than one series of any class, then the powers, the designations, the preferences, and the relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights shall be set forth in full or summarized on the face or back of the certificate that the corporation shall issue to represent such class or series of stock; provided, however , that, except as otherwise provided in Section 202 of the DGCL, in lieu of the foregoing requirements there may be set forth on the face or back of the certificate that the corporation

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shall issue to represent such class or series of stock, a statement that the corporation will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights. Within a reasonable time after the issuance or transfer of uncertificated stock, the corporation shall send to the registered owner thereof a written notice containing the information required to be set forth or stated on certificates pursuant to this section 6.2 or Sections 156, 202(a) or 218(a) of the DGCL or with respect to this section 6.2 a statement that the corporation will furnish without charge to each stockholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights. Except as otherwise expressly provided by law, the rights and obligations of the holders of uncertificated stock and the rights and obligations of the holders of certificates representing stock of the same class and series shall be identical.

6.3 LOST CERTIFICATES

Except as provided in this Section 6.3, no new certificates for shares shall be issued to replace a previously issued certificate unless the latter is surrendered to the corporation and cancelled at the same time. The corporation may issue a new certificate of stock or uncertificated shares in the place of any certificate theretofore issued by it, alleged to have been lost, stolen or destroyed, and the corporation may require the owner of the lost, stolen or destroyed certificate, or such owner’s legal representative, to give the corporation a bond sufficient to indemnify it against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate or uncertificated shares.

6.4 DIVIDENDS

The board of directors, subject to any restrictions contained in the certificate of incorporation or applicable law, may declare and pay dividends upon the shares of the corporation’s capital stock. Dividends may be paid in cash, in property, or in shares of the corporation’s capital stock, subject to the provisions of the certificate of incorporation.

The board of directors may set apart out of any of the funds of the corporation available for dividends a reserve or reserves for any proper purpose and may abolish any such reserve. Such purposes shall include but not be limited to equalizing dividends, repairing or maintaining any property of the corporation, and meeting contingencies.

6.5 TRANSFER OF STOCK

Transfers of record of shares of stock of the corporation shall be made only upon its books by the holders thereof, in person or by an attorney duly authorized, and, if such stock is certificated, upon the surrender of a certificate or certificates for a like number of shares, properly endorsed or accompanied by proper evidence of succession, assignation or authority to transfer.

6.6 STOCK TRANSFER AGREEMENTS

The corporation shall have power to enter into and perform any agreement with any number of stockholders of any one or more classes of stock of the corporation to restrict the transfer of shares of stock of the corporation of any one or more classes owned by such stockholders in any manner not prohibited by the DGCL.

6.7 REGISTERED STOCKHOLDERS

The corporation:

(i) shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends and to vote as such owner;

(ii) shall be entitled to hold liable for calls and assessments the person registered on its books as the owner of shares; and

(iii) shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of another person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of Delaware.

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ARTICLE VII - MANNER OF GIVING NOTICE AND WAIVER

7.1 NOTICE OF STOCKHOLDERS’ MEETINGS

Notice of any meeting of stockholders, if mailed, is given when deposited in the United States mail, postage prepaid, directed to the stockholder at such stockholder’s address as it appears on the corporation’s records. An affidavit of the secretary or an assistant secretary of the corporation or of the transfer agent or other agent of the corporation that the notice has been given shall, in the absence of fraud, be prima facie evidence of the facts stated therein.

7.2 NOTICE BY ELECTRONIC TRANSMISSION

Without limiting the manner by which notice otherwise may be given effectively to stockholders pursuant to the DGCL, the certificate of incorporation or these bylaws, any notice to stockholders given by the corporation under any provision of the DGCL, the certificate of incorporation or these bylaws shall be effective if given by a form of electronic transmission consented to by the stockholder to whom the notice is given. Any such consent shall be revocable by the stockholder by written notice to the corporation. Any such consent shall be deemed revoked if:

(i) the corporation is unable to deliver by electronic transmission two consecutive notices given by the corporation in accordance with such consent; and

(ii) such inability becomes known to the secretary or an assistant secretary of the corporation or to the transfer agent, or other person responsible for the giving of notice.

However, the inadvertent failure to treat such inability as a revocation shall not invalidate any meeting or other action.

Any notice given pursuant to the preceding paragraph shall be deemed given:

(i) if by facsimile telecommunication, when directed to a number at which the stockholder has consented to receive notice;

(ii) if by electronic mail, when directed to an electronic mail address at which the stockholder has consented to receive notice;

(iii) if by a posting on an electronic network together with separate notice to the stockholder of such specific posting, upon the later of (A) such posting and (B) the giving of such separate notice; and

(iv) if by any other form of electronic transmission, when directed to the stockholder.

An affidavit of the secretary or an assistant secretary or of the transfer agent or other agent of the corporation that the notice has been given by a form of electronic transmission shall, in the absence of fraud, be prima facie evidence of the facts stated therein.

An “ electronic transmission ” means any form of communication, not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved, and reviewed by a recipient thereof, and that may be directly reproduced in paper form by such a recipient through an automated process.

Notice by a form of electronic transmission shall not apply to Sections 164, 296, 311, 312 or 324 of the DGCL.

7.3 NOTICE TO STOCKHOLDERS SHARING AN ADDRESS

Except as otherwise prohibited under the DGCL, without limiting the manner by which notice otherwise may be given effectively to stockholders, any notice to stockholders given by the corporation under the provisions of the DGCL, the certificate of incorporation or these bylaws shall be effective if given by a single written notice to stockholders who share an address if consented to by the stockholders at that address to whom such notice is given. Any such consent shall be revocable by the stockholder by written notice to the corporation. Any stockholder who fails to object in writing to the corporation, within 60 days of having been given written notice by the corporation of its intention to send the single notice, shall be deemed to have consented to receiving such single written notice.

7.4 NOTICE TO PERSON WITH WHOM COMMUNICATION IS UNLAWFUL

Whenever notice is required to be given, under the DGCL, the certificate of incorporation or these bylaws, to any person with whom communication is unlawful, the giving of such notice to such person shall not be required and there shall be no duty to apply to any governmental authority or agency for a license or permit to give such notice to such person. Any action or meeting which shall be taken or held without notice to any such person with whom

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communication is unlawful shall have the same force and effect as if such notice had been duly given. In the event that the action taken by the corporation is such as to require the filing of a certificate under the DGCL, the certificate shall state, if such is the fact and if notice is required, that notice was given to all persons entitled to receive notice except such persons with whom communication is unlawful.

7.5 WAIVER OF NOTICE

Whenever notice is required to be given under any provision of the DGCL, the certificate of incorporation or these bylaws, a written waiver, signed by the person entitled to notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time of the event for which notice is to be given, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except when the person attends a meeting for the express purpose of objecting at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the stockholders need be specified in any written waiver of notice or any waiver by electronic transmission unless so required by the certificate of incorporation or these bylaws.

ARTICLE VIII - INDEMNIFICATION

8.1 INDEMNIFICATION OF DIRECTORS AND OFFICERS IN THIRD PARTY PROCEEDINGS

Subject to the other provisions of this Article VIII, the corporation shall indemnify, to the fullest extent permitted by the DGCL, as now or hereinafter in effect, any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (a “ Proceeding ”) (other than an action by or in the right of the corporation) by reason of the fact that such person is or was a director or officer of the corporation, or is or was a director or officer of the corporation serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such Proceeding if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe such person’s conduct was unlawful. The termination of any Proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which such person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that such person’s conduct was unlawful.

8.2 INDEMNIFICATION OF DIRECTORS AND OFFICERS IN ACTIONS BY OR IN THE RIGHT OF THE CORPORATION

Subject to the other provisions of this Article VIII, the corporation shall indemnify, to the fullest extent permitted by the DGCL, as now or hereinafter in effect, any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that such person is or was a director or officer of the corporation, or is or was a director or officer of the corporation serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action or suit if such person acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the corporation; except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.

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8.3 SUCCESSFUL DEFENSE

To the extent that a present or former director or officer of the corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding described in Section 8.1 or Section 8.2, or in defense of any claim, issue or matter therein, such person shall be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by such person in connection therewith.

8.4 INDEMNIFICATION OF OTHERS

Subject to the other provisions of this Article VIII, the corporation shall have power to indemnify its employees and agents to the extent not prohibited by the DGCL or other applicable law. The board of directors shall have the power to delegate to such person or persons the determination of whether employees or agents shall be indemnified.

8.5 ADVANCED PAYMENT OF EXPENSES

Expenses (including attorneys’ fees) actually and reasonably incurred by an officer or director of the corporation in defending any Proceeding shall be paid by the corporation in advance of the final disposition of such Proceeding upon receipt of a written request therefor (together with documentation reasonably evidencing such expenses) and an undertaking by or on behalf of the person to repay such amounts if it shall ultimately be determined that the person is not entitled to be indemnified under this Article VIII or the DGCL. Such expenses (including attorneys’ fees) actually and reasonably incurred by former directors and officers or other employees and agents of the corporation or by persons serving at the request of the corporation as directors, officers, employees or agents of another corporation, partnership, joint venture, trust or other enterprise may be so paid upon such terms and conditions, if any, as the corporation deems appropriate. The right to advancement of expenses shall not apply to any Proceeding (or any part of any Proceeding) for which indemnity is excluded pursuant to these bylaws, but shall apply to any Proceeding (or any part of any Proceeding) referenced in Section 8.6(ii) or 8.6(iii) prior to a determination that the person is not entitled to be indemnified by the corporation.

8.6 LIMITATION ON INDEMNIFICATION

Subject to the requirements in Section 8.3 and the DGCL, the corporation shall not be obligated to indemnify any person pursuant to this Article VIII in connection with any Proceeding (or any part of any Proceeding):

(i) for which payment has actually been made to or on behalf of such person under any statute, insurance policy, indemnity provision, vote or otherwise, except with respect to any excess beyond the amount paid;

(ii) for an accounting or disgorgement of profits pursuant to Section 16(b) of the 1934 Act, or similar provisions of federal, state or local statutory law or common law, if such person is held liable therefor (including pursuant to any settlement arrangements);

(iii) for any reimbursement of the corporation by such person of any bonus or other incentive-based or equity-based compensation or of any profits realized by such person from the sale of securities of the corporation, as required in each case under the 1934 Act (including any such reimbursements that arise from an accounting restatement of the corporation pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “ Sarbanes-Oxley Act ”), or the payment to the corporation of profits arising from the purchase and sale by such person of securities in violation of Section 306 of the Sarbanes-Oxley Act), if such person is held liable therefor (including pursuant to any settlement arrangements);

(iv) initiated by such person, including any Proceeding (or any part of any Proceeding) initiated by such person against the corporation or its directors, officers, employees, agents or other indemnitees, unless (a) the board of directors authorized the Proceeding (or the relevant part of the Proceeding) prior to its initiation, (b) the corporation provides the indemnification, in its sole discretion, pursuant to the powers vested in the corporation under applicable law, (c) otherwise required to be made under Section 8.7 or (d) otherwise required by applicable law; or

(v) if prohibited by applicable law.

8.7 DETERMINATION; CLAIM

If a claim for indemnification or advancement of expenses under this Article VIII is not paid in full within 90 days after receipt by the corporation of the written request therefor, the claimant shall be entitled to an adjudication by a court of competent jurisdiction of his or her entitlement to such indemnification or advancement of expenses. The corporation shall indemnify such person against any and all expenses that are actually and reasonably incurred

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by such person in connection with any action for indemnification or advancement of expenses from the corporation under this Article VIII, to the extent such person is successful in such action, and to the extent not prohibited by law. In any such suit, the corporation shall, to the fullest extent not prohibited by law, have the burden of proving that the claimant is not entitled to the requested indemnification or advancement of expenses.

8.8 NON-EXCLUSIVITY OF RIGHTS

The indemnification and advancement of expenses provided by, or granted pursuant to, this Article VIII shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under the certificate of incorporation or any statute, bylaw, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in such person’s official capacity and as to action in another capacity while holding such office. The corporation is specifically authorized to enter into individual contracts with any or all of its directors, officers, employees or agents respecting indemnification and advancement of expenses, to the fullest extent not prohibited by the DGCL or other applicable law.

8.9 INSURANCE

The corporation may purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such person and incurred by such person in any such capacity, or arising out of such person’s status as such, whether or not the corporation would have the power to indemnify such person against such liability under the provisions of the DGCL.

8.10 SURVIVAL

The rights to indemnification and advancement of expenses conferred by this Article VIII shall continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

8.11 EFFECT OF REPEAL OR MODIFICATION

A right to indemnification or to advancement of expenses arising under a provision of the certificate of incorporation or a bylaw shall not be eliminated or impaired by an amendment to the certificate of incorporation or these bylaws after the occurrence of the act or omission that is the subject of the civil, criminal, administrative or investigative action, suit or proceeding for which indemnification or advancement of expenses is sought, unless the provision in effect at the time of such act or omission explicitly authorizes such elimination or impairment after such action or omission has occurred.

8.12 CERTAIN DEFINITIONS

For purposes of this Article VIII, references to the “ corporation ” shall include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Article VIII with respect to the resulting or surviving corporation as such person would have with respect to such constituent corporation if its separate existence had continued. For purposes of this Article VIII, references to “ other enterprises ” shall include employee benefit plans; references to “ fines ” shall include any excise taxes assessed on a person with respect to an employee benefit plan; and references to “ serving at the request of the corporation ” shall include any service as a director, officer, employee or agent of the corporation which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner such person reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “ not opposed to the best interests of the corporation ” as referred to in this Article VIII.

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ARTICLE IX - GENERAL MATTERS

9.1 EXECUTION OF CORPORATE CONTRACTS AND INSTRUMENTS

Except as otherwise provided by law, the certificate of incorporation or these bylaws, the board of directors may authorize any officer or officers, or agent or agents, to enter into any contract or execute any document or instrument in the name of and on behalf of the corporation; such authority may be general or confined to specific instances. Unless so authorized or ratified by the board of directors or within the agency power of an officer, no officer, agent or employee shall have any power or authority to bind the corporation by any contract or engagement or to pledge its credit or to render it liable for any purpose or for any amount.

9.2 FISCAL YEAR

The fiscal year of the corporation shall be fixed by resolution of the board of directors and may be changed by the board of directors.

9.3 SEAL

The corporation may adopt a corporate seal, which shall be adopted and which may be altered by the board of directors. The corporation may use the corporate seal by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced.

9.4 CONSTRUCTION; DEFINITIONS

Unless the context requires otherwise, the general provisions, rules of construction, and definitions in the DGCL shall govern the construction of these bylaws. Without limiting the generality of this provision, the singular number includes the plural, the plural number includes the singular, and the term “ person ” includes both a corporation and a natural person.

9.5 EXCLUSIVE FORUM

Unless the corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for (A) any derivative action or proceeding brought on behalf of the corporation, (B) any action asserting a claim of breach of a fiduciary duty owed by any director or officer or other employee of the corporation to the corporation or the corporation’s stockholders, (C) any action asserting a claim against the corporation or any director or officer or other employee of the corporation arising pursuant to any provision of the DGCL, the certificate of incorporation or the bylaws or (D) any action asserting a claim against the corporation or any director, officer, stockholder or employee of the corporation governed by the internal affairs doctrine shall be the Court of Chancery.

ARTICLE X - AMENDMENTS

These bylaws may be adopted, amended or repealed by the stockholders entitled to vote; provided , however, that the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the total voting power of outstanding voting securities, voting together as a single class, shall be required for the stockholders of the corporation to alter, amend or repeal, or adopt any provision of these bylaws. The board of directors shall also have the power to adopt, amend or repeal bylaws.

A bylaw amendment adopted by stockholders which specifies the votes that shall be necessary for the election of directors shall not be further amended or repealed by the board of directors.

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GP INVESTMENTS ACQUISITION CORP.

CERTIFICATE OF ADOPTION OF BYLAWS

The undersigned hereby certifies that he or she is the duly elected, qualified, and acting Secretary or Assistant Secretary of GP Investments Acquisition Corp., a Delaware corporation and that the foregoing bylaws were adopted on [•], 2017.

IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this [•] day of [•], 2017.

   
 
 
Secretary

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ANNEX F

FORM OF
   
CERTIFICATE OF DOMESTICATION
   
OF
   
GP INVESTMENTS ACQUISITION CORP.

Pursuant to Section 388 of the General
Corporation Law of the State of Delaware

GP Investments Acquisition Corp., a Cayman Islands exempted company limited by its shares, which intends to domesticate as a Delaware corporation pursuant to this Certificate of Domestication (upon such domestication to be renamed “GP Investments Acquisition Corp.” and referred to herein after such time as the “Corporation”), does hereby certify to the following facts relating to the domestication of the Corporation in the State of Delaware:

1. The Corporation was originally incorporated on the 28 th day of January, 2015 under the laws of the Cayman Islands.

2. The name of the Corporation immediately prior to the filing of this Certificate of Domestication is GP Investments Acquisition Corp.

3. The name of the Corporation as set forth in the Certificate of Incorporation is GP Investments Acquisition Corp.

4. The jurisdiction that constituted the seat, siege social or principal place of business or central administration of the Corporation immediately prior to the filing of this Certificate of Domestication is the Cayman Islands.

5. The domestication has been approved in the manner provided for by the document, instrument, agreement or other writing, as the case may be, governing the internal affairs of GP Investments Acquisition Corp. and the conduct of its business or by applicable non-Delaware law, as appropriate.

[ Signature Page Follows ]

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IN WITNESS WHEREOF, the Corporation has caused this Certificate of Domestication to be executed in its name this [•] of [•], 2017.

 
GP INVESTMENTS ACQUISITION
CORP. , a Cayman Islands company
 
 
 
 
By:
 
 
 
Name: Antonio Bonchristiano
 
 
Title: Chief Executive Officer

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ANNEX G

 
FOR THE EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS OF GP INVESTMENTS ACQUISITION CORP.
   
 
 
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS
   
 
   
   
P
R
O
X
Y
The undersigned hereby appoints Antonio Bonchristiano or Andrew Fleiss or the Chairman of the extraordinary general meeting, which we refer together as the “Proxies”, and each of them independently, with full power of substitution as proxies to vote the shares that the undersigned is entitled to vote, which we refer to as the “Shares”, at the extraordinary general meeting of shareholders of GP Investments Acquisition Corp., which we refer to as “GPIA” or “our”, to be held on [•], 2017 at [•] [a.m/p.m.], Eastern Time at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, located at 4 Times Square, New York, New York 10036, and at any adjournment thereof. Such Shares shall be voted as indicated with respect to the proposals listed on the reverse side hereof and, unless such authority is withheld on the reverse side hereof, the Proxies’ discretion on such other matters as may properly come before the general meeting or any adjournment thereof.
   
 
 
The undersigned acknowledges receipt of the accompanying joint proxy statement/prospectus and revokes all prior proxies for said meeting.
   
 
 
THE SHARES REPRESENTED BY THIS PROXY WHEN PROPERLY EXECUTED WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED SHAREHOLDER. IF YOU RETURN YOUR PROXY CARD WITHOUT AN INDICATION OF HOW YOU WISH TO VOTE, YOUR SHARES WILL NOT BE VOTED IN FAVOR OF ANY OF THE PROPOSALS. PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY.
   
 
 
(Continued and to be marked, dated and signed on reverse side)

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Please mark vote as indicated in this example

GP INVESTMENTS ACQUISITION CORP.—THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” PROPOSAL NOS., 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 AND 11.
 
Proposal No. 1—The Business Combination Proposal— To consider and vote upon a proposal to approve by ordinary resolution and adopt the Agreement and Plan of Merger, dated as of May 16, 2017 (as amended, the “merger agreement”), as amended by Amendment No. 1 thereto, dated June [•], 2017 (copies of which are attached to the accompanying joint proxy statement/prospectus as Annex A and Annex B, respectively, in each case, by and among GPIA, Let’s Go Acquisition Corp., GPIA’s wholly-owned subsidiary (“Let’s Go”), Rimini Street, Inc. (“Rimini Street”), and, solely in his capacity as the initial Holder Representative (as defined in the merger agreement) for the limited purposes set forth therein, the person specified as such in the merger agreement (the “Holder Representative”), which, among other things, provides for an integrated transaction consisting of the merger of Let’s Go with and into Rimini Street, with Rimini Street surviving the merger (the “first merger”), with the surviving corporation then merging with and into GP Investments Acquisition Corp. (a corporation incorporated in the State of Delaware, assuming the domestication proposal is approved and adopted, and the due filing with and acceptance by the Secretary of State of Delaware of the certificate of domestication in accordance with Section 388 of the General Corporation Law of the State of Delaware (the “DGCL”)), with GP Investments Acquisition Corp. surviving the merger (the “second merger” and, together with the first merger, the “mergers”) and renamed “Rimini Street, Inc.” immediately after consummation of the second merger, and to approve the transactions contemplated by the merger agreement (referred to, both upon the domestication, and subsequent to such change of name, as “RMNI”).
FOR
o
AGAINST
o
ABSTAIN
o
Proposal No. 2—The Domestication Proposal— To consider and vote upon a proposal to approve by special resolution, assuming the business combination proposal is approved and adopted, the change of GPIA’s jurisdiction of incorporation by deregistering as an exempted company in the Cayman Islands and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware.
FOR
o
AGAINST
o
ABSTAIN
o
Proposal No. 3—Organizational Documents Proposal A— To authorize (i) 600,000,000 additional shares of common stock of RMNI, which increases the total authorized shares of common stock to 1,000,000,000 shares of common stock and (ii) 80,000,000 additional shares of preferred stock of RMNI, which increases the total authorized shares of preferred stock to 100,000,000.
FOR
o
AGAINST
o
ABSTAIN
o
Proposal No. 4—Organizational Documents Proposal B— To authorize the board of directors of RMNI to issue any or all shares of RMNI’s preferred stock in one or more classes or series, with such terms and conditions as may be expressly determined by RMNI’s board of directors and as may be permitted by the DGCL.
FOR
o
AGAINST
o
ABSTAIN
o
Proposal No. 5—Organizational Documents Proposal C— To authorize that directors of RMNI may only be removed for cause.
FOR
o
AGAINST
o
ABSTAIN
o
Proposal No. 6—Organizational Documents Proposal D— To authorize that only the RMNI board of directors, chairperson of the board of directors, chief executive officer or president (in the absence of the chief executive officer) may call a meeting of stockholders.
FOR
o
AGAINST
o
ABSTAIN
o
Proposal No. 7—Organizational Documents Proposal E— To authorize removal of the ability of RMNI stockholders to take action by written consent in lieu of a meeting.
FOR
o
AGAINST
o
ABSTAIN
o
Proposal No. 8—Organizational Documents Proposal F— To authorize holders of sixty-six and two-thirds percent (66 2/3%) of the then outstanding RMNI capital stock as the minimum threshold required for a stockholder vote to amend RMNI’s certificate of incorporation (other than the articles thereof relating to the company’s name, address and registered office, purpose and matters related to the company’s common and preferred stock) and bylaw.
FOR
o
AGAINST
o
ABSTAIN
o
Proposal No. 9—Organizational Documents Proposal G— To authorize all other changes in connection with the replacement of our memorandum and articles of association with a new certificate of incorporation and bylaws of RMNI as part of the domestication, including (i) changing the post- business combination corporate name from “GP Investments Acquisition Corp.” to “Rimini Street, Inc.” (with such change expected to be made immediately following the consummation of the second merger) and making RMNI’s corporate existence perpetual, (ii) adopting Delaware as the exclusive forum for certain stockholder litigation, and (iii) removing certain provisions related to our status as a blank check company that will no longer apply upon consummation of the business combination, all of which GPIA’s board of directors believe are necessary to adequately address the needs of RMNI after the business combination.
FOR
o
AGAINST
o
ABSTAIN
o
Proposal No. 10—The Stock Issuance Proposal— To consider and vote upon a proposal to approve by ordinary resolution, assuming the organizational documents proposals are approved and adopted, for the purposes of complying with the applicable provisions of NASDAQ Listing Rule 5635, the issuance of RMNI common stock to (1) the existing stockholders of Rimini Street in connection with the business combination and (2) the Sponsor, GPIC, Ltd., a Bermuda company (the “Sponsor”), that the Sponsor may purchase in connection with the consummation of the first merger pursuant to the Sponsor’s equity commitment, to the extent such issuance would require a shareholder vote under NASDAQ Listing Rule 5635.
FOR
o
AGAINST
o
ABSTAIN
o
Proposal No. 11—The Adjournment Proposal— To consider and vote upon a proposal to approve by ordinary resolution the adjournment of the extraordinary general meeting to a later date or dates, if necessary, to permit further solicitation and vote of proxies if, based upon the tabulated vote at the time of the extraordinary general meeting, any of the condition precedent proposals would not be duly approved and adopted by our shareholders.
FOR
o
AGAINST
o
ABSTAIN
o
Shareholder Certification: I hereby certify that I am not acting in concert, or as a “group” (as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended), with any other shareholders with respect to the ordinary shares of GPIA owned by me in connection with the proposed business combination with Rimini Street, Inc.
SHAREHOLDER
CERTIFICATION
o
 

Dated:
 
, 2017
   
 
 
 
(Signature)
 
 
 
 
 
(Signature if held Jointly)
 
 
When shares are held by joint tenants, both should sign. When signing as attorney, executor, administrator, trustee or guardian, please give full title as such. If a corporation, please sign in full corporate name by president or other authorized officer. If a partnership please sign in partnership name by an authorized person.
 
 
A vote to abstain will not be treated as a vote on the relevant proposal. The shares represented by the proxy, when properly executed, will be voted in the manner directed herein by the undersigned shareholder(s).

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ANNEX H

RIMINI STREET, INC.

SPECIAL MEETING OF STOCKHOLDERS

3993 Howard Hughes Parkway, Suite 500
Las Vegas, NV 89169
[•], 2017, [•] [a/p.m.] Pacific Time

STOCKHOLDER PROXY CARD

The undersigned, hereby appoints [Seth A. Ravin] and [Daniel B. Winslow], as proxies and attorneys-in-fact of the undersigned, each with the power to act without the other and with the power of substitution, and hereby authorizes them to represent and vote, as designated below, all the shares of capital stock of Rimini Street, Inc. (the “ Rimini Street ”) held of record by the undersigned at the close of business on [•], 2017, with all powers which the undersigned would possess if present at the Special Meeting of Stockholders of the Company to be held on [•], 2017 or at any postponement or adjournment thereof (the “ Special Meeting ”).

Please indicate your proposal selection by firmly placing an “X” in the appropriate box.

Place “X” here if you plan to attend and vote your shares at the meeting [ ]

Proposal 1
The Rimini Street Business Combination Proposal —to consider and vote upon a proposal to approve and adopt the Agreement and Plan of Merger, dated as of May 16, 2017 (as amended, the “merger agreement”), as amended by Amendment No. 1 thereto, dated June 30, 2017, in each case, by and among GP Investments Acquisition Corp., a Cayman Islands exempted company, company number 295988 (“GPIA”), Let’s Go Acquisition Corp., GPIA’s wholly-owned subsidiary (“Let’s Go”), Rimini Street, and, solely in his capacity as the initial Holder Representative (as defined in the merger agreement), for the limited purposes set forth therein, the person specified as such in the merger agreement, which, among other things, provides for an integrated transaction consisting of the merger of Let’s Go with and into Rimini Street, with Rimini Street surviving the merger (the “first merger”), with the surviving corporation then merging with and into GP Investments Acquisition Corp. (after its domestication as a corporation incorporated in the State of Delaware), with GP Investments Acquisition Corp. surviving the merger (the “second merger”) and renamed “Rimini Street, Inc.” immediately after consummation of the second merger, and to approve the transactions contemplated by the merger agreement (we refer to this proposal as the “Rimini Street business combination proposal”).
For
Against
Abstain
o
o
o
Proposal 2
The Rimini Street Preferred Stock Conversion Proposal —to obtain the approval of the Rimini Street preferred stockholders to request the conversion of all outstanding shares of Rimini Street preferred stock into shares of Rimini Street common stock, effective as of immediately prior to the effectiveness of the first merger (we refer to this proposal as the “Rimini Street preferred stock conversion proposal”).
For
Against
Abstain
o
o
o

THIS PROXY, WHEN PROPERLY EXECUTED, WILL BE VOTED IN THE MANNER DIRECTED HEREIN BY THE UNDERSIGNED STOCKHOLDER. IF NO DIRECTION IS MADE, THIS PROXY WILL BE VOTED FOR THE RIMINI STREET BUSINESS COMBINATION PROPOSAL AND FOR THE PREFERRED STOCK CONVERSION PROPOSAL.

 
 
Number of Shares held as of [•], 2017:
Print Stockholder Name(s)
 
 
shares Class A Common Stock
 
 
 
shares Class B Common Stock
 
 
 
shares Series A Preferred Stock
 
 
 
shares Series B Preferred Stock
 
 
 
shares Series C Preferred Stock
 
 
 
 
Signature of Stockholder(s)
 
 
 

PLEASE MARK, SIGN, DATE AND RETURN THE PROXY CARD PROMPTLY USING THE ENCLOSED ENVELOPE.

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ANNEX I

RIGHTS OF DISSENTING STOCKHOLDERS

NRS  92A.300 Definitions . As used in NRS 92A.300 to 92A.500, inclusive, unless the context otherwise requires, the words and terms defined in NRS 92A.305 to 92A.335, inclusive, have the meanings ascribed to them in those sections.

NRS  92A.305 “Beneficial stockholder” defined. Beneficial stockholder ” means a person who is a beneficial owner of shares held in a voting trust or by a nominee as the stockholder of record.

NRS  92A.310 “Corporate action” defined. Corporate action ” means the action of a domestic corporation.

NRS  92A.315 “Dissenter” defined. Dissenter ” means a stockholder who is entitled to dissent from a domestic corporation’s action under NRS 92A.380 and who exercises that right when and in the manner required by NRS 92A.400 to 92A.480, inclusive.

NRS  92A.320 “Fair value” defined. Fair value, ” with respect to a dissenter’s shares, means the value of the shares determined:

1.   Immediately before the effectuation of the corporate action to which the dissenter objects, excluding any appreciation or depreciation in anticipation of the corporate action unless exclusion would be inequitable;

2.   Using customary and current valuation concepts and techniques generally employed for similar businesses in the context of the transaction requiring appraisal; and

3.   Without discounting for lack of marketability or minority status.

NRS  92A.325 “Stockholder” defined. Stockholder ” means a stockholder of record or a beneficial stockholder of a domestic corporation.

NRS  92A.330 “Stockholder of record” defined. Stockholder of record ” means the person in whose name shares are registered in the records of a domestic corporation or the beneficial owner of shares to the extent of the rights granted by a nominee’s certificate on file with the domestic corporation.

NRS  92A.335 “Subject corporation” defined. Subject corporation ” means the domestic corporation which is the issuer of the shares held by a dissenter before the corporate action creating the dissenter’s rights becomes effective or the surviving or acquiring entity of that issuer after the corporate action becomes effective.

NRS  92A.340 Computation of interest. Interest payable pursuant to NRS 92A.300 to 92A.500, inclusive, must be computed from the effective date of the action until the date of payment, at the rate of interest most recently established pursuant to NRS 99.040.

NRS  92A.350 Rights of dissenting partner of domestic limited partnership. A partnership agreement of a domestic limited partnership or, unless otherwise provided in the partnership agreement, an agreement of merger or exchange, may provide that contractual rights with respect to the partnership interest of a dissenting general or limited partner of a domestic limited partnership are available for any class or group of partnership interests in connection with any merger or exchange in which the domestic limited partnership is a constituent entity.

NRS  92A.360 Rights of dissenting member of domestic limited-liability company. The articles of organization or operating agreement of a domestic limited-liability company or, unless otherwise provided in the articles of organization or operating agreement, an agreement of merger or exchange, may provide that contractual rights with respect to the interest of a dissenting member are available in connection with any merger or exchange in which the domestic limited-liability company is a constituent entity.

NRS  92A.370 Rights of dissenting member of domestic nonprofit corporation.

1.   Except as otherwise provided in subsection 2, and unless otherwise provided in the articles or bylaws, any member of any constituent domestic nonprofit corporation who voted against the merger may, without prior notice, but within 30 days after the effective date of the merger, resign from membership and is thereby excused from all contractual obligations to the constituent or surviving corporations which did not occur before the member’s resignation and is thereby entitled to those rights, if any, which would have existed if there had been no merger and the membership had been terminated or the member had been expelled.

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2.   Unless otherwise provided in its articles of incorporation or bylaws, no member of a domestic nonprofit corporation, including, but not limited to, a cooperative corporation, which supplies services described in chapter 704 of NRS to its members only, and no person who is a member of a domestic nonprofit corporation as a condition of or by reason of the ownership of an interest in real property, may resign and dissent pursuant to subsection 1.

NRS  92A.380 Right of stockholder to dissent from certain corporate actions and to obtain payment for shares.

1.   Except as otherwise provided in NRS 92A.370 and 92A.390 and subject to the limitation in paragraph (f), any stockholder is entitled to dissent from, and obtain payment of the fair value of the stockholder’s shares in the event of any of the following corporate actions:

(a) Consummation of a plan of merger to which the domestic corporation is a constituent entity:
(1) If approval by the stockholders is required for the merger by NRS 92A.120 to 92A.160, inclusive, or the articles of incorporation, regardless of whether the stockholder is entitled to vote on the plan of merger; or
(2) If the domestic corporation is a subsidiary and is merged with its parent pursuant to NRS 92A.180.
(b) Consummation of a plan of conversion to which the domestic corporation is a constituent entity as the corporation whose subject owner’s interests will be converted.
(c) Consummation of a plan of exchange to which the domestic corporation is a constituent entity as the corporation whose subject owner’s interests will be acquired, if the stockholder’s shares are to be acquired in the plan of exchange.
(d) Any corporate action taken pursuant to a vote of the stockholders to the extent that the articles of incorporation, bylaws or a resolution of the board of directors provides that voting or nonvoting stockholders are entitled to dissent and obtain payment for their shares.
(e) Accordance of full voting rights to control shares, as defined in NRS 78.3784, only to the extent provided for pursuant to NRS 78.3793.
(f) Any corporate action not described in this subsection that will result in the stockholder receiving money or scrip instead of a fraction of a share except where the stockholder would not be entitled to receive such payment pursuant to NRS 78.205, 78.2055 or 78.207. A dissent pursuant to this paragraph applies only to the fraction of a share, and the stockholder is entitled only to obtain payment of the fair value of the fraction of a share.

2.   A stockholder who is entitled to dissent and obtain payment pursuant to NRS 92A.300 to 92A.500, inclusive, may not challenge the corporate action creating the entitlement unless the action is unlawful or fraudulent with respect to the stockholder or the domestic corporation.

3.   Subject to the limitations in this subsection, from and after the effective date of any corporate action described in subsection 1, no stockholder who has exercised the right to dissent pursuant to NRS 92A.300 to 92A.500, inclusive, is entitled to vote his or her shares for any purpose or to receive payment of dividends or any other distributions on shares. This subsection does not apply to dividends or other distributions payable to stockholders on a date before the effective date of any corporate action from which the stockholder has dissented. If a stockholder exercises the right to dissent with respect to a corporate action described in paragraph (f) of subsection 1, the restrictions of this subsection apply only to the shares to be converted into a fraction of a share and the dividends and distributions to those shares.

NRS  92A.390 Limitations on right of dissent: Stockholders of certain classes or series; action of stockholders not required for plan of merger.

1.   There is no right of dissent with respect to a plan of merger, conversion or exchange in favor of stockholders of any class or series which is:

(a) A covered security under section 18(b)(1)(A) or (B) of the Securities Act of 1933, 15 U.S.C. § 77r(b)(1)(A) or (B), as amended;

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(b) Traded in an organized market and has at least 2,000 stockholders and a market value of at least $20,000,000, exclusive of the value of such shares held by the corporation’s subsidiaries, senior executives, directors and beneficial stockholders owning more than 10 percent of such shares; or
(c) Issued by an open end management investment company registered with the Securities and Exchange Commission under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended, and which may be redeemed at the option of the holder at net asset value, unless the articles of incorporation of the corporation issuing the class or series or the resolution of the board of directors approving the plan of merger, conversion or exchange expressly provide otherwise.

2.   The applicability of subsection 1 must be determined as of:

(a) The record date fixed to determine the stockholders entitled to receive notice of and to vote at the meeting of stockholders to act upon the corporate action requiring dissenter’s rights; or
(b) The day before the effective date of such corporate action if there is no meeting of stockholders.

3.   Subsection 1 is not applicable and dissenter’s rights are available pursuant to NRS 92A.380 for the holders of any class or series of shares who are required by the terms of the corporate action requiring dissenter’s rights to accept for such shares anything other than cash or shares of any class or any series of shares of any corporation, or any other proprietary interest of any other entity, that satisfies the standards set forth in subsection 1 at the time the corporate action becomes effective.

4.   There is no right of dissent for any holders of stock of the surviving domestic corporation if the plan of merger does not require action of the stockholders of the surviving domestic corporation under NRS 92A.130.

5.   There is no right of dissent for any holders of stock of the parent domestic corporation if the plan of merger does not require action of the stockholders of the parent domestic corporation under NRS 92A.180.

NRS  92A.400 Limitations on right of dissent: Assertion as to portions only to shares registered to stockholder; assertion by beneficial stockholder.

1.   A stockholder of record may assert dissenter’s rights as to fewer than all of the shares registered in his or her name only if the stockholder of record dissents with respect to all shares of the class or series beneficially owned by any one person and notifies the subject corporation in writing of the name and address of each person on whose behalf the stockholder of record asserts dissenter’s rights. The rights of a partial dissenter under this subsection are determined as if the shares as to which the partial dissenter dissents and his or her other shares were registered in the names of different stockholders.

2.   A beneficial stockholder may assert dissenter’s rights as to shares held on his or her behalf only if the beneficial stockholder:

(a) Submits to the subject corporation the written consent of the stockholder of record to the dissent not later than the time the beneficial stockholder asserts dissenter’s rights; and
(b) Does so with respect to all shares of which he or she is the beneficial stockholder or over which he or she has power to direct the vote.

NRS  92A.410 Notification of stockholders regarding right of dissent.

1.   If a proposed corporate action creating dissenter’s rights is submitted to a vote at a stockholders’ meeting, the notice of the meeting must state that stockholders are, are not or may be entitled to assert dissenter’s rights under NRS 92A.300 to 92A.500, inclusive. If the domestic corporation concludes that dissenter’s rights are or may be available, a copy of NRS 92A.300 to 92A.500, inclusive, must accompany the meeting notice sent to those record stockholders entitled to exercise dissenter’s rights.

2.   If the corporate action creating dissenter’s rights is taken by written consent of the stockholders or without a vote of the stockholders, the domestic corporation shall notify in writing all stockholders entitled to assert dissenter’s rights that the action was taken and send them the dissenter’s notice described in NRS 92A.430.

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NRS  92A.420 Prerequisites to demand for payment for shares.

1.   If a proposed corporate action creating dissenter’s rights is submitted to a vote at a stockholders’ meeting, a stockholder who wishes to assert dissenter’s rights with respect to any class or series of shares:

(a) Must deliver to the subject corporation, before the vote is taken, written notice of the stockholder’s intent to demand payment for his or her shares if the proposed action is effectuated; and
(b) Must not vote, or cause or permit to be voted, any of his or her shares of such class or series in favor of the proposed action.

2.   If a proposed corporate action creating dissenter’s rights is taken by written consent of the stockholders, a stockholder who wishes to assert dissenter’s rights with respect to any class or series of shares must not consent to or approve the proposed corporate action with respect to such class or series.

3.   A stockholder who does not satisfy the requirements of subsection 1 or 2 and NRS 92A.400 is not entitled to payment for his or her shares under this chapter.

NRS  92A.430 Dissenter’s notice: Delivery to stockholders entitled to assert rights; contents.

1.   The subject corporation shall deliver a written dissenter’s notice to all stockholders of record entitled to assert dissenter’s rights in whole or in part, and any beneficial stockholder who has previously asserted dissenter’s rights pursuant to NRS 92A.400.

2.   The dissenter’s notice must be sent no later than 10 days after the effective date of the corporate action specified in NRS 92A.380, and must:

(a) State where the demand for payment must be sent and where and when certificates, if any, for shares must be deposited;
(b) Inform the holders of shares not represented by certificates to what extent the transfer of the shares will be restricted after the demand for payment is received;
(c) Supply a form for demanding payment that includes the date of the first announcement to the news media or to the stockholders of the terms of the proposed action and requires that the person asserting dissenter’s rights certify whether or not the person acquired beneficial ownership of the shares before that date;
(d) Set a date by which the subject corporation must receive the demand for payment, which may not be less than 30 nor more than 60 days after the date the notice is delivered and state that the stockholder shall be deemed to have waived the right to demand payment with respect to the shares unless the form is received by the subject corporation by such specified date; and
(e) Be accompanied by a copy of NRS 92A.300 to 92A.500, inclusive.

NRS  92A.440 Demand for payment and deposit of certificates; loss of rights of stockholder; withdrawal from appraisal process.

1.   A stockholder who receives a dissenter’s notice pursuant to NRS 92A.430 and who wishes to exercise dissenter’s rights must:

(a) Demand payment;
(b) Certify whether the stockholder or the beneficial owner on whose behalf he or she is dissenting, as the case may be, acquired beneficial ownership of the shares before the date required to be set forth in the dissenter’s notice for this certification; and
(c) Deposit the stockholder’s certificates, if any, in accordance with the terms of the notice.

2.   If a stockholder fails to make the certification required by paragraph (b) of subsection 1, the subject corporation may elect to treat the stockholder’s shares as after-acquired shares under NRS 92A.470.

3.   Once a stockholder deposits that stockholder’s certificates or, in the case of uncertified shares makes demand for payment, that stockholder loses all rights as a stockholder, unless the stockholder withdraws pursuant to subsection 4.

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4.   A stockholder who has complied with subsection 1 may nevertheless decline to exercise dissenter’s rights and withdraw from the appraisal process by so notifying the subject corporation in writing by the date set forth in the dissenter’s notice pursuant to NRS 92A.430. A stockholder who fails to so withdraw from the appraisal process may not thereafter withdraw without the subject corporation’s written consent.

5.   The stockholder who does not demand payment or deposit his or her certificates where required, each by the date set forth in the dissenter’s notice, is not entitled to payment for his or her shares under this chapter.

NRS  92A.450 Uncertificated shares: Authority to restrict transfer after demand for payment. The subject corporation may restrict the transfer of shares not represented by a certificate from the date the demand for their payment is received.

NRS  92A.460 Payment for shares: General requirements.

1.   Except as otherwise provided in NRS 92A.470, within 30 days after receipt of a demand for payment pursuant to NRS 92A.440, the subject corporation shall pay in cash to each dissenter who complied with NRS 92A.440 the amount the subject corporation estimates to be the fair value of the dissenter’s shares, plus accrued interest. The obligation of the subject corporation under this subsection may be enforced by the district court:

(a) Of the county where the subject corporation’s principal office is located;
(b) If the subject corporation’s principal office is not located in this State, in the county in which the corporation’s registered office is located; or
(c) At the election of any dissenter residing or having its principal or registered office in this State, of the county where the dissenter resides or has its principal or registered office.

The court shall dispose of the complaint promptly.

2.   The payment must be accompanied by:

(a) The subject corporation’s balance sheet as of the end of a fiscal year ending not more than 16 months before the date of payment, a statement of income for that year, a statement of changes in the stockholders’ equity for that year or, where such financial statements are not reasonably available, then such reasonably equivalent financial information and the latest available quarterly financial statements, if any;
(b) A statement of the subject corporation’s estimate of the fair value of the shares; and
(c) A statement of the dissenter’s rights to demand payment under NRS 92A.480 and that if any such stockholder does not do so within the period specified, such stockholder shall be deemed to have accepted such payment in full satisfaction of the corporation’s obligations under this chapter.

NRS 92A.470  Withholding payment for shares acquired on or after date of dissenter’s notice: General requirements.

1.   A subject corporation may elect to withhold payment from a dissenter unless the dissenter was the beneficial owner of the shares before the date set forth in the dissenter’s notice as the first date of any announcement to the news media or to the stockholders of the terms of the proposed action.

2.   To the extent the subject corporation elects to withhold payment, within 30 days after receipt of a demand for payment pursuant to NRS 92A.440, the subject corporation shall notify the dissenters described in subsection 1:

(a) Of the information required by paragraph (a) of subsection 2 of NRS 92A.460;
(b) Of the subject corporation’s estimate of fair value pursuant to paragraph (b) of subsection 2 of NRS 92A.460;
(c) That they may accept the subject corporation’s estimate of fair value, plus interest, in full satisfaction of their demands or demand appraisal under NRS 92A.480;
(d) That those stockholders who wish to accept such an offer must so notify the subject corporation of their acceptance of the offer within 30 days after receipt of such offer; and
(e) That those stockholders who do not satisfy the requirements for demanding appraisal under NRS 92A.480 shall be deemed to have accepted the subject corporation’s offer.

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3.   Within 10 days after receiving the stockholder’s acceptance pursuant to subsection 2, the subject corporation shall pay in cash the amount offered under paragraph (b) of subsection 2 to each stockholder who agreed to accept the subject corporation’s offer in full satisfaction of the stockholder’s demand.

4.   Within 40 days after sending the notice described in subsection 2, the subject corporation shall pay in cash the amount offered under paragraph (b) of subsection 2 to each stockholder described in paragraph (e) of subsection 2.

NRS  92A.480 Dissenter’s estimate of fair value: Notification of subject corporation; demand for payment of estimate.

1.   A dissenter paid pursuant to NRS 92A.460 who is dissatisfied with the amount of the payment may notify the subject corporation in writing of the dissenter’s own estimate of the fair value of his or her shares and the amount of interest due, and demand payment of such estimate, less any payment pursuant to NRS 92A.460. A dissenter offered payment pursuant to NRS 92A.470 who is dissatisfied with the offer may reject the offer pursuant to NRS 92A.470 and demand payment of the fair value of his or her shares and interest due.

2.   A dissenter waives the right to demand payment pursuant to this section unless the dissenter notifies the subject corporation of his or her demand to be paid the dissenter’s stated estimate of fair value plus interest under subsection 1 in writing within 30 days after receiving the subject corporation’s payment or offer of payment under NRS 92A.460 or 92A.470 and is entitled only to the payment made or offered.

NRS  92A.490 Legal proceeding to determine fair value: Duties of subject corporation; powers of court; rights of dissenter.

1.   If a demand for payment pursuant to NRS 92A.480 remains unsettled, the subject corporation shall commence a proceeding within 60 days after receiving the demand and petition the court to determine the fair value of the shares and accrued interest. If the subject corporation does not commence the proceeding within the 60-day period, it shall pay each dissenter whose demand remains unsettled the amount demanded by each dissenter pursuant to NRS 92A.480 plus interest.

2.   A subject corporation shall commence the proceeding in the district court of the county where its principal office is located in this State. If the principal office of the subject corporation is not located in this State, the right to dissent arose from a merger, conversion or exchange and the principal office of the surviving entity, resulting entity or the entity whose shares were acquired, whichever is applicable, is located in this State, it shall commence the proceeding in the county where the principal office of the surviving entity, resulting entity or the entity whose shares were acquired is located. In all other cases, if the principal office of the subject corporation is not located in this State, the subject corporation shall commence the proceeding in the district court in the county in which the corporation’s registered office is located.

3.   The subject corporation shall make all dissenters, whether or not residents of Nevada, whose demands remain unsettled, parties to the proceeding as in an action against their shares. All parties must be served with a copy of the petition. Nonresidents may be served by registered or certified mail or by publication as provided by law.

4.   The jurisdiction of the court in which the proceeding is commenced under subsection 2 is plenary and exclusive. The court may appoint one or more persons as appraisers to receive evidence and recommend a decision on the question of fair value. The appraisers have the powers described in the order appointing them, or any amendment thereto. The dissenters are entitled to the same discovery rights as parties in other civil proceedings.

5.   Each dissenter who is made a party to the proceeding is entitled to a judgment:

(a) For the amount, if any, by which the court finds the fair value of the dissenter’s shares, plus interest, exceeds the amount paid by the subject corporation; or
(b) For the fair value, plus accrued interest, of the dissenter’s after-acquired shares for which the subject corporation elected to withhold payment pursuant to NRS 92A.470.

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NRS  92A.500 Assessment of costs and fees in certain legal proceedings.

1.   The court in a proceeding to determine fair value shall determine all of the costs of the proceeding, including the reasonable compensation and expenses of any appraisers appointed by the court. The court shall assess the costs against the subject corporation, except that the court may assess costs against all or some of the dissenters, in amounts the court finds equitable, to the extent the court finds the dissenters acted arbitrarily, vexatiously or not in good faith in demanding payment.

2.   The court may also assess the fees and expenses of the counsel and experts for the respective parties, in amounts the court finds equitable:

(a) Against the subject corporation and in favor of all dissenters if the court finds the subject corporation did not substantially comply with the requirements of NRS 92A.300 to 92A.500, inclusive; or
(b) Against either the subject corporation or a dissenter in favor of any other party, if the court finds that the party against whom the fees and expenses are assessed acted arbitrarily, vexatiously or not in good faith with respect to the rights provided by NRS 92A.300 to 92A.500, inclusive.

3.   If the court finds that the services of counsel for any dissenter were of substantial benefit to other dissenters similarly situated, and that the fees for those services should not be assessed against the subject corporation, the court may award to those counsel reasonable fees to be paid out of the amounts awarded to the dissenters who were benefited.

4.   In a proceeding commenced pursuant to NRS 92A.460, the court may assess the costs against the subject corporation, except that the court may assess costs against all or some of the dissenters who are parties to the proceeding, in amounts the court finds equitable, to the extent the court finds that such parties did not act in good faith in instituting the proceeding.

5.   To the extent the subject corporation fails to make a required payment pursuant to NRS 92A.460, 92A.470 or 92A.480, the dissenter may bring a cause of action directly for the amount owed and, to the extent the dissenter prevails, is entitled to recover all expenses of the suit.

6.   This section does not preclude any party in a proceeding commenced pursuant to NRS 92A.460 or 92A.490 from applying the provisions of N.R.C.P. 68.

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ANNEX J

FORM OF NOTICE OF STOCKHOLDER’S INTENT TO DEMAND PAYMENT

The undersigned is the owner of the following number of shares of capital stock of Rimini Street, Inc. and hereby demands payment for the same:

Stock:              :

The undersigned represents and warrants that the foregoing shares are all of the shares of capital stock of Rimini Street, Inc. beneficially owned by the undersigned, except that if the undersigned is a nominee holder, this Notice of Stockholder’s Intent to Demand Payment by a dissenting holder of Rimini Street                                      is accompanied by a certification by each beneficial stockholder that both the beneficial owner and the record holders of all shares of                                      owned beneficially by the beneficial owner have asserted, or will timely assert, dissenter’s rights as to all the shares beneficially owned by the beneficial owner.

Attached please find the original stock certificate representing              shares of                          .

   

   

   

Dissenters’ rights payments with respect to the shares identified above should be sent to the following address:

 
 
 
 
 
 
 
 
 
 
 
 

Signature:          

Name of Record Holder:          

Name of Beneficial Holder:          

Date:          

NOTE: THIS DEMAND MUST BE RECEIVED BY [DATE] AT                                ], ON OR BEFORE        P.M., EASTERN TIME. FAILURE TO DELIVER THE DEMAND BY THE DATE INDICATED WILL TERMINATE ALL RIGHTS THAT THE STOCKHOLDER HAS TO DISSENT. THIS DEMAND MUST BE ACCOMPANIED BY THE CERTIFICATES WITH RESPECT TO WHICH DISSENT AND PAYMENT DEMAND IS BEING MADE.

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ANNEX K

FORM OF

CHARTER FOR THE
AUDIT COMMITTEE OF THE BOARD OF DIRECTORS
OF RIMINI STREET, INC.

Amended and Approved as of __________, 2017

PURPOSE

The purpose of the Audit Committee (the “ Audit Committee ”) of the Board of Directors (the “ Board ”) of Rimini Street, Inc. (the “ Company ”) is to assist the Board in fulfilling its responsibilities for generally overseeing:

The Company’s accounting and financial reporting processes and internal controls as well as the audit and integrity of the Company’s financial statements.
The qualifications and independence of the Company’s independent auditor.
The performance of the Company’s independent auditor and internal audit function.
The design and implementation of the Company’s internal audit function.
The Company’s compliance with applicable law (including U.S. federal securities laws and other legal and regulatory requirements).
Risk assessment and risk management pertaining to the financial, accounting and tax matters of the Company.

The Audit Committee is also responsible for performing such other duties and responsibilities as are enumerated in or consistent with this charter.

COMPOSITION

1. Membership and Appointment. The Audit Committee shall consist of at least three (3) members of the Board. Members of the Audit Committee shall be appointed by the Board upon the recommendation of the Nominating and Corporate Governance Committee of the Board and may be removed by the Board in its discretion.
2. Qualifications. Members of the Audit Committee must meet the following criteria (as well as any criteria required by the Securities and Exchange Commission (the “ SEC ”):
a. Each member of the Audit Committee must be an independent director in accordance with (i) the audit committee requirements of the listing rules of the NASDAQ Stock Market (the “ Nasdaq Rules ”) and (ii) Rule 10A-3 of the Securities Exchange Act of 1934, as amended.
b. Each member of the Audit Committee must be able to read and understand fundamental financial statements, including the Company’s balance sheet, income statement and cash flow statement.
c. At least one member of the Audit Committee must have past employment experience in finance or accounting, requisite professional certification in accounting or other comparable experience or background that leads to financial sophistication.
d. At least one member of the Audit Committee must be an “audit committee financial expert” as defined in Item 407(d)(5)(ii) of Regulation S-K. A person who satisfies this definition of audit committee financial expert will also be presumed to have the requisite financial sophistication.
e. No member of the Audit Committee may have participated in the preparation of the financial statements of the Company or any of the Company’s current subsidiaries at any time during the past three years.

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In addition, each member of the Audit Committee shall have such other qualifications as are established by the Board from time to time, or as required by the Nasdaq Rules, applicable law or the rules and regulations of the SEC.

3. Chairperson. The Board may designate a chairperson of the Audit Committee. In the absence of that designation, the Audit Committee may designate a chairperson by majority vote of the Audit Committee members.

RESPONSIBILITIES

The following are the principal recurring responsibilities of the Audit Committee.The Audit Committee may perform such other functions as are consistent with its purpose and applicable law, rules and regulations and as the Board or the Audit Committee deem appropriate.In carrying out its responsibilities, the Audit Committee believes its policies and procedures should remain flexible, in order to best react to changing conditions and circumstances.

1. Select and Hire the Independent Auditor and Any Other Registered Public Accounting Firm. The Audit Committee shall be responsible for appointing, compensating, retaining and, where appropriate, replacing or terminating the independent auditor. The independent auditor will report directly to the Audit Committee.The Audit Committee shall have sole authority to approve the hiring and discharging of the independent auditor, all audit engagement fees and terms and all permissible non-audit engagements with the independent auditor. The Audit Committee shall also appoint, retain, compensate, oversee and, where appropriate, replace or terminate any other registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company.
2. Supervise and Evaluate the Independent Auditor and Any Other Registered Public Accounting Firm. The Audit Committee shall:
a. Oversee and evaluate the work of (i) the independent auditor and (ii) any other registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company, which evaluation shall include a review and evaluation of the lead partner of the independent auditor. The Audit Committee shall review, in consultation with the independent auditor, the annual audit plan and scope of audit activities and monitor such plan’s progress.
b. Review and resolve any disagreements that may arise between management and the independent auditor regarding internal controls or financial reporting.
c. At least annually, obtain and review a report by the independent auditor that describes (i) the independent auditor’s internal quality control procedures and (ii) any material issues raised by the most recent internal quality-control review, peer review or Public Company Accounting Oversight Board review of the independent auditor or by any other inquiry or investigation by governmental or professional authorities within the preceding five years (or such other period as may be requested by the Audit Committee), regarding any independent audit performed by the independent auditor, and any steps taken to deal with any such issues.
3. Evaluate the Independence of the Independent Auditor. The Audit Committee shall:
a. Review and discuss with the independent auditor the written independence disclosure required by the applicable requirements of the Public Company Accounting Oversight Board.
b. Review and discuss with the independent auditor on a periodic basis any other relationships or services (including permissible non-audit services) that may affect its objectivity and independence.
c. Oversee the rotation of the independent auditor’s lead audit and concurring partners and the rotation of other audit partners, with applicable time-out periods, in accordance with applicable law.
d. Take, or recommend to the Board that it take, appropriate action to oversee the independence of the Company’s independent auditor.

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4. Approve Audit and Non-Audit Services and Fees.
a. The Audit Committee shall (i) review and approve, in advance, the scope and plans for the audits and the audit fees and (ii) approve in advance (or, where permitted under the rules and regulations of the SEC, subsequently) all non-audit services to be performed by the independent auditor or any other registered public accounting firm that are not otherwise prohibited by law and any associated fees.
b. The Audit Committee chairperson may pre-approve audit and permissible non-audit services and any associated fees, as long as this pre-approval is presented to the full Audit Committee at scheduled meetings. The Audit Committee may, in accordance with applicable law, establish pre-approval policies and procedures for the engagement of independent accountants to render services to the Company.
c. The Audit Committee shall review at least annually the ratio between the total amount of fees earned by the independent auditor for audit, audit-related, tax and all other services.
5. Review Financial Statements. The Audit Committee shall review and discuss the following with management, the independent auditor and the Company’s internal auditor, as applicable:
a. The scope and timing of the annual audit of the Company’s financial statements.
b. The Company’s annual audited and quarterly financial statements and annual and quarterly reports on Form 10-K and 10-Q, including the disclosures in “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
c. The results of the independent audit and the quarterly reviews, and the independent auditor’s opinion on the annual financial statements.
d. The reports and certifications regarding internal control over financial reporting and disclosure controls and procedures.
e. Major issues regarding accounting principles and financial statement presentations, including any significant changes in the Company’s selection or application of accounting principles.
f. Analyses prepared by management or the independent auditor setting forth significant financial reporting issues and judgments made in connection with the preparation of the financial statements.
g. The effect of regulatory and accounting initiatives on the Company’s financial statements.
h. Any significant changes required or taken in the audit plan as a result of any material control deficiency.
i. Any problems or difficulties the independent auditor encountered in the course of its audit work, including any restrictions on the scope of the auditor’s activities or on access to requested information, and management’s response.
j. Any significant disagreements between management and the independent auditor.
6. Audited Financial Information; Audit Committee Report. The Audit Committee shall recommend that the audited financial statements be included in the Company’s annual reports on Form 10-K and shall prepare the report of the Audit Committee that SEC rules require to be included in the Company’s annual proxy statement.
7. Reports and Communications from the Independent Auditor. The Audit Committee shall review
and discuss quarterly reports from the independent auditor concerning the following:
a. All critical accounting policies and practices to be used by the Company.
b. All alternative treatments of financial information within generally accepted accounting principles (“ GAAP ”) that the auditor has discussed with management, ramifications of the use of these alternative disclosures and treatments, and the treatment preferred by the independent auditor if different from that used by management.
c. Other material written communications between the independent auditor and management, such as any management letter or schedule of unadjusted differences.

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d. Other matters required to be communicated to the Audit Committee under generally accepted auditing standards and other legal or regulatory requirements, including any matters required to be communicated under PCAOB Auditing Standards No. 16, Communications with Audit Committees .
8. Earnings, Press Releases and Earnings Guidance. The Audit Committee shall review and discuss earnings press releases and related disclosures (with particular attention to any use of non-GAAP financial measures), as well as financial information and earnings guidance provided to the public, analysts and ratings agencies.
9. Internal Controls . The Audit Committee shall review and discuss with management and the independent auditor the adequacy and effectiveness of the Company’s internal controls, including any changes, significant deficiencies or material weaknesses in those controls reported by the management or independent auditor, any special audit steps adopted in light of significant control deficiencies, and any fraud, whether or not material, that involves management or other Company employees who have a significant role in the Company’s internal controls.
10. Disclosure Controls and Procedures. The Audit Committee shall review and discuss the
adequacy and effectiveness of the Company’s disclosure controls and procedures.
11. Internal Audit Function. The Audit Committee shall:
a. Review and participate in the selection of the Company’s internal auditor and periodically review the activities, organizational structure and qualifications of the internal audit function.
b. Review and approve the annual internal audit project plan and any proposed changes and review periodic reports summarizing results of the internal audit projects including any significant findings.
c. Periodically review with the Company’s internal auditor any issues encountered in the course of the internal audit function’s work.
12. Legal and Regulatory Compliance. The Audit Committee shall review and discuss with management and the independent auditor (i) the overall adequacy and effectiveness of the Company’s legal, regulatory and ethical compliance programs, including the Company’s Code of Business Conduct and Ethics, compliance with the Foreign Corrupt Practices Act and foreign anticorruption laws and compliance with export control regulations and (ii) reports regarding compliance with applicable laws, regulations and internal compliance programs, in each case to the extent pertaining to financial, accounting and/or tax matters. The Audit Committee shall discuss with management and the independent auditor any correspondence with regulators or governmental agencies and any published reports that raise material issues regarding the Company’s financial statements or accounting policies. The Audit Committee shall discuss with the Company’s General Counsel legal matters that may have a material impact on the financial statements or the Company’s compliance procedures that pertain to financial, accounting or tax matters of the Company.
13. Complaints . The Audit Committee shall establish and oversee procedures established for the receipt, retention and treatment of complaints on accounting, internal accounting controls or audit matters, as well as for confidential and anonymous submissions by the Company’s employees concerning questionable accounting or auditing matters.
14. Risks . The Audit Committee shall review and discuss with management and the independent auditor the Company’s major financial risk exposures and the steps management has taken to monitor and control those exposures, including the Company’s guidelines and policies with respect to risk assessment and risk management pertaining to financial, accounting, investment and tax matters.
15. Related Party Transactions . The Audit Committee shall (i) review and oversee all transactions between the Company and a related person for which review or oversight is required by applicable law or that are required to be disclosed in the Company’s financial statements or SEC filings and (ii) develop policies and procedures for the Audit Committee’s review, approval and/or ratification of such transactions.
16. Liquidity . The Audit Committee shall review matters relating to the Company’s ongoing liquidity, including its financing arrangements and other internal and external sources of liquidity and capital resources.

The function of the Audit Committee is primarily one of oversight. The Company’s management is responsible for preparing the Company’s financial statements, and the independent auditor is responsible for auditing and reviewing those financial statements. The Audit Committee is responsible for assisting the Board in overseeing the conduct of

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these activities by management and the independent auditor. The Audit Committee is not responsible for providing any expert or special assurance as to the financial statements or the independent auditor’s work. It is recognized that the members of the Audit Committee are not full-time employees of the Company, that it is not the duty or responsibility of the Audit Committee or its members to conduct “field work” or other types of auditing or accounting reviews or procedures or to set auditor independence standards, and that each member of the Audit Committee shall be entitled to rely on (i) the integrity of those persons and organizations within and outside the Company from which the Audit Committee receives information and (ii) the accuracy of the financial and other information provided to the Audit Committee, in either instance absent actual knowledge to the contrary.

MEETINGS AND PROCEDURES

1. Meetings.
a. The Audit Committee will meet from time to time as necessary to carry out its responsibilities at such times and places as the Audit Committee determines. The chairperson of the Audit Committee shall preside at each meeting. If a chairperson is not designated or present, an acting chair may be designated by the Audit Committee members present. The Audit Committee may act by written consent (which may include electronic consent), which shall constitute a valid action of the Audit Committee if it has been approved by each Audit Committee member and shows the date of approval. Any written consent will be effective on the date of the last signature and will be filed with the minutes of the meetings of the Board.
b. The Audit Committee shall cause to be kept written minutes of its proceedings, which minutes will be filed with the minutes of the meeting of the Board.
c. The Audit Committee shall meet periodically with members of management as deemed appropriate and the independent auditor in separate executive sessions.
d. The Audit Committee may invite to its meetings any director, officer or employee of the Company and such other persons as it deems appropriate in order to carry out its responsibilities. The Audit Committee may also exclude from its meetings any persons it deems appropriate in order to carry out its responsibilities, including non-management directors who are not members of the Audit Committee.
2. Reporting to the Board of Directors. The Audit Committee shall report regularly to the Board with respect to the Audit Committee’s activities, including any significant issues that arise with respect to the quality or integrity of the Company’s financial statements, the Company’s compliance with legal or regulatory requirements or the performance and independence of the Company’s independent auditor, as applicable.
3. Authority to Retain Advisors. The Audit Committee shall have the authority to engage independent counsel or other advisors as it deems necessary or appropriate to carry out its duties. The Company will provide appropriate funding, as determined by the Audit Committee, to pay the independent auditor, any outside advisors hired by the Audit Committee and any administrative expenses of the Audit Committee that are necessary or appropriate in carrying out its activities.
4. Subcommittees. The Audit Committee may form subcommittees for any purpose that the Audit Committee deems appropriate and may delegate to such subcommittees such power and authority as the Audit Committee deems appropriate.If designated, each such subcommittee will establish its own schedule and maintain written minutes of its meetings, which minutes will be filed with the minutes of the meetings of the Board.The Audit Committee shall not delegate to a subcommittee any power or authority required by law, regulation or listing standard to be exercised by the Audit Committee as a whole.
5. Committee Charter Review. The Audit Committee shall review and reassess the adequacy of this charter annually and shall submit any recommended changes to this charter to the Board for approval.
6. Performance Review . The members of the Audit Committee shall review and assess the performance of the Audit Committee on an annual basis.
7. Authority to Investigate. In the course of its duties, the Audit Committee shall have authority, at
the Company’s expense, to investigate any matter brought to its attention.

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8. Attorneys’ Reports. The Audit Committee shall receive and, if appropriate, respond to attorneys’
reports of evidence of material violations of securities laws and breaches of fiduciary duty and similar violations of foreign, U.S., state or local law. The Audit Committee shall establish procedures for the confidential receipt, retention and consideration of any attorney report.
9. Access. The Audit Committee shall be given full access to the chairperson of the Board,
management and the independent auditor, as well as the Company’s books, records, facilities and other personnel.
10. Compensation. Members of the Audit Committee shall receive such compensation, including equity and/or fees, if any, for their service as Audit Committee members as may be determined by the Board or, to the extent the Board has delegated such authority, by the Compensation Committee of the Board.

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ANNEX L

FORM OF

CHARTER OF THE COMPENSATION COMMITTEE
OF THE BOARD OF DIRECTORS OF
RIMINI STREET, INC.

Amended and Approved as of __________, 2017

PURPOSE

The purpose of the Compensation Committee (the “ Compensation Committee ”) of the Board of Directors (the “ Board ”) of Rimini Street, Inc. (the “ Company ”) shall be to:

Provide oversight of the compensation of the Company’s Chief Executive Officer (“ CEO ”) and the Executive Officers (as defined below).
Provide oversight of the Company’s compensation policies and plans and benefits programs, and overall compensation philosophy.
Assist the Board in administering the Company’s equity compensation plans for its employees and other service providers, including the granting of equity awards pursuant to such plans or outside of such plans.
Prepare the report of the Compensation Committee required by the rules and regulations of the Securities and Exchange Commission (the “ SEC ”).
Provide oversight of the compensation of the members of the Board.

The Compensation Committee will seek to ensure that the Company structures its compensation plans, policies and programs in a manner (i) designed to attract, motivate and retain talented personnel responsible for the success of the Company, (ii) determined within a competitive framework, and (iii) based on the achievement of the Company’s overall financial results, individual contributions and a compensation philosophy of “pay for performance.”

In furtherance of these purposes, the Compensation Committee will undertake those specific duties and responsibilities listed below and such other duties as the Board may from time to time prescribe.

MEMBERSHIP

The Compensation Committee shall consist of at least three (3) members of the Board. Members of the Compensation Committee shall be appointed by the Board upon the recommendation of the Nominating and Corporate Governance Committee of the Board and may be removed by the Board in its discretion. The Board may designate one member of the Compensation Committee as its chair. In the absence of that designation, the Compensation Committee may designate a chairperson by majority vote of the members of the Compensation Committee.

Members of the Compensation Committee must meet the independence requirements of the listing rules of the Nasdaq Stock Market (the “ Nasdaq Rules ”) as well as any additional criteria required by applicable law, the rules and regulations of the SEC or Nasdaq Rules or such other qualifications as are established by the Board from time to time.

To the extent practicable, it is expected that members of the Compensation Committee shall meet the “non-employee director” definition of Rule 16b-3 promulgated under Section 16 of the Securities Exchange Act of 1934, as amended (the “ Exchange Act ”); and the “outside director” definition of Section 162(m) of the Internal Revenue Code of 1986, as amended (“ IRC ”).

AUTHORITY

In discharging its oversight responsibilities, the Compensation Committee may conduct or authorize investigations into, or studies of, any matters of interest or concern that the Compensation Committee or Board deem appropriate. In connection with this responsibility, the Compensation Committee shall have unrestricted access to the Company’s facilities, personnel, books and records.

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The Compensation Committee may form and delegate authority to subcommittees when appropriate, provided that the Compensation Committee shall promptly notify the entire Board of the establishment of any such subcommittee. If designated, any subcommittee will establish its own schedule and maintain written minutes of its meetings, which minutes will be filed with the minutes of the meetings of the Board. The Compensation Committee shall not delegate to a subcommittee any power or authority required by law, regulation or listing standard to be exercised by the Compensation Committee as a whole.

The Compensation Committee shall have the authority, in its sole discretion, to select, engage, compensate and terminate outside legal counsel, compensation, benefit or other consultants or advisors, as it determines necessary to carry out its duties. The Compensation Committee shall have sole authority to approve related fees and retention terms, and the Company shall provide the Compensation Committee with adequate funding to allow the Compensation Committee to perform its duties under this Charter. The Compensation Committee’s responsibility and authority to retain advisors shall include:

1. Prior to selecting, retaining and receiving advice from outside legal counsel, compensation consultants and other advisors (other than the Company’s in-house legal counsel), the Compensation Committee shall take into consideration the independence factors set forth in the Nasdaq Rules and the applicable rules of the SEC, as in effect from time to time, including the following:
a. the provision of other services to the Company by the person or entity that employs the advisor (such person or entity, the “ Advisor Firm ”);
b. the amount of fees received from the Company by the Advisor Firm, as a percentage of the total revenue of the Advisor Firm;
c. the policies and procedures of the Advisor Firm that are designed to prevent conflicts of interest;
d. any business or personal relationship of the Advisor Firm or its representative with a member of the Compensation Committee;
e. any stock of the Company owned by the Advisor Firm or its representative; and
f. any business or personal relationship of the Advisor Firm or its representative with an Executive Officer.
2. The Compensation Committee will evaluate whether any compensation consultant retained or to be retained by it has any conflict of interest in accordance with Item 407(e)(3)(iv) of Regulation S-K.
3. The Compensation Committee may retain, or receive advice from, any compensation advisor it prefers, including advisors that are not independent, after considering the requisite independence factors. Notwithstanding the foregoing, the Compensation Committee is not required to assess the independence of any compensation consultant or other advisor that acts in a role limited to (i) consulting on any broad-based plan that does not discriminate in scope, terms or operation in favor of Executive Officers or directors and that is generally available to all salaried employees and/or (ii) providing information that is not customized for a particular company or that is customized based on parameters that are not developed by the consultant or advisor, and about which the consultant or advisor does not provide advice.
4. The Compensation Committee shall not be required to implement or act consistently with the advice or recommendations of any advisor, and the authority granted to the Compensation Committee pursuant to this charter shall not affect the ability or obligation of the Compensation Committee to exercise its own judgment in fulfillment of its duties under this charter.

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RESPONSIBILITIES AND DUTIES

The following are the principal recurring responsibilities and duties of the Compensation Committee. The Compensation Committee may perform such other functions as are consistent with its purpose and applicable law, rules and regulations, and as the Board may request.

Executive and Other Compensation

The Compensation Committee shall:

1. Annually review and approve for the CEO: (i) the annual base salary, (ii) the annual incentive bonus, including the specific goals and amount, (iii) equity compensation, (iv) any employment agreement, severance arrangement or change in control agreement/provision, (v) any signing bonus or payment of relocation costs and (vi) any other significant benefits, compensation or arrangements not available to employees generally. In consultation with the CEO, review annually and approve or recommend to the Board for approval items (i) through (vi) for the other individuals who are “officers” of the Company under Rule 16a-1(f) promulgated under the Exchange Act (the “ Executive Officers ”). The Compensation Committee shall consider the alignment of compensation and the interests of the Executive Officers with the long-term interests of the Company’s stockholders, thereby incentivizing management to increase stockholder value.
2. Review and approve annually corporate goals and objectives relevant to the compensation of the CEO, evaluate at least annually performance in the light thereof, and consider factors related to the performance of the Company, including accomplishment of the Company’s long-term business and financial goals, in approving the compensation level of the CEO.
3. Review and approve any compensatory contracts or similar transactions or arrangements with current or former Executive Officers and such other employees as the Compensation Committee shall determine, including consulting arrangements, employment contracts, severance or termination arrangements, which will include any benefits to be provided in connection with a change of control of the Company. In this regard, the Compensation Committee will have the power and authority to adopt, amend and terminate such contracts, transactions or arrangements.

Compensation Plans and Programs

The Compensation Committee shall:

1. Review, approve and administer annual and long-term incentive compensation plans for service providers of the Company, including Executive Officers and other senior executives, including:
a. establishing performance objectives and certifying performance achievement;
b. reviewing and approving all equity incentive plans and grant awards under such plans; and
c. adopting, amending and terminating any such plans.
2. Act as administrator of the Company’s equity compensation plans for its employees and other service providers. In its administration of the plans, the Compensation Committee may (i) grant stock options, restricted stock, restricted stock units, stock purchase rights or other equity-based or equity-linked awards to individuals eligible for such grants (including grants to individuals subject to Section 16 of the Exchange Act in compliance with Rule 16b-3 promulgated thereunder) in accordance with procedures and guidelines as may be established by the Board and (ii) amend such stock options, restricted stock, restricted stock units, stock purchase rights or other equity-based or equity-linked awards. The Compensation Committee may also adopt, amend and terminate such plans, including approving changes in the number of shares reserved for issuance thereunder subject to obtaining any required stockholder approval.
3. Approve all stock option, restricted stock, restricted stock unit, stock purchase right or other equity-based or equity-linked award grants and performance awards to Executive Officers to the extent necessary or desirable to ensure that such grants and awards comply with Section 162(m) of the IRC. The Compensation Committee will not be required to qualify awards under Section 162(m) of the IRC if it determines it is not in the Company’s interest to do so.
4. Review, approve and administer any of the Company’s employee benefit plans that the Compensation Committee deems appropriate, including by adopting, amending and terminating such plans.

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5. Provide oversight of the Company’s overall compensation philosophy and any compensation plans and benefits programs and make recommendations to the Board with respect to improvements or changes to such plans or the adoption of new plans when appropriate.
6. In connection with executive compensation programs, the Compensation Committee will:
a. review and approve new executive compensation programs;
b. review on a periodic basis the operations of the Company’s executive compensation programs to determine whether they are properly coordinated and achieving their intended purpose(s); and
c. establish and periodically review policies for the administration of executive compensation programs.
7. If applicable, review and recommend to the Board for approval the frequency with which the Company will conduct stockholder advisory votes on executive compensation (any such vote, a “ Say-on-Pay Vote ”) required by Section 14A of the Exchange Act, taking into account the results of the most recent stockholder advisory vote on frequency of Say-on-Pay Votes required by Section 14A of the Exchange Act, and review and approve the proposals regarding the Say-on-Pay Vote and the frequency of the Say-on-Pay Vote to be included in the Company’s proxy statement.
8. Evaluate, on a periodic basis, the competitiveness of (i) the compensation of the CEO and the Executive Officers of the Company and (ii) the Company’s overall compensation plans.
9. Review and discuss with management the risks arising from the Company’s compensation policies and practices for all employees that are reasonably likely to have a material adverse effect on the Company.
10. Evaluate director compensation, consulting with outside consultants and/or with the Human Resources department when appropriate, and make recommendations to the Board regarding director compensation.
11. Review and make recommendations to the Board with respect to the directors’ stock option grants or other equity awards under the 2013 Equity Incentive Plan and any proposed amendments thereto, subject to obtaining stockholder approval of any amendments as required by applicable law or Nasdaq Rule.
12. Review and recommend to the Board for approval any equity award granting policy.
13. If the Board adopts stock ownership guidelines applicable to members of the Board and/or Executive Officers, periodically review such guidelines and recommend any proposed changes to the Board.
14. Provide oversight of the Company’s 401(k) plan (the “ 401(k) Plan ”), including by adopting amendments to the 401(k) Plan, facilitating major 401(k) Plan changes, ensuring continued compliance with applicable laws and regulations and, as needed, replacing the 401(k) Plan.
15. Review, adopt, amend and/or terminate, and oversee clawback policies and/or practices if and as the Compensation Committee determines to be necessary or appropriate, or as required by law.

Compliance and Governance

The Compensation Committee shall:

1. Review and discuss with management the Company’s Compensation Discussion and Analysis (“ CD&A ”) and related disclosures required by the rules and regulations of the SEC, to the extent required of the Company. The Compensation Committee will also review and recommend the final CD&A to the Board for inclusion in the Company’s annual report on Form 10-K or proxy statement, to the extent required of the Company.
2. Prepare a report of the Compensation Committee required by the rules and regulations of the SEC to be included with the Company’s annual report on Form 10-K or proxy statement.
3. Oversee the Company’s submissions to stockholders on executive compensation matters, including advisory votes on executive compensation and the frequency of such votes, incentive and other executive compensation plans, and amendments to such plans (to the extent required under the Nasdaq Rules) and, in conjunction with the Nominating and Corporate Governance Committee of the Board (or its designees), engagement with proxy advisory firms and other stockholder groups on executive compensation matters.
4. The Compensation Committee will review and reassess the adequacy of this charter annually and will submit any recommended changes to this charter to the Board for approval.

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5. The Compensation Committee will review and assess the performance of the Compensation Committee on an annual basis.

MEETINGS

The Compensation Committee shall meet as often as may be deemed necessary or appropriate, in its judgment, in order to fulfill its responsibilities, but no less than quarterly. The Compensation Committee may meet either in person or telephonically, and at such times and places as the Compensation Committee determines. The Compensation Committee may establish its own meeting schedule, which it will provide to the Board. The chairperson of the Compensation Committee will preside at each meeting. The chairperson will approve the agenda for the Compensation Committee’s meetings and any member may suggest items for consideration. If a chairperson is not designated or present, an acting chair may be designated by the Compensation Committee members present. The Compensation Committee may invite to its meetings other Board members, the Company management and such other persons as the Compensation Committee deems appropriate in order to carry out its responsibilities. The Compensation Committee may exclude from its meetings any persons it deems appropriate in order to carry out its responsibilities, including non-employee directors who are not members of the Compensation Committee. No Executive Officer (including the CEO) may be present during portions of any meeting during which his or her performance and compensation are being deliberated and determined. The Compensation Committee may also act by unanimous written consent of its members (including electronic consent), provided that any meetings in which executive and other compensation matters are being approved will be conducted in person or telephonically.

MINUTES

The Compensation Committee shall maintain written minutes of its meetings and actions by written consent, which minutes and actions will be filed with the minutes of the meetings of the Board.

REPORTS

The Compensation Committee shall make regular reports to the full Board on the actions and recommendations of the Compensation Committee.

COMPENSATION

Members of the Compensation Committee shall receive such compensation, including equity and/or fees, if any, for their services as Compensation Committee members as may be determined by the Board in its sole discretion. The Compensation Committee may also engage the services of compensation consultants to determine competitive practice relating to the compensation of Compensation Committee members.

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ANNEX M

FORM OF

CHARTER OF THE NOMINATING AND CORPORATE GOVERNANCE COMMITTEE
OF THE BOARD OF DIRECTORS OF
RIMINI STREET, INC.

Amended and Approved as of ___________, 2017

PURPOSE

The purpose of the Nominating and Corporate Governance Committee (the “ Nominating Committee ”) of the board of directors (the “ Board ”) of Rimini Street, Inc. (the “ Company ”) is to ensure that the Board is properly constituted to meet its fiduciary obligations to stockholders and the Company, to develop the framework of rules and practices by which the Board ensures accountability, transparency and fairness in the Company’s relationships, and to ensure that the Company has and will continue to follow appropriate corporate governance standards. To carry out this purpose, the Nominating Committee shall:

Assist the Board in identifying individuals who are qualified to become members of the Board in accordance with criteria approved by the Board and select, or recommend to the Board that the Board select, specified individuals as the director nominees for each meeting of stockholders at which directors are to be elected.
Review and make recommendations on Board committee structure and composition.
Develop, maintain and recommend to the Board corporate governance guidelines applicable to the Company.
Oversee the evaluation of the Board and management continuity planning process.

The Nominating Committee has the authority to undertake the specific duties and responsibilities enumerated in or consistent with this charter, and will have the authority to undertake such other specific duties as the Board from time to time prescribes.

COMPOSITION

1. Membership and Appointment. The Nominating Committee shall consist of at least two (2) members of the Board. Members of the Nominating Committee shall be appointed by the Board upon the recommendation of the Nominating Committee and may be removed by the Board in its discretion.
2. Qualifications. The members of the Nominating Committee must meet the independence requirements of the listing rules of the NASDAQ Stock Market (the “ Nasdaq Rules ”) and such other qualifications as may be established by the Board from time to time.
3. Chairperson. The Board may designate a chairperson of the Nominating Committee. If the Board does not designate a chairperson, a majority of the members of the Nominating Committee may elect a chairperson of the Nominating Committee.

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RESPONSIBILITIES

The following are the principal recurring responsibilities of the Nominating Committee. The Nominating Committee may perform such other functions as are consistent with its purpose and applicable law, rules and regulations and as the Board or the Nominating Committee deems appropriate. In carrying out its responsibilities, the Nominating Committee believes its policies and procedures should remain flexible, in order to best react to changing conditions and circumstances.

1. Board Composition, Evaluation, Compensation and Nominating Activities. The Nominating Committee shall:
a. Determine the qualifications, qualities, skills and other expertise required to be a director and develop, and recommend to the Board for approval, criteria to be considered in selecting nominees for director (the “ Director Criteria ”), including issues of character, judgment, diversity, age, expertise, corporate experience, length of service and other time commitments.
b. Review the current composition, organization and governance of the Board and its committees, determine future requirements and make recommendations to the Board for approval consistent with the Director Criteria.
c. Search for, identify, evaluate and select, or recommend for selection by the Board, candidates to fill new positions or vacancies on the Board consistent with the Director Criteria, and review any candidates recommended by stockholders, provided that such stockholder recommendations are made in compliance with the Company’s bylaws and its stockholder nomination and recommendation policies and procedures.
d. Review and consider any nominations of director candidates validly made by stockholders in accordance with applicable laws, rules and regulations and the provisions of the Company’s certificate of incorporation and bylaws.
e. Evaluate the performance of individual members of the Board eligible for re-election, and select, or recommend for the selection of the Board, the director nominees for election to the Board by the stockholders at the annual meeting of stockholders or any special meeting of stockholders at which directors are to be elected.
f. Consider the Board’s leadership structure, including the separation of the Chairman and Chief Executive Officer roles and/or appointment of a lead independent director of the Board, either permanently or for specific purposes, and make such recommendations to the Board with respect thereto as the Nominating Committee deems appropriate.
g. Develop and review periodically the policies and procedures for considering stockholder nominees for election to the Board.
h. Recommend to the Board on an annual basis desired qualifications and characteristics for Board membership.
i. Evaluate and recommend termination of membership of individual directors for cause or for other appropriate reasons.
j. Work with the Compensation Committee of the Board as necessary and appropriate to periodically review and recommend to the Board for approval compensation and benefits, including equity awards, for non-employee directors.
k. Evaluate the “independence” of directors and director nominees against the independence requirements of the Nasdaq Rules, the applicable rules and regulations promulgated by the Securities and Exchange Commission and other applicable laws.
2. Board Committees. The Nominating Committee shall:
a. Review periodically the composition of each committee of the Board and make recommendations to the Board for the creation of additional committees or the change in mandate or dissolution of committees.
b. Recommend to the Board persons to be members and chairpersons of the various committees.

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3. Corporate Governance. The Nominating Committee shall:
a. Review annually the corporate governance guidelines approved by the Board and their application, and recommend any changes deemed appropriate to the Board for its consideration.
b. Oversee the Company’s corporate governance practices, including reviewing and recommending to the Board for approval any changes to the Company’s corporate governance framework, including its certificate of incorporation and bylaws.
c. Develop, subject to approval by the Board, a process for an annual evaluation of the Board and its committees, and oversee the conduct of this annual evaluation.
d. Conduct a periodic review of the Company’s succession planning process for the chief executive officer (“ CEO ”) and any other members of the Company’s executive management team, report its findings and recommendations to the Board, and assist the Board in evaluating potential successors to the CEO or other members of the Company’s executive management team.
e. Evaluate the participation of members of the Board in orientation and continuing education activities in accordance with applicable listing standards.
f. Review the disclosure included in the Company’s proxy statement regarding the Company’s director nomination process and other corporate governance matters.
g. Review any proposals properly submitted by stockholders for action at the annual meeting of stockholders and make recommendations to the Board regarding action to be taken in response to each such proposal.
h. Review and discuss with management the disclosure regarding the operations of the Nominating Committee and director independence, and recommend that this disclosure be included in the Company’s proxy statement or annual report on Form 10-K.
i. Review and monitor compliance with the Company’s Code of Business Conduct and Ethics, except as to financial, accounting and/or tax matters, including:
(1) Considering questions of possible conflicts of interest of Board members and of corporate officers.
(2) Reviewing actual and potential conflicts of interest of Board members and corporate officers, other than transactions with related persons reviewed by the Audit Committee of the Board, and approving or prohibiting any involvement of such persons in matters that may involve a conflict of interest or the taking of a corporate opportunity.

MEETINGS AND PROCEDURES

1. Meetings.
a. The Nominating Committee will set its own schedule of meetings and will meet from time to time as necessary to carry out its responsibilities. The chairperson of the Nominating Committee shall preside at each meeting. If a chairperson is not designated or present, an acting chair may be designated by the Nominating Committee members present. The Nominating Committee may act by written consent (which may include electronic consent), which shall constitute a valid action of the Nominating Committee if it has been approved by each Nominating Committee member and shows the date of approval. Any written consent will be effective on the date of the last approval and will be filed with the minutes of the meetings of the Board.
b. The Nominating Committee shall cause to be kept written minutes of its proceedings, which minutes will be filed with the minutes of the meetings of the Board.
c. The Nominating Committee may invite to its meetings any director, officer or employee of the Company and such other persons as it deems appropriate in order to carry out its responsibilities. The Nominating Committee may also exclude from its meetings any persons it deems appropriate in order to carry out its responsibilities, including non-management directors who are not members of the Nominating Committee.
2. Reporting to the Board of Directors. Consistent with this charter, the Nominating Committee shall report to the Board regarding its recommendations, as may be appropriate.

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3. Authority to Retain Advisors. In performing its responsibilities, the Nominating Committee shall have the authority to engage and obtain advice, reports or opinions from internal or independent counsel and other expert consultants or advisors, as it determines necessary or appropriate, to carry out its duties. The Nominating Committee shall have sole authority to oversee the work of any such consultants or advisors and to retain and terminate search firms that are engaged to assist in identifying director candidates, including sole authority to approve the search firm’s fees and other retention terms. The Company will provide appropriate funding, as determined by the Nominating Committee, to pay any such search firms or any other outside advisors hired by the Nominating Committee and any administrative expenses of the Nominating Committee that are necessary or appropriate in carrying out its activities.
4. Subcommittees. The Nominating Committee may form subcommittees for any purpose that the Nominating Committee deems appropriate and may delegate to such subcommittees such power and authority as the Nominating Committee deems appropriate. If designated, any subcommittee will establish its own schedule and maintain written minutes of its meetings, which minutes will be filed with the minutes of the meetings of the Board. The Nominating Committee shall not delegate to a subcommittee any power or authority required by law, regulation or listing standard to be exercised by the Nominating Committee as a whole.
5. Compensation. Members of the Nominating Committee shall receive such compensation, including equity and/or fees, if any, for their services as Nominating Committee members as may be determined by the Board or, to the extent the Board has delegated such authority, by the Compensation Committee of the Board.
6. Committee Charter Review. The Nominating Committee shall review and reassess the adequacy of this charter annually and shall submit any recommended changes to the charter to the Board for approval.
7. Performance Review. The Nominating Committee shall review and assess the performance of the Nominating Committee on an annual basis.

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PART II
INFORMATION NOT REQUIRED IN PROSPECTUS

Item 20. Indemnification of directors and officers.

The Companies Law of the Cayman Islands does not limit the extent to which a company’s memorandum and articles of association may provide for indemnification of officers and directors. However, such provision may be held by the Cayman Islands courts to be unenforceable, to the extent it seeks to indemnify or exculpate a fiduciary in respect of their actual fraud or willful default, or for the consequences of committing a crime. The Registrant’s amended and restated memorandum and articles of association provides for indemnification of officers and directors for losses, damages, costs and expenses incurred in their capacities as such, except through their own actual fraud or willful default.

Such limitation of liability and indemnification does not affect the availability of equitable remedies. In addition, the Registrant has been advised that, in the opinion of the Securities and Exchange Commission, or the SEC, indemnification for liabilities arising under the Securities Act of 1933, as amended, or the Securities Act, is against public policy as expressed in the Securities Act and is therefore unenforceable.

Item 21. Exhibits And Financial Statements Schedules.
(a) Exhibits.

EXHIBIT INDEX

Exhibit
Number
Description
2.1
Agreement and Plan of Merger, dated as of May 16, 2017, by and among GPIA, Let’s Go, Rimini Street and the Holder Representative named therein (incorporated by reference to Exhibit 2.1 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on May 17, 2017, and also included as Annex A to the joint proxy statement/prospectus). †
2.2
Amendment No. 1, dated June 30, 2017, to the Agreement and Plan of Merger, dated as of May 16, 2017, by and among GPIA, Let’s Go, Rimini Street and the Holder Representative named therein (incorporated by reference to Exhibit 2.1 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on June 30, 2017, and also included as Annex B to the joint proxy statement/prospectus).
3.1
Amended and Restated Memorandum and Articles of Association of GPIA (incorporated by reference to Exhibit 3.2 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on June 1, 2015 and included as included as Annex C to the joint proxy statement/prospectus).
3.2
Form of Certificate of Incorporation of RMNI, to become effective upon domestication (included as Annex D to the joint proxy statement/prospectus).
3.3
Form of Bylaws of RMNI, to become effective upon domestication (included as Annex E to the joint proxy statement/prospectus).
4.1
Specimen Unit Certificate of GPIA (incorporated by reference to Exhibit 4.1 of GPIA’s Form S-1 (No. 333-203500), filed with the SEC on April 17, 2015).
4.2
Specimen Ordinary Share Certificate of GPIA (incorporated by reference to Exhibit 4.2 of GPIA’s Form S-1 (No. 333-203500), filed with the SEC on April 17, 2015).
4.3
Specimen Warrant Certificate of GPIA (incorporated by reference to Exhibit 4.3 of GPIA’s Form S-1 (No. 333-203500), filed with the SEC on April 17, 2015).
4.4
Warrant Agreement, dated May 19, 2015, between GPIA and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 4.1 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on June 1, 2015).
4.5
Specimen Common Stock certificate of RMNI.
4.6
Form of Certificate of Corporate Domestication of GP Investments Acquisition Corp. to be filed with the Secretary of State of the State of Delaware (included as Annex F to the joint proxy statement/prospectus).

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Exhibit
Number
Description
4.7
Amended and Restated Investors’ Rights Agreement, dated October 31, 2016, between Rimini Street, Inc. and certain holders of the Rimini Street, Inc.’s capital stock named therein.
4.8
Warrant Consent and Conversion Agreement, dated May 16, 2017, by and among GPIA, Rimini Street and CB Agent Services LLC.
5.1
Form of Opinion of Maples and Calder as to matters concerning the laws of the Cayman Islands as to the validity of the ordinary shares of GPIA.
5.2
Form of Opinion of Skadden, Arps, Slate, Meagher & Flom LLP as to matters concerning the laws of the State of Delaware as to the validity of the common shares of RMNI.
10.1
Securities Subscription Agreement, dated March 2, 2015, between the Registrant and GPIAC, LLC (incorporated by reference to Exhibit 10.1 of GPIA’s Form S-1 (No. 333-203500), filed with the SEC on April 17, 2015).
10.2
Promissory Note, dated March 2, 2015, issued to GPIC, Ltd. (incorporated by reference to Exhibit 10.2 of GPIA’s Form S-1 (No. 333-203500), filed with the SEC on April 17, 2015).
10.3
Sponsor Warrants Purchase Agreement, effective as of May 26, 2015, between GPIA and GPIC, Ltd (incorporated by reference to Exhibit 10.3 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on June 1, 2015).
10.4
Insider Letter among GPIA, and its officers, directors, GPIC, Ltd. and GPIAC, LLC (incorporated by reference to Exhibit 10.10 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on June 1, 2015).
10.5
Letter Agreement, dated December 18, 2015, between GPIA and Alexandre Hohagen (incorporated by reference to Exhibit 10.2 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on December 21, 2015).
10.6
Investment Management Trust Agreement, dated May 19, 2015, between GPIA and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 10.1 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on June 1, 2015).
10.7
Registration Rights Agreement, dated May 19, 2015, among GPIA and certain security holders (incorporated by reference to Exhibit 10.2 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on June 1, 2015).
10.8
Securities Escrow Agreement dated May 19, 2015, among Continental Stock Transfer & Trust Company, GPIA, GPIC, Ltd., GPIAC, LLC, Jaime Szulc, Christopher Brotchie and Fernando d’Ornellas Silva (incorporated by reference to Exhibit 10.11 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on June 1, 2015).
10.9
Securities Escrow Agreement, dated December 18, 2015, among Continental Stock Transfer & Trust Company, GPIA and Alexandre Hohagen (incorporated by reference to Exhibit 10.3 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on December 21, 2015).
10.10
Administrative Services Agreement, dated May 19, 2015, by and among GPIA, GPIC, Ltd. and GP North America, LLC (incorporated by reference to Exhibit 10.9 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on June 1, 2015).
10.11
Indemnity Agreement, dated May 14, 2015, between GPIA and Antonio Bonchristiano (incorporated by reference to Exhibit 10.4 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on June 1, 2015).
10.12
Indemnity Agreement, dated May 14, 2015, between GPIA and Fersen Lambranho (incorporated by reference to Exhibit 10.15 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on June 1, 2015).
10.13
Indemnity Agreement, dated May 14, 2015, between GPIA and Christopher Brotchie (incorporated by reference to Exhibit 10.7 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on June 1, 2015).
10.14
Indemnity Agreement, dated May 14, 2015, between GPIA and Fernando d’Ornellas Silva (incorporated by reference to Exhibit 10.8 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on June 1, 2015).

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Exhibit
Number
Description
10.15
Indemnity Agreement, dated December 18, 2015, between GPIA and Alexandre Hohagen (incorporated by reference to Exhibit 10.1 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on December 21, 2015).
10.16
Amendment No. 1 to the Investment Management Trust Agreement dated May 19, 2015, dated May 25, 2017, entered into between GPIA and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 10.1 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on May 30, 2016).
10.17
Amendment No. 1 to the Securities Escrow Agreement dated May 19, 2015, dated May 30, 2017, entered into between Continental Stock Transfer & Trust Company, GPIA, GPIC, Ltd., GPIAC, LLC, Christopher Brotchie and Fernando d’Ornellas Silva (incorporated by reference to Exhibit 10.2 of GPIA’s Form 8-K (No. 001-37397), filed with the SEC on May 30, 2016).
10.18
Form of Indemnification Agreement between RMNI and its directors and officers.
10.19+
Rimini Street, Inc. 2007 Stock Plan, as amended, including form agreements under the 2007 Stock Plan.
10.20+*
Rimini Street, Inc. 2013 Equity Incentive Plan, including form agreements under the 2013 Equity Incentive Plan (as amended and restated on [•], 2017).
10.21+
Amended and Restated Employment Agreement with Seth A. Ravin between Rimini Street, Inc. and Seth A. Ravin, dated as of January 6, 2017.
10.22+
Offer Letter between Rimini Street, Inc. and Daniel Winslow, dated as of September 12, 2013.
10.23+
Offer Letter between Rimini Street, Inc. and Sebastian Grady, dated as of December 19, 2010.
10.24+
Sebastian Grady Employment Agreement between Rimini Street, Inc. and Sebastian Grady, dated January 1, 2011.
10.25+
Updated terms of employment with Rimini Street, Inc. between Rimini Street, Inc. and Sebastian Grady, dated as of May 14, 2013.
10.26
Financing Agreement by and among Rimini Street, Inc., each subsidiary of Rimini Street, Inc. from time to time party thereto as Guarantors, the Lenders from time to time party thereto, Cortland Capital Market Services LLC, as Collateral Agent and Administrative Agent and CB Agent Services LLC, as Origination Agent, dated as of June 24, 2016.
10.27
First Amendment to Financing Agreement by and among Rimini Street, Inc., the Lenders party thereto, Cortland Capital Market Services LLC, as Collateral Agent and Administrative Agent and CB Agent Services LLC, as Origination Agent, dated as of August 9, 2016.
10.28
Second Amendment to Financing Agreement by and among Rimini Street, Inc., the Lenders party thereto, Cortland Capital Market Services LLC, as Collateral Agent and Administrative Agent and CB Agent Services LLC, as Origination Agent, dated as of October 28, 2016.
10.29
Third Amendment to Financing Agreement by and among Rimini Street, Inc., the Lenders party thereto, Cortland Capital Market Services LLC, as Collateral Agent and Administrative Agent and CB Agent Services LLC, as Origination Agent, dated as of May 8, 2017.
10.30
Fourth Amendment to Financing Agreement by and among Rimini Street, Inc., the Lenders party thereto, Cortland Capital Market Services LLC, as Collateral Agent and Administrative Agent and CB Agent Services LLC, as Origination Agent, dated as of May 15, 2017.
10.31
Fifth Amendment to Financing Agreement by and among Rimini Street, Inc., the Lenders party thereto, Cortland Capital Market Services LLC, as Collateral Agent and Administrative Agent and CB Agent Services LLC, as Origination Agent, dated as of June 29, 2017.
10.32
Pledge and Security Agreement, by Rimini Street, Inc., and each of the other Loan Parties from time to time party thereof, in favor of Cortland Capital Market Services LLC, as Collateral Agent, dated as of June 24, 2016.
10.33
Commitment Fee Letter by and between Rimini Street, Inc. and CB Agent Services LLC, as Origination Agent, dated as of June 24, 2016.
10.34
Second Amended and Restated Fee Letter by and between Rimini Street, Inc. and CB Agent Services LLC, as Origination Agent, dated as of June 29, 2017.

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Exhibit
Number
Description
10.35
Cooperation Agreement by Seth Ravin and acknowledged by Rimini Street, Inc. and Cortland Capital Market Services LLC, as Collateral Agent, dated as of June 24, 2016.
10.36
Consulting Agreement by and between Rimini Street, Inc. and CB Agent Services LLC, dated as of June 24, 2016.
10.37
Amendment No. 1 to Consulting Agreement by and between CB Agent Services LLC and Rimini Street, Inc., dated as of October 28, 2016.
10.38
Lease by and between the Rimini Street, Inc. and MS Crescent 3993 Hughes SPV, LLC, dated as of May 22, 2013.
10.39
First Amendment by and between Rimini Street, Inc. and BRE/HC Las Vegas Property Holdings, L.L.C., dated as of October 8, 2014.
10.40
Second Amendment by and between Rimini Street, Inc. and BRE/HC Las Vegas Property Holdings, L.L.C., dated as of April 3, 2017.
10.41
Lease by and between the Rimini Street, Inc. and the Robison Family Trust Dated October 30, 1989, dated as of September 1, 2006.
10.42
First Amendment to Office Building Lease by and between Rimini Street, Inc. and Park Lake Apartments, LLC, dated as of October 16, 2007.
10.43
Second Amendment to Office Building Lease by and between Rimini Street, Inc. and Park Lake Apartments, LLC, dated as of May 4, 2009.
10.44
Third Amendment to Office Building Lease by and between by and between Rimini Street, Inc. and Park Lake Apartments, LLC, dated as of October 12, 2009.
10.45
Fourth Amendment to Office Building Lease by and between by and between Rimini Street, Inc. and Park Lake Apartments, L.P., dated as of January 18, 2011.
10.46
Fifth Amendment to Office Building Lease by and between by and between Rimini Street, Inc. and Park Lake Apartments, L.P., dated as of April 19, 2012.
10.47
Sixth Amendment to Office Building Lease by and among Rimini Street, Inc., Park Lake Apartments, L.P. and West State Co, LP, dated as of September 16, 2013.
10.48
Seventh Amendment to Office Building Lease by and between Rimini Street, Inc. and West State Co, LP, dated as of September 29, 2014.
10.49
Eighth Amendment to Office Building Lease by and between Rimini Street, Inc. and West State Co, LP, dated as of January 25, 2016.
10.50
Ninth Amendment to Office Building Lease by and between Rimini Street, Inc. and West State Co, LP, dated as of June 29, 2016.
16.1
Letter from BDO USA, LLP addressed to the Securities and Exchange Commission.
21.1
List of subsidiaries of RMNI.
23.1
Consent of Independent Registered Public Accounting Firm — Marcum LLP.
23.2
Consent of Independent Registered Public Accounting Firm — KPMG LLP.
23.3
Consent of Skadden, Arps, Slate, Meagher & Flom LLP (included as part of Exhibit 5.1).
24.1
Power of Attorney (included on signature page).
99.1
Form of Proxy for GP Investments Acquisition Corp. Extraordinary General Meeting of Shareholders (included as Annex G to the joint proxy statement/prospectus).
99.2
Form of Proxy for Rimini Street, Inc. Special Meeting of Stockholders (included as Annex H to the joint proxy statement/prospectus).
* To be filed by amendment.
+ Indicates a management or compensatory plan.
Schedules to this exhibit have been omitted pursuant to Item 601(b)(2) of Registration S-K. The Registrant hereby agrees to furnish a copy of any omitted schedules to the Commission upon request.

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Item 22. Undertakings.
1. The undersigned Registrant hereby undertakes:
(a) To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:
(i) To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective date of this Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and
(iii) To include any material information with respect to the plan of distribution not previously disclosed in this Registration Statement or any material change to such information in this Registration Statement; and
(b) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(d) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.
(e) That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(iii) The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
(iv) Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

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2. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by them is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.
3. The undersigned registrant hereby undertakes as follows: that prior to any public reoffering of the securities registered hereunder through use of a prospectus which is a part of this registration statement, by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c), the issuer undertakes that such reoffering prospectus will contain the information called for by the applicable registration form with respect to reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.
4. The registrant undertakes that every prospectus: (1) that is filed pursuant to the immediately preceding paragraph, or (2) that purports to meet the requirements of Section 10(a)(3) of the Act and is used in connection with an offering of securities subject to Rule 415, will be filed as a part of an amendment to the registration statement and will not be used until such amendment is effective, and that, for purposes of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
5. The undersigned Registrant hereby undertakes to respond to requests for information that is incorporated by reference into the prospectus pursuant to Item 4, 10(b), 11 or 13 of this Form S-4, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in documents filed subsequent to the effective date of this Registration Statement through the date of responding to the request.
6. The undersigned Registrant hereby undertakes to supply by means of a post-effective amendment all information concerning this transaction that was not the subject of and included in this Registration Statement when it became effective.

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SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in New York City, New York, on the 30 th day of June, 2017.

 
GP INVESTMENTS ACQUISITION CORP.
 
 
 
 
 
By:
/s/ ANTONIO BONCHRISTIANO
 
 
Name:
Antonio Bonchristiano
 
 
Title:
Chief Executive Officer;
Chief Financial Officer

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints each of Antonio Bonchristiano and Fersen Lamas Lambranho as his true and lawful attorney-in-fact and agent, each with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign one or more Registration Statements on Form S-4, or other appropriate form, and all amendments thereto, including post-effective amendments, of GP Investments Acquisition Corp. and to file the same, with any exhibits thereto, with the Securities and Exchange Commission, and/or any state securities department or any other federal or state agency or governmental authority granting unto such attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
Title
Date
/s/ ANTONIO BONCHRISTIANO
Chief Executive Officer; Chief Financial
Officer (Principal Executive Officer and
Principal Financial and Accounting
Officer); Director
June 30, 2017
Antonio Bonchristiano
 
 
 
/s/ FERSEN LAMAS LAMBRANHO
Chairman, Director
June 30, 2017
Fersen Lamas Lambranho
 
/s/ CHRISTOPHER BROTCHIE
Director
June 30, 2017
Christopher Brotchie
 
/s/ FERNANDO D’ORNELLAS SILVA
Director
June 30, 2017
Fernando d’Ornellas Silva
 
/s/ ALEXANDRE HOHAGEN
Director
June 30, 2017
Alexandre Hohagen

II-7


Exhibit 4.5


 
NUMBER
C
SHARES
SEE REVERSE FOR
CERTAIN DEFINITIONS
CUSIP 98149P100

RIMINI STREET , INC.
INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE
COMMON STOCK
 
This Certifies that
is the owner of
 
FULLY PAID AND NON-ASSESSABLE SHARES OF COMMON STOCK OF THE PAR VALUE OF $0.0001 EACH OF
 
RIMINI STREET , INC.
(THE "COMPANY")

transferable on the books of the Company in person or by duly authorized attorney upon surrender of this certificate properly endorsed.

This certificate is not valid unless countersigned by the Transfer Agent and registered by the Registrar.
 
             
 
 
 
 
 
 
 
 
 
Transfer Agent
 
 
Chairman of
Rimini Street , Inc.
 
 
Chief Executive Officer of
Rimini Street , Inc.
             
             
     
RIMINI STREET , INC.
     
 
The Company will furnish without charge to each shareholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of shares or series thereof of the Company and the qualifications, limitations, or restrictions of such preferences and/or rights. This certificate and the shares represented thereby are issued and shall be held subject to all the provisions of the amended and restated memorandum and articles of association and all amendments thereto and resolutions of the Board of Directors providing for the issue of securities (copies of which may be obtained from the secretary of the Company), to all of which the holder of this certificate by acceptance hereof assents. The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations:



                     
TEN COM
 
—as tenants in common
 
UNIF GIFT MIN ACT—
 
 
 
Custodian
 
 
TEN ENT
 
—as tenants by the entireties
 
 
 
(Cust)
 
 
 
(Minor)
JT TEN
 
—as joint tenants with right
of survivorship and not as tenants in common
 
  under Uniform Gifts to Minors
             
Act
 
 
 
 
 
 
(State)

Additional abbreviations may also be used though not in the above list.

For value received,                              hereby sells, assigns and transfers unto
 
 
 
(PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER(S) OF ASSIGNEE(S))
 
 
 
(PLEASE PRINT OR TYPEWRITE NAME(S) AND ADDRESS(ES), INCLUDING ZIP CODE, OF ASSIGNEE(S))
 
 
 
 
 
Shares of the capital stock represented by the Certificate, and hereby irrevocably constitutes and appoints
 
Attorney to transfer the said stock on the books of the within named Company with full power of substitution in the premises.
 
Dated:
 
NOTICE: THE SIGNATURE(S) TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.
 
Signature(s) Guaranteed:
By
 
 
THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM, PURSUANT TO S.E.C. RULE 17Ad-15).





Exhibit 4.7
RIMINI STREET, INC.

AMENDED AND RESTATED
INVESTORS’ RIGHTS AGREEMENT

October 31, 2016
 

TABLE OF CONTENTS

     
Page
Section 1 Definitions
1
 
1.1
Certain Definitions
1
Section 2 Registration Rights
4
 
2.1
Requested Registration
4
 
2.2
Company Registration
6
 
2.3
Registration on Form S-3
7
 
2.4
Expenses of Registration
7
 
2.5
Registration Procedures
8
 
2.6
Indemnification
9
 
2.7
Information by Holder
11
 
2.8
Restrictions on Transfer
12
 
2.9
Rule 144 Reporting
13
 
2.10
Delay of Registration
13
 
2.11
Transfer or Assignment of Registration Rights
13
 
2.12
Limitations on Subsequent Registration Rights
14
 
2.13
Termination of Registration Rights
14
Section 3 Information Covenants of the Company
14
 
3.1
Basic Financial Information and Inspection Rights
14
 
3.2
Confidentiality
15
 
3.3
Termination of Covenants
15
Section 4 Miscellaneous
15
 
4.1
Amendment
15
 
4.2
Notices
16
 
4.3
Governing Law
16
 
4.4
Successors and Assigns
16
 
4.5
Entire Agreement
16
 
4.6
Delays or Omissions
17
 
4.7
Severability
17
 
4.8
Titles and Subtitles
17
 
4.9
Counterparts
17
 
4.10
Telecopy Execution and Delivery
17
 
4.11
Jurisdiction; Venue
17
 
4.12
Further Assurances
17
 
4.13
Termination Upon Change of Control
18
 
4.14
Conflict
18
 
4.15
Aggregation of Stock
18
 
4.16
Jury Trial
18
 
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RIMINI STREET, INC.
AMENDED AND RESTATED
INVESTORS’ RIGHTS AGREEMENT

This Amended and Restated Investors’ Rights Agreement (this “ Agreement ”) is dated as of October 31, 2016, and is between Rimini Street, Inc., a Nevada corporation (the “ Company ”), the founders of the Company listed on Exhibit A (the “ Founder Holders ”),  the undersigned holders of Series A Preferred Stock of the Company listed on Exhibit B hereto together with their qualifying transferees (the “ Series A Holders ”), the undersigned holders of Series B Preferred Stock of the Company listed on Exhibit C hereto together with their qualifying transferees (the “ Series B Holders ”), and the purchasers of the Company’s Series C Preferred Stock listed on Exhibit D   hereto (the “ Series C Purchasers ”). The Series A Holders, the Series B Holders and the Series C Purchasers shall be referred to herein as the “ Preferred Holders .”

RECITALS

A.              The Company proposes to sell shares of the Company’s Series C Preferred Stock   to the Series C Purchasers pursuant to the Series C Preferred Stock Purchase Agreement of even date herewith (the “ Financing ”).

B.              In connection with the Financing, Company and the Preferred Holders desire to amend and restate the Investor Rights Agreement dated as of June 19, 2009, as amended by the Amendment dated November 1, 2013 (the “ Prior Agreement ”), as set forth herein.

C.              Pursuant to Section 4.1 of the Prior Agreement, the Company and the Holders holding more than fifty percent (50%) of the total voting power represented by the then outstanding Common Stock (determined on an as-if-converted basis) held by all of the Preferred Holders have agreed to amend, supersede and restate in its entirety the Prior Agreement by means of entering into this Agreement.

SECTION 1

DEFINITIONS

1.1          Certain Definitions .   As used in this Agreement, the following terms shall have the meanings set forth below:

(a)             Class A Common Stock ” shall mean the Class A Common Stock of the Company.

(b)             Class B Common Stock ” shall mean the Class B Common Stock of the Company.

(c)            Commission ” shall mean the Securities and Exchange Commission or any other federal agency at the time administering the Securities Act.

(d)           Common Stock ” means shares of the Class A Common Stock and the Class B Common Stock, until such time that all of the Class B Common Stock converts into Class A Common Stock and then immediately thereafter converts into the Company’s common stock pursuant to the Restated Articles, at which time all references to “Common Stock” shall mean the Company’s common stock issued pursuant to the aforementioned conversion.

(e)           Conversion Stock ” shall mean the Class B Common Stock, issued upon conversion of the Series A Preferred Stock or Series B Preferred Stock, the Class A Common Stock issued upon conversion of the Series C Preferred Stock or Company common stock issued upon conversion of the Class A Common Stock or Class B Common Stock pursuant to the Restated Articles, as applicable.
 

(f)            Exchange Act ” shall mean the Securities Exchange Act of 1934, as amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect from time to time.

(g)          Holder ” shall mean any party who holds Registrable Securities and any holder of Registrable Securities to whom the registration rights conferred by this Agreement have been duly and validly transferred in accordance with Section   2.11 of this Agreement.

(h)             Indemnified Party ” shall have the meaning set forth in Section 2.6(c).

(i)              Indemnifying Party ” shall have the meaning set forth in Section 2.6(c).

(j)              Closing ” shall mean the date of the sale of shares of the Company’s Series B Preferred Stock pursuant to the Purchase Agreement.

(k)             Initial Public Offering ” shall mean the closing of the Company’s first firm commitment underwritten public offering of the Class A Common Stock registered under the Securities Act.

(l)              Initiating Holders ” shall mean any Holder or Holders who in the aggregate hold not less than fifty percent (50%) of the outstanding Registrable Securities; provided, that for the purposes of this definition only, Registrable Securities shall only include shares that are deemed Registrable Securities pursuant to Section 1.1(n)(i) or (ii).

(m)            Other Selling   Holders ” shall mean persons other than Holders who, by virtue of agreements with the Company, are entitled to include their Other Shares in certain registrations hereunder.

(n)             Other Shares ” shall mean the Class A Common Stock, the Class B Common Stock, or Company common stock issuable upon conversion of the Class A Common Stock or the Class B Common stock pursuant to the Restated Articles,, with respect to which registration rights have been granted.

(o)             Purchase Agreement ” shall have the meaning set forth in the Recitals.

(p)             Registrable Securities ” shall mean (i) shares of Common Stock issued or issuable pursuant to the conversion of the Shares, and (ii) any Common Stock issued as a dividend or other distribution with respect to or in exchange for or in replacement of the shares referenced in (i) above and (iii) for the purposes of Sections 2.2 through 2.13 inclusive, Common Stock held by the Founder Holders; provided , however , that Registrable Securities shall not include any shares of Common Stock described in clause (i) or (ii) above which have previously been registered or which have been sold to the public either pursuant to a registration statement or Rule 144, or which have been sold in a private transaction in which the transferor’s rights under this Agreement are not validly assigned in accordance with this Agreement.

(q)          The terms “ register ,” “ registered ” and “ registration ” shall refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act and applicable rules and regulations thereunder, and the declaration or ordering of the effectiveness of such registration statement.
 
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(r)             Registration Expenses ” shall mean all expenses incurred in effecting any registration pursuant to this Agreement, including, without limitation, all registration, qualification, and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company, blue sky fees and expenses, and expenses of any regular or special audits incident to or required by any such registration, including the Selling Expenses, fees and disbursements of counsel for one Holder, but not including the compensation of regular employees of the Company, which shall be paid in any event by the Company.

(s)             Restated Articles ” means the Company’s Amended and Restated Articles of Incorporation as then in effect.

(t)              Restricted Securities ” shall mean any Registrable Securities required to bear the first legend set forth in Section 2.8(b).

(u)            Rule 144 ” shall mean Rule 144 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission.

(v)           Rule 145 ” shall mean Rule 145 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission

(w)            Rule 415 ” shall mean Rule 415 as promulgated by the Commission under the Securities Act, as such Rule may be amended from time to time, or any similar successor rule that may be promulgated by the Commission.

(x)             Securities Act ” shall mean the Securities Act of 1933, as amended, or any similar successor federal statute and the rules and regulations thereunder, all as the same shall be in effect from time to time.

(y)             Selling Expenses ” shall mean all underwriting discounts, selling commissions and stock transfer taxes applicable to the sale of Registrable Securities and fees and disbursements of counsel for any Holder.

(z)              Series A Preferred Stock ” shall mean the shares of the Company’s Series A Preferred Stock.

(aa)           Series B Preferred Stock ” shall mean the shares of the Company’s Series B Preferred Stock.

(bb)           Series C Preferred Stock ” shall mean the shares of the Company’s Series C Preferred Stock.

(cc)           Shares ” shall mean the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock.

(dd)         Withdrawn Registration ” shall mean a forfeited demand registration under Section 2.1 in accordance with the terms and conditions of Section 2.4.
 
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SECTION 2

REGISTRATION RIGHTS

2.1          Requested Registration.
 
(a)             Request for Registration. Subject to the conditions set forth in this Section 2.1, if the Company shall receive from Initiating Holders a written request signed by such Initiating Holders that the Company effect any registration with respect to all or a part of the Registrable Securities (such request shall state the number of shares of Registrable Securities to be disposed of by such Initiating Holders), the Company will:

(i)            promptly give written notice of the proposed registration to all other Holders; and

(ii)           as soon as practicable, file and best efforts effect such registration (including, without limitation, filing post-effective amendments, appropriate qualifications under applicable blue sky or other state securities laws, and appropriate compliance with the Securities Act) to permit or facilitate the sale and distribution of all or such portion of such Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any Holder or Holders joining in such request as are specified in a written request received by the Company within twenty (20) days after such written notice from the Company is mailed or delivered.

(b)             Limitations on Requested Registration. The Company shall not be obligated to effect, or to take any action to effect, any such registration pursuant to this Section 2.1:

(i)            Prior to the earlier of (A) the three (3) year anniversary of the date of this Agreement or (B) one hundred and eighty (180) days following the effective date of the first registration statement filed by the Company covering an underwritten offering of any of its securities to the general public (or the subsequent date on which all market stand-off agreements applicable to the offering have terminated);

(ii)           If the Initiating Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration statement, propose to sell Registrable Securities and such other securities (if any) the aggregate proceeds of which (after deduction for underwriter’s discounts and expenses related to the issuance) are less than $5,000,000;

(iii)          In any particular jurisdiction in which the Company would be required to execute a general consent to service of process in effecting such registration, qualification, or compliance, unless the Company is already subject to service in such jurisdiction and except as may be required by the Securities Act;

(iv)          After the Company has initiated two (2) such registrations pursuant to this Section 2.1 (counting for these purposes only (x) registrations which have been declared or ordered effective and pursuant to which securities have been sold, and (y) Withdrawn Registrations);

(v)           During the period starting with the date forty-five (45) days prior to the Company’s good faith estimate of the date of filing of the Company’s first registration statement, and ending on a date ninety (90) days after the effective date of, a Company-initiated registration (or ending on the subsequent date on which all market stand-off agreements applicable to the offering have terminated); provided that the Company is actively employing in good faith commercially reasonable efforts to cause such registration statement to become effective;
 
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(vi)          If the Initiating Holders propose to dispose of shares of Registrable Securities that may be registered on Form S-3 pursuant to a request made under Section 2.3;

(c)            Deferral. If (i) in the good faith judgment of the board of directors of the Company, the filing of a registration statement covering the Registrable Securities would be detrimental to the Company and the board of directors of the Company concludes, as a result, that it is in the best interests of the Company to defer the filing of such registration statement at such time, and (ii) the Company shall furnish to such Holders a certificate signed by the President of the Company stating that in the good faith judgment of the board of directors of the Company, it would be detrimental to the Company for such registration statement to be filed in the near future and that it is, therefore, in the best interests of the Company to defer the filing of such registration statement, then (in addition to the limitations set forth in Section 2.1(b)(v) above) the Company shall have the right to defer such filing for a period of not more than ninety (90) days after receipt of the request of the Initiating Holders, and, provided further , that the Company shall not defer its obligation in this manner more than once in any twelve-month period.

(d)         Other Shares. The registration statement filed pursuant to the request of the Initiating Holders may, subject to the provisions of Section 2.1(e), include Other Shares, and may include securities of the Company being sold for the account of the Company.

(e)             Underwriting. If the Initiating Holders propose to distribute Registrable Securities pursuant to an underwriting, they shall so advise the Company and the right of any Holder to include all or any portion of its Registrable Securities in a registration pursuant to this Section 2.1 shall be conditioned upon such Holder’s participation in an underwriting and the inclusion of such Holder’s Registrable Securities to the extent provided herein. If the Company shall request inclusion in any registration pursuant to Section 2.1 of securities being sold for its own account, or if other persons shall request inclusion in any registration pursuant to Section 2.1, the Initiating Holders shall, on behalf of all Holders, offer to include such securities in the underwriting and such offer shall be conditioned upon the participation of the Company or such other persons in such underwriting and the inclusion of the Company’s and such person’s other securities of the Company and their acceptance of the further applicable provisions of this Section 2. The Company shall (together with all Holders and other persons proposing to distribute their securities through such underwriting) enter into an underwriting agreement in customary form with the representative of the underwriter or underwriters selected for such underwriting by the Company, which underwriters are reasonably acceptable to a majority-in-interest of the Initiating Holders.

Notwithstanding any other provision of this Section 2.1, if the underwriters advise the Initiating Holders in writing that marketing factors require a limitation on the number of shares to be underwritten, the number of Registrable Securities and Other Shares that may be so included shall be allocated as follows: (i) first, among all Holders requesting to include Registrable Securities in such registration statement based on the pro rata percentage of Registrable Securities held by such Holders, assuming conversion; (ii) second, to the Other Selling Holders; and (iii) third, to the Company, which the Company may allocate, at its discretion, for its own account, or for the account of other holders or employees of the Company .

If a person who has requested inclusion in such registration as provided above does not agree to the terms of any such underwriting, such person shall be excluded therefrom by written notice from the Company, the underwriter or the Initiating Holders. The securities so excluded shall also be withdrawn from registration. Any Registrable Securities or other securities excluded or withdrawn from such underwriting shall also be withdrawn from such registration. If shares are so withdrawn from the registration and if the number of shares to be included in such registration was previously reduced as a result of marketing factors pursuant to this Section 2.1(e), then the Company shall then offer to all Holders and Other Selling Holders who have retained rights to include securities in the registration the right to include additional Registrable Securities or Other Shares   in the registration in an aggregate amount equal to the number of shares so withdrawn, with such shares to be allocated among such Holders and Other Selling Holders requesting additional inclusion, as set forth above.
 
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2.2          Company Registration.
 
(a)           Company Registration. If the Company shall determine to register any of its securities either for its own account or the account of a security holder or holders, other than a registration pursuant to Section 2.1 or 2.3, a registration relating solely to employee benefit plans, a registration relating to the offer and sale of debt securities, or a registration relating to a corporate reorganization or other Rule 145 transaction, the Company will:

(i)            promptly give written notice of the proposed registration to all Holders; and

(ii)           use its best efforts to include in such registration (and any related qualification under blue sky laws or other compliance), except as set forth in Section 2.2(b) below, and in any underwriting involved therein, all of such Registrable Securities as are specified in a written request or requests made by any Holder or Holders received by the Company within ten (10) days after such written notice from the Company is mailed or delivered. Such written request may specify all or a part of a Holder’s Registrable Securities.

(b)          Underwriting. If the registration of which the Company gives notice is for a registered public offering involving an underwriting, the Company shall so advise the Holders as a part of the written notice given pursuant to Section 2.2(a)(i). In such event, the right of any Holder to registration pursuant to this Section 2.2 shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders proposing to distribute their securities through such underwriting shall (together with the Company, the Other Selling Holders and other holders of securities of the Company with registration rights to participate therein distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the representative of the underwriter or underwriters selected by the Company.

Notwithstanding any other provision of this Section 2.2, if the underwriters advise the Company in writing that marketing factors require a limitation on the number of shares to be underwritten, the underwriters may (subject to the limitations set forth below) exclude all Registrable Securities from, or limit the number of Registrable Securities to be included in, the registration and underwriting. The Company shall so advise all holders of securities requesting registration, and the number of shares of securities that are entitled to be included in the registration and underwriting shall be allocated, as follows: (i) first, to the Company for securities being sold for its own account, and (ii) second, to the Holders requesting to include Registrable Securities in such registration statement based on the pro rata percentage of Registrable Securities held by such Holders, assuming conversion

If a person who has requested inclusion in such registration as provided above does not agree to the terms of any such underwriting, such person shall also be excluded therefrom by written notice from the Company or the underwriter. The Registrable Securities or other securities so excluded shall also be withdrawn from such registration. Any Registrable Securities or other securities excluded or withdrawn from such underwriting shall be withdrawn from such registration.
 
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(c)            Right to Terminate Registration. The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 2.2 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration.

2.3          Registration on Form S-3.
 
(a)             Request for Form S‑3 Registration. After its initial public offering, the Company shall use its commercially reasonable efforts to qualify for registration on Form S-3 or any comparable or successor form or forms. After the Company has qualified for the use of Form S-3, in addition to the rights contained in the foregoing provisions of this Section 2 and subject to the conditions set forth in this Section 2.3, if the Company shall receive from a Holder or Holders of Registrable Securities a written request that the Company effect any registration on Form S‑3 or any similar short form registration statement with respect to all or part of the Registrable Securities (such request shall state the number of shares of Registrable Securities to be disposed of and the intended methods of disposition of such shares by such Holder or Holders), the Company will take all such action with respect to such Registrable Securities as required by Section 2.1(a)(i) and (ii).

(b)            Limitations on Form S‑3 Registration. The Company shall not be obligated to effect, or take any action to effect, any such registration pursuant to this Section 2.3:

(i)            In the circumstances described in either Sections 2.1(b)(i), 2.1(b)(iii) or 2.1(b)(v);

(ii)           If the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) on Form S‑3 at an aggregate price to the public of less than $1,000,000; or

(iii)          If, in a given twelve-month period, the Company has effected two (2) such registrations in such period.

(c)             Deferral. The provisions of Section 2.1(c) shall apply to any registration pursuant to this Section 2.3.

(d)             Underwriting. If the Holders of Registrable Securities requesting registration under this Section 2.3 intend to distribute the Registrable Securities covered by their request by means of an underwriting, the provisions of Section 2.1(e) shall apply to such registration. Notwithstanding anything contained herein to the contrary, registrations effected pursuant to this Section 2.3 shall not be counted as requests for registration or registrations effected pursuant to Section 2.1.

2.4          Expenses of Registration.  All Registration Expenses incurred in connection with registrations pursuant to Sections 2.1, 2.2 and 2.3 shall be borne by the Company; provided , however , that the Company shall not be required to pay for any expenses of any registration proceeding begun pursuant to Sections 2.1 and 2.3 if the registration request is subsequently withdrawn at the request of the Holders of a majority of the Registrable Securities to be registered or because a sufficient number of Holders shall have withdrawn so that the minimum offering conditions set forth in Sections   2.1 and 2.3 are no longer satisfied (in which case all participating Holders shall bear such expenses pro rata among each other based on the number of Registrable Securities requested to be so registered), unless the Holders of a majority of the Registrable Securities agree to forfeit their right to one demand registration pursuant to Section 2.1; provided , however , in the event that a withdrawal by the Holders is based upon material adverse information relating to the Company that is different from the information known or available (upon request from the Company or otherwise) to the Holders requesting registration at the time of their request for registration under Section 2.1, such registration shall not be treated as a counted registration for purposes of Section 2.1 (and shall not be deemed to be a Withdrawn Registration), and the Holders shall not be required to pay any of such expenses. All Selling Expenses relating to securities registered on behalf of the Holders shall be borne by the holders of securities included in such registration pro rata among each other on the basis of the number of Registrable Securities so registered.
 
-7-

2.5          Registration Procedures.  In the case of each registration effected by the Company pursuant to Section 2, the Company will keep each Holder advised in writing as to the initiation of each registration and as to the completion thereof. At its expense, the Company will use its best efforts to:

(a)          Prepare and file with the Commission a registration statement with respect to such Registrable Securities and use best efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration effective for a period ending on the earlier of the date which is one hundred twenty (120) days from the effective date of the registration statement or such time as the Holder or Holders have completed the distribution described in the registration statement relating thereto; provided, however , that such 120-day period shall be extended for a period of time equal to the period the Holder refrains from selling any securities included in such registration at the request of an underwriter of Common Stock (or other securities) of the Company;

(b)           Prepare and file with the Commission such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement ;

(c)           Furnish such number of prospectuses, including any preliminary prospectuses, and other documents incident thereto, including any amendment of or supplement to the prospectus, as a Holder from time to time may reasonably request;

(d)             Use its reasonable best efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdiction as shall be reasonably requested by the Holders; provided , that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions;

(e)             Notify each seller of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in light of the circumstances then existing, and following such notification promptly prepare and furnish to such seller a reasonable number of copies of a supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such shares, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading or incomplete in light of the circumstances then existing;

(f)             If (i) a registration made pursuant to a shelf registration statement is required to be kept effective in accordance with this Agreement after the third anniversary of the initial effective date of the shelf registration statement and (ii) the registration rights of the applicable Holders have not terminated, file a new registration statement with respect to any unsold Registrable Securities subject to the original request for registration prior to the end of the three-year period after the initial effective date of the shelf registration statement, and keep such registration statement effective in accordance with the requirements otherwise applicable under this Agreement;
 
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(g)           Furnish, on the date that such Registrable Securities are delivered to the underwriters for sale, if such securities are being sold through underwriters, (i) an opinion, dated as of such date, of the counsel representing the Company for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering, addressed to the underwriters, if any, and reasonably satisfactory to a majority in interest of the Holders requesting registration of Registrable Securities and (ii) a “comfort” letter dated as of such date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the underwriters;

(h)             Provide a transfer agent and registrar for all Registrable Securities registered pursuant to such registration statement and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration;

(i)              Otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period of at least twelve months, but not more than eighteen months, beginning with the first month after the effective date of the Registration Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act;

(j)             Cause all such Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities issued by the Company are then listed;

(k)             Make available for inspection by any underwriter participating in any disposition pursuant to such registration statement, and any attorney, accountant or other agent retained by any such underwriter, all financial and other records, pertinent corporate documents and properties of the Company, subject to a customary confidentiality agreement;

(l)             Notify each seller of such Registrable Securities, promptly after it shall receive notice thereof, of the time when such registration statement has become effective or a supplement to any prospectus forming a part of such registration has been filed;

(m)            Advise each seller of such Registrable Securities, promptly after it shall receive notice or obtain knowledge thereof, of the issuance of any stop order by the SEC suspending the effectiveness of such registration statement or the initiation or threatening of any proceeding for such purpose and promptly use all reasonable efforts to prevent the issuance of any stop order or to obtain its withdrawal if such stop order should be issued; and

(n)             In connection with any underwritten offering pursuant to a registration statement filed pursuant to Section 2.1, enter into and perform its obligations under an underwriting agreement in usual and customary form; provided that each Holder participating in such underwriting shall also enter into and perform its obligations under such an agreement.

2.6           Indemnification.
 
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(a)             To the extent permitted by law, the Company will indemnify and hold harmless each Holder, each of its officers, directors, partners, shareholders, legal counsel and accountants and each person controlling such Holder within the meaning of Section 15 of the Securities Act, with respect to which registration, qualification or compliance has been effected pursuant to this Section 2, and each underwriter, if any, and each person who controls within the meaning of Section 15 of the Securities Act any underwriter, against all expenses, claims, losses, damages and liabilities (or actions, proceedings or settlements in respect thereof) arising out of or based on: (i) any untrue statement (or alleged untrue statement) of a material fact contained or incorporated by reference in any registration statement, any prospectus included in the registration statement, any issuer free writing prospectus (as defined in Rule 433 of the Securities Act), any issuer information (as defined in Rule 433 of the Securities Act) filed or required to be filed pursuant to Rule 433(d) under the Securities Act or any other document incident to any such registration, qualification or compliance prepared by or on behalf of the Company or used or referred to by the Company, (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or (iii) any violation (or alleged violation) by the Company of the Securities Act, any state securities laws or any rule or regulation thereunder applicable to the Company and relating to action or inaction required of the Company in connection with any offering covered by such registration, qualification or compliance, and the Company will reimburse each such Holder, each of its officers, directors, partners, legal counsel and accountants and each person controlling such Holder, each such underwriter and each person who controls any such underwriter, for any legal and any other expenses reasonably incurred in connection with investigating and defending or settling any such claim, loss, damage, liability or action; provided that the Company will not be liable in any such case to the extent that any such claim, loss, damage, liability, or action arises out of or is based on any untrue statement or omission based upon written information furnished to the Company by such Holder, any of such Holder’s officers, directors, partners, legal counsel or accountants, any person controlling such Holder and stated to be specifically for use therein; and provided , further that, the indemnity agreement contained in this Section 2.6(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld).

(b)            To the extent permitted by law, each Holder will, if Registrable Securities held by such Holder are included in the securities as to which such registration, qualification or compliance is being effected, indemnify and hold harmless the Company, each of its directors, officers, partners, legal counsel and accountants and each underwriter, if any, of the Company’s securities covered by such a registration statement, each person who controls the Company, each other such Holder, and each of their officers, directors and partners, and each person controlling each other such Holder, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on: (i) any untrue statement (or alleged untrue statement) of a material fact contained or incorporated by reference in any prospectus, offering circular or other document (including any related registration statement, notification, or the like) incident to any such registration, qualification or compliance, or (ii) any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and such Holders, directors, officers, partners, legal counsel and accountants, persons, underwriters, or control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action, in each case to the extent, but only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or other document in reliance upon and in conformity with written information furnished to the Company by such Holder and stated to be specifically for use therein; provided , however , that the obligations of such Holder hereunder shall not apply to amounts paid in settlement of any such claims, losses, damages or liabilities (or actions in respect thereof) if such settlement is effected without the consent of such Holder (which consent shall not be unreasonably withheld); and provided that in no event shall any indemnity under this Section 2.6 exceed the net proceeds from the offering received by such Holder, except in the case of fraud or willful misconduct by such Holder.
 
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(c)           Each party entitled to indemnification under this Section 2.6 (the “ Indemnified   Party ”) shall give notice to the party required to provide indemnification (the “ Indemnifying   Party ”) promptly after the commencement of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of such claim or any litigation resulting therefrom; provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense at such party’s expense; and provided further that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 2.6, to the extent such failure is not prejudicial. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation. Each Indemnified Party shall furnish such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in connection with defense of such claim and litigation resulting therefrom.

(d)             If the indemnification provided for in this Section 2.6 is held by a court of competent jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim, damage, or expense referred to herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the Indemnified Party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. No person or entity will be required under this Section 2.6(d) to contribute any amount in excess of the net proceeds from the offering received by such person or entity, except in the case of fraud or willful misconduct by such person or entity . No person or entity guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person or entity who was not guilty of such fraudulent misrepresentation.

(e)            Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

(f)             The obligations of the Company and the Holders under this Section 2.6 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 2, and otherwise.

2.7           Information by Holder.     Each Holder of Registrable Securities shall furnish to the Company such information regarding such Holder and the distribution proposed by such Holder as the Company may reasonably request in writing and as shall be reasonably required in connection with any registration, qualification, or compliance referred to in this Section 2.
 
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2.8          Restrictions on Transfer.
 
(a)            The holder of each certificate representing Registrable Securities by acceptance thereof agrees to comply in all respects with the provisions of this Section 2.8. Each Holder agrees not to make any sale, assignment, transfer, pledge or other disposition of all or any portion of the Restricted Securities, or any beneficial interest therein, unless and until the transferee thereof has agreed in writing for the benefit of the Company to take and hold such Restricted Securities subject to, and to be bound by, the terms and conditions set forth in this Agreement, including, without limitation, this Section 2.8, and:

(i)            There is then in effect a registration statement under the Securities Act covering such proposed disposition and the disposition is made in accordance with the registration statement; or

(ii)           The Holder shall have given prior written notice to the Company of the Holder’s intention to make such disposition and shall have furnished the Company with a detailed description of the manner and circumstances of the proposed disposition, and the Holder shall have furnished the Company, at the Holder’s expense, with (i) an opinion of counsel, reasonably satisfactory to the Company, to the effect that such disposition will not require registration of such Restricted Securities under the Securities Act or (ii) a “no action” letter from the Commission to the effect that the transfer of such securities without registration will not result in a recommendation by the staff of the Commission that action be taken with respect thereto, whereupon the holder of such Restricted Securities shall be entitled to transfer such Restricted Securities in accordance with the terms of the notice delivered by the Holder to the Company.

(b)            Each certificate representing Registrable Securities shall (unless otherwise permitted by the provisions of this Agreement) be stamped or otherwise imprinted with a legend substantially similar to the following (in addition to any legend required under applicable state securities laws):

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ ACT ”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO REGISTRATION OR AN EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO   (1) RESTRICTIONS ON TRANSFERABILITY AND RESALE, INCLUDING A LOCK-UP PERIOD IN THE EVENT OF A PUBLIC OFFERING, AS SET FORTH IN A SHAREHOLDERS’ AGREEMENT, AND (2) VOTING RESTRICTIONS AS SET FORTH IN A VOTING AGREEMENT AMONG THE COMPANY AND THE ORIGINAL HOLDERS OF THESE SHARES, COPIES OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE COMPANY.

The Holders consent to the Company making a notation on its records and giving instructions to any transfer agent of the Restricted Securities in order to implement the restrictions on transfer established in this Section 2.8.
 
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(c)             The first legend referring to federal and state securities laws identified in Section 2.8(b) stamped on a certificate evidencing the Restricted Securities and the stock transfer instructions and record notations with respect to the Restricted Securities shall be removed and the Company shall issue a certificate without such legend to the holder of Restricted Securities if (i) those securities are registered under the Securities Act, or (ii) the holder provides the Company with an opinion of counsel reasonably acceptable to the Company to the effect that a sale or transfer of those securities may be made without registration or qualification.

2.9          Rule 144 Reporting With a view to making available the benefits of certain rules and regulations of the Commission that may permit the sale of the Restricted Securities to the public without registration or pursuant to a registration on Form S-3, the Company agrees to use its commercially reasonable efforts to:

(a)             Make and keep adequate current public information with respect to the Company available in accordance with Rule 144 under the Securities Act, at all times following the effective date of the first registration under the Securities Act filed by the Company for an offering of its securities to the general public;

(b)             File with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act at any time after it has become subject to such reporting requirements; and

(c)          So long as a Holder owns any Restricted Securities, furnish to the Holder forthwith upon written request (i) a written statement by the Company as to its compliance with the reporting requirements of Rule 144 (at any time from and after ninety (90) days following the effective date of the first registration statement filed by the Company for an offering of its securities to the general public), and of the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), or that it qualified as a registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company, and such other reports and documents so filed and (iii) such other information as a Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing a Holder to sell any such securities without registration.

2.10        Delay of Registration No Holder shall have any right to take any action to restrain, enjoin, or otherwise delay any registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 2.
 
2.11        Transfer or Assignment of Registration Rights The rights to cause the Company to register securities granted to a Holder by the Company under this Section 2 may be transferred or assigned by a Holder only to (i) an affiliate, subsidiary, parent, partner, member, limited partner, retired partner, retired member or shareholder of a Holder or (ii) a transferee or assignee of not less than 250,000 shares of Registrable Securities (as presently constituted and subject to subsequent adjustments for stock splits, stock dividends, reverse stock splits, and the like); provided that (i) such transfer or assignment of Registrable Securities is effected in accordance with the terms of Article 6 of the Amended and Restated Shareholder Agreement, and applicable securities laws, (ii) the Company is given written notice prior to said transfer or assignment, stating the name and address of the transferee or assignee and identifying the securities with respect to which such registration rights are intended to be transferred or assigned and (iii) the transferee or assignee of such rights assumes in writing the obligations of such Holder under this Agreement. For the purposes of determining the number of shares of Registrable Securities held by a transferee or assignee, the holdings of transferees and assignees of a partnership who are partners or retired partners of such partnership or of members of a limited liability company (including spouses and ancestors, lineal descendants and siblings of such partners, members or spouses who acquire Registrable Securities by gift, will or intestate succession) shall be aggregated together and with the partnership; provided that all assignees and transferees who would not qualify individually for assignment of registration rights shall have a single attorney-in-fact for the purpose of exercising any rights, receiving notices or taking any action under this Section 2.
 
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2.12        Limitations on Subsequent Registration Rights From and after the date of this Agreement, the Company shall not, without the prior written consent of Holders holding a majority of the Registrable Securities, enter into any agreement with any holder or prospective holder of any securities of the Company giving such holder or prospective holder (i) the right to include such securities in any registration filed under Section 2.2 hereof, unless under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of such securities will not reduce the amount of the Registrable Securities of the Holders that are included, or (ii) the right to demand registration of their securities.

2.13        Termination of Registration Rights The right of any Holder to request registration or inclusion in any registration pursuant to Sections 2.1, 2.2 or 2.3 shall terminate on the earlier of (i) such date, on or after the closing of the Company’s first registered public offering of Common Stock, on which all shares of Registrable Securities held or entitled to be held upon conversion by such Holder may immediately be sold under Rule 144 during any ninety (90) day period and (ii) five (5) years after the closing of the Company’s Initial Public Offering.

SECTION 3

INFORMATION COVENANTS OF THE COMPANY

The Company hereby covenants and agrees, as follows:

3.1          Basic Financial Information and Inspection Rights.
 
(a)             Basic Financial Information. The Company will furnish the following reports to each Holder who owns at least 250,000 Shares and/or Conversion Stock (as presently constituted and subject to subsequent adjustments for stock splits, stock dividends, reverse stock splits, and the like):

(i)            As soon as practicable after the end of each fiscal year of the Company, and in any event within one hundred and twenty (120) days after the end of each fiscal year of the Company, a consolidated balance sheet of the Company and its subsidiaries, if any, as at the end of such fiscal year, and consolidated statements of income and cash flows of the Company and its subsidiaries, if any, for such year, prepared in accordance with U.S. generally accepted accounting principles consistently applied, audited and certified by independent public accountants of nationally-recognized standing selected by the Company, and certified by the Chief Financial Officer;

(ii)           As soon as practicable after the end of the first, second and third quarterly accounting periods in each fiscal year of the Company, and in any event within forty five (45) days after the end of the first, second, and third quarterly accounting periods in each fiscal year of the Company, an unaudited consolidated balance sheet of the Company and its subsidiaries, if any, as of the end of each such quarterly period, and unaudited consolidated statements of income and cash flows of the Company and its subsidiaries, if any, for such period, prepared in accordance with U.S. generally accepted accounting principles consistently applied, subject to changes resulting from normal year-end audit adjustments, certified by the Chief Financial Officer.
 
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(b)           Inspection Rights. The Company will afford to each Holder   who owns at least 250,000 (as presently constituted and subject to subsequent adjustments for stock splits, stock dividends, reverse stock splits, and the like) Shares and/or Conversion Stock and to such Holder’s accountants and counsel, reasonable access during normal business hours to all of the Company’s respective properties, books and records. Each such Holder shall have such other access to management and information as is necessary for it to comply with applicable laws and regulations and reporting obligations. The Company shall not be required to disclose details of contracts with or work performed for specific customers and other business partners where to do so would violate confidentiality obligations to those parties. Holders may exercise their rights under this Section 3.1(b) only for purposes reasonably related to their interests under this Agreement and related agreements or otherwise related to their investment in the Company.

3.2          Confidentiality Anything in this Agreement to the contrary notwithstanding, no Holder solely by reason of this Agreement shall have access to any trade secrets or classified information of the Company. The Company shall not be required to comply with any information rights of Section 3 in respect of any Holder whom the Company reasonably determines to be a competitor or an officer, employee, director or holder of more than ten percent (10%) of a competitor. Each Holder acknowledges that the information received by them pursuant to this Agreement may be confidential and for its use only, and it will not use such confidential information in violation of the Exchange Act or reproduce, disclose or disseminate such information to any other person (other than its employees or agents having a need to know the contents of such information, its limited partner clients to the extent required for tax or performance reporting purposes, and its attorneys), except in connection with the exercise of rights under this Agreement, unless the Company has made such information available to the public generally or such Holder is required to disclose such information by a governmental authority.

3.3          Termination of Covenants The covenants set forth in this Section 3 shall terminate and be of no further force and effect after the closing of the Company’s Initial Public Offering; provided the aggregate net proceeds of such Initial Public Offering to the Company (before deductions of underwriters’ commissions and expenses) equals or exceeds $50,000,000 (as adjusted for stock dividends, combinations, subdivisions or stock splits with respect to such shares).

SECTION 4

MISCELLANEOUS

4.1          Amendment Except as expressly provided herein, neither this Agreement nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument referencing this Agreement and signed by (a) the Company and (b) the Holders holding more than fifty percent (50%) of the total voting power represented by the then outstanding Common Stock (determined on an as-if-converted basis) held by all of the Preferred Holders (excluding any of such shares that have been sold to the public or pursuant to Rule 144); and provided, that (x) any amendment, waiver, discharge or termination that adversely changes the rights of the Founder Holders in a manner different than other classes of Holders, the holders of more than fifty percent (50%) of the total voting power represented by the then outstanding Common Stock (determined on an as-if-exercised, as-if-converted basis) held by all Founder Holders shall be required for such amendment, waiver, discharge or termination; and (y) any amendment, waiver, discharge or termination that operates in a manner that treats any Holder different from other Holders, the consent of such Holder shall also be required for such amendment, waiver, discharge or termination. Any such amendment, waiver, discharge or termination effected in accordance with this paragraph shall be binding upon each Holder and each future holder of all such securities of Holder. Each Holder acknowledges that by the operation of this paragraph, the holders of more than fifty percent (50%) of the total voting power represented by the Common Stock (determined on an as-if-converted basis) held by all Preferred Holders (excluding any of such shares that have been sold to the public or pursuant to Rule 144) will have the right and power to diminish or eliminate all rights of such Holder under this Agreement.
 
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4.2          Notices All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid,   sent by facsimile or electronic mail (if to an Investor or Holder) or otherwise delivered by hand, messenger or courier service addressed:

(a)             if to an Investor, to the Investor’s address, facsimile number or electronic mail address as shown in the Company’s records, as may be updated in accordance with the provisions hereof (and if to entities affiliates with Adams Street Partners with a copy (which shall not constitute notice) to John J. Gilluly, III, Esq., DLA Piper LLP (US), 401 Congress Ave., Suite 2500, Austin TX 78701;

(b)             if to any Holder, to such address, facsimile number or electronic mail address as shown in the Company’s records, or, until any such Holder so furnishes an address, facsimile number or electronic mail address to the Company, then to the address, facsimile number or electronic mail address of the last holder of such shares for which the Company has contact information in its records; or

(c)             if to the Company, to the attention of the Chief Executive Officer or Chief Financial Officer of the Company at 7251 West Lake Mead Blvd, Suite 300, Las Vegas, Nevada 89128, or at such other current address as the Company shall have furnished to the Investors or Holders, with a copy (which shall not constitute notice) to Jack Sheridan, Esq., Wilson Sonsini Goodrich & Rosati, P.C., 650 Page Mill Road, Palo Alto, CA 94304.

Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered by hand, messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight prepaid, specifying next-business-day delivery, one business day after deposit with the courier), or (ii) if sent via mail, at the earlier of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile transfer or, if sent via electronic mail, upon confirmation of delivery when directed to the relevant electronic mail address, if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then on the recipient’s next business day. In the event of any conflict between the Company’s books and records and this Agreement or any notice delivered hereunder, the Company’s books and records will control absent fraud or error.

4.3          Governing Law This Agreement shall be governed in all respects by the internal laws of the State of California as applied to agreements entered into among California residents to be performed entirely within California, without regard to principles of conflicts of law.

4.4         Successors and Assigns This Agreement, and any and all rights, duties and obligations hereunder, shall not be assigned, transferred, delegated or sublicensed by any Investor, other than as permitted under the Shareholders Agreement or this Agreement, without the prior written consent of the Company. Any attempt by an Investor without such permission to assign, transfer, delegate or sublicense any rights, duties or obligations that arise under this Agreement shall be void. Subject to the foregoing and except as otherwise provided herein, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto.

4.5          Entire Agreement This Agreement and the exhibits hereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof, and any prior agreements regarding the subject matter hereof, including the Registration Rights Agreement dated March 17, 2008  are hereby terminated.  No party hereto shall be liable or bound to any other party in any manner with regard to the subjects hereof or thereof by any warranties, representations or covenants except as specifically set forth herein.
 
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4.6          Delays or Omissions Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to any party to this Agreement upon any breach or default of any other party under this Agreement shall impair any such right, power or remedy of such non-defaulting party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party to this Agreement, shall be cumulative and not alternative.

4.7         Severability If any provision of this Agreement becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Agreement, and such court will replace such illegal, void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Agreement shall be enforceable in accordance with its terms.

4.8          Titles and Subtitles The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. All references in this Agreement to sections, paragraphs and exhibits shall, unless otherwise provided, refer to sections and paragraphs hereof and exhibits attached hereto.

4.9         Counterparts This Agreement may be executed in any number of counterparts, each of which shall be enforceable against the parties that execute such counterparts, and all of which together shall constitute one instrument.

4.10        Telecopy Execution and Delivery A facsimile, telecopy or other reproduction of this Agreement may be executed by one or more parties hereto and delivered by such party by facsimile or any similar electronic transmission device pursuant to which the signature of or on behalf of such party can be seen. Such execution and delivery shall be considered valid, binding and effective for all purposes. At the request of any party hereto, all parties hereto agree to execute and deliver an original of this Agreement as well as any facsimile, telecopy or other reproduction hereof.

4.11        Jurisdiction; Venue With respect to any disputes arising out of or related to this Agreement, the parties consent to the exclusive jurisdiction of, and venue in, the state courts in Santa Clara County in the State of California (or in the event of exclusive federal jurisdiction, the courts of the Northern District of California).

4.12       Further Assurances Each party hereto agrees to execute and deliver, by the proper exercise of its corporate, limited liability company, partnership or other powers, all such other and additional instruments and documents and do all such other acts and things as may be necessary to more fully effectuate this Agreement.
 
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4.13      Termination Upon Change of Control Notwithstanding anything to the contrary herein, this Agreement (excluding any then‑existing obligations) shall terminate upon (a) the acquisition of the Company by another entity by means of any transaction or series of related transactions (including, without limitation, any stock acquisition, reorganization, merger or consolidation but excluding any sale of stock for capital raising purposes) other than a transaction or series of transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction continue to retain (either by such voting securities remaining outstanding or by such voting securities being converted into voting securities of the surviving entity), as a result of shares in the Company held by such holders prior to such transaction, at least fifty percent (50%) of the total voting power represented by the voting securities of the Corporation or such surviving entity outstanding immediately after such transaction or series of transactions; or (b) a sale, lease or other conveyance of all substantially all of the assets or intellectual property of the Company.

4.14        Conflict In the event of any conflict between the terms of this Agreement and the Company’s of incorporation or its bylaws, the terms of the Company’s of incorporation or its bylaws, as the case may be, will control.
 
4.15        Aggregation of Stock .  All securities held or acquired by affiliated entities (including affiliated venture capital funds) or persons shall be aggregated together for purposes of determining the availability of any rights under this Agreement.
 
4.16        Jury Trial .   EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING (WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATED TO THIS AGREEMENT. If the waiver of jury trial set forth in this section is not enforceable, then any claim or cause of action arising out of or relating to this Agreement shall be settled by judicial reference pursuant to California Code of Civil Procedure Section 638 et seq. before a referee sitting without a jury, such referee to be mutually acceptable to the parties or, if no agreement is reached, by a referee appointed by the Presiding Judge of the California Superior Court for Santa Clara County. This paragraph shall not restrict a party from exercising remedies under the Uniform Commercial Code or from exercising pre-judgment remedies under applicable law.

( signature page follows )
 
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The parties are signing this Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

 
RIMINI STREET, INC.,
a Nevada corporation
     
 
By:
/s/ Seth A. Ravin
     
 
Name:
SETH A. RAVIN
     
 
Title:
CHIEF EXECUTIVE OFFICER
 
Rimini Street - Signature Page to the Amended and Restated Investors’ Rights Agreement (Series C)
 

The parties are signing this Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

 
FOUNDER
   
 
SETH A. RAVIN, TRUSTEE OF THE SAR TRUST U/A/D AUGUST 30, 2005
 
( Print name of Founder )
   
 
/s/ Seth A. Ravin
 
( Signature )
   
 
SETH A. RAVIN
 
( Print name of signatory, if signing for an entity )
   
 
TRUSTEE
 
( Print title of signatory, if signing for an entity )
 
Rimini Street - Signature Page to the Amended and Restated Investors’ Rights Agreement (Series C)
 

The parties are signing this Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

 
FOUNDER
   
 
THOMAS C. SHAY
 
( Print name of Founder )
   
 
/s/ Thomas C. Shay
 
( Signature )
   
   
 
( Print name of signatory, if signing for an entity )
   
   
 
( Print title of signatory, if signing for an entity)
 
Rimini Street - Signature Page to the Amended and Restated Investors’ Rights Agreement (Series C)
 

The parties are signing this Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

 
SERIES A HOLDER
   
 
SETH A. RAVIN, TRUSTEE OF THE SAR TRUST U/A/D/ AUGUST 30, 2005
 
( Print name of Series A Holder )
   
 
/s/ Seth A. Ravin
 
( Signature )
   
 
SETH A. RAVIN
 
( Print name of signatory, if signing for an entity )
   
 
TRUSTEE
 
( Print title of signatory, if signing for an entity )
 
Rimini Street - Signature Page to the Amended and Restated Investors’ Rights Agreement (Series C)
 

The parties are signing this Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

 
SERIES A HOLDER
   
 
THOMAS C. SHAY
 
( Print name of Series A Holder )
   
 
/s/ Thomas C. Shay
 
( Signature )
   
   
 
( Print name of signatory, if signing for an entity )
   
   
 
( Print title of signatory, if signing for an entity )
 
Rimini Street - Signature Page to the Amended and Restated Investors’ Rights Agreement (Series C)
 

The parties are signing this Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

 
SERIES A HOLDER
   
 
JED MURPHY AND DAPHNE MURPHY
 
( Print name of Series A Holder )
   
   
 
( Signature )
   
   
 
( Print name of signatory, if signing for an entity )
   
   
 
( Print title of signatory, if signing for an entity )
 
Rimini Street - Signature Page to the Amended and Restated Investors’ Rights Agreement (Series C)
 

The parties are signing this Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

 
SERIES A HOLDER
   
 
LIZA P. ALEJO and PHAT T. NGUYEN, JTWRS
 
( Print name of Series A Holder )
   
   
 
( Signature )
   
   
 
( Print name of signatory, if signing for an entity )
   
   
 
( Print title of signatory, if signing for an entity )
 
Rimini Street - Signature Page to the Amended and Restated Investors’ Rights Agreement (Series C)
 

The parties are signing this Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

 
SERIES A HOLDER
   
 
SOUTHWEST SECURITIES INC. AS ROTH IRA CUSTODIAN FBO DEAN POHL
 
( Print name of Series A Holder )
   
 
/s/ Dean Pohl
 
( Signature )
   
 
Dean Pohl
 
( Print name of signatory, if signing for an entity )
   
   
 
( Print title of signatory, if signing for an entity )
 
Rimini Street - Signature Page to the Amended and Restated Investors’ Rights Agreement (Series C)
 

The parties are signing this Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

 
SERIES B HOLDERS:
     
 
ADAMS STREET 2007 DIRECT FUND, L.P.
     
 
By:  ASP 2007 Direct Management, LLC, its General Partner
     
 
By:  Adams Street Partners, LLC, its Managing Member
     
 
By:
 
/s/ Robin P. Murray
 
Name:
Robin P. Murray
 
Title:
Partner
     
 
ADAMS STREET 2008 DIRECT FUND, L.P.
     
 
By:  ASP 2008 Direct Management, LLC, its General Partner
     
 
By:  Adams Street Partners, LLC, its Managing Member
     
 
By:
 
/s/ Robin P. Murray
 
Name:
Robin P. Murray
 
Title:
Partner
     
 
ADAMS STREET 2009 DIRECT FUND, L.P.
     
 
By:  ASP 2009 Direct Management, LLC, its General Partner
     
 
By:  Adams Street Partners, LLC, its Managing Member
     
 
By:
 
/s/ Robin P. Murray
 
Name:
Robin P. Murray
 
Title:
Partner
 
Rimini Street - Signature Page to the Amended and Restated Investors’ Rights Agreement (Series C)
 

The parties are signing this Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

 
SERIES C PURCHASERS:
     
 
ADAMS STREET 2007 DIRECT FUND, L.P.
     
 
By:  ASP 2007 Direct Management, LLC, its General Partner
     
 
By:  Adams Street Partners, LLC, its Managing Member
     
 
By:
 
/s/ Robin P. Murray
 
Name:
Robin P. Murray
 
Title:
Partner
     
 
ADAMS STREET 2008 DIRECT FUND, L.P.
     
 
By:  ASP 2008 Direct Management, LLC, its General Partner
     
 
By:  Adams Street Partners, LLC, its Managing Member
     
 
By:
 
/s/ Robin P. Murray
 
Name:
Robin P. Murray
 
Title:
Partner
     
 
ADAMS STREET 2009 DIRECT FUND, L.P.
     
 
By:  ASP 2009 Direct Management, LLC, its General Partner
     
 
By:  Adams Street Partners, LLC, its Managing Member
     
 
By:
 
/s/ Robin P. Murray
 
Name:
Robin P. Murray
 
Title:
Partner
 
Rimini Street - Signature Page to the Amended and Restated Investors’ Rights Agreement (Series C)
 

The parties are signing this Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

 
SERIES C PURCHASERS:
     
 
ADAMS STREET 2013 DIRECT FUND LP
     
 
By:  ASP 2013 Direct Management LP its General Partner
     
 
By:  ASP 2013 Direct Management LLC its General Partner
     
 
By:  Adams Street Partners, LLC its Managing Member
     
 
By:
 
/s/ Robin Murray
 
Name:
Robin Murray
 
Title:
Partner
     
 
ADAMS STREET 2014 DIRECT FUND LP
     
 
By:  ASP 2014 Direct Management LP its General Partner
     
 
By:  ASP 2014 Direct Management LLC its General Partner
     
 
By:  Adams Street Partners, LLC its Managing Member
     
 
By:
 
/s/ Robin Murray
 
Name:
Robin Murray
 
Title:
Partner
 
Rimini Street - Signature Page to the Amended and Restated Investors’ Rights Agreement (Series C)
 

The parties are signing this Amended and Restated Investors’ Rights Agreement as of the date stated in the introductory clause.

 
SERIES C PURCHASERS:
     
 
ADAMS STREET 2015 DIRECT VENTURE/GROWTH FUND LP
     
 
By:  ASP 2015 Direct Management LP its General Partner
     
 
By:  ASP 2015 Direct Management LLC its General Partner
     
 
By:  Adams Street Partners, LLC its Managing Member
     
 
By:
 
/s/ Robin Murray
 
Name:
Robin Murray
 
Title:
Partner
     
 
ADAMS STREET 2016 DIRECT VENTURE/GROWTH FUND LP
     
 
By:  ASP 2016 Direct Management LP its General Partner
     
 
By:  ASP 2016 Direct Management LLC its General Partner
     
 
By:  Adams Street Partners, LLC its Managing Member
     
 
By:
 
/s/ Robin Murray
 
Name:
Robin Murray
 
Title:
Partner
 
Rimini Street - Signature Page to the Amended and Restated Investors’ Rights Agreement (Series C)
 

 
ADAMS STREET VENTURE/GROWTH FUND VI LP
     
 
By:  ASP VG Management VI LP its General Partner
     
 
By:  ASP VG Management VI LLC its General Partner
     
 
By:  Adams Street Partners, LLC its Managing Member
     
 
By:
 
/s/ Robin P. Murray
 
Name:
Robin P. Murray
 
Title:
Partner
 
Rimini Street - Signature Page to the Amended and Restated Investors’ Rights Agreement (Series C)
 

Exhibit A

FOUNDERS

Seth A. Ravin, Trustee of the SAR Trust U/A/D August 30, 2005

Thomas C. Shay, an Individual
 

Exhibit B

SERIES A HOLDERS

Seth A. Ravin, Trustee to the SAR Trust U/A/D/ August 30, 2005

Thomas C. Shay

Jed Murphy and Daphne Murphy

Liza P. Alejo and Phat T. Nguyen, JTWRS

Southwest Securities FBO Dean Pohl IRA
 

Exhibit C

SERIES B HOLDERS

Adams Street 2007 Direct Fund, L.P.
Adams Street 2008 Direct Fund, L.P.
Adams Street 2009 Direct Fund, L.P.

c/o Adams Street Partners, LLC

With copies to:

Adams Street Parties, Inc.

DLA Piper LLP (US)
 

Exhibit D

SERIES C PURCHASERS

Adams Street 2007 Direct Fund, L.P.
Adams Street 2008 Direct Fund, L.P.
Adams Street 2009 Direct Fund, L.P.
Adams Street 2013 Direct Fund LP
Adams Street 2014 Direct Fund LP
Adams Street 2015 Direct Venture/Growth Fund LP
Adams Street 2016 Direct Venture/Growth Fund LP
Adams Street Venture/Growth Fund VI LP

c/o Adams Street Partners, LLC

With copies to:

Adams Street Parties, Inc.

DLA Piper LLP (US)




Exhibit 4.8
 
WARRANT CONSENT AND CONVERSION AGREEMENT
by and among
 
GP INVESTMENTS ACQUISITION CORP.,
 
RIMINI STREET, INC.
 
and
 
CB AGENT SERVICES LLC
 
Dated as of May 16, 2017
 

WARRANT CONSENT AND CONVERSION AGREEMENT
 

This Warrant Consent and Conversion Agreement (this “ Agreement ”) is made and entered into as of May 16, 2017, by and among GP Investments Acquisition Corp., a Cayman Islands exempted company limited by shares (which shall domesticate as a Delaware corporation prior to the Closing of the Mergers (each as defined in the Merger Agreement)) (the “ Company ”), Rimini Street, Inc., a Nevada corporation (“ Rimini ”), and CB Agent Services LLC, a Delaware limited liability company (“ CBAS ” and, together with its successors or permitted direct or indirect transferees (including those set forth in Schedule 2.1(b) hereto ), each, an “ Investor ” and collectively, the “ Investors ”).
 
RECITALS
 
WHEREAS, Rimini and the Investors are parties to that certain Warrant Purchase Agreement (the “ Rimini Warrant Agreement ”), dated as of June 24, 2016, pursuant to which Rimini issued to CBAS certain warrants (collectively the “ Rimini Warrants ”) to purchase an aggregate of 14,110,259 Rimini Shares (as defined below) (the “ Rimini Share Amount ”) at an exercise price per share of $1.35 (the “ Rimini Exercise Price ”), in each case upon the terms and subject to the conditions set forth therein.  In addition, subject to and in connection with the consummation of the First Merger (as defined below), the Company and Rimini have agreed to increase the aggregate amount of Rimini Shares issuable under the Rimini Warrants to include an additional 260,000 Rimini Shares at an exercise price per share of $1.35 (the “ Rimini Ratchet Shares ”) in full satisfaction of the provisions of Section 5.8 of the Rimini Warrant Agreement.
 
WHEREAS, pursuant to that certain Agreement and Plan of Merger (the “ Merger Agreement ”), dated as of May 16, 2017, by and among Let’s Go Acquisition Corp., a Delaware corporation and wholly owned subsidiary of the Company (“ Merger Sub ”), Rimini, the Company and the Holder Representative (as defined in the Merger Agreement), Merger Sub will merge with and into Rimini, the separate corporate existence of Merger Sub will cease, and Rimini will be the surviving corporation and a wholly-owned subsidiary of the Company (the “ First Merger ”), and, as part of the same overall transaction, the surviving corporation of the First Merger would merge with and into the Company (the “ Second Merger ”, and together with the First Merger, the “ Mergers ”), and, upon the First Effective Time (as defined in the Merger Agreement), all shares of Rimini’s Capital Stock (as defined in the Merger Agreement) will be converted into the right to receive the Merger Consideration set forth in the Merger Agreement.
 
WHEREAS, the Investors constitute the “Requisite Holders” under the Rimini Warrant Agreement.
 
WHEREAS, the parties desire to effectuate the Mergers and in connection with Section 3.3(c) of the Merger Agreement, the Company has agreed to issue the Warrants described below to the Investors.
 
NOW, THEREFORE, in consideration of the foregoing, and the representations, warranties and conditions set forth below, the parties hereto, intending to be legally bound, hereby agree as follows:
 

ARTICLE I
 
DEFINITIONS
 
Section 1.1           Incorporation of Definitions .  Each capitalized term used herein without definition has the meaning assigned thereto (or incorporated by reference) in either (a) that certain Financing Agreement, dated as of June 24, 2016 (as amended and in effect from time to time, the “ Financing Agreement ”) among Rimini, each Subsidiary of Rimini listed as a “Guarantor” on the signature pages thereto, the lenders from time to time party thereto (the “ Lenders ”), Cortland Capital Market Services LLC, as collateral agent and administrative agent for the Lenders and CB Agent Services LLC, as origination agent or (b) the Merger Agreement, as applicable.
 
Section 1.2            Definitions .  For all purposes of this Agreement the following terms shall have the meanings set forth herein or elsewhere in the provisions hereof:
 
Affiliate ” means with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls or is controlled by or is under direct or indirect common control with the specified Person; provided , however , that for purposes of this Agreement neither any Investor nor any Holder (or any of their respective Affiliates) shall be an Affiliate of the Company, Rimini or any of their respective Subsidiaries.
 
Change of Control ” means a “Change of Control” as defined in the Warrants.
 
Closing ” has the meaning set forth in Section 2.2.
 
Closing Date ” has the meaning set forth in Section 2.2.
 
Company ” has the meaning set forth in the preamble.
 
Convertible Securities ” means evidences of indebtedness, shares of stock or other Equity Interest or rights that by their terms are exchangeable for or exercisable or convertible, directly or indirectly, into a specified Equity Interest of the Company either immediately or upon the arrival of a specified date or the occurrence of a specified event (other than substitutions for or replacements of a Warrant).
 
Equity Interests ” means (a) all shares of capital stock (whether denominated as common stock or preferred stock), equity interests, beneficial, partnership or membership interests, joint venture interests, participations or other ownership or profit interests in or equivalents  (regardless of how designated) of or in a Person (other than an individual), whether voting or non-voting and (b) all securities convertible into or exchangeable for any of the foregoing and all warrants, options or other rights to purchase, subscribe for or otherwise acquire any of the foregoing, whether or not presently convertible, exchangeable or exercisable; provided that any instrument evidencing Indebtedness convertible or exchangeable for Equity Interests shall not be deemed to be Equity Interests, unless and until any such instruments are so converted or exchanged.
 
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Exchange Act ” means the Securities Exchange Act of 1934, as in effect from time to time.
 
Financing Agreement ” has the meaning set forth in Section 1.1.
 
Governmental Authority ” means any federal,  national, supranational, transnational, domestic, foreign, state, provincial, local, county, municipal or other government, any governmental, regulatory or administrative authority, agency, department, bureau, board, commission or official or any quasi-governmental or private body, including any political subdivision thereof or any self-regulatory organization, exercising any regulatory, taxing, importing or other governmental or quasi-governmental authority or powers, or any court tribunal, judicial or arbitral body.
 
Holder ” means, as to any Warrant or Warrant Share, the holder thereof, unless such holder shall have presented such Warrant or Warrant Share to the Company for transfer as permitted herein and the transferee shall have been entered in the Company’s register as a subsequent holder, in which case “Holder” means such subsequent holder.
 
Investor ” or “ Investors ” has the meaning set forth in the preamble.
 
Law ” means any law, statute, ordinance, regulation, code or order enacted, issued, promulgated, enforced or entered by a Governmental Authority.
 
Lenders ” has the meaning set forth in Section 1.1.
 
Merger Agreement ” has the meaning set forth in the recitals.
 
Merger Sub ” has the meaning set forth in the recitals.
 
Person ” means natural persons, corporations, limited liability companies, limited partnerships, general partnerships, limited liability partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of whether they are legal entities, and governments and agencies and political subdivisions thereof.
 
Registration Period ” has the meaning set forth in Section 7.5.
 
Requisite Holders ” means with respect to the Company, the Holder or Holders at the relevant time (excluding the Company) of more than 50% of the number of (a) Shares then issuable upon exercise of the Warrants plus (b) the Warrant Shares then outstanding.
 
Rimini ” has the meaning set forth in the preamble.
 
Rimini Exercise Price ” has the meaning set forth in the recitals.
 
Rimini Ratchet Shares ” has the meaning set forth in the recitals.
 
Rimini Share Amount ” has the meaning set forth in the recitals.
 
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Rimini Shares ” means shares of Class A Common Stock, par value $0.001 per share, of Rimini.
 
Rimini Warrant Agreement ” has the meaning set forth in the recitals.
 
Rimini Warrants ” has the meaning set forth in the recitals.
 
SEC ” means the United States Securities and Exchange Commission and any successor thereto.
 
Securities Act ” means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations of the SEC thereunder, all as the same shall be in effect at the time.
 
Shares ” means shares of common stock, par value $0.0001 per share, of the Company.
 
Spreadsheet ” means the Excel spreadsheet titled “RIVER Cap Table Model 2017 05 15 Final” provided to CBAS at 1:53 p.m., Eastern time, on May 15, 2017.
 
Subsidiary ” or “ Subsidiaries ” (whether or not capitalized) means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; provided , in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a “qualifying share” of the former Person shall be deemed to be outstanding.
 
Transaction Agreements ” shall include this Agreement and the Warrants, and any and every other present or future instrument or agreement from time to time entered into between the Company and an Investor or any other Holder of the Warrants or Warrant Shares and which relates to this Agreement or is stated to be a Transaction Agreement, as from time to time amended or modified.
 
Warrants ” has the meaning set forth in Section 2.1(b).
 
Warrant Shares ” means (a) Shares issuable upon exercise of the Warrants in accordance with their terms, (b) any securities into which or for which such Shares issuable upon exercise of the Warrants shall have been converted or exchanged pursuant to any recapitalization, reorganization or merger of the Company, and (c) any securities issued with respect to the foregoing pursuant to a dividend, distribution, combination or split.
 
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Section 1.3            Other Definitional Terms .  Unless the express context otherwise requires:
 
(a)          the words “hereof,” “herein,” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement;
 
(b)          the terms defined in the singular have a comparable meaning when used in the plural, and vice versa;
 
(c)          the terms “Dollars” and “$” mean United States Dollars;
 
(d)          references herein to a specific Section, Article, Clause, Exhibit or Schedule shall refer, respectively, to Sections, Articles, Clauses, Exhibits or Schedules of this Agreement;
 
(e)          wherever the word “include,” “includes,” or “including” is used in this Agreement, it shall be deemed to be followed by the words “without limitation”;
 
(f)           the phrase “to the extent” means the extent to which something extends or exists, and not simply “if”; and
 
(g)          references herein to any gender include each other gender.
 
ARTICLE II
 
CONVERSION OF WARRANTS
 
Section 2.1           Conversion of Warrants .
 
(a)          Notwithstanding the provisions contained in the Rimini Warrant Agreement and the Rimini Warrants, each Investor hereby agrees, immediately prior to, and contingent upon the occurrence of, the First Effective Time, to:  (i) terminate the Rimini Warrant Agreement, (ii) surrender to Rimini any and all of its Rimini Warrants and (iii) receive Warrants issued pursuant to, and subject to the terms of, this Agreement.  Rimini further agrees to terminate the Rimini Warrant Agreement.
 
(b)          At the Closing and subject to the terms and conditions hereof, the Company hereby agrees to issue to each Investor and each Investor hereby agrees to convert its allocated portion, as set forth on Schedule 2.1(b) hereto, of Rimini Warrants into warrants to purchase Shares (the “ Warrants ”) in the form attached hereto as Exhibit A .  As of the Closing, each of the Rimini Warrants shall, upon conversion into Warrants, be cancelled and shall cease to represent a right to acquire Rimini Shares.
 
(c)           The issuance of the Warrants to the Investors at the Closing is being made pursuant to the terms of this Agreement and the Merger Agreement, and no additional consideration shall be payable by any of the Investors to the Company with respect to the issuance of the Warrants.
 
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(d)          The Company, Rimini and CPAS agree that this Agreement, the Rimini Warrant Agreement, the Rimini Warrants, and the Warrants shall not be Loan Documents pursuant to the Financing Agreement.
 
Section 2.2            Closing.  The conversion of the Rimini Warrants into the Warrants (the “Closing”) will take place at the offices of Wilson Sonsini Goodrich & Rosati, P.C., 650 Page Mill Avenue, Palo Alto, California 94304, immediately prior to, and contingent upon the occurrence of, the First Effective Time (the “Closing Date”).
 
Section 2.3            Tax Reporting .  The Company, Rimini and the Investors agree that the Rimini Warrants and the Warrants do not have a “readily ascertainable fair market value” within the meaning of Section 83(e) of the Internal Revenue Code of 1986, as amended, and neither the Company, Rimini nor the Investors will take any position on any return, report or other document relating to taxes that is inconsistent with that agreement unless otherwise required by a taxing authority. The Company, Rimini and the Investors further agree that the Rimini Warrants and the Warrants are intended to constitute compensation for the performance of services by an independent contractor under the Consulting Agreement, in which case, provided that (i) the Investors are U.S. Persons (as defined in the Financing Agreement), (ii) such services are performed outside of the United States, or (iii) such services are provided within the United States by a foreign corporation or foreign partnership and the Warrants are effectively connected with the conduct by such entity of a trade or business in the United States, no withholding in respect of any U.S. federal, state or local tax is or will be required.
 
Section 2.4            Transfer Taxes .  The Company shall pay any recording, filing, stamp or similar tax which may be payable in respect of any transfer involved in the issuance of, and the preparation and delivery of any certificate representing, the Warrants.
 
Section 2.5            Deliverables of the Company .  Prior to, or simultaneously with, the Closing, the Company shall have delivered:
 
(a)           a duly executed certificate of the Secretary of the Company, certifying as to the resolutions of the Board of Directors of the Company approving this Agreement, the issuance of the Warrants and the issuance of the Shares upon exercise of the Warrants; and
 
(b)           an original Warrant issued to each Investor, registered in such Investor’s name in the records of the Company.
 
Section 2.6            Deliverables of the Investors .  Prior to, or simultaneously with, the Closing, each Investor shall have delivered the Rimini Warrants held by such Investor.
 
Section 2.7            Deliverables of Rimini .  Prior to, or simultaneously with, the Closing, Rimini shall have delivered a duly executed certificate of the Secretary of Rimini, certifying as to the resolutions of the Board of Directors of Rimini approving this Agreement.
 
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ARTICLE III
 
REPRESENTATIONS AND WARRANTIES OF INVESTORS
 
Each Investor, severally and not jointly and only with respect to itself, represents and warrants to the Company and Rimini that, as of the Closing:
 
Section 3.1          Organization; Requisite Power and Authority; Qualification .  Such Investor (a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, (b) has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Transaction Agreements to which it is a party and to carry out the transactions contemplated thereby, and (c) is qualified to do business and in good standing in every jurisdiction where its assets are located and wherever necessary to carry out its business and operations , except in jurisdictions where the failure to be so qualified or in good standing has not had, and could not be reasonably expected to have, a material adverse effect on such Investor.
 
Section 3.2            Due Authorization .  The execution, delivery and performance of this Agreement and each Transaction Agreement to which such Investor is a party have been duly authorized by all necessary action on the part of such Investor.
 
Section 3.3            No Conflict .  The execution, delivery and performance by such Investor of this Agreement and each of the Transaction Agreements to which such Investor is a party and the consummation of the transactions contemplated by this Agreement and each of the Transaction Agreements do not and will not violate any provision of any law or any governmental rule or regulation applicable to such Investor, any of the Governing Documents of such Investor, or any order, judgment or decree of any court or other agency of government binding on such Investor.
 
Section 3.4            Governmental Consents .  The execution, delivery and performance by such Investor of this Agreement and each of the Transaction Agreements to which such Investor is a party and the consummation of the transactions contemplated by this Agreement and each of the Transaction Agreements do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority.
 
Section 3.5            Binding Obligation .  This Agreement and each of the Transaction Agreements to which such Investor is a party has been duly executed and delivered by such Investor and is the legally valid and binding obligation of such Investor, enforceable against such Investor in accordance with its respective terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.
 
Section 3.6            Investment Representation .
 
(a)          Such Investor (i) is an “accredited investor” as defined in Regulation D under the Securities Act, and (ii) is acquiring the Warrants for its own account, not as nominee or agent, for investment and , subject to the provisions of Section 7.5 hereof, not with a view to selling or otherwise distributing the Warrants or the Warrant Shares; provided , however , that the disposition of such Investor’s property shall at all times be and remain in its control.  Investor further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to such Person with respect to the Warrant or Warrant Shares.
 
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(b)          Such Investor understands that it may be required to bear the economic risk of its investment in the Warrants for a substantial period of time because neither the Warrants nor the Warrant Shares have been registered under the Securities Act or the securities Laws of any state by reason of specific exemptions under the provisions thereof which depend in part on the investment intent of such Investor and upon the other representations made by such Investor in this Agreement and, therefore, cannot be sold unless they are subsequently registered under the Securities Act (including pursuant to Section 7.5 hereof) or an exemption from such registration is available.
 
(c)          Such Investor understands that no federal or state agency, including the SEC or the securities regulatory agency of any state, has approved or disapproved the Warrants or the Warrant Shares, passed upon or endorsed the merits of the Warrants or the Warrant Shares, or made any finding or determination as to the fairness of the Warrants or Warrant Shares for private investment.
 
(d)          Such Investor further understands that the Warrants and the Warrant Shares are currently “restricted securities” under the Securities Act.  The Warrants and the Warrant Shares may not be sold, transferred or otherwise disposed of without registration under the Securities Act (including pursuant to Section 7.5 hereof) and applicable state securities laws or exemptions therefrom and, in the absence of an effective registration statement covering the Warrants or the Warrant Shares or available exemptions from registration under the Securities Act and applicable state securities laws, the Warrants and the Warrant Shares must be held indefinitely.
 
(e)           The Investor has substantial experience in evaluating and investing in private placement transactions of securities in companies similar to the Company and acknowledges that the Investor can protect its own interests.  The Investor has such knowledge and experience in financial and business matters so that the Investor is capable of evaluating the merits and risks of its investment in the Company.
 
Section 3.7            Legends .  Subject to the provisions of Section 7.4 hereof, it is understood that the Warrants and Warrant Shares will bear one or all of the following conspicuous legends prior to such time as the Warrants or Warrant Shares are sold in accordance with either (x) an effective registration statement under the Securities Act covering the Warrants or Warrant Shares (including pursuant to Section 7.5 hereof) or a public sale or (y) Rule 144 promulgated under the Securities Act:
 
(a)          THIS WARRANT AND THE UNDERLYING SECURITIES OF THE ISSUER ISSUED UPON EXERCISE OF SUCH WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ SECURITIES ACT ”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS IN ACCORDANCE WITH APPLICABLE REGISTRATION REQUIREMENTS OR AN EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE, TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.
 
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(b)          THE UNDERLYING SECURITIES OF THE ISSUER ISSUED UPON EXERCISE OF THIS WARRANT SHALL BE ENTITLED TO REGISTRATION RIGHTS UNDER THE WARRANT CONSENT AND CONVERSION AGREEMENT EXECUTED BY THE COMPANY AND THE HOLDER HEREOF.  SUBJECT TO SUCH REGISTRATION RIGHTS, THIS WARRANT MUST BE SURRENDERED TO THE COMPANY OR ITS TRANSFER AGENT AS A CONDITION PRECEDENT TO THE SALE, TRANSFER, PLEDGE OR HYPOTHECATION OF ANY INTEREST IN ANY OF THE SECURITIES REPRESENTED HEREBY.
 
(c)          Any legend required by any applicable state securities Laws.
 
Section 3.8            Tax Advisors .  The Investor has reviewed with its own tax advisors the U.S. federal, state and local and non-U.S. tax consequences of this Agreement and the transactions contemplated hereby.  With respect to such matters, the Investor relies solely on any such advisors and not on any statements or representations of the Company or Rimini or any of their agents, written or oral.  The Investor understands that it (and not the Company or Rimini) shall be responsible for its own tax liability that may arise as a result of this Agreement and the transactions contemplated hereby.
 
ARTICLE IV
 
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
 
The Company hereby represents and warrants to each Investor on behalf of itself and Merger Sub that, as of the Closing:
 
Section 4.1           Organization; Requisite Power and Authority; Qualification .  Each of the Company and Merger Sub (a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, (b) has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Transaction Agreements to which it is a party and to carry out the transactions contemplated thereby, and (c) is qualified to do business and in good standing in every jurisdiction where its assets are located and wherever necessary to carry out its business and operations, except in jurisdictions where the failure to be so qualified or in good standing has not had, and could not be reasonably expected to have, an Acquiror Material Adverse Effect (as defined in the Merger Agreement).
 
Section 4.2           Due Authorization .  The execution, delivery and performance of this Agreement and each Transaction Agreement to which the Company is a party have been duly authorized by all necessary action on the part of the Company.
 
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Section 4.3            No Conflict .  The execution, delivery and performance by the Company of this Agreement and each of the Transaction Agreements to which the Company is a party and the consummation of the transactions contemplated by this Agreement and each of the Transaction Agreements do not and will not (a) violate any provision of any law or any governmental rule or regulation applicable to the Company or any of its Subsidiaries, any of the Acquiror Governing Documents (as defined in the Merger Agreement) or the Governing Documents of Merger Sub, or any order, judgment or decree of any court or other agency of government binding on the Company or Merger Sub; (b) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material agreement of the Company or Merger Sub; (c) result in or require the creation or imposition of any Lien upon any of the properties or assets of the Company or Merger Sub; or (d) require any approval of stockholders, members or partners or any approval or consent of any Person under any material agreement of the Company or Merger Sub, except for such approvals or consents which will be obtained on or before the Closing Date.
 
Section 4.4            Governmental Consents .  The execution, delivery and performance by the Company of this Agreement and each of the Transaction Agreements to which the Company is a party and the consummation of the transactions contemplated by this Agreement and each of the Transaction Agreements do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority except the filing of such notices as may be required under the Securities Act and such filings as may be required under applicable state securities laws, which will be timely made by the Company as and when required by such laws.
 
Section 4.5            Binding Obligation .  This Agreement and each of the Transaction Agreements to which the Company is a party has been duly executed and delivered by the Company and is the legally valid and binding obligation of the Company, enforceable against the Company in accordance with its respective terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.
 
Section 4.6            Capitalization .
 
(a)          Capitalization .  The authorized Equity Interests of the Company and the issued and outstanding Equity Interests of the Company are as set forth in Section 5.13 of the Merger Agreement.  All of the issued and outstanding shares of Equity Interests of the Company and each of its Subsidiaries have been validly issued and are fully paid and non-assessable.  All Equity Interests of such Subsidiaries that are owned, directly or indirectly, by the Company are free and clear of all Liens (other than Permitted Liens).  Except as described in Section 5.13 of the Merger Agreement, there are no outstanding debt or equity securities of the Company or Merger Sub and no outstanding obligations of the Company or Merger Sub convertible into or exchangeable for, or warrants, options or other rights for the purchase or acquisition from the Company or Merger Sub, or other obligations of the Company or Merger Sub to issue, directly or indirectly, any shares of Equity Interests of the Company or Merger Sub.
 
(b)          Redemptions .  Except as provided in this Agreement or the Acquiror Governing Documents , the Company has no obligation (contingent or otherwise) to purchase or redeem any of its Equity Interests or any outstanding warrants, options or other rights to purchase Equity Interests.
 
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(c)          Anti-Dilution; Preemptive Rights .  The issuance of the Warrants and the issuance of the Warrant Shares, as applicable, does not and will not result in or give rise to any anti-dilution rights (or adjustment to an exercise price or a conversion price with respect to any Equity Interests of the Company), preemptive rights, rights of first refusal, rights of first offer or similar rights of any other Person with respect to Equity Interests of the Company and Merger Sub.
 
(d)          Reserved Shares .  A sufficient number of authorized but unissued Shares have been reserved by appropriate company action of the Company in connection with the prospective exercise of the Warrants.
 
(e)           No Further Action; No Conflict . The issuance of the Warrant Shares (i)   does not require any further company action by the equity holders of the Company or the Board of Directors, (ii)   is not subject to the pre-emptive rights or rights of first refusal of any present or future equity holders of the Company and (iii) does not conflict with any provision of any agreement to which the Company is a party or by which it is bound.  All Warrant Shares when issued upon exercise of the Warrants in accordance with their terms, against payment of the exercise price therefor, will be duly authorized, validly issued, fully paid and non-assessable.
 
Section 4.7            Valid Issuance .  The Warrants when issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement, will be validly issued and will be free of preemptive rights, rights of first refusal, rights of first offer and similar rights and restrictions on transfer other than restrictions on transfer under this Agreement, the terms of the Warrant, applicable state and federal securities Laws and Liens subsequently created by or imposed by an Investor with respect to the applicable Warrants.  Subject to any filings pursuant to Regulation D of the Securities Act and applicable state securities Laws, the Warrants will be issued in compliance with all applicable federal and state securities Laws and all agreements applicable thereto to which the Company is a party or by which it is bound.  The Equity Interests issuable upon exercise of the Warrants, have been or will be duly reserved for issuance, and upon issuance in accordance with the applicable terms of the Warrants will be validly issued, fully paid and non-assessable and will be free of preemptive rights, rights of first offer, rights of first refusal and restrictions on transfer other than the restrictions on transfer under the Acquiror Governing Documents , applicable federal and state securities Laws and Liens subsequently created by or imposed by an Investor with respect to the Warrants or the Warrant Shares, as applicable.  Subject to any filings pursuant to Regulation D and applicable state securities Laws, the Equity Interests issuable upon exercise of the Warrants will be issued in compliance with all agreements applicable thereto to which the Company is a party or by which it is bound and with all applicable federal and state securities Laws.
 
Section 4.8           Voting Rights .  To the knowledge of the Company, no stockholder of the Company has entered into any agreement (whether written or oral) with respect to the voting of any securities of the Company, other than the entry into a Transaction Support and Voting Agreement by GPIAC, LLC in connection with the transactions contemplated by the Merger Agreement.
 
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Section 4.9            Material Agreements .  This Agreement, the Merger Agreement, the Loan Documents, the other Transaction Agreements and the Acquiror Governing Documents existing as of the date hereof are the only material agreements relating to the transactions contemplated hereby to which the Company or Merger Sub is a party.  Prior to the date hereof, the Company has delivered (a) to each Investor and CBAS true and complete copies of all Acquiror Governing Documents and (b) to CBAS a true and complete copy of the Merger Agreement and, to the extent requested by CBAS, all documents and agreements related thereto or entered into in connection therewith .
 
Section 4.10         Defaults: Violations .  Neither the Company nor Merger Sub are in default under any provisions of their respective governing documents or in violation of any Law, except for violations or defaults which could not reasonably be expected to materially adversely affect the Company’s and Merger Sub’s business, assets or financial condition, taken as a whole.
 
ARTICLE V
 
REPRESENTATIONS AND WARRANTIES OF RIMINI
 
Rimini hereby represents and warrants to each Investor on behalf of itself and each of the Loan Parties that, as of the Closing and except as disclosed in and pursuant to the Financing Agreement and the Merger Agreement and schedules thereto:
 
Section 5.1           Organization; Requisite Power and Authority; Qualification .  Each of Rimini and the Loan Parties (a) is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, (b) has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Transaction Agreements to which it is a party and to carry out the transactions contemplated thereby, and (c) is qualified to do business and in good standing in every jurisdiction where its assets are located and wherever necessary to carry out its business and operations, except in jurisdictions where the failure to be so qualified or in good standing has not had, and could not be reasonably expected to have, a Company Material Adverse Effect (as defined in the Merger Agreement).

Section 5.2            Due Authorization .  The execution, delivery and performance of this Agreement and each Transaction Agreement to which Rimini is a party have been duly authorized by all necessary action on the part of Rimini.
 
Section 5.3            No Conflict .  The execution, delivery and performance by Rimini of this Agreement and each of the Transaction Agreements to which Rimini is a party and the consummation of the transactions contemplated by this Agreement and each of the Transaction Agreements do not and will not (a) violate any provision of any law or any governmental rule or regulation applicable to Rimini or any of its Subsidiaries, any of the Governing Documents of Rimini or any of its Subsidiaries, or any order, judgment or decree of any court or other agency of government binding on Rimini or any of its Subsidiaries; (b) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material agreement of Rimini or any of its Subsidiaries; (c) result in or require the creation or imposition of any Lien upon any of the properties or assets of Rimini or any of its Subsidiaries (other than any Liens created under any of the Loan Documents in favor of Collateral Agent, on behalf of Secured Parties); or (d) require any approval of stockholders, members or partners or any approval or consent of any Person under any material agreement of Rimini or any of its Subsidiaries, except for such approvals or consents which will be obtained on or before the Closing Date.
 
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Section 5.4           Governmental Consents .  The execution, delivery and performance by Rimini of this Agreement and each of the Transaction Agreements to which Rimini is a party and the consummation of the transactions contemplated by this Agreement and each of the Transaction Agreements do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority except the filing of such notices as may be required under the Securities Act and such filings as may be required under applicable state securities laws, which will be timely made by the Company as and when required by such laws.
 
Section 5.5            Binding Obligation .  This Agreement and each of the Transaction Agreements to which Rimini is a party has been duly executed and delivered by Rimini and is the legally valid and binding obligation of Rimini, enforceable against Rimini in accordance with its respective terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability.
 
Section 5.6            Capitalization .
 
(a)          Capitalization . The authorized Equity Interests of Rimini and the issued and outstanding Equity Interests of Rimini are as set forth in Section 4.6 of the Merger Agreement.  All of the issued and outstanding shares of Equity Interests of Rimini and each of its Subsidiaries have been validly issued and are fully paid and non-assessable.  All Equity Interests of such Subsidiaries that are owned, directly or indirectly, by Rimini are free and clear of all Liens (other than Permitted Specified Liens).  Except as described in Section 4.6 of the Merger Agreement, there are no outstanding debt or equity securities of Rimini or any of its Subsidiaries and no outstanding obligations of Rimini or any of its Subsidiaries convertible into or exchangeable for, or warrants, options or other rights for the purchase or acquisition from Rimini or any of its Subsidiaries, or other obligations of Rimini or any of its Subsidiaries to issue, directly or indirectly, any shares of Equity Interests of Rimini or any of its Subsidiaries.
 
(b)         Redemptions .  Except as provided in this Agreement, Rimini has no obligation (contingent or otherwise) to purchase or redeem any of its Equity Interests or any outstanding warrants, options or other rights to purchase Equity Interests.
 
(c)          Anti-Dilution; Preemptive Rights .  The issuance of the Warrants and the issuance of the Warrant Shares, as applicable, by the Company does not and will not result in or give rise to any anti-dilution rights (or adjustment to an exercise price or a conversion price with respect to any Equity Interests of Rimini), preemptive rights, rights of first refusal, rights of first offer or similar rights of any other Person with respect to Equity Interests of Rimini or any of its Subsidiaries.
 
(d)           No Further Action; No Conflict .  The issuance of the Warrant Shares by the Company (i) is not subject to the pre-emptive rights or rights of first refusal of any present or future equity holders of Rimini and (ii) does not conflict with any provision of any agreement to which Rimini is a party or by which it is bound.
 
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ARTICLE VI
 
COVENANTS
 
Section 6.1            Reservation .  For as long as the Warrants are outstanding, the Company shall reserve, and at all times from and after the date hereof keep reserved out of its authorized but unissued Shares, such number of Shares as may be necessary from time to time for the purposes of effecting the issuance of Shares upon exercise of the Warrants.
 
Section 6.2            Compliance with Laws .  For as long as the Warrants or the Warrant Shares are outstanding, the Company and its Subsidiaries shall use commercially reasonable efforts to comply with all applicable statutes and regulations except (a) where the necessity of compliance therewith is contested in good faith by appropriate proceedings, or (b) the failure to comply has not had, and could not be reasonably expected to have, an Acquiror Material Adverse Effect that cannot be cured within a reasonable period of time given the circumstances.
 
Section 6.3            Adjustments to Shares and Exercise Price .  The Company, Rimini and CBAS agree that, on the Closing Date, the aggregate number of Shares under the Warrant s issued pursuant to, and subject to the terms of, this Agreement and the E xercise Price of such Shares (each as set forth in the form of Warrants attached hereto as Exhibit A) shall be adjusted to reflect any changes in the underlying facts or assumptions set forth in the Spreadsheet.  For avoidance of doubt, the number of Shares and the Exercise Price of such Shares was calculated based upon the conversion of the Rimini Share Amount and the Rimini Ratchet Shares pursuant to the Spreadsheet using the representations and warranties of Company and Rimini in this Agreement and the Merger Agreement regarding their respective Equity Interests as of the date hereof and as of the Closing and the other assumptions in the Spreadsheet, including, among other items, the amount of actual redemptions of the Company’s Equity Interests, any other equity investments consummated contingent upon the Closing of the Mergers, and the actual Merger Consideration and the Merger Consideration Per Fully Diluted Share.  For further avoidance of doubt, for the purpose of adjusting the calculation of the aggregate number of Shares and the Exercise Price for such Shares, the Company, Rimini and CBAS agree that the aggregate amount of Rimini Shares subject to the Rimini Warrants shall be deemed to be equal to 14,370,259 Rimini Shares (14,110,259 Rimini Share Amount plus the 260,000 Rimini Ratchet Shares) with an exercise price per share of $1.35.
 
Section 6.4            Amendments to the Merger Agreement .  The Company and Rimini agree that unless CBAS provides its prior written consent (which consent may be withheld in its sole discretion), (a) no waiver, modification or amendment shall be made to the Warrants and (b) the Mergers shall be consummated in accordance with the Merger Agreement, without any waiver, modification or amendment thereto that could reasonably be expected to be materially adverse to CBAS or the Investors.
 
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ARTICLE VII
 
SUBSEQUENT HOLDERS; REGISTRATION AND TRANSFER

Section 7.1            Subsequent Holders .  The provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto.
 
Section 7.2            Registration, Transfer and Exchange of Warrants .
 
(a)          The Company shall keep at its principal office a register in which shall be entered the name and address of the Holder of the applicable Warrants and of all permitted transfers of such Warrants.  The ownership of any of the Warrants shall be proven by such register and the Company may conclusively rely upon such register.
 
(b)          Subject to applicable transfer restrictions and the terms and conditions of this Agreement and the Warrant, the Holder of a Warrant may, at any time and from time to time prior to the exercise thereof, surrender any one or more of the Warrants held by it for exchange or transfer at the principal office of the Company.  On surrender for exchange of the Warrants, properly endorsed, to the Company, the Company, at its expense, will issue and deliver to or on the order of the Holder thereof a new Warrant or Warrants of like tenor, in the name of such Holder or, upon payment by such Holder of any applicable transfer taxes, as such Holder may direct, calling in the aggregate on the face or faces thereof for the number of Warrant Shares called for on the face or faces of the Warrants so surrendered.
 
(c)          Each Warrant issued hereunder, whether originally or in substitution for, or upon transfer or exchange of, any Warrant shall be registered on the date of execution thereof by the Company.  The registered Holder of a Warrant shall be deemed to be the owner of such Warrant for all purposes of this Agreement.  All notices given hereunder to such Holder shall be deemed validly given if given in the manner specified in Section 8.2.
 
Section 7.3            Replacement .  Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of any Warrant or Warrant Share and, in the case of any such loss, theft or destruction, upon delivery of an indemnity agreement from such Holder reasonably satisfactory to the Company or, in the case of any such mutilation, upon the surrender of such Warrant or Warrant Share for cancellation to the Company at its principal office, the Company, at its own expense, will execute and deliver, in lieu thereof, a new Warrant or Warrant Share of like tenor, dated so that there will be no loss of dividends thereon.  Any Warrant or Warrant Share in lieu of which any such new Warrant or Warrant Share has been so executed and delivered by the Company shall not be deemed to be outstanding for any purpose of this Agreement.
 
Section 7.4            Restrictions on Transfer; Restrictive Legend .  In connection with any proposed transfer of the Warrants, prior to the registration of the offer and sale of the Warrants and Warrant Shares under the Securities Act (including pursuant to Section 7.5 hereof), it shall be a condition of such transfer that the transferee agree to be bound by the terms of this Section 7.4 and the other terms of this Agreement and the Warrant. Subject to the provisions of Section 7.5, each Warrant shall bear a legend referring to the foregoing restriction on transfer.  The transfer restrictions set forth in the foregoing provisions of this Section 7.4 shall terminate as to any particular Warrants and/or Warrant Shares when such Warrants and/or Warrant Shares shall have been effectively registered under the Securities Act (including pursuant to Section 7.5 hereof), sold pursuant to a public sale or sold pursuant to Rule 144 promulgated under the Securities Act.  Whenever such transfer restrictions shall terminate as to any Warrants and/or Warrant Shares, the Company shall promptly instruct its warrant or transfer agent to immediately remove any restrictive legends on the Warrants and/or Warrant Shares and to prepare and deliver (at the Company’s expense) new Warrants and/or Warrant Shares, as applicable, without any such legends.
 
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Section 7.5            Registration Rights .  The Company agrees that, as soon as practicable, but in no event more than fifteen (15) business days, after the First Effective Time, it shall use its best efforts to prepare and file with the SEC a registration statement (which shall be in form and substance acceptable to the Investors) for the registration, under the Securities Act, of the offer and sale of all Warrant Shares issued or issuable under the Warrants (the “ Registration Statemen t”).  The Company shall use its best efforts to cause such Registration Statement to become effective as soon as practicable thereafter, but in any event shall cause such Registration Statement to have become effective no later than one hundred and five (105) days after the First Effective Time (the “ Registration Period ”), and to do all things and undertake all such acts as may be necessary or desirable to (a) file any necessary amendments or supplements and maintain the effectiveness of such Registration Statement, and a current prospectus relating thereto, until the expiration of the Warrants (including any additional Warrants issued in connection with Section 6.3) in accordance with the provisions of this Agreement and the Warrants and (b) cooperate with and otherwise permit any Holder, at any time and from time to time after effectiveness of such Registration Statement, to undertake sales of the securities covered thereby.  The Company shall, from time to time at the request and without any additional consideration, furnish Holders such further information or assurances, execute and deliver such additional documents, instruments and conveyances, and take such other actions and do such other things, as may be necessary or desirable in the opinion of counsel to the requesting party to carry out the provisions of this Agreement and the registration rights contemplated hereby and to give effect to the transactions contemplated hereby.  If Holders notify the Company that they desire to effect sales of Warrant Shares pursuant to such Registration Statement by means of an underwritten offering, the Company will cooperate to the extent reasonably requested by such Holders in such underwritten offering in customary fashion, including by entering into a customary underwriting agreement, providing for the delivery of customary legal opinions, auditor “comfort” letters and certificates, cooperating with such Holder’s and any underwriter’s due diligence investigation and making customary submissions and filings with stock exchanges, governmental and self-regulatory bodies.  Filing fees, printer fees, fees and expenses of attorneys and independent auditors of the Company and the Holders, and all other expenses of any such offering shall be the sole responsibility of the Company.  For the avoidance of any doubt, unless and until all of the Warrants (including any additional Warrants issued in connection with Section 6.3) have been exercised and Warrant Shares sold by the Holders, the Company shall continue to be obligated to comply with its registration obligations under this Section 7.5.  Notwithstanding the foregoing, if, during the Registration Period, the Company furnishes to Holders a certificate signed by the Company’s chief executive officer certifying that, in the good faith judgment of the Board of Directors of the Company and based on a recommendation from an independent investment bank of recognized national standing, it would be materially detrimental to the Company and its stockholders for the Holders to sell Warrant Shares pursuant to such Registration Statement, the Company shall have the right to require Holders to reduce the number of Warrant Shares to be sold during the Registration Period pursuant to such Registration Statement (but only in the amount deemed necessary by the Board of Directors of the Company, acting in good faith and upon the recommendation of such independent investment bank); provided that the Company may not invoke this right more than once during the term of this Agreement.  In the event of a breach of this Section 7.5, the Investors shall be entitled to seek specific enforcement of the terms and provisions of this Section 7.5, in addition to any other remedy to which the Investors are entitled at law or equity.
 
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Section 7.6            Transferability .  The Warrants shall be transferable only upon compliance with the Securities Act and applicable state securities Laws and regulations and, prior to registration of the Warrant Shares (including pursuant to Section 7.5 hereof), (a) Section 7.4 hereof and (b) Sections 4 and 5 of the Warrant.
 
ARTICLE VIII
 
MISCELLANEOUS
 
Section 8.1            Expenses .  The Company, on behalf of itself and its Subsidiaries, hereby agrees to pay on demand all reasonable out-of-pocket expenses (including fees and expenses of counsel) incurred by any Investor in connection with the transactions contemplated by this Agreement and the other Transaction Agreements (but for the avoidance of doubt, not with respect to (x) the issuance or delivery of  the Warrant Shares upon exercise of the Warrants or (y) any transfer of the Warrants or the Warrant Shares) and in connection with any amendments or waivers (whether or not the same become effective) hereof or thereof, and all reasonable out-of-pocket expenses incurred by such Investor or any Holder of any Warrant or Warrant Share issued hereunder in connection with the successful enforcement of any rights hereunder, under any other Transaction Agreement, or with respect to any Warrant or Warrant Shares (including any fees or expenses incurred in connection with exercise of the registration rights contained in Section 7.5 hereof).
 
Section 8.2            Notices .  All notices and other communications provided for hereunder shall be in writing and shall be delivered by hand, sent by registered or certified mail (postage prepaid, return receipt requested), overnight courier, fax or email.  In the case of notices or other communications to any party, as the case may be, they shall be sent to the respective address set forth below (or, as to each party, at such other address as shall be designated by such party in a written notice to the other parties complying as to delivery with the terms of this Section 8.2):
 
If to the Company, then to:
 
 
GP Investments Acquisition Corp.
 
 
150 E. 52nd Street, Suite 5003
 
 
New York, NY 10022
 
 
Attention:
Antonio Bonchristiano
 
Telecopy No.:
   
 
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with a copy (which shall not constitute notice) to:
 
 
Skadden, Arps, Slate, Meagher & Flom LLP
 
 
Four Times Square
 
 
New York, New York 10036
 
 
Attention:
Paul T. Schnell
 
   
Timothy M. Fesenmyer
 
Telecopy No.:
 
 
Email:
 
 
If to Rimini, then to:
 
 
Rimini Street, Inc.
 
 
3993 Howard Hughes Parkway, Suite 500
 
 
Las Vegas, NV 89169
 
 
Attention:
Dan Winslow, General Counsel
   
Tom Sabol, Chief Financial Officer
 
Telephone:
 
 
Email :
 

with copies (which shall not constitute notice) to:
 
 
Wilson Sonsini Goodrich & Rosati
 
 
Professional Corporation
 
 
650 Page Mill Road
 
 
Palo Alto, California 94304
 
 
Attention:
Jon C. Avina
   
Michael S. Ringler
 
Telecopy No.:
 
 
Email:
 

If to an Investor, then to:
 
 
c/o Colbeck Capital Management, LLC
 
 
888 Seventh Avenue -29th Floor
 
 
New York, NY 10106
 
 
Attention:
Morris Beyda
 
Email:
 
 
with copies (which shall not constitute notice) to:
 
 
Aequum Law, LLC
 
 
555 Madison Avenue, 5th Floor
 
 
New York, NY  10022
 
 
Attention:  John J. Altorelli
 
 
Telephone:
 
 
Email:
 
     
 
and:
 
     
 
Covington & Burling LLP
 
 
620 Eighth Avenue
 
 
New York, New York 10018
 
 
Attention:
Donald J. Murray
 
Telephone:
 
 
Telecopier:
 
 
Email:
 
 
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If to any other Holder of any Warrant or Warrant Share, to it at its address set forth in the applicable Company’s records.
 
All notices or other communications sent in accordance with this Section 8.2, shall be deemed received on the earlier of the date of actual receipt or three business days after the deposit thereof in the mail; provided, that (i) notices sent by overnight courier service shall be deemed to have been given when received and (ii) notices by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).
 

Section 8.3            Survival .  All representations and warranties made herein or in any other document referred to herein or delivered to the Investors pursuant hereto shall be deemed to have been relied on by the Investors, notwithstanding any investigation made by an Investor or on its behalf, and shall survive the execution and delivery to the Investors hereof and of the Warrants for a period of one year from the date hereof.
 
Section   8.4          Right to Publicize .  Each Investor will have the right to publicize its investment in the Company as contemplated hereby by means of a tombstone advertisement or other customary advertisement in newspapers and other periodicals and in electronic mail transmissions and on its website, subject to each Company’s prior written consent and applicable law.
 
Section 8.5            Amendments and Waivers .  Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the Requisite Holders.  Any amendment or waiver effected in accordance with this Section 8.5 shall be binding upon the Company, its Subsidiaries and each Holder of the Warrants or Warrant Shares.
 
Section 8.6           Governing Law .  This Agreement and the other Transaction Agreements (unless expressly provided to the contrary in another Transaction Agreement in respect of such other Transaction Agreement) shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts made and to be performed in the state of New York, without giving effect to any choice or conflict of law provisions (other than Section 5-1401 of the New York General Obligations Law).
 
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Section 8.7           Consent to Jurisdiction; Service of Process and Venue .  Any legal action or proceeding with respect to this Agreement or any other Transaction Agreement may be brought in the courts of the state of New York in the county of New York or of the United States district court for the Southern District of New York, and, by execution and delivery of this Agreement, each party hereby irrevocably accepts in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts. Each party hereby irrevocably consents to the service of process out of any of the aforementioned courts and in any such action or proceeding by any means permitted by applicable Law, including by the mailing of copies thereof by registered or certified mail, postage prepaid, to the party at its address for notices as set forth in Section 8.2, such service to become effective 10 days after such mailing.  The parties agree that a final judgment in any such 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 party hereby expressly and irrevocably waives, to the fullest extent permitted by Law, any objection which it may now or hereafter have to the jurisdiction or laying of venue of any such litigation brought in any such court referred to above and any claim that any such litigation has been brought in an inconvenient forum.  To the extent that any party has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution or otherwise) with respect to itself or its property, each party hereby irrevocably waives such immunity in respect of its obligations under this Agreement and the other Transaction Agreements.
 
Section 8.8           WAIVER OF JURY TRIAL .  EACH PARTY, EACH AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING ANY RIGHTS UNDER THIS AGREEMENT OR THE OTHER TRANSACTION AGREEMENTS, OR UNDER ANY AMENDMENT, WAIVER, CONSENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT DELIVERED OR WHICH IN THE FUTURE MAY BE DELIVERED IN CONNECTION THEREWITH, OR ARISING FROM ANY FINANCING RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION, PROCEEDINGS OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  EACH PARTY CERTIFIES THAT NO OFFICER, REPRESENTATIVE, AGENT OR ATTORNEY OF ANY AGENT OR ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ANY AGENT OR ANY LENDER WOULD NOT, IN THE EVENT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM, SEEK TO ENFORCE THE FOREGOING WAIVERS.  EACH PARTY HEREBY ACKNOWLEDGES THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE AGENTS AND THE LENDERS ENTERING INTO THIS AGREEMENT.
 
Section 8.9           No Waiver .  Notwithstanding any provision herein to the contrary, nothing herein or in any Transaction Agreement shall be construed to limit, waive, amend or alter the terms and provisions of the Financing Agreement and Loan Documents or any rights or remedies available to the Investors (or Affiliate(s) thereof) (as administrative agent, collateral agent or lender thereunder) as creditor of Rimini or its Subsidiaries or Affiliates thereunder.
 
(Signature Page Follows)
 
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 IN WITNESS WHEREOF, each of the parties hereto has executed this Warrant Consent and Conversion Agreement as of the date and year first written above.
 
GP INVESTMENTS ACQUISITION CORP.
 
     
By:
   
Name:
   
Title:
   
 
[Signature Page to Warrant Agreement]
 

 IN WITNESS WHEREOF, each of the parties hereto has executed this Warrant Consent and Conversion Agreement as of the date and year first written above.
 
GP INVESTMENTS ACQUISITION CORP.
 
     
By:
/s/ ANTONIO BONCHRISTIANO
 
Name:
ANTONIO BONCHRISTIANO
 
Title:
Chief Executive Officer
 

RIMINI STREET, INC.
 
     
By:
 
Name:
   
Title:
   

CB AGENT SERVICES LLC
 
     
By:
   
Name:
   
Title:
   

[Signature Page to Warrant Agreement]
 

 IN WITNESS WHEREOF, each of the parties hereto has executed this Warrant Consent and Conversion Agreement as of the date and year first written above.

 
RIMINI STREET, INC.
   
 
By:
/s/ Seth Ravin
   
Name: Seth Ravin
   
Title: Chief Executive Officer
 
[Signature Page to Warrant Agreement]
 

 
ORIGINATION AGENT:
   
 
CB AGENT SERVICES LLC
   
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Partner & COO
   
 
[Signature Page to Warrant Agreement]
 

Schedule 2.1(b)
Investor Allocations

CB AGENT SERVICES, LLC – 9,760,279 Rimini Shares
COLBECK STRATEGIC LENDING MASTER, L.P.  – 4,609,980 Rimini Shares
 

Exhibit A
Form of Equity Warrant

[See attached.]
 

THIS WARRANT AND THE UNDERLYING SECURITIES OF THE ISSUER ISSUED UPON EXERCISE OF SUCH WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ SECURITIES ACT ”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS IN ACCORDANCE WITH APPLICABLE REGISTRATION REQUIREMENTS OR AN EXEMPTION THEREFROM.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE, TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.
 
THE UNDERLYING SECURITIES OF THE ISSUER ISSUED UPON EXERCISE OF THIS WARRANT SHALL BE ENTITLED TO REGISTRATION RIGHTS UNDER THE WARRANT CONSENT AND CONVERSION AGREEMENT EXECUTED BY THE COMPANY AND THE HOLDER HEREOF.  SUBJECT TO SUCH REGISTRATION RIGHTS, THIS WARRANT MUST BE SURRENDERED TO THE COMPANY OR ITS TRANSFER AGENT AS A CONDITION PRECEDENT TO THE SALE, TRANSFER, PLEDGE OR HYPOTHECATION OF ANY INTEREST IN ANY OF THE SECURITIES REPRESENTED HEREBY.

WARRANT TO PURCHASE SHARES OF COMMON STOCK
 
of
 
GP INVESTMENTS ACQUISITION CORP.

Dated as of [__________] , 2017
 
Void after the date specified in Section 8
 
 
Warrant to Purchase
3,630,222 1 Shares of
Common Stock
(subject to adjustment)

THIS CERTIFIES THAT, for value received, CB Agent Services LLC, or its registered assigns (collectively, the “ Holder ”), is entitled, subject to the provisions and upon the terms and conditions set forth herein, to purchase from GP Investments Acquisition Corp., a Cayman Islands exempted company limited by shares (which shall domesticate as a Delaware corporation prior to the Closing of the Mergers (each as defined in the Merger Agreement)) (the “ Company ”), shares of the Company’s common stock, par value $0.0001 per share (the “ Shares ”), in the amounts, at such times and at the price per share set forth in Section 1.  The term “ Warrant ” as used herein shall include this Warrant and any warrants delivered in substitution or exchange therefor as provided herein.  This Warrant is issued pursuant to that certain Warrant Consent and Conversion Agreement (the “ Warrant Agreement ”), dated as of [•], 2017, by and among the Holder, the Company and Rimini Street, Inc., a Nevada corporation.  Capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Warrant Agreement.
 

1 The number of Shares is based on the “Base Case” calculation in the Spreadsheet and is subject to adjustment pursuant to Section 6.3 of the Warrant Agreement.
 
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The following is a statement of the rights of the Holder and the conditions to which this Warrant is subject, and to which Holder, by acceptance of this Warrant, agrees:
 
1.               Number and Price of Shares; Exercise Period.

(a)             Number of Shares.  Upon or after the date of the issuance of this Warrant, the Holder shall have the right to purchase up to 3,630,222 Shares, as may be adjusted pursuant hereto, minus any Shares issued previously pursuant to the exercise of this Warrant, prior to (or in connection with) the expiration of this Warrant as provided in Section 8.

(b)             Exercise Price.  The exercise price per Share shall be equal to $5.34 2 (the “ Exercise Price ”), subject to adjustment as set forth herein.
 
(c)             Exercise Period.  This Warrant shall be exercisable, in whole or in part, prior to (or in connection with) the expiration of this Warrant as set forth in Section 8.
 
2.             Exercise of the Warrant.

(a)             Exercise.  The purchase rights represented by this Warrant may be exercised at the election of the Holder, in whole or in part, in accordance with Section 1, by:

(i)             the tender to the Company at its principal office (or such other office or agency as the Company may designate) of a notice of exercise in the form of Exhibit A (the “ Notice of Exercise ”), duly completed and executed by or on behalf of the Holder, together with the surrender of this Warrant; and

(ii)            the payment to the Company of an amount equal to (x) the Exercise Price multiplied by (y) the number of Shares being purchased, by (a) wire transfer or certified, cashier’s or other check acceptable to the Company and payable to the order of the Company; (b) surrender and cancellation of promissory notes or other instruments representing indebtedness of the Company to the Holder; or (c) a combination of (a) and (b).
 
(b)            Net Issue Exercise.  In lieu of exercising this Warrant pursuant to Section 2(a)(ii), if the fair market value of one Share is greater than the Exercise Price (at the date of calculation as set forth below), the Holder may elect to receive a number of Shares equal to the value of this Warrant (or of any portion of this Warrant being canceled) by surrender of this Warrant at the principal office of the Company (or such other office or agency as the Company may designate) together with a properly completed and executed Notice of Exercise reflecting such election, in which event the Company shall issue to the Holder that number of Shares computed using the following formula:
 

2 The Exercise Price is based on the “Base Case” calculation in the Spreadsheet and is subject to adjustment pursuant to Section 6.3 of the Warrant Agreement.
 
2

   
 
Where:
 
 
X
=
The number of Shares to be issued to the Holder
 
Y
=
The number of Shares purchasable under this Warrant, or, if only a portion of the Warrant is being exercised, the portion of the Warrant being canceled (at the date of such calculation)
 
A
=
The fair market value of one Share (at the date of such calculation)
 
B
=
The Exercise Price (as adjusted to the date of such calculation)
 
For purposes of the calculation above, the “fair market value” of one Share shall be, so long as a public market exists for the Company’s Shares at the time of such exercise, the volume weighted average of the closing bid and asked prices of the Shares or the closing price reported on the national securities exchange on which the Shares are listed as published in the Wall Street Journal , as applicable, for the ten (10) trading day period ending five (5) trading days prior to the date of determination of fair market value.

(c)             Stock Certificates.  The rights under this Warrant shall be deemed to have been exercised and the Shares or other securities issuable upon such exercise shall be deemed to have been issued immediately prior to the close of business on the date this Warrant is exercised in accordance with its terms, and the person entitled to receive the Shares or other securities issuable upon such exercise shall be treated for all purposes as the holder of record of such Shares as of the close of business on such date.  As promptly as reasonably practicable on or after such date, and in any event within thirty (30) days thereafter, the Company shall issue and deliver to the person or persons entitled to receive the same a certificate or certificates for that number of Shares or other securities issuable upon such exercise.  In the event that the rights under this Warrant are exercised in part and have not expired, the Company shall execute and deliver a new Warrant reflecting the number of Shares that remain subject to this Warrant.

(d)             No Fractional Shares or Scrip.  No fractional shares or scrip representing fractional shares shall be issued upon the exercise of the rights under this Warrant. In lieu of such fractional share to which the Holder would otherwise be entitled, the Company shall make a cash  payment equal to the Exercise Price multiplied by such fraction.

(e)             Conditional Exercise.  The Holder may exercise this Warrant conditioned upon (and effective immediately prior to) consummation of any transaction that would cause the expiration of this Warrant pursuant to Section 8 by so indicating in the notice of exercise.

(f)              Automatic Exercise.  If the Holder of this Warrant has not elected to exercise this Warrant prior to the Expiration Time, then this Warrant shall automatically (without any act on the part of the Holder) be exercised pursuant to Section 2(b) effective immediately prior to the expiration of the Warrant to the extent such net issue exercise would result in the issuance of Shares, unless Holder shall earlier provide written notice to the Company that the Holder desires that this Warrant expire unexercised. If this Warrant is automatically exercised, the Company shall notify the Holder of the automatic exercise as soon as reasonably practicable, and the Holder shall surrender the Warrant to the Company in accordance with the terms hereof.
 
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(g)             Reservation of Stock.  The Company agrees during the term the rights under this Warrant are exercisable to reserve and keep available from its authorized and unissued shares of common stock solely for the purpose of effecting the exercise of this Warrant such number of shares as shall from time to time be sufficient to effect the exercise of the rights under this Warrant; and if at any time the number of authorized but unissued shares of common stock shall not be sufficient for purposes of the exercise of this Warrant in accordance with its terms, without limitation of such other remedies as may be available to the Holder, the Company shall take such corporate action as may be necessary to increase its authorized and unissued shares of its common stock to a number of shares as shall be sufficient for such purposes.  The Company represents and warrants that all shares that may be issued upon the exercise of this Warrant will, when issued in accordance with the terms hereof, be validly issued, fully paid and non-assessable.
 
3.               Replacement of the Warrant.  Subject to the receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and substance to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, the Company at the expense of the Holder shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor and amount.
 
4.               Transfer of the Warrant.

(a)             Warrant Register.  The Company shall maintain a register (the “ Warrant Register ”) containing the name and address of the Holder or Holders. Until this Warrant is transferred on the Warrant Register in accordance herewith, the Company may treat the Holder as shown on the Warrant Register as the absolute owner of this Warrant for all purposes, notwithstanding any notice to the contrary.  Any Holder of this Warrant (or of any portion of this Warrant) may change its address as shown on the Warrant Register by written notice to the Company requesting a change.

(b)             Warrant Agent.  The Company may appoint an agent for the purpose of maintaining the Warrant Register referred to in Section 4(a), issuing the Shares or other securities then issuable upon the exercise of the rights under this Warrant, exchanging this Warrant, replacing this Warrant or conducting related activities.
 
(c)             Transferability of the Warrant. Subject to the (i) provisions of this Warrant with respect to compliance with the Securities Act, including in connection with a registered offering pursuant to an effective registration statement (including pursuant to Section 7.5 of the Warrant Agreement) and (ii) limitations on assignments and transfers, including compliance with the restrictions on transfer set forth in Section 5, title to this Warrant may be transferred by endorsement (by the transferor and the transferee executing the assignment form attached as Exhibit A-2 (the “ Assignment Form ”)) and delivery in the same manner as a negotiable instrument transferable by endorsement and delivery.
 
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(d)             Exchange of the Warrant upon a Transfer.  On surrender of this Warrant (and a properly endorsed Assignment Form) for exchange, subject to the provisions of this Warrant with respect to compliance with the Securities Act and limitations on assignments and transfers contained herein, the Company shall issue to or on the order of the Holder a new warrant or warrants of like tenor, in the name of the Holder or as the Holder (on payment by the Holder of any applicable transfer taxes) may direct, for the number of Shares or other securities issuable upon exercise hereof, and the Company shall register any such transfer upon the Warrant Register. Subject to the registration rights contained in Section 7.5 of the Warrant Agreement, this Warrant (and the Shares or other securities issuable upon exercise of the rights under this Warrant) must be surrendered to the Company or its warrant or transfer agent, as applicable, as a condition precedent to the sale, pledge, hypothecation or other transfer of any interest in any of the securities represented hereby.
 
(e)             Taxes.  In no event shall the Company be required to pay any tax which may be payable in respect of any transfer involved in the issue and delivery of any certificate in a name other than that of the Holder, and the Company shall not be required to issue or deliver any such certificate unless and until the person or persons requesting the issue thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid or is not payable.

5.               Restrictions on Transfer of the Warrant and Shares; Compliance with Securities Laws.  By acceptance of this Warrant, the Holder agrees to comply with the following:

(a)              Restrictions on Transfers.  Any transfer of this Warrant or the Shares (the “ Securities ”) must be in compliance with all applicable federal and state securities laws.  The Holder agrees not to make any sale, assignment, transfer, pledge or other disposition (a “ Transfer ”) of all or any portion of the Securities, or any beneficial interest therein, unless and until the transferee thereof has agreed in writing for the benefit of the Company to take and hold such Securities subject to, and to be bound by, the terms and conditions set forth in this Warrant to the same extent as if the transferee were the original Holder hereunder, unless
 
(i)             there is then in effect a registration statement under the Securities Act (including pursuant to Section 7.5 of the Warrant Agreement) covering such proposed disposition and such disposition is made in accordance with such registration statement; or
 
(ii)            (A) such Holder shall have furnished the Company with a description of the manner and circumstances of the proposed disposition, (B) the transferee shall have confirmed to the Company in writing that the Securities are being acquired (i) solely for the transferee’s own account and not as a nominee for any other party, (ii) for investment and (iii) subject to the provisions of Section 7.5 of the Warrant Agreement, not with a view toward distribution or resale and (C) if reasonably requested by the Company, such Holder shall have furnished the Company, at the Company’s expense, with an opinion of counsel, reasonably satisfactory to the Company, to the effect that such disposition will not require registration of such Securities under the Securities Act prior to the registration contemplated by the Section 7.5 of the Warrant Agreement.  It is agreed that the Company will not require opinions of counsel for transactions made pursuant to Rule 144.
 
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(b)             Permitted Transfers.  Except in the case of an offering pursuant to an effective registration statement under the Securities Act (including pursuant to Section 7.5 of the Warrant Agreement), subject to Section 5(a), the Holder may not Transfer the Warrant (or any part thereof) to any party which is a Competitor of the Company. For purposes of this Section 5(b), “Competitor” shall mean any entity which is an “Ineligible Assignee” under the terms of the Financing Agreement.

(c)             Investment Representation Statement.  Unless the rights under this Warrant are exercised in accordance with either (i) an effective registration statement under the Securities Act that includes the Shares with respect to which the Warrant was exercised (including pursuant to Section 7.5 of the Warrant Agreement) or (ii) Rule 144 promulgated under the Securities Act, it shall be a condition to any exercise of the rights under this Warrant that the Holder shall have confirmed to the satisfaction of the Company, in writing substantially in the form of Exhibit A-1, the matters set forth such Exhibit A-1.

(d)             Securities Law Legend. Subject to the provisions of Section 7.4 of the Warrant Agreement, the Securities shall (unless otherwise permitted by the provisions of this Warrant or the Warrant Agreement) be stamped or imprinted with a legend substantially similar to the following (in addition to any legend required by state securities laws):

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ SECURITIES ACT ”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS IN ACCORDANCE WITH APPLICABLE REGISTRATION REQUIREMENTS OR AN EXEMPTION THEREFROM.  THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

THE SECURITIES REPRESENTED HEREBY SHALL BE ENTITLED TO REGISTRATION RIGHTS UNDER THE WARRANT CONSENT AND CONVERSION AGREEMENT EXECUTED BY THE COMPANY AND THE HOLDER HEREOF.  SUBJECT TO SUCH REGISTRATION RIGHTS, THIS CERTIFICATE MUST BE SURRENDERED TO THE COMPANY OR ITS TRANSFER AGENT AS A CONDITION PRECEDENT TO THE SALE, TRANSFER, PLEDGE OR HYPOTHECATION OF ANY INTEREST IN ANY OF THE SECURITIES REPRESENTED HEREBY.
 
6

(e)             Instructions Regarding Transfer Restrictions.  The Holder consents to the Company making a notation on its records and giving instructions to any transfer agent in order to implement the restrictions on transfer established in this Section 5.

(f)              Removal of Legend.  The legend referring to federal and state securities laws identified in Section 5(d) stamped on a certificate evidencing the Shares and the stock transfer instructions and record notations with respect to such securities shall be removed and the Company shall issue a certificate without such legend to the holder of such securities if (i) such securities are registered under the Securities Act or sold pursuant to a public sale (including pursuant to Section 7.5 of the Warrant Agreement) , or (ii) such holder provides the Company with an opinion of counsel reasonably acceptable to the Company to the effect that a sale or transfer of such securities may be made without registration or qualification prior to the registration contemplated by the Section 7.5 of the Warrant Agreement.

(g)             No Transfers to Bad Actors; Notice of Bad Actor Status Except pursuant to an effective registration statement under the Securities Act (including pursuant to Section 7.5 of the Warrant Agreement) or Rule 144 promulgated under the Securities Act, the Holder agrees not to sell, assign, transfer, pledge or otherwise dispose of any securities of the Company, or any beneficial interest therein, to any person (other than the Company) unless and until the proposed transferee confirms to the reasonable satisfaction of the Company that neither the proposed transferee nor any of its directors, executive officers, other officers that may serve as a director or officer of any company in which it  invests, general partners or managing members nor any person that would be deemed a beneficial owner of those securities (in accordance with Rule 506(d) of the Securities Act) is subject to any of the “bad actor” disqualifications described in Rule 506(d)(1)(i) through (viii) under the Securities Act, except as set forth in Rule 506(d)(2)(ii) or (iii) or (d)(3) under the Securities Act and disclosed, reasonably in advance of the transfer, in writing in reasonable detail to the Company.  The Holder will promptly notify the Company in writing if the Holder or, to the Holder’s knowledge, any person specified in Rule 506(d)(1) under the Securities Act becomes subject to any of the “bad actor” disqualifications described in Rule 506(d)(1)(i) through (viii) under the Securities Act.

6.               Adjustments.  Subject to the expiration of this Warrant pursuant to Section 8, the number and kind of shares purchasable hereunder and the Exercise Price therefor are subject to adjustment from time to time, as follows:
 
(a)             Split-Ups .  If after the date hereof, and subject to the provisions of Section 2(d) hereof, the number of outstanding Shares is increased by a share dividend or capitalization payable in Shares, or by a split-up of Shares or other similar event, then, on the effective date of such share dividend, split-up or similar event, the number of Shares or other securities issuable on exercise of each Warrant shall be increased in proportion to such increase in the outstanding Shares. A rights offering to holders of the Shares entitling holders to purchase Shares at a price less than the “fair market value” (as defined below) shall be deemed a share dividend of a number of Shares equal to the product of (i) the number of Shares actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for the Shares) multiplied by (ii) one (1) minus the quotient of (x) the price per Share paid in such rights offering divided by (y) the fair market value. For purposes of this Section 6(a), (I) if the rights offering is for securities convertible into or exercisable for Shares, in determining the price payable for Shares, there shall be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (II) “fair market value” shall be the volume weighted average of the closing bid and asked prices of the Shares or the closing price reported on the national securities exchange on which the Shares are listed as published in the Wall Street Journal , as applicable, for the ten (10) trading day period ending on the trading day prior to the first date on which the Shares trade on such exchange or in the applicable market, regular way, without the right to receive such rights.
 
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(b)             Extraordinary Dividends.  If the Company, at any time prior to the Expiration Time, shall pay a dividend or make a distribution in cash, securities or other assets to the holders of the Shares on account of such Shares (or other shares of the Company’s capital stock into which the Warrants are convertible), other than (i) as described in Section 6(a) above or (ii) Ordinary Cash Dividends (as defined below) (any such non-excluded event being referred to herein as an “ Extraordinary Dividend ”), then the Exercise Price shall be decreased, effective immediately after the effective date of such Extraordinary Dividend, by the amount of cash and/or the fair market value (as determined in good faith by the Board of Directors) of any securities or other assets paid on each Share in respect of such Extraordinary Dividend. For purposes of this Section 6(b), “Ordinary Cash Dividends” means any cash dividend or cash distribution which, when combined on a per Share basis, with the per Share amounts of all other cash dividends and cash distributions paid on the Shares during the 365-day period ending on the date of declaration of such dividend or distribution (as adjusted to appropriately reflect any of the events referred to in other provisions of this Section 6 and excluding cash dividends or cash distributions that resulted in an adjustment to the Exercise Price or to the number of Shares or other securities issuable on exercise of each Warrant) does not exceed $0.50.
 
(c)             Aggregation of Shares.   If after the date hereof, and subject to the provisions of Section 2(d) hereof, the number of outstanding Shares is decreased by a consolidation, combination, reverse share split, reclassification of Shares or other similar event, then, on the effective date of such consolidation, combination, reverse share split, reclassification or similar event, the number of Shares issuable on exercise of each Warrant shall be decreased in proportion to such decrease in outstanding Shares.
 
(d)             Reorganizations, etc.   In case of any reclassification or reorganization of, or other similar event with respect to, the outstanding Shares (other than a change under Section 6(a), Section 6(b) or Section 6(c) hereof or that solely affects the par value of such Shares), or in the case of any merger or consolidation of the Company with or into another corporation (other than a Change of Control or a consolidation or merger in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the outstanding Shares), or in the case of any sale or conveyance to another corporation or entity of the assets or other property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holders shall thereafter have the right to receive, on the basis and upon the terms and conditions specified in the Warrants and in lieu of the Shares or other securities of the Company immediately theretofore issuable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger, consolidation or similar event, or upon a dissolution following any such sale or transfer, that the Holder would have been entitled to receive if such Holder had exercised his, her or its Warrant(s) immediately prior to such event (the “ Alternative Issuance ” ); provided , however , that (i) if the holders of the Shares were entitled to exercise a right of election as to the kind or amount of securities, cash or other assets receivable upon any such consolidation, merger or other event, then the kind and amount of securities, cash or other assets constituting the Alternative Issuance for which each Warrant shall become exercisable shall be deemed to be the weighted average of the kind and amount received per share by the holders of the Shares in such consolidation or merger that affirmatively make such election, and (ii) if a tender, exchange or redemption offer shall have been made to and accepted by the holders of the Shares under circumstances in which, upon completion of such tender or exchange offer, the maker thereof, together with members of any group (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) of which such maker is a part, and together with any affiliate or associate of such maker (within the meaning of Rule 12b-2 under the Exchange Act) and any members of any such group of which any such affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under the Exchange Act) more than 50% of the outstanding Shares, each Holder shall be entitled to receive as the Alternative Issuance, the highest amount of cash, securities or other property to which such Holder would actually have been entitled as a shareholder if such Holder had exercised its Warrant(s) prior to the expiration of such tender or exchange offer, accepted such offer and all of the Shares held by such Holder had been purchased pursuant to such tender or exchange offer, subject to adjustments (from and after the consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in this Section 6.  The provisions of this Section 6(d) shall similarly apply to successive reclassifications, reorganizations, mergers or consolidations, sales or other transfers or similar events. In no event will the Exercise Price be reduced to less than the par value per Share (or other security) issuable upon exercise of such Warrant.  In the case of any event described in this Section 6(d), appropriate adjustment (as determined in good faith by the Board of Directors of the successor corporation) shall be made in the application of the provisions of this Warrant with respect to the rights and interests of the Holder after any such event to the end that the provisions of this Warrant shall be applicable after the event, as near as reasonably may be, in relation to any shares or other securities deliverable after that event upon  the exercise of this Warrant.
 
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(e)             Adjustments in Exercise Price.  Whenever the number of Shares or other securities issuable upon the exercise of the Warrants is adjusted as provided in Section 6(a) or Section 6(c) above, the Exercise Price shall be adjusted (to the nearest cent) by multiplying the Exercise Price immediately prior to such adjustment by a fraction (x) the numerator of which shall be the number of Shares or other securities issuable upon the exercise of the Warrants immediately prior to such adjustment, and (y) the denominator of which shall be the number of Shares or other securities so issuable immediately thereafter.
 
(f)              Other Events.   In case any event shall occur affecting the Company as to which none of the provisions of preceding subsections of this Section 6 are strictly applicable, but which would require an adjustment to the terms of the Warrants in order to (i) avoid an adverse impact on the Warrants or (ii) effectuate the intent and purpose of this Section 6, then, in each such case, the Company shall appoint a firm of independent public accountants, investment bank or other appraisal firm of recognized national standing, which shall give its opinion as to whether any adjustment to the rights represented by the Warrants is necessary to effectuate the intent and purpose of this Section 6 and, if they determine that an adjustment is necessary, the terms of such adjustment.  The Company shall adjust the terms of the Warrants in a manner that is consistent with any adjustment recommended in such opinion.  The rights of each Holder contained in this Warrant and in the Warrant Agreement (including, without limitation, those set forth in Section 7.5 of the Warrant Agreement) with respect to the Warrant Shares in all cases shall relate to any securities, assets or other property received by a Holder pursuant to the provisions of this Section 6.
 
9

(g)             Notice of Adjustments.  Upon any adjustment in accordance with this Section 6, the Company shall give notice thereof to each Holder, which notice shall state the event giving rise to the adjustment, the Exercise Price as adjusted and the number of securities or other property purchasable upon the exercise of the rights under this Warrant, setting forth in reasonable detail the method of calculation of each.  The Company shall, upon the written request of any Holder, furnish or cause to be furnished to such Holder a certificate setting forth (i) such adjustments, (ii) the Exercise Price at the time in effect and (iii) the number of securities and the amount, if any, of other property that at the time would be received upon exercise of this Warrant.
 
7.              Notification of Certain Events .  In case the Company shall, any time prior to the exercise, redemption or expiration of this Warrant, authorize to (a) pay any dividend to the holders of Shares or to make any other distribution to the holders of Shares, (b) effect any reclassification or recapitalization of Shares (other than a reclassification involving only the subdivision, or combination, of outstanding Shares), (c) effect any capital reorganization or (d) effect any Change of Control of the Company, then, in each such case, the Company shall give to each Holder a notice of such proposed action, which shall specify the date on which a record is to be taken for the purposes of such stock dividend, distribution or rights, or the date on which such dividend, reclassification, reorganization, Change of Control is to take place and the date of participation therein by the holders of Shares, if any such date is to be fixed and shall also set forth such facts with respect thereto as shall be reasonably necessary to indicate the effect of such action on Shares, if any (including, without limitation, a copy of a term sheet, letter of  intent or other writing setting forth in reasonable detail all material terms of the proposed action), and the number and kind of any other Shares, and the purchase price or prices thereof, after giving effect to any adjustment, if any, which will be required as a result of such action.  Such notice shall be so given in the case of any action covered by clause (a) above at least 20 days prior to the record date for determining holders of Shares for purposes of such action, and in the case of any other such action, at least 20 days prior to the date of the taking of such proposed action or the date of participation therein by the holders of Shares, as applicable, whichever shall be the earlier.  The Company shall promptly provide to the Holder of this Warrant such additional information concerning the terms of such action as may reasonably be required by the Holder.  The notice provisions set forth in this Section may be shortened or waived prospectively or retrospectively by the consent of the Holder of this Warrant.
 
10

Change of Control ” means with respect to the Company, (i) the consummation of any transaction or series of related transactions (including, without limitation, any stock acquisition, reorganization, merger or consolidation, but excluding any sale of stock for capital raising purposes and any transaction effected primarily for purposes of changing the Company’s jurisdiction of incorporation) the result of which is that any entity (or group of entities) which is not an equityholder of the Company or any affiliate thereof becomes, directly or indirectly, the beneficial owner (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended or any similar provision) of a majority of the voting power and economic interest in the Company, or (ii) a sale, lease or other disposition of all or substantially all of the assets of the Company and its subsidiaries taken as a whole by means of any transaction or series of related transactions, except where such sale, lease or other disposition is to a wholly-owned subsidiary of the Company, an equityholder (or group of equityholders) of the Company or any affiliate thereof.

8.               Expiration of the Warrant.  This Warrant shall expire and shall no longer be exercisable as of the earlier of (the “ Expiration Time ”):
 
(a)             5:00 p.m., Pacific time, on June 24, 2026; or
 
(b)             a Change of Control.
 
9.               No Rights as a Stockholder.  Nothing contained herein shall entitle the Holder to any rights as a stockholder of the Company or to be deemed the holder of any securities that may at any time be issuable on the exercise of the rights hereunder for any purpose nor shall anything contained herein be construed to confer upon the Holder, as such, any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value or change of stock to no par value, consolidation, merger, conveyance or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or any other rights of a stockholder of the Company until the rights under the Warrant shall have been exercised and the Shares purchasable upon exercise of the rights hereunder shall have become deliverable as provided herein.
 
10.            Representations and Warranties of the Holder.  By acceptance of this Warrant, the Holder represents and warrants to the Company as follows:

(a)             No Registration.  Subject to Section 7.5 of the Warrant Agreement, the Holder understands that the Securities have not been registered under the Securities Act by reason of a specific exemption from the registration provisions of the Securities Act, the availability of which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Holder’s representations as expressed herein or otherwise made pursuant hereto.

(b)             Investment Intent.  The Holder is acquiring the Securities for investment for its own account, not as a nominee or agent, and, subject to the provisions of Section 7.5 of the Warrant Agreement, not with a view to, or for resale in connection with, any distribution thereof. The Holder has no present intention of selling, granting any participation in, or otherwise distributing the Securities, nor does it have any contract, undertaking, agreement or arrangement for the same.
 
11

(c)             Investment Experience.  The Holder has substantial experience in evaluating and investing in private placement transactions of securities in companies similar to the Company, and has such knowledge and experience in financial or business matters so that it is capable of evaluating the merits and risks of its investment in the Company and protecting its own interests.

(d)             Speculative Nature of Investment.  The Holder understands and acknowledges that its investment in the Company is highly speculative and involves substantial risks.  The Holder can bear the economic risk of its investment and is able, without impairing its financial condition, to hold the Securities for a substantial period of time and to suffer a complete loss of its investment.

(e)             Access to Data. The Holder has had an opportunity to ask questions of officers of the Company, which questions were answered to its satisfaction.  The Holder understands that any such discussions, as well as any information issued by the Company, were intended to describe certain aspects of the Company’s business and prospects, but were not necessarily a thorough or exhaustive description.  The Holder acknowledges that any business plans prepared by the Company have been, and continue to be, subject to change and that any projections included in such business plans or otherwise are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results.

(f)              Accredited Investor.  The Holder is an “accredited investor” within the meaning of Regulation D, Rule 501(a), promulgated by the Securities and Exchange Commission and agrees to submit to the Company such further assurances of such status as may be reasonably requested by the Company.  The Holder has furnished or made available any and all information requested by the Company or otherwise necessary to satisfy any applicable verification requirements as to its “accredited investor” status.  Any such information is true, correct and complete.

(g)             Residency.  The residency of the Holder (or, in the case of a partnership or corporation, such entity’s principal place of business) is correctly set forth on the signature page hereto.

 
(h)             Restrictions on Resales.  The Holder acknowledges that the Securities must be held until subsequently registered under the Securities Act (including pursuant to Section 7.5 of the Warrant Agreement) or an exemption from such registration is available.

 
(i)              Brokers and Finders.  The Holder has not engaged any brokers, finders or agents in connection with the Securities, and the Company has not incurred nor will incur, directly or indirectly, as a result of any action taken by the Holder, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with the Securities.
 

(j)              Legal Counsel.  The Holder has had the opportunity to review this Warrant, the exhibits and schedules attached hereto and the transactions contemplated by this Warrant with its own legal counsel.  The Holder is not relying on any statements or representations of the Company or its agents for legal advice with respect to this investment or the transactions contemplated by this Warrant.
 
12

(k)             Tax Advisors.  The Holder has reviewed with its own tax advisors the U.S. federal, state and local and non-U.S. tax consequences of this investment and the transactions contemplated by this Warrant. With respect to such matters, the Holder relies solely on any such advisors and not on any statements or representations of the Company or any of its agents, written or oral.  The Holder understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment and the transactions contemplated by this Warrant.

(l)              No “Bad Actor” Disqualification.  Neither (i) the Holder, (ii) any of its directors, executive officers, other officers that may serve as a director or officer of any company in which it  invests, general partners or managing members, nor (iii) any beneficial owner of any of the Company’s voting equity securities (in accordance with Rule 506(d) of the Securities Act) held by the Holder is subject to any of the “bad actor” disqualifications described in Rule 506(d)(1)(i) through (viii) under the Securities Act, except as set forth in Rule 506(d)(2)(ii) or (iii) or (d)(3) under the Securities Act and disclosed, reasonably in advance of the acceptance of this Warrant, in writing in reasonable detail to the Company.

11.            Miscellaneous.

(a)             Expenses, Transfer Taxes and Other Charges .  The Company shall pay any and all expenses, transfer taxes and other charges, including all costs associated with the preparation, issue and delivery of certificates and Shares, that are incurred by the Company in respect of the issuance or delivery of Shares upon exercise or conversion of this Warrant pursuant to Section 2, or in connection with any transfer, division or combination of the Warrant pursuant to Section 5 or Section 6.
 
(b)             Amendments.  Except as expressly provided herein, neither this Warrant nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument referencing this Warrant and signed by the Company and the Holder.
 
(c)            Waivers.  No waiver of any single breach or default shall be deemed a waiver of any other breach or default theretofore or thereafter occurring.
 
(d)             Notices.  All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, or otherwise delivered by hand, messenger or courier service addressed:

(i)             if to the Holder, to the Holder at the Holder’s address as shown in the Company’s records, as may be updated in accordance with the provisions hereof, or until any such Holder so furnishes an address to the Company, then to and at the address of the last holder of this Warrant for which the Company has contact information in its records; or
 
13

(ii)            if to the Company, to the attention of the President or Chief Financial Officer of the Company at the Company’s address as shown on the signature page hereto, or at such other current address as the Company shall have furnished to the Holder.

Each such notice or other communication shall for all purposes of this Warrant be treated as effective or having been given (i) if delivered by hand, messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight prepaid, specifying next-business-day delivery, one business day after deposit with the courier), or (ii) if sent via mail, at the earlier of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid. In the event of any conflict between the Company’s books and records and this Warrant or any notice delivered hereunder, the Company’s books and records will control absent fraud or error.

(e)             Governing Law.  This Warrant and all actions arising out of or in connection with this Warrant shall be governed by and construed in accordance with the laws of the State of New York, without regard to the conflicts of law provisions of the State of New York, or of any other state.
 
(f)              Jurisdiction and Venue.  Each of the Holder and the Company irrevocably consents to the exclusive jurisdiction and venue of any court within New York County, State of New York, in connection with any matter based upon or arising out of this Warrant or the matters contemplated herein, and agrees that process may be served upon them in any manner authorized by the laws of the State of New York for such persons.
 
(g)            Titles and Subtitles.  The titles and subtitles used in this Warrant are used for convenience only and are not to be considered in construing or interpreting this Warrant.  All references  in this Warrant to sections, paragraphs and exhibits shall, unless otherwise provided, refer to sections and paragraphs hereof and exhibits attached hereto.
 
(h)             Severability.  If any provision of this Warrant becomes or is declared by a court  of competent jurisdiction to be illegal, unenforceable or void, portions of such provision, or such  provision in its entirety, to the extent necessary, shall be severed from this Warrant, and such illegal, unenforceable or void provision shall be replaced with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, unenforceable or void provision. The balance of this Warrant shall be enforceable in accordance with its terms.
 
(i)              Waiver of Jury Trial.  EACH OF THE HOLDER AND THE COMPANY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATED TO THIS WARRANT.
 
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(j)              Saturdays, Sundays and Holidays.  If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or U.S. federal holiday, then such action may be taken or such right may be exercised on the next succeeding day that is not a Saturday, Sunday or U.S. federal holiday.

(k)             Rights and Obligations Survive Exercise of the Warrant.  Except as otherwise provided herein, the rights and obligations of the Company and the Holder under this Warrant shall survive exercise of this Warrant.

(l)              Entire Agreement.  Except as expressly set forth herein or therein, this Warrant (including the exhibits attached hereto) and the Warrant Agreement constitute the entire agreement and understanding of the Company and the Holder with respect to the subject matter hereof and supersede all prior agreements and understandings relating to the subject matter hereof.

( signature page follows )
 
15

 
The Company and the Holder sign this Warrant as of the date stated on the first page.

 
GP INVESTMENTS ACQUISITION CORP.
     
 
By:
 
 
Name:
 
 
Title:
 
     
 
Address:
   
 
150 E. 52nd Street, Suite 5003
 
New York, NY 10022
 

The Company and the Holder sign this Warrant as of the date stated on the first page.
 
AGREED AND ACKNOWLEDGED,

CB AGENT SERVICES LLC

By:
 Name:
 Title:
 
Address:

888 Seventh Avenue
29th Floor
New York, NY 10106
 

EXHIBIT A
NOTICE OF EXERCISE
 
TO:
GP Investments Acquisition Corp. (the “ Company ”)
 
Attention:
[President]
 
Exercise. The undersigned elects to purchase the following pursuant to the terms of the attached warrant:
 
Number of shares:
 
   
Type of security:
 
 
Method of Exercise. The undersigned elects to exercise the attached warrant pursuant to:

A cash payment or cancellation of indebtedness, and tenders herewith payment of the purchase price for such shares in full, together with all applicable transfer taxes, if any.
   
The net issue exercise provisions of Section 2(b) of the attached warrant.
 
Conditional Exercise. Is this a conditional exercise pursuant to Section 2(e):
 
Yes
No
 
 

 
If “Yes,” indicate the applicable condition:
 
Stock Certificate. Please issue a certificate or certificates representing the shares in the name of:
 
The undersigned
 
     
Other—Name:
 
     
Address:
 
 
Unexercised Portion of the Warrant. Please issue a new warrant for the unexercised portion of the attached warrant in the name of:
 
The undersigned
 
     
Other—Name:
 
     
Address:
 
 
Not applicable
 

(1)
Investment Intent. The undersigned represents and warrants that the aforesaid shares are being acquired for investment for its own account, not as a nominee or agent, and, subject to the provisions of Section 7.5 of the Warrant Agreement, not with a view to, or for resale in connection with, the distribution thereof, and that the undersigned has no present intention of selling, granting any participation in, or otherwise distributing the shares, nor does it have any contract, undertaking, agreement or arrangement for the same.

(2)
Investment Representation Statement. The undersigned has executed, and delivers herewith, an Investment Representation Statement in a form substantially similar to the form attached to the warrant as Exhibit A-1.
 
   
 
( Print name of the warrant holder )
   
 
( Signature )
   
 
( Name and title of signatory, if applicable )
   
 
( Date )
 
(Signature Page to Notice of Exercise)
 

EXHIBIT A-1
INVESTMENT REPRESENTATION STATEMENT
 
INVESTOR:
  
     
COMPANY:
GP INVESTMENTS ACQUISITION CORP.
     
SECURITIES:
THE WARRANT ISSUED ON [•], 2017 (THE “ WARRANT ”) AND THE SECURITIES ISSUED OR ISSUABLE UPON EXERCISE THEREOF
     
DATE:
   
 
In connection with the purchase or acquisition of the above-listed Securities, the undersigned Investor represents and warrants to, and agrees with, the Company as follows:
 
1.              No Registration.  Subject to Section 7.5 of the Warrant Agreement (as defined in the Warrant), the Investor understands that the Securities have not been registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act, the availability of which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Investor’s representations as expressed herein or otherwise made pursuant hereto.
 
2.               Investment Intent.  The Investor is acquiring the Securities for investment for its own account, not as a nominee or agent, and, subject to the provisions of Section 7.5 of the Warrant Agreement, not with a view to, or for resale in connection with, any distribution thereof. The Investor has no present intention of selling, granting any participation in, or otherwise distributing the Securities, nor does it have any contract, undertaking, agreement or  arrangement for the same.
 
3.               Investment Experience.  The Investor has substantial experience in evaluating and investing in private placement transactions of securities in companies similar to the Company, and has such knowledge and experience in financial or business matters so that it is capable of evaluating the merits and risks of its investment in the Company and protecting its own interests.
 
4.               Speculative Nature of Investment.  The Investor understands and acknowledges that its investment in the Company is highly speculative and involves substantial risks.  The Investor can bear the economic risk of its investment and is able, without impairing its financial condition, to hold the Securities for a substantial period of time and to suffer a complete loss of its investment.
 

5.              Access to Data.  The Investor has had an opportunity to ask questions of officers of the Company, which questions were answered to its satisfaction.  The Investor understands that any such discussions, as well as any information issued by the Company, were intended to describe certain aspects of the Company’s business and prospects, but were not necessarily a thorough or exhaustive description.  The Investor acknowledges that any business plans prepared by the Company have been, and continue to be, subject to change and that any projections included in such business plans or otherwise are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results.
 
6.               Accredited Investor.  The Investor is an “accredited investor” within the meaning of Regulation D, Rule 501(a), promulgated by the Securities and Exchange Commission and agrees to submit to the Company such further assurances of such status as may be reasonably requested by the Company. The Investor has furnished or made available any and all information requested by the Company or otherwise necessary to satisfy any applicable verification requirements as to its “accredited investor” status. Any such information is true, correct and complete.
 
7.               Residency.  The residency of the Investor (or, in the case of a partnership or corporation, such entity’s principal place of business) is correctly set forth on the signature page hereto.
 
8.               Restrictions on Resales.  The Investor acknowledges that the Securities must be held until subsequently registered under the Securities Act (including pursuant to Section 7.5 of the Warrant Agreement) or an exemption from such registration is available.
 
9.               Brokers and Finders.  The Investor has not engaged any brokers, finders or agents in connection with the Securities, and the Company has not incurred nor will incur, directly or indirectly, as a result of any action taken by the Investor, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with the Securities.
 
10.             Legal Counsel.  The Investor has had the opportunity to review the Warrant, the exhibits and schedules attached thereto and the transactions contemplated by the Warrant with its own legal counsel.  The Investor is not relying on any statements or representations of the Company or its agents for legal advice with respect to this investment or the transactions contemplated by the Warrant.
 
11.            Tax Advisors.  The Investor has reviewed with its own tax advisors the U.S. federal, state and local and non-U.S. tax consequences of this investment and the transactions contemplated by the Warrant.  With respect to such matters, the Investor relies solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral.  The Investor understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated by the Warrant.
 

12.             No “Bad Actor” Disqualification.  Neither (i) the Investor, (ii) any of its directors, executive officers, other officers that may serve as a director or officer of any company in which it  invests, general partners or managing members, nor (iii) any beneficial owner of any of the Company’s voting equity securities (in accordance with Rule 506(d) of the Securities Act) held by the Investor is subject to any of the “bad actor” disqualifications described in Rule 506(d)(1)(i) through (viii) under the Securities Act, except as set forth in Rule 506(d)(2)(ii) or (iii) or (d)(3) under the Securities Act and disclosed, reasonably in advance of the purchase or acquisition of the Securities, in writing in reasonable detail to the Company.

( signature page follows )
 

The Investor is signing this Investment Representation Statement on the date first written above.


 
INVESTOR
   
   
 
( Print name of the investor )
   
   
   
 
( Signature )
   
   
   
 
( Name and title of signatory, if applicable )
   
   
   
 
( Street address )
   
   
   
 
( City, state and ZIP )
 
(Signature Page to Investment Representation Statement)
 

EXHIBIT A-2
ASSIGNMENT FORM

ASSIGNOR:
   
     
COMPANY: GP INVESTMENTS ACQUISITION CORP.  
     
WARRANT:
THE WARRANT TO PURCHASE SHARES OF COMMON STOCK ISSUED ON [•], 2017 (THE “ WARRANT ”)
 
     
DATE:
     
 
(1)
Assignment.  The undersigned registered holder of the Warrant (“ Assignor ”) assigns and transfers to the assignee named below (“ Assignee ”) all of the rights of Assignor under the Warrant, with respect to the number of shares set forth below:
 
 
Name of Assignee:
   
 
Address of Assignee:
   
       
 
Number of Shares Assigned:
   
 
and does irrevocably constitute and appoint____________ as attorney to make such transfer on the books of GP Investments Acquisition Corp., maintained for the purpose, with full power of substitution in the premises.
 
(2)
Obligations of Assignee.  Assignee agrees to take and hold the Warrant and any shares of stock to be issued upon exercise of the rights thereunder (the “ Securities ”) subject to, and to be bound by, the terms and conditions set forth in the Warrant to the same extent as if Assignee were the original holder thereof.
 
(3)
Investment Intent. Assignee represents and warrants that the Securities are being acquired for investment for its own account, not as a nominee or agent, and, subject to the provisions of Section 7.5 of the Warrant Agreement, not with a view to, or for resale in connection with, the distribution thereof, and that Assignee has no present intention of selling, granting any participation in, or otherwise distributing shares, not does it have any contract, undertaking, agreement or arrangement for the same.
 
(4)
Investment Representation Statement. Assignee has executed, and delivers herewith, an Investment Representation Statement in a form substantially similar to the form attached to the Warrant as Exhibit A-1.

( signature page follows )
 

Assignor and Assignee are signing this Assignment Form on the date first set forth above.
 
ASSIGNOR
 
ASSIGNEE
 
 
 
( Print   name of Assignor )
 
( Print name of Assignee )
 
 
 
( Signature of Assignor )
 
( Signature of Assignee )
 
 
 
( Print name of signatory, if applicable )
 
( Print name of signatory, if applicable )
 
 
 
( Print title of signatory, if applicable )
 
( Print title of signatory, if applicable )
 
 
 
Address:
 
Address:
 
 
 
 
 
 
 
(Signature Page to Assignment)
 
 


Exhibit 5.1

Form of Opinion
[Letterhead of Maples and Calder]

GP Investments Acquisition Corp.
PO Box 309
Ugland House
Grand Cayman
KY1-1104
Cayman Islands

[●] 2017

Dear Sirs
GP Investments Acquisition Corp. (the “Company”)

We have acted as Cayman Islands counsel to the Company to provide this legal opinion in connection with the Company’s registration statement on Form S-1, including all amendments or supplements thereto, filed with the United States Securities and Exchange Commission (the “ Commission ”) under the United States Securities Act of 1933 (the “ Act ”), as amended, (File No. 333-203500) (including its exhibits, the “ Registration Statement ”) which related to the offering and sale of (i) up to 15,000,000 units (the “ Units ”), each Unit consisting of one ordinary share of the Company, par value $0.0001 per share (each an “ Ordinary Share ” and together, the “ Ordinary Shares ”), and one-half of one warrant to purchase one Ordinary Share (the “ Warrants ”); (ii) up to 2,250,000 Units (the “ Over-Allotment Units ”), which the underwriters, for whom Citigroup Global Markets Inc. acted as representative (“ Representative ”), had a right to purchase from the Company to cover over allotments, if any; (iii) all Ordinary Shares, and all Warrants issued as part of the Units and the Over-Allotment Units; and (iv) all Ordinary Shares that may be issued upon exercise of the Warrants included in the Units and the Over-Allotment Units.  This opinion is given in accordance with the terms of the Legal Matters section of the Registration Statement.

1
Documents Reviewed

We have reviewed originals, copies, drafts or conformed copies of the following documents:

1.1
the Certificate of Incorporation dated 28 January 2015 and the Amended and Restated Memorandum and Articles of Association of the Company as adopted on 7 May 2015 as further amended by a special resolution passed on 23 May 2017 (the “ Memorandum and Articles ”);

1.2
the written resolutions of the board of directors of the Company dated 9 March 2015 and 7 May 2015 (the “ Resolutions ”) and the corporate records of the Company maintained at its registered office in the Cayman Islands;

1.3
a Certificate of Good Standing issued by the Registrar of Companies in the Cayman Islands (the “ Certificate of Good Standing ”);

1.4
a certificate from a director of the Company a copy of which is attached hereto (the “ Director’s Certificate ”);

1.5
the Registration Statement;

1.6
the unit certificate representing the Units and the Over-Allotment Units dated May 19, 2015 (the “ Unit Certificates ”);

1.7
the warrant agreement and the warrant certificate constituting the Warrants dated May 19, 2015 (the “ Warrant Documents ”); and

1.8
the underwriting agreement dated 19 May 2015 between the Company and Citigroup Global Markets Inc., as representative of the underwriters (the “ Underwriting Agreement ” and, together with the Unit Certificates and the Warrant Documents, the “ Documents ”).
 
2
Assumptions
 
The following opinion is given only as to, and based on, circumstances and matters of fact existing and known to us on the date of this opinion. This opinion only relates to the laws of the Cayman Islands which are in force on the date of this opinion.  In giving this opinion we have relied (without further verification) upon the certifications as to matters of fact contained in the Director’s Certificate and the Certificate of Good Standing. We have also relied upon the following assumptions, which we have not independently verified:
 
2.1
other than in respect of the Company under the laws of the Cayman Islands, the Documents have been or will be authorised and duly executed and unconditionally delivered by or on behalf of all relevant parties in accordance with all relevant laws;
 
2.2
the Documents are legal, valid, binding and enforceable against all relevant parties in accordance with their terms under the laws of the State of New York and all other relevant laws (other than the laws of the Cayman Islands);
 
2.3
the choice of the laws of the State of New York as the governing law of the Documents has been made in good faith and would be regarded as a valid and binding selection which will be upheld by the courts of the State of New York and any other relevant jurisdiction (other than the Cayman Islands) as a matter of the laws of the State of New York and all other relevant laws (other than the laws of the Cayman Islands);
 
2.4
copy documents, conformed copies or drafts of documents provided to us are true and complete copies of, or in the final forms of, the originals;
 
2.5
all signatures, initials and seals are genuine;
 
2.6
other than in respect of the Company under the laws of the Cayman Islands, the power, authority and legal right of all parties under all relevant laws and regulations to enter into, execute, deliver and perform their respective obligations under the Documents;
 
2.7
no invitation was made by or on behalf of the Company to the public in the Cayman Islands to subscribe for any of the Units, the Over-Allotment Units, the Warrants or the Ordinary Shares;
 
2.8
no monies paid to or for the account of any party under the Documents represent or will represent criminal property or terrorist property (as defined in the Proceeds of Crime Law (2017 Revision), and the Terrorism Law (2017 Revision), respectively);
 
2.9
there is nothing under any law (other than the law of the Cayman Islands) which would or might affect the opinions hereinafter appearing.  Specifically, we have made no independent investigation of the laws of the State of New York; and

2.10
the Company received money or money’s worth in consideration for the issue of the Ordinary Shares, and none of the Ordinary Shares were or will be issued for less than par value.
 
Save as aforesaid we have not been instructed to undertake and have not undertaken any further enquiry or due diligence in relation to the transaction the subject of this opinion.
 
3
Opinions
 
Based upon, and subject to, the foregoing assumptions and the qualifications set out below, and having regard to such legal considerations as we deem relevant, we are of the opinion that:
 
3.1
The Company has been duly incorporated and is validly existing and in good standing under the laws of the Cayman Islands.
 
3.2
The Ordinary Shares offered and issued by the Company as contemplated by the Registration Statement (including the issuance of the Ordinary Shares upon the exercise of the Warrants in accordance with the Warrant Documents) have been duly authorised for issue, and when such Ordinary Shares were issued by the Company against payment in full of the consideration as set out in the Registration Statement and in accordance with the terms set out in the Registration Statement (including the issuance of the Ordinary Shares upon the exercise of the Warrants in accordance with the Warrant Documents), such Ordinary Shares have been validly issued, fully paid and non-assessable. As a matter of Cayman Islands law, a share is only issued when it has been entered in the register of members (shareholders).
 
3.3
The execution, delivery and performance of the Warrant Documents has been authorised by and on behalf of the Company and, upon the Warrant Documents having been executed and delivered by any director or officer of the Company, the Warrant Documents are duly executed and delivered on behalf of the Company and constitute the legal, valid and binding obligations of the Company enforceable in accordance with their terms.
 
4
Qualifications
 
The opinions expressed above are subject to the following qualifications:
 
4.1
The term “ enforceable ” as used above means that the obligations assumed by the Company under the Documents are of a type which the courts of the Cayman Islands will enforce.  It does not mean that those obligations will necessarily be enforced in all circumstances in accordance with their terms.  In particular:
 
4.1.1
enforcement may be limited by bankruptcy, insolvency, liquidation, reorganisation, readjustment of debts or moratorium or other laws of general application relating to or affecting the rights of creditors;
 
4.1.2
enforcement may be limited by general principles of equity.  For example, equitable remedies such as specific performance may not be available, inter alia, where damages are considered to be an adequate remedy;
 
4.1.3
where obligations are to be performed in a jurisdiction outside the Cayman Islands, they may not be enforceable in the Cayman Islands to the extent that performance would be illegal under the laws of that jurisdiction; and
 
4.1.4
some claims may become barred under the statutes of limitation or may be or become subject to defences of set off, counterclaim, estoppel and similar defences.

4.2
To maintain the Company in good standing under the laws of the Cayman Islands, annual filing fees must be paid and returns made to the Registrar of Companies.
 
Under Cayman Islands law, the register of members (shareholders) is prima facie evidence of title to shares and this register would not record a third party interest in such shares.  However, there are certain limited circumstances where an application may be made to a Cayman Islands court for a determination on whether the register of members reflects the correct legal position.  Further, the Cayman Islands court has the power to order that the register of members maintained by a company should be rectified where it considers that the register of members does not reflect the correct legal position.  As far as we are aware, such applications are rarely made in the Cayman Islands and for the purposes of the opinion given in paragraph 3.2, there are no circumstances or matters of fact known to us on the date of this opinion which would properly form the basis for an application for an order for rectification of the register of members of the Company, but if such an application were made in respect of the Company’s Ordinary Shares, then the validity of such shares may be subject to re-examination by a Cayman Islands court.
 
Except as specifically stated herein, we make no comment with respect to any representations and warranties which may be made by or with respect to the Company in any of the documents or instruments cited in this opinion or otherwise with respect to the commercial terms of the transactions the subject of this opinion.
 
We hereby consent to the filing of this opinion as an exhibit to the the registration statement on Form S-4 to be filed with the Commission on the date hereof.  In providing our consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Act or the Rules and Regulations of the Commission thereunder.
 
This opinion is addressed to you and may be relied upon by you and your counsel.  This opinion is limited to the matters detailed herein and is not to be read as an opinion with respect to any other matter.

Yours faithfully


Maples and Calder

Attachment to Form of Opinion of Maples and Calder

GP Investments Acquisition Corp.
PO Box 309, Ugland House
Grand Cayman
KY1-1104
Cayman Islands

[●] 2017

TO :

Maples and Calder
PO Box 309, Ugland House
Grand Cayman
KY1-1104
Cayman Islands
 
Dear Sirs
 
GP Investments Acquisition Corp. (the “ Company ”)
 
I, being a director of the Company, am aware that you are being asked to provide a legal opinion (the “ Opinion ”) in relation to certain aspects of Cayman Islands law.  Capitalised terms used in this certificate have the meaning given to them in the Opinion.  I hereby certify that:
 
1
The Memorandum and Articles remain in full force and effect and are unamended.
 
2
The Company has not entered into any mortgages or charges over its property or assets other than those entered in the register of mortgages and charges.
 
3
The Resolutions were duly passed in the manner prescribed in the Memorandum and Articles (including, without limitation, with respect to the disclosure of interests (if any) by directors of the Company) and have not been amended, varied or revoked in any respect.
 
4
The authorised share capital of the Company is US$42,000 divided into 400,000,000 shares of a par value of US$0.0001 each and 20,000,000 preferred shares of a par value US$0.0001 each.
 
5
The shareholders of the Company have not restricted or limited the powers of the directors in any way.  There is no contractual or other prohibition (other than as arising under Cayman Islands law) binding on the Company prohibiting it from entering into and performing its obligations under the Registration Statement and any documents in connection therewith.
 
6
The directors of the Company at the date of the Resolutions were as follows: Antonio Bonchristiano and Fersen Lambranho.
 
7
The directors of the Company on the date hereof are as follows: Antonio Bonchristiano, Fersen Lambranho, Fernando d’Ornellas Silva, Alexandre Hohagen and Christopher K. B. Brotchie.

8
The minute book and corporate records of the Company as maintained at its registered office in the Cayman Islands and made available to you are complete and accurate in all material respects, and all minutes and resolutions filed therein represent a complete and accurate record of all meetings of the shareholders and directors (or any committee thereof) of the Company (duly convened in accordance with the Articles of Association of the Company) and all resolutions passed at the meetings or passed by written resolution or consent, as the case may be.
 
9
Prior to, at the time of, and immediately following the approval of the transactions the subject of the Registration Statement the Company was able to pay its debts as they fell due and has entered into the transactions the subject of the Registration Statement for proper value and not with an intention to defraud or hinder its creditors or by way of fraudulent preference.
 
10
Each director considers the transactions contemplated by the Registration Statement to be of commercial benefit to the Company and has acted bona fide in the best interests of the Company, and for a proper purpose of the Company, in relation to the transactions which are the subject of the Opinion.
 
11
To the best of my knowledge and belief, having made due inquiry, the Company is not the subject of legal, arbitral, administrative or other proceedings in any jurisdiction.  Nor have the directors or shareholders taken any steps to have the Company struck off or placed in liquidation, nor have any steps been taken to wind up the Company.  Nor has any receiver been appointed over any of the Company’s property or assets.
 
12
To the best of my knowledge and belief, having made due inquiry, there are no circumstances or matters of fact existing which may properly form the basis for an application for an order for rectification of the register of members of the Company.
 
13
The Company is not a central bank, monetary authority or other sovereign entity of any state.
 
14
The Registration Statement has been authorised and duly executed and delivered by or on behalf of all relevant parties in accordance with all relevant laws.
 
15
No invitation was made by or on behalf of the Company to the public in the Cayman Islands to subscribe for any of the Ordinary Shares.
 
16
The Ordinary Shares issued pursuant to the Registration Statement have been duly registered, and will continue to be registered, in the Company’s register of members (shareholders).

I confirm that you may continue to rely on this certificate as being true and correct on the day that you issue the Opinion unless I shall have previously notified you personally to the contrary.

Signature:
   
 
[●]
 
 
Director
 






Exhibit 5.2

Form of Opinion
[Letterhead of Skadden, Arps, Slate, Meagher & Flom LLP]

[•], 2017

GP Investments Acquisition Corp.
150 E. 52 nd Street, Suite 5003
New York, NY 10022

 
RE:
GP Investments Acquisition Corp.;
 
   
Registration Statement on Form S-4
 

Ladies and Gentlemen:

We have acted as special counsel to GP Investments Acquisition Corp., a Cayman Islands company limited by shares (the “Company”), in connection with the Registration Statement on Form S-4, to be filed with the Securities and Exchange Commission (the “Commission”) on [ · ], 2017, under the Securities Act of 1933, as amended (the “Securities Act”) (such Registration Statement, as amended or supplemented, is hereinafter referred to as the “Registration Statement”), relating to, among other things, (i) the merger of Let’s Go Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of the Company (“Let’s Go”), with and into Rimini Street, Inc., a Nevada corporation (“Rimini Street”), with Rimini Street surviving and becoming a wholly-owned subsidiary of the Company (the “First Merger”), (ii) the subsequent merger of Rimini Street with and into the Company with the Company surviving (the “Second Merger” and together with the “First Merger”, the “Mergers”), each of the foregoing Mergers pursuant to the terms and subject to the conditions of the Agreement and Plan of Merger, dated as of May 16, 2017[, as amended by Amendment No. 1 thereto, dated June [•], 2017 (as so amended, the “Merger Agreement”)], by and among the Company, Let’s Go, Rimini Street, and, solely in its capacity as the initial Holder Representative thereunder, the Holder Representative named therein and (iii) as a condition to the effectiveness of the First Merger (consummation of which is a condition to the effectiveness of the Second Merger), the proposal of the Company to change its jurisdiction of incorporation by discontinuing as an exempted company in the Cayman Islands and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware (the “Domestication”). Immediately following or in connection with the effectiveness of the Second Merger, the Company will change its corporate name to “Rimini Street, Inc.”
 

GP Investments Acquisition Corp.
[•], 2017
Page 2
Prior to and as a condition of the Mergers, the Company will change its jurisdiction of incorporation by effecting a deregistration under Article 206 of the Cayman Islands Companies Law and a domestication under Section 388 of the General Corporation Law of the State of Delaware (the “DGCL”) by filing a certificate of corporate domestication (the “Certificate of Domestication”) simultaneously with a Certificate of Incorporation (as defined below), in each case, in respect of the Company with the Secretary of State of the State of Delaware (the “DE Secretary of State”). The Domestication is subject to the approval of the shareholders of the Company. In this opinion, we refer to the Company following effectiveness of the Domestication as “RMNI.”

Upon completion of the First Merger, each share of Rimini Street’s (v) Class A Common Stock, par value $0.001 per share (“Class A Common Stock”), (w) Class B Common Stock, par value $0.001 per share (“Class B Common Stock”), (x) Series A Preferred Stock, par value $0.001 per share (“Series A Preferred Stock”), on an as-converted basis, (y) Series B Preferred Stock, par value $0.001 per share (“Series B Preferred Stock”), on an as-converted basis and (z) Series C Preferred Stock, par value $0.001 per share (“Series C Preferred Stock”, and together with the Class A Common Stock, Class B Common Stock, Series A Preferred Stock, the “Capital Stock”), on an as converted basis, that is issued and outstanding immediately prior to the effective time of the First Merger (other than shares of Rimini Street’s Capital Stock, if any, (i) held in the treasury of Rimini Street, which treasury shares shall be canceled as part of the First Merger and shall not constitute “Capital Stock” under the Merger Agreement and (ii) held by stockholders who have perfected and not withdrawn a demand for appraisal rights pursuant to Sections 92A.300 through 92A.500 of the Nevada Revised Statutes (the “NRS”) shall be canceled and converted into and become the right to receive the applicable portion (in shares) of the Merger Consideration (as defined in the Merger Agreement) as determined pursuant to Sections 3.1(a) and 3.1(e) of the Merger Agreement. The Mergers are subject to satisfaction or waiver of a number of conditions, including, among others, approval and adoption of the Merger Agreement by the Company’s shareholders as well as completion of the Domestication.

This opinion is being furnished in accordance with the requirements of Item 601(b)(5) of Regulation S-K of the General Rules and Regulations under the Securities Act.
 

GP Investments Acquisition Corp.
[•], 2017
Page 3

In connection with this opinion, we have examined originals or copies, certified or otherwise identified to our satisfaction, of: (i) the Registration Statement; (ii) the Merger Agreement, filed as Exhibit 2.1 of the Company’s filing on Form 8-K (No. 001-37397), with the Commission on May 17, 2017; (iii) the form of Certificate of Incorporation of RMNI to be effective upon the Domestication (the “Certificate of Incorporation”), filed as Exhibit 3.2 to the Registration Statement; (iv) the form of By-laws of RMNI to be effective upon the Domestication (the “By-laws”), filed as Exhibit 3.3 to the Registration Statement; (v) the Warrant Agreement, dated May 19, 2015, between the Company and Continental Stock Transfer & Trust Company, filed as Exhibit 4.1 of the Company’s filing on Form 8-K (No. 001-37397), with the Commission on June 1, 2015 (the “Warrant Agreement” and each issued and outstanding whole warrant, a “Warrant”); (vi) a Specimen Unit Certificate of the Company, filed as Exhibit 4.1 of the Company’s Form S-1/A (No. 333-203500), with the Commission on April 17, 2015 (each issued and outstanding unit, a “Unit”); (vii) the Underwriting Agreement, dated May 19, 2015, between the Company and Citigroup Global Markets Inc. as representative of the several underwriters, filed as Exhibit 1.1 of the Company’s Form 8-K (No. 001-37397), with the Commission on June 1, 2015 (the “Underwriting Agreement”) and (viii) resolutions of the Board of Directors of the Company, dated May 15, 2017, relating to, among other things, the Registration Statement, the Mergers and the Domestication.

We also have examined originals or copies, certified or otherwise identified to our satisfaction, of such records of the Company and such agreements, certificates and receipts of public officials, certificates of officers or other representatives of the Company and others, and such other documents, certificates and records as we have deemed necessary or appropriate as a basis for the opinions set forth below.

In our examination, we have assumed the legal capacity of all natural persons, the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as facsimile, electronic, certified or photostatic copies, and the authenticity of the originals of such copies. In making our examination of executed documents, we have assumed that the parties thereto, other than the Company, had the power, corporate or other, to enter into and perform all obligations thereunder and have also assumed the due authorization by all requisite action, corporate or other, and the execution and delivery by such parties of such documents and the validity and binding effect thereof on such parties. As to any facts material to the opinion expressed herein that we did not independently establish or verify, we have relied upon statements and representations of officers and other representatives of the Company and others and of public officials, including with respect to the filing procedure for effecting a domestication under Section 388 of the DGCL.
 

GP Investments Acquisition Corp.
[•], 2017
Page 4

In addition to the foregoing, for the purpose of rendering our opinion as expressed herein, we have assumed the following matters:

1.           Prior to effecting the Domestication: (i) the Registration Statement, as finally amended, will have become effective under the Securities Act; (ii) the shareholders of the Company will have approved, among other things, the Merger Agreement and the Domestication and (iii) all other necessary action will have been taken under the applicable laws of the Cayman Islands to authorize and permit the Domestication, and any and all consents, approvals and authorizations from applicable Cayman Islands governmental and regulatory authorities required to authorize and permit the Domestication will have been obtained;

2.           The current draft of the Certificate of Incorporation, in the form thereof submitted for our review, without alteration or amendment (other than identifying the appropriate date) will be duly authorized and executed and thereafter be duly filed with the DE Secretary of State in accordance with Sections 103 of the DGCL, that no other certificate or document, other than the Certificate of Domestication as required under Section 388 of the DGCL, has been, or prior to the filing of the Certificate of Incorporation will be, filed by or in respect of the Company with the DE Secretary of State and that the Company will pay all fees and other charges required to be paid in connection with the filing of the Certificate of Incorporation; and

3.           Prior to the issuance of the RMNI Merger Shares: (i) the Registration Statement, as finally amended, will have become effective under the Securities Act; (ii) the shareholders of the Company will have approved and adopted the Merger Agreement; (iii) the First Merger, the Domestication and the other transactions contemplated by the Merger Agreement to be consummated concurrent with or prior to the First Merger will have been consummated and (iv) the First Merger will have become effective under the DGCL and the NRS.

In giving the following opinions, we have relied (without further verification) upon the legal opinion of Maples and Calder to be filed as Exhibit 5.1 to the Registration Statement.

Members of our firm are admitted to the bar in the State of New York and the State of Delaware, and we do not express any opinion as to the laws of any jurisdiction other than the corporate laws of the State of New York or the State of Delaware, and we do not express any opinion as to the effect of any other laws on the opinion stated herein.
 

GP Investments Acquisition Corp.
[•], 2017
Page 5

Based upon and subject to the foregoing and subject to the limitations, qualifications, exceptions and assumptions set forth herein , we are of the opinion that :

1.           Upon the filing of the Certificate of Domestication simultaneously with the Certificate of Incorporation with the DE Secretary of State, the Domestication will become effective and the Company will continue as a corporation incorporated under the laws of the State of Delaware.

2.           Upon effectiveness of the Domestication, the issued and outstanding ordinary shares of the Company, par value $0.0001 per share, of the Company will automatically convert by operation of law, on a one-for-one basis, into duly authorized, validly issued, fully paid and non-assessable shares of RMNI common stock, par value $0.0001 per share.

3.           Upon effectiveness of the Domestication, each issued and outstanding Warrant will be a valid and binding agreement of RMNI, enforceable against RMNI in accordance with its terms.

4.           Upon effectiveness of the Domestication, each outstanding Unit will be a valid and binding agreement of RMNI, enforceable against RMNI in accordance with its terms.

5.           The RMNI Merger Shares, when issued in the manner and on the terms described in the Registration Statement and the Merger Agreement, will be duly authorized, validly issued, fully paid and non-assessable.

We hereby consent to the filing of this opinion with the Commission as an exhibit to the Registration Statement. We also consent to the reference to our firm under the caption “Legal Matters” in the Registration Statement. In giving this consent, we do not thereby admit that we are included in the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the Commission.

 
Very truly yours,
   
 
 
   
 
Skadden, Arps, Slate, Meagher & Flom LLP




Exhibit 10.18

RIMINI STREET, INC.

INDEMNIFICATION AGREEMENT

This Indemnification Agreement (this “ Agreement ”) is dated as of [            , 20     ] (the “ Effective Date ”), and is between Rimini Street, Inc., a Delaware corporation (the “ Company ”), and [ insert name of indemnitee ] (“ Indemnitee ”).

RECITALS

A.            Indemnitee’s service to the Company substantially benefits the Company.

B.            Individuals are reluctant to serve as directors or officers of corporations or in certain other capacities unless they are provided with adequate assurance of protection through insurance or indemnification against the risks of claims and actions against them arising out of such service.

C.            Indemnitee does not regard the protection currently provided by applicable law, the Company’s governing documents and any insurance as adequate under the present circumstances, and Indemnitee may not be willing to serve as a director or officer without additional protection.

D.            In order to induce Indemnitee to continue to provide services to the Company, it is reasonable, prudent and necessary for the Company to contractually obligate itself to indemnify, and to advance expenses on behalf of, Indemnitee as permitted by applicable law.

E.            This Agreement is a supplement to and in furtherance of the indemnification provided in the Company’s certificate of incorporation, bylaws and applicable law, and any resolutions adopted pursuant thereto, and this Agreement shall not be deemed a substitute therefor, nor shall this Agreement be deemed to limit, diminish or abrogate any rights of Indemnitee thereunder.

The parties therefore agree as follows:

1.            Definitions .

(a)            A “ Change in Control ” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:

(i)            Acquisition of Stock by Third Party.  Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing twenty percent (20%) or more of the combined voting power of the Company’s then outstanding securities; provided, however, that the foregoing shall not include any Person having such status prior to the consummation of the initial public offering of the Company’s securities unless after the initial public offering such Person is or becomes the Beneficial Owner, directly or indirectly, of additional securities of the Company representing in the aggregate an additional five percent (5%) or more of the combined voting power of the Company’s then outstanding securities;


(ii)            Change in Board Composition.  During any period of two (2) consecutive years (not including any period prior to the Effective Date), individuals who at the beginning of such period constitute the Company’s board of directors, and any new directors (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 1(a)(i), 1(a)(iii) or 1(a)(iv)) whose election by the board of directors or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then-still in office, who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Company’s board of directors;

(iii)            Corporate Transactions.  A merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) [more than 50%] of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity;

(iv)            Liquidation.  The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; and

(v)            Other Events.  Any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended, whether or not the Company is then subject to such reporting requirement.

For purposes of this Section 1(a), the following terms shall have the following meanings:

(1)            Person ” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended; provided, however, that “ Person ” shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

(2)            Beneficial Owner ” shall have the meaning given to such term in Rule 13d-3 under the Securities Exchange Act of 1934, as amended; provided, however, that “ Beneficial Owner ” shall exclude any Person otherwise becoming a Beneficial Owner by reason of (i) the stockholders of the Company approving a merger of the Company with another entity or (ii) the Company’s board of directors approving a sale of securities by the Company to such Person.

(b)            Corporate Status ” describes the status of a person who is or was a director, trustee, general partner, managing member, officer, employee, agent, deemed fiduciary or fiduciary of the Company or any other Enterprise.

2

(c)            DGCL ” means the General Corporation Law of the State of Delaware.

(d)            Disinterested Director ” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

(e)            Enterprise ” means the Company and any other corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, trustee, general partner, managing member, officer, employee, agent, deemed fiduciary or fiduciary.

(f)            Expenses ” include all direct and indirect costs of any type or nature whatsoever, including without limitation, attorneys’ fees, retainers, court costs, transcript costs, fees and costs of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses actually and reasonably, and of the types customarily, incurred by Indemnitee, or on his or her behalf, in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding.  Expenses also include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond or other appeal bond or their equivalent, (ii) any federal, state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement and (iii) for purposes of Section 12(d), Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company.  Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

(g)            Independent Counsel ” means a law firm, or a partner or member of a law firm, that is experienced in matters of corporation law and neither currently is, as of the time the request for indemnification is made nor in the previous five (5) years has been, retained to represent (i) the Company or Indemnitee in any matter material to either such party (other than as Independent Counsel with respect to matters concerning Indemnitee under this Agreement, or other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “ Independent Counsel ” shall not include any person who, under the applicable standards of professional conduct then-prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

(h)            Proceeding ” means any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, hearing or proceeding, preliminary, information or formal, of any type whatsoever, or claim, demand, action issue or matter therein, whether brought in the right of the Company, a Subsidiary or otherwise, and whether of a civil, criminal, administrative or investigative nature, including any appeal therefrom, and including without limitation any such Proceeding pending as of the Effective Date, in which Indemnitee was, is or will be involved as a party, a potential party, a non-party witness or otherwise by reason of (i) the fact that Indemnitee is or was a director or officer of the Company or of a Subsidiary, or (ii) the fact or assertion that he or she is or was serving at the request of the Company or of a Subsidiary as a director, trustee, general partner, managing member, officer, employee, agent, deemed fiduciary or fiduciary of the Company, a Subsidiary or any other Enterprise, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification or advancement of expenses can be provided under this Agreement.

3

(i)            Subsidiary ” means any entity of which more than 50% of the outstanding voting securities is owned directly or indirectly by the Company.

(j)            Reference to “ other enterprises ” shall include employee benefit plans; references to “ fines ” shall include any excise taxes assessed on a person with respect to any employee benefit plan (excluding any “parachute payments” within the meanings of Sections 280G and 4999 of the Internal Revenue Code of 1986, as amended); references to “ serving at the request of the Company ” shall include any service as a director, officer, employee or agent of the Company or of a Subsidiary which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries, including as a deemed fiduciary thereto; and a person who acted in good faith and in a manner he or she reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “ not opposed to the best interests of the Company ” as referred to in this Agreement.

2.            Indemnity in Third-Party Proceedings .  The Company shall indemnify Indemnitee in accordance with the provisions of this Section 2 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 2, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement in connection with such Proceeding, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was unlawful.

3.            Indemnity in Proceedings by or in the Right of the Company .  The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 3, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses in connection with such Proceeding, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company.  No indemnification for Expenses shall be made under this Section 3 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court of competent jurisdiction to be liable to the Company, unless and only to the extent that the Delaware Court of Chancery or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification for such expenses as the Delaware Court of Chancery or such other court shall deem proper.

4

4.            Indemnification for Expenses of a Party Who is Wholly or Partly Successful .  To the extent that Indemnitee is a party to or a participant in and is successful (on the merits or otherwise) in defense of any Proceeding or any claim, issue or matter therein, the Company shall indemnify Indemnitee against all Expenses in connection therewith.  To the extent permitted by applicable law, if Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, in defense of one or more but fewer than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses in connection with (a) each successfully resolved claim, issue or matter and (b) any claim, issue or matter related to any such successfully resolved claim, issue or matter.  For purposes of this Section 4, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, or settlement, with or without court approval, shall be deemed to be a successful result as to such claim, issue or matter.

5.            Indemnification for Expenses of a Witness .  To the extent that Indemnitee is, by reason of his or her Corporate Status, a witness, or is made (or asked to) respond to discovery requests, in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified to the extent permitted by applicable law against all Expenses in connection therewith.

6.            Additional Indemnification .

(a)            Notwithstanding any limitation in Sections 2, 3 or 4, above, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid in settlement in connection with the Proceeding.

(b)            For purposes of Section 6(a), the meaning of the phrase “ to the fullest extent permitted by applicable law ” shall include, but not be limited to:

(i)            the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL; and

(ii)            the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

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7.            Exclusions .  Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity or provide any benefit to Indemnitee under this Agreement or otherwise, in connection with any Proceeding (or any part of any Proceeding):

(a)            for which payment has actually been made to or on behalf of Indemnitee under any statute, insurance policy, indemnity provision, vote or otherwise, except with respect to any excess beyond the amount paid[, subject to any subrogation rights set forth in Section 15] 1 ;

(b)            for an accounting or disgorgement of profits pursuant to Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of federal, state or local statutory law or common law, if Indemnitee is held liable therefor (including pursuant to any settlement arrangements);

(c)            for any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Securities Exchange Act of 1934, as amended (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “ Sarbanes-Oxley Act ”), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act), if Indemnitee is held liable therefor (including pursuant to any settlement arrangements);

(d)            initiated by Indemnitee and not by way of defense, including against the Company or its directors, officers, employees, agents or other indemnitees, unless (i) the Company’s board of directors authorized the Proceeding (or the relevant part of the Proceeding) prior to its initiation, (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law, (iii) otherwise authorized in Section 12(d), (iv) brought to discharge Indemnitee’s fiduciary responsibilities, whether under ERISA or otherwise, or (v) otherwise required by applicable law or the Company’s bylaws; or

(e)            if prohibited by applicable law as determined in a final adjudication not subject to further appeal.

8.            Advances of Expenses .  The Company shall advance the Expenses incurred by Indemnitee in connection with any Proceeding prior to its final resolution, and such advancement shall be made as soon as reasonably practicable, but in any event no later than 30 days, after the receipt by the Company of a written statement or statements requesting such advances from time to time (which shall include invoices received by Indemnitee in connection with such Expenses but, in the case of invoices in connection with legal services, any references to legal work performed or to expenditure made that would cause Indemnitee to waive any privilege accorded by applicable law shall not be included with the invoice).  Reimbursements hereunder shall be deemed advances, and advances shall be unsecured and interest free and made without regard to Indemnitee’s ability to repay such advances or subject to the satisfaction of any standard of conduct.  Indemnitee hereby undertakes to repay any such advance to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company.  No other form of undertaking shall be required other than the execution of this Agreement.  This Section 8 shall not apply to prevent reimbursement to the extent advancement is prohibited by law, as determined in a final adjudication not subject to further appeal, or with respect to Proceeding for which indemnity is not permitted under this Agreement, but shall apply to any Proceeding referenced in Section 7(b) or 7(c) prior to a determination that Indemnitee is not entitled to be indemnified by the Company.  The Company shall not seek from a court, or agree to, a “bar order” which would have the effect of prohibiting or limiting the Indemnitee’s rights to receive advancement of expenses under this Agreement.
 

1
Note to Draft : Delete if Section 15 is deleted due to there being no Secondary Indemnitor.

6

9.            Procedures for Notification and Defense of Claim .

(a)            Indemnitee shall notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement of Expenses as soon as reasonably practicable following the receipt by Indemnitee of notice thereof.  The written notification to the Company shall include, in reasonable detail, a description of the nature of the Proceeding and the facts underlying the Proceeding.  The failure by Indemnitee to notify the Company will not relieve the Company from any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights, except to the extent that such failure or delay materially prejudices the Company.

(b)            If, at the time of the receipt of a written notice of a Proceeding pursuant to the terms hereof, the Company has directors’ and officers’ liability insurance in effect, the Company shall give prompt notice of the commencement of the Proceeding to such insurers in accordance with the procedures set forth in the applicable policies.  The Company shall thereafter take all commercially-reasonable actions to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

(c)            In the event the Company may be obligated to make any indemnity in connection with a Proceeding, the Company shall be entitled to assume the defense of such Proceeding with counsel approved by Indemnitee, which approval shall not be unreasonably withheld, upon the delivery to Indemnitee of written notice of the Company’s election to do so.  After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee for any fees or expenses of counsel subsequently incurred by Indemnitee with respect to the same Proceeding.  Notwithstanding the Company’s assumption of the defense of any such Proceeding, the Company shall be obligated to pay the fees and expenses of Indemnitee’s separate counsel to the extent (i) the employment of separate counsel by Indemnitee is authorized by the Company, (ii) counsel for the Company or Indemnitee shall have reasonably concluded that there is a conflict of interest between the Company and Indemnitee in the conduct of any such defense, such that Indemnitee needs to be separately represented, (iii) the fees and expenses are non-duplicative and reasonably incurred in connection with Indemnitee’s role in the Proceeding despite the Company’s assumption of the defense, (iv) the Company is not financially or legally able to perform its indemnification obligations, or (v) the Company shall not have retained, or shall not continue to retain, such counsel to defend such Proceeding.  Regardless of any provision in this Agreement, Indemnitee shall have the right to employ counsel in any Proceeding at Indemnitee’s personal expense.  The Company shall not be entitled, without the consent of Indemnitee, to assume the defense of any claim brought by or in the right of the Company.

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(d)            Indemnitee shall give the Company such information and cooperation in connection with the Proceeding as may be reasonably appropriate.

(e)            The Company shall not be liable to indemnify Indemnitee for any settlement of any Proceeding (or any part thereof) without the Company’s prior written consent, which shall not be unreasonably withheld.

(f)            The Company shall not settle any Proceeding (or any part thereof) with respect to Indemnitee without Indemnitee’s prior written consent, which shall not be unreasonably withheld.

(g)            The Company shall have the right to settle any Proceeding (or any part thereof) with respect to persons other than Indemnitee (including the Company) without the consent of Indemnitee; provided, however, that the Company shall not, on its own behalf, settle any part of any Proceeding to which Indemnitee is party with respect to other parties (including the Company) without the written consent of Indemnitee if any portion of such settlement is to be funded from insurance proceeds unless approved by (1) the written consent of Indemnitee or (2) a majority of the independent members of the Company’s board of directors; provided, further, that the right to constrain the Company’s use of corporate insurance as described in this section shall terminate at the time the Company concludes (per the terms of this Agreement) that (i) Indemnitee is not entitled to indemnification pursuant to this agreement, or (ii) such indemnification obligation to Indemnitee has been fully discharged by the Company.

(h)            The Company shall promptly notify Indemnitee once the Company has received an offer or intends to make an offer to settle any such Proceeding (or any part thereof) and the Company shall provide Indemnitee as much time as reasonably practicable to consider such offer prior to responding to the offer or making the offer to settle any such Proceeding (or part thereof).

(i)            If the Indemnitee is the subject of or is implicated in any way during an investigation, whether formal or informal, the Company will use commercially reasonable efforts to notify Indemnitee of such investigation and shall share with Indemnitee any information it has furnished to any third parties concerning the investigation, unless the Company in good faith makes a judgment that it would be inappropriate to do so under the circumstances, including with respect to the nature, integrity or progress of the investigation or as would be in violation of a governmental order or directive and, provided, however, that if Indemnitee was never a director of the Company, the rights described in this section 9(i) shall terminate when Indemnitee is no longer an employee of the Company.

10.            Procedures upon Application for Indemnification .

(a)            To obtain indemnification, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and as is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of the Proceeding.  The Company shall, as soon as reasonably practicable after receipt of such a request for indemnification, advise the board of directors that Indemnitee has requested indemnification.  Any delay in providing the request will not relieve the Company from its obligations under this Agreement, except to the extent such failure is prejudicial.

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(b)            Upon written request by Indemnitee for indemnification pursuant to Section 10(a), a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case (i) if a Change in Control shall have occurred, by Independent Counsel in a written opinion to the Company’s board of directors, a copy of which shall be delivered to Indemnitee or (ii) if a Change in Control shall not have occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Company’s board of directors, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Company’s board of directors, (C) if there are no such Disinterested Directors, or if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Company’s board of directors, a copy of which shall be delivered to Indemnitee, or (D) if so directed by the Company’s board of directors, by the stockholders of the Company.  If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination.  Indemnitee shall cooperate with the person, persons or entity making the determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information that is not privileged or otherwise protected from disclosure and that is reasonably available to Indemnitee and reasonably necessary to such determination.  Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company, to the extent permitted by applicable law.

(c)            In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(b), the Independent Counsel shall be selected as provided in this Section 10(c).  If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Company’s board of directors, and the Company shall give written notice to Indemnitee advising him or her of the identity of the Independent Counsel so selected.  If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Company’s board of directors, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected.  In either event, Indemnitee or the Company, as the case may be, may, within ten days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided , however , that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel,” as defined in Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected shall act as Independent Counsel.  If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit.  If, within 20 days after the later of (i) submission by Indemnitee of a written request for indemnification pursuant to Section 10(a) hereof and (ii) the final disposition of the Proceeding, the parties have not agreed upon an Independent Counsel, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 10(b), above.  Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 12(a), below, the Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then-prevailing).

9

(d)            The Company agrees to pay the reasonable fees and expenses of any Independent Counsel and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

(e)            Notwithstanding a final determination by any reviewing party identified in Section 10(b) above that Indemnitee is not entitled to indemnification with respect to a specific Proceeding, Indemnitee shall have the right to apply to the District Courts, for the purpose of enforcing Indemnitee’s right to indemnification pursuant to the provisions of this Agreement, the Company’s certificate of incorporation or Bylaws or the DGCL.

11.            Presumptions and Effect of Certain Proceedings .

(a)            In making a determination with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination shall, to the fullest extent not prohibited by applicable law, presume that Indemnitee is entitled to indemnification if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall, to the fullest extent not prohibited by applicable law, have the burden of proof to overcome that presumption in connection with the making by such person, persons or entity of any determination contrary to that presumption.

(b)            The termination of any Proceeding, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement or as required by applicable law) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

(c)            For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith or not to have acted in bad faith to the extent Indemnitee relied in good faith on (i) the records or books of account of the Enterprise, including financial statements, (ii) information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, (iii) the advice of legal counsel for the Enterprise or its board of directors, or counsel selected by any committee of the board of directors, or (iv) information or records given or reports made to the Enterprise by an independent certified public accountant, an appraiser, investment banker or other expert selected with reasonable care by the Enterprise or its board of directors or any committee of the board of directors (including consultants or advisors formally engaged by the board or committee).  The provisions of this Section 11(c) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

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(d)            Neither the knowledge, actions nor failure to act of the Enterprise or any other director, officer, agent or employee of the Enterprise shall be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

12.            Remedies of Indemnitee .

(a)            Subject to Section 12(e), in the event that (i) a determination is made pursuant to Section 10, above, that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8, above, or 12(d), below, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10, above, within 90 days after the later of the receipt by the Company of the request for indemnification or the final disposition of the Proceeding, (iv) payment of indemnification pursuant to this Agreement is not made (A) within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification or (B) with respect to indemnification pursuant to Sections 4 or 5, above, and 12(d), below, within 30 days after receipt by the Company of a written request therefor, or (v) the Company or any other person or entity takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication in a court of competent jurisdiction of his or her entitlement to such indemnification or advancement of Expenses.  Alternatively, Indemnitee, at his or her option, may seek an award in arbitration with respect to his or her entitlement to such indemnification or advancement of Expenses, to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.  Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee to enforce his or her rights under Section 4, above.  The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration in accordance with this Agreement.

(b)            Neither (i) the failure of the Company, its board of directors, any committee or subgroup of the board of directors, Independent Counsel or stockholders to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor (ii) an actual determination by the Company, its board of directors, any committee or subgroup of the board of directors, Independent Counsel or stockholders that Indemnitee has not met the applicable standard of conduct, may be asserted or offered into evidence as a defense to the action or to create a presumption that Indemnitee has or has not met the applicable standard of conduct.  In the event that a determination shall have been made pursuant to Section 10 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 12 shall be conducted in all respects as a de novo trial, or arbitration, on the merits, and Indemnitee shall not be prejudiced by reason of that adverse determination.  In any judicial proceeding or arbitration commenced pursuant to this Section 12, the Company shall, to the fullest extent not prohibited by applicable law, have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

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(c)            To the fullest extent not prohibited by applicable law, the Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.  If a determination shall have been made pursuant to Section 10, above, that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statements not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

(d)            To the extent not prohibited by applicable law, the Company shall indemnify Indemnitee against all Expenses that are incurred by Indemnitee in connection with any action for indemnification or advancement of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company to the extent Indemnitee is successful in such action, and, if requested by Indemnitee, the Company shall (as soon as reasonably practicable, but in any event no later than 60 days, after receipt by the Company of a written request therefor) advance such Expenses to Indemnitee, subject to the provisions of Section 8, above.

(e)            Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification shall be required to be made prior to the final disposition of the Proceeding.

13.            Contribution .  To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amounts incurred by Indemnitee, whether for Expenses, judgments, fines or amounts paid or to be paid in settlement, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the events and transactions giving rise to such Proceeding; and (ii) the relative fault of Indemnitee and the Company (and its other directors, officers, employees and agents) in connection with such events and transactions.

14.            Non-exclusivity; No Limitation on Indemnity Rights .  The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of, or in any manner limit, any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s certificate of incorporation or bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise.  To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Company’s certificate of incorporation and bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change, subject to the restrictions expressly set forth herein or therein.  Except as expressly set forth herein, no right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  Except as expressly set forth herein, the assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

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15.            [ Primary Responsibility .  The Company acknowledges that Indemnitee has certain rights to indemnification and advancement of expenses provided by [ insert name of fund ] [and certain affiliates thereof] ([collectively,] the “ Secondary Indemnitor[s] ”).  The Company agrees that, as between the Company and the Secondary Indemnitor[s], the Company is primarily responsible for amounts required to be indemnified or advanced under the Company’s certificate of incorporation or bylaws or this Agreement and any obligation of the Secondary Indemnitor[s] to provide indemnification or advancement for the same amounts is secondary to those Company obligations.  To the extent not in contravention of any insurance policy or policies providing liability or other insurance for the Company or any director, trustee, general partner, managing member, officer, employee, agent, deemed fiduciary or fiduciary of the Company or any other Enterprise, the Company waives any right of contribution or subrogation against the Secondary Indemnitor[s] with respect to the liabilities for which the Company is primarily responsible under this Section 15.  In the event of any payment by the Secondary Indemnitor[s] of amounts otherwise required to be indemnified or advanced by the Company under the Company’s certificate of incorporation or bylaws or this Agreement, the Secondary Indemnitor[s] shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee for indemnification or advancement of expenses under the Company’s certificate of incorporation or bylaws or this Agreement or, to the extent such subrogation is unavailable and contribution is found to be the applicable remedy, shall have a right of contribution with respect to the amounts paid.  The Secondary Indemnitor[s] [are][is an] express third-party [beneficiaries][beneficiary] of the terms of this Section 15.] 2

16.            No Duplication of Payments .  The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually received payment for such amounts under any insurance policy, contract, agreement or otherwise[, subject to any subrogation rights set forth in Section 15] 3 .  Notwithstanding any other provision of this Agreement to the contrary, (i) Indemnitee shall have no obligation to reduce, offset, allocate, pursue or apportion any indemnification, hold harmless, exoneration, advancement, contribution or insurance coverage among multiple parties possessing such duties to Indemnitee prior to the Company’s satisfaction and performance of all its obligations under this Agreement, and (ii) the Company shall perform fully its obligations under this Agreement without regard to whether Indemnitee holds, may pursue or has pursued any indemnification, advancement, hold harmless, exoneration, contribution or insurance coverage rights against any person or entity other than the Company.
 

2
Note to Draft : If there is no Secondary Indemnitor for the officer or director, delete this section and replace with “ Reserved .”

3
Note to Draft : Delete if Section 15 is deleted due to there being no Secondary Indemnitor.

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17.            Insurance .  To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, trustees, general partners, managing members, officers, employees, agents or fiduciaries of the Company or any other Enterprise, Indemnitee shall be covered by such policy or policies to the same extent as the most favorably insured persons under such policy or policies in a comparable position.  In the event of a Change in Control, or the Company becoming insolvent (including being placed into receivership or entering the federal bankruptcy process and the like), the Company shall maintain in force any and all insurance policies then maintained by the Company in respect of Indemnitee (including directors’ and officers’ liability, fiduciary, employment practices or otherwise), for a period of six years thereafter (“ Tail Policy ”).  The Tail Policy shall be placed by the broker of the Company’s choice with incumbent insurance carriers using the policies that were in place at the time of the Change in Control (unless the incumbent carriers do not offer such policies, in which case the Tail Policy shall be substantially comparable in scope and amount as the expiring policies, and the insurance carriers for the Tail Policy shall have an AM Best rating that is the same or better than the AM Best ratings of the expiring policies).

18.            Subrogation .  In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

19.            Services to the Company .  Indemnitee agrees to serve as a director or officer of the Company or, at the request of the Company, as a director, trustee, general partner, managing member, officer, employee, agent, deemed fiduciary or fiduciary of another Enterprise, for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his or her resignation or is removed from such position.  Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position.  This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee.  Indemnitee specifically acknowledges that any employment with the Company (or any of its subsidiaries or any Enterprise) is at will, and Indemnitee may be discharged at any time for any reason, with or without cause, with or without notice, except as may be otherwise expressly provided in any executed, written employment contract between Indemnitee and the Company (or any of its subsidiaries or any Enterprise), any existing formal severance policies adopted by the Company’s board of directors or, with respect to service as a director or officer of the Company, the Company’s certificate of incorporation or bylaws or the DGCL.  No such document shall be subject to any oral modification thereof.

20.            Duration .  This Agreement shall commence as of the Effective Date and continue until and terminate upon the later of (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director or officer of the Company or a Subsidiary, or as a director, trustee, general partner, managing member, officer, employee, agent, deemed fiduciary or fiduciary of any other Enterprise, as applicable, or (b) one (1) year after the final termination of any Proceeding, including any appeal, then-pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 12, above, relating thereto.  For the avoidance of doubt, this Agreement shall provide for rights of indemnification and advancement of Expenses as set forth herein regardless of whether such events or occurrences occurred before or after the Effective Date.

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21.            Successors .  This Agreement shall be binding upon the Company and its successors and assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company, and shall inure to the benefit of Indemnitee and Indemnitee’s heirs, executors and administrators.  The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, by written agreement, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

22.            Severability .  Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law.  The Company’s inability, pursuant to court order or other applicable law, to perform its obligations under this Agreement shall not constitute a breach of this Agreement.  If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (i) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (ii) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (iii) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

23.            Enforcement .  The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.  The Company and Indemnitee agree that a monetary remedy for breach of this Agreement may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm.  Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which he may be entitled.  The Company and Indemnitee further agree that Indemnitee shall be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertaking in connection therewith.  The Company acknowledges that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by the Court, and the Company hereby waives any such requirement of a bond or undertaking.

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24.            Entire Agreement .  This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof, including any other indemnification agreement between the parties hereto; provided , however , that this Agreement is a supplement to and in furtherance of the Company’s obligations to Indemnitee, as provided by its certificate of incorporation and bylaws, and by applicable law.

25.            Modification and Waiver .  No supplement, modification or amendment to this Agreement shall be binding unless and only to the extent executed in writing by the parties hereto.  No amendment, alteration or repeal of this Agreement shall adversely affect any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her Corporate Status prior to such amendment, alteration or repeal.  No waiver of any of the provisions of this Agreement shall constitute or be deemed a waiver of any other provision of this Agreement nor shall any waiver constitute a continuing waiver.

26.            Notices .  All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, sent by facsimile or electronic mail or otherwise delivered by hand, messenger or courier service addressed:

(a)            if to Indemnitee, to Indemnitee’s address, facsimile number or electronic mail address as shown on the signature page of this Agreement or in the Company’s records, as may be updated in accordance with the provisions hereof; or

(b)            if to the Company, to the attention of the General Counsel of the Company at 3993 Howard Hughes Parkway, Suite 780, Las Vegas, Nevada 89169, or at such other current address as the Company shall have furnished to Indemnitee, with copies (which shall not constitute notice) to Jon C. Avina, Esq., Wilson Sonsini Goodrich & Rosati, P.C., 650 Page Mill Road, Palo Alto, California 94304.

Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered by hand, messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight prepaid, specifying next-business-day delivery, one business day after deposit with the courier), (ii) if sent via mail, at the earlier of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile transfer or, if sent via electronic mail, upon confirmation of delivery when directed to the relevant electronic mail address, if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then on the recipient’s next business day.

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27.            Applicable Law and Consent to Jurisdiction .  This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules.  Except with respect to any arbitration commenced by Indemnitee pursuant to Section 12(a), above, or by the Company or Indemnitee pursuant to a written agreement between the Company and Indemnitee providing for such, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court of Chancery, and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court of Chancery for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) appoint, to the extent such party is not otherwise subject to service of process in the Delaware Court of Chancery, [            ], as its agent in the State of Delaware as such party’s agent for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court of Chancery, and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court of Chancery has been brought in an improper or inconvenient forum.

28.            Counterparts .  This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.  This Agreement may also be executed and delivered by facsimile signature and in counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.  Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

29.            Captions .  The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

(signature page follows)

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The parties are signing this Indemnification Agreement as of the date stated in the introductory sentence.

 
RIMINI STREET, INC.
   
   
 
( Signature )
   
   
 
( Print name )
   
   
 
( Title )
   
 
[ INSERT INDEMNITEE NAME ]
   
   
 
( Signature )
   
   
 
( Print name )
   
   
 
( Street address )
   
   
 
( City, State and ZIP )



Exhibit 10.19
 
RIMINI STREET, INC.

2007 STOCK PLAN

 (As amended December 21, 2007)
(As amended March 25, 2009)
(As amended January 4, 2011)
(As amended August 1, 2012)
(As Amended September 30, 2013)

1.              Purposes of the Plan .  The purposes of this Plan are to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to Employees, Directors and Consultants and to promote the success of the Company’s business.  The Plan permits the grant of Options and Stock Purchase Rights as the Administrator may determine.

2.               Definitions .  As used herein, the following definitions shall apply:

(a)             Administrator ” means the Board or any of its Committees as shall be administering the Plan in accordance with Section 4 hereof.

(b)             Applicable Laws ” means the requirements relating to the administration of equity compensation plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any other country or jurisdiction where Awards are granted under the Plan.

(c)            Award ” means, individually or collectively, a grant under the Plan of Options or Stock Purchase Rights.

(d)            Award Agreement ” means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan.  The Award Agreement is subject to the terms and conditions of the Plan.

(e)            Board ” means the Board of Directors of the Company.

(f)             Change in Control ” means the occurrence of any of the following events:
 
(i)            Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities, except that any change in the beneficial ownership of the securities of the Company as a result of a private financing of the Company that is approved by the Board, shall not be deemed to be a Change in Control; or

(ii)           The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets; or
 

(iii)          If the Company has filed a registration statement declared effective pursuant to Section 12(g) of the Exchange Act with respect to any of the Company’s securities, a change in the composition of the Board occurring within a two (2) year period, as a result of which fewer than a majority of the directors are Incumbent Directors.  “Incumbent Directors” means directors who either (A) are Directors as of the effective date of the Plan, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); or

(iv)          The consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

For the avoidance of doubt, a transaction shall not constitute a Change in Control if: (i) its sole purpose is to change the state of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that shall be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.

(g)             Code ” means the Internal Revenue Code of 1986, as amended.  Any reference to a section of the Code herein shall be a reference to any successor or amended section of the Code.

(h)            Committee ” means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board, or by the compensation committee of the Board, in accordance with Section 4 hereof.

(i)             Common Stock ” means the Common Stock of the Company.

(j)              Company ” means Rimini Street, Inc., a Nevada corporation.

(k)             Consultant ” means any person who is engaged by the Company or any Parent or Subsidiary to render consulting or advisory services to such entity.

(l)              Director ” means a member of the Board.

(m)            Disability ” means total and permanent disability as defined in Section 22(e)(3) of the Code.

(n)             Employee ” means any person, including officers and Directors, employed by the Company or any Parent or Subsidiary of the Company.  Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company.

(o)            Exchange Act ” means the Securities Exchange Act of 1934, as amended.

(p)             Exchange Program ” means a program under which (i) outstanding Options are surrendered or cancelled in exchange for Options of the same type (which may have lower or higher exercise prices and different terms), Options of a different type, and/or cash, and/or (ii) the exercise price of an outstanding Option is reduced.  The terms and conditions of any Exchange Program shall be determined by the Administrator in its sole discretion.
 
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(q)            Fair Market Value ” means, as of any date, the value of Common Stock determined as follows:

(i)            If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq Global Market, the Nasdaq Global Select Market or the Nasdaq Capital Market, its Fair Market Value shall be the closing sales price for such stock (or, if no closing sales price was reported on that date, as applicable, on the last trading date such closing sales price was reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

(ii)           If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high bid and low asked prices for the Common Stock on the day of determination (or, if no bids and asks were reported on that date, as applicable, on the last trading date such bids and asks were reported); or

(iii)          In the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Administrator.

(r)             Incentive Stock Option ” means an Option that by its terms qualifies and is otherwise intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

(s)             Nonstatutory Stock Option ” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.

(t)              Option ” means a stock option granted pursuant to the Plan.

(u)             Parent ” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

(v)             Participant ” means the holder of an outstanding Award.

(w)            Plan ” means this 2007 Stock Plan.

(x)             Restricted Stock ” means Shares issued pursuant to a Stock Purchase Right or Shares of restricted stock issued pursuant to an Option.

(y)            Restricted Stock Purchase Agreement ” means a written or electronic agreement between the Company and the Participant evidencing the terms and restrictions applying to Shares purchased under a Stock Purchase Right.  The Restricted Stock Purchase Agreement is subject to the terms and conditions of the Plan and the notice of grant.

(z)             Securities Act ” means the Securities Act of 1933, as amended.

(aa)           Service Provider ” means an Employee, Director or Consultant.
 
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(bb)          Share ” means a share of the Common Stock, as adjusted in accordance with Section 11 below.

(cc)           Stock Purchase Right ” means a right to purchase Common Stock pursuant to Section 7 below.

(dd)          Subsidiary ” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code.

3.               Stock Subject to the Plan .  Subject to the provisions of Section 11 of the Plan, the maximum aggregate number of Shares that may be subject to Awards and sold under the Plan is 58,378,371 Shares.  The Shares may be authorized but unissued, or reacquired Common Stock.

If an Award expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to an Exchange Program, the unpurchased Shares that were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated).  However, Shares that have actually been issued under the Plan, upon exercise of an Award, shall not be returned to the Plan and shall not become available for future distribution under the Plan, except that if unvested Shares of Restricted Stock are repurchased by the Company at their original purchase price, such Shares shall become available for future grant under the Plan.  Notwithstanding the foregoing and, subject to adjustment provided in Section 11, the maximum number of Shares that may be issued upon the exercise of Incentive Stock Options shall equal the aggregate Share number stated in the first paragraph of this Section, plus, to the extent allowable under Section 422 of the Code, any Shares that become available for issuance under the Plan under this second paragraph of this Section.

4.              Administration of the Plan .

(a)             Administrator .  The Plan shall be administered by the Board or a Committee appointed by the Board, which Committee shall be constituted to comply with Applicable Laws.

(b)             Powers of the Administrator .  Subject to the provisions of the Plan and, in the case of a Committee, the specific duties delegated by the Board to such Committee, and subject to the approval of any relevant authorities, the Administrator shall have the authority in its discretion:

(i)            to determine the Fair Market Value;

(ii)           to select the Service Providers to whom Awards may from time to time be granted hereunder;

(iii)         to determine the number of Shares to be covered by each such Award granted hereunder;

(iv)          to approve forms of agreement for use under the Plan;

(v)           to determine the terms and conditions of any Award granted hereunder.  Such terms and conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine;
 
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(vi)          to institute an Exchange Program;

(vii)         to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws;

(viii)        to modify or amend each Award (subject to Section 19(c) of the Plan) including but not limited to the discretionary authority to extend the post-termination exercise period of Awards and to extend the maximum term of an Option (subject to Section 6(a) regarding Incentive Stock Options);

(ix)          to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator; and

(x)            to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan.

(c)            Effect of Administrator’s Decision .  All decisions, determinations and interpretations of the Administrator shall be final and binding on all Participants.

5.               Eligibility .  Nonstatutory Stock Options and Stock Purchase Rights may be granted to Service Providers.  Incentive Stock Options may be granted only to Employees.

6.              Stock Options .

(a)            Term of Option .  The term of each Option shall be stated in the Award Agreement; provided , however , that the term shall be no more than ten (10) years from the date of grant thereof.  In the case of an Incentive Stock Option granted to a Participant who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Award Agreement.

(b)            Option Exercise Price and Consideration .

(i)            Exercise Price .  The per share exercise price for the Shares to be issued upon exercise of an Option shall be such price as is determined by the Administrator, but shall be subject to the following:
 
                                                              (A)            In the case of an Option
 
                                                                              a)            granted to an Employee who, at the time of grant of such Option, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the exercise price shall be no less than one hundred and ten percent (110%) of the Fair Market Value per Share on the date of grant.
 
                                                                              b)            granted to any other Employee, the per Share exercise price shall be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.
 
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                                                              (B)            Notwithstanding the foregoing, Options may be granted with a per Share exercise price other than as required above in accordance with and pursuant to a transaction described in Section 424 of the Code.

(ii)           Forms of Consideration .  The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant).  Such consideration may consist of, without limitation, (1) cash, (2) check, (3) promissory note, to the extent permitted by Applicable Laws, (4) other Shares, provided that such Shares have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option shall be exercised and provided that accepting such Shares, in the sole discretion of the Administrator, shall not result in any adverse accounting consequences to the Company, (5) consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan, (6) such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws, or (7) any combination of the foregoing methods of payment.  In making its determination as to the type of consideration to accept, the Administrator shall consider if acceptance of such consideration may be reasonably expected to benefit the Company.

(c)             Exercise of Option .

(i)            Procedure for Exercise; Rights as a Stockholder .  Any Option granted hereunder shall be exercisable according to the terms hereof at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement.  An Option may not be exercised for a fraction of a Share.  Except in the case of Options granted to officers, Directors and Consultants, Options shall become exercisable at a rate of no less than twenty percent (20%) per year over five (5) years from the date the Options are granted.

An Option shall be deemed exercised when the Company receives (i) written or electronic notice of exercise (in accordance with the Award Agreement) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised, together with any applicable withholding taxes.  Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan.  Shares issued upon exercise of an Option shall be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse.  Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option.  The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised.  No adjustment shall be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 11 of the Plan.

Exercise of an Option in any manner shall result in a decrease in the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

(ii)           Termination of Relationship as a Service Provider .  If a Participant ceases to be a Service Provider, such Participant may exercise his or her Option within thirty (30) days of termination, or such other period of time as specified in the Award Agreement, to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of the Option as set forth in the Award Agreement).  Unless the Administrator provides otherwise, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan.  If, after termination, the Participant does not exercise his or her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.
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(iii)          Disability of Participant .  If a Participant ceases to be a Service Provider as a result of the Participant’s Disability, the Participant may exercise his or her Option within six (6) months of termination, or such longer period of time as specified in the Award Agreement, to the extent the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement).  Unless the Administrator provides otherwise, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan.  If, after termination, the Participant does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

(iv)          Death of Participant .  If a Participant dies while a Service Provider, the Option may be exercised within six (6) months following the Participant’s death, or such longer period of time as specified in the Award Agreement, to the extent that the Option is vested on the date of death (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement) by the Participant’s designated beneficiary, provided such beneficiary has been designated prior to the Participant’s death in a form acceptable to the Administrator.  If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent and distribution.  If, at the time of death, the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall immediately revert to the Plan.  If the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

(v)           Incentive Stock Option Limit .  Each Option shall be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.  However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such Options shall be treated as Nonstatutory Stock Options.  For purposes of this Section 6(c)(v), Incentive Stock Options shall be taken into account in the order in which they were granted.  The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is granted.

7.              Stock Purchase Rights .

(a)            Rights to Purchase .  Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other awards granted under the Plan and/or cash awards made outside of the Plan.  After the Administrator determines that it shall offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing or electronically of the terms, conditions and restrictions related to the offer, including the number of Shares that such person shall be entitled to purchase, the price to be paid, and the time within which such person must accept such offer.

(b)            Repurchase Option .  Unless the Administrator determines otherwise, the Restricted Stock Purchase Agreement shall grant the Company a repurchase option according to the following terms: the repurchase price shall be at the original purchase price, provided that the right to repurchase must be exercised for cash or cancellation of any indebtedness of the purchaser to the Company within ninety (90) days of the voluntary or involuntary termination of the purchaser’s service with the Company for any reason (including death or disability).
 
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(c)             Terms .  The following terms shall apply to all Stock Purchase Rights granted under the Plan:
 
(i)            Except with respect to Shares purchased by officers, Directors and Consultants, the repurchase option shall in no case lapse at a rate of less than twenty percent (20%) per year over five (5) years from the date of purchase;

(ii)           Stock Purchase Rights granted to any Service Provider shall have a purchase price that is not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant or on the date of purchase;
 
(iii)          The term of each Stock Purchase Right shall be stated in the Restricted Stock Purchase Agreement; provided , however , that the term shall be no more than ten (10) years from the date of grant thereof.

(d)             Other Provisions .  The Restricted Stock Purchase Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion.

(e)             Rights as a Stockholder .  Once the Stock Purchase Right is exercised, the purchaser shall have rights equivalent to those of a stockholder and shall be a stockholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company.  No adjustment shall be made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 11 of the Plan.

8.              Tax Withholding .  Prior to the delivery of any Shares pursuant to an Award (or exercise thereof), the Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local, foreign or other taxes (including the Participant’s FICA obligation) required to be withheld with respect to such Award (or exercise thereof).  The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time, shall determine in what manner it shall allow a Participant to satisfy such tax withholding obligation and may permit the Participant to satisfy such tax withholding obligation, in whole or in part by one (1) or more of the following: (a) paying cash (or by check), (b) electing to have the Company withhold otherwise deliverable Shares having a Fair Market Value equal to the minimum amount statutorily required to be withheld, or (c) selling a sufficient number of such Shares otherwise deliverable to a Participant through such means as the Company may determine in its sole discretion (whether through a broker or otherwise) equal to the minimum amount statutorily required to be withheld.

9.              Limited Transferability of Awards .  Unless determined otherwise by the Administrator, Awards may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or the laws of descent and distribution, and may be exercised during the lifetime of the Participant, only by the Participant.  If the Administrator in its sole discretion makes an Award transferable, such Award may only be transferred (i) by will, (ii) by the laws of descent and distribution, or (iii) to family members (within the meaning of Rule 701 of the Securities Act) through gifts or domestic relations orders, as permitted by Rule 701 of the Securities Act.
 
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10.             Leaves of Absence; Transfers .

(a)             Unless the Administrator provides otherwise, or except as otherwise required by Applicable Laws, vesting of Awards granted hereunder to officers, Directors and Consultants shall be suspended during any unpaid leave of absence.

(b)            A Service Provider shall not cease to be a Service Provider in the case of (i) any leave of absence approved by the Company, or (ii) transfers between locations of the Company or between the Company, its Parent, any Subsidiary, or any successor.

(c)             For purposes of Incentive Stock Options, no such leave may exceed three (3) months, unless reemployment upon expiration of such leave is guaranteed by statute or contract.  If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then six (6) months following the first (1st) day of such leave, any Incentive Stock Option held by the Participant shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option.

11.             Adjustments; Dissolution or Liquidation; Merger or Change in Control .

(a)             Adjustments .  In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, shall adjust the number and class of Shares that may be delivered under the Plan and/or the number, class, and price of Shares covered by each outstanding Award; provided , however , that the Administrator shall make such adjustments to the extent required by Section 25102(o) of the California Corporations Code.

(b)            Dissolution or Liquidation .  In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each Participant as soon as practicable prior to the effective date of such proposed transaction.  To the extent it has not been previously exercised, an Award shall terminate immediately prior to the consummation of such proposed action.

(c)            Merger or Change in Control .  In the event of a merger or Change in Control, each outstanding Award shall be treated as the Administrator determines, including, without limitation, that each Award be assumed or an equivalent award substituted by the successor corporation or a Parent or Subsidiary of the successor corporation.  The Administrator shall not be required to treat all Awards similarly in the transaction.

Notwithstanding the foregoing, in the event that the successor corporation does not assume or substitute for the Award, the Participant shall fully vest in and have the right to exercise his or her outstanding Awards, including Shares as to which such Award would not otherwise be vested or exercisable, and restrictions on all of the Participant’s Stock Purchase Rights and Restricted Stock shall lapse.  In addition, if an Award is not assumed or substituted in the event of a merger or Change in Control, the Administrator shall notify the Participant in writing or electronically that the Award shall be fully vested and exercisable for a period of time determined by the Administrator in its sole discretion, and any Award not assumed or substituted for shall terminate upon the expiration of such period for no consideration, unless otherwise determined by the Administrator.
 
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For the purposes of this Section 11(c), the Award shall be considered assumed if, following the merger or Change in Control, the option or right confers the right to purchase or receive, for each Share subject to the Award immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided , however , that if such consideration received in the merger or Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Award, for each Share subject to the Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of common stock in the merger or Change in Control.

12.            Time of Granting Awards .  The date of grant of an Award shall, for all purposes, be the date on which the Administrator makes the determination granting such Award, or such later date as is determined by the Administrator.  Notice of the determination shall be given to each Service Provider to whom an Award is so granted within a reasonable time after the date of such grant.

13.            No Effect on Employment or Service .  Neither the Plan nor any Award shall confer upon any participant any right with respect to continuing the Participant’s relationship as a Service Provider with the Company, nor shall it interfere in any way with his or her right or the Company’s right to terminate such relationship at any time, with or without cause, and with or without notice.

14.            Conditions Upon Issuance of Shares .

(a)            Legal Compliance .  Shares shall not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance.

(b)             Investment Representations .  As a condition to the exercise of an Award, the Administrator may in its discretion require the person exercising such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares.

15.            Inability to Obtain Authority .  The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

16.            Reservation of Shares .  The Company, during the term of this Plan, shall at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

17.            Stockholder Approval .  The Plan shall be subject to approval by the stockholders of the Company within twelve (12) months after the date the Plan is adopted.  Such stockholder approval shall be obtained in the degree and manner required under Applicable Laws.

18.            Term of Plan .  Subject to stockholder approval in accordance with Section 17, the Plan shall become effective upon its adoption by the Board.  Unless sooner terminated under Section 19, it shall continue in effect for a term of ten (10) years from the later of (a) the effective date of the Plan, or (b) the earlier of the most recent Board or stockholder approval of an increase in the number of Shares reserved for issuance under the Plan.
 
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19.             Amendment and Termination of the Plan .

(a)             Amendment and Termination .  The Board may at any time amend, alter, suspend or terminate the Plan.

(b)             Stockholder Approval .  The Board shall obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws.

(c)             Effect of Amendment or Termination .  No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing (which may include e-mail) and signed by the Participant and the Company.  Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to the date of such termination.

20.             Information to Participants .  The Company shall provide to each Participant and to each individual who acquires Shares pursuant to the Plan, not less frequently than annually during the period such Participant has one or more Awards outstanding, and, in the case of an individual who acquires Shares pursuant to the Plan, during the period such individual owns such Shares, copies of annual financial statements.  The Company shall not be required to provide such statements to key employees whose duties in connection with the Company assure their access to equivalent information.
 
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RIMINI STREET, INC.

2007 STOCK PLAN

STOCK OPTION AGREEMENT

Unless otherwise defined herein, the terms defined in the 2007 Stock Plan (the “Plan”) shall have the same defined meanings in this Stock Option Agreement (the “Option Agreement”).

I.
NOTICE OF STOCK OPTION GRANT

Name:

Address:

The undersigned Participant has been granted an Option to purchase Common Stock of the Company, subject to the terms and conditions of the Plan and this Option Agreement, as follows:

Date of Grant
 
   
Vesting Commencement Date
 
     
Exercise Price per Share
$
 
   
Total Number of Shares Granted
 
     
Total Exercise Price
$
     
Type of Option:
 
Incentive Stock Option
     
   
Nonstatutory Stock Option
   
Term/Expiration Date:
 

Vesting Schedule :

This Option shall be exercisable, in whole or in part, according to the following vesting schedule:

1/3 of the Shares subject to the Option shall vest on the one (1) year anniversary of the Vesting Commencement Date, and 1/3 of the Shares subject to the Option shall vest each year thereafter on the same day of the month as the Vesting Commencement Date (and if there is no corresponding day, on the last day of the month), subject to Participant continuing to be a Service Provider through each such date.

Termination Period :

This Option shall be exercisable for three (3) months after Participant ceases to be a Service Provider, unless such termination is due to Participant’s death or Disability, in which case this Option shall be exercisable for twelve (12) months after Participant ceases to be a Service Provider.  Notwithstanding the foregoing sentence, in no event may this Option be exercised after the Term/Expiration Date as provided above.  In addition, this Option may be subject to earlier termination as provided in Section 11(c) of the Plan.
 

II.
AGREEMENT

1.              Grant of Option .  The Administrator of the Plan hereby grants to the Participant named in the Notice of Stock Option Grant in Part I of this Agreement (“Participant”), an option (the “Option”) to purchase the number of Shares set forth in the Notice of Stock Option Grant, at the exercise price per Share set forth in the Notice of Stock Option Grant (the “Exercise Price”), and subject to the terms and conditions of the Plan, which is incorporated herein by reference.  Subject to Section 19(c) of the Plan, in the event of a conflict between the terms and conditions of the Plan and this Option Agreement, the terms and conditions of the Plan shall prevail.

If designated in the Notice of Stock Option Grant as an Incentive Stock Option (“ISO”), this Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code.  Nevertheless, to the extent that it exceeds the $100,000 rule of Code Section 422(d), this Option shall be treated as a Nonstatutory Stock Option (“NSO”).  Further, if for any reason this Option (or portion thereof) shall not qualify as an ISO, then, to the extent of such nonqualification, such Option (or portion thereof) shall be regarded as a NSO granted under the Plan.  In no event shall the Administrator, the Company or any Parent or Subsidiary or any of their respective employees or directors have any liability to Participant (or any other person) due to the failure of the Option to qualify for any reason as an ISO.

2.               Exercise of Option .

(a)            Right to Exercise .  This Option shall be exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Stock Option Grant and with the applicable provisions of the Plan and this Option Agreement.

(b)             Method of Exercise .  This Option shall be exercisable by delivery of an exercise notice in the form attached as Exhibit A (the “Exercise Notice”) or in a manner and pursuant to such procedures as the Administrator may determine, which shall state the election to exercise the Option, the number of Shares with respect to which the Option is being exercised, and such other representations and agreements as may be required by the Company.  The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares, together with any applicable tax withholding.  This Option shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by the aggregate Exercise Price, together with any applicable tax withholding.

 No Shares shall be issued pursuant to the exercise of an Option unless such issuance and such exercise comply with Applicable Laws.  Assuming such compliance, for income tax purposes the Shares shall be considered transferred to Participant on the date on which the Option is exercised with respect to such Shares.

3.              Participant’s Representations .  In the event the Shares have not been registered under the Securities Act of 1933, as amended, at the time this Option is exercised, Participant shall, if required by the Company, concurrently with the exercise of all or any portion of this Option, deliver to the Company his or her Investment Representation Statement in the form attached hereto as Exhibit B .

4.              Lock-Up Period .  Participant hereby agrees that Participant shall not offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any Common Stock (or other securities) of the Company or enter into any swap, hedging or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any Common Stock (or other securities) of the Company held by Participant (other than those included in the registration) for a period specified by the representative of the underwriters of Common Stock (or other securities) of the Company not to exceed one hundred eighty (180) days following the effective date of any registration statement of the Company filed under the Securities Act (or such other period as may be requested by the Company or the underwriters to accommodate regulatory restrictions on (i) the publication or other distribution of research reports and (ii) analyst recommendations and opinions, including, but not limited to, the restrictions contained in NASD Rule 2711(f)(4) or NYSE Rule 472(f)(4), or any successor provisions or amendments thereto).
 
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Participant agrees to execute and deliver such other agreements as may be reasonably requested by the Company or the underwriter which are consistent with the foregoing or which are necessary to give further effect thereto.  In addition, if requested by the Company or the representative of the underwriters of Common Stock (or other securities) of the Company, Participant shall provide, within ten (10) days of such request, such information as may be required by the Company or such representative in connection with the completion of any public offering of the Company’s securities pursuant to a registration statement filed under the Securities Act.  The obligations described in this Section 4 shall not apply to a registration relating solely to employee benefit plans on Form S-1 or Form S-8 or similar forms that may be promulgated in the future, or a registration relating solely to a Commission Rule 145 transaction on Form S-4 or similar forms that may be promulgated in the future.  The Company may impose stop-transfer instructions with respect to the shares of Common Stock (or other securities) subject to the foregoing restriction until the end of said one hundred eighty (180) day (or other) period.  Participant agrees that any transferee of the Option or shares acquired pursuant to the Option shall be bound by this Section 4.

5.               Method of Payment .  Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the Participant:

(a)             cash;

(b)            check;

(c)             consideration received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan; or

(d)            surrender of other Shares which (i) shall be valued at its Fair Market Value on the date of exercise, and (ii) must be owned free and clear of any liens, claims, encumbrances or security interests, if accepting such Shares, in the sole discretion of the Administrator, shall not result in any adverse accounting consequences to the Company.

6.              Restrictions on Exercise .  This Option may not be exercised until such time as the Plan has been approved by the shareholders of the Company, or if the issuance of such Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation of any Applicable Law.

7.               Non-Transferability of Option .  This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Participant only by Participant.  The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of Participant.

8.              Term of Option .  This Option may be exercised only within the term set out in the Notice of Stock Option Grant, and may be exercised during such term only in accordance with the Plan and the terms of this Option.
 
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9.               Tax Obligations .

(a)             Tax Withholding .  Participant agrees to make appropriate arrangements with the Company (or the Parent or Subsidiary employing or retaining Participant) for the satisfaction of all Federal, state, local and foreign income and employment tax withholding requirements applicable to the Option exercise.  Participant acknowledges and agrees that the Company may refuse to honor the exercise and refuse to deliver the Shares if such withholding amounts are not delivered at the time of exercise.

(b)             Notice of Disqualifying Disposition of ISO Shares .  If the Option granted to Participant herein is an ISO, and if Participant sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (i) the date two (2) years after the Date of Grant, or (ii) the date one (1) year after the date of exercise, Participant shall immediately notify the Company in writing of such disposition.  Participant agrees that Participant may be subject to income tax withholding by the Company on the compensation income recognized by Participant.

(c)             Code Section 409A .  Under Code Section 409A, an Option that vests after December 31, 2004 that was granted with a per Share exercise price that is determined by the Internal Revenue Service (the “IRS”) to be less than the Fair Market Value of a Share on the date of grant (a “discount option”) may be considered “deferred compensation.” An Option that is a “discount option” may result in (i) income recognition by Participant prior to the exercise of the Option, (ii) an additional twenty percent (20%) federal income tax, and (iii) potential penalty and interest charges.  The “discount option” may also result in additional state income, penalty and interest tax to the Participant.  Participant acknowledges that the Company cannot and has not guaranteed that the IRS will agree that the per Share exercise price of this Option equals or exceeds the Fair Market Value of a Share on the date of grant in a later examination.  Participant agrees that if the IRS determines that the Option was granted with a per Share exercise price that was less than the Fair Market Value of a Share on the date of grant, Participant shall be solely responsible for Participant’s costs related to such a determination.

10.             Entire Agreement; Governing Law .  The Plan is incorporated herein by reference.  The Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof, and may not be modified adversely to Participant’s interest except by means of a writing signed by the Company and Participant.  This Agreement is governed by the internal substantive laws but not the choice of law rules of Delaware.

11.             No Guarantee of Continued Service .  PARTICIPANT ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER.  PARTICIPANT FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH PARTICIPANT’S RIGHT OR THE RIGHT OF THE COMPANY (OR THE PARENT OR SUBSIDIARY EMPLOYING OR RETAINING PARTICIPANT) TO TERMINATE PARTICIPANT’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.
 
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Participant acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Option subject to all of the terms and provisions thereof.  Participant has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and fully understands all provisions of the Option.  Participant hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or this Option.  Participant further agrees to notify the Company upon any change in the residence address indicated below.

PARTICIPANT
 
RIMINI STREET, INC.
     
Signature
 
By
     
Print Name
 
Print Name
     
   
Title
     
Residence Address
   
 

EXHIBIT A

2007 STOCK PLAN
EXERCISE NOTICE

Rimini Street, Inc.
7251 West Lake Mead Blvd., Suite 300
Las Vegas, Nevada 89128
Attention: Seth Ravin

1.               Exercise of Option .  Effective as of today,                 ,             , the undersigned (“Participant”) hereby elects to exercise Participant’s option (the “Option”) to purchase                      shares of the Common Stock (the “Shares”) of Rimini Street, Inc. (the “Company”) under and pursuant to the 2007 Stock Plan (the “Plan”) and the Stock Option Agreement dated                     ,              (the “Option Agreement”).

2.               Delivery of Payment .  Participant herewith delivers to the Company the full purchase price of the Shares, as set forth in the Option Agreement, and any and all withholding taxes due in connection with the exercise of the Option.

3.               Representations of Participant .  Participant acknowledges that Participant has received, read and understood the Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions.

4.               Rights as Shareholder .  Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Common Stock subject to an Award, notwithstanding the exercise of the Option.  The Shares shall be issued to Participant as soon as practicable after the Option is exercised in accordance with the Option Agreement.  No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance except as provided in Section 11 of the Plan.

5.               Company’s Right of First Refusal .  Before any Shares held by Participant or any transferee (either being sometimes referred to herein as the “Holder”) may be sold or otherwise transferred (including transfer by gift or operation of law), the Company or its assignee(s) shall have a right of first refusal to purchase the Shares on the terms and conditions set forth in this Section 5 (the “Right of First Refusal”).

(a)             Notice of Proposed Transfer .  The Holder of the Shares shall deliver to the Company a written notice (the “Notice”) stating: (i) the Holder’s bona fide intention to sell or otherwise transfer such Shares; (ii) the name of each proposed purchaser or other transferee (“Proposed Transferee”); (iii) the number of Shares to be transferred to each Proposed Transferee; and (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer the Shares (the “Offered Price”), and the Holder shall offer the Shares at the Offered Price to the Company or its assignee(s).

(b)             Exercise of Right of First Refusal .  At any time within thirty (30) days after receipt of the Notice, the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all, but not less than all, of the Shares proposed to be transferred to any one or more of the Proposed Transferees, at the purchase price determined in accordance with subsection (c) below.
 

(c)             Purchase Price .  The purchase price (“Purchase Price”) for the Shares purchased by the Company or its assignee(s) under this Section 5 shall be the Offered Price.  If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Board of Directors of the Company in good faith.

(d)             Payment .  Payment of the Purchase Price shall be made, at the option of the Company or its assignee(s), in cash (by check), by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any combination thereof within thirty (30) days after receipt of the Notice or in the manner and at the times set forth in the Notice.

(e)             Holder’s Right to Transfer .  If all of the Shares proposed in the Notice to be transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section 5, then the Holder may sell or otherwise transfer such Shares to that Proposed Transferee at the Offered Price or at a higher price, provided that such sale or other transfer is consummated within one hundred and twenty (120) days after the date of the Notice, that any such sale or other transfer is effected in accordance with any applicable securities laws and that the Proposed Transferee agrees in writing that the provisions of this Section 5 shall continue to apply to the Shares in the hands of such Proposed Transferee.  If the Shares described in the Notice are not transferred to the Proposed Transferee within such period, a new Notice shall be given to the Company, and the Company and/or its assignees shall again be offered the Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred.

(f)              Exception for Certain Family Transfers .  Anything to the contrary contained in this Section 5 notwithstanding, the transfer of any or all of the Shares during Participant’s lifetime or on Participant’s death by will or intestacy to Participant’s immediate family or a trust for the benefit of Participant’s immediate family shall be exempt from the provisions of this Section 5.  “Immediate Family” as used herein shall mean spouse, lineal descendant or antecedent, father, mother, brother or sister.  In such case, the transferee or other recipient shall receive and hold the Shares so transferred subject to the provisions of this Section 5, and there shall be no further transfer of such Shares except in accordance with the terms of this Section 5.

(g)            Termination of Right of First Refusal .  The Right of First Refusal shall terminate as to any Shares upon the earlier of (i) the first sale of Common Stock of the Company to the general public, or (ii) a Change in Control in which the successor corporation has equity securities that are publicly traded.

6.                Drag-Along Restrictions .

(a)             If (i) the Company’s Board of Directors and (ii) the holders of at least a majority of the then outstanding shares of Common Stock and Preferred Stock of the Company (voting together as a single class), approve a Change of Control Transaction (as defined below), then Participant agrees (i) to vote all Shares held by Participant in favor of such Change of Control Transaction, and (ii) to sell or exchange all Shares then held by Participant pursuant to the terms and conditions of such Change of Control Transaction (“Drag-Along Restrictions”), subject to the following conditions:

(i)           Participant shall not be required to make any representation, covenant or warranty in connection with the Change of Control Transaction, other than as to Participant’s ownership and authority to sell, free of liens, claims and encumbrances, the Shares proposed to be sold by Participant;
 
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(ii)           the consideration payable with respect to each share in each class or series as a result of such Change of Control Transaction is the same (except for cash payments in lieu of fractional shares) as for each other share in such class or series;
 
(iii)          each class and series of capital stock of the Company will be entitled to receive the same form of consideration (and be subject to the same indemnity and escrow provisions) as a result of such Change of Control Transaction; and
 
(iv)          the payment with respect to each share of Common Stock and Preferred Stock is an amount at least equal to the amount payable in accordance with the Company’s articles of incorporation, as amended, if such Change of Control Transaction were deemed a liquidation, dissolution or winding up pursuant to the terms of the Company’s articles of incorporation, as amended.

(b)             For purposes of this Section 6, a “Change of Control Transaction” shall mean either (a) the acquisition of the Company by another entity by means of any transaction or series of related transactions to which the Company is party (including, without limitation, any stock acquisition, reorganization, merger or consolidation but excluding any sale of stock for capital raising purposes) that results in the voting securities of the Company outstanding immediately prior thereto failing to represent immediately after such transaction or series of transactions (either by remaining outstanding or by being converted into voting securities of the surviving entity or the entity that controls such surviving entity) a majority of the total voting power represented by the outstanding voting securities of the Company, such surviving entity or the entity that controls such surviving entity; or (b) a sale, lease or other conveyance of all or substantially all of the assets of the Company; provided , however , that a Change of Control Transaction shall not be deemed to be occassioned by, or to include, (a) a consolidation with a wholly-owned subsidiary of the Company for organizational purposes, (b) a merger effected exclusively to change the domicile of the Company, or (c) a bona fide equity financing for capital raising purposes in which the Company is the surviving corporation.

(c)             Notwithstanding anything herein to the contrary, the provisions set forth in this Section 6 shall only be effective to the extent that all shareholders of the Company are bound by substantially similar Drag-Along Restrictions.

7.               Tax Consultation .  Participant understands that Participant may suffer adverse tax consequences as a result of Participant’s purchase or disposition of the Shares.  Participant represents that Participant has consulted with any tax consultants Participant deems advisable in connection with the purchase or disposition of the Shares and that Participant is not relying on the Company for any tax advice.

8.                Restrictive Legends and Stop-Transfer Orders .

(a)             Legends .  Participant understands and agrees that the Company shall cause the legends set forth below or legends substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by the Company or by state or federal securities laws:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.
 
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THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND A RIGHT OF FIRST REFUSAL HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER.  SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES.

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFER FOR A PERIOD OF TIME FOLLOWING THE EFFECTIVE DATE OF THE UNDERWRITTEN PUBLIC OFFERING OF THE COMPANY’S SECURITIES SET FORTH IN AN AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF BY THE HOLDER PRIOR TO THE EXPIRATION OF SUCH PERIOD WITHOUT THE CONSENT OF THE COMPANY OR THE MANAGING UNDERWRITER.

(b)             Stop-Transfer Notices .  Participant agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

(c)             Refusal to Transfer .  The Company shall not be required (i) to transfer on its books any Shares that have been sold or otherwise transferred in violation of any of the provisions of this Exercise Notice, or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such Shares shall have been so transferred.

9.                Successors and Assigns .  The Company may assign any of its rights under this Exercise Notice to single or multiple assignees, and this Exercise Notice shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, this Exercise Notice shall be binding upon Participant and his or her heirs, executors, administrators, successors and assigns.

10.              Interpretation .  Any dispute regarding the interpretation of this Exercise Notice shall be submitted by Participant or by the Company forthwith to the Administrator which shall review such dispute at its next regular meeting.  The resolution of such a dispute by the Administrator shall be final and binding on all parties.

11.              Governing Law; Severability .  This Exercise Notice is governed by the internal substantive laws but not the choice of law rules, of Delaware.  In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Exercise Notice shall continue in full force and effect.
 
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12.             Entire Agreement .  The Plan and Option Agreement are incorporated herein by reference.  This Exercise Notice, the Plan, the Option Agreement and the Investment Representation Statement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Participant with respect to the subject matter hereof, and may not be modified adversely to the Participant’s interest except by means of a writing signed by the Company and Participant.

Submitted by:
 
Accepted by:
     
PARTICIPANT
 
RIMINI STREET, INC.
     
Signature
 
By
     
Print Name
 
Print Name
     
   
Title
     
Address:
 
Address:
     
     
     
   
Date Received
 
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EXHIBIT B

INVESTMENT REPRESENTATION STATEMENT
 
PARTICIPANT:
 
   
COMPANY:
RIMINI STREET, INC.
   
SECURITY:
COMMON STOCK
   
AMOUNT:
                       SHARES
   
DATE:
 

In connection with the purchase of the above-listed Securities, the undersigned Participant represents to the Company the following:

(a)              Participant is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities.  Participant is acquiring these Securities for investment for Participant’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”).

(b)              Participant acknowledges and understands that the Securities constitute “restricted securities” under the Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Participant’s investment intent as expressed herein.  In this connection, Participant understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Participant’s representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future.  Participant further understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such registration is available.  Participant further acknowledges and understands that the Company is under no obligation to register the Securities.  Participant understands that the certificate evidencing the Securities shall be imprinted with any legend required under applicable state securities laws.

(c)              Participant is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of “restricted securities” acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions.  Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to Participant, the exercise shall be exempt from registration under the Securities Act.  In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under Rule 701 may be resold, subject to the satisfaction of certain of the conditions specified by Rule 144, including: (1) the resale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly with a market maker (as said term is defined under the Securities Exchange Act of 1934); and, in the case of an affiliate, (2) the availability of certain public information about the Company, (3) the amount of Securities being sold during any three (3) month period not exceeding the limitations specified in Rule 144(e), and (4) the timely filing of a Form 144, if applicable.
 

In the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then the Securities may be resold in certain limited circumstances subject to the provisions of Rule 144, which requires the resale to occur not less than one (1) year after the later of the date the Securities were sold by the Company or the date the Securities were sold by an affiliate of the Company, within the meaning of Rule 144; and, in the case of acquisition of the Securities by an affiliate, or by a non-affiliate who subsequently holds the Securities less than two (2) years, the satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of the paragraph immediately above.

(d)             Participant further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption shall be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rules 144 or 701 shall have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk.  Participant understands that no assurances can be given that any such other registration exemption shall be available in such event.

 
PARTICIPANT
   
 
Signature
   
 
Print Name
   
 
Date
 
 
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Exhibit 10.21
 

RIMINI STREET, INC.
 
AMENDED AND RESTATED EMPLOYMENT AGREEMENT WITH SETH A. RAVIN
 
This Amended and Restated Employment Agreement (the “Agreement”) is entered into as of January 6, 2017, (the “Effective Date”) by and between Rimini Street, Inc., a Nevada corporation (the “Company”), and Seth A. Ravin (“Executive”).
 
Whereas, the Company and Executive entered into an Employment Agreement, dated May 1, 2009, which was amended on June 18, 2013 and September 15, 2013 (together, the “Employment Agreement”);
 
Whereas, the Board of Directors (the “Board”) of the Company and Executive wish to amend and restate the Employment Agreement in accordance with the terms and conditions of this Agreement.
 
Now, therefore, in consideration of the promises and covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Executive hereby agree as follows:
 
1.               Duties and Scope of Employment .
 
(a)            Positions and Duties .  Executive will serve as Chief Executive Officer, reporting to the Board.  Executive will render such business and professional services in the performance of Executive’s duties, consistent with Executive’s position within the Company, as will reasonably be assigned to Executive by the Board.  The period Executive is employed by the Company under this Agreement is referred to herein as the “Employment Term.”
 
(b)            Obligations .  During the Employment Term, Executive will devote Executive’s full business efforts and time to the Company.  For the duration of the Employment Term, Executive agrees not to actively engage in any other employment, occupation, or consulting activity for any direct or indirect remuneration without the prior approval of the Board (which approval will not be unreasonably withheld); provided , however , that Executive may, without the approval of the Board, serve (i) as a compensated director of the Board, serve as a compensated director on one or more additional boards of directors and (ii) in any capacity with any civic, educational, or charitable organization; provided that, in both (i) and (ii) above, such service does not interfere with Executive’s obligations to the Company.
 
2.               Employment .  Executive and the Company acknowledge that this employment relationship may be terminated at any time, upon written notice to the other party, with or without Good Reason or for any or no Cause, at the option either of the Company or Executive.  However, as described in this Agreement, Executive may be entitled to severance benefits depending upon the circumstances of Executive’s termination of employment.  This Agreement will continue indefinitely during the Employment Term, except that the covenants in Sections 9(a) and (b) will sunset as set forth in Section 9.
 
3.               Compensation .
 
(a)            Base Salary .  As of the Effective Date, the Company will pay Executive an annualized base salary of not less than $300,000 USD (three hundred thousand United States dollars) as compensation for Executive’s services (such annual salary, as is then effective, to be referred to herein as “Base Salary”).  The Base Salary will be paid periodically in accordance with the Company’s normal payroll practices and be subject to the usual, required withholdings.  Periodically, but not less than annually, the Board (or its committee) will review and consider adjustments to the Base Salary in an amount to be determined by the Board in its sole discretion.
 

(b)            Annualized Incentive .  As determined in an amount by the Board in its sole discretion, Executive will be eligible to receive an annualized target performance bonus of not less than $300,000 USD (three hundred thousand United States dollars) or the amount of Base Salary, whichever amount is greater (the “Target Bonus”).  Seventy-five percent (75%) of such bonus, if any, will be earned quarterly and paid within 90 days following the end of a calendar quarter, and twenty-five percent (25%) will be earned for completing a calendar year and paid within 75 days after the end of each calendar year for which the bonus is earned, in accordance with the Company Bonus Program set forth in Exhibit A attached hereto or such other bonus program for executive officers and the Chief Executive Officer as in effect from time to time.  Periodically, but not less than annually, the Board (or its committee) will review and consider adjustments to the Target Bonus, subject to Executive substantially performing Executive’s tasks during the prior period and Board approval.
 
(c)            Equity Grant .  As determined in an amount by the Board in its sole discretion and subject to Executive substantially performing Executive’s tasks during the prior annual period and Board approval, Executive will be eligible to receive equity awards.
 
4.               Employee Benefits .
 
(a)            Executive will be eligible to participate in accordance with the terms of all Company employee benefit plans, policies and arrangements that are applicable to other executive officers of the Company, as such plans, policies and arrangements may exist from time to time.
 
(b)            In addition to the Employee Benefits provided to Executive under paragraph 4(a) above, upon Executive’s death or Disability, Company shall pay to Executive or Executive’s beneficiary, as the case may be (i) one hundred percent (100%) of Executive’s then outstanding unvested equity awards granted pursuant to the Company’s 2007 Stock Plan, 2013 Equity Incentive Plan or any other equity incentive plan approved by the Board, which shall vest as of the date of such termination of employment due to death or Disability; (ii) (y) Disability payments in an amount equal to twenty-four (24) months of Executive’s Base Salary Target Bonus in the form of salary continuation following Executive’s termination of employment due to Disability in accordance with the Company’s normal payroll practices (such amount being referred to herein as the “Disability Benefits”); or (z) a lump sum death benefit that is equal to two times (2x) Executive’s Base Salary and Target Bonus payable to Executive’s spouse/domestic partner, or to his estate in the absence of a spouse/domestic partner with sixty (60) days of Executive’s date of death (such amount being referred to herein as the “Death Benefits”); and (iii) reimbursement for premiums paid for the group health continuation coverage premiums for Executive and Executive’s eligible dependents under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) so as to provide Executive and Executive’s eligible dependents and/or domestic partner the same level of benefits to the same extent as in effect on the date of Executive’s termination of employment due to death or Disability through the lesser of (A) twenty-four (24) months from the date of such termination, (B) the date Executive and all of Executive’s eligible dependents and/or domestic partner are no longer eligible to receive continuation coverage pursuant under COBRA; provided , however , that Executive or the Executive’s eligible dependents or domestic partner will be solely responsible for electing such coverage within the required time periods.  In the event that the date Executive and Executive’s eligible dependents and/or domestic partner are no longer eligible to receive continuation coverage pursuant under COBRA is less than 24 months from the effective date of such termination, and the loss of eligibility for COBRA is not due to coverage under another employer’s medical plan, the Company shall pay to the Executive in cash the cost of medical benefits for similarly situated active employees of Company for the balance of the twenty-four (24) month period.  Executive must provide Company with written notice of Executive’s new position within ten (10) business days of starting any such position.  In the event that Disability Benefits or Death Benefits are payable to Executive or his beneficiary under this paragraph 4(b), such benefits shall be reduced on a dollar for dollar basis for any disability benefits or death benefits that are paid to Executive or his beneficiary from any life insurance or disability policies, whether group or individual, for which the employer has paid all of the premiums.
 
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5.               Expenses .  The Company will reimburse Executive for reasonable travel, entertainment and other expenses incurred by Executive in the furtherance of the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to time All reimbursement expenses must be incurred while Executive is an employee of the Company If any portion of such reimbursements is taxable to Executive, Executive must submit proper receipts for such reimbursement within thirty (30) days of the date on which he incurs such expense and the Company will reimburse Executive for such expenses within thirty (30) days of the date proper receipts are received In the event Executive recognizes income for income tax purposes as a result of the Company’s payment of certain expenses pursuant to this Section 5, regardless of whether such income is received during or after his employment, the Company shall make a tax gross-up payment to the Executive based on the additional tax liability that he incurs by reason of his recognition of such income.
 
6.               Termination of Employment .  In the event Executive’s employment with the Company terminates for any reason, Executive will be entitled to any (a) unpaid Base Salary accrued up to the effective date of termination; (b) unpaid, but earned and accrued annual incentive prorated for any completed full or partial calendar quarter as of Executive’s termination of employment, (c) pay for accrued but unused vacation that the Company is legally obligated to pay Executive; (d) benefits or compensation as provided under the terms of any employee benefit and compensation agreements or plans applicable to Executive; (e) unreimbursed business expenses required to be reimbursed to Executive; and (1) rights to indemnification Executive may have under the Company’s Certificate of Incorporation, Bylaws, the Agreement, or separate indemnification agreement, as applicable In addition, if the termination is by the Company without Cause or the Executive resigns for Good Reason, Executive will be entitled to the amounts and benefits specified in Section 7.
 
7.               Severance .
 
(a)            Termination Without Cause or Resignation for Good Reason .  If Executive’s employment is terminated by the Company without Cause or if Executive resigns for Good Reason, then: (i) one hundred percent (100%) of Executive’s then outstanding unvested equity awards granted pursuant to the Company’s 2007 Stock Plan, 2013 Equity Incentive Plan or any other equity incentive plan approved by the Board shall vest as of the date of such termination/resignation; (ii) Executive will receive severance benefits in an amount equal to twenty-four (24) months of Executive’s Base Salary and Target Bonus in the form of salary continuation following Executive’s termination of employment in accordance with the Company’s normal payroll practices (such amount being referred to herein as the “Severance Payment” and such period over which the Severance Payment is made being referred to herein as the “Severance Period”); and (iii) reimbursement for premiums paid for the group health continuation coverage premiums for Executive and Executive’s eligible dependents under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) so as to provide Executive and Executive’s eligible dependents and/or domestic partner the same level of benefits to the same extent as in effect on the date of Executive’s termination through the lesser of (A) twenty-four (24) months from the effective date of such termination, (B) the date Executive and all of Executive’s eligible dependents and/or domestic partner are no longer eligible to receive continuation coverage pursuant under COBRA; provided , however , that Executive will be solely responsible for electing such coverage within the required time periods.  In the event that the date Executive and Executive’s eligible dependents and/or domestic partner are no longer eligible to receive continuation coverage pursuant under COBRA is less than 24 months from the effective date of such termination/resignation, and the loss of eligibility for COBRA is not due to coverage under another employer’s medical plan, the Company shall pay to the Executive in cash the cost of medical benefits for similarly situated active employees of Company for the balance of the twenty-four (24) month period.  Executive must provide Company with written notice of Executive’s new position within ten (10) business days of starting any such position.
 
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(b)            Termination without Cause or Resignation for Good Reason in Connection with a Change of Control .  If Executive’s employment is terminated by the Company without Cause or if Executive resigns for Good Reason within twenty-four (24) months following a Change of Control, then: (i) one hundred percent (100%) of Executive’s then outstanding unvested equity awards granted pursuant to the Company’s 2007 Stock Plan, 2013 Equity Incentive Plan or any other equity incentive plan approved by the Board shall vest as of the date of such termination/resignation; (ii) Executive will receive severance benefits in an amount equal to two times (2x) Executive’s Base Salary and Target Bonus in the form of a lump sum payment within sixty (60) days following Executive’s termination of employment (such amount being referred to herein as the “Severance Payment”); and (iii) the total of twenty-four (24) monthly premiums for the group health continuation coverage premiums for Executive and Executive’s eligible dependents under COBRA so as to provide Executive and Executive’s eligible dependents and/or domestic partner the same level of benefits to the same extent as in effect on the date of Executive’s termination determined at the cost for COBRA coverage on the date of Executive’s termination/resignation; provided , however , that Executive will be solely responsible for electing such coverage within the required time periods.  Any benefits or payments provided under this Section 7(b) are in lieu of, and not in addition to, any benefits or payments that otherwise might be payable under Section 7(a).
 
(c)            Voluntary Termination Without Good Reason or Termination for Cause .  If Executive’s employment is terminated by reason of Executive’s death or Disability, by Executive without Good Reason, or for Cause by the Company, then, except as provided in Section 6, (i) all further vesting of Executive’s outstanding equity awards will terminate immediately; (ii) all payments of compensation by the Company to Executive hereunder will terminate immediately; and (iii) Executive will be eligible for severance benefits only in accordance with the Company’s then established plans, programs and practices.
 
8.               Conditions to the Receipt of Severance Payments .  Except in the event of termination due to death, Executive’s entitlement to any severance benefits hereunder, including Severance Payments, is conditioned upon Executive’s execution and delivery to the Company of (i) a general release of claims in the form attached hereto as Exhibit B (the “Release”) which release is not revoked by Executive and provided that such release of claims becomes effective no later than sixty (60) days following the termination date (such deadline, the “Release Deadline”); and (ii) Executive’s resignation from all Executive’s employment with the Company.
 
(a)            If the Release does not become effective by the Release Deadline, Executive shall forfeit any rights to severance or benefits under this Agreement.  In no event shall severance payments or benefits be paid or provided until the release of claims actually becomes effective and irrevocable.  Any severance payments or benefits under this Agreement that would be considered Deferred Compensation Separation Benefits (as defined in Section 24) shall be paid on, or, in the case of installments, shall not commence until, the sixtieth (60 th ) day following Executive’s separation from service, or, if later, such time as required by Section 24.  Except as required by Section 24, any installment payments that would have been made to Executive during the sixty (60) day period immediately following Executive’s separation from service but for the preceding sentence shall be paid to Executive on the sixtieth (60th) day following Executive’s separation from service and the remaining payments shall be made as provided in this Agreement.
 
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(b)            Unless specifically provided in this Agreement or as otherwise required by Section 24, the Company shall pay any severance payments in continuing payments following Executive’s termination date in accordance with the Company’s normal payroll practices; provided , however , that no severance or other benefits shall be paid or provided until the release of claims and any severance amounts or benefits otherwise payable between Executive’s termination date and the date such release becomes effective shall be paid on the effective date of such release.  If Executive should die before all of the severance amounts have been paid, such unpaid amounts shall be paid in a lump-sum payment promptly following such event to Executive’s designated beneficiary, if living, or otherwise to the personal representative of Executive’s estate.
 
9.               Restrictive Covenants .
 
(a)            Non-Competition .  Executive covenants and agrees that during his employment with Company and for a period of two (2) years after the termination of his employment (but in no case beyond June 24, 2020) for any reason whatsoever (unless otherwise agreed to by the Parties in writing), Executive will not directly or indirectly, engage in or be involved in any way with a “competitive business.” “Competitive business,” as used in this Agreement, includes any business or activity, wherever conducted, which is engaged in providing subscription-based enterprise software support services, including maintenance and support programs for enterprise software.
 
(b)            Non-Solicitation .  Executive agrees that during his employment with Company and for a period of two (2) years following the termination of his employment (but in no case beyond June 24, 2020) under this Agreement for any reason whatsoever (unless otherwise agreed to by the Parties in writing), Executive will not, directly or indirectly, induce or attempt to induce any customer, employee, consultant or other business relation to cease doing business with or providing services to the Company or any of its subsidiaries or in any way interfere with the relationship between any such business relation and the Company and its subsidiaries.
 
(c)            Reasonableness of Scope and Duration .  The parties hereto agree that the covenants and agreements set forth in this Section 9 are reasonable in their time, territory and scope, and they intend that they be enforced, and no party shall raise any objection to the reasonableness of the time, territory or scope of any such covenants in any proceeding to enforce such covenants.  If Company fails to make any payment(s) under the terms of this Agreement, and such default is not cured within fifteen (15) days following a notice of default to the Company, then the Executive may terminate this Agreement and will be released from Executive’s obligations under this Section 9.
 
(d)            Acknowledgment of Executive .  Executive represents and warrants that the knowledge, skills and abilities he currently possesses and/or possessed prior to employment are sufficient to permit him, in the event of the termination of his employment hereunder for any reason, to earn a livelihood satisfactory to himself without violating any provision of this Agreement, for example, by using such knowledge, skills and abilities, or some of them, in the service of a noncompetitor of the Company.
 
(e)            Enforcement .  In the event of a breach or threatened breach by Executive of the provisions of this Section 9, the Company will be authorized and entitled to obtain, from any arbitrator or court of competent jurisdiction, an injunction restraining Executive from such breach and from rendering any services to any person, firm, or entity in breach of this Section 9.  Nothing in this Agreement shall be construed as prohibiting the Company from pursuing any other remedies available to it for a breach or threatened breach of this Section 9.
 
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(f)            Modification .  In the event any provision of Section 9 is held to be an unreasonable restriction upon Executive, an arbitrator or court so holding may reduce the geography to which it pertains and/or the period of time in which it operates, or order any other change to the extent necessary to render such provision enforceable.
 
(g)            Condition Precedent .  Compliance with the provisions of Section 9 of this Agreement is a condition precedent to the Company’s obligation to make payments of any nature to Executive, except as provided in Section 6.
 
10.             Limitation on Payments .  In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and (ii) but for this Section 10, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits under Section 7 will be either:
 
(a)            delivered in full, or
 
(b)            delivered as to such lesser extent which would result in no portion of such severance benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code.  Unless the Company and Executive otherwise agree in writing, any determination required under this Section 10 will be made in writing by the Company’s independent public accountants immediately prior to a Change of Control (the “Accountants”), whose determination will be conclusive and binding upon Executive and the Company for all purposes.  For purposes of making the calculations required by this Section 10, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Company and Executive will furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 10.  The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 10.  Any reduction in payments and/or benefits required by this Section 10 shall occur in the following order: (1) reduction of cash payments; (2) reduction of vesting acceleration of equity awards; and (3) reduction of other benefits paid or provided to Executive.  In the event that acceleration of vesting of equity awards is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant for Executive’s equity awards.  If two or more equity awards are granted on the same date, each award will be reduced on a pro-rata basis.
 
11.             Definitions .
 
(a)            Cause .  For purposes of this Agreement, “Cause” will mean:
 
(i)            Executive’s failure to perform the duties and responsibilities of Executive’s position after there has been delivered to Executive a written demand for performance from the Board which describes the basis for the Board’s belief that Executive has not substantially performed Executive’s duties and provides Executive with thirty (30) days to take corrective action;
 
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(ii)           Any act of gross negligence or willful misconduct (such as bribery, unlawful harassment, violation of Company ethics policy and other actions of misconduct of similar significance) taken by Executive in connection with Executive’s employment with the Company, and in the case of gross negligence such act had a material adverse effect on the Company’s business or reputation;
 
(iii)          Any act of dishonesty or moral turpitude consisting of fraud or embezzlement, or otherwise adversely affecting the Company’s business or reputation;
 
(iv)          Executive’s conviction of, or plea of nolo contendere to, a felony (other than minor traffic-related offenses);
 
(v)           Executive’s indictment or conviction for a criminal violation of state or federal securities laws; or
 
(vi)          Any breach by Executive of any covenants or obligations set forth in this Agreement which is not cured within fifteen (15) days following Executive’s receipt of written notice of such breach from the Board.
 
(b)            Change of Control .  For purposes of this Agreement, “Change of Control” will mean the occurrence of any of the following events:
 
(i)            Change in Ownership of the Company .  A change in the ownership of the Company, which is deemed to occur on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of the Company, except that any financing of the Company that is approved by the Board will not be considered a Change of Control; or
 
(ii)           Change in Effective Control of the Company .  A change in the effective control of the Company, which is deemed to occur on the date that a majority of members of the Board is replaced during any 12-month period by directors whose appointment or election was not endorsed by a majority of the members of the Board prior to the date of the appointment or election.  For purposes of this clause (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change of Control; or
 
(iii)          Change in Ownership of a Substantial Portion of the Company’s Assets .  A change in the ownership of a substantial portion of the Company’s assets, which is deemed to occur on the date that any Person acquires (either is one transaction or in multiple transactions over the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions.  For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.
 
For purposes of the above sections, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company The foregoing provisions of this definition, a transaction will not be deemed a Change of Control unless the transaction qualifies as a “change in control event” within the meaning of Section 409A Further and for the avoidance of doubt, a transaction will not constitute a Change of Control if: (i) its sole purpose is to change the state of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.
 
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(c)            Disability .  For purposes of this Agreement, “Disability” means that Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company.  In the event that there is no accident and health plan covering employees of the Company at the time that Executive becomes Disabled, “Disability” shall mean that Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.
 
(d)            Good Reason .  For purposes of this Agreement, “Good Reason” means Executive’s termination of employment within ninety (90) days following the expiration of any cure period (as discussed below) following the occurrence of any of the following, without Executive’s express written consent:
 
(i)            The assignment to Executive of any duties, authority or responsibilities, or the reduction of Executive’s duties, authority or responsibilities, either of which results in a material reduction of Executive’s duties, authority or responsibilities, relative to Executive’s duties, authority or responsibilities as in effect immediately prior to such reduction;
 
(ii)           A material reduction by the Company in the base compensation of Executive as in effect immediately prior to such reduction other than pursuant to a reduction that also is applied to substantially all other executive officers of the Company;
 
(iii)          A material change in the geographic location at which Executive must perform services (in other words, the relocation of Executive to a facility or location more than fifty (50) miles from Executive’s then present location); or
 
(iv)          Any other action or inaction by the Company that constitutes a material breach of the terms of the Agreement.
 
Executive shall not resign for Good Reason without first providing the Company with written notice within ninety (90) days of the event that Executive believe constitutes “Good Reason” specifically identifying the acts or omissions constituting the grounds for Good Reason and a reasonable cure period of not less than thirty (30) days.
 
12.            Indemnification .  Subject to applicable law, Executive will be provided indemnification to the maximum extent permitted by the Company’s Certificate of Incorporation or Bylaws, including, if applicable, any directors and officers insurance policies, with such indemnification to be on terms determined by the Board or any of its committees, but on terms no less favorable than provided to any other Company executive officer or director and subject to the terms of any separate written indemnification agreement.  Indemnification obligations of the Company under this paragraph 12 shall survive Executive’s termination of employment.
 
13.            Assignment .  This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors and legal representatives of Executive upon Executive’s death, and (b) any successor of the Company.  Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes.  For this purpose, “successor” means any person, firm, corporation, or other business entity which at any time, whether by purchase, merger, or otherwise, directly or indirectly, acquires all or substantially all of the assets or business of the Company. None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution.  Any other attempted assignment, transfer, conveyance, or other disposition of Executive’s right to compensation or other benefits will be null and void.
 
-8-

14.            Notices .  All notices, requests, demands and other communications called for hereunder will be in writing and will be deemed given (a) on the date of delivery if delivered personally; (b) one (1) day after being sent overnight by a well-established commercial overnight service; or (c) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing:
 
If to the Company:
 
Rimini Street, Inc. Legal Department
Attn: Daniel B. Winslow, SVP and General Counsel
3993 Howard Hughes Pkwy, Suite 500
Las Vegas, Nevada 89169
 
with a copy to:
 
Rimini Street, Inc. Legal Department
Attn: Ronald Whitford, Jr. GVP and Associate General Counsel. Corporate
3993 Howard Hughes Pkwy, Suite 500
Las Vegas, Nevada 89169
 
If to Executive:
 
The last residential address on file with the Company.
 
15.            Severability .  If any provision hereof becomes or is declared by an arbitrator or a court of competent jurisdiction to be illegal, unenforceable, or void, this Agreement will continue in full force and effect without said provision.
 
16.            Arbitration .
 
(a)            General .  In consideration of Executive’s service to the Company, its promise to arbitrate all employment-related disputes and Executive’s receipt of the compensation, pay raises and other benefits paid to Executive by the Company, at present and in the future, Executive agrees that any and all controversies, claims, or disputes with anyone (including the Company and any employee, officer, director, shareholder or benefit plan of the Company in their capacity as such or otherwise) arising out of, relating to, or resulting from Executive’s service to the Company under this Agreement or otherwise or the termination of Executive’s service with the Company, including any breach of this Agreement, shall be subject to binding arbitration.  Disputes which Executive agrees to arbitrate, and thereby agrees to waive any right to a trial by jury, include any statutory claims under state or federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, claims of harassment, discrimination or wrongful termination and any statutory claims.  Executive further understands that this Agreement to arbitrate also applies to any disputes that the Company may have with Executive.
 
-9-

(b)            Procedure .  Executive agrees that any arbitration will be administered by the American Arbitration Association (“AAA”) and that a neutral arbitrator will be selected in a manner consistent with its National Rules for the Resolution of Employment Disputes (the “Rules”).  Executive agrees that the arbitrator shall have the power to decide any motions brought by any party to the arbitration, including motions for summary judgment and/or adjudication and motions to dismiss and demurrers, prior to any arbitration hearing.  Executive agrees that the arbitrator shall issue a written decision on the merits.  Executive also agrees that the arbitrator shall have the power to award any remedies, including attorneys’ fees and costs, available under applicable law.  Executive understands the Company will pay for any administrative or hearing fees charged by the arbitrator or AAA except that Executive shall pay the first $125.00 of any filing fees associated with any arbitration Executive initiates.  Executive agrees that the arbitrator shall administer and conduct any arbitration in a manner consistent with the Rules.
 
(c)            Remedy .  Except as provided by the Rules, arbitration shall be the sole, exclusive and final remedy for any dispute between Executive and the Company. Accordingly, except as provided for by the Rules, neither Executive nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration.  Notwithstanding, the arbitrator will not have the authority to disregard or refuse to enforce any lawful Company policy, and the arbitrator shall not order or require the Company to adopt a policy not otherwise required by law which the Company has not adopted.
 
(d)            Availability of Injunctive Relief .  In addition to the right under the Rules to petition the court for provisional relief, Executive agrees that any party may also petition the court for injunctive relief where either party alleges or claims a violation of this Agreement or any other agreement regarding trade secrets, confidential information, or nonsolicitation.  In the event either party seeks injunctive relief, the prevailing party shall be entitled to recover reasonable costs and attorneys’ fees.
 
(e)            Administrative Relief .  Executive understands that this Agreement does not prohibit Executive from pursuing an administrative claim with a local, state or federal administrative body such as the Department of Fair Employment and Housing, the Equal Employment Opportunity Commission, or the workers’ compensation board.  This Agreement does, however, preclude Executive from pursuing court action regarding any such claim.
 
(f)            Voluntary Nature of Agreement .  Executive acknowledges and agrees that Executive is executing this Agreement voluntarily and without any duress or undue influence by the Company or anyone else.  Executive further acknowledges and agrees that Executive has carefully read this Agreement and that Executive has asked any questions needed for Executive to understand the terms, consequences and binding effect of this Agreement and fully understand it, including that Executive is waiving Executive’s right to a jury trial.
 
17.            Integration .  This Agreement, Executive’s Confidential and Invention Assignment Agreement, together with the Company’s 2007 Stock Plan, 2013 Equity Incentive Plan and any stock purchase or stock option agreements between the Executive and the Company which describe Executive’s outstanding equity awards, and indemnification agreement represent the entire agreement and understanding between the parties as to the subject matter herein and supersede all prior or contemporaneous agreements whether written or oral.  No waiver, alteration, or modification of any of the provisions of this Agreement will be binding unless in a writing and signed by duly authorized representatives of the parties hereto.  In entering into this Agreement, no party has relied on or made any representation, warranty, inducement, promise or understanding that is not in this Agreement.
 
-10-

18.            Waiver of Breach .  The waiver of a breach of any term or provision of this Agreement, which must be in writing, will not operate as or be construed to be a waiver of any other previous or subsequent breach of this Agreement.
 
19.            Survival .  The Company’s and Executive’s responsibilities under Sections 7 and 8 will survive the termination of this Agreement.
 
20.            Headings .  All captions and Section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement.
 
21.            Tax Withholding .  All payments made pursuant to this Agreement will be subject to withholding of applicable taxes.
 
22.            Governing Law .  This Agreement will be governed by the laws of the State of Nevada without regard to its conflict of laws provisions.
 
23.            Acknowledgment .  Executive acknowledges that she has had the opportunity to discuss this matter with and obtain advice from Executive’s private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement.  The Company will promptly pay Executive’s reasonable and documented legal fees, not to exceed $10,000, incurred in connection with the negotiation and documentation of his employment arrangements with the Company.
 
24.            Section 409A .
 
(a)            Notwithstanding anything to the contrary in this Agreement, no severance payable to Executive, if any, pursuant to this Agreement, when considered together with any other severance payments or separation benefits that are considered deferred compensation under Section 409A of the Code and the final regulations and any guidance promulgated thereunder (“Section 409A”) (together, the “Deferred Compensation Separation Benefits”) shall be payable until Executive has a “separation from service” within the meaning of Section 409A.  Similarly, no severance payable to Executive, if any, pursuant to this Agreement that otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(9) will be payable until Executive has a “separation from service” within the meaning of Section 409A.
 
(b)            Further, if Executive is a “specified employee” within the meaning of Section 409A at the time of Executive’s separation from service (other than due to Executive’s death), then the Deferred Compensation Separation Benefits that are payable within the first six (6) months following Executive’s separation from service shall become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Executive’s separation from service.  All subsequent Deferred Compensation Separation Benefits, if any, shall be payable in accordance with the payment schedule applicable to each payment or benefit.  Notwithstanding anything herein to the contrary, if Executive dies following Executive’s separation from service but prior to the six (6) month anniversary of the separation from service, then any payments delayed in accordance with this paragraph shall be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and all other Deferred Compensation Separation Benefits shall be payable in accordance with the payment schedule applicable to each payment or benefit.  Each payment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.
 
-11-

(c)            Any amount paid under this Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations shall not constitute Deferred Compensation Separation Benefits for purposes of clause (a) above.
 
(d)            Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that do not exceed the Section 409A Limit (as defined below) shall not constitute Deferred Compensation Separation Benefits for purposes of clause (a) above.
 
(e)            For purposes of this Agreement, “Section 409A Limit” means the lesser of 2 times: (i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during Executive’s taxable year preceding Executive’s taxable year of Executive’s separation from service as determined under Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Internal Revenue Code for the year in which Executive’s separation from service occurred.
 
(f)            The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder shall be subject to the additional tax imposed under Section 409A, and any ambiguities herein shall be interpreted to so comply.  The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.
 
25.            Counterparts .  This Agreement may be executed in counterparts, and each counterpart will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned.
 
IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by a duly authorized officer, as f the day and year written below.

RIMINI STREET, INC.
 
EXECUTIVE
 
       
/s/ Thomas C. Shay
 
/s/ Seth A. Ravin
 
By: Thomas C. Shay, SVP, CIO and Secretary
 
Seth A. Ravin
 
       
Date:
January 6, 2017  
Date:
January 6, 2017  


-12-

EXHIBIT A
 
Company Bonus Program
 
To reward employees for achievement of specific company goals, and for the employee’s own individual contributions to company success, Rimini Street, Inc. (hereinafter referred to as the “Company”) offers a competitive bonus program to eligible employees (the “Company Bonus Program”). Company Bonus Program may include a Quarterly Performance Bonus and/or an Annual Retention Bonus, as provided in the employee’s employment offer letter. The Company offers these bonus programs in its discretion, and reserves the right to modify or revoke the bonus programs at any time.
 
Quarterly Performance Bonus:
 
The Quarterly Performance Bonus is calculated by multiplying the employee’s Quarterly Target Performance Bonus (dollar amount) by the Quarterly Company Performance Factor and the Quarterly Personal Performance Factor.
 
The Quarterly Company Performance Factor is determined based on the Company’s achievement of quarterly targets for client invoicing (80%) and expenses (20%), and may be modified upward or downward based on achievement of client satisfaction targets. Quarterly Personal Performance Factor is a percentage determined at the discretion of the employee’s manager (and approved or modified by senior management) based on the employee’s achievement of individual goals and objectives, and overall contribution to the Company’s success. Quarterly Performance Bonus shall be paid on according to the following schedule: QI Quarterly Bonus (covering the period January 1 through March 31) shall be paid on or before June 30; Q2 Quarterly Bonus (covering the period April 1 through June 30) shall be paid on or before September 30; Q3 Quarterly Bonus (covering the period July 1 through September 30) shall be paid on or before December 31; and Q4 Quarterly Bonus (covering the period October 1 through December 31) shall be paid on or before March 15 of the following year. January 1, 2013, for those employees eligible to receive a Quarterly Performance Bonus, eligibility begins on the employee’s start of employment and is pro-rated in the employee’s first calendar quarter. Thereafter, to be eligible for the Quarterly Performance Bonus in a given calendar quarter, the employee must be employed through the last day of the calendar quarter in question. The Quarterly Performance Bonus shall be pro-rated to account for any extended absence (meaning more than 5 contiguous days, excluding approved PTO) during the applicable bonus period, pro-rated based on a 365-day year. The employee shall not be eligible for any Quarterly Performance Bonus for any quarter in which one or more of the following conditions exists: (a) employee’s employment ends before the completion of a given calendar quarter; (b) the Quarterly Company Performance Factor is less than 50%; (c) the employee was not in good standing, including, but not limited to, subject to a Performance Improvement Plan; or (d) the employee’s Quarterly Personal Performance Factor is less than 70%.
 
Annual Retention Bonus:
 
The Company provides eligible employees with Annual Retention Bonus to reward loyalty, performance and added value to Rimini Street through continued employment.
 
The Annual Retention Bonus is determined by multiplying the employee’s Target Annual Retention Bonus (dollar amount) by the Annual Company Performance Factor and the average of the Quarterly Personal Performance Factor used for the Quarterly Performance Bonus payments made to employee from January 1 through December 31 of the prior calendar year. Annual Company Performance Factor is determined based on the Company’s achievement of annual targets for client invoicing (80%) and expenses (20%), and may be modified upward or downward based on achievement of client satisfaction targets averaged for the entire year.
 

The Annual Retention Bonus shall be paid on or before March 15 of the following year.
 
Effective January 1, 2013, for those employees eligible to receive an Annual Retention Bonus, eligibility begins on the employee’s start of employment and is pro-rated for the employee’s first calendar year. Thereafter, to be eligible for the Annual Retention Bonus for a given calendar year, the employee must be employed through the last day of the calendar year in question. The Annual Retention Bonus shall be pro-rated to account for any extended absence (meaning more than 5 contiguous days, excluding approved PTO) during the applicable bonus period, pro-rated based on a 365-day year. The bonus shall also be pro-rated to exclude those days of the year in which the employee was not in good standing (including, without limitation, those days in which the employee was subject to a Performance Improvement Plan). The employee shall not be eligible for any Annual Retention Bonus for any calendar year in which one or more of the following conditions exists: (a) employee’s employment ends before the completion of a given calendar year; (b) the Annual Company Performance Factor is less than 50%; or (c) the employee’s average Quarterly Personal Performance Factor is less than 70% for the calendar year.
 
The bonus shall also be pro-rated to exclude those days of the year in which the employee was not in good standing (including without limitation those days in which the employee was subject to a Performance Improvement Plan).
 
Questions or concerns about this Company Bonus Policy should be discussed with Human Resources.
 
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EXHIBIT B
 
Form of Release
 
You hereby agree and acknowledge that by signing this Release, and for other good and valuable consideration received pursuant to that employment agreement, dated January 6, 2017, by and between you and Rimini Street, Inc. (the “Employment Agreement”) or otherwise, you are waiving your right to assert any and all forms of legal Claims against Rimini Street** (together, “Employer”) of any kind whatsoever, whether known or unknown, arising from the beginning of time through the Effective Date, as defined below. Except as set forth below, your waiver and release herein is intended to bar any form of legal claim, charge, complaint or any other form of action (jointly referred to as “Claims”) against Employer seeking any form of relief including, without limitation, equitable relief (whether declaratory, injunctive or otherwise), the recovery of any damages, or any other form of monetary recovery whatsoever (including, without limitation, back pay, front pay, compensatory damages, emotional distress damages, punitive damages, attorneys’ fees and any other costs) against Employer, for any alleged action, inaction or circumstance existing   or arising through the Effective Date.
 
Without limiting the foregoing general waiver and release, you specifically waive and release Employer from any Claim arising from or related to your prior employment relationship with the Company or the termination thereof, including, without limitation:
 
a.
Claims under any state or federal discrimination, fair employment practices or other employment related statute, regulation or executive order (as they may have been amended through the Effective Date) prohibiting discrimination or harassment based upon any protected status including, without limitation, race, national origin, age, gender, marital status, disability, veteran status, sexual orientation or status as a covered service member under the Uniform Services Employment and re-Employment Rights Act (USERRA). Without limitation, specifically included in this paragraph are any Claims arising under the Federal Age Discrimination in Employment Act, the Older Workers Benefit Protection. Act, the Civil Rights Acts of 1866 and 1871, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Equal Pay Act, the Americans With Disabilities Act and any similar state statute.
 
b.
Claims under any other state or federal employment related statute, regulation or executive order (as they may have been amended through the Effective Date) relating to wages, hours or any other terms and conditions of employment. Without limitation, specifically included in this paragraph are any Claims arising under the Fair Labor Standards Act, the Family and Medical Leave Act of 1993, the National Labor Relations Act, the Employee Retirement Income Security Act of 1974, the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) and any similar state statute.
 


*       For purposes of this Section, “Rimini Street” includes any of its divisions, affiliates (which means all persons and entities directly or indirectly controlling, controlled by or under common control with Rimini Street, Inc.), subsidiaries and all other related entities, its and their directors, officers, employees, trustees, agents, successors and assigns, and all persons acting by, through, under or in concert with Rimini Street, Inc.

c.
Claims under any state or federal common law theory including, without limitation, wrongful discharge, constructive discharge, breach of express or implied contract, promissory estoppel, unjust enrichment, breach of a covenant of good faith and fair dealing, violation of public policy, defamation, interference with contractual relations, intentional or negligent infliction of emotional distress, invasion of privacy, misrepresentation, deceit, fraud or negligence.
 
d.
Any other Claim arising under state or federal law.
 
You agree that you will not initiate any charge or complaint or institute any claim or lawsuit against Employer based on any fact or circumstance occurring up to and including you last date of employment with Employer.
 
In the event you file any charge or complaint, institute any lawsuit, or initiate any action whatsoever, that is covered by this Release, and a judgment is entered in favor of Employer, you shall pay all of the attorney’s fees, expenses and costs incurred by Employer in response to the same.
 
It is the Employer’s desire and intent to make certain that you fully understand the provisions and effects of this Release. To that end, you have been encouraged and given the opportunity to consult with legal counsel for the purpose of reviewing the terms of this Release. Also, because you are over the age of 40, and consistent with the provisions of the Age Discrimination in Employment Act (“ADEA”) and the Older Workers Benefits Protection Act (“OWBPA”), which prohibit discrimination on the basis of age, Employer is providing you with twenty-one (21) days in which to consider and accept the terms of this Release by signing and dating it below and returning the signed and dated acceptance to Thomas Shay at Rimini Street, Inc., 6601 Koll Center Pkwy., Suite 300, Pleasanton, CA 94566 USA. In addition, you may rescind your assent to this Release if, within seven (7) days after you sign this Release, you deliver by hand or send by mail (certified, return receipt and postmarked within such 7 day period) a notice of rescission to Thomas Shay at Rimini Street, Inc., 6601 Koll Center Pkwy., Suite 300, Pleasanton, CA 94566 USA. If you sign the Release and do not revoke it, then it will become fully effective and binding on both parties on the eighth (8 11 ’) day following your execution (the “Effective Date”).
 
Also, consistent with the provisions of the ADEA, OWBPA and other federal discrimination laws, nothing in this release shall be deemed to prohibit you from challenging the validity of this release under the federal age or other discrimination laws (the “Federal Discrimination Laws”) or from filing a charge or complaint of age or other employment-related discrimination with the Equal Employment Opportunity Commission (“EEOC”), or from participating in any investigation or proceeding conducted by the EEOC. Further, nothing in this Release shall be deemed to limit Employer’s right to seek immediate dismissal of such charge or complaint on the basis that your signing of this Release constitutes a full release of any individual rights under the Federal Discrimination Laws, or to seek restitution to the extent permitted by law of the economic benefits provided to you under this Release in the event that you successfully challenge the validity of this release and prevail in any claim under the Federal Discrimination Laws.
 
In addition to the forgoing, you hereby agree that you waive all rights under section 1542 of the Civil Code of the State of California. Section 1542 provides that:
 
A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.
 
Pursuant to section 1542, you acknowledge that you may hereafter discover facts different from or in addition to facts which you now know or believe to be true with regard to the released claims, and further agree that this Release shall remain effective in all respects notwithstanding such discovery of new or different facts, including any such facts which may give rise to currently unknown claims, including but not limited to any claims or rights which you may have under section 1542 of the California Civil Code.
 
Notwithstanding the foregoing, this Release does not release Employer from any obligation expressly set forth in the Employment Agreement. You acknowledge and agree that, but for providing this waiver and release, you would not be receiving the economic benefits being provided to you under the terms of the Employment Agreement.
 
 
-2-


Exhibit 10.22
 
   
 
Rimini Street, Inc.
7251 West Lake Mead Blvd., Suite 300
Las Vegas, Nevada 89128
Phone +1 702.839.9671
Fax +1 925.397.3193
E-mail: HR@riministreet.com
   
   
   

September 12, 2013

Daniel Winslow

Dear Dan:

Rimini Street, Inc. is pleased to present to you this Offer of Employment to join the Rimini Street, Inc. team with the position of Senior Vice President & General Counsel. This Offer of Employment supersedes any other offer and is made conditioned upon your acceptance and execution of the Rimini Street, Inc. Employee Intellectual Property and Confidentiality Agreement, Rimini Street, Inc. Acceptable Use Policy, Employee Handbook, acceptable results from a background check, satisfaction of government documentation requirements for establishing the right to work in the United States, and any other terms and conditions of employment described herein or required by law.

Please be aware that this offer must be accepted by September 13, 2013 at 5:00 PM Pacific Time , and is not meant to be construed as an employment contract. Your employment with Rimini Street, Inc. will be “at will,” meaning that either you or Rimini Street, Inc. can terminate your employment at any time, for any reason or no reason. Please review the position details below, including the current compensation plan. As you would expect, Rimini Street reserves the right to adjust and change job profiles, compensation plans, and employee roles as it deems necessary.

EXEMPT POSITION DETAIL:
Req. #:
 
94
 
FLSA:
 
Exempt (FLSA-Classification)
Title:
 
SVP & General Counsel
 
Category:
 
Full-time, Permanent
Reports to:
 
Seth Ravin, CEO
 
Start Date:
 
September 30, 2013
Location:
 
6601 Koll Center Pkwy, #300, Pleasanton, CA 94566
 
Benefits:
 
Regular employees working at least 30 hours per week are eligible for benefits. Please see attached benefit information

Job Duties :
Responsible for leading corporate strategic and tactical legal initiatives, as well as running the Legal Department. The General Counsel will provide senior management with effective advice on company strategies and their implementation, manage the legal function, and obtain and oversee the work of outside counsel. The General Counsel will be directly involved in complex business transactions in negotiating critical contracts, as well as overseeing all company legal matters.

Base Salary :
$300,000 USD annualized ($25,000 per month, paid semi-monthly)

Quarterly Incentive Comp Target : $10,000 for 100% Company Performance Target, paid 90 days after end of each quarter

Relocation Benefits
For up to twelve (12) months following employment start date: Corporate, furnished apartment in Pleasanton/Dublin area; automobile rental in Pleasanton/Dublin; one round/trip between BOS/SFO every-other week (for 12 months following employment start date or until family relocated to Northern California, whichever comes first (Dan to BOS or wife to CA); and two house-hunting trips to Northern California for the entire family; Up to $20,000 USD reimbursement for shipment of household goods and vehicles from Massachusetts to Northern California completed within 12 months of the employment start date.

Equity :
500,000 Common Stock Option share grants, vesting in equal 1/3 amounts on the annual employment anniversary of the Start Date, with full vesting over a three (3) year period of contiguous employment. Options will be granted according to the Rimini Street, Inc. Employee Stock Option Agreement, and the grant is subject to Board approval. You will be required to execute and agree to all terms and conditions in the stock option agreement in order to receive the stock option grant and participate in the program.

Other Terms :

1.
If continuously employed at Rimini Street through the period starting October 1, 2014, the following compensation components shall change as follows effective October 1, 2014 (all other terms to remain the same until changed):

Base Salary :
$300,000 USD annualized ($25,000 per month, paid semi-monthly)

Quarterly Incentive Comp Target :
$25,000 for 100% Company Performance Target, paid 90 days after end of each quarter

2.
If within the first twenty-four (24) months of contiguous employment you are terminated without cause or are constructively terminated by reducing the scope and compensation for the same position without your agreement, then, upon your termination of employment, you shall be entitled to twelve (12) months of Base Salary in severance compensation to be paid out evenly over twelve (12) months following the last day worked (“Effective Date of Termination”). Constructive termination claims have to be made within thirty (30) days of the event.
 

If everything is in order, and you would like to accept this Offer of Employment, please do the following:

(1)
Sign this letter indicating acceptance of the position, and

(2)
Sign the Employee Intellectual Property and Confidentiality Agreement.

(3)
E-mail or fax the signed documents above to: E-mail: HR@riministreet.com or Fax: +1 925.397.3193

Upon acknowledgement of your acceptance, you will be contacted to arrange completion of legally required documentation, payroll and benefit information, and other items as appropriate for your new position with Rimini Street, Inc. We look forward to working with you to redefine enterprise software support at Rimini Street, Inc.

Regards,

Seth A. Ravin

CEO

I, Dan Winslow, hereby accept this Offer of Employment:

/s/ Daniel B. Winslow
 
September 13, 2013
 
       
Signature
 
Date
 




Exhibit 10.23
 
Rimini Street, Inc.
7251 West Lake Mead Blvd.
Suite 300
Las Vegas, Nevada 89128
(702) 839-9671
 
December 19, 2010
 
Sebastian Grady
 
Dear Sebastian:
 
It is with great pleasure that Rimini Street, Inc. presents to you this Offer of Employment to join the Rimini Street, Inc. team with the position of President & Chief Operating Officer.  This Offer of Employment is made conditioned upon your acceptance and execution of the Employment Agreement between Rimini Street and Sebastian Grady dated December 19, 2010, execution of the Rimini Street, Inc. Employee Intellectual Property and Confidentiality Agreement dated December 19, 2010, acceptable results from a background check, and any other terms and conditions of employment described herein.
 
Please be aware that this offer must be accepted by Monday, December 20, 2010 at 5:00 PM Pacific Time .  Your employment with Rimini Street, Inc. will be “at will,” meaning that either you or Rimini Street, Inc. can terminate your employment at any time, for any reason or no reason, subject to the terms of the Employment Agreement.
 
If everything is in order, and you would like to accept this Offer of Employment , please fax back to me (1) this letter along with your signature accepting the position, (2) the signed Employment Agreement, and (3) the signed Employee Intellectual Property and Confidentiality Agreement.  Upon acknowledgement of your acceptance, we will contact you to arrange delivery of your equipment and work with you to get your benefits set up.
 
POSITION DETAILS:

Title:
President & Chief Operating Officer
Reports to:
Seth A. Ravin, CEO
Location:
Pleasanton Office: 6601 Koll Center Parkway Suite 300 Pleasanton, CA 94566
FLSA:
Exempt (Fair Labor Standards Act-Classification)
Category:
Full-time, Regular
Start Date:
Monday, January 1, 2011
Job Duties:
As appropriate for a President & COO and as determined by the CEO
Base Salary:
As detailed in the Employment Agreement dated December 19, 2010
Target Annual Incentive:
As detailed in the Employment Agreement dated December 19, 2010
Benefits:
Standard Rimini Street benefits package for executives
Equity:
As detailed in the Employment Agreement dated December 19, 2010
 
Please return fax to my private fax ONLY at:                            .
 
I look forward to working with you to redefine enterprise software support at Rimini Street, Inc.
Regards,
Seth A. Ravin
President & CEO

I, Sebastian Grady, hereby accept this Offer of Employment   :   /s/ Sebastian Grady           Date:12/19/10
 
 


Exhibit 10.24
 
RIMINI STREET, INC.
 
SEBASTIAN GRADY EMPLOYMENT AGREEMENT
 
This Agreement is entered into as of January 1, 2011, (the “Effective Date”) by and between Rimini Street, Inc., a Nevada corporation (the “Company”), and Sebastian Grady (“Executive”).
 
1.           Duties and Scope of Employment .
 
(a)            Positions and Duties .  Executive will serve as President and Chief Operating Officer, reporting to the CEO.  Executive will render such business and professional services in the performance of Executive’s duties, consistent with Executive’s position within the Company, as will reasonably be assigned to Executive by the CEO.  The period Executive is employed by the Company under this Agreement is referred to herein as the “Employment Term”.
 
(b)            Obligations .  During the Employment Term, Executive will devote Executive’s full business efforts and time to the Company.  For the duration of the Employment Term, Executive agrees not to actively engage in any other employment, occupation, or consulting activity for any direct or indirect remuneration without the prior approval of the CEO (which approval will not be unreasonably withheld); provided, however, that Executive may, without the approval of the CEO, serve as a compensated director of the Board, serve as a compensated director on one or more additional boards of directors.  Additionally, Executive may, without the approval of the CEO, serve in any capacity with any civic, educational, or charitable organization, provided such services do not interfere with Executive’s obligations to the Company.
 
2.           At-Will Employment .  Executive and the Company agree that Executive’s employment with the Company constitutes “at-will” employment.  Executive and the Company acknowledge that this employment relationship may be terminated at any time, upon written notice to the other party, with or without good cause or for any or no Cause, at the option either of the Company or Executive.  However, as described in this Agreement, Executive may be entitled to severance benefits depending upon the circumstances of Executive’s termination of employment.
 
3.           Compensation .
 
(a)            Base Salary .  As of the Effective Date, the Company will pay Executive an annual salary noted on Exhibit A as compensation for Executive’s services (such annual salary, as is then effective, to be referred to herein as “Base Salary”).  The Base Salary will be paid periodically in accordance with the Company’s normal payroll practices and be subject to the usual, required withholdings.
 
(b)            Annual Incentive .  As determined by the CEO in his sole discretion, Executive may be eligible to receive an annual performance bonus as noted on Exhibit A.  Such bonus, if any, will be earned and paid calendar quarterly and paid approximately 90 (ninety) days after the end of each calendar quarter for which the bonus is earned.
 
(c)            Employee Stock Options .  Subject to Board approval, Executive will be granted three hundred eighty-five thousand (385,000) Common Stock Option shares, vesting evenly on the annual employment anniversary over a three (3) year period from first date of employment.  Additionally, after Executive has been contiguously employed by Rimini Street for ninety-one (91) consecutive calendar days from first date of employment, and subject to Board approval, Executive will be granted an additional seventy-five thousand (75,000) Common Stock Option shares, vesting evenly on the annual employment anniversary over a three (3) year period from the date of Board approval of the grant.  Options will be issued according to the Stock Option Plan.  All terms and conditions will be detailed in the Rimini Street, Inc. Employee Stock Option Plan Agreement.  Executive will be required to execute and agree to the stock option plan in order to participate in the program.
 

4.           Employee Benefits .  Executive will be eligible to participate in accordance with the terms of all Company employee benefit plans, policies and arrangements that are applicable to other executive officers of the Company, as such plans, policies and arrangements may exist from time to time.
 
5.           Expenses .  The Company will reimburse Executive for reasonable travel, entertainment and other expenses incurred by Executive in the furtherance of the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to time.  All reimbursement expenses must be incurred while Executive is an employee of the Company.  If any portion of such reimbursements is taxable to Executive, Executive must submit proper receipts for such reimbursement within thirty (30) days of the date on which he or she incurs such expense and the Company will reimburse Executive for such expenses within thirty (30) days of the date proper receipts are received.
 
6.           Termination of Employment .  In the event Executive’s employment with the Company terminates for any reason, Executive will be entitled to any (a) unpaid Base Salary accrued up to the effective date of termination; (b) unpaid, but earned and accrued annual incentive prorated for any completed full or partial calendar quarter as of Executive’s termination of employment, (c) pay for accrued but unused vacation that the Company is legally obligated to pay Executive; (d) benefits or compensation as provided under the terms of any employee benefit and compensation agreements or plans applicable to Executive; (e) unreimbursed business expenses required to be reimbursed to Executive; and (f) rights to indemnification Executive may have under the Company’s Certificate of Incorporation, Bylaws, the Agreement, or separate indemnification agreement, as applicable.  In addition, if the termination is by the Company without Cause or the Executive resigns for Good Reason, Executive will be entitled to the amounts and benefits specified in Section 7.
 
7.           Severance .
 
(a)            Termination Without Cause or Resignation for Good Reason .  If Executive’s employment is terminated by the Company without Cause or if Executive resigns for Good Reason more than ninety days following the Effective Date but less than 1096 days following the Effective Date, then: (i) thirty-three percent (33%) of Executive’s then outstanding unvested equity awards granted pursuant to the Company’s 2007 Stock Plan or any other equity incentive plan approved by the Board shall vest as of the date of such termination/resignation; (ii) Executive will receive severance benefits in an amount equal to three (3) months of Executive’s Base Salary in the form of salary continuation following Executive’s termination of employment in accordance with the Company’s normal payroll practices (such amount being referred to herein as the “Severance Payment” and such period over which the Severance Payment is made being referred to herein as the “Severance Period”); and (iii) reimbursement for premiums paid for the group health continuation coverage premiums for Executive and Executive’s eligible dependents under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) so as to provide Executive and Executive’s eligible dependents the same level of benefits to the same extent as in effect on the date of Executive’s termination through the lesser of (A) three (3) months from the effective date of such termination, (B) the date Executive and Executive’s eligible dependents are no longer eligible to receive continuation coverage pursuant under COBRA; provided, however, that Executive will be solely responsible for electing such coverage within the required time periods.  Executive must provide Company with written notice of Executive’s new position within ten (10) business days of starting any such position, or Executive shall forfeit the remainder of the Severance Payments to be made pursuant to this Agreement.
 
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(b)            Termination without Cause or Resignation for Good Reason in Connection with a Change of Control .  If Executive’s employment is terminated by the Company without Cause or if Executive resigns for Good Reason within twelve (12) months following a Change of Control that occurs more than ninety days following the Effective Date but less than 1096 days following the Effective Date, then: (i) one hundred percent (100%) of Executive’s then outstanding unvested equity awards granted pursuant to the Company’s 2007 Stock Plan or any other equity incentive plan approved by the Board shall vest as of the date of such termination/resignation; (ii) Executive will receive severance benefits in an amount equal to six (6) months of Executive’s Base Salary in the form of salary continuation following Executive’s termination of employment in accordance with the Company’s normal payroll practices (such amount being referred to herein as the “Severance Payment” and such period over which the Severance Payment is made being referred to herein as the “Severance Period”); and (iii) reimbursement for premiums paid for the group health continuation coverage premiums for Executive and Executive’s eligible dependents under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) so as to provide Executive and Executive’s eligible dependents the same level of benefits to the same extent as in effect on the date of Executive’s termination through the lesser of (A) six (6) months from the effective date of such termination, (B) the date Executive and Executive’s eligible dependents are no longer eligible to receive continuation coverage pursuant under COBRA; provided, however, that Executive will be solely responsible for electing such coverage within the required time periods.  Executive must provide Company with written notice of Executive’s new position within ten (10) business days of starting any such position, or Executive shall forfeit the remainder of the Severance Payments to be made pursuant to this Agreement.  Any benefits or payments provided under this Section 7(b) are in lieu of, and not in addition to, any benefits or payments that otherwise might be payable under Section 7(a).
 
(c)            Voluntary Termination Without Good Reason or Termination for Cause .  If Executive’s employment is terminated by reason of Executive’s death or Disability, by Executive without Good Reason, or for Cause by the Company, then, except as provided in Section 6, (i) all further vesting of Executive’s outstanding equity awards will terminate immediately; (ii) all payments of compensation by the Company to Executive hereunder will terminate immediately; and (iii) Executive will be eligible for severance benefits only in accordance with the Company’s then established plans, programs and practices.
 
8.           Conditions to the Receipt of Severance Payments .  Executive’s entitlement to any severance benefits hereunder, including Severance Payments is conditioned upon Executive’s execution and delivery to the Company of (i) a general release of claims in a form satisfactory to the Company and Executive which release is not revoked by Executive and provided that such release of claims becomes effective no later than sixty (60) days following the termination date (such deadline, the “Release Deadline”); and (ii) Executive’s resignation from all Executive’s employment with the Company.
 
(a)            If the release of claims does not become effective by the Release Deadline, Executive shall forfeit any rights to severance or benefits under this Agreement.  In no event shall severance payments or benefits be paid or provided until the release of claims actually becomes effective and irrevocable.  Any severance payments or benefits under this Agreement that would be considered Deferred Compensation Separation Benefits (as defined in Section 23) shall be paid on, or, in the case of installments, shall not commence until, the sixtieth (60th) day following Executive’s separation from service, or, if later, such time as required by Section 23.  Except as required by Section 23, any installment payments that would have been made to Executive during the sixty (60) day period immediately following Executive’s separation from service but for the preceding sentence shall be paid to Executive on the sixtieth (60th) day following Executive’s separation from service and the remaining payments shall be made as provided in this Agreement.
 
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(b)            Unless otherwise required by Section 23, the Company shall pay any severance payments in continuing payments following Executive’s termination date in accordance with the Company’s normal payroll practices; provided, however, that no severance or other benefits shall be paid or provided until the release of claims and any severance amounts or benefits otherwise payable between Executive’s termination date and the date such release becomes effective shall be paid on the effective date of such release.  If Executive should die before all of the severance amounts have been paid, such unpaid amounts shall be paid in a lump-sum payment promptly following such event to Executive’s designated beneficiary, if living, or otherwise to the personal representative of Executive’s estate.
 
9.           Limitation on Payments .  In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and (ii) but for this Section 9, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits under Section 7 will be either:
 
(a)            delivered in full, or
 
(b)            delivered as to such lesser extent which would result in no portion of such severance benefits being subject to excise tax under Section 4999 of the Code,
 
whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code.  Unless the Company and Executive otherwise agree in writing, any determination required under this Section 9 will be made in writing by the Company’s independent public accountants immediately prior to a Change of Control (the “Accountants”), whose determination will be conclusive and binding upon Executive and the Company for all purposes.  For purposes of making the calculations required by this Section 9, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Company and Executive will furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 9.  The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 9.  Any reduction in payments and/or benefits required by this Section 9 shall occur in the following order: (1) reduction of cash payments; (2) reduction of vesting acceleration of equity awards; and (3) reduction of other benefits paid or provided to Executive.  In the event that acceleration of vesting of equity awards is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant for Executive’s equity awards.  If two or more equity awards are granted on the same date, each award will be reduced on a pro-rata basis.
 
10.         Definitions .
 
(a)            Cause .  For purposes of this Agreement, “Cause” will mean:
 
(i)            Executive’s failure to perform the duties and responsibilities of Executive’s position after there has been delivered to Executive a written demand for performance from the CEO which describes the basis for the CEO’s belief that Executive has not substantially performed Executive’s duties and provides Executive with fifteen (15) days to take corrective action;
 
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(ii)           Any act of negligence, willful misconduct (such as bribery, sexual harassment, violation of Company ethics policy and other actions of misconduct of similar significance) or dishonesty taken by Executive in connection with Executive’s employment with the Company, and in the case of negligence such act had a material adverse effect on the Company’s business or reputation;
 
(iii)          Any act of dishonesty or moral turpitude consisting fraud or embezzlement or otherwise adversely affecting the Company’s business or reputation;
 
(iv)          Executive’s conviction of, or plea of nolo contendre to, a felony;
 
(v)           Executive’s indictment for a criminal violation of state or federal securities laws; or
 
(vi)          Any breach by Executive of any covenants or obligations set forth in this Agreement which is not cured within fifteen (15) days following Executive’s receipt of written notice of such breach from the CEO.
 
(b)            Change of Control .  For purposes of this Agreement, “Change of Control” will mean the occurrence of any of the following events:
 
(i)            Change in Ownership of the Company .  A change in the ownership of the Company, which is deemed to occur on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than 51% of the total voting power of the stock of the Company (as determined on a fully-diluted basis, including granted and ungranted employee stock options and all stock warrants), except that any financing of the Company that is approved by the Board will not be considered a Change of Control; or
 
(ii)           Change in Effective Control of the Company .  A change in the effective control of the Company, which is deemed to occur on the date that a majority of members of the Board is replaced during any 12-month period by directors whose appointment or election was not endorsed by a majority of the members of the Board prior to the date of the appointment or election.  For purposes of this clause (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change of Control; or
 
(iii)          Change in Ownership of a Substantial Portion of the Company’s Assets .  A change in the ownership of a substantial portion of the Company’s assets, which is deemed to occur on the date that any Person acquires (either is one transaction or in multiple transactions over the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 51% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions.  For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.
 
For purposes of the above sections, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.
 
Notwithstanding the foregoing provisions of this definition, a transaction will not be deemed a Change of Control unless the transaction qualifies as a “change in control event” within the meaning of Section 409A.  Further and for the avoidance of doubt, a transaction will not constitute a Change of Control if: (i) its sole purpose is to change the state of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.
 
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(c)            Disability .  For purposes of this Agreement, “Disability” means that Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months.
 
(d)            Good Reason .  For purposes of this Agreement, “Good Reason” means Executive’s termination of employment within ninety (90) days following the expiration of any cure period (as discussed below) following the occurrence of any of the following, without Executive’s express written consent:
 
(i)            The assignment to Executive of any duties, authority or responsibilities, or the reduction of Executive’s duties, authority or responsibilities, either of which results in a material reduction of Executive’s duties, authority or responsibilities, relative to Executive’s duties, authority or responsibilities as in effect immediately prior to such reduction;
 
(ii)           A material reduction by the Company in the base compensation of Executive as in effect immediately prior to such reduction other than pursuant to a reduction that (A) also is applied to substantially all other executive officers of the Company and (B) does not result in an aggregate reduction of Executive’s Base Salary and/or annual cash incentive to less than 50% of the Base Salary and/or annual cash incentive that was in effect immediately prior to the initial reduction of Executive’s Base Salary and/or annual cash incentive by the Company;
 
(iii)          A material change in the geographic location at which Executive must perform services (in other words, the relocation of Executive to a facility or location more than fifty (50) miles from Executive’s then present location); or
 
(iv)          Any other action or inaction that constitutes a material breach of the terms of the Agreement.
 
Executive shall not resign for Good Reason without first providing the Company with written notice within ninety (90) days of the event that Executive believe constitutes “Good Reason” specifically identifying the acts or omissions constituting the grounds for Good Reason and a reasonable cure period of not less than thirty (30) days.
 
11.         Indemnification .  Subject to applicable law, Executive will be provided indemnification to the maximum extent permitted by the Company’s Certificate of Incorporation or Bylaws, including, if applicable, any directors and officers insurance policies, with such indemnification to be on terms determined by the Board or any of its committees, but on terms no less favorable than provided to any other Company executive officer or director and subject to the terms of any separate written indemnification agreement.
 
12.         Assignment .  This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors and legal representatives of Executive upon Executive’s death, and (b) any successor of the Company.  Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes.  For this purpose, “successor” means any person, firm, corporation, or other business entity which at any time, whether by purchase, merger, or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.  None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution.  Any other attempted assignment, transfer, conveyance, or other disposition of Executive’s right to compensation or other benefits will be null and void.
 
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13.         Notices .  All notices, requests, demands and other communications called for hereunder will be in writing and will be deemed given (a) on the date of delivery if delivered personally; (b) one (1) day after being sent overnight by a well established commercial overnight service; or (c) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing:
 
If to the Company:
 
Rimini Street
7251 West Lake Mead Blvd, Suite 300
Las Vegas, Nevada 89128
Attention: Legal Department
Facsimile: (702) 973-7491
E-mail address: legal@riministreet.com

If to Executive:
 
at the last residential address known by the Company.
 
14.        Severability .  If any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or void, this Agreement will continue in full force and effect without said provision.
 
15.         Arbitration .
 
(a)            General .  In consideration of Executive’s service to the Company, its promise to arbitrate all employment-related disputes and Executive’s receipt of the compensation, pay raises and other benefits paid to Executive by the Company, at present and in the future, Executive agrees that any and all controversies, claims, or disputes with anyone (including the Company and any employee, officer, director, shareholder or benefit plan of the Company in their capacity as such or otherwise) arising out of, relating to, or resulting from Executive’s service to the Company under this Agreement or otherwise or the termination of Executive’s service with the Company, including any breach of this Agreement, shall be subject to binding arbitration.  Disputes which Executive agrees to arbitrate, and thereby agrees to waive any right to a trial by jury, include any statutory claims under state or federal law, including, but not limited to, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, claims of harassment, discrimination or wrongful termination and any statutory claims.  Executive further understands that this Agreement to arbitrate also applies to any disputes that the Company may have with Executive.
 
(b)            Procedure .  Executive agrees that any arbitration will be administered by the American Arbitration Association (“AAA”) and that a neutral arbitrator will be selected in a manner consistent with its National Rules for the Resolution of Employment Disputes (the “Rules”).  Executive agrees that the arbitrator shall have the power to decide any motions brought by any party to the arbitration, including motions for summary judgment and/or adjudication and motions to dismiss and demurrers, prior to any arbitration hearing.  Executive agrees that the arbitrator shall issue a written decision on the merits.  Executive also agrees that the arbitrator shall have the power to award any remedies, including attorneys’ fees and costs, available under applicable law.  Executive understands the Company will pay for any administrative or hearing fees charged by the arbitrator or AAA except that Executive shall pay the first $125.00 of any filing fees associated with any arbitration Executive initiates.  Executive agrees that the arbitrator shall administer and conduct any arbitration in a manner consistent with the Rules.
 
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(c)            Remedy .  Except as provided by the Rules, arbitration shall be the sole, exclusive and final remedy for any dispute between Executive and the Company.  Accordingly, except as provided for by the Rules, neither Executive nor the Company will be permitted to pursue court action regarding claims that are subject to arbitration.  Notwithstanding, the arbitrator will not have the authority to disregard or refuse to enforce any lawful Company policy, and the arbitrator shall not order or require the Company to adopt a policy not otherwise required by law which the Company has not adopted.
 
(d)            Availability of Injunctive Relief .  In addition to the right under the Rules to petition the court for provisional relief, Executive agrees that any party may also petition the court for injunctive relief where either party alleges or claims a violation of this Agreement or any other agreement regarding trade secrets, confidential information, or nonsolicitation.  In the event either party seeks injunctive relief, the prevailing party shall be entitled to recover reasonable costs and attorneys’ fees.
 
(e)            Administrative Relief .  Executive understands that this Agreement does not prohibit Executive from pursuing an administrative claim with a local, state or federal administrative body such as the Department of Fair Employment and Housing, the Equal Employment Opportunity Commission, or the workers’ compensation board.  This Agreement does, however, preclude Executive from pursuing court action regarding any such claim.
 
(f)             Voluntary Nature of Agreement .  Executive acknowledges and agrees that Executive is executing this Agreement voluntarily and without any duress or undue influence by the Company or anyone else.  Executive further acknowledges and agrees that Executive has carefully read this Agreement and that Executive has asked any questions needed for Executive to understand the terms, consequences and binding effect of this Agreement and fully understand it, including that Executive is waiving Executive’s right to a jury trial.  Finally, Executive agrees that Executive has been provided an opportunity to seek the advice of an attorney of Executive’s choice before signing this Agreement.
 
16.         Integration .  This Agreement, Executive’s Confidential and Invention Assignment Agreement, together with the Company’s 2007 Stock Plan and any stock purchase or stock option agreements between the Executive and the Company which describe Executive’s outstanding equity awards, represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral.  No waiver, alteration, or modification of any of the provisions of this Agreement will be binding unless in a writing and signed by duly authorized representatives of the parties hereto.  In entering into this Agreement, no party has relied on or made any representation, warranty, inducement, promise, or understanding that is not in this Agreement.
 
17.         Waiver of Breach .  The waiver of a breach of any term or provision of this Agreement, which must be in writing, will not operate as or be construed to be a waiver of any other previous or subsequent breach of this Agreement.
 
18.         Survival .  The Company’s and Executive’s responsibilities under Sections 7 and 8 will survive the termination of this Agreement.
 
19.         Headings .  All captions and Section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement.
 
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20.         Tax Withholding .  All payments made pursuant to this Agreement will be subject to withholding of applicable taxes.
 
21.         Governing Law .  This Agreement will be governed by the laws of the State of Nevada without regard to its conflict of laws provisions.
 
22.         Acknowledgment .  Executive acknowledges that she has had the opportunity to discuss this matter with and obtain advice from Executive’s private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement.
 
23.         Code Section 409A .
 
(a)            Notwithstanding anything to the contrary in this Agreement, no severance payable to Executive, if any, pursuant to this Agreement, when considered together with any other severance payments or separation benefits that are considered deferred compensation under Section 409A of the Code and the final regulations and any guidance promulgated thereunder (“Section 409A”) (together, the “Deferred Compensation Separation Benefits”) shall be payable until Executive has a “separation from service” within the meaning of Section 409A.  Similarly, no severance payable to Executive, if any, pursuant to this Agreement that otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(9) will be payable until Executive has a “separation from service” within the meaning of Section 409A.
 
(b)            Further, if Executive is a “specified employee” within the meaning of Section 409A at the time of Executive’s separation from service (other than due to Executive’s death), then the Deferred Compensation Separation Benefits that are payable within the first six (6) months following Executive’s separation from service shall become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Executive’s separation from service.  All subsequent Deferred Compensation Separation Benefits, if any, shall be payable in accordance with the payment schedule applicable to each payment or benefit.  Notwithstanding anything herein to the contrary, if Executive dies following Executive’s separation from service but prior to the six (6) month anniversary of the separation from service, then any payments delayed in accordance with this paragraph shall be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and all other Deferred Compensation Separation Benefits shall be payable in accordance with the payment schedule applicable to each payment or benefit.  Each payment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.
 
(c)            Any amount paid under this Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations shall not constitute Deferred Compensation Separation Benefits for purposes of clause (a) above.
 
(d)            Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that do not exceed the Section 409A Limit (as defined below) shall not constitute Deferred Compensation Separation Benefits for purposes of clause (a) above.
 
(e)            For purposes of this Agreement, “Section 409A Limit” means the lesser of 2 times: (i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during Executive’s taxable year preceding Executive’s taxable year of Executive’s separation from service as determined under Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Internal Revenue Code for the year in which Executive’s separation from service occurred.
 
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(f)             The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder shall be subject to the additional tax imposed under Section 409A, and any ambiguities herein shall be interpreted to so comply.  The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.
 
24.         Counterparts .  This Agreement may be executed in counterparts, and each counterpart will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned.
 
****
 
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IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by a duly authorized officer, as of the day and year written below.
 
COMPANY:
     
       
RIMINI STREET, INC.
     
       
/s/ Seth A. Ravin
 
Date: 12/19/10
 
       
By: Seth A. Ravin, Chief Executive Officer
     
       
EXECUTIVE:
     
       
/s/ Sebastian Grady
 
Date: 12/19/10
 
Sebastian Grady
     

[SIGNATURE PAGE TO SEBASTIAN GRADY EMPLOYMENT AGREEMENT]
 
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RIMINI STREET, INC.
 
SEBASTIAN GRADY EMPLOYMENT AGREEMENT
 
EXHIBIT A

Effective Dates
Base Salary
 
Annual Incentive
 
Total
January 1, 2011– June 30, 2011
$
150,000.00 USD  
$
250,000.00 USD  
$
400,000 USD
July 1, 2011– December 31, 2011
$
175,000.00 USD  
$
250,000.00 USD  
$
425,000 USD
January 1, 2012 – June 30, 2012
$
200,000.00 USD  
$
250,000.00 USD  
$
450,000 USD
July 1, 2012 – December 31, 2012
$
225,000.00 USD  
$
250,000.00 USD  
$
475,000 USD
January 1, 2013 – December 31, 2013
$
250,000.00 USD  
$
250,000.00 USD  
$
500,000 USD
 
Annual Incentive amounts awarded, if any, will be determined at the sole discretion of the CEO.  Annual Incentive will take into consideration personal MBO achievement and key company performance measures.
 
Key company performance measures may include, but not be limited to:
 
·
Achievement of gross margin & budget targets
 
·
Achievement of operating profit targets
 
·
Achievement of new sales invoicing targets
 
·
Achievement of contract bookings targets
 
·
Achievement of renewal client invoicing & retention targets
 
·
Achievement of recognized revenue targets
 
·
Achievement of cash-in-bank, receivables, DSO & cash collection targets
 
·
Achievement of client satisfaction targets
 
·
Achievement of employee turnover targets
 
·
Achievement of fund raising targets
 
·
Achievement of lead generation & pipeline targets
 
 
-12-


Exhibit 10.25

Rimini Street, Inc.
7251 West Lake Mead Blvd., Suite 300
Las Vegas, Nevada 89128
Phone +1 702.839.9671
Fax +1 925.397.3193
E-mail: HR@riministreet.com

May 14 2013

Sebastian Grady

Re:  Updated terms of employment with Rimini Street, Inc.

Dear Sebastian:

As you know, Rimini Street, Inc. (“Rimini Street” or the “Company”) has been growing at a fast pace year-over-year, and the Company and its international affiliates now employ hundreds of talented, hardworking colleagues around the world.  Rimini Street is committed to providing all our colleagues with a challenging and exciting career and work environment with industry-leading compensation and benefits.

As we continue to grow and evolve, it is important that we update our employment records and make sure that your employment documents are kept current with changes that are made to employment terms and conditions.  Accordingly, we ask that you please carefully review the most current terms of employment details provided below and sign this document for your updated employee file.   These updated terms of employment shall have no effect on your existing obligations pursuant to our current Employee Intellectual Property and Confidentiality Agreement, the Rimini Street Acceptable Use Policy, the Rimini Street Employee Handbook and applicable state addendum, any other existing terms and conditions of your employment not addressed herein, nor any other terms and conditions required by law.

Also, please note that these updated terms of employment do not constitute an employment contract.  Your employment with Rimini Street remains “at will,” meaning that either you or the Company can terminate your employment at any time, for any reason or no reason.  As you would expect, Rimini Street reserves the right to adjust and change job profiles, compensation plans, employee roles, and other terms and conditions as it deems necessary.


EXEMPT POSITION DETAIL:

Title:
 
President & Chief Operating Officer
 
FLSA:
 
Exempt (FLSA-Classification)
Reports to:
 
Seth Ravin
 
Category:
 
Full-time, Regular
Location:
 
Pleasanton
(If home office: internet, telephone costs and charges, and reasonable office supply expenses are reimbursable.)
 
Employed Since:
Benefits:
 
1/1/2011
Regular employees working at least 30 hours per week are eligible for benefits, as described in the Employee Handbook and applicable benefit plan documents.

Job Duties :
(As previously provided to you or as directed by your manager)
 
Base Salary :
$250000.08 USD annualized ($20833.34 per month, paid semi-monthly)
 
Target Quarterly Performance Bonus :
$46875, subject to the Company Bonus Program terms and conditions described in Exhibit A.
 
Target Annual Retention Bonus :
$62500, subject to the Company Bonus Program terms and conditions described in Exhibit A.
Equity :
(Common Stock Options, if any, as previously expressly granted to you in writing)
 
To confirm your receipt and review of these updated terms of employment, we ask that you please e-sign below utilizing the electronic signature method provided.  Alternatively, you can sign and return an electronic copy via e-mail.

Thank you for your time and attention to this matter, and for your continued contributions as member of the Rimini Street team.  We look forward to continuing our work together to redefine enterprise software support.

Regards,
Seth A. Ravin
CEO
Rimini Street, Inc.

I, Sebastian Grady, hereby accept these updated terms of employment:

/s/ Sebastian Grady
 
May 17, 2013
Signature
 
Date

-2-

EXHIBIT A

Company Bonus Program

To reward employees for achievement of specific company goals, and for the employee’s own individual contributions to company success, Rimini Street, Inc. (hereinafter referred to as the “Company”) offers a competitive bonus program to eligible employees (the “Company Bonus Program”).

The Company Bonus Program may include a Quarterly Performance Bonus and/or an Annual Retention Bonus, as provided in the employee’s employment offer letter.  The Company offers these bonus programs in its discretion, and reserves the right to modify or revoke the bonus programs at any time.

Quarterly Performance Bonus :

The Quarterly Performance Bonus is calculated by multiplying the employee’s Quarterly Target Performance Bonus (dollar amount) by the Quarterly Company Performance Factor and the Quarterly Personal Performance Factor.

The Quarterly Company Performance Factor is determined based on the Company’s achievement of quarterly targets for client invoicing (80%) and expenses (20%), and may be modified upward or downward based on achievement of client satisfaction targets.

The Quarterly Personal Performance Factor is a percentage determined at the discretion of the employee’s manager (and approved or modified by senior management) based on the employee’s achievement of individual goals and objectives, and overall contribution to the Company’s success.

The Quarterly Performance Bonus shall be paid on according to the following schedule: Q1 Quarterly Bonus (covering the period January 1 through March 31) shall be paid on or before June 30; Q2 Quarterly Bonus (covering the period April 1 through June 30) shall be paid on or before September 30; Q3 Quarterly Bonus (covering the period July 1 through September 30) shall be paid on or before December 31; and Q4 Quarterly Bonus (covering the period October 1 through December 31) shall be paid on or before March 15 of the following year.

Effective January 1, 2013, for those employees eligible to receive a Quarterly Performance Bonus, eligibility begins on the employee’s start of employment and is pro-rated in the employee’s first calendar quarter.  Thereafter, to be eligible for the Quarterly Performance Bonus in a given calendar quarter, the employee must be employed through the last day of the calendar quarter in question.  The Quarterly Performance Bonus shall be pro-rated to account for any extended absence (meaning more than 5 contiguous days, excluding approved PTO) during the applicable bonus period, pro-rated based on a 365-day year.  The employee shall not be eligible for any Quarterly Performance Bonus for any quarter in which one or more of the following conditions exits: (a) employee’s employment ends before the completion of a given calendar quarter; (b) the Quarterly Company Performance Factor is less than 50%; (c) the employee was not in good standing, including, but not limited to, subject to a Performance Improvement Plan; or (d) the employee’s Quarterly Personal Performance Factor is less than 70%.
 

Annual Retention Bonus :

The Company provides eligible employees with Annual Retention Bonus to reward loyalty, performance and added value to Rimini Street through continued employment.

The Annual Retention Bonus is determined by multiplying the employee’s Target Annual Retention Bonus (dollar amount) by the Annual Company Performance Factor and the average of the Quarterly Personal Performance Factor used for the Quarterly Performance Bonus payments made to employee from January 1 through December 31 of the prior calendar year.

The Annual Company Performance Factor is determined based on the Company’s achievement of annual targets for client invoicing (80%) and expenses (20%), and may be modified upward or downward based on achievement of client satisfaction targets averaged for the entire year.

The Annual Retention Bonus shall be paid on or before March 15 of the following year.

Effective January 1, 2013, for those employees eligible to receive an Annual Retention Bonus, eligibility begins on the employee’s start of employment and is pro-rated for the employee’s first calendar year.  Thereafter, to be eligible for the Annual Retention Bonus for a given calendar year, the employee must be employed through the last day of the calendar year in question.  The Annual Retention Bonus shall be pro-rated to account for any extended absence (meaning more than 5 contiguous days, excluding approved PTO) during the applicable bonus period, pro-rated based on a 365-day year.  The bonus shall also be pro-rated to exclude those days of the year in which the employee was not in good standing (including, without limitation, those days in which the employee was subject to a Performance Improvement Plan).  The employee shall not be eligible for any Annual Retention Bonus for any calendar year in which one or more of the following conditions exists: (a) employee’s employment ends before the completion of a given calendar year; (b) the Annual Company Performance Factor is less than 50%; or (c) the employee’s average Quarterly Personal Performance Factor is less than 70% for the calendar year.

The bonus shall also be pro-rated to exclude those days of the year in which the employee was not in good standing (including without limitation those days in which the employee was subject to a Performance Improvement Plan).

Questions or concerns about this Company Bonus Policy should be discussed with Human Resources.
 
-2-


Exhibit 10.26

FINANCING AGREEMENT


Dated as of June 24, 2016


by and among


RIMINI STREET, INC.,
as a Borrower,




EACH SUBSIDIARY OF RIMINI STREET, INC.
LISTED AS A GUARANTOR ON THE SIGNATURE PAGES HERETO
AND FROM TIME TO TIME PARTY HERETO,
as Guarantors,




THE LENDERS FROM TIME TO TIME PARTY HERETO,
as Lenders,




CORTLAND CAPITAL MARKET SERVICES LLC,
as Collateral Agent,






CORTLAND CAPITAL MARKET SERVICES LLC,
as Administrative Agent
 
and
 
CB AGENT SERVICES LLC,
as Origination Agent
 
FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE AND RELATED TREASURY REGULATIONS, THE TERM LOAN IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT. REQUESTS FOR INFORMATION REGARDING THE ORIGINAL ISSUE DISCOUNT, ISSUE DATE, YIELD TO MATURITY, COMPARABLE YIELD AND PROJECTED PAYMENT SCHEDULE ON THE TERM LOAN MAY BE DIRECTED TO RIMINI STREET, INC., 3993 HOWARD HUGHES PARKWAY, SUITE 500, LAS VEGAS, NEVADA 89169.
 


TABLE OF CONTENTS
 
Page
 
ARTICLE I DEFINITIONS; CERTAIN TERMS
1
Section 1.01    Definitions
1
Section 1.02    Terms Generally
45
Section 1.03    Certain Matters of Construction
46
Section 1.04    Accounting and Other Terms
46
Section 1.05    Time References
47
ARTICLE II THE LOANS
47
Section 2.01    Commitments
47
Section 2.02    Making the Loans
49
Section 2.03    Repayment of Loans; Evidence of Debt
50
Section 2.04    Interest
50
Section 2.05    Reduction of Commitment; Prepayment of Loans
52
Section 2.06    Fees
55
Section 2.07    [Intentionally Omitted]
56
Section 2.08    [Intentionally Omitted]
56
Section 2.09    Taxes
56
Section 2.10    Increased Costs and Reduced Return
58
ARTICLE III INTENTIONALLY OMITTED
60
ARTICLE IV APPLICATION OF PAYMENTS; DEFAULTING LENDERS; JOINT AND SEVERAL LIABILITY OF BORROWERS
60
Section 4.01    Payments; Computations and Statements
60
Section 4.02    Sharing of Payments
61
Section 4.03    Apportionment of Payments
61
Section 4.04    Defaulting Lenders
63
Section 4.05    Administrative Borrower; Joint and Several Liability of the Borrowers
64
ARTICLE V CONDITIONS TO LOANS
65
Section 5.01    Conditions Precedent to Effectiveness
65
Section 5.02    Conditions Precedent to Loans made from Delayed Draw A Term Loan Commitments
69
Section 5.03    Conditions Precedent to Loans made from Delayed Draw B Term Loan Commitments
71
ARTICLE VI REPRESENTATIONS AND WARRANTIES
73
Section 6.01    Representations and Warranties
73
ARTICLE VII COVENANTS OF THE LOAN PARTIES
80
Section 7.01    Affirmative Covenants
80
Section 7.02    Negative Covenants
91
Section 7.03    Financial Covenants
97
i


ARTICLE VIII CASH MANAGEMENT ARRANGEMENTS AND OTHER COLLATERAL MATTERS
101
Section 8.01    Cash Management Arrangements
101
ARTICLE IX EVENTS OF DEFAULT
103
Section 9.01    Events of Default
103
ARTICLE X AGENTS
107
Section 10.01    Appointment
107
Section 10.02    Nature of Duties; Delegation
108
Section 10.03    Rights, Exculpation, Etc
108
Section 10.04    Reliance
109
Section 10.05    Indemnification
109
Section 10.06    Agents Individually
110
Section 10.07    Successor Agent
110
Section 10.08    Collateral Matters
111
Section 10.09    Agency for Perfection
113
Section 10.10    No Reliance on any Agent’s Customer Identification Program
113
Section 10.11    No Third Party Beneficiaries
114
Section 10.12    No Fiduciary Relationship
114
Section 10.13    Reports; Confidentiality; Disclaimers
114
Section 10.14    Collateral Custodian
114
Section 10.15    Collateral Agent May File Proofs of Claim
115
Section 10.16    Origination Agent as Advisor
115
ARTICLE XI GUARANTY
116
Section 11.01    Guaranty
116
Section 11.02    Guaranty Absolute
116
Section 11.03    Waiver
117
Section 11.04    Continuing Guaranty; Assignments
118
Section 11.05    Subrogation
118
Section 11.06    Contribution
118
ARTICLE XII MISCELLANEOUS
119
Section 12.01    Notices, Etc
119
Section 12.02    Amendments, Etc
121
Section 12.03    No Waiver; Remedies, Etc
123
Section 12.04    Expenses; Attorneys’ Fees
124
Section 12.05    Right of Set-off
125
Section 12.06    Severability
125
Section 12.07    Assignments and Participations
125
Section 12.08    Counterparts
129
Section 12.09    GOVERNING LAW
129
Section 12.10    CONSENT TO JURISDICTION; SERVICE OF PROCESS AND VENUE
130
Section 12.11    WAIVER OF JURY TRIAL, ETC
131
Section 12.12    Consent by the Agents and Lenders
131
Section 12.13    No Party Deemed Drafter
131
Section 12.14    Reinstatement; Certain Payments
131
ii


Section 12.15    Indemnification; Limitation of Liability for Certain Damages
132
Section 12.16    Records
133
Section 12.17    Binding Effect
133
Section 12.18    Highest Lawful Rate
133
Section 12.19    Confidentiality
134
Section 12.20    Public Disclosure
135
Section 12.21    Integration
135
Section 12.22    USA PATRIOT Act
135

iii


SCHEDULE AND EXHIBITS
 
Schedule 1.01(A)
Lenders and Lenders’ Commitments
Schedule 1.01(B)
Ineligible Assignees
Schedule 2.03
Amortization
Schedule 6.01(e)
Capitalization; Subsidiaries
Schedule 6.01(f)
Litigation
Schedule 6.01(i)
ERISA
Schedule 6.01(l)
Nature of Business
Schedule 6.01(q)
Environmental Matters
Schedule 6.01(r)
Insurance
Schedule 6.01(u)
Intellectual Property
Schedule 6.01(v)
Material Contracts
Schedule 7.01(c)(ii)
Certain tax liabilities
Schedule 7.02(a)
Existing Liens
Schedule 7.02(b)
Existing Indebtedness
Schedule 7.02(e)
Existing Investments
Schedule 7.02(k)
Limitations on Dividends and Other Payment Restrictions
Schedule 8.01
Cash Management Accounts
 
Exhibit A
Form of Joinder Agreement
Exhibit B
Form of Assignment and Acceptance
Exhibit C
Form of Notice of Borrowing
Exhibit D
Form of Perfection Certificate
Exhibit E
Form of Note
Exhibit F
Form of Compliance Certificate
Exhibit G
Form of Intercompany Subordination Agreement
 
iv


FINANCING AGREEMENT
 
Financing Agreement, dated as of June 24, 2016, by and among Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” hereunder, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages hereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” hereunder or otherwise guaranties all or any part of the Obligations (as hereinafter defined), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party hereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC (“ Cortland ”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“ Colbeck ”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”).
 
RECITALS
 
The Borrowers have asked the Lenders to extend credit to the Borrowers consisting of a multi-draw term loan in the aggregate principal amount of $125,000,000. The proceeds of the term loan shall be used to pay the final judgment of the Oracle Litigation (as hereinafter defined), fund an appeal bond with respect to the Appealable Claims (as hereinafter defined), to pay legal fees or other costs and expenses related to the Oracle Litigation, for general working capital purposes of the Borrowers and to pay fees and expenses related to this Agreement. The Lenders are severally, and not jointly, willing to extend such credit to the Borrowers subject to the terms and conditions hereinafter set forth.
 
In consideration of the premises and the covenants and agreements contained herein, the parties hereto agree as follows:
 
ARTICLE I

DEFINITIONS; CERTAIN TERMS
 
Section 1.01        Definitions . As used in this Agreement, the following terms shall have the respective meanings indicated below:
 
Account Debtor ” means, with respect to any Person, each debtor, customer or obligor in any way obligated on or in connection with any Account of such Person.
 
Account Receivable ” means, with respect to any Person, any and all rights of such Person to payment for goods sold and/or services rendered.
 
Acquisition ” means the acquisition (whether by means of a merger, consolidation or otherwise) of all of the Equity Interests of any Person or all or substantially all of the assets of (or any division or business line of) any Person.
 


Action ” has the meaning specified therefor in Section 12.12.
 
Additional Amount ” has the meaning specified therefor in Section 2.09(a).
 
Administrative Agent ” has the meaning specified therefor in the preamble hereto.
 
Administrative Agent’s Account ” means an account at a bank designated by the Administrative Agent from time to time as the account into which the Loan Parties shall make all payments to the Administrative Agent for the benefit of the Agents and the Lenders under this Agreement and the other Loan Documents.
 
Administrative Borrower ” has the meaning specified therefor in Section 4.05.
 
Affiliate ” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such Person. For purposes of this definition, “control” of a Person means the power, directly or indirectly, either to (a) vote 10% or more of the Equity Interests having ordinary voting power for the election of members of the Board of Directors of such Person or (b) direct or cause the direction of the management and policies of such Person whether by contract or otherwise. Notwithstanding anything herein to the contrary, in no event shall any Agent or any Lender be considered an “Affiliate” of any Loan Party.
 
Affiliated Advisors ” has the meaning specified therefor in Section 10.16.
 
After Acquired Property ” has the meaning specified therefor in Section 6.01(n).
 
Agent ” has the meaning specified therefor in the preamble hereto.
 
Agent Fee Letter ” means that certain Fee Letter, dated June 24, 2016, between Cortland and the Borrowers.
 
Agreement ” means this Financing Agreement, including all amendments, modifications and supplements and any exhibits or schedules to any of the foregoing, and shall refer to the Agreement as the same may be in effect at the time such reference becomes operative.
 
Amortization Commencement Date ” means, the first Business Day of the month immediately succeeding the month during which the final judgment in connection with the litigation described in clause (i) of the definition of Oracle Litigation has been entered.
 
Anti-Corruption Laws ” has the meaning specified therefor in Section 6.01(z).
 
2


Anti-Money Laundering and Anti-Terrorism Laws ” means any Requirement of Law relating to terrorism, economic sanctions or money laundering, including, without limitation, (a) the Money Laundering Control Act of 1986 ( i.e. , 18 U.S.C. §§ 1956 and 1957), (b) the Bank Secrecy Act of 1970 (31 U.S.C. §§ 5311-5330 and 12 U.S.C. §§ 1818(s), 1820(b) and 1951-1959), and the implementing regulations promulgated thereunder, (c) the USA PATRIOT Act and the implementing regulations promulgated thereunder, (d) the laws, regulations and Executive Orders administered by the United States Department of the Treasury’s Office of Foreign Assets Control (“ OFAC ”), (e) any law prohibiting or directed against terrorist activities or the financing or support of terrorist activities ( e.g. , 18 U.S.C. §§ 2339A and 2339B), and (f) any similar laws enacted in the United States or any other jurisdictions in which the parties to this Agreement operate, as any of the foregoing laws have been, or shall hereafter be, amended, renewed, extended, or replaced and all other present and future legal requirements of any Governmental Authority governing, addressing, relating to, or attempting to eliminate, terrorist acts and acts of war and any regulations promulgated pursuant thereto.
 
Appealable Claims ” means any claims for the Oracle Litigation Computer Access Damages, the Oracle Litigation Fees and Costs or the Oracle Litigation Interest.
 
Applicable Premium ” means, as of the date of the occurrence of an Applicable Premium Trigger Event:
 
(a)                during the period of time from and after the Effective Date up to and including the date that is the thirty-six (36) month anniversary of the Effective Date (the “ First Period ”), an amount equal to the Make-Whole Amount;
 
(b)               during the period of time after the First Period up to and including the date that is the forty-eight (48) month anniversary of the Effective Date, an amount equal to 1.00% times the principal amount of any principal prepayment of the outstanding Term Loans on such date (or, in the case of clauses (b), (c), (d) or (e) of the definition of Applicable Premium Trigger Event, the principal amount of the Term Loan outstanding on such date); and
 
(c)                thereafter, zero.
 
Applicable Premium Trigger Event ” means
 
(a)                any payment by any Loan Party of all, or any part, of the principal balance of any Term Loan for any reason (including, but not limited to, any optional prepayment or mandatory prepayment, but excluding (x) any regularly scheduled amortization payment made pursuant to the first sentence of Section 2.03(a), (y) any mandatory prepayment made pursuant to Section 2.05(c)(iv) from the insurance proceeds paid in connection with any casualty event and (z) any mandatory prepayment made pursuant to Section 2.05(c)(vi)) whether before or after (i) the occurrence of an Event of Default, or (ii) the commencement of any Insolvency Proceeding, and notwithstanding any acceleration (for any reason) of the Obligations;
 
(b)               the acceleration of the Obligations for any reason, including, but not limited to, acceleration in accordance with Section 9.01, including as a result of the commencement of an Insolvency Proceeding;
 
(c)                the satisfaction, release, payment, restructuring, reorganization, replacement, reinstatement, defeasance or compromise of any of the Obligations in any Insolvency Proceeding, foreclosure (whether by power of judicial proceeding or otherwise) or deed in lieu of foreclosure or the making of a distribution of any kind in any Insolvency Proceeding to the Collateral Agent, for the account of the Secured Parties in full or partial satisfaction of the Obligations;
 
3


(d)               any reduction of the Total Delayed Draw Term Loan Commitment (other than any reduction pursuant to Section 2.01(b) or Section 2.05(a)); or
 
(e)                the termination of this Agreement for any reason not described in clauses (a) through (d) above.
 
Asset Coverage Ratio ” means, (I) with respect to the Parent and its Subsidiaries for any period prior to the making of any Term Loans pursuant to the Lenders’ Delayed Draw A Term Loan Commitments, the ratio of (a) the Current A/R Value as of the end of such period, to (b) the result of (x) all Consolidated Total Debt of the Parent and its Subsidiaries as of the end of such period minus (y) all Qualified Cash of the Parent and its Subsidiaries as of the end of such period, and (II) with respect to the Parent and its Subsidiaries for any period after the making of any Term Loans pursuant to the Lenders’ Delayed Draw A Term Loan Commitments, the ratio of (a) the sum of (i) the Non-Cancellable Contract Value plus (ii) the Current A/R Value, in each case, as of the end of such period, to (b) the result of (x) all Consolidated Total Debt of the Parent and its Subsidiaries as of the end of such period minus (y) all Qualified Cash of the Parent and its Subsidiaries as of the end of such period.
 
Assignment and Acceptance ” means an assignment and acceptance entered into by an assigning Lender and an assignee, and accepted by the Origination Agent and the Administrative Agent, in accordance with Section 12.07 hereof and substantially in the form of Exhibit B hereto or such other form acceptable to the Administrative Agent.
 
Authorized Officer ” means, with respect to any Loan Party, the chief executive officer, chief financial officer, chief administrative officer, vice president-finance, treasurer, president or executive vice president of such Loan Party.
 
Bankruptcy Code ” means Title 11 of the United States Code, as amended from time to time and any successor statute or any similar federal or state law for the relief of debtors.
 
Blocked Collection Account ” shall have the meaning specified therefor in Section 8.01(a).
 
Blocked Person ” means any Person:
 
(a)                that (i) is identified on the list of “Specially Designated Nationals and Blocked Persons” published by OFAC; (ii) resides, is organized or chartered, or has a place of business in a country or territory that is the subject of an OFAC Sanctions Program; or (iii) a United States Person is prohibited from dealing or engaging in a transaction with under any of the Anti-Money Laundering and Anti-Terrorism Laws; and
 
(b)               that is owned or controlled by, or that owns or controls, or that is acting for or on behalf of, any Person described in clause (a) above.
 
Board ” means the Board of Governors of the Federal Reserve System of the United States (or any successor).
 
4


Board of Directors ” means with respect to (a) any corporation, the board of directors of the corporation or any committee thereof duly authorized to act on behalf of such board, (b) a partnership, the board of directors of the general partner of the partnership, (c) a limited liability company, the managing member or members or any controlling committee or board of directors of such company or the sole member or the managing member thereof, and (d) any other Person, the board or committee of such Person serving a similar function.
 
Borrower ” has the meaning specified therefor in the preamble hereto.
 
Budget Compliance Report ” has the meaning specified therefor in Section 8.01(c).
 
Business Day ” means any day other than a Saturday, Sunday or other day on which commercial banks in New York City or Nevada are authorized or required to close.
 
Capital Expenditures ” means, with respect to any Person for any period, the sum of (a) the aggregate of all expenditures by such Person and its Subsidiaries during such period that in accordance with GAAP are or should be included in “property, plant and equipment” or in a similar fixed asset account on its balance sheet, whether such expenditures are paid in cash or financed, including all Capitalized Lease Obligations that are paid or due and payable during such period and (b) to the extent not covered by clause (a) above, the aggregate of all expenditures by such Person and its Subsidiaries during such period to acquire by purchase or otherwise the business or fixed assets of, or the Equity Interests of, any other Person; provided , that the term “Capital Expenditures” shall not include any such expenditures which constitute (i) expenditures by a Loan Party made in connection with the replacement, substitution or restoration of such Loan Party’s assets pursuant to Section 2.05(c)(v) from the Net Cash Proceeds of Dispositions and Extraordinary Receipts consisting of insurance proceeds or condemnation awards, (ii) a Permitted Acquisition, (iii) expenditures that are accounted for as capital expenditures of such Person and that actually are paid for by a third party (excluding any Loan Party) and for which no Loan Party has provided or is required to provide or incur, directly or indirectly, any consideration or obligation to such third party or any other person (whether before, during or after such period), and (iv) the purchase price of equipment that is purchased substantially contemporaneously with the trade in of existing equipment to the extent that the gross amount of such purchase price is reduced by the credit granted by the seller of such equipment for the equipment being traded in at such time.
 
Capitalized Lease ” means, with respect to any Person, any lease of (or other arrangement conveying the right to use) real or personal property by such Person as lessee that is required under GAAP to be capitalized on the balance sheet of such Person.
 
Capitalized Lease Obligations ” means, with respect to any Person, obligations of such Person and its Subsidiaries under Capitalized Leases, and, for purposes hereof, the amount of any such obligation shall be the capitalized amount thereof determined in accordance with GAAP.
 
5


Cash Equivalents ” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States Government or any member of the European Union or issued by any agency thereof and backed by the full faith and credit of the United States or any member of the European Union or any agency thereof, in each case, maturing within six months from the date of acquisition thereof; (b) commercial paper, maturing not more than 270 days after the date of issue rated P-1 by Moody’s or A-1 by Standard & Poor’s; (c) certificates of deposit maturing not more than 270 days after the date of issue, issued by commercial banking institutions and money market or demand deposit accounts maintained at commercial banking institutions, each of which is a member of the Federal Reserve System and has a combined capital and surplus and undivided profits of not less than $500,000,000; (d) repurchase agreements having maturities of not more than 90 days from the date of acquisition which are entered into with major money center banks included in the commercial banking institutions described in clause (c) above and which are secured by readily marketable direct obligations of the United States Government or any agency thereof; (e) money market accounts maintained with mutual funds having assets in excess of $2,500,000,000, which assets are primarily comprised of Cash Equivalents described in another clause of this definition; (f) marketable tax exempt securities rated A or higher by Moody’s or A+ or higher by Standard & Poor’s, in each case, maturing within 270 days from the date of acquisition thereof; and (g) instruments equivalent to those referred to in clauses (a) through (f) above comparable in credit quality and tenor to those referred to above and denominated in any foreign currency that is convertible to Dollars and commonly used by corporations for cash management purposes in any jurisdiction outside the United States of America to the extent reasonably required in connection with any business conducted by any Subsidiary organized in such jurisdiction.
 
Cash Management Accounts ” means the bank accounts of each Loan Party maintained at one or more Cash Management Banks listed on Schedule 8.01.
 
Cash Management Bank ” has the meaning specified therefor in Section 8.01(a).
 
CFC ” means a controlled foreign corporation (as that term is defined in the Internal Revenue Code).
 
Change in Law ” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation, judicial ruling, judgment or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives concerning capital adequacy promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities shall, in each case, be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.
 
Change of Control ” means each occurrence of any of the following:
 
(a)                the Permitted Holders cease to beneficially and of record own and control, directly or indirectly, at least (i) 50.1% on a fully diluted basis of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Parent or (ii) 35% on a fully diluted basis of the aggregate ordinary economic power represented by the issued and outstanding Equity Interests of the Parent;
 
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(b)               Seth Ravin, SAR Trust U/A/D August 30, 2005 or their Controlled Investment Affiliates cease to beneficially and of record own and control, directly or indirectly, at least (i) 20% on a fully diluted basis of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Parent or (ii) 15% on a fully diluted basis of the aggregate ordinary economic power represented by the issued and outstanding Equity Interests of the Parent;
 
(c)                the acquisition, directly or indirectly, by any person or group (within the meaning of Section 13(d)(3) of the Exchange Act) other than a Permitted Holder of beneficial ownership of more than 33% of the aggregate ordinary voting or economic power represented by the issued and outstanding Equity Interests of the Parent;
 
(d)               the Parent shall cease to have beneficial ownership (as defined in Rule 13d-3 under the Exchange Act) of 100% of the aggregate voting or economic power of the Equity Interests of each other Loan Party and each of its Subsidiaries (other than (i) in connection with any transaction permitted pursuant to Section 7.02(c)(i) and (ii) (x) director’s qualifying shares and (y) shares issued to foreign nationals, in each case, to the extent required by applicable law to be issued), free and clear of all Liens (other than Permitted Specified Liens);
 
(e)                Seth Ravin shall cease to be involved in the day to day operations and management of the business of the Parent, and a successor reasonably acceptable to the Origination Agent and the Required Lenders is not appointed by the Parent’s Board of Directors on terms reasonably acceptable to the Origination Agent and the Required Lenders within 45 days of such cessation of involvement; or
 
(f)                a “Change of Control” (or any comparable term or provision, but excluding any change of control arising as a result of a Change of Control Effective Date Transaction) under or with respect to any of the Equity Interests of the Parent or other Indebtedness of the Parent or any of its Subsidiaries with a principal amount in excess of $1,000,000.
 
Change of Control Effective Date Transaction ” means a “Change of Control Transaction” (as defined in the Parent’s Certificate of Incorporation as in effect on the Effective Date) arising on the Effective Date solely as a result of the granting of the Liens under the Loan Documents, provided that no consideration is required to be paid to the Class A and Class B Equity Interests of the Parent as a result of such “Change of Control Transaction”.
 
Churn Rate ” means, with respect to the Parent and its Subsidiaries for any period, the result (expressed as a percentage) of (a) the aggregate amount of recurring revenue of the Parent and its Subsidiaries lost during such period, divided by (b) the aggregate amount of recurring revenue of the Parent and its Subsidiaries as of the beginning of such period.
 
Colbeck ” has the meaning specified therefor in the preamble hereto.
 
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Colbeck Lenders ” has the meaning specified therefor in Section 10.16.
 
Collateral ” means all of the property and assets and all interests therein and proceeds thereof now owned or hereafter acquired by any Loan Party upon which a Lien is granted or purported to be granted by such Loan Party in favor of Collateral Agent as security for all or any part of the Obligations.
 
Collateral Access Agreement ” means an agreement, in form and substance reasonably satisfactory to the Origination Agent and the Collateral Agent, pursuant to which a mortgagee or lessor of real property on which Collateral is stored or otherwise located, or a warehouseman, processor or other bailee of Inventory or other property owned by any Loan Party, acknowledges the Liens of Collateral Agent and, in the case of any such agreement with a mortgagee or lessor, permits Collateral Agent reasonable access to and use of such real property.
 
Collateral Agent ” has the meaning specified therefor in the preamble hereto.
 
Collections ” means all cash, checks, notes, instruments, and other items of payment (including insurance proceeds, proceeds of cash sales, rental proceeds, and tax refunds), excluding any Specified Collections.
 
Commitment Fee Letter ” means the commitment fee letter, dated as of the date hereof, among the Borrowers and the Origination Agent.
 
Commitments ” means, with respect to each Lender, such Lender’s Effective Date Term Loan Commitment, Delayed Draw A Term Loan Commitment and Delayed Draw B Term Loan Commitment.
 
Commodity Exchange Act ” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
 
Compliance Certificate ” has the meaning assigned to such term in Section 7.01(a)(iv).
 
Connection Income Taxes ” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.
 
Consolidated EBITDA ” means, with respect to any Person for any period:
 
(a)                the Consolidated Net Income of such Person for such period,
 
plus
 
(b)               without duplication, the sum of the following amounts for such period to the extent deducted in the calculation of Consolidated Net Income for such period:
 
(i)                 any provision for United States federal income taxes or other taxes measured by net income,
 
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(ii)               Consolidated Net Interest Expense,
 
(iii)             any loss from extraordinary items,
 
(iv)             any depreciation and amortization expense,
 
(v)               any aggregate net loss on the Disposition of property (other than accounts and Inventory) outside the ordinary course of business,
 
(vi)             any fees and expenses paid (in cash or through original issue discount) to the Agents and the Lenders pursuant to, or in connection with, the Loan Documents during such period,
 
(vii)           Capital Expenditures made during such period to the extent permitted hereunder,
 
(viii)         expenses related to an initial public offering paid during such period, to the extent permitted to be paid under Section 7.02(t),
 
(ix)             one-time litigation costs actually paid during such period in an aggregate amount not exceeding $2,500,000 during the term of this Agreement,
 
(x)               any other non-cash expenditure, charge or loss for such period (other than any non-cash expenditure, charge or loss relating to write-offs, write-downs or reserves with respect to accounts and Inventory), and
 
(xi)             the excess, if any, of Working Capital at the end of such period over Working Capital at the beginning of such period,
 
minus
 
(c)                without duplication, the sum of the following amounts for such period to the extent included in the calculation of such Consolidated Net Income for such period:
 
(i)                 any credit for United States federal income taxes or other taxes measured by net income,
 
(ii)               any gain from extraordinary items,
 
(iii)             any aggregate net gain from the Disposition of property (other than accounts and Inventory) outside the ordinary course of business,
 
(iv)             any other non-cash gain, including any reversal of a charge referred to in clause (b)(vi) above by reason of a decrease in the value of any Equity Interest,
 
(v)               the excess, if any, of Working Capital at the beginning of such period over Working Capital at the end of such period, and
 
(vi)             any Extraordinary Prepayments;
 
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in each case, determined on a consolidated basis in accordance with GAAP.
 
Consolidated Net Income ” means, with respect to any Person, for any period, the consolidated net income (or loss) of such Person and its Subsidiaries for such period; provided , however , that the following shall be excluded: (a) the net income of any other Person in which such Person or one of its Subsidiaries has a joint interest with a third-party (which interest does not cause the net income of such other Person to be consolidated into the net income of such Person), except to the extent of the amount of dividends or distributions paid to such Person or Subsidiary, (b) the net income of any Subsidiary of such Person that is, on the last day of such period, subject to any restriction or limitation on the payment of dividends or the making of other distributions, to the extent of such restriction or limitation, and (c) the net income of any other Person arising prior to such other Person becoming a Subsidiary of such Person or merging or consolidating into such Person or its Subsidiaries.
 
Consolidated Net Interest Expense ” means, with respect to any Person for any period, (a) gross interest expense of such Person and its Subsidiaries for such period determined on a consolidated basis and in accordance with GAAP (including, without limitation, interest expense paid to Affiliates of such Person), less (b) the sum of (i) interest income for such period and (ii) gains for such period on Hedging Agreements (to the extent not included in interest income above and to the extent not deducted in the calculation of gross interest expense), plus (c) the sum of (i) losses for such period on Hedging Agreements (to the extent not included in gross interest expense) and (ii) the upfront costs or fees for such period associated with Hedging Agreements (to the extent not included in gross interest expense), in each case, determined on a consolidated basis and in accordance with GAAP.
 
Consolidated Total Debt ” means, as at any date of determination for any Person, the aggregate principal amount (or stated balance sheet amount, if larger) of all Indebtedness of such Person and its Subsidiaries determined on a consolidated basis in accordance with GAAP.
 
Contingent Indemnity Obligations ” means any Obligation constituting a contingent, unliquidated indemnification obligation of any Loan Party, in each case, to the extent (a) such obligation has not accrued and is not yet due and payable and (b) no claim has been made or is reasonably anticipated to be made with respect thereto.
 
Contingent Obligation ” means, with respect to any Person, any obligation of such Person guaranteeing or intending to guarantee any Indebtedness, leases, dividends or other obligations (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including, without limitation, (a) the direct or indirect guaranty, endorsement (other than for collection or deposit in the ordinary course of business), co-making, discounting with recourse or sale with recourse by such Person of the obligation of a primary obligor, (b) the obligation to make take-or-pay or similar payments, if required, regardless of nonperformance by any other party or parties to an agreement, (c) any obligation of such Person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (A) for the purchase or payment of any such primary obligation or (B) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, assets, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof; provided , however , that the term “Contingent Obligation” shall not include any product warranties extended in the ordinary course of business, endorsements of instruments for deposit or collection in the ordinary course of business, or customary and reasonable indemnity obligations entered into in connection with any contractual arrangement. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation with respect to which such Contingent Obligation is made (or, if less, the maximum amount of such primary obligation for which such Person may be liable pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if not stated or determinable, the maximum reasonably anticipated liability with respect thereto (assuming such Person is required to perform thereunder), as determined by such Person in good faith.
 
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Contractual Obligation ” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.
 
Control Agreement ” means, with respect to any deposit account, any securities account, commodity account, securities entitlement or commodity contract, an agreement, in form and substance reasonably satisfactory to the Origination Agent and the Collateral Agent, among the Collateral Agent, the financial institution or other Person at which such account is maintained or with which such entitlement or contract is carried and the Loan Party maintaining such account, effective to grant “control” (as defined under the applicable UCC) over such account to the Collateral Agent.
 
Controlled Investment Affiliate ” means, as to any Person, any other Person that (a) directly or indirectly, is in control of, is controlled by, or is under common control with, such Person and (b) is organized by such Person primarily for the purpose of making equity or debt investments in one or more companies. For purposes of this definition, “control” of a Person means the power, directly or indirectly, to direct or cause the direction of the management and policies of such Person whether by contract or otherwise.
 
Cooperation Party ” means Seth Ravin.
 
Cooperation Agreement ” means the cooperation agreement, dated as of the Effective Date, made by the Parent and the Cooperation Party in favor of the Collateral Agent for the benefit of the Secured Parties, as it may be amended, supplemented or otherwise modified from time to time.
 
Cortland ” has the meaning specified therefor in the preamble hereto.
 
Covered Affiliate ” means (a) the Borrowers, each of the Borrowers’ Subsidiaries, all Guarantors and all pledgors of Collateral and (b) each Person that, directly or indirectly, is in control of a Person described in clause (a) above. For purposes of this definition, control of a Person shall mean the direct or indirect (x) ownership of, or power to vote, 25% or more of the issued and outstanding equity interests having ordinary voting power for the election of directors of such Person or other Persons performing similar functions for such Person, or (y) power to direct or cause the direction of the management and policies of such Person whether by ownership of equity interests, contract or otherwise.
 
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Current A/R Value ” means, with respect to the Parent and its Subsidiaries as of any date of determination, the aggregate amount of outstanding Accounts Receivable (other than accounts past due by more than 90 days) of the Parent and its Subsidiaries as of such date.
 
Current Value ” has the meaning specified therefor in Section 7.01(m).
 
Debtor Relief Law ” means the Bankruptcy Code and any other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief law of the United States or other applicable jurisdiction from time to time in effect.
 
Default ” means an event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default.
 
Defaulting Lender ” means any Lender that (a) has failed to (i) fund all or any portion of its Loans within 2 Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Administrative Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within 2 Business Days of the date when due, (b) has notified the Administrative Borrower, or the Administrative Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within 3 Business Days after written request by the Administrative Agent or the Administrative Borrower, to confirm in writing to the Administrative Agent and the Administrative Borrower that it will comply with its prospective funding obligations hereunder ( provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Administrative Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity. Notwithstanding anything to the contrary herein, a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permits such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender upon delivery of written notice of such determination to the Administrative Borrower and each Lender.
 
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Delayed Draw A Pro Rata Share ” means, with respect to a Lender’s obligation to make the Term Loans after the Effective Date pursuant to such Lender’s Delayed Draw A Term Loan Commitment, the percentage obtained by dividing (i)  such Lender’s Delayed Draw A Term Loan Commitment, by (ii) the Total Delayed Draw A Term Loan Commitment.
 
Delayed Draw A Term Loan Commitment ” means, with respect to each Lender, the commitment of such Lender to make the Term Loans to the Borrowers after the Effective Date in the amount set forth in Schedule 1.01(A) hereto under the heading “Delayed Draw A Term Loan Commitment”, as the same may be terminated or reduced from time to time in accordance with the terms of this Agreement.
 
Delayed Draw A Term Loan Commitment Termination Date ” means the earliest to occur of (i) the date the Delayed Draw A Term Loan Commitments are permanently reduced to zero pursuant to Section 2.01(b), (ii) the date of the termination of the Delayed Draw A Term Loan Commitments pursuant to Section 9.01 and (iii) the first anniversary of the Effective Date.
 
Delayed Draw A Unused Line Fee ” has the meaning specified therefor in Section 2.06(c).
 
Delayed Draw B Pro Rata Share ” means, with respect to a Lender’s obligation to make the Term Loans after the Effective Date pursuant to such Lender’s Delayed Draw B Term Loan Commitment, the percentage obtained by dividing (i)  such Lender’s Delayed Draw B Term Loan Commitment, by (ii) the Total Delayed Draw B Term Loan Commitment.
 
Delayed Draw B Term Loan Commitment ” means, with respect to each Lender, the commitment of such Lender to make the Term Loans to the Borrowers after the Effective Date in the amount set forth in Schedule 1.01(A) hereto under the heading “Delayed Draw B Term Loan Commitment”, as the same may be terminated or reduced from time to time in accordance with the terms of this Agreement.
 
Delayed Draw B Term Loan Commitment Termination Date ” means the earliest to occur of (i) the date the Delayed Draw B Term Loan Commitments are permanently reduced to zero pursuant to Section 2.01(b), (ii) the date of the termination of the Delayed Draw B Term Loan Commitments pursuant to Section 2.05(a), (iii) the date of the termination of the Delayed Draw B Term Loan Commitments pursuant to Section 9.01 and (iv) the Final Maturity Date.
 
Delayed Draw B Unused Line Fee ” has the meaning specified therefor in Section 2.06(d).
 
Disbursement Letter ” means a disbursement letter, in form and substance satisfactory to the Origination Agent and the Administrative Agent, by and among the Loan Parties, the Agents, the Lenders and the other Persons party thereto, and the related funds flow memorandum describing the sources and uses of all cash payments in connection with the transactions contemplated to occur on the Effective Date.
 
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Disposition ” means any transaction, or series of related transactions, pursuant to which any Person or any of its Subsidiaries sells, assigns, transfers, leases, licenses (as licensor) or otherwise disposes of any property or assets (whether now owned or hereafter acquired) to any other Person, in each case, whether or not the consideration therefor consists of cash, securities or other assets owned by the acquiring Person. For purposes of clarification, “Disposition” shall include (a) the sale or other disposition for value of any contracts or (b) the early termination or modification of any contract resulting in the receipt by any Loan Party of a cash payment or other consideration in exchange for such event (other than payments in the ordinary course for accrued and unpaid amounts due through the date of termination or modification) or (c), any sale of merchant accounts (or any rights thereto (including, without limitation, any rights to any residual payment stream with respect thereto)) by any Loan Party.
 
Disqualified Equity Interests ” means any Equity Interest that, by its terms (or by the terms of any security or other Equity Interest into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition, (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations (other than Contingent Indemnity Obligations) and the termination of the Commitments), (b) is redeemable at the option of the holder thereof (other than solely for Equity Interests which are not Disqualified Equity Interests and cash in lieu of fractional shares), in whole or in part, (c) provides for the scheduled payments of dividends or distributions in cash, or (d) is convertible into or exchangeable for (i) Indebtedness or (ii) any other Equity Interests that would constitute Disqualified Equity Interests, in each case of clauses (a) through (d), prior to the date that is twelve months after the Final Maturity Date; provided , that if such Equity Interest is issued pursuant to a plan for the benefit of employees of the Parent or any Subsidiaries or by any such plan to such employees, such Equity Interest shall not constitute a Disqualified Equity Interest solely because it may be required to be repurchased by the Parent or any Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of such employee’s termination, death or disability.
 
Dollar ,” “ Dollars ” and the symbol “ $ ” each means lawful money of the United States of America.
 
Domestic Subsidiary ” means any Subsidiary that is organized and existing under the laws of the United States or any state or commonwealth thereof or under the laws of the District of Columbia.
 
Effective Date ” has the meaning specified therefor in Section 5.01.
 
Effective Date Pro Rata Share ” means, with respect to a Lender’s obligation to make the Term Loans on the Effective Date, the percentage obtained by dividing (i) such Lender’s Effective Date Term Loan Commitment, by (ii) the Total Effective Date Term Loan Commitment.
 
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Effective Date Term Loan Commitment ” means, with respect to each Lender, the commitment of such Lender to make the Term Loans to the Borrowers on the Effective Date in the amount set forth in Schedule 1.01(A) hereto under the heading “Effective Date Term Loan Commitment”, as the same may be terminated or reduced from time to time in accordance with the terms of this Agreement.
 
Employee Plan ” means an employee benefit plan (other than a Multiemployer Plan) covered by Title IV of ERISA and maintained (or that was maintained at any time during the 6 calendar years preceding the date of any borrowing hereunder) for employees of any Loan Party or any of its ERISA Affiliates.
 
Environmental Actions ” means any complaint, summons, citation, notice, directive, order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter or other communication from any Person or Governmental Authority involving violations of Environmental Laws or Releases of Hazardous Materials (a) from any assets, properties or businesses owned or operated by any Loan Party or any of its Subsidiaries or any predecessor in interest; (b) from adjoining properties or businesses; or (c) onto any facilities which received Hazardous Materials generated by any Loan Party or any of its Subsidiaries or any predecessor in interest.
 
Environmental Laws ” means the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601, et   seq .), the Hazardous Materials Transportation Act (49 U.S.C. § 1801, et   seq .), the Resource Conservation and Recovery Act (42 U.S.C. § 6901, et   seq .), the Federal Clean Water Act (33 U.S.C. § 1251 et   seq .), the Clean Air Act (42 U.S.C. § 7401 et   seq .), the Toxic Substances Control Act (15 U.S.C. § 2601 et   seq .) and the Occupational Safety and Health Act (29 U.S.C. § 651 et   seq .), as such laws may be amended or otherwise modified from time to time, and any other Requirement of Law, permit, license or other binding determination of any Governmental Authority imposing liability or establishing standards of conduct for protection of the environment or other government restrictions relating to the protection of the environment or the Release, deposit or migration of any Hazardous Materials into the environment.
 
Environmental Liabilities and Costs ” means all liabilities, monetary obligations, Remedial Actions, losses, damages, punitive damages, consequential damages, treble damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts and consultants and costs of investigations and feasibility studies), fines, penalties, sanctions and interest incurred as a result of any claim or demand by any Governmental Authority or any third party, and which relate to any environmental condition or a Release of Hazardous Materials from or onto (a) any property presently or formerly owned by any Loan Party or any of its Subsidiaries or (b) any facility which received Hazardous Materials generated by any Loan Party or any of its Subsidiaries.
 
Environmental Lien ” means any Lien in favor of any Governmental Authority for Environmental Liabilities and Costs.
 
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Equity Interests ” means (a) all shares of capital stock (whether denominated as common stock or preferred stock), equity interests, beneficial, partnership or membership interests, joint venture interests, participations or other ownership or profit interests in or equivalents (regardless of how designated) of or in a Person (other than an individual), whether voting or non-voting and (b) all securities convertible into or exchangeable for any of the foregoing and all warrants, options or other rights to purchase, subscribe for or otherwise acquire any of the foregoing, whether or not presently convertible, exchangeable or exercisable; provided that any instrument evidencing Indebtedness convertible or exchangeable for Equity Interests shall not be deemed to be Equity Interests, unless and until any such instruments are so converted or exchanged.
 
Equity Issuance ” means either (a) the sale or issuance by any Loan Party or any of its Subsidiaries of any shares of its Equity Interests or (b) the receipt by the Parent of any cash capital contributions.
 
ERISA ” means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute of similar import, and regulations thereunder, in each case, as in effect from time to time. References to sections of ERISA shall be construed also to refer to any successor sections.
 
ERISA Affiliate ” means, with respect to any Person, any trade or business (whether or not incorporated) which is a member of a group of which such Person is a member and which would be deemed to be a “controlled group” within the meaning of Sections 414(b), (c), (m) and (o) of the Internal Revenue Code.
 
Event of Default ” has the meaning specified therefor in Section 9.01.
 
Excess Cash Flow ” means, with respect to any Person for any period, (a) Consolidated EBITDA of such Person and its Subsidiaries for such period, less (b) the sum of, without duplication, (i) all cash principal payments (excluding any principal payments made pursuant to Section 2.05(c)) on the Loans made during such period, and all cash principal payments on Indebtedness (other than Indebtedness incurred under this Agreement) of such Person or any of its Subsidiaries during such period to the extent such other Indebtedness is permitted to be incurred, and such payments are permitted to be made, under this Agreement (but, in the case of revolving loans, only to the extent that the revolving credit commitment in respect thereof is permanently reduced by the amount of such payments), (ii) all Consolidated Net Interest Expense to the extent paid or payable in cash during such period, (iii) the cash portion of Capital Expenditures made by such Person and its Subsidiaries during such period to the extent permitted to be made under this Agreement (excluding Capital Expenditures to the extent financed through the incurrence of Indebtedness or through an Equity Issuance) and (iv) all cash fees and expenses described in clause (b)(vi) of the definition of Consolidated EBITDA to the extent paid in cash during such period, and (v) income taxes paid in cash by such Person and its Subsidiaries for such period.
 
Exchange Act ” means the Securities Exchange Act of 1934, as amended.
 
Excluded Account ” means (a) any deposit account specifically and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of any Loan Party’s employees and (b) any non-U.S. deposit account.
 
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Excluded Equity Issuance ” means (a) in the event that the Parent or any of its Subsidiaries forms any Subsidiary in accordance with this Agreement, the issuance by such Subsidiary of Equity Interests to the Parent or such Subsidiary, as applicable, (b) the issuance of Equity Interests by the Parent to any Person that is an equity holder of the Parent prior to such issuance (an “ Equity Holder ”) so long as such Equity Holder did not acquire any Equity Interests of the Parent so as to become an Equity Holder concurrently with, or in contemplation of, the issuance of such Equity Interests to such Equity Holder, (c) the issuance of Equity Interests of the Parent to directors, officers and employees of the Parent and its Subsidiaries pursuant to employee stock option plans (or other employee incentive plans or other compensation arrangements) approved by the Board of Directors of the Parent, (d) the issuance of Equity Interests by the Parent to any Person in order to raise capital within the first 180 days after the date on which the final judgment is entered in respect of the Oracle Litigation described in clause (i) of the definition thereof, the proceeds of which shall be used (1) to pay any Oracle Litigation Expenses in excess of the Total Delayed Draw A Term Loan Commitment and (2) with respect to any remainder after paying such excess, for general corporate purposes of the Parent and its Subsidiaries, (e) any issuances of Equity Interests by the Parent to any Person after the Effective Date (other than any Equity Issuance described in any other clause of this definition of Excluded Equity Issuance) to the extent the Net Cash Proceeds of such Equity Issuances does not exceed $20,000,000, (f) the issuance of Equity Interests by a Subsidiary of the Parent to its parent or member in connection with the contribution by such parent or member to such Subsidiary of the proceeds of an issuance described in clauses (a) – (e) above, and (g) the issuance of Equity Interests by the Parent to any Secured Party or their successors or assigns.
 
Excluded Hartford Insurance Proceeds ” means, to the extent the final judgment entered in connection with the litigation described in clause (i) of the definition of Oracle Litigation is greater than $65,000,000, insurance proceeds actually received by the Borrowers from The Hartford Insurance in connection therewith in an amount equal to the result (if positive) of (a) the Total Hartford Insurance Proceeds minus (b) the Retained Hartford Insurance Proceeds.
 
Excluded Swap Obligation ” means, with respect to any Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the guarantee of such Guarantor of, or the grant by such Guarantor of a security interest to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason not to constitute an “eligible contract participant” as defined in the Commodity Exchange Act at the time the guarantee of such Guarantor becomes effective with respect to such related Swap Obligation.
 
Excluded Taxes ” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that otherwise are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.09, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.09(c) and (d) any U.S. federal withholding Taxes imposed under FATCA.
 
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Executive Order No. 13224 ” means the Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, as the same has been, or shall hereafter be, renewed, extended, amended or replaced.
 
Extraordinary Prepayments ” means, for any period of determination, the difference (if positive) between (i) long term deferred revenue of the Parent and its Subsidiaries for such period and (ii) 20% of total deferred revenue Parent and its Subsidiaries for such period.
 
Extraordinary Receipts ” means any cash received by the Parent or any of its Subsidiaries not in the ordinary course of business (and not consisting of proceeds described in Section 2.05(c)(i), (ii) or (iii) hereof), including, without limitation, (a) foreign, United States, state or local tax refunds, (b) pension plan reversions, (c) proceeds of insurance (other than to the extent such insurance proceeds are (i) immediately payable to a Person that is not the Parent or any of its Subsidiaries in accordance with applicable Requirements of Law or with Contractual Obligations entered into in the ordinary course of business, (ii) received by the Parent or any of its Subsidiaries as reimbursement for any out-of-pocket costs incurred or made by such Person prior to the receipt thereof directly related to the event resulting from the payment of such proceeds or (iii) received by the Parent or any of its Subsidiaries as reimbursement for any out-of-pocket costs and expenses incurred by the Parent or any of its Subsidiaries prior to the receipt thereof directly related to the litigation event resulting in the payment of such proceeds), (d) judgments, proceeds of settlements or other consideration of any kind in connection with any cause of action, (e) condemnation awards (and payments in lieu thereof), (f) indemnity payments (other than to the extent such indemnity payments are (i) immediately payable to a Person that is not an Affiliate of the Parent or any of its Subsidiaries or (ii) received by the Parent or any of its Subsidiaries as reimbursement for any costs previously incurred or any payment previously made by such Person) and (g) any purchase price adjustment received in connection with any purchase agreement.
 
Facility ” means any New Facility hereafter acquired by the Parent or any of its Subsidiaries, including, without limitation, the land on which each such facility is located, all buildings and other improvements thereon, and all fixtures located thereat or used in connection therewith.
 
FASB ASC ” means the Accounting Standards Codification of the Financial Accounting Standards Board.
 
FATCA ” means Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with) and any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code and any intergovernmental agreement (and related legislation or official interpretations thereof) implementing the foregoing.
 
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FCPA ” has the meaning specified therefor in Section 6.01(z).
 
Federal Funds Rate ” means, for any period, a fluctuating interest rate per annum equal to, for each day during such period, the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.
 
Fee Letter ” means the fee letter, dated as of the date hereof, among the Borrowers and the Origination Agent.
 
Final Maturity Date ” means June 24, 2020.
 
Financial Statements ” means (a) the audited consolidated balance sheet of the Parent and its Subsidiaries for the Fiscal Year ended December 31, 2014, and the related consolidated statement of operations, shareholders’ equity and cash flows for the Fiscal Year then ended, and (b) the unaudited consolidated balance sheet of the Parent and its Subsidiaries for the 5 months ended May 31, 2016, and the related consolidated statement of operations, shareholder’s equity and cash flows for the 5 months then ended.
 
Fiscal Year ” means the fiscal year of the Parent and its Subsidiaries ending on December 31 st (or the end of February pursuant to Section 7.01(k)) of each year.
 
Foreign Official ” has the meaning specified therefor in Section 6.01(z).
 
Foreign Subsidiary ” means any Subsidiary of the Parent that is not a Domestic Subsidiary; provided , that, for the purposes of Section 7.01(b) (and any corresponding requirements set forth in the Security Agreement or any other Loan Document), a Domestic Subsidiary (i) all or substantially of the assets of which consist of Equity Interests in (and/or intercompany obligations owed or treated as owed by) one or more Foreign Subsidiaries and/or Subsidiaries described in this clause (i) or (ii) which is owned directly or indirectly by a CFC, shall, in each case, constitute a “Foreign Subsidiary” for such purposes.
 
Funded Indebtedness ” means, with respect to any Person at any date, all Indebtedness of such Person, determined on a consolidated basis in accordance with GAAP, which by its terms matures more than one year after the date of calculation, and any such Indebtedness maturing within one year from such date which is renewable or extendable at the option of such Person to a date more than one year from such date, including, in any event, with respect to the Parent and its Subsidiaries, the Loans.
 
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GAAP ” means generally accepted accounting principles in effect from time to time in the United States, applied on a consistent basis, provided that for the purpose of Section 7.03 hereof and the definitions used therein, “GAAP” shall mean generally accepted accounting principles in effect on the date hereof and consistent with those used in the preparation of the Financial Statements, provided, further, that if there occurs after the date of this Agreement any change in GAAP that affects in any respect the calculation of any covenant contained in Section 7.03 hereof, the Origination Agent and the Administrative Borrower shall negotiate in good faith amendments to the provisions of this Agreement that relate to the calculation of such covenant with the intent of having the respective positions of the Lenders and the Borrowers after such change in GAAP conform as nearly as possible to their respective positions as of the date of this Agreement and, until any such amendments have been agreed upon, the covenants in Section 7.03 hereof shall be calculated as if no such change in GAAP has occurred.
 
Governing Documents ” means, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of formation or organization, and the operating agreement; (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture, declaration or other applicable agreement or documentation evidencing or otherwise relating to its formation or organization, governance and capitalization; and (d) with respect to any of the entities described above, any other agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization.
 
Governmental Authority ” means any nation or government, any foreign, Federal, state, territory, provincial, city, town, municipality, county, local or other political subdivision thereof or thereto and any department, commission, board, bureau, instrumentality, agency or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).
 
Gross Margin ” means, for any Person with respect to any period of determination, (i) the difference between the total revenue and the cost of goods sold (each determined in accordance with GAAP) of such Person and its Subsidiaries divided by (ii) total revenue of such Person and its Subsidiaries, expressed as a percentage.
 
Guaranteed Obligations ” has the meaning specified therefor in Section 11.01.
 
Guarantor ” means each Person which guarantees, pursuant to Article XI, Section 7.01(b) or otherwise, all or any part of the Obligations.
 
Guaranty ” means (a) the guaranty of each Guarantor party hereto contained in Article XI hereof and (b) each other guaranty, in form and substance reasonably satisfactory to the Origination Agent and the Collateral Agent, made by any other Guarantor in favor of the Collateral Agent for the benefit of the Agents and the Lenders guaranteeing all or part of the Obligations.
 
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Hazardous Material ” means (a) any element, compound or chemical that is defined, listed or otherwise classified as a contaminant, pollutant, toxic pollutant, toxic or hazardous substance, extremely hazardous substance or chemical, hazardous waste, special waste, or solid waste under Environmental Laws or that is likely to cause immediately, or at some future time, harm to or have an adverse effect on, the environment or risk to human health or safety, including, without limitation, any pollutant, contaminant, waste, hazardous waste, toxic substance or dangerous good which is defined or identified in any Environmental Law and which is present in the environment in such quantity or state that it contravenes any Environmental Law; (b) petroleum and its refined products; (c) polychlorinated biphenyls; (d) any substance exhibiting a hazardous waste characteristic, including, without limitation, corrosivity, ignitability, toxicity or reactivity as well as any radioactive or explosive materials; and (e) any raw materials, building components (including, without limitation, asbestos-containing materials) and manufactured products containing hazardous substances listed or classified as such under Environmental Laws.
 
Hedging Agreement ” means any interest rate, foreign currency, commodity or equity swap, collar, cap, floor or forward rate agreement, or other agreement or arrangement designed to protect against fluctuations in interest rates or currency, commodity or equity values (including, without limitation, any option with respect to any of the foregoing and any combination of the foregoing agreements or arrangements), and any confirmation executed in connection with any such agreement or arrangement.
 
Highest Lawful Rate ” means, with respect to any Agent or any Lender, the maximum non-usurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged or received on the Obligations under laws applicable to such Agent or such Lender which are currently in effect or, to the extent allowed by law, under such applicable laws which may hereafter be in effect and which allow a higher maximum non-usurious interest rate than applicable laws now allow.
 
Holdout Lender ” has the meaning specified therefor in Section 12.02(b).
 
Immaterial Subsidiary ” means any Subsidiary that did not, as of the last day of the most recently ended fiscal quarter of the Parent for which financial statements have been (or were required to be) delivered pursuant to Section 7.01(a)(ii), have revenues representing in excess of 3.00% of total revenues of the Parent and its Subsidiaries on a consolidated basis as of such date; provided , that the total revenues of all Immaterial Subsidiaries shall not, in the aggregate, exceed 5.00% of total revenues of the Parent and its Subsidiaries on a consolidated basis as of such date.
 
Indebtedness ” means, with respect to any Person, without duplication, (a) all indebtedness of such Person for borrowed money; (b) all obligations of such Person for the deferred purchase price of property or services (other than trade payables or other accounts payable incurred in the ordinary course of such Person’s business and not outstanding for more than (x) 90 days after the date such payable was created or (y) 60 days after the date such payable was due, and any earn-out, purchase price adjustment or similar obligation until such obligation appears in the liabilities section of the balance sheet of such Person); (c) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments or upon which interest payments are customarily made; (d) all reimbursement, payment or other obligations and liabilities of such Person created or arising under any conditional sales or other title retention agreement with respect to property used and/or acquired by such Person, even though the rights and remedies of the lessor, seller and/or lender thereunder may be limited to repossession or sale of such property; (e) all Capitalized Lease Obligations of such Person; (f) all obligations and liabilities, contingent or otherwise, of such Person, in respect of letters of credit, acceptances and similar facilities; (g) all obligations and liabilities, calculated on a basis reasonably satisfactory to the Origination Agent and in accordance with generally accepted practice, of such Person under Hedging Agreements; (h) all monetary obligations under any receivables factoring, receivable sales or similar transactions and all monetary obligations under any synthetic lease, tax ownership/operating lease, off-balance sheet financing or similar financing; (i) all Contingent Obligations; (j) all Disqualified Equity Interests; (k) all amounts recorded by such Person and its Subsidiaries as long-term deferred revenue in accordance with GAAP; and (l) all obligations referred to in clauses (a) through (k) of this definition of another Person secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) a Lien upon property owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness. The Indebtedness of any Person shall include the Indebtedness of any partnership of or joint venture in which such Person is a general partner or a joint venturer. The amount of any net obligation under any Hedging Obligation on any date shall be deemed to be the Swap Termination Value thereof as of such date.
 
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Indemnified Matters ” has the meaning specified therefor in Section 12.15.
 
Indemnified Taxes ” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation any Loan Party under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.
 
Indemnitees ” has the meaning specified therefor in Section 12.15.
 
Ineligible Assignee ” means any Person listed on Schedule 1.01(B) attached hereto.
 
Insolvency Proceeding ” means any proceeding commenced by or against any Person under any provision of any Debtor Relief Law.
 
Insurance Loan ” has the meaning specified therefor in clause (l) of the definition of Permitted Indebtedness.
 
Intellectual Property ” has the meaning specified therefor in the Security Agreement.
 
Intellectual Property Contracts ” means all agreements concerning Intellectual Property, including without limitation license agreements, technology consulting agreements, confidentiality agreements, co-existence agreements, consent agreements and non-assertion agreements.
 
Intercompany Subordination Agreement ” means an Intercompany Subordination Agreement made by the Parent and its Subsidiaries in favor of the Collateral Agent for the benefit of the Secured Parties, substantially in the form of Exhibit G.
 
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Internal Revenue Code ” means the Internal Revenue Code of 1986, as amended (or any successor statute thereto).
 
Inventory ” means, with respect to any Person, all goods and merchandise of such Person leased or held for sale or lease by such Person, including, without limitation, all raw materials, work-in-process and finished goods, and all packaging, supplies and materials of every nature used or usable in connection with the shipping, storing, advertising or sale of such goods and merchandise, whether now owned or hereafter acquired, and all such other property the sale or other disposition of which would give rise to an Account or cash.
 
Investment ” means, with respect to any Person, (a) any investment by such Person in any other Person (including Affiliates) in the form of loans, guarantees, advances or other extensions of credit (excluding Accounts arising in the ordinary course of business), capital contributions or acquisitions of Indebtedness (including, any bonds, notes, debentures or other debt securities), Equity Interests, or all or substantially all of the assets of such other Person (or of any division or business line of such other Person), (b) the purchase or ownership of any futures contract or liability for the purchase or sale of currency or other commodities at a future date in the nature of a futures contract, or (c) any investment in any other items that are or would be classified as investments on a balance sheet of such Person prepared in accordance with GAAP. For the avoidance of doubt, intercompany payments to cover accrued expenses on a cost-plus or similar basis in the ordinary course of business consistent with past practices shall not constitute “Investments”.
 
Joinder Agreement ” means a Joinder Agreement, substantially in the form of Exhibit A, duly executed by a Subsidiary of a Loan Party made a party hereto pursuant to Section 7.01(b).
 
Lease ” means any lease of real property to which any Loan Party or any of its Subsidiaries is a party as lessor or lessee.
 
Lender ” has the meaning specified therefor in the preamble hereto.
 
Leverage Ratio ” means, with respect to any Person and its Subsidiaries for any period, the ratio of (a) the result of (x) all Consolidated Total Debt of such Person and its Subsidiaries as of the end of such period minus (y) all Qualified Cash of such Person and its Subsidiaries as of the end of such period, to (b) Consolidated EBITDA of such Person and its Subsidiaries for such period.
 
Lien ” means any mortgage, deed of trust, pledge, lien (statutory or otherwise), security interest, charge or other encumbrance or security or preferential arrangement of any nature, including, without limitation, any conditional sale or title retention arrangement, any Capitalized Lease and any assignment, deposit arrangement or financing lease intended as, or having the effect of, security.
 
Liquidity ” means, at any date of determination, Qualified Cash of the Parent and its Subsidiaries.
 
Loan ” means the Term Loan.
 
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Loan Account ” means an account maintained hereunder by the Administrative Agent on its books of account at the Payment Office, and with respect to the Borrowers, in which the Borrowers will be charged with all Loans made to, and all other Obligations incurred by, the Borrowers.
 
Loan Document ” means this Agreement, any Control Agreement, the Disbursement Letter, the Agent Fee Letter, the Commitment Fee Letter, the Cooperation Agreement, the Fee Letter, any Guaranty, the Intercompany Subordination Agreement, any Joinder Agreement, any Mortgage, any Security Agreement, any landlord waiver, any Collateral Access Agreement, any Perfection Certificate and any other agreement, instrument, certificate, report and other document otherwise evidencing or securing any Loan or any other Obligation.
 
Loan Party ” means any Borrower and any Guarantor. For the avoidance of doubt, the Cooperation Party is not a Loan Party.
 
Make-Whole Amount ” means, as of any date of determination, an amount equal to (i) the difference between (A) the aggregate amount of interest (including, without limitation, interest payable in cash, in kind or deferred) which would have otherwise been payable on the principal amount of the Loan paid on such date (or in the case of an Applicable Premium Trigger Event specified in clauses (b), (c), (d) or (e) of the definition thereof, the principal amount of the Loan outstanding on such date and the aggregate amount of Delayed Draw B Unused Line Fees (assuming for purposes of calculating the Delayed Draw B Unused Line Fees that the Total Delayed Draw B Term Loan Commitment is equal to the amount of the Total Delayed Draw B Term Loan Commitment immediately prior to the occurrence of the Applicable Premium Trigger Event) which would have otherwise accrued), from the date of the occurrence of the Applicable Premium Trigger Event until the thirty-six (36) month anniversary of the Effective Date, minus (B) the aggregate amount of interest the Lenders would earn if the principal amount of the Loan paid on such date (or in the case of an Applicable Premium Trigger Event specified in clauses (b), (c), (d) or (e) of the definition thereof, the principal amount of the Loan outstanding on such date and the aggregate amount of Delayed Draw B Unused Line Fees (assuming for purposes of calculating the Delayed Draw B Unused Line Fees that the Total Delayed Draw B Term Loan Commitment is equal to the amount of the Total Delayed Draw B Term Loan Commitment immediately prior to the occurrence of the Applicable Premium Trigger Event)), were reinvested for the period from the date of the occurrence of the Applicable Premium Trigger Event until the thirty-six (36) month anniversary of the Effective Date at the Treasury Rate plus (ii) an amount equal to the Applicable Premium that would otherwise be payable as if such Applicable Premium Trigger Event had occurred on the day after the thirty-six (36) month anniversary of the Effective Date.
 
Marketing Return Ratio ” means, with respect to the Parent and its Subsidiaries for any period, the ratio of (a) Total New Customer Invoicing for such period to (b) the Total Sales and Marketing Expense for such period.
 
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Material Adverse Effect ” means a material adverse effect on (a) the operations, assets, liabilities or financial condition of the Loan Parties and their Subsidiaries taken as a whole, (b) the ability of the Loan Parties and their Subsidiaries taken as a whole to perform any of their obligations under any Loan Document, (c) the legality, validity or enforceability against the Loan Parties of this Agreement or any other Loan Document, (d) the rights and remedies of any Agent or any Lender under any Loan Document, or (e) the validity or perfection of a first priority Lien (subject to Permitted Liens) in favor of the Collateral Agent for the benefit of the Agents and the Lenders on any Collateral, except to the extent permitted by the terms hereof or any other Loan Document and except to the extent that any such loss of perfection or priority results solely from the limitations of foreign laws, rules and regulations as they apply to pledges of Equity Interests in Foreign Subsidiaries or the application thereof, or from the failure of the Collateral Agent to maintain possession of certificates actually delivered to it representing securities pledged under the Security Agreement or other Loan Document or to file Uniform Commercial Code continuation statements and except to the extent, in the case of a Mortgage, that such loss is covered by a lender’s title insurance policy and the Collateral Agent (acting at the direction of the Required Lenders) shall be reasonably satisfied with the credit of such insurer.
 
Material Contract ” means, with respect to any Loan Party, (a) each contract or agreement to which such Loan Party or any of its Subsidiaries is a party involving aggregate consideration payable to or by such Loan Party or such Subsidiary of an amount more than 10% of the consolidated total revenue of the Parent and its Subsidiaries in any Fiscal Year ( provided , that, purchase orders in the ordinary course of the business of such Loan Party or such Subsidiary and contracts that by their terms may be terminated by such Person or Subsidiary in the ordinary course of its business upon less than 60 days’ notice without penalty or premium shall not constitute “Material Contracts” hereunder) and (b) any other sales or vendor contract as to which the breach, nonperformance, cancellation or failure to renew by any party thereto could reasonably be expected to have a Material Adverse Effect.
 
Monthly Cash Disbursement Report ” has the meaning specified therefor in Section 8.01(c).
 
Moody’s ” means Moody’s Investors Service, Inc. and any successor thereto.
 
Mortgage ” means a mortgage, deed of trust or deed to secure debt, in form and substance reasonably satisfactory to the Origination Agent and the Collateral Agent, made by a Loan Party in favor of the Collateral Agent for the benefit of the Secured Parties, securing the Obligations and delivered to the Collateral Agent.
 
Multiemployer Plan ” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which any Loan Party or any of its ERISA Affiliates has contributed, or has been obligated to contribute, to at any time during the preceding 6 years.
 
Net Cash Proceeds ” means, with respect to any issuance or incurrence of any Indebtedness, any Equity Issuance, any Disposition or the receipt of any Extraordinary Receipts by any Person or any of its Subsidiaries, the aggregate amount of cash received (directly or indirectly) from time to time (whether as initial consideration or through the payment or disposition of deferred consideration) by or on behalf of such Person or such Subsidiary, in connection therewith after deducting therefrom only (a) in the case of any Disposition or the receipt of any Extraordinary Receipts consisting of insurance proceeds or condemnation awards, the amount of any Indebtedness secured by any Permitted Lien on any asset (other than Indebtedness assumed by the purchaser of such asset) which is required to be, and is, repaid in connection therewith (other than Indebtedness under this Agreement), (b) reasonable expenses related thereto (including without limitation underwriting discounts and commissions) incurred by such Person or such Subsidiary in connection therewith, (c) transfer taxes paid or to be paid to any taxing authorities by such Person or such Subsidiary in connection therewith, (d)  income or other taxes paid or to be paid in connection therewith (after taking into account any tax credits or deductions and any tax sharing arrangements), and (e) any funded escrow established pursuant to the documents evidencing any such Disposition to secure any indemnification obligations or adjustments to the purchase price associated with any such Disposition (provided that to the extent that any amounts are released from such escrow to the Parent or any other Obligor, such amounts net of any related expenses shall constitute Net Cash Proceeds), in each case, to the extent, but only to the extent, that the amounts so deducted are (i) (except in the case of any such funded escrow) actually paid to a Person that, except in the case of reasonable out-of-pocket expenses, is not an Affiliate of such Person or any of its Subsidiaries and (ii) properly attributable to such transaction or to the asset that is the subject thereof.
 
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New Facility ” has the meaning specified therefor in Section 7.01(m).
 
New Lending Office ” has the meaning specified therefor in Section 2.09(c).
 
Non-Cancellable Contract ” means, as of any date of determination, a contract between a Borrower and its customer providing for the rendering of services by a Borrower to such customer for a period of at least twelve months, and such contract may not be terminated by such customer without cause during such twelve-month period.
 
Non-Cancellable Contract Value ” means, as of any date of determination, the aggregate amount anticipated to be billed to customers of the Borrowers (without any rights of set-off or other deduction) during the following twelve-month period pursuant to all Non-Cancellable Contracts less any such amounts to be billed to customers of the Borrowers that have any Accounts Receivable owing to the Parent and its Subsidiaries more than 90 days past due as of such date of determination.
 
Non-U.S. Lender ” has the meaning specified therefor in Section 2.09(c).
 
Notice of Borrowing ” has the meaning specified therefor in Section 2.02(a).
 
Obligations ” means all present and future indebtedness, obligations, and liabilities (including, without limitation, the Term Loan PIK Amount) of each Loan Party to the Agents and the Lenders arising under or in connection with this Agreement or any other Loan Document, whether or not the right of payment in respect of such claim is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, disputed, undisputed, legal, equitable, secured, unsecured, and whether or not such claim is discharged, stayed or otherwise affected by any proceeding referred to in Section 9.01. Without limiting the generality of the foregoing, the Obligations of each Loan Party under the Loan Documents include (a) the obligation (irrespective of whether a claim therefor is allowed in an Insolvency Proceeding) to pay principal, interest (including, without limitation, the Term Loan PIK Amount), charges, expenses, fees, premiums (including the Applicable Premium), attorneys’ fees and disbursements, indemnities and other amounts payable by such Person under the Loan Documents, and (b) the obligation of such Person to reimburse any amount in respect of any of the foregoing that any Agent or any Lender (in its sole discretion) may elect to pay or advance on behalf of such Person. Notwithstanding any of the foregoing, Obligations shall not include any Excluded Swap Obligations.
 
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OFAC Sanctions Programs ” means (a) the Requirements of Law and Executive Orders administered by OFAC, including, without limitation, Executive Order No. 13224, and (b) the list of Specially Designated Nationals and Blocked Persons administered by OFAC, in each case, as renewed, extended, amended, or replaced.
 
Oracle Litigation ” means the cases titled (i) Oracle USA, Inc., et al. v. Rimini Street, Inc. , Case No. 2:10-cv-00106-LRH-PAL in the United States District Court for Nevada and (ii) Rimini Street, Inc. v. Oracle International Corp. , Case No. 2:14-cv-0699 in the United States District Court for Nevada, and, in each case of clauses (i) and (ii), any derivative actions, suits and proceedings related thereto.
 
Oracle Litigation Computer Access Damages ” means any damages the Parent or Seth Ravin may be required to pay of the $14.427 million awarded by the jury in response to Questions 17–20 (as limited to non-duplicative damages by Questions 21–22) of the jury verdict form, ECF filing number 896, in Oracle USA, Inc. v. Rimini Street, Inc. , No. 10-cv-0106-LRH-PAL (D. Nev.).
 
Oracle Litigation Expenses ” means the final judgment amount rendered in the Oracle Litigation described in clause (i) of the definition thereof projected to be paid by the Parent and its Subsidiaries.
 
Oracle Litigation Fees and Costs ” means any attorneys’ fees or court costs that the Parent or Seth Ravin may be required to pay upon final resolution of Oracle’s Motion for Attorney Fees and Costs, ECF filing number 917, in Oracle USA, Inc. v. Rimini Street, Inc. , No. 10-cv-0106-LRH-PAL (D. Nev.).
 
Oracle Litigation Interest ” means any prejudgment interest that the Parent or Seth Ravin may be required to pay upon final resolution of Oracle’s Motion for Prejudgment Interest, ECF filing number 910, in Oracle USA, Inc. v. Rimini Street, Inc. , No. 10-cv-0106-LRH-PAL (D. Nev.).
 
Origination Agent ” has the meaning specified therefor in the preamble hereto.
 
Origination Agent Advances ” has the meaning specified therefor in Section 10.08(a).
 
Other Connection Taxes ” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising solely from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).
 
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Other Taxes ” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment.
 
Parent ” has the meaning specified therefor in the preamble hereto.
 
Participant Register ” has the meaning specified therefor in Section 12.07(h).
 
Payment Office ” means the Administrative Agent’s office located at 225 W. Washington Street, Suite 2100, Chicago, Illinois 60606, or at such other office or offices of the Administrative Agent as may be designated in writing from time to time by the Administrative Agent to the Collateral Agent and the Administrative Borrower.
 
PBGC ” means the Pension Benefit Guaranty Corporation established pursuant to Section 4002 of ERISA or any successor thereto.
 
Perfection Certificate ” means a certificate in substantially the form of Exhibit D executed and delivered by the Parent to the Origination Agent.
 
Permitted Acquisition ” means any Acquisition by a Loan Party or any wholly-owned Subsidiary of a Loan Party to the extent that each of the following conditions shall have been satisfied:
 
(a)                no Default or Event of Default shall have occurred and be continuing or would result from the consummation of the proposed Acquisition;
 
(b)               to the extent the Acquisition will be financed in whole or in part with the proceeds of any Loan, the conditions set forth in Section 5.02 shall have been satisfied;
 
(c)                the Borrowers shall have furnished to the Agents at least 10 Business Days prior to the consummation of such Acquisition (i) an executed term sheet and/or commitment letter (setting forth in reasonable detail the terms and conditions of such Acquisition) and, at the request of any Agent, such other information and documents that any Agent may request, including, without limitation, executed counterparts of the respective material agreements, instruments or other documents pursuant to which such Acquisition is to be consummated (including, without limitation, any related management, non-compete, employment, option or other material agreements), any schedules to such material agreements, instruments or other documents and all other material ancillary agreements, instruments or other documents to be executed or delivered in connection therewith, (ii) pro forma financial statements of the Parent and its Subsidiaries after the consummation of such Acquisition, (iii) a certificate of the chief financial officer of the Parent, demonstrating on a pro forma basis compliance, as at the end of the most recently ended fiscal quarter for which internally prepared financial statements are available, with all covenants set forth in Section 7.03 hereof after the consummation of such Acquisition, and (iv) copies of such other agreements, instruments or other documents as any Agent shall reasonably request;
 
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(d)               the agreements, instruments and other documents referred to in paragraph (c) above shall provide that (i) neither the Loan Parties nor any of their Subsidiaries shall, in connection with such Acquisition, assume or remain liable in respect of any Indebtedness of the Seller or Sellers, or other obligation of the Seller or Sellers (except for obligations incurred in the ordinary course of business in operating the property so acquired and necessary or desirable to the continued operation of such property and except for Permitted Indebtedness), and (ii) all property to be so acquired in connection with such Acquisition shall be free and clear of any and all Liens, except for Permitted Liens (and if any such property is subject to any Lien not permitted by this clause (ii) then concurrently with such Acquisition such Lien shall be released);
 
(e)                such Acquisition shall be effected in such a manner so that the acquired assets or Equity Interests are owned either by a Loan Party or a wholly-owned Subsidiary of a Loan Party and, if effected by merger or consolidation involving a Loan Party, such Loan Party shall be the continuing or surviving Person;
 
(f)                the Parent and its Subsidiaries shall have Liquidity in an amount equal to or greater than $20,000,000 immediately after giving effect to the consummation of the proposed Acquisition;
 
(g)               the assets being acquired or the Person whose Equity Interests are being acquired did not have negative Consolidated EBITDA during the 12 consecutive month period most recently concluded prior to the date of the proposed Acquisition;
 
(h)               the assets being acquired (other than a de minimis amount of assets in relation to the Loan Parties’ and their Subsidiaries’ total assets), or the Person whose Equity Interests are being acquired, are useful in or engaged in, as applicable, the business of the Loan Parties and their Subsidiaries or a business reasonably related thereto;
 
(i)                 the assets being acquired (other than a de minimis amount of assets in relation to the assets being acquired) are located within the United States or the Person whose Equity Interests are being acquired is organized in a jurisdiction located within the United States;
 
(j)                 such Acquisition shall be consensual and shall have been approved by the board of directors of the Person whose Equity Interests or assets are proposed to be acquired and shall not have been preceded by an unsolicited tender offer for such Equity Interests by, or proxy contest initiated by, Parent or any of its Subsidiaries or an Affiliate thereof;
 
(k)               any such Subsidiary (and its equityholders) shall execute and deliver the agreements, instruments and other documents required by Section 7.01(b) on or prior to the date of the consummation of such Acquisition; and
 
(l)                 the Purchase Price payable in cash in respect of (i) any single Acquisition or series of related Acquisitions shall not exceed $5,000,000 in the aggregate and (ii) all Acquisitions (including the proposed Acquisition) shall not exceed in the aggregate during the term of this Agreement the sum of (x) $5,000,000 plus (y) the aggregate amount of Term Loan proceeds borrowed pursuant to Section 5.03 and used to consummate a Permitted Acquisition.
 
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Permitted Disposition ” means:
 
(a)                sale of Inventory in the ordinary course of business;
 
(b)               Dispositions of cash and Cash Equivalents;
 
(c)                licensing or sublicensing, on a non-exclusive basis, Intellectual Property rights in the ordinary course of business;
 
(d)               leasing or subleasing assets in the ordinary course of business;
 
(e)                (i) the lapse of Registered Intellectual Property of the Parent and its Subsidiaries to the extent not economically desirable in the conduct of their business or (ii) the abandonment of Intellectual Property rights in the ordinary course of business so long as (in each case under clauses (i) and (ii)), (A) with respect to copyrights, such copyrights are not material revenue generating copyrights, and (B) such lapse is not materially adverse to the interests of the Secured Parties;
 
(f)                any involuntary loss, damage or destruction of property;
 
(g)               any involuntary condemnation, seizure or taking, by exercise of the power of eminent domain or otherwise, or confiscation or requisition of use of property;
 
(h)               so long as no Event of Default has occurred and is continuing or would result therefrom, transfers of assets (i) from the Parent or any of its Subsidiaries (other than the Borrowers) to a Loan Party, and (ii) from any Subsidiary of the Parent that is not a Loan Party to any other Subsidiary of the Parent;
 
(i)                 to the extent constituting mergers, consolidations and liquidations permitted by Section 7.02, Permitted Restricted Payments, Permitted Liens, Permitted Investments and payments of Permitted Indebtedness;
 
(j)                 the unwinding of any Hedging Agreement in accordance with its terms;
 
(k)               terminations of leases, subleases, licenses and sublicenses in the ordinary course of business;
 
(l)                 Dispositions or discounts without recourse of accounts receivable in connection with the compromise or collection thereof, not as part of a financing transaction, and in an aggregate amount not exceeding 2.00% of gross accounts receivable of the Parent and its Subsidiaries in any Fiscal Year;
 
(m)             Disposition of surplus, obsolete or worn-out equipment in the ordinary course of business; and
 
(n)               Disposition of property or assets not otherwise permitted in clauses (a) through (l) above for cash in an aggregate amount not less than the fair market value of such property or assets;
 
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provided that the Net Cash Proceeds of such Dispositions (including the proposed Disposition) (1) in the case of clauses (m) and (n) above, do not exceed $500,000 in the aggregate in any Fiscal Year and (2) in all cases, are paid to the Administrative Agent for the benefit of the Agents and the Lenders pursuant to the terms of Section 2.05(c)(i) or applied as provided in Section 2.05(c)(v).
 
Permitted Holder ” means Seth Ravin, SAR Trust U/A/D August 30, 2005, Adams Street Partners and Thomas Shay or any Controlled Investment Affiliate thereof.
 
Permitted Indebtedness ” means:
 
(a)                any Indebtedness owing to any Agent or any Lender under this Agreement and the other Loan Documents;
 
(b)               any other Indebtedness listed on Schedule 7.02(b), and any Permitted Refinancing Indebtedness in respect of such Indebtedness;
 
(c)                Permitted Purchase Money Indebtedness and any Permitted Refinancing Indebtedness in respect of such Indebtedness;
 
(d)               Permitted Intercompany Investments;
 
(e)                Indebtedness incurred in the ordinary course of business under performance, surety, statutory, and appeal bonds;
 
(f)                Indebtedness owed to any Person providing property, casualty, liability, or other insurance to the Loan Parties, so long as the amount of such Indebtedness is not in excess of the amount of the unpaid cost of, and shall be incurred only to defer the cost of, such insurance for the period in which such Indebtedness is incurred and such Indebtedness is outstanding only during such period;
 
(g)               the incurrence by any Loan Party of Indebtedness under Hedging Agreements that are incurred for the bona fide purpose of hedging the interest rate, commodity, or foreign currency risks associated with such Loan Party’s operations and not for speculative purposes;
 
(h)               Indebtedness incurred in respect of credit cards, credit card processing services, debit cards, stored value cards, purchase cards (including so-called “procurement cards” or “P-cards”) or other similar cash management services, in each case, incurred in the ordinary course of business;
 
(i)                 contingent liabilities in respect of any indemnification obligation, adjustment of purchase price, non-compete, or similar obligation of any Loan Party incurred in connection with the consummation of one or more Permitted Acquisitions;
 
(j)                 Indebtedness incurred by Foreign Subsidiaries (without recourse to any Loan Parties) in an aggregate amount not to exceed $1,000,000 at any time outstanding;
 
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(k)               Indebtedness owing by the Parent or any of its Subsidiaries described in clause (k) of the definition of Indebtedness, in an aggregate outstanding principal amount not to exceed 18% of the aggregate total deferred revenue recorded for the Parent and its Subsidiaries on a consolidated basis at any applicable month-end;
 
(l)                 Indebtedness owing by the Parent or any of its Subsidiaries to The Hartford Insurance in an aggregate principal amount not to exceed $5,000,000 (the “ Insurance Loan ”); provided , such Indebtedness may only be incurred so long as (i) both immediately before and immediately after the incurrence thereof, no Event of Default has occurred and is continuing or would result therefrom, (ii) such Indebtedness is subordinated on terms and conditions satisfactory to the Origination Agent and (iii) the amount of the Oracle Litigation Interest is in excess of $7,500,000 and/or the amount of the Oracle Litigation Fees and Costs is in excess of $50,000,000.
 
(m)             other unsecured Indebtedness of the Loan Parties and their Subsidiaries in an aggregate principal amount not to exceed $500,000 at any time outstanding.
 
Permitted Intercompany Investments ” means Investments made by (a) a Loan Party to or in another Loan Party (other than the Parent), (b) a Subsidiary that is not a Loan Party to or in another Subsidiary that is not a Loan Party, (c) a Subsidiary that is not a Loan Party to or in a Loan Party, so long as, in the case of a loan or advance, the parties thereto are party to the Intercompany Subordination Agreement, and (d) a Loan Party to or in a Subsidiary that is not a Loan Party so long as (i) the aggregate amount of all such Investments made by the Loan Parties to or in Subsidiaries that are not Loan Parties does not exceed $1,500,000 during the term of this Agreement and (ii) no Default or Event of Default has occurred and is continuing either immediately before or immediately after giving effect to such Investment.
 
Permitted Investments ” means:
 
(a)                Investments in cash and Cash Equivalents;
 
(b)               Investments in negotiable instruments deposited or to be deposited for collection in the ordinary course of business;
 
(c)                advances made in connection with trade credit or the purchases of goods or services in the ordinary course of business;
 
(d)               Investments received in settlement of amounts due to any Loan Party or any of its Subsidiaries effected in the ordinary course of business or owing to any Loan Party or any of its Subsidiaries as a result of Insolvency Proceedings involving an Account Debtor or upon the foreclosure or enforcement of any Lien in favor of a Loan Party or its Subsidiaries;
 
(e)                Investments existing on the date hereof, as set forth on Schedule 7.02(e) hereto, but not any increase in the amount thereof as set forth in such Schedule or any other modification of the terms thereof;
 
(f)                Permitted Intercompany Investments;
 
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(g)               (i) Permitted Acquisitions and (ii) Investments consisting of Liens, Indebtedness, Dispositions and Restricted Payments expressly permitted under Section 7.02;
 
(h)               Investments in Hedging Agreements permitted under Section 7.02;
 
(i)                 Investments consisting of licensing (on a non-exclusive basis) of Intellectual Property pursuant to joint marketing arrangements with other Persons;
 
(j)                 Investments to the extent that payment for such Investments is made solely with Equity Issuances (other than Disqualified Equity Issuances) of the Parent;
 
(k)               Loans or advances to officers, directors, employees and consultants of any Loan Party and any Subsidiary (i) for reasonable business-related travel, entertainment, relocation and analogous ordinary business purposes, and (ii) in connection with such Person’s purchase of Equity Interests of the Parent, in the case of subclauses (i) and (ii) above, in an aggregate amount not exceeding $100,000 at any time outstanding; and
 
(l)                 so long as no Event of Default has occurred and is continuing or would result therefrom at the time such Investment is made, any other Investments in an aggregate amount not to exceed $250,000 at any time outstanding.
 
Permitted Liens ” means:
 
(a)                Liens securing the Obligations;
 
(b)               Liens for taxes, assessments and governmental charges the payment of which is not required under Section 7.01(c)(ii);
 
(c)                Liens imposed by law, such as carriers’, warehousemen’s, mechanics’, materialmen’s and other similar Liens arising in the ordinary course of business and securing obligations (other than Indebtedness for borrowed money) that are not overdue by more than 30 days or are being contested in good faith and by appropriate proceedings promptly initiated and diligently conducted, and a reserve or other appropriate provision, if any, as shall be required by GAAP shall have been made therefor;
 
(d)               Liens described on Schedule 7.02(a), provided that any such Lien shall only secure the Indebtedness that it secures on the Effective Date and any Permitted Refinancing Indebtedness in respect thereof;
 
(e)                purchase money Liens on equipment acquired or held by any Loan Party or any of its Subsidiaries in the ordinary course of its business to secure Permitted Purchase Money Indebtedness so long as such Lien only (i) attaches to such property and (ii) secures the Indebtedness that was incurred to acquire such property or any Permitted Refinancing Indebtedness in respect thereof;
 
(f)                deposits and pledges of cash securing (i) obligations incurred in respect of workers’ compensation, unemployment insurance or other forms of governmental insurance or benefits, (ii) the performance of bids, tenders, leases, contracts (other than for the payment of money) and statutory obligations or (iii) obligations on surety or appeal bonds, but only to the extent such deposits or pledges are made or otherwise arise in the ordinary course of business and secure obligations not past due;
 
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(g)               with respect to any Facility, easements, zoning restrictions and similar encumbrances on real property and minor irregularities in the title thereto that do not (i) secure obligations for the payment of money or (ii) materially impair the value of such property or its use by any Loan Party or any of its Subsidiaries in the normal conduct of such Person’s business;
 
(h)               Liens of landlords and mortgagees of landlords (i) arising by statute or under any lease or related Contractual Obligation entered into in the ordinary course of business, (ii) on fixtures and movable tangible property located on the real property leased or subleased from such landlord, or (iii) for amounts not yet due or that are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves or other appropriate provisions are maintained on the books of such Person in accordance with GAAP;
 
(i)                 the title and interest of a lessor or sublessor in and to personal property leased or subleased (other than through a Capitalized Lease), in each case extending only to such personal property;
 
(j)                 non-exclusive licenses of Intellectual Property rights in the ordinary course of business;
 
(k)               judgment liens (other than for the payment of taxes, assessments or other governmental charges) securing judgments and other proceedings not constituting an Event of Default under Section 9.01(j);
 
(l)                 rights of set-off or bankers’ liens upon deposits of cash in favor of banks or other depository institutions, solely to the extent incurred in connection with the maintenance of such deposit accounts in the ordinary course of business, and Liens that are contractual rights of set-off or rights of pledge relating to purchase orders and other agreements entered into with customers of any Loan Party or its Subsidiaries in the ordinary course of business;
 
(m)             Liens granted in the ordinary course of business on the unearned portion of insurance premiums securing the financing of insurance premiums to the extent the financing is permitted under the definition of Permitted Indebtedness;
 
(n)               Liens solely on any cash earnest money deposits made by any Loan Party in connection with any letter of intent or purchase agreement with respect to a Permitted Acquisition;
 
(o)               Liens securing Indebtedness described in clause (j) of the definition of Permitted Indebtedness, so long as such Liens do not encumber the assets of any Loan Parties; and
 
(p)               Liens securing corporate credit card Indebtedness of any Loan Party or its Subsidiaries in the ordinary course of business in an aggregate amount not exceeding $500,000 at any time outstanding;
 
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(q)               Liens securing the Insurance Loan so long as such Liens are subject to an intercreditor agreement satisfactory to the Origination Agent; and
 
(r)                 other Liens which do not secure Indebtedness for borrowed money or letters of credit and as to which the aggregate amount of the obligations secured thereby does not exceed $250,000.
 
Permitted Purchase Money Indebtedness ” means, as of any date of determination, Indebtedness (other than the Obligations, but including Capitalized Lease Obligations) incurred to finance the acquisition of any fixed assets secured by a Lien permitted under clause (e) of the definition of “Permitted Liens”; provided that (a) such Indebtedness, when incurred, shall not exceed the purchase price of the asset financed and (b) the aggregate principal amount of all such Indebtedness shall not exceed $1,500,000 at any time outstanding.
 
Permitted Refinancing Indebtedness ” means the extension of maturity, refinancing or modification of the terms of Indebtedness so long as:
 
(a)                after giving effect to such extension, refinancing or modification, the amount of such Indebtedness is not greater than the amount of Indebtedness outstanding immediately prior to such extension, refinancing or modification (other than by the amount of premiums paid thereon and the fees and expenses incurred in connection therewith and by the amount of unfunded commitments with respect thereto);
 
(b)               such extension, refinancing or modification does not result in a shortening of the average weighted maturity (measured as of the extension, refinancing or modification) of the Indebtedness so extended, refinanced or modified;
 
(c)                such extension, refinancing or modification is pursuant to terms that are not less favorable to the Loan Parties and the Lenders than the terms of the Indebtedness (including, without limitation, terms relating to the collateral (if any) and subordination (if any)) being extended, refinanced or modified; and
 
(d)               the Indebtedness that is extended, refinanced or modified is not recourse to any Loan Party or any of its Subsidiaries that is liable on account of the obligations other than those Persons which were obligated with respect to the Indebtedness that was refinanced, renewed, or extended.
 
Permitted Restricted Payments ” means any of the following:
 
(a)                Restricted Payments made by any Loan Party to the Parent in amounts necessary to pay taxes and other customary expenses as and when due and owing by the Parent in the ordinary course of its business (including salaries and related reasonable and customary expenses incurred by employees of the Parent),
 
(b)               Restricted Payments made by any Subsidiary of any Borrower to any Loan Party and any other Subsidiary of the Parent that owns a direct Equity Interest in such Subsidiary;
 
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(c)                Restricted Payments made by the Parent to pay dividends in the form of common Equity Interests;
 
(d)               Restricted Payments made by the Parent to permit the Parent (i) to repurchase, retire or otherwise acquire or retire for value Equity Interests issued by the Parent to any future, present or former employee, officer, director or consultant of the Parent or any of its Subsidiaries, or (ii) make payments on promissory notes that were issued in lieu of cash payments for the repurchase, retirement or other acquisition or requirement for value of such Equity Interests, in each case pursuant to any employee or director equity or benefit plan or any agreement with any employee, director or consultant of the Parent or any of its Subsidiaries; provided , that the amount of Restricted Payments made under this clause (d) shall not exceed $100,000 in the aggregate during any Fiscal Year without the prior written consent of the Origination Agent; and
 
(e)                repurchases of Equity Interests in the Parent deemed to occur upon exercise of stock options or warrants if such Equity Interests represent a portion of the exercise price of such options or warrants; provided , that the amount of Restricted Payments made under this clause (e) shall not exceed $100,000 in the aggregate during any Fiscal Year without the prior written consent of the Origination Agent.
 
Permitted Specified Liens ” means Permitted Liens described in clauses (a), (b) and (c) of the definition of Permitted Liens, and, solely in the case of Section 7.01(b)(i), including clauses (g), (h) and (i) of the definition of Permitted Liens.
 
Person ” means an individual, corporation, limited liability company, partnership, association, joint-stock company, trust, unincorporated organization, joint venture or other enterprise or entity or Governmental Authority.
 
Plan ” means any Employee Plan or Multiemployer Plan.
 
Post-Default Rate ” means a rate of interest per annum equal to the rate of interest otherwise in effect from time to time pursuant to the terms of this Agreement plus 2.00%, or, if a rate of interest is not otherwise in effect, interest at the highest rate specified herein for any Loan then outstanding prior to an Event of Default plus 2.00%.
 
Pro Rata Share ” means, with respect to:
 
(a)                a Lender’s obligation to make the Term Loans on the Effective Date, the percentage obtained by dividing (i)  such Lender’s Effective Date Term Loan Commitment, by (ii) the Total Effective Date Term Loan Commitment;
 
(b)               a Lender’s obligation to make the Term Loans after the Effective Date pursuant to its Delayed Draw A Term Loan Commitment and its right to receive payments of the Delayed Draw A Unused Line Fee, the percentage obtained by dividing (i)  such Lender’s Delayed Draw A Term Loan Commitment, by (ii) the Total Delayed Draw A Term Loan Commitment;
 
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(c)                a Lender’s obligation to make the Term Loans after the Effective Date pursuant to its Delayed Draw B Term Loan Commitment and its right to receive payments of the Delayed Draw B Unused Line Fee, the percentage obtained by dividing (i)  such Lender’s Delayed Draw B Term Loan Commitment, by (ii) the Total Delayed Draw B Term Loan Commitment;
 
(d)               a Lender’s right to receive payments of interest, fees (other than the Delayed Draw A Unused Line Fee and Delayed Draw B Unused Line Fee), and principal with respect thereto, the percentage obtained by dividing (i) the aggregate unpaid principal amount of such Lender’s portion of the Term Loan by (ii) the aggregate unpaid principal amount of the Term Loan, and
 
(e)                all other matters (including, without limitation, the indemnification obligations arising under Section 10.05), the percentage obtained by dividing (i) the sum of such Lender’s undrawn Term Loan Commitment (if any) and the unpaid principal amount of such Lender’s portion of the Term Loans, by (ii) the sum of the undrawn Total Term Loan Commitment (if any) and the aggregate unpaid principal amount of the Term Loans; provided , that once the Term Loans have been paid in full, the “Pro Rata Share” in respect of any Lender shall mean such Lender’s Pro Rata Share on the date immediately prior to payment in full.
 
Process Agent ” has the meaning specified therefor in Section 12.10(b).
 
Projections ” means financial projections of the Parent and its Subsidiaries delivered pursuant to Section 6.01(g)(ii), as updated from time to time pursuant to Section 7.01(a)(vi).
 
Purchase Price ” means, with respect to any Acquisition, an amount equal to the sum of (a) the aggregate consideration, whether cash, property or securities (including, without limitation, the fair market value of any Equity Interests of any Loan Party or any of its Subsidiaries issued in connection with such Acquisition), paid or delivered by a Loan Party or any of its Subsidiaries (whether as initial consideration or through the payment or disposition of deferred consideration, including, without limitation, in the form of seller financing, royalty payments, payments allocated towards non-compete covenants, payments to principals for consulting services or other similar payments) in connection with such Acquisition, plus (b) the aggregate amount of liabilities of the acquired business (net of current assets of the acquired business) that would be reflected on a balance sheet (if such were to be prepared) of the Parent and its Subsidiaries after giving effect to such Acquisition, plus (c) the aggregate amount of all transaction fees, costs and expenses incurred by the Parent or any of its Subsidiaries in connection with such Acquisition.
 
Qualified Cash ” means, as of any date of determination, (i) the aggregate amount of unrestricted cash on-hand of the Loan Parties maintained in deposit accounts in the name of a Loan Party in the United States as of such date, which deposit accounts are subject to Control Agreements, plus (ii) the aggregate amount of unrestricted cash on-hand of any Foreign Subsidiaries (other than Rimini Street Brazil Serviços de Tecnologia Ltda. and any other Subsidiary organized in Brazil) to the extent such cash does not exceed the lesser of (x) $8,000,000 or (y) 20% (or for the months ending January 31, 2017 and January 31, 2018, 25%) of the sum of (1) the cash described in clause (i) above plus (2) the aggregate amount of all unrestricted cash on-hand for all Foreign Subsidiaries, plus (iii) the aggregate amount of cash on-hand of Rimini Street Brazil Serviços de Tecnologia Ltda. and any other Subsidiary organized in Brazil to the extent such cash does not exceed the lesser of (x) $5,000,000 or (y) 15% (or for the months ending January 31, 2017 and January 31, 2018, 20%) of the sum of (1) the cash described in clause (i) above plus (2) the aggregate amount of all unrestricted cash on-hand for all Foreign Subsidiaries.
 
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Qualified Equity Interests ” means, with respect to any Person, all Equity Interests of such Person that are not Disqualified Equity Interests.
 
Real Property Deliverables ” means each of the following agreements, instruments and other documents in respect of each Facility:
 
(a)                a Mortgage duly executed by the applicable Loan Party,
 
(b)               evidence of the recording of each Mortgage in such office or offices as may be necessary or, in the reasonable opinion of the Collateral Agent, desirable to perfect the Lien purported to be created thereby or to otherwise protect the rights of the Collateral Agent and the Lenders thereunder;
 
(c)                a Title Insurance Policy with respect to each Mortgage;
 
(d)               a current ALTA survey and a surveyor’s certificate, in form and substance reasonably satisfactory to the Origination Agent and the Collateral Agent, certified to the Collateral Agent and to the issuer of the Title Insurance Policy with respect thereto by a professional surveyor licensed in the state in which such Facility is located and reasonably satisfactory to the Origination Agent;
 
(e)                in the case of a leasehold interest, (i) a certified copy of the lease between the landlord and such Person with respect to such real property in which such Person has a leasehold interest, and the certificate of occupancy with respect thereto, and (ii) an attornment and nondisturbance agreement between the landlord (and any fee mortgagee) and the applicable Loan Party with respect to such leasehold interest and the Collateral Agent;
 
(f)                a copy of each letter issued by the applicable Governmental Authority, evidencing each Facility’s compliance with all applicable building codes, fire codes, other health and safety rules and regulations, parking, density and height requirements and other building and zoning laws together with a copy of all certificates of occupancy issued with respect to each Facility;
 
(g)               an opinion of counsel, reasonably satisfactory to the Origination Agent and the Collateral Agent, in the state where such Facility is located with respect to the enforceability of the Mortgage to be recorded and such other matters as the Collateral Agent may reasonably request;
 
(h)               a reasonably satisfactory ASTM 1527-00 Phase I Environmental Site Assessment (“ Phase I ESA ”) provided by the Borrowers to the Collateral Agent (and, if requested by the Collateral Agent (acting at the direction of the Required Lenders) based upon the results of such Phase I ESA, an ASTM 1527-00 Phase II Environmental Site Assessment) of each Facility, in form and substance and by an independent firm reasonably satisfactory to the Origination Agent; and
 
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(i)                 such other agreements, instruments and other documents (including guarantees and opinions of counsel) as the Collateral Agent may reasonably require.
 
Recipient ” means any Agent and any Lender, as applicable.
 
Register ” has the meaning specified therefor in Section 12.07(e).
 
Registered Intellectual Property ” means Intellectual Property that is issued, registered, renewed or the subject of a pending application.
 
Registered Loans ” has the meaning specified therefor in Section 12.07(e).
 
Regulation T ”, “ Regulation U ” and “ Regulation X ” mean, respectively, Regulations T, U and X of the Board or any successor, as the same may be amended or supplemented from time to time.
 
Related Fund ” means, with respect to any Person, an Affiliate of such Person, or a fund or account managed by such Person or an Affiliate of such Person.
 
Related Parties ” means, with respect to any Person, such Person’s Affiliates and partners, members, managers, directors, officers, employees, agents and advisors of such Person and of such Person’s Affiliates.
 
Related Party Assignment ” has the meaning specified therefor in Section 12.07(b)(ii).
 
Release ” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, seeping, migrating, dumping or disposing of any Hazardous Material (including the abandonment or discarding of barrels, containers and other closed receptacles containing any Hazardous Material) into the indoor or outdoor environment, including, without limitation, the movement of Hazardous Materials through or in the ambient air, soil, surface or ground water, or property.
 
Remedial Action ” means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate or in any other way address Hazardous Materials in the indoor or outdoor environment; (b) prevent or minimize a Release or threatened Release of Hazardous Materials so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment; (c) perform pre-remedial studies and investigations and post-remedial operation and maintenance activities; or (d) perform any other actions authorized by 42 U.S.C. § 9601.
 
Replacement Lender ” has the meaning specified therefor in Section 12.02(b).
 
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Reportable Event ” means an event described in Section 4043 of ERISA (other than an event not subject to the provision for 30-day notice to the PBGC under the regulations promulgated under such Section).
 
Required Lenders ” means the Origination Agent and Lenders whose Pro Rata Shares (calculated in accordance with clause (e) of the definition thereof) aggregate at least 50.1%.
 
Required Prepayment Date ” has the meaning specified therefor in Section 2.05(g).
 
Required Supermajority Lenders ” means the Origination Agent and Lenders whose Pro Rata Shares (calculated in accordance with clause (e) of the definition thereof) aggregate at least 66.67%.
 
Requirements of Law ” means, with respect to any Person, collectively, the common law and all federal, state, provincial, local, foreign, multinational or international laws, statutes, codes, treaties, standards, rules and regulations, guidelines, ordinances, orders, judgments, writs, injunctions, decrees (including administrative or judicial precedents or authorities) and the interpretation or administration thereof by, and other determinations, directives, requirements or requests of, any Governmental Authority, in each case that are applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.
 
Restricted Payment ” means (a) the declaration or payment of any dividend or other distribution, direct or indirect, on account of any Equity Interests of any Loan Party or any of its Subsidiaries, now or hereafter outstanding, (b) the making of any repurchase, redemption, retirement, defeasance, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any Equity Interests of any Loan Party or any direct or indirect parent of any Loan Party, now or hereafter outstanding, (c) the making of any payment to retire, or to obtain the surrender of, any outstanding warrants, options or other rights for the purchase or acquisition of shares of any class of Equity Interests of any Loan Party, now or hereafter outstanding, (d) the return of any Equity Interests to any shareholders or other equity holders of any Loan Party or any of its Subsidiaries, or make any other distribution of property, assets, shares of Equity Interests, warrants, rights, options, obligations or securities thereto as such or (e) the payment of any management, consulting, monitoring or advisory fees or any other fees or expenses (including the reimbursement thereof by any Loan Party or any of its Subsidiaries) pursuant to any management, consulting, monitoring, advisory or other services agreement to any of the shareholders or other equityholders of any Loan Party or any of its Subsidiaries or other Affiliates, or to any other Subsidiaries or Affiliates of any Loan Party.
 
Retained Equity Issuance Proceeds ” means, as of any date of determination, an amount equal to 75% of the Net Cash Proceeds of all Equity Issuances (other than Excluded Equity Issuances) after the Effective Date, which proceeds shall be deposited into the Blocked Collection Account.
 
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Retained Insurance Proceeds ” has the meaning specified therefor in Section 2.05(c)(v).
 
Retained Hartford Insurance Proceeds ” means the insurance proceeds actually received by the Borrowers from The Hartford Insurance in connection with the final judgment entered in connection with the litigation described in clause (i) of the definition of Oracle Litigation in the aggregate amount equal to the sum of (i) $10,000,000 plus (ii) an amount equal to the difference between (A) the sum of (1) the amount of the Total Delayed Draw A Term Loan Commitment, plus (2) insurance proceeds in an amount equal to 60% of the Oracle Litigation Fees and Costs actually awarded up to $50,000,000, to the extent actually received by, or paid on behalf of, the Borrowers plus (3) the proceeds of the Insurance Loan actually received by the Borrowers, minus (B) the amount of the final judgment entered in connection with the litigation described in clause (i) of the definition of Oracle Litigation.
 
Sale and Leaseback Transaction ” means, with respect to the Parent or any of its Subsidiaries, any arrangement, directly or indirectly, with any Person whereby the Parent or any of its Subsidiaries shall sell or transfer any property used or useful in its business, whether now owned or hereafter acquired, and thereafter rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as the property being sold or transferred.
 
SEC ” means the Securities and Exchange Commission or any other similar or successor agency of the Federal government administering the Securities Act.
 
Secured Parties ” means the Agents, the Lenders and their respective permitted successors and permitted assigns.
 
Securities Act ” means the Securities Act of 1933, as amended, or any similar Federal statute, and the rules and regulations of the SEC thereunder, all as the same shall be in effect from time to time.
 
Securitization ” has the meaning specified therefor in Section 12.07(k).
 
Security Agreement ” means a Pledge and Security Agreement, in form and substance satisfactory to the Origination Agent and the Collateral Agent, made by a Loan Party in favor of the Collateral Agent for the benefit of the Secured Parties securing the Obligations.
 
Seller ” means any Person that sells Equity Interests or other property or assets to a Loan Party or a Subsidiary of a Loan Party in a Permitted Acquisition.
 
Semi-Monthly Report ” shall have the meaning specified therefor in Section 8.01(c).
 
Solvent ” means, with respect to any Person on a particular date, that on such date (a) such Person is able to pay its debts and other liabilities, contingent obligations and other commitments as they mature in the normal course of business, (b) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such debts and liabilities mature, and (c) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute unreasonably small capital. The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability, to the extent permitted by and in conformity with GAAP.
 
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Specified Collections ” means (a) 100% of the Net Cash Proceeds of all Excluded Equity Issuances (other than the Net Cash Proceeds of Excluded Equity Issuances described in clause (e) of the definition thereof), (b) proceeds of the Term Loan made on the Effective Date and (c) any Excluded Hartford Insurance Proceeds.
 
Specified Disbursements ” means the disbursements set forth opposite the following line items in the Loan Parties’ Monthly Cash Disbursement Report: (i) cost of goods sold, (ii) sales & marketing and (iii) general & administrative.
 
Specified Equity Issuance Proceeds ” means the Net Cash Proceeds of all Equity Issuances (other than Excluded Equity Issuances), less the amount of any Retained Equity Issuance Proceeds.
 
Specified Fees ” means those certain fees designated as “Specified Fees” in the Fee Letter.
 
Standard & Poor’s ” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. and any successor thereto.
 
Subsidiary ” means, with respect to any Person at any date, any corporation, limited or general partnership, limited liability company, trust, estate, association, joint venture or other business entity (a) the accounts of which would be consolidated with those of such Person in such Person’s consolidated financial statements if such financial statements were prepared in accordance with GAAP or (b) of which more than 50% of (i) the outstanding Equity Interests having (in the absence of contingencies) ordinary voting power to elect a majority of the Board of Directors of such Person, (ii) in the case of a partnership or limited liability company, the interest in the capital or profits of such partnership or limited liability company or (iii) in the case of a trust, estate, association, joint venture or other entity, the beneficial interest in such trust, estate, association or other entity business is, at the time of determination, owned or controlled directly or indirectly through one or more intermediaries, by such Person. References to a Subsidiary shall mean a Subsidiary of the Parent unless the context expressly provides otherwise.
 
Swap Obligation ” means, with respect to any Guarantor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.
 
Swap Termination Value ” means, in respect of any one or more Hedging Agreements, after taking into account the effect of any legally enforceable netting agreement relating to such Hedging Agreements, (a) for any date on or after the date such Hedging Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Hedging Agreements, as determined based upon one or more mid-market or other readily available quotations provided by any nationally recognized dealer in such Hedging Agreements (which may include a Lender or any Affiliate of a Lender).
 
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Taxes ” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.
 
Termination Date ” means the first date on which all of the Obligations (other than Contingent Indemnity Obligations) are paid in full in cash (except as otherwise expressly set forth in the Loan Documents) and the Commitments of the Lenders are terminated.
 
Termination Event ” means (a) a Reportable Event with respect to any Employee Plan, (b) any event that causes any Loan Party or any of its ERISA Affiliates to incur liability under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 4971 or 4975 of the Internal Revenue Code under any Plan, (c) the filing of a notice of intent to terminate an Employee Plan under Section 4041 of ERISA, (d) the institution of proceedings by the PBGC to terminate an Employee Plan under Section 4042 of ERISA, or (e) any other event or condition that could reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Employee Plan.
 
Term Loan ” means, means, collectively, the loans made by the Lenders to the Borrowers pursuant to ARTICLE II.
 
Term Loan Commitment ” means, with respect to each Lender, such Lender’s Effective Date Term Loan Commitment, Delayed Draw A Term Loan Commitment and Delayed Draw B Term Loan Commitment.
 
Term Loan Lender ” means a Lender with a Term Loan Commitment or a Term Loan.
 
Term Loan PIK Amount ” means, as of any date of determination, the amount of all interest accrued with respect to the Term Loan that has been paid in kind by being added to the balance thereof in accordance with Section 2.04(a).
 
Threshold Amount ” means with respect to the litigation described in clause (i) of the definition of Oracle Litigation, the difference between the (i) amount of the final judgment entered thereto minus (ii) the sum of (x) insurance proceeds in an amount equal to 60% of the Oracle Litigation Fees and Costs actually awarded up to $50,000,000, to the extent actually received by, or paid on behalf of, the Borrowers plus (y) the proceeds of the Insurance Loan actually received by the Borrowers plus (z) the Net Cash Proceeds of any Excluded Equity Issuances described in clause (d)(1) of the definition of Excluded Equity Issuance.
 
Title Insurance Policy ” means a mortgagee’s loan policy, in form and substance reasonably satisfactory to the Origination Agent, together with all endorsements made from time to time thereto, issued to the Collateral Agent by or on behalf of a title insurance company selected by or otherwise reasonably satisfactory to the Origination Agent, insuring the Lien created by a Mortgage in an amount and on terms and with such endorsements reasonably satisfactory to the Origination Agent and the Collateral Agent, delivered to the Collateral Agent.
 
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Total Delayed Draw A Term Loan Commitment ” means the sum of the amounts of the Lenders’ Delayed Draw A Term Loan Commitments.
 
Total Delayed Draw B Term Loan Commitment ” means the sum of the amounts of the Lenders’ Delayed Draw B Term Loan Commitments.
 
Total Delayed Draw Term Loan Commitment ” means the sum of the amounts of the Total Delayed Draw A Term Loan Commitments and Total Delayed Draw B Term Loan Commitments.
 
Total Effective Date Term Loan Commitment ” means the sum of the amounts of the Lenders’ Effective Date Term Loan Commitments.
 
Total Hartford Insurance Proceeds ” means the insurance proceeds actually received by the Borrowers from The Hartford Insurance in connection with the final judgment entered in connection with the litigation described in clause (i) of the definition of Oracle Litigation in the aggregate amount equal to the sum of (i) $10,000,000, plus (ii) an amount equal to 60% of the Oracle Litigation Fees and Costs actually awarded up to $50,000,000, to the extent actually received by, or paid on behalf of, the Borrowers plus (iii) the proceeds of the Insurance Loan actually received by the Borrowers.
 
Total Sales and Marketing Expense ” means, with respect to the Parent and its Subsidiaries for any period, the aggregate dollar amount of Specified Disbursements of the type set forth in clause (ii) of the definition thereof for such period, which Specified Disbursements constitute charges and expenses attributable to sales and marketing, advertising and promotional efforts during such period, and shall include, without limitation, wages, commissions, bonuses, materials costs and event planning related to such efforts and activities.
 
Total New Customer Invoicing ” means, with respect to the Parent and its Subsidiaries for any period, the aggregate dollar amount of invoices (other than invoices for which payment thereof is more than 90 days past due) issued to customers acquired within the prior twelve-month period.
 
Total Term Loan Commitment ” means the sum of the amounts of the Lenders’ Effective Date Term Loan Commitments, Delayed Draw A Term Loan Commitments and Delayed Draw B Term Loan Commitments.
 
Transferee ” has the meaning specified therefor in Section 2.09(a).
 
Treasury Rate ” means, with respect to any prepayment, a rate per annum (computed on the basis of actual days elapsed over a year of 360 days) equal to the rate determined by the Administrative Agent on the date 3 Business Days prior to the date of such prepayment, to be the yield expressed as a rate listed in The Wall Street Journal for United States Treasury securities having a term of not greater than 36 months.
 
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Uniform Commercial Code ” or “ UCC ” has the meaning specified therefor in Section 1.04.
 
USA PATRIOT Act ” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (PATRIOT) Act of 2001 (Title III of Pub. L. 107-56, Oct. 26, 2001)) as amended by the USA Patriot Improvement and Reauthorization Act of 2005 (Pub. L. 109-177, March 9, 2006) and as the same may have been or may be further renewed, extended, amended, or replaced.
 
U.S. Person ” means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.
 
Waivable Mandatory Prepayment ” has the meaning specified therefor in Section 2.05(g).
 
WARN ” has the meaning specified therefor in Section 6.01(p).
 
Withholding Agent ” means any Loan Party and the Administrative Agent.
 
Working Capital ” means, at any date of determination thereof, (a) the sum, for any Person and its Subsidiaries, of (i) the unpaid face amount of all Accounts of such Person and its Subsidiaries as at such date of determination, plus (ii) the aggregate amount of prepaid expenses and other current assets of such Person and its Subsidiaries as at such date of determination (other than cash, Cash Equivalents and any Indebtedness owing to such Person or any of its Subsidiaries by Affiliates of such Person), minus (b) the sum, for such Person and its Subsidiaries, of (i) the unpaid amount of all accounts payable of such Person and its Subsidiaries as at such date of determination, plus (ii) the aggregate amount of all accrued expenses of such Person and its Subsidiaries as at such date of determination (other than the current portion of long-term debt and all accrued interest and taxes).
 
Section 1.02        Terms Generally . The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise, (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any right or interest in or to assets and properties of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.
 
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Section 1.03        Certain Matters of Construction . References in this Agreement to “determination” by any Agent include good faith estimates by such Agent (in the case of quantitative determinations) and good faith beliefs by such Agent (in the case of qualitative determinations). A Default or Event of Default shall be deemed to exist at all times during the period commencing on the date that such Default or Event of Default occurs to the date on which such Default or Event of Default is waived in writing pursuant to this Agreement or, in the case of a Default, is cured within any period of cure expressly provided for in this Agreement; and an Event of Default shall “continue” or be “continuing” until such Event of Default has been waived in writing by the Required Lenders. Any Lien referred to in this Agreement or any other Loan Document as having been created in favor of any Agent, any agreement entered into by any Agent pursuant to this Agreement or any other Loan Document, any payment made by or to or funds received by any Agent pursuant to or as contemplated by this Agreement or any other Loan Document, or any act taken or omitted to be taken by any Agent, shall, unless otherwise expressly provided, be created, entered into, made or received, or taken or omitted, for the benefit or account of the Agents and the Lenders. Wherever the phrase “to the knowledge of any Loan Party” or words of similar import relating to the knowledge or the awareness of any Loan Party are used in this Agreement or any other Loan Document, such phrase shall mean and refer to (i) the actual knowledge of a senior officer of any Loan Party or (ii) the knowledge that a senior officer would have obtained if such officer had engaged in good faith and diligent performance of such officer’s duties, including the making of such reasonably specific inquiries as may be necessary of the employees or agents of such Loan Party and a good faith attempt to ascertain the existence or accuracy of the matter to which such phrase relates. All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or otherwise within the limitations of, another covenant shall not avoid the occurrence of a default if such action is taken or condition exists. In addition, all representations and warranties hereunder shall be given independent effect so that if a particular representation or warranty proves to be incorrect or is breached, the fact that another representation or warranty concerning the same or similar subject matter is correct or is not breached will not affect the incorrectness of a breach of a representation or warranty hereunder.
 
Section 1.04        Accounting and Other Terms .
 
(a)                Unless otherwise expressly provided herein, each accounting term used herein shall have the meaning given it under GAAP. For purposes of determining compliance with any incurrence or expenditure tests set forth in Section 7.01, Section 7.02 and Section 7.03, any amounts so incurred or expended (to the extent incurred or expended in a currency other than Dollars) shall be converted into Dollars on the basis of the exchange rates (as shown on the Bloomberg currency page for such currency or, if the same does not provide such exchange rate, by reference to such other publicly available service for displaying exchange rates as may be reasonably selected by the Agents or, in the event no such service is selected, on such other basis as is reasonably satisfactory to the Agents) as in effect on the date of such incurrence or expenditure under any provision of any such Section that has an aggregate Dollar limitation provided for therein (and to the extent the respective incurrence or expenditure test regulates the aggregate amount outstanding at any time and it is expressed in terms of Dollars, all outstanding amounts originally incurred or spent in currencies other than Dollars shall be converted into Dollars on the basis of the exchange rates (as shown on the Bloomberg currency page for such currency or, if the same does not provide such exchange rate, by reference to such other publicly available service for displaying exchange rates as may be reasonably selected by the Agents or, in the event no such service is selected, on such other basis as is reasonably satisfactory to the Agents) as in effect on the date of any new incurrence or expenditures made under any provision of any such Section that regulates the Dollar amount outstanding at any time). Notwithstanding the foregoing, (i) with respect to the accounting for leases as either operating leases or capital leases and the impact of such accounting in accordance with FASB ASC 840 on the definitions and covenants herein, GAAP as in effect on the Effective Date shall be applied and (ii) for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, Indebtedness of the Parent and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded.
 
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(b)               All terms used in this Agreement which are defined in Article 8 or Article 9 of the Uniform Commercial Code as in effect from time to time in the State of New York (the “ Uniform Commercial Code ” or the “ UCC ”) and which are not otherwise defined herein shall have the same meanings herein as set forth therein, provided that terms used herein which are defined in the Uniform Commercial Code as in effect in the State of New York on the date hereof shall continue to have the same meaning notwithstanding any replacement or amendment of such statute except as any Agent may otherwise determine.
 
Section 1.05        Time References . Unless otherwise indicated herein, all references to time of day refer to Eastern Standard Time or Eastern daylight saving time, as in effect in New York City on such day. For purposes of the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each means “to but excluding”; provided , however , that with respect to a computation of fees or interest payable to any Secured Party, such period shall in any event consist of at least one full day.
 
ARTICLE II

THE LOANS
 
Section 2.01        Commitments . (a) Subject to the terms and conditions and relying upon the representations and warranties herein set forth:
 
(i)                 each Lender with an Effective Date Term Loan Commitment agrees, severally and not jointly, to make or cause to be made on the Effective Date, a Term Loan to the Borrowers in an aggregate principal amount not to exceed its Effective Date Term Loan Commitment and the Term Loans of all Lenders made on the Effective Date shall be in an aggregate principal amount not to exceed the Total Effective Date Term Loan Commitment;
 
(ii)               each Lender with a Delayed Draw A Term Loan Commitment agrees, severally and not jointly, to make or cause to be made, from time to time after the Effective Date and prior to the Delayed Draw A Term Loan Commitment Termination Date and subject to Section 5.02, one or more Term Loans to the Borrowers in an aggregate principal amount not to exceed the lesser of (A) its Delayed Draw A Pro Rata Share of such Term Loan and (B) its Delayed Draw A Term Loan Commitment;
 
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(iii)             each Lender with a Delayed Draw B Term Loan Commitment agrees, severally and not jointly, to make or cause to be made, from time to time after the Effective Date and prior to the Delayed Draw B Term Loan Commitment Termination Date and subject to Section 5.03, one or more Term Loans to the Borrowers in an aggregate principal amount not to exceed the lesser of (A) its Delayed Draw B Pro Rata Share of such Term Loan and (B) its Delayed Draw B Term Loan Commitment; and
 
(iv)             all Term Loans (whether made on or after the Effective Date) shall be made with an original issue discount of two percent (2.00%) of the aggregate principal amount of the Term Loans such that the proceeds of the Term Loans shall be advanced net of the original issue discount and the Borrowers acknowledge and agree that they will receive proceeds in an amount equal to 98% of the aggregate principal amount of the Term Loans, but that the entire amount of such principal shall be deemed outstanding as the Term Loans.
 
(b)               Notwithstanding the foregoing, the aggregate principal amount of all Term Loans made on the Effective Date pursuant to this Agreement shall not exceed the Total Effective Date Term Loan Commitment. The aggregate principal amount of all Term Loans made after the Effective Date pursuant to the Delayed Draw A Term Loan Commitment pursuant to this Agreement shall not exceed the Total Delayed Draw A Term Loan Commitment. The aggregate principal amount of all Term Loans made after the Effective Date pursuant to the Delayed Draw B Term Loan Commitment pursuant to this Agreement shall not exceed the Total Delayed Draw B Term Loan Commitment. The Total Effective Date Term Loan Commitment shall be permanently terminated immediately and without further action upon the funding of the Term Loan on the Effective Date. The Total Delayed Draw A Term Loan Commitment shall be permanently reduced immediately and without further action upon the funding of each Term Loan after the Effective Date pursuant to the Total Delayed Draw A Term Loan Commitment in an amount equal to such funded Term Loan. The Total Delayed Draw B Term Loan Commitment shall be permanently reduced immediately and without further action upon the funding of each Term Loan after the Effective Date pursuant to the Total Delayed Draw B Term Loan Commitment in an amount equal to such funded Term Loan. Each Lender’s Effective Date Term Loan Commitment shall be permanently terminated immediately and without further action upon the funding of the Term Loan on the Effective Date. Each Lender’s Delayed Draw A Term Loan Commitment shall be permanently reduced immediately and without further action upon the funding of each Term Loan after the Effective Date made pursuant to a Delayed Draw A Term Loan Commitment in an amount equal to such Lender’s Delayed Draw A Pro Rata Share of such funded Term Loan. Each Lender’s Delayed Draw B Term Loan Commitment shall be permanently reduced immediately and without further action upon the funding of each Term Loan after the Effective Date made pursuant to a Delayed Draw B Term Loan Commitment in an amount equal to such Lender’s Delayed Draw B Pro Rata Share of such funded Term Loan. The undrawn Total Delayed Draw A Term Loan Commitment and each Lender’s Delayed Draw A Term Loan Commitment shall terminate immediately and without further action on the Delayed Draw A Term Loan Commitment Termination Date. The undrawn Total Delayed Draw B Term Loan Commitment and each Lender’s Delayed Draw B Term Loan Commitment shall terminate immediately and without further action on the Delayed Draw B Term Loan Commitment Termination Date. Any principal amount of the Term Loans which is repaid or prepaid may not be reborrowed.
 
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Section 2.02        Making the Loans . (a) The Administrative Borrower shall give the Administrative Agent prior written notice, in substantially the form of Exhibit C hereto (a “ Notice, of Borrowing ”), not later than 12:00 noon (New York City time) on the date which is (x) in the case of the Term Loans to be made on the Effective Date, on the date of the proposed Loan, (y) in the case of the Term Loans to be made pursuant to the Delayed Draw A Term Loan Commitment, 7 days prior to the date of the proposed Loan and (z) in the case of the Term Loans to be made pursuant to the Delayed Draw B Term Loan Commitment, 15 Business Days prior to the date of the proposed Loan (or, in each case, such shorter period as the Origination Agent is willing to accommodate from time to time, but in no event later than 12:00 noon (New York time) one Business Day prior to the borrowing date of the proposed Loan). Such Notice of Borrowing shall be irrevocable and shall specify (i) the principal amount of the proposed Loan, (ii) the use of the proceeds of such proposed Loan, (iii) the proposed borrowing date, which must be a Business Day, and, with respect to the initial Term Loan, must be the Effective Date, and the (iv) the wire instructions for the account or accounts to which the proposed Loan funds should be transferred. The Administrative   Agent and the Lenders may act without liability upon the basis of written, telecopied or other electronic notice believed by the Administrative Agent in good faith to be from the Administrative Borrower (or from any Authorized Officer thereof designated in writing purportedly from the Administrative Borrower to the Administrative Agent). Each Borrower hereby waives the right to dispute the Administrative Agent’s record of the terms of any such Notice of Borrowing. The Administrative Agent and each Lender shall be entitled to rely conclusively on any Authorized Officer’s authority to request a Loan on behalf of the Borrowers until the Administrative Agent receives written notice to the contrary. The Administrative Agent and the Lenders shall have no duty to verify the authenticity of the signature appearing on any Notice of Borrowing. Upon its receipt of a Notice of Borrowing, the Administrative Agent shall promptly notify each Lender, and thereafter each Lender shall make the amount of its applicable Term Loan Commitment available to the Administrative Agent in immediately available funds no later than 12 noon (New York City time) on the borrowing date of the proposed Loan. Upon receipt of all Loan funds, the Administrative Agent shall transfer such funds to the Administrative Borrower by wire transfer in immediately available funds to the account or accounts designated in the Notice of Borrowing.
 
(b)               Each Notice of Borrowing pursuant to this Section 2.02 shall be irrevocable and the Borrowers shall be bound to make a borrowing in accordance therewith. Each Term Loan made after the Effective Date shall be made in a minimum amount of $10,000,000 and shall be in an integral multiple of $1,000,000.
 
(c)                Except as otherwise provided in this Section 2.02(c), all Loans under this Agreement shall be made by the Lenders simultaneously and proportionately to their (i) Pro Rata Shares of the Effective Date Pro Rata Shares of the Total Effective Date Term Loan Commitment, (ii) Delayed Draw A Pro Rata Shares of the Total Delayed Draw A Term Loan Commitment and (iii) Delayed Draw B Pro Rata Shares of the Total Delayed Draw B Term Loan Commitment, as the case may be, it being understood that no Lender shall be responsible for any default by any other Lender in that other Lender’s obligations to make a Loan requested hereunder, nor shall the Commitment of any Lender be increased or decreased as a result of the default by any other Lender in that other Lender’s obligation to make a Loan requested hereunder, and each Lender shall be obligated to make the Loans required to be made by it by the terms of this Agreement regardless of the failure by any other Lender.
 
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Section 2.03        Repayment of Loans; Evidence of Debt . (a) The outstanding principal amount of the Term Loan shall be repayable on the first Business Day of every month, commencing on the Amortization Commencement Date, in accordance with Schedule 2.03; provided , however , that the last such installment shall be in the amount necessary to repay in full the unpaid principal amount of the Term Loan. The outstanding unpaid principal amount of the Term Loan, and all accrued and unpaid interest thereon, shall be due and payable on the earliest of (i) the Final Maturity Date and (ii) the date on which the Term Loan is declared due and payable pursuant to Section 9.01 of this Agreement.
 
(b)               Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of the Borrowers to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.
 
(c)                The Administrative Agent shall maintain accounts in which it shall record (i) the amount of each Loan made hereunder, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrowers to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof.
 
(d)               The entries made in the accounts maintained pursuant to Section 2.03(b) or Section 2.03(c) shall be prima   facie evidence of the existence and amounts of the obligations recorded therein; provided that (i) the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrowers to repay the Loans in accordance with the terms of this Agreement and (ii) in the event of any conflict between the entries made in the accounts maintained pursuant to Section 2.03(b) and the accounts maintained pursuant to Section 2.03(c), the accounts maintained pursuant to Section 2.03(c) shall govern and control.
 
(e)                Any Lender may request that Loans made by it be evidenced by a promissory note. In such event, the Borrowers shall execute and deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) in the form attached hereto as Exhibit E. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 12.07) be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns).
 
Section 2.04        Interest .
 
(a)                Term Loan . The Term Loan shall bear interest on the principal amount thereof from time to time outstanding, from the date of the Term Loan until repaid, at a rate per annum equal to fifteen percent (15.00%); provided that a portion of interest accruing at a rate per annum equal to three percent (3.00%) shall be paid by capitalizing such interest and adding such capitalized interest to the then outstanding principal amount of the Term Loan. Any interest to be so capitalized pursuant to this clause (a) is the Term Loan PIK Amount and shall be capitalized, in arrears, on the first Business Day of each month, commencing on the first Business Day of the month following the month in which such Loan is made, and added to the then outstanding principal amount of the Term Loan and, thereafter, shall bear interest as provided hereunder as if it had originally been part of the outstanding principal of the Term Loan.
 
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(b)               Default Interest . To the extent permitted by law and notwithstanding anything to the contrary in this Section, upon the occurrence and during the continuance of an Event of Default, at the election of the Origination Agent, provided written notice of such election has been delivered to the Administrative Agent, the principal (including the Term Loan PIK Amount) of, and all accrued and unpaid interest on, all Loans, fees, indemnities or any other Obligations of the Loan Parties under this Agreement and the other Loan Documents, shall bear interest, from the date such Event of Default occurred until the date such Event of Default is cured or waived in writing in accordance herewith, at a rate per annum equal at all times to the Post-Default Rate.
 
(c)                Interest Payment . Interest (other than the Term Loan PIK Amount, which shall be capitalized in accordance with Section 2.04(a)) on each Loan shall be payable monthly, in arrears, on the first Business Day of each month, commencing on the first day of the month following the month in which such Loan is made and (iii) in the case of each Loan, at maturity (whether upon demand, by acceleration or otherwise. Interest at the Post-Default Rate shall be payable on demand. Each Borrower hereby authorizes the Administrative Agent to, and the Administrative Agent may, from time to time, charge the Loan Account pursuant to Section 4.01 with the amount of any interest payment due and payable hereunder.
 
(d)               General . All interest shall be computed on the basis of a year of 360 days for the actual number of days, including the first day but excluding the last day, elapsed.
 
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Section 2.05        Reduction of Commitment; Prepayment of Loans .
 
(a)                Reduction of Commitments . The Total Effective Date Term Loan Commitment shall terminate on the earlier of (i) the making of the Term Loan on the Effective Date and (ii) 5:00 p.m. on the Effective Date. The Total Delayed Draw A Term Loan Commitment shall terminate on the Delayed Draw A Term Loan Commitment Termination Date. The Total Delayed Draw B Term Loan Commitment shall terminate on the Delayed Draw B Term Loan Commitment Termination Date. In addition, the Total Term Loan Commitment, the Effective Date Term Loan Commitment, the Delayed Draw A Term Loan Commitment and the Delayed Draw B Term Loan Commitment of each Lender shall be reduced or terminated, as applicable, in accordance with Section 2.01(b). At any time after the date that is the 36 month anniversary of the Effective Date, the Borrowers may, upon at least 3 Business Days’ prior written notice to the Administrative Agent and the Origination Agent, terminate the Total Delayed Draw B Term Loan Commitment in whole or in part.
 
(b)               Optional Prepayment .
 
(i)                 Term Loan . The Borrowers may, at any time and from time to time, upon at least 5 Business Days’ prior written notice to the Administrative Agent, prepay the outstanding principal of the Term Loan, in whole or in part. Each prepayment made pursuant to this Section 2.05(b)(i) shall be accompanied by the payment of (A) accrued but unpaid interest to the date of such payment on the amount prepaid and (B) the Applicable Premium payable in connection with such prepayment of the Term Loan. Each such prepayment shall be applied against the remaining installments of principal due on the Term Loan in the inverse order of maturity.
 
(ii)               Termination of Agreement . The Borrowers may, upon at least 10 days prior written notice to the Administrative Agent, terminate this Agreement by paying to the Administrative Agent, in cash (except as otherwise expressly provided in the Loan Documents), all of the outstanding Obligations (other than Contingent Indemnity Obligations) in full in accordance with the Loan Documents, plus the Applicable Premium payable in connection with such termination of this Agreement. If the Administrative Borrower has sent a notice of termination pursuant to this Section 2.05(b)(ii), then the Lenders’ obligations to extend credit hereunder shall terminate and the Borrowers shall be obligated to repay the outstanding Obligations, in full, plus the Applicable Premium payable in connection with such termination of this Agreement on the date set forth as the date of termination of this Agreement in such notice.
 
(c)                Mandatory Prepayment .
 
(i)                 Within three Business Days after any Disposition (excluding Dispositions which qualify as Permitted Dispositions under clauses (a), (b), (c), (d), (e), (f), (g), (h), (i), (k) or (l) of the definition of Permitted Disposition) by any Loan Party or its Subsidiaries, the Borrowers shall prepay the outstanding principal amount of the Loans in accordance with Section 2.05(d) in an amount equal to 100% of the Net Cash Proceeds received by such Person in connection with such Disposition to the extent that the aggregate amount of Net Cash Proceeds received by all Loan Parties and their Subsidiaries (and not paid to the Administrative Agent as a prepayment of the Loans) shall exceed for all such Dispositions $250,000 in any Fiscal Year. Nothing contained in this Section 2.05(c)(i) shall permit any Loan Party or any of its Subsidiaries to make a Disposition of any property other than in accordance with Section 7.02(c)(ii).
 
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(ii)               Upon the issuance or incurrence by any Loan Party or any of its Subsidiaries of any Indebtedness (other than Permitted Indebtedness), the Borrowers shall prepay the outstanding amount of the Loans in accordance with Section 2.05(d) in an amount equal to 100% of the Net Cash Proceeds received by such Person in connection therewith within two (2) Business Days upon receipt thereof by such Person. The provisions of this Section 2.05(c)(ii) shall not be deemed to be implied consent to any such issuance or incurrence otherwise prohibited by the terms and conditions of this Agreement.
 
(iii)             Upon the receipt of any Specified Equity Issuance Proceeds after the Effective Date, the Borrowers shall prepay the outstanding amount of the Loans in accordance with Section 2.05(d) in an amount equal to 100% of such Specified Equity Issuance Proceeds received by such Person in connection therewith within two (2) Business Days   after receipt thereof by such Person. The provisions of this Section 2.05(c)(iii) shall not be deemed to be implied consent to any Equity Issuance by a Subsidiary that is prohibited by the terms and conditions of this Agreement.
 
(iv)             Within two (2) Business Days after the receipt by any Loan Party or any of its Subsidiaries of any Extraordinary Receipts (other than Excluded Hartford Insurance Proceeds), the Borrowers shall prepay the outstanding principal of the Loans in accordance with Section 2.05(d) in an amount equal to 100% of the Net Cash Proceeds received by such Person in connection therewith.
 
(v)               Notwithstanding the foregoing, with respect to Net Cash Proceeds received by any Loan Party or any of its Subsidiaries in connection with a Disposition or the receipt of Extraordinary Receipts consisting of insurance proceeds or condemnation awards that are required to be used to prepay the Obligations pursuant to Section 2.05(c)(i) or Section 2.05(c)(iv), as the case may be, up to (A) $250,000 in the aggregate in any Fiscal Year of the Net Cash Proceeds from all such Dispositions and Extraordinary Receipts (other than Retained Insurance Proceeds) and (B) 100% of Extraordinary Receipts consisting of the Retained Insurance Proceeds, in each case, shall not be required to be so used to prepay the Obligations to the extent that such Net Cash Proceeds are used (x) in the case of Net Cash Proceeds constituting insurance proceeds received from Scottsdale, Hartford, AIG or Traveler’s in connection with the Oracle Litigation, to be deposited into the Blocked Collection Account and available to be used by the Loan Parties and their Subsidiaries for liquidity and general working capital purposes (such amounts described in this clause (x) shall be referred to as “ Retained Insurance Proceeds ”; provided , that Retained Insurance Proceeds shall not include Excluded Hartford Insurance Proceeds) or (y) in the case of all other Net Cash Proceeds described above, to replace, repair or restore properties or assets (other than current assets) used in such Person’s business, provided that, (A) no Default or Event of Default has occurred and is continuing on the date such Person receives such Net Cash Proceeds, (B) the Administrative Borrower delivers a certificate to the Administrative Agent within 5 days after such Disposition or loss, destruction or taking or receipt of Extraordinary Receipts, as the case may be, stating that such Net Cash Proceeds shall (x) in the case of Net Cash Proceeds constituting Retained Insurance Proceeds, be available to be used by the Loan Parties and their Subsidiaries for liquidity and general working capital purposes or (y) in the case of all other Net Cash Proceeds described above, used to replace, repair or restore properties or assets used in such Person’s business within a period specified in such certificate not to exceed 90 days (or, if a binding agreement relating to such reinvestment has been executed within such 90 day period but such reinvestment has not closed, an additional 180 days following such 90 day period) after the date of receipt of such Net Cash Proceeds (which certificate shall set forth estimates of the Net Cash Proceeds to be so expended), (C) such Net Cash Proceeds are deposited in an operating account of a Loan Party that is subject to a Control Agreement (or, in the case of Retained Insurance Proceeds, the Blocked Collection Account), and (D) upon the earlier of (1) the expiration of the period specified in the relevant certificate furnished to the Administrative Agent pursuant to clause (B) above or (2) the occurrence and continuance of an Event of Default, such Net Cash Proceeds, if not theretofore so used, shall be used to prepay the outstanding Obligations in accordance with Section 2.05(c)(i) or Section 2.05(c)(iv) as applicable.
 
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(vi)             Concurrently with the delivery to the Agents and the Lenders of unaudited quarterly financial statements pursuant to Section 7.01(a)(ii) for each fiscal quarter of the Parent and its Subsidiaries, commencing with the delivery to the Agents and the Lenders of the financial statements for the fiscal quarter ended March 31, 2017 or, if such financial statements are not delivered to the Agents and the Lenders on the date such statements are required to be delivered pursuant to Section 7.01(a)(ii), on the date such statements are required to be delivered to the Agents and the Lenders pursuant to Section 7.01(a)(ii), the Borrowers shall prepay the outstanding principal amount of the Loans in accordance with Section 2.05(d) in an amount equal to 25% of the Excess Cash Flow of the Parent and its Subsidiaries for such fiscal quarter.
 
(d)               Application of Payments . Each prepayment pursuant to subsections (c)(i), (c)(ii), (c)(iii), (c)(iv) and (c)(vi) above shall be applied to the Term Loan, until paid in full. Each such prepayment of the Term Loan shall be applied against the remaining installments of principal of the Term Loan in the inverse order of maturity. A payment on the Final Maturity Date is an installment. Notwithstanding the foregoing, after the occurrence and during the continuance of an Event of Default, if the Administrative Agent has been directed by the Origination Agent or the Required Lenders, to apply payments in respect of any Obligations in accordance with Section 4.03(b), prepayments required under Section 2.05(c) shall be applied in the manner set forth in Section 4.03(b).
 
(e)                Interest and Fees . Any prepayment made pursuant to this Section 2.05 shall be accompanied by (i) accrued interest on the principal amount being prepaid to the date of prepayment and (ii) the Applicable Premium payable in connection with such prepayment of the Loans to the extent required under Section 2.06(b).
 
(f)                Cumulative Prepayments . Except as otherwise expressly provided in this Section 2.05, payments with respect to any subsection of this Section 2.05 are in addition to payments made or required to be made under any other subsection of this Section 2.05.
 
(g)               Waivable Mandatory Prepayment . Anything contained herein to the contrary notwithstanding, in the event the Borrowers are required to make any mandatory prepayment (a “ Waivable Mandatory Prepayment ”) of the Term Loans, two (2) Business Days prior to the date (the “ Required Prepayment Date ”) on which the Borrowers are required to make such Waivable Mandatory Prepayment, the Administrative Borrower shall notify the Administrative Agent of the amount of such prepayment in writing, and the Administrative Agent will promptly thereafter notify each Lender holding an outstanding Term Loans of the amount of such Lender’s Pro Rata Share of such Waivable Mandatory Prepayment and such Lender’s option to refuse all or any portion of such amount. Each such Lender may exercise such option by giving written notice to the Administrative Borrower and the Administrative Agent of its election to do so one (1) Business Day prior to the Required Prepayment Date (it being understood that any Lender which does not notify the Administrative Borrower and the Administrative Agent of its election to exercise such option on or before the Required Prepayment Date shall be deemed to have elected, as of such date, not to exercise such option). On the Required Prepayment Date, the Borrowers shall pay to the Administrative Agent the amount of the Waivable Mandatory Prepayment, which amount shall be applied (i) in an amount equal to that portion of the Waivable Mandatory Prepayment payable to those Lenders that have elected not to exercise such option or that have elected to exercise such option in part (and, in the case of any Lender that has elected to exercise such option in part, only that portion of such payment for which such Lender has not made such election), to prepay the Term Loans of such Lenders, and (ii) to the extent of any excess, to the Borrowers.
 
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Section 2.06        Fees .
 
(a)                Fee Letters . As and when due and payable under the terms thereof, the Borrowers shall pay the fees and expenses set forth in the Commitment Fee Letter, the Fee Letter and the Agent Fee Letter.
 
(b)               Applicable Premium .
 
(i)                 Upon the occurrence of an Applicable Premium Trigger Event, the Borrowers shall pay to the Administrative Agent, for the account of the Lenders in accordance with their Pro Rata Shares, the Applicable Premium.
 
(ii)               Any Applicable Premium payable in accordance with this Section 2.06(b) shall be presumed to be equal to the liquidated damages sustained by the Lenders as the result of the occurrence of the Applicable Premium Trigger Event and the Loan Parties agree that it is reasonable under the circumstances currently existing. THE LOAN PARTIES EXPRESSLY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING APPLICABLE PREMIUM IN CONNECTION WITH ANY ACCELERATION.
 
(iii)             The Loan Parties expressly agree that: (A) the Applicable Premium is reasonable and is the product of an arm’s length transaction between sophisticated business people, ably represented by counsel; (B) the Applicable Premium shall be payable notwithstanding the then prevailing market rates at the time payment is made; (C) there has been a course of conduct between the Lenders and the Loan Parties giving specific consideration in this transaction for such agreement to pay the Applicable Premium; (D) the Loan Parties shall be estopped hereafter from claiming differently than as agreed to in this paragraph; (E) their agreement to pay the Applicable Premium is a material inducement to Lenders to provide the Commitments and make the Loans, and (F) the Applicable Premium represents a good faith, reasonable estimate and calculation of the lost profits or damages of the Agents and the Lenders and that it would be impractical and extremely difficult to ascertain the actual amount of damages to the Agents and the Lenders or profits lost by the Agents and the Lenders as a result of such Applicable Premium Trigger Event.
 
(iv)             Nothing contained in this Section 2.06(b) shall permit any prepayment of the Loans or reduction of the Commitments not otherwise permitted by the terms of this Agreement or any other Loan Document.
 
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(c)                Delayed Draw A Term Loan Commitment Unused Line Fee . From and after the Effective Date and until the Delayed Draw A Term Loan Commitment Termination Date, the Borrowers shall pay to the Administrative Agent, for the benefit of the Lenders in accordance with their Pro Rata Shares, monthly in arrears on the first Business Day of each month commencing July 1, 2016, an unused line fee (the “ Delayed Draw A Unused Line Fee ”), which shall accrue at the rate per annum of 15.00% on the undrawn amount, if any, of the Total Delayed Draw A Term Loan Commitment.
 
(d)               Delayed Draw B Term Loan Commitment Unused Line Fee . From and after the Effective Date and until the Delayed Draw B Term Loan Commitment Termination Date, the Borrowers shall pay to the Administrative Agent, for the benefit of the Lenders in accordance with their Pro Rata Shares, monthly in arrears on the first Business Day of each month commencing July 1, 2016, an unused line fee (the “ Delayed Draw B Unused Line Fee ”), which shall accrue at the rate per annum of 5.00% on the undrawn amount, if any, of the Total Delayed Draw B Term Loan Commitment.
 
Section 2.07        [Intentionally Omitted] .
 
Section 2.08        [Intentionally Omitted] .
 
Section 2.09        Taxes .
 
(a)                Any and all payments by or on account of any Loan Party hereunder or under any other Loan Document shall be made free and clear of and without deduction for any and all Taxes, except as required by applicable law. If any Loan Party shall be required to deduct any Taxes from or in respect of any sum payable hereunder to any Secured Party, (i) the applicable Withholding Agent shall make such deductions and (ii) the applicable Withholding Agent shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law and (iii) if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan Party shall be increased by the amount (an “Additional Amount”) necessary such that after making all required deductions for Indemnified Taxes (including deductions for Indemnified Taxes applicable to additional sums payable under this Section 2.09) such Secured Party receives the amount equal to the sum it would have received had no such deductions for Indemnified Taxes been made.
 
(b)               In addition, each Loan Party agrees to pay to the relevant Governmental Authority in accordance with applicable law any Other Taxes. Each Loan Party shall deliver to each applicable Secured Party official receipts in respect of any Taxes or Other Taxes payable hereunder, or other documentary evidence reasonably satisfactory to such Secured Party, promptly after payment of such Taxes or Other Taxes.
 
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(c)                The Loan Parties hereby jointly and severally indemnify and agree to hold each Secured Party harmless from and against Indemnified Taxes and Other Taxes (including, without limitation, Indemnified Taxes and Other Taxes imposed on any amounts payable under this Section 2.09) paid by such Person, whether or not such Indemnified Taxes or Other Taxes were correctly or legally asserted. Such indemnification shall be paid within 10 days from the date on which any such Person makes written demand therefore specifying in reasonable detail the nature and amount of such Indemnified Taxes or Other Taxes.
 
(d)               Each Lender that is a U.S. Person shall deliver to the Administrative Borrower and the Agents on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Administrative Borrower or the Agents), two original executed copies of Internal Revenue Service Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax. Each Lender that is not a U.S. Person (a “ Non-U.S. Lender ”) agrees that it shall, no later than the Effective Date (or, in the case of a Lender which becomes a party hereto pursuant to Section 12.07 hereof after the Effective Date, promptly after the date upon which such Lender becomes a party hereto) deliver to the Administrative Borrower and the Agents two original properly completed and duly executed copy of either U.S. Internal Revenue Service Form W-8BEN, W-8BEN-E, W-8ECI or W-8IMY (accompanied by Internal Revenue Service Form W-8ECI, W-8BEN, W-8BEN-E, W-9, and/or other certification documents from each beneficial owner of the Obligations, as applicable) or any subsequent versions thereof or successors thereto, in each case claiming complete exemption from, or reduced rate of, U.S. Federal withholding tax on payments of interest hereunder. In addition, in the case of a Non-U.S. Lender (or its beneficial owners) claiming exemption from U.S. Federal withholding tax under Section 871(h) or 881(c) of the Internal Revenue Code, such Non-U.S. Lender (or its beneficial owners, as applicable) hereby represents to the Agents and the Borrowers that such Non-U.S. Lender (or its beneficial owners, as applicable) is not a bank for purposes of Section 881(c) of the Internal Revenue Code, is not a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of the Parent and is not a controlled foreign corporation related to the Parent (within the meaning of Section 864(d)(4) of the Internal Revenue Code), and such Non-U.S. Lender agrees that it shall promptly notify the Agents in the event any such representation is no longer accurate. Such forms shall be delivered by each Non-U.S. Lender on or before the date it becomes a party to this Agreement and on or before the date, if any, such Non-U.S. Lender changes its applicable lending office by designating a different lending office (a “ New Lending Office ”). In addition, such Lender or Agent shall deliver such forms within 20 days after receipt of a written request therefor from the Administrative Borrower, any Agent or the assigning Lender, as applicable. Notwithstanding any other provision of this Section 2.09, a Non-U.S. Lender shall not be required to deliver any form pursuant to this Section 2.09(c) that such Non-U.S. Lender is not legally able to deliver.
 
(e)                Each Secured Party shall use reasonable efforts (consistent with legal and regulatory restrictions) to file any certificate or document reasonably requested in writing by the Administrative Borrower or, if such Secured Party is claiming any indemnity payment or additional payment amounts payable pursuant to this Section 2.09, to change the jurisdiction of its applicable lending office if the making of such a filing or change would avoid the need for or reduce the amount of any such withholding, indemnity payment or additional amount that may thereafter accrue, would not require such Secured Party to disclose any information such Secured Party deems confidential and would not, in the sole determination of such Secured Party, be otherwise disadvantageous to such Secured Party.
 
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(f)                If any Secured Party shall become aware that it is entitled to claim a refund from a Governmental Authority in respect of Taxes or Other Taxes with respect to which any Loan Party has made an indemnity payment or paid additional amounts, pursuant to this Section 2.09, it shall promptly notify the Administrative Borrower of the availability of such refund claim and shall, within 30 days after receipt of a request by the Administrative Borrower, make a claim to such Governmental Authority for such refund at the Loan Parties’ expense. If any Secured Party receives a refund (including pursuant to a claim for refund made pursuant to the preceding sentence) in respect of any Taxes or Other Taxes with respect to which any Loan Party has made an Indemnity payment or paid additional amounts pursuant to this Section 2.09, it shall within 30 days from the date of such receipt pay over such refund to the Administrative Borrower, net of all out-of-pocket expenses of such Secured Party.
 
(g)               If a payment made to a Lender or any Agent under any Loan Document would be subject to U.S. Federal withholding tax imposed by FATCA if such Lender or Agent were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Internal Revenue Code, as applicable), such Lender or Agent shall deliver to the Administrative Borrower and the Agents at the time or times prescribed by law and at such time or times reasonably requested by the Administrative Borrower or the Agents such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue Code) and such additional documentation reasonably requested by the Administrative Borrower or the Agents as may be necessary for the Administrative Borrower and the Agents to comply with their obligations under FATCA and to determine that such Lender or Agent has complied with its obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (g), “FATCA” shall include any amendments made to FATCA after the date of this Agreement. Any forms, certifications or other documentation under this clause (g) shall be delivered by each Lender and each Agent.
 
(h)               Each Lender agrees that if any form or certification it previously delivered expires or becomes inaccurate in any respect, it shall update such form or certification or promptly notify the Administrative Borrower and the Agents in writing of its legal inability to do so.
 
(i)                 The obligations of the Loan Parties under this Section 2.09 shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.
 
Section 2.10        Increased Costs and Reduced Return .  (a) If any Secured Party shall have determined that any Change in Law shall (i) subject such Secured Party to any Taxes with respect to this Agreement or any Loan made by such Agent or such Lender, hereunder (except for (i) Indemnified Taxes, (ii) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes or (iii) Connection Income Taxes), (ii) impose, modify or deem applicable any reserve, special deposit or similar requirement against any Loan or against assets of or held by, or deposits with or for the account of, or credit extended by, such Secured Party or any Person controlling such Secured Party or (iii) impose on such Secured Party or any Person controlling such Secured Party any other condition regarding this Agreement or any Loan, and the result of any event referred to in clauses (i), (ii) or (iii) above shall be to increase the cost to such Secured Party of making any Loan, or agreeing to make any Loan, or to reduce any amount received or receivable by such Secured Party hereunder, then, upon demand by such Secured Party, the Borrowers shall pay to such Secured Party such additional amounts as will compensate such Secured Party for such increased costs or reductions in amount.
 
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(b)               If any Secured Party shall have determined that any Change in Law either (i) affects or would affect the amount of capital required or expected to be maintained by such Secured Party or any Person controlling such Secured Party, and such Secured Party determines that the amount of such capital is increased as a direct or indirect consequence of any Loans made or maintained, such Secured Party’s or such other controlling Person’s other obligations hereunder, or (ii) has or would have the effect of reducing the rate of return on such Secured Party’s or such other controlling Person’s capital to a level below that which such Secured Party or such controlling Person could have achieved but for such circumstances as a consequence of any Loans made or maintained, or any agreement to make Loans, or such Secured Party’s or such other controlling Person’s other obligations hereunder (in each case, taking into consideration, such Secured Party’s or such other controlling Person’s policies with respect to capital adequacy), then, upon demand by such Secured Party, the Borrowers shall pay to such Secured Party from time to time such additional amounts as will compensate such Secured Party for such cost of maintaining such increased capital or such reduction in the rate of return on such Secured Party’s or such other controlling Person’s capital.
 
(c)                All amounts payable under this Section 2.10 shall bear interest from the date that is 10 days after the date of demand by any Secured Party until payment in full to such Secured Party at the rate applicable to the Loans. A certificate of such Secured Party claiming compensation under this Section 2.10, specifying the event herein above described and the nature of such event shall be submitted by such Secured Party to the Administrative Borrower, setting forth the additional amount due and an explanation of the calculation thereof, and such Secured Party’s reasons for invoking the provisions of this Section 2.10, and shall be final and conclusive absent manifest error.
 
(d)               Failure or delay on the part of any Lender to demand compensation pursuant to the foregoing provisions of this Section 2.10 shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrowers shall not be required to compensate a Lender pursuant to the foregoing provisions of this Section 2.10 for any increased costs incurred or reductions suffered more than nine months prior to the date that such Lender notifies the Administrative Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).
 
(e)                The obligations of the Loan Parties under this Section 2.10 shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.
 
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ARTICLE III

INTENTIONALLY OMITTED
 
ARTICLE IV

APPLICATION OF PAYMENTS; DEFAULTING LENDERS;
JOINT AND SEVERAL LIABILITY OF BORROWERS
 
Section 4.01        Payments; Computations and Statements . (a) The Borrowers will make each payment under this Agreement not later than 12:00 noon (New York City time) on the day when due, in lawful money of the United States of America and in immediately available funds, to the Administrative Agent’s Account. Any payments received by the Administrative Agent after 12:00 noon (New York City time) on any Business Day may (in the Administrative Agent’s sole discretion) be deemed received on the next succeeding Business Day. All payments shall be made by the Borrowers without set-off, counterclaim, recoupment, deduction or other defense to the Agents and the Lenders. Except as provided in Section 2.02, after receipt, the Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal ratably to the Lenders in accordance with their Pro Rata Shares and like funds relating to the payment of any other amount payable to any Lender to such Lender, in each case to be applied in accordance with the terms of this Agreement, provided that the Administrative Agent will cause to be distributed all interest and fees received from or for the account of the Borrowers not less than once each month and in any event promptly after receipt thereof. The Lenders and the Borrowers hereby authorize the Administrative Agent to, and the Administrative Agent will, from time to time at the direction of the Origination Agent or the Required Lenders, charge the Loan Account of the Borrowers with any amount due and payable by the Borrowers under any Loan Document. Each of the Lenders and the Borrowers agrees that the Administrative Agent shall have the right to make such charges whether or not any Default or Event of Default shall have occurred and be continuing or whether any of the conditions precedent in Section 5.02 have been satisfied. Any amount charged to the Loan Account of the Borrowers shall be deemed an Obligation. Whenever any payment to be made under any such Loan Document shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall in such case be included in the computation of interest or fees, as the case may be, provided that, if such extension would cause any such payment to be made in the next succeeding calendar month, such payment shall be made on the immediately preceding Business Day. All computations of fees shall be made by the Administrative Agent on the basis of a year of 360 days for the actual number of days. Each determination by the Administrative Agent of an interest rate or fees hereunder shall be conclusive and binding for all purposes in the absence of manifest error.
 
(b)               The Administrative Agent shall provide the Administrative Borrower, at or around the end of each calendar month if there is activity during such month or upon the reasonable written request of the Administrative Borrower, a summary statement (in the form from time to time used by the Administrative Agent) of the opening and closing daily balances in the Loan Account of the Borrowers during such month, the amounts and dates of all Loans made to the Borrowers during such month, the amounts and dates of all payments on account of the Loans to the Borrowers during such month and the Loans to which such payments were applied, the amount of interest accrued on the Loans to the Borrowers during such month, and the amount and nature of any charges to the Loan Account made during such month on account of fees, commissions, expenses and other Obligations. All entries on any such statement shall be presumed to be correct and, 30 days after the same is sent, shall be final and conclusive absent manifest error. The Administrative Agent shall not be liable for the failure to provide notice under this Section 4.01.
 
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Section 4.02        Sharing of Payments . Except as provided in Section 2.02 hereof or with respect to any payments made pursuant to (or in connection with or related to) the Commitment Fee Letter, if any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of any Obligation in excess of its ratable share of payments on account of similar obligations obtained by all the Lenders, such Lender shall forthwith purchase from the other Lenders such participations in such similar obligations held by them as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them; provided , however , that (a) if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each Lender shall be rescinded and each Lender shall repay to the purchasing Lender the purchase price to the extent of such recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (i) the amount of such Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid by the purchasing Lender in respect of the total amount so recovered and (b) the provisions of this Section shall not be construed to apply to (i) any payment made by the Borrowers pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender), or (ii) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans, other than to any Loan Party or any Subsidiary thereof (as to which the provisions of this Section shall apply). The Borrowers agree that any Lender so purchasing a participation from another Lender pursuant to this Section may, to the fullest extent permitted by law, exercise all of its rights (including the Lender’s right of set-off) with respect to such participation as fully as if such Lender were the direct creditor of the Borrowers in the amount of such participation.
 
Section 4.03        Apportionment of Payments .  Subject to Section 2.02 hereof and to any written agreement among the Agents and/or the Lenders:
 
(a)                All payments of principal and interest in respect of outstanding Loans, all payments of fees (other than the fees set forth in Section 2.06 hereof to the extent set forth in any written agreement among the Agents and the Lenders) and all other payments in respect of any other outstanding Obligations, shall be allocated by the Administrative Agent among such of the Lenders as are entitled thereto, in proportion to their respective Pro Rata Shares or otherwise as provided herein or, in respect of payments not made on account of Loans, as designated by the Person making payment when the payment is made.
 
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(b)               After the occurrence and during the continuance of an Event of Default, the Administrative Agent shall, upon the direction of the Origination Agent or the Required Lenders, apply all payments in respect of any Obligations, including without limitation, all proceeds of Collateral, subject to the provisions of this Agreement, (i)  first , ratably to pay the outstanding Obligations in respect of any fees (other than the Specified Fees), expense reimbursements, indemnities and other amounts then due and payable to the Agents until paid in full; (ii)  second , to pay accrued but unpaid interest then due and payable in respect of the Origination Agent Advances until paid in full; (iii)  third , to pay outstanding principal of the Origination Agent Advances until paid in full; (iv)  fourth , ratably to pay the outstanding Obligations in respect of any fees (other than any Applicable Premium), expense reimbursements, indemnities and other amounts then due and payable to the Term Loan Lenders until paid in full; (v)  fifth , ratably to pay accrued but unpaid interest then due and payable in respect of the Term Loan until paid in full; (vi)  sixth , ratably to pay outstanding principal of the Term Loan (including the Term Loan PIK Amount) until paid in full; (vii) seventh , ratably to pay the outstanding Obligations in respect of any Applicable Premium then due and payable to the Lenders until paid in full; (viii) eighth , to the ratable payment of all other outstanding Obligations (other than the Specified Fees) then due and payable until paid in full, (ix) ninth , to the ratable payment of the Specified Fees then due and payable, and (x) tenth , any remainder, to the Administrative Borrower or as a court of competent jurisdiction may direct. Notwithstanding the forgoing, the Administrative Agent shall not be directed by the Required Lenders to not pay the fees and expenses under the first clause above.
 
(c)                For purposes of Section 4.03(b) (other than clause (viii) thereof), “paid in full” means payment in cash (except as otherwise expressly provided in the Loan Documents) of all amounts (other than Contingent Indemnity Obligations) owing under the Loan Documents in accordance with the terms thereof, including loan fees, service fees, professional fees, interest (and specifically including interest accrued after the commencement of any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements, whether or not same would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding, except to the extent that default or overdue interest (but not any other interest) and loan fees, each arising from or related to a default, are disallowed in any Insolvency Proceeding; provided , however , that for the purposes of clause (viii), “paid in full” means payment in cash (except as otherwise expressly provided in the Loan Documents) of all amounts (other than Contingent Indemnity Obligations) owing under the Loan Documents in accordance with the terms thereof, including loan fees, service fees, professional fees, interest (and specifically including interest accrued after the commencement of any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements, whether or not the same would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding.
 
(d)               In the event of a direct conflict between the priority provisions of this Section 4.03 and other provisions contained in any other Loan Document, it is the intention of the parties hereto that both such priority provisions in such documents shall be read together and construed, to the fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 4.03 shall control and govern.
 
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Section 4.04        Defaulting Lenders . Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by applicable law:
 
(a)                Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in Section 12.02.
 
(b)               The Administrative Agent shall not be obligated to transfer to such Defaulting Lender any payments made by any Borrower to the Administrative Agent for such Defaulting Lender’s benefit, and, in the absence of such transfer to such Defaulting Lender, the Administrative Agent shall transfer any such payments to each other non-Defaulting Lender ratably in accordance with their Pro Rata Shares (without giving effect to the Pro Rata Shares of such Defaulting Lender) (but only to the extent that such Defaulting Lender’s Loans were funded by the other Lenders) or, if so directed in writing by the Administrative Borrower and if no Default or Event of Default has occurred and is continuing (and to the extent such Defaulting Lender’s Loans were not funded by the other Lenders), retain the same to be re-advanced to the Borrowers as if such Defaulting Lender had made such Loans to the Borrowers. Subject to the foregoing, the Administrative Agent may hold and, in its discretion, re-lend to the Borrowers for the account of such Defaulting Lender the amount of all such payments received and retained by the Administrative Agent for the account of such Defaulting Lender.
 
(c)                Any such failure to fund by any Defaulting Lender shall constitute a material breach by such Defaulting Lender of this Agreement and shall entitle the Borrowers to replace the Defaulting Lender with one or more substitute Lenders, and the Defaulting Lender shall have no right to refuse to be replaced hereunder. Notice to replace the Defaulting Lender shall be in writing and shall specify an effective date for such replacement, which date shall not be later than 15 Business Days after the date such notice is given. Prior to the effective date of such replacement, the Defaulting Lender shall execute and deliver an Assignment and Acceptance, subject only to the Defaulting Lender being repaid its share of the outstanding Obligations without any premium or penalty of any kind whatsoever. If the Defaulting Lender shall refuse or fail to execute and deliver any such Assignment and Acceptance prior to the effective date of such replacement, the Defaulting Lender shall be deemed to have executed and delivered such Assignment and Acceptance. The replacement of any Defaulting Lender shall be made in accordance with the terms of Section 12.07.
 
(d)               The operation of this Section shall not be construed to increase or otherwise affect the Commitments of any Lender, to relieve or excuse the performance by such Defaulting Lender or any other Lender of its duties and obligations hereunder, or to relieve or excuse the performance by any Borrower of its duties and obligations hereunder to the Administrative Agent or to the Lenders other than such Defaulting Lender.
 
(e)                This Section shall remain effective with respect to such Lender until either (i) the Obligations under this Agreement shall have been declared or shall have become immediately due and payable or (ii) the non-Defaulting Lenders, the Agents, and the Borrowers shall have waived such Defaulting Lender’s default in writing, and the Defaulting Lender makes its Pro Rata Share of the applicable defaulted Loans and pays to the Agents all amounts owing by such Defaulting Lender in respect thereof; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrowers while such Lender was a Defaulting Lender; provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from such Lender’s having been a Defaulting Lender.
 
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Section 4.05        Administrative Borrower; Joint and Several Liability of the Borrowers .
 
(a)                Each Borrower hereby irrevocably appoints the Parent as the borrowing agent and attorney-in-fact for the Borrowers (the “ Administrative Borrower ”) which appointment shall remain in full force and effect unless and until the Agents shall have received prior written notice signed by all of the Borrowers that such appointment has been revoked and that another Borrower has been appointed Administrative Borrower. Each Borrower hereby irrevocably appoints and authorizes the Administrative Borrower (i) to provide to the Agents and receive from the Agents all notices with respect to Loans obtained for the benefit of any Borrower and all other notices and instructions under this Agreement and (ii) to take such action as the Administrative Borrower deems appropriate on its behalf to obtain Loans and to exercise such other powers as are reasonably incidental thereto to carry out the purposes of this Agreement. It is understood that the handling of the Loan Account and Collateral of the Borrowers in a combined fashion, as more fully set forth herein, is done solely as an accommodation to the Borrowers in order to utilize the collective borrowing powers of the Borrowers in the most efficient and economical manner and at their request, and that neither the Agents nor the Lenders shall incur liability to the Borrowers as a result hereof. Each Borrower expects to derive benefit, directly or indirectly, from the handling of the Loan Account and the Collateral in a combined fashion since the successful operation of each Borrower is dependent on the continued successful performance of the integrated group.
 
(b)               Each Borrower hereby accepts joint and several liability hereunder and under the other Loan Documents in consideration of the financial accommodations to be provided by the Agents and the Lenders under this Agreement and the other Loan Documents, for the mutual benefit, directly and indirectly, of each of the Borrowers and in consideration of the undertakings of the other Borrowers to accept joint and several liability for the Obligations. Each of the Borrowers, jointly and severally, hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Borrowers, with respect to the payment and performance of all of the Obligations (including, without limitation, any Obligations arising under this Section 4.05), it being the intention of the parties hereto that all of the Obligations shall be the joint and several obligations of each of the Borrowers without preferences or distinction among them. If and to the extent that any of the Borrowers shall fail to make any payment with respect to any of the Obligations as and when due or to perform any of the Obligations in accordance with the terms thereof, then in each such event, the other Borrowers will make such payment with respect to, or perform, such Obligation. Subject to the terms and conditions hereof, the Obligations of each of the Borrowers under the provisions of this Section 4.05 constitute the absolute and unconditional, full recourse Obligations of each of the Borrowers, enforceable against each such Person to the full extent of its properties and assets, irrespective of the validity, regularity or enforceability of this Agreement, the other Loan Documents or any other circumstances whatsoever.
 
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(c)                The provisions of this Section 4.05 are made for the benefit of the Secured Parties, and may be enforced by them from time to time against any or all of the Borrowers as often as occasion therefor may arise and without requirement on the part of the Secured Parties first to marshal any of its or their claims or to exercise any of its or their rights against any of the other Borrowers or to exhaust any remedies available to them against any of the other Borrowers or to resort to any other source or means of obtaining payment of any of the Obligations hereunder or to elect any other remedy. The provisions of this Section 4.05 shall remain in effect until all of the Obligations shall have been paid in full or otherwise fully satisfied.
 
(d)               Each of the Borrowers hereby agrees that it will not enforce any of its rights of contribution or subrogation against the other Borrowers with respect to any liability incurred by it hereunder or under any of the other Loan Documents, any payments made by it to the Agents or the Lenders with respect to any of the Obligations or any Collateral, until the Termination Date shall have occurred. Any claim which any Borrower may have against any other Borrower with respect to any payments to the Agents or the Lenders hereunder or under any other Loan Documents are hereby expressly made subordinate and junior in right of payment, without limitation as to any increases in the Obligations arising hereunder or thereunder, to the prior payment in full in cash (except as otherwise expressly set forth in the Loan Documents) of the Obligations.
 
ARTICLE V

CONDITIONS TO LOANS
 
Section 5.01        Conditions Precedent to Effectiveness . This Agreement shall become effective as of the Business Day (the “ Effective Date ”) when each of the following conditions precedent shall have been satisfied in a manner reasonably satisfactory to the Agents:
 
(a)                Payment of Fees, Etc . The Borrowers shall have paid on or before the Effective Date all fees, costs and expenses then due and payable pursuant to Section 2.06 and Section 12.04.
 
(b)               Representations and Warranties; No Event of Default . The following statements shall be true and correct: (i) the representations and warranties contained in Article VI and in each other Loan Document, certificate or other writing delivered to any Secured Party pursuant hereto or thereto on or prior to the Effective Date are true and correct on and as of the Effective Date as though made on and as of such date, except to the extent that any such representation or warranty expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct on and as of such earlier date) and (ii) no Default or Event of Default shall have occurred and be continuing on the Effective Date or would result from this Agreement or the other Loan Documents becoming effective on the Effective Date in accordance with its or their respective terms.
 
(c)                Notices . The Administrative Agent shall have received a Notice of Borrowing pursuant to Section 2.02 hereof.
 
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(d)               Legality . The making of the initial Loans shall not contravene any law, rule or regulation applicable to any Secured Party.
 
(e)                Delivery of Documents . The Collateral Agent and the Origination Agent shall have received on or before the Effective Date the following, each in form and substance reasonably satisfactory to the Origination Agent and the Collateral Agent, with any originals being delivered to the Collateral Agent after the Effective Date and, unless indicated otherwise, dated the Effective Date and, if applicable, duly executed by the Persons party thereto:
 
(i)                 a Security Agreement, together with the original stock certificates representing all of the Equity Interests and all promissory notes required to be pledged thereunder, accompanied by undated stock powers executed in blank and other proper instruments of transfer;
 
(ii)               evidence satisfactory to the Origination Agent and the Collateral Agent of the filing of appropriate financing statements on Form UCC-1 in such office or offices as may be necessary or, in the opinion of the Collateral Agent, desirable to perfect the security interests purported to be created by each Security Agreement;
 
(iii)             the results of searches for any effective UCC financing statements, tax Liens or judgment Liens filed against any Loan Party or its property, which results shall not show any such Liens (other than Permitted Liens acceptable to the Collateral Agent (acting upon the direction of the Required Lenders));
 
(iv)             a Perfection Certificate;
 
(v)               the Disbursement Letter;
 
(vi)             the Fee Letter;
 
(vii)           the Commitment Fee Letter;
 
(viii)         the Cooperation Agreement;
 
(ix)             the Agent Fee Letter;
 
(x)               a certificate of an Authorized Officer of each Loan Party, certifying (A) as to copies of the Governing Documents of such Loan Party, together with all amendments thereto (including, without limitation, a true and complete copy of the charter, certificate of formation, certificate of limited partnership or other publicly filed organizational document of each Loan Party certified as of a recent date not more than 30 days prior to the Effective Date by an appropriate official of the jurisdiction of organization of such Loan Party which shall set forth the same complete name of such Loan Party as is set forth herein and the organizational number of such Loan Party, if an organizational number is issued in such jurisdiction), (B) as to a copy of the resolutions or written consents of such Loan Party authorizing (1) the borrowings hereunder and the transactions contemplated by the Loan Documents to which such Loan Party is or will be a party, and (2) the execution, delivery and performance by such Loan Party of each Loan Document to which such Loan Party is or will be a party and the execution and delivery of the other documents to be delivered by such Person in connection herewith and therewith, (C) the names and true signatures of the representatives of such Loan Party authorized to sign each Loan Document (in the case of a Borrower, including, without limitation, Notices of Borrowing and all other notices under this Agreement and the other Loan Documents) to which such Loan Party is or will be a party and the other documents to be executed and delivered by such Loan Party in connection herewith and therewith, together with evidence of the incumbency of such authorized officers and (D) as to the matters set forth in Section 5.01(b);
 
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(xi)             a certificate of the chief financial officer of the Parent attaching a copy of the Financial Statements and the Projections described in Section 6.01(g)(ii) hereof and certifying as to the compliance with the representations and warranties set forth in Section 6.01(g)(i) and Section 6.01(aa)(ii) and (D) certifying that immediately after giving effect to all Loans to be made on the Effective Date, (1) the Liquidity of the Parent and its Subsidiaries is not less than $14,000,000 and (2) except as described in Schedule 6.01(f) and Schedule 7.01(c)(ii), all liabilities of the Parent and its Subsidiaries on a consolidated basis are current in all material respects;
 
(xii)           a certificate of the chief financial officer of the Parent, certifying, that immediately after giving effect to the Loans made on the Effective Date, the Parent and its Subsidiaries on a consolidated basis are Solvent on the Effective Date;
 
(xiii)         a certificate of an Authorized Officer of the Administrative Borrower certifying that (A) the attached copies of the Material Contracts listed on Schedule 6.01(v) as in effect on the Effective Date are true, complete and correct copies thereof and (B) such agreements remain in full force and effect and that to the Administrative Borrower’s knowledge, none of the Loan Parties has breached any of its material obligations under such agreements;
 
(xiv)         a certificate of the appropriate official(s) of the jurisdiction of organization and, except to the extent such failure to be so qualified could not reasonably be expected to have a Material Adverse Effect, each jurisdiction of foreign qualification of each Loan Party certifying as of a recent date not more than 30 days prior to the Effective Date as to the subsistence in good standing of such Loan Party in such jurisdictions, together with written confirmation (where available) on the Effective Date from such official(s) as to such matters;
 
(xv)           an opinion of (A) Wilson Sonsini Goodrich & Rosati, counsel to the Loan Parties, and (B) Greenberg Traurig LLP, local Nevada counsel to the Loan Parties, in each case, as to such matters as the Origination Agent and the Collateral Agent may reasonably request;
 
(xvi)         evidence of the insurance coverage required by Section 7.01(h), with such endorsements as to the named insureds or loss payees thereunder as the Origination Agent and the Collateral Agent may request and providing that such policy may be terminated or canceled (by the insurer or the insured thereunder) only upon 30 days’ prior written notice to the Collateral Agent and each such named insured or loss payee, together with evidence of the payment of all premiums due in respect thereof for such period as the Origination Agent and the Collateral Agent may request;
 
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(xvii)       a landlord waiver, in form and substance reasonably satisfactory to the Origination Agent and the Collateral Agent and which may be included as a provision contained in the relevant Lease, executed by each landlord with respect to each of the Leases set forth on Schedule III to the Security Agreement;
 
(xviii)     evidence reasonably satisfactory to the Agents that a Process Agent has been properly appointed by each Loan Party in accordance with Section 12.10(b) ;
 
(xix)         all Control Agreements for the Cash Management Accounts listed on Schedule 8.01, each duly executed by, in addition to the applicable Loan Party, the applicable financial institution; and
 
(xx)                 such other agreements, instruments, approvals, opinions and other documents, each reasonably satisfactory to the Agents in form and substance, as any Agent may reasonably request prior to the Effective Date (including, without limitation, IRS form W-9s, W-8BENs, or such other tax form as may be applicable, tax identification numbers and addresses).
 
(f)                Material Adverse Effect . Except as described in Schedule 6.01(f) and Schedule 7.01(c)(ii), no event or development shall have occurred since December 31, 2014 which could reasonably be expected to have a Material Adverse Effect.
 
(g)               Approvals . All consents, authorizations and approvals of, and filings and registrations with, and all other actions in respect of, any Governmental Authority or other Person required in connection with the making of the Loans or the conduct of the Loan Parties’ business shall have been obtained and shall be in full force and effect.
 
(h)               Proceedings . All proceedings in connection with the making of the initial Loans and the other transactions contemplated by this Agreement and the other Loan Documents shall be satisfactory to the Origination Agent and its counsel.
 
(i)                 Management Reference Checks . The Origination Agent shall have received satisfactory reference checks for, and shall have had an opportunity to meet with, key management of each Loan Party, including, without limitation, Seth Ravin.
 
(j)                 Due Diligence . The Origination Agent shall have (i) completed its business, legal and collateral due diligence with respect to each Loan Party (including, without limitation, diligence with respect to the Oracle Litigation) and the results thereof shall be acceptable to the Origination Agent, in its sole and absolute discretion and (ii) received a quality of earnings report prepared by third party acceptable to the Origination Agent, the form and substance of which shall be satisfactory to the Origination Agent.
 
(k)               Intellectual Property Due Diligence Report . The Agents shall have received an intellectual property due diligence report from an independent consultant who is satisfactory to the Origination Agent, the form and substance of which shall be satisfactory to the Origination Agent.
 
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Section 5.02        Conditions Precedent to Loans made from Delayed Draw A Term Loan Commitments . The obligation of any Lender to make any Loan after the Effective Date pursuant to a Delayed Draw A Term Loan Commitment is subject to the fulfillment, in a manner reasonably satisfactory to the Agents, of each of the following conditions precedent:
 
(a)                Payment of Fees, Etc. The Borrowers shall have paid all fees, costs and expenses then due and payable by the Borrowers pursuant to this Agreement and the other Loan Documents, including, without limitation, Section 2.06 and Section 12.04 hereof.
 
(b)               Representations and Warranties; No Event of Default . The following statements shall be true and correct: (i) the representations and warranties of the Loan Parties contained in Article VI and in each other Loan Document, certificate or other writing delivered to any Secured Party pursuant hereto or thereto on or prior to the date of such Loan are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to materiality or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such date as though made on and as of such date, except to the extent that any such representation or warranty expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to materiality or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date), (ii) at the time of and immediately after giving effect to the making of such Loan and the application of the proceeds thereof, no Default or Event of Default has occurred and is continuing or would result from the making of the Loan to be made, on such date and (iii) the conditions set forth in this Section 5.02 have been satisfied as of the date of such request. The submission by the Administrative Borrower to the Administrative Agent of a Notice of Borrowing with respect to each such Loan, and the Borrowers’ acceptance of the proceeds of such Loan, shall be deemed to constitute a representation and warranty by the Administrative Borrower that the conditions specified in clauses (i) and (ii) of this paragraph have been satisfied on and as of the date of the applicable Loan.
 
(c)                Legality . The making of such Loan shall not contravene any law, rule or regulation applicable to any Secured Party.
 
(d)               Notices . The Administrative Agent shall have received a Notice of Borrowing in accordance with Section 2.02 hereof.
 
(e)                Oracle Litigation . The Agents shall have received a certificate of the chief financial officer of the Parent, in form and substance reasonably satisfactory to the Origination Agent, certifying that, as of such date, to the best of the Parent’s knowledge, the Threshold Amount does not exceed the Total Delayed Draw A Term Loan Commitment; provided , that if the Threshold Amount is less than the Total Delayed Draw A Term Loan Commitment, then the Borrowers shall direct that any proceeds of Term Loans made pursuant to the Delayed Draw A Term Loan Commitments in excess of the Threshold Amount are deposited into the Blocked Collection Account.
 
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(f)                Receipt of Documents . The Agents and their counsel shall have received:
 
(i)                 a certificate of an Authorized Officer of each Loan Party, certifying (A) either (x) as to copies of the Governing Documents of such Loan Party, together with all amendments thereto (including, without limitation, a true and complete copy of the charter, certificate of formation, certificate of limited partnership or other publicly filed organizational document of each Loan Party certified as of a recent date not more than 30 days prior to the date of such Loan by an appropriate official of the jurisdiction of organization of such Loan Party which shall set forth the same complete name of such Loan Party as is set forth herein and the organizational number of such Loan Party, if an organizational number is issued in such jurisdiction) or (y) that such Loan Party’s Governing Documents previously delivered to the Agents have not been amended or otherwise modified since the Effective Date (or such later date on which Governing Documents were previously delivered to the Agents), (B) either (x) as to a copy of the resolutions or written consents of such Loan Party authorizing (1) the borrowings hereunder and the transactions contemplated by the Loan Documents to which such Loan Party is or will be a party, and (2) the execution, delivery and performance by such Loan Party of each Loan Document to which such Loan Party is or will be a party and the execution and delivery of the other documents to be delivered by such Person in connection herewith and therewith or (y) that such Loan Party’s authorizing resolutions previously delivered to the Agents have not been rescinded, amended or otherwise modified since the Effective Date (or such later date on which authorizing resolutions were previously delivered to the Agents), (C) either (x) the names and true signatures of the representatives of such Loan Party authorized to sign each Loan Document (in the case of a Borrower, including, without limitation, Notices of Borrowing and all other notices under this Agreement and the other Loan Documents) to which such Loan Party is or will be a party and the other documents to be executed and delivered by such Loan Party in connection herewith and therewith, together with evidence of the incumbency of such authorized officers or (y) that the names and signatures on any incumbency certificates previously delivered to the Agents have not been amended or otherwise modified since the Effective Date (or such later date on which incumbency certificates were previously delivered to the Agents), and (D) as to the matters set forth in Section 5.02(b); and
 
(ii)               a certificate of the chief financial officer of the Parent certifying that, immediately after giving effect to all Loans to be made on such date, (1) the Liquidity of the Parent and its Subsidiaries is not less than the minimum required Liquidity permitted at such time pursuant to Section 7.03(b), (2) except as described in Schedule 6.01(f) and Schedule 7.01(c)(ii), all liabilities of the Parent and its Subsidiaries on a consolidated basis are current in all material respects and (3) the Loan Parties will be in pro forma compliance with the financial covenants set forth in Section 7.03, together with calculations demonstrating such compliance, in each case in form and substance reasonably satisfactory to the Origination Agent.
 
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Section 5.03        Conditions Precedent to Loans made from Delayed Draw B Term Loan Commitments . The obligation of any Lender to make any Loan after the Effective Date pursuant to a Delayed Draw B Term Loan Commitment is subject to the fulfillment, in a manner reasonably satisfactory to the Agents, of each of the following conditions precedent:
 
(a)                Payment of Fees, Etc. The Borrowers shall have paid all fees, costs and expenses then due and payable by the Borrowers pursuant to this Agreement and the other Loan Documents, including, without limitation, Section 2.06 and Section 12.04 hereof.
 
(b)               Representations and Warranties; No Event of Default . The following statements shall be true and correct: (i) the representations and warranties of the Loan Parties contained in Article VI and in each other Loan Document, certificate or other writing delivered to any Secured Party pursuant hereto or thereto on or prior to the date of such Loan are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to materiality or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such date as though made on and as of such date, except to the extent that any such representation or warranty expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to materiality or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date), (ii) at the time of and after giving effect to the making of such Loan and the application of the proceeds thereof, no Default or Event of Default has occurred and is continuing or would result from the making of the Loan to be made, on such date and (iii) the conditions set forth in this Section 5.03 have been satisfied as of the date of such request. The submission by the Administrative Borrower to the Administrative Agent of a Notice of Borrowing with respect to each such Loan, and the Borrowers’ acceptance of the proceeds of such Loan, shall be deemed to constitute a representation and warranty by the Administrative Borrower that the conditions specified in clauses (i) and (ii) of this paragraph have been satisfied on and as of the date of the applicable Loan.
 
(c)                Legality . The making of such Loan shall not contravene any law, rule or regulation applicable to any Secured Party.
 
(d)               Notices . The Administrative Agent shall have received a Notice of Borrowing pursuant to Section 2.02 hereof.
 
(e)                Delayed Draw A Term Loan Commitments . All Delayed Draw A Term Loan Commitments shall have been funded and all such Delayed Draw A Term Loan Commitments shall have been reduced to zero.
 
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(f)                Receipt of Documents . The Agents and their counsel shall have received:
 
(i)                 a certificate of an Authorized Officer of each Loan Party, certifying (A) either (x) as to copies of the Governing Documents of such Loan Party, together with all amendments thereto (including, without limitation, a true and complete copy of the charter, certificate of formation, certificate of limited partnership or other publicly filed organizational document of each Loan Party certified as of a recent date not more than 30 days prior to the date of such Loan by an appropriate official of the jurisdiction of organization of such Loan Party which shall set forth the same complete name of such Loan Party as is set forth herein and the organizational number of such Loan Party, if an organizational number is issued in such jurisdiction) or (y) that such Loan Party’s Governing Documents previously delivered to the Agents have not been amended or otherwise modified since the Effective Date (or such later date on which Governing Documents were previously delivered to the Agents), (B) either (x) as to a copy of the resolutions or written consents of such Loan Party authorizing (1) the borrowings hereunder and the transactions contemplated by the Loan Documents to which such Loan Party is or will be a party, and (2) the execution, delivery and performance by such Loan Party of each Loan Document to which such Loan Party is or will be a party and the execution and delivery of the other documents to be delivered by such Person in connection herewith and therewith or (y) that such Loan Party’s authorizing resolutions previously delivered to the Agents have not been rescinded, amended or otherwise modified since the Effective Date (or such later date on which authorizing resolutions were previously delivered to the Agents), (C) either (x) the names and true signatures of the representatives of such Loan Party authorized to sign each Loan Document (in the case of a Borrower, including, without limitation, Notices of Borrowing and all other notices under this Agreement and the other Loan Documents) to which such Loan Party is or will be a party and the other documents to be executed and delivered by such Loan Party in connection herewith and therewith, together with evidence of the incumbency of such authorized officers or (y) that the names and signatures on any incumbency certificates previously delivered to the Agents have not been amended or otherwise modified since the Effective Date (or such later date on which incumbency certificates were previously delivered to the Agents), and (D) as to the matters set forth in Section 5.03(b); and
 
(ii)               a certificate of the chief financial officer of the Parent certifying that, immediately after giving effect to all Loans to be made on such date, (1) the Liquidity of the Parent and its Subsidiaries is not less than $20,000,000, (2) except as described in Schedule 6.01(f) and Schedule 7.01(c)(ii), all liabilities of the Parent and its Subsidiaries on a consolidated basis are current in all material respects (3) the Loan Parties will be in pro forma compliance with the financial covenants set forth in Section 7.03, together with calculations demonstrating such compliance, and (iii) the Leverage Ratio of the Parent and its Subsidiaries is not greater than 2.50 to 1.00, together with calculations demonstrating such compliance, in each case in form and substance reasonably satisfactory to the Origination Agent; and
 
(g)               The Origination Agent shall have provided its prior written consent to the making of any such Loan.
 
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ARTICLE VI

REPRESENTATIONS AND WARRANTIES
 
Section 6.01        Representations and Warranties . Each Loan Party hereby represents and warrants to the Secured Parties as follows:
 
(a)                Organization, Good Standing, Etc . Each Loan Party (i) is a corporation, limited liability company or limited partnership duly organized, validly existing and in good standing under the laws of the state or jurisdiction of its organization, (ii) has all requisite corporate (or equivalent) power and authority to conduct its business as now conducted and as presently contemplated and, in the case of the Borrowers, to borrow the Loans hereunder, and to execute and deliver each Loan Document to which it is a party, and to consummate the transactions contemplated thereby, and (iii) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary, except (solely for the purposes of this subclause (iii)) where the failure to be so qualified and in good standing could reasonably be expected to have a Material Adverse Effect.
 
(b)               Authorization, Etc . The execution, delivery and performance by each Loan Party of each Loan Document to which it is or will be a party, (i) have been duly authorized by all necessary corporate (or equivalent) action, (ii) do not and will not contravene (A) any of its Governing Documents, (B) any applicable material Requirement of Law to the extent such contravention would adversely affect the material operations of the Borrowers or (C) any Contractual Obligation binding on or otherwise affecting it or any of its properties, (iii) do not and will not result in or require the creation of any Lien (other than pursuant to any Loan Document or any other Permitted Lien) upon or with respect to any of its properties, and (iv) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to its operations or any of its properties, except for any violation referred to in clause (ii)(C) or clause (iv) above which could not reasonably be expected to have a Material Adverse Effect.
 
(c)                Governmental Approvals . No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required in connection with the due execution, delivery and performance by any Loan Party of any Loan Document to which it is or will be a party other than filings and recordings with respect to Collateral to be made, or otherwise delivered to the Collateral Agent for filing or recordation, on the Effective Date.
 
(d)               Enforceability of Loan Documents . This Agreement is, and each other Loan Document to which any Loan Party is or will be a party, when executed and delivered by such Loan Party, will be, a legal, valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
 
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(e)                Capitalization . On the Effective Date, after giving effect to the transactions contemplated hereby to occur on the Effective Date, the authorized Equity Interests of the Parent and each of its Subsidiaries and the issued and outstanding Equity Interests of the Parent and each of its Subsidiaries are as set forth on Schedule 6.01(e). All of the issued and outstanding shares of Equity Interests of the Parent and each of its Subsidiaries have been validly issued and are fully paid and nonassessable, and, except as described on Schedule 6.01(e), the holders thereof are not entitled to any preemptive, first refusal or other similar rights. All Equity Interests of such Subsidiaries that are owned, directly or indirectly, by the Parent are free and clear of all Liens (other than Permitted Specified Liens). Except as described on Schedule 6.01(e), on the Effective Date, there are no outstanding debt or equity securities of the Parent or any of its Subsidiaries and no outstanding obligations of the Parent or any of its Subsidiaries convertible into or exchangeable for, or warrants, options or other rights for the purchase or acquisition from the Parent or any of its Subsidiaries, or other obligations of the Parent or any of its Subsidiaries to issue, directly or indirectly, any shares of Equity Interests of the Parent or any of its Subsidiaries.
 
(f)                Litigation . Except as described in Schedule 6.01(f), there is no pending or, to the best knowledge of any Loan Party, threatened (in writing) action, suit or proceeding by or against any Loan Party or any of its properties before any court or other Governmental Authority or any arbitrator that (i) if adversely determined, could reasonably be expected to have a Material Adverse Effect or (ii) relates to this Agreement or any other Loan Document or any transaction contemplated hereby or thereby.
 
(g)               Financial Statements .
 
(i)                 The Financial Statements, copies of which have been delivered to each Agent and each Lender, fairly present in all material respects the consolidated financial condition of the Parent and its Subsidiaries as at the respective dates thereof and the consolidated results of operations of the Parent and its Subsidiaries for the fiscal periods ended on such respective dates, all in accordance with GAAP. All material indebtedness and other liabilities (including, without limitation, Indebtedness, liabilities for taxes, long-term leases and other unusual forward or long-term commitments), direct or contingent, of the Parent and its Subsidiaries are set forth in the Financial Statements. Since December 31, 2014 no event or development has occurred that has had or could reasonably be expected to have a Material Adverse Effect, except as described in Schedule 6.01(f) and Schedule 7.01(c)(ii).
 
(ii)               The Parent has heretofore furnished to each Agent and each Lender (A) projected monthly balance sheets, income statements and statements of cash flows of the Parent and its Subsidiaries on a consolidated basis for the period from January 1, 2016, through December 31, 2017, (B) projected quarterly balance sheets, income statements and statements of cash flows of the Parent and its Subsidiaries on a consolidated basis for the period from January 1, 2016, through December 31, 2018 and (C) projected annual balance sheets, income statements and statements of cash flows of the Parent and its Subsidiaries on a consolidated basis for the Fiscal Years ending in 2016 through 2017, which projected financial statements shall be updated from time to time pursuant to Section 7.01(a)(vi).
 
(h)               Compliance with Law, Etc . No Loan Party or any of its Subsidiaries is in violation of (i) any of its Governing Documents, (ii) any material Requirement of Law to the extent such violation would adversely affect the material operations of the Borrowers, or (iii) any Contractual Obligation (including, without limitation, any Material Contract) binding on or otherwise affecting it or any of its properties, and no default or event of default has occurred and is continuing thereunder, except, in the case of this clause (iii), to the extent that such violation, default or event of default could not reasonably be expected to have a Material Adverse Effect.
 
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(i)                 ERISA . Except as set forth on Schedule 6.01(i), (i) each Employee Plan is in substantial compliance with ERISA and the Internal Revenue Code, (ii) no Termination Event has occurred nor is reasonably expected to occur with respect to any Employee Plan, (iii) the most recent annual report (Form 5500 Series) with respect to each Employee Plan, including any required Schedule B (Actuarial Information) thereto, copies of which have been filed with the Internal Revenue Service and delivered to the Agents, is complete and correct, (iv) copies of each agreement entered into with the PBGC, the U.S. Department of Labor or the Internal Revenue Service with respect to any Employee Plan have been delivered to the Agents, (v) no Employee Plan had an accumulated or waived funding deficiency or permitted decrease which would create a deficiency in its funding standard account or has applied for an extension of any amortization period within the meaning of Section 412 of the Internal Revenue Code at any time during the previous 60 months, and (vi) no Lien imposed under the Internal Revenue Code or ERISA exists or, to the best knowledge of any Loan Party or any of its ERISA Affiliates, is likely to arise on account of any Employee Plan within the meaning of Section 412 of the Internal Revenue Code. Except as set forth on Schedule 6.01(i), no Loan Party or any of its ERISA Affiliates has incurred any withdrawal liability under ERISA with respect to any Multiemployer Plan. No Loan Party or any of its ERISA Affiliates nor any fiduciary of any Employee Plan has (i) engaged in a nonexempt prohibited transaction described in Sections 406 of ERISA or 4975 of the Internal Revenue Code, (ii) failed to pay any required installment or other payment required under Section 412 of the Internal Revenue Code on or before the due date for such required installment or payment, (iii) engaged in a transaction within the meaning of Section 4069 of ERISA or (iv) incurred any liability to the PBGC which remains outstanding other than the payment of premiums, and there are no premium payments which have become due which are unpaid. There are no pending or, to the best knowledge of any Loan Party, threatened claims, actions, proceedings or lawsuits (other than claims for benefits in the normal course) asserted or instituted against (i) any Employee Plan or its assets, (ii) any fiduciary with respect to any Employee Plan, or (iii) any Loan Party or any of its ERISA Affiliates with respect to any Employee Plan. Except as required by Section 4980B of the Internal Revenue Code, no Loan Party or any of its ERISA Affiliates maintains an employee welfare benefit plan (as defined in Section 3(1) of ERISA) which provides health or welfare benefits (through the purchase of insurance or otherwise) for any retired or former employee of any Loan Party or any of its ERISA Affiliates.
 
(j)                 Taxes, Etc . (i) All foreign and Federal income tax returns and material provincial, state and local tax returns required by applicable Requirements of Law to be filed by any Loan Party have been filed, or extensions have been obtained, and (ii) all taxes, assessments and other governmental charges imposed upon any Loan Party or any property of any Loan Party in an aggregate amount for all such taxes, assessments and other governmental charges exceeding $100,000 and which have become due and payable on or prior to the date hereof have been paid, except (A) as disclosed in Schedule 7.01(c)(ii) or (B) to the extent contested in good faith by proper proceedings which stay the imposition of any penalty, fine or Lien resulting from the non-payment thereof and with respect to which adequate reserves have been set aside for the payment thereof on the Financial Statements in accordance with GAAP.
 
(k)               Regulations T, U and X . No Loan Party is or will be engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation T, U or X), and no proceeds of any Loan will be used to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any margin stock or for any purpose that violates the provisions of Regulation T, U and X.
 
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(l)                 Nature of Business . No Loan Party is engaged in any business other than as set forth on Schedule 6.01(l).
 
(m)             Adverse Agreements, Etc . Except as described in Schedule 6.01(f) and Schedule 7.01(c)(ii), no Loan Party or any of its Subsidiaries is a party to any Contractual Obligation or subject to any restriction or limitation in any Governing Document or any judgment, order, regulation, ruling or other requirement of a court or other Governmental Authority, which (either individually or in the aggregate) has a Material Adverse Effect.
 
(n)               Permits, Etc . Each Loan Party has, and is in compliance with, all permits, licenses, authorizations, approvals, entitlements and accreditations required for such Person lawfully to own, lease, manage or operate, or to acquire, each business and Facility currently owned, leased, managed or operated, or to be acquired, by such Person, except to the extent the failure to have or be in compliance therewith could not reasonably be expected to have a Material Adverse Effect. No condition exists or event has occurred which, in itself or with the giving of notice or lapse of time or both, would result in the suspension, revocation, impairment, forfeiture or non-renewal of any such permit, license, authorization, approval, entitlement or accreditation, and no Loan Party has received a written claim that any thereof is not in full force and effect, except to the extent such condition could not reasonably be expected to have a Material Adverse Effect.
 
(o)               Properties . Each Loan Party has good and marketable title to, valid leasehold interests in, or valid licenses to use, all property and assets material to its business, free and clear of all Liens, except Permitted Liens. All such properties and assets are in good working order and condition, ordinary wear and tear excepted.
 
(p)               Employee and Labor Matters . Except as could not reasonably be expected to have a Material Adverse Effect, there is: (i) no unfair labor practice complaint pending or, to the knowledge of any Loan Party, threatened in writing against any Loan Party before any Governmental Authority and no grievance or arbitration proceeding pending or threatened against any Loan Party which arises out of or under any collective bargaining agreement, (ii) no strike, labor dispute, slowdown, stoppage or similar action or grievance pending or, to the knowledge of any Loan Party, threatened against any Loan Party or (iii) to the knowledge of each Loan Party, no union representation question existing with respect to the employees of any Loan Party and no union organizing activity taking place with respect to any of the employees of any Loan Party. No Loan Party or any of its ERISA Affiliates has incurred any liability or obligation under the Worker Adjustment and Retraining Notification Act (“ WARN ”) or similar state law, which remains unpaid or unsatisfied. The hours worked and payments made to employees of any Loan Party have not been in violation of the Fair Labor Standards Act or any other applicable legal requirements. All material payments due from any Loan Party on account of wages and employee health and welfare insurance and other benefits have been paid or accrued as a liability on the books of such Loan Party.
 
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(q)               Environmental Matters . Except as set forth on Schedule 6.01(q), (i) the operations of each Loan Party are in compliance with all Environmental Laws; (ii) there has been no Release at any of the properties owned or operated by any Loan Party or a predecessor in interest, or at any disposal or treatment facility which received Hazardous Materials generated by any Loan Party or any predecessor in interest which could reasonably be expected to have a Material Adverse Effect; (iii) no Environmental Action has been asserted against any Loan Party or any predecessor in interest nor does any Loan Party have knowledge or notice of any threatened or pending Environmental Action against any Loan Party or any predecessor in interest which could reasonably be expected to have a Material Adverse Effect; (iv) no Environmental Actions have been asserted against any facilities that may have received Hazardous Materials generated by any Loan Party or any predecessor in interest which could reasonably be expected to have a Material Adverse Effect; (v) to the Loan Parties’ knowledge, no property now or formerly owned or operated by a Loan Party has been used as a treatment or disposal site for any Hazardous Material; (vi) no Loan Party has failed to report to the proper Governmental Authority any Release which is required to be so reported by any Environmental Laws which could reasonably be expected to have a Material Adverse Effect; (vii) each Loan Party holds all licenses, permits and approvals required under any Environmental Laws in connection with the operation of the business carried on by it, except for such licenses, permits and approvals as to which a Loan Party’s failure to maintain or comply with could not reasonably be expected to have a Material Adverse Effect; and (viii) no Loan Party has received any notification pursuant to any Environmental Laws that (A) any work, repairs, construction or Capital Expenditures are required to be made in respect as a condition of continued compliance with any Environmental Laws, or any license, permit or approval issued pursuant thereto or (B) any license, permit or approval referred to above is about to be reviewed, made, subject to limitations or conditions, revoked, withdrawn or terminated, in each case, except as could not reasonably be expected to have a Material Adverse Effect.
 
(r)                 Insurance . Each Loan Party maintains the insurance and required services and financial assurance as required by law and as required by Section 7.01(h). Schedule 6.01(r) sets forth a list of all insurance maintained by each Loan Party on the Effective Date.
 
(s)                Use of Proceeds . The proceeds of the Loans shall be used to (a) pay fees and expenses in connection with the transactions contemplated hereby, (b) to pay the final judgment of the Oracle Litigation, fund an appeal bond (solely with respect to the Appealable Claims), and pay the legal fees and other costs and expenses related to the Oracle Litigation and (c) fund working capital and general corporate purposes of the Borrowers; provided , that with respect to a Term Loan made after the Effective Date, the proceeds of such Term Loan may only be used to pay the verdict, legal fees or other costs and expenses related to the Oracle Litigation, for general working capital purposes of the Borrowers and to pay fees and expenses related to this Agreement.
 
(t)                 Solvency . Immediately before and immediately after giving effect to each borrowing of Loans hereunder, on the date of such borrowing of Loans hereunder, the Parent and its Subsidiaries on a consolidated basis are Solvent. No transfer of property is being made by any Loan Party and no obligation is being incurred by any Loan Party in connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of such Loan Party.
 
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(u)               Intellectual Property . Except as set forth on Schedule 6.01(u), each Loan Party owns or licenses or otherwise has the right to use all Intellectual Property rights that are necessary for the operation of its business, without infringement upon or conflict with the rights of any other Person with respect thereto, except for such infringements and conflicts which, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. Set forth on Schedule 6.01(u) is a complete and accurate list as of the Effective Date of (i) each item of Registered Intellectual Property owned by each Loan Party; (ii) each material work of authorship owned by each Loan party and which is not Registered Intellectual Property, and (iii) each material Intellectual Property Contract to which each Loan Party is bound.   No trademark or other advertising device, product, process, method, substance, part or other material now employed, or now contemplated to be employed, by any Loan Party infringes upon or conflicts with any rights owned by any other Person, and no claim or litigation regarding any of the foregoing is pending or, to the Loan Parties’ knowledge, threatened, except for such infringements and conflicts which could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. To the knowledge of each Loan Party, no patent, invention, device, application, principle or any statute, law, rule, regulation, standard or code pertaining to Intellectual Property is pending or proposed, which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
 
(v)               Material Contracts . Set forth on Schedule 6.01(v) is a complete and accurate list as of the Effective Date of all Material Contracts of each Loan Party, showing the parties and subject matter thereof and amendments and modifications thereto. On the Effective Date, each such Material Contract (i) is in full force and effect and is binding upon and enforceable against each Loan Party that is a party thereto and, to the best knowledge of such Loan Party, all other parties thereto in accordance with its terms, (ii) has not been otherwise amended or modified, and (iii) is not in default due to the action of any Loan Party or, to the best knowledge of any Loan Party, any other party thereto.
 
(w)             Investment Company Act . None of the Loan Parties is an “investment company” or an “affiliated person” or “promoter” of, or “principal underwriter” of or for, an “investment company”, as such terms are defined in the Investment Company Act of 1940, as amended.
 
(x)               Customers and Suppliers . Except as could not reasonably be expected to have a Material Adverse Effect, there exists no actual or, to the Loan Parties’ knowledge, threatened termination, cancellation or limitation of, or modification to or change in, the business relationship between (i) any Loan Party, on the one hand, and any customer or any group thereof (other than Oracle), on the other hand, whose agreements with any Loan Party are individually or in the aggregate material to the business or operations of such Loan Party, or (ii) any Loan Party, on the one hand, and any supplier or any group thereof (other than Oracle), on the other hand, whose agreements with any Loan Party are individually or in the aggregate material to the business or operations of such Loan Party.
 
(y)               Anti-Money Laundering and Anti-Terrorism Laws .
 
(i)                 None of the Loan Parties, nor any Covered Affiliate of any of the Loan Parties, has violated or is in violation of any of the Anti-Money Laundering and Anti-Terrorism Laws or has engaged in or, to the Loan Parties’ knowledge, conspired to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the Anti-Money Laundering and Anti-Terrorism Laws.
 
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(ii)               None of the Loan Parties, nor any Covered Affiliate of any of the Loan Parties, nor any officer or director of any of the Loan Parties, nor any of the Loan Parties’ respective agents acting or benefiting in any capacity in connection with the Loans or other transactions hereunder, is a Blocked Person.
 
(iii)             None of the Loan Parties, nor any of their agents acting in any capacity in connection with the Loans or other transactions hereunder, (A) conducts any business with or for the benefit of any Blocked Person or engages in making or receiving any contribution of funds, goods or services to, from or for the benefit of any Blocked Person, or (B) deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked or subject to blocking pursuant to any OFAC Sanctions Programs.
 
(z)                Anti-Bribery and Anti-Corruption Laws .
 
(i)                 The Loan Parties are in compliance with the U.S. Foreign Corrupt Practices Act of 1977, as amended (the “ FCPA ”), and the anti-bribery and anti-corruption laws of those jurisdictions in which they do business (collectively, the “ Anti-Corruption Laws ”).
 
(ii)               None of the Loan Parties has at any time:
 
(A)             offered, promised, paid, given, or authorized the payment or giving of any money, gift or other thing of value, directly or indirectly, to or for the benefit of any employee, official, representative, or other person acting on behalf of any foreign (i.e., non-U.S.) Governmental Authority thereof, or of any public international organization, or any foreign political party or official thereof, or candidate for foreign political office (collectively, “ Foreign Official ”), for the purpose of: (1) influencing any act or decision of such Foreign Official in his, her, or its official capacity; or (2) inducing such Foreign Official to do, or omit to do, an act in violation of the lawful duty of such Foreign Official, or (3) securing any improper advantage, in order to obtain or retain business for, or with, or to direct business to, any Person; or
 
(B)              acted or attempted to act in any manner which would subject any of the Loan Parties to liability under any Anti-Corruption Law.
 
(iii)             There are, and have been, no allegations, investigations or inquiries with regard to a potential violation of any Anti-Corruption Law by any of the Loan Parties or, to the Parent’s knowledge, by any of their respective current or former directors, officers, employees, stockholders or agents, or other persons acting or purporting to act on their behalf.
 
(iv)             The Loan Parties have adopted, implemented and maintain anti-bribery and anti-corruption policies and procedures that are reasonably designed to ensure compliance with the Anti-Corruption Laws.
 
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(aa)            Full Disclosure .
 
(i)                 Each Loan Party has disclosed to the Agents all agreements, instruments and corporate or other restrictions to which it is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. None of the reports, financial statements, certificates or other information furnished by or on behalf of any Loan Party to the Agents (other than forward-looking information and projections and information of a general economic nature and general information about Borrowers’ industry) in connection with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which it was made, not misleading.
 
(ii)               Projections, have been prepared on a reasonable basis and in good faith based on assumptions, estimates, methods and tests that are believed by the Loan Parties to be reasonable at the time such Projections were prepared and information believed by the Loan Parties to have been accurate based upon the information available to the Loan Parties at the time such Projections were furnished to the Lenders, and Parent is not be aware of any facts or information that would lead it to believe that such Projections are incorrect or misleading in any material respect; it being understood that (A) Projections are by their nature subject to significant uncertainties and contingencies, many of which are beyond the Loan Parties’ control, (B) actual results may differ materially from the Projections and such variations may be material and (C) the Projections are not a guarantee of performance.
 
ARTICLE VII

COVENANTS OF THE LOAN PARTIES
 
Section 7.01        Affirmative Covenants . So long as any principal of or interest on any Loan or any other outstanding Obligation (whether or not due) shall remain unpaid (other than Contingent Indemnity Obligations) or any Lender shall have any Commitment hereunder, each Loan Party will, unless the Required Lenders shall otherwise consent in writing:
 
(a)                Reporting Requirements . Furnish to each Agent (for distribution by the Administrative Agent to each Lender):
 
(i)                 as soon as available, and in any event within 20 days after the end of each fiscal month of the Parent and its Subsidiaries commencing with the first fiscal month of the Parent and its Subsidiaries ending after the Effective Date, internally prepared consolidated balance sheets, statements of operations and statements of cash flows as at the end of such fiscal month, and for the period commencing at the end of the immediately preceding Fiscal Year and ending with the end of such fiscal month, setting forth in each case in comparative form the figures for the corresponding date or period set forth in (A) the financial statements for the immediately preceding Fiscal Year, and (B) the Projections, all in reasonable detail and certified by an Authorized Officer of the Parent as fairly presenting, in all material respects, the financial position of the Parent and its Subsidiaries as at the end of such fiscal month and the results of operations and cash flows of the Parent and its Subsidiaries for such fiscal month and for such year-to-date period, in accordance with GAAP (except those exceptions set forth in such financial statements that are reasonably acceptable to the Origination Agent) applied in a manner consistent with that of the most recent audited financial statements furnished to the Agents and the Lenders, subject to the absence of footnotes and normal year-end adjustments;
 
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(ii)               as soon as available and in any event within 50 days after the end of each fiscal quarter of the Parent and its Subsidiaries commencing with the first fiscal quarter of the Parent and its Subsidiaries ending after the Effective Date, consolidated and consolidating balance sheets, statements of operations and statements of cash flows of the Parent and its Subsidiaries as at the end of such quarter, and for the period commencing at the end of the immediately preceding Fiscal Year and ending with the end of such quarter, setting forth in each case in comparative form the figures for the corresponding date or period set forth in (A) the financial statements for the immediately preceding Fiscal Year and (B) the Projections, all in reasonable detail and certified by an Authorized Officer of the Parent as fairly presenting, in all material respects, the financial position of the Parent and its Subsidiaries as of the end of such quarter and the results of operations and cash flows of the Parent and its Subsidiaries for such quarter and for such year-to-date period, in accordance with GAAP applied in a manner consistent with that of the most recent audited financial statements of the Parent and its Subsidiaries furnished to the Agents and the Lenders, subject to the absence of footnotes and normal year-end adjustments;
 
(iii)             as soon as available, and in any event (x) for the Fiscal Year ended on December 31, 2015, by September 1, 2016 and (y) for each Fiscal Year ending thereafter, 100 days after the end of each Fiscal Year of the Parent and its Subsidiaries, consolidated and consolidating balance sheets, statements of operations and statements of cash flows of the Parent and its Subsidiaries as at the end of such Fiscal Year, setting forth in each case in comparative form the figures for the corresponding date or period set forth in (A) the financial statements for the immediately preceding Fiscal Year, and (B) the Projections, all in reasonable detail and prepared in accordance with GAAP, and accompanied by a report and an opinion, prepared in accordance with generally accepted auditing standards, of independent certified public accountants of recognized standing selected by the Parent and reasonably satisfactory to the Origination Agent (it being agreed that, as of the Effective Date, any of the “Big Four” accounting firms are reasonably satisfactory to the Origination Agent) (which opinion shall be without (1) a “going concern” or like qualification or exception, (2) any qualification or exception as to the scope of such audit, or (3) any qualification which relates to the treatment or classification of any item and which, as a condition to the removal of such qualification, would require an adjustment to such item, the effect of which would be to cause any noncompliance with the provisions of   Section 7.03);
 
(iv)             simultaneously with the delivery of the financial statements of the Parent and its Subsidiaries required by clauses (i), (ii) and (iii) of this Section 7.01(a), a certificate of an Authorized Officer of the Parent in substantially the form of Exhibit F hereto (a “ Compliance Certificate ”):
 
(A)             stating that such Authorized Officer has reviewed the provisions of this Agreement and the other Loan Documents and has made or caused to be made under his or her supervision a review of the condition and operations of the Parent and its Subsidiaries during the period covered by such financial statements with a view to determining whether the Parent and its Subsidiaries were in compliance with all of the provisions of this Agreement and such Loan Documents at the times such compliance is required hereby and thereby, and that such review has not disclosed, and such Authorized Officer has no knowledge of, the occurrence and continuance during such period of an Event of Default or Default or, if an Event of Default or Default had occurred and continued or is continuing, describing the nature and period of existence thereof and the action which the Parent and its Subsidiaries propose to take or have taken with respect thereto,
 
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(B)              in the case of the delivery of the financial statements of the Parent and its Subsidiaries required by clauses (ii) and (iii) of this Section 7.01(a), (1) attaching a schedule showing the calculation of the covenants specified in Section 7.03 and Section 7.02(t), (2) including a management discussion and analysis of the financial condition and results of operations of the Parent and its Subsidiaries on a consolidated basis for the portion of the Fiscal Year then elapsed and discussing the reasons for any significant variations from the Projections for such period and the figures for the corresponding period in the previous Fiscal Year, and (3) to the extent the Fiscal Year of the Parent and its Subsidiaries has been modified either (x) during the prior four-quarter period (in the case of quarterly financial statements delivered under clause (ii) of this Section 7.01(a)) or (y) after the most recent annual financial statements delivered under clause (iii) of this Section 7.01(a)), attaching a reconciliation for such change in Fiscal Year, in each of the cases of clauses (1) through (3) above, in form and detail reasonably satisfactory to the Origination Agent, and
 
(C)              in the case of the delivery of the financial statements of the Parent and its Subsidiaries required by clause (i) of this Section 7.01(a), attaching a schedule detailing the contracted revenue on a month to month basis (both in the aggregate and on a client by client basis), including deferred revenue, invoicing, cash receipts, newly added service level agreements, in form and substance reasonably satisfactory to the Origination Agent, and
 
(D)             in the case of the delivery of the financial statements of the Parent and its Subsidiaries required by clause (iii) of this Section 7.01(a) (and in the case of clause (2) below, clause (ii) of this Section 7.01(a)(ii)), attaching (1) a summary of all material insurance coverage maintained as of the date thereof by any Loan Party and all material insurance coverage planned to be maintained by any Loan Party, together with such other related documents and information as the Origination Agent may reasonably require, (2) the calculation of the Excess Cash Flow in accordance with the terms of Section 2.05(c)(vi) and (3) confirmation that there have been no changes to the information contained in each of the Perfection Certificates delivered on the Effective Date or the date of the most recently updated Perfection Certificate delivered pursuant to this clause (iv) and/or attaching an updated Perfection Certificate identifying any such changes to the information contained therein;
 
Documents required to be delivered pursuant to Section 7.01(a)(i) through (iii) above (to the extent any such documents are included in materials otherwise filed with the SEC, in the same format and with the same details as required herein) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrowers post such documents, or provide a link thereto on the Borrowers’ website; or (ii) on which such documents are posted on the Borrowers’ behalf on an Internet or intranet website, if any, to which each Lender and the Agents have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that: (i) upon request, the Borrowers shall deliver paper copies of such documents to each Agent, and (ii) the Borrowers shall notify each Agent (by telecopier or electronic mail) of the posting of any such documents and provide to each Agent by electronic mail electronic versions ( i.e ., soft copies) of such documents.  Notwithstanding anything contained herein, in every instance the Borrowers shall be required to provide paper copies of the Compliance Certificates or other certificates required by this Section 7.01(a) to each Agent.  Except for such Compliance Certificates and other certificates, the Agents shall have no obligation to request the delivery or to maintain copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrowers with any such request for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.
 
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(v)               as soon as available and in any event within 10 days after the end of each fiscal month of the Parent and its Subsidiaries, commencing with the first fiscal month of the Parent and its Subsidiaries ending after the Effective Date, reports in form and detail reasonably satisfactory to the Origination Agent and certified by an Authorized Officer of the Administrative Borrower as being accurate and complete in all material respects (A) listing all Accounts Receivable of the Loan Parties as of such day, which shall include the amount and age of each such Account Receivable, showing separately those which are more than 30, 60, 90 and 120 days past due and a description of all known Liens, set-offs, defenses and counterclaims with respect thereto, together with a reconciliation of such schedule with the schedule delivered to the Agents pursuant to this clause (v)(A) for the immediately preceding fiscal month, and such other information as the Origination Agent may reasonably request, and (B) listing all accounts payable of the Loan Parties as of each such 30, 60, 90 and 120 days past due which shall include the amount and age of each such account payable, and such other information as the Origination Agent may reasonably request;
 
(vi)             as soon as available and in any event not later than 30 days prior to the end of each Fiscal Year, a certificate of an Authorized Officer of the Parent (A) attaching preliminary Projections for the Parent and its Subsidiaries on a consolidated basis, supplementing and superseding the Projections previously required to be delivered pursuant to this Agreement, in form and substance reasonably satisfactory to the Origination Agent, for the immediately succeeding Fiscal Year for the Parent and its Subsidiaries and (B) certifying that the representations and warranties set forth in Section 6.01(aa)(ii) are true and correct with respect to such Projections;
 
(vii)           as soon as available and in any event not later than 30 days after the end of each Fiscal Year, a certificate of an Authorized Officer of the Parent (A) attaching finalized Projections for the Parent and its Subsidiaries on a consolidated basis, supplementing and superseding the Projections previously required to be delivered pursuant to Section 7.01(a)(vi) of this Agreement, in form and substance reasonably satisfactory to the Origination Agent, for the immediately succeeding Fiscal Year for the Parent and its Subsidiaries and (B) certifying that the representations and warranties set forth in Section 6.01(aa)(ii) are true and correct with respect to such Projections;
 
(viii)         promptly after submission to any Governmental Authority, all documents and written information furnished to such Governmental Authority in connection with any investigation of any Loan Party other than routine or immaterial inquiries by such Governmental Authority;
 
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(ix)             as soon as possible, and in any event within 3 Business Days after an Authorized Officer of a Loan Party obtains knowledge of the occurrence of an Event of Default or Default or the occurrence of any event or development that could reasonably be expected to have a Material Adverse Effect, the written statement of an Authorized Officer of the Administrative Borrower setting forth the details of such Event of Default or Default or other event or development having a Material Adverse Effect and the action which the affected Loan Party proposes to take with respect thereto;
 
(x)               (A) as soon as possible and in any event within 10 Business Days after any Authorized Officer of a Loan Party knows that (1) any Reportable Event with respect to any Employee Plan has occurred, (2) any other Termination Event with respect to any Employee Plan has occurred, or (3) an accumulated funding deficiency has been incurred or an application has been made to the Secretary of the Treasury for a waiver or modification of the minimum funding standard (including installment payments) or an extension of any amortization period under Section 412 of the Internal Revenue Code with respect to an Employee Plan, a statement of an Authorized Officer of the Administrative Borrower setting forth the details of such occurrence and the action, if any, which such Loan Party or such ERISA Affiliate proposes to take with respect thereto, (B) promptly and in any event within 3 days after receipt thereof by any Loan Party or any ERISA Affiliate thereof from the PBGC, copies of each notice received by any Loan Party or any ERISA Affiliate thereof of the PBGC’s intention to terminate any Plan or to have a trustee appointed to administer any Plan, (C) promptly and in any event within 10 days after the filing thereof with the Internal Revenue Service if requested by any Agent, copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) with respect to each Employee Plan and Multiemployer Plan, (D) promptly and in any event within 10 days after any Loan Party or any ERISA Affiliate thereof knows or has reason to know that a required installment within the meaning of Section 412 of the Internal Revenue Code has not been made when due with respect to an Employee Plan, (E) promptly and in any event within 3 days after receipt thereof by any Loan Party or any ERISA Affiliate thereof from a sponsor of a Multiemployer Plan or from the PBGC, a copy of each notice received by any Loan Party or any ERISA Affiliate thereof concerning the imposition or amount of withdrawal liability under Section 4202 of ERISA or indicating that such Multiemployer Plan may enter reorganization status under Section 4241 of ERISA, and (F) promptly and in any event within 10 days after any Loan Party or any ERISA Affiliate thereof sends notice of a plant closing or mass layoff (as defined in WARN) to employees, copies of each such notice sent by such Loan Party or such ERISA Affiliate thereof;
 
(xi)             promptly after the commencement thereof but in any event not later than 5 Business Days after service of process with respect thereto on, or the obtaining of knowledge thereof by, any Authorized Officer of a Loan Party, notice of each action, suit or proceeding against a Loan Party before any court or other Governmental Authority or other regulatory body or any arbitrator which, if adversely determined, could reasonably be expected to have a Material Adverse Effect;
 
(xii)           as soon as possible and in any event within 5 days after execution by, receipt by or delivery by or to a Loan Party thereof, copies of any default or termination notices that any Loan Party executes, delivers or receives in connection with any Material Contract;
 
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(xiii)         as soon as possible and in any event within 5 days after being posted on an official court docket for the Oracle Litigation, notice to the Origination Agent and the Administrative Agent of such posting of any non-privileged, material notices, motions or pleadings that any Loan Party executes, submits, delivers or receives in connection with the Oracle Litigation;
 
(xiv)         as soon as possible and in any event within 5 days after execution by, receipt by or delivery by or to a Loan Party thereof, copies of any material notices that any Loan Party executes or receives in connection with the sale or other Disposition of the Equity Interests of, or all or substantially all of the assets of, any Loan Party (other than Equity Issuances described in clause (c) of the definition of Excluded Equity Issuances);
 
(xv)           as soon as possible and in any event within 5 Business Days after the delivery thereof to the Parent’s or the Borrower’s Board of Directors, copies (redacted to the extent necessary to preserve attorney-client privilege) of all reports or other written information so delivered, excluding any and all reports or other information (1) which relates to the Loan Documents or any matters arising out of the Loan Documents, or relates to any Agent, any Lender or any of their respective Related Parties, or (2) whose disclosure is prohibited by applicable law;
 
(xvi)         promptly, and in any event within 5 Business Days after (A) the sending or filing thereof, copies of (or, to the extent publicly available, hyperlinks to; provided , that upon the Origination Agent’s or the Administrative Agent’s reasonable request, the Borrowers shall provide to such requesting Agent by electronic mail electronic versions of such documents) all material statements, reports and notices any Loan Party sends to any holders of its Indebtedness or its securities generally or files with the SEC or any national (domestic or foreign) securities exchange and (B) the receipt thereof, a copy of any default notice received by a Loan Party from any holder of its Indebtedness (other than the Obligations) having an aggregate principal amount outstanding in excess of $500,000;
 
(xvii)       promptly, and in any event within ten Business Days after receipt thereof, copies of all financial reports (including, without limitation, management letters), if any, submitted to any Loan Party by its auditors in connection with any annual or interim audit of the books thereof;
 
(xviii)     promptly, and in any event within 5 Business Days after the Parent’s receipt of written request therefor, any certification or other evidence reasonably requested from time to time by any Lender in its reasonable discretion, confirming the Borrowers’ compliance with Section 7.02(r);
 
(xix)         simultaneously with the delivery of the financial statements of the Parent and its Subsidiaries required by clauses (i), (ii) and (iii) of this Section 7.01(a), if, as a result of any change in accounting principles and policies from those used in the preparation of the Financial Statements that is permitted by Section 7.02(q), the consolidated financial statements of the Parent and its Subsidiaries delivered pursuant to clauses (i), (ii) and (iii) of this Section 7.01(a) will differ from the consolidated financial statements that would have been delivered pursuant to such subdivisions had no such change in accounting principles and policies been made, then, together with the first delivery of such financial statements after such change, one or more consolidated statements of reconciliation for all such prior financial statements in form and substance reasonably satisfactory to the Origination Agent; and
 
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(xx)           promptly upon request, such other information concerning the condition or operations, financial or otherwise, of any Loan Party as the Origination Agent may from time to time may reasonably request.
 
(b)               Additional Borrowers, Guarantors and Collateral Security . Subject to the last paragraph of this Section 7.01(b), cause:
 
(i)                 each Subsidiary of any Loan Party not in existence on the Effective Date, and each Subsidiary of any Loan Party which is a non-borrowing Subsidiary on the Effective Date or upon formation or acquisition but later ceases to be a non-borrowing Subsidiary, to execute and deliver to the Collateral Agent promptly and in any event within 3 days after the formation, acquisition or change in status thereof, (A) a Joinder Agreement, pursuant to which such Subsidiary shall be made a party to this Agreement as a Borrower or a Guarantor, (B) a supplement to the Security Agreement, together with (1) certificates evidencing all of the Equity Interests of any Person owned by such Subsidiary required to be pledged under the terms of the Security Agreement, (2) undated stock powers for such Equity Interests executed in blank with signature guaranteed, and (3) such opinions of counsel as the Origination Agent may reasonably request, (C) to the extent required under the terms of this Agreement, one or more Mortgages creating on the real property of such Subsidiary a perfected, first priority Lien (in terms of priority, subject only to Permitted Specified Liens) on such real property and such other Real Property Deliverables as may be required by the Collateral Agent with respect to each such real property, and (D) such other agreements, instruments, approvals or other documents reasonably requested by the Origination Agent and the Collateral Agent in order to create, perfect, establish the first priority of or otherwise protect any Lien purported to be covered by any such Security Agreement or Mortgage or otherwise to effect the intent that such Subsidiary shall become bound by all of the terms, covenants and agreements contained in the Loan Documents and that all property and assets of such Subsidiary shall become Collateral for the Obligations; and
 
(ii)               each Loan Party that is an owner of the Equity Interests of any such Subsidiary to execute and deliver promptly and in any event within 10 Business Days after the formation or acquisition of such Subsidiary a Pledge Amendment (as defined in the Security Agreement), together with (A) certificates evidencing all of the Equity Interests of such Subsidiary required to be pledged under the terms of the Security Agreement, (B) undated stock powers or other appropriate instruments of assignment for such Equity Interests executed in blank with signature guaranteed, (C) such opinions of counsel as the Origination Agent may reasonably request and (D) such other agreements, instruments, approvals or other documents reasonably requested by the Origination Agent.
 
Notwithstanding the foregoing, no Foreign Subsidiary shall be required to become a Guarantor hereunder (and, as such, shall not be required to deliver the documents required by clause (i) above; provided , however , that if the Equity Interests of a Foreign Subsidiary are owned directly by a Loan Party, such Loan Party shall deliver all such documents, instruments, agreements (including, without limitation, at the reasonable request of the Origination Agent, a pledge agreement governed by the laws of the jurisdiction of the organization of such Foreign Subsidiary; provided , further , that, so long as no Event of Default has occurred and is continuing, the Origination Agent will not request such foreign law governed pledge agreement with respect to any Subsidiary that represents less than 5.00% of the consolidated total revenue of the Parent and its Subsidiaries) and certificates described in clause (ii) above to the Collateral Agent, and take all commercially reasonable actions reasonably requested by the Collateral Agent or otherwise necessary to grant and to perfect a first-priority Lien (subject to Permitted Specified Liens) in favor of the Collateral Agent, for the benefit of the Agents and the Lenders, in 65% of the voting Equity Interests of such Foreign Subsidiary and 100% of all other Equity Interests of such Foreign Subsidiary owned directly by such Loan Party.
 
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(c)                Compliance with Laws; Payment of Taxes.
 
(i)                 Comply, and cause each of its Subsidiaries to comply, in all material respects, with (x) any applicable material Requirement of Law (including, without limitation, all Environmental Laws), except to the extent the failure to do so would not adversely affect the material operations of the Borrowers, and (y) judgments and awards (including any settlement of any claim that, if breached, could give rise to any of the foregoing).
 
(ii)               Pay, and cause each of its Subsidiaries to pay, in full before delinquency or before the expiration of any extension period, all federal and other material taxes, assessments and other governmental charges imposed upon any Loan Party or any of its Subsidiaries or any property of any Loan Party or any of its Subsidiaries in an aggregate amount for all such federal and other material taxes, assessments and other governmental charges exceeding $100,000, except to the extent contested in good faith by proper proceedings which stay the imposition of any penalty, fine or Lien resulting from the non-payment thereof and with respect to which adequate reserves have been set aside for the payment thereof in accordance with GAAP and except for the sales tax liability described in Schedule 7.01(c)(ii).
 
(d)               Preservation of Existence, Etc. Maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, its existence, rights and privileges, and become or remain, and cause each of its Subsidiaries to become or remain, duly qualified and in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary, except to the extent that the failure to be so qualified could not reasonably be expected to have a Material Adverse Effect.
 
(e)                Keeping of Records and Books of Account . Keep, and cause each of its Subsidiaries to keep, adequate records and books of account, with complete entries made to permit the preparation of financial statements in accordance with GAAP.
 
(f)                Inspection Rights . Permit, and cause each of its Subsidiaries to permit upon reasonable prior notice (unless an Event of Default has occurred and is continuing, in which case no prior notice shall be required), the agents and representatives of any Agent at any time and from time to time during normal business hours, at the expense of the Borrowers, to examine and make copies of and abstracts from its records and books of account, to visit and inspect its properties, to verify materials, leases, notes, accounts receivable, deposit accounts and its other assets, to conduct audits, physical counts, valuations, appraisals, Phase I Environmental Site Assessments (to the extent reasonably requested by the Collateral Agent (acting at the direction of the Required Lenders) and without duplication of existing Phase I Environmental Site Assessments and, if requested by the Collateral Agent based upon the results of any such Phase I Environmental Site Assessment, a Phase II Environmental Site Assessment) or examinations and to discuss its affairs, finances and accounts with any of its directors, officers, managerial employees, independent accountants or any of its other representatives. In furtherance of the foregoing, each Loan Party hereby authorizes its independent accountants, and the independent accountants of each of its Subsidiaries, to discuss the affairs, finances and accounts of such Person (independently (subject to reasonable advance notice giving representative of such Person the opportunity to participate) or together with representatives of such Person) with the agents and representatives of any Agent in accordance with this Section 7.01(f). So long as no Event of Default has occurred and is continuing, Borrowers shall only have to reimburse the Agents for one (1) such visit in any fiscal quarter.
 
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(g)               Maintenance of Properties, Etc. Maintain and preserve, and cause each of its Subsidiaries to maintain and preserve, all of its properties which are necessary or useful in the proper conduct of its business in good working order and condition, ordinary wear and tear and casualty excepted, and comply, and cause each of its Subsidiaries to comply, at all times with the provisions of all leases to which it is a party as lessee or under which it occupies property, so as to prevent any loss or forfeiture thereof or thereunder, except to the extent the failure to so maintain and preserve or so comply could not reasonably be expected to have a Material Adverse Effect.
 
(h)               Maintenance of Insurance . Maintain, and cause each of its Subsidiaries to maintain, insurance with responsible and reputable insurance companies or associations (including, without limitation, comprehensive general liability, hazard, rent, worker’s compensation and business interruption insurance) with respect to its properties (including all real properties leased or owned by it) and business, in such amounts and covering such risks as is required by any Governmental Authority having jurisdiction with respect thereto or as is carried generally in accordance with sound business practice by companies in similar businesses similarly situated and in any event in amount, adequacy and scope reasonably satisfactory to the Origination Agent (it being agreed that the amount, adequacy and scope of the Loan Parties’ insurance coverage as in effect on the Effective Date is acceptable to the Origination Agent). All policies covering the Collateral are to be made payable to the Collateral Agent for the benefit of the Secured Parties, as their interests may appear, in case of loss, under a standard non-contributory “lender” or “secured party” clause and are to contain such other provisions as the Collateral Agent may require to fully protect the Lenders’ interest in the Collateral and to any payments to be made under such policies. All certificates of insurance are to be delivered to the Collateral Agent and the policies are to be premium prepaid, with the loss payable and additional insured endorsement in favor of the Collateral Agent and such other Persons as the Collateral Agent may designate from time to time, and shall provide for not less than 30 days’ (10 days’ in the case of non-payment) prior written notice to the Collateral Agent of the exercise of any right of cancellation. If any Loan Party or any of its Subsidiaries fails to maintain such insurance, the Collateral Agent may arrange for such insurance, but at the Borrowers’ expense and without any responsibility on the Collateral Agent’s part for obtaining the insurance, the solvency of the insurance companies, the adequacy of the coverage, or the collection of claims. Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent shall have the sole right, in the name of the Lenders, any Loan Party and its Subsidiaries, to file claims under any insurance policies, to receive, receipt and give acquittance for any payments that may be payable thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies.
 
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(i)                 Obtaining of Permits, Etc. Obtain, maintain and preserve, and cause each of its Subsidiaries to obtain, maintain and preserve, and take all necessary action to timely renew, all permits, licenses, authorizations, approvals, entitlements and accreditations that are necessary or useful in the proper conduct of its business, in each case, except to the extent the failure to obtain, maintain, preserve or take such action could not reasonably be expected to have a Material Adverse Effect.
 
(j)                 Environmental . (i)  Keep any property either owned or operated by it or any of its Subsidiaries free of any material Environmental Liens; (ii) except to the extent the failure to do so could not reasonably be expected to have a Material Adverse Effect, comply, and cause each of its Subsidiaries to comply, with all Environmental Laws and provide to the Collateral Agent any documentation of such compliance which the Collateral Agent may reasonably request; (iii) provide the Agents written notice within 5 days of any Release of a Hazardous Material in excess of any reportable quantity from or onto property at any time owned or operated by it or any of its Subsidiaries and take any Remedial Actions required to abate said Release; and (iv) provide the Agents with written notice within 10 days of the receipt of any of the following: (A) notice that an Environmental Lien has been filed against any property of any Loan Party or any of its Subsidiaries; (B) commencement of any Environmental Action or notice that an Environmental Action will be filed against any Loan Party or any of its Subsidiaries; and (C) notice of a violation, citation or other administrative order which could reasonably be expected to have a Material Adverse Effect.
 
(k)               Fiscal Year . Cause the Fiscal Year of the Parent and its Subsidiaries to end on December 31 st of each calendar year unless the Agents consent to a change in such Fiscal Year (and appropriate related changes to this Agreement), it being agreed that the Parent and its Subsidiaries may change their Fiscal Year end to the end of February, subject to (i) receipt by the Agents of not less than 60 days’ prior written notice from the Administrative Borrower of such change and (ii) entry into an amendment to this Agreement to update covenant levels in Section 7.03 to reflect the changes to the Parent’s and its Subsidiaries’ Fiscal Year.
 
(l)                 Landlord Waivers; Collateral Access Agreements . At any time any Collateral with a book value in excess of $500,000 (when aggregated with all other Collateral at the same location) is located on any real property of a Loan Party (whether such real property is now existing or acquired after the Effective Date) which is not owned by a Loan Party, or is stored on the premises of a bailee, warehouseman, or similar party, use commercially reasonable efforts to obtain written subordinations or waivers or other Collateral Access Agreements, as the case may be, in form and substance reasonably satisfactory to the Origination Agent and the Collateral Agent.
 
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(m)             After Acquired Real Property . Upon the acquisition by it or any of its Subsidiaries after the date hereof of any fee interest in any real property (wherever located) (each such interest being a “ New Facility ”) (i) with a Current Value (as defined below) in excess of $100,000, immediately so notify the Collateral Agent in writing, setting forth with specificity a description of the interest acquired, the location of the real property, any structures or improvements thereon and either an appraisal or such Loan Party’s good-faith estimate of the current value of such real property (for purposes of this Section, the “ Current Value ”). The Collateral Agent shall notify such Loan Party whether it intends to require a Mortgage (and any other Real Property Deliverables) with respect to such New Facility. Upon receipt of such notice requesting a Mortgage (and any other Real Property Deliverables), the Person that has acquired such New Facility shall promptly furnish the same to the Collateral Agent. The Borrowers shall pay all fees and expenses, including, without limitation, reasonable attorneys’ fees and expenses, and all title insurance charges and premiums, in connection with each Loan Party’s obligations under this Section 7.01(m).
 
(n)               Anti-Bribery and Anti-Corruption Laws . Maintain, and cause each of its Subsidiaries to maintain, anti-bribery and anti-corruption policies and procedures that are reasonably designed to ensure compliance with the Anti-Corruption Laws.
 
(o)               Lender Meetings and Discussions .
 
(i)                 Upon the request of any Agent or the Required Lenders (which request, so long as no Event of Default shall have occurred and be continuing, shall not be made more than once during each Fiscal Year), participate in a meeting with the Agents and the Lenders at the Borrowers’ corporate offices (or at such other location as may be agreed to by the Administrative Borrower and such Agent or the Required Lenders) at such time as may be agreed to by the Administrative Borrower and such Agent or the Required Lenders.
 
(ii)               Promptly after the end of each month, senior officers of the Parent shall have a discussion (either via telephone or in-person meeting) with representatives of the Origination Agent with respect to (i) the Loan Parties’ and their Subsidiaries’ compliance with business practices regarding non-infringement of third party intellectual property and (ii) the status of the Oracle Litigation.
 
(p)               Further Assurances . Take such action and execute, acknowledge and deliver, and cause each of its Subsidiaries to take such action and execute, acknowledge and deliver, at its sole cost and expense, such agreements, instruments or other documents as any Agent may reasonably require from time to time in order (i) to carry out more effectively the purposes of this Agreement and the other Loan Documents, (ii) to subject to valid and perfected first priority Liens (subject to Permitted Liens) any of the Collateral or any other property of any Loan Party and its Subsidiaries, (iii) to establish and maintain the validity and effectiveness of any of the Loan Documents and the validity, perfection and priority (subject to Permitted Liens) of the Liens intended to be created thereby, and (iv) to better assure, convey, grant, assign, transfer and confirm unto each Secured Party the rights now or hereafter intended to be granted to it under this Agreement or any other Loan Document. In furtherance of the foregoing, to the maximum extent permitted by applicable law, each Loan Party (i) authorizes each Agent to execute any such agreements, instruments or other documents in such Loan Party’s name and to file such agreements, instruments or other documents in any appropriate filing office, (ii) authorizes each Agent to file any financing statement required hereunder or under any other Loan Document, and any continuation statement or amendment with respect thereto, in any appropriate filing office without the signature of such Loan Party, and (iii) ratifies the filing of any financing statement, and any continuation statement or amendment with respect thereto, filed without the signature of such Loan Party on or after the Effective Date.
 
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(q)               HSBC Control Agreement . Within fifteen (15) Business Days after the Effective Date (or such later date as agreed to by the Origination Agent in writing in its sole discretion), the Loan Parties shall deliver or cause to be delivered to the Agents a Control Agreement with respect to the Deposit Accounts maintained by any Loan Party at HSBC Bank USA, National Association and such agreement shall be in full force and effect; provided , that prior to delivery of such Control Agreement, the aggregate amount on deposit by the Loan Parties with HSBC Bank USA, National Association at the end of any day shall not exceed $10,000.
 
Section 7.02        Negative Covenants . So long as any principal of or interest on any Loan or any other outstanding Obligation (whether or not due) shall remain unpaid (other than Contingent Indemnity Obligations) or any Lender shall have any Commitment hereunder, each Loan Party shall not, unless the Required Lenders shall otherwise consent in writing:
 
(a)                Liens, Etc. Create, incur, assume or suffer to exist, or permit any of its Subsidiaries to create, incur, assume or suffer to exist, any Lien upon or with respect to any of its properties, whether now owned or hereafter acquired; file or suffer to exist under the Uniform Commercial Code or any Requirement of Law of any jurisdiction, a financing statement (or the equivalent thereof) that names it or any of its Subsidiaries as debtor; sign or suffer to exist any security agreement authorizing any secured party thereunder to file such financing statement (or the equivalent thereof) other than, as to all of the above, Permitted Liens.
 
(b)               Indebtedness . Create, incur, assume, guarantee or suffer to exist, or otherwise become or remain liable with respect to, or permit any of its Subsidiaries to create, incur, assume, guarantee or suffer to exist or otherwise become or remain liable with respect to, any Indebtedness other than Permitted Indebtedness.
 
(c)                Fundamental Changes; Dispositions .
 
(i)                 Wind-up, liquidate or dissolve, or merge, consolidate or amalgamate with any Person, or permit any of its Subsidiaries to do (or agree to do) any of the foregoing; provided , however , that any wholly-owned Subsidiary of any Loan Party (other than a Borrower) may be merged into such Loan Party or another wholly-owned Subsidiary of such Loan Party, or may consolidate or amalgamate with another wholly-owned Subsidiary of such Loan Party, so long as (A) no other provision of this Agreement would be violated thereby, (B) such Loan Party gives the Agents at least 30 days’ prior written notice of such merger, consolidation or amalgamation accompanied by true, correct and complete copies of all material agreements, documents and instruments relating to such merger, consolidation or amalgamation, including, but not limited to, the certificate or certificates of merger or amalgamation to be filed with each appropriate Secretary of State (with a copy as filed promptly after such filing), (C) no Default or Event of Default shall have occurred and be continuing either before or after giving effect to such transaction, (D) the Lenders’ rights in any Collateral, including, without limitation, the existence, perfection and priority of any Lien thereon, are not adversely affected by such merger, consolidation or amalgamation and (E) the surviving Subsidiary, if any, if not already a Loan Party, is joined as a Loan Party hereunder pursuant to a Joinder Agreement and is a party to a Security Agreement and the Equity Interests of such Subsidiary is the subject of a Security Agreement, in each case, which is in full force and effect on the date of and immediately after giving effect to such merger, consolidation or amalgamation; and
 
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(ii)               Make any Disposition, whether in one transaction or a series of related transactions, of all or any part of its business, property or assets, whether now owned or hereafter acquired (or agree to do any of the foregoing), or permit any of its Subsidiaries to do any of the foregoing; provided , however , that any Loan Party and its Subsidiaries may make Permitted Dispositions.
 
(d)               Change in Nature of Business . Make, or permit any of its Subsidiaries to make, any change in the nature of its business as described in Section 6.01(l).
 
(e)                Loans, Advances, Investments, Etc. Make or commit or agree to make, or permit any of its Subsidiaries make or commit or agree to make, any Investment in any other Person except for Permitted Investments.
 
(f)                Sale and Leaseback Transactions . Enter into, or permit any of its Subsidiaries to enter into, any Sale and Leaseback Transaction.
 
(g)               Capital Expenditures . Make or commit or agree to make, or permit any of its Subsidiaries to make or commit or agree to make, any Capital Expenditure (by purchase or Capitalized Lease) that would cause the aggregate amount of all Capital Expenditures made by the Loan Parties and their Subsidiaries in any twelve consecutive fiscal-month period to be greater than three percent (3.00%) of the total revenues of the Loan Parties and their Subsidiaries for such period.
 
(h)               Restricted Payments .  Make or permit any of its Subsidiaries to make any Restricted Payment other than Permitted Restricted Payments. For the avoidance of doubt, this Section 7.02(h) shall not prohibit or restrict the conversion of preferred equity of the Parent into common equity of the Parent.
 
(i)                 Federal Reserve Regulations . Permit any Loan or the proceeds of any Loan under this Agreement to be used for any purpose that would cause such Loan to be a margin loan under the provisions of Regulation T, U or X of the Board.
 
(j)                 Transactions with Affiliates . Enter into, renew, extend or be a party to, or permit any of its Subsidiaries to enter into, renew, extend or be a party to, any transaction or series of related transactions (including, without limitation, the purchase, sale, lease, transfer or exchange of property or assets of any kind or the rendering of services of any kind) with any Affiliate, except (i) transactions consummated in the ordinary course of business in a manner and to an extent consistent with past practice and necessary or desirable for the prudent operation of its business, for fair consideration and on terms no less favorable to it or its Subsidiaries than would be obtainable in a comparable arm’s length transaction with a Person that is not an Affiliate thereof, and that are fully disclosed to the Agents prior to the consummation thereof, if they involve one or more payments by the Parent or any of its Subsidiaries in excess of $100,000 for any single transaction or series of related transactions, (ii) transactions with another Loan Party, (iii) transactions permitted by Section 7.02(e) and Section 7.02(h), (iv) sales of Qualified Equity Interests of the Parent to Affiliates of the Parent not otherwise prohibited by the Loan Documents and the granting of registration and other customary rights in connection therewith, and (v) reasonable and customary director and officer compensation (including bonuses and stock option programs), benefits and indemnification arrangements, in each case approved by the Board of Directors (or a committee thereof) of such Loan Party or such Subsidiary.
 
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(k)               Limitations on Dividends and Other Payment Restrictions Affecting Subsidiaries . Create or otherwise cause, incur, assume, suffer or permit to exist or become effective any consensual encumbrance or restriction of any kind on the ability of any Subsidiary of any Loan Party (i) to pay dividends or to make any other distribution on any shares of Equity Interests of such Subsidiary owned by any Loan Party or any of its Subsidiaries, (ii) to pay or prepay or to subordinate any Indebtedness owed to any Loan Party or any of its Subsidiaries, (iii) to make loans or advances to any Loan Party or any of its Subsidiaries or (iv) to transfer any of its property or assets to any Loan Party or any of its Subsidiaries, or permit any of its Subsidiaries to do any of the foregoing; provided ,   however ,   that nothing in any of clauses (i) through (iv) of this Section 7.02(k) shall prohibit or restrict compliance with:
 
(A)             this Agreement and the other Loan Documents;
 
(B)              any agreement in effect on the date of this Agreement and described on Schedule 7.02(k), or any extension, replacement or continuation of any such agreement; provided , that, any such encumbrance or restriction contained in such extended, replaced or continued agreement is no less favorable to the Agents and the Lenders than the encumbrance or restriction under or pursuant to the agreement so extended, replaced or continued;
 
(C)              any applicable law, rule or regulation (including, without limitation, applicable currency control laws and applicable state corporate statutes restricting the payment of dividends in certain circumstances);
 
(D)             in the case of clause (iv), (1) customary restrictions on the subletting, assignment or transfer of any specified property or asset set forth in a lease, license, asset sale agreement or similar contract for the conveyance of such property or asset and (2) instrument or other document evidencing a Permitted Lien (or the Indebtedness secured thereby) from restricting on customary terms the transfer of any property or assets subject thereto;
 
(E)              customary restrictions on dispositions of real property interests in reciprocal easement agreements;
 
(F)               customary restrictions in agreements for the sale of assets on the transfer or encumbrance of such assets during an interim period prior to the closing of the sale of such assets; or
 
(G)             customary restrictions in contracts that prohibit the assignment of such contract.
 
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(l)                 Limitations on Negative Pledges . Enter into, incur or permit to exist, or permit any Subsidiary to enter into, incur or permit to exist, directly or indirectly, any agreement, instrument, deed, lease or other arrangement that prohibits, restricts or imposes any condition upon the ability of any Loan Party or any Subsidiary of any Loan Party to create, incur or permit to exist any Lien upon any of its property or revenues in favor of the Collateral Agent, whether now owned or hereafter acquired, or that requires the grant of any security for an obligation if security is granted for another obligation, except for such prohibitions and restrictions existing under or by reason of: (i) this Agreement and the other Loan Documents, (ii)  any agreement relating to secured Indebtedness permitted by Section 7.02(b) of this Agreement if such prohibitions, restrictions or conditions apply only to the property or assets securing such Indebtedness, (iii) agreements relating to the sale or other disposition of assets or of a Subsidiary pending such sale or other disposition; provided that such prohibitions, restrictions and conditions apply only to the assets or Subsidiary to be sold or disposed of and such sale or disposition is permitted hereunder, (iv) customary provisions in leases or subleases restricting the assignment or sublet thereof, (v) leases or subleases, or licenses or sublicenses of Intellectual Property, entered into in the ordinary course of business; (vi) customary net worth and similar financial maintenance provisions contained in real property leases or subleases; (vii) encumbrances or restrictions on cash or other deposits or net worth required to be maintained by customers in the ordinary course of business, (viii) an agreement in existence at the time the applicable Loan Party or Subsidiary party to such agreement is acquired pursuant to a Permitted Acquisition (or similar Investment permitted hereunder); provided that such agreement was not entered into in contemplation of such Permitted Acquisition or Investment, (ix) any document or instrument governing Liens permitted pursuant to clauses (d), (f) and (n) of the definition of Permitted Liens and (x) applicable law.
 
(m)             Modifications of Indebtedness, Organizational Documents and Certain Other Agreements; Etc.
 
(i)                 Amend, modify or otherwise change (or permit the amendment, modification or other change in any manner of) any of the provisions of any of its or its Subsidiaries’ Indebtedness or of any instrument or agreement (including, without limitation, any purchase agreement, indenture, loan agreement or security agreement) relating to any such Indebtedness if such amendment, modification or change would shorten the final maturity or average life to maturity of, or require any payment to be made earlier than the date originally scheduled on, such Indebtedness, would increase the interest rate applicable to such Indebtedness, would add any covenant or event of default, would change the subordination provision, if any, of such Indebtedness, or would otherwise be materially adverse to the Lenders or the issuer of such Indebtedness in any respect;
 
(ii)               except for the Obligations, (A) make any voluntary or optional payment (including, without limitation, any payment of interest in cash that, at the option of the issuer, may be paid in cash or in kind), prepayment, redemption, defeasance, sinking fund payment or other acquisition for value of any of its or its Subsidiaries’ Indebtedness (including, without limitation, by way of depositing money or securities with the trustee therefor before the date required for the purpose of paying any portion of such Indebtedness when due), (B) refund, refinance, replace or exchange any other Indebtedness for any such Indebtedness (other than with respect to Permitted Refinancing Indebtedness), or (C) make any payment, prepayment, redemption, defeasance, sinking fund payment or repurchase of any Indebtedness as a result of any asset sale, change of control, issuance and sale of debt or equity securities or similar event, or give any notice with respect to any of the foregoing; or
 
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(iii)             amend, modify or otherwise change any of its Governing Documents (including, without limitation, by the filing or modification of any certificate of designation, or any agreement or arrangement entered into by it) with respect to any of its Equity Interests (including any shareholders’ agreement), or enter into any new agreement with respect to any of its Equity Interests, except any such amendments, modifications or changes or any such new agreements or arrangements pursuant to this clause (iii) that either individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect.
 
(n)               Investment Company Act of 1940 . Engage in any business, enter into any transaction, use any securities or take any other action or permit any of its Subsidiaries to do any of the foregoing, that would cause it or any of its Subsidiaries to become subject to the registration requirements of the Investment Company Act of 1940, as amended, by virtue of being an “investment company” or a company “controlled” by an “investment company” not entitled to an exemption within the meaning of such Act.
 
(o)               ERISA . (i) Engage, or permit any ERISA Affiliate to engage, in any transaction described in Section 4069 of ERISA; (ii) engage, or permit any ERISA Affiliate to engage, in any prohibited transaction described in Section 406 of ERISA or 4975 of the Internal Revenue Code for which a statutory or class exemption is not available or a private exemption has not previously been obtained from the U.S. Department of Labor; (iii) adopt or permit any ERISA Affiliate to adopt any employee welfare benefit plan within the meaning of Section 3(1) of ERISA which provides benefits to employees after termination of employment other than as required by Section 601 of ERISA or applicable law; (iv) fail to make any contribution or payment to any Multiemployer Plan which it or any ERISA Affiliate may be required to make under any agreement relating to such Multiemployer Plan, or any law pertaining thereto; or (v) fail, or permit any ERISA Affiliate to fail, to pay any required installment or any other payment required under Section 412 of the Internal Revenue Code on or before the due date for such installment or other payment.
 
(p)               Environmental . Except as could not reasonably be expected to result in a Material Adverse Effect, permit the use, handling, generation, storage, treatment, Release or disposal of Hazardous Materials at any property owned or leased by it or any of its Subsidiaries, except in compliance in all material respects with Environmental Laws.
 
(q)               Accounting Methods . Modify or change, or permit any of its Subsidiaries to modify or change, its method of accounting or accounting principles from those utilized in the preparation of the Financial Statements (other than as may be required to conform to GAAP).
 
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(r)                 Anti-Money Laundering and Anti-Terrorism Laws .
 
(i)                 None of the Loan Parties, nor any of their Covered Affiliates, shall:
 
(A)             conduct any business or engage in any transaction or dealing with or for the benefit of any Blocked Person, including the making or receiving of any contribution of funds, goods or services to, from or for the benefit of any Blocked Person;
 
(B)              deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked or subject to blocking pursuant to the OFAC Sanctions Programs;
 
(C)              use any of the proceeds of the transactions contemplated by this Agreement to finance, promote or otherwise support in any manner any illegal activity, including, without limitation, any violation of the Anti-Money Laundering and Anti-Terrorism Laws or any specified unlawful activity as that term is defined in the Money Laundering Control Act of 1986, 18 U.S.C. §§ 1956 and 1957; or
 
(D)             violate, attempt to violate, or engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, any of the Anti-Money Laundering and Anti-Terrorism Laws.
 
(ii)               None of the Loan Parties, nor any Covered Affiliate of any of the Loan Parties, nor any officer, director or principal shareholder or owner of any of the Loan Parties, nor any of the Loan Parties’ respective agents acting or benefiting in any capacity in connection with the Loans or other transactions hereunder, shall be or shall become a Blocked Person.
 
(s)                Anti-Bribery and Anti-Corruption Laws. None of the Loan Parties shall:
 
(i)                 offer, promise, pay, give, or authorize the payment or giving of any money, gift or other thing of value, directly or indirectly, to or for the benefit of any Foreign Official for the purpose of: (1) influencing any act or decision of such Foreign Official in his, her, or its official capacity; or (2) inducing such Foreign Official to do, or omit to do, an act in violation of the lawful duty of such Foreign Official, or (3) securing any improper advantage, in order to obtain or retain business for, or with, or to direct business to, any Person; or
 
(ii)               act or attempt to act in any manner which would subject any of the Loan Parties to liability under any Anti-Corruption Law.
 
(t)                 IPO Expenses . Permit or cause the fees and disbursements of legal counsel to the Loan Parties and their Subsidiaries (which, for greater certainty, shall not include any filing fees, underwriters’ fees, printer fees, accounting or audit fees, listing fees or any other costs of expenses to other services providers who are not legal counsel to the Loan Parties and their Subsidiaries) incurred for preparing and effecting the registration of an initial public offering of the Equity Interests of the Parent or any of its Subsidiaries (or their direct or indirect parent) (but expressly excluding fees and disbursements that are either paid from the proceeds of such initial public offering or incurred for any extraordinary or atypical matters arising in connection with such initial public offering process or the sale of such Equity Interests) to be greater than $3,000,000 for any four consecutive fiscal-quarter period of the Loan Parties and their Subsidiaries, commencing from the Effective Date and thereafter.
 
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(u)               Worldwide Cash and Cash Equivalents . Permit the aggregate cash and Cash Equivalents held by (i) any Foreign Subsidiaries (other than Rimini Street Brazil Serviços de Tecnologia Ltda. and any other Subsidiary organized in Brazil) to exceed $10,000,000 at any time or (ii) Rimini Street Brazil Serviços de Tecnologia Ltda. and any other Subsidiary organized in Brazil to exceed $6,000,000 at any time.
 
Section 7.03        Financial Covenants . So long as any principal of or interest on any Loan or any other Obligation (whether or not due) shall remain unpaid (other than Contingent Indemnity Obligations) or any Lender shall have any Commitment hereunder, each Loan Party shall not, unless the Required Lenders shall otherwise consent in writing:
 
(a)                Leverage Ratio . At any time after the Loans in respect of the Delayed Draw A Term Loan Commitments have been made hereunder, permit the Leverage Ratio of the Parent and its Subsidiaries for any period of four consecutive fiscal quarters of the Parent and its Subsidiaries for which the last quarter ends on a date set forth below to be greater than the ratio set forth opposite such date:
 
Fiscal Quarter End
Leverage Ratio
September 30, 2016
3.75 to 1.00
December 31, 2016
3.75 to 1.00
March 31, 2017
3.50 to 1.00
June 30, 2017
3.25 to 1.00
September 30, 2017
3.00 to 1.00
December 31, 2017
2.75 to 1.00
March 31, 2018
1.50 to 1.00
June 30, 2018 and on the last day of each fiscal quarter thereafter
1.00 to 1.00

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(b)               Liquidity. At any time, permit the Liquidity of the Parent and its Subsidiaries to be less than the sum of (x) the amount set forth in the table below for the applicable period:
 
Period
Amount
From the Effective Date through and including December 31, 2016
$14,000,000
From January 1, 2017 through and including January 31, 2017
$14,500,000
From February 1, 2017 through and including February 28, 2017
$15,000,000
From March 1, 2017 through and including March 31, 2017
$15,500,000
From April 1, 2017 through and including April 30, 2017
$16,000,000
From May 1, 2017 through and including May 31, 2017
$16,500,000
From June 1, 2017 through and including June 30, 2017
$17,000,000
From July 1, 2017 through and including July 31, 2017
$17,500,000
From August 1, 2017 through and including August 31, 2017
$18,000,000
From September 1, 2017 through and including September 30, 2017
$18,500,000
From October 1, 2017 through and including October 31, 2017
$19,000,000
From November 1, 2017 through and including November 30, 2017
$19,500,000
At all times from and after December 1, 2017
$20,000,000

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plus (y) the amount of any Retained Equity Issuance Proceeds at such time plus (z) with respect to any Retained Insurance Proceeds, the amounts set forth in the table below (calculated on a cumulative basis):
 
Aggregate Amount of Retained
  Insurance Proceeds
Applicable percentage of such
Retained Insurance Proceeds
to be added to the minimum
Liquidity requirement
pursuant to clause (z) above
$0 - $20,000,000
90%
$20,000,001 - $30,000,000
70%
$30,000,001 - $40,000,000
50%
Greater than  $40,000,000
0%

(c)                Churn Rate . Permit the Churn Rate of the Parent and its Subsidiaries to exceed 20% during any period of four consecutive fiscal quarters of the Parent and its Subsidiaries.
 
(d)               Asset Coverage Ratio . Permit the Asset Coverage Ratio of the Parent and its Subsidiaries as of the end of any fiscal month of the Parent and its Subsidiaries to be less than:
 
(i) at any time prior to the making of any Term Loans pursuant to the Lenders’ Delayed Draw A Term Loan Commitments, 3.00 to 1.00; and
 
(ii) at any time after the Term Loans in respect of the Lenders’ Delayed Draw A Term Loan Commitments have been made hereunder, the ratio set forth opposite the date set forth below:
 
Fiscal Month End
Asset Coverage Ratio
June 30, 2016
2.00 to 1.00
July 31, 2016
2.00 to 1.00
August 31, 2016
2.00 to 1.00
September 30, 2016
2.00 to 1.00
October 31, 2016
2.00 to 1.00
November 30, 2016
2.00 to 1.00
December 31, 2016
2.00 to 1.00
January 31, 2017
2.25 to 1.00
February 28, 2017
2.25 to 1.00
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March 31, 2017
2.25 to 1.00
April 30, 2017
2.50 to 1.00
May 31, 2017
2.50 to 1.00
June 30, 2017
2.50 to 1.00
July 31, 2017
2.75 to 1.00
August 31, 2017
2.75 to 1.00
September 30, 2017
2.75 to 1.00
October 31, 2017
2.75 to 1.00
November 30, 2017
2.75 to 1.00
December 31, 2017
2.75 to 1.00
January 31, 2018
3.25 to 1.00
February 28, 2018
3.25 to 1.00
March 31, 2018
3.25 to 1.00
April 30, 2018 and on the last day of each fiscal month thereafter
3.50 to 1.00

(e)                Marketing Return Ratio . Permit the Marketing Return Ratio of the Parent and its Subsidiaries for any period of four consecutive fiscal quarters of the Parent and its Subsidiaries to be less than 1.35 to 1.00.
 
(f)                Minimum Gross Margin . Permit the Gross Margin of the Parent and its Subsidiaries as of the end of any fiscal quarter of the Parent, for any period of four consecutive fiscal quarters of the Parent and its Subsidiaries, to be less than 55%.
 
(g)               Budget Compliance .
 
(i)                 Permit the aggregate amount of disbursements made by the Loan Parties during any month to be more than 110% of the forecasted aggregate amount of disbursements set forth in the Monthly Cash Disbursement Report for such month, as set forth in the Budget Compliance Report for such period.
 
(ii)               Permit the aggregate amount of any Specified Disbursement by the Loans Parties during any month to be more than 115% of the forecasted aggregate amount of such Specified Disbursement set forth in the Monthly Cash Disbursement Report for such month, as set forth in the Budget Compliance Report for such period.
 
(iii)             Permit the aggregate amount of customer invoices issued by the Loan Parties during any month to be less than 90% of the forecasted aggregate amount of such invoices set forth in the Monthly Cash Disbursement Report for such month, as set forth in the Budget Compliance Report for such period.
 
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ARTICLE VIII

CASH MANAGEMENT ARRANGEMENTS
AND OTHER COLLATERAL MATTERS
 
Section 8.01        Cash Management Arrangements . (a)  The Loan Parties shall (i) establish and maintain cash management services of a type and on terms reasonably satisfactory to the Agents at one or more of the banks set forth on Schedule 8.01 (each a “ Cash Management Bank ”) and (ii) except as otherwise provided under Section 8.01(b) or Section 8.01(e), deposit or cause to be deposited promptly, and in any event no later than the next Business Day after the date of receipt thereof, all proceeds in respect of any Collateral, all Collections (of a nature susceptible to a deposit in a bank account) and all other amounts received by any Loan Party (including payments made by Account Debtors directly to any Loan Party) into a primary, permanently blocked Cash Management Account (the “ Blocked Collection Account ”). The Loan Parties shall not be permitted to give instructions with respect to the Blocked Collection Account. From and after the Effective Date, the Loan Parties shall cause all Specified Collections to be deposited directly into an operating Cash Management Account of the Parent, as directed by the Parent. From and after the Effective Date, the Loan Parties shall cause all Retained Equity Issuance Proceeds and any Net Cash Proceeds of any Excluded Equity Issuances described in clause (e) of the definition thereof to be deposited directly into the Blocked Collection Account.
 
(b)               On or prior to the Effective Date, the Loan Parties shall, with respect to each Cash Management Account (other than Excluded Accounts), deliver to the Collateral Agent a Control Agreement with respect to such Cash Management Account. The Loan Parties shall not maintain, and shall not permit any of their Domestic Subsidiaries to maintain, cash, Cash Equivalents or other amounts in any deposit account or securities account, unless the Collateral Agent shall have received a Control Agreement in respect of each such Cash Management Account (other than Excluded Accounts).
 
(c)                Not less than five 5 Business Days prior to the end of each month, the Parent shall deliver a certificate to the Agents, detailing the Loan Parties’ estimated aggregate customer billed invoices and the Loan Parties’ exact cash disbursement needs for the succeeding month (each, a “ Monthly Cash Disbursement Report ”); provided , that, during the first three full fiscal months after the Effective Date, the Parent shall also deliver a disbursement report with respect to (i) the first 15 days of such month, simultaneous with the delivery of the Monthly Cash Disbursement Report and (ii) the remainder of such month, not less than the 12 th day of each such month (each, a “ Semi-Monthly Report ”). Each such report shall also include a report of the Loan Parties’ actual disbursements for the immediately preceding month with a comparison to the projected cash disbursements in the Monthly Cash Disbursement Report for such month (the “ Budget Compliance Report ”). Subject to the Origination Agent’s timely receipt and satisfaction with the Monthly Cash Disbursement Report (or, during the first three full fiscal months after the Effective Date, the Semi-Monthly Report), so long as no Event of Default has occurred and is continuing, the Origination Agent will direct the Collateral Agent in writing to direct, and the Collateral Agent shall direct, the Cash Management Bank to transfer the cash disbursement needs set forth in each Monthly Cash Disbursement Report (or, during the first three full fiscal months after the Effective Date, the Semi-Monthly Report) from the Blocked Collection Account to a Cash Management Account that is an operating or disbursement account of the Loan Parties on the first Business Day of the following month (or the 15 th day of such month, if applicable); provided , that the Origination Agent may, in its discretion, direct the Collateral Agent to direct the Cash Management Bank to transfer additional disbursements from the Blocked Collection Account to an operating or disbursement account of the Loan Parties at additional times and in additional amounts. Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent may direct the Cash Management Bank to transfer funds in any Cash Management Account to the Administrative Agent’s Account.
 
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(d)               So long as no Default or Event of Default has occurred and is continuing, the Borrowers may amend Schedule 8.01 to add or replace a Cash Management Bank or Cash Management Account; provided , however , that (i) such prospective Cash Management Bank shall be reasonably satisfactory to the Origination Agent and the Collateral Agent shall have consented (such consent not to be unreasonably withheld or delayed) in writing in advance to the opening of such Cash Management Account (other than Excluded Accounts) with the prospective Cash Management Bank, and (ii) prior to the time of the opening of such Cash Management Account (other than Excluded Accounts), each Loan Party and such prospective Cash Management Bank shall have executed and delivered to the Collateral Agent a Control Agreement. Each Loan Party shall close any of its Cash Management Accounts (and establish replacement cash management accounts in accordance with the foregoing sentence) promptly and in any event within 30 days of notice from the Collateral Agent that the creditworthiness of any Cash Management Bank is no longer acceptable in the Origination Agent’s reasonable judgment, or that the operating performance, funds transfer, or availability procedures or performance of such Cash Management Bank with respect to Cash Management Accounts (other than Excluded Accounts) or the Collateral Agent’s liability under any Control Agreement with such Cash Management Bank is no longer acceptable in the Origination Agent’s reasonable judgment.
 
(e)                The proceeds of the Term Loan made on the Effective Date shall be disbursed and deposited as set forth in the Disbursement Letter. The Administrative Agent shall deposit the proceeds of each Term Loan made after the Effective Date pursuant to the instructions set forth in the applicable Notice of Borrowing.
 
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ARTICLE IX

EVENTS OF DEFAULT
 
Section 9.01        Events of Default . Each of the following events shall constitute an event of default (each, an “ Event of Default ”):
 
(a)                any Borrower shall fail to pay, when due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), (i) any interest on any Loan, any Origination Agent Advance, or any fee, indemnity or other amount payable under this Agreement (other than any portion thereof constituting principal of the Loans) or any other Loan Document, and such failure continues for a period of three Business Days or (ii) all or any portion of the principal of the Loans;
 
(b)               any representation or warranty made or deemed made by or on behalf of any Loan Party or by any officer of the foregoing under or in connection with any Loan Document or under or in connection with any certificate or other writing delivered to any Secured Party pursuant to any Loan Document shall have been incorrect in any material respect (or in any respect if such representation or warranty is qualified or modified as to materiality or “Material Adverse Effect” in the text thereof) when made or deemed made;
 
(c)                any Loan Party shall fail to perform or comply with any covenant or agreement contained in Section 7.01(a), Section 7.01(c), Section 7.01(d) (as to preservation and maintenance of existence), Section 7.01(f), Section 7.01(h), Section 7.01(k), Section 7.01(q), Section 7.02 or Section 7.03 or Article VIII, or any Loan Party shall fail to perform or comply with Sections 6(g), 6(h), 6(j) and 6(l) (other than 6(l)(ii) of the Security Agreement) of the Security Agreement;
 
(d)               any Loan Party shall fail to perform or comply with any other term, covenant or agreement contained in any Loan Document to be performed or observed by it and, except as set forth in subsections (a), (b) and (c) of this Section 9.01, such failure, if capable of being remedied, shall remain unremedied for 25 days (or, in the case of (i) Section 7.01(o), 5 Business Days and (ii) Section 6(l)(ii) of the Security Agreement, 5 Business Days) after the earlier of the date an Authorized Officer of any Loan Party has knowledge of such failure and the date written notice of such default shall have been given by any Agent to such Loan Party;
 
(e)                the Parent or any of its Subsidiaries shall fail to pay when due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise) any principal, interest or other amount payable in respect of Indebtedness (excluding Indebtedness evidenced by this Agreement) having an aggregate amount outstanding in excess of $1,000,000, and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Indebtedness, or any other default under any agreement or instrument relating to any such Indebtedness, or any other event, shall occur and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such default or event is to accelerate, or to permit the acceleration of, the maturity of such Indebtedness; or any such Indebtedness shall be declared to be due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), redeemed, purchased or defeased or an offer to prepay, redeem, purchase or defease such Indebtedness shall be required to be made, in each case, prior to the stated maturity thereof;
 
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(f)                the Parent or any of its Subsidiaries (other than an Immaterial Subsidiary) (i) shall institute any proceeding or voluntary case seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution, liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency, reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for any such Person or for any substantial part of its property, (ii) shall be generally not paying its debts as such debts become due or shall admit in writing its inability to pay its debts generally, (iii) shall make a general assignment for the benefit of creditors, or (iv) shall take any action to authorize or effect any of the actions set forth above in this subsection (f);
 
(g)               any proceeding shall be instituted against the Parent or any of its Subsidiaries (other than an Immaterial Subsidiary) seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution, liquidation, winding up, reorganization, arrangement, adjustment, protection, relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for any such Person or for any substantial part of its property, and either such proceeding shall remain undismissed or unstayed for a period of 30 days or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against any such Person or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property) shall occur;
 
(h)               any material provision of any Loan Document shall at any time for any reason (other than pursuant to the express terms thereof) cease to be valid and binding on or enforceable against any Loan Party intended to be a party thereto, or the validity or enforceability thereof shall be contested by any Loan Party thereto, or a proceeding shall be commenced by any Loan Party or any Governmental Authority having jurisdiction over any of them, seeking to establish the invalidity or unenforceability thereof, or any Loan Party shall deny in writing that it has any liability or obligation purported to be created under any Loan Document;
 
(i)                 any Security Agreement, any Mortgage or any other security document that is a Loan Document, after delivery thereof pursuant hereto, shall for any reason fail or cease to create a valid and perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien (subject to Permitted Liens) in favor of the Collateral Agent for the benefit of the Agents and the Lenders on any Collateral purported to be covered thereby, except to the extent that any such loss of perfection or priority results solely from the limitations of foreign laws, rules and regulations as they apply to pledges of Equity Interests in Foreign Subsidiaries or the application thereof, or from the failure of the Collateral Agent to maintain possession of certificates actually delivered to it representing securities pledged under the Security Agreement or other Loan Document or to file Uniform Commercial Code continuation statements and except to the extent, in the case of a Mortgage, that such loss is covered by a lender’s title insurance policy and the Collateral Agent (acting at the direction of the Required Lenders) shall be reasonably satisfied with the credit of such insurer;
 
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(j)                 any of the following shall occur:
 
(i)                 other than with respect to the Oracle Litigation, one or more judgments, orders or awards (or any settlement of any litigation or other proceeding that, if breached, could result in a judgment, order or award) for the payment of money exceeding $1,000,000 in the aggregate (except to the extent fully covered (other than to the extent of customary deductibles) by insurance pursuant to which the insurer has been notified and has not denied coverage) shall be rendered against any Loan Party and remain unsatisfied and (A) enforcement proceedings shall have been commenced by any creditor upon any such judgment, order, award or settlement or (B) there shall be a period of 10 consecutive days after entry thereof during which (x) a stay of enforcement thereof is not be in effect or (y) the same is not vacated, discharged, stayed or bonded pending appeal,
 
(ii)               with respect to the litigation described in clause (i) of the definition of Oracle Litigation, either (I) one or more judgments, orders or awards (or any settlement of any litigation or other proceeding that, if breached, could result in a judgment, order or award) for the payment of money exceeding the Threshold Amount in the aggregate (except to the extent fully covered (other than to the extent of customary deductibles) by insurance pursuant to which the insurer has been notified and has not denied coverage) shall be rendered against any Loan Party and remain unsatisfied and (A) enforcement proceedings shall have been commenced by any creditor upon any such judgment, order, award or settlement, or (B) there shall be a period of 10 consecutive days after entry thereof during which (x) a stay of enforcement thereof is not be in effect or (y) the same is not vacated, discharged, stayed or bonded pending appeal, or (II) a Loan Party appeals an Appealable Claim in respect of such litigation and, as a result of any such appeal, a material increase to such award or judgment is entered, or
 
(iii)             with respect to the litigation described in clause (ii) of the definition of Oracle Litigation, an event or development occurs which would have a Material Adverse Effect;
 
(k)               the Parent or any of its Subsidiaries is enjoined, restrained or in any way prevented by the order of any court or any Governmental Authority (other than if an order has been obtained suspending such enjoinment or restraint) from conducting all or any material part of the Parent’s business for more than 15 days;
 
(l)                 in each case to the extent not covered by insurance, any material damage to, or loss, theft or destruction of, any Collateral, or any strike, lockout, labor dispute, embargo, condemnation, act of God or public enemy, or other casualty which causes, for more than 15 consecutive days, the cessation or substantial curtailment of revenue producing activities of any Loan Party, if any such event or circumstance could reasonably be expected to have a Material Adverse Effect;
 
(m)             the indictment of the Parent or any of its Subsidiaries or the chief executive officer, chief financial officer, chief information officer, chief operating officer or president thereof under any criminal statute, or commencement of criminal or civil proceedings against the Parent or any of its Subsidiaries or the chief executive officer, chief financial officer, chief information officer, chief operating officer or president thereof, pursuant to which statute or proceedings the penalties or remedies sought include forfeiture to any Governmental Authority of any Collateral with an aggregate value in excess of $1,000,000;
 
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(n)               any Loan Party or any of its ERISA Affiliates shall have made a complete or partial withdrawal from a Multiemployer Plan, and, as a result of such complete or partial withdrawal, any Loan Party or any of its ERISA Affiliates incurs a withdrawal liability in an annual amount exceeding $1,000,000; or a Multiemployer Plan enters reorganization status under Section 4241 of ERISA, and, as a result thereof any Loan Party’s or any of its ERISA Affiliates’ annual contribution requirements with respect to such Multiemployer Plan increases in an annual amount exceeding $1,000,000;
 
(o)               any Termination Event with respect to any Employee Plan shall have occurred, and, 30 days after notice thereof shall have been given to any Loan Party by any Agent, (i) such Termination Event (if correctable) shall not have been corrected, and (ii) the then current value of such Employee Plan’s vested benefits exceeds the then current value of assets allocable to such benefits in such Employee Plan by more than $1,000,000 (or, in the case of a Termination Event involving liability under Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 4971 or 4975 of the Internal Revenue Code, the liability is in excess of such amount);
 
(p)               a Change of Control shall occur; or
 
(q)               the Cooperation Party shall fail to perform or comply with any term, covenant or agreement contained in the Cooperation Agreement to be performed or observed by it,
 
then, and in any such event, the Collateral Agent and the Administrative Agent shall, at the written request of the Required Lenders, by notice to the Administrative Borrower, (i) terminate or reduce all Commitments, whereupon all Commitments shall immediately be so terminated or reduced, (ii) declare all or any portion of the Loans then outstanding to be accelerated and due and payable, whereupon all or such portion of the aggregate principal of all Loans, all accrued and unpaid interest thereon, all fees and all other amounts payable under this Agreement and the other Loan Documents shall become due and payable immediately, together with the payment of the Applicable Premium with respect to the Commitments so terminated and the Loans so repaid, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by each Loan Party and (iii) exercise any and all of its other rights and remedies under applicable law, hereunder and under the other Loan Documents; provided , however , that upon the occurrence of any Event of Default described in subsection (f) or (g) of this Section 9.01 with respect to any Loan Party, without any notice to any Loan Party or any other Person or any act by any Agent or any Lender, all Commitments shall automatically terminate and all Loans then outstanding, together with all accrued and unpaid interest thereon, all fees and all other amounts due under this Agreement and the other Loan Documents, including, without limitation, the Applicable Premium, shall be accelerated and become due and payable automatically and immediately, without presentment, demand, protest or notice of any kind, all of which are expressly waived by each Loan Party. 
 
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ARTICLE X

AGENTS
 
Section 10.01          Appointment . Each Lender (and each subsequent maker of any Loan by its making thereof) hereby irrevocably appoints, authorizes and empowers the Origination Agent, the Administrative Agent and the Collateral Agent to perform the duties of each such Agent as set forth in this Agreement and the other Loan Documents, together with such actions and powers as are reasonably incidental thereto, including, as applicable to such Agent: (i) to receive on behalf of each Lender any payment of principal of or interest on the Loans outstanding hereunder and all other amounts accrued hereunder for the account of the Lenders and paid to such Agent, and, subject to Section 2.02 of this Agreement, to distribute promptly to each Lender its Pro Rata Share of all payments so received; (ii) to distribute to each Lender copies of all material notices and agreements received by such Agent and not required to be delivered to each Lender pursuant to the terms of this Agreement, provided that the Agents shall not have any liability to the Lenders for any Agent’s inadvertent failure to distribute any such notices or agreements to the Lenders; (iii) to maintain, in accordance with its customary business practices, ledgers and records reflecting the status of the Obligations, the Loans, and related matters and to maintain, in accordance with its customary business practices, ledgers and records reflecting the status of the Collateral and related matters; (iv) to execute or file any and all financing or similar statements or notices, amendments, renewals, supplements, documents, instruments, proofs of claim, notices and other written agreements with respect to this Agreement or any other Loan Document; (v) to make the Loans and Origination Agent Advances, for such Agent or on behalf of the applicable Lenders as provided in this Agreement or any other Loan Document; (vi) to perform, exercise, and enforce any and all other rights and remedies of the Lenders with respect to the Loan Parties, the Obligations, or otherwise related to any of same to the extent reasonably incidental to the exercise by such Agent of the rights and remedies specifically authorized to be exercised by such Agent by the terms of this Agreement or any other Loan Document; (vii)  to incur and pay such fees necessary or appropriate for the performance and fulfillment of its functions and powers pursuant to this Agreement or any other Loan Document; (viii) subject to Section 10.03, to take such action as such Agent deems appropriate on its behalf to administer the Loans and the Loan Documents and to exercise such other powers delegated to such Agent by the terms hereof or the other Loan Documents (including, without limitation, the power to give or to refuse to give notices, waivers, consents, approvals and instructions and the power to make or to refuse to make determinations and calculations); and (ix) to act with respect to all Collateral under the Loan Documents, including for purposes of acquiring, holding and enforcing any and all Liens on Collateral granted by any of the Loan Parties to secure any of the Obligations. As to any matters not expressly provided for by this Agreement and the other Loan Documents (including, without limitation, enforcement or collection of the Loans), the Agents shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the written instructions of the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents) and in the case of the Collateral Agent and the Administrative Agent, as applicable, upon the written instructions of the Origination Agent, and such instructions of the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents) and the Origination Agent, as applicable, shall be binding upon all Lenders and all makers of Loans; provided , however , the Agents shall not be required to take any action which, in the reasonable opinion of any Agent, exposes such Agent to liability or which is contrary to this Agreement or any other Loan Document or applicable law.
 
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Section 10.02          Nature of Duties; Delegation . (a) The Agents shall have no duties or responsibilities except those expressly set forth in this Agreement or in the other Loan Documents. The duties of the Agents shall be mechanical and administrative in nature. The Agents shall not have by reason of this Agreement or any other Loan Document a fiduciary relationship in respect of any Lender. Nothing in this Agreement or any other Loan Document, express or implied, is intended to or shall be construed to impose upon the Agents any obligations in respect of this Agreement or any other Loan Document except as expressly set forth herein or therein. Each Lender shall make its own independent investigation of the financial condition and affairs of the Loan Parties in connection with the making and the continuance of the Loans hereunder and shall make its own appraisal of the creditworthiness of the Loan Parties and the value of the Collateral, and the Agents shall have no duty or responsibility, either initially or on a continuing basis, to provide any Lender with any credit or other information with respect thereto, whether coming into their possession before the initial Loan hereunder or at any time or times thereafter, provided that, upon the reasonable written request of a Lender, each Agent shall provide to such Lender any documents or reports delivered to such Agent by the Loan Parties pursuant to the terms of this Agreement or any other Loan Document. If any Agent seeks the consent or approval of the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents) or in the case of the Collateral Agent and the Administrative Agent, as applicable, seeks the consent or approval of the Origination Agent, to the taking or refraining from taking any action hereunder, such Agent shall send notice thereof to each Lender. Each Agent shall promptly notify each Lender any time that the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents) or in the case of the Collateral Agent and the Administrative Agent, as applicable, the Origination Agent have instructed such Agent to act or refrain from acting pursuant hereto.
 
(b)               Each Agent may, upon any term or condition it specifies, delegate or exercise any of its rights, powers and remedies under, and delegate or perform any of its duties or any other action with respect to, any Loan Document by or through any trustee, co-agent, employee, attorney-in-fact and any other Person (including any Lender). Any such Person shall benefit from this Article X to the extent provided by the applicable Agent.
 
Section 10.03          Rights, Exculpation, Etc . The Agents and their Related Parties shall not be liable for any action taken or omitted to be taken by them under or in connection with this Agreement or the other Loan Documents, except for their own gross negligence or willful misconduct as determined by a final non-appealable judgment of a court of competent jurisdiction. Without limiting the generality of the foregoing, the Agents (i) may treat the payee of any Loan as the owner thereof until the Collateral Agent receives written notice of the assignment or transfer thereof, pursuant to Section 12.07 hereof, signed by such payee and in form reasonably satisfactory to the Origination Agent; (ii) may consult with legal counsel (including, without limitation, counsel to any Agent or counsel to the Loan Parties), independent public accountants, and other experts selected by any of them and shall not be liable for any action taken or omitted to be taken in good faith by any of them in accordance with the advice of such counsel or experts; (iii) make no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, certificates, warranties or representations made in or in connection with this Agreement or the other Loan Documents; (iv) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement or the other Loan Documents on the part of any Person, the existence or possible existence of any Default or Event of Default, or to inspect the Collateral or other property (including, without limitation, the books and records) of any Person; (v) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto; and (vi) shall not be deemed to have made any representation or warranty regarding the existence, value or collectibility of the Collateral, the existence, priority or perfection of the Collateral Agent’s Lien thereon, or any certificate prepared by any Loan Party in connection therewith, nor shall the Agents be responsible or liable to the Lenders for any failure to monitor or maintain any portion of the Collateral. The Agents shall not be liable for any apportionment or distribution of payments made in good faith pursuant to Section 4.03, and if any such apportionment or distribution is subsequently determined to have been made in error, and the sole recourse of any Lender to whom payment was due but not made shall be to recover from other Lenders any payment in excess of the amount which they are determined to be entitled. The Agents may at any time request instructions from the Lenders with respect to any actions or approvals which by the terms of this Agreement or of any of the other Loan Documents the Agents are permitted or required to take or to grant, and if such instructions are promptly requested, the Agents shall be absolutely entitled to refrain from taking any action or to withhold any approval under any of the Loan Documents until they shall have received such instructions from the Required Lenders and, if it so requests, it shall first be indemnified to its satisfaction by the Lenders against any liability and expense which may be incurred by it by reason of taking or continuing to take such action. Without limiting the foregoing, no Lender shall have any right of action whatsoever against any Agent as a result of such Agent acting or refraining from acting under this Agreement or any of the other Loan Documents in accordance with the instructions of the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents) or in the case of the Collateral Agent and the Administrative Agent, as applicable, in accordance with the instructions of the Origination Agent.
 
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Section 10.04          Reliance . Each Agent shall be entitled to rely upon any written notices, statements, certificates, orders or other documents or any telephone message or electronic mail message believed by it in good faith to be genuine and correct and to have been signed, sent or made by the proper Person, and with respect to all matters pertaining to this Agreement or any of the other Loan Documents and its duties hereunder or thereunder, and upon advice and statements of legal counsel (including counsel to any Borrower), independent accountants and other experts selected by the Agent.
 
Section 10.05          Indemnification . To the extent that any Agent or its Related Parties are not timely reimbursed or indemnified by any Loan Party, and whether or not such Agent has made demand on any Loan Party for the same, the Lenders will, within five days of written demand by such Agent, reimburse and indemnify such Agent and its Related Parties from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including, without limitation, client charges and expenses of counsel or any other advisor to such Agent), advances or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against such Agent or its Related Parties in any way relating to or arising out of this Agreement or any of the other Loan Documents or any action taken or omitted by such Agent or its Related Parties under this Agreement or any of the other Loan Documents, in proportion to each Lender’s Pro Rata Share, including, without limitation, advances and disbursements made pursuant to Section 10.08; provided , however , that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses, advances or disbursements for which there has been a final non-appealable judicial determination that such liability resulted from such Agent’s or its Related Party’s gross negligence or willful misconduct; and provided, however, that no action taken in furtherance of the directions of the Required Lenders or of the Origination Agent permitted under any Loan Document shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section 10.05. The obligations of the Lenders hereunder shall not diminish the obligations of the Loan Parties to indemnify and reimburse the Agents and their Related Parties for such amounts. The obligations of the Lenders under this Section 10.05 shall survive the payment in full of the Loans, the termination of this Agreement and the resignation of any Agent.
 
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Section 10.06          Agents Individually . If an Agent is a Lender hereunder, such Agent shall have and may exercise the same rights and powers hereunder and is subject to the same obligations and liabilities as and to the extent set forth herein for any other Lender or maker of a Loan. The terms “Lenders” or “Required Lenders” or any similar terms shall, unless the context clearly otherwise indicates, include each Agent (if such Agent is a Lender hereunder) in its individual capacity as a Lender or one of the Required Lenders. Each Agent and its Affiliates may accept deposits from, lend money to, and generally engage in any kind of banking, trust or other business with any Borrower as if it were not acting as an Agent pursuant hereto without any duty to account to the other Lenders.
 
Section 10.07          Successor Agent . (a)  Any Agent may at any time give at least 30 days prior written notice of its resignation to the Lenders and the Administrative Borrower. Upon receipt of any such notice of resignation, the Required Lenders shall have the right to appoint, in consultation with the Administrative Borrower (so long as no Event of Default has occurred and is continuing), a successor Agent. If no such successor Agent shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the “ Resignation Effective Date ”), then the retiring Agent may (but shall not be obligated to), on behalf of the Secured Parties, in consultation with the Administrative Borrower (so long as no Event of Default has occurred and is continuing), appoint a successor Agent. Whether or not a successor Agent has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date. Upon the Resignation Effective Date, such retiring Agent shall be paid any and all reasonable fees and expenses due and owing to such retiring Agent, whether under the terms of the Agent Fee Letter, this Agreement or any other Loan Document.
 
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(b)               With effect from the Resignation Effective Date, (i) the retiring Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any Collateral held by such Agent on behalf of the Secured Parties under any of the Loan Documents, the retiring Agent shall continue to hold such collateral security until such time as a successor Agent is appointed) and (ii) all payments, communications and determinations provided to be made by, to or through such retiring Agent shall instead be made by or to each Lender directly, until such time, if any, as a successor Agent shall have been appointed as provided for above. Upon the acceptance of a successor’s Agent’s appointment as Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents. After the retiring Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article, Section 12.04 and Section 12.15 shall continue in effect for the benefit of such retiring Agent in respect of any actions taken or omitted to be taken by it while the retiring Agent was acting as Agent.
 
Section 10.08          Collateral Matters .
 
(a)                Subject to providing prior written notice to the Borrowers ( provided , that, if (i) extenuating circumstances make the giving of such prior written notice impractical in the reasonable judgment of the Origination Agent or (ii) an Event of Default has occurred and is continuing, then, in the case of clause (i) or (ii) above, such prior notice shall not be required), the Origination Agent may from time to time make such disbursements and advances (“ Origination Agent Advances ”) which the Origination Agent, in its reasonable discretion, deems necessary or desirable to preserve, protect, prepare for sale or lease or dispose of the Collateral or any portion thereof, to enhance the likelihood or maximize the amount of repayment by the Borrowers of the Loans and other Obligations or to pay any other amount chargeable to the Borrowers pursuant to the terms of this Agreement, including, without limitation, costs, fees and expenses as described in Section 12.04. The Origination Agent Advances shall be repayable on demand and be secured by the Collateral and shall bear interest at a rate per annum equal to the rate then applicable to the Loans. The Origination Agent Advances shall constitute Obligations hereunder which may be charged to the Loan Account in accordance with Section 4.01. The Origination Agent shall notify each Lender and the Administrative Borrower in writing of each such Origination Agent Advance, which notice shall include a description of the purpose of such Origination Agent Advance. Without limitation to its obligations pursuant to Section 10.05, each Lender agrees that it shall make available to the Origination Agent, upon the Origination Agent’s demand, in Dollars in immediately available funds, the amount equal to such Lender’s Pro Rata Share of each such Origination Agent Advance. If such funds are not made available to the Origination Agent by such Lender, the Origination Agent shall be entitled to recover such funds on demand from such Lender, together with interest thereon for each day from the date such payment was due until the date such amount is paid to the Origination Agent, at the Federal Funds Rate for three Business Days and thereafter at the rate applicable to the Loans.
 
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(b)               The Lenders hereby irrevocably authorize the Collateral Agent, at its option and in its discretion, to release any Lien granted to or held by the Collateral Agent upon any Collateral upon termination of the Total Term Loan Commitment and payment and satisfaction of all Loans and all other Obligations (other than Contingent Indemnification Obligations) in accordance with the terms hereof; or constituting property being sold or disposed of in the ordinary course of any Loan Party’s business or otherwise in compliance with the terms of this Agreement and the other Loan Documents; or constituting property in which the Loan Parties owned no interest at the time the Lien was granted or at any time thereafter; or if approved, authorized or ratified in writing by the Lenders in accordance with Section 12.02. Upon request by the Collateral Agent at any time, the Lenders will confirm in writing the Collateral Agent’s authority to release particular types or items of Collateral pursuant to this Section 10.08(b).
 
(c)                Without in any manner limiting the Collateral Agent’s authority to act without any specific or further authorization or consent by the Lenders (as set forth in Section 10.08(b)), each Lender agrees to confirm in writing, upon request by the Collateral Agent, the authority to release Collateral conferred upon the Collateral Agent under Section 10.08(b). Upon receipt by the Collateral Agent of confirmation from the Lenders of its authority to release any particular item or types of Collateral, and upon prior written request by any Loan Party, the Collateral Agent shall (and is hereby irrevocably authorized by the Lenders to) execute such documents as may be necessary to evidence the release of the Liens granted to the Collateral Agent for the benefit of the Agents and the Lenders upon such Collateral; provided , however , that (i) the Collateral Agent shall not be required to execute any such document on terms which, in the Collateral Agent’s opinion, would expose the Collateral Agent to liability or create any obligations or entail any consequence other than the release of such Liens without recourse or warranty, and (ii) such release shall not in any manner discharge, affect or impair the Obligations or any Lien upon (or obligations of any Loan Party in respect of) all interests in the Collateral retained by any Loan Party.
 
(d)               Anything contained in any of the Loan Documents to the contrary notwithstanding, the Loan Parties, each Agent and each Lender hereby agree that (i) no Lender shall have any right individually to realize upon any of the Collateral under any Loan Document or to enforce any Guaranty, it being understood and agreed that all powers, rights and remedies under the Loan Documents may be exercised solely by the Collateral Agent for the benefit of the Lenders in accordance with the terms thereof, (ii) in the event of a foreclosure by the Collateral Agent on any of the Collateral pursuant to a public or private sale, the Administrative Agent, the Collateral Agent or any Lender may be the purchaser of any or all of such Collateral at any such sale and (iii) the Collateral Agent, as agent for and representative of the Agents and the Lenders (but not any other Agent or any Lender or Lenders in its or their respective individual capacities unless the Required Lenders shall otherwise agree in writing) shall be entitled (either directly or through one or more acquisition vehicles) for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral to be sold (A) at any public or private sale, (B) at any sale conducted by the Collateral Agent under the provisions of the Uniform Commercial Code (including pursuant to Sections 9-610 or 9-620 of the Uniform Commercial Code), (C) at any sale or foreclosure conducted by the Collateral Agent (whether by judicial action or otherwise) in accordance with applicable law or (D) any sale conducted pursuant to the provisions of any Debtor Relief Law (including Section 363 of the Bankruptcy Code), to use and apply all or any of the Obligations as a credit on account of the purchase price for any Collateral payable by the Collateral Agent at such sale.
 
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(e)                The Collateral Agent shall have no obligation whatsoever to any Lender to assure that the Collateral exists or is owned by the Loan Parties or is cared for, protected or insured or has been encumbered or that the Lien granted to the Collateral Agent pursuant to this Agreement or any other Loan Document has been properly or sufficiently or lawfully created, perfected, protected or enforced or is entitled to any particular priority, or to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to the Collateral Agent in this Section 10.08 or in any other Loan Document, it being understood and agreed that in respect of the Collateral, or any act, omission or event related thereto, the Collateral Agent may act in any manner it may deem appropriate, in its sole discretion, given the Collateral Agent’s own interest in the Collateral as one of the Lenders and that the Collateral Agent shall have no duty or liability whatsoever to any other Lender, except as otherwise provided herein.
 
Section 10.09          Agency for Perfection . Each Agent and each Lender hereby appoints each other Agent and each other Lender as agent and bailee for the purpose of perfecting the security interests in and liens upon the Collateral in assets which, in accordance with Article 9 of the Uniform Commercial Code, can be perfected only by possession or control (or where the security interest of a secured party with possession or control has priority over the security interest of another secured party) and each Agent and each Lender hereby acknowledges that it holds possession of or otherwise controls any such Collateral for the benefit of the Agents and the Lenders as secured party. Should the Administrative Agent or any Lender obtain possession or control of any such Collateral, the Administrative Agent or such Lender shall notify the Collateral Agent thereof, and, promptly upon the Collateral Agent’s request therefor shall deliver such Collateral to the Collateral Agent or in accordance with the Collateral Agent’s instructions. In addition, the Collateral Agent shall also have the power and authority hereunder to appoint such other sub-agents as may be necessary or required under applicable state law or otherwise to perform its duties and enforce its rights with respect to the Collateral and under the Loan Documents. Each Loan Party by its execution and delivery of this Agreement hereby consents to the foregoing.
 
Section 10.10          No Reliance on any Agent’s Customer Identification Program . Each Lender acknowledges and agrees that neither such Lender, nor any of its Affiliates, participants or assignees, may rely on any Agent to carry out such Lender’s, Affiliate’s, participant’s or assignee’s customer identification program, or other requirements imposed by the USA PATRIOT Act or the regulations issued thereunder, including the regulations set forth in 31 C.F.R. §§ 1010.100(yy), (iii), 1020.100, and 1020.220 (formerly 31 C.F.R. § 103.121), as hereafter amended or replaced (“CIP Regulations”), or any other Anti-Terrorism Laws, including any programs involving any of the following items relating to or in connection with any of the Loan Parties, their Affiliates or their agents, the Loan Documents or the transactions hereunder or contemplated hereby: (1) any identity verification procedures, (2) any recordkeeping, (3) comparisons with government lists, (4) customer notices or (5) other procedures required under the CIP Regulations or other regulations issued under the USA PATRIOT Act. Each Lender, Affiliate, participant or assignee subject to Section 326 of the USA PATRIOT Act will perform the measures necessary to satisfy its own responsibilities under the CIP Regulations.
 
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Section 10.11          No Third Party Beneficiaries . The provisions of this Article are solely for the benefit of the Secured Parties, and no Loan Party shall have rights as a third-party beneficiary of any of such provisions.
 
Section 10.12          No Fiduciary Relationship . It is understood and agreed that the use of the term “agent” herein or in any other Loan Document (or any other similar term) with reference to any Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.
 
Section 10.13          Reports; Confidentiality; Disclaimers . By becoming a party to this Agreement, each Lender:
 
(a)                is deemed to have requested that each Agent furnish such Lender, promptly after it becomes available, a copy of each field audit or examination report with respect to the Parent or any of its Subsidiaries (each, a “ Report ”) prepared by or at the request of such Agent, and each Agent shall so furnish each Lender with each such Report,
 
(b)               expressly agrees and acknowledges that the Agents (i) do not make any representation or warranty as to the accuracy of any Reports, and (ii) shall not be liable for any information contained in any Reports,
 
(c)                expressly agrees and acknowledges that the Reports are not comprehensive audits or examinations, that any Agent or other party performing any audit or examination will inspect only specific information regarding the Parent and its Subsidiaries and will rely significantly upon the Parent’s and its Subsidiaries’ books and records, as well as on representations of their personnel,
 
(d)               agrees to keep all Reports and other material, non-public information regarding the Parent and its Subsidiaries and their operations, assets, and existing and contemplated business plans in a confidential manner in accordance with Section 12.19, and
 
(e)                without limiting the generality of any other indemnification provision contained in this Agreement, agrees: (i) to hold any Agent and any other Lender preparing a Report harmless from any action the indemnifying Lender may take or fail to take or any conclusion the indemnifying Lender may reach or draw from any Report in connection with any loans or other credit accommodations that the indemnifying Lender has made or may make to the Borrowers, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a loan or loans of the Borrowers, and (ii) to pay and protect, and indemnify, defend and hold any Agent and any other Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including, attorney’s fees and costs) incurred by any such Agent and any such other Lender preparing a Report as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender.
 
Section 10.14          Collateral Custodian . Upon the occurrence and during the continuance of any Event of Default, the Collateral Agent or its designee may at any time and from time to time employ and maintain on the premises of any Loan Party a custodian selected by the Collateral Agent or its designee who shall have full authority to do all acts necessary to protect the Agents’ and the Lenders’ interests. Each Loan Party hereby agrees to, and to cause its Subsidiaries to, cooperate with any such custodian and to do whatever the Collateral Agent or its designee may reasonably request to preserve the Collateral. All costs and expenses incurred by the Collateral Agent or its designee by reason of the employment of the custodian shall be the responsibility of the Borrowers and charged to the Loan Account.
 
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Section 10.15          Collateral Agent May File Proofs of Claim . In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the Collateral Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether any Agent shall have made any demand on the Borrowers) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:
 
(a)                to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Secured Parties (including any claim for the compensation, expenses, disbursements and advances of the Secured Parties and their respective agents and counsel and all other amounts due the Secured Parties hereunder and under the other Loan Documents) allowed in such judicial proceeding; and
 
(b)               to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;
 
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Secured Party to make such payments to the Collateral Agent and, in the event that the Collateral Agent shall consent to the making of such payments directly to the Secured Parties, to pay to the Collateral Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Collateral Agent and its agents and counsel, and any other amounts due the Collateral Agent hereunder and under the other Loan Documents.
 
Section 10.16    Origination Agent as Advisor . Each Lender acknowledges that certain affiliates of Colbeck now are and may hereafter be advisors to the Parent and its Subsidiaries (the “ Affiliated Advisors ”), and the Affiliated Advisors may exercise their rights as advisors of the Loan Parties, in each case as though affiliates of Colbeck were not the Origination Agent or Lenders hereunder and without accounting to, or incurring any liability to, the Lenders as a result thereof. Notwithstanding the role of advisors to the Parent and its Subsidiaries, Colbeck and any funds or accounts managed by any Affiliate of Colbeck that are Lenders (collectively, “ Colbeck Lenders ”) shall have the same rights and powers hereunder as any Lender with respect to their Commitments, the Loans made by the Colbeck Lenders and the other obligations owing hereunder to the Colbeck Lenders, and the Colbeck Lenders may exercise the same rights and powers as if such Affiliated Advisors were not advisors to the Parent and its Subsidiaries. Colbeck’s affiliates are executing this Agreement solely in their capacities as Origination Agent and Lender and shall have no duties or responsibilities to the Lenders or any fiduciary responsibility to the Lenders, and no express or implied covenants, functions, responsibilities, duties, obligations or liabilities (for the performance by any Loan Party hereunder or otherwise) shall be read into this Agreement or any other Loan Document or exist against Colbeck or any Colbeck Lender, by reason of the Affiliated Advisors’ role as advisors to the Parent and its Subsidiaries. It is understood and agreed that Colbeck, its Related Funds and Affiliates (including, without limitation, the Origination Agent) may receive fees, Equity Interests and other compensation in connection with the arrangement of this Agreement and related Transactions that other Lenders are not receiving, and Colbeck, its Related Funds and Affiliates shall have no obligation to share such fees, Equity Interests and other compensation or account for such amounts and will not assume any additional duties or obligations to the Lenders by reason of the foregoing.
 
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ARTICLE XI

GUARANTY
 
Section 11.01          Guaranty . Each Guarantor hereby jointly and severally and unconditionally and irrevocably guarantees the punctual payment when due, whether at stated maturity, by acceleration or otherwise, of all Obligations of the Borrowers now or hereafter existing under any Loan Document, whether for principal, interest (including, without limitation, all interest that accrues after the commencement of any Insolvency Proceeding of any Borrower, whether or not a claim for post-filing interest is allowed in such Insolvency Proceeding), fees, commissions, expense reimbursements, indemnifications or otherwise (such obligations, to the extent not paid by the Borrowers, being the “ Guaranteed Obligations ”), and agrees to pay any and all expenses (including reasonable counsel fees and expenses) incurred by the Secured Parties in enforcing any rights under the guaranty set forth in this Article XI. Without limiting the generality of the foregoing, each Guarantor’s liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by the Borrowers to the Secured Parties under any Loan Document but for the fact that they are unenforceable or not allowable due to the existence of an Insolvency Proceeding involving any Borrower. Notwithstanding any of the foregoing, Guaranteed Obligations shall not include any Excluded Swap Obligations. In no event shall the obligation of any Guarantor hereunder exceed the maximum amount such Guarantor could guarantee under any Debtor Relief Law.
 
Section 11.02          Guaranty Absolute . Each Guarantor jointly and severally guarantees that the Guaranteed Obligations will be paid strictly in accordance with the terms of the Loan Documents, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Secured Parties with respect thereto. Each Guarantor agrees that this Article XI constitutes a guaranty of payment when due and not of collection and waives any right to require that any resort be made by any Agent or any Lender to any Collateral. The obligations of each Guarantor under this Article XI are independent of the Guaranteed Obligations, and a separate action or actions may be brought and prosecuted against each Guarantor to enforce such obligations, irrespective of whether any action is brought against any Loan Party or whether any Loan Party is joined in any such action or actions. The liability of each Guarantor under this Article XI shall be irrevocable, absolute and unconditional irrespective of, and each Guarantor hereby irrevocably waives any defenses it may now or hereafter have in any way relating to, any or all of the following:
 
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(a)                any lack of validity or enforceability of any Loan Document or any agreement or instrument relating thereto;
 
(b)               any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations, or any other amendment or waiver of or any consent to departure from any Loan Document, including, without limitation, any increase in the Guaranteed Obligations resulting from the extension of additional credit to any Loan Party or otherwise;
 
(c)                any taking, exchange, release or non-perfection of any Collateral, or any taking, release or amendment or waiver of or consent to departure from any other guaranty, for all or any of the Guaranteed Obligations;
 
(d)               the existence of any claim, set-off, defense or other right that any Guarantor may have at any time against any Person, including, without limitation, any Secured Party;
 
(e)                any change, restructuring or termination of the corporate, limited liability company or partnership structure or existence of any Loan Party; or
 
(f)                any other circumstance (including, without limitation, any statute of limitations) or any existence of or reliance on any representation by the Secured Parties that might otherwise constitute a defense available to, or a discharge of, any Loan Party or any other guarantor or surety.
 
This Article XI shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by Secured Parties or any other Person upon the insolvency, bankruptcy or reorganization of any Borrower or otherwise, all as though such payment had not been made.
 
Section 11.03          Waiver . Each Guarantor hereby waives (i) promptness and diligence, (ii) notice of acceptance and any other notice with respect to any of the Guaranteed Obligations and this Article XI and any requirement that the Secured Parties exhaust any right or take any action against any Loan Party or any other Person or any Collateral, (iii) any right to compel or direct any Secured Party to seek payment or recovery of any amounts owed under this Article XI from any one particular fund or source or to exhaust any right or take any action against any other Loan Party, any other Person or any Collateral, (iv) any requirement that any Secured Party protect, secure, perfect or insure any security interest or Lien on any property subject thereto or exhaust any right to take any action against any Loan Party, any other Person or any Collateral, and (v) any other defense available to any Guarantor. Each Guarantor agrees that the Secured Parties shall have no obligation to marshal any assets in favor of any Guarantor or against, or in payment of, any or all of the Obligations. Each Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated herein and that the waiver set forth in this Section 11.03 is knowingly made in contemplation of such benefits. Each Guarantor hereby waives any right to revoke this Article XI, and acknowledges that this Article XI is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future.
 
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Section 11.04          Continuing Guaranty; Assignments . This Article XI is a continuing guaranty and shall (a) remain in full force and effect until the Termination Date, (b) be binding upon each Guarantor, its successors and assigns and (c) inure to the benefit of and be enforceable by the Secured Parties and their successors, pledgees, transferees and assigns. Without limiting the generality of the foregoing clause (c), any Lender may pledge, assign or otherwise transfer all or any portion of its rights and obligations under this Agreement (including, without limitation, all or any portion of its Commitments and its Loans owing to it) to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted such Lender herein or otherwise, in each case as provided in Section 12.07.
 
Section 11.05          Subrogation . No Guarantor will exercise any rights that it may now or hereafter acquire against any Loan Party or any other guarantor that arise from the existence, payment, performance or enforcement of such Guarantor’s obligations under this Article XI, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of the Secured Parties against any Loan Party or any other guarantor or any Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from any Loan Party or any other guarantor, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security solely on account of such claim, remedy or right, unless and until the Termination Date shall have occurred. If any amount shall be paid to any Guarantor in violation of the immediately preceding sentence at any time prior to the Termination Date, such amount shall be held in trust for the benefit of the Secured Parties and shall forthwith be paid to the Secured Parties to be credited and applied to the Guaranteed Obligations and all other amounts payable under this Article XI, whether matured or unmatured, in accordance with the terms of this Agreement, or to be held as Collateral for any Guaranteed Obligations or other amounts payable under this Article XI thereafter arising. If the Termination Date shall have occurred, the Secured Parties will, at such Guarantor’s request and expense, execute and deliver to such Guarantor appropriate documents, without recourse and without representation or warranty, necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Guaranteed Obligations resulting from such payment by such Guarantor.
 
Section 11.06          Contribution . All Guarantors desire to allocate among themselves, in a fair and equitable manner, their obligations arising under this Guaranty.  Accordingly, in the event any payment or distribution is made on any date by a Guarantor under this Guaranty such that its Aggregate Payments exceeds its Fair Share as of such date, such Guarantor shall be entitled to a contribution from each of the other Guarantors in an amount sufficient to cause each Guarantor’s Aggregate Payments to equal its Fair Share as of such date.  “ Fair Share ” means, with respect to any Guarantor as of any date of determination, an amount equal to (a) the ratio of (i) the Fair Share Contribution Amount with respect to such Guarantor, to (ii) the aggregate of the Fair Share Contribution Amounts with respect to all Guarantors multiplied by, (b) the aggregate amount paid or distributed on or before such date by all Guarantors under this Guaranty in respect of the obligations Guaranteed.  “ Fair Share Contribution Amount ” means, with respect to any Guarantor as of any date of determination, the maximum aggregate amount of the obligations of such Guarantor under this Guaranty that would not render its obligations hereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548 of Title 11 of the United States Code or any comparable applicable provisions of state law; provided , solely for purposes of calculating the “Fair Share Contribution Amount” with respect to any Guarantor for purposes of this Section 11.06, any assets or liabilities of such Guarantor arising by virtue of any rights to subrogation, reimbursement or indemnification or any rights to or obligations of contribution hereunder shall not be considered as assets or liabilities of such Guarantor. “ Aggregate Payments ” means, with respect to any Guarantor as of any date of determination, an amount equal to (A) the aggregate amount of all payments and distributions made on or before such date by such Guarantor in respect of this Guaranty (including, without limitation, in respect of this Section 11.06), minus (B) the aggregate amount of all payments received on or before such date by such Guarantor from the other Guarantors as contributions under this Section 11.06. The amounts payable as contributions hereunder shall be determined as of the date on which the related payment or distribution is made by the applicable Guarantor.  The allocation among Guarantors of their obligations as set forth in this Section 11.06 shall not be construed in any way to limit the liability of any Guarantor hereunder.  Each Guarantor is a third party beneficiary to the contribution agreement set forth in this Section 11.06.
 
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ARTICLE XII

MISCELLANEOUS
 
Section 12.01          Notices, Etc .
 
(a)                Notices Generally . All notices and other communications provided for hereunder shall be in writing and shall be delivered by hand, sent by registered or certified mail (postage prepaid, return receipt requested), overnight courier, or telecopier. In the case of notices or other communications to any Loan Party, Origination Agent, Administrative Agent or the Collateral Agent, as the case may be, they shall be sent to the respective address set forth below (or, as to each party, at such other address as shall be designated by such party in a written notice to the other parties complying as to delivery with the terms of this Section 12.01):
 
Rimini Street, Inc.
3993 Howard Hughes Parkway, Suite 500
Las Vegas, Nevada 89169
Attention: General Counsel
Telephone:
Email:
 
with a copy to (which copy shall not constitute notice):
 
Rimini Street, Inc.
3993 Howard Hughes Parkway, Suite 500
Las Vegas, Nevada 89169
Attention: Chief Financial Officer
Telephone:
Email:
 
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Wilson Sonsini Goodrich & Rosati
650 Page Mill Road
Palo Alto, California 94304
Attention: John T. Sheridan, Esq.
Telephone:
Telecopier:
Email:
 
if to the Administrative   Agent and/or the Collateral Agent, to it at the following address:


Cortland Capital Market Services LLC
225 W. Washington Street, Suite 2100
Chicago, Illinois  60606
Attention:  Jeffrey Vaughn; Legal Department
Telephone: 
Telecopier: 
Email:
 
in each case, with a copy to (which copy shall not constitute notice):
 
Holland & Knight LLP
131 S. Dearborn Street, 30th Floor
Chicago, Illinois 60603
Attn: Joshua M. Spencer
Fax No.
Email:
 
if to the Origination Agent, to it at the following address:
 
CB Agent Services LLC
 
c/o Colbeck Capital Management
888 Seventh Avenue, 29 th Floor
New York, New York 10106
Attention: Chief Operating Officer
Telephone:
Telecopier:
Email:
 
with a copy to (which copy shall not constitute notice):
 
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Schulte Roth & Zabel LLP
919 Third Avenue
New York, New York 10022
Attention: Marc B. Friess, Esq.
Telephone:
Telecopier:
Email:
 
All notices or other communications sent in accordance with this Section 12.01, shall be deemed received on the earlier of the date of actual receipt or 3 Business Days after the deposit thereof in the mail; provided , that (i) notices sent by overnight courier service shall be deemed to have been given when received and (ii) notices by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient), provided , further that notices to any Agent pursuant to Article II shall not be effective until received by such Agent.
 
(b)               Electronic Communications .
 
(i)                 Each Agent and the Administrative Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications. Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Agents, provided that the foregoing shall not apply to notices to any Lender pursuant to Article II if such Lender has notified the Agents that it is incapable of receiving notices under such Article by electronic communication.
 
(ii)               Unless the Administrative Agent otherwise prescribes, (A) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and (B) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing clause (A), of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (A) and (B) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.
 
Section 12.02          Amendments, Etc . (a) No amendment or waiver of any provision of this Agreement or any other Loan Document (excluding the Agent Fee Letter, the Commitment Fee Letter and the Fee Letter), and no consent to any departure by any Loan Party therefrom, shall in any event be effective unless the same shall be in writing and signed (x) in the case of an amendment, consent or waiver to cure any ambiguity, omission, defect or inconsistency or granting a new Lien for the benefit of the Agents and the Lenders or extending an existing Lien over additional property, by the Agents and the Borrowers (or by the Administrative Borrower on behalf of the Borrowers), (y) in the case of any other waiver or consent, by the Required Lenders (or by the Collateral Agent with the consent of the Required Lenders) and (z) in the case of any other amendment, by the Required Lenders (or by the Collateral Agent with the consent of the Required Lenders) and the Borrowers (or by the Administrative Borrower on behalf of the Borrowers), and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided , however , that no amendment, waiver or consent shall:
 
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(i)                 increase the Commitment of any Lender, reduce the principal of, or interest on, the Loans payable to any Lender (excluding mandatory prepayments), reduce the amount of any fee payable for the account of any Lender, or postpone or extend any scheduled date fixed for any payment (excluding mandatory prepayments) of principal of, or interest or fees on, the Loans payable to any Lender, in each case, without the written consent of such Lender; provided , that (x) modifications to payments required to be made under Section 2.03(a) (excluding payments due on the Final Maturity Date) will be governed by clause (ii) below) and (y) only the consent of the Required Lenders shall be necessary to amend the definition of “Post-Default Rate” or to waive any obligation of the Loan Parties to pay interest at the Post-Default Rate;
 
(ii)               postpone, waive or extend any scheduled date (other than the Final Maturity Date) fixed for any payment of principal of the Loans payable to any Lender pursuant to Section 2.03(a) without the written consent of the Required Supermajority Lenders;
 
(iii)             (x) increase the Total Term Loan Commitment without the written consent of each Lender, (y) increase the Total Delayed Draw A Term Loan Commitment without the written consent of each Lender with a Delayed Draw A Term Loan Commitment or (y) increase the Total Delayed Draw B Term Loan Commitment without the written consent of each Lender with a Delayed Draw B Term Loan Commitment;
 
(iv)             change the percentage of the Commitments or of the aggregate unpaid principal amount of the Loans that is required for the Lenders or any of them to take any action hereunder without the written consent of each Lender;
 
(v)               amend the definition of “Required Lenders” or “Pro Rata Share” without the written consent of each Lender;
 
(vi)             release all or substantially all of the Collateral (except as otherwise provided in this Agreement and the other Loan Documents), subordinate any Lien granted in favor of the Collateral Agent for the benefit of the Agents and the Lenders, or release any Borrower or any Guarantor (except in connection with a Disposition of the Equity Interests thereof permitted by Section 7.02(c)(ii)), in each case, without the written consent of each Lender;
 
(vii)           amend, modify or waive Section 4.02, Section 4.03 or this Section 12.02 of this Agreement without the written consent of each Lender; or
 
(viii)         amend the definition of “Effective Date Pro Rata Share”, “Delayed Draw A Pro Rata Share” or “Delayed Draw B Pro Rata Share”, in each case, without the written consent of each Lender affected thereby.
 
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Notwithstanding the foregoing, (A) no amendment, waiver or consent shall, unless in writing and signed by an Agent, affect the rights or duties of such Agent (but not in its capacity as a Lender) under this Agreement or the other Loan Documents, (B) any amendment, waiver or consent to any provision of this Agreement (including Sections 4.01 and 4.02) that permits any Loan Party, any Permitted Holder (or other equity holder of the Parent) or any of their respective Affiliates to purchase Loans on a non-pro rata basis, become an eligible assignee pursuant to Section 12.07 and/or make offers to make optional prepayments on a non-pro rata basis shall require the prior written consent of the Required Lenders rather than the prior written consent of each Lender directly affected thereby, (C) the consent of the Borrowers shall not be required to change any order of priority set forth in Section 2.05(d) and Section 4.03 and (D) final drafts and executed copies of all amendments, waivers and consents shall be promptly provided after receipt thereof to the Administrative Agent. Notwithstanding anything to the contrary herein, no Defaulting Lender, Loan Party, Permitted Holder (or other equity holder of the Parent) or any of their respective Affiliates that is a Lender shall have any right to approve or disapprove any amendment, waiver or consent under the Loan Documents and any Loans held by such Person for purposes hereof shall be automatically deemed to be voted pro rata according to the Loans of all other Lenders in the aggregate (other than such Defaulting Lender, Loan Party, Permitted Holder (or other equity holder of the Parent) or Affiliate).
 
(b)               If any action to be taken by the Lenders hereunder requires the consent, authorization, or agreement of all of the Lenders or any Lender affected thereby, and a Lender other than the Origination Agent and its Affiliates and Related Funds (the “ Holdout Lender ”) fails to give its consent, authorization, or agreement, then the Origination Agent, upon at least 5 Business Days prior irrevocable notice to the Holdout Lender, may permanently replace the Holdout Lender with one or more substitute lenders (each, a “ Replacement Lender ”), and the Holdout Lender shall have no right to refuse to be replaced hereunder. Such notice to replace the Holdout Lender shall specify an effective date for such replacement, which date shall not be later than 15 Business Days after the date such notice is given. Prior to the effective date of such replacement, the Holdout Lender and each Replacement Lender shall execute and deliver an Assignment and Acceptance, subject only to the Holdout Lender being repaid its share of the outstanding principal amount of the Loans without any premium or penalty of any kind whatsoever. If the Holdout Lender shall refuse or fail to execute and deliver any such Assignment and Acceptance prior to the effective date of such replacement, the Holdout Lender shall be deemed to have executed and delivered such Assignment and Acceptance. The replacement of any Holdout Lender shall be made in accordance with the terms of Section 12.07. Until such time as the Replacement Lenders shall have acquired all of the principal amount of the Loans of the Holdout Lender, the Commitments of the Holdout Lender, and the other rights and obligations of the Holdout Lender hereunder and under the other Loan Documents, the Holdout Lender shall remain obligated to make its Pro Rata Share of Loans.
 
Section 12.03          No Waiver; Remedies, Etc. No failure on the part of any Agent or any Lender to exercise, and no delay in exercising, any right hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right under any Loan Document preclude any other or further exercise thereof or the exercise of any other right. The rights and remedies of the Agents and the Lenders provided herein and in the other Loan Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies provided by law. The rights of the Agents and the Lenders under any Loan Document against any party thereto are not conditional or contingent on any attempt by the Agents and the Lenders to exercise any of their rights under any other Loan Document against such party or against any other Person.
 
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Section 12.04          Expenses; Attorneys’ Fees . The Borrowers will pay within 5 Business Days of receipt by the Administrative Borrower of written demand, all reasonable costs and expenses incurred by or on behalf of each Agent (and, in the case of clauses (b) through (o) below, each Lender), regardless of whether the transactions contemplated hereby are consummated, including, without limitation, reasonable fees, costs, client charges and expenses of counsel for each Agent (and, in the case of clauses (b) through (n) below, each Lender), accounting, due diligence, periodic field audits, physical counts, valuations, investigations, searches and filings, monitoring of assets, appraisals of Collateral, the rating of the Loans, title searches and reviewing environmental assessments, miscellaneous disbursements, examination, travel, lodging and meals, arising from or relating to: (a) the negotiation, preparation, execution, delivery, performance and administration of this Agreement and the other Loan Documents (including, without limitation, the preparation of any additional Loan Documents pursuant to Section 7.01(b) or the review of any of the agreements, instruments and documents referred to in Section 7.01(f)), (b) any requested amendments, waivers or consents to this Agreement or the other Loan Documents whether or not such documents become effective or are given, (c) the preservation and protection of the Agents’ or any of the Lenders’ rights under this Agreement or the other Loan Documents, (d) the defense of any claim or action asserted or brought against any Agent or any Lender by any Person that arises from or relates to this Agreement, any other Loan Document, the Agents’ or the Lenders’ claims against any Loan Party, or any and all matters in connection therewith, (e) the commencement or defense of, or intervention in, any court proceeding arising from or related to this Agreement or any other Loan Document, (f) the filing of any petition, complaint, answer, motion or other pleading by any Agent or any Lender, or the taking of any action in respect of the Collateral or other security, in connection with this Agreement or any other Loan Document, (g) the protection, collection, lease, sale, taking possession of or liquidation of, any Collateral or other security in connection with this Agreement or any other Loan Document, (h) any attempt to enforce any Lien or security interest in any Collateral or other security in connection with this Agreement or any other Loan Document, (i) any attempt to collect from any Loan Party, (j) all liabilities and costs arising from or in connection with the past, present or future operations of any Loan Party involving any damage to real or personal property or natural resources or harm or injury alleged to have resulted from any Release of Hazardous Materials on, upon or into such property, (k) any Environmental Liabilities and Costs incurred in connection with the investigation, removal, cleanup and/or remediation of any Hazardous Materials present or arising out of the operations of any Facility of any Loan Party, (l) any Environmental Liabilities and Costs incurred in connection with any Environmental Lien, (m) the retention by the Origination Agent of an independent consultant with respect to the Oracle Litigation or (n) the receipt of any advice from professionals retained by any Agent or any Lender with respect to any of the foregoing. Without limitation of the foregoing or any other provision of any Loan Document: (x) the Borrowers agree to pay all broker fees incurred by or on behalf of the Borrowers in connection with the transactions contemplated by this Agreement and the other Loan Documents, and (y) if the Borrowers fail to perform any covenant or agreement contained herein or in any other Loan Document, any Agent may itself perform or cause performance of such covenant or agreement, and the reasonable and documented expenses of such Agent incurred in connection therewith shall be reimbursed by the Borrowers within 5 Business Days of receipt by the Administrative Borrower of written demand therefor. The obligations of the Borrowers under this Section 12.04 shall survive the repayment of the Obligations, the termination of this Agreement, and discharge of any Liens granted under the Loan Documents. This Section 12.04 shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.
 
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Section 12.05          Right of Set-off . Upon the occurrence and during the continuance of any Event of Default, any Agent or any Lender may, and is hereby authorized to, at any time and from time to time, without notice to any Loan Party (any such notice being expressly waived by the Loan Parties) and to the fullest extent permitted by law, set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other Indebtedness at any time owing by such Agent or such Lender or any of their respective Affiliates to or for the credit or the account of any Loan Party against any and all obligations of the Loan Parties either now or hereafter existing under any Loan Document, irrespective of whether or not such Agent or such Lender shall have made any demand hereunder or thereunder and although such obligations may be contingent or unmatured; provided that in the event that any Defaulting Lender shall exercise any such right of set-off, (a) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 4.04 and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Agents and the Lenders, and (b) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of set-off. Each Agent and each Lender agrees to notify such Loan Party promptly after any such set-off and application made by such Agent or such Lender or any of their respective Affiliates provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of the Agents and the Lenders under this Section 12.05 are in addition to the other rights and remedies (including other rights of set-off) which the Agents and the Lenders may have under this Agreement or any other Loan Documents of law or otherwise.
 
Section 12.06          Severability . Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.
 
Section 12.07          Assignments and Participations .
 
(a)                This Agreement and the other Loan Documents shall be binding upon and inure to the benefit of each Loan Party and each Agent and each Lender and their respective successors and assigns; provided , however , that none of the Loan Parties may assign or transfer any of its rights hereunder or under the other Loan Documents without the prior written consent of each Lender and each Agent and any such assignment without the Lenders’ and Agents’ prior written consent shall be null and void.
 
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Subject to the conditions set forth in clause (c) below, each Lender may assign to one or more other lenders or other entities all or a portion of its rights and obligations under this Agreement with respect to all or a portion of its Term Loan Commitment and any Term Loan made by it with the written consent of the Origination Agent; provided , however , that no written consent of the Origination Agent shall be required if such assignment is in connection with any merger, consolidation, sale, transfer, or other disposition of all or any substantial portion of the business or loan portfolio of such Lender.
 
(b)               Assignments shall be subject to the following additional conditions:
 
(i)                 Each such assignment shall be in an amount which is at least $5,000,000 or a multiple of $1,000,000 in excess thereof (or the remainder of such Lender’s Commitment) (except such minimum amount shall not apply to an assignment by a Lender to (A) a Lender, an Affiliate of such Lender or a Related Fund of such Lender or (B) a group of new Lenders, each of whom is an Affiliate or Related Fund of each other to the extent the aggregate amount to be assigned to all such new Lenders is at least $5,000,000 or a multiple of $1,000,000 in excess thereof);
 
(ii)               The parties to each such assignment shall execute and deliver to the Origination Agent, for its consent, and to the Administrative Agent, for its acceptance, an Assignment and Acceptance, together with any promissory note subject to such assignment and such parties shall deliver to the Administrative Agent, for the benefit of the Administrative Agent, a processing and recordation fee of $5,000 (except the payment of such fee shall not be required in connection with an assignment by a Lender to a Lender, an Affiliate of such Lender or a Related Fund of such Lender); and
 
(iii)             No such assignment shall be made to (A) any Loan Party, any Permitted Holder (or other equity holder of the Parent) or any of their respective Affiliates, (B) any Defaulting Lender or any of its Affiliates, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B) or (C) so long as no Event of Default has occurred and is continuing, any Ineligible Assignee.
 
(c)                Upon such execution, delivery and acceptance, from and after the effective date specified in each Assignment and Acceptance and recordation on the Register, (A) the assignee thereunder shall become a “Lender” hereunder and, in addition to the rights and obligations hereunder held by it immediately prior to such effective date, have the rights and obligations hereunder that have been assigned to it pursuant to such Assignment and Acceptance and (B) the assigning Lender thereunder shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights and be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto).
 
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(d)               By executing and delivering an Assignment and Acceptance, the assigning Lender and the assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance, the assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or any other Loan Document or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document furnished pursuant hereto; (ii) the assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of any Loan Party or any of its Subsidiaries or the performance or observance by any Loan Party of any of its obligations under this Agreement or any other Loan Document furnished pursuant hereto; (iii) such assignee confirms that it has received a copy of this Agreement and the other Loan Documents, together with such other documents and information it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance; (iv) such assignee will, independently and without reliance upon the assigning Lender, any Agent or any Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement and the other Loan Documents; (v) such assignee appoints and authorizes the Agents to take such action as agents on its behalf and to exercise such powers under this Agreement and the other Loan Documents as are delegated to the Agents by the terms hereof and thereof, together with such powers as are reasonably incidental hereto and thereto; and (vi) such assignee agrees that it will perform in accordance with their terms all of the obligations which by the terms of this Agreement and the other Loan Documents are required to be performed by it as a Lender.
 
(e)                The Administrative Agent shall, acting solely for this purpose as a non-fiduciary agent of the Borrowers, maintain, or cause to be maintained at the Payment Office, a copy of each Assignment and Acceptance delivered to and accepted by it and a register (the “ Register ”) for the recordation of the names and addresses of the Lenders and the Commitments of, and the principal amount of the Loans (and stated interest thereon) (the “ Registered Loans ”) owing to each Lender from time to time. The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrowers, the Agents and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Administrative Borrower and any Lender at any reasonable time and from time to time upon reasonable prior notice.
 
(f)                Upon receipt by the Administrative Agent of a completed Assignment and Acceptance and all fees and expenses due and payable in connection with such assignment and upon verification by the Administrative Agent of all information requested on such assignee pursuant to the “know your customer” regulations and requirements of the USA PATRIOT ACT, and subject to any consent required from the Administrative Agent or the Collateral Agent pursuant to Section 12.07(b) (which consent of the applicable Agent must be evidenced by such Agent’s execution of an acceptance to such Assignment and Acceptance), the Administrative Agent shall accept such assignment, record the information contained therein in the Register (as adjusted to reflect any principal payments on or amounts capitalized and added to the principal balance of the Loans and/or Commitment reductions made subsequent to the effective date of the applicable assignment, as confirmed in writing by the corresponding assignor and assignee in conjunction with delivery of the assignment to the Administrative Agent) and provide to the Collateral Agent a copy of the fully executed Assignment and Acceptance.
 
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(g)               A Registered Loan (and the registered note, if any, evidencing the same) may be assigned or sold in whole or in part only by registration of such assignment or sale on the Register (and each registered note shall expressly so provide). Any assignment or sale of all or part of such Registered Loan (and the registered note, if any, evidencing the same) may be effected only by registration of such assignment or sale on the Register, together with the surrender of the registered note, if any, evidencing the same duly endorsed by (or accompanied by a written instrument of assignment or sale duly executed by) the holder of such registered note, whereupon, at the request of the designated assignee(s) or transferee(s), one or more new registered notes in the same aggregate principal amount shall be issued to the designated assignee(s) or transferee(s). Prior to the registration of assignment or sale of any Registered Loan (and the registered note, if any, evidencing the same), the Agents shall treat the Person in whose name such Registered Loan (and the registered note, if any, evidencing the same) is registered on the Register as the owner thereof for the purpose of receiving all payments thereon, notwithstanding notice to the contrary.
 
(h)               In the event that any Lender sells participations in a Registered Loan, such Lender shall, acting for this purpose as a non-fiduciary agent on behalf of the Borrowers, maintain, or cause to be maintained, a register, on which it enters the name of all participants in the Registered Loans held by it and the principal amount (and stated interest thereon) of the portion of the Registered Loan that is the subject of the participation (the “ Participant Register ”). A Registered Loan (and the registered note, if any, evidencing the same) may be participated in whole or in part only by registration of such participation on the Participant Register (and each registered note shall expressly so provide). Any participation of such Registered Loan (and the registered note, if any, evidencing the same) may be effected only by the registration of such participation on the Participant Register. The Participant Register shall be available for inspection by the Administrative Borrower and any Lender at any reasonable time and from time to time upon reasonable prior notice.
 
(i)                 Any Non-U.S. Lender who purchases or is assigned and any Person that participates in any portion of such Registered Loan shall comply with Sections 2.09(d) through (h).
 
(j)                 Each Lender may sell participations to one or more banks or other entities in or to all or a portion of its rights and obligations under this Agreement and the other Loan Documents (including, without limitation, all or a portion of its Commitments and the Loans made by it); provided, that (i) such Lender’s obligations under this Agreement (including without limitation, its Commitments hereunder) and the other Loan Documents shall remain unchanged; (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and the Borrowers, the Agents and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and the other Loan Documents; and (iii) a participant shall not be entitled to require such Lender to take or omit to take any action hereunder except (A) action directly effecting an extension of the maturity dates or decrease in the principal amount of the Loans, (B) action directly effecting an extension of the due dates or a decrease in the rate of interest payable on the Loans or the fees payable under this Agreement, or (C) actions directly effecting a release of all or a substantial portion of the Collateral or any Loan Party (except as set forth in Section 10.08 of this Agreement or any other Loan Document). The Loan Parties agree that each participant that complies with the obligations of a Lender under Section 2.09 and Section 2.10 shall be entitled to the benefits of Section 2.09 and Section 2.10 of this Agreement with respect to its participation in any portion of the Commitments and the Loans as if it was a Lender; provided , that a participant shall not be entitled to receive any greater payment under Section 2.09 or Section 2.10 with respect to any participation than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the participant acquired the applicable participation.
 
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(k)               Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or loans made to such Lender pursuant to securitization or similar credit facility (a “ Securitization ”); provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. The Loan Parties shall cooperate with such Lender and its Affiliates to effect the Securitization including, without limitation, by providing such information as may be reasonably requested by such Lender in connection with the rating of its Loans or the Securitization.
 
Section 12.08          Counterparts . This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Agreement by telecopier or electronic mail shall be equally as effective as delivery of an original executed counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement by telecopier or electronic mail also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement. The foregoing shall apply to each other Loan Document mutatis mutandis .
 
Section 12.09          GOVERNING LAW . THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK.
 
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Section 12.10          CONSENT TO JURISDICTION; SERVICE OF PROCESS AND VENUE .
 
(a)                ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK IN THE COUNTY OF NEW YORK OR OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH LOAN PARTY HEREBY IRREVOCABLY ACCEPTS IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH LOAN PARTY HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS AND IN ANY SUCH ACTION OR PROCEEDING BY ANY MEANS PERMITTED BY APPLICABLE LAW, INCLUDING, WITHOUT LIMITATION, BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE ADMINISTRATIVE BORROWER AT ITS ADDRESS FOR NOTICES AS SET FORTH IN SECTION 12.01, SUCH SERVICE TO BECOME EFFECTIVE 10 DAYS AFTER SUCH MAILING. THE LOAN PARTIES AGREE THAT A FINAL JUDGMENT IN ANY SUCH 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. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE AGENTS AND THE LENDERS TO SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY LOAN PARTY IN ANY OTHER JURISDICTION. EACH LOAN PARTY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE JURISDICTION OR LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT ANY LOAN PARTY HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, EACH LOAN PARTY HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.
 
(b)               Each Loan Party hereby irrevocably appoints C T Corporation System (the “ Process Agent ”), with an office on the date hereof at 111 Eighth Avenue, New York, New York 10011 as its agent to receive on behalf of each Loan Party service of the summons and complaint and any other process which may be served in any action or proceeding described above. Such service may be made by mailing or delivering a copy of such process to each Loan Party, in care of the Process Agent at the address specified above for such Process Agent, and such Loan Party hereby irrevocably authorizes and directs the Process Agent to accept such service on its behalf. Each Loan Party covenants and agrees that, for so long as it shall be bound under this Agreement or any other Loan Document, it shall maintain a duly appointed agent for the service of summons and other legal process in New York, New York, United States of America, for the purposes of any legal action, suit or proceeding brought by any party in respect of this Agreement or such other Loan Document and shall keep the Agents advised of the identity and location of such agent. If for any reason there is no authorized agent for service of process in New York, each Loan Party irrevocably consents to the service of process out of the said courts by mailing copies thereof by registered United States air mail postage prepaid to it at its address specified in Section 12.01. Nothing in this Section 12.10 shall affect the right of any Secured Party to (i) commence legal proceedings or otherwise sue any Loan Party in the state in which it is domiciled or in any other court having jurisdiction over such Loan Party or (ii) serve process upon any Loan Party in any manner authorized by the laws of any such jurisdiction.
 
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Section 12.11          WAIVER OF JURY TRIAL, ETC. EACH LOAN PARTY, EACH AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM CONCERNING ANY RIGHTS UNDER THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS, OR UNDER ANY AMENDMENT, WAIVER, CONSENT, INSTRUMENT, DOCUMENT OR OTHER AGREEMENT DELIVERED OR WHICH IN THE FUTURE MAY BE DELIVERED IN CONNECTION THEREWITH, OR ARISING FROM ANY FINANCING RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION, PROCEEDINGS OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. EACH LOAN PARTY CERTIFIES THAT NO OFFICER, REPRESENTATIVE, AGENT OR ATTORNEY OF ANY AGENT OR ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ANY AGENT OR ANY LENDER WOULD NOT, IN THE EVENT OF ANY ACTION, PROCEEDING OR COUNTERCLAIM, SEEK TO ENFORCE THE FOREGOING WAIVERS. EACH LOAN PARTY HEREBY ACKNOWLEDGES THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE AGENTS AND THE LENDERS ENTERING INTO THIS AGREEMENT.
 
Section 12.12          Consent by the Agents and Lenders . Except as otherwise expressly set forth herein to the contrary or in any other Loan Document, if the consent, approval, satisfaction, determination, judgment, acceptance or similar action (an “ Action ”) of any Agent or any Lender shall be permitted or required pursuant to any provision hereof or any provision of any other agreement to which any Loan Party is a party and to which any Agent or any Lender has succeeded thereto, such Action shall be required to be in writing and may be withheld or denied by such Agent or such Lender, in its sole discretion, with or without any reason, and without being subject to question or challenge on the grounds that such Action was not taken in good faith.
 
Section 12.13          No Party Deemed Drafter . Each of the parties hereto agrees that no party hereto shall be deemed to be the drafter of this Agreement.
 
Section 12.14          Reinstatement; Certain Payments . If any claim is ever made upon any Secured Party for repayment or recovery of any amount or amounts received by such Secured Party in payment or on account of any of the Obligations, such Secured Party shall give prompt notice of such claim to each other Agent and Lender and the Administrative Borrower, and if such Secured Party repays all or part of such amount by reason of (i) any judgment, decree or order of any court or administrative body having jurisdiction over such Secured Party or any of its property, or (ii) any good faith settlement or compromise of any such claim effected by such Secured Party with any such claimant, then and in such event each Loan Party agrees that (A) any such judgment, decree, order, settlement or compromise shall be binding upon it notwithstanding the cancellation of any Indebtedness hereunder or under the other Loan Documents or the termination of this Agreement or the other Loan Documents, and (B) it shall be and remain liable to such Secured Party hereunder for the amount so repaid or recovered to the same extent as if such amount had never originally been received by such Secured Party.
 
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Section 12.15          Indemnification; Limitation of Liability for Certain Damages .
 
(a)                In addition to each Loan Party’s other Obligations under this Agreement, each Loan Party agrees to, jointly and severally, defend, protect, indemnify and hold harmless each Secured Party and all of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (collectively called the “ Indemnitees ”) from and against any and all losses, damages, liabilities, obligations, penalties, fees, reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees, costs and expenses) incurred by such Indemnitees, whether prior to or from and after the Effective Date, whether direct, indirect or consequential, as a result of or arising from or relating to or in connection with any of the following: (i) the negotiation, preparation, execution or performance or enforcement of this Agreement, any other Loan Document or of any other document executed in connection with the transactions contemplated by this Agreement, (ii) any Agent’s or any Lender’s furnishing of funds to the Borrowers under this Agreement or the other Loan Documents, including, without limitation, the management of any such Loans or the Borrowers’ use of the proceeds thereof, (iii) the Agents and the Lenders relying on any instructions of the Administrative Borrower or the handling of the Loan Account and Collateral of the Borrowers as herein provided, (iv) any matter relating to the financing transactions contemplated by this Agreement or the other Loan Documents or by any document executed in connection with the transactions contemplated by this Agreement or the other Loan Documents, or (v) any claim, litigation, investigation or proceeding relating to any of the foregoing, whether or not any Indemnitee is a party thereto (collectively, the “ Indemnified Matters ”); provided , however , that the Loan Parties shall not have any obligation to any Indemnitee under this subsection (a) for any Indemnified Matter caused by the gross negligence or willful misconduct of such Indemnitee, as determined by a final non-appealable judgment of a court of competent jurisdiction.
 
(b)               The indemnification for all of the foregoing losses, damages, fees, costs and expenses of the Indemnitees set forth in this Section 12.15 are chargeable against the Loan Account. To the extent that the undertaking to indemnify, pay and hold harmless set forth in this Section 12.15 may be unenforceable because it is violative of any law or public policy, each Loan Party shall, jointly and severally, contribute the maximum portion which it is permitted to pay and satisfy under applicable law, to the payment and satisfaction of all Indemnified Matters incurred by the Indemnitees.
 
(c)                No Loan Party shall assert, and each Loan Party hereby waives, any claim against the Indemnitees, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement) arising out of, in connection with, as a result of, or in any way related to, this Agreement or any other Loan Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and each Loan Party hereby waives, releases and agrees not to sue upon any such claim or seek any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.
 
(d)               The indemnities and waivers set forth in this Section 12.15 shall survive the repayment of the Obligations and discharge of any Liens granted under the Loan Documents.
 
132


Section 12.16          Records . The unpaid principal of and interest on the Loans, the interest rate or rates applicable to such unpaid principal and interest, the duration of such applicability, the Commitments, and the accrued and unpaid fees payable pursuant to Section 2.06 hereof, shall at all times be ascertained from the records of the Agents, which shall be conclusive and binding absent manifest error.
 
Section 12.17          Binding Effect . This Agreement shall become effective when it shall have been executed by each Loan Party, each Agent and each Lender and when the conditions precedent set forth in Section 5.01 hereof have been satisfied or waived in writing by the Agents, and thereafter shall be binding upon and inure to the benefit of each Loan Party, each Agent and each Lender, and their respective successors and assigns, except that the Loan Parties shall not have the right to assign their rights hereunder or any interest herein without the prior written consent of each Agent and each Lender, and any assignment by any Lender shall be governed by Section 12.07 hereof.
 
Section 12.18          Highest Lawful Rate . It is the intention of the parties hereto that each Agent and each Lender shall conform strictly to usury laws applicable to it. Accordingly, if the transactions contemplated hereby or by any other Loan Document would be usurious as to any Agent or any Lender under laws applicable to it (including the laws of the United States of America and the State of New York or any other jurisdiction whose laws may be mandatorily applicable to such Agent or such Lender notwithstanding the other provisions of this Agreement), then, in that event, notwithstanding anything to the contrary in this Agreement or any other Loan Document or any agreement entered into in connection with or as security for the Obligations, it is agreed as follows: (i) the aggregate of all consideration which constitutes interest under law applicable to any Agent or any Lender that is contracted for, taken, reserved, charged or received by such Agent or such Lender under this Agreement or any other Loan Document or agreements or otherwise in connection with the Obligations shall under no circumstances exceed the maximum amount allowed by such applicable law, any excess shall be canceled automatically and if theretofore paid shall be credited by such Agent or such Lender on the principal amount of the Obligations (or, to the extent that the principal amount of the Obligations shall have been or would thereby be paid in full, refunded by such Agent or such Lender, as applicable, to the Borrowers); and (ii) in the event that the maturity of the Obligations is accelerated by reason of any Event of Default under this Agreement or otherwise, or in the event of any required or permitted prepayment, then such consideration that constitutes interest under law applicable to any Agent or any Lender may never include more than the maximum amount allowed by such applicable law, and excess interest, if any, provided for in this Agreement or otherwise shall, subject to the last sentence of this Section 12.18, be canceled automatically by such Agent or such Lender, as applicable, as of the date of such acceleration or prepayment and, if theretofore paid, shall be credited by such Agent or such Lender, as applicable, on the principal amount of the Obligations (or, to the extent that the principal amount of the Obligations shall have been or would thereby be paid in full, refunded by such Agent or such Lender to the Borrowers). All sums paid or agreed to be paid to any Agent or any Lender for the use, forbearance or detention of sums due hereunder shall, to the extent permitted by law applicable to such Agent or such Lender, be amortized, prorated, allocated and spread throughout the full term of the Loans until payment in full so that the rate or amount of interest on account of any Loans hereunder does not exceed the maximum amount allowed by such applicable law. If at any time and from time to time (x) the amount of interest payable to any Agent or any Lender on any date shall be computed at the Highest Lawful Rate applicable to such Agent or such Lender pursuant to this Section 12.18 and (y) in respect of any subsequent interest computation period the amount of interest otherwise payable to such Agent or such Lender would be less than the amount of interest payable to such Agent or such Lender computed at the Highest Lawful Rate applicable to such Agent or such Lender, then the amount of interest payable to such Agent or such Lender in respect of such subsequent interest computation period shall continue to be computed at the Highest Lawful Rate applicable to such Agent or such Lender until the total amount of interest payable to such Agent or such Lender shall equal the total amount of interest which would have been payable to such Agent or such Lender if the total amount of interest had been computed without giving effect to this Section 12.18.
 
133


For purposes of this Section 12.18, the term “applicable law” shall mean that law in effect from time to time and applicable to the loan transaction between the Borrowers, on the one hand, and the Agents and the Lenders, on the other, that lawfully permits the charging and collection of the highest permissible, lawful non-usurious rate of interest on such loan transaction and this Agreement, including laws of the State of New York and, to the extent controlling, laws of the United States of America.
 
The right to accelerate the maturity of the Obligations does not include the right to accelerate any interest that has not accrued as of the date of acceleration.
 
Section 12.19          Confidentiality . Each Agent and each Lender agrees (on behalf of itself and each of its affiliates, directors, officers, employees and representatives) to use reasonable precautions to keep confidential, in accordance with its customary procedures for handling confidential information of this nature and in accordance with safe and sound practices of comparable commercial finance companies, any non-public information supplied to it by the Loan Parties pursuant to this Agreement or the other Loan Documents which is identified in writing by the Loan Parties as being confidential at the time the same is delivered to such Person (and which at the time is not, and does not thereafter become, publicly available or available to such Person from another source not known to be subject to a confidentiality obligation to such Person not to disclose such information), provided that nothing herein shall limit the disclosure by any Agent or any Lender of any such information (i) to its Affiliates and to its and its Affiliates’ respective equityholders (including, without limitation, investors and/or partners), directors, officers, employees, agents, trustees, counsel, advisors and representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such information and instructed to keep such information confidential in accordance with this Section 12.19); (ii) to any other party hereto; (iii) to any assignee or participant (or prospective assignee or participant) or any party to a Securitization so long as such assignee or participant (or prospective assignee or participant) or party to a Securitization first agrees, in writing, to be bound by confidentiality provisions similar in substance to this Section 12.19; (iv) to the extent required by any Requirement of Law or judicial process or as otherwise requested by any Governmental Authority; (v) to the National Association of Insurance Commissioners or any similar organization, any examiner, auditor or accountant or any nationally recognized rating agency or otherwise to the extent consisting of general portfolio information that does not identify Loan Parties; (vi) in connection with any litigation to which any Agent or any Lender is a party; (vii) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder; or (viii) with the consent of the Administrative Borrower.
 
134


Section 12.20          Public Disclosure . Each Loan Party agrees that neither it nor any of its Affiliates will now or in the future issue any press release or other public disclosure using the name of an Agent, any Lender or any of their respective Affiliates or referring to this Agreement or any other Loan Document without the prior written consent (not to be unreasonably withheld) of such Agent or such Lender, except to the extent that such Loan Party or such Affiliate is required to do so under applicable law (in which event, such Loan Party or such Affiliate will consult with such Agent or such Lender before issuing such press release or other public disclosure). Each Loan Party hereby authorizes each Agent and each Lender, after consultation with the Borrowers, to advertise the closing of the transactions contemplated by this Agreement, and to make appropriate announcements of the financial arrangements entered into among the parties hereto, as such Agent or such Lender shall deem appropriate, including, without limitation, on a home page or similar place for dissemination of information on the Internet or worldwide web, or in announcements commonly known as tombstones, in such trade publications, business journals, newspapers of general circulation and to such selected parties as such Agent or such Lender shall deem appropriate.
 
Section 12.21          Integration . This Agreement, together with the other Loan Documents, reflects the entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof.
 
Section 12.22          USA PATRIOT Act . Each Lender that is subject to the requirements of the USA PATRIOT Act hereby notifies the Borrowers that pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record information that identifies the entities composing the Borrowers, which information includes the name and address of each such entity and other information that will allow such Lender to identify the entities composing the Borrowers in accordance with the USA PATRIOT Act. Each Loan Party agrees to take such action and execute, acknowledge and deliver at its sole cost and expense, such instruments and documents as any Lender may reasonably require from time to time in order to enable such Lender to comply with the USA PATRIOT Act.
 


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135


IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.
 
 
BORROWERS :
 
 
 
RIMINI STREET, INC.
 
 
 
By:
/s/ Seth Ravin
 
 
Name: Seth Ravin
 
 
Title: Chief Executive Officer



 
ORIGINATION AGENT :
 
 
 
CB AGENT SERVICES LLC
 
 
 
By:
/s/ Morris Beyda
 
 
Name: Morris Beyda
 
 
Title: Partner & COO
 
 




 
COLLATERAL AGENT AND ADMINISTRATIVE AGENT :
 
 
 
CORTLAND CAPITAL MARKET SERVICES LLC
 
 
 
By:
/s/ Emily Ergang Pappas
 
 
Name: Emily Ergang Pappas
Title: Associate Counsel




 
LENDER :
   
 
NORTH HAVEN CREDIT PARTNERS II L.P.
   
 
By: MS Credit Partners II GP L.P., its general partner
   
 
By: MS Credit Partners II GP Inc. its general partner 
 
 
 
By:
/s/ Ashwin Krishnan
 
 
Name: Ashwin Krishnan
 
 
Title: Managing Director



 
LENDER :
   
 
CION Investment Corp. 
   
 
By:
/s/ Michael Reisner 
 
 
Name: Michael Reisner
 
 
Title: Co-President and Co-Chief Executive Officer

 
 
LENDER :
   
 
Colbeck Strategic Lending Master, L.P 
   
 
By:
/s/ Morris Beyda 
 
 
Name: Morris Beyda
 
 
Title: Authorized Signatory

 
 
LENDER :
   
 
Colbeck Capital Management, LLC 
   
 
By:
/s/ Morris Beyda
 
 
Name: Morris Beyda
 
 
Title: Partner & COO

 
 
LENDER :
   
 
CB Participations SPV, LLC
   
 
By:
/s/ Morris Beyda
 
 
Name: Morris Beyda
 
 
Title: Partner & COO



Schedule 1.01(A)
Lenders and Lenders’ Commitments
Name of Lender
Effective Date Term Loan Commitment
Delayed Draw A Term Loan Commitment
Delayed Draw B Term Loan Commitment
Total Term Loan
Commitment
North Haven Credit Partners II L.P.
$8,684,210.53
$18,815,789.47
$0
$27,500,000.00
CION Investment Corp.
$5,526,315.79
$11,973,684.21
$0
$17,500,000.00
Colbeck Capital Management LLC
$0
$0
$30,000,000.00
$30,000,000.00
Colbeck Strategic Lending Master, L.P.
$11,052,631.58
$23,947,368.42
$0
$35,000,000.00
CB Participations SPV, LLC
$4,736,842.11
$10,263,157.89
$0
$15,000,000.00
Total
$30,000,000
$65,000,000
$30,000,000
$125,000,000



SCHEDULE 1.01(B)
INELIGIBLE ASSIGNEES

(i) Oracle Corporation, (ii) SAP SE, and (iii) (x) any affiliate of Oracle Corporation or SAP SE or (y) any competitor of any Loan Party engaged in the provision of subscription-based enterprise software implementation, customization or support services (such competitor, a “ Competitor ”), in each case of this clause (iii), that is identified in writing by the Administrative Borrower to the Agents prior to the Effective Date as (A) an affiliate of Oracle Corporation or SAP SE or (B) a Competitor of a Loan Party, which list may be updated from time to time in writing by the Administrative Borrower with the consent of the Origination Agent (such consent not to be unreasonably withheld).



 
FNANCING AGREEMENT
Supplement to Schedule 1.01(B)
 
INELIGIBLE ASSIGNEES
June 24, 2016

Affiliates of Oracle Corporation
   

Subsidiaries
 
Place of Incorporation
GoldenGate Software Worldwide LLC
 
California
Logical Applications, Inc.
 
California
Logical Apps, Inc.
 
California
Milano Acquisition Corporation
 
California
Oracle Credit Corporation
 
California
Oracle Education Foundation
 
California
Oracle International Corporation
 
California
Oracle International Distribution, Inc.
 
California
Oracle International Technology Corporation
 
California
Oracle Siebel Scholars Foundation
 
California
Sun Microsystems International, Inc.
 
California
Sun Microsystems LLC
 
California
Sun Microsystems Management Services Corporation
 
California
Upshot Corporation
 
California
Vaau, Inc.
 
California
MOHR Development, Inc.
 
Connecticut
Agile Software Corporation
 
Delaware
BEA Crossgain, Inc.
 
Delaware
BEA Systems Holding B, Inc.
 
Delaware
BEA Systems, Inc.
 
Del aware
Business Online, Inc.
 
Delaware
Castek, Inc.
 
Delaware
Castek RGB, Inc.
 
Delaware
Castek Software Factory, Ltd.
 
Delaware
ECTone, Inc.
 
Delaware
Flashline, Inc.
 
Delaware
Fuego, Inc.
 
Delaware
Hyperion Solutions Corporation
 
Delaware
Hyperion Solutions Holdings LLC
 
Delaware
i-flex Processing Services, Inc.
 
Delaware
InterActive WorkPlace, Inc.
 
Delaware
Istante Software, Inc.
 
Delaware
Jade Acquisition Corporation
 
Delaware
Janna Systems (US) Inc.
 
Delaware
Mantas, Inc.
 
Delaware
MetaSolv, Inc.
 
Delaware
Moonshot Acquisition Corporation
 
Delaware
MySQL Americas, Inc.
 
Delaware
Niwot Acquisition Corp.
 
Delaware
Octet String, Inc.
 
Delaware
OIC Acquisition I Corporation
 
Delaware
 
Page 1

  Subsidiaries   Place of Incorporation
OIC Acquisition II Corporation
 
Delaware
OIC Acquisition VIII Corporation
 
Delaware
OnTarget Acquisition Sub LLC
 
Delaware
OnTarget Acquisition Sub II LLC
 
Delaware
OnTarget Acquisition Sub III LLC
 
Delaware
Oracle Acquisition I Corporation
 
Delaware
Oracle Acquisition II Corporation
 
Delaware
Oracle America, Inc.
 
Delaware
Oracle Americas Investment 2 LLC
 
Delaware
Oracle Americas Investment 3 LLC
 
Delaware
Oracle Americas Investment LLC
 
Delaware
Oracle BEA Spain Holding LLC
 
Delaware
Oracle Financial Services Software America, Inc.
 
Delaware
Oracle Financial Services Software, Inc.
 
Delaware
Oracle Global Holdings, Inc.
 
Delaware
Oracle GKS Hungary LLC
 
Delaware
Oracle Holdings, Inc.
 
Delaware
Oracle Japan Holding, Inc.
 
Delaware
Oracle Mauritius Holding Company
 
Delaware
Oracle OTC Holdings General Partnership
 
Delaware
Oracle OTC Holdings LLC
 
Delaware
Oracle Systems Corporation
 
Delaware
Oracle Taiwan LLC
 
Delaware
Orchestream USA, Inc.
 
Delaware
Pine Acquisition Corporation
 
Delaware
Plumtree Software, Inc.
 
Delaware
Q-Layer, Corp.
 
Delaware
RSIB, Inc.
 
Delaware
Siebel Helpline.com, Inc.
 
Delaware
Siebel Systems Holdings, LLC
 
Delaware
Siebel Systems International LLC
 
Delaware
Siebel Systems International LP
 
Delaware
Siebel Systems, Inc.
 
Delaware
Siebel Systems Ireland Holdings LLC
 
Delaware
SLP2 LLC
 
Delaware
Sotas, Inc.
 
Delaware
SPL WorldGroup Holdings, LLC
 
Delaware
SPL WorldGroup, Inc.
 
Delaware
StorageTek International Corporation
 
Delaware
Stratford Acquisition Corporation
 
Delaware
Sun Microsystems Exchange, Inc.
 
Delaware
Sun Microsystems Global Financial Services, LLC
 
Delaware
The Theory Center, Inc.
 
Delaware
Strategic Processing Corporation
 
Illinois
Monaco Acquisition Corporation
 
Maryland
 
Page 2

Subsidiaries
  Place of Incorporation 
Lodestar Corporation
 
Massachusetts
RogersGrant LLP
 
Massachusetts
nquire Software, Inc.
 
Minnesota
Stellent, Inc.
 
Minnesota
Delphi Asset Management Corporation
 
Nevada
Reliaty, Inc.
 
New Hampshire
Nomadic Systems, Inc.
 
New Jersey
ISOPIA Corp.
 
New York
Softport Systems, Inc.
 
New York
The 20-20 Group, Ltd.
 
Ohio
Primavera Software, Inc.
 
Pennsylvania
Primavera Systems, Inc.
 
Pennsylvania
Prodika, Inc.
 
Texas
Oracle Argentina, S.A.
 
Argentina
Sun Microsystems de Argentina, S.A.
 
Argentina
A.C.N.# 075-333596
 
Australia
BEA Systems Pty Ltd.
 
Australia
edocs Asia-Pacific Pty Limited
 
Australia
Eontec Australia Pty Limited
 
Australia
G-Log Pty Ltd.
 
Australia
Haley (Australia) Pty. Limited
 
Australia
Hyperion Solutions Australia Pty. Ltd.
 
Australia
IQMS Pty Ltd.
 
Australia
J.D. Edwards Australia Pty. Ltd
 
Australia
J.D. Edwards World Solutions Company Pty Ltd.
 
Australia
LODESTAR Solutions Australia Pty. Ltd.
 
Australia
MetaSolv Australia Pty Limited
 
Australia
MySQL Australia Pty. Ltd.
 
Australia
Oracle Australia Holdings Pty. Ltd.
 
Australia
Oracle Australia Property Pty. Ltd.
 
Australia
Oracle Consolidation Australia Pty. Ltd.
 
Australia
Oracle Corporation Australia Pty. Limited
 
Australia
Oracle Superannuation Pty Limited
 
Australia
PeopleSoft Australia Pty. Ltd
 
Australia
Portal Software International Pty Ltd.
 
Australia
Retek Information Systems Pty Ltd.
 
Australia
RuleBurst Holdings Pty. Ltd.
 
Australia
SeeBeyond Pty. Ltd.
 
Australia
Sidewinder Asia Pacific Pty Ltd.
 
Australia
Siebel Systems Australia Pty. Limited
 
Australia
SPL (Australia) Pty Ltd.
 
Australia
SPL WorldGroup (Australia) Pty Ltd.
 
Australia
SPL WorldGroup Holdings (Australia) Pty Ltd.
 
Australia
Statute Technologies Pty. Limited
 
Australia
Stellent Asia Pty Ltd.
 
Australia
Page 3

 
Subsidiaries
 
Place of Incorporation 
Sun Microsystems Australia Pty. Ltd.
 
Australia
Vantive Australia Pty. Ltd.
 
Australia
Oracle Austria GmbH
 
Austria
Sun Microsystems Ges.m.b.H
 
Austria
BEA Systems (FSC) Inc.
 
Barbados
Hyperion Foreign Sales Corporation
 
Barbados
J.D. Edwards & Company Foreign Sales, Inc.
 
Barbados
Crest Group N.V.
 
Belgium
Oracle Belgium B.V.B.A/SPRL.
 
Belgium
Q-Layer BVBA
 
Belgium
Sun Microsystems Belgium N.V./S.A.
 
Belgium
GoldenGate Software Worldwide LP
 
Bermuda
Hyperion Solutions Technologies, LP
 
Bermuda
Solaris Indemnity, Ltd.
 
Bermuda
StorageTek (Bermuda) Finance Limited
 
Bermuda
Sun Microsystems Technology Ltd.
 
Bermuda
Oracle BH d.o.o. Sarajevo
 
Bosnia & Herzegovina
Oracle do Brasil Sistemas Limitada
 
Brazil
Sun Microsystems do Brasil Industria e Comercio Ltda.
 
Brazil
PSFT (BVI) Holding Corporation
 
British Virgin Islands
PeopleSoft China Holding Corporation
 
British Virgin Islands
3055855 Nova Scotia Company
 
Canada
514713 N.B. Inc.
 
Canada
BEA Systems, Ltd.
 
Canada
i-flex Solutions Inc. (Canada)
 
Canada
ISOPIA Company
 
Canada
GoldenGate Software Canada Ltd.
 
Canada
Oracle Canada ULC
 
Canada
Oracle Nova Scotia Company
 
Canada
Oracle Numetrix Company
 
Canada
Star Acquisition ULC
 
Canada
Steltor Corporation
 
Canada
Steltor General Partnership
 
Canada
Steltor Inc.
 
Canada
Sun Microsystems (B.C.) ULC
 
Canada
WebGain (Nova Scotia) Company
 
Canada
WebGain Canada Inc.
 
Canada
BEA CrossGain International
 
Cayman Islands
BEA International (fka BEA Cayman Holding III)
 
Cayman Islands
Oracle International Holding Company
 
Cayman Islands
SPL WorldGroup International Ltd.
 
Cayman Islands
Sun Microsystems (U.A.E.) Ltd.
 
Cayman Islands
Centro de Capacitacion Oracle Ltda.
 
Chile
Oracle Financial Services Software Chile Ltda.
 
Chile
Sistemas Oracle de Chile, S.A.
 
Chile
Page 4

 
Subsidiaries
  Place of Incorporation
Sun Microsystems de Chile, S.A.
 
Chile
Agile Software (Suzhou) Co., Ltd.
 
China
BEA Systems (China) Co., Ltd.
 
China
BEA Technology (Beijing) Co., Ltd.
 
China
Hyperion Solutions (China) Ltd.
 
China
J.D. Edwards Software (Beijing) Co. Ltd.
 
China
Oracle (China) Software Systems Company Limited
 
China
Oracle Financial Services Software (Shanghai) Limited
 
China
Oracle Research & Development Center, Shenzhen, Ltd.
 
China
Oracle Research & Development Center, Beijing, Ltd.
 
China
PeopleSoft (Beijing) Software Co. Ltd.
 
China
StorageTek (China) Services Company Limited
 
China
Sun Microsystems (China) Co. Limited
 
China
Sun Microsystems Consulting Limited
 
China
Sun Microsystems Products, Limited
 
China
Oracle Colombia Limitada
 
Colombia
Sun Microsystems de Colombia, S.A.
 
Colombia
Oracle CR SSC, S.A.
 
Costa Rica
Oracle de Centroamérica, S.A.
 
Costa Rica
Oracle Hrvatska d.o.o.
 
Croatia
Oracle Systems Limited
 
Cyprus
Sun Microsystems (Cyprus) Limited
 
Cyprus
Oracle Czech s.r.o.
 
Czech Republic
Sun Microsystems Czech s.r.o.
 
Czech Republic
Oracle Danmark ApS
 
Denmark
Sun Microsystems Danmark A/S
 
Denmark
Oracle Egypt Ltd.
 
Egypt
Sun Microsystems (Egypt) Ltd.
 
Egypt
Innobase OY
 
Finland
Oracle Finland OY
 
Finland
Sun Microsystems OY
 
Finland
Oracle France, S.A.S.
 
France
Retek Information Systems S.A.
 
France
Sun Microsystems France S.A.S.
 
France
Sun Microsystems Services France S.A.S.
 
France
Blitz F09-eins GmbH
 
Germany
G-Log GmbH
 
Germany
innotek GmbH
 
Germany
Oracle Deutschland GmbH
 
Germany
PeopleSoft Unterstützungskasse GmbH
 
Germany
Sun Microsystems GmbH
 
Germany
Oracle Financial Services Software S.A.
 
Greece
Oracle Hellas, S.A.
 
Greece
Sun Microsystems (Hellas) S.A.
 
Greece
BEA Systems Hong Kong Ltd.
 
Hong Kong
Page 5

 
Subsidiaries
  Place of Incorporation 
Hyperion Solutions (Hong Kong) Ltd.
 
Hong Kong
Oracle Hong Kong Holdings Limited
 
Hong Kong
Oracle Systems Hong Kong Limited
 
Hong Kong
PeopleSoft Hong Kong Ltd.
 
Hong Kong
Portal Software (Asia Pacific) Limited
 
Hong Kong
RuleBurst (Asia) Limited
 
Hong Kong
Sun Microsystems China Limited
 
Hong Kong
Sun Microsystems of California Limited
 
Hong Kong
Oracle Hungary Kft.
 
Hungary
Qualification Development Számítástechnikai Korlátolt Felelősségű Társaság
 
Hungary
Sun Microsystems Kft.
 
Hungary
Agile Software Enterprise Private Limited
 
India
AmberPoint Technology India Private Limited
 
India
BEA Systems India Private Ltd.
 
India
BEA Systems India Technology Center Private Ltd.
 
India
ECTone (India) Private Limited
 
India
GoldenGate Technologies South Asia Pte Ltd.
 
India
Hyperion Solutions India Private Limited
 
India
J.D. Edwards India Software Pvt. Ltd.
 
India
Logical Apps Solutions Pvt. Ltd.
 
India
Mantas (India) Private Limited
 
India
mValent Technologies Pvt. Ltd.
 
India
Oracle Financial Services Software Limited
 
India
Oracle India Private Limited
 
India
Oracle (OFSS) ASP Private Limited
 
India
Oracle (OFSS) BPO Services Limited
 
India
Oracle (OFSS) Processing Services Limited
 
India
Oracle Solution Services (India) Private Ltd.
 
India
PeopleSoft India Private Ltd.
 
India
Portal Information Technology India Private Limited
 
India
ProfitLogic Software Private Limited
 
India
Relsys (India) Private Limited
 
India
Siebel Systems Software (India) Private Limited
 
India
Sophoi Technologies Private Limited
 
India
Sunday Bazaar Internet Sales
 
India
Sun Microsystems India Private Limited
 
India
PT Oracle Indonesia
 
Indonesia
BEA Systems Ireland Holding Limited
 
Ireland
BEA Systems Ireland Sales Support & Services Ltd
 
Ireland
Eontec Limited
 
Ireland
J.D. Edwards Europe Limited
 
Ireland
MySQL Ireland Ltd.
 
Ireland
Netsure Telecom Limited
 
Ireland
OCAPAC Distributor Partner
 
Ireland
OCAPAC Hardware Partner
 
Ireland
Page 6

 
  Subsidiaries   Place of Incorporation 
OCAPAC Holding Company
 
Ireland
OCAPAC Korea Holding Company
 
Ireland
OCAPAC NIH1 Company
 
Ireland
OCAPAC NIH3 Company
 
Ireland
OCAPAC Operating Company
 
Ireland
OCAPAC Research Company
 
Ireland
OCAPAC Research Partner
 
Ireland
OCAPAC Vietnam Holding Company
 
Ireland
Oracle CAPAC Services Limited
 
Ireland
Oracle East Central Europe Limited
 
Ireland
Oracle EMEA Holdings
 
Ireland
Oracle EMEA Limited
 
Ireland
Oracle Technology Company
 
Ireland
Siebel Systems EMEA Limited
 
Ireland
Siebel Systems Ireland Holdings Limited
 
Ireland
SPL WorldGroup (Ireland) Limited
 
Ireland
Sun Microsystems Ireland Limited
 
Ireland
BEA Systems Middle East Ltd.
 
Israel
Convergin Israel Ltd.
 
Israel
Oracle Demantra R&D Center Israel Ltd.
 
Israel
Oracle HyperRoll Ltd.
 
Israel
Oracle Primavera Ltd.
 
Israel
Oracle Software Systems Israel Limited
 
Israel
SPL WorldGroup 2000 Ltd.
 
Israel
Sun Microsystems Israel Limited
 
Israel
Oracle Italia S.R.L.
 
Italy
Sun Microsystems Italia S.p.A.
 
Italy
Oracle Corporation Japan
 
Japan
Oracle Information Systems (Japan) K.K.
 
Japan
Sun Microsystems Global Finance K.K.
 
Japan
Sun Microsystems K.K.
 
Japan
Oracle Consulting Kazakhstan LLP
 
Kazakhstan
Oracle Korea, Ltd.
 
Korea
Sun Microsystems Korea, Limited
 
Korea
Oracle CAPAC Finance S.a.r.l.
 
Luxembourg
Oracle Finance S.a.r.l.
 
Luxembourg
PeopleSoft Luxembourg S.a.r.l.
 
Luxembourg
SPL Acquisition S.a.r.l.
 
Luxembourg
Sun Microsystems Investments S.a.r.l.
 
Luxembourg
Sun Microsystems Luxembourg S.a.r.l.
 
Luxembourg
G-Log Sdn Bhd.
 
Malaysia
Oracle Corporation Malaysia Holdings Sdn. Bhd.
 
Malaysia
Oracle Corporation Malaysia Sdn. Bhd.
 
Malaysia
Oracle MSC Sdn. Bhd.
 
Malaysia
PeopleSoft Worldwide (M) Sdn. Bhd.
 
Malaysia
Page 7

 
Subsidiaries
  Place of Incorporation  
StorageTek (Malaysia) Sdn. Bhd.
 
Malaysia
Sun Microsystems Malaysia Sdn. Bhd.
 
Malaysia
AmberPoint Technology Mauritius Private Ltd.
 
Mauritius
ISP Internet Mauritius Company
 
Mauritius
OCAPAC Mauritius Holding Company
 
Mauritius
Oracle Global (Mauritius) Ltd.
 
Mauritius
Oracle de Mexico, S.A. de C.V.
 
Mexico
Sun Microsystems de Mexico, S.A. de C.V.
 
Mexico
BEA Systems Distribution B.V.
 
Netherlands
edocs Europe Netherlands B.V.
 
Netherlands
G-Log B.V.
 
Netherlands
Oracle Corporation UK Finance B.V.
 
Netherlands
Oracle Deutschland Verwaltung B.V.
 
Netherlands
Oracle Distribution B.V.
 
Netherlands
Oracle East Central Europe Services BV
 
Netherlands
Oracle Financial Services Software B.V.
 
Netherlands
Oracle Nederland B.V.
 
Netherlands
Oracle Scheduler B.V.
 
Netherlands
PeopleSoft International B.V.
 
Netherlands
SPL WorldGroup B.V.
 
Netherlands
Stellent Holding B.V.
 
Netherlands
Sun Microsystems European Holding B.V.
 
Netherlands
Sun Microsystems Europe Properties B.V.
 
Netherlands
Sun Microsystems Global Services B.V.
 
Netherlands
Sun Microsystems International B.V.
 
Netherlands
Sun Microsystems International Holding B.V.
 
Netherlands
Sun Microsystems (Middle East) B.V.
 
Netherlands
Sun Microsystems Nederland B.V.
 
Netherlands
Sun Microsystems Scotland B.V.
 
Netherlands
Tinoway Nederland B.V.
 
Netherlands
Oracle Holding Antilles N.V.
 
Netherlands Antilles
Oracle New Zealand
 
New Zealand
Oracle Software (Nigeria) Limited
 
Nigeria
Oracle Norge AS
 
Norway
Sun Microsystems AS
 
Norway
Oracle Systems Pakistan (Private) Limited
 
Pakistan
Sistemas Oracle del Peru, S.A.
 
Peru
Oracle (Philippines) Corporation
 
Philippines
SPL WorldGroup (Philippines), Inc.
 
Philippines
BEA Systems Poland SP Z.o.o.
 
Poland
Oracle Polska, Sp.z.o.o.
 
Poland
Sun Microsystems Poland Sp.z.o.o.
 
Poland
Oracle Portugal - Sistemas de Informação Lda.
 
Portugal
Sun Microsystems (Portugal) Tecnicas de Informatica, Sociedade Unipessoal, Limitada
 
Portugal
Page 8

 
Subsidiaries
  Place of Incorporation 
Oracle Caribbean, Inc.
 
Puerto Rico
Oracle Support Renewals EMEA SRL
 
Romania
Oracle Romania SRL
 
Romania
MySQL LLC
 
Russia
SPL Worldgroup LLC
 
Russia
Sun Microsystems AO
 
Russia
Sun Microsystems SPB LLC
 
Russia
Oracle Systems Limited
 
Saudi Arabia
Saudi Oracle Limited (under liquidation)
 
Saudi Arabia
Sun Microsystems Scotland Holding LP
 
Scotland
Sun Microsystems Scotland Limited
 
Scotland
Sun Microsystems Scotland LP
 
Scotland
Oracle SRBIJA CRNA GORA d.o.o.
 
Serbia
G-Log Pte Ltd.
 
Singapore
GoldenGate Software Asia Pacific Pte. Ltd.
 
Singapore
Haley (Singapore) Pte. Ltd.
 
Singapore
Hyperion Software Pte. Ltd.
 
Singapore
Hyperion Solutions Asia Pte. Ltd.
 
Singapore
Mantas Singapore Pte. Ltd.
 
Singapore
Oracle Corporation Singapore Pte. Ltd.
 
Singapore
Oracle Financial Services Consulting Pte. Ltd.
 
Singapore
Oracle Financial Services Software Pte. Ltd.
 
Singapore
Oracle Singapore Holdings Pte. Ltd.
 
Singapore
Sun Microsystems Pte. Ltd.
 
Singapore
Oracle Slovensko spol. s.r.o.
 
Slovakia
Sun Microsystems Slovakia, s.r.o.
 
Slovakia
Oracle Software d.o.o. Ljubljana
 
Slovenia
Oracle Corporation (South Africa)(Pty) Limited
 
South Africa
Oracle Empowerment (Pty) Ltd.
 
South Africa
Sun Microsystems (South Africa) (Pty) Limited
 
South Africa
Oracle Iberica, S.R.L.
 
Spain
Sun Microsystems Iberica, S.A.U.
 
Spain
MySQL AB
 
Sweden
Oracle Svenska AB
 
Sweden
Sun Microsystems AB
 
Sweden
Oracle GmbH
 
Switzerland
Oracle Software (Schweiz) GmbH
 
Switzerland
Plumtree Software GmbH
 
Switzerland
Sun Microsystems (Schweiz) AG
 
Switzerland
J.D. Edwards (Taiwan) Company Ltd.
 
Taiwan
PeopleSoft Taiwan Ltd. Co.
 
Taiwan
Sun Microsystems Taiwan Limited
 
Taiwan
Oracle Corporation (Thailand) Company Limited
 
Thailand
Sun Microsystems (Thailand) Limited
 
Thailand
Oracle Bilgisayar Sistemleri Limited Sirketi
 
Turkey
Oracle Bilgi Sistemleri Sanayi Ve Ticaret Limited Sirketi
 
Turkey
Page 9

 
Subsidiaries
  Place of Incorporation  
Sun Microsystems (Bilgisayar Sistemleri) Limited Sirketi
 
Turkey
Sun Microsystems Ukraine LLC
 
Ukraine
PeopleSoft Middle East FZ-LLC
 
United Arab Emirates
Siebel Systems Middle East FZ-LLC
 
United Arab Emirates
Acsera Limited
 
United Kingdom
Advanced Visual Technology
 
United Kingdom
Advanced Visual Technology Americas
 
United Kingdom
Haley (Europe)
 
United Kingdom
Mantas Limited
 
United Kingdom
MySQL UK Ltd.
 
United Kingdom
Oracle Corporation Nominees Limited
 
United Kingdom
Oracle Corporation UK Holdings Limited
 
United Kingdom
Oracle Corporation UK Limited
 
United Kingdom
Oracle Corporation UK Trustee Company Limited
 
United Kingdom
Oracle EMEA Management
 
United Kingdom
Oracle Sun Acquisition
 
United Kingdom
Oracle Sun Integration Limited
 
United Kingdom
Pertmaster Limited
 
United Kingdom
Primavera UK Acquisition Limited
 
United Kingdom
Relsys UK Limited
 
United Kingdom
Siebel Systems UK
 
United Kingdom
Skywire Software
 
United Kingdom
Sun Microsystems Holdings Limited
 
United Kingdom
Sun Microsystems Limited
 
United Kingdom
Oracle de Venezuela, C.A.
 
Venezuela
Sun Microsystems de Venezuela, S.A.
 
Venezuela
Oracle Vietnam Pte. Ltd.
 
Vietnam

Page 10


June [ ], 2016
Affiliates of SAP SE
   

Subsidiaries and Location
SRS Software - und Systemhaus Dresden GmbH, Germany
SAP Retail Solutions GmbH & Co., Germany
Steeb Anwendungssysteme GmbH., Germany
SAP Systems Integration GmbH., Germany
Asset GmbH Assessment & Training Technologies Friedrichshafen, Germany
STEEB-CAS Informationstechnik GmbH i.L., Germany
DACOS Software Holding GmbH., Germany
SAP (UK) Limited, UK
SAP FRANCE SYSTEMES APPLICATIONS ET PROGICIELS S.A., France
SAP (Schweiz) AG, Switzerland
SAP Nederland B.V., Netherlands
SAP Osterreich, Systeme, Anwendungen und Produkte in der Datenverabeitung Gesellschaft m.b.H., Austria
SAP Danmark A/S, Denmark
SAP Svenska Aktiebolag, Sweden
SAP ESPANA Y PORTUGAL SISTEMAS APLICACIONES Y PRODUCTOS EN LA INFORMATICA, S.A., Spain
S.A.P. Italia Sistemi Applicazioni Prodotti in Data Processing S.p.A.
NV SAP Belgium S.A., Belgium
SAP CR, s.r.o., Czech Republic
SAP Polska Sp. z.o.o., Poland
SAP Consult C.I.S., Russia
SAP Service and Support Centre (Ireland) Limited, Ireland
DACOS Software S.A., Switzerland
STEEB-CAS Informationstechnik AG in Liq., Switzerland
SAP Ireland Ltd., Ireland
SAP Retail Solutions Nederland B.V., Netherlands
SAP Hungary Rendszerek, Alkalmazasok es Termekek az Adatfeldolgozasban Kft., Hungary
SAP America, Inc., Delaware
SAP Canada Systems, Applications and Products in Data Processing Inc., Canada
SAP BRASIL COMERCIO E REPRESENTACOES LTDA.
SAP Labs, Inc. formerly SAP Technology, Inc., Delaware
SAP MEXICO S.A. DE C.V., Mexico
SAP ARGENTINA S.A., Argentina
SAP Andina y del Caribe S.A., Venezuela
SAP International, Inc., Delaware
SAP America Public Sector, Inc., Delaware
WS Investment Holdings, L.P., Delaware
SAP Japan Co., Ltd., Japan
SAP AUSTRALIA PTY LTD, Australia
SAP Asia Systems, Applications and Products in Data Processing Pte. Ltd., Singapore
SAP Korea Limited, Korea
SAP India Systems, Applications and Products in Data Processing Private Limited, India
SAP Data Processing (Malaysia) Sdn Bhd, Malaysia
SAP New Zealand Limited, New Zealand
SAP SYSTEMS, APPLICATIONS AND PRODUCTS IN DATA PROCESSING (THAILAND) LTD., Thailand
SAP (Beijing) Software System Co., Ltd., China
SAP Taiwan Co. Ltd., Taiwan
SAP HONG KONG Co. Limited, Hong Kong
SAP PHILIPPINES SYSTEMS, APPLICATIONS AND PRODUCTS IN DATA PROCESSING, INC., Philippines
SAP India (Holding) Pte. Ltd., Singapore
PT SAP Asia, Indonesia
SYSTEMS APPLICATIONS PRODUCTS (SOUTHERN AFRICA) (PTY) LTD, South Africa
Ariba, Inc., Palo Alto, CA, United States
Concur Technologies, Inc., Bellevue, WA, United States
Page 1

 
Subsidiaries and Location
LLC SAP CIS, Moscow, Russia
SAP (Beijing) Software System Co., Ltd., Beijing, China
SAP (Schweiz) AG, Biel, Switzerland
SAP (UK) Limited, Feltham, United Kingdom
SAP America, Inc., Newtown Square, PA, United States
SAP Asia Pte Ltd, Singapore, Singapore
SAP Australia Pty Ltd, Sydney, Australia
SAP Brasil Ltda, São Paulo, Brazil
SAP Canada, Inc., Toronto, Canada
SAP Deutschland SE & Co. KG, Walldorf, Germany
SAP France, Levallois Perret, France
SAP India Private Limited, Bangalore, India
SAP Industries, Inc., Newtown Square, PA, United States
SAP Italia Sistemi Applicazioni Prodotti in Data Processing S.p.A., Vimercate, Italy
SAP Japan Co., Ltd., Tokyo, Japan
SAP Labs India Private Limited, Bangalore, India
SAP Labs, LLC, Palo Alto, CA, United States
SAP Nederland B.V., ‘s-Hertogenbosch, the Netherlands
SAP Service and Support Centre (Ireland) Limited, Dublin, Ireland
SuccessFactors, Inc., South San Francisco, CA, United States
Sybase, Inc., Dublin, CA, United States
“SAP Kazakhstan” LLP, Almaty, Kazakhstan
110405, Inc., Newtown Square, PA, United States
Ambin Properties (Proprietary) Limited, Johannesburg, South Africa
Ariba Czech s.r.o., Prague, Czech Republic
Ariba India Private Limited, Gurgaon, India
Ariba International Holdings, Inc., Wilmington, DE, United States
Ariba International Singapore Pte Ltd, Singapore, Singapore
Ariba International, Inc., Wilmington, DE, United States
Ariba Investment Company, Inc., Wilmington, DE, United States
Ariba Slovak Republic s.r.o., Košice, Slovakia
Ariba Software Technology Services (Shanghai) Co., Ltd., Shanghai, China
Ariba Technologies India Private Limited, Bangalore, India
Ariba Technologies Netherlands B.V., ‘s-Hertogenbosch, the Netherlands
Beijing Zhang Zhong Hu Dong Information Technology Co., Ltd., Beijing, China
b-process, Paris, France
Business Objects (UK) Limited, London, United Kingdom
Business Objects Holding B.V., ‘s-Hertogenbosch, the Netherlands
Business Objects Option LLC, Wilmington, DE, United States
Business Objects Software (Shanghai) Co., Ltd., Shanghai, China
Business Objects Software Limited, Dublin, Ireland
Christie Partners Holding C.V., Utrecht, the Netherlands
ClearTrip Inc. (Mauritius), Ebene, Mauritius
ClearTrip Inc., George Town, Cayman Islands
Cleartrip MEA FZ LLC, Dubai, United Arab Emirates
ClearTrip Private Limited, Mumbai, India
CNQR Operations Mexico S. de. R.L. de. C.V., San Pedro Garza Garcia, Mexico
Concur (Austria) GmbH, Vienna, Austria
Concur (Canada), Inc., Toronto, Canada
Concur (France) SAS, Paris, France
Concur (Germany) GmbH, Frankfurt am Main, Germany
Concur (Italy) S.r.l., Milan, Italy
Concur (Japan) Ltd., Bunkyo-ku, Japan
Concur (New Zealand) Limited, Wellington, New Zealand
Concur (Philippines) Inc., Makati City, Philippines
Concur (Switzerland) GmbH, Zurich, Switzerland
Concur Czech (s.r.o.), Prague, Czech Republic
Page 2

 
Subsidiaries and Location
Concur Denmark ApS, Frederiksberg, Denmark
Concur Holdings (France) SAS, Paris, France
Concur Holdings (Netherlands) B.V., Amsterdam, the Netherlands
Concur Holdings (US) LLC, Wilmington, DE, United
Concur Technologies (UK) Limited, London, United Kingdom
ConTgo Consulting Limited, London, United Kingdom
ConTgo Limited, London, United Kingdom
ConTgo MTA Limited, London, United Kingdom
ConTgo Pty. Ltd., Sydney, Australia
Crossgate UK Limited, Slough, United Kingdom
Crystal Decisions (Ireland) Limited, Dublin, Ireland
Crystal Decisions Holdings Limited, Dublin, Ireland
Crystal Decisions UK Limited, London, United Kingdom
EssCubed Procurement Pty. Ltd., Johannesburg, South Africa
Extended Systems, Inc., Dublin, CA, United States
Fieldglass AsiaPac PTY Ltd, Brisbane, Australia
Fieldglass Europe Limited, London, United Kingdom
Financial Fusion, Inc., Dublin, CA, United States
FreeMarkets International Holdings Inc. de Mexico, de S. de R.L. de C.V., Mexico City, Mexico
FreeMarkets Ltda., São Paulo, Brazil
Gelco Information Network, Inc., Minneapolis, MN, United States
GlobalExpense (Consulting) Limited, London, United Kingdom
GlobalExpense (UK) Limited, London, United Kingdom
H-G Holdings, Inc., Wilmington, DE, United States
H-G Intermediate Holdings, Inc., Wilmington, DE, United States
hybris (US) Corp., Wilmington, DE, United States
hybris AG, Zug, Switzerland
hybris Australia Pty Limited, Surry Hills, Australia
hybris GmbH, Munich, Germany
hybris Hong Kong Limited, Hong Kong, China
hybris UK Limited, London, United Kingdom
Inxight Federal Systems Group, Inc., Wilmington, DE, United States
KXEN Limited, Feltham, United Kingdom
LLC “SAP Labs”, Moscow, Russia
LLC “SAP Ukraine”, Kiev, Ukraine
Merlin Systems Oy, Espoo, Finland
Multiposting SAS, Paris, France
Multiposting Sp.z o.o., Warsaw, Poland
Nihon Ariba K.K., Tokyo, Japan
OutlookSoft Deutschland GmbH, Walldorf, Germany
Plateau Systems Australia Ltd, Brisbane, Australia
Plateau Systems LLC, South San Francisco, CA, United States
PT SAP Indonesia, Jakarta, Indonesia
PT Sybase 365 Indonesia, Jakarta, Indonesia
Quadrem Africa Pty. Ltd., Johannesburg, South Africa
Quadrem Australia Pty Ltd., Brisbane, Australia
Quadrem Brazil Ltda., Rio de Janeiro, Brazil
Quadrem Chile Ltda., Santiago de Chile, Chile
Quadrem Colombia SAS, Bogotá, Colombia
Quadrem International Ltd., Hamilton, Bermuda
Quadrem Netherlands B.V., Amsterdam, the Netherlands
Quadrem Overseas Cooperatief U.A., Amsterdam, the Netherlands
Quadrem Peru S.A.C., Lima, Peru
Ruan Lian Technologies (Beijing) Co., Ltd., Beijing, China
San Borja Partricipadoes LTDA, São Paulo, Brazil
Page 3

 
Subsidiaries and Location
SAP Andina y del Caribe, C.A., Caracas, Venezuela
SAP Argentina S.A., Buenos Aires, Argentina
SAP Asia (Vietnam) Co., Ltd., Ho Chi Minh City, Vietnam
SAP Azerbaijan LLC, Baku, Azerbaijan
SAP Belgium NV/SA, Brussels, Belgium
SAP Beteiligungs GmbH, Walldorf, Germany
SAP Bulgaria EOOD, Sofia, Bulgaria
SAP Business Compliance Services GmbH, Siegen, Germany
SAP Business Services Center Europe s.r.o., Prague, Czech Republic
SAP Business Services Center Nederland B.V., ‘s-Hertogenbosch, the Netherlands
SAP Chile Limitada, Santiago, Chile
SAP China Co., Ltd., Shanghai, China
SAP China Holding Co., Ltd., Beijing, China
SAP Colombia SAS., Bogotá, Colombia
SAP Commercial Services Ltd., Valletta, Malta
SAP Costa Rica, S.A., San José, Costa Rica
SAP ČR, spol. s r.o., Prague, Czech Republic
SAP Cyprus Ltd, Nicosia, Cyprus
SAP d.o.o., Zagreb, Croatia
SAP Danmark A/S, Copenhagen, Denmark
SAP Dritte Beteiligungs- und Vermögensverwaltungs GmbH, Walldorf, Germany
SAP East Africa Limited, Nairobi, Kenya
SAP Egypt LLC, Cairo, Egypt
SAP EMEA Inside Sales S.L., Barcelona, Spain
SAP Erste Beteiligungs- und Vermögensverwaltungs GmbH, Walldorf, Germany
SAP Espana – Sistemas, Aplicaciones y Productos en la Informática, S.A., Madrid, Spain
SAP Estonia OÜ, Tallinn, Estonia
SAP Financial, Inc., Toronto, Canada
SAP Finland Oy, Espoo, Finland
SAP Foreign Holdings GmbH, Walldorf, Germany
SAP France Holding, Levallois Perret, France
SAP Fünfte Beteiligungs- und Vermögensverwaltungs GmbH, Walldorf, Germany
SAP Global Marketing, Inc., New York, NY, United States
SAP Hellas S.A., Athens, Greece
SAP Holdings (UK) Limited, Feltham, United Kingdom
SAP Hong Kong Co., Ltd., Hong Kong, China
SAP Hosting Beteiligungs GmbH, St. Leon-Rot, Germany
SAP Hungary Rendszerek, Alkalmazások és Termékek az Adatfeldolgozásban Informatikai Kft., Budapest, Hungary
SAP India (Holding) Pte Ltd, Singapore, Singapore
SAP International Panama, S.A., Panama City, Panama
SAP International, Inc., Miami, FL, United States
SAP Investments, Inc., Wilmington, DE, United States
SAP Ireland Limited, Dublin, Ireland
SAP Ireland-US Financial Services Ltd., Dublin, Ireland
SAP Israel Ltd., Ra’anana, Israel
SAP Korea Ltd., Seoul, South Korea
SAP Labs Bulgaria EOOD, Sofia, Bulgaria
SAP Labs Finland Oy, Espoo, Finland
SAP Labs France SAS, Mougins, France
SAP Labs Israel Ltd., Ra’anana, Israel
SAP Labs Korea, Inc., Seoul, South Korea
SAP Latvia SIA, Riga, Latvia
SAP Malaysia Sdn. Bhd., Kuala Lumpur, Malaysia
SAP Malta Investments Ltd., Valletta, Malta
SAP México S.A. de C.V., Mexico City, Mexico
SAP Middle East and North Africa L.L.C., Dubai, United Arab Emirates
Page 4

 
Subsidiaries and Location
SAP National Security Services, Inc., Newtown Square, PA, United States
SAP Nederland Holding B.V., ‘s-Hertogenbosch, the Netherlands
SAP New Zealand Limited, Auckland, New Zealand
SAP Norge AS, Lysaker, Norway
SAP North West Africa Ltd, Casablanca, Morocco
SAP Österreich GmbH, Vienna, Austria
SAP PERU S.A.C., Lima, Peru
SAP Philippines, Inc., Makati, Philippines
SAP Polska Sp. z o.o., Warsaw, Poland
SAP Portals Europe GmbH, Walldorf, Germany
SAP Portals Holding Beteiligungs GmbH, Walldorf, Germany
SAP Portals Israel Ltd., Ra’anana, Israel
SAP Portugal – Sistemas, Aplicações e Produtos Informáticos, Sociedade Unipessoal, Lda., Porto Salvo, Portugal
SAP Projektverwaltungs- und Beteiligungs GmbH, Walldorf, Germany
SAP Public Services Hungary Kft., Budapest, Hungary
SAP Public Services, Inc., Washington, DC, United States
SAP Puerto Rico GmbH, Walldorf, Germany
SAP Retail Solutions Beteiligungsgesellschaft mbH, Walldorf, Germany
SAP Romania SRL, Bucharest, Romania
SAP Saudi Arabia Software Services Ltd, Riyadh, Kingdom of Saudi Arabia
SAP Saudi Arabia Software Trading Ltd, Riyadh, Kingdom of Saudi Arabia
SAP Sechste Beteiligungs- und Vermögensverwaltungs GmbH, Walldorf, Germany
SAP sistemi, aplikacije in produkti za obdelavo podatkov d.o.o., Ljubljana, Slovenia
SAP Slovensko s.r.o., Bratislava, Slovakia
SAP Software and Services LLC, Doha, Qatar
SAP Svenska Aktiebolag, Stockholm, Sweden
SAP Systems, Applications and Products in Data Processing (Thailand) Ltd., Bangkok, Thailand
SAP Taiwan Co., Ltd., Taipei, Taiwan
SAP Technologies Inc., Palo Alto, CA, United States
SAP Training and Development Institute FZCO, Dubai, United Arab Emirates
SAP Türkiye Yazilim Üretim ve Ticaret A.Ş., Istanbul, Turkey
SAP UAB, Vilnius, Lithuania
SAP Ventures Investment GmbH, Walldorf, Germany
SAP Vierte Beteiligungs- und Vermögensverwaltungs GmbH, Walldorf, Germany
SAP West Balkans d.o.o., Belgrade, Serbia
SAP Zweite Beteiligungs- und Vermögensverwaltungs GmbH, Walldorf, Germany
Sapphire SAP HANA Fund of Funds, L.P., Wilmington, DE, United States
Sapphire Ventures Fund I, L.P., Wilmington, DE, United States
Sapphire Ventures Fund II, L.P., Wilmington, DE, United States
SAPV (Mauritius), Ebene, Mauritius
SeeWhy (UK) Limited, Windsor, United Kingdom
Shanghai SuccessFactors Software Technology Co., Ltd., Shanghai, China
SuccessFactors (Philippines), Inc., Pasig City, Philippines
SuccessFactors (UK) Limited, London, United Kingdom
SuccessFactors Asia Pacific Limited, Hong Kong, China
SuccessFactors Australia Holdings Pty Ltd, Brisbane, Australia
SuccessFactors Australia Pty Limited, Brisbane, Australia
SuccessFactors Cayman, Ltd., Grand Cayman, Cayman Islands
SuccessFactors Hong Kong Limited, Hong Kong, China
SuccessFactors International Holdings, LLC, San Mateo, CA, United States
Sybase (UK) Limited, Maidenhead, United Kingdom
Sybase 365 Ltd., Tortola, British Virgin Islands
Sybase 365, LLC, Dublin, CA, United States
Sybase Angola, LDA, Luanda, Angola
Sybase Iberia S.L., Madrid, Spain
Sybase India Ltd., Mumbai, India
Page 5

 
Subsidiaries and Location
Sybase International Holdings Corporation, LLC, Dublin, CA, United States
Sybase Philippines, Inc., Makati City, Philippines
Sybase Software (China) Co., Ltd., Beijing, China
Sybase Software (India) Private Ltd., Mumbai, India
Syclo International Limited, Leeds, United Kingdom
Systems Applications Products Africa (Proprietary) Limited, Johannesburg, South Africa
Systems Applications Products Africa Region (Proprietary) Limited, Johannesburg, South Africa
Systems Applications Products Nigeria Limited, Victoria Island, Nigeria
Systems Applications Products South Africa (Proprietary) Limited, Johannesburg, South Africa
TechniData GmbH, Markdorf, Germany
Technology Licensing Company, LLC, Atlanta, GA, United States
TomorrowNow, Inc., Bryan, TX, United States
Travel Technology, LLC, Atlanta, GA, United States
TripIt LLC, Wilmington, DE, United States
TRX Data Service, Inc., Glen Allen, VA, United States
TRX Europe Limited, London, United Kingdom
TRX Fulfillment Services, LLC, Atlanta, GA, United States
TRX Germany GmbH, Berlin, Germany
TRX Luxembourg, S.a.r.l., Luxembourg City, Luxembourg
TRX Technologies India Private Limited, Raman Nagar, India
TRX Technology Services, L.P., Atlanta, GA, United States
TRX UK Limited, London, United Kingdom
TRX, Inc., Atlanta, GA, United States
China DataCom Corporation Limited, Guangzhou, China
Convercent, Inc., Denver, CO, United States
Evature Technologies (2009) Ltd., Ramat Gan, Israel
Greater Pacific Capital (Cayman) L.P., Grand Cayman, Cayman Islands
Nor1, Inc., Santa Clara, CA, United States
Procurement Negócios Eletrônicos S/A, Rio de Janeiro, Brazil
SAP - NOVABASE, A.C.E., Porto Salvo, Portugal
StayNTouch Inc., Bethesda, MD, United States
Visage Mobile Inc., San Francisco, CA, United States
Yapta, Inc., Seattle, WA , United States
Alchemist Accelerator Fund I LLC, San Francisco, CA, United States
All Tax Platform - Solucoes Tributarias S.A., São Paulo, Brazil
Alteryx, Inc., Irvine, CA, United States
Amplify Partners II L.P., Cambridge, MA, United States
Amplify Partners L.P., Cambridge, MA, United States
AP Opportunity Fund, LLC, Menlo Park, CA, United States
ArisGlobal Holdings LLC, Stamford, CT, United States
Char Software, Inc., Boston, MA, United States
Costanoa Venture Capital II L.P., Palo Alto, CA, United States
Costanoa Venture Capital QZ, LLC, Palo Alto, CA, United States
Cyphort, Inc., Santa Clara, CA, United States
Data Collective II L.P., San Francisco, CA, United States
Data Collective III L.P., San Francisco, CA, United States
EIT ICT Labs GmbH, Berlin, Germany
FeedZai S.A., Lisbon, Portugal
Follow Analytics, Inc., San Francisco, CA, United States
GK Software AG, Schöneck, Germany
IDG Ventures USA III, L.P., San Francisco, CA, United States
InnovationLab GmbH, Heidelberg, Germany
Integral Ad Science, Inc., New York, NY, United States
iYogi Holdings Pvt. Ltd., Port Louis, Mauritius
Jibe, Inc., New York, NY, United States
Kaltura, Inc., New York, NY, United States
Page 6

 
Subsidiaries and Location
Krux Digital, Inc., San Francisco, CA, United States
Lavante, Inc., San Jose, CA, United States
Local Globe VII, L.P., St. Peter Port, Guernsey, Channel Islands
Looker Data Sciences, Inc., Santa Cruz, CA, United States
MuleSoft, Inc., San Francisco, CA, United States
MVP Strategic Partnership Fund GmbH & Co. KG, Grünwald, Germany
Narrative Science, Inc., Chicago, IL, United States
Notation Capital, L.P., Brooklyn, NY, United States
On Deck Capital, Inc., New York, NY, United States
OpenX Software Limited, Pasadena, CA, United States
Patent Quality, Inc., Bellevue, WA, United States
Point Nine Capital Fund II GmbH & Co. KG, Berlin, Germany
Point Nine Capital Fund III GmbH & Co. KG, Berlin, Germany
Post for Systems, Cairo, Egypt
PubNub, Inc., San Francisco, CA, United States
Realize Corporation, Tokyo, Japan
Return Path, Inc., New York, NY, United States
Rome2rio Pty. Ltd., Albert Park, Australia
Scytl, S.A., Barcelona, Spain
Smart City Planning, Inc., Tokyo, Japan
Socrata, Inc., Seattle, WA, United States
Storm Ventures V, L.P., Menlo Park, CA, United States
SV Angel IV L.P., San Francisco, CA, United States
T3C Inc., Mountain View, CA, United States
TableNow, Inc., San Francisco, CA, United States
Technologie- und Gründerzentrum Walldorf Stiftung GmbH, Walldorf, Germany
The Currency Cloud Group Limited, London, United Kingdom
The SAVO Group Ltd., Chicago, IL, United States
TidalScale, Inc., Santa Clara, CA, United States
Upfront V, L.P., Santa Monica, CA, United States

Page 7

SCHEDULE 2.03

AMORTIZATION SCHEDULE

Commencing on the Amortization Commencement Date, the outstanding principal of the Term Loan shall be repayable on the first Business Day of every month, as set forth below:
 
 
Month
 
Amortization Payment
July 2016
$0
August 2016
$0
September 2016
$0
October 2016
$250,000
November 2016
$250,000
December 2016
$250,000
January 2017
$500,000
February 2017
$500,000
March 2017
$500,000
April 2017
$500,000
May 2017
$500,000
June 2017
$500,000
July 2017
$1,000,000
August 2017
$1,000,000
September 2017
$1,000,000
October 2017
$1,000,000
November 2017
$1,000,000
December 2017
$1,000,000
January 2018
$1,000,000
February 2018
$1,000,000
March 2018
$1,000,000
 
2

 
  Month
 
 
  Amortization Payment
 
April 2018
$1,000,000
May 2018
$1,000,000
June 2018
$1,000,000
July 2018
$1,250,000
August 2018
$1,250,000
September 2018
$1,250,000
October 2018
$1,250,000
November 2018
$1,250,000
December 2018
$1,250,000
January 2019
$1,250,000
February 2019
$1,250,000
March 2019
$1,250,000
April 2019
$1,250,000
May 2019
$1,250,000
June 2019
$1,250,000
July 2019
$1,250,000
August 2019
$1,250,000
September 2019
$1,250,000
October 2019
$1,250,000
November 2019
$1,250,000
December 2019
$1,250,000
January 2020
$1,250,000
February 2020
$1,250,000
March 2020
$1,250,000
April 2020
$1,250,000
3

 
 
Month
 
 
Amortization Payment
 
May 2020
$1,250,000
June 2020
$1,250,000
 
Notwithstanding the foregoing, (i) no payments set forth in the table above shall be due prior to the Amortization Commencement Date, and for the sake of clarity, any payments in the table above that are scheduled to occur prior to the Amortization Commencement Date shall be deferred until the Final Maturity Date and (ii) the Borrowers shall repay in full the unpaid principal amount of the Term Loan on the Final Maturity Date.
4

SCHEDULE 6.01(e)
CAPITALIZATION; SUBSIDIARIES

 
Rimini Street, Inc.
Number of Shares
Authorized
Number of Shares
Issued
Ownership
Common Stock
500,000,000
0
Please see attached capitalization table
Class A Common Stock
500,000,000
333,261
Class B Common Stock
192,000,000
100,995,771
 
 
 
Series A Preferred Stock
5,499,900
5,499,900
Series B Preferred Stock
38,545,560
38,545,560

 
Rimini Street, Inc.
Number of Options
Available for Grant
Number of Options
Outstanding
2007 Stock Plan
0
42,721,999
2013 Equity Incentive Plan
11,103,530
10,880,657

Rimini Street, Inc.
Available for Grant
Outstanding
Warrants
0
344,828

The Company’s Amended and Restated Shareholders’ Agreement, dated as of June 19, 2009, provides certain stockholders with a right of first refusal over certain non-permitted sales or transfers of Company shares.

 
Subsidiary
Number of Shares
Authorized
Number of
Shares Issued
Ownership
RSI International Holdings, Inc.
1,000
1,000
100% directly owned by Rimini Street, Inc.
RSI International Holdings, LLC
-
-
100% directly owned by RSI International Holdings, Inc.
Rimini Street Australia Pty Ltd.
100
100
100% directly owned by Rimini Street, Inc.
Rimini Street GmbH
25,000
25,000
100% directly owned by Rimini Street, Inc.
Nihon Rimini Street KK
30,000
30,000
100% directly owned by RSI International Holdings, Inc.

 
Rimini Street (HK) Limited
1
1
100% directly owned by RSI International Holdings, Inc.
Rimini Street Limited
100
100
100% directly owned by RSI International Holdings, Inc.
Rimini Street AB
50,000
50,000
100% directly owned by RSI International Holdings, Inc.
Rimini Street Israel Ltd.
100,000
10,000
100% directly owned by RSI International Holdings, Inc.
Rimini Street Brazil  Serviços de Tecnologia Ltda.
3,385,614
3,385,614
~99% directly owned by RSI Industrial Holdings, Inc. ~1% directly owned by RSI International Holdings, LLC.
Rimini Street India Operations Pvt Ltd.
2,000,000
319,973
~99% directly owned by RSI Industrial Holdings, Inc. ~1% directly owned by RSI International Holdings, LLC.
Rimini Street Software Technical Services (Beijing) Co., Ltd.
TBD
TBD
To be 100% directly owned by Rimini Street (HK) Ltd.
Rimini Street SAS 1
TBD
TBD
To be 100% directly owned by RSI International Holdings, Inc.
1 New subsidiary in the process of formation.  Formation to be completed after the Effective Date.

Rimini Street Korea 2
TBD
TBD
To be 100% directly owned by Rimini Street (HK) Ltd.
Rimini Street Taiwan 3
TBD
TBD
To be 100% directly owned by Rimini Street (HK) Ltd.
Rimini Street Singapore 4
TBD
TBD
To be 100% directly owned by Rimini Street (HK) Ltd.

2  New subsidiary in the process of formation.  Formation to be completed after the Effective Date.
3  New subsidiary in the process of formation.  Formation to be completed after the Effective Date.
4  New subsidiary in the process of formation.  Formation to be completed after the Effective Date.
 

Report Date
:
06/22/16
RiminiStreet , Inc.
   
Page 1 of 1
Date Printed
:
06/22/2016     at     10:12:55 AM
SUMMARY CAPITALIZATION
     

 
POST-08/01/06 SPLIT
 
POST-08/01/12 SPLIT

Stock  
Conversion
Ratio
   
Authorized
   
Shares
Outstanding
   
% Owned
Outstanding
   
Shares
Outstanding
As Converted
   
% Owned
On
As Converted
Basis
   
Shares
Outstanding
Fully
Diluted
   
% Owned
On Fully
Diluted
Basis
 
STOCK
                                               
COMMON STOCK
   
1.0000000000
     
500,000,000
                                     
CLASS A COMMON STOCK
   
1.0000000000
     
500,000,000
     
333,261
     
0.23
%
   
333,261
     
0.23
%
   
333,261
     
0.16
%
CLASS B COMMON STOCK
   
1.0000000000
     
192,000,000
     
100,995,771
     
69.47
%
   
100,995,771
     
69.47
%
   
100,995,771
     
48.00
%
PREFERRED STOCK
   
1.0000000000
     
44,045,460
                                                 
SERIESA PREFERRED STOCK
   
1.0000000000
     
5,499,900
     
5,499,900
     
3.78
%
   
5,499,900
     
3.78
%
   
5,499,900
     
2.61
%
SERIES B PREFERRED STOCK
   
1.0000000000
     
38,545,560
     
38,545,560
     
26.52
%
   
38,545,560
     
26.51
%
   
38,545,560
     
18.32
%
 
Total Stock:
                   
145,374,492
     
100.00
%
   
145,374,492
     
100.00
%
   
145,374,492
     
69.09
%
RIGHTS TO ACQUIRE STOCK:   
                                                         
2007 Stock Plan
           
47,632,173
                                                 
Options Outstanding
                                                   
42,721,999
     
20.30
%
Options Available
                                                   
0
     
0.00
%
 
Plan Total:
                                                   
42,721,999
     
20.30
%
2013 Equity Incentive Plan
           
21,985,520
                                                 
Options Outstanding
                                                   
11,103,530
     
5.28
%
Options Available
                                                   
10,880,657
     
5.17
%
 
Plan Total:
                                                   
21,984,187
     
10.45
%
WARRANTS TO PURCHASE:   
                                                         
CLASS A COMMON STOCK
   
1.0000000000
                                             
344,828
     
0.16
%
 
Total Rights:
                                                   
65,051,014
     
30.91
%
 
Total Diluted Shares:
                                                   
210,425,506
     
100.00
%
                                                                 
 
Footnotes:
DUAL CLASS COMMON STOCK: CLASS A ENTITLED TO ONE VOTE PER SHARE: CLASS B ENTITLED TO 15 VOTES PER SHARE.
 
PREFERRED STOCK IS CONVERTIBLE INTO SHARES OF CLASS B COMMON STOCK.
 
NOTE:  This report assumes that all plans involve securities with a 1:1 conversion rate to common stock.


Report Name:            Capitalization.rpt


SCHEDULE 6.01(f)
LITIGATION

1.
Oracle Litigation
 
a.
Oracle USA, Inc., et al. v. Rimini Street, Inc., et al. , Case No. 2:10-cv-00106, United States District Court, District of Nevada, filed January 25, 2010
 
b.
Rimini Street, Inc. v. Oracle International Corp. , Case No. 2:14-cv-01699, United States District Court, District of Nevada, filed October 15, 2014

2.
Insurance Claims related to Oracle Litigation
 
a.
Rimini Street, Inc. v. Hartford Fire Insurance Company, et al. , Case No. A-15-722003-B, Eighth Judicial District Court, Clark County, Nevada, filed July 23, 2015; case removed to United States District Court, District of Nevada on December 4, 2015, Case No. 2:15-cv-02292
 
b.
Rimini Street, Inc. v. Scottsdale Insurance Company, et al. , Case No. A-15-722084-B, Eighth Judicial District Court, Clark County, Nevada, filed July 23, 2015; case removed to United States District Court, District of Nevada on December 11, 2015, Case No. 2:15-cv-02374
 
c.
Rimini Street, Inc. v. Charter Oak Fire Insurance Company, et al. , Case No. A-15-721312-B, Eighth Judicial District Court, Clark County, Nevada, filed July 10, 2015; case removed to United States District Court, District of Nevada on September 14, 2015, Case No. 2:15-cv-01761

SCHEDULE 6.01(i)
ERISA

None.


SCHEDULE 6.01(l)
NATURE OF BUSINESS

Rimini Street, Inc. (“Rimini Street,” “we” or “us”) is an independent provider of subscription-based enterprise software support services and provides enterprise software licensees a choice of maintenance and support programs with differentiated service and pricing compared to the maintenance and support services traditionally provided by enterprise software vendors for their software.




SCHEDULE 6.01(q)
ENVIRONMENTAL MATTERS

None.

SCHEDULE 6.01(r)
INSURANCE


[See attached]
 



Exhibit A - Rimini Street Insurance
Type of Insurance
Insurer
Limits
Commercial General Liability
 
Travelers Property Casualty Co. of America
 
Each Occurrence:
Aggregate:
$1,000,000
$2,000,000
Automobile Liability
Travelers Property Casualty Co. of America
Combined Single Limit
$1,000,000
Umbrella Liability
 
Travelers Property Casualty Co. of America
 
Each Occurrence:
Aggregate:
$5,000,000
$5,000,000
Workers’ Compensation
 
Employers’ Liability
 
 
Travelers Property Casualty Co. of America
 
Travelers Property Casualty Co. of America
 
 
Each Accident:
 
Each Accident:
Each Disease - Each Employee:
Each Disease - Policy Limit:
Per Statute
 
$1,000,000
$1,000,000
$1,000,000
Property
Travelers Property Casualty Co. of America
Values:
Reported Values
Professional Liability
National Union Fire Insurance Co. Pitts., PA
Each Occurrence:
Aggregate:
$5,000,000
$5,000,000
Cyber Liability
National Union Fire Insurance Co. Pitts., PA
Each Occurrence:
Aggregate:
$5,000,000
$5,000,000
International Liability
Travelers Property Casualty Co. of America
Each Occurrence:
Aggregate:
$1,000,000
$2,000,000
International Property
Travelers Property Casualty Co. of America
Values:
Reported Values
International Auto Liability
Travelers Property Casualty Co. of America
Combined Single Limit
$1,000,000
Foreign Voluntary Workers’ Comp
Travelers Property Casualty Co. of America
Each Accident:
Per State or Country Statute
Foreign Employers’ Liability
 
 
Travelers Property Casualty Co. of America
 
 
Each Accident:
Each Disease - Each Employee:
Each Disease - Policy Limit:
$1,000,000
$1,000,000
$1,000,000

RIMINI STREET INC.
November 14, 2014-15 Summary of Insurance

COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
DOMESTIC PACKAGE - PROPERTY
WHAT IT COVERS:            Indemnifies the owner or user of property for its loss due to a covered peril, ex. Fire. Includes Building/Real Property, Contents, Stock, Personal Property, Furniture, Computer Equipment, Machinery, and Personal Property of others per policy terms and conditions.
COVERED LOCATIONS:
1) 113 N Myers St, Suite 300, Charlotte, NC 28202
2) 6601 Koll Center Parkway, Suite 300, Pleasanton, CA 94566
3) 47923 Warm Springs Blvd, Fremont, CA 94539
4) 3993 Howard Hughes Pkwy, Suite 780, Las Vegas, NV 89169
 
Blanket Business Personal Property
Business Income / Extra Expense
Hardware
Software
Total Insured Values
Flood - Annual Aggregate
Flood - Loc 1
Flood - Loc 2, 3 & 4
 
Flood Business Income
 
 
 
 
 
 
$7,631,496 $4,752,500
Included in BPP Included in BPP $12,383,996 $1,000,000 $1,000,000 $1,000,000
 
Included
$1,000
24 Hours
$1,000
$1,000
See below
$100,000
$50,000
24 Hours
(Loc 1. - 48 hours)
11/14/2015 to 11/14/2016
Great Northern Insurance Company
3603-15-88
Total Insured Values:
$12,383,996
$64,232
 
Note: This price included appx. $50k for Earthquake coverage which
was replaced in
favor of the Earthquake DIC policy.
ENDORSEMENTS & EXCLUSIONS
EARTHQUAKE EXCLUSION
PROPERTY DECLARATIONS
PROPERTY SUPPLEMENTARY DECLARATIONS
PROPERTY SUPPLEMENTARY DEC.-BUSINESS INCOME
SUPP DEC-IMPAIRMENT OF COMP SERVICES
BUILDING AND PERSONAL PROPERTY
BUSINESS INCOME WITH EXTRA EXPENSE
ELECTRONIC DATA PROCESSING PROPERTY EXTRA EXPENSE
ACCTS REC, FINE ARTS, MONEY & SEC, VAL PAPERS
IMPAIRMENT OF COMPUTER SERVICES-MALICIOUS PGM
PROPERTY/BI CONDITIONS & DEFINITIONS
ADDITIONAL PERIL-EARTHQUAKE/EQSL
ADD’L PERIL - FLOOD LIMIT/DED OR WAIT.PERIOD ELECTRONIC DATA AND PERIL CHANGES
CAP ON CERT. TERRORISM LOSSES (ALL PREMISES)
DEF-BUSINESS INCOME R&D CONTINUING EXPENSES
ORD OR LAW & EXISTING GREEN STANDARDS LPB
MECH. OR ELECT. SYSTEM OR APPARATUS DEF AMEND
SPECIAL WAITING PERIOD PROVISION ADDED
ADDITIONAL COVG ADDED - PROHIBITION OF ACCESS
 
* additional coverage, limits, sub-limits, endorsements, exclusions, terms & conditions per policy form
 

RIMINI STREET INC.
November 14, 2014-15 Summary of Insurance
 
 
COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
EARTHQUAKE DIC
WHAT IT COVERS:            Indemnifies the owner or user of property for its loss to covered property (i.e. personal property, computer equipment, etc.) due to a covered peril (Earthquake only) per policy terms and conditions.
COVERED LOCATIONS:
1) 113 N Myers St, Suite 300, Charlotte, NC 28202
2) 6601 Koll Center Parkway, Suite 300, Pleasanton, CA 94566
3) 47923 Warm Springs Blvd, Fremont, CA 94539
4) 3993 Howard Hughes Pkwy, Suite 780, Las Vegas, NV 89169
5) 5 Penn Plaza, 19th Floor; New York, NY 10001
 
Earthquake
 
 
 
 
 
 
 
 
$1,000,000
 
5% / $50,000 Minimum
12/08/2015 to 11/14/2016
Insurance Company of the West
XHO 800264800
Locations and Values
$23,625
 
ENDORSEMENTS & EXCLUSIONS
 
* additional coverage, limits, sub-limits, endorsements, exclusions, terms & conditions per policy form
 

RIMINI STREET INC.
November 14, 2014-15 Summary of Insurance

COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
DOMESTIC PACKAGE - GENERAL LIABILITY
WHAT IT COVERS:            Covers premises liability for bodily injury or property damage to third parties arising out of Rimini’s negligent acts, ex. Slip / trip / fall exposure per policy terms and conditions.
Combined Total Aggregate Limit
General Aggregate (applies per location)
Products/Completed Operations Aggregate
Personal & Advertising Injury
Each Occurrence
Damage to Premises Rented to You
Medical Expense
Employee Benefits - Aggregate
Employee Benefits - Each Employee
Employee Benefits - Retroactive Date
$10,000,000 $2,000,000 $2,000,000 $1,000,000 $1,000,000 $1,000,000 $10,000 $3,000,000 $1,000,000 11/14/2012
GL: None
EBL: $1,000
11/14/2015 to
11/14/2016
Great Northern Insurance Company
3603-15-88
Sales
$108,774,000
$6,449
ENDORSEMENTS & EXCLUSIONS
04-01 CONDITION-WAIVER OF TRANS./RIGHTS OF RECOVERY
03-05 CONDITION - PREMIUM AUDIT
10-09 COVERAGE TERRITORY, SCHEDULED
05-07 ADDL INSURED-SCHEDULED PERSON OR ORGANIZATION
04-94 LIABILITY DECLARATIONS
04-01 GENERAL LIABILITY
06-98 EMPLOYEE BENEFITS ERRORS OR OMISSIONS
07-09 PRIMARY NONCONTRIBUTORY-SCHEDULE PERS OR ORG
04-01 EXCLUSION - PRIVACY
01-15 CAP ON CERTIFIED TERRORISM LOSSES
08-04 EXCLUSION-PROFESSIONAL LIABILITY, TOTAL
01-13 EXCL-INFO LAWS INCL UNAUTH OR UNSOLICT COMMUN
06-05 PER LOCATION/PROJECT LMTS W/COMBINED TOTL AGG
09-06 DEDUCTIBLES
05-10 EXCL - INTELLECTUAL PROPERTY LAWS OR RIGHTS
04-12 EXCLUSION - POLLUTION
04-12 EXCLUSION - LOSS OF USE ELECTRONIC DATA
01-14 EXCL-ALCOHOLIC BEVERAGE TYPE BUSINESSES
 
* additional coverage, limits, sub-limits, endorsements, exclusions, terms & conditions per policy form
 

RIMINI STREET INC.
November 14, 2014-15 Summary of Insurance

COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
DOMESTIC PACKAGE - AUTOMOBILE LIABILITY
WHAT IT COVERS:      Covers hired & non-owned auto liability exposure from employees using their personal vehicles on company business and/or employees renting vehicles on company business.  The employees personal automobile insurance is always primary when there are no company owned or leased vehicles provided to employees per policy terms and conditions.
 
Hired & Non-Owned Auto Liability
 
Hired Car Physical Damage
 
Auto Symbols
$1,000,000
 
ACV or Cost to Repair
 
8, 9
$1, 000 comp / $1,000 coll
11/14/2015 to 11/14/2016
Great Northern
Insurance Company
7359-16-08
Estimated Annual Cost of Hire $100,000
& # of Employees: 492
$4,043
ENDORSEMENTS & EXCLUSIONS
PREMIUM STATEMENT - VARIOUS STATES
PREMIUM STATEMENT - VARIOUS STATES
COMPLIANCE W/APPLIC TRADE SANCTION LAWS
SIGNATURE PAGE - GTNO
CALCULATION OF PREMIUM
COMMON POLICY CONDITIONS
NUCLEAR ENERGY LIABILITY EXCLUSION ENDT
NEVADA CHGS-CONCEALMENT, MISREP OR FRAUD
NEVADA CHANGES-CANC & NONRENL
BUSINESS AUTO COVERAGE FORM DECLARATIONS
BUSINESS AUTO COVERAGE FORM DECLARATIONS
BUSINESS AUTO COVERAGE FORM DECLARATIONS
SELECTED EXCLUSIONS, ENDORSEMENTS OR OTHER FORMS
BUSINESS AUTO COVERAGE FORM DECLARATIONS
BUSINESS AUTO COVERAGE FORM DECLARATIONS
BUSINESS AUTO COVERAGE FORM DECLARATIONS
BUSINESS AUTO COVERAGE FORM DECLARATIONS
CHUBB BROAD FORM ENDORSEMENT
REDUCING AUTO LOSSES
ADVISORY NOTICE TO POLICYHOLDERS - OFAC
DIRECT BILL NOTICE TO POLICYHOLDERS
IMPORTANT NOTICE
BUSINESS AUTO COVERAGE FORM
NEVADA CHANGES
EXCL OF TERRORISM INVOLVING NUC/BIO/CHEM
 
* additional coverage, limits, sub-limits, endorsements, exclusions, terms & conditions per policy form
 

RIMINI STREET INC.
November 14, 2014-15 Summary of Insurance

COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
WORKERS COMPENSATION & EMPLOYERS LIABILITY
WHAT IT COVERS:        Covers Rimini’s two key exposures arising out of injuries sustained by employees.  Part One covers Rimini’s statutory liabilities under Workers Compensation laws, and Part Two covers liability arising out of employees’ work-related injuries that do not fall under Workers Compensation statute per policy terms and conditions.
Workers’ Compensation
Employers Liability
Bodily Injury By Accident - Each Accident
Bodily Injury By Disease - Policy Limit
Bodily Injury By Disease - Each Employee
Experience Modification Factor - California
Experience Modification Factor - NCCI States
Total Payroll
Covered States:
AL, AZ, AR, CA, CO, CT, DE, FL, GA, ID, IL, IN, KS, KY, LA, MD, MA, MI, MN, MO, MT, NE, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, SC, TX, UT, VA, WA
Other States Coverage:
All States except ND, OH, WA, WY
 
Statutory
 
$1,000,000
$1,000,000
$1,000,000
1.41
0.74
$53,649,559
Nil
11/14/2015 to 11/14/2016
Chubb Indemnity Insurance Company
7175-37-27
Total Payroll
$53,649,559
$122,712
ENDORSEMENTS & EXCLUSIONS
VARIOUS STATE AMENDATORY ENDORSEMENTS
Catastrophe (other than Certified Acts of Terrorism)
Blanket Waiver of Subrogation
 
* additional coverage, limits, sub-limits, endorsements, exclusions, terms & conditions per policy form
 

RIMINI STREET INC.
November 14, 2014-15 Summary of Insurance

COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
UMBRELLA LIABILITY
WHAT IT COVERS:        Provides excess coverage over the underlying General Liability, Automobile Liability, Employers Liability and Foreign Liability policies per policy terms and conditions.
General Aggregate (Other than Products/Completed Operations)
Products/Completed Operations Aggregate
Coverage A - Bodily Injury and Property Damage
Coverage B - Personal and Advertising Injury
 
Crisis Assistance for Excess and Umbrella
$20,000,000 $20,000,000 $20,000,000 $20,000,000
Lesser of 3% of Ea. Occ. Limit or $300,000
Nil
11/14/2015 to 11/14/2016
Federal Insurance Company
7989-66-21
Underlying: GL, EBL, AL, EL & Foreign GL, AL, EL
$22,500
ENDORSEMENTS & EXCLUSIONS
IMPORTANT NOTICE TO POLICYHOLDERS-TRIA 2002
IMPORTANT NOTICE - OFAC
AOD IMPORTANT POLICYHOLDER NOTICE
DEFENSE WITHIN LIMITS NOTICE
COMMERCIAL EXCESS AND UMBRELLA DECLARATIONS
CHUBB COMMERCIAL EXCESS & UMBRELLA INSURANCE
NEVADA CANCELLATION AND WHEN WE DO NOT RENEW
COMPLIANCE WITH APPLICABLE TRADE SANCTIONS
COVERAGE-CRISIS ASSISTANCE EXCESS AND UMB
COND - CIVIL UNIONS OR DOMESTIC PARTNERSHIPS
POL DEF-PERSONAL INJURY-PRIVACY ELIMINATED
POL EXCL-INFO LAWS INCL UNAUT OR UNSOL COMMUN
POLICY EXCLU-GOODS, PRODS, SVCS OR WORK E&O
COV B EXCL-INTELLECTUAL PROP LAWS OR RIGHTS
POLICY EXCL-LOSS OF USE OF ELECTRONIC DATA
CLAIMS MADE - COV. A EXCESS FOLLOW-FORM
FOREIGN LIABILITY EXCL. BI/PD/AI/PI COV. B
SUPPLEMENTARY PAYMENTS
SCHEDULE OF UNDERLYING INSURANCE
CAP ON CERTIFIED TERRORISM LOSSES
 
* additional coverage, limits, sub-limits, endorsements, exclusions, terms & conditions per policy form
 

RIMINI STREET INC.
November 14, 2014-15 Summary of Insurance

COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
ERRORS & OMISSIONS, CYBER LIABILITY & CANADA ERRORS
OMISSIONS
WHAT IT COVERS:        ERRORS & OMISSIONS:
Covers financial loss of a third party arising from failure of Rimini’s product to perform as intended or expected as well as financial loss of a third party arising from an act, error or omission committed in the course of Rimini’s performance of services for another per policy terms and conditions.
 
CYBER LIABILITY:
Covers matters involving and/or pertaining to: privacy & security liability, crisis management, business interruption, denial of service attack and lost income, cyber extortion and media or web content liability per policy terms and conditions
 
CANADA ERRORS & OMISSIONS:
*See above.  This policy was placed due to a requirement in a contract with the British Columbian Government.
 
.
Specialty Professional Liability
 
Retroactive Date
Continuity Date
$5,000,000
 
11/14/2006
11/14/2013
$25,000
11/14/15 to 11/14/16
AIG
02-580-79-34
Estimated Annual Sales
$58,626
Security & Privacy Liability
Retroactive Date & Continuity Date
$5,000,000
11/14/2013
Regulatory Action Sublimit
Retroactive Date & Continuity Date
$2,000,000
11/14/2013
Event Management Insurance
Retroactive Date (N/A) & Continuity Date
Coinsurance
$1,000,000
11/14/2013
0%
Cyber Extortion
Retroactive Date
Continuity Date
$5,000,000
Not Applicable
11/14/2013
ENDORSEMENTS & EXCLUSIONS
ENDORSEMENT 1 - TECHNOLOGY SERVICES COVERAGE
ENDORSEMENT 2 - PERSONAL PERIL COVERAGE
ENDORSEMENT 3 - CYBEREDGE LOSS PREVENTION SERVICES ENDORSEMENT
ENDORSEMENT 4 - INDEPENDENT CONTRACTOR
ENDORSEMENT 5 - TIE-IN OF LIMITS (ABSOLUTE)
ENDORSEMENT 6 - PASSPORT WORLDWIDE COVERAGE STRUCTURE
ENDORSEMENT 7 - EVENT MANAGEMENT COVERAGE ENHANCEMENT
ENDORSEMENT 8 - CYBER EXTORTION COVERAGE ENHANCEMENT
ENDORSEMENT 9 - SPLIT RETROACTIVE DATE ENDOSREMENT (S&P ONLY) $1M X $1M REG ACTION - 11/14/2015
ENDORSEMENT 10 - NEVADA CANCELLATION-NONRENEWAL
ENDORSEMENT 11 - ECONOMIC SANCTIONS
ENDORSEMENT 12 - FORMS INDEX
 
* additional coverage, limits, sub-limits, endorsements, exclusions, terms & conditions per policy form
 

RIMINI STREET INC.
November 14, 2014-15 Summary of Insurance
 
COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
EXCESS ERRORS & OMISSIONS, CYBER LIABILITY
WHAT IT COVERS:        Provides excess coverage over the underlying General Liability, Automobile Liability, Employers Liability and Foreign Liability policies per policy terms and conditions.
 
Excess Professional Liability
 
$5,000,000 excess of $5,000,000
 
N/A
 
11/14/15 to 11/14/16
 
Axis
 
MCN 790657/01/2015
 
Estimated Annual Sales
#33,700
ENDORSEMENTS & EXCLUSIONS
ENDORSEMENT 1 - ABSOLUTE PENDING & PRIOR LITIGATION
EXCLUSION FOR HIGHER LIMITS
ENDORSEMENT 2 - APPLICATION RELIANCE ENDORSEMENT
ENDORSEMENT 3 - RETROACTIVE DATE ADDED ENDORSEMENT
ENDORSEMENT 4 - NEVADA AMENDATORY ENDORSEMENT
ENDORSEMENT 5 - STATE FRAUD STATEMENTS
 
* additional coverage, limits, sub-limits, endorsements, exclusions, terms & conditions per policy form
 



$500,000 Blanket Limit for:
Accounts Receivable
Electronic Data Processing Property
Fine Arts
Leasehold Interest - Bonus Payment, Prepaid Rent, Sublease Profit, Tenants’ Lease Interest
Leasehold Interest - Undamaged Tenants’ Improvements & Betterments
Non-Owned Detached Trailers
Outdoor Trees, Shrubs, Plants or Lawns
Pair and Set
Personal Property of Employees
Public Safety Service Charges
Research and Development Property
Valuable Papers
ADDITIONAL PROPERTY COVERAGES
Any other location for:
Accounts Receivable $ 75,000
Building Components $ 75,000
EDP Property $ 75,000
Fine Arts $ 75,000
Personal Property $ 75,000
R&D Property $ 75,000
Valuable Papers $ 75,000
Debris Removal
25% of direct damage loss, plus:
Premises Shown in the Declarations $ 500,000
Any Other Location $ 50,000
In Transit $ 50,000
Deferred Payments $ 50,000
Exhibition, Fair or Trade Show:
EDP Property $ 75,000
Fine Arts $ 75,000
Personal Property $ 75,000
Extra Expense $ 250,000
Fungus Clean-Up or Removal $ 50,000
Impairment of Computer Services - Malicious Programming:
Inside Attack $ 100,000
Outside Attack - Per Occurrence $ 10,000
Outside Attack - Annual Aggregate $ 50,000
Installation:
Any Job Site $ 50,000
In Transit $ 50,000
In Transit for:
Accounts Receivable $ 50,000
Building Components $ 50,000
EDP Property $ 50,000
Fine Arts $ 50,000
Personal Property $ 50,000
Valuable Papers $ 50,000

Loss of Master Key $ 25,000
Loss Prevention Expenses $ 25,000
Mobile Communication Property $ 25,000 / Minimum Deductible $3,500
Money & Securities:
On Premises $ 25,000
Off Premises $ 25,000
Pollutant Cleanup or Removal $ 50,000
Processing Water $ 25,000
Preparation of Loss Fees $ 25,000
Newly Acquired Premises Or Newly Acquired Or Constructed Property for 180 days
Building $5,000,000
Personal Property $2,500,000
Personal Property at
Existing Premises $ 100,000
EDP Equipment $2,500,000
Electronic Data $ 250,000
Communication Property $ 250,000
Fine Arts $ 50,000
BUSINESS INCOME - Additional Coverages
Any Other Location $ 50,000
Contractual Penalties $ 25,000
Loss of Utilities (excludes Overhead Trans. Lines) $ 25,000
Exhibition, Fair or Trade Show $ 25,000
Ingress & Egress $ 50,000
Newly Acquired Premises – Business Income $250,000 for 180 days
Pollutant Clean-Up or Removal $ 25,000
Preparation of Loss Fees $ 25,000
Worldwide Dependent Business Premises $250,000

COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
INTERNATIONAL PACKAGE - PROPERTY & GENERAL LIABILITY
WHAT IT COVERS:        Non-admitted policy that covers foreign locations, operations and employee travel overseas per policy terms and conditions..
PROPERTY
 
COVERED LOCATIONS:
 
(1) 9 Hamenofim St. Bldg A 8 Fl, Hertzelia Pituach 462560 Israel
 
(2) Av. Dr. Chucri Zaidan, 940-16 andar-conjunto Sao Paolo Brazil
 
(3) Westhafenplatz 1 60327 Frankfurt, Germany
 
(4) 25 Canada Square, London UK
 
(5) Level 34 AMP Tower 50 Bridge Street, Sydney NSW Australia
 
(6) Level 31-120 Collins Street Melbourne VIC Australia
 
(7) Ananth Info Park, Hi-Tech City, Madhapur, Hyderabad, Telangana India
 
(8) Suite #4W, Neil Tower, Neil Rao Towers, Plot #117,
Road # 3, EPIP Phase-1, Whitefield Bengaluru India
 
(9) Shinjuku Park Tower N30th 3-7-1 Nishi Shinjuku Tokyo
 
(10) Centennial Tower, 3 Teasek Ave, Singapore
 
   
11/15/2015 to 11/15/2016
ACE
PHFD 38243172001
$726,811 Total Insured Values
$750
Hardware
$726,811
$5,000
   
Business Income and Extra Expense
$50,000
$5,000
   
Earthquake
$500,000
$25,000
   
Flood
$500,000
$25,000
   
Windstorm
$500,000
$25,000
   
GENERAL LIABILITY
   
$37,181,594 Estimated Annual Sales
$1,357
General Aggregate
$2,000,000
 
Personal & Advertising Injury
$2,000,000
 
Each Occurrence
$1,000,000
Nil
Damage to Premises Rented to You
$1,000,000
 
Medical Expenses
$25,000
 
ENDORSEMENTS & EXCLUSIONS
PROPERTY
ENDORSEMENT - ELECTRONIC DATA EXCLUSION
ENDORSEMENT - EXLCUSION - TERRORISM - WAR
ENDORSEMENT - SCHEDULE OF SPECIFIC LIMITS
ENDORSEMENT - GOVERNMENT ACTIVITY ENDORSEMENT
ENDORSEMENT - INFLATION GUARD
ENDORSEMENT - UNINTENTIONAL ERROR OR OMISSION
ENDORSEMENT - SUB LIMITS OF LIABILITY - NEIGHBOR’S RECOURSE AND TENANT’S LIBILTY; TAX LIABILITY
GENERAL LIABILITY
ENDORSEMENT - ADDITIONAL INSURED - BY CONTRACT
ENDORSEMENT - GLOBAL PROGRAM SOLUTIONS ENDORSEMENT
ENDORSEMENT - COVERAGE TERRITORY - INCLUDE CANADA
ENDORSEMENT - ADDITIONAL INSURED - VENDORS
ENDORSEMENT - LIMITED ELECTRONIC DATA LOSS COVERAGE
ENDORSEMENT - $1,000,000 EACH OCCURRENCE AND ELECTRONIC DATA LOSS AGGREGATE LIMIT $1,000,000
ENDORSEMENT - CAPPING OF LIMITS ENDORSEMENT $4,000,000
ENDORSEMENT - WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US
ENDORSEMENT - POLLUTION EXCLUSION, HOSTILE FIRE EXCEPTION
ENDORSEMENT - BROADCASTERS, TELECASTERS, PUBLISHERS AND PRINTERS ACTS, ERRORS OR OMISSIONS ENDORSEMENT
EXCLUSION - WAR OR TERRORISM
EXCLUSION - PROFESSIONAL SERVICES
 
* additional coverage, limits, sub-limits, endorsements, exclusions, terms & conditions per policy form
 

COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
INTERNATIONAL PACKAGE - AUTO DIC / EXCESS LIABILITY, FOREIGN VOLUNTARY WORKERS COMPENSATION & EMPLOYERS LIABILITY
WHAT IT COVERS:            Non-admitted policy that covers foreign locations, operations and employee travel overseas per policy terms and conditions.
AUTO
 
Hired & Non-Owned Auto Liability
 
Auto Medical Payments
 
Hired & Non-Owned Physical Damage - Any One Loss
 
Hired & Non-Owned Physical Damage - Any One Period
 
NOTE: local admitted coverage should always be purchase by employees renting vehicles overseas
 
 
$1,000,000
 
$50,000
 
$50,000
Nil
11/15/2015 to 11/15/2016
ACE
PHFD 38243172001
Rental Vehicles
$240
FOREIGN VOLUNTARY WORKERS COMPENSATION
COVERED EMPLOYEES:
- US National employees & Third Country National employees
APPLICABLE WORKERS COMPENSATION LAW
- WC law of covered employee’s state of province of hire or
- WC law of covered employee’s country of permanent residence
EMPLOYERS LIABILITY
COVERED EMPLOYEES:
- Permanent residents of the U.S.
- Permanent residents of countries outside the U.S.
- Local national employees
Bodily Injury by Accident - Each Accident
Bodily Injury by Disease - Each Employee
Bodily Injury by Disease - Aggregate
Transportation Expenses Aggregate
 
 
 
 
 
 
 
 
 
 
 
$1,000,000
$1,000,000
$1,000,000
$1,000,000
Nil
Payroll
$1417
ENDORSEMENTS & EXCLUSIONS
CONTINGENT AUTO LIABILITY
ENDORSEMENT - FELLOW EMPLOYEE COVERAGE
ENDORSEMENT - HIRED AUTO PHYSICAL DAMAGE COVERAGE
EXCLUSION - WAR ON TERRORISM
FOREIGN VOLUNTARY WORKERS COMPENSATION
ENDORSEMENT - EMPLOYER’S RESPONSIBILITY COVERAGE WITH EXECUTIVE ASSISTANCE
ENDORSEMENT - EXCLUSION - LEAD
ENDORSEMENT - WAR COVERAGE ENDORSEMENT
ENDORSEMENT - EMERGENCY POLITICAL REPATRIATION AND EMERGENCY RELOCATION
ENDORSEMENT - ACE EXECUTIVE ASSISTANCE SERVICES TRAVEL APP
ENDORSEMENT - COVERAGE TERRITORY ENDORSEMENT - CANADA
* additional coverage, limits, sub-limits, endorsements, exclusions, terms & conditions per policy form
 

COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
INTERNATIONAL PACKAGE - BUSINESS TRAVEL ACCIDENTAL DEATH AND DISMEMBERMENT & SPECIAL CASE
WHAT IT COVERS:        Non-admitted policy that covers foreign locations, operations and employee travel overseas per policy terms and conditions.
BUSINESS TRAVEL ACCIDENTAL DEATH AND DISMEMBERMENT
 
Employee AD&D Coverage
 
Total Limit
 
Non-Occupational Employee Medical Expense
 
 
 
$50,000
 
$1,500,000
 
$10,000
Nil
11/15/2015 to 11/15/2016
ACE
PHFD 38243172001
24 Trips per Year
Included
KIDNAP AND EXTORTION
Ransom
Transit
Legal Costs
Additional Expenses
 
 
$250,000
$250,000
$250,000
$250,000
Included


COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
UNITED KINGDOM EMPLOYERS LIABILITY
WHAT IT COVERS:        Local admitted policy that covers liability arising out of United Kingdom employees’ work-related injuries that do not fall under.
Limit of Liability
£10,000,000
Nil
11/15/2015 to 11/15/2016
ACE
TBD
$4,596,146
$3,280
ENDORSEMENTS & EXCLUSIONS
 
* additional coverage, limits, sub-limits, endorsements, exclusions, terms & conditions per policy form


COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
CANADA, INDIA, GERMANY, JAPAN
WHAT IT COVERS:        Local admitted policy that covers third party bodily injury and property damage arising out of negligent acts per policy terms and.
Limit of Liability
$1,000,000 USD
Nil
11/15/2015 to 11/15/2016
ACE
TBD
Estimated Sales
$9,547
ENDORSEMENTS & EXCLUSIONS
 
* additional coverage, limits, sub-limits, endorsements, exclusions, terms & conditions per policy form


COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
INDIA PROPERTY
WHAT IT COVERS:            Admitted Property coverage for India Locations
Limit:
 
(1) Hyderabad
 
(2) Bangalore
 
 
(1) $406,000
 
(2) $150,000
See Policy
11/15/2015 to 11/15/2016
ACE
TBD
TIV
$343
ENDORSEMENTS & EXCLUSIONS
 
* additional coverage, limits, sub-limits, endorsements, exclusions, terms & conditions per policy form


COVERAGE
LIMITS
DEDUCTIBLE - RETENTION
POLICY
TERM
CARRIER
POLICY
#
EXPOSURES
PREMIUM
BRAZIL GENERAL LIABILITY
WHAT IT COVERS:            Local admitted policy that covers third party bodily injury and property damage arising out of Rimini Street Brazil Servico de
Limit of Liability
(R$)
$1.000.000
(R$)
$2.500,00
5/4/2015 to 5/4/2016
Chartis Seguros
Brasil S.A.
TBD
Estimated Sales
$3,110
ENDORSEMENTS & EXCLUSIONS
 


SCHEDULE 6.01(u)
INTELLECTUAL PROPERTY

Registered Intellectual Property

Copyrights

None.

Trademarks

Company/Assignee
Country
Trademark
Application or Registration No.
Filing Date
Registration Date
Other Assignees
Rimini Street, Inc.
U.S.
RIMINI STREET
3,760,791
7/29/09
3/16/10
Not applicable
Rimini Street, Inc.
Australia
RIMINI STREET
1330573
11/9/09
11/9/09
Not applicable
Rimini Street, Inc.
Brazil
RIMINI STREET
902117203
11/13/09
1/14/14
Not applicable
Rimini Street, Inc.
Canada
RIMINI STREET
TMA810,123
11/9/09
10/25/11
Not applicable
Rimini Street, Inc.
China
RIMINI STREET
7978488
1/8/10
2/28/11
Not applicable
Rimini Street, Inc.
European Union
RIMINI STREET
008673816
11/9/09
4/29/10
Not applicable
Rimini Street, Inc.
Hong Kong
RIMINI STREET
302136014
1/11/12
6/29/12
Not applicable
Rimini Street, Inc.
Iceland
RIMINI STREET
V0097717
8/12/15
3/31/16
Not applicable
Rimini Street, Inc.
India
RIMINI STREET
1882761
11/10/09
11/10/09
Not applicable
Rimini Street, Inc.
Indonesia
RIMINI STREET
IDM000427693
2/27/12
9/25/14
Not applicable
Rimini Street, Inc.
Israel
RIMINI STREET
244469
2/20/12
9/2/13
Not applicable

 
  Company/Assignee  Country  Trademark  Application or Registration No.  Filing Date   Registration Date   Other Assignees
Rimini Street, Inc.
Japan
RIMINI STREET
5326395
11/9/09
5/28/10
Not applicable
Rimini Street, Inc.
Liechtenstein
RIMINI STREET
17662
10/06/15
4/7/16
Not applicable
Rimini Street, Inc.
Malaysia
RIMINI STREET
2012000680
1/13/12
1/13/12
Not applicable
Rimini Street, Inc.
Mexico
RIMINI STREET
1291157
1/17/12
6/14/12
Not applicable
Rimini Street, Inc.
New Zealand
RIMINI STREET
854969
1/11/12
7/12/12
Not applicable
Rimini Street, Inc.
Norway
RIMINI STREET
20151650
12/11/15
12/11/15
Not applicable
Rimini Street, Inc.
Philippines
RIMINI STREET
4-2012-000604
1/17/12
9/13/12
Not applicable
Rimini Street, Inc.
Qatar
RIMINI STREET
81169
4/23/13
Pending
Not applicable
Rimini Street, Inc.
Russia
RIMINI STREET
2015704323
2/19/15
Pending
Not applicable
Rimini Street, Inc.
Saudi Arabia
RIMINI STREET
143403743
2/2/13
1/22/14
Not applicable
Rimini Street, Inc.
Singapore
RIMINI STREET
T0913021A
11/11/09
7/15/10
Not applicable
Rimini Street, Inc.
South Africa
RIMINI STREET
2015/22058
8/11/15
Pending
Not applicable
Rimini Street, Inc.
South Korea
RIMINI STREET
41-0260498
1/11/12
6/5/13
Not applicable
Rimini Street, Inc.
Taiwan
RIMINI STREET
1545966
1/11/12
11/1/12
Not applicable
Rimini Street, Inc.
Thailand
RIMINI STREET
Bor63320
10/10/12
8/25/14
Not applicable
Rimini Street, Inc.
Turkey
RIMINI STREET
2015/15296
2/23/15
Pending
Not applicable
Rimini Street, Inc.
United Arab Emirates
RIMINI STREET
186358
2/6/13
8/26/14
Not applicable
Rimini Street, Inc.
U.S.
ENGINEERED FOR SUPPORT
86/890,380
1/28/16
Pending
Not applicable


Patents


Assignee

Country

Title
Application or
Patent No.

Filing Date
Issue Date
Other
Assignees
Rimini Street, Inc.
U.S.
Capturing and Reviewing Changes Impacting Enterprise Resource Planning Systems
12/907,436
10/19/10
Pending
N/A
Rimini Street, Inc.
U.S.
Proxy for Modifying HTTP Messages to Comply with Browser
14/260,024
4/23/14
Pending
N/A
Rimini Street, Inc.
U.S.
Automatic Software-Update Framework
14/729,579
6/3/15
Pending
N/A

Material Unregistered Intellectual Property

Company/ Assignee
Country
Trademark
Application or Registration No.
Filing Date
Registration Date
Other Assignees
Rimini Street, Inc.
Not applicable
ServiceFirst Methodology
Unregistered
Not applicable
Not applicable
Not applicable
Rimini Street, Inc.
Not applicable
legislature-to-live
Unregistered
Not applicable
Not applicable
Not applicable

Material Intellectual Property Contract

None.

SCHEDULE 6.01(v)
MATERIAL CONTRACTS

None.

SCHEDULE 7.01(c)(ii)
CERTAIN TAX LIABILITIES


State Sales Tax

Type of Tax
Tax Jurisdiction
Amount
State sales tax
Colorado
$      321,000
State sales tax
New Jersey
1,403,000
State sales tax
New York
779,000
State sales tax
Texas
2,153,000
State sales tax
Washington
130,000
State sales tax
Other
702,000
 
Sales tax liability at 5/31/16
$   5,508,000
          

Rimini Street, Inc. has recognized an accrual under ASC 450 related to the potential state sales tax exposure, including interest and penalties, from the sale of its service offerings in states where it may have nexus.  While most states do not impose sales tax on sales of services, there are a handful of states that do aggressively tax data processing and information services.  Because of the innovative nature of Rimini Street’s service offerings and a number of other variables, any actual amounts payable to taxing authorities have yet to be determined.

SCHEDULE 7.02(a)
EXISTING LIENS

None.


SCHEDULE 7.02(b)
EXISTING INDEBTEDNESS

None.


SCHEDULE 7.02(e)
EXISTING INVESTMENTS

1)
Equity Investments in Subsidiaries existing on the Effective Date

 
Subsidiary
Number of Shares
Total Investment USD 1
Ownership
RSI International Holdings, Inc.
1,000
$1
100% directly owned by Rimini Street, Inc.
RSI International Holdings, LLC
-
$100
100% directly owned by RSI International Holdings, Inc.
Rimini Street Australia Pty Ltd.
100
$92
100% directly owned by Rimini Street, Inc.
Rimini Street GmbH
25,000
$34,108
100% directly owned by Rimini Street, Inc.
Nihon Rimini Street KK
30,000
$294,140
100% directly owned by RSI International Holdings, Inc.
Rimini Street (HK) Limited
1
$1
100% directly owned by RSI International Holdings, Inc.
Rimini Street Limited
100
$158
100% directly owned by RSI International Holdings, Inc
Rimini Street AB
50,000
$6,035
100% directly owned by RSI International Holdings, Inc.

1 These investments are locked into historical exchange rates at the time of investments and are not subject to subsequent changes in currency rates.
 

Rimini Street Israel Ltd.
10,000
$25
100% directly owned by RSI International Holdings, Inc.
Rimini Street Brazil Serviços de Tecnologia Ltda.
3,385,614
$1,301,491
~99% directly owned by RSI Industrial Holdings, Inc. ~1% directly owned by RSI International Holdings, LLC.
Rimini Street India Operations Pvt Ltd.
2,000,000
$48,105
~99% directly owned by RSI Industrial Holdings, Inc. ~1% directly owned by RSI International Holdings, LLC.
Rimini Street Software Technical Services (Beijing) Co., Ltd. 2
TBD
TBD
To be 100% directly owned by Rimini Street (HK) Ltd.
Rimini Street SAS 3
TBD
TBD
To be 100% directly owned by RSI International Holdings, LLC
Rimini Street Korea 4
TBD
TBD
To be 100% directly owned by Rimini Street (HK) Ltd.
Rimini Street Taiwan 5
TBD
TBD
To be 100% directly owned by Rimini Street (HK) Ltd.
Rimini Street Singapore 6
TBD
TBD
To be 100% directly owned by Rimini Street (HK) Ltd.

2 New subsidiary in the process of formation.  Formation to be completed after the Effective Date.
3 New subsidiary in the process of formation.  Formation to be completed after the Effective Date.
4 New subsidiary in the process of formation.  Formation to be completed after the Effective Date.
5 New subsidiary in the process of formation.  Formation to be completed after the Effective Date.
6 New subsidiary in the process of formation.  Formation to be completed after the Effective Date.


2)
Other

Company
Description of Investment Property
Rimini Street, Inc.
100 shares Oracle Corporation
100 shares SAP SE


SCHEDULE 7.02(k)
LIMITATIONS ON DIVIDENDS AND OTHER PAYMENT RESTRICTIONS

None.


SCHEDULE 8.01
CASH MANAGEMENT ACCOUNTS


Company
Bank or Broker
Address
Account No.
Account Type
Rimini Street, Inc.
Bridge Bank N.A.
55 Almaden Blvd., San Jose, CA 95113
 
Operating commercial account
Rimini Street, Inc.
Bridge Bank N.A.
55 Almaden Blvd., San Jose, CA 95113
 
Collateral account
Rimini Street, Inc.
Bridge Bank N.A.
55 Almaden Blvd., San Jose, CA 95113
 
Zero balance account (FSA/HSA)
Rimini Street, Inc.
Bridge Bank N.A.
55 Almaden Blvd., San Jose, CA 95113
 
Zero balance account (Payroll)
Rimini Street, Inc.
Bridge Bank N.A.
55 Almaden Blvd., San Jose, CA 95113
 
Money market account
Rimini Street, Inc.
HSBC Bank USA, N.A.
601 Montgomery St., Suite 1500, San Francisco, CA 94111
 
Analyzed business checking account
Rimini Street, Inc.
Bank of America
1655 Grant Street, 11 th Floor, Concord, CA 94520
 
EURO denominated commercial account
315 Montgomery St. 13 th Floor,
San Francisco, CA 94104 7
 
Collection Account
 
Operating Account
 
Disbursement Account
 
Payroll/FSA/HSA Account
Rimini Street, Inc.
American Express Bank, FSB 8
4315 South 2700 West, Salt Lake City, UT 84184
 
Certificate of deposit

7 Effective June 27, 2016, the address will be 555 California St., 10 th Floor, San Francisco, CA 94104.
8 Account securing corporate credit card program of approximately $100,000.
 

EXHIBIT A
 
FORM OF JOINDER AGREEMENT
 
This JOINDER AGREEMENT, dated as of ________ __, 20__ (this “ Agreement ”), to the Financing Agreement referred to below is entered into by and among [NAME OF ADDITIONAL GUARANTOR], a _____________________ (the “ Additional Guarantor ”), the Borrowers (as defined below), and the Guarantors (as defined below), for the benefit of Cortland Capital Market Services LLC (“Cortland”), as collateral agent for the Lenders (as defined below) (in such capacity, together with any successors and assigns, if any, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with any successors and assigns, if any, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“Colbeck”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns, in such capacity the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”).
 
WHEREAS, Rimini Street, Inc., a Nevada Corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” under the Financing Agreement referred to below, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as defined in the Financing Agreement), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party thereto (each a “ Lender ” and collectively, the “ Lenders ”), and the Agents have entered into that certain Financing Agreement, dated as of June 24, 2016 (such agreement, as amended, restated, supplemented or otherwise modified from time to time, being hereinafter referred to as the “ Financing Agreement ”), pursuant to which the Lenders have agreed to make loans to the Borrowers (each a “ Loan ” and collectively the “ Loans ”) in an aggregate principal amount set forth therein;
 
WHEREAS, pursuant to each Guaranty entered into in connection with the Financing Agreement, the Borrowers’ obligation to repay the Loans and all other Obligations are guaranteed by the Guarantors;
 
WHEREAS, pursuant to Section 7.01(b) of the Financing Agreement, the Additional Guarantor is required to become a Guarantor by, among other things, executing and delivering this Agreement to the Agents and the Lenders; and
 
WHEREAS, the Additional Guarantor has determined that the execution, delivery and performance of this Agreement directly benefit, and are within the corporate purposes and in the best interests of, the Additional Guarantor.
 
NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:
 


SECTION 1.      Definitions . Reference is hereby made to the Financing Agreement for a statement of the terms thereof. All terms used in this Agreement which are defined therein and not otherwise defined herein shall have the same meanings herein as set forth therein.
 
SECTION 2.      Joinder of Additional Guarantor .
 
(a)                Pursuant to Section 7.01(b) of the Financing Agreement, by its execution of this Agreement, the Additional Guarantor hereby (i) confirms that the representations and warranties contained in Article VI of the Financing Agreement and in each other Loan Document, certificate or other writing delivered to any Agent or any Lender pursuant to any Loan Document on or prior to the date hereof are true and correct as to the Additional Guarantor on and as of the effective date of this Agreement as though made on and as of such date, except to the extent that any such representation or warranty expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct on and as of such earlier date), and (ii) agrees that, from and after the effective date of this Agreement, the Additional Guarantor shall be a party to the Financing Agreement and shall be bound, as a Guarantor, by all the provisions thereof and shall comply with and be subject to all of the terms, conditions, covenants, agreements and obligations set forth therein and applicable to the Guarantors, including, without limitation, the guaranty of the Obligations made by the Guarantors jointly and severally, in favor of the Agents and the Lenders pursuant to the Guaranty in Article XI of the Financing Agreement. The Additional Guarantor hereby agrees that from and after the effective date of this Agreement each reference to a “Guarantor” or a “Loan Party” and each reference to the “Guarantors” or the “Loan Parties” in the Financing Agreement and any other Loan Document shall include the Additional Guarantor. The Additional Guarantor acknowledges that it has received a copy of the Financing Agreement and each other Loan Document and that it has read and understands the terms thereof.
 
(b)               Attached hereto are updated copies of each Schedule to the Financing Agreement revised to include all information required to be provided therein with respect to, and only with respect to, the Additional Guarantor. The Schedules to the Financing Agreement shall, without further action, be amended to include the information contained in each such update.
 
SECTION 3.      Effectiveness . This Agreement shall become effective upon its execution by the Collateral Agent and receipt by the Collateral Agent of the following to the extent required under the Financing Agreement or Security Agreement, in each case in form and substance reasonably satisfactory to the Collateral Agent:
 
(i)                 original counterparts to this Agreement, duly executed by the Borrowers, each Guarantor, the Additional Guarantor, together with the Schedules referred to in Section 2(b) hereof;
 
(ii)               a Supplement to the Security Agreement, substantially in the form of Exhibit C to the Security Agreement (the “ Security Agreement Supplement ”), duly executed by the Additional Guarantor, and any instruments of assignment or other documents required to be delivered to the Collateral Agent pursuant to the terms thereof, including any Copyright Security Agreements, Trademark Security Agreements or Patent Security Agreements reasonably requested by the Collateral Agent and Control Agreements to the extent required under Article VIII of the Financing Agreement;
 


(iii)             a Pledge Amendment to the Security Agreement to which the parent company of the Additional Guarantor is a party, in the form of Exhibit A thereto, duly executed by such parent company and providing for all Equity Interests of the Additional Guarantor to be pledged to the Collateral Agent pursuant to the terms thereof;
 
(iv)             (A) certificates, if any, representing (1) 100% of the issued and outstanding Equity Interests of the Additional Guarantor required to be pledged pursuant to the Security Agreement and Financing Agreement and (2) the percentage of the issued and outstanding Equity Interests of each Subsidiary of the Additional Guarantor required to be pledged pursuant to the Security Agreement and Financing Agreement and (B) all original promissory notes of such Additional Guarantor, if any, that are required to be delivered under the Loan Documents, in each case, accompanied by instruments of assignment and transfer in such form as the Collateral Agent may reasonably request;
 
(v)               to the extent required under Section 7.01(b) of the Financing Agreement (A) a Mortgage, in form and substance reasonably satisfactory to the Collateral Agent (the “ Additional Mortgage ”), duly executed by the Additional Guarantor, with respect to the real property owned by the Additional Guarantor, and (B) a Title Insurance Policy covering such real property, together with such other agreements, instruments and documents as the Collateral Agent may reasonably require comparable to the documents required under Section 7.01(m) of the Financing Agreement;
 
(vi)             a supplement to the Intercompany Subordination Agreement, in form and substance reasonably satisfactory to the Collateral Agent, duly executed by the Additional Guarantor;
 
(vii)           appropriate financing statements on Form UCC-1 duly filed in such office or offices as may be necessary or, in the reasonable opinion of the Collateral Agent, desirable to perfect the security interests purported to be created by the Security Agreement Supplement and any Mortgage;
 
(viii)         to the extent required by the Origination Agent pursuant to Section 7.01(b)(i) of the Financing Agreement, a written opinion of counsel to the Loan Parties as to such matters as the Origination Agent may reasonably request; and
 
(ix)             such other agreements, instruments or other documents reasonably requested by the Collateral Agent in order to create, perfect, or establish the first priority (subject to Permitted Liens) of or otherwise protect any Lien purported to be covered by any such Security Agreement Supplement or Additional Mortgage or otherwise to effect the intent that such Subsidiary shall become bound by all of the terms, covenants and agreements contained in the Loan Documents and that all property and assets (other than Excluded Property) of such Subsidiary shall become Collateral for the Obligations, to the extent required by the Loan Documents, free and clear of all Liens other than Permitted Liens.
 


SECTION 4.      Notices, Etc. All notices and other communications provided for hereunder shall be in writing and shall be mailed (by certified mail, postage prepaid and return receipt requested), emailed or delivered by hand, Federal Express or other reputable overnight courier, if to the Additional Guarantor, to it at its address set forth below its signature to this Agreement, and if to any Borrowers, any Guarantor, any Lender or any Agent, to it at its address specified in the Financing Agreement; or as to any such Person at such other address as shall be designated by such Person in a written notice to such other Person complying as to delivery with the terms of this Section 4. All such notices and other communications shall be effective, (a) if mailed (certified mail, postage prepaid and return receipt requested), when received or 3 days after deposited in the mails, whichever occurs first, (b) if emailed, upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), or (c) if delivered by hand, Federal Express or other reputable overnight courier, upon delivery, except that notices to the any Agent pursuant to Article II of the Financing Agreement shall not be effective until received by such Agent.
 
SECTION 5.      General Provisions . (a) Except as supplemented hereby, the Financing Agreement and each other Loan Document shall continue to be, and shall remain, in full force and effect. This Agreement shall not be deemed (i) to be a waiver of, or consent to, or a modification or amendment of, any other term or condition of the Financing Agreement or any other Loan Document or (ii) to prejudice any right or rights which the Agents or the Lenders may now have or may have in the future under or in connection with the Financing Agreement or the other Loan Documents or any of the instruments or agreements referred to therein, as the same may be amended, restated, supplemented or otherwise modified from time to time.
 
(b)               The Additional Guarantor hereby expressly (i) authorizes the Collateral Agent to file appropriate financing statements on or continuation statements, and amendments thereto, (including without limitation, any such financing statements that indicate the Collateral as “all assets” or words of similar import (but excluding Excluded Property)) in such office or offices as may be necessary or, in the reasonable opinion of the Collateral Agent, desirable to perfect the Liens to be created by this Agreement and each of the other Loan Documents and (ii) ratifies such authorization to the extent that the Collateral Agent has filed any such financing or continuation statements or amendments thereto, prior to the date hereof. A photocopy or other reproduction of this Agreement or any financing statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by law.
 
(c)                This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Agreement by telecopier or electronic transmission shall be equally as effective as delivery of an original executed counterpart of this Agreement.
 
(d)               Section headings in this Agreement are included herein for the convenience of reference only and shall not constitute a part of this Agreement for any other purpose.
 


(e)                THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK.
 
(f)                In addition to and without the limitation of any of the foregoing, this Agreement shall be deemed to be a Loan Document and shall otherwise be subject to all of the terms and conditions contained in Sections 12.04, 12.10 and 12.11 of the Financing Agreement, mutatis mutandis .
 
(g)               This Agreement, together with the Financing Agreement and the other Loan Documents, reflects the entire understanding of the parties with respect to the transactions contemplated hereby and thereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof.
 
[signature page follows]
 


IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.
 
 
ADDITIONAL GUARANTOR :
     
 
[_________________________]
     
 
By:
 
   
Name:
   
Title:
     
 
Address:
     
   
   
   
     
 
PARENT :
     
 
RIMINI STREET, INC.
     
 
By:
 
   
Name:
   
Title:
     
 
GUARANTORS :
     
 
[_________________________]
     
 
By:
 
   
Name:
   
Title:
 

EXHIBIT B
 
FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT
 
This ASSIGNMENT AND ACCEPTANCE AGREEMENT (“ Assignment Agreement ”) is entered into as of _____ __, 20__ between ___________ (“ Assignor ”) and ______________ (“ Assignee ”). Reference is made to the agreement described in Item 2 of Annex I annexed hereto (as amended, restated, modified or otherwise supplemented from time to time, the “ Financing Agreement ”). Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Financing Agreement.
 
1.                  In accordance with the terms and conditions of Section 12.07 of the Financing Agreement, the Assignor hereby irrevocably sells, transfers, conveys and assigns, without recourse, representation or warranty (expect as expressly set forth herein) to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, that interest in and to the Assignor’s rights and obligations under the Loan Documents as of the date hereof with respect to the Obligations owing to the Assignor, and the Assignor’s portion of the Commitments and Loans as specified on Annex I .
 
2.                  The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the interest being assigned by it hereunder and that such interest is free and clear of any adverse claim and (ii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment Agreement and to consummate the transactions contemplated hereby; (b) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with the Loan Documents or the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any other instrument or document furnished pursuant thereto; and (c) makes no representation or warranty and assumes no responsibility with respect to the financial condition of any Loan Party or the performance or observance by any Loan Party of any of its obligations under the Loan Documents or any other instrument or document furnished pursuant thereto.
 
3.                  The Assignee (a) confirms that it has received copies of the Financing Agreement and the other Loan Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment Agreement; (b) agrees that it will, independently and without reliance upon the Administrative Agent, the Collateral Agent, the Origination Agent, the Assignor, or any other Lender, based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents; (c) confirms that it is eligible as an assignee under the terms of the Financing Agreement; (d) appoints and authorizes each of the Administrative Agent and the Collateral Agent to take such action on its behalf and to exercise such powers under the Loan Documents as are delegated to the Administrative Agent or the Collateral Agent (as the case may be) by the terms thereof, together with such powers as are reasonably incidental thereto; (e) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender; and (f) attaches the forms prescribed by the Internal Revenue Service of the United States certifying as to the Assignee’s status for purposes of determining exemption from United States withholding taxes with respect to all payments to be made to the Assignee under the Financing Agreement or such other documents as are necessary to indicate that all such payments are subject to such rates at a rate reduced by an applicable tax treaty.
 


4.                  Following the execution of this Assignment Agreement by the Assignor and the Assignee, it will be delivered by the Assignor to the Origination Agent, for its consent, and to the Administrative Agent, for its acceptance The effective date of this Assignment Agreement (the “ Settlement Date ”) shall be the latest of (a) the date of the execution hereof by the Assignor and the Assignee, (b) the date the Origination Agent has consented, and the Administrative Agent has accepted this Assignment Agreement, (c) the date of receipt by the Origination Agent of a processing and recordation fee in the amount of $5,000, 1 (d) the settlement date specified on Annex I , (e) the receipt by Assignor of the Purchase Price specified in Annex I , and (f) the date the Administrative Agent has received and verified all information requested on such assignee pursuant to the “know your customer” regulations and requirements of the USA PATRIOT ACT.
 
5.                  As of the Settlement Date (a) the Assignee shall be a party to the Financing Agreement and, to the extent of the interest assigned pursuant to this Assignment Agreement, have the rights and obligations of a Lender thereunder and under the other Loan Documents, and (b) the Assignor shall, to the extent of the interest assigned pursuant to this Assignment Agreement, relinquish its rights and be released from its obligations under the Financing Agreement and the other Loan Documents.
 
6.                  Upon recording by the Administrative Agent, from and after the Settlement Date, the Administrative Agent shall make all payments under the Financing Agreement and the other Loan Documents in respect of the interest assigned hereby (including, without limitation, all payments of principal, interest and commitment fees (if applicable) with respect thereto) to the Assignee. The Assignor and the Assignee shall make all appropriate adjustments in payments under the Financing Agreement and the other Loan Documents for periods prior to the Settlement Date directly between themselves on the Settlement Date.
 
7.                  THIS ASSIGNMENT AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
 
8.            EACH PARTY HERETO HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BASED UPON OR ARISING OUT OF THIS ASSIGNMENT AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, AND AGREES THAT ANY SUCH ACTION, PROCEEDING OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.
 
9.            This Assignment Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Assignment Agreement by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart.
 
[Remainder of page left intentionally blank]

1 The payment of such fee shall not be required in connection with an assignment by a Lender to a Lender, an Affiliate of such Lender or a Related Fund of such Lender.

 


IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered by their respective officers thereunto duly authorized, as of the date first above written.
 
 
[ASSIGNOR] 
 
   
 
By:
 
   
Name:
   
Title:
   
Date:
 
   
 
NOTICE ADDRESS FOR ASSIGNOR 
 
   
 
[INSERT ADDRESS] 
 
Telephone No.: 
 
Telecopy No.: 
 
   
 
[ASSIGNEE] 
 
   
 
By:
 
   
Name:
   
Title:
   
Date:
 
   
 
NOTICE ADDRESS FOR ASSIGNEE 
 
   
 
[INSERT ADDRESS] 
 
Telephone No.: 
 
Telecopy No.: 
 
Accepted and Agreed to this ___ day
 of _____, 20__:
 
Cortland Capital Market Services LLC
 
By:_________________________
             Its:_______________________

 


ACCEPTED AND CONSENTED TO this ___ day
of ________, 20__
 
CB Agent Services LLC ,
as Origination Agent
 
By:
   
 
Name:
 
 
Title:
 
 


ANNEX FOR ASSIGNMENT AND ACCEPTANCE

ANNEX I
 
1.
Borrowers: Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “ Borrower ” under the Financing Agreement, each a “ Borrower ” and collectively, the “ Borrowers ”).
 
     
2.
Name and Date of Financing Agreement: Financing Agreement, dated as of June 24, 2016 (as amended, supplemented or otherwise modified from time to time), by and among the Borrowers, each Person listed as a “Guarantor” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as thereinafter defined), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party thereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC (“ Cortland ”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“Colbeck”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”).
 
     
3.
Date of Assignment Agreement:
   
 
     
4.
Amount of Term Loan Assigned:
   
 
     
5.
Amount of Delayed Draw Term Loan Commitment Assigned:
   
 
     
6.
Purchase Price:
   
 
     
7.
Settlement Date:
   
 
     
8.
Wire Instructions and Notice Information:
   
 
Assignee:
 
Assignor:
 
 
 
 
 
 
 
 
 
     
 
 
 
Attn:             ______________________________________
 
Attn:             ______________________________________            
Fax No.:        ______________________________________
 
Fax No.:        ______________________________________             
 
 
 
 
 
 
Bank Name:
 
Bank Name:
ABA Number:  
 
ABA Number:  
Account Name:  
 
Account Name:  
Account Number:  
 
Account Number:  
Sub-Account Name:  
 
Sub-Account Name:  
Sub-Account Number:  
 
Sub-Account Number:  
Reference:  
 
Reference:  
Attn:  
 
Attn:  


EXHIBIT C
 
FORM OF NOTICE OF BORROWING

RIMINI STREET, INC.
3993 Howard Hughes Parkway, Suite 500
Las Vegas, Nevada 89169

                                                                                                    Date:  ________ __, 20__
Cortland Capital Market Services LLC, as Administrative Agent
under the below-referenced Financing Agreement
225 W. Washington Street, Suite 2100
Chicago, Illinois 60606

Ladies and Gentlemen:
 
The undersigned, Rimini Street, Inc., a Nevada Corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” under the Financing Agreement referred to below, each a “ Borrower ” and collectively, the “ Borrowers ”), refers to the Financing Agreement, dated as of June 24, 2016, by and among the Borrowers, each subsidiary of the Parent listed as a “Guarantor” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as defined in the Financing Agreement), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party thereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC (“ Cortland ”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“Colbeck”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”), and hereby gives you notice pursuant to Section 2.02 of the Financing Agreement that the undersigned hereby requests a Loan under the Financing Agreement (the “ Proposed Loan ”), and in that connection sets forth below the information relating to such Proposed Loan as required by Section 2.02 of the Financing Agreement. All capitalized terms used herein but not defined herein have the same meanings herein as set forth in the Financing Agreement.
 
(i)
The aggregate principal amount of the Proposed Loan is $__________. 1
 
(ii)
The borrowing date of the Proposed Loan is __________ ___, 20__. 2
 
(iii)
The proceeds of the Proposed Loan should be made available to the undersigned by wire transferring such proceeds in accordance with the payment instructions set forth on Annex I hereto.


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1 Each Proposed Loan made after the Effective Date shall be made in a minimum amount of $[            ] and shall be in an integral multiple of $[               ].
2   This date must be a Business Day.


The Parent hereby certifies that (i) the representations and warranties of the Loan Parties contained in Article VI of the Financing Agreement and in each other Loan Document, certificate or other writing delivered to any Secured Party pursuant to any Loan Document on or prior to the date of the Proposed Loan [are true and correct on and as of such date as though made on and as of such date, except to the extent that any such representation or warranty expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct on and as of such earlier date)] 3 [are true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to materiality or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such date as though made on and as of such date, except to the extent that any such representation or warranty expressly relates solely to an earlier date (in which case such representation or warranty shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that already are qualified or modified as to materiality or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date)] 4 , (ii) at the time of and after giving effect to the making of the Proposed Loan and the application of the proceeds thereof, no Default or Event of Default has occurred or is continuing or will result from the making of the Proposed Loan, and (iii) the conditions set forth in [Section 5.01][Section 5.02] [Section 5.03] of the Financing Agreement have been satisfied as of the date of the Proposed Loan.
 
 
Very truly yours,
 
 
 
 
RIMINI STREET, INC.
 
 
 
 
By:
 
 
 
 
 
By:
 
 
 
Name:
 
 
Title:
 
 
 


3 For Effective Date
4 For any borrowing after the Effective Date
 
 
Notice of Borrowing

ANNEX I
 
Payment Instructions
 
Name of Bank:

ABA No:
Account Name:
Attention:
Account No:
Ref:


EXHIBIT D

FORM OF PERFECTION CERTIFICATE

Reference is made to the proposed financing facility (the “ Financing   Facility ”) among Rimini Street, Inc. (the “ Parent ”) and certain of its subsidiaries (together with the Parent, each a “ Company ” and, collectively, the “ Companies ”), CB Agent Services LLC (the “ Agent ”), and each of the other agents and lenders from time to time party thereto (together with the Agent, collectively the “ Lenders ”).

The undersigned does hereby certify to the Lenders as follows:

1.            Persons Schedule I sets forth for each Company (a) the full and correct legal name and state of incorporation or organization of such Company (in each case as it appears on its certificate or articles, as the case may be, of incorporation or organization or its certificate of formation), (b) the federal employer identification number for such Company, (c) the organizational identification number for such Company, and (d) each state in which such Company is qualified to do business and states whether such Company is in good standing under the laws of each such state.

2.            Other Names Schedule II sets forth for each Company (a) all names (including trade names and similar appellations) presently used by such Company or any of its divisions or other business units and (b) all names (including former legal names and trade names or similar appellations) used by such Company or any of its divisions or other business units during the past five years.

3.            Locations Schedule III sets forth for each Company (a) the location (including county and zip code) of its chief executive office, (b) the location (including county and zip code) of its chief place of business, (c) each location (including county and zip code) where its books and records are maintained, (d) each location (including county and zip code) where material inventory and/or equipment are maintained, and (e) each location (including county and zip code) previously maintained by such Company during the past four months (and in the case of its chief executive office, during the past five years) for any of the purposes listed above.

4.            Outside Locations of Collateral Schedule IV sets forth for each Company (a) the name and location (including county and zip code) of each person or entity (other than a Company) that has or may have possession of any inventory, equipment or other assets of such Company, (b) the name and location (including county and zip code) of each person or entity (other than a Company) that has previously had possession of any inventory, equipment or other assets of such Company during the past four months.

5.            Cash/Accounts Schedule V sets forth for each Company all cash, money, currency and all deposit accounts, including demand, time, savings, passbooks or similar accounts maintained with banks, savings and loan associations, or other financial institutions of such Company.


6.            Investment Property Schedule VI sets forth for each Company all investment property (as defined in the Uniform Commercial Code as in effect in the State of New York), including, without limitation, all securities and security accounts (as each such term is defined in the Uniform Commercial Code as in effect in the State of New York), whether or not evidenced by certificates or instruments, and all of the certificates and instruments, if any, representing or evidencing such investment property and all security therefor of such Company.

7.            Securities; Instruments; Chattel Paper Schedule VII sets forth for each Company all securities (whether debt or equity and whether or not evidenced by a certificate), instruments and chattel paper held by or on behalf of, and all letters of credit issued in favor of, such Company.

8.            Intellectual Property Schedule VIII sets forth for each Company (a) all trademarks, service marks, trade names, business names, logos or other business identifiers of like nature, all applications or recordings in respect thereof, and all licenses or contracts in respect of the foregoing, (b) all letters patent, design patents and utility patents, all applications or recordings in respect thereof, and all licenses or contracts in respect of the foregoing, and (c) all copyrights, copyright registrations, all applications or recordings in respect thereof, and all licenses (other than licenses to customers in the ordinary course of business) or contracts in respect of the foregoing. Please indicate whether any Company derives revenues from copyrights that are not registered with the U.S. Copyright Office.

9.            Real Property Schedule IX sets forth for each Company (a) all real property owned or leased by such Company, (b) if such property is leased, the landlord and the term of the lease, and (c) if such property is held in fee, the holder of any lien on such real property.

10.            Vehicles Schedule X sets forth for each Company all of the motor vehicles owned by such Company, identifying (a) the unit and VIN numbers, (b) the state where such vehicle is titled, (c) any existing lienholders and (d) the make, model and year of such vehicle.

11.            Other Titled Collateral Schedule XI set forth for each Company all aircraft and boats and all other inventory, equipment and other goods of the Company which are subject to any certificate of title or other registration statute of the United States, any state or any other jurisdiction, and provides a description of such goods and indicates the registration system and jurisdiction of such goods.

12.            Commercial Tort Claims Schedule XII sets forth for each Company all commercial tort claims (as defined in the Uniform Commercial Code as in effect in the State of New York) of such Company.


13.            Acknowledgment .  The undersigned acknowledges that this Perfection Certificate is provided in connection with the Financing Facility and that the Lenders will rely upon the information contained herein.  The undersigned further acknowledges and agrees that the information contained herein shall be deemed to be a representation and warranty under the Financing Facility, and that any material misstatements or material omissions contained herein may constitute a default under the Financing Facility.

[signature page follows]


IN WITNESS WHEREOF, the undersigned has executed this Perfection Certificate this ___ day of________________.
 
 
RIMINI STREET, INC.
 
 
 
 
By:
 
 
 
Name:
 
 
Title:


SCHEDULE I

Persons


Company Name
State of Organization
Federal Employer I.D.
Organizational I.D.
States where Qualified to do Business
         



SCHEDULE II

Other Names


Company
Present Names
Former Names
     



SCHEDULE III

Locations


Company*
Chief Executive Office
Chief Place of Business
Books and Records
Inventory, Equipment, Etc.
         
 

* Indicate whether any of the locations listed above is a previously maintained location.


SCHEDULE IV

Outside Locations of Collateral


Company*
Outside Locations of Collateral
   
 

* Indicate whether any of the locations listed above is a previously maintained location.


SCHEDULE V

Cash/Accounts


Company
Bank or Broker
Address
Account No.
Account Type
         



SCHEDULE VI

Investment Property


Company
Bank or Broker
Address
Account No.
Account Type
         



Company
Description of Investment Property
   



SCHEDULE VII

Securities; Instruments; Chattel Paper


Company
Debtor or Issuer
Amount
Security Agreements
       



SCHEDULE VIII

Intellectual Property

Trademarks
 
Company
Country
Trademark
Application or Registration No.
Filing Date
Registration Date
Assignees
             


Patents
 
Company
Country
Title
Application or Patent No.
Filing Date
Issue Date
Assignees
             


Copyrights
 
Company
Country
Title
Type of Work
Application or Registration No.
Issue Date
Assignees
             



SCHEDULE IX

Real Property


Company
Location
Leasehold or Fee
Lessor or Mortgagee
Lease or Mortgage Term
Other Liens
           



SCHEDULE X

Motor Vehicles


Company
Unit Number
VIN Number
Title
State
Existing Lienholder
Make/Model/Year
           



SCHEDULE XI

Other Titled Collateral


SCHEDULE XII

Commercial Tort Claims


Company
Description of Commercial Tort Claim
   


 

EXHIBIT E

FORM OF NOTE

$[_________________]
[Date]
 
FOR VALUE RECEIVED, Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” under the Financing Agreement (as hereinafter defined), each a “ Borrower ” and collectively, the “ Borrowers ”), hereby promise to pay to the order of [_____________________________] (the “ Specified Lender ”) the principal amount of [_____________________________] ($[           ]) (or such lesser amount as shall equal the aggregate unpaid principal amount of the Term Loan held by the Specified Lender under the Financing Agreement referred to below) pursuant to the terms of the Financing Agreement, dated as of June 24, 2016, by and among the Borrowers, each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as defined in the Financing Agreement), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party thereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC (“ Cortland ”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”), and CB Agent Services LLC, a Delaware limited liability company (“ Colbeck ”), as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”) (including all annexes, exhibits and schedules thereto, as from time to time amended, restated, supplemented or otherwise modified, the “ Financing Agreement ”).  This Note is one of the promissory notes referred to in the Financing Agreement.  Terms capitalized but not defined herein shall have the meanings given to them respectively in the Financing Agreement.  Reference is made to the Financing Agreement for a statement of the terms and conditions under which the Term Loan evidenced hereby has been made, is secured, and may be prepaid or accelerated.

Until maturity (whether by acceleration or otherwise), interest shall accrue and be payable on the outstanding principal balance hereof at the annual rates of interest set forth in the Financing Agreement.  In accordance with the provisions of Section 2.04(b) of the Financing Agreement, upon the occurrence and during the continuance of an Event of Default, at the election of the Origination Agent, interest shall accrue at the Post-Default Rate.  Outstanding principal and accrued and unpaid interest shall be payable in accordance with the terms and conditions of the Financing Agreement.

All amounts payable by the Borrowers hereunder shall be paid in accordance with the Financing Agreement in immediately available funds (except as otherwise expressly provided in the Loan Documents).

Each Borrower hereby waives the requirements of demand, presentment, protest, notice of protest and dishonor and all other demands or notices of any kind in connection with the delivery, acceptance, performance, default, dishonor or enforcement of this Note.

THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK.

[signature page follows]


IN WITNESS WHEREOF, and intending to be legally bound hereby, each Borrower has caused this Note to be executed by its duly authorized officer as of the day and year first above written.

 
RIMINI STREET, INC.
     
 
By:
 
  Name:
  Title:


 
EXHIBIT F

FORM OF COMPLIANCE CERTIFICATE

RIMINI STREET, INC.

CB Agent Services LLC, as
Origination Agent
888 Seventh Avenue, 29 th Floor
New York, New York 10106
Attention:  Tony Hokayem

Re:            Compliance Certificate dated: _________, ____

Ladies and Gentlemen:

Reference is made to that certain Financing Agreement, dated as of June 24, 2016 (as the same may be amended, restated, supplemented or otherwise modified from time to time, including any replacement agreement therefor, the “ Financing Agreement ”), by and among Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” thereunder, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as defined in the Financing Agreement), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party thereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC, (“ Cortland ), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“ Colbeck ”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”). Capitalized terms used in this Compliance Certificate have the meanings set forth in the Financing Agreement unless specifically defined herein.

Pursuant to Section 7.01(a)(iv) of the Financing Agreement, the undersigned Authorized Officer of the Parent hereby certifies, on the date hereof, in his/her capacity as an Authorized Officer of the Parent and not in any individual capacity, that:

1.            I have reviewed the provisions of the Financing Agreement and the other Loan Documents and have made, or caused to be made under my supervision, a review of the condition and operations of the Parent and its Subsidiaries during the fiscal period covered by the financial statements delivered pursuant to Section 7.01(a)[(i)][(ii)][(iii)] of the Financing Agreement for the [fiscal month] [fiscal quarter] [Fiscal Year] ended as of the above date, with a view to determining whether the Parent and its Subsidiaries were in compliance with all of the provisions of the Financing Agreement and the other Loan Documents during such [fiscal month] [fiscal quarter] [Fiscal Year].


2.            Such review has not disclosed the occurrence and continuance during such fiscal period, and I have no knowledge of the occurrence and continuance during such fiscal period, of a Default or Event of Default, except as listed on Schedule 1 hereto, describing the nature and period of existence thereof and the action the Parent and its Subsidiaries have taken, are taking, or propose to take with respect thereto.

3.            [Each Loan Party is in compliance with the applicable covenants contained in Sections 7.02(g), 7.02(t) and 7.03 of the Financing Agreement as demonstrated on Schedule 2 hereto, in form and detail reasonably satisfactory to the Origination Agent.] 1

4.            [Set forth on Schedule 3 hereto is a management discussion and analysis of the financial condition and results of operations of the Parent and its Subsidiaries on a consolidated basis for the portion of the Fiscal Year then elapsed and discussing the reasons for any significant variations from the Projections for such period and the figures for the corresponding period in the previous Fiscal Year, in form and detail reasonably satisfactory to the Origination Agent.] 2

5.            [Set forth on Schedule 4 hereto, to extent the Fiscal Year of the Parent and its Subsidiaries has been modified either (x) during the prior four-quarter period (in the case of quarterly financial statements delivered under clause (ii) of Section 7.01(a)) or (y) after the most recent annual financial statements delivered under clause (iii) of Section 7.01(a), is a reconciliation for such change in Fiscal Year, in form and detail reasonably satisfactory to the Origination Agent.] 3

6.            [Set forth on Schedule [4][5] hereto, is a summary detailing the contracted revenue on a month to month basis (both in the aggregate and on a client by client basis), including deferred revenue, invoicing, cash receipts, newly added service level agreements, in form and substance reasonably satisfactory to the Origination Agent.] 4

7.            [Set forth on Schedule [5][6] hereto, is a summary of all material insurance coverage maintained as of the date thereof by any Loan Party and all material insurance coverage planned to be maintained by any Loan Party, [together with such other related documents and information as the Origination Agent has reasonably required].] 5
 

1 To be included in certificates accompanying the delivery of the quarterly and annual financial statements of the Parent and its Subsidiaries required to be delivered by clauses (ii) and (iii) of Section 7.01(a).
2 To be included in certificates accompanying the delivery of the quarterly and annual financial statements of the Parent and its Subsidiaries required by clauses (ii) and (iii) of Section 7.01(a).
3 Reconciliations to be included to extent the Fiscal Year of the Parent and its Subsidiaries has been modified either (x) during the prior four-quarter period (in the case of quarterly financial statements delivered under clause (ii) of Section 7.01(a)) or (y) after the most recent annual financial statements delivered under clause (iii) of Section 7.01(a).
4 To be included in certificates accompanying the delivery of the monthly financial statements of the Parent and its Subsidiaries required to be delivered by clause (i) of Section 7.01(a).
5 To be included in certificates accompanying the delivery of the annual financial statements of the Parent and its Subsidiaries required to be delivered by clause (iii) of Section 7.01(a).
 


8.            [There have been no changes to the information contained in the Perfection Certificate delivered on the Effective Date or the date of the most recently updated Perfection Certificate delivered pursuant to Section 7.01(a)(iv) of the Financing Agreement [ , except as contained in the updated Perfection Certificate attached hereto as Schedule [6][7]] .] 6
 

6 To be included in certificates accompanying the delivery of the annual financial statements of the Parent and its Subsidiaries required to be delivered by clause (iii) of Section 7.01(a).
 


IN WITNESS WHEREOF, this Compliance Certificate is executed by the undersigned, solely as an officer of the Parent and not in any individual capacity, as of the date hereof.

 
RIMINI STREET, INC.
 
 
 
 
By:
 
 
 
Name:
 
 
Title:
 
 
 

 

SCHEDULE 1

Default or Event of Default

[See Attached]


SCHEDULE 2

Financial Covenants


SCHEDULE 3

Discussion of Financial Condition and Results of Operations

[See Attached]


SCHEDULE [4]

Reconciliation


SCHEDULE [4][5]

Contracted Revenue


SCHEDULE [5][6]

Material Insurance Coverage

[See Attached]


SCHEDULE [6][7]

Updated Perfection Certificate

[See Attached]
 
 

EXHIBIT G

FORM OF INTERCOMPANY SUBORDINATION AGREEMENT

This INTERCOMPANY SUBORDINATION AGREEMENT (this “ Agreement ”), dated as of June 24, 2016, is made by the Obligors (as defined below) in favor of Cortland Capital Market Services LLC, as collateral agent for the Lenders referred to below (in such capacity, together with its successors and assigns, if any, the “ Collateral Agent ”).

W I T N E S S E T H :

WHEREAS, Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” under the Financing Agreement referred to below, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as therein after defined), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party thereto (each a “ Lender ” and collectively, the “ Lenders ”),  the Collateral Agent, Cortland Capital Market Services LLC, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services, LLC, a Delaware limited liability company (“ Colbeck ”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”) are parties to that certain Financing Agreement, dated as of June 24, 2016 (such agreement, as amended, restated, supplemented or otherwise modified from time to time, including any replacement agreement therefor, being hereinafter referred to as the “ Financing Agreement ”), pursuant to which the Lenders have agreed to make loans and other financial accommodations (the “ Loans ”) to the Borrowers;

WHEREAS, in order to induce the Agents and the Lenders to enter into the Financing Agreement, each of the Guarantors has executed and delivered a Guaranty in favor of the Collateral Agent, for the benefit of the Secured Parties, with respect to certain of the obligations owing by the Borrowers to the Secured Parties pursuant to the Financing Agreement;

WHEREAS, each Obligor (as defined below) has made or may make certain loans or advances from time to time to one or more other Obligors; and

WHEREAS, each Obligor has agreed to the subordination of such indebtedness of each other Obligor to such Obligor, upon the terms and subject to the conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the premises and the agreements herein and in order to induce the Lenders to make and maintain the Loans pursuant to the Financing Agreement, the Obligors hereby jointly and severally agree with the Agents and the Lenders as follows:


SECTION 1.            Definitions; Interpretation.

(a)            Terms Defined in Financing Agreement .  All capitalized terms used in this Agreement and not otherwise defined herein shall have the meanings assigned to them in the Financing Agreement.

(b)            Certain Defined Terms .  As used in this Agreement, the following terms shall have the following meanings:

Additional Obligor ” has the meaning set forth in Section 15 hereto.

Administrative Agent ” has the meaning set forth in the preamble hereto .

Agent ” and “ Agents ” have the meanings set forth in the preamble hereto .

Borrowers ” has the meaning set forth in the preamble hereto .

Collateral Agent ” has the meaning set forth in the preamble hereto .

Financing Agreement ” has the meaning set forth in the recitals hereto .

Guarantors ” has the meaning set forth in the recitals hereto.

Insolvency Event ” has the meaning set forth in Section 3 hereto.

Lenders ” has the meaning set forth in the recitals hereto.

Obligors ” means, collectively, the Borrowers, the Guarantors, any Subsidiaries of the Borrowers or the Guarantors signatories hereto and any Additional Obligors.

Senior Debt ” means, collectively, the Obligations (as defined in the Financing Agreement ) and the Guaranteed Obligations (as defined in the Financing Agreement and each Guaranty).

Subordinated Debt ” means, with respect to each Obligor, all indebtedness, liabilities, and other obligations of any other Obligor owing to such Obligor in respect of any and all loans or advances made by such Obligor to such other Obligor whether now existing or hereafter arising, and whether due or to become due, absolute or contingent, liquidated or unliquidated, determined or undetermined, including all fees and all other amounts payable by any other Obligor to such Obligor under or in connection with any documents or instruments related thereto.

Subordinated Debt Payment ” means any payment or distribution by or on behalf of the Obligors, directly or indirectly, of assets of the Obligors of any kind or character, whether in cash, property, or securities, including on account of the purchase, redemption, or other acquisition of Subordinated Debt, as a result of any collection, sale, or other disposition of collateral, or by setoff, exchange, or in any other manner, for or on account of the Subordinated Debt.

2

(c)            Interpretation .  The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have the same meaning and effect as the word “shall”.  Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “herein”, “hereof”, “hereby” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (iv) all references herein to Articles, Sections, Subsections, Clauses, Exhibits, Schedules and Annexes shall be construed to refer to Articles of, Sections of, Subsections of, Clauses of, Exhibits to, Schedules to and Annexes to, this Agreement, and (v) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.  References to statutes or regulations are to be construed as including all statutory and regulatory provisions consolidating, amending, or replacing the statute or regulation referred to.  The captions and headings contained herein are for convenience of reference only and shall not affect the construction of this Agreement.

SECTION 2.            Subordination to Payment of Senior Debt .  As to each Obligor, until the Termination Date, all payments on account of the Subordinated Debt shall be subject, subordinate, and junior, in right of payment and exercise of remedies, to the extent and in the manner set forth herein, to the payment in full in cash (except as otherwise expressly set forth in the Loan Documents) of the Senior Debt (other than Contingent Indemnity Obligations).

SECTION 3.            Subordination Upon Any Distribution of Assets of the Obligors .  As to each Obligor, during the existence of an Event of Default, in the event of any payment or distribution of assets of any other Obligor of any kind or character, whether in cash, property, or securities, upon the dissolution, winding up, or total or partial liquidation or reorganization, readjustment, arrangement, or similar proceeding relating to such other Obligor or its property, whether voluntary or involuntary, or in an Insolvency Proceeding, or upon any other marshaling or composition of the assets and liabilities of such other Obligor, or otherwise (such events, collectively, “ Insolvency Events ”):  (a) all amounts owing on account of the Senior Debt shall first be paid in full in cash (except as otherwise expressly set forth in the Loan Documents) (other than Contingent Indemnity Obligations) before any Subordinated Debt Payment is made; and (b) to the extent permitted by applicable law, any Subordinated Debt Payment to which such Obligor would be entitled except for the provisions hereof, shall be paid or delivered by the trustee in bankruptcy, receiver, assignee for the benefit of creditors, or other liquidating agent making such payment or distribution directly to the Collateral Agent (or its designee) for the benefit of the Secured Parties for application to the payment of the Senior Debt in accordance with clause (a), after giving effect to any concurrent payment or distribution or provision therefor to the Secured Parties in respect of such Senior Debt.

3

SECTION 4.            Payments on Subordinated Debt .

(a)            Permitted Payments .  To the extent expressly permitted by the Financing Agreement and so long as no Event of Default shall have occurred and be continuing, each Obligor may make, and each other Obligor shall be entitled to accept and receive, payments and prepayments (as permitted pursuant to the terms of the Financing Agreement) on account of the Subordinated Debt in the ordinary course of business.

(b)            No Payment Upon Senior Debt Defaults .  So long as any Event of Default has occurred and is continuing no Obligor shall make, and no other Obligor shall accept or receive, any Subordinated Debt Payment.

SECTION 5.            Subordination of Remedies .  Until the Termination Date, no Obligor shall, without the prior written consent of the Collateral Agent:

(a)            accelerate, make demand, or otherwise make due and payable prior to the original due date thereof any Subordinated Debt or bring suit or institute any other actions or proceedings to enforce its rights or interests in respect of the obligations of any other Obligor owing to such Obligor;

(b)            exercise any rights under or with respect to guaranties of the Subordinated Debt, if any;

(c)            exercise any rights to set-offs and counterclaims in respect of any indebtedness, liabilities, or obligations of such Obligor to any other Obligor against any of the Subordinated Debt; or

(d)            commence, or cause to be commenced, or join with any creditor other than the Secured Parties in commencing, any Insolvency Proceeding or receivership proceeding against any other Obligor.

SECTION 6.            Payment Over to Collateral Agent .  In the event that, notwithstanding the provisions of Sections 3, 4, and 5, any Subordinated Debt Payments shall be received in contravention of such Sections 3, 4, and 5 by any Obligor before the Termination Date, such Subordinated Debt Payments shall be held in trust for the benefit of the Secured Parties and shall be paid over or delivered to the Collateral Agent (or its designee) for the benefit of the Secured Parties for application to the payment in full in cash (except as otherwise expressly provided in the Loan Documents) of all Senior Debt remaining unpaid (other than Contingent Indemnity Obligations) to the extent necessary to give effect to such Sections 3, 4, and 5, after giving effect to any concurrent payments or distributions to the Secured Parties in respect of the Senior Debt.

SECTION 7.            Authorization to Collateral Agent .  If, while any Subordinated Debt is outstanding and until the Termination Date, any Insolvency Event shall occur and be continuing with respect to any Obligor or its property:  (a) the Collateral Agent hereby is irrevocably authorized and empowered (in the name of each Obligor or otherwise), but shall have no obligation, to demand, sue for, collect, and receive every payment or distribution in respect of the Subordinated Debt and give acquittance therefor and to file claims and proofs of claim and take such other action (including voting the Subordinated Debt) as it may deem necessary or advisable for the exercise or enforcement of any of the rights or interests of the Secured Parties; and (b) each Obligor shall promptly take such action as the Collateral Agent reasonably may request (i) to collect the Subordinated Debt for the account of the Secured Parties and to file appropriate claims or proofs of claim in respect of the Subordinated Debt, (ii) to execute and deliver to the Collateral Agent such powers of attorney, assignments, and other instruments as it may request to enable it to enforce any and all claims with respect to the Subordinated Debt, and (iii) to collect and receive any and all Subordinated Debt Payments.

4

SECTION 8.            Certain Agreements of Each Obligor .

(a)            No Benefits .  Each Obligor understands that there may be various agreements between any Secured Party and any other Obligor evidencing and governing the Senior Debt, and each Obligor acknowledges and agrees that such agreements are not intended to confer any benefits on such Obligor and that no Secured Party shall have any obligation to such Obligor or any other Person to exercise any rights, enforce any remedies, or take any actions which may be available to it under such agreements.

(b)            No Interference .  Each Obligor acknowledges that each other Obligor has granted to the Collateral Agent, for the benefit of the Secured Parties, a Lien on the Collateral of such Obligor and agrees not to interfere with or in any manner oppose a disposition of any such Collateral by the Secured Parties in accordance with applicable law and the terms of the applicable Loan Documents.

(c)            Reliance by the Secured Parties .  Each Obligor acknowledges and agrees that the Secured Parties will have relied upon and will continue to rely upon the subordination provisions provided for herein and the other provisions hereof in entering into the Loan Documents and making the financial accommodations thereunder.

(d)            Waivers .  Except as provided under the Financing Agreement, each Obligor hereby waives (to the extent permitted by applicable law) any and all notice of the incurrence of the Senior Debt or any part thereof and any right to require marshaling of assets.

(e)            Obligations of Each Obligor Not Affected .  Each Obligor hereby agrees that, subject to the terms and conditions of the Loan Documents, at any time and from time to time, without notice to or the consent of such Obligor (except as otherwise expressly required by the terms of any applicable Loan Document), without incurring responsibility to such Obligor, and without impairing or releasing the subordination provided for herein or otherwise impairing the rights of the Secured Parties hereunder: (i) the time for any other Obligor’s performance of or compliance with any of its agreements contained in the Loan Documents may be extended or such performance or compliance may be waived by the Secured Parties; (ii) the agreements of any other Obligor with respect to the Loan Documents may from time to time be modified by such other Obligor and the Secured Parties for the purpose of adding any requirements thereto or changing in any manner the rights and obligations of such other Obligor or the Secured Parties thereunder; (iii) the manner, place, or terms for payment of Senior Debt or any portion thereof may be altered or the terms for payment extended, or the Senior Debt may be renewed in whole or in part; (iv) the maturity of the Senior Debt may be accelerated in accordance with the terms of any present or future agreement by any other Obligor and the Secured Parties; (v) any Collateral may be sold, exchanged, released, or substituted and any Lien in favor of the Collateral Agent may be terminated, subordinated, or fail to be perfected or become unperfected; (vi) any Person liable in any manner for Senior Debt may be discharged, released, or substituted; and (vii) all other rights against any other Obligor, any other Person, or with respect to any Collateral may be exercised (or the Secured Parties may waive or refrain from exercising such rights).

5

(f)            Rights of the Agent and the Lenders Not to Be Impaired .  No right of any Secured Party to enforce the subordination provided for herein or to exercise its other rights hereunder shall at any time in any way be prejudiced or impaired by any act or failure to act by any Obligor, any Secured Party hereunder or under or in connection with any other Loan Document or by any noncompliance by any Obligor with the terms and provisions and covenants herein or in any other Loan Document, regardless of any knowledge thereof any Secured Party may have or otherwise be charged with.

(g)            Financial Condition of the Obligors .  Except as provided under the Financing Agreement or any other Loan Document, no Obligor shall have any right to require any Secured Party to obtain or disclose any information with respect to:  (i) the financial condition or character of any other Obligor or the ability of any other Obligor to pay and perform the Senior Debt; (ii) the Senior Debt, subject, however to such Obligor’s right to make inquiry of the Administrative Agent to ascertain the amount of the Senior Debt at any reasonable time; (iii) the Collateral or other security for any or all of the Senior Debt; (iv) the existence or nonexistence of any guarantees of, or any other subordination agreements with respect to, all or any part of the Senior Debt; (v) any action or inaction on the part of any Secured Party or any other Person; or (vi) any other matter, fact, or occurrence whatsoever.

SECTION 9.            Subrogation .

(a)            Subrogation .  Until the Termination Date, no Obligor shall have, nor shall it directly or indirectly exercise, any rights that such Obligor may acquire by way of subrogation under this Agreement, by any payment or distribution to the Secured Parties hereunder or otherwise.  Upon the Termination Date, each Obligor shall be subrogated to the rights of the Secured Parties to receive payments or distributions applicable to the Senior Debt until the Subordinated Debt shall be paid in full.  For the purposes of the foregoing subrogation, no payments or distributions to any Secured Party of any cash, property, or securities to which any Obligor would be entitled except for the provisions of Section 3, 4, or 5 shall, as among such Obligor, its creditors (other than the Secured Parties), and any other Obligor, be deemed to be a payment by any other Obligor to or on account of the Senior Debt.

(b)            Payments Over to the Obligors .  If any payment or distribution to which any Obligor would otherwise have been entitled but for the provisions of Section 3, 4, or 5 shall have been applied pursuant to the provisions of Section 3, 4, or 5 to the payment of all amounts payable under the Senior Debt, such Obligor shall be entitled to receive from the Secured Parties any payments or distributions received by the Secured Parties in excess of the amount sufficient to pay in full in cash (except as otherwise expressly provided in the Loan Documents) all amounts payable under or in respect of the Senior Debt (other than Contingent Indemnity Obligations).  If any such excess payment is made to the Secured Parties, the Secured Parties shall promptly remit such excess payment to such Obligor and until so remitted shall hold such excess payment for the benefit of such Obligor.

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SECTION 10.            Continuing Agreement; Reinstatement .

(a)            Continuing Agreement .  This Agreement is a continuing agreement of subordination and shall continue in effect and be binding upon each Obligor until the Termination Date.  The subordinations, agreements, and priorities set forth herein shall remain in full force and effect until the Termination Date regardless of whether any party hereto in the future seeks to rescind, amend, terminate, or reform, by litigation or otherwise, its respective agreements with any other Obligor.

(b)            Reinstatement .  This Agreement shall continue to be effective or shall be reinstated, as the case may be, if, for any reason, any payment of the Senior Debt by or on behalf of any other Obligor shall be rescinded or must otherwise be restored by any Secured Party, under Section 12.14 of the Financing Agreement.

SECTION 11.            Transfer of Subordinated Debt .  Except as expressly permitted under the Financing Agreement or any other Loan Document, no Obligor may assign or transfer its rights and obligations in respect of the Subordinated Debt without the prior written consent of the Collateral Agent, and any such assignment without the Collateral Agent’s prior written consent shall be null and void unless such transfer is otherwise permitted by the Financing Agreement.  Any such transferee or assignee, as a condition to acquiring an interest in the Subordinated Debt shall agree to be bound hereby in a manner reasonably satisfactory to the Collateral Agent.

SECTION 12.            Obligations of the Obligors Not Affected .  The provisions of this Agreement are intended solely for the purpose of defining the relative rights of each Obligor against the other Obligors, on the one hand, and of the Secured Parties against the Obligors, on the other hand.  Nothing contained in this Agreement shall (i) impair, as between each Obligor and the other Obligors, the obligation of each other Obligor to pay its respective obligations with respect to the Subordinated Debt as and when the same shall become due and payable, or (ii) otherwise affect the relative rights of each Obligor against the other Obligors, on the one hand, and of the creditors (other than the Secured Parties) of the other Obligors against the other Obligors, on the other hand.

SECTION 13.            Endorsement of Obligor Documents; Further Assurances and Additional Acts .

(a)            Endorsement of Obligor Documents .  At the request of the Collateral Agent, all documents and instruments evidencing any of the Subordinated Debt, if any, shall be endorsed with a legend noting that such documents and instruments are subject to this Agreement, and each Obligor shall promptly deliver to the Collateral Agent evidence of the same.

(b)            Further Assurances and Additional Acts .  Each Obligor shall execute, acknowledge, deliver, file, notarize, and register at its own expense all such further agreements, instruments, certificates, financing statements, documents, and assurances, and perform such acts as the Collateral Agent shall deem reasonably necessary or appropriate to effectuate the purposes of this Agreement, and promptly provide the Collateral Agent with evidence of the foregoing in form and substance reasonably satisfactory to the Collateral Agent.

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SECTION 14.            Miscellaneous .

(a)            Notices .  All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing and shall be mailed, emailed, or delivered in accordance with the notice provisions contained in the Financing Agreement.

(b)            No Waiver; Cumulative Remedies .  No failure on the part of any Secured Party to exercise, and no delay in exercising, any right, remedy, power or privilege hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, remedy, power or privilege hereunder or under any other Loan Document preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights and remedies under this Agreement are cumulative and not exclusive of any rights, remedies, powers and privileges that may otherwise be available to the Secured Parties.

(c)            Survival .  All covenants, agreements, representations and warranties made in this Agreement shall, except to the extent otherwise provided herein, survive the execution and delivery of this Agreement, and shall continue in full force and effect until the Termination Date.

(d)            Benefits of Agreement .  This Agreement is entered into for the sole protection and benefit of the parties hereto and their respective successors and assigns, and no other Person shall be a direct or indirect beneficiary of, or shall have any direct or indirect cause of action or claim in connection with, this Agreement.

(e)            Binding Effect .  This Agreement shall be binding upon, inure to the benefit of and be enforceable by each Obligor and each Secured Party, except that no Obligor shall have the right to assign its rights hereunder or any interest herein without the prior written consent of the Collateral Agent in accordance with Section 11.

(f)            GOVERNING LAW .  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK.

(g)            Entire Agreement .  This Agreement constitutes the entire agreement of each of the Obligors with respect to the matters set forth herein and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof.

(h)            Amendments and Waivers .  No amendment or waiver of any provision of this Agreement and no consent to any departure by any Obligor therefrom shall in any event be effective unless the same shall be in writing and signed by each of the Obligors and the Collateral Agent.  Any such amendment, waiver, or consent shall be effective only in the specific instance and for the specific purpose for which given.

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(i)            Conflicts .  In case of any conflict or inconsistency between any terms of this Agreement, on the one hand, and any documents or instruments in respect of the Subordinated Debt, on the other hand, then the terms of this Agreement shall control.

(j)            Severability .  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

(k)            Interpretation .  This Agreement is the result of negotiations between, and has been reviewed by the respective counsel to, the Obligors, the Agents and the Lenders and is the product of all parties hereto.  Accordingly, this Agreement shall not be construed against the Agents and the Lenders merely because of their involvement in the preparation hereof.

(l)            Counterparts; Telecopy Execution .  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.  Delivery of an executed counterpart of this Agreement by telecopy or electronic mail shall be equally effective as delivery of an original executed counterpart of this Agreement.  Any party delivering an executed counterpart of this Agreement by telecopy or electronic mail also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement.

(m)            Termination of Agreement .  Upon the Termination Date, this Agreement shall terminate and the Collateral Agent on behalf of the Secured Parties shall, at the sole cost and expense of the Obligors, promptly execute and deliver to each Obligor such documents and instruments as shall be reasonably requested by such Obligor to evidence such termination.

(n)            Additional Provisions .  In addition to and without limitation of any of the foregoing, this Agreement shall be deemed to be a Loan Document and shall otherwise be subject to all of terms and conditions contained in Sections 12.04, 12.10 and 12.11 of the Financing Agreement, mutatis mutandi .

SECTION 15.            Additional Obligors .  The initial Obligors hereunder shall be such of the Obligors as are signatories hereto as of the date hereof.  From time to time subsequent to the date hereof, additional Obligors, as required by the Financing Agreement or the other Loan Documents, may become parties hereto, as additional Obligors (each, an “ Additional Obligor ”), by executing and delivering a counterpart of this Agreement.  Upon delivery of any such counterpart to the Collateral Agent, notice of which is hereby waived by each other Obligor, each such Additional Obligor shall be an Obligor hereunder and shall be as fully a party hereto as if such Additional Obligor were an original signatory hereof.  Each Obligor expressly agrees that its obligations arising hereunder shall not be affected or diminished by the addition or release of any other Obligor hereunder.  This Agreement shall be fully effective as to any Obligor that is or becomes a party hereto regardless of whether any other Person becomes or fails to become or ceases to be an Obligor hereunder.

[Signature Page Follows]

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, as of the date first above written.

 
OBLIGORS :
     
 
RIMINI STREET, INC.
     
 
By:
 
     
 
By:
 
   
Name:
   
Title:
 
[INTERCOMPANY SUBORDINATION AGREEMENT]
 

  COLLATERAL AGENT :
   
 
CORTLAND CAPITAL MARKET SERVICES LLC
     
 
By:
 
   
Name:
   
Title:

 
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Exhibit 10.27

FIRST AMENDMENT
 
TO FINANCING AGREEMENT
 
FIRST AMENDMENT, dated as of August 9th, 2016 (this “ Amendment ”), to the Financing Agreement, dated as of June 24, 2016 (as amended, supplemented, replaced or otherwise modified from time to time, the “ Financing Agreement ”), by and among Rimini Street, Inc., a Nevada corporation (the “ Parent ; and together with each other Person that executes a joinder agreement and becomes a “Borrower” thereunder, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as thereinafter defined), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party hereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC (“ Cortland ”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“ Colbeck ”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”).
 
WHEREAS, the Borrowers, the Guarantors, the Agents and the Required Lenders wish to amend certain terms and provisions of the Financing Agreement as hereinafter set forth.
 
NOW THEREFORE, in consideration of the premises and other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:
 
1.            Definitions .  All terms used herein that are defined in the Financing Agreement and not otherwise defined herein shall have the meanings assigned to them in the Financing Agreement.
 
2.            Amendments .
 
(a)            New Definitions .  Section 1.01 of the Financing Agreement is hereby amended by adding the following definitions in appropriate alphabetical order:
 
““ First Amendment ” means the First Amendment to Financing Agreement, dated as of August 9th, 2016, by and among the Agents, the Lenders party thereto and the Loan Parties.”
 
““ First Amendment Effective Date ” means the date on which each of the conditions precedent set forth in Section  4 of the First Amendment have been either satisfied or waived.”

 
(b)            Existing Definitions .
 
(i)            The definition of “Excluded Account” in Section 1.01 of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
““ Excluded Account ” means (a) any deposit account specifically and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of any Loan Party’s employees, (b) any non-U.S. deposit account and (c) any cash collateral account that solely has on deposit cash permitted to be pledged pursuant to clause (r) of the definition of Permitted Liens.”
 
(ii)            The definition of “Permitted Indebtedness” in Section 1.01 of the Financing Agreement is hereby amended by (i deleting the “.” at the end of clause (1) therein and inserting “;” at the end therein and (ii amending and restating clause (m) therein and adding the following new clause (n) therein to read as follows:
 
“(m) Indebtedness of the Loan Parties and their Domestic Subsidiaries with respect to letters of credit in an aggregate principal amount not to exceed $500,000 at any time outstanding; and
 
(n)            other unsecured Indebtedness of the Loan Parties and their Subsidiaries in an aggregate principal amount not to exceed $500,000 at any time outstanding.”
 
(iii)            The definition of “Permitted Liens” in Section 1.01 of the Financing Agreement is hereby amended by (i deleting the “and” at the end of clause (q) therein and (ii) amending and restating clause (r) therein and adding the following new clause (s) therein to read as follows:
 
“(r)            Liens on cash collateral on deposit in an Excluded Account of the type described in clause (c) of the definition of Excluded Account in an aggregate amount not to exceed $500,000 at any time outstanding solely securing Indebtedness permitted by clause (m) of the definition of Permitted Indebtedness; and
 
(s)            other Liens which do not secure Indebtedness for borrowed money or letters of credit and as to which the aggregate amount of the obligations secured thereby does not exceed $250,000.”
 
(c)            Section 7.01(a) (Reporting Requirements) .  Section 7.01(a)(iii) of the Financing Agreement is hereby amended by replacing the reference therein to “September 1, 2016” with “September 30, 2016”.
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3.            Representations and Warranties .  Each Loan Party hereby represents and warrants to the Agents and the Lenders as follows:
 
(a)            Representations and Warranties; No Event of Default .  The representations and warranties herein, in Article VI of the Financing Agreement and in each other Loan Document, certificate or other writing delivered by or on behalf of the Loan Parties to any Agent or any Lender pursuant to the Financing Agreement or any other Loan Document on or prior to the First Amendment Effective Date are true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the First Amendment Effective Date as though made on and as of such date (unless such representations or warranties are stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date), and no Default or Event of Default has occurred and is continuing as of the First Amendment Effective Date or would result from this Amendment becoming effective in accordance with its terms.
 
(b)            Organization, Good Standing, Etc .  Each Loan Party (i is a corporation, limited liability company or limited partnership duly organized, validly existing and in good standing under the laws of the state or jurisdiction of its organization, (ii has all requisite corporate (or equivalent) power and authority to conduct its business as now conducted and as presently contemplated and to execute this Amendment and deliver each Loan Document to which it is a party, and to consummate the transactions contemplated hereby and by the Financing Agreement, and (iii is duly qualified to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary, except (solely for the purposes of this subclause (iii)) where the failure to be so qualified and in good standing could reasonably be expected to have a Material Adverse Effect.
 
(c)            Authorization, Etc .  The execution, delivery and performance of this Amendment by the Loan Parties, and the performance of the Financing Agreement, (i) have been duly authorized by all necessary corporate (or equivalent) action, (ii) do not and will not contravene (A) any of its Governing Documents, (B) any applicable material Requirement of Law to the extent such contravention would adversely affect the material operations of the Borrowers or (C) any Contractual Obligation binding on or otherwise affecting it or any of its properties, (iii) do not and will not result in or require the creation of any Lien (other than pursuant to any Loan Document or any other Permitted Lien) upon or with respect to any of its properties, and (iv) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to its operations or any of its properties, except for any violation referred to in clause (ii)(C) or clause (iv) above which could not reasonably be expected to have a Material Adverse Effect.
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(d)            Governmental Approvals .  No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required in connection with the due execution, delivery and performance by any Loan Party of this Amendment or any other Loan Document to which it is or will be a party other than filings and recordings with respect to Collateral that were made, or otherwise delivered to the Collateral Agent for filing or recordation, on the Effective Date.
 
4.            Conditions to Effectiveness .  This Amendment shall become effective only upon satisfaction in full, in a manner reasonably satisfactory to the Origination Agent, of the following conditions precedent (the first date upon which all such conditions shall have been satisfied or waived being herein called the “ First Amendment Effective Date ”) :
 
(a)            The Agents shall have received this Amendment, duly executed by the Loan Parties, each Agent and the Required Lenders.
 
(b)            The representations and warranties contained in this Amendment and in Article VI of the Financing Agreement and in each other Loan Document shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the First Amendment Effective Date as though made on and as of such date (unless such representations or warranties are stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date).
 
(c)            No Default or Event of Default shall have occurred and be continuing on the First Amendment Effective Date or result from this Amendment becoming effective in accordance with its terms.
 
(d)            The Borrowers shall have paid on or before the First Amendment Effective Date all fees, costs and expenses then payable pursuant to Section 2.06 and Section 12.04, including, without limitation, the reasonable fees and expenses of Schulte Roth & Zabel LLP, counsel to the Origination Agent.
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5.            Continued Effectiveness of the Financing Agreement and Other Loan Documents .  Each Loan Party hereby (i) acknowledges and consents to this Amendment, (ii) confirms and agrees that the Financing Agreement and each other Loan Document to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that on and after the First Amendment Effective Date all references in any such Loan Document to “the Financing Agreement”, the “Agreement”, “thereto”, “thereof’, “thereunder” or words of like import referring to the Financing Agreement shall mean the Financing Agreement as amended or modified by this Amendment, and (iii) confirms and agrees that to the extent that any such Loan Document purports to assign or pledge to the Collateral Agent for the benefit of the Agents and the Lenders, or to grant to the Collateral Agent for the benefit of the Agents and the Lenders a security interest in or Lien on, any Collateral as security for the Obligations of the Loan Parties from time to time existing in respect of the Financing Agreement (as amended hereby) and the other Loan Documents, such pledge, assignment and/or grant of the security interest or Lien is hereby ratified and confirmed in all respects This Amendment does not and shall not affect any of the obligations of the Loan Parties, other than as expressly provided herein, including, without limitation, the Loan Parties’ obligations to repay the Loans in accordance with the terms of Financing Agreement, or the obligations of the Loan Parties under any Loan Document to which they are a party, all of which obligations shall remain in full force and effect Except as expressly provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agents or any Lender under the Financing Agreement or any other Loan Document, nor constitute a waiver of any provision of the Financing Agreement or any other Loan Document.
 
6.            Release .  Each Loan Party hereby acknowledges and agrees that, on the First Amendment Effective Date: (a) neither it nor any of its Affiliates has any claim or cause of action arising on or prior to the First Amendment Effective Date against any Agent or any Lender (or any of their respective Affiliates, officers, directors, employees, attorneys, consultants or agents) under the Financing Agreement and the other Loan Documents and (b) each Agent and each Lender has, prior to the First Amendment Effective Date, properly performed and satisfied in a timely manner all of its obligations prior to the First Amendment Effective Date to such Loan Party and its Affiliates under the Financing Agreement and the other Loan Documents.  Notwithstanding the foregoing, the Agents and the Lenders wish (and each Loan Party agrees) to eliminate, to the fullest extent permitted under applicable law, any possibility that any past conditions, acts, omissions, events or circumstances which occurred prior to the First Amendment Effective Date would impair or otherwise adversely affect any of the Agents’ and the Lenders’ rights, interests, security and/or remedies under the Financing Agreement and the other Loan Documents.  Accordingly, for and in consideration of the agreements contained in this Amendment and other good and valuable consideration, each Loan Party (for itself and its Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the “ Releasors ”) does hereby fully, finally, unconditionally and irrevocably release and forever discharge each Agent, each Lender and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (collectively, the “ Released Parties ”)   from any and all debts, claims, obligations, damages, costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, arising on or prior to the First Amendment Effective Date, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Releasor has heretofore had or now or hereafter can, shall or may have against any Released Party by reason of any act, omission or thing whatsoever done or omitted to be done on or prior to the First Amendment Effective Date and arising out of, connected with or related in any way to this Amendment, the Financing Agreement or any other Loan Document, or any act, event or transaction on or prior to the First Amendment Effective Date related or attendant thereto, or the agreements of any Agent or any Lender contained therein, or the possession, use, operation or control of any of the assets of each Loan Party, or the making of any Loans, or the management of such Loans or the Collateral, in each case, on or prior to the First Amendment Effective Date.
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As to each and every claim released hereunder, each Loan Party hereby represents that it has received the advice of legal counsel with regard to the releases contained herein, and having been so advised, specifically waives the benefit of the provisions of Section  1542 of the Civil Code of California which provides as follows:
 
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”
 
As to each and every claim released hereunder, each Loan Party also waives the benefit of each other similar provision of applicable federal or state law (including without limitation the laws of the state of New York), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto.
 
Each Loan Party acknowledges that it may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or causes of action arising on or prior to the First Amendment Effective Date and agrees that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts Each Loan Party understands, acknowledges and agrees that to the extent permitted under applicable law, the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.
 
Each Loan Party, for itself and on behalf of its successors, assigns, and officers, directors, employees and agents, and any Person acting for or on behalf of, or claiming through it, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of the Released Parties above that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) the Released Parties on the basis of any claim released, remised and discharged by such Person pursuant to this Section  6 Each Loan Party further agrees that it shall not dispute the validity or enforceability of the Financing Agreement or any of the other Loan Documents or any of its obligations thereunder, or the validity, priority, enforceability or the extent of Collateral Agent’s Lien on any item of Collateral under the Financing Agreement or the other Loan Documents If any Loan Party or any of its respective successors, assigns, or officers, directors, employees and agents, or any Person acting for or on behalf of, or claiming through it violate the foregoing covenant, such Person, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as the Released Parties may sustain as a result of such violation, all reasonable attorneys’ fees and costs incurred by the Released Parties as a result of such violation.
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7.            Miscellaneous .
 
(a)            This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Amendment by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart of this Amendment.
 
(b)            Section and paragraph headings herein are included for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.
 
(c)            This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.
 
(d)            Each Loan Party hereby acknowledges and agrees that this Amendment constitutes a “Loan Document” under the Financing Agreement.  Accordingly, it shall be an Event of Default under the Financing Agreement if any representation or warranty made by a Loan Party under or in connection with this Amendment shall have been untrue, false or misleading in any material respect when made.
 
(e)            Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.
 
(f)            The Borrowers will pay on demand all reasonable fees, costs and expenses of the Agents and the Lenders party to this Amendment in connection with the preparation, execution and delivery of this Amendment or otherwise payable under the Financing Agreement, including, without limitation, reasonable fees, disbursements and other charges of counsel to the Agents and the Lenders party to this Amendment.
 
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as of the date set forth on the first page hereof.

 
BORROWERS :
   
 
RIMINI STREET, INC.
   
 
By:
/s/ Thomas Shay
   
Name: Thomas Shay
   
Title: SVP and CIO


 
COLLATERAL AGENT AND ADMINISTRATIVE AGENT :
     
 
CORTLAND CAPITAL MARKET SERVICES LLC
   
 
By:
/s/ Matthew Trybula
   
Name: Matthew Trybula
   
Title: Associate Counsel


 
ORIGINATION AGENT :
     
 
CB AGENT SERVICES LLC
   
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Partner & COO


 
LENDER :
   
 
COLBECK CAPITAL MANAGEMENT, LLC
   
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Partner


 
LENDER :
   
 
COLBECK STRATEGIC LENDING MASTER, L.P.
   
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Authorized Signatory


 
LENDER :
   
 
CB PARTICIPATIONS SPV, LLC
   
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Partner & COO


 
LENDER :
   
 
CION Investment Corp.
   
 
By:
/s/ Harry Giovani
   
Name: Harry Giovani
   
Title: Senior Managing Director and Chief Credit Officer


 
LENDER : Alpine Associates, A Limited Partnership
   
 
By:
/s/ Gary Moorman
   
Name: Gary Moorman
   
Title: Senior Analyst


 
LENDER : Alpine Heritage, L.P.
   
 
By:
/s/ Gary Moorman
   
Name: Gary Moorman
   
Title: Senior Analyst


 
LENDER : Alpine Heritage II, L.P.
   
 
By:
/s/ Gary Moorman
   
Name: Gary Moorman
   
Title: Senior Analyst


 
LENDER : Alpine Heritage Offshore Fund Ltd.
   
 
By:
/s/ Gary Moorman
   
Name: Gary Moorman
   
Title: Senior Analyst



Exhibit 10.28

SECOND AMENDMENT
TO FINANCING AGREEMENT

SECOND AMENDMENT, dated as of October 28, 2016 (this “ Amendment ”), to the Financing Agreement, dated as of June 24, 2016 (as amended, supplemented, replaced or otherwise modified from time to time, the “ Financing Agreement ”), by and among Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” thereunder, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as thereinafter defined), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party hereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC (“ Cortland ”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“ Colbeck ”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”).

WHEREAS, the Borrowers, the Guarantors, the Agents and the Required Lenders wish to amend certain terms and provisions of the Financing Agreement as hereinafter set forth.

NOW THEREFORE, in consideration of the premises and other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:

1.            Definitions .  All terms used herein that are defined in the Financing Agreement and not otherwise defined herein shall have the meanings assigned to them in the Financing Agreement.
 
2.            Amendments .
 
(a)            Recitals .  The recitals to the Financing Agreement are hereby amended and restated in their entirety to read as follows:
 
“The Borrowers have asked the Lenders to extend credit to the Borrowers consisting of a multi-draw term loan in the aggregate principal amount of $125,000,000.  The proceeds of the term loan shall be used to pay the final judgment of the Oracle Litigation (as hereinafter defined), to pay legal fees or other costs and expenses related to the Oracle Litigation, for general working capital purposes of the Borrowers and to pay fees and expenses related to this Agreement.  The Lenders are severally, and not jointly, willing to extend such credit to the Borrowers subject to the terms and conditions hereinafter set forth.
 
In consideration of the premises and the covenants and agreements contained herein, the parties hereto agree as follows:”


(b)            New Definitions .  Section 1.01 of the Financing Agreement is hereby amended by adding the following definitions in appropriate alphabetical order:
 
““ Budget ” means, collectively, the consolidated cash requirement forecasts, cash flow statements, statements of operations and cash availability schedules in the form attached hereto as Schedule 1.01(C), which are (a) prepared by or on behalf of the Loan Parties on a weekly basis (for the next succeeding 13 weeks) and on a monthly basis (for the months from the Second Amendment Effective Date through the Final Maturity Date), and (b) delivered by the Loan Parties to the Agents and the Lenders (i) on or before the Second Amendment Effective Date pursuant to Section 4 of the Second Amendment and (ii) each quarter thereafter pursuant to Section 7.01(a)(xx) hereto (or more frequently should the Agents so elect), in each case, which shall be in substance satisfactory and approved by the Origination Agent at the time of delivery thereof.”
 
““ Customer Prepayment ” means any payment received by a Borrower from a customer with respect to the rendering of services by a Borrower to a customer that are to commence and be rendered at least twelve (12) months or later after the date of such payment.”
 
““ Material Adverse Deviation ” means, as of any date of determination, the occurrence of any of the following: (i) actual cash receipts, in the aggregate, for any four week test period are less than ninety percent (90%) of the amount projected in the Budget for such four week period, (ii) actual cash disbursements, on a line item basis, for any four week test period exceed one hundred ten percent (110%) of the amount projected for such line item in the Budget for such four week period, (iii) actual cash receipts, in the aggregate, for any eight week test period on a rolling basis are less than ninety-five percent (95%) of the amount projected in the Budget for such eight week period, or (iv) actual cash disbursements, on a line item basis, for any eight week test period on a rolling basis exceed one hundred five percent (105%) of the amount projected for such line item in the Budget for such eight week period.
 
““ Second Amendment ” means the Second Amendment to Financing Agreement, dated as of October 28, 2016, by and among the Agents, the Lenders party thereto and the Loan Parties.”
 
““ Second Amendment Effective Date ” means the date on which each of the conditions precedent set forth in Section 4 of the Second Amendment have been either satisfied or waived.”
 
““ Second Amendment Equity Issuance ” means the Equity Issuance described in Section 4(e)(ii) of the Second Amendment.”

(c)            Existing Definitions .

(i)            The definition of “Amortization Commencement Date” in Section 1.01 of the Financing Agreement is hereby deleted in its entirety.
 
(ii)            The definition of “Appealable Claims” in Section 1.01 of the Financing Agreement is hereby deleted in its entirety.
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(iii)            The definition of “Applicable Premium Trigger Event” in Section 1.01 of the Financing Agreement is hereby amended by amending and restating clause (a) therein in its entirety to read as follows:
 
“(a)            any payment by any Loan Party of all, or any part, of the principal balance of any Term Loan for any reason (including, but not limited to, any optional prepayment or mandatory prepayment, but excluding (x) any regularly scheduled amortization payment made pursuant to the first sentence of Section 2.03(A), (y) any mandatory prepayment made pursuant to Section 2.05(c)(iv) from the insurance proceeds paid in connection with any casualty event and (z) any mandatory prepayment made pursuant to Section 2.05(c)(vi) or Section 2.05(c)(vii)) whether before or after (i) the occurrence of an Event of Default, or (ii) the commencement of any Insolvency Proceeding, and notwithstanding any acceleration (for any reason) of the Obligations;”
 
 (iv)            The definition of “Budget Compliance Report” in Section 1.01 of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
““ Budget Compliance Report ” means a report, in form and substance reasonably satisfactory to the Origination Agent, that sets forth, through the end of the immediately preceding month, a comparison of  (a) (i) the actual cash receipts for the immediately preceding four week period to the projected cash receipts for such four week period, and (ii) the actual cash disbursements, on a line item basis, for the immediately preceding four week period to the projected cash disbursements, on a line item basis, for such four week period, and (b) (i) the actual cash receipts for the immediately preceding eight week period to the projected cash receipts for such eight week period, and (ii) the actual cash disbursements, on a line item basis, for the immediately preceding eight week period to the projected cash disbursements, on a line item basis, for such eight week period, each as set forth in the Budget for such period, together with a statement as to whether a Material Adverse Deviation has occurred or not.”
 
(v)            The definition of “Churn Rate” in Section 1.01 of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
““ Churn Rate ” means, with respect to the Parent and its Subsidiaries for any period, the result (expressed as a percentage) of (a) the aggregate amount of recurring invoicing of the Parent and its Subsidiaries lost during such period, divided by (b) the aggregate amount of recurring invoicing of the Parent and its Subsidiaries as of the beginning of such period.”
 
(vi)            The definition of “Collections” in Section 1.01 of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
““ Collections ” means all cash, checks, notes, instruments, and other items of payment (including insurance proceeds, proceeds of cash sales, rental proceeds, and tax refunds).”
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(vii)            The definition of “Excluded Equity Issuance” in Section 1.01 of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
““ Excluded Equity Issuance ” means (a) in the event that the Parent or any of its Subsidiaries forms any Subsidiary in accordance with this Agreement, the issuance by such Subsidiary of Equity Interests to the Parent or such Subsidiary, as applicable, (b)  the issuance of Equity Interests of the Parent to directors, officers and employees of the Parent and its Subsidiaries pursuant to employee stock option plans (or other employee incentive plans or other compensation arrangements) approved by the Board of Directors of the Parent, (c) the issuance of Equity Interests by a Subsidiary of the Parent to its parent or member in connection with the contribution by such parent or member to such Subsidiary of the proceeds of an issuance described in clauses (a) – (b) above, (d) the issuance of Equity Interests by the Parent to any Secured Party or their successors or assigns, and (e) the Second Amendment Equity Issuance.”
 
(viii)            The definition of “Excluded Hartford Insurance Proceeds” in Section 1.01 of the Financing Agreement is hereby deleted in its entirety.
 
(ix)            The definition of “Extraordinary Receipts” in Section 1.01 of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
““ Extraordinary Receipts ” means any cash received by the Parent or any of its Subsidiaries not in the ordinary course of business (and not consisting of proceeds described in Section 2.05(c)(i), (ii), (iii) or (vii) hereof), including, without limitation, (a) foreign, United States, state or local tax refunds, (b) pension plan reversions, (c) proceeds of insurance, (d) judgments, proceeds of appeals, settlements or other consideration of any kind in connection with any cause of action, (e) condemnation awards (and payments in lieu thereof), (f) indemnity payments (other than to the extent such indemnity payments are (i) immediately payable to a Person that is not an Affiliate of the Parent or any of its Subsidiaries or (ii) received by the Parent or any of its Subsidiaries as reimbursement for any costs previously incurred or any payment previously made by such Person) and (g) any purchase price adjustment received in connection with any purchase agreement.”
 
(x)            The definition of “Fee Letter” in Section 1.01 of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
““ Fee Letter ” means the amended and restated fee letter, dated as of the Second Amendment Effective Date, among the Borrowers and the Origination Agent, as amended, amended and restated, supplemented or otherwise modified from time to time.”
 
(xi)            The definition of “Insurance Loan” in Section 1.01 of the Financing Agreement is hereby deleted in its entirety.
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(xii)            The definition of “Oracle Litigation Computer Access Damages” in Section 1.01 of the Financing Agreement is hereby deleted in its entirety.
 
(xiii)            The definition of “Oracle Litigation Expenses” in Section 1.01 of the Financing Agreement is hereby deleted in its entirety.
 
(xiv)            The definition of “Permitted Indebtedness” in Section 1.01 of the Financing Agreement is hereby amended by amending and restating clause (l) therein in its entirety to read as follows:
 
“(l)            Intentionally Omitted;”
 
(xv)            The definition of “Permitted Liens” in Section 1.01 of the Financing Agreement is hereby amended by amending and restating clause (q) therein in its entirety to read as follows:
 
“(q)            Intentionally Omitted;”
 
(xvi)            The definition of “Retained Equity Issuance Proceeds” in Section 1.01 of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
““ Retained Equity Issuance Proceeds ” means, as of any date of determination, an amount equal to 50% of the Net Cash Proceeds of all Equity Issuances (other than Excluded Equity Issuances) after the Second Amendment Effective Date, which proceeds shall be deposited into the Blocked Collection Account.”
 
(xvii)            The definition of “Retained Hartford Insurance Proceeds” in Section 1.01 of the Financing Agreement is hereby deleted in its entirety.
 
(xviii)            The definition of “Retained Insurance Proceeds” in Section 1.01 of the Financing Agreement is hereby deleted in its entirety.
 
(xix)            The definition of “Semi-Monthly Report” in Section 1.01 of the Financing Agreement is hereby deleted in its entirety.
 
(xx)            The definition of “Specified Collections” in Section 1.01 of the Financing Agreement is hereby deleted in its entirety.
 
(xxi)            The definition of “Specified Disbursements” in Section 1.01 of the Financing Agreement is hereby deleted in its entirety.
 
(xxii)            The definition of “Threshold Amount” in Section 1.01 of the Financing Agreement is hereby deleted in its entirety.
 
(xxiii)            The definition of “Total Hartford Insurance Proceeds” in Section 1.01 of the Financing Agreement is hereby deleted in its entirety.
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(xxiv)            The definition of “Total Sales and Marketing Expense” in Section 1.01 of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
““ Total Sales and Marketing Expense ” means, with respect to the Parent and its Subsidiaries for any period, the aggregate dollar amount of sales and marketing disbursements for such period, which disbursements constitute charges and expenses attributable to sales and marketing, advertising and promotional efforts during such period, and shall include, without limitation, wages, commissions, bonuses, materials costs and event planning related to such efforts and activities.”
 
(d)            Section 2.03 (Repayment of Loans; Evidence of Debt) .  Section 2.03 of the Financing Agreement is hereby amended by replacing the reference therein to “the Amortization Commencement Date” with “November 1, 2016”.
 
(e)            Section 2.05(c) (Mandatory Prepayments) .  Section 2.05(c)(iv) of the Financing Agreement is hereby deleting the reference therein to “(other than Excluded Hartford Insurance Proceeds)”.
 
(f)            Section 2.05(c) (Mandatory Prepayments) .  Section 2.05(c)(v) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(v)            Notwithstanding the foregoing, with respect to Net Cash Proceeds received by any Loan Party or any of its Subsidiaries in connection with a Disposition or the receipt of Extraordinary Receipts consisting of insurance proceeds or condemnation awards that are required to be used to prepay the Obligations pursuant to Section 2.05(c)(i) or Section 2.05(c)(iv), as the case may be, up to $250,000 in the aggregate in any Fiscal Year of the Net Cash Proceeds from all such Dispositions and Extraordinary Receipts shall not be required to be so used to prepay the Obligations to the extent that such Net Cash Proceeds are used to replace, repair or restore properties or assets (other than current assets) used in such Person’s business, provided that, (A) no Default or Event of Default has occurred and is continuing on the date such Person receives such Net Cash Proceeds, (B) the Administrative Borrower delivers a certificate to the Administrative Agent within 5 days after such Disposition or loss, destruction or taking or receipt of Extraordinary Receipts, as the case may be, stating that such Net Cash Proceeds shall be used to replace, repair or restore properties or assets used in such Person’s business within a period specified in such certificate not to exceed 90 days (or, if a binding agreement relating to such reinvestment has been executed within such 90 day period but such reinvestment has not closed, an additional 180 days following such 90 day period) after the date of receipt of such Net Cash Proceeds (which certificate shall set forth estimates of the Net Cash Proceeds to be so expended), (C) such Net Cash Proceeds are deposited in the Blocked Collection Account, and (D) upon the earlier of (1) the expiration of the period specified in the relevant certificate furnished to the Administrative Agent pursuant to clause (B) above or (2) the occurrence and continuance of an Event of Default, such Net Cash Proceeds, if not theretofore so used, shall be used to prepay the outstanding Obligations in accordance with Section 2.05(c)(i) or Section 2.05(c)(iv) as applicable.”
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(g)            Section 2.05(c) (Mandatory Prepayments) .  Section 2.05(c)(vi) of the Financing Agreement is hereby amended by replacing the reference therein to “25%” with “75%”.
 
(h)            Section 2.05(c) (Mandatory Prepayments) .  The following new Section 2.05(c)(vii) of the Financing Agreement is hereby added to the Financing Agreement to read as follows:
 
“(vii)            Within five (5) Business Days after the receipt by any Loan Party or any of its Subsidiaries of any Customer Prepayments on or after April 1, 2017, the Borrowers shall prepay the outstanding principal of the Loans in accordance with Section 2.05(d) in an amount equal to 100% of the cash proceeds received by such Person in connection therewith.”
 
(i)            Section 2.05 (d) (Application of Payments) .  Section 2.05(d) of the Financing Agreement is hereby amended by amending and restating the first sentence therein in its entirety to read as follows:
 
“Each prepayment pursuant to subsections (c)(i), (c)(ii), (c)(iii), (c)(iv), (c)(v), (c)(vi) and (c)(vii) above shall be applied to the Term Loan, until paid in full.”
 
(j)            Section 5.02 ( Conditions Precedent to Loans made from Delayed Draw A Term Loan Commitments) .  Section 5.02(e) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(e)            Additional Conditions Precedent .  The Origination Agent and the Required Lenders shall have provided their prior written consent to the making of any such Loan.”
 
(k)            Section 6.01(g) (Financial Statements) .  Section 6.01(g) of the Financing Agreement is hereby amended by amending and restating the first sentence of Section 6.01(g)(i) in its entirety to read as follows:
 
“Except as set forth on Schedule 6.01(g), the Financial Statements, copies of which have been delivered to each Agent and each Lender, fairly present in all material respects the consolidated financial condition of the Parent and its Subsidiaries as at the respective dates thereof and the consolidated results of operations of the Parent and its Subsidiaries for the fiscal periods ended on such respective dates, all in accordance with GAAP.”
 
(l)            Section 6.01(s) (Use of Proceeds) .  Section 6.01(s) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(s)            Use of Proceeds .  The proceeds of the Loans shall be used to (a) pay fees and expenses in connection with the transactions contemplated hereby, (b) to pay the final judgment of the Oracle Litigation, and pay the legal fees and other costs and expenses related to the Oracle Litigation and (c) fund working capital and general corporate purposes of the Borrowers; provided , that with respect to a Term Loan made after the Effective Date, the proceeds of such Term Loan may only be used to pay the verdict, legal fees or other costs and expenses related to the Oracle Litigation, for general working capital purposes of the Borrowers and to pay fees and expenses related to this Agreement.”
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(m)            Section 6.01(bb) (Advisors) .  The following new Section 6.01(bb) is hereby added to the Financing Agreement to read as follows:
 
“(bb)            Advisors .  Each Loan Party has disclosed to the Agents the (i) identity of all financial advisors, investment bankers, legal counsel, consultants and other advisors that have been retained by the Loan Parties during the two (2) year period prior to the Second Amendment Effective Date and (ii) the aggregate amount of fees and expenses paid by the Loan Parties to such advisors during such period.”
 
(n)            Section 7.01(a) (Reporting Requirements) .  Section 7.01(a)(iii) of the Financing Agreement is hereby amended by replacing the reference therein to “September 30, 2016” with “December 15, 2016”.
 
(o)            Section 7.01(a) (Reporting Requirements) .  Section 7.01(a)(v) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(v)            as soon as available and in any event within 10 days after the end of each fiscal month of the Parent and its Subsidiaries, commencing with the first fiscal month of the Parent and its Subsidiaries ending after the Effective Date, reports in form and detail reasonably satisfactory to the Origination Agent and certified by an Authorized Officer of the Administrative Borrower as being accurate and complete in all material respects (A) listing all Accounts Receivable of the Loan Parties as of such day, which shall include the amount and age of each such Account Receivable, showing separately those which are more than 30, 60, 90 and 120 days past due and a description of all known Liens, set-offs, defenses and counterclaims with respect thereto, together with a reconciliation of such schedule with the schedule delivered to the Agents pursuant to this clause (v)(A) for the immediately preceding fiscal month, and such other information as the Origination Agent may reasonably request, (B) listing all accounts payable of the Loan Parties as of each such 30, 60, 90 and 120 days past due which shall include the amount and age of each such account payable, and such other information as the Origination Agent may reasonably request and (C) listing all Customer Prepayments received by the Loan Parties for the immediately preceding fiscal month;”
 
(p)            Section 7.01(a) (Reporting Requirements) .  Section 7.01(a)(xiv) of the Financing Agreement is hereby amended by replacing the reference therein to “clause (c)” with “clause (b)”.
 
(q)            Section 7.01(a) (Reporting Requirements) .  Section 7.01(a) of the Financing Agreement is hereby amended by (i) deleting the word “and” at the end of clause (xix) therein and (ii) amending and restating clause (xx) therein in its entirety and inserting new clauses (xxi) and (xxii) therein, in each case, to read as follows:
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“(xx)            on or about the fifth day (5th) after the end of each fiscal quarter of the Parent and its Subsidiaries, commencing with the first fiscal quarter of the Parent and its Subsidiaries ending after the Second Amendment Effective Date, a Budget for (A) the next succeeding 13-week period and (B) for the months from the Second Amendment Effective Date through the Final Maturity Date, in each case, prepared in form and substance satisfactory to the Origination Agent, which Budget, when delivered and as so updated, shall be (1) consistent with the Budget delivered to the Agents on or prior to the Second Amendment Effective Date, (2) believed by the Loan Parties at the time furnished to be reasonable, (3) prepared on a reasonable basis and in good faith, and (4) based on assumptions believed by the Loan Parties to be reasonable at the time made and upon the best information then reasonably available to the Loan Parties, and shall be accompanied by a certificate of an Authorized Officer of the Administrative Borrower certifying as to the matters set forth in subclauses (1), (2), (3) and (4) above; provided , that such updated Budget must be approved by the Origination Agent;
 
(xxi)            as soon as available and in any event not later than 5:00 p.m. (Eastern time) on the last day of each month commencing with the first month ending after the Second Amendment Effective Date, (x) a Budget Compliance Report and (y) a report, in form and substance satisfactory to the Origination Agent, setting forth (A) all financial advisors, investment bankers, legal counsel, consultants and other advisors that have been retained and/or paid by the Loan Parties during such month and (B) the aggregate amount of fees and expenses paid by the Loan Parties to such advisors during such month; and
 
(xxii)            promptly upon request, such other information concerning the condition or operations, financial or otherwise, of any Loan Party as the Origination Agent may from time to time may reasonably request.”
 
(r)            Section 7.01(r) (Industry Consultant) .  The following new Section 7.01(r) is hereby added to the Financing Agreement to read as follows:
 
“(r)            Industry Consultant .  Permit the Required Lenders to retain and appoint an industry consultant at any time at the sole cost and expense of the Loan Parties.  At any time after the Required Lenders have retained and appointed such an industry consultant, the Loan Parties shall provide such industry consultant with unfettered access in order to, among other things, examine and make copies of and abstracts from their records and books of account, to visit and inspect their properties, to verify materials, leases, notes, accounts receivable, deposit accounts and their other assets, to conduct audits, physical counts, valuations, appraisals and to discuss their affairs, finances and accounts (and share observations and suggestions) with any of their directors, committees and  sub-committees of the Board of Directors of the Parent, officers, managerial employees, independent accountants or any of their other representatives.”
 
(s)            Section 7.01(s) (Chief Financial Officer) .  The following new Section 7.01(s) is hereby added to the Financing Agreement to read as follows:
 
“(s)            Chief Financial Officer .  Within thirty (30) days after the Second Amendment Effective Date, (x) retain a chief financial officer and (y) deliver a fully-executed copy of his or her employment agreement with the Parent to the Origination Agent, certified as a true and correct copy by an Authorized Officer of the Parent.  The Parent will use its reasonable best efforts to continue the retention of such chief financial officer approved by its Board of Directors.”
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(t)            Section 7.01(t) (Equity Raise) .  The following new Section 7.01(t) is hereby added to the Financing Agreement to read as follows:
 
“(t)            Equity Raise .  On or prior to the seven (7) month anniversary of the Second Amendment Effective Date, consummate one or more Equity Issuances after the Second Amendment Effective Date (other than the Second Amendment Equity Issuance) that result in Net Cash Proceeds of at least $35,000,000 in the aggregate; which cash proceeds shall be applied in accordance with Section 2.05(c)(iii).”
 
(u)            Section 7.02(v) (Insurance Settlements) .  The following new Section 7.02(v) is hereby added to the Financing Agreement to read as follows:
 
“(v)            Insurance Settlements .  None of the Loan Parties, nor any of their Subsidiaries, shall enter into any settlement exceeding $500,000 in respect of an individual claim with any of their insurance carriers without the prior written consent of the Origination Agent.”
 
(v)            Section 7.03 (Financial Covenants) .  Section 7.03 of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“7.03            Financial Covenants .  So long as any principal of or interest on any Loan or any other Obligation (whether or not due) shall remain unpaid (other than Contingent Indemnity Obligations) or any Lender shall have any Commitment hereunder, each Loan Party shall not, unless the Required Lenders shall otherwise consent in writing:
 
(a)            Leverage Ratio .  At any time after the Loans in respect of the Delayed Draw A Term Loan Commitments have been made hereunder, permit the Leverage Ratio of the Parent and its Subsidiaries for any period of four consecutive fiscal quarters of the Parent and its Subsidiaries for which the last quarter ends on a date set forth below to be greater than the ratio set forth opposite such date:
 
 
Fiscal Quarter End
Leverage Ratio
 
 
December 31, 2016
5.00 to 1.00
 
 
March 31, 2017
4.00 to 1.00
 
 
June 30, 2017
3.50 to 1.00
 
 
September 30, 2017
3.00 to 1.00
 
 
December 31, 2017
2.50 to 1.00
 
 
March 31, 2018
2.00 to 1.00
 
 
June 30, 2018
1.50 to 1.00
 
 
September 30, 2018 and on the last day of each fiscal quarter thereafter
1.00 to 1.00
 

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(b)            Liquidity .  At any time, permit the Liquidity of the Parent and its Subsidiaries to be less than the amount set forth in the table below for the applicable period:
 
Period
 
Amount
 
From the Second Amendment Effective Date through and including June 30, 2018
 
$
10,000,000
 
From July 1, 2018 through and including December 31, 2018
 
$
20,000,000
 
From January 1, 2019 through and including June 30, 2019
 
$
25,000,000
 
At all times from and after July 1, 2019
 
$
30,000,000
 

(c)            Churn Rate .  Permit the Churn Rate of the Parent and its Subsidiaries to exceed 20% during any period of four consecutive fiscal quarters of the Parent and its Subsidiaries.
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                          (d)            Asset Coverage Ratio .  Permit the Asset Coverage Ratio of the Parent and its Subsidiaries as of the end of any fiscal month of the Parent and its Subsidiaries to be less than the ratio set forth opposite the date set forth below
 
 
Fiscal Month End
Asset Coverage Ratio
 
 
October 31, 2016
1.50 to 1.00
 
 
November 30, 2016
1.50 to 1.00
 
 
December 31, 2016
1.50 to 1.00
 
 
January 31, 2017
1.50 to 1.00
 
 
February 28, 2017
1.50 to 1.00
 
 
March 31, 2017
1.50 to 1.00
 
 
April 30, 2017
1.75 to 1.00
 
 
May 31, 2017
1.75 to 1.00
 
 
June 30, 2017
1.75 to 1.00
 
 
July 31, 2017
2.00 to 1.00
 
 
August 31, 2017
2.00 to 1.00
 
 
September 30, 2017
2.00 to 1.00
 
 
October 31, 2017
2.00 to 1.00
 
 
November 30, 2017
2.00 to 1.00
 
 
December 31, 2017
2.00 to 1.00
 
 
January 31, 2018
2.50 to 1.00
 
 
February 28, 2018
2.50 to 1.00
 
 
March 31, 2018
2.50 to 1.00
 
 
April 30, 2018
3.00 to 1.00
 
 
May 31, 2018
3.00 to 1.00
 
 
June 30, 2018
3.00 to 1.00
 
 
July 31, 2018 and on the last day of each fiscal month thereafter
3.50 to 1.00
 

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(e)            Marketing Return Ratio .  Permit the Marketing Return Ratio of the Parent and its Subsidiaries for any period of four consecutive fiscal quarters of the Parent and its Subsidiaries to be less than the ratio set forth opposite the date set forth below:
 
 
Fiscal Quarter End
Marketing Return Ratio
 
 
December 31, 2016
1.35 to 1.00
 
 
March 31, 2017
1.35 to 1.00
 
 
June 30, 2017
1.45 to 1.00
 
 
September 30, 2017
1.45 to 1.00
 
 
December 31, 2017 and on the last day of each fiscal quarter thereafter
1.55 to 1.00
 
 
(f)            Minimum Gross Margin .  Permit the Gross Margin of the Parent and its Subsidiaries as of the end of any fiscal quarter of the Parent, for any period of four consecutive fiscal quarters of the Parent and its Subsidiaries, to be less than the percentage set forth opposite the date set forth below:
 
 
Fiscal Quarter End
Gross Margin
 
 
December 31, 2016
55%
 
 
March 31, 2017
55%
 
 
June 30, 2017
55%
 
 
September 30, 2017
55%
 
 
December 31, 2017
57.5%
 
 
March 31, 2018
57.5%
 
 
June 30, 2018
57.5%
 
 
September 30, 2018 and on the last day of each fiscal quarter thereafter
60%”
 

13


 (w)            Section 8.01 (Cash Management Agreements) .  Section 8.01(a)  of the Financing Agreement is hereby amended by amending and restating the last two sentences therein to read as follows:
 
“From and after the Effective Date, the Loan Parties shall cause any Net Cash Proceeds of any Excluded Equity Issuances and Retained Equity Issuance Proceeds to be deposited directly into the Blocked Collection Account.”
 
 (x)            Section 8.01 (Cash Management Agreements) .  Section 8.01(c)  of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(c)            Not less than five 5 Business Days prior to the end of each month, the Parent shall deliver a certificate to the Agents, detailing the Loan Parties’ estimated aggregate customer billed invoices and the Loan Parties’ exact cash disbursement needs for the succeeding month (each, a “ Monthly Cash Disbursement Report ”).  Each such report shall be accompanied by a Budget Compliance Report.  Subject to the Origination Agent’s timely receipt and satisfaction with the Monthly Cash Disbursement Report and the Budget Compliance Report, so long as no Event of Default has occurred and is continuing, the Origination Agent will direct the Collateral Agent in writing to direct, and the Collateral Agent shall direct, the Cash Management Bank to transfer the cash disbursement needs set forth in each Monthly Cash Disbursement Report from the Blocked Collection Account to a Cash Management Account that is an operating or disbursement account of the Loan Parties on the first Business Day of the following month; provided , that the Origination Agent may, in its discretion, direct the Collateral Agent to direct the Cash Management Bank to transfer additional disbursements from the Blocked Collection Account to an operating or disbursement account of the Loan Parties at additional times and in additional amounts.  Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent may direct the Cash Management Bank to transfer funds in any Cash Management Account to the Administrative Agent’s Account.”
14


(y)            Section 9.01(c) (Events of Default) .  Section 9.01(c) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(c)            any Loan Party shall fail to perform or comply with any covenant or agreement contained in Section 7.01(a), Section 7.01(c), Section 7.01(d) (as to preservation and maintenance of existence), Section 7.01(f), Section 7.01(h), Section 7.01(k), Section 7.01(q), Section 7.01(r), Section 7.01(s), Section 7.01(t), Section 7.02 or Section 7.03 or Article VIII, or any Loan Party shall fail to perform or comply with Sections 6(g), 6(h), 6(j) and 6(l) (other than 6(l)(ii) of the Security Agreement) of the Security Agreement;”
 
(z)            Section 9.01(j) (Events of Default) .  Section 9.01(j) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(j)            (i) one or more judgments, orders, actions or awards (or any settlement of any litigation or other proceeding that, if breached, could result in a judgment, order or award) for the payment of money exceeding $500,000 in the aggregate (except to the extent fully covered (other than to the extent of customary deductibles) by insurance pursuant to which the insurer has been notified and has not denied coverage) shall be rendered or proposed to be rendered against any Loan Party and remain unsatisfied or (ii) any adverse order or action is entered or proposed to be entered against any Loan Party or any of its Subsidiaries in any court proceeding;”
 
(aa)            Section 9.01(k) (Events of Default) .  Section 9.01(k) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(k)            the Parent or any of its Subsidiaries is enjoined, restrained or in any way prevented (or it is proposed that the Parent or any of its Subsidiaries be enjoined, restrained or in any way prevented) by the order of any court or any Governmental Authority (other than if an order has been obtained suspending such enjoinment or restraint) from conducting any part of the Parent’s business;”
15


(bb)            Section 9.01 (Events of Default) .  Section 9.01 of the Financing Agreement is hereby amended by (i) deleting the word “or” at the end of clause (p) therein, (ii) deleting the “,” at the end of clause (q) therein and adding “;” and (iii) adding the following new clauses (r) and (s) therein to read as follows:
 
“(r)            a Material Adverse Deviation shall have occurred; or
 
 (s)            an event or development occurs which could reasonably be expected to have a Material Adverse Effect;”
 
(cc)            Section 12.20 (Public Disclosure) .  Section 12.20  of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
Disclosure .            Each Loan Party agrees that neither it nor any of its Affiliates will now or in the future issue any press release or other disclosure using the name of an Agent, any Lender or any of their respective Affiliates or referring to this Agreement or any other Loan Document without the prior written consent of such Agent or such Lender, except to the extent that such Loan Party or such Affiliate is required to do so under applicable law (in which event, such Loan Party or such Affiliate will consult with such Agent or such Lender before issuing such press release or other disclosure).  In addition, each Loan Party agrees that neither it nor any of its Affiliates will now or in the future issue any other press release or other disclosure relating to this Agreement, any other Loan Document or any matter related thereto without the prior written consent of such Agent or such Lender, except to the extent that such Loan Party or such Affiliate is required to do so under applicable law (in which event, such Loan Party or such Affiliate will consult with such Agent or such Lender before issuing such press release or other disclosure).  Each Loan Party hereby authorizes each Agent and each Lender, after consultation with the Borrowers, to advertise the closing of the transactions contemplated by this Agreement, and to make appropriate announcements of the financial arrangements entered into among the parties hereto, as such Agent or such Lender shall deem appropriate, including, without limitation, on a home page or similar place for dissemination of information on the Internet or worldwide web, or in announcements commonly known as tombstones, in such trade publications, business journals, newspapers of general circulation and to such selected parties as such Agent or such Lender shall deem appropriate.”
 
(dd)            Schedule 1.01(A) (Lenders and Lenders’ Commitments) .  Schedule 1.01(A) to the Financing Agreement is hereby amended and restated in its entirety to read as set forth on Annex I to this Amendment.
 
(ee)            Schedule 1.01(C) (Budget) .  The new Schedule 1.01(C) to the Financing Agreement is hereby added to read as set forth on Annex II to this Amendment.
 
(ff)            Schedule 2.03 (Amortization Schedule) .  Schedule 2.03 to the Financing Agreement is hereby amended and restated in its entirety to read as set forth on Annex III to this Amendment.
16


(gg)            Schedule 6.01(g) (Financial Statements) .  The new Schedule 6/01(g) to the Financing Agreement is hereby added to read as set forth on Annex IV to this Amendment.
 
3.            Representations and Warranties .  Each Loan Party hereby represents and warrants to the Agents and the Lenders as follows:
 
(a)            Representations and Warranties; No Event of Default .  The representations and warranties herein, in Article VI of the Financing Agreement and in each other Loan Document, certificate or other writing delivered by or on behalf of the Loan Parties to any  Agent or any Lender pursuant to the Financing Agreement or any other Loan Document on or prior to the Second Amendment Effective Date are true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the Second Amendment Effective Date as though made on and as of such date (unless such representations or warranties are stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date), and no Default or Event of Default has occurred and is continuing as of the Second Amendment Effective Date or would result from this Amendment becoming effective in accordance with its terms.
 
(b)            Organization, Good Standing, Etc.   Each Loan Party (i) is a corporation, limited liability company or limited partnership duly organized, validly existing and in good standing under the laws of the state or jurisdiction of its organization, (ii) has all requisite corporate (or equivalent) power and authority to conduct its business as now conducted and as presently contemplated and to execute this Amendment and deliver each Loan Document to which it is a party, and to consummate the transactions contemplated hereby and by the Financing Agreement, and (iii) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary, except (solely for the purposes of this subclause (iii)) where the failure to be so qualified and in good standing could reasonably be expected to have a Material Adverse Effect.
 
(c)            Authorization; Etc.   The execution, delivery and performance of this Amendment by the Loan Parties, and the performance of the Financing Agreement, (i) have been duly authorized by all necessary corporate (or equivalent) action, (ii) do not and will not contravene (A) any of its Governing Documents, (B) any applicable material Requirement of Law to the extent such contravention would adversely affect the material operations of the Borrowers or (C) any Contractual Obligation binding on or otherwise affecting it or any of its properties, (iii) do not and will not result in or require the creation of any Lien (other than pursuant to any Loan Document or any other Permitted Lien) upon or with respect to any of its properties, and (iv) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to its operations or any of its properties, except for any violation referred to in clause (ii)(C) or clause (iv) above which could not reasonably be expected to have a Material Adverse Effect.
17


(d)            Governmental Approvals .  No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required in connection with the due execution, delivery and performance by any Loan Party of this Amendment or any other Loan Document to which it is or will be a party other than filings and recordings with respect to Collateral that were made, or otherwise delivered to the Collateral Agent for filing or recordation, on the Effective Date.

(e)            Budget .  The Budget, when delivered shall be believed by the Loan Parties at the time furnished to be reasonable, shall have been prepared on a reasonable basis and in good faith by the Loan Parties, and shall have been based on assumptions believed by the Loan Parties to be reasonable at the time made and upon the best information then reasonably available to the Loan Parties, and the Loan Parties shall not be aware of any facts or information that would lead it to believe that such Budget is incorrect or misleading in any material respect.

4.            Conditions to Effectiveness .  This Amendment shall become effective only upon satisfaction in full, in a manner reasonably satisfactory to the Origination Agent, of the following conditions precedent (the first date upon which all such conditions shall have been satisfied or waived being herein called the “ Second Amendment Effective Date ”):
 
(a)            The Agents shall have received this Amendment, duly executed by the Loan Parties, each Agent and the Required Lenders.
 
(b)            The representations and warranties contained in this Amendment and in Article VI of the Financing Agreement and in each other Loan Document shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the Second Amendment Effective Date as though made on and as of such date (unless such representations or warranties are stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date).
 
(c)            No Default or Event of Default shall have occurred and be continuing on the Second Amendment Effective Date or result from this Amendment becoming effective in accordance with its terms.
 
(d)            The Origination Agent shall have received the Fee Letter, duly executed by the Borrowers.
18


(e)            The Origination Agent shall have received satisfactory evidence that the Borrowers have received, in cash, at least (i) $40,200,000 in insurance proceeds from The Hartford Insurance and (ii) $10,000,000 of Net Cash Proceeds of an Equity Issuance on or about the Second Amendment Effective Date, in each case, which shall be applied to pay the final judgment amount rendered in the Oracle Litigation described in clause (i) of the definition thereof.
 
(f)            The Agents shall have received a certified copy of the final judgments entered by the applicable Governmental Authority in the litigation described in clause (i) of the definition of Oracle Litigation.
 
(g)          The Origination Agent shall have received a wire instruction letter executed by the Borrowers instructing the Origination Agent to wire $124,400,000 from the Blocked Collection Account to pay the final judgment amount rendered in the Oracle Litigation described in clause (i) of the definition thereof pursuant to the wire instructions set forth in such wire instruction letter.
 
(h)          The Agents shall have received a copy of the Budget, together with a certificate of an Authorized Officer of the Administrative Borrower stating that such Budget has been prepared on a reasonable basis and in good faith and is based on assumptions believed by the Loan Parties to be reasonable at the time made and from the best information then available to the Loan Parties, which Budget shall be in form and substance satisfactory to the Agents.
 
(i)            The Borrowers shall have paid on or before the Second Amendment Effective Date all fees, costs and expenses then payable pursuant to Section 2.06 and Section 12.04, including, without limitation, the reasonable fees and expenses of Schulte Roth & Zabel LLP, counsel to the Origination Agent.
 
5.            Consent and Waivers .
 
(a)            Pursuant to the request by the Loan Parties, but subject to satisfaction of the conditions set forth in Section 4 hereof, and in reliance upon (A) the representations and warranties of Loan Parties set forth herein and in the Financing Agreement and (B) the agreements of the Loan Parties set forth herein, the Agents and the Required Lenders hereby (w) consent to the Parent using (i) insurance proceeds in the amount of $40,200,00 actually received by the Parent from The Hartford Insurance, and (ii) cash proceeds in the amount of $10,000,000 actually received by the Parent from an Equity Issuance on or about the Second Amendment Effective Date, in each case, to be applied to pay the final judgment amount rendered in the Oracle Litigation described in clause (i) of the definition thereof in the aggregate amount of $124,400,000, (x) waive any Event of Default that has or would otherwise arise under (i) Section 9.01(c) of the Financing Agreement solely by reason of the Loan Parties failing to deliver the audited financials of the Parent and its Subsidiaries for the Fiscal Year ended December 31, 2015 pursuant to Section 7.01(a)(iii) of the Financing Agreement by September 30, 2016 and (ii) Section 9.01(j)(ii) with respect to the litigation described in clause (i) of the definition of Oracle Litigation on or prior to the Second Amendment Effective Date; provided , the Agents and the Lenders do not waive any Events of Default that may arise after the Second Amendment Effective Date with respect to the Oracle Litigation, (y) waive any default interest (but not any other interest) that has accrued at the Post-Default Rate prior to the Second Amendment Effective Date as a result of the occurrence of the Events of Default that are waived pursuant to this Section 5, and (z) solely with respect to the funding of a $12,500,000 Loan pursuant to the Delayed Draw B Term Loan Commitment on the Second Amendment Effective Date, waive the condition precedent set forth in Section 5.03(f)(ii) of the Financing Agreement.
19


(b)            The consent and waivers in this Section 5 shall be effective only in these specific instances and for the specific purposes set forth herein and do not allow for any other or further departure from the terms and conditions of the Financing Agreement or any other Loan Document, which terms and conditions shall continue in full force and effect.
 
6.            Continued Effectiveness of the Financing Agreement and Other Loan Documents .  Each Loan Party hereby (i) acknowledges and consents to this Amendment, (ii) confirms and agrees that the Financing Agreement and each other Loan Document to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that on and after the Second Amendment Effective Date all references in any such Loan Document to “the Financing Agreement”, the “Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Financing Agreement shall mean the Financing Agreement as amended or modified by this Amendment, and (iii) confirms and agrees that to the extent that any such Loan Document purports to assign or pledge to the Collateral Agent for the benefit of the Agents and the Lenders, or to grant to the Collateral Agent for the benefit of the Agents and the Lenders a security interest in or Lien on, any Collateral as security for the Obligations of the Loan Parties from time to time existing in respect of the Financing Agreement (as amended hereby) and the other Loan Documents, such pledge, assignment and/or grant of the security interest or Lien is hereby ratified and confirmed in all respects.  This Amendment does not and shall not affect any of the obligations of the Loan Parties, other than as expressly provided herein, including, without limitation, the Loan Parties’ obligations to repay the Loans in accordance with the terms of Financing Agreement, or the obligations of the Loan Parties under any Loan Document to which they are a party, all of which obligations shall remain in full force and effect.  Except as expressly provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agents or any Lender under the Financing Agreement or any other Loan Document, nor constitute a waiver of any provision of the Financing Agreement or any other Loan Document.
20


7.            Release .  Each Loan Party hereby acknowledges and agrees that, on the Second Amendment Effective Date:  (a) neither it nor any of its Affiliates has any claim or cause of action arising on or prior to the Second Amendment Effective Date against any Agent or any Lender (or any of their respective Affiliates, officers, directors, employees, attorneys, consultants or agents) under the Financing Agreement and the other Loan Documents and (b) each Agent and each Lender has, prior to the Second Amendment Effective Date, properly performed and satisfied in a timely manner all of its obligations prior to the Second Amendment Effective Date to such Loan Party and its Affiliates under the Financing Agreement and the other Loan Documents.  Notwithstanding the foregoing, the Agents and the Lenders wish (and each Loan Party agrees) to eliminate, to the fullest extent permitted under applicable law, any possibility that any past conditions, acts, omissions, events or circumstances which occurred prior to the Second Amendment Effective Date would impair or otherwise adversely affect any of the Agents’ and the Lenders’ rights, interests, security and/or remedies under the Financing Agreement and the other Loan Documents.  Accordingly, for and in consideration of the agreements contained in this Amendment and other good and valuable consideration, each Loan Party (for itself and its Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the “ Releasors ”) does hereby fully, finally, unconditionally and irrevocably release and forever discharge each Agent, each Lender and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (collectively, the “ Released Parties ”) from any and all debts, claims, obligations, damages, costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, arising on or prior to the Second Amendment Effective Date, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Releasor has heretofore had or now or hereafter can, shall or may have against any Released Party by reason of any act, omission or thing whatsoever done or omitted to be done on or prior to the Second Amendment Effective Date and arising out of, connected with or related in any way to this Amendment, the Financing Agreement or any other Loan Document, or any act, event or transaction on or prior to the Second Amendment Effective Date related or attendant thereto, or the agreements of any Agent or any Lender contained therein, or the possession, use, operation or control of any of the assets of each Loan Party, or the making of any Loans, or the management of such Loans or the Collateral, in each case, on or prior to the Second Amendment Effective Date.
 
As to each and every claim released hereunder, each Loan Party hereby represents that it has received the advice of legal counsel with regard to the releases contained herein, and having been so advised, specifically waives the benefit of the provisions of Section 1542 of the Civil Code of California which provides as follows:
 
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”
 
As to each and every claim released hereunder, each Loan Party also waives the benefit of each other similar provision of applicable federal or state law (including without limitation the laws of the state of New York), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto.
21


Each Loan Party acknowledges that it may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or causes of action arising on or prior to the Second Amendment Effective Date and agrees that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts.  Each Loan Party understands, acknowledges and agrees that to the extent permitted under applicable law, the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.
 
Each Loan Party, for itself and on behalf of its successors, assigns, and officers, directors, employees and agents, and any Person acting for or on behalf of, or claiming through it, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of the Released Parties above that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) the Released Parties on the basis of any claim released, remised and discharged by such Person pursuant to this Section 7.  Each Loan Party further agrees that it shall not dispute the validity or enforceability of the Financing Agreement or any of the other Loan Documents or any of its obligations thereunder, or the validity, priority, enforceability or the extent of Collateral Agent’s Lien on any item of Collateral under the Financing Agreement or the other Loan Documents.  If any Loan Party or any of its respective successors, assigns, or officers, directors, employees and agents, or any Person acting for or on behalf of, or claiming through it violate the foregoing covenant, such Person, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as the Released Parties may sustain as a result of such violation, all reasonable attorneys’ fees and costs incurred by the Released Parties as a result of such violation.
 
Each Lender hereby acknowledges and agrees that, on the Second Amendment Effective Date:  (a) neither it nor any of its Affiliates has any claim or cause of action arising on or prior to the Second Amendment Effective Date against Cortland Capital Market Services LLC, Colbeck Capital Management, LLC or CB Agent Services LLC (or any of their respective Affiliates, officers, directors, employees, attorneys, consultants or agents) under the Financing Agreement and the other Loan Documents and (b) each of Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and their respective Affiliates has, prior to the Second Amendment Effective Date, properly performed and satisfied in a timely manner all of its obligations prior to the Second Amendment Effective Date to such Lender and its Affiliates under the Financing Agreement and the other Loan Documents.  Notwithstanding the foregoing, Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and their respective Affiliates wish (and each Lender agrees) to eliminate, to the fullest extent permitted under applicable law, any possibility that any past conditions, acts, omissions, events or circumstances which occurred prior to the Second Amendment Effective Date would give rise to any claim by any Lender against Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and their respective Affiliates under the Financing Agreement and the other Loan Documents.  Accordingly, for and in consideration of the agreements contained in this Amendment and other good and valuable consideration, each Lender (for itself and its Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the “ Lender Releasors ”) does hereby fully, finally, unconditionally and irrevocably release and forever discharge Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (collectively, the “ Colbeck/Cortland Released Parties ”) from any and all debts, claims, obligations, damages, costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, arising on or prior to the Second Amendment Effective Date, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Lender Releasor has heretofore had or now or hereafter can, shall or may have against any Colbeck/Cortland Released Party by reason of any act, omission or thing whatsoever done or omitted to be done on or prior to the Second Amendment Effective Date and arising out of, connected with or related in any way to this Amendment, the Financing Agreement or any other Loan Document, or any act, event or transaction on or prior to the Second Amendment Effective Date related or attendant thereto, or the agreements of Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC or any of their respective Affiliates contained therein, or the possession, use, operation or control of any of the assets of each Loan Party, or the making of any Loans, or the management of such Loans or the Collateral, in each case, on or prior to the Second Amendment Effective Date.
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As to each and every claim released hereunder, each Lender hereby represents that it has received the advice of legal counsel with regard to the releases contained herein, and having been so advised, specifically waives the benefit of the provisions of Section 1542 of the Civil Code of California which provides as follows:
 
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”
 
As to each and every claim released hereunder, each Lender also waives the benefit of each other similar provision of applicable federal or state law (including without limitation the laws of the state of New York), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto.
 
8.            Miscellaneous .
 
(a)            This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Amendment by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart of this Amendment.
 
(b)            Section and paragraph headings herein are included for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.
 
(c)            This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.
 
(d)            Each Loan Party hereby acknowledges and agrees that this Amendment constitutes a “Loan Document” under the Financing Agreement.  Accordingly, it shall be an Event of Default under the Financing Agreement if any representation or warranty made by a Loan Party under or in connection with this Amendment shall have been untrue, false or misleading in any material respect when made.
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(e)            Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.
 
(f)            The Borrowers will pay on demand all reasonable fees, costs and expenses of the Agents and the Lenders party to this Amendment in connection with the preparation, execution and delivery of this Amendment or otherwise payable under the Financing Agreement, including, without limitation, reasonable fees, disbursements and other charges of counsel to the Agents and the Lenders party to this Amendment.
 
[remainder of page intentionally left blank]
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as of the date set forth on the first page hereof.

 
                       BORROWERS :
   
 
RIMINI STREET, INC.
   
 
By:
/s/ Seth A. Ravin
   
Name: Seth A. Ravin
   
Title: CEO




COLLATERAL AGENT AND ADMINISTRATIVE AGENT :
 
 
CORTLAND CAPITAL MARKET SERVICES LLC
   
 
By:
/s/ Emily Ergang Pappas
   
Name: Emily Ergang Pappas
   
Title: Associate Counsel


ORIGINATION AGENT :
 
 
CB AGENT SERVICES LLC
   
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Partner & COO


LENDER :
   
 
COLBECK CAPITAL MANAGEMENT, LLC
   
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Partner & COO
 

LENDER :
   
 
COLBECK STRATEGIC LENDING MASTER, L.P.
   
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Authorized Signatory



 
LENDER :
   
 
CB PARTICIPATIONS SPV, LLC
   
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Partner & COO

 
NORTH HAVEN CREDIT PARTNERS II, L.P.
 
As LENDER
 
By: MS Credit Partners II GP L.P., its general partner
   
 
By: MS Credit Partners II GP Inc., its general partner
   
 
By:
/s/ Ashwin Krishnan
   
Name: Ashwin Krishnan
   
Title: Managing Director

 
LENDER :
   
 
CION Investment Corp.
   
 
By:
/s/ Michael Reisner
   
Name: Michael Reisner
   
Title: Co-President and Co-Chief Executive Officer

 
LENDER : Alpine Associates, A Limited Partnership
   
   
 
By:
/s/ Gary Moorman
   
Name: Gary Moorman
   
Title: Senior Analyst

 
LENDER : Alpine Heritage, L.P.
   
   
 
By:
/s/ Gary Moorman
   
Name: Gary Moorman
   
Title: Senior Analyst

 
LENDER : Alpine Heritage II, L.P.
   
   
 
By:
/s/ Gary Moorman
   
Name: Gary Moorman
   
Title: Senior Analyst

 
LENDER : Alpine Heritage Offshore Fund Ltd.
   
   
 
By:
/s/ Gary Moorman
   
Name: Gary Moorman
   
Title: Senior Analyst



Annex I
 
SCHEDULE 1.01(A)


Name of Lender
 
Effective Date
Term Loan
Commitment 1
   
Delayed Draw A
Term Loan
Commitment
   
Delayed Draw B
Term Loan
Commitment
   
Total Term
Loan
Commitment
 
North Haven Credit Partners II L.P.
 
$
8,684,210.53
   
$
18,815,789.47
   
$
5,100,000.00
   
$
32,600,000.00
 
CION Investment Corp.
 
$
5,526,315.79
   
$
11,973,684.21
   
$
2,300,000.00
   
$
19,800,000.00
 
Colbeck Capital Management LLC
 
$
0
   
$
0
   
$
17,500,000.00
   
$
17,500,000.00
 
Colbeck Strategic Lending Master, L.P.
 
$
11,052,631.57
   
$
23,947,368.43
   
$
5,100,000.00
   
$
40,100,000.00
 
CB Participations SPV, LLC
 
$
4,736,842.11
   
$
6,842,105.26
   
$
0
   
$
11,578,947.37
 
Alpine Associates, A Limited Partnership
 
$
0
   
$
684,210.53
   
$
0
   
$
684,210.53
 
Alpine Heritage, L.P.
 
$
0
   
$
1,915,789.47
   
$
0
   
$
1,915,789.47
 
Alpine Heritage II, L.P.
 
$
0
   
$
547,368.42
   
$
0
   
$
547,368.42
 
Alpine Heritage Offshore Fund Ltd.
 
$
0
   
$
273,684.21
   
$
0
   
$
273,684.21
 
Total
 
$
30,000,000
   
$
65,000,000
   
$
30,000,000
   
$
125,000,000
 



1 The Effective Date Term Loan Commitments were funded and terminated on the Effective Date.

 
Annex II
 
SCHEDULE 1.01(C)

[see attached Budget]

Outlook            Final           Plan A
Nov-2016
Dec-2016
Jan-2017
Feb-2017
Mar-2017
Apr-2017
with            Judgement -
Cash receipts
           
From Invoicing
13,918
19,375
20,876
24,475
21,462
12,598
From Hartford - Judgement Settlement
           
From AIG
919
434
       
From Travelers
       
697
0
From Scotsdale
           
Colbeck Debt
           
Hartford Debt
           
Equity (Adams Street)
           
Incremental Colbeck Loan
           
Others
Sub-total incoming cash
           
14,837
19,809
20,876
24,475
22,159
12,598
Operating Expenses
           
Payroll & related taxes
6,599
6,654
6,744
6,958
6,793
6,870
Commissions
722
881
2,656
487
649
2,580
Company Bonus (non-commissioned employees)
 
4,103
   
2,896
 
Benefits
677
680
688
688
689
691
Other employee related costs (recruitment, training, etc.)
179
104
129
86
90
106
Contract Labor
1,875
1,942
2,109
1,182
1,774
1,774
Marketing Trade Show Sponsorship
312
283
253
253
149
149
Other Marketing and Advertising
313
343
357
304
304
304
Travel and Entertainment
285
268
266
706
705
268
Facilities / Rent
382
382
398
398
398
398
Computer & Office Supplies, telecom, etc.
459
429
467
451
456
458
Annual Insurance Payment
600
         
SW License Payment - Microsoft
   
225
   
225
Annual SW License Payment - Salesforce
           
Outside Services:
           
Legal
1,023
2,375
2,838
2,849
1,101
248
Audit
278
348
266
167
156
159
Other
544
658
539
486
404
298
Operating Taxes
163
139
749
252
25
559
Other Opex
18
18
18
18
118
18
Other (unidentified)
Sub-total Operating expense payments
           
14,429
19,606
18,701
15,285
16,705
15,103
Capex
100
100
100
270
150
150
Facility
1,690
1,963
1,959
1,953
1,951
1,946
Ongoing cash payments - Interest and fees


Outlook            Final           Plan A
May-2017
Jun-2017
Jul-2017
Aug-2017
Sep-2017
Oct-2017
with            Judgement -
Cash receipts
           
From Invoicing
16,698
26,713
25,980
26,925
14,168
9,859
From Hartford - Judgement Settlement
           
From AIG
           
From Travelers
0
697
0
0
697
0
From Scotsdale
           
Colbeck Debt
           
Hartford Debt
           
Equity (Adams Street)
           
Incremental Colbeck Loan
           
Others
Sub-total incoming cash
           
16,698
27,410
25,980
26,925
14,865
9,859
Operating Expenses
           
Payroll & related taxes
6,813
6,878
6,870
6,767
6,780
6,913
Commissions
907
2,376
2,172
710
971
4,070
Company Bonus (non-commissioned employees)
 
2,931
   
2,948
 
Benefits
691
692
692
693
694
694
Other employee related costs (recruitment, training, etc.)
114
110
110
86
132
107
Contract Labor
1,784
1,784
1,784
1,817
1,857
2,072
Marketing Trade Show Sponsorship
149
149
149
149
149
149
Other Marketing and Advertising
304
304
304
304
304
304
Travel and Entertainment
317
467
668
518
268
269
Facilities / Rent
398
398
398
398
398
398
Computer & Office Supplies, telecom, etc.
458
462
461
464
469
467
Annual Insurance Payment
       
200
 
SW License Payment - Microsoft
   
225
   
225
Annual SW License Payment - Salesforce
         
650
Outside Services:
           
Legal
939
939
939
939
991
1,043
Audit
141
116
109
112
100
84
Other
299
302
305
306
327
335
Operating Taxes
92
39
872
79
32
596
Other Opex
18
18
18
18
18
18
Other (unidentified)
Sub-total Operating expense payments
           
13,424
17,965
16,075
13,361
16,639
18,393
Capex
150
150
250
150
150
150
Facility
1,943
4,935
2,475
2,464
2,453
2,443
Ongoing cash payments - Interest and fees



Outlook            Final           Plan A
Nov-2017
Dec-2017
Jan-2018
Feb-2018
Mar-2018
Apr-2018
with            Judgement -
Cash receipts
           
From Invoicing
17,827
22,642
23,376
29,694
21,405
18,437
From Hartford - Judgement Settlement
           
From AIG
           
From Travelers
0
697
0
0
888
0
From Scotsdale
           
Colbeck Debt
           
Hartford Debt
           
Equity (Adams Street)
           
Incremental Colbeck Loan
           
Others
Sub-total incoming cash
           
17,827
23,339
23,376
29,694
22,293
18,437
Operating Expenses
           
Payroll & related taxes
6,764
6,755
6,864
7,074
6,907
6,977
Commissions
835
970
3,866
549
719
2,749
Company Bonus (non-commissioned employees)
 
2,948
   
2,948
 
Benefits
694
695
706
706
706
706
Other employee related costs (recruitment, training, etc.)
141
90
136
99
102
106
Contract Labor
2,146
2,246
2,427
3,320
4,032
4,032
Marketing Trade Show Sponsorship
149
149
149
149
154
154
Other Marketing and Advertising
304
304
318
359
359
359
Travel and Entertainment
269
269
269
773
802
302
Facilities / Rent
398
398
398
398
398
398
Computer & Office Supplies, telecom, etc.
469
478
473
488
493
492
Annual Insurance Payment
600
         
SW License Payment - Microsoft
   
250
   
250
Annual SW License Payment - Salesforce
           
Outside Services:
           
Legal
1,043
1,043
1,043
1,043
1,140
1,276
Audit
96
104
105
105
131
164
Other
320
319
320
322
325
329
Operating Taxes
138
37
1,053
305
117
864
Other Opex
18
18
19
19
19
19
Other (unidentified)
Sub-total Operating expense payments
           
14,383
16,822
18,395
15,706
19,352
19,175
Capex
150
150
150
-
164
164
Facility
2,431
2,421
2,721
2,396
2,386
2,686
Ongoing cash payments - Interest and fees



Outlook            Final           Plan A
May-2018
Jun-2018
Jul-2018
Aug-2018
Sep-2018
Oct-2018
with            Judgement -
Cash receipts
           
From Invoicing
21,198
43,096
29,033
30,801
22,035
14,831
From Hartford - Judgement Settlement
           
From AIG
           
From Travelers
0
888
0
0
888
0
From Scotsdale
           
Colbeck Debt
           
Hartford Debt
           
Equity (Adams Street)
           
Incremental Colbeck Loan
           
Others
Sub-total incoming cash
           
21,198
43,984
29,033
30,801
22,923
14,831
Operating Expenses
           
Payroll & related taxes
6,891
6,944
6,936
6,852
6,852
6,982
Commissions
859
2,156
1,944
722
976
4,022
Company Bonus (non-commissioned employees)
 
2,959
   
2,959
 
Benefits
706
707
707
707
708
708
Other employee related costs (recruitment, training, etc.)
104
125
122
99
140
120
Contract Labor
4,032
4,032
4,032
4,032
4,032
4,232
Marketing Trade Show Sponsorship
154
154
154
154
154
154
Other Marketing and Advertising
359
359
359
359
359
359
Travel and Entertainment
341
341
276
276
276
277
Facilities / Rent
398
398
398
398
398
398
Computer & Office Supplies, telecom, etc.
496
502
503
501
518
515
Annual Insurance Payment
       
200
 
SW License Payment - Microsoft
   
250
   
250
Annual SW License Payment - Salesforce
         
700
Outside Services:
           
Legal
1,313
1,313
1,313
1,313
1,313
1,313
Audit
147
122
114
118
118
114
Other
330
333
337
339
360
369
Operating Taxes
120
45
1,000
136
53
900
Other Opex
19
19
19
19
19
19
Other (unidentified)
Sub-total Operating expense payments
           
16,269
20,509
18,465
16,025
19,434
21,431
Capex
164
164
264
164
164
164
Facility
2,363
5,075
2,923
2,596
2,581
2,878
Ongoing cash payments - Interest and fees



Outlook            Final           Plan A
Nov-2018
Dec-2018
Jan-2019
Feb-2019
Mar-2019
Apr-2019
with            Judgement -
Cash receipts
           
From Invoicing
29,557
28,078
20,037
44,504
46,294
15,935
From Hartford - Judgement Settlement
           
From AIG
           
From Travelers
0
888
0
0
734
0
From Scotsdale
           
Colbeck Debt
           
Hartford Debt
           
Equity (Adams Street)
           
Incremental Colbeck Loan
           
Others
Sub-total incoming cash
           
29,557
28,966
20,037
44,504
47,028
15,935
Operating Expenses
           
Payroll & related taxes
6,836
6,835
6,988
7,350
7,178
7,248
Commissions
820
1,120
4,731
572
739
2,752
Company Bonus (non-commissioned employees)
 
2,959
   
2,959
 
Benefits
708
709
742
742
742
742
Other employee related costs (recruitment, training, etc.)
164
102
169
102
105
109
Contract Labor
4,412
4,512
4,783
5,925
5,745
5,745
Marketing Trade Show Sponsorship
154
154
154
154
190
190
Other Marketing and Advertising
359
359
373
428
428
428
Travel and Entertainment
277
277
277
907
912
287
Facilities / Rent
398
398
399
399
399
399
Computer & Office Supplies, telecom, etc.
513
531
524
541
546
546
Annual Insurance Payment
600
         
SW License Payment - Microsoft
   
275
   
275
Annual SW License Payment - Salesforce
           
Outside Services:
           
Legal
1,313
1,313
1,313
1,313
1,302
1,290
Audit
114
112
115
115
139
169
Other
355
354
356
358
365
372
Operating Taxes
189
47
1,355
370
122
1,114
Other Opex
19
19
19
19
19
20
Other (unidentified)
Sub-total Operating expense payments
           
17,230
19,801
22,574
19,294
21,891
21,685
Capex
164
164
164
150
150
150
Facility
2,550
2,536
2,833
2,504
2,491
2,787
Ongoing cash payments - Interest and fees



Outlook            Final           Plan A
May-2019
Jun-2019
Jul-2019
Aug-2019
Sep-2019
Oct-2019
with            Judgement -
Cash receipts
           
From Invoicing
28,346
53,811
27,313
35,296
31,755
17,641
From Hartford - Judgement Settlement
           
From AIG
           
From Travelers
0
734
0
0
734
0
From Scotsdale
           
Colbeck Debt
           
Hartford Debt
           
Equity (Adams Street)
           
Incremental Colbeck Loan
           
Others
Sub-total incoming cash
           
28,346
54,545
27,313
35,296
32,489
17,641
Operating Expenses
           
Payroll & related taxes
7,164
7,215
7,204
7,116
7,115
7,232
Commissions
879
2,165
1,950
739
991
4,009
Company Bonus (non-commissioned employees)
 
3,052
   
3,053
 
Benefits
742
742
742
742
742
742
Other employee related costs (recruitment, training, etc.)
107
130
113
102
145
110
Contract Labor
5,745
5,745
5,745
5,745
5,745
5,970
Marketing Trade Show Sponsorship
190
190
190
190
190
190
Other Marketing and Advertising
428
428
428
428
428
428
Travel and Entertainment
371
371
887
887
287
287
Facilities / Rent
399
399
399
399
399
399
Computer & Office Supplies, telecom, etc.
550
553
555
557
562
563
Annual Insurance Payment
       
200
 
SW License Payment - Microsoft
   
275
   
275
Annual SW License Payment - Salesforce
         
750
Outside Services:
           
Legal
1,290
1,290
1,290
1,290
1,290
1,290
Audit
151
126
119
122
122
119
Other
374
378
383
386
407
416
Operating Taxes
214
54
1,141
194
68
1,145
Other Opex
20
20
20
20
20
20
Other (unidentified)
Sub-total Operating expense payments
           
18,625
22,859
21,439
18,917
21,763
23,945
Capex
150
150
250
150
150
150
Facility
2,460
4,732
2,617
2,289
2,274
2,571
Ongoing cash payments - Interest and fees



Outlook            Final           Plan A
Nov-2019
Dec-2019
Jan-2020
Feb-2020
Mar-2020
Apr-2020
with            Judgement -
Cash receipts
           
From Invoicing
35,991
39,150
23,286
48,238
57,859
17,112
From Hartford - Judgement Settlement
           
From AIG
           
From Travelers
0
734
0
0
969
0
From Scotsdale
           
Colbeck Debt
           
Hartford Debt
           
Equity (Adams Street)
           
Incremental Colbeck Loan
           
Others
Sub-total incoming cash
           
35,991
39,884
23,286
48,238
58,828
17,112
Operating Expenses
           
Payroll & related taxes
7,089
7,089
7,218
7,594
7,420
7,491
Commissions
833
1,131
4,708
574
740
2,724
Company Bonus (non-commissioned employees)
 
3,053
   
3,053
 
Benefits
742
742
775
775
775
775
Other employee related costs (recruitment, training, etc.)
177
105
149
102
105
109
Contract Labor
6,250
6,450
6,652
7,798
7,448
7,448
Marketing Trade Show Sponsorship
190
190
190
190
190
190
Other Marketing and Advertising
428
428
443
428
428
428
Travel and Entertainment
287
287
287
974
975
287
Facilities / Rent
399
399
399
399
399
399
Computer & Office Supplies, telecom, etc.
566
575
572
577
583
583
Annual Insurance Payment
600
         
SW License Payment - Microsoft
   
300
   
300
Annual SW License Payment - Salesforce
           
Outside Services:
           
Legal
1,290
1,290
1,290
1,290
1,556
1,821
Audit
119
116
120
120
141
169
Other
403
402
405
408
448
488
Operating Taxes
227
60
1,385
437
124
1,374
Other Opex
20
20
19
19
19
20
Other (unidentified)
Sub-total Operating expense payments
           
19,619
22,337
24,912
21,687
24,404
24,606
Capex
150
150
150
150
150
150
Facility
2,243
2,228
2,525
2,197
2,182
2,478
Ongoing cash payments - Interest and fees



Outlook            Final           Plan A
May-2020
Jun-2020
Jul-2020
Aug-2020
Sep-2020
Oct-2020
with            Judgement -
Cash receipts
           
From Invoicing
38,852
65,708
26,968
38,433
39,282
20,944
From Hartford - Judgement Settlement
           
From AIG
           
From Travelers
0
969
0
0
969
0
From Scotsdale
           
Colbeck Debt
           
Hartford Debt
           
Equity (Adams Street)
           
Incremental Colbeck Loan
           
Others
Sub-total incoming cash
           
38,852
66,677
26,968
38,433
40,251
20,944
Operating Expenses
           
Payroll & related taxes
7,408
7,460
7,447
7,359
7,357
7,472
Commissions
878
2,145
1,934
740
988
3,964
Company Bonus (non-commissioned employees)
 
3,149
   
3,150
 
Benefits
775
775
775
775
775
775
Other employee related costs (recruitment, training, etc.)
107
135
113
102
145
110
Contract Labor
7,448
7,448
7,448
7,448
7,448
7,698
Marketing Trade Show Sponsorship
190
190
190
190
190
190
Other Marketing and Advertising
428
428
428
428
428
428
Travel and Entertainment
396
396
287
287
287
287
Facilities / Rent
399
399
399
399
399
399
Computer & Office Supplies, telecom, etc.
587
588
591
594
600
600
Annual Insurance Payment
       
200
 
SW License Payment - Microsoft
   
300
   
300
Annual SW License Payment - Salesforce
         
800
Outside Services:
           
Legal
1,821
1,821
1,821
1,821
1,821
1,821
Audit
151
126
119
122
122
119
Other
491
494
499
502
523
532
Operating Taxes
313
61
1,253
241
80
1,334
Other Opex
20
20
20
20
20
20
Other (unidentified)
Sub-total Operating expense payments
           
21,413
25,637
23,623
21,028
24,534
26,851
Capex
150
150
250
150
150
150
Facility
70
8
319
7
6
318
Ongoing cash payments - Interest and fees



Outlook            Final           Plan A
Nov-2020
Dec-2020
with            Judgement -
Cash receipts
   
From Invoicing
42,785
43,578
From Hartford - Judgement Settlement
   
From AIG
   
From Travelers
0
969
From Scotsdale
   
Colbeck Debt
   
Hartford Debt
   
Equity (Adams Street)
   
Incremental Colbeck Loan
   
Others
Sub-total incoming cash
   
42,785
44,547
Operating Expenses
   
Payroll & related taxes
7,329
7,325
Commissions
832
1,126
Company Bonus (non-commissioned employees)
 
3,150
Benefits
775
775
Other employee related costs (recruitment, training, etc.)
187
105
Contract Labor
8,048
8,248
Marketing Trade Show Sponsorship
190
190
Other Marketing and Advertising
428
428
Travel and Entertainment
287
287
Facilities / Rent
399
399
Computer & Office Supplies, telecom, etc.
603
610
Annual Insurance Payment
600
 
SW License Payment - Microsoft
   
Annual SW License Payment - Salesforce
   
Outside Services:
   
Legal
1,821
1,821
Audit
119
116
Other
519
519
Operating Taxes
257
70
Other Opex
20
20
Other (unidentified)
Sub-total Operating expense payments
   
22,413
25,189
Capex
150
150
Facility
5
5
Ongoing cash payments - Interest and fees

 

Annex III
 
SCHEDULE 2.03
 
AMORTIZATION SCHEDULE

Commencing on November 1, 2016, the outstanding principal of the Term Loan shall be repayable on the first Business Day of every month, as set forth below:
 
Month
 
Amortization Payment
 
November 2016
 
$
250,000
 
December 2016
 
$
250,000
 
January 2017
 
$
500,000
 
February 2017
 
$
500,000
 
March 2017
 
$
500,000
 
April 2017
 
$
500,000
 
May 2017
 
$
500,000
 
June 2017
 
$
500,000
 
July 2017
 
$
1,000,000
 
August 2017
 
$
1,000,000
 
September 2017
 
$
1,000,000
 
October 2017
 
$
1,000,000
 
November 2017
 
$
1,000,000
 
December 2017
 
$
1,000,000
 
January 2018
 
$
1,000,000
 
February 2018
 
$
1,000,000
 
March 2018
 
$
1,000,000
 
April 2018
 
$
1,000,000
 
May 2018
 
$
1,000,000
 
June 2018
 
$
1,000,000
 
July 2018
 
$
1,250,000
 
August 2018
 
$
1,250,000
 
September 2018
 
$
1,250,000
 
October 2018
 
$
1,250,000
 
November 2018
 
$
1,250,000
 
December 2018
 
$
1,250,000
 
January 2019
 
$
1,250,000
 
February 2019
 
$
1,250,000
 
March 2019
 
$
1,250,000
 
April 2019
 
$
1,250,000
 
May 2019
 
$
1,250,000
 
June 2019
 
$
1,250,000
 
July 2019
 
$
1,250,000
 
August 2019
 
$
1,250,000
 
September 2019
 
$
1,250,000
 
October 2019
 
$
1,250,000
 
November 2019
 
$
1,250,000
 
December 2019
 
$
1,250,000
 
January 2020
 
$
1,250,000
 
February 2020
 
$
1,250,000
 
March 2020
 
$
1,250,000
 
April 2020
 
$
1,250,000
 
May 2020
 
$
1,250,000
 
June 2020
 
$
1,250,000
 


provided, that if the Borrowers fail to timely comply with the provision of Section 7.01(t) of the Financing Agreement, the outstanding principal of the Term Loan shall then be repayable on the first Business Day of every month after such failure, as set forth below:

Month
 
Amortization Payment
 
November 2016
 
$
250,000
 
December 2016
 
$
250,000
 
January 2017
 
$
500,000
 
February 2017
 
$
500,000
 
March 2017
 
$
500,000
 
April 2017
 
$
500,000
 
May 2017
 
$
500,000
 
June 2017
 
$
1,750,000
 
July 2017
 
$
2,250,000
 
August 2017
 
$
2,250,000
 
September 2017
 
$
2,250,000
 
October 2017
 
$
2,250,000
 
November 2017
 
$
2,250,000
 
December 2017
 
$
2,250,000
 
January 2018
 
$
2,250,000
 
February 2018
 
$
2,250,000
 
March 2018
 
$
2,250,000
 
April 2018
 
$
2,250,000
 
May 2018
 
$
2,250,000
 
June 2018
 
$
2,250,000
 
July 2018
 
$
2,500,000
 
August 2018
 
$
2,500,000
 
September 2018
 
$
2,500,000
 
October 2018
 
$
2,500,000
 
November 2018
 
$
2,500,000
 
December 2018
 
$
2,500,000
 
January 2019
 
$
2,500,000
 
February 2019
 
$
2,500,000
 
March 2019
 
$
2,500,000
 
April 2019
 
$
2,500,000
 
May 2019
 
$
2,500,000
 
June 2019
 
$
2,500,000
 
July 2019
 
$
2,500,000
 
August 2019
 
$
2,500,000
 
September 2019
 
$
2,500,000
 
October 2019
 
$
2,500,000
 
November 2019
 
$
2,500,000
 
December 2019
 
$
2,500,000
 
January 2020
 
$
2,500,000
 
February 2020
 
$
2,500,000
 
March 2020
 
$
2,500,000
 
April 2020
 
$
2,500,000
 
May 2020
 
$
2,500,000
 
June 2020
 
$
2,500,000
 


Annex IV
 
SCHEDULE 6.01(G)
 
Prior to the 2015 audit, the Parent changed auditors from BDO USA, LLP  to KPMG. The financial statements originally audited by BDO for 2014 will be replaced with the 2014 financial statements audited by KPMG.  As a consequence of KPMG’s  re-audit of 2014, certain adjustments to the BDO audited financial statements are expected.  The adjustments, for the most part, are due to changes in estimates and differing opinions of the two audit groups as pertains to certain accounting policies.  The differences are not deemed to be significant and the Parent will comply with the views of its current auditors.
 





Exhibit 10.29

THIRD AMENDMENT
TO FINANCING AGREEMENT
 
THIRD AMENDMENT, dated as of May 8, 2017 (this “ Amendment ”), to the Financing Agreement, dated as of June 24, 2016 (as amended, supplemented, replaced or otherwise modified from time to time, the “ Financing Agreement ”), by and among Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” thereunder, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as thereinafter defined), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party hereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC (“ Cortland ”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“ Colbeck ”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”).
 
WHEREAS, the Borrowers, the Guarantors, the Agents and the Required Lenders wish to amend certain terms and provisions of the Financing Agreement as hereinafter set forth.
 
NOW THEREFORE, in consideration of the premises and other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:
 
1.            Definitions .  All terms used herein that are defined in the Financing Agreement and not otherwise defined herein shall have the meanings assigned to them in the Financing Agreement.
 
2.            Amendments .
 
(a)            New Definitions .  Section 1.01 of the Financing Agreement is hereby amended by adding the following definitions in appropriate alphabetical order:
 
““ Third Amendment ” means the Third Amendment to Financing Agreement, dated as of May , 2017, by and among the Agents, the Lenders party thereto and the Loan Parties.”
 
““ Third Amendment Effective Date ” means the date on which each of the conditions precedent set forth in Section 4 of the Third Amendment have been either satisfied or waived.”
 
““ Total Budgeted Invoicing ” means, with respect to the Parent and its Subsidiaries for any period, the aggregate dollar amount of invoices set forth in the Budget that are budgeted to be issued to customers during such period.

 
““ Total Budgeted Commissions ” means, with respect to the Parent and its Subsidiaries for any period, the aggregate dollar amount of commissions set forth in the Budget that are budgeted to paid during such period.
 
““ Total Commissions Paid ” means, with respect to the Parent and its Subsidiaries for any period, the aggregate dollar amount of commissions actually paid during such period.
 
““ Total Invoicing ” means, with respect to the Parent and its Subsidiaries for any period, the aggregate dollar amount of invoices actually issued to customers during such period.
 
(b)            Existing Definitions .
 
(i)            The definition of “Budget” in Section 1.01 of the Financing Agreement is hereby amended and restated its entirety to read as follows:
 
““ Budget ” means, collectively, the consolidated cash requirement forecasts, cash flow statements, statements of operations and cash availability schedules in the form attached hereto as Schedule 1.01(C), which are (a) prepared by or on behalf of the Loan Parties on a monthly basis (for the months from the Second Amendment Effective Date through the Final Maturity Date), and (b) delivered by the Loan Parties to the Agents and the Lenders (i) on or before the Third Amendment Effective Date pursuant to Section 4 of the Third Amendment and (ii) each quarter thereafter pursuant to Section 7.01(a)(xx) hereto (or more frequently should the Agents so elect), in each case, which shall be in substance satisfactory and approved by the Origination Agent at the time of delivery thereof.”
 
(ii)            The definition of “Budget Compliance Report” in Section 1.01 of the Financing Agreement is hereby amended and restated its entirety to read as follows:
 
““ Budget Compliance Report ” means a report, in form and substance reasonably satisfactory to the Origination Agent, that sets forth, through the end of the immediately preceding month, a comparison of (a) (i) the actual cash receipts for the immediately preceding one month period to the projected cash receipts for such one month period, (ii) the actual cash disbursements, on a line item basis, for the immediately preceding one month period to the projected cash disbursements, on a line item basis, for such one month period, and (iii) the actual Total Invoicing for the immediately preceding two month period to the projected Total Budgeted Invoicing for such two month period, and (b) (i) the actual cash receipts for the immediately preceding two month period to the projected cash receipts for such two month period, (ii) the actual cash disbursements, on a line item basis, for the immediately preceding two month period to the projected cash disbursements, on a line item basis, for such two month period, and (iii) the actual Total Invoicing for the immediately preceding two month period to the projected Total Budgeted Invoicing for such two month period, each as set forth in the Budget for such period, together with a statement as to whether a Material Adverse Deviation has occurred or not.”
2

 
(iii)            The definition of “Extraordinary Receipts” in Section 1.01 of the Financing Agreement is hereby amended by adding the following additional sentence at the end of such definition to read as follows:
 
“For the avoidance of doubt, the Net Cash Proceeds in respect of the Travelers settlement (which, for the sake of clarity, may exclude up to $579,500 of fees paid to AON in connection with such settlement) are considered to be Extraordinary Receipts.”
 
(iv)            The definition of “Material Adverse Deviation” in Section 1.01 of the Financing Agreement is hereby amended and restated its entirety to read as follows:
 
““ Material Adverse Deviation ” means, as of any date of determination, the occurrence of any of the following: (i) actual cash receipts, in the aggregate, for any two month test period on a rolling basis are less than ninety-five percent (95%) of the amount projected in the Budget for such two month period, (ii) actual cash disbursements, on a line item basis for any two month test period on a rolling basis exceed one hundred ten percent (110%) of the amount projected for such line item in the Budget for such two month period; provided , that this clause (ii) shall not be breached if (x) the aggregate amount of overages for line items (excluding the commission line item) exceeding one hundred ten percent (110%) of the amount projected for all such line items (excluding the commission line item) in the Budget is less than $500,000 for such two month period, (y) the aggregate amount of actual cash disbursements for such two month period do not exceed one hundred five percent (105%) of the aggregate amount projected for cash disbursements in the Budget for such two month period and (z) the aggregate amount of Total Commissions Paid for such two month period is not more than $2,000,000 in excess of Total Budgeted Commissions for such two month period or (iii) if the Borrower fails to timely comply with Section 7.01(t), actual Total Invoicing, in the aggregate, for any two month test period on a rolling basis is less than ninety-five percent (95%) of the amount projected for Total Budgeted Invoicing in the Budget for such two month period.”
 
(v)            The definition of “Permitted Indebtedness” in Section 1.01 of the Financing Agreement is hereby amended by amending and restating clause (m) therein in its entirety to read as follows:
 
“(m)            Indebtedness of the Loan Parties and their Domestic Subsidiaries with respect to letters of credit in an aggregate principal amount at any time outstanding not to exceed (i) $1,500,000 for 180 days following the Third Amendment Effective Date and (ii) $1,250,000 at any time thereafter; and;”
 
(vi)            The definition of “Permitted Liens” in Section 1.01 of the Financing Agreement is hereby amended by amending and restating clause (r) therein in its entirety to read as follows:
 
“(r)            Liens on cash collateral on deposit in an Excluded Account of the type described in clause (c) of the definition of Excluded Account in an aggregate amount not to exceed (i) $1,500,000 for 180 days following the Third Amendment Effective Date and (ii) $1,250,000 at any time thereafter, in each case at any time outstanding solely securing Indebtedness permitted by clause (m) of the definition of Permitted Indebtedness; and”
3

 
(c)            Section 2.05(c) (Mandatory Prepayment) .  Section 2.05(c)(vi) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(vi)            Concurrently with the delivery to the Agents and the Lenders of unaudited quarterly financial statements pursuant to Section 7.01(a)(ii) for each fiscal quarter of the Parent and its Subsidiaries, commencing with the delivery to the Agents and the Lenders of the financial statements for the fiscal quarter ended March 31, 2017 or, if such financial statements are not delivered to the Agents and the Lenders on the date such statements are required to be delivered pursuant to Section 7.01(a)(ii), on the date such statements are required to be delivered to the Agents and the Lenders pursuant to Section 7.01(a)(ii), the Borrowers shall prepay the outstanding principal amount of the Loans in accordance with Section 2.05(d) in an amount equal to 75% of the Excess Cash Flow of the Parent and its Subsidiaries for such fiscal quarter.  Notwithstanding the foregoing, the Borrower shall be required to, and hereby agrees that it shall, prepay the outstanding principal amount of the Loans within five (5) Business Days after the Third Amendment Effective Date in the amount of $6,500,000, which shall satisfy the Excess Cash Flow prepayment required to be made for the fiscal quarter ended March 31, 2017; which prepayment, for the avoidance of doubt, shall not be subject to any Applicable Premium.”
 
(d)            Section 7.01(a) (Reporting Requirements) .  Section 7.01(a)(i) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(i)            as soon as available, and in any event within 20 days after the end of each fiscal month of the Parent and its Subsidiaries (x) commencing with the first fiscal month of the Parent and its Subsidiaries ending after the Effective Date, internally prepared consolidated balance sheets, statements of operations and statements of cash flows as at the end of such fiscal month, and for the period commencing at the end of the immediately preceding Fiscal Year and ending with the end of such fiscal month, setting forth in each case in comparative form the figures for the corresponding date or period set forth in (A) the financial statements for the immediately preceding Fiscal Year, and (B) the Projections, all in reasonable detail and certified by an Authorized Officer of the Parent as fairly presenting, in all material respects, the financial position of the Parent and its Subsidiaries as at the end of such fiscal month and the results of operations and cash flows of the Parent and its Subsidiaries for such fiscal month and for such year-to-date period, in accordance with GAAP (except those exceptions set forth in such financial statements that are reasonably acceptable to the Origination Agent) applied in a manner consistent with that of the most recent audited financial statements furnished to the Agents and the Lenders, subject to the absence of footnotes and normal year-end adjustments and (y) commencing with the first fiscal month of the Parent and its Subsidiaries ending after the Second Amendment Effective Date a report, in form and substance satisfactory to the Origination Agent, setting forth (A) all financial advisors, investment bankers, legal counsel, consultants and other advisors that have been retained and/or paid by the Loan Parties during such month and (B) the aggregate amount of fees and expenses paid by the Loan Parties to such advisors during such month;”
4

 
(e)            Section 7.01(a) (Reporting Requirements) .  Section 7.01(a)(iii) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(iii)            as soon as available, and in any event (x) for the Fiscal Year ended on December 31, 2015, by December 15, 2016, (y) for the Fiscal Year ended on December 31, 2016, by August 31, 2017 and (z) for each Fiscal Year ending thereafter, 120 days after the end of each Fiscal Year of the Parent and its Subsidiaries, consolidated and consolidating balance sheets, statements of operations and statements of cash flows of the Parent and its Subsidiaries as at the end of such Fiscal Year, setting forth in each case in comparative form the figures for the corresponding date or period set forth in (A) the financial statements for the immediately preceding Fiscal Year, and (B) the Projections, all in reasonable detail and prepared in accordance with GAAP, and accompanied by a report and an opinion, prepared in accordance with generally accepted auditing standards, of independent certified public accountants of recognized standing selected by the Parent and reasonably satisfactory to the Origination Agent (it being agreed that, as of the Effective Date, any of the “Big Four” accounting firms are reasonably satisfactory to the Origination Agent) (which opinion shall be without (1) a “going concern” or like qualification or exception, (2) any qualification or exception as to the scope of such audit, or (3) any qualification which relates to the treatment or classification of any item and which, as a condition to the removal of such qualification, would require an adjustment to such item, the effect of which would be to cause any noncompliance with the provisions of Section 7.03);”
 
(f)            Section 7.01(a) (Reporting Requirements) .  Section 7.01(a)(v) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(v)            (x) as soon as available and in any event within 20 days after the end of each fiscal month of the Parent and its Subsidiaries, commencing with the first fiscal month of the Parent and its Subsidiaries ending after the Effective Date, reports in form and detail reasonably satisfactory to the Origination Agent and certified by an Authorized Officer of the Administrative Borrower as being accurate and complete in all material respects (A)  listing all Accounts Receivable of the Loan Parties as of such day, which shall include the amount and age of each such Account Receivable, showing separately those which are more than 30, 60, 90 and 120 days past due and a description of all known Liens, set-offs, defenses and counterclaims with respect thereto, together with a reconciliation of such schedule with the schedule delivered to the Agents pursuant to this clause (v)(A) for the immediately preceding fiscal month, and such other information as the Origination Agent may reasonably request, (B) listing all accounts payable of the Loan Parties as of each such 30, 60, 90 and 120 days past due which shall include the amount and age of each such account payable, and such other information as the Origination Agent may reasonably request and (C) listing all Customer Prepayments received by the Loan Parties for the immediately preceding fiscal month and (y) as soon as available and in any event within 10 days after the end of each fiscal month of the Parent and its Subsidiaries, commencing with the first fiscal month of the Parent and its Subsidiaries ending after the Third Amendment Effective Date, a draft flash report of the information required to be delivered pursuant to clause (x) of this Section 7.01(a)(v);”
5

 
(g)            Section 7.01(a) (Reporting Requirements) .  Section 7.01(a)(xiii) of the Financing Agreement is hereby amended by replacing the reference therein to “5 days” with “5 Business Days ”.
 
(h)            Section 7.01(a) (Reporting Requirements) .  Section 7.01(a)(xx) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(xx)            on or about the twentieth (20th) day after the end of each fiscal quarter of the Parent and its Subsidiaries, commencing with the first fiscal quarter of the Parent and its Subsidiaries ending after the Third Amendment Effective Date, a Budget for the months from the Second Amendment Effective Date through the Final Maturity Date, prepared in form and substance satisfactory to the Origination Agent, which Budget, when delivered and as so updated, shall be (1) consistent with the Budget delivered to the Agents on or prior to the Third Amendment Effective Date, (2) believed by the Loan Parties at the time furnished to be reasonable, (3) prepared on a reasonable basis and in good faith, and (4) based on assumptions believed by the Loan Parties to be reasonable at the time made and upon the best information then reasonably available to the Loan Parties, and shall be accompanied by a certificate of an Authorized Officer of the Administrative Borrower certifying as to the matters set forth in subclauses (1), (2), (3) and (4) above; provided , that such updated Budget must be approved by the Origination Agent;”
 
(i)            Section 7.01(a) (Reporting Requirements) .  Section 7.01(a)(xxi) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(xxi)            as soon as available and in any event not later than 5:00 p.m. (Eastern time) on the 20 th day of each month, a Budget Compliance Report;”
 
(j)            Section 7.01(a) (Reporting Requirements) .  Section 7.01(a)(xxii) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(xxii) as soon as available and in any event by Wednesday of every week commencing with the first Wednesday after the Third Amendment Effective Date, an updated 13-week cash flow forecast of the Parent and its Subsidiaries, in form and substance reasonably satisfactory to the Agents, and consistent with the form attached as Schedule 1.01(D) (including, without limitation, similar line items as set forth in the Budget attached as Schedule 1.01(C)); and”
 
(k)            Section 7.01(a) (Reporting Requirements) .  The following new Section 7.01(a)(xxiii) of the Financing Agreement is hereby added to read as follows:
 
“(xxiii) promptly upon request, such other information concerning the condition or operations, financial or otherwise, of any Loan Party as the Origination Agent may from time to time may reasonably request.”
 
(l)            Section 7.01(a) (Reporting Requirements) .  Section 7.01(a) of the Financing Agreement is hereby amended to add the following new additional clause at the end thereof to read as follows:
6

 
“For purposes of this Section 7.01(a), for any reporting requirement deadline which does not fall on a Business Day, the deadline for such reporting requirement shall be the next Business Day immediately following such deadline.”
 
(m)            Section 7.01(o) (Lender Meetings and Discussions) .  Section 7.01(o) of the Financing Agreement is hereby amended by adding the additional clause (iii) therein to read as follows:
 
“(iii)            On each Thursday(or such other day as the Required Lenders and the Parent shall mutually agree upon) of each week commencing with the first Thursday after the Third Amendment Effective Date, senior officers of the Parent shall have a discussion (either via telephone or in-person meeting) with representatives of the Agents and the Lenders with respect to the most recent 13-week cash flow forecast of the Parent and its Subsidiaries that was delivered to the Agent and the Lenders pursuant to Section 7.01(a)(xxii).”
 
(n)            Section 7.01(t) (Equity Raise) .  Section 7.01(t) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(t)            Equity Raise .  On or prior to August 31, 2017, consummate one or more Equity Issuances after the Second Amendment Effective Date (other than the Second Amendment Equity Issuance) that result in Net Cash Proceeds of at least $35,000,000 in the aggregate; which cash proceeds shall be applied in accordance with Section 2.05(c)(iii).”
 
(o)            Section 8.01 (Cash Management Agreements) .  Section 8.01(c) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:
 
“(c) Not less than five (5) Business Days prior to the end of each month, the Parent shall deliver a certificate to the Agents, detailing the Loan Parties’ estimated aggregate customer billed invoices and the Loan Parties’ exact cash disbursement needs for the succeeding month (each, a “ Monthly Cash Disbursement Report ”).  Subject to the Origination Agent’s timely receipt and satisfaction with the Monthly Cash Disbursement Report, so long as no Event of Default has occurred and is continuing, the Origination Agent will direct the Collateral Agent in writing to direct, and the Collateral Agent shall direct, the Cash Management Bank to transfer the cash disbursement needs set forth in each Monthly Cash Disbursement Report from the Blocked Collection Account to a Cash Management Account that is an operating or disbursement account of the Loan Parties on or prior to the 5th day of such month (or, if such day does not fall on a Business Day, the Business Day immediately prior to such day); provided , that the Origination Agent may, in its discretion, direct the Collateral Agent to direct the Cash Management Bank to transfer additional disbursements from the Blocked Collection Account to an operating or disbursement account of the Loan Parties at additional times and in additional amounts.  Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent may direct the Cash Management Bank to transfer funds in any Cash Management Account to the Administrative Agent’s Account.”
7

 
(p)            Schedule 1.01(C) (Budget) .  Schedule 1.01(C) to the Financing Agreement is hereby amended and restated in its entirety as set forth on Annex I to this Amendment.
 
(q)            Schedule 1.01(D) (13 Week Cash Flow) .  A new Schedule 1.01(D) to the Financing Agreement is hereby added as set forth on Annex II to this Amendment.
 
(r)            Schedule 2.03 (Amortization) .  Schedule 2.03 to the Financing Agreement is hereby amended and restated in its entirety as set forth on Annex III to this Amendment.  Notwithstanding anything to the contrary contained in this Amendment, the Borrower shall be required to, and hereby agrees that it shall, in addition to the prepayment of the Loans required pursuant to Section 2.05(c)(vi) of the Financing Agreement, pay the outstanding principal amount of the Loans within five (5) Business Days after the Third Amendment Effective Date in the amount of $1,250,000.
 
3.            Representations and Warranties .  Each Loan Party hereby represents and warrants to the Agents and the Lenders as follows:
 
(a)            Representations and Warranties; No Event of Default .  The representations and warranties herein, in Article VI of the Financing Agreement and in each other Loan Document, certificate or other writing delivered by or on behalf of the Loan Parties to any Agent or any Lender pursuant to the Financing Agreement or any other Loan Document on or prior to the Third Amendment Effective Date are true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the Third Amendment Effective Date as though made on and as of such date (unless such representations or warranties are stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date), and no Default or Event of Default has occurred and is continuing as of the Third Amendment Effective Date or would result from this Amendment becoming effective in accordance with its terms.
 
(b)            Organization, Good Standing, Etc .  Each Loan Party (i) is a corporation, limited liability company or limited partnership duly organized, validly existing and in good standing under the laws of the state or jurisdiction of its organization, (ii) has all requisite corporate (or equivalent) power and authority to conduct its business as now conducted and as presently contemplated and to execute this Amendment and deliver each Loan Document to which it is a party, and to consummate the transactions contemplated hereby and by the Financing Agreement, and (iii) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary, except (solely for the purposes of this subclause (iii)) where the failure to be so qualified and in good standing could reasonably be expected to have a Material Adverse Effect.
8

 
(c)            Authorization; Etc .  The execution, delivery and performance of this Amendment by the Loan Parties, and the performance of the Financing Agreement, (i) have been duly authorized by all necessary corporate (or equivalent) action, (ii) do not and will not contravene (A) any of its Governing Documents, (B) any applicable material Requirement of Law to the extent such contravention would adversely affect the material operations of the Borrowers or (C) any Contractual Obligation binding on or otherwise affecting it or any of its properties, (iii) do not and will not result in or require the creation of any Lien (other than pursuant to any Loan Document or any other Permitted Lien) upon or with respect to any of its properties, and (iv) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to its operations or any of its properties, except for any violation referred to in clause (ii)(C) or clause (iv) above which could not reasonably be expected to have a Material Adverse Effect.
 
(d)            Governmental Approvals .  No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required in connection with the due execution, delivery and performance by any Loan Party of this Amendment or any other Loan Document to which it is or will be a party other than filings and recordings with respect to Collateral that were made, or otherwise delivered to the Collateral Agent for filing or recordation, on the Effective Date.
 
(e)            Budget .  The Budget, when delivered shall be believed by the Loan Parties at the time furnished to be reasonable, shall have been prepared on a reasonable basis and in good faith by the Loan Parties, and shall have been based on assumptions believed by the Loan Parties to be reasonable at the time made and upon the best information then reasonably available to the Loan Parties, and the Loan Parties shall not be aware of any facts or information that would lead it to believe that such Budget is incorrect or misleading in any material respect.
 
4.            Conditions to Effectiveness .  This Amendment shall become effective only upon satisfaction in full, in a manner reasonably satisfactory to the Origination Agent, of the following conditions precedent (the first date upon which all such conditions shall have been satisfied or waived being herein called the “ Third Amendment Effective Date ”):
 
(a)            The Agents shall have received this Amendment, duly executed by the Loan Parties, each Agent and the Required Lenders.
 
(b)            The representations and warranties contained in this Amendment and in Article VI of the Financing Agreement and in each other Loan Document shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the Third Amendment Effective Date as though made on and as of such date (unless such representations or warranties are stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date).
9

 
(c)            No Default or Event of Default shall have occurred and be continuing on the Third Amendment Effective Date or result from this Amendment becoming effective in accordance with its terms.
 
(d)            The Agents shall have received a copy of the Budget, together with a certificate of an Authorized Officer of the Administrative Borrower stating that such Budget has been prepared on a reasonable basis and in good faith and is based on assumptions believed by the Loan Parties to be reasonable at the time made and from the best information then available to the Loan Parties, which Budget shall be in form and substance satisfactory to the Agents.
 
(e)            The Borrowers shall have paid on or before the Third Amendment Effective Date all fees, costs and expenses then payable pursuant to Section 2.06 and Section 12.04, including, without limitation, the reasonable fees and expenses of Schulte Roth & Zabel LLP, counsel to the Origination Agent.
 
5.            Continued Effectiveness of the Financing Agreement and Other Loan Documents .  Each Loan Party hereby (i) acknowledges and consents to this Amendment, (ii) confirms and agrees that the Financing Agreement and each other Loan Document to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that on and after the Third Amendment Effective Date all references in any such Loan Document to “the Financing Agreement”, the “Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Financing Agreement shall mean the Financing Agreement as amended or modified by this Amendment, and (iii) confirms and agrees that to the extent that any such Loan Document purports to assign or pledge to the Collateral Agent for the benefit of the Agents and the Lenders, or to grant to the Collateral Agent for the benefit of the Agents and the Lenders a security interest in or Lien on, any Collateral as security for the Obligations of the Loan Parties from time to time existing in respect of the Financing Agreement (as amended hereby) and the other Loan Documents, such pledge, assignment and/or grant of the security interest or Lien is hereby ratified and confirmed in all respects.  This Amendment does not and shall not affect any of the obligations of the Loan Parties, other than as expressly provided herein, including, without limitation, the Loan Parties’ obligations to repay the Loans in accordance with the terms of Financing Agreement, or the obligations of the Loan Parties under any Loan Document to which they are a party, all of which obligations shall remain in full force and effect.  Except as expressly provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agents or any Lender under the Financing Agreement or any other Loan Document, nor constitute a waiver of any provision of the Financing Agreement or any other Loan Document.
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6.            Release .  Each Loan Party hereby acknowledges and agrees that, on the Third Amendment Effective Date: (a) neither it nor any of its Affiliates has any claim or cause of action arising on or prior to the Third Amendment Effective Date against any Agent or any Lender (or any of their respective Affiliates, officers, directors, employees, attorneys, consultants or agents) under the Financing Agreement and the other Loan Documents and (b) each Agent and each Lender has, prior to the Third Amendment Effective Date, properly performed and satisfied in a timely manner all of its obligations prior to the Third Amendment Effective Date to such Loan Party and its Affiliates under the Financing Agreement and the other Loan Documents.  Notwithstanding the foregoing, the Agents and the Lenders wish (and each Loan Party agrees) to eliminate, to the fullest extent permitted under applicable law, any possibility that any past conditions, acts, omissions, events or circumstances which occurred prior to the Third Amendment Effective Date would impair or otherwise adversely affect any of the Agents’ and the Lenders’ rights, interests, security and/or remedies under the Financing Agreement and the other Loan Documents.  Accordingly, for and in consideration of the agreements contained in this Amendment and other good and valuable consideration, each Loan Party (for itself and its Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the “ Releasors ”) does hereby fully, finally, unconditionally and irrevocably release and forever discharge each Agent, each Lender and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (collectively, the “ Released Parties ”) from any and all debts, claims, obligations, damages, costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, arising on or prior to the Third Amendment Effective Date, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Releasor has heretofore had or now or hereafter can, shall or may have against any Released Party by reason of any act, omission or thing whatsoever done or omitted to be done on or prior to the Third Amendment Effective Date and arising out of, connected with or related in any way to this Amendment, the Financing Agreement or any other Loan Document, or any act, event or transaction on or prior to the Third Amendment Effective Date related or attendant thereto, or the agreements of any Agent or any Lender contained therein, or the possession, use, operation or control of any of the assets of each Loan Party, or the making of any Loans, or the management of such Loans or the Collateral, in each case, on or prior to the Third Amendment Effective Date.
 
As to each and every claim released hereunder, each Loan Party hereby represents that it has received the advice of legal counsel with regard to the releases contained herein, and having been so advised, specifically waives the benefit of the provisions of Section 1542 of the Civil Code of California which provides as follows:
 
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”
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As to each and every claim released hereunder, each Loan Party also waives the benefit of each other similar provision of applicable federal or state law (including without limitation the laws of the state of New York), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto.
 
Each Loan Party acknowledges that it may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or causes of action arising on or prior to the Third Amendment Effective Date and agrees that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts.  Each Loan Party understands, acknowledges and agrees that to the extent permitted under applicable law, the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.
 
Each Loan Party, for itself and on behalf of its successors, assigns, and officers, directors, employees and agents, and any Person acting for or on behalf of, or claiming through it, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of the Released Parties above that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) the Released Parties on the basis of any claim released, remised and discharged by such Person pursuant to this Section 6.  Each Loan Party further agrees that it shall not dispute the validity or enforceability of the Financing Agreement or any of the other Loan Documents or any of its obligations thereunder, or the validity, priority, enforceability or the extent of Collateral Agent’s Lien on any item of Collateral under the Financing Agreement or the other Loan Documents.  If any Loan Party or any of its respective successors, assigns, or officers, directors, employees and agents, or any Person acting for or on behalf of, or claiming through it violate the foregoing covenant, such Person, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as the Released Parties may sustain as a result of such violation, all reasonable attorneys’ fees and costs incurred by the Released Parties as a result of such violation.
 
Each Lender hereby acknowledges and agrees that, on the Third Amendment Effective Date: (a) neither it nor any of its Affiliates has any claim or cause of action arising on or prior to the Third Amendment Effective Date against Cortland Capital Market Services LLC, Colbeck Capital Management, LLC or CB Agent Services LLC (or any of their respective Affiliates, officers, directors, employees, attorneys, consultants or agents) under the Financing Agreement and the other Loan Documents and (b) each of Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and their respective Affiliates has, prior to the Third Amendment Effective Date, properly performed and satisfied in a timely manner all of its obligations prior to the Third Amendment Effective Date to such Lender and its Affiliates under the Financing Agreement and the other Loan Documents.  Notwithstanding the foregoing, Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and their respective Affiliates wish (and each Lender agrees) to eliminate, to the fullest extent permitted under applicable law, any possibility that any past conditions, acts, omissions, events or circumstances which occurred prior to the Third Amendment Effective Date would give rise to any claim by any Lender against Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and their respective Affiliates under the Financing Agreement and the other Loan Documents.  Accordingly, for and in consideration of the agreements contained in this Amendment and other good and valuable consideration, each Lender (for itself and its Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the “ Lender Releasors ”) does hereby fully, finally, unconditionally and irrevocably release and forever discharge Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (collectively, the “ Colbeck/Cortland Released Parties ”) from any and all debts, claims, obligations, damages, costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, arising on or prior to the Third Amendment Effective Date, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Lender Releasor has heretofore had or now or hereafter can, shall or may have against any Colbeck/Cortland Released Party by reason of any act, omission or thing whatsoever done or omitted to be done on or prior to the Third Amendment Effective Date and arising out of, connected with or related in any way to this Amendment, the Financing Agreement or any other Loan Document, or any act, event or transaction on or prior to the Third Amendment Effective Date related or attendant thereto, or the agreements of Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC or any of their respective Affiliates contained therein, or the possession, use, operation or control of any of the assets of each Loan Party, or the making of any Loans, or the management of such Loans or the Collateral, in each case, on or prior to the Third Amendment Effective Date.
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As to each and every claim released hereunder, each Lender hereby represents that it has received the advice of legal counsel with regard to the releases contained herein, and having been so advised, specifically waives the benefit of the provisions of Section 1542 of the Civil Code of California which provides as follows:
 
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”
 
As to each and every claim released hereunder, each Lender also waives the benefit of each other similar provision of applicable federal or state law (including without limitation the laws of the state of New York), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto.
 
7.            Miscellaneous .
 
(a)            This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Amendment by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart of this Amendment.
13

 
(b)            Section and paragraph headings herein are included for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.
 
(c)            This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.
 
(d)            Each Loan Party hereby acknowledges and agrees that this Amendment constitutes a “Loan Document” under the Financing Agreement.  Accordingly, it shall be an Event of Default under the Financing Agreement if any representation or warranty made by a Loan Party under or in connection with this Amendment shall have been untrue, false or misleading in any material respect when made.
 
(e)            Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.
 
(f)            The Borrowers will pay on demand all reasonable fees, costs and expenses of the Agents and the Lenders party to this Amendment in connection with the preparation, execution and delivery of this Amendment or otherwise payable under the Financing Agreement, including, without limitation, reasonable fees, disbursements and other charges of counsel to the Agents and the Lenders party to this Amendment.
 
[remainder of page intentionally left blank]
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as of the date set forth on the first page hereof.
 
 
BORROWERS :
   
 
RIMINI STREET, INC.
   
 
By:
/s/ Thomas Shay
   
Name: Thomas Shay
   
Title: SVP and CIO



 
COLLATERAL AGENT AND ADMINISTRATIVE AGENT :
     
 
CORTLAND CAPITAL MARKET SERVICES LLC
   
 
By:
/s/ Matthew Trybula
   
Name: Matthew Trybula
   
Title: Associate Counsel


 
ORIGINATION AGENT :
     
 
CB AGENT SERVICES LLC
     
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Partner & COO


 
LENDER :
   
 
COLBECK CAPITAL MANAGEMENT, LLC
   
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Partner & COO


 
LENDER :
   
 
COLBECK STRATEGIC LENDING MASTER, L.P.
   
 
By:
Colbeck Capital Management, LLC, its investment manager
     
 
By:
/s/ Baabur Khondker
   
Name: Baabur Khondker
   
Title: CFO


 
LENDER :
   
 
CB PARTICIPATIONS SPV, LLC
   
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Partner & COO


 
LENDER :
   
 
NORTH HAVEN CREDIT PARTNERS II L.P.
   
 
By:
MS Credit Partners II GP L.P., its general partner
     
 
By:
MS Credit Partners II GP Inc., its general partner
     
 
By:
/s/ Ashwin Krishnan
   
Name: Ashwin Krishnan
   
Title: Managing Director


 
LENDER :
   
 
CION INVESTMENT CORP
   
 
By:
/s/ Gregg Bresner
   
Name: Gregg Bresner
   
Title: Chief Investment Officer


 
LENDER :
   
 
ALPINE ASSOCIATES, A LIMITED PARTNERSHIP
   
 
By:
/s/ Todd Mason
   
Name: Todd Mason
   
Title: Chief Operating Officer of General Partner


 
LENDER :
   
 
ALPINE HERITAGE, L.P.
   
 
By:
/s/ Todd Mason
   
Name: Todd Mason
   
Title: Chief Operating Officer of General Partner


 
LENDER :
   
 
ALPINE HERITAGE II, L.P.
   
 
By:
/s/ Todd Mason
   
Name: Todd Mason
   
Title: Chief Operating Officer of General Partner


 
LENDER :
   
 
ALPINE HERITAGE OFFSHORE FUND LTD.
   
 
By:
/s/ Todd Mason
   
Name: Todd Mason
   
Title: Vice President



Annex I
 
SCHEDULE 1.01(C)
 
[see attached Budget]



Annex II
 
SCHEDULE 1.01(D)
 
[see attached form of 13 week cash flow forecast]



Annex III
 
SCHEDULE 2.03
 
AMORTIZATION SCHEDULE

Commencing on November 1, 2016, the outstanding principal of the Term Loan shall be repayable on the first Business Day of every month, as set forth below:

Month
Amortization Payment
November 2016
$250,000
December 2016
$250,000
January 2017
$500,000
February 2017
$500,000
March 2017
$500,000
April 2017
$500,000
May 2017
$500,000
June 2017
$500,000
July 2017
$1,000,000
August 2017
$1,000,000
September 2017
$1,000,000
October 2017
$1,000,000
November 2017
$1,000,000
December 2017
$1,000,000
January 2018
$1,000,000
February 2018
$1,000,000
March 2018
$1,000,000
April 2018
$1,000,000
May 2018
$1,000,000
June 2018
$1,000,000
July 2018
$1,250,000
August 2018
$1,250,000
September 2018
$1,250,000
October 2018
$1,250,000
November 2018
$1,250,000
December 2018
$1,250,000
January 2019
$1,250,000
February 2019
$1,250,000
March 2019
$1,250,000
April 2019
$1,250,000
May 2019
$1,250,000
June 2019
$1,250,000
July 2019
$1,250,000
August 2019
$1,250,000
September 2019
$1,250,000
October 2019
$1,250,000
November 2019
$1,250,000
December 2019
$1,250,000
January 2020
$1,250,000
February 2020
$1,250,000
March 2020
$1,250,000
April 2020
$1,250,000
May 2020
$1,250,000
June 2020
$1,250,000




provided, that from and after April 1, 2017 until the date the Borrower complies with the provision of Section 7.01(t) of the Financing Agreement, the outstanding principal of the Term Loan shall then be repayable on the first Business Day of every month, as set forth below (it being understood and agreed that upon satisfaction with all of the requirements of Section 7.01(t) of the Financing Agreement, the amortization schedule above shall then apply):

Month
Amortization Payment
November 2016
$250,000
December 2016
$250,000
January 2017
$500,000
February 2017
$500,000
March 2017
$500,000
April 2017
$1,750,000
May 2017
$1,750,000
June 2017
$1,750,000
July 2017
$2,250,000
August 2017
$2,250,000
September 2017
$2,250,000
October 2017
$2,250,000
November 2017
$2,250,000
December 2017
$2,250,000
January 2018
$2,250,000
February 2018
$2,250,000
March 2018
$2,250,000
April 2018
$2,250,000
May 2018
$2,250,000
June 2018
$2,250,000
July 2018
$2,500,000
August 2018
$2,500,000
September 2018
$2,500,000
October 2018
$2,500,000
November 2018
$2,500,000
December 2018
$2,500,000
January 2019
$2,500,000
February 2019
$2,500,000
March 2019
$2,500,000
April 2019
$2,500,000
May 2019
$2,500,000
June 2019
$2,500,000
July 2019
$2,500,000
August 2019
$2,500,000
September 2019
$2,500,000
October 2019
$2,500,000
November 2019
$2,500,000
December 2019
$2,500,000
January 2020
$2,500,000
February 2020
$2,500,000
March 2020
$2,500,000
April 2020
$2,500,000
May 2020
$2,500,000
June 2020
$2,500,000



Exhibit 10.30

FOURTH AMENDMENT
TO FINANCING AGREEMENT

FOURTH AMENDMENT, dated as of May 15, 2017 (this “ Amendment ”), to the Financing Agreement, dated as of June 24, 2016 (as amended, supplemented, replaced or otherwise modified from time to time, the “ Financing Agreement ”), by and among Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” thereunder, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as thereinafter defined), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party hereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC (“ Cortland ”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“ Colbeck ”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”).

WHEREAS, the Borrowers, the Guarantors, the Agents and the Required Lenders wish to amend certain terms and provisions of the Financing Agreement as hereinafter set forth.

NOW THEREFORE, in consideration of the premises and other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:

1.            Definitions .  All terms used herein that are defined in the Financing Agreement and not otherwise defined herein shall have the meanings assigned to them in the Financing Agreement.

2.            Amendments .

(a)            New Definitions .  Section 1.01 of the Financing Agreement is hereby amended by adding the following definitions in appropriate alphabetical order:

““ Fourth Amendment ” means the Fourth Amendment to Financing Agreement, dated as of May      , 2017, by and among the Agents, the Lenders party thereto and the Loan Parties.”

““ Fourth Amendment Effective Date ” means the date on which each of the conditions precedent set forth in Section 4 of the Fourth Amendment have been either satisfied or waived.”



(b)            Existing Definitions .

(i)            The definition of “Consolidated EBITDA” in Section 1.01 of the Financing Agreement is hereby amended by amending and restating clause (b)(viii) therein in its entirety to read as follows:

“(viii)            expenses related to an initial public offering paid during such period in an aggregate amount not to exceed $3,000,000 for any four consecutive fiscal-quarter period of the Loan Parties and their Subsidiaries, to the extent permitted to be paid under Section 7.02(t),”

(n)            Section 7.02(t) (IPO Expenses) .  Section 7.02(t) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:

“(t)            IPO Expenses .  Permit or cause the fees and disbursements of legal counsel to the Loan Parties and their Subsidiaries (which, for greater certainty, shall not include any filing fees, underwriters’ fees, printer fees, accounting or audit fees, listing fees or any other costs of expenses to other services providers who are not legal counsel to the Loan Parties and their Subsidiaries) incurred for preparing and effecting the registration of an initial public offering of the Equity Interests of the Parent or any of its Subsidiaries (or their direct or indirect parent) (but expressly excluding fees and disbursements that are either paid from the proceeds of such initial public offering or incurred for any extraordinary or atypical matters arising in connection with such initial public offering process or the sale of such Equity Interests) to be greater than $5,000,000 (which amount shall be increased on a dollar for dollar basis for any amounts payable by the Borrower with respect to fees and expenses of counsel to the Agents and the Lenders related thereto that exceed $1,000,000 in the aggregate) for any four consecutive fiscal-quarter period of the Loan Parties and their Subsidiaries, commencing from the Effective Date and thereafter.”

3.            Representations and Warranties .  Each Loan Party hereby represents and warrants to the Agents and the Lenders as follows:

(a)            Representations and Warranties; No Event of Default .  The representations and warranties herein, in Article VI of the Financing Agreement and in each other Loan Document, certificate or other writing delivered by or on behalf of the Loan Parties to any  Agent or any Lender pursuant to the Financing Agreement or any other Loan Document on or prior to the Fourth Amendment Effective Date are true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the Fourth Amendment Effective Date as though made on and as of such date (unless such representations or warranties are stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date), and no Default or Event of Default has occurred and is continuing as of the Fourth Amendment Effective Date or would result from this Amendment becoming effective in accordance with its terms.

2


(b)            Organization, Good Standing, Etc.   Each Loan Party (i) is a corporation, limited liability company or limited partnership duly organized, validly existing and in good standing under the laws of the state or jurisdiction of its organization, (ii) has all requisite corporate (or equivalent) power and authority to conduct its business as now conducted and as presently contemplated and to execute this Amendment and deliver each Loan Document to which it is a party, and to consummate the transactions contemplated hereby and by the Financing Agreement, and (iii) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary, except (solely for the purposes of this subclause (iii)) where the failure to be so qualified and in good standing could reasonably be expected to have a Material Adverse Effect.

(c)            Authorization; Etc.   The execution, delivery and performance of this Amendment by the Loan Parties, and the performance of the Financing Agreement, (i) have been duly authorized by all necessary corporate (or equivalent) action, (ii) do not and will not contravene (A) any of its Governing Documents, (B) any applicable material Requirement of Law to the extent such contravention would adversely affect the material operations of the Borrowers or (C) any Contractual Obligation binding on or otherwise affecting it or any of its properties, (iii) do not and will not result in or require the creation of any Lien (other than pursuant to any Loan Document or any other Permitted Lien) upon or with respect to any of its properties, and (iv) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to its operations or any of its properties, except for any violation referred to in clause (ii)(C) or clause (iv) above which could not reasonably be expected to have a Material Adverse Effect.

(d)            Governmental Approvals .  No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required in connection with the due execution, delivery and performance by any Loan Party of this Amendment or any other Loan Document to which it is or will be a party other than filings and recordings with respect to Collateral that were made, or otherwise delivered to the Collateral Agent for filing or recordation, on the Effective Date.

4.            Conditions to Effectiveness .  This Amendment shall become effective only upon satisfaction in full, in a manner reasonably satisfactory to the Origination Agent, of the following conditions precedent (the first date upon which all such conditions shall have been satisfied or waived being herein called the “ Fourth Amendment Effective Date ”):

(a)            The Agents shall have received this Amendment, duly executed by the Loan Parties, each Agent and the Required Lenders.

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(b)            The representations and warranties contained in this Amendment and in Article VI of the Financing Agreement and in each other Loan Document shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the Fourth Amendment Effective Date as though made on and as of such date (unless such representations or warranties are stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date).

(c)            No Default or Event of Default shall have occurred and be continuing on the Fourth Amendment Effective Date or result from this Amendment becoming effective in accordance with its terms.

(d)            The Borrowers shall have paid on or before the Fourth Amendment Effective Date all fees, costs and expenses then payable pursuant to Section 2.06 and Section 12.04, including, without limitation, the reasonable fees and expenses of Schulte Roth & Zabel LLP, counsel to the Origination Agent.

5.            Continued Effectiveness of the Financing Agreement and Other Loan Documents .  Each Loan Party hereby (i) acknowledges and consents to this Amendment, (ii) confirms and agrees that the Financing Agreement and each other Loan Document to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that on and after the Fourth Amendment Effective Date all references in any such Loan Document to “the Financing Agreement”, the “Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Financing Agreement shall mean the Financing Agreement as amended or modified by this Amendment, and (iii) confirms and agrees that to the extent that any such Loan Document purports to assign or pledge to the Collateral Agent for the benefit of the Agents and the Lenders, or to grant to the Collateral Agent for the benefit of the Agents and the Lenders a security interest in or Lien on, any Collateral as security for the Obligations of the Loan Parties from time to time existing in respect of the Financing Agreement (as amended hereby) and the other Loan Documents, such pledge, assignment and/or grant of the security interest or Lien is hereby ratified and confirmed in all respects.  This Amendment does not and shall not affect any of the obligations of the Loan Parties, other than as expressly provided herein, including, without limitation, the Loan Parties’ obligations to repay the Loans in accordance with the terms of Financing Agreement, or the obligations of the Loan Parties under any Loan Document to which they are a party, all of which obligations shall remain in full force and effect.  Except as expressly provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agents or any Lender under the Financing Agreement or any other Loan Document, nor constitute a waiver of any provision of the Financing Agreement or any other Loan Document.

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6.            Release .  Each Loan Party hereby acknowledges and agrees that, on the Fourth Amendment Effective Date:  (a) neither it nor any of its Affiliates has any claim or cause of action arising on or prior to the Fourth Amendment Effective Date against any Agent or any Lender (or any of their respective Affiliates, officers, directors, employees, attorneys, consultants or agents) under the Financing Agreement and the other Loan Documents and (b) each Agent and each Lender has, prior to the Fourth Amendment Effective Date, properly performed and satisfied in a timely manner all of its obligations prior to the Fourth Amendment Effective Date to such Loan Party and its Affiliates under the Financing Agreement and the other Loan Documents.  Notwithstanding the foregoing, the Agents and the Lenders wish (and each Loan Party agrees) to eliminate, to the fullest extent permitted under applicable law, any possibility that any past conditions, acts, omissions, events or circumstances which occurred prior to the Fourth Amendment Effective Date would impair or otherwise adversely affect any of the Agents’ and the Lenders’ rights, interests, security and/or remedies under the Financing Agreement and the other Loan Documents.  Accordingly, for and in consideration of the agreements contained in this Amendment and other good and valuable consideration, each Loan Party (for itself and its Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the “ Releasors ”) does hereby fully, finally, unconditionally and irrevocably release and forever discharge each Agent, each Lender and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (collectively, the “ Released Parties ”) from any and all debts, claims, obligations, damages, costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, arising on or prior to the Fourth Amendment Effective Date, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Releasor has heretofore had or now or hereafter can, shall or may have against any Released Party by reason of any act, omission or thing whatsoever done or omitted to be done on or prior to the Fourth Amendment Effective Date and arising out of, connected with or related in any way to this Amendment, the Financing Agreement or any other Loan Document, or any act, event or transaction on or prior to the Fourth Amendment Effective Date related or attendant thereto, or the agreements of any Agent or any Lender contained therein, or the possession, use, operation or control of any of the assets of each Loan Party, or the making of any Loans, or the management of such Loans or the Collateral, in each case, on or prior to the Fourth Amendment Effective Date.

As to each and every claim released hereunder, each Loan Party hereby represents that it has received the advice of legal counsel with regard to the releases contained herein, and having been so advised, specifically waives the benefit of the provisions of Section 1542 of the Civil Code of California which provides as follows:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

As to each and every claim released hereunder, each Loan Party also waives the benefit of each other similar provision of applicable federal or state law (including without limitation the laws of the state of New York), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto.

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Each Loan Party acknowledges that it may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or causes of action arising on or prior to the Fourth Amendment Effective Date and agrees that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts.  Each Loan Party understands, acknowledges and agrees that to the extent permitted under applicable law, the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

Each Loan Party, for itself and on behalf of its successors, assigns, and officers, directors, employees and agents, and any Person acting for or on behalf of, or claiming through it, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of the Released Parties above that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) the Released Parties on the basis of any claim released, remised and discharged by such Person pursuant to this Section 6.  Each Loan Party further agrees that it shall not dispute the validity or enforceability of the Financing Agreement or any of the other Loan Documents or any of its obligations thereunder, or the validity, priority, enforceability or the extent of Collateral Agent’s Lien on any item of Collateral under the Financing Agreement or the other Loan Documents.  If any Loan Party or any of its respective successors, assigns, or officers, directors, employees and agents, or any Person acting for or on behalf of, or claiming through it violate the foregoing covenant, such Person, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as the Released Parties may sustain as a result of such violation, all reasonable attorneys’ fees and costs incurred by the Released Parties as a result of such violation.

Each Lender hereby acknowledges and agrees that, on the Fourth Amendment Effective Date:  (a) neither it nor any of its Affiliates has any claim or cause of action arising on or prior to the Fourth Amendment Effective Date against Cortland Capital Market Services LLC, Colbeck Capital Management, LLC or CB Agent Services LLC (or any of their respective Affiliates, officers, directors, employees, attorneys, consultants or agents) under the Financing Agreement and the other Loan Documents and (b) each of Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and their respective Affiliates has, prior to the Fourth Amendment Effective Date, properly performed and satisfied in a timely manner all of its obligations prior to the Fourth Amendment Effective Date to such Lender and its Affiliates under the Financing Agreement and the other Loan Documents.  Notwithstanding the foregoing, Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and their respective Affiliates wish (and each Lender agrees) to eliminate, to the fullest extent permitted under applicable law, any possibility that any past conditions, acts, omissions, events or circumstances which occurred prior to the Fourth Amendment Effective Date would give rise to any claim by any Lender against Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and their respective Affiliates under the Financing Agreement and the other Loan Documents.  Accordingly, for and in consideration of the agreements contained in this Amendment and other good and valuable consideration, each Lender (for itself and its Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the “ Lender Releasors ”) does hereby fully, finally, unconditionally and irrevocably release and forever discharge Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (collectively, the “ Colbeck/Cortland Released Parties ”) from any and all debts, claims, obligations, damages, costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, arising on or prior to the Fourth Amendment Effective Date, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Lender Releasor has heretofore had or now or hereafter can, shall or may have against any Colbeck/Cortland Released Party by reason of any act, omission or thing whatsoever done or omitted to be done on or prior to the Fourth Amendment Effective Date and arising out of, connected with or related in any way to this Amendment, the Financing Agreement or any other Loan Document, or any act, event or transaction on or prior to the Fourth Amendment Effective Date related or attendant thereto, or the agreements of Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC or any of their respective Affiliates contained therein, or the possession, use, operation or control of any of the assets of each Loan Party, or the making of any Loans, or the management of such Loans or the Collateral, in each case, on or prior to the Fourth Amendment Effective Date.

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As to each and every claim released hereunder, each Lender hereby represents that it has received the advice of legal counsel with regard to the releases contained herein, and having been so advised, specifically waives the benefit of the provisions of Section 1542 of the Civil Code of California which provides as follows:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

As to each and every claim released hereunder, each Lender also waives the benefit of each other similar provision of applicable federal or state law (including without limitation the laws of the state of New York), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto.

7.            Miscellaneous .

(a)            This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Amendment by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart of this Amendment.

(b)            Section and paragraph headings herein are included for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

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(c)            This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.

(d)            Each Loan Party hereby acknowledges and agrees that this Amendment constitutes a “Loan Document” under the Financing Agreement.  Accordingly, it shall be an Event of Default under the Financing Agreement if any representation or warranty made by a Loan Party under or in connection with this Amendment shall have been untrue, false or misleading in any material respect when made.

(e)            Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

(f)            The Borrowers will pay on demand all reasonable fees, costs and expenses of the Agents and the Lenders party to this Amendment in connection with the preparation, execution and delivery of this Amendment or otherwise payable under the Financing Agreement, including, without limitation, reasonable fees, disbursements and other charges of counsel to the Agents and the Lenders party to this Amendment.

[remainder of page intentionally left blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as of the date set forth on the first page hereof.

 
BORROWERS :
     
 
RIMINI STREET, INC.
     
 
By:
/s/ Seth A Ravin
   
Name: Seth A Ravin
   
Title: CEO




 
COLLATERAL AGENT AND ADMINISTRATIVE AGENT :
     
 
CORTLAND CAPITAL MARKET SERVICES LLC
     
 
By:
/s/ Polina Arsentyeva
   
Name: Polina Arsentyeva
   
Title: Associate Counsel




 
ORIGINATION AGENT :
     
 
CB AGENT SERVICES LLC
     
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Partner & COO





 
LENDER :
     
 
COLBECK CAPITAL MANAGEMENT, LLC
     
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Partner & COO





 
LENDER :
     
 
COLBECK STRATEGIC LENDING MASTER, L.P.
     
 
By:
Colbeck Capital Management, LLC, its investment manager
     
     
 
By:
/s/ Baabur Khondker
   
Name: Baabur Khondker
   
Title: Chief Financial Officer




 
LENDER :
 
     
 
CB PARTICIPATIONS SPV, LLC
     
 
By:
/s/ Morris Beyda
   
Name: Morris Beyda
   
Title: Partner & COO






 
LENDER :
   
 
NORTH HAVEN CREDIT PARTNERS II L.P.
     
 
By:
MS Credit Partners II GP L.P., its general partner
     
 
By:
MS Credit Partners II GP Inc., its general partner
     
     
 
By:
/s/ Ashwin Krishnan
   
Name: Ashwin Krishnan
   
Title: Managing Director


 
LENDER :
     
 
CION INVESTMENT CORP.
     
 
By:
/s/ Gregg Bresner
   
Name: Gregg Bresner
   
Title: Chief Investment Officer

 
LENDER :
     
 
ALPINE ASSOCIATES, A LIMITED PARTNERSHIP
     
 
By:
/s/ Michael Sminceas
   
Name: Michael Sminceas
   
Title: Vice President of the General Partner





 
LENDER :
     
 
ALPINE HERITAGE, L.P.
     
 
By:
/s/ Michael Sminceas
   
Name: Michael Sminceas
   
Title: Vice President of the General Partner



 
LENDER :
     
 
ALPINE HERITAGE II, L.P.
     
 
By:
/s/ Michael Sminceas
   
Name: Michael Sminceas
   
Title: Vice President of the General Partner



 
LENDER :
     
 
ALPINE HERITAGE OFFSHORE FUND LTD.
     
 
By:
/s/ Michael Sminceas
   
Name: Michael Sminceas
   
Title: Vice President




 

Exhibit 10.31

 

FIFTH AMENDMENT
TO FINANCING AGREEMENT

 

FIFTH AMENDMENT, dated as of June 29, 2017 (this “ Amendment ”), to the Financing Agreement, dated as of June 24, 2016 (as amended, supplemented, replaced or otherwise modified from time to time, the “ Financing Agreement ”), by and among Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” thereunder, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as thereinafter defined), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party hereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC (“ Cortland ”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“ Colbeck ”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”).

 

WHEREAS, the Borrowers, the Guarantors, the Agents and the Required Lenders wish to amend certain terms and provisions of the Financing Agreement as hereinafter set forth.

 

NOW THEREFORE, in consideration of the premises and other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

1.              Definitions . All terms used herein that are defined in the Financing Agreement and not otherwise defined herein shall have the meanings assigned to them in the Financing Agreement.

 

2.              Amendments .

 

(a)              New Definitions . Section 1.01 of the Financing Agreement is hereby amended by adding the following definitions in appropriate alphabetical order:

 

““ Fifth Amendment ” means the Fifth Amendment to Financing Agreement, dated as of June 29, 2017, by and among the Agents, the Lenders party thereto and the Loan Parties.”

 

““ Fifth Amendment Effective Date ” means the date on which each of the conditions precedent set forth in Section 4 of the Fifth Amendment have been either satisfied or waived.”

 

 
 

 

(b)              Existing Definitions .

 

(i)             The definition of “Qualified Cash” in Section 1.01 of the Financing Agreement is hereby amended and restated in its entirety to read as follows:

 

““ Qualified Cash ” means, as of any date of determination, (i) the aggregate amount of unrestricted cash on-hand of the Loan Parties maintained in deposit accounts in the name of a Loan Party in the United States as of such date, which deposit accounts are subject to Control Agreements, plus (ii) the aggregate amount of unrestricted cash on-hand of any Foreign Subsidiaries (other than Rimini Street Brazil Serviços de Tecnologia Ltda. and any other Subsidiary organized in Brazil) to the extent such cash does not exceed the lesser of (x) $8,000,000 or (y) 20% (or (A) for the months ending January 31, 2017 and January 31, 2018, 25% and (B) for the months ending October 31, 2017 and November 30, 2017, 100%) of the sum of (1) the cash described in clause (i) above plus (2) the aggregate amount of all unrestricted cash on-hand for all Foreign Subsidiaries, plus (iii) the aggregate amount of cash on-hand of Rimini Street Brazil Serviços de Tecnologia Ltda. and any other Subsidiary organized in Brazil to the extent such cash does not exceed the lesser of (x) $5,000,000 or (y) 15% (or (A) for the months ending January 31, 2017 and January 31, 2018, 20% and (B) for the months ending October 31, 2017 and November 30, 2017, 100%)) of the sum of (1) the cash described in clause (i) above plus (2) the aggregate amount of all unrestricted cash on-hand for all Foreign Subsidiaries.”

 

(c)              Section 7.01(a)(xxii) (Reporting) . Section 7.01(a)(xxii) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:

 

(i)              “(xxii) as soon as available and in any event by Wednesday of every week (x) commencing with the first Wednesday after the Third Amendment Effective Date, an updated 13-week cash flow forecast of the Parent and its Subsidiaries, in form and substance reasonably satisfactory to the Agents, and consistent with the form attached as Schedule 1.01(D) (including, without limitation, similar line items as set forth in the Budget attached as Schedule 1.01(C)) and (y) commencing with the first Wednesday after the Fifth Amendment Effective Date, a report and schedule detailing the invoicing for the prior week ; and”

 

(d)              Section 7.01(t) (Equity Raise) . Section 7.01(t) of the Financing Agreement is hereby amended by replacing the reference therein to “August 31, 2017” with “November 30, 2018”.

 

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(e)              Section 7.03(a) (Leverage Ratio) . Section 7.03(a) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:

 

“(a)              Leverage Ratio . At any time after the Loans in respect of the Delayed Draw A Term Loan Commitments have been made hereunder, permit the Leverage Ratio of the Parent and its Subsidiaries for any period of four consecutive fiscal quarters of the Parent and its Subsidiaries for which the last quarter ends on a date set forth below to be greater than the ratio set forth opposite such date:

 

Fiscal Quarter End Leverage Ratio
December 31, 2016   5.00 to 1.00
March 31, 2017   4.00 to 1.00
June 30, 2017   2.25 to 1.00
September 30, 2017   2.25 to 1.00
December 31, 2017   2.00 to 1.00
March 31, 2018   2.00 to 1.00
June 30, 2018   1.50 to 1.00
September 30, 2018 and on the last day of each fiscal quarter thereafter   1.00 to 1.00”

 

(f)              Section 7.03(b) (Liquidity) . Section 7.03(b) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:

 

“(b)              Liquidity . At any time, permit the Liquidity of the Parent and its Subsidiaries to be less than the amount set forth in the table below for the applicable period:

 

Period   Amount
From the Second Amendment Effective Date through and including June 30, 2018   $ 10,000,000  
From July 1, 2018 through and including December 31, 2018   $ 17,500,000  
From January 1, 2019 through and including June 30, 2019   $ 25,000,000  
At all times from and after July 1, 2019   $ 30,000,000”  

 

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(g)              Section 7.03(e) (Marketing Return Ratio) . Section 7.03(e) of the Financing Agreement is hereby amended and restated in its entirety to read as follows:

 

“(e)              Marketing Return Ratio . Permit the Marketing Return Ratio of the Parent and its Subsidiaries for any period of four consecutive fiscal quarters of the Parent and its Subsidiaries to be less than the ratio set forth opposite the date set forth below:

 

Fiscal Quarter End   Marketing Return Ratio
December 31, 2016   1.35 to 1.00
March 31, 2017   1.35 to 1.00
June 30, 2017   1.35 to 1.00
September 30, 2017   1.35 to 1.00
December 31, 2017   1.35 to 1.00
March 31, 2018   1.40 to 1.00
June 30, 2018   1.40 to 1.00
September 30, 2018   1.40 to 1.00
December 31, 2018   1.40 to 1.00
March 31, 2019   1.45 to 1.00
June 30, 2019 and on the last day of each fiscal quarter thereafter   1.55 to 1.00”

 

3.              Representations and Warranties . Each Loan Party hereby represents and warrants to the Agents and the Lenders as follows :

 

(a)               Representations and Warranties; No Event of Default . The representations and warranties herein, in Article VI of the Financing Agreement and in each other Loan Document, certificate or other writing delivered by or on behalf of the Loan Parties to any Agent or any Lender pursuant to the Financing Agreement or any other Loan Document on or prior to the Fifth Amendment Effective Date are true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the Fifth Amendment Effective Date as though made on and as of such date (unless such representations or warranties are stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date), and no Default or Event of Default has occurred and is continuing as of the Fifth Amendment Effective Date or would result from this Amendment becoming effective in accordance with its terms.

 

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(b)              Organization, Good Standing, Etc. Each Loan Party (i) is a corporation, limited liability company or limited partnership duly organized, validly existing and in good standing under the laws of the state or jurisdiction of its organization, (ii) has all requisite corporate (or equivalent) power and authority to conduct its business as now conducted and as presently contemplated and to execute this Amendment and deliver each Loan Document to which it is a party, and to consummate the transactions contemplated hereby and by the Financing Agreement, and (iii) is duly qualified to do business and is in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary, except (solely for the purposes of this subclause (iii)) where the failure to be so qualified and in good standing could reasonably be expected to have a Material Adverse Effect.

 

(c)               Authorization; Etc. The execution, delivery and performance of this Amendment by the Loan Parties, and the performance of the Financing Agreement, (i) have been duly authorized by all necessary corporate (or equivalent) action, (ii) do not and will not contravene (A) any of its Governing Documents, (B) any applicable material Requirement of Law to the extent such contravention would adversely affect the material operations of the Borrowers or (C) any Contractual Obligation binding on or otherwise affecting it or any of its properties, (iii) do not and will not result in or require the creation of any Lien (other than pursuant to any Loan Document or any other Permitted Lien) upon or with respect to any of its properties, and (iv) do not and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal of any permit, license, authorization or approval applicable to its operations or any of its properties, except for any violation referred to in clause (ii)(C) or clause (iv) above which could not reasonably be expected to have a Material Adverse Effect.

 

(d)              Governmental Approvals . No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required in connection with the due execution, delivery and performance by any Loan Party of this Amendment or any other Loan Document to which it is or will be a party other than filings and recordings with respect to Collateral that were made, or otherwise delivered to the Collateral Agent for filing or recordation, on the Effective Date.

 

4.              Conditions to Effectiveness . This Amendment shall become effective only upon satisfaction in full, in a manner reasonably satisfactory to the Origination Agent, of the following conditions precedent (the first date upon which all such conditions shall have been satisfied or waived being herein called the “ Fifth Amendment Effective Date ”):

 

(a)             The Agents shall have received this Amendment, duly executed by the Loan Parties, each Agent and the Required Lenders.

 

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(b)             The representations and warranties contained in this Amendment and in Article VI of the Financing Agreement and in each other Loan Document shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of the Fifth Amendment Effective Date as though made on and as of such date (unless such representations or warranties are stated to relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applied to any representations or warranties that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof, which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such earlier date).

 

(c)             No Default or Event of Default shall have occurred and be continuing on the Fifth Amendment Effective Date or result from this Amendment becoming effective in accordance with its terms.

 

(d)             The Borrowers shall have paid on or before the Fifth Amendment Effective Date all fees, costs and expenses then payable pursuant to Section 2.06 and Section 12.04, including, without limitation, the reasonable fees and expenses of Schulte Roth & Zabel LLP, counsel to the Origination Agent.

 

5.              Continued Effectiveness of the Financing Agreement and Other Loan Documents . Each Loan Party hereby (i) acknowledges and consents to this Amendment, (ii) confirms and agrees that the Financing Agreement and each other Loan Document to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that on and after the Fifth Amendment Effective Date all references in any such Loan Document to “the Financing Agreement”, the “Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Financing Agreement shall mean the Financing Agreement as amended or modified by this Amendment, and (iii) confirms and agrees that to the extent that any such Loan Document purports to assign or pledge to the Collateral Agent for the benefit of the Agents and the Lenders, or to grant to the Collateral Agent for the benefit of the Agents and the Lenders a security interest in or Lien on, any Collateral as security for the Obligations of the Loan Parties from time to time existing in respect of the Financing Agreement (as amended hereby) and the other Loan Documents, such pledge, assignment and/or grant of the security interest or Lien is hereby ratified and confirmed in all respects. This Amendment does not and shall not affect any of the obligations of the Loan Parties, other than as expressly provided herein, including, without limitation, the Loan Parties’ obligations to repay the Loans in accordance with the terms of Financing Agreement, or the obligations of the Loan Parties under any Loan Document to which they are a party, all of which obligations shall remain in full force and effect. Except as expressly provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agents or any Lender under the Financing Agreement or any other Loan Document, nor constitute a waiver of any provision of the Financing Agreement or any other Loan Document.

 

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6.              Release . Each Loan Party hereby acknowledges and agrees that, on the Fifth Amendment Effective Date: (a) neither it nor any of its Affiliates has any claim or cause of action arising on or prior to the Fifth Amendment Effective Date against any Agent or any Lender (or any of their respective Affiliates, officers, directors, employees, attorneys, consultants or agents) under the Financing Agreement and the other Loan Documents and (b) each Agent and each Lender has, prior to the Fifth Amendment Effective Date, properly performed and satisfied in a timely manner all of its obligations prior to the Fifth Amendment Effective Date to such Loan Party and its Affiliates under the Financing Agreement and the other Loan Documents. Notwithstanding the foregoing, the Agents and the Lenders wish (and each Loan Party agrees) to eliminate, to the fullest extent permitted under applicable law, any possibility that any past conditions, acts, omissions, events or circumstances which occurred prior to the Fifth Amendment Effective Date would impair or otherwise adversely affect any of the Agents’ and the Lenders’ rights, interests, security and/or remedies under the Financing Agreement and the other Loan Documents. Accordingly, for and in consideration of the agreements contained in this Amendment and other good and valuable consideration, each Loan Party (for itself and its Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the “ Releasors ”) does hereby fully, finally, unconditionally and irrevocably release and forever discharge each Agent, each Lender and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (collectively, the “ Released Parties ”) from any and all debts, claims, obligations, damages, costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, arising on or prior to the Fifth Amendment Effective Date, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Releasor has heretofore had or now or hereafter can, shall or may have against any Released Party by reason of any act, omission or thing whatsoever done or omitted to be done on or prior to the Fifth Amendment Effective Date and arising out of, connected with or related in any way to this Amendment, the Financing Agreement or any other Loan Document, or any act, event or transaction on or prior to the Fifth Amendment Effective Date related or attendant thereto, or the agreements of any Agent or any Lender contained therein, or the possession, use, operation or control of any of the assets of each Loan Party, or the making of any Loans, or the management of such Loans or the Collateral, in each case, on or prior to the Fifth Amendment Effective Date.

 

As to each and every claim released hereunder, each Loan Party hereby represents that it has received the advice of legal counsel with regard to the releases contained herein, and having been so advised, specifically waives the benefit of the provisions of Section 1542 of the Civil Code of California which provides as follows:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

 

As to each and every claim released hereunder, each Loan Party also waives the benefit of each other similar provision of applicable federal or state law (including without limitation the laws of the state of New York), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto.

 

7
 

 

Each Loan Party acknowledges that it may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or causes of action arising on or prior to the Fifth Amendment Effective Date and agrees that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts. Each Loan Party understands, acknowledges and agrees that to the extent permitted under applicable law, the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.

 

Each Loan Party, for itself and on behalf of its successors, assigns, and officers, directors, employees and agents, and any Person acting for or on behalf of, or claiming through it, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of the Released Parties above that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) the Released Parties on the basis of any claim released, remised and discharged by such Person pursuant to this Section 6. Each Loan Party further agrees that it shall not dispute the validity or enforceability of the Financing Agreement or any of the other Loan Documents or any of its obligations thereunder, or the validity, priority, enforceability or the extent of Collateral Agent’s Lien on any item of Collateral under the Financing Agreement or the other Loan Documents. If any Loan Party or any of its respective successors, assigns, or officers, directors, employees and agents, or any Person acting for or on behalf of, or claiming through it violate the foregoing covenant, such Person, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as the Released Parties may sustain as a result of such violation, all reasonable attorneys’ fees and costs incurred by the Released Parties as a result of such violation.

 

Each Lender hereby acknowledges and agrees that, on the Fifth Amendment Effective Date: (a) neither it nor any of its Affiliates has any claim or cause of action arising on or prior to the Fifth Amendment Effective Date against Cortland Capital Market Services LLC, Colbeck Capital Management, LLC or CB Agent Services LLC (or any of their respective Affiliates, officers, directors, employees, attorneys, consultants or agents) under the Financing Agreement and the other Loan Documents and (b) each of Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and their respective Affiliates has, prior to the Fifth Amendment Effective Date, properly performed and satisfied in a timely manner all of its obligations prior to the Fifth Amendment Effective Date to such Lender and its Affiliates under the Financing Agreement and the other Loan Documents. Notwithstanding the foregoing, Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and their respective Affiliates wish (and each Lender agrees) to eliminate, to the fullest extent permitted under applicable law, any possibility that any past conditions, acts, omissions, events or circumstances which occurred prior to the Fifth Amendment Effective Date would give rise to any claim by any Lender against Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and their respective Affiliates under the Financing Agreement and the other Loan Documents. Accordingly, for and in consideration of the agreements contained in this Amendment and other good and valuable consideration, each Lender (for itself and its Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the “ Lender Releasors ”) does hereby fully, finally, unconditionally and irrevocably release and forever discharge Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC and each of their respective Affiliates, officers, directors, employees, attorneys, consultants and agents (collectively, the “ Colbeck/Cortland Released Parties ”) from any and all debts, claims, obligations, damages, costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, arising on or prior to the Fifth Amendment Effective Date, whether known or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute or otherwise, which any Lender Releasor has heretofore had or now or hereafter can, shall or may have against any Colbeck/Cortland Released Party by reason of any act, omission or thing whatsoever done or omitted to be done on or prior to the Fifth Amendment Effective Date and arising out of, connected with or related in any way to this Amendment, the Financing Agreement or any other Loan Document, or any act, event or transaction on or prior to the Fifth Amendment Effective Date related or attendant thereto, or the agreements of Cortland Capital Market Services LLC, Colbeck Capital Management, LLC, CB Agent Services LLC or any of their respective Affiliates contained therein, or the possession, use, operation or control of any of the assets of each Loan Party, or the making of any Loans, or the management of such Loans or the Collateral, in each case, on or prior to the Fifth Amendment Effective Date.

 

8
 

 

As to each and every claim released hereunder, each Lender hereby represents that it has received the advice of legal counsel with regard to the releases contained herein, and having been so advised, specifically waives the benefit of the provisions of Section 1542 of the Civil Code of California which provides as follows:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”

 

As to each and every claim released hereunder, each Lender also waives the benefit of each other similar provision of applicable federal or state law (including without limitation the laws of the state of New York), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto.

 

7.              Miscellaneous .

 

(a)              This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Amendment by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart of this Amendment.

 

(b)              Section and paragraph headings herein are included for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

9
 

 

(c)              This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.

 

(d)              Each Loan Party hereby acknowledges and agrees that this Amendment constitutes a “Loan Document” under the Financing Agreement. Accordingly, it shall be an Event of Default under the Financing Agreement if any representation or warranty made by a Loan Party under or in connection with this Amendment shall have been untrue, false or misleading in any material respect when made.

 

(e)              Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

(f)              The Borrowers will pay on demand all reasonable fees, costs and expenses of the Agents and the Lenders party to this Amendment in connection with the preparation, execution and delivery of this Amendment or otherwise payable under the Financing Agreement, including, without limitation, reasonable fees, disbursements and other charges of counsel to the Agents and the Lenders party to this Amendment.

 

[remainder of page intentionally left blank]

 

10
 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as of the date set forth on the first page hereof.

 

  BORROWERS :
     
  RIMINI STREET, INC.
     
  By: /s/ Seth A Ravin
    Name: Seth A Ravin
    Title: CEO

 

 
 

 

  COLLATERAL AGENT AND ADMINISTRATIVE AGENT :
       
  CORTLAND CAPITAL MARKET SERVICES LLC
       
  By: /s/ Emily Ergang Pappas
    Name: Emily Ergang Pappas
    Title: Associate Counsel

 

 
 

 

  ORIGINATION AGENT :
       
  CB AGENT SERVICES LLC
       
  By: /s/ Morris Beyda
    Name: Morris Beyda
    Title: Partner & COO

 

 
 

 

  LENDER :
       
  COLBECK CAPITAL MANAGEMENT, LLC
       
  By: /s/ Morris Beyda
    Name: Morris Beyda
    Title: Partner & COO

 

 
 

 

  LENDER :
       
  COLBECK STRATEGIC LENDING MASTER, L.P.
       
  By: Colbeck Capital Management, LLC, its investment manager
       
  By: /s/ Baabur Khondker
    Name: Baabur Khondker
    Title: Chief Financial Officer

 

 
 

 

  LENDER :
       
  CB PARTICIPATIONS SPV, LLC
       
  By: /s/ Morris Beyda
    Name: Morris Beyda
    Title: Partner & COO

 

 
 

 

  LENDER :
       
  NORTH HAVEN CREDIT PARTNERS II L.P.
       
  By: MS Credit Partners II GP L.P., its general partner
       
  By: MS Credit Partners II GP Inc., its general partner
       
       
  By: /s/ Ashwin Krishnan
    Name: Ashwin Krishnan
    Title: Managing Director

 

 
 

 

  LENDER:
       
  CION INVESTMENT CORP.
       
  By: /s/ Gregg Bresner
    Name: Gregg Bresner
    Title: President and Chief Investment Officer

 

 
 

 

  LENDER:
       
  ALPINE ASSOCIATES, A LIMITED PARTNERSHIP
       
  By: /s/ Todd Mason
    Name: Todd Mason
    Title: Chief Operating Officer of the General Partner

 

 
 

 

  LENDER:
       
  ALPINE HERITAGE, L.P.
       
  By: /s/ Todd Mason
    Name: Todd Mason
    Title: Chief Operating Officer of the General Partner

 

 
 

 

  LENDER:
       
  ALPINE HERITAGE II, L.P.
       
  By: /s/ Todd Mason
    Name: Todd Mason
    Title: Chief Operating Officer of the General Partner

 

 
 

 

  LENDER:
       
  ALPINE HERITAGE OFFSHORE FUND LTD.
       
  By: /s/ Todd Mason
    Name: Todd Mason
    Title: Vice President

 

 
 

 


Exhibit 10.32

PLEDGE AND SECURITY AGREEMENT
 
PLEDGE AND SECURITY AGREEMENT, dated as of June 24, 2016 (this “ Agreement ”), made by each of the Loan Parties party hereto (each a “ Grantor ” and collectively, the “ Grantors ”), in favor of Cortland Capital Market Services LLC (“ Cortland ”), in its capacity as collateral agent for the Secured Parties referred to below (in such capacity, together with its successors and assigns in such capacity, if any, the “ Collateral Agent ”).
 
W   I   T   N   E   S   S   E   T   H :
 
WHEREAS, Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” under the Financing Agreement referred to below, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as thereinafter defined), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party thereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland, as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“ Colbeck ”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”). are parties to that certain Financing Agreement, dated as of June 24, 2016 (such agreement, as amended, restated, supplemented, modified or otherwise changed from time to time, including any replacement agreement therefor, being hereinafter referred to as the “ Financing Agreement ”);
 
WHEREAS, pursuant to the Financing Agreement, the Lenders have agreed to make certain loans (each a “ Loan ” and collectively, the “ Loans ”), to the Borrowers;
 
WHEREAS, it is a condition precedent to the Lenders making any Loan and providing any other financial accommodation to the Borrowers pursuant to the Financing Agreement that each Grantor shall have executed and delivered to the Collateral Agent a pledge to the Collateral Agent, for the benefit of the Secured Parties, and the grant to the Collateral Agent, for the benefit of the Secured Parties, of a security interest in and Lien on the Collateral owned by such Grantor;
 
WHEREAS, each Grantor has determined that the execution, delivery and performance of this Agreement directly benefit, and are in the best interest of, such Grantor;
 
NOW, THEREFORE, in consideration of the premises and the agreements herein and in order to induce the Lenders to make the Loans and to provide other financial accommodations to the Borrowers pursuant to the Financing Agreement, the Grantors hereby jointly and severally agree with the Collateral Agent, for the benefit of the Secured Parties, as follows:

 
SECTION 1.            Definitions .
 
(a)            Reference is hereby made to the Financing Agreement for a statement of the terms thereof.  All capitalized terms used in this Agreement and the recitals hereto which are defined in the Financing Agreement or in Article 8 or 9 of the Uniform Commercial Code as in effect from time to time in the State of New York (or, for purposes of perfection, such other applicable jurisdiction) (the “ Code ”) and which are not otherwise defined herein shall have the same meanings herein as set forth therein; provided that terms used herein which are defined in the Code as in effect in the State of New York on the date hereof shall continue to have the same meaning notwithstanding any replacement or amendment of such statute except as the Collateral Agent may otherwise determine.

(b)            The following terms shall have the respective meanings provided for in the Code:  “Accounts”, “Account Debtor”, “Cash Proceeds”, “Certificate of Title”, “Chattel Paper”, “Commercial Tort Claim”, “Commodity Account”, “Commodity Contracts”, “Deposit Account”, “Documents”, “Electronic Chattel Paper”, “Equipment”, “Fixtures”, “General Intangibles”, “Goods”, “Instruments”, “Inventory”, “Investment Property”, “Letter-of-Credit Rights”, “Noncash Proceeds”, “Payment Intangibles”, “Proceeds”, “Promissory Notes”, “Record”, “Security Account”, “Software”, “Supporting Obligations” and “Tangible Chattel Paper”.
 
(c)            As used in this Agreement, the following terms shall have the respective meanings indicated below, such meanings to be applicable equally to both the singular and plural forms of such terms:
 
Additional Collateral ” has the meaning specified therefor in Section 4(a)(i) hereof.
 
Collateral ” has the meaning specified therefor in Section 2 hereof.  For the avoidance of doubt, the term Collateral does not include any Excluded Property.
 
Copyrights ” means any and all rights in any published and unpublished works of authorship, including (i) copyrights and moral rights, (ii) all renewals, extensions, restorations and reversions thereof, (iii) copyright registrations and recordings thereof and all applications in connection therewith including those listed on Schedule II hereto, (iv) income, license fees, royalties, damages, and payments now and hereafter due or payable under and with respect thereto, including payments under all licenses entered into in connection therewith and damages and payments for past, present, or future infringements thereof, (v) the right to sue for past, present, and future infringements thereof, and (vi) all of each Grantor’s rights corresponding thereto throughout the world.
 
Excluded Property ” has the meaning specified therefor in Section 2 hereof.
 
Existing Issuer ” has the meaning specified therefor in the definition of the term “Pledged Shares”.
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Intellectual Property ” means any and all Patents, Copyrights, Trademarks, trade secrets, know-how, inventions (whether or not patentable), algorithms, software programs (including source code and object code), processes, product designs, industrial designs, blueprints, drawings, data, customer lists, URLs and domain names, specifications, documentations, reports, catalogs, literature, and any other forms of technology or proprietary information of any kind, including all rights therein and all applications for registration or registrations thereof.
 
Licenses ” means, with respect to any Person (the “ Specified Party ”), (i) any licenses or other similar rights provided to the Specified Party in or with respect to Intellectual Property owned or controlled by any other Person, and (ii) any licenses or other similar rights provided to any other Person in or with respect to Intellectual Property owned or controlled by the Specified Party, in each case, including (A) any software license agreements (other than license agreements for commercially available off-the-shelf software that is generally available to the public which have been licensed to a Grantor pursuant to end-user licenses), (B) the license agreements listed on Schedule III hereto, and (C) the right to use any of the licenses or other similar rights described in this definition in connection with the enforcement of any Secured Party’s rights under the Loan Documents.
 
Material License ” has the meaning specified therefor in Section 5(d) hereof.
 
Patents ” means patents and patent applications, including (i) the patents and patent applications listed on Schedule IV hereto, (ii) all continuations, divisionals, continuations-in-part, re-examinations, reissues, and renewals thereof and improvements thereon, (iii) all income, royalties, damages and payments now and hereafter due or payable under and with respect thereto, including payments under all licenses entered into in connection therewith and damages and payments for past, present, or future infringements thereof, (iv) the right to sue for past, present, and future infringements thereof, and (v) all of each Grantor’s rights corresponding thereto throughout the world.
 
Pledged Debt ” means the debt obligations described in Schedule X hereto and all debt obligations from time to time issued to a Grantor having, in each case of each instance of debt obligations, an aggregate principal amount in excess of $50,000 and the promissory notes and other Instruments evidencing any or all of such debt obligations; provided that the Pledged Debt shall not include any Excluded Property.
 
Pledged Interests ” means, collectively, (a) the Pledged Debt, (b) the Pledged Shares and (c) all security entitlements in any and all of the foregoing; provided that the Pledged Interests shall not include any Excluded Property.
 
Pledged Issuer ” has the meaning specified therefor in the definition of the term “Pledged Shares”.
3

 
Pledged Shares ” means (a) the shares of Equity Interests described in Schedule XI hereto, whether or not evidenced or represented by any stock certificate, certificated security or other Instrument, issued by the Persons described in such Schedule XI (the “ Existing Issuers ”), (b) the shares of Equity Interests at any time and from time to time acquired by a Grantor of any and all Persons now or hereafter existing (such Persons, together with the Existing Issuers, being hereinafter referred to collectively as the “ Pledged Issuers ” and each individually as a “ Pledged Issuer ”), whether or not evidenced or represented by any stock certificate, certificated security or other Instrument, and (c) the certificates representing such shares of Equity Interests; provided that the Pledged Shares shall not include any Excluded Property.
 
Secured Parties ” means, collectively, the Agents and the Lenders and their permitted successors and permitted assigns.
 
Secured Obligations ” has the meaning specified therefor in Section 3 hereof.
 
Titled Collateral ” means all Collateral for which the title to such Collateral is governed by a Certificate of Title or certificate of ownership, including, without limitation, all motor vehicles (including, without limitation, all trucks, trailers, tractors, service vehicles, automobiles and other mobile equipment) for which the title to such motor vehicles is governed by a Certificate of Title or certificate of ownership.
 
Trademarks ” means any and all trademarks, trade names, registered trademarks, trademark applications, service marks, registered service marks, brand names, certification marks, collective marks, logos, symbols, trade dress, assumed names, fictitious names and service mark applications, including (i) the trade names, registered trademarks, trademark applications, registered service marks and service mark applications listed on Schedule V hereto, (ii) all extensions, modifications and renewals thereof, (iii) all income, royalties, damages and payments now and hereafter due or payable under and with respect thereto, including payments under all licenses entered into in connection therewith and damages and payments for past or future infringements or dilutions thereof, (iv) the right to sue for past, present and future infringements and dilutions thereof, (v) the goodwill of each Grantor’s business symbolized by the foregoing or connected therewith, and (vi) all of each Grantor’s rights corresponding thereto throughout the world.
 
SECTION 2.            Grant of Security Interest .  As collateral security for the payment and performance of the Secured Obligations, each Grantor hereby pledges and grants to the Collateral Agent (and its agents and designees), for the benefit of the Secured Parties, a continuing security interest in all personal property and Fixtures of such Grantor, wherever located and whether now or hereafter existing and whether now owned or hereafter acquired, of every kind and description, tangible or intangible, including, without limitation, the following (all being collectively referred to herein as the “ Collateral ”):
 
(a)            all Accounts;
 
(b)            all Chattel Paper (whether tangible or electronic);
 
(c)            all Commercial Tort Claims not constituting Excluded Property, as specified on Schedule IX, as such schedule is supplemented by written notice to the Collateral Agent in accordance with Section 6(a);
 
(d)            all Deposit Accounts, all cash, and all other property from time to time deposited therein or otherwise credited thereto and the monies and property in the possession or under the control of any Secured Party or any affiliate, representative, agent or correspondent of any Secured Party;
4

 
(e)            all Documents;
 
(f)            all General Intangibles (including, without limitation, all Payment Intangibles, Intellectual Property and Licenses);
 
(g)            all Goods, including, without limitation, all Equipment, Fixtures and Inventory;
 
(h)            all Instruments (including, without limitation, Promissory Notes);
 
(i)            all Investment Property;
 
(j)            all Letter-of-Credit Rights;
 
(k)            all Pledged Interests;
 
(l)            all Supporting Obligations;
 
(m)            all other tangible and intangible personal property of such Grantor (whether or not subject to the Code), including, without limitation, all bank and other accounts and all cash and all investments therein, all proceeds, products, offspring, accessions, rents, profits, income, benefits, substitutions and replacements of and to any of the property of such Grantor described in the preceding clauses of this Section 2 hereof (including, without limitation, any proceeds of insurance thereon and all causes of action, claims and warranties now or hereafter held by such Grantor in respect of any of the items listed above), and all books, correspondence, files and other Records, including, without limitation, all tapes, disks, cards, Software, data and computer programs in the possession or under the control of such Grantor or any other Person from time to time acting for such Grantor that at any time evidence or contain information relating to any of the property described in the preceding clauses of this Section 2 hereof or are otherwise necessary or helpful in the collection or realization thereof; and
 
(n)            all Proceeds, including all Cash Proceeds and Noncash Proceeds, and products of any and all of the foregoing Collateral; in each case howsoever such Grantor’s interest therein may arise or appear (whether by ownership, security interest, claim or otherwise).
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Notwithstanding anything herein to the contrary or in any other Loan Document, the term “Collateral” shall not include, and no Grantor is pledging, nor granting a security interest hereunder or under any other Loan Document in any of the following (collectively, the “ Excluded Property ”):  (i) any of such Grantor’s right, title or interest in any lease, permit, governmental authorization, license, license agreement, contract or agreement to which such Grantor is a party or any of its right, title or interest thereunder to the extent, but only to the extent, that such a grant would, under the express terms of such lease, permit, license, license agreement, contract or agreement result in a breach of the terms of, or constitute a default under, such lease, permit, license, license agreement, contract or agreement (other than to the extent that (A) any such term has been waived, (B) the consent of the other party to such lease, permit, license, license agreement, contract or agreement has been obtained, or (C) such terms would be rendered ineffective pursuant to Sections 9-406, 9-408, 9-409 of the Code or other applicable provisions of the Code of any relevant jurisdiction or any other applicable law (including the Bankruptcy Code) or principles of equity); provided , that (x) immediately upon the ineffectiveness, lapse, termination or waiver of any such provision, the Collateral shall include, and such Grantor shall be deemed to have granted a security interest in, all such right, title and interest as if such provision had never been in effect and (y) the foregoing exclusion shall in no way be construed so as to limit, impair or otherwise affect the Collateral Agent’s unconditional continuing security interest in and liens upon any rights or interests of a Grantor in or to (1) the proceeds of, or any monies due or to become due under, any such lease, permit, license, license agreement, contract or agreement (including any Accounts, proceeds of Inventory or Equity Interests, and (2) the proceeds from the sale, license, lease, or other dispositions of any such lease, permit, license, license agreement, contract or agreement); (ii) any intent-to-use United States trademark applications for which an amendment to allege use or statement of use has not been filed under 15 U.S.C. § 1051(c) or 15 U.S.C. § 1051(d), respectively, or if filed, has not been deemed in conformance with 15 U.S.C. § 1051(a) or examined and accepted, respectively, by the United States Patent and Trademark Office, provided that, upon such filing and acceptance, such intent-to-use applications shall be included in the definition of Collateral; (iii) in the case of a Foreign Subsidiary, more than 65% (or such greater percentage that, due to a change in applicable law after the date hereof, (A) would not reasonably be expected to cause the undistributed earnings of such Foreign Subsidiary as determined for United States federal income tax purposes to be treated as a deemed dividend to such Foreign Subsidiary’s United States parent and (B) would not reasonably be expected to cause any material adverse tax consequences) of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956‑2(c)(2)) (it being understood and agreed that the Collateral shall include 100% of the issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956‑2(c)(2)) or other equity interest of such Foreign Subsidiary); (iv) equipment owned by any Grantor that is subject to a Permitted Lien or a Lien securing Permitted Indebtedness if the contract or other agreement applicable to such Permitted Indebtedness validly prohibits the creation of any other Lien on such equipment or if such creation would result in a default or termination under the relevant agreement; (v) Excluded Accounts; (vi) any Titled Collateral (other than to the extent a Lien on such assets can be perfected by the filing of customary financing statements) with a value less than $75,000 individually and $250,000 in the aggregate; (vii) Letter-of-Credit Rights (other than to the extent a Lien on such rights can be perfected by the filing of customary financing statements) with a value less than $100,000 individually and $250,000 in the aggregate; (viii) Commercial Tort Claims with an aggregate value reasonably estimated to be less than $250,000; (ix) property of a Grantor that secures Permitted Indebtedness of the kind described in clause (h) of the definition of “Permitted Indebtedness” pursuant to a Permitted Lien described in clause (p) of the definition of “Permitted Liens” and (x) any other exceptions mutually agreed in writing between the Administrative Borrower and the Collateral Agent (acting at the direction of the Required Lenders).
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SECTION 3.            Security for Secured Obligations .  The security interest created hereby in the Collateral constitutes continuing collateral security for all of the following obligations, whether now existing or hereafter incurred (the “ Secured Obligations ”):
 
(a)            the prompt payment by each Grantor, as and when due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), of all Obligations from time to time owing by it under the Financing Agreement and/or the other Loan Documents; and
 
(b)            the due performance by each Grantor of all of its other Obligations from time to time existing.
 
SECTION 4.            Delivery of the Pledged Interests .
 
(a)           ( i)  All promissory notes evidencing the Pledged Debt and all certificates representing the Pledged Shares, in each case which exist on the date hereof, shall be delivered to the Collateral Agent on or prior to the execution and delivery of this Agreement.  All other promissory notes, certificates and Instruments constituting Pledged Interests from time to time required to be pledged to the Collateral Agent pursuant to the terms of this Agreement or the Financing Agreement (the “ Additional Collateral ”) shall be delivered to the Collateral Agent promptly upon, but in any event within the later of (x) ten (10) Business Days of, receipt thereof by or on behalf of any of the Grantors and (y) the date set forth in Section 7.01(b) of the Financing Agreement.  All such promissory notes, certificates and Instruments shall be held by or on behalf of the Collateral Agent pursuant hereto and shall be delivered in suitable form for transfer by delivery or shall be accompanied by duly executed instruments of transfer or assignment or undated stock powers executed in blank, all in form and substance reasonably satisfactory to the Collateral Agent.  If an Event of Default has occurred and is continuing, if any Pledged Interests consists of uncertificated securities, unless the immediately following sentence is applicable thereto, such Grantor shall cause the Collateral Agent (or its designated custodian or nominee) to become the registered holder thereof, or cause each issuer of such securities to agree that it will comply with instructions originated by the Collateral Agent (acting at the direction of the Required Lenders) with respect to such securities without further consent by such Grantor.  If an Event of Default has occurred and is continuing, if any Pledged Interests consists of security entitlements, such Grantor shall transfer such security entitlements to the Collateral Agent (or its custodian, nominee or other designee), or cause the applicable securities intermediary to agree that it will comply with entitlement orders by the Collateral Agent (acting at the direction of the Required Lenders) without further consent by such Grantor.
 
(ii)            Within the later of (x) ten (10) Business Days of the receipt by a Grantor of any Additional Collateral and (y) the time period set forth in Section 7.01(b) of the Financing Agreement, a Pledge Amendment, duly executed by such Grantor, in substantially the form of Exhibit A hereto (a “ Pledge Amendment ”), shall be delivered to the Collateral Agent, in respect of the Additional Collateral that must be pledged pursuant to this Agreement and the Financing Agreement.  The Pledge Amendment shall from and after delivery thereof constitute part of Schedules X and XI hereto.  Each Grantor hereby authorizes the Collateral Agent to attach each Pledge Amendment to this Agreement and agrees that all promissory notes, certificates or Instruments listed on any Pledge Amendment delivered to the Collateral Agent shall for all purposes hereunder constitute Pledged Interests and such Grantor shall be deemed upon delivery thereof to have made the representations and warranties set forth in Section 5 hereof with respect to such Additional Collateral.
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(b)            If any Grantor shall receive, by virtue of such Grantor’s being or having been an owner of any Pledged Interests, any (i) stock certificate (including, without limitation, any certificate representing a stock dividend or non-cash distribution in connection with any increase or reduction of capital, reclassification, merger, consolidation, sale of assets, combination of shares, stock split, spin-off or split-off), promissory note or other Instrument, (ii) option or right, whether as an addition to, substitution for, or in exchange for, any Pledged Interests, or otherwise, (iii) dividends, distributions, Instruments, Investment Property and other property in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in surplus, such Grantor shall receive the same in trust for the benefit of the Collateral Agent, shall segregate it from such Grantor’s other property and shall deliver it forthwith to the Collateral Agent, in the exact form received, with necessary and/or reasonably appropriate indorsements and/or stock powers duly executed in blank, to be held by the Collateral Agent as Pledged Interests and as further collateral security for the Secured Obligations.
 
SECTION 5.            Representations and Warranties .  Each Grantor represents and warrants as follows:
 
(a)            Schedule I hereto sets forth (i) the exact legal name of such Grantor, (ii) the state or jurisdiction of organization of such Grantor, (iii) the type of organization of such Grantor and (iv) the organizational identification number of such Grantor or states that no such organizational identification number exists.
 
(b)            [Intentionally omitted].
 
(c)            Except for Equipment, Inventory and Goods in transit, servers owned by such Grantor (if any), personal property held by employees in the ordinary course of business ( e.g. , computer laptops) and except to the extent permitted under the Financing Agreement, all material Equipment, Fixtures, Inventory and other Goods owned by such Grantor now existing are, and all material Equipment, Fixtures, Inventory and other Goods owned by such Grantor and hereafter existing will be, located at the addresses specified therefor in Schedule VI hereto (as amended, supplemented or otherwise modified from time to time in accordance with Section 6(b) hereof).  Such Grantor’s principal place of business and chief executive office, the place where such Grantor keeps its principal Records concerning Accounts and all originals of all Chattel Paper are located at the addresses specified therefor in Schedule VI hereto (as amended, supplemented or otherwise modified from time to time in accordance with the terms hereof).  As of the Effective Date, none of the Accounts is evidenced by Promissory Notes or other Instruments with a principal value greater than $500,000.  Set forth in Schedule VII hereto is a complete and accurate list, on the date of this Agreement, of each Deposit Account, Securities Account and Commodities Account of each Grantor, together with the name and address of each institution at which each such Account is maintained, the account number for each such Account and a description of the purpose of each such Account.  Set forth in Schedule V hereto is (i) a complete and correct list of each trade name used by such Grantor on the date hereof and (ii) the name of, and each trade name used by, each Person from which such Grantor has acquired any substantial part of the Collateral in the five years preceding the date hereof.
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(d)            As of the Effective Date, (i) Schedule II provides a complete and correct list of all registered Copyrights owned by such Grantor, all applications for registration of Copyrights owned by such Grantor, and all other Copyrights owned by such Grantor and material to the conduct of the business of such Grantor, in each case, on the Effective Date; (ii) Schedule III provides a complete and correct list of all Licenses (other than non-exclusive software licenses granted in the ordinary course of business) to which such Grantor is party on the Effective Date and which is a Material Contract (each, a “ Material License ”); (iii) Schedule IV provides a complete and correct list of all Patents owned by such Grantor and all applications for Patents owned by such Grantor, in each case, on the Effective Date; and (iv) Schedule V provides a complete and correct list of all registered Trademarks owned by such Grantor, all applications for registration of Trademarks owned by such Grantor, and all other Trademarks owned by such Grantor and material to the conduct of the business of such Grantor, in each case, on the Effective Date.
 
(e)            [Intentionally omitted].
 
(f)            [Intentionally omitted].
 
(g)            [Intentionally omitted].
 
(h)            Each Grantor has taken reasonable steps to maintain the confidentiality of and otherwise protect and enforce its rights in all material trade secrets owned by such Grantor that are necessary in the business of such Grantor.
 
(i)            Other than software which by the terms of its own license explicitly permits the licensee to distribute the software together with other commercial programs with no restrictions on such Grantor’s ability to charge fees for such distribution and with no restriction on such Grantor’s right to receive payments for transfer of its Intellectual Property, and other than software which is not material to the conduct of such Grantor’s business, no open source or public library software, including any version of any software licensed pursuant to any GNU public license, is, in whole or in part, embodied or incorporated, in any manner, in any Grantor’s software products that is licensed or distributed by any Grantor.  No open source or public library software licensed pursuant to any GNU public license which requires any Grantor to license such Grantor’s software products to third parties, or any other license which requires any Grantor to license such Grantor’s software products to third parties other than with respect to software that is not material to the conduct of such Grantor’s business, is embodied or incorporated, in any manner, in any Grantor’s source code.
 
(j)            The Pledged Shares owned by such Grantor and described in Schedule XI have been duly authorized and validly issued and are fully paid and nonassessable (other than Pledged Shares consisting of partnership interests, limited liability interests and the foreign equivalent thereof) and the holders thereof are not entitled to any preemptive, first refusal or other similar rights.  Except as noted in Schedule XI hereto, the Pledged Shares constitute 100% of the issued shares of Equity Interests constituting Collateral of the Pledged Issuers as of the date hereof.
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(k)            The promissory notes evidencing the Pledged Debt owned by such Grantor on the Effective Date have been, and all other promissory notes evidencing Pledged Debt owned by such Grantor after the Effective Date, when executed and delivered, will have been, to the knowledge of such Grantor, duly authorized, executed and delivered by the respective makers thereof, and all such promissory notes are or will be, as the case may be, to the knowledge of such Grantor, legal, valid and binding obligations of such makers, enforceable against such makers in accordance with their respective terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws.
 
(l)            Subject to the rights of the Grantors to make Permitted Dispositions, the Grantors are and will be at all times the sole and exclusive owners of, or otherwise have and will have adequate rights in, the Collateral free and clear of any Lien except for the Permitted Liens.  No Grantor has executed, filed, or authorized any third party to file any financing statement or other instrument similar in effect covering all or any part of the Collateral except (i) to perfect or protect any Permitted Lien or (ii) if such authorization is effective after the Termination Date or authorizes a filing to perfect a security interest the grant of which is not made or effective until after the Termination Date.
 
(m)            The exercise by the Collateral Agent of any of its rights and remedies hereunder in accordance with the Loan Documents and applicable law will not contravene any law or any contractual restriction binding on or otherwise affecting any Grantor or any of its properties and will not result in, or require the creation of, any Lien upon or with respect to any of its properties.
 
(n)            No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or any other Person, is required for the perfection of the security interest purported to be created hereby in the Collateral (other than those that have been obtained and are in full force and effect), to the extent that such perfection may be effected under the applicable Code, except (A) for the filing under the Code as in effect in the applicable jurisdiction of the financing statements described in Schedule VIII hereto, all of which financing statements have been duly filed and are in full force and effect, (B) with respect to the perfection of the security interest created hereby in the United States Intellectual Property and Licenses, for the recording of the appropriate Assignment for Security, substantially in the form of Exhibit B hereto in the United States Patent and Trademark Office or the United States Copyright Office, as applicable, (C)  with respect to the perfection of the security interest created hereby in Titled Collateral, to the extent required hereunder, for the submission of an appropriate application requesting that the Lien of the Collateral Agent be noted on the Certificate of Title or certificate of ownership, completed and authenticated by the applicable Grantor, together with the Certificate of Title or certificate of ownership, with respect to such Titled Collateral, to the appropriate Governmental Authority, (D) with respect to any action that may be necessary to obtain control of Collateral constituting Deposit Accounts, Electronic Chattel Paper, Investment Property or Letter-of-Credit Rights, the taking of such actions, and (E) the Collateral Agent’s having possession of all Documents, Chattel Paper, Instruments and cash constituting Collateral (subclauses (A), (B), (C), (D), and (E), each a “ Perfection Requirement ” and collectively, the “ Perfection Requirements ”).
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(o)            This Agreement creates a legal, valid and enforceable security interest in favor of the Collateral Agent, for the benefit of the Secured Parties, in the Collateral, as security for the Secured Obligations, to the extent a security interest in the Collateral may be created under Article 9 of the Code.  The compliance with the Perfection Requirements result in the perfection of such security interests under Article 9 of the Code, to the extent that such perfection may occur by the compliance with such Perfection Requirements.  Assuming compliance with all Perfection Requirements, such security interests are perfected, first priority security interests under the Code, subject in priority only to the Permitted Liens that, pursuant to the definition of the term “Permitted Liens”, are not expressly prohibited from being prior to the Liens in favor of the Collateral Agent, for the benefit of the Secured Parties, and the recording of such instruments of assignment described above.  Such Perfection Requirements and all other action necessary or reasonably desirable to perfect and protect such security interest under the Code have been duly made or taken, except for (i) the Collateral Agent’s having possession of all Instruments, Documents, Chattel Paper and cash constituting Collateral after the date hereof, (ii) the Collateral Agent’s having control of all Deposit Accounts, Electronic Chattel Paper, Investment Property or Letter-of-Credit Rights constituting Collateral after the date hereof, and (iii) the other filings and recordations and actions described in Section 5(n) hereof.
 
(p)            As of the date hereof, no Grantor holds any Commercial Tort Claims or is aware of any such pending claims, except for such claims described in Schedule IX.
 
SECTION 6.            Covenants as to the Collateral .  So long as any of the outstanding Secured Obligations (whether or not due) shall remain unpaid (other than Contingent Indemnity Obligations) or any Lender shall have any Commitment under the Financing Agreement, unless the Collateral Agent shall otherwise consent in writing:
 
(a)            Further Assurances .  Each Grantor will at its expense, at any time and from time to time, promptly execute and deliver all further instruments and documents and take all further action that the Collateral Agent may reasonably request in order (i) to perfect and protect, or maintain the perfection of, the security interest and Lien purported to be created hereby, subject to Permitted Liens; (ii) to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder in respect of the Collateral; or (iii) to effect the purposes of this Agreement, including, without limitation:  (A) if an Event of Default has occurred and is continuing, marking conspicuously all Chattel Paper, Instruments and Licenses constituting Collateral and, at the request of the Collateral Agent, all of its Records pertaining to the Collateral with a legend, in form and substance reasonably satisfactory to the Collateral Agent, indicating that such Chattel Paper, Instrument, License or Collateral is subject to the security interest created hereby, (B) if any Account shall be evidenced by a Promissory Note or other Instrument or Chattel Paper evidencing Pledged Debt, delivering and pledging to the Collateral Agent such Promissory Note, other Instrument or Chattel Paper, duly endorsed and accompanied by executed instruments of transfer or assignment, all in form and substance reasonably satisfactory to the Collateral Agent, (C) executing and filing (to the extent, if any, that such Grantor’s signature is required thereon) or authenticating the filing of, such financing or continuation statements, or amendments thereto, (D) with respect to Intellectual Property hereafter existing and not covered by an appropriate security interest grant, executing and recording in the United States Patent and Trademark Office or the United States Copyright Office, as applicable, appropriate instruments granting a security interest, as the Collateral Agent may reasonably request in order to perfect and preserve the security interest purported to be created hereby, (E) delivering to the Collateral Agent irrevocable proxies in respect of the Pledged Interests, (F) furnishing to the Collateral Agent from time to time statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Collateral Agent may reasonably request, all in reasonable detail, (G) if at any time after the Effective Date, any Grantor acquires or holds any Commercial Tort Claim reasonably estimated to exceed $250,000, promptly notifying the Collateral Agent in a writing signed by such Grantor setting forth a brief description of such Commercial Tort Claim and granting to the Collateral Agent a security interest therein and in the proceeds thereof, which writing shall incorporate the provisions hereof and shall be in form and substance reasonably satisfactory to the Collateral Agent, (H) upon the acquisition after the date hereof by any Grantor of any Titled Collateral (other than Excluded Property), promptly notifying the Collateral Agent of such acquisition, setting forth a description of the Titled Collateral acquired and a good faith estimate of the current value of such Titled Collateral, and if so requested by the Collateral Agent, promptly causing the Collateral Agent to be listed as the lienholder on such Certificate of Title or certificate of ownership and delivering evidence of the same to the Collateral Agent, and (I) taking all actions required by law in any relevant Uniform Commercial Code jurisdiction.  No Grantor shall take or fail to take any action reasonably requested by the Collateral Agent which would in any manner materially impair the validity or enforceability of the Collateral Agent’s security interest in and Lien on the Collateral taken as a whole.
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(b)            Location of Equipment and Inventory .  Except for Equipment, and Inventory in transit, servers owned by a Grantor, office equipment, personal property held by employees in the ordinary course of business ( e.g. , computer laptops) and except to the extent permitted under the Financing Agreement, each Grantor will keep its material Equipment and Inventory at the locations specified in Schedule VI hereto or, upon not less than thirty (30) days’ prior written notice to the Collateral Agent accompanied by a new Schedule VI hereto indicating each new location of material Equipment and Inventory, at such other locations in the continental United States as the Grantors may elect.
 
(c)            [Intentionally omitted].
 
(d)            [Intentionally omitted].
 
(e)            [Intentionally omitted].
 
(f)            Provisions Concerning the Accounts and the Licenses .
 
(i)            Each Grantor will, except as otherwise provided in this subsection (f) and the Financing Agreement, continue to collect, at its own expense and in accordance with such Grantor’s ordinary business practices, all amounts due or to become due under the Accounts.  In connection with such collections, each Grantor may take such action as such Grantor may deem necessary or advisable to enforce collection or performance of the Accounts; provided , however , that the Collateral Agent shall have the right at any time, if an Event of Default has occurred and is continuing: (x) to notify the Account Debtors or obligors under any Accounts of the assignment of such Accounts to the Collateral Agent and to direct such Account Debtors or obligors to make payment of all amounts due or to become due to such Grantor thereunder directly to the Collateral Agent or its designated agent, and (y) upon such notification and at the expense of such Grantor and to the extent permitted by law, to enforce collection of any such Accounts and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as such Grantor might have done.  After receipt by any Grantor of a notice from the Collateral Agent that the Collateral Agent has notified, intends to notify, or has enforced or intends to enforce a Grantor’s rights against the Account Debtors or obligors under any Accounts as referred to in the proviso to the immediately preceding sentence, so long as an Event of Default has occurred and is continuing, (A) all amounts and proceeds (including Instruments) received by such Grantor in respect of the Accounts shall be received in trust for the benefit of the Collateral Agent hereunder, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Collateral Agent or its designated agent in the same form as so received (with any necessary endorsement) to be held as cash collateral and applied as specified in Section 9(d) hereof, and (B) such Grantor will not adjust, settle or compromise the amount or payment of any Account or release wholly or partly any Account Debtor or obligor thereof or allow any credit or discount thereon.  In addition, if an Event of Default has occurred and is continuing, the Collateral Agent may (in its sole and absolute discretion) direct any or all of the banks and financial institutions with which any Grantor either maintains a Deposit Account or a lockbox or deposits the proceeds of any Accounts to send immediately to the Collateral Agent or its designated agent by wire transfer (to such account as the Collateral Agent shall specify, or in such other manner as the Collateral Agent shall direct) all or a portion of such securities, cash, investments and other items held by such institution.  So long as an Event of Default has occurred and is continuing, any such securities, cash, investments and other items so received by the Collateral Agent or its designated agent shall (in the sole and absolute discretion of the Collateral Agent acting at the direction of the Required Lenders) be held as additional Collateral for the Secured Obligations or distributed in accordance with Section 9 hereof.
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(ii)            Upon the occurrence and during the continuance of any breach or default under any Material License by any party thereto other than a Grantor, (A) the relevant Grantor will, promptly after obtaining knowledge thereof, give the Collateral Agent written notice of the nature and duration thereof, specifying what action, if any, it has taken and proposes to take with respect thereto, (B) no Grantor will, without the prior written consent of the Collateral Agent, declare or waive any such breach or default or affirmatively consent to the cure thereof or exercise any of its remedies in respect thereof, and (C) each Grantor will, upon written instructions from the Collateral Agent and at such Grantor’s expense, take such action as the Collateral Agent may deem necessary or reasonably advisable in respect thereof.
 
(iii)            [Intentionally omitted].
 
(iv)            Each Grantor will exercise promptly and diligently each and every right which it may have under each Material License (other than any right of termination) and will duly perform and observe in all respects all of its obligations under each License and will take all action necessary to maintain the Material Licenses in full force and effect.  No Grantor will, without the prior written consent of the Collateral Agent, cancel, terminate, amend or otherwise modify in any respect, or waive any provision of, any Material License.
 
(g)            Provisions Concerning the Pledged Interests .  Each Grantor will
 
(i)            [Intentionally omitted];
 
(ii)            at the Grantors’ joint and several expense, defend the Collateral Agent’s right, title and security interest in and to the Pledged Interests against the claims of any Person;
 
(iii)            not make or consent to any amendment or other modification or waiver with respect to any Pledged Interests or enter into any agreement or permit to exist any restriction with respect to any Pledged Interests (other than as permitted under the Loan Documents, including, without limitation, under Section 7.02(m)(iii) of the Financing Agreement); and
 
(iv)            except as expressly permitted under the Financing Agreement (including, without limitation, Section 7.02(m)(iii) of the Financing Agreement), not permit the issuance of (A) any additional shares of any class of Equity Interests of any Pledged Issuer, (B) any securities convertible voluntarily by the holder thereof or automatically upon the occurrence or non-occurrence of any event or condition into, or exchangeable for, any such shares of Equity Interests or (C) any warrants, options, contracts or other commitments entitling any Person to purchase or otherwise acquire any such shares of Equity Interests.
 
(h)            Dispositions and Other Liens .
 
(i)            Except to the extent expressly permitted by Section 7.02(c) of the Financing Agreement, no Grantor will make any Disposition of any of the Collateral.
 
(ii)            Except to the extent expressly permitted by Section 7.02(a) of the Financing Agreement, no Grantor will create, suffer to exist or grant any Lien upon or with respect to any Collateral.
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(i)            Intellectual Property .
 
(i)            Upon the reasonable request of the Collateral Agent, in order to facilitate filings with the United States Patent and Trademark Office and the United States Copyright Office, each Grantor shall execute and deliver to the Collateral Agent one or more Copyright Security Agreements, Trademark Security Agreements, or Patent Security Agreements to further evidence the Collateral Agent’s Lien on such Grantor’s Patents, Trademarks, or Copyrights, and the General Intangibles of such Grantor relating thereto or represented thereby.
 
(ii)            Each Grantor shall use its best efforts, with respect to Intellectual Property that is material to the operation of such Grantor’s or its Subsidiaries’ business, to protect and diligently enforce and defend at such Grantor’s reasonable expense its Intellectual Property, including (A) to diligently enforce and defend, including promptly suing for infringement, misappropriation, or dilution and to recover any and all damages for such infringement, misappropriation, or dilution, and filing for opposition, interference, and cancellation against conflicting Intellectual Property rights of any Person, (B) to prosecute diligently any trademark application or service mark application that is part of the Trademarks pending as of the date hereof or hereafter until the termination of this Agreement, (C) to prosecute diligently any patent application that is part of the Patents pending as of the date hereof or hereafter until the termination of this Agreement, (D) to take all reasonable and necessary action to preserve and maintain all of such Grantor’s Trademarks, Patents, Copyrights, Licenses necessary in the conduct of such Grantor’s or its Subsidiaries’ business, and its rights therein, including paying all maintenance fees and filing of applications for renewal, affidavits of use, and affidavits of noncontestability, and (E) to require all employees, consultants, and contractors of such Grantor who were involved in the creation or development of material Intellectual Property to sign agreements containing assignment of material Intellectual Property rights and obligations of confidentiality.  Each Grantor further agrees not to abandon any Intellectual Property or Intellectual Property License that is material to the conduct of such Grantor’s business.
 
(iii)            Grantors acknowledge and agree that the Secured Parties shall have no duties (other than those expressly set forth herein) with respect to any Intellectual Property or Licenses of any Grantor.  Without limiting the generality of this Section 6(i)(iii), Grantors acknowledge and agree that no member of the Secured Parties shall be under any obligation to take any steps necessary to preserve rights in the Collateral consisting of Intellectual Property or Licenses against any other Person, but any Secured Party may do so at its option if an Event of Default has occurred and is continuing, and all reasonable expenses incurred in connection therewith (including reasonable fees and expenses of attorneys and other professionals) shall be for the sole account of the Borrowers and shall be chargeable to the Loan Account.
 
(iv)            Each Grantor shall promptly file an application with the United States Copyright Office for any Copyright that has not been registered with the United States Copyright Office if such Copyright is material to the operation of the business of such Grantor in the good faith determination of such Grantor.  Any expenses incurred in connection with the foregoing shall be borne by the Grantors.
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(v)            On each date on which financial statements are delivered by the Borrowers pursuant to Section 7.01(a)(ii) of the Financing Agreement, each Grantor shall provide the Collateral Agent with a written report of all new Patents or Trademarks that are registered or the subject of pending applications for registrations, and of all Licenses that are material to the conduct of such Grantor’s business, in each case, which were acquired, registered, or for which applications for registration were filed by any Grantor during the prior period and any statement of use or amendment to allege use with respect to intent-to-use trademark applications.  In each of the foregoing cases, the applicable Grantor shall promptly cause to be prepared and delivered to the Collateral Agent supplemental schedules to the applicable Loan Documents to identify such Patent and Trademark registrations and applications therefor (with the exception of Trademark applications filed on an intent-to-use basis for which no statement of use or amendment to allege use has been filed) and Licenses as being subject to the security interests created thereunder.
 
(vi)            Anything to the contrary in this Agreement notwithstanding, in no event shall any Grantor, either itself or through any agent, employee, licensee, or designee, file an application for the registration of any material Copyright with the United States Copyright Office or any similar office or agency in another country without giving the Collateral Agent written notice thereof at least three (3) Business Days prior to such filing and complying with Section 6(i)(i) hereof. Upon receipt from the United States Copyright Office of notice of registration of any material Copyright, each Grantor shall promptly (but in no event later than ten (10) Business Days following such receipt) notify (but without duplication of any notice required by Section 6(h)(v) hereof) the Collateral Agent of such registration and delivering, or causing to be delivered, to the Collateral Agent, documentation reasonably requested by the Collateral Agent and sufficient to perfect the Collateral Agent’s Liens on such Copyright.  If any Grantor acquires from any Person any Copyright registered with the United States Copyright Office material to its business or an application to register any Copyright with the United States Copyright Office material to its business, such Grantor shall promptly (but in no event later than the later of (x) ten (10) Business Days following such acquisition and (y) the time period set forth in Section 7.01(b) of the Financing Agreement) notify the Collateral Agent of such acquisition and deliver, or cause to be delivered, to the Collateral Agent, documentation reasonably requested by the Collateral Agent and sufficient to perfect the Collateral Agent’s Liens on such Copyright.
 
(vii)            Each Grantor shall take reasonable steps to maintain the confidentiality of, and otherwise protect and enforce its rights in, the material Intellectual Property that is necessary in the conduct of such Grantor’s business.
 
(viii)            [Intentionally omitted].
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(j)            Deposit, Commodities and Securities Accounts .  Each Grantor shall execute and deliver to the Collateral Agent (or its designee) a Control Agreement to the extent required under Article VIII of the Financing Agreement.  Without the prior written consent of the Collateral Agent, no Grantor shall make or maintain any Deposit Account, Commodity Account or Securities Account except in compliance with Article VIII of the Financing Agreement.  The provisions of this Section 6(j) shall not apply to Excluded Accounts.
 
(k)            Titled Collateral .  At the reasonable request of the Collateral Agent, each Grantor shall (a) cause all material Titled Collateral, now owned or hereafter acquired by any Grantor, which under applicable law are required to be registered, to be properly registered in the name of such Grantor, (b) cause all Titled Collateral (other than Excluded Property) to be properly titled in the name of such Grantor, and if requested by the Collateral Agent, with the Collateral Agent’s Lien noted thereon and (c) promptly deliver to the Collateral Agent (or its custodian) originals of all such Certificates of Title or certificates of ownership for such Titled Collateral (other than Excluded Property), with the Collateral Agent’s Lien noted thereon, and take such other actions in the United States as may be reasonably required by the Collateral Agent.
 
(l)            Control .  Except to the extent otherwise expressly provided in the Loan Documents, each Grantor hereby agrees to promptly take any or all action that is necessary or reasonably desirable or that the Collateral Agent may reasonably request in order for the Collateral Agent to obtain control in accordance with Sections 9-104, 9-105, 9-106, and 9-107 of the Code with respect to the following Collateral:  (i) Deposit Accounts constituting Collateral, (ii) Electronic Chattel Paper constituting Collateral, (iii) Investment Property constituting Collateral and (iv) Letter-of-Credit Rights constituting Collateral.  Each Grantor hereby acknowledges and agrees that any agent or designee of the Collateral Agent shall be deemed to be a “secured party” with respect to the Collateral under the control of such agent or designee for all purposes.
 
(m)            [Intentionally omitted] .
 
(n)            Partnership and Limited Liability Company Interest .  Except with respect to Collateral consisting of partnership interests and membership interests evidenced by a certificate, which certificate has been pledged and delivered to the Collateral Agent pursuant to Section 4 hereof, no Grantor that is a partnership or a limited liability company shall, nor shall any Grantor with any Subsidiary that is a partnership or a limited liability company, without the prior written consent of the Collateral Agent, permit such partnership interests or membership interests to (i) be dealt in or traded on securities exchanges or in securities markets, (ii) become a security for purposes of Article 8 of any relevant Uniform Commercial Code, (iii) become an investment company security within the meaning of Section 8-103 of any relevant Uniform Commercial Code or (iv) be evidenced by a certificate.  Each Grantor agrees that such uncertificated partnership interests or membership interests shall constitute General Intangibles.
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SECTION 7.            Voting Rights, Dividends, Etc. in Respect of the Pledged Interests .
 
(a)            So long as no Event of Default shall have occurred and be continuing:
 
(i)            each Grantor may exercise any and all voting and other consensual rights pertaining to any Pledged Interests for any purpose not inconsistent with the terms of this Agreement, the Financing Agreement or the other Loan Documents; provided , however , that (A) each Grantor will give the Collateral Agent at least five (5) Business Days’ written notice of the manner in which it intends to exercise, or the reasons for refraining from exercising, any such right that could reasonably be expected to adversely affect in any material respect the value, liquidity or marketability of any Collateral constituting Pledged Interests or the creation, perfection and priority of the Collateral Agent’s Lien (subject to Permitted Liens); and (B) none of the Grantors will exercise or refrain from exercising any such right, as the case may be, if the Collateral Agent gives a Grantor notice that, in the Collateral Agent’s reasonable judgment, such action (or inaction) could reasonably be expected to adversely affect in any material respect the value, liquidity or marketability of any Collateral constituting Pledged Interests or the creation, perfection and priority of the Collateral Agent’s Lien (subject to Permitted Liens); and
 
(ii)            except as otherwise provided in Section 4(b) of this Agreement and to the extent permitted by the Financing Agreement, each of the Grantors may receive and retain any and all dividends, interest or other distributions paid in respect of the Pledged Interests; and
 
(iii)            the Collateral Agent will execute and deliver (or cause to be executed and delivered) to a Grantor all such proxies and other instruments as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and other rights which it is entitled to exercise pursuant to Section 7(a)(i) hereof and to receive the dividends, interest and/or other distributions which it is authorized to receive and retain pursuant to Section 7(a)(ii) hereof.
 
(b)            If an Event of Default has occurred and is continuing:
 
(i)            all rights of each Grantor to exercise the voting and other consensual rights which it would otherwise be entitled to exercise pursuant to Section 7(a)(i) hereof, and to receive the dividends, distributions, interest and other payments that it would otherwise be authorized to receive and retain pursuant to Section 7(a)(ii) hereof, shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to exercise such voting and other consensual rights and to receive and hold as Pledged Interests such dividends, distributions and interest payments;
 
(ii)            the Collateral Agent is authorized to notify each debtor with respect to the Pledged Debt to make payment directly to the Collateral Agent (or its designee) and may collect any and all moneys due or to become due to any Grantor in respect of the Pledged Debt, and each of the Grantors hereby authorizes each such debtor to make such payment directly to the Collateral Agent (or its designee) without any duty of inquiry;
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(iii)            without limiting the generality of the foregoing, the Collateral Agent (acting at the direction of the Required Lenders) may at its option exercise any and all rights of conversion, exchange, subscription or any other rights, privileges or options pertaining to any of the Pledged Interests as if it were the absolute owner thereof, including, without limitation, the right to exchange, in its discretion, any and all of the Pledged Interests upon the merger, consolidation, reorganization, recapitalization or other adjustment of any Pledged Issuer, or upon the exercise by any Pledged Issuer of any right, privilege or option pertaining to any Pledged Interests, and, in connection therewith, to deposit and deliver any and all of the Pledged Interests with any committee, depository, transfer agent, registrar or other designated agent upon such terms and conditions as it may determine; and
 
(iv)            all dividends, distributions, interest and other payments that are received by any of the Grantors contrary to the provisions of Section 7(b)(i) hereof shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of the Grantors, and shall be forthwith paid over to the Collateral Agent as Pledged Interests in the exact form received with any necessary indorsement and/or appropriate stock powers duly executed in blank, to be held by the Collateral Agent as Pledged Interests and as further collateral security for the Secured Obligations.
 
SECTION 8.            Additional Provisions Concerning the Collateral .
 
(a)            To the maximum extent permitted by applicable law, and for the purpose of taking any action that the Collateral Agent may deem necessary to accomplish the purposes of this Agreement, each Grantor hereby (i) authorizes the Collateral Agent to execute any such agreements, instruments or other documents in such Grantor’s name and to file such agreements, instruments or other documents in such Grantor’s name and in any appropriate filing office, (ii)  authorizes the Collateral Agent at any time and from time to time to file, one or more financing or continuation statements and amendments thereto, relating to the Collateral (including, without limitation, any such financing statements that (A) describe the Collateral as “all assets” or “all personal property” (or words of similar effect) or that describe or identify the Collateral by type or in any other manner as the Collateral Agent may determine, regardless of whether any particular asset of such Grantor falls within the scope of Article 9 of the Code or whether any particular asset of such Grantor constitutes part of the Collateral (but excluding Excluded Property), and (B) contain any other information required by Part 5 of Article 9 of the Code for the sufficiency or filing office acceptance of any financing statement, continuation statement or amendment, including, without limitation, whether such Grantor is an organization, the type of organization and any organizational identification number issued to such Grantor) and (iii) ratifies such authorization to the extent that the Collateral Agent has filed any such financing statements, continuation statements, or amendments thereto, prior to the date hereof.  A photocopy or other reproduction of this Agreement or any financing statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by law.
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(b)            Each Grantor hereby irrevocably appoints the Collateral Agent as its attorney-in-fact and proxy, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time in the Collateral Agent’s discretion, to take, if an Event of Default has occurred and is continuing, any action and to execute any instrument (in each case, subject to applicable laws) that the Collateral Agent (acting at the direction of the Required Lenders) may deem necessary to accomplish the purposes of this Agreement (subject to the rights of a Grantor under Section 6 hereof and Section 7(a) hereof), including, without limitation, if an Event of Default has occurred and is continuing: (i) to obtain and adjust insurance required to be paid to the Collateral Agent pursuant to the Financing Agreement, (ii) to ask, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due under or in respect of any Collateral, (iii) to receive, endorse, and collect any drafts or other Instruments, Documents and Chattel Paper in connection with clause (i) or (ii) above, (iv) to receive, indorse and collect all Instruments made payable to such Grantor representing any dividend, interest payment or other distribution in respect of any Pledged Interests and to give full discharge for the same, (v) to file any claims or take any action or institute any proceedings which the Collateral Agent may deem necessary for the collection of any Collateral or otherwise to enforce the rights of the Collateral Agent and the Lenders with respect to any Collateral, (vi) to execute assignments, licenses and other documents to enforce the rights of the Collateral Agent and the Lenders with respect to any Collateral, (vii) to pay or discharge taxes or Liens levied or placed upon or threatened against the Collateral, the legality or validity thereof and the amounts necessary to discharge the same to be determined by the Collateral Agent (acting at the direction of the Required Lenders) in its reasonable discretion, and such payments made by the Collateral Agent to become Obligations of such Grantor to the Collateral Agent, due and payable immediately without demand, and (viii) to sign and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, assignments, verifications and notices in connection with Accounts, Chattel Paper and other documents relating to the Collateral.  This power is coupled with an interest and is irrevocable until the Termination Date.
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(c)            For the purpose of enabling the Collateral Agent to exercise rights and remedies hereunder during a continuing Event of Default, at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies during a continuing Event of Default, and for no other purpose, each Grantor hereby (i) grants to the Collateral Agent an irrevocable, non-exclusive license (exercisable without payment of royalty or other compensation to any Grantor) to use, assign, license or sublicense any Intellectual Property now or hereafter owned by any Grantor, wherever the same may be located, including in such license reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer programs used for the compilation or printout thereof; and (ii) assigns to the Collateral Agent, to the extent assignable, all of its rights to any Intellectual Property now or hereafter licensed or used by any Grantor.  Notwithstanding anything contained herein to the contrary, but subject to the provisions of the Financing Agreement that limit the right of a Grantor to dispose of its property and Section 6(i) hereof, so long as no Event of Default shall have occurred and be continuing, each Grantor may exploit, use, enjoy, protect, license, sublicense, assign, sell, dispose of or take other actions with respect to the Intellectual Property in the ordinary course of its business.  In furtherance of the foregoing, unless an Event of Default shall have occurred and be continuing, the Collateral Agent shall from time to time, upon the request of a Grantor, execute and deliver any instruments, certificates or other documents, in the form so requested, which such Grantor shall have certified are appropriate (in such Grantor’s judgment) to allow it to take any action permitted above (including relinquishment of the license provided pursuant to this clause (c) as to any Intellectual Property).  Further, upon the Termination Date, the Collateral Agent (subject to Section 13(e) hereof) shall release and reassign to the Grantors all of the Collateral Agent’s right, title and interest in and to the Intellectual Property, and the Licenses, all without recourse, representation or warranty whatsoever and at the Grantors’ sole expense.  The exercise of rights and remedies hereunder by the Collateral Agent shall not terminate the rights of the holders of any licenses or sublicenses theretofore granted by any Grantor in accordance with the second sentence of this clause (c).  Each Grantor hereby releases the Collateral Agent from any claims, causes of action and demands at any time arising out of or with respect to any actions taken or omitted to be taken by the Collateral Agent under the powers of attorney granted herein other than actions taken or omitted to be taken through the Collateral Agent’s gross negligence or willful misconduct, as determined by a final determination of a court of competent jurisdiction.
 
(d)            If any Grantor fails to perform any agreement or obligation contained herein, and if an Event of Default has occurred and is continuing, the Collateral Agent (acting at the direction of the Required Lenders) may itself perform, or cause performance of, such agreement or obligation, in the name of such Grantor or the Collateral Agent, and the reasonable and documented expenses of the Collateral Agent incurred in connection therewith shall be jointly and severally payable by the Grantors pursuant to Section 10 hereof and shall be secured by the Collateral.
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(e)            The powers conferred on the Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers.  Other than the exercise of reasonable care to assure the safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any Collateral or as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral and shall be relieved of all responsibility for any Collateral in its possession upon surrendering it or tendering surrender of it to any of the Grantors (or whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct). The Collateral Agent shall be deemed to have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its own property, it being understood that the Collateral Agent shall not have responsibility for ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relating to any Collateral, whether or not the Collateral Agent has or is deemed to have knowledge of such matters.  The Collateral Agent shall not be liable or responsible for any loss or damage to any of the Collateral, or for any diminution in the value thereof, by reason of the act or omission of any warehouseman, carrier, forwarding agency, consignee or other agent or bailee selected by the Collateral Agent in good faith.
 
(f)            Anything herein to the contrary notwithstanding (i) each Grantor shall remain liable under the Licenses and otherwise in respect of the Collateral to the extent set forth therein to perform all of its obligations thereunder to the same extent as if this Agreement had not been executed, (ii) the exercise by the Collateral Agent of any of its rights hereunder shall not release any Grantor from any of its obligations under the Licenses or otherwise in respect of the Collateral, and (iii) the Collateral Agent shall not have any obligation or liability by reason of this Agreement under the Licenses or otherwise in respect of the Collateral, nor shall the Collateral Agent be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.
 
(g)            If an Event of Default has occurred and is continuing, the Collateral Agent (acting at the direction of the Required Lenders) may at any time (i) without notice to any Grantor, transfer or register in the name of the Collateral Agent or any of its nominees any or all of the Pledged Interests, and (ii) exchange certificates or Instruments constituting Pledged Interests for certificates or Instruments of smaller or larger denominations.
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SECTION 9.            Remedies Upon Default .  If any Event of Default shall have occurred and be continuing:
 
(a)            The Collateral Agent (acting at the direction of the Required Lenders) may exercise in respect of the Collateral, in addition to any other rights and remedies provided for herein or otherwise available to it, all of the rights and remedies of a secured party upon default under the Code (whether or not the Code applies to the affected Collateral), and also may in accordance with applicable law (including, to the extent applicable, foreign law) (i) take absolute control of the Collateral, including, without limitation, transfer into the Collateral Agent’s name or into the name of its nominee or nominees (to the extent the Collateral Agent has not theretofore done so) and thereafter receive, for the benefit of the Collateral Agent and the Lenders, all payments made thereon, give all consents, waivers and ratifications in respect thereof and otherwise act with respect thereto as though it were the outright owner thereof, (ii) require each Grantor to, and each Grantor hereby agrees that it will at its expense and upon request of the Collateral Agent forthwith, assemble all or part of the Collateral as directed by the Collateral Agent and make it available to the Collateral Agent at a place or places to be designated by the Collateral Agent that is reasonably convenient to both parties, and the Collateral Agent may enter into and occupy any premises owned or leased by any Grantor where the Collateral or any part thereof is located or assembled for a reasonable period in order to effectuate the Collateral Agent’s rights and remedies hereunder or under law, without obligation to any Grantor in respect of such occupation, and (iii) without notice except as specified below and without any obligation to prepare or process the Collateral for sale, (A) sell the Collateral   or any part thereof in one or more parcels at public or private sale, at any of the Collateral Agent’s offices, at any exchange or broker’s board or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as the Collateral Agent may deem commercially reasonable and/or (B) lease, license or otherwise dispose of the Collateral or any part thereof upon such terms as the Collateral Agent may deem commercially reasonable.  Each Grantor agrees that, to the extent notice of sale or any other disposition of the Collateral shall be required by law, at least ten (10) days’ prior notice to the applicable Grantor of the time and place of any public sale or the time after which any private sale or other disposition of the Collateral is to be made shall constitute reasonable notification.  The Collateral Agent shall not be obligated to make any sale or other disposition of Collateral regardless of notice of sale having been given.  The Collateral Agent (acting at the direction of the Required Lenders) may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.  Each Grantor hereby waives any claims against the Collateral Agent and the Lenders arising by reason of the fact that the price at which the Collateral may have been sold at a private sale was less than the price which might have been obtained at a public sale or was less than the aggregate amount of the Secured Obligations, even if the Collateral Agent accepts the first offer received and does not offer the Collateral to more than one offeree, and waives all rights that such Grantor may have to require that all or any part of the Collateral be marshaled upon any sale (public or private) thereof.  Each Grantor hereby acknowledges that (i) any such sale of the Collateral by the Collateral Agent shall be made without warranty, (ii) the Collateral Agent may specifically disclaim any warranties of title, possession, quiet enjoyment or the like, (iii) the Collateral Agent may bid (which bid may be, in whole or in part, in the form of cancellation of indebtedness), if permitted by law, for the purchase, lease, license or other disposition of the Collateral or any portion thereof for the account of the Collateral Agent (on behalf of itself and the Lenders) and (iv) such actions set forth in clauses (i), (ii) and (iii) above shall not adversely affect the commercial reasonableness of any such sale of the Collateral.  In addition to the foregoing, (i) upon written notice to any Grantor from the Collateral Agent (acting at the direction of the Required Lenders), each Grantor shall cease any use of the Intellectual Property or any trademark, patent or copyright similar thereto for any purpose described in such notice; (ii) the Collateral Agent (acting at the direction of the Required Lenders) may, at any time and from time to time, upon five (5) days’ prior notice to any Grantor, license (subject to any such licensee’s obligation to maintain the quality of goods and/or services provided under any Trademark consistent with the quality of such good and/or services provide by such Grantor immediately prior to the Event of Default), whether general, special or otherwise, and whether on an exclusive or non-exclusive basis, any of the Intellectual Property, throughout the universe for such term or terms, on such conditions, and in such manner, as the Collateral Agent (acting at the direction of the Required Lenders) shall determine (other than in violation of any then-existing licensing arrangements to the extent that waivers thereunder cannot be obtained with the use of commercially reasonable efforts); and (iii) the Collateral Agent may, at any time, pursuant to the authority granted in Section 8 hereof (such authority being effective only upon the occurrence and during the continuance of an Event of Default), execute and deliver on behalf of a Grantor, one or more instruments of assignment of the Intellectual Property (or any application or registration thereof), in form suitable for filing, recording or registration in any country (other than in violation of any then-existing licensing arrangements to the extent that waivers thereunder cannot be obtained with the use of commercially reasonable efforts).
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(b)            [Intentionally omitted].
 
(c)            Each Grantor recognizes that the Collateral Agent may deem it impracticable to effect a public sale of all or any part of the Pledged Shares or any other securities constituting Pledged Interests and that the Collateral Agent (acting at the direction of the Required Lenders) may, therefore, determine to make one or more private sales of any such securities to a restricted group of purchasers who will be obligated to agree, among other things, to acquire such securities for their own account, for investment and not with a view to the distribution or resale thereof.  Each Grantor acknowledges that any such private sale may be at prices and on terms less favorable to the seller than the prices and other terms which might have been obtained at a public sale and, notwithstanding the foregoing, agrees that such private sales shall be deemed to have been made in a commercially reasonable manner.
 
(d)            Any cash held by the Collateral Agent (or its agent or designee) as Collateral and all Cash Proceeds received by the Collateral Agent (or its agent or designee) in respect of any sale of or collection from, or other realization upon, all or any part of the Collateral may, in the discretion of the Collateral Agent (acting at the direction of the Required Lenders), be held by the Collateral Agent (or its agent or designee) as collateral for, and/or then or at any time thereafter applied (after payment of any amounts payable to the Collateral Agent pursuant to Section 10 hereof) in whole or in part by the Collateral Agent against, all or any part of the Secured Obligations as set forth in Section 4.03(b) of the Financing Agreement.  Any surplus of such cash or Cash Proceeds held by the Collateral Agent (or its agent or designee) and remaining after the Termination Date shall be paid over to the Borrowers (or their successors or assigns) or as a court of competent jurisdiction shall direct.
 
(e)            In the event that the proceeds of any such sale, collection or realization are insufficient to pay all amounts to which the Secured Parties are legally entitled, the Grantors shall be jointly and severally liable for the deficiency, together with interest thereon at the highest rate specified in any applicable Loan Document for interest on overdue principal thereof or such other rate as shall be fixed by applicable law, together with the costs of collection and the reasonable fees, costs and expenses of any attorneys employed by the Collateral Agent to collect such deficiency.
 
(f)            Each Grantor hereby acknowledges that if the Collateral Agent complies with any applicable requirements of law in connection with a disposition of the Collateral, such compliance will not adversely affect the commercial reasonableness of any sale or other disposition of the Collateral.
 
(g)            The Collateral Agent shall not be required to marshal any present or future collateral security (including, but not limited to, this Agreement and the Collateral) for, or other assurances of payment of, the Secured Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order, and all of the Collateral Agent’s rights hereunder and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights, however existing or arising.  To the extent that any Grantor lawfully may, such Grantor hereby agrees that it will not invoke any law relating to the marshalling of collateral which might cause delay in or impede the enforcement of the Collateral Agent’s rights under this Agreement or under any other instrument creating or evidencing any of the Secured Obligations or under which any of the Secured Obligations is outstanding or by which any of the Secured Obligations is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, each Grantor hereby irrevocably waives the benefits of all such laws.
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(h)            Each Grantor irrevocably and unconditionally, subject to applicable law:
 
(i)            consents to   the appointment of pre-judgment and/or post-judgment receiver with all of the same powers that would otherwise be available to the Grantors, including, but not limited to the power to (A) hold, manage, control or dispose of the Collateral wherever located, (B) take any action with respect to the Collateral to the maximum extent permitted by law and (C) conduct a public or private sale of any or all of the Loan Parties’ right, title and interest in and to such Collateral, including any disposition of the Collateral to the Collateral Agent/Lenders in exchange for cancellation of all or a portion of the Obligations;
 
(ii)            consents that any such receiver can be appointed without a hearing or prior notice to the Grantors;
 
(iii)            agrees not to oppose or otherwise interfere (directly or indirectly) with any effort by Collateral Agent to seek the appointment of a receiver;
 
(iv)            waives any right to demand that a bond be posted in connection with the appointment of any such receiver; and
 
(v)            waives any right to appeal the entry of an order authorizing the appointment of a receiver.
 
SECTION 10.            Indemnity and Expenses .
 
(a)            Each Grantor jointly and severally agrees to defend, protect, indemnify and hold harmless the Collateral Agent and its Indemnitees from and against any and all claims, losses, damages, liabilities, obligations, penalties, fees, reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees, costs, expenses and disbursements) incurred by the any Agent or its Indemnitee to the extent set forth in Section 12.15 of the Financing Agreement.
 
(b)            Each Grantor jointly and severally agrees to pay to the any Agent the reasonable costs and expenses of the such Agent specified in Section 12.04 of the Financing Agreement, as set forth in Section 12.04 of the Financing Agreement.
 
SECTION 11.            Notices, Etc.   All notices and other communications provided for hereunder shall be given in accordance with Section 12.01 of the Financing Agreement.
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SECTION 12.            Security Interest Absolute; Joint and Several Obligations .
 
(a)            All rights of the Secured Parties, all Liens and all obligations of each of the Grantors hereunder shall be absolute and unconditional irrespective of (i) any lack of validity or enforceability of the Financing Agreement or any other Loan Document, (ii) any change in the time, manner or place of payment of, or in any other term in respect of, all or any of the Secured Obligations, or any other amendment or waiver of or consent to any departure from the Financing Agreement or any other Loan Document, (iii) any exchange or release of, or non-perfection of any Lien on any Collateral, or any release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Secured Obligations, or (iv) to the extent permitted under applicable law, any other circumstance that might otherwise constitute a defense available to, or a discharge of, any of the Grantors in respect of the Secured Obligations.  All authorizations and agencies contained herein with respect to any of the Collateral are irrevocable and powers coupled with an interest.
 
(b)            Each Grantor hereby waives (i) promptness and diligence, (ii) notice of acceptance and notice of the incurrence of any Obligation by the Borrowers, (iii) notice of any actions taken by any Secured Party, any Guarantor or any other Person under any Loan Document or any other agreement, document or instrument relating thereto, (iv) all other notices, demands and protests, and all other formalities of every kind in connection with the enforcement of the Obligations, the omission of or delay in which, but for the provisions of this subsection (b), might constitute grounds for relieving such Grantor of any such Grantor’s obligations hereunder and (v) any requirement that any Secured Party protect, secure, perfect or insure any security interest or other lien on any property subject thereto or exhaust any right or take any action against any Grantor or any other Person or any collateral.
 
(c)            All of the obligations of the Grantors hereunder are joint and several.  The Collateral Agent (acting at the direction of the Required Lenders) may, in its sole and absolute discretion, enforce the provisions hereof against any of the Grantors and shall not be required to proceed against all Grantors jointly or seek payment from the Grantors ratably.  In addition, the Collateral Agent (acting at the direction of the Required Lenders) may, in its sole and absolute discretion, select the Collateral of any one or more of the Grantors for sale or application to the Secured Obligations, without regard to the ownership of such Collateral, and shall not be required to make such selection ratably from the Collateral owned by all of the Grantors.  The release or discharge of any Grantor by the Collateral Agent shall not release or discharge any other Grantor from the obligations of such Person hereunder.
 
SECTION 13.            Miscellaneous .
 
(a)            No amendment of any provision of this Agreement (including any Schedule attached hereto) shall be effective unless it is in writing and signed by each Grantor affected thereby and the Collateral Agent, and no waiver of any provision of this Agreement, and no consent to any departure by any Grantor therefrom, shall be effective unless it is in writing and signed by the Collateral Agent, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.
25

 
(b)            No failure on the part of the Secured Parties to exercise, and no delay in exercising, any right hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right.  The rights and remedies of the Secured Parties provided herein and in the other Loan Documents are cumulative and are in addition to, and not exclusive of, any rights or remedies provided by law.  The rights of the Secured Parties under any Loan Document against any party thereto are not conditional or contingent on any attempt by such Person to exercise any of its rights under any other Loan Document against such party or against any other Person, including but not limited to, any Grantor.
 
(c)            This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect until the Termination Date, and (ii) be binding on each Grantor, and shall inure, together with all rights and remedies of the Secured Parties hereunder, to the benefit of the Secured Parties and their respective successors, permitted transferees and permitted assigns.  Without limiting the generality of clause (ii) of the immediately preceding sentence, the Secured Parties may assign or otherwise transfer their respective rights and obligations under this Agreement and any other Loan Document in accordance with Section 12.07 of the Financing Agreement, and such permitted transferee shall thereupon become vested with all of the benefits in respect thereof granted to the Secured Parties under the Loan Documents.  Upon any such assignment or transfer in accordance with Section 12.07 of the Financing Agreement, all references in this Agreement to any Secured Party shall mean such permitted assignee of any such Secured Party.  None of the rights or obligations of any Grantor hereunder may be assigned or otherwise transferred without the prior written consent of the Collateral Agent, and any such assignment or transfer shall be null and void.
 
(d)            Upon the Termination Date, subject to paragraph (e) below, (i) this Agreement and the security interests and licenses created hereby shall terminate and be released and all rights to the Collateral shall revert to the Grantors, and (ii) the Collateral Agent will, upon the Grantors’ request and at the Grantors’ expense, without any representation, warranty or recourse whatsoever, (A) return to the Grantors (or whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct) such of the Collateral as shall not have been sold or otherwise disposed of or applied pursuant to the terms hereof, (B) execute and deliver to the Grantors such documents as the Grantors shall reasonably request to evidence such termination and release (including, without limitation, Code termination statements, US Patent and Trademark Office releases and US Copyright Office releases).  If any of the Collateral is sold, transferred or otherwise disposed of by any Grantor in a transaction permitted by the Financing Agreement, then the Lien created pursuant to this Agreement in such Collateral shall be released, and the Collateral Agent, upon such Grantor’s request and at such Grantor’s expense, shall execute and deliver to such Grantor such documents as the Grantors shall reasonably request to evidence the release of the Liens created hereby on such Collateral.   Upon the receipt of any necessary or proper instruments of termination, satisfaction or release prepared by the Administrative Borrower and reasonably satisfactory to the Collateral Agent, the Collateral Agent shall execute, deliver or acknowledge such instruments or releases to evidence the release of any Collateral permitted to be released pursuant to this Agreement or the Financing Agreement.
26

 
(e)            This Agreement shall remain in full force and effect and continue to be effective should any petition be filed by or against any Grantor for liquidation or reorganization, should any Grantor become insolvent or make an assignment for the benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any significant part of any Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at any time payment or performance of the Secured Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment or performance had not been made.  In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.
 
(f)            Upon the execution and delivery, or authentication, by any Person of a security agreement supplement in substantially the form of Exhibit C hereto (each a “ Security Agreement Supplement ”), (i) such Person shall be referred to as an “ Additional Grantor ” and shall be and become a Grantor, and each reference in this Agreement to “Grantor” shall also mean and be a reference to such Additional Grantor, and each reference in this Agreement and the other Loan Documents to “Collateral” shall also mean and be a reference to the Collateral of such Additional Grantor, and (ii) the supplemental Schedules I-XI attached to each Security Agreement Supplement shall be incorporated into and become a part of and supplement Schedules I-XI , respectively, hereto, and the Collateral Agent may attach such Schedules as supplements to such Schedules, and each reference to such Schedules shall mean and be a reference to such Schedules, as supplemented pursuant hereto.
 
(g)            THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT AS REQUIRED BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT THE VALIDITY AND PERFECTION OR THE PERFECTION AND THE EFFECT OF PERFECTION OR NON-PERFECTION OF THE SECURITY INTEREST CREATED HEREBY, OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAW OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.
 
(h)            EACH GRANTOR HEREBY IRREVOCABLY CONSENTS TO AND WAIVES ANY RIGHT TO OBJECT TO OR OTHERWISE CONTEST THE APPOINTMENT OF A RECEIVER AFTER THE OCCURRENCE OF AN EVENT OF DEFAULT.  EACH GRANTOR (i) GRANTS SUCH WAIVER AND CONSENTS KNOWINGLY AFTER HAVING DISCUSSED THE IMPLICATIONS THEREOF WITH COUNSEL, (ii) ACKNOWLEDGES THAT (A) THE UNCONTESTED RIGHT TO HAVE A RECEIVER APPOINTED FOR THE FOREGOING PURPOSES IS CONSIDERED ESSENTIAL BY THE SECURED PARTIES IN CONNECTION WITH THE ENFORCEMENT OF THEIR RIGHTS AND REMEDIES HEREUNDER AND UNDER THE OTHER DOCUMENTS EXECUTED IN CONNECTION HEREWITH, AND (B) THE AVAILABILITY OF SUCH APPOINTMENT AS A REMEDY UNDER THE FOREGOING CIRCUMSTANCES WAS A MATERIAL FACTOR IN INDUCING THE SECURED PARTIES TO MAKE (AND COMMIT TO MAKE) THE LOAN TO THE BORROWERS, AND (iii) AGREES TO ENTER INTO ANY AND ALL STIPULATIONS IN ANY LEGAL ACTIONS, OR AGREEMENTS OR OTHER INSTRUMENTS IN CONNECTION WITH THE FOREGOING AND TO COOPERATE FULLY WITH THE AGENTS OR LENDERS IN CONNECTION WITH THE ASSUMPTION AND EXERCISE OF CONTROL BY THE RECEIVER OVER ALL OR ANY PORTION OF THE COLLATERAL.
27

 
(i)            In addition to and without limitation of any of the foregoing, this Agreement shall be deemed to be a Loan Document and shall otherwise be subject to all of terms and conditions contained in Sections 12.10 and 12.11 of the Financing Agreement, mutatis mutandi .
 
(j)            Each party hereto irrevocably and unconditionally waives any right it may have to claim or recover in any legal action, suit or proceeding with respect to this Agreement any special, exemplary, punitive or consequential damages.
 
(k)            Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining portions hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction.
 
(l)            Section headings herein are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.
 
(m)            This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which shall be deemed an original, but all of such counterparts taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of this Agreement by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart.
 
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

28

IN WITNESS WHEREOF, each Grantor has caused this Agreement to be executed and delivered by its officer thereunto duly authorized, as of the date first above written.
 
  GRANTORS :
   
 
RIMINI STREET, INC.
   
 
By:
/s/ Seth Ravin           
   
Name: Seth Ravin
   
Title: Chief Executive Officer
 
 
 
 
SECURITY AGREEMENT


CORTLAND CAPITAL MARKET SERVICES LLC,
as Collateral Agent
 
     
     
     
By:
/s/Emily Ergang Pappas
 
 
Name: Emily Ergang Pappas
 
 
Title: Associate Counsel
 

 


SECURITY AGREEMENT


SCHEDULE I

LEGAL NAMES; ORGANIZATIONAL IDENTIFICATION NUMBERS; STATES OR JURISDICTIONS OF ORGANIZATION

Grantor
Type of Organization
Organizational ID Number
Jurisdiction of Organization
Rimini Street, Inc.
Corporation
 
Nevada


SCHEDULE II

COPYRIGHTS

None.


SCHEDULE III

LICENSES

None.

SCHEDULE IV

PATENTS

Company/Assignee
Country
Title
Application
Filing
Issue
Other
or
Assignees
     
Patent No.
Date
Date
 
Rimini Street, Inc.
U.S.
Capturing and Reviewing Changes Impacting Enterprise Resource Planning Systems
12/907,436
10/19/10
Pending
N/A
Rimini Street, Inc.
U.S.
Proxy for Modifying HTTP Messages to Comply with Browser
14/260,024
4/23/14
Pending
N/A
Rimini Street, Inc.
U.S.
Automatic Software-Update
Framework
14/729,579
6/3/15
Pending
N/A

SCHEDULE V

TRADEMARKS
 
Company
Country
Trademark
Application or Registration No.
Filing
Date
Registration Date
Assignees
Rimini
Street,
Inc.
U.S.
RIMINI
STREET
3,760,791
7/29/09
3/16/10
Not
applicable
Rimini
Street,
Inc.
Australia
RIMINI
STREET
1330573
11/9/09
11/9/09
Not
applicable
Rimini
Street,
Inc.
Brazil
RIMINI
STREET
902117203
11/13/09
1/14/14
Not
applicable
Rimini
Street,
Inc.
Canada
RIMINI
STREET
TMA810,123
11/9/09
10/25/11
Not
applicable
Rimini
Street,
Inc.
China
RIMINI
STREET
7978488
1/8/10
2/28/11
Not
applicable
Rimini
Street,
Inc.
European
Union
RIMINI
STREET
008673816
11/9/09
4/29/10
Not
applicable
Rimini
Street,
Inc.
Hong Kong
RIMINI
STREET
302136014
1/11/12
6/29/12
Not
applicable
Rimini
Street,
Inc.
Iceland
RIMINI
STREET
V0097717
8/12/15
3/31/16
Not
applicable
Rimini
Street,
Inc.
India
RIMINI
STREET
1882761
11/10/09
11/10/09
Not
applicable
Rimini
Street,
Inc.
Indonesia
RIMINI
STREET
IDM000427693
2/27/12
9/25/14
Not
applicable
Rimini
Street,
Inc.
Israel
RIMINI
STREET
244469
2/20/12
9/2/13
Not
applicable


 
Company
Country
Trademark
Application or Registration No.
Filing
Date
Registration Date
Assignees
Rimini
Street,
Inc.
Japan
RIMINI
STREET
5326395
11/9/09
5/28/10
Not
applicable
Rimini
Street,
Inc.
Liechtenstein
RIMINI
STREET
17662
10/06/15
4/7/16
Not
applicable
Rimini
Street,
Inc.
Malaysia
RIMINI
STREET
2012000680
1/13/12
1/13/12
Not
applicable
Rimini
Street,
Inc.
Mexico
RIMINI
STREET
1291157
1/17/12
6/14/12
Not
applicable
Rimini
Street,
Inc.
New Zealand
RIMINI
STREET
854969
1/11/12
7/12/12
Not
applicable
Rimini
Street,
Inc.
Norway
RIMINI
STREET
20151650
12/11/15
12/11/15
Not
applicable
Rimini
Street,
Inc.
Philippines
RIMINI
STREET
4-2012-000604
1/17/12
9/13/12
Not
applicable
Rimini
Street,
Inc.
Qatar
RIMINI
STREET
81169
4/23/13
Pending
Not
applicable
Rimini
Street,
Inc.
Russia
RIMINI
STREET
2015704323
2/19/15
Pending
Not
applicable
Rimini
Street,
Inc.
Saudi Arabia
RIMINI
STREET
143403743
2/2/13
1/22/14
Not
applicable
Rimini
Street,
Inc.
Singapore
RIMINI
STREET
T0913021A
11/11/09
7/15/10
Not
applicable
Rimini
Street,
Inc.
South Africa
RIMINI
STREET
2015/22058
8/11/15
Pending
Not
applicable


 
Company
Country
Trademark
Application or Registration No.
Filing
Date
Registration Date
Assignees
Rimini
Street,
Inc.
South Korea
RIMINI
STREET
41-0260498
1/11/12
6/5/13
Not
applicable
Rimini
Street,
Inc.
Taiwan
RIMINI
STREET
1545966
1/11/12
11/1/12
Not
applicable
Rimini
Street,
Inc.
Thailand
RIMINI
STREET
Bor63320
10/10/12
8/25/14
Not
applicable
Rimini
Street,
Inc.
Turkey
RIMINI
STREET
2015/15296
2/23/15
Pending
Not
applicable
Rimini
Street,
Inc.
United Arab
Emirates
RIMINI
STREET
186358
2/6/13
8/26/14
Not
applicable
Rimini
Street,
Inc.
U.S.
ENGINEERE
D FOR
SUPPORT
86/890,380
1/28/16
Pending
Not
applicable
Rimini
Street,
Inc.
Not
applicable
ServiceFirst
Methodology
Unregistered
Not
applicable
Not
applicable
Not
applicable
Rimini
Street,
Inc.
Not
applicable
legislature-to-
live
Unregistered
Not
applicable
Not
applicable
Not
applicable


SCHEDULE VI

LOCATIONS OF GRANTORS

Grantor
Chief Executive
Chief Place of
Books and Records
Inventory,
 
Office
Business
 
Equipment, Etc.
Rimini Street,
Inc.
3993 Howard Hughes Parkway,
Suite 500,
Las Vegas, NV 89169
6601 Koll Center
Parkway, Suite 300,
Pleasanton, CA
94566
3993 Howard Hughes Parkway,
Suite 500,
Las Vegas, NV 89169
 
6601 Koll Center
Parkway, Suite 300,
Pleasanton, CA
94566
 
 



SCHEDULE VII

DEPOSIT ACCOUNTS, SECURITIES ACCOUNTS AND COMMODITIES ACCOUNTS
 
Bank or Broker
Address
Account No.
Account Type
Bridge Bank N.A.
55 Almaden Blvd., San Jose, CA 95113
   
   
   
   
   
HSBC Bank USA,
N.A.
601 Montgomery St., Suite 1500,
San Francisco, CA 94111
   
Bank of America
1655 Grant Street, 11 th Floor,
Concord, CA 94520
   
315 Montgomery St. 13 th Floor,
San Francisco, CA 94104 1
   
   
   
   
American Express
Bank, FSB 2
4315 South 2700 West,
Salt Lake City, UT 84184
   





1   Effective June 27, 2016, the address will be 555 California St., 10 th Floor, San Francisco, CA 94104.
2   Account securing corporate credit card program of approximately $100,000.


SCHEDULE VIII

UCC FINANCING STATEMENTS
 
UCC Financing Statements have been filed in the jurisdictions below against the Grantors:

Name of Grantor
 
Secretary of State
 
       
Rimini Street, Inc.
 
Nevada Secretary of State
 
       
       



SCHEDULE IX

COMMERCIAL TORT CLAIMS
 
1.            Oracle Litigation
 
a.
Oracle USA, Inc., et al. v. Rimini Street, Inc., et al. , Case No. 2:10-cv-00106, United States District Court, District of Nevada, filed January 25, 2010
 
b.
Rimini Street, Inc. v. Oracle International Corp. , Case No. 2:14-cv-01699, United States District Court, District of Nevada, filed October 15, 2014
 
2. Insurance Claims related to Oracle Litigation
 
c.
Rimini Street, Inc. v. Hartford Fire Insurance Company, et al. , Case No. A-15-722003-B, Eighth Judicial District Court, Clark County, Nevada, filed July 23, 2015; case removed to United States District Court, District of Nevada on December 4, 2015, Case No. 2:15-cv-02292
 
d.
Rimini Street, Inc. v. Scottsdale Insurance Company, et al. , Case No. A-15-722084-B, Eighth Judicial District Court, Clark County, Nevada, filed July 23, 2015; case removed to United States District Court, District of Nevada on December 11, 2015, Case No. 2:15-cv-02374
 
e.
Rimini Street, Inc. v. Charter Oak Fire Insurance Company, et al. , Case No. A-15-721312-B, Eighth Judicial District Court, Clark County, Nevada, filed July 10, 2015; case removed to United States District Court, District of Nevada on September 14, 2015, Case No. 2:15-cv-01761


SCHEDULE X

PLEDGED DEBT

None.




SCHEDULE XI

PLEDGED SHARES

Grantor
Name of Pledged
Number of
Percentage of
Class
Certificate
Outstanding
     Issuer
Shares
Shares
Number
 
Rimini Street, Inc.
Rimini Street GmbH
16,250
65%
Common
Stock
N/A
Rimini Street Australia Pty Limited
65
65%
Common
Stock
2
RSI International Holdings, Inc.
650
65%
Common
Stock
2

EXHIBIT A

PLEDGE AMENDMENT
 
This Pledge Amendment, dated _________ __, ___, is delivered pursuant to Section 4 of the Pledge and Security Agreement referred to below.  The undersigned hereby agrees that this Pledge Amendment may be attached to the Pledge and Security Agreement, dated June 24, 2016, as it may heretofore have been or hereafter may be amended, restated, supplemented, modified or otherwise changed from time to time (the “ Security Agreement ”) and that the promissory notes or shares listed on this Pledge Amendment shall be hereby pledged and assigned to the Collateral Agent and become part of the Pledged Interests referred to in such Pledge Agreement and shall secure all of the Secured Obligations referred to in such Security Agreement.

Pledged Debt
Grantor
Name of Maker
Description
Principal Amount
Outstanding as of
       
       
 
 
Pledged Shares
Grantor
Name of
Pledged Issuer
Number of
Shares
Percentage of Outstanding
Shares
Class
Certificate
Number
           
           
 

 
[PLEDGOR]
 
 
 
 
 
 
 
By:
 
 
 
Name:
 
 
Title:
 
CB Agent Services LLC ,
as the Origination Agent
 
 
 
 
By: 
 
 
 
Name:
 
 
Title:
 
 
 
 
 
Exh. A-1

EXHIBIT B

GRANT OF A SECURITY INTEREST --[TRADEMARKS] [PATENTS] [COPYRIGHTS]

This [Trademark][Copyright][Patent] Security Agreement (this “ [Trademark][Copyright][Patent] Security Agreement ”) is made as of _____________, 20__, by ___________ (“ Grantor ”), in favor of Cortland Capital Market Services LLC, in its capacity as collateral agent for itself and the other Secured Parties (together with its successors and assigns in such capacity, “ Grantee ”).
 
WHEREAS, the Grantor [has adopted, used and is using, and holds all right, title and interest in and to, the trademarks and service marks listed on the attached Schedule A, which trademarks and service marks are registered or applied for in the United States Patent and Trademark Office (the “ Trademarks ”)] [holds all right, title and interest in the letter patents, design patents and utility patents listed on the attached Schedule A , which patents are issued or applied for in the United States Patent and Trademark Office (the “ Patents ”)] [holds all right, title and interest in the copyrights listed on the attached Schedule A , which copyrights are registered in the United States Copyright Office (the “ Copyrights ”)];
 
WHEREAS, the Grantor has entered into a Pledge and Security Agreement, dated June 24, 2016 (as amended, restated, supplemented, modified or otherwise changed from time to time, the “ Security Agreement ”), in favor of Grantee; and
 
WHEREAS, pursuant to the Security Agreement, the Grantor has granted to the Grantee for the benefit of the Secured Parties (as defined in the Security Agreement), a continuing security interest in all right, title and interest of the Grantor in, to and under the [Trademarks, together with, among other things, the goodwill of the business symbolized by the Trademarks] [Patents] [Copyrights] and the applications and registrations thereof, and all proceeds thereof, including, without limitation, any and all causes of action which may exist by reason of infringement thereof and any and all damages arising from past, present and future violations thereof (the “ Collateral ”), to secure the payment, performance and observance of the Secured Obligations (as defined in the Security Agreement).
 
NOW, THEREFORE, as collateral security for the payment, performance and observance of all of the Secured Obligations, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor does hereby grant to the Grantee and grant to the Grantee for the benefit of the Secured Parties, a continuing security interest in the Collateral to secure the prompt payment, performance and observance of the Secured Obligations.
 
All capitalized terms used but not otherwise defined herein have the meanings given to them in the Security Agreement
 
The Grantor does hereby further acknowledge and affirm that the rights and remedies of the Grantee with respect to the Collateral are more fully set forth in the Security Agreement, the terms and provisions of which are hereby incorporated herein by reference as if fully set forth herein.
 
This [Trademark][Patent][Copyright] Agreement may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart by facsimile or electronic mail shall be equally effective as delivery of an original executed counterpart.
 
[ Remainder of page intentionally left blank ]
Exh. B-1



IN WITNESS WHEREOF, the Grantor has caused this [Trademark][Copyright][Patent] Security Agreement to be duly executed by its officer thereunto duly authorized as of the date first set forth above.
 
 
[GRANTOR]
 
 
 
 
 
 
 
By:
 
 
 
Name:
 
 
Title:

STATE OF ____________
ss.:
COUNTY OF __________
 
On this ____ day of _______________, 20__, before me personally came ________________, to me known to be the person who executed the foregoing instrument, and who, being duly sworn by me, did depose and say that s/he is the ________________ of _______________________________________, a ____________________, and that s/he executed the foregoing instrument in the firm name of _______________________________________, and that s/he had authority to sign the same, and s/he acknowledged to me that he executed the same as the act and deed of said firm for the uses and purposes therein mentioned.
 
 
 
 
 [ Notary Seal]
    

Exh. B-2


SCHEDULE A TO GRANT OF A SECURITY INTEREST


[Trademark Registrations and Applications]
[Patents and Patent Applications]
[Copyright Registrations and Applications]

Exh. B-3

EXHIBIT C

FORM OF SECURITY AGREEMENT SUPPLEMENT
 
[Date of Security Agreement Supplement]
 
Cortland Capital Market Services LLC, as Collateral Agent
225 W. Washington Street, Suite 2100
Chicago, Illinois  60606
Attention:  Jessica Meade

Ladies and Gentlemen:

Reference hereby is made to (i) the Financing Agreement, dated as of June 24, 2016 (such agreement, as amended, restated, supplemented, modified or otherwise changed from time to time, including any replacement agreement therefor, being hereinafter referred to as the “ Financing Agreement ”) by and among Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” thereunder, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as defined in the Financing Agreement), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party thereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC (“ Cortland ”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“ Colbeck ”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”). and (ii) the Pledge and Security Agreement, dated as of June 24, 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “ Security Agreement ”), made by the Grantors from time to time party thereto in favor of the Origination Agent.  Capitalized terms defined in the Financing Agreement or the Security Agreement and not otherwise defined herein are used herein as defined in the Financing Agreement or the Security Agreement.
 
SECTION 1.            Grant of Security .  The undersigned hereby grants to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in, all of its right, title and interest in and to all of the Collateral (as defined in the Security Agreement) of the undersigned, whether now owned or hereafter acquired by the undersigned, wherever located and whether now or hereafter existing or arising, including, without limitation, the property and assets of the undersigned set forth on the attached supplemental schedules to the Schedules to the Security Agreement.
Exh. C-1

 
SECTION 2.            Security for Obligations .  The grant of a security interest in the Collateral by the undersigned under this Security Agreement Supplement and the Security Agreement secures the payment of all Secured Obligations of the undersigned now or hereafter existing under or in respect of the Loan Documents, whether direct or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract causes of action, costs, expenses or otherwise.  Without limiting the generality of the foregoing, each of this Security Agreement Supplement and the Security Agreement secures the payment of all amounts that constitute part of the Secured Obligations and that would be owed by the undersigned to the Collateral Agent or any Secured Party under the Loan Documents but for the fact that such Secured Obligations are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving a Grantor.
 
SECTION 3.            Supplements to Security Agreement Schedules .  The undersigned has attached hereto supplemental Schedules I through XI to Schedules I through XI , respectively, to the Security Agreement, and the undersigned hereby certifies, as of the date first above written, that such supplemental Schedules have been prepared by the undersigned in substantially the form of the equivalent Schedules to the Security Agreement, and such supplemental Schedules include all of the information required to be scheduled to the Security Agreement and do not omit to state any information material thereto.
 
SECTION 4.            Representations and Warranties .  The undersigned hereby makes each representation and warranty set forth in Section 5 of the Security Agreement (as supplemented by the attached supplemental Schedules) to the same extent as each other Grantor.
 
SECTION 5.            Obligations Under the Security Agreement .  The undersigned hereby agrees, as of the date first above written, to be bound as a Grantor by all of the terms and provisions of the Security Agreement to the same extent as each of the other Grantors.  The undersigned further agrees, as of the date first above written, that each reference in the Security Agreement to an “Additional Grantor” or a “Grantor” shall also mean and be a reference to the undersigned.
 
SECTION 6.            Governing Law .  This Security Agreement Supplement shall be governed by, and construed in accordance with, the laws of the State of New York.
 
SECTION 7.            Loan Document .  In addition to and without limitation of any of the foregoing, this Security Agreement Supplement shall be deemed to be a Loan Document and shall otherwise be subject to all of terms and conditions contained in Sections 12.10 and 12.11 of the Financing Agreement, mutatis mutandi .
 
 
Very truly yours,
 
 
 
[NAME OF ADDITIONAL LOAN PARTY]
 
 
 
 
By:
 
 
 
Name:
 
 
Title:
 
Exh. C-2

 
Acknowledged and Agreed:
 
CORTLAND CAPITAL MARKET SERVICES LLC ,
as Collateral Agent
 
 
 
 
By:
 
 
 
Name:
 
 
Title:
 
 
 
 
 


Exhibit 10.33
 

RIMINI STREET, INC.
3993 Howard Hughes Parkway, Suite 500
Las Vegas, Nevada 89169

 
June 24, 2016

CONFIDENTIAL

CB Agent Services LLC, as Origination Agent
under the below-referenced Financing Agreement
888 Seventh Avenue, 29 th Floor
New York, New York 10106

Re:
Commitment Fee Letter

Ladies and Gentlemen:

Reference is made to the Financing Agreement, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “ Financing Agreement ”), by and among Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” thereunder, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as defined in the Financing Agreement), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party thereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC (“ Cortland ”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“ Colbeck ”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”).  Capitalized terms used herein but not specifically defined herein shall have the meanings ascribed to them in the Financing Agreement.

In connection with the Financing Agreement, in consideration for the Origination Agent’s services in arranging and underwriting the financing facility pursuant to the Financing Agreement, the Borrowers hereby agree to pay to the Origination Agent the following fee for its own account:

1.            Commitment Fee . Upon the occurrence of a Trigger Event, the Borrowers shall immediately pay to the Origination Agent, in respect of the Delayed Draw A Term Loan Commitment and the Delayed Draw B Term Loan Commitment, a non-refundable commitment fee (the “ Commitment Fee ”) equal to the sum of the incremental amounts of Annual Run Rate Revenue (as defined below) multiplied by the ‘Multiplier’ set forth in the table below for such incremental amount of Annual Run Rate Revenue :
 
Annual Run Rate Revenue
Multiplier
Formula Used to
Determine Multiplier
*
$0 - $300,000,000
0.0690
2.3% x 3
Greater than $300,000,000 and less than or equal to $500,000,000
0.0492
1.64% x 3
Greater than $500,000,000 and less than or equal to $700,000,000
0.0294
0.98% x 3
Greater than $700,000,000
0.0099
0.33% x 3
 
* The last column is included solely for informational purposes, and is not part of the calculation of the actual Commitment Fee.


CB Agent Services LLC, as Origination Agent
as of June 24, 2016
Page 2
 
For purposes of this letter agreement, “ Trigger Event ” means the earliest of (a) the Final Maturity Date, (b) the Termination Date, (c) the acceleration of the Obligations in accordance with Section 9.01 of the Financing Agreement, including as a result of the commencement of an Insolvency Proceeding, (d) the satisfaction, release, payment, restructuring, reorganization, replacement, reinstatement, defeasance or compromise of any of the Obligations in any Insolvency Proceeding, foreclosure (whether by power of judicial proceeding or otherwise) or deed in lieu of foreclosure or the making of a distribution of any kind in any Insolvency Proceeding to the Collateral Agent, for the account of the Lenders in full or partial satisfaction of the Obligations and (e) the termination of the Financing Agreement for any reason.

Example of Commitment Fee calculation: $325,000,000 in Annual Run Rate Revenue at the time of payment of the Commitment Fee shall result in a Commitment Fee calculated as follows:

(0.0690 * $300,000,000) + (0.0492 * $25,000,000) = $21,930,000.

As used above, “Annual Run Rate Revenue” shall mean the annual run-rate revenue of the Parent and its Subsidiaries, calculated at the time the Commitment Fee is due and payable based on the most recently ended fiscal quarter of the Parent multiplied by 4, as certified to the Origination Agent by the Parent and accompanied by detail reasonably acceptable to the Origination Agent.

The Commitment Fee shall be fully earned on the Effective Date and due and payable on the occurrence of a Trigger Event and shall be deemed to be fully non-refundable when paid.

The Borrowers shall pay all amounts due and payable hereunder to the account of the Origination Agent not later than 12:00 noon (New York City time) on the day when due, in lawful money of the United States of America and in immediately available funds.  All payments hereunder shall be made by the Borrowers without set-off, counterclaim, deduction or other defense.

The Borrowers hereby acknowledge and agree that (a) the Commitment Fee (i) constitutes Obligations, and (ii) is in addition to any other fees payable by the Loan Parties under the Financing Agreement or any other Loan Document, and (b) this letter agreement constitutes a “Loan Document” .

This letter agreement is the Commitment Fee Letter referred to in the Financing Agreement, shall be construed under and governed by the laws of the State of New York applicable to contracts made and to be performed in the State of New York, and may be executed in any number of counterparts and by different parties on separate counterparts.  Each of such counterparts shall be deemed to be an original, and all of such counterparts, taken together, shall constitute but one and the same agreement.  Delivery of an executed counterpart of this letter agreement by facsimile or electronic mail shall be equally effective as delivery of a manually executed counterpart.  This letter agreement may not be amended or otherwise modified unless the same shall be in writing and signed by the parties hereto.  IF THIS LETTER AGREEMENT BECOMES THE SUBJECT OF A DISPUTE, EACH OF THE PARTIES HERETO HEREBY WAIVES TRIAL BY JURY TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW.  The Borrowers agree that any suit or proceeding arising in respect to this letter agreement or any matter referred to in this letter agreement will be tried exclusively in the U.S. District Court for the Southern District of New York or, if that court does not have subject matter jurisdiction, in any state court located in the City of New York and the Borrowers agree to submit to the jurisdiction of, and to venue in, such courts.

[signature pages follow]


The contents of this letter agreement are confidential.  This letter agreement shall not be disclosed or displayed or its contents otherwise disclosed to any third Person (other than auditors of, or financial advisors or counsel to, the Borrower) without the prior written consent of the Origination Agent, except for securities law compliance purposes or as otherwise as required by law, statute, rule, regulation or valid judicial process or administrative process.

 
Very truly yours,
       
 
RIMINI STREET, INC.
       
 
By:
/s/ Seth Ravin
   
Name:
Seth Ravin
   
Title:
Chief Executive Officer

commitment fee Letter



Accepted and agreed to
as of the date first above written:
 
       
CB AGENT SERVICES LLC,
as Origination Agent
 
       
By:
/s/ Morris Beyda
 
 
Name:
Morris Beyda
 
 
Title:
Partner & COO
 

commitment fee Letter



Exhibit 10.34
 
RIMINI STREET, INC.
3993 Howard Hughes Parkway, Suite 500
Las Vegas, Nevada 89169
 
June 29, 2017
CONFIDENTIAL
 
CB Agent Services LLC, as Origination Agent
under the below-referenced Financing Agreement
888 Seventh Avenue, 29 th Floor
New York, New York 10106
 
Re:
Second Amended and Restated Fee Letter
 
Ladies and Gentlemen:
 
Reference is made to (i) the Financing Agreement, dated as of June 24, 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “ Financing Agreement ”), by and among Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” thereunder, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as defined in the Financing Agreement), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party thereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC (“ Cortland ”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agent Services LLC, a Delaware limited liability company (“ Colbeck ”) as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”) and (ii) that certain Amended and Restated Fee Letter, dated as of October 28, 2016, by and among the Borrowers and the Origination Agent (as amended, supplemented or otherwise modified from time to time, the “ Existing Fee Letter ”).  Capitalized terms used herein but not specifically defined herein shall have the meanings ascribed to them in the Financing Agreement.
 
The Borrowers and the Origination Agent hereby agree that this letter agreement amends and restates the Existing Fee Letter in its entirety.
 
In connection with the Financing Agreement, the Borrowers hereby agree to pay to the Origination Agent the following fees for its own account (except as set forth in a separate writing between the Origination Agent and the Lenders):

CB Agent Services LLC, as Origination Agent
as of June 30, 2017
Page 2
1.          Origination Fee .  On the Effective Date, the Borrowers shall pay to the Origination Agent, a non‑refundable origination fee (the “ Origination Fee ”) equal to $6,250,000, which shall be deemed fully earned when paid.
 
2.          Continuing Origination Agent Services Fee . In consideration for its (i) services in arranging and underwriting the financing facility pursuant to the Financing Agreement and (ii) continuing services as Origination Agent, in its capacity as Origination Agent under the Loan Documents, from the Effective Date until the occurrence of a Trigger Event (such services set forth in clauses (i) and (ii) and more fully described in Schedule A attached hereto, collectively, the “ Continuing Origination Agent Services ”), the Borrowers shall pay to the Origination Agent an additional fee (the “ Continuing Origination Agent Services Fee ”), separate and distinct from the Origination Fee, equal to the sum of the incremental amounts of Annual Run Rate Revenue (as defined below) multiplied by the ‘Multiplier’ set forth in the table below for such incremental amount of Annual Run Rate Revenue :
 
Annual Run Rate Revenue
Multiplier
Formula Used to Determine Multiplier *
$0 - $300,000,000
0.1410
4.70% x 3
Greater than $300,000,000 and less than or equal to $500,000,000
0.1008
3.36% x 3
Greater than $500,000,000 and less than or equal to $700,000,000
0.0606
2.02% x 3
Greater than $700,000,000
0.0201
0.67% x 3
* The last column is included solely for informational purposes, and is not part of the calculation of the actual Continuing Origination Agent Services Fee.
 
The Continuing Origination Agent Services Fee shall be due and payable upon the occurrence of a Trigger Event but if and only if, as of such date, the Origination Agent has performed the Continuing Origination Agent Services.  Upon fulfillment of the condition described in the immediately preceding sentence, the Continuing Origination Agent Services Fee shall become immediately earned and shall be deemed to be fully non-refundable when paid.  For purposes of this letter agreement, “ Trigger Event ” means the earliest of (a) the Final Maturity Date, (b) the Termination Date, (c) the acceleration of the Obligations in accordance with Section 9.01 of the Financing Agreement, including as a result of the commencement of an Insolvency Proceeding, (d) the satisfaction, release, payment, restructuring, reorganization, replacement, reinstatement, defeasance or compromise of any of the Obligations in any Insolvency Proceeding, foreclosure (whether by power of judicial proceeding or otherwise) or deed in lieu of foreclosure or the making of a distribution of any kind in any Insolvency Proceeding to the Collateral Agent, for the account of the Lenders in full or partial satisfaction of the Obligations and (e) the termination of the Financing Agreement for any reason.  Notwithstanding the foregoing, the Origination Agent may, in its sole discretion, agree to receive payment of the Continuing Origination Agent Services Fee in one or more installments or in a combination of cash and/or Equity Interests.  The parties hereto hereby agree that the Continuing Origination Agent Services Fee is a Specified Fee.

CB Agent Services LLC, as Origination Agent
as of June 30, 2017
Page 3
Example of Continuing Origination Agent Services Fee calculation: $325,000,000 in Annual Run Rate Revenue at the time of payment of the Continuing Origination Agent Services Fee shall result in a Continuing Origination Agent Services Fee calculated as follows:
 
(0.1410 * $300,000,000) + (0.1008 * $25,000,000) = $44,820,000.
 
As used above, “Annual Run Rate Revenue” shall mean the annual run-rate revenue of the Parent and its Subsidiaries, calculated at the time the Continuing Origination Agent Services Fee is due and payable based on the most recently ended fiscal quarter of the Parent multiplied by 4, as certified to the Origination Agent by the Parent and accompanied by detail reasonably acceptable to the Origination Agent.
 
3.          Borrower Tax Treatment . The Borrowers hereby agree that for U.S. federal (and corresponding state or local) income tax purposes the relevant Borrower shall not claim a deduction for the Continuing Origination Agent Services Fee prior to the relevant Borrower’s taxable year that includes a Trigger Event, and that in no event shall any such deduction be claimed prior to the time at which the Origination Agent has performed the Continuing Origination Agent Services.
 
4.          Loan Servicing Fee .  From and after the Effective Date and until the Termination Date, the Borrowers shall pay to the Origination Agent, a non-refundable loan servicing fee (the “ Loan Servicing Fee ”) equal to $395,000 per annum, which shall be deemed to be fully earned when paid and which shall be due and payable on the Effective Date and annually in advance thereafter on each anniversary of the Effective Date.
 
5.          Collateral Monitoring Fee .  From and after the Effective Date and until the Termination Date, the Borrowers shall pay to the Origination Agent, a non-refundable collateral monitoring fee (the “ Collateral Monitoring Fee ”) equal to the sum of (i) 2.50% per annum multiplied by (ii) the aggregate outstanding principal amount of the Term Loan (including the Term Loan PIK Amount), which shall be deemed to be fully earned when paid and which shall be due and payable monthly in arrears on the first Business Day of each month after the Effective Date.
 
6.          Second Amendment Origination Fee .  On the Second Amendment Effective Date, the Borrowers shall pay to the Origination Agent, a non‑refundable origination fee (the “ Second Amendment Origination Fee ”) equal to $6,250,000, which shall be deemed fully earned when paid.
 
7.          Second Amendment Documentation Fee .  On the Second Amendment Effective Date, the Borrowers shall pay to the Origination Agent, a non‑refundable documentation fee (the “ Second Amendment Documentation Fee ”) equal to $3,750,000, which shall be deemed fully earned when paid.

CB Agent Services LLC, as Origination Agent
as of June 30, 2017
Page 4
8.          Fifth Amendment Origination Fee .  On the Fifth Amendment Effective Date, the Borrowers agree to pay to the Origination Agent, a non‑refundable origination fee (the “ Fifth Amendment Origination Fee ”) equal to $1,250,000, which shall be (i) deemed fully earned on the Fifth Amendment Effective Date and (ii) due and payable in cash on the earlier to occur of (x) the consummation of the equity raise that satisfies the requirements of Section 7.01(t) of the Financing Agreement and (y) March 31, 2018.
 
9.          S-4 Delay Fee .  The Borrowers agree to pay to the Origination Agent, a non‑refundable delay fee equal to $1,250,000 (each such delay fee in the amount of $1,250,000, a “ S-4 Delay Fee ”), which each such S-4 Delay Fee shall be (i) deemed fully earned on July 1, 2017 if the Borrower’s Form S-4 is not filed with the SEC on or before June 30, 2017 and an additional S-4 Delay Fee on the first day of each month thereafter until the Borrower’s Form S-4 is filed with the SEC and (ii) due and payable in cash on the earliest to occur of (x) the consummation of the equity raise that satisfies the requirements of Section 7.01(t) of the Financing Agreement, (y) the Final Maturity Date and (z) the Termination Date; provided , that the Origination Agent may waive the requirement to pay any portion of any S-4 Delay Fee in its sole discretion
 
10.          Equity Raise Delay Fee .  The Borrowers agree to pay to the Origination Agent, a non‑refundable equity raise delay fee equal to $1,250,000 (each such equity raise delay fee in the amount of $1,250,000, an “ Equity Raise Delay Fee ”), which each such Equity Raise Delay Fee shall be (i) deemed fully earned on September 1, 2017 if the equity raise that satisfies the requirements of Section 7.01(t) of the Financing Agreement is not consummated on or before August 31, 2017 and an additional Equity Raise Delay Fee on the first day of each month thereafter until the equity raise that satisfies the requirements of Section 7.01(t) of the Financing Agreement is consummated and (ii) due and payable in cash on the earliest to occur of (x) the consummation of the equity raise that satisfies the requirements of Section 7.01(t) of the Financing Agreement, (y) the Final Maturity Date and (z) the Termination Date; provided , that the Origination Agent may waive the requirement to pay any portion of any Equity Raise Delay Fee in its sole discretion.
 
On the Effective Date, the Parent has entered into that certain Consulting Services Agreement, dated as of June 24, 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “ Consulting Agreement ”), by and among the Parent and CB Agent Services LLC.  Notwithstanding anything to the contrary in the Financing Agreement or any other Loan Document, the Borrowers and the Origination Agent hereby acknowledge and agree that (a) the Consulting Agreement is not a Loan Document and (b) all obligations of the Borrowers under the Consulting Agreement (the “ Consulting Fees ”) shall constitute “Obligations” under the Financing Agreement and the other Loan Documents.  The parties hereto hereby agree that each Consulting Fee is a Specified Fee.
 
The Borrowers shall pay all amounts due and payable hereunder to the account of the Origination Agent not later than 12:00 noon (New York City time) on the day when due, in lawful money of the United States of America and in immediately available funds, except to the extent the Origination Agent may agree, in its sole discretion, to receive payment of the Continuing Origination Agent Services Fee in one or more installments or in a combination of cash and/or Equity Interests.  All payments hereunder shall be made by the Borrowers without set-off, counterclaim, deduction or other defense.
 
The Borrowers hereby acknowledge and agree that (a) the Origination Fee, the Continuing Origination Agent Services Fee, each Collateral Monitoring Fee, each Loan Servicing Fee, the Second Amendment Origination Fee, the Second Amendment Documentation Fee, the Fifth Amendment Origination Fee, each Consulting Fee, each S-4 Delay Fee and each Equity Raise Delay Fee (i) each constitute Obligations, and (ii) are in addition to any other fees payable by the Loan Parties under the Financing Agreement or any other Loan Document, and (b) this letter agreement constitutes a “Loan Document” .
 
This letter agreement is the Fee Letter referred to in the Financing Agreement, shall be construed under and governed by the laws of the State of New York applicable to contracts made and to be performed in the State of New York, and may be executed in any number of counterparts and by different parties on separate counterparts.  Each of such counterparts shall be deemed to be an original, and all of such counterparts, taken together, shall constitute but one and the same agreement.  Delivery of an executed counterpart of this letter agreement by facsimile or electronic mail shall be equally effective as delivery of a manually executed counterpart.  This letter agreement may not be amended or otherwise modified unless the same shall be in writing and signed by the parties hereto.  IF THIS LETTER AGREEMENT BECOMES THE SUBJECT OF A DISPUTE, EACH OF THE PARTIES HERETO HEREBY WAIVES TRIAL BY JURY TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW.  The Borrowers agree that any suit or proceeding arising in respect to this letter agreement or any matter referred to in this letter agreement will be tried exclusively in the U.S. District Court for the Southern District of New York or, if that court does not have subject matter jurisdiction, in any state court located in the City of New York and the Borrowers agree to submit to the jurisdiction of, and to venue in, such courts.
 
[signature pages follow]

The contents of this letter agreement are confidential.  This letter agreement shall not be disclosed or displayed or its contents otherwise disclosed to any third Person (other than auditors of, or financial advisors or counsel to, the Borrower) without the prior written consent of the Origination Agent, except for securities law compliance purposes or as otherwise as required by law, statute, rule, regulation or valid judicial process or administrative process.
 
Very truly yours,
   
 
RIMINI STREET, INC.
       
 
By:
/s/ Seth A. Ravin
   
Name:
Seth A. Ravin
   
Title:
CEO

Accepted and agreed to
as of the date first above written:
 
CB AGENT SERVICES LLC,
as Origination Agent
By:
/s/ Morris Beyda
 
 
Name:
Morris Beyda
 
 
Title:
Partner & COO
 

Schedule A

Continuing Origination Agent Services

1.
Acting and performing the services as Origination Agent, in its capacity as Origination Agent under the Loan Documents, including:
 
a.
reviewing requests from the Borrowers for consents, waivers, approvals, assignments and amendments;
 
b.
reviewing agreements, schedules, exhibits, opinions, reports, financial statements and other documents required to be submitted to the Origination Argent by the Borrowers;
 
c.
reviewing and negotiating, if deemed necessary by the Origination Agent, changes or additions to covenants if GAAP changes;
 
d.
reviewing insurance coverage of the Borrowers;
 
e.
reviewing and approving draws by the Borrowers under the Delayed Draw B Term Loan;
 
f.
subject to Section 7.01(a) of the Financing Agreement, reviewing and approving the Borrowers’ auditor as well as various reports that are delivered by the auditor or the Borrowers, and seek, if desired, additional reporting information;
 
g.
reviewing and approving the Borrowers’ budget in order to direct release of funds from Borrowers’ blocked accounts in accordance with the Financing Agreement;
 
h.
reviewing pledge and security agreements for Collateral and, if desired by the Origination Agent, requesting foreign law pledge agreements, subject to Section 7.01(b) of the Financing Agreement;
 
i.
making, in Origination Agent’s sole discretion, Origination Agent Advances; and
 
j.
performing any actions of the Origination Agent required or permitted under the Loan Documents.
 


Exhibit 10.35
 

Seth A. Ravin
c/o Rimini Street, Inc.
3993 Howard Hughes Parkway, Suite 500
Las Vegas, Nevada 89169

Rimini Street, Inc.
3993 Howard Hughes Parkway, Suite 500
Las Vegas, Nevada 89169

 
June 24, 2016

Cortland Capital Market Services LLC, as Collateral Agent
under the below-referenced Financing Agreement
225 W. Washington Street, Suite 2100
Chicago, Illinois  60606
Attention:  Jeffrey Vaughn; Legal Department

Re:            Rimini Street, Inc.

Ladies and Gentlemen:

Reference hereby is made to that certain Financing Agreement, dated as of the date hereof (as amended, supplemented or otherwise modified from time to time, the “ Financing Agreement ”), by and among Rimini Street, Inc., a Nevada corporation (the “ Parent ”; and together with each other Person that executes a joinder agreement and becomes a “Borrower” thereunder, each a “ Borrower ” and collectively, the “ Borrowers ”), each subsidiary of the Parent listed as a “ Guarantor ” on the signature pages thereto (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder or otherwise guaranties all or any part of the Obligations (as thereinafter defined), each a “ Guarantor ” and collectively, the “ Guarantors ”), the lenders from time to time party thereto (each a “ Lender ” and collectively, the “ Lenders ”), Cortland Capital Market Services LLC (“ Cortland ”), as collateral agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Collateral Agent ”), Cortland, as administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, the “ Administrative Agent ”) and CB Agency Services LLC, a Delaware limited liability company (“ Colbeck ”), as origination agent for the Lenders (in such capacity, together with its successors and permitted assigns in such capacity, the “ Origination Agent ” and together with the Collateral Agent and the Administrative Agent, each an “ Agent ” and collectively, the “ Agents ”).  Capitalized terms used herein but not specifically defined herein shall have the meanings ascribed to them in the Financing Agreement.


In order to induce the Agents and the Lenders to enter into the Financing Agreement and in consideration of the accommodations being made by the Agents and the Lenders thereunder and under the other Loan Documents, Seth A. Ravin (“ Ravin ”) hereby agrees as follows:

1.            prior to the Termination Date, Ravin shall not, directly or indirectly (including through any Affiliate) whether individually, as a director, manager, member, stockholder, partner, owner, employee, consultant or agent of any business, or in any other capacity, other than on behalf of the Parent and its Subsidiaries, organize, establish, own, operate, manage, control, engage in, participate in, invest in, permit his name to be used by, act as a consultant or advisor to, render services for (alone or in association with any person, firm, corporation or business organization), or otherwise assist any person or entity that engages in or owns, invests in, operates, manages or controls any venture or enterprise which engages or proposes to engage in any business in all or a part of the world in which the Parent or any of its Subsidiaries is operating which is competitive, in any way, with the business of the Parent and its Subsidiaries; provided , however, nothing herein shall prohibit Ravin from purchasing or owning, directly or indirectly, less than one percent (1%) of the publicly traded securities of any corporation if such ownership represents a passive investment and Ravin is not a controlling person of, or a member of a group that controls, such corporation,

2.            prior to the Termination Date, Ravin shall not, directly or indirectly solicit (including through any Affiliate), attempt to solicit or induce (other than on behalf of the Parent or any of its Subsidiaries) (x) any party who is a customer of the Parent or any of its Subsidiaries, who was a customer of the Parent or any of its Subsidiaries, or, to Ravin’s knowledge, who is a prospective customer that has been identified and targeted by the Parent or any of its Subsidiaries, for the purpose of marketing, selling or providing to any such party any services or products offered by or available from the Parent or any of its Subsidiaries that are competitive with, or a substitute for, and are offered by or available from the Parent or any of its Subsidiaries, or (y) any supplier to the Parent or any of its Subsidiaries to terminate, reduce or alter negatively its relationship with the Parent or any of its Subsidiaries or in any manner knowingly interfere with any agreement or contract between the Parent or any of its Subsidiaries and such supplier, and

3.            prior to the Termination Date, Ravin shall not, directly or indirectly, for his own account or for the account of any other Person (other than on behalf of the Parent or any of its Subsidiaries), in any jurisdiction in which the Parent or any of its Subsidiaries has commenced or has made plans to commence operations, hire any employee of the Parent or any of its Subsidiaries or any of its Affiliates (a “ Current Employee ”) or any person who was an employee of or consultant to the Parent or any of its Subsidiaries or any of its Affiliates within twelve (12) months prior to the date Ravin’s employment with the Parent is terminated (a “ Former Employee ”) or directly or indirectly solicit or induce a Current or Former Employee to terminate such employee’s employment relationship with the Parent or any of its Subsidiaries in order, in either case, to enter into a similar relationship with Ravin, or any other Person or any entity.

This letter agreement reflects the entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof.  Ravin and the Parent hereby agree and understand that this letter agreement shall be a Loan Document, and any failure by Ravin to perform or comply with any term, covenant or agreement contained herein to be performed by Ravin shall result in an immediate Event of Default under the Financing Agreement (the “ Parent Acknowledgment ”).


All notices and other communications provided for hereunder shall be in writing and shall be delivered by hand, sent by registered or certified mail (postage prepaid, return receipt requested), overnight courier, or telecopier.  In the case of notices or other communications to Ravin or the Collateral Agent, as the case may be, they shall be sent to the respective address set forth below (or, as to each party, at such other address as shall be designated by such party in a written notice to the other parties complying as to delivery with the terms of this paragraph):

Seth A. Ravin
c/o Rimini Street, Inc.
3993 Howard Hughes Parkway, Suite 500
Las Vegas, Nevada 89169
Telephone:
Email:

if to the Collateral Agent, to it at the following address:

Cortland Capital Market Services LLC
225 W. Washington Street, Suite 2100
Chicago, Illinois  60606
Attention:  Jeffrey Vaughn; Legal Department
Telephone:
Telecopier
Email:

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

Holland & Knight LLP
131 S. Dearborn Street, 30th Floor
Chicago, Illinois 60603
Attn: Joshua M. Spencer
Fax No.
Email:

No amendment or waiver of any provision of this letter agreement shall in any event be effective unless the same shall be in writing and signed by each party hereto, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  This letter agreement shall be construed under and governed by the laws of the State of New York.  IF THIS LETTER AGREEMENT BECOMES THE SUBJECT OF A DISPUTE, EACH OF THE PARTIES HERETO HEREBY WAIVES TRIAL BY JURY.  Each of the parties hereto agree that any suit or proceeding arising in respect to this letter agreement or any matter referred to in this letter agreement will be tried exclusively in the U.S. District Court for the Southern District of New York or, if that court does not have subject matter jurisdiction, in any state court located in the City of New York and each of the parties hereto agree to submit to the jurisdiction of, and to venue in, such courts.

The contents of this letter are confidential.  This letter shall not be disclosed or displayed or its contents otherwise disclosed to any third Person without the prior written consent of Ravin, the Origination Agent and the Parent, except to the extent required by any Requirement of Law.

 [remainder of page intentionally left blank]

This letter agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any one of the parties hereto may execute this letter agreement by signing any such counterpart.  Delivery of an executed counterpart of this letter agreement by telefacsimile shall be equally as effective as delivery of an original executed counterpart of this letter agreement.  Any party hereto delivering an executed counterpart of this letter agreement by telefacsimile also shall deliver an original executed counterpart of this letter agreement but the failure to deliver any such original executed counterpart shall not affect the validity, enforceability, and binding effect of this letter agreement.

 
/s/ Seth A. Ravin
 
SETH A. RAVIN

 
Solely for the purposes of the Parent Acknowledgment:
   
 
RIMINI STREET, INC.
       
 
By:
/s/ Douglas Zorn
   
Name:
 Douglas Zorn
   
Title:
 CFO


Acknowledged as of
the date first above written:
 
       
CORTLAND CAPITAL MARKET SERVICES LLC,
as Collateral Agent
 
       
By:
/s/ Emily Ergang Pappas
 
 
Name:
 Emily Ergang Pappas
 
 
Title:
 Associate Counsel
 



Exhibit 10.36
 

CB AGENT SERVICES LLC
C/O COLBECK CAPITAL MANAGEMENT
888 SEVENTH AVENUE
29 TH FLOOR
NEW YORK, NY 10106

PERSONAL AND CONFIDENTIAL

June 24, 2016

Rimini Street, Inc.
3993 Howard Hughes Parkway, Suite 500
Las Vegas, NV 89169 USA

Consulting Services

Ladies and Gentlemen:

1.            We are pleased to confirm the arrangements under which Rimini Street, Inc. (the “Company”) is engaging CB Agent Services LLC (“Colbeck”) as a consultant to assist the Company in respect of general business and financial strategy, corporate structure, and long term strategic planning.

2.            The consideration for such consulting services will be (i) warrants to purchase Class A Common Stock of the Company as further provided in that certain Warrant Purchase Agreement, dated as of the date hereof (the “Effective Date”), by and between the Company and Colbeck and (ii)(A) an annual fee of $2,000,000 for each of the four (4) consecutive 365-day periods commencing on the Effective Date (each such annual fee, the “Annual Fee” and the first date of each annual period, the “Annual Payment Date”).

The Annual Fees shall be payable in advance in cash on each Annual Payment Date, with the first such Annual Fee payable on the date hereof.  The Company also agrees to reimburse, without duplication, Colbeck monthly (and upon termination of Colbeck’s services pursuant to this Letter Agreement), within 10 days of receipt by the Company of an invoice therefor, for Colbeck’s reasonable and documented out-of-pocket expenses, including, without limitation, travel expenses and the reasonable and documented fees and disbursements of Colbeck’s attorneys, plus any sales, use or similar taxes arising in connection with any services provided under this letter (this “Letter Agreement”), provided, however, that in no event shall the Company be obligated hereunder to reimburse Colbeck for fees and expenses reimbursed to Colbeck by the Company pursuant to any other agreement or arrangement.  The Annual Fees do not affect or otherwise reduce the fees or reimbursable expenses otherwise payable to Colbeck and/or its affiliates in connection with its role as arranger of, and/or agent and/or lender under, any credit facilities of the Company.  All payments pursuant to this Letter Agreement will be treated by the parties as payments for services rendered by Colbeck to the Company, unless otherwise required by a taxing authority.  Colbeck will provide to the Company a valid Internal Revenue Service Form W-9 or other tax documentation reasonably acceptable to the Company sufficient to establish that U.S. withholding and backup withholding in respect of such payments for services is not required under applicable law.


3.            If on a particular Annual Payment Date occurring after the date hereof greater than 50% of the maximum principal amount of Loans funded under the Financing Agreement (measured since the Effective Date) has been repaid to the Lenders thereunder in cash, the Annual Fee due on such Annual Payment Date shall be equal to the product of (x) $2,000,000 multiplied by (y) the quotient of (i) the principal amount of Loans outstanding under the Financing Agreement on such Annual Payment Date divided by (ii) the maximum principal amount of Loans funded under the Financing Agreement (measured since the Effective Date).

“Financing Agreement” means that certain Financing Agreement, dated as of the date hereof, among the Company, each subsidiary of the Company listed as a “Guarantor” on the signature pages thereto, the lenders from time to time party thereto, Cortland Capital Market Services LLC, as collateral agent and administrative agent for the lenders and Colbeck, as origination agent for the lenders, as amended, amended and restated, supplemented or otherwise modified from time to time.

4.            Promptly upon a Trigger Event, the Company shall pay to Colbeck a fee of $14,000,000, due and payable in full in cash within 3 business days of such Trigger Event (the “Exit Fee”).  For purposes of this letter agreement, “Trigger Event” means the earliest of (a) the Final Maturity Date (as defined in the Financing Agreement), (b) the Termination Date (as defined in the Financing Agreement), (c) the acceleration of the Obligations (as defined in the Financing Agreement) in accordance with Section 9.01 of the Financing Agreement, including as a result of the commencement of an Insolvency Proceeding (as defined in the Financing Agreement), (d) the satisfaction, release, payment, restructuring, reorganization, replacement, reinstatement, defeasance or compromise of any of the Obligations in any Insolvency Proceeding, foreclosure (whether by power of judicial proceeding or otherwise) or deed in lieu of foreclosure or the making of a distribution of any kind in any Insolvency Proceeding to the collateral agent under the Financing Agreement, for the account of the Lenders in full or partial satisfaction of the Obligations, (e) the termination of the Financing Agreement for any reason and (f) the termination of this Letter Agreement by the Company for any reason.  The obligation of the Company to pay Colbeck the Exit Fee upon a Trigger Event pursuant to this Section 4 shall survive the termination of this Letter Agreement and the obligation to pay the Exit Fee shall be effective without regard to the basis of such termination.

5.            Our services and this Letter Agreement may be terminated by the Company or Colbeck at any time with or without cause effective upon three Business Days’ after receipt of written notice to that effect (or such later effectiveness as may be identified in such notice).  If this Letter Agreement is terminated for any reason, the Company shall continue to be required to (i) reimburse Colbeck’s reasonable and documented out-of-pocket expenses incurred through the date of termination as provided herein and (ii) pay the total Annual Fees incurred prior to the date of termination as provided herein; provided that if this Letter Agreement is terminated by the Company for any reason, (x) all future Annual Fees shall become immediately due and payable on the date of such termination (assuming that each future Annual Fee is equal to the Annual Fee due on the immediately preceding Annual Payment Date) and (y) the Exit Fee shall become immediately due and payable on the date of such termination.  The payment obligations of the Company pursuant to this Section 5 shall be effective without regard to the basis of the termination by the Company of this Letter Agreement.  This Section 5, Section 4 and Sections 8 through 12 of this Letter Agreement, together with Annex A, shall survive any termination of this Letter Agreement.


6.            Notwithstanding anything herein to the contrary and except to the extent that Colbeck or one or more of its affiliates have registered as a broker dealer, the Company acknowledges and understands that the consulting services provided by Colbeck are not intended to include and shall not include any services or activity, the provision of which by Colbeck could reasonably be expected to require Colbeck or any of its affiliates to register as a broker/dealer, investment adviser or other investment professional under applicable international, federal, state or local securities laws.

7.            In order to assist Colbeck in the provision of services hereunder, the Company agrees that (i) it shall make available to Colbeck, at Colbeck’s reasonable request, information that is reasonably necessary for Colbeck to provide the services described in Section 1 hereof, and (ii) Colbeck shall be entitled to rely upon the accuracy and completeness of all such information without independent verification.

8.            The Company acknowledges and agrees that any written or oral advice provided by Colbeck in connection with this engagement is exclusively for the information of the Board of Directors and senior management of the Company (and the Company’s auditors and advisors) and may not be disclosed to any third party or circulated or referred to publicly without our prior written consent except (a) after providing written notice to Colbeck (unless such notice is prohibited by law), as required in any legal, judicial, administrative proceeding or as otherwise required by compulsory judicial process, applicable law or regulations or any court or governmental agency, and (b) to a court, tribunal or other applicable administrative agency or judicial authority in connection with the enforcement of the Company’s rights hereunder.

9.            Nothing in this Letter Agreement, expressed or implied, is intended to confer or does confer on any person or entity other than the parties hereto or their respective successors and assigns (and third parties referenced in Annex A), any rights or remedies under or by reason of this Letter Agreement or as a result of the services to be rendered by Colbeck hereunder.  The Company acknowledges that Colbeck has been retained hereunder solely as a consultant to the Company and is engaged hereunder as an independent contractor with duties hereunder solely to the Company.  The Company further acknowledges that Colbeck is not acting as an agent of the Company or in a fiduciary capacity, whether pursuant to contract or otherwise, with respect to the Company or its shareholders, employees, creditors or any other third party and agrees that it shall not make, and hereby waives, any claim based on an assertion of such a fiduciary capacity.  The Company agrees that Colbeck is not assuming any duties or obligations other than those expressly set forth in this Letter Agreement.  The Company further acknowledges that Colbeck and its affiliates together have an existing relationship with the Company as agent and lender under the Company’s various credit facilities and as an equity holder of the Company, which may create potential and/or actual conflicts of interest between the Company and Colbeck (and such affiliates), which the Company hereby waives.


10.            The Company acknowledges that Colbeck may only assign any of its rights and obligations hereunder to one or more of its U.S. affiliates.  Any other assignment shall be null and void.  Colbeck will provide prompt written notice to the Company of any assignment hereunder.  This Letter Agreement shall be binding on the successors and permitted assigns of the Company.

11.            This Letter Agreement may not be amended or modified except in writing signed by each of the parties and shall be governed by and construed and enforced in accordance with the laws of the State of New York.  The Company and Colbeck hereby irrevocably and unconditionally consent to submit to the jurisdiction of the courts of the State of New York and of the United States District Courts located in the County of New York for any lawsuits, actions or other proceedings arising out of or relating to this Letter Agreement and agree not to commence any such lawsuit, action or other proceeding except in such courts.  The Company further agrees that service of any process, summons, notice or document by mail to the Company’s address set forth above shall be effective service of process for any such lawsuit, action or other proceeding brought against the Company in any such court.  The Company and Colbeck 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 Letter Agreement in the courts of the State of New York or the United States District Courts located in the County of New York, 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 LETTER AGREEMENT OR THE SERVICES TO BE RENDERED BY COLBECK HEREUNDER IS EXPRESSLY AND IRREVOCABLY WAIVED.

12.            In connection with our engagement hereunder, the Company agrees to the provisions with respect to indemnity and other matters set forth in Annex A which is incorporated by reference into this Letter Agreement.

[signature pages follow]


Please confirm that the foregoing is in accordance with your understanding by signing and returning to us the enclosed copy of this letter, which shall become a binding agreement upon our receipt.  We are delighted to accept this engagement and look forward to working with you on this assignment.

Very truly yours,
 
     
CB AGENT SERVICES LLC
 
     
By:
/s/ Morris Beyda
 
Name:
Morris Beyda
 
Title:
Partner & COO
 

[ Signature Page to Consulting Letter ]


CONFIRMED AND AGREED:
 
     
RIMINI STREET, INC.
 
     
By:
/s/ Seth Ravin
 
Name:
Seth Ravin
 
Title:
Chief Executive Officer
 

[ Signature Page to Consulting Letter ]

Annex A
 
In the event that Colbeck becomes involved in any action, proceeding or investigation brought by or against any person, including stockholders or creditors of the Company, in connection with or as a result of either our engagement or the services provided by us under this letter, the Company will reimburse Colbeck for its reasonable and documented out-of-pocket legal and other expenses (including the cost of any investigation and preparation) incurred in connection therewith within ten Business Days of the Company's receipt of written demand therefor; provided that the Company shall not have any obligation to reimburse Colbeck for any expenses resulting from or in connection with the gross negligence or willful misconduct of Colbeck.  The Company also will indemnify and hold Colbeck harmless against any and all actual out-of-pocket losses, claims, damages or liabilities to any such person in connection with or as a result of either our engagement or the services provided by us under this letter, except to the extent that any such loss, claim, damage or liability results from or is in connection with the gross negligence or willful misconduct of Colbeck.  If for any reason (other than the reasons stated above) the foregoing indemnification is unavailable to Colbeck or insufficient to hold it harmless, then the Company shall contribute to the amount paid or payable by Colbeck as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative economic interests of the Company and its stockholders on the one hand and Colbeck on the other hand in the matters contemplated by this letter as well as the relative fault of the Company and Colbeck with respect to such loss, claim, damage or liability and any other relevant equitable considerations.  The reimbursement, indemnity and contribution obligations of the Company under this paragraph shall be in addition to any liability which the Company may otherwise have, shall extend upon the same terms and conditions to any affiliate of Colbeck and the partners, members, managers, directors, agents, employees and controlling persons (if any), as the case may be, of Colbeck and any such affiliate, and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company, Colbeck, any such affiliate and any such person.  The Company also agrees that neither Colbeck nor any of such affiliates, partners, directors, agents, employees or controlling persons shall have any liability to the Company or any person asserting claims on behalf of or in right of the Company in connection with or as a result of either our engagement the services provided by us under this letter, except to the extent that any losses, claims, damages, liabilities or expenses incurred by the Company result from the gross negligence or willful misconduct of Colbeck or any such other person.  Prior to entering into any agreement or arrangement with respect to, or effecting, any proposed sale, exchange, dividend or other distribution or liquidation of all or a significant portion of its assets in one or a series of transactions that does not directly or indirectly (by contract, operation of law or otherwise) provide for the assumption of the obligations of the Company set forth in this Annex A, the Company will notify Colbeck in writing thereof (if not previously so notified) and, if requested by Colbeck, shall arrange in connection therewith alternative means of providing for the obligations of the Company set forth in this paragraph, including the assumption of such obligations by another party, insurance, surety bonds or the creation of an escrow, in each case in an amount and upon terms and conditions reasonably satisfactory to Colbeck.
 


Exhibit 10.37


AMENDMENT #1 TO CONSULTING AGREEMENT

This AMENDMENT #1 to that certain letter agreement regarding Consulting Services (this “ Amendment ”) is dated as of October 28, 2016, by and between CB Agent Services, LLC, a Delaware limited liability company (“ Colbeck ”) and Rimini Street, Inc., a Nevada corporation (the “ Company ”, and together with Colbeck, the “ Parties ” and each, a “ Party ”).

WHEREAS, the Parties wish to amend that certain letter agreement regarding Consultant Services, dated as of June 24, 2016 (the “ Consulting Agreement ”), by and between the Parties;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the Parties, the Parties hereby agree as follows:

Section 1.            Definitions .  Capitalized terms used in this Amendment and not otherwise defined herein shall have the respective meanings given such terms in the Consulting Agreement.

Section 2.            Amendment to Consulting Agreement .
 
(a)            Paragraph 3 of the Consulting Agreement is hereby amended and restated in its entirety to read as follows:
 
“3.            Intentionally Omitted.”

Section 3.            Effectiveness of Amendment .  The Amendment reflected in Section 2 shall be effective upon the execution and delivery of this Amendment by the parties hereto.

Section 4.            Benefits .  This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

Section 5.            GOVERNING LAW .  THIS AMENDMENT AND ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF) OF THE STATE OF NEW YORK.

Section 6.            Effect; Ratification .  Except as expressly set forth herein, the provisions of the Consulting Agreement shall remain unchanged and in full force and effect.  The Parties hereby ratify and reaffirm each and every term, covenant and condition set forth in the Consulting Agreement as of the date hereof.

Section 7.            Counterparts .  This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and shall be binding upon all parties, their successors and assigns.  Any signatures delivered by a party hereto by facsimile transmission or by electronic transmission shall be deemed an original signature hereto.

Section 8.            Entire Agreement .  THIS AMENDMENT AND THE CONSULTING AGREEMENT CONSTITUTE THE ENTIRE AGREEMENT AMONG THE PARTIES HERETO RELATING TO THE SUBJECT MATTER HEREOF AND SUPERSEDES ANY AND ALL PREVIOUS DISCUSSIONS, CORRESPONDENCE, AGREEMENTS AND OTHER UNDERSTANDINGS, WHETHER ORAL OR WRITTEN, RELATING TO THE SUBJECT MATTER HEREOF.

[Remainder of page intentionally left blank.  Signature page follows.]


IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 
CB AGENT SERVICES LLC
       
 
By:
/s/ Morris Beyda
   
Name:
Morris Beyda
   
Title:
Partner & COO

 
RIMINI STREET, INC.
       
 
By:
/s/ Seth A. Ravin
   
Name:
 Seth A. Ravin
   
Title:
 CEO
 



Exhibit 10.38


OFFICE LEASE

BETWEEN

MS CRESCENT 3993 HUGHES SPV, LLC

(“LANDLORD”)

AND

RIMINI STREET, INC.

(“TENANT”)


TABLE OF CONTENTS

   
Page
     
1.
Basic Lease Information .
1
2.
Lease Grant .
4
3.
Term; Adjustment of Commencement Date; Early Access .
4
4.
Rent .
5
5.
Tenant’s Use of Premises .
11
6.
Security Deposit .
12
7.
Services Furnished by Landlord .
12
8.
Use of Electrical Services by Tenant .
14
9.
Repairs and Alterations .
15
10.
Entry by Landlord .
17
11.
Assignment and Subletting .
17
12.
Liens .
19
13.
Indemnity .
20
14.
Insurance .
20
15.
Mutual Waiver of Subrogation .
21
16.
Casualty Damage .
22
17.
Condemnation .
23
18.
Events of Default .
23
19.
Remedies .
24
20.
Limitation of Liability .
27
21.
No Waiver .
27
22.
Tenant’s Right to Possession .
27
23.
Relocation .
27
24.
Holding Over .
28
25.
Subordination to Mortgages; Estoppel Certificate .
28
26.
Attorneys’ Fees .
29
27.
Notice .
29
28.
Reserved Rights .
29
29.
Surrender of Premises .
30
30.
Hazardous Materials .
31
31.
Building Directory .
32
32.
Miscellaneous .
32

1

EXHIBITS AND RIDERS :

EXHIBIT A-1
OUTLINE AND LOCATION OF PREMISES
EXHIBIT A-2
LEGAL DESCRIPTION OF PROPERTY
EXHIBIT B
RULES AND REGULATIONS
EXHIBIT C
COMMENCEMENT LETTER
EXHIBIT D
WORK LETTER
EXHIBIT E
PARKING AGREEMENT
EXHIBIT F
JANITORIAL SPECIFICATIONS

RIDER NO. 1
OPTION TO EXTEND

2

OFFICE LEASE

This Office Lease (this “ Lease ”) is entered into by and between MS CRESCENT 3993 HUGHES SPV, LLC, a Delaware limited liability company (“ Landlord ”), and RIMINI STREET, INC., a Nevada corporation (“ Tenant ”), and shall be effective as of the date set forth below Landlord’s signature (the “ Effective Date ”).

1.
Basic Lease Information . The key business terms used in this Lease are defined as follows:

A.            Building ”: The building commonly known as “3993 Howard Hughes Parkway” and located at “3993 Howard Hughes Parkway, Las Vegas, Nevada 89169.

B.            Rentable Square Footage of the Building ” is agreed and stipulated to be 170,868 square feet.

C.            Premises ”: The area shown on Exhibit A-1 to this Lease.  The Premises are located on the seventh floor of the Building and known as suite number 780.  The “ Rentable Square Footage of the Premises ” is deemed to be 3,315 square feet.  The “ Usable Square Footage of the Premises ” is deemed to be 2,913 square feet.  If the Premises include, now or hereafter, one or more floors in their entirety, all corridors and restroom facilities located on such full floor(s) shall be considered part of the Premises.  Landlord and Tenant stipulate and agree that the Rentable Square Footage of the Building, the Rentable Square Footage of the Premises, and the Usable Square Footage of the Premises are correct and shall not be remeasured.

D.            Base Rent ”:

                                       Period
 
Monthly Rate
Per Rentable
Square Foot
 
Monthly
Base Rent
 
November 1, 2013       to       October 31, 2014
$2.90
 
$9,613.50
November 1, 2014       to       October 31, 2015
$2.987
 
$9,901.91
November 1, 2015       to       October 31, 2016
$3.077
 
$10,200.26
November 1, 2016       to       October 31, 2017
$3.169
 
$10,505.24
November 1, 2017       to       October 31, 2018
$3.264
 
$10,820.16
November 1, 2018       to       October 31, 2019
$3.362
 
$11,145.03


Notwithstanding the foregoing, Tenant shall be entitled to an abatement of Base Rent for Month 13 of the initial Term.

E.            Tenant’s Pro Rata Share ”: The percentage equal to the Rentable Square Footage of the Premises divided by the Rentable Square Footage of the Building.

F.            Base Year ” for Operating Expenses: 2013.
-1-

G.            Term ”: The period of approximately seventy-two (72) months starting on the Commencement Date, subject to the provisions of Article 3 .

H.            Estimated Commencement Date ”: November 1, 2013.

I.             Security Deposit ”: $57,681.00.

J.             Guarantor(s) ”: None.

K.            Business Day(s) ”: Monday through Friday of each week, exclusive of New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the day after Thanksgiving and Christmas Day (“ Holidays ”).  Landlord may designate additional Holidays, provided that the additional Holidays are commonly recognized by other office buildings in the area where the Building is located.

L.            Law(s) ”: All applicable statutes, codes, ordinances, orders, rules and regulations of any municipal or governmental entity, now or hereafter adopted, including the Americans with Disabilities Act and any other law pertaining to disabilities and architectural barriers (collectively, “ ADA ”), and all laws pertaining to the environment, including the Comprehensive Environmental Response, Compensation and Liability Act, as amended, 42 U.S.C. §9601 et seq. (“ CERCLA ”), and all restrictive covenants existing of record and all rules and requirements of any existing association or improvement district affecting the Property.

M.            Normal Business Hours ”: 8:00 A.M. to 6:00 P.M. on Business Days and 8:00 A.M. to 1:00 P.M. on Saturdays, exclusive of Holidays.  Tenant shall have access 24 hours per day, 7 days per week, 52 weeks per year to the Premises, the Building and the parking facilities.

N.            Notice Addresses ”:

Tenant : On or after the Commencement Date, notices shall be sent to Tenant at the Premises, Attn: Legal Department.  Prior to the Commencement Date, notices shall be sent to Tenant at the following address:
 
RIMINI STREET, INC.
7251 West Lake Mead Blvd.,
Suite 300
Las Vegas, NV 89128
Attn: Legal Department
 
Landlord :
 
With a copy to:
 
And to:
         
3800 Howard Hughes
Parkway, Suite 150
Las Vegas, Nevada 89169
Attn: Property Manager
Phone #:
Fax #:
 
9 Greenway Plaza
Suite 3040
Houston, Texas 77046
Attn: Managing Director,
Property Management
Phone #:
Fax #:
 
777 Main Street, Suite 2000
Fort Worth, Texas 76102
Attn: Legal Dept.
Phone #:
Fax #:

2

Rent (defined in Section 4.A ) is payable to the order of MS CRESCENT 3993 HUGHES SPV, LLC as follows:

If by check :

MS CRESCENT 3993 HUGHES SPV,
LLC File No. 57501
Los Angeles, California 90074-7501

If by wire transfer :

Bank of America (Dallas, Texas)
ABA #
Account #
Account Name: MS CRESCENT 3993 HUGHES SPV, LLC
Reference: RIMINI STREET, INC.

If by ACH :

Bank of America (Dallas, Texas)
ABA #
Account #
Account Name: MS CRESCENT 3993 HUGHES SPV, LLC
Reference: RIMINI STREET, INC.

O.            Other Defined Terms ”: In addition to the terms defined above, an index of the other defined terms used in the text of this Lease is set forth below, with a cross-reference to the paragraph in this Lease in which the definition of such term can be found:
 
Acceptance Notice
Rider No. 1
Affiliate
11.E
Alterations
9.C(1)
Anti-Money Laundering Laws
32.L
Audit Election Period
4.G
Cable
9.A
Claims
13
Collateral
19.E
Commencement Date
3A
Common Areas
2
Completion Estimate
16.B
Contamination
30.C
Costs of Reletting
19.B
Early Entry
3.C
Excess Operating Expenses
4.B
Executive Order
32.L
Expiration Date
3.A
Force Majeure
32.C
Hazardous Material
30.C
Landlord Parties
13
Landlord Work
3.A
Landlord’s Rental Damages
19.B
Leasehold Improvements
29
Market Rental Rate
Rider No. 1
Minor Alterations
9.C(1)
Monetary Default
18.A
Mortgage
25
Mortgagee
25
New Lease
3.E
OFAC
32.L
 

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Operating Expenses
4.D
Permitted Transfer
11.E
Permitted Use
5.A
Prime Rate
19.B
Prohibited Person
32.L
Property
2
Provider
7.C
Relocated Premises
23
Relocation Date
23
Renewal Notice
Rider No. 1
Renewal Period
Rider No. 1
Rent
4.A
Rental Notice
Rider No. 1
Replacement Space
3.E
Service Failure
7.B
Special Installations
29
Substantial Completion
Work Letter
Taking
17
Tenant Parties
13
Tenant’s Insurance
14.A
Tenant’s Property
14.A
Tenant’s Removable Property
29
Termination Date
3.D
Termination Payment
3.D
Time Sensitive Default
18.B
Transfer
11.A
Work Letter
3.A
 
2.               Lease Grant . Landlord leases the Premises to Tenant and Tenant leases the Premises from Landlord, together with the right in common with others to use any portions of the Property (defined below) that are designated by Landlord for the common use of tenants and others, such as sidewalks, common corridors, vending areas, lobby areas and, with respect to multi-tenant floors, restrooms and elevator foyers (the “ Common Areas ”).  “ Property ” consists of the parcel(s) of land described on Exhibit “A-2” , the Building and all appurtenant parking facilities, landscaping, fixtures, Common Areas, service buildings and improvements now or hereafter constructed thereon or on any land acquired by Landlord (or its affiliates) and added to the Property from time to time.

3.               Term; Adjustment of Commencement Date; Early Access .

A.            Term .  This Lease shall govern the relationship between Landlord and Tenant with respect to the Premises from the Effective Date through the last day of the Term specified in Section 1.G (the “ Expiration Date ”), unless terminated early in accordance with this Lease.  The Term of this Lease (as specified in Section 1.G ) shall commence on the “ Commencement Date ”, which shall be November 1, 2013.  Landlord shall use its commercially reasonable efforts to Substantially Complete the Landlord Work, as such terms are defined in the Work Letter which is attached to this Lease as Exhibit D, by September 1, 2013.  If Landlord is delayed in delivering possession of the Premises or any other space due to any reason, such delay shall not be a default by Landlord, render this Lease void or voidable, or otherwise render Landlord liable for damages.

B.            Acceptance of Premises .  The Premises are accepted by Tenant in “as is” condition and configuration, subject to the completion of the Landlord Work.  Tenant hereby agrees that, except as otherwise expressly set forth in this lease, there are no representations or warranties of any kind, express or implied, by Landlord regarding the Premises, the Building or the Property.

C.            Early Access .  Landlord agrees that Tenant may enter the Premises prior to the Commencement Date for the purposes of conducting its business therein (“ Early Entry ”) at any time after the Landlord Work, as defined in the Work Letter which is attached to this Lease as Exhibit D , is Substantially Complete, as defined in the Work Letter.  Such Early Entry shall be subject to all of the terms and conditions contained in this Lease (other than the payment of Base Rent and Tenant’s Pro Rata Share of Excess Operating Expenses), including, without limitation, Tenant’s insurance and indemnity obligations as contained in this Lease.  Prior to any such Early Entry, Tenant shall provide Landlord with certificates of insurance or other evidence acceptable to Landlord evidencing Tenant’s compliance with its insurance obligations.

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D.            Early Termination .  Tenant shall have the option to terminate this Lease as of the end of the sixtieth (60 th ) month of the initial Term (the “ Termination Date ”), provided Tenant gives notice thereof to Landlord not less than twelve (12) months prior to the Termination Date and provided Tenant is not in default under the Lease at the time of the giving of such notice nor on the Termination Date.  Additionally, Tenant’s right to terminate hereunder is conditioned upon the payment in full by Tenant, simultaneously with the delivery of the notice of termination, of Forty-Seven Thousand Five Hundred Seventeen and 57/100 Dollars ($47,517.57), which is the unamortized cost (using an amortization rate of 9%) of all tenant improvement allowances, leasing commissions, reasonable legal fees and rental abatement actually paid or provided by Landlord in connection with the Lease (collectively, the “ Termination Payment ”).  After Landlord’s receipt of the full Termination Payment, and so long as Tenant has surrendered the Premises in the condition required under this Lease, neither party shall have any rights, liabilities or obligations under this Lease for the period accruing after the Termination Date, except those which, by the provisions of this Lease, expressly survive the termination of this Lease.

E.             Right to Terminate .  Without limiting the foregoing Section 3.D, Tenant shall have the right to terminate the Lease upon satisfaction of all of the following conditions precedent:

(i)             Landlord is unable to accommodate Tenant’s additional expansion requests within the Building;

(ii)            No uncured event of default beyond applicable notice and cure periods by Tenant exists following applicable notice and cure periods;

(iii)           Tenant has provided Landlord with ninety (90) days prior written notice of Tenant’s intent to terminate the Lease and Tenant specifies the date the termination will be effective; and

(iv)          Tenant enters into a lease (the “ New Lease ”) with Landlord or an affiliate of Landlord for replacement space (the “ Replacement Space ”) within Hughes Center, the office building complex in which the Building is located, for a minimum of six thousand six hundred thirty (6,630) Rentable Square Feet and for a minimum lease term of sixty (60) months.

Upon Tenant’s satisfaction of the foregoing conditions, the Lease shall automatically terminate when Tenant occupies the Replacement Space pursuant to the New Lease.  Landlord and Tenant acknowledge that the new Lease will be based upon similar terms then currently being offered to other potential tenants desiring similar space (including tenant improvements) in such building.

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4.               Rent .

A.             Payments .  As consideration for this Lease, commencing on the Commencement Date, Tenant shall pay Landlord, without any demand, setoff or deduction, the total amount of Base Rent, Tenant’s Pro Rata Share of Excess Operating Expenses (defined in Section 4.B ) and any and all other sums payable by Tenant under this Lease (all of which are sometimes collectively referred to as “ Rent ”).  Tenant shall pay and be liable for all rental, sales and use taxes (but excluding income taxes), if any, imposed upon or measured by Rent under applicable Law.  The monthly Base Rent and Tenant’s Pro Rata Share of Excess Operating Expenses shall be due and payable in advance on the first day of each calendar month without notice or demand, provided that the installment of Base Rent for the first full calendar month of the Term for which Base Rent is payable shall be payable upon the execution of this Lease by Tenant.  All other items of Rent shall be due and payable by Tenant on or before 30 days after billing by Landlord.  All payments of Rent shall be by good and sufficient check or by other means (such as automatic debit or electronic transfer) acceptable to Landlord.  If the Term commences on a day other than the first day of a calendar month, the monthly Base Rent and Tenant’s Pro Rata Share of any Excess Operating Expenses for the month shall be prorated on a daily basis based on a 360 day calendar year.  Landlord’s acceptance of less than the correct amount of Rent shall be considered a payment on account of the earliest Rent due.  No endorsement or statement on a check or letter accompanying a check or payment shall be considered an accord and satisfaction, and either party may accept such check or payment without such acceptance being considered a waiver of any rights such party may have under this Lease or applicable Law.  Tenant’s covenant to pay Rent is independent of every other covenant in this Lease.

B.            Excess Operating Expenses .  Tenant shall pay Tenant’s Pro Rata Share of the amount, if any, by which Operating Expenses (defined in Section 4.D ) for each calendar year during the Term exceed Operating Expenses for the Base Year (the “ Excess Operating Expenses ”).  If Operating Expenses in any calendar year decrease below the amount of Operating Expenses for the Base Year, Tenant’s Pro Rata Share of Excess Operating Expenses for that calendar year shall be $0.  In no event shall Base Rent be reduced if Operating Expenses for any calendar year are less than Operating Expenses for the Base Year.  On or about January 1 of each calendar year, Landlord shall provide Tenant with a good faith estimate of the Excess Operating Expenses for such calendar year during the Term.  On or before the first day of each month, Tenant shall pay to Landlord a monthly installment equal to one-twelfth of Tenant’s Pro Rata Share of Landlord’s estimate of the Excess Operating Expenses.  If Landlord determines that its good faith estimate of the Excess Operating Expenses was incorrect, Landlord may provide Tenant with a revised estimate.  After its receipt of the revised estimate, Tenant’s monthly payments shall be based upon the revised estimate.  If Landlord does not provide Tenant with an estimate of the Excess Operating Expenses by January 1 of a calendar year, Tenant shall continue to pay monthly installments based on the most recent estimate(s) until Landlord provides Tenant with the new estimate.  Upon delivery of the new estimate, an adjustment shall be made for any month for which Tenant paid monthly installments based on the same year’s prior incorrect estimate(s).  Tenant shall pay Landlord the amount of any underpayment within 30 days after receipt of the new estimate.  Any overpayment shall be credited against the next sums due and owing by Tenant or, if no further Rent is due, refunded directly to Tenant within 30 days of determination.  The obligation of Tenant to pay for Excess Operating Expenses as provided herein shall survive the expiration or earlier termination of this Lease.
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C.            Reconciliation of Operating Expenses .  Within 120 days after the end of each calendar year or as soon thereafter as is practicable, Landlord shall furnish Tenant with a statement of the actual Operating Expenses and Excess Operating Expenses for such calendar year.  If the most recent estimated Excess Operating Expenses paid by Tenant for such calendar year are more than the actual Excess Operating Expenses for such calendar year, Landlord shall apply any overpayment by Tenant against Rent due or next becoming due; provided, if the Term expires before the determination of the overpayment, Landlord shall, within 30 days of determination, refund any overpayment to Tenant after first deducting the amount of Rent due.  If the most recent estimated Excess Operating Expenses paid by Tenant for the prior calendar year are less than the actual Excess Operating Expenses for such year, Tenant shall pay Landlord, within 30 days after its receipt of the statement of Operating Expenses, any underpayment for the prior calendar year.

D.            Operating Expenses Defined .  “ Operating Expenses ” means all costs and expenses incurred or accrued in each calendar year in connection with the ownership, operation, maintenance, management, repair and protection of the Property which are directly attributable or reasonably allocable to the Building, including Landlord’s personal property used in connection with the Property and including all costs and expenditures relating to the following:

(1)            Operation, maintenance, repair and replacements of any part of the Property, including the mechanical, electrical, plumbing, HVAC, vertical transportation, fire prevention and warning and access control systems; materials and supplies (such as building standard light bulbs and ballasts); equipment and tools; floor, wall and window coverings; personal property; required or beneficial easements; and related service agreements and rental expenses.

(2)            Administrative costs and management fees, including accounting, information and professional services (except for negotiations and disputes with specific tenants not affecting other parties), provided that the management fee shall not exceed 5% of gross revenues for the Property; management office(s); and wages, salaries, benefits, reimbursable expenses and taxes (or allocations thereof) for full and part time personnel involved in operation, maintenance and management.

(3)            Janitorial service; window cleaning; waste disposal; gas, water and sewer and other utility charges (including add-ons); and landscaping, including all applicable tools and supplies.

(4)            Property, liability and other insurance coverages carried by Landlord, including deductibles and risk retention programs and a proportionate allocation of the cost of blanket insurance policies maintained by Landlord and/or its Affiliates (defined below).

(5)            Real estate taxes, assessments, business taxes, excises, association dues, fees, levies, charges and other taxes of every kind and nature whatsoever, general and special, extraordinary and ordinary, foreseen and unforeseen, including interest on installment payments, which may be levied or assessed against or arise in connection with ownership, use, occupancy, rental, operation or possession of the Property (including personal property taxes for property that is owned by Landlord and used in connection with the operation, maintenance and repair of the Property), or substituted, in whole or in part, for a tax previously in existence by any taxing authority, or assessed in lieu of a tax increase, or paid as rent under any ground lease.  Real estate taxes do not include Landlord’s income, franchise or estate taxes (except to the extent such excluded taxes are assessed in lieu of taxes included above).

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(6)            Compliance with Laws, including license, permit and inspection fees (but not in duplication of capital expenditures amortized as provided in Section 4.D(9) and not including any costs to remedy a violation of applicable Law cited by a governmental authority or court of competent jurisdiction of a condition which existed prior to the Effective Date); and all expenses and fees, including attorneys’ fees and court or other venue of dispute resolution costs, incurred in negotiating or contesting real estate taxes or the validity and/or applicability of any governmental enactments which may affect Operating Expenses; provided Landlord shall credit against Operating Expenses any refunds received from such negotiations or contests to the extent originally included in Operating Expenses (less Landlord’s costs).

(7)            Building safety services, to the extent provided or contracted for by Landlord.

(8)            Goods and services purchased from Landlord’s subsidiaries and Affiliates to the extent the cost of same is generally consistent with rates charged by unaffiliated third parties for similar goods and services.

(9)            Amortization of capital expenditures incurred: (a) to conform with Laws which are amended, become effective, or are interpreted or enforced differently, after the date of this Lease; provided, however, all capital expenditures made in order to conform to or comply with ADA shall be included in Operating Expenses; (b) to provide or maintain building standards (other than building standard tenant improvements); or (c) with the intention of promoting safety or reducing or controlling increases in Operating Expenses, such as lighting retrofit and installation of energy management systems.  Such expenditures shall be amortized uniformly over the following periods of time (together with interest on the unamortized balance at the Prime Rate (defined in Section 19.B ) as of the date incurred plus 2%): for building improvements, the shorter of 10 years or the estimated useful life of the improvement; and for all other items, 3 years for expenditures under $50,000 and 5 years for expenditures in excess of $50,000.  Notwithstanding the foregoing, Landlord may elect to amortize capital expenditures under this subsection over a longer period of time based upon (i) the purpose and nature of the expenditure, (ii) the relative capital burden on the Property, (iii) for cost savings projects, the anticipated payback period, and (iv) otherwise in accordance with sound real estate accounting principles consistently applied.

(10)            Electrical services used in the operation, maintenance and use of the Property; sales, use, excise and other taxes assessed by governmental authorities on electrical services supplied to the Property, and other costs of providing electrical services to the Property.

(11)            All amounts charged to the Building pursuant to the REA.  The “ REA ” shall mean (i) that certain Amendment and Restatement of the Grant of Reciprocal Easements and Declaration of Covenants recorded in the Official Records of Clark County, Nevada on September 8, 1995 in Book 950908 as Instrument No. 01919 as may be amended from time to time and (ii) that certain Howard Hughes Declaration of Covenants recorded in the Official Records of Clark County, Nevada on October 11, 1985 in Book 2199 as Instrument No. 2158547 as amended by the First Amendment to Howard Hughes Declaration of Covenants dated August 28, 1995 recorded in the Official Records of Clark County, Nevada on September 8, 1995 in Book 950908 as Instrument No. 01918 as further amended by the Second Amendment to Howard Hughes Declaration of Covenants dated November 27, 1995 recorded in the Official Records of Clark County, Nevada on December 6, 1995 in Book 951206 as Instrument No. 00257, as may be amended from time to time.

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E.             Exclusions from Operating Expenses .  Operating Expenses exclude the following expenditures:

(1)            Leasing commissions, attorneys’ fees and other expenses related to leasing tenant space and constructing improvements for the sole benefit of an individual tenant.

(2)            Goods and services furnished to an individual tenant of the Building which are above building standard and which are separately reimbursable directly to Landlord in addition to Excess Operating Expenses.

(3)            Repairs, replacements and general maintenance paid by insurance proceeds or condemnation proceeds.

(4)            Except as provided in Section 4.D(9), depreciation, amortization, interest payments on any encumbrances on the Property and the cost of capital improvements, capital repairs or capital additions.

(5)            Costs of installing any specialty service, such as an observatory, broadcasting facility, luncheon club, or athletic or recreational club.

(6)            Expenses for repairs or maintenance related to the Property which are covered by warranties or service contracts.

(7)            Costs (other than maintenance costs) of any art work (such as sculptures or paintings) used to decorate the Building.

(8)            Principal payments on indebtedness secured by liens against the Property, or costs of refinancing such indebtedness.

(9)            All costs, in excess of $50,000 in any calendar year, arising from the release, removal or remediation (including encapsulation) of Hazardous Materials in or about the Premises, the Building or the Property, including, without limitation, Hazardous Materials in the ground water or soil, unless caused by the acts or omissions of any Tenant Party.

(10)          Rental loss, bad debt or capital expenditure reserve accounts (other than escrow accounts for the payment of property taxes and insurance premiums).

(11)          The cost of any work or service performed for any tenant (including Tenant) at such tenant’s cost.

(12)          Assessments in excess of the amount (including interest) that would be payable if such assessment was paid in installments over the longest permitted term.

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F.             Proration of Operating Expenses; Adjustments .  If Landlord incurs Operating Expenses for the Property together with one or more other buildings or properties, whether pursuant to a reciprocal easement agreement, common area agreement or otherwise, the shared costs and expenses shall be equitably prorated and apportioned by Landlord between the Property and the other buildings or properties.  If the Building is not 100% occupied during any calendar year or partial calendar year or if Landlord is not supplying services to 100% of the total Rentable Square Footage of the Building at any time during a calendar year or partial calendar year, Operating Expenses shall be determined as if the Building had been 100% occupied and assessed and Landlord had been supplying services to 100% of the Rentable Square Footage of the Building during that calendar year.  If Tenant pays for Tenant’s Pro Rata Share of Operating Expenses based on increases over a “ Base Year ” and Operating Expenses for a calendar year are determined as provided in the prior sentence, Operating Expenses for the Base Year shall also be determined as if the Building had been 100% occupied and Landlord had been supplying services to 100% of the Rentable Square Footage of the Building.  The extrapolation of Operating Expenses under this Section shall be performed by Landlord by adjusting the cost of those components of Operating Expenses that are impacted by changes in the occupancy of the Building.

G.            Audit Rights .  Within 60 days after Landlord furnishes its statement of actual Operating Expenses for any calendar year (including the Base Year) (the “ Audit Election Period ”), Tenant may, at its expense, elect to audit Landlord’s Operating Expenses for such calendar year only, subject to the following conditions: (1) there is no uncured event of default under this Lease; (2) the audit shall be prepared by an independent certified public accounting firm of recognized national standing; (3) in no event shall any audit be performed by a firm retained on a “contingency fee” basis; (4) the audit shall commence within 30 days after Landlord makes Landlord’s books and records available to Tenant’s auditor and shall conclude within 60 days after commencement; (5) the audit shall be conducted during Landlord’s normal business hours at the location where Landlord maintains its books and records and shall not unreasonably interfere with the conduct of Landlord’s business; (6) Tenant and its accounting firm shall treat any audit in a confidential manner and shall each execute Landlord’s confidentiality agreement for Landlord’s benefit prior to commencing the audit; and (7) the accounting firm’s audit report shall, at no charge to Landlord, be submitted in draft form for Landlord’s review and comment before the final approved audit report is delivered to Landlord, and any reasonable comments by Landlord shall be incorporated into the final audit report.  This paragraph shall not be construed to limit, suspend, or abate Tenant’s obligation to pay Rent when due, including estimated Excess Operating Expenses.  Landlord shall credit any overpayment determined by the final approved audit report against the next Rent due and owing by Tenant or, if no further Rent is due, refund such overpayment directly to Tenant within 30 days of determination.  Likewise, Tenant shall pay Landlord any underpayment determined by the final approved audit report within 30 days of determination.  The foregoing obligations shall survive the expiration or termination of this Lease.  If Tenant does not give written notice of its election to audit Landlord’s Operating Expenses during the Audit Election Period, Landlord’s Operating Expenses for the applicable calendar year shall be deemed approved for all purposes, and Tenant shall have no further right to review or contest the same.  The right to audit granted hereunder is personal to the initial Tenant named in this Lease and to any assignee under a Permitted Transfer (defined below) and shall not be available to any subtenant under a sublease of the Premises.  If the audit proves that Landlord’s calculation of Operating Expenses for the calendar year under inspection was overstated by more than five percent (5%), then, after verification, Landlord shall pay Tenant’s actual reasonable out-of-pocket audit and inspection fees (but specifically excluding any travel and lodging expenses) applicable to the review of said calendar year statement within thirty (30) days after receipt of Tenant’s invoice therefor.

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5.               Tenant’s Use of Premises .

A.            Permitted Uses .  The Premises shall be used only for general office use (the “ Permitted Use ”) and for no other use whatsoever.  Tenant shall not use or permit the use of the Premises for any purpose which is illegal, in violation of the REA or any other recorded covenants or restrictions, creates obnoxious odors (including tobacco smoke), noises or vibrations, is dangerous to persons or property, could increase Landlord’s insurance costs, or which, in Landlord’s reasonable opinion, unreasonably disturbs any other tenants of the Building or interferes with the operation or maintenance of the Property.  Except as provided below, the following uses are expressly prohibited in the Premises: schools, government offices or agencies; personnel agencies; collection agencies; credit unions; data processing, telemarketing or reservation centers; medical treatment and health care; radio, television or other telecommunications broadcasting; restaurants and other retail; customer service offices of a public utility company; or any other purpose which would, in Landlord’s reasonable opinion, impair the reputation or quality of the Building, overburden any of the Building systems, Common Areas or parking facilities, impair Landlord’s efforts to lease space or otherwise interfere with the operation of the Property.  Notwithstanding the foregoing, the following ancillary uses are permitted in the Premises only so long as they do not, in the aggregate, occupy more than 10% of the Rentable Square Footage of the Premises or any single floor (whichever is less): (1) the following services provided by Tenant exclusively to its employees: schools, training and other educational services; credit unions; and similar employee services; and (2) the following services directly and exclusively supporting Tenant’s business: telemarketing; reservations; storage; data processing; debt collection; and similar support services.

B.            Compliance with Laws .  Tenant shall comply with all Laws regarding the operation of Tenant’s business and the use, condition, configuration and occupancy of the Premises and the use of the Common Areas.  Tenant, within 10 days after receipt, shall provide Landlord with copies of any notices Tenant receives regarding a violation or alleged or potential violation of any Laws.  Tenant shall comply with the rules and regulations of the Building attached as Exhibit B and such other reasonable rules and regulations (or modifications thereto) adopted by Landlord from time to time.  Such rules and regulations will be applied in an equitable manner as determined by Landlord.  Tenant shall also cause its agents, contractors, subcontractors, employees, customers, and subtenants to comply with all rules and regulations.

C.            Tenant’s Security Responsibilities .  Tenant shall (1) lock the doors to the Premises and take other reasonable steps to secure the Premises and the personal property of all Tenant Parties (defined in Article 13 ) and any of Tenant’s transferees, contractors or licensees in the Common Areas and parking facilities of the Building and Property, from unlawful intrusion, theft, fire and other hazards; (2) keep and maintain in good working order all security and safety devices installed in the Premises by or for the benefit of Tenant (such as locks, smoke detectors and burglar alarms); and (3) cooperate with Landlord and other tenants in the Building on Building safety matters.  Tenant acknowledges that any security or safety measures employed by Landlord are for the protection of Landlord’s own interests; that Landlord is not a guarantor of the security or safety of the Tenant Parties or their property; and that such security and safety matters are the responsibility of Tenant and the local law enforcement authorities.
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6.              Security Deposit.

The Security Deposit shall be delivered to Landlord upon the execution of this Lease by Tenant and shall be held by Landlord (without liability for interest, except to the extent required by Law) as security for the performance of Tenant’s obligations under this Lease.  Notwithstanding the foregoing if, between the Effective Date and the end of the twenty-second (22nd) month of the Commencement Date (the “ Partial Return Date ”): (a) there has been no event of uncured default under the terms of this Lease; and (b) there has been no Transfer (other than a Permitted Transfer) under the terms of this Lease (the conditions set forth in (a) and (b) being referred to as the “ Conditions ”), upon written request of Tenant given at any time after the Partial Return Date and subject to satisfaction of the Conditions, Landlord shall refund Forty-Eight Thousand Sixty-Seven and 50/100 Dollars ($48,067.50 of the Security Deposit to Tenant (so that, after such refund, Landlord will be holding only Nine Thousand Six Hundred Thirteen and 50/100 Dollars ($9,613.50) as a Security Deposit), and the term “Security Deposit,” as used herein, shall automatically be deemed to refer only to the amount being held by Landlord as a Security Deposit after any such refund.  Nothing contained in this Section 6 shall be deemed to restrict or modify in any way any of Landlord’s rights with respect to the Security Deposit during any time that such Security Deposit is held by Landlord as provided in this Lease.  The Security Deposit is not an advance payment of Rent or a measure of Tenant’s liability for damages.  Landlord may, from time to time while an event of default remains uncured, without prejudice to any other remedy, use all or a portion of the Security Deposit to satisfy past due Rent, cure any uncured default by Tenant, or repay Landlord for damages and charges for which Tenant is legally liable under this Lease or resulting from Tenant’s breach of this Lease.  If Landlord uses the Security Deposit, Tenant shall on demand restore the Security Deposit to its original amount and such use by Landlord of the Security Deposit shall not constitute a cure of the existing event of default until such time as the entire amount owing to Landlord is paid in full and the Security Deposit is fully restored.  Provided that Tenant has performed all of its obligations hereunder, Landlord shall return any unapplied portion of the Security Deposit to Tenant within 30 days after the later to occur of: (A) the date Tenant surrenders possession of the Premises to Landlord in accordance with this Lease; or (B) the Expiration Date.  Tenant does hereby authorize Landlord to withhold from the Security Deposit all amounts allowed by Law and the amount reasonably anticipated by Landlord to be owed by Tenant as a result of an underpayment of Tenant’s Pro Rata Share of any Excess Operating Expenses for the final year of the Term.  To the fullest extent permitted by applicable Law, Tenant agrees that the provisions of this Article 6 shall supersede and replace all statutory rights of Tenant under applicable Law regarding the retention, application or return of security deposits.  If Landlord transfers its interest in the Premises, Landlord shall assign the Security Deposit to the transferee and, following the assignment and the delivery to Tenant of an acknowledgement of the transferee’s responsibility for the Security Deposit if required by Law, Landlord shall have no further liability for the return of the Security Deposit.  Landlord shall not be required to keep the Security Deposit separate from its other accounts.

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7.               Services Furnished by Landlord .

A.            Standard Services .  Subject to the provisions of this Lease, Landlord agrees to furnish (or cause a third party provider to furnish) the following services to Tenant during the Term:

(1)            Water service for use in the lavatories on each floor on which the Premises are located.

(2)            Heat and air conditioning in season during Normal Business Hours, at such temperatures and in such amounts as required by governmental authority or as Landlord determines are standard for the Building.  Tenant, upon such notice as is reasonably required by Landlord, and subject to the capacity of the Building systems, may request HVAC service during hours other than Normal Business Hours.  Tenant shall pay Landlord for such additional service at a rate equal to $55.00 per operating hour (the “ Hourly HVAC Charge ”).  Landlord shall have the right, upon 30 days prior written notice to Tenant, to adjust the Hourly HVAC Charge from time to time, but not more than once per calendar year, based proportionately upon increases in HVAC costs, which costs include utilities, taxes, surcharges, labor, equipment, maintenance and repair, not to exceed the prevailing rate generally charged by Landlord to tenants in the Building.

Notwithstanding the foregoing, additional overtime HVAC utilized by Tenant in any calendar year shall be charged as follows:

Annual Overtime Hours
Discounted Rate
1 - 200
$35.00/per hour
201 - 500
$40.00/per hour

(3)            Maintenance and repair of the Property as described in Section 9.B.

(4)            Janitorial service five days per week (excluding Holidays), substantially in accordance with the Janitorial Specifications set forth on Exhibit F .  If Tenant’s use of the Premises, floor covering or other improvements require special services in excess of the standard services for the Building, Tenant shall pay the additional cost attributable to the special services.

(5)            Elevator service, subject to proper authorization and Landlord’s policies and procedures for use of the elevator(s) in the Building.

(6)            Exterior window washing at such intervals as determined by Landlord.

(7)            Electricity to the Premises for general office use, in accordance with and subject to the terms and conditions in Article 8 .

(8)            On-site building safety personnel services consistent with comparable buildings in the Las Vegas area from 6:00 a.m. to 10:00 p.m. on weekdays and 8:00 a.m. to 1:00 p.m. on Saturdays, other than Holidays, subject to the provisions of Section 5.C.   A security station for the Hughes Center is currently located at 3800 Howard Hughes Parkway and that security station is now manned 24-hours per day, 7-days per week.

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B.            Service Interruptions .  For purposes of this Lease, a “ Service Failure ” shall mean any interruption, suspension or termination of services being provided to Tenant by Landlord or by third-party providers, whether engaged by Tenant or pursuant to arrangements by such providers with Landlord, which are due to (1) the application of Laws; (2) the failure, interruption or malfunctioning of any electrical or mechanical equipment, utility or other service to the Building or Property; (3) the performance of repairs, maintenance, improvements or alterations; or (4) the occurrence of any other event or cause whether or not within the reasonable control of Landlord.  No Service Failure shall render Landlord liable to Tenant, constitute a constructive eviction of Tenant, give rise to an abatement of Rent, or relieve Tenant from the obligation to fulfill any covenant or agreement.  Notwithstanding the foregoing, commencing on the 6th consecutive Business Day of a Service Failure (unless the Service Failure is caused by a fire or other casualty, in which event Section 16 controls), Tenant shall, as its sole remedy, be entitled to an equitable diminution of Base Rent based upon the pro rata portion of the Premises which is rendered unfit for occupancy for the Permitted Use, except to the extent such Service Failure is caused by a Tenant Party.  In no event shall Landlord be liable to Tenant for any loss or damage, including the theft of Tenant’s Property (defined in Article 14 ), arising out of or in connection with any Service Failure or the failure of any Building safety services, personnel or equipment.

C.            Third Party Services .  If Tenant desires any service which Landlord has not specifically agreed to provide in this Lease, such as private security systems or telecommunications services serving the Premises, Tenant shall procure such service directly from a reputable third party service provider (“ Provider ”) for Tenant’s own account.  Tenant shall require each Provider to comply with the Building’s rules and regulations, all Laws, and Landlord’s reasonable policies and practices for the Building.  Tenant acknowledges Landlord’s current policy that requires all Providers utilizing any area of the Property outside the Premises to be approved by Landlord and to enter into a written agreement acceptable to Landlord prior to gaining access to, or making any installations in or through, such area.  Accordingly, Tenant shall give Landlord written notice sufficient for such purposes.

8.
Use of Electrical Services by Tenant .

A.            Landlord’s Electrical Service .  Subject to the terms of this Lease, Landlord shall furnish building standard electrical service to the Premises sufficient to operate customary lighting, office machines and other equipment of similar low electrical consumption.  Landlord may, at any time and from time to time, calculate Tenant’s actual electrical consumption in the Premises by a survey conducted by a reputable consultant selected by Landlord, all at Tenant’s expense.  The cost of any electrical consumption in excess of that which Landlord determines is standard for the Building shall be paid by Tenant in accordance with Section 8.D .  The furnishing of electrical services to the Premises shall be subject to the rules, regulations and practices of the supplier of such electricity and of any municipal or other governmental authority regulating the business of providing electrical utility service.  Landlord shall not be liable or responsible to Tenant for any loss, damage or expense which Tenant may sustain or incur if either the quantity or character of the electrical service is changed or is no longer available or no longer suitable for Tenant’s requirements.

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B.            Selection of Electrical Service Provider .  Landlord shall have and retain the sole right to select the provider of electrical services to the Building and/or the Property.  To the fullest extent permitted by Law, Landlord shall have the continuing right to change such utility provider.  All charges and expenses incurred by Landlord due to any such changes in electrical services, including maintenance, repairs, installation and related costs, shall be included in the electrical services costs referenced in Section 4.D(10) , unless paid directly by Tenant.

C.            Submetering .  Landlord shall have the continuing right, upon 30 days written notice, to install a submeter for the Premises at Tenant’s expense, but such expense shall only be charged to Tenant if Landlord is installing submeters for all or substantially all tenants or has a reasonable belief that Tenant’s electrical consumption is above building standard.  If submetering is installed for the Premises, Landlord may charge for Tenant’s actual electrical consumption monthly in arrears for the kilowatt hours used, a rate per kilowatt hour equal to that charged to Landlord by the provider of electrical service to the Building during the same period of time along with any other out-of-pocket related costs paid by Landlord for such electrical consumption, except as to electricity directly purchased by Tenant from third party providers after obtaining Landlord’s consent to the same.  In the event Landlord is unable to determine the exact kilowatt hourly charge during the period of time, Landlord shall use the average kilowatt hourly charge to the Building for the first billing cycle ending after the period of time in question.  Even if the Premises are submetered, Tenant shall remain obligated to pay Tenant’s Pro Rata Share of the cost of electrical services as provided in Section 4.B , except that Tenant shall be entitled to a credit against electrical services costs equal to that portion of the amounts actually paid by Tenant separately and directly to Landlord which are attributable to building standard electrical services submetered to the Premises.

D.            Excess Electrical Service .  Tenant’s use of electrical service shall not exceed, in voltage, rated capacity, use beyond Normal Business Hours or overall load, that which Landlord deems to be standard for the Building.  If Tenant requests permission to consume excess electrical service, Landlord may refuse to consent or may condition consent upon conditions that Landlord reasonably elects (including the installation of utility service upgrades, meters, submeters, air handlers or cooling units).  The costs of any approved additional consumption (to the extent permitted by Law), installation and maintenance shall be paid by Tenant.

9.
Repairs and Alterations .

A.            Tenant’s Repair Obligations .  Tenant shall keep the Premises in good condition and repair, ordinary wear and tear excepted.  Tenant’s repair obligations include, without limitation, repairs to: (1) floor covering and/or raised flooring; (2) interior partitions; (3) doors; (4) the interior side of demising walls; (5) electronic, phone and data cabling and related equipment (collectively, “ Cable ”) that is installed by or for the benefit of Tenant whether located in the Premises or in other portions of the Building; (6) supplemental air conditioning units, private showers and kitchens, including hot water heaters, plumbing, dishwashers, ice machines and similar facilities serving Tenant exclusively; (7) phone rooms used exclusively by Tenant; (8) Alterations (defined below) performed by contractors retained by Tenant, including related HVAC balancing; and (9) all of Tenant’s furnishings, trade fixtures, equipment and inventory.  Prior to performing any such repair obligation, Tenant shall give written notice to Landlord describing the necessary maintenance or repair.  Upon receipt of such notice, Landlord may elect either to perform any of the maintenance or repair obligations specified in such notice, or require that Tenant perform such obligations by using contractors approved by Landlord.  All work that is Tenant’s responsibility hereunder shall be performed by Tenant (except as otherwise provided herein) at Tenant’s expense in accordance with the rules and procedures described in Section 9.C below.  If Tenant fails to make any repairs to the Premises for more than 15 days after notice from Landlord (although notice shall not be required if there is an emergency), Landlord may, in addition to any other remedy available to Landlord, make the repairs, and Tenant shall pay to Landlord the reasonable cost of the repairs within 30 days after receipt of an invoice, together with an administrative charge in an amount equal to 15% of the cost of the repairs.

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B.            Landlord’s Repair Obligations .  Landlord shall keep and maintain in good repair and working order and make repairs to and perform maintenance upon: (1) structural elements of the Building; (2) standard mechanical (including HVAC), electrical, plumbing and fire/life safety systems serving the Building generally; (3) Common Areas; (4) the roof of the Building; (5) exterior windows of the Building; and (6) elevators serving the Building.  Landlord shall promptly make repairs (taking into account the nature and urgency of the repair) for which Landlord is responsible.  If any of the foregoing maintenance or repair is necessitated due to the acts or omissions of any Tenant Party (defined in Section 13 ), Tenant shall pay the costs of such repairs or maintenance to Landlord within 30 days after receipt of an invoice, together with an administrative charge in an amount equal to 15% of the cost of the repairs.

C.
Alterations .

(1)            When Consent Is Required .  Tenant shall not make alterations, additions or improvements to the Premises or install any Cable in the Premises or other portions of the Building (collectively, “ Alterations ”) without first obtaining the written consent of Landlord in each instance.  However, Landlord’s consent shall not be required for any Alteration that satisfies all of the following criteria (a “ Minor Alteration ”): (a) is of a cosmetic nature such as painting, wallpapering, hanging pictures and installing carpeting; (b) is not visible from outside the Premises or Building; (c) will not affect the systems or structure of the Building; and (d) does not require work to be performed inside the walls or above the ceiling of the Premises.

(2)            Requirements For All Alterations, Including Minor Alterations .  Prior to starting work on any Alteration, Tenant shall furnish to Landlord for review and approval: plans and specifications; names of proposed contractors (provided that Landlord may designate specific contractors with respect to Building systems); copies of contracts; necessary permits and approvals; evidence of contractors’ and subcontractors’ insurance; and Tenant’s security for performance of the Alteration.  Changes to the plans and specifications must also be submitted to Landlord for its approval.  Some of the foregoing requirements may be waived by Landlord for the performance of specific Minor Alterations; provided that such waiver is obtained in writing prior to the commencement of such Minor Alterations.  Landlord’s waiver on one occasion shall not waive Landlord’s right to enforce such requirements on any other occasion.  Alterations shall be constructed in a good and workmanlike manner using materials of a quality that is at least equal to the quality designated by Landlord as the minimum standard for the Building.  Landlord may designate reasonable rules, regulations and procedures for the performance of Alterations in the Building and, to the extent reasonably necessary to avoid disruption to the occupants of the Building, shall have the right to designate the time when Alterations may be performed.  Tenant shall reimburse Landlord within 30 days after receipt of an invoice for out-of-pocket sums paid by Landlord for third party examination of Tenant’s plans for Alterations.  In addition, within 30 days after receipt of an invoice from Landlord, Tenant shall pay to Landlord a fee equal to 5% of the total cost of such Alterations for Landlord’s oversight and coordination of any Alterations.  No later than 30 days after completion of the Alterations, Tenant shall furnish “as-built” plans (which shall not be required for Minor Alterations), completion affidavits, full and final waivers of liens, receipts and bills covering all labor and materials.  Tenant shall assure that the Alterations comply with all insurance requirements and Laws.

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(3)            Landlord’s Liability For Alterations .  Landlord’s approval of an Alteration shall not be a representation by Landlord that the Alteration complies with applicable Laws or will be adequate for Tenant’s use.  Tenant acknowledges that Landlord is not an architect or engineer, and that the Alterations will be designed and/or constructed using independent architects, engineers and contractors.  Accordingly, Landlord does not guarantee or warrant that the applicable construction documents will comply with Laws or be free from errors or omissions, or that the Alterations will be free from defects, and Landlord will have no liability therefor.

(4)            N.R.S. Sections 108.2403 and 108.2407 .  Prior to commencing any Alterations, (i) Tenant shall comply with N.R.S. Sections 108.2403 and 108.2407 by obtaining a payment and completion bond as required therein in an amount equal to one and one-half (1.5) times the aggregate contract price for the Alterations; and (ii) providing evidence of such compliance to Landlord.

10.             Entry by Landlord . Landlord, its agents, contractors and representatives may enter the Premises to inspect or show the Premises, to clean and make repairs, alterations or additions to the Premises, and to conduct or facilitate repairs, alterations or additions to any portion of the Building, including other tenants’ premises.  Except in emergencies or to provide janitorial and other Building services after Normal Business Hours, Landlord shall provide Tenant with reasonable prior notice of entry into the Premises, which may be given orally.  Landlord shall have the right to temporarily close all or a portion of the Premises to perform repairs, alterations and additions, if reasonably necessary for the protection and safety of Tenant and its employees.  Except in emergencies, Landlord will not close the Premises if the work can reasonably be completed on weekends and after Normal Business Hours; provided, however, that Landlord is not required to conduct work on weekends or after Normal Business Hours if such work can be conducted without closing the Premises.  Entry by Landlord for any such purposes shall not constitute a constructive eviction or entitle Tenant to an abatement or reduction of Rent.

11.
Assignment and Subletting .

A.            Landlord’s Consent Required .  Subject to the remaining provisions of this Article 11 , but notwithstanding anything to the contrary contained elsewhere in this Lease, Tenant shall not assign, transfer or encumber any interest in this Lease (either absolutely or collaterally) or sublease or allow any third party to use any portion of the Premises (collectively or individually, a “ Transfer ”) without the prior written consent of Landlord, which consent shall not be unreasonably withheld. Without limitation, Tenant agrees that Landlord’s consent shall not be considered unreasonably withheld if: (1) the proposed transferee’s financial condition does not meet the criteria Landlord uses to select Building tenants having similar leasehold obligations; (2) the proposed transferee is a governmental organization or present occupant of the Property (unless Landlord is unable to accommodate such present occupant’s need for additional space in the Building of a size comparable to that portion of the Premises covered by the proposed Transfer), or Landlord is otherwise engaged in lease negotiations with the proposed transferee for other premises in the Property; (3) any uncured event of default exists under this Lease (or a condition exists which, with the passage of time or giving of notice, would become an event of default); (4) any portion of the Building or Premises would likely become subject to additional or different Laws as a consequence of the proposed Transfer; (5) the proposed transferee’s use of the Premises conflicts with the Permitted Use or any exclusive usage rights granted to any other tenant in the Building; (6) the use, nature, business, activities or reputation in the business community of the proposed transferee (or its principals, employees or invitees) does not meet Landlord’s standards for Building tenants; or (7) the proposed transferee is or has been involved in litigation with Landlord or any of its Affiliates.  Tenant shall not be entitled to receive monetary damages based upon a claim that Landlord unreasonably withheld its consent to a proposed Transfer and Tenant’s sole remedy shall be an action to enforce any such provision through specific performance or declaratory judgment and to recover Tenant’s actual costs and expenses including reasonable attorneys’ fees if Tenant prevails in such action.  Any attempted Transfer in violation of this Article is voidable at Landlord’s option.

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B.            Consent Parameters/Requirements .  As part of Tenant’s request for, and as a condition to, Landlord’s consent to a Transfer, Tenant shall provide Landlord with financial statements for the proposed transferee, a complete copy (unexecuted) of the proposed assignment or sublease and other contractual documents, and such other information as Landlord may reasonably request.  Other than in connection with a Permitted Transfer, Landlord shall then have the right (but not the obligation) to terminate this Lease as of the date the Transfer would have been effective (“ Landlord Termination Date ”) with respect to the portion of the Premises which Tenant desires to Transfer.  In such event, Tenant shall vacate such portion of the Premises by the Landlord Termination Date and upon Tenant’s vacating such portion of the Premises, the rent and other charges payable shall be proportionately reduced.  Consent by Landlord to one or more Transfer(s) shall not operate as a waiver of Landlord’s rights to approve any subsequent Transfers.  In no event shall any Transfer or Permitted Transfer release or relieve Tenant from any obligation under this Lease, nor shall the acceptance of Rent from any assignee, subtenant or occupant constitute a waiver or release of Tenant from any of its obligations or liabilities under this Lease.  Tenant shall pay Landlord a review fee of $1,000 for Landlord’s review of any Permitted Transfer or requested Transfer, provided if Landlord’s actual reasonable costs and expenses (including reasonable attorney’s fees) exceed $1,000, Tenant shall reimburse Landlord for its actual reasonable costs and expenses in lieu of a fixed review fee, not to exceed $2,000.

C.            Payment to Landlord .  If the aggregate consideration paid to a Tenant Party for a Transfer exceeds that payable by Tenant under this Lease (prorated according to the transferred interest), Tenant shall pay Landlord 50% of such excess (after deducting therefrom reasonable leasing commissions and reasonable costs of tenant improvements paid to unaffiliated third parties in connection with the Transfer, with proof of same provided to Landlord).  Tenant shall pay Landlord for Landlord’s share of any excess within 30 days after Tenant’s receipt of such excess consideration.  If any uncured event of default exists under this Lease (or a condition exists which, with the passage of time or giving of notice, would become an event of default), Landlord may require that all sublease payments be made directly to Landlord, in which case Tenant shall receive a credit against Rent in the amount of any payments received, but not to exceed the amount payable by Tenant under this Lease.

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D.            Change in Control of Tenant .  Except for a Permitted Transfer, if Tenant is a corporation, limited liability company, partnership, or similar entity, and if the entity which owns or controls a majority of the voting shares/rights in Tenant at any time sells or disposes of such majority of voting shares/rights, or no longer controls (directly or indirectly) a majority of the voting shares or rights for any reason (including a merger, consolidation or reorganization), such change of ownership or control shall constitute a Transfer.  The foregoing shall not apply so long as, both before and after the Transfer, Tenant is an entity whose outstanding stock is listed on a recognized U.S. securities exchange, or if at least 80% of its voting stock is owned by another entity, the voting stock of which is so listed; provided, however, that Tenant shall give Landlord written notice at least 30 days prior to the effective date of such change in ownership or control.  In addition, Tenant’s becoming a publicly traded corporation, with its shares listed on a nationally recognized securities exchange, shall not be deemed a Transfer.

E.             No Consent Required .  Tenant may assign its entire interest under this Lease, or sublease any part or all of the Premises, to a corporation or entity that is (1) an Affiliate (defined below); or (2) a successor to Tenant by purchase, merger, consolidation or reorganization; or (3) any corporation which Tenant or Tenant’s parent corporation owns in excess of 25% of the outstanding capital stock; or (4) the transferee of substantially all of Tenant’s assets in the Las Vegas, Nevada area, without the consent of Landlord, provided that all of the following conditions are satisfied in Landlord’s reasonable discretion (a “ Permitted Transfer ”): (1) no uncured event of default exists under this Lease; (2) in the case of an assignment to a successor, Tenant’s successor shall own all or substantially all of the assets of Tenant in the Las Vegas area; (3) in the case of an assignment to a successor or to an Affiliate, Tenant shall give Landlord financial information evidencing the combined ability of such Affiliate or successor and Tenant to fully perform the financial obligations under this Lease, as determined by Landlord, in its reasonable discretion; (4) no portion of the Building or Premises would likely become subject to additional or different Laws as a consequence of the proposed Transfer; (5) such Affiliate’s or successor’s use of the Premises shall not conflict with the Permitted Use or any exclusive usage rights granted to any other tenant in the Building; (6) with respect to an assignment to an Affiliate or successor, such Affiliate or successor is not and has not been involved in litigation with Landlord or any of Landlord’s Affiliates; and (7) Tenant shall give Landlord written notice at least 30 days prior to the effective date of the proposed Transfer, along with all applicable documentation and other information necessary for Landlord to determine that the requirements of this Section 11.E have been satisfied, including if applicable, the qualification of such proposed transferee as an Affiliate of Tenant.  The term “ Affiliate ” means any person or entity controlling, controlled by or under common control with Tenant or Landlord, as applicable.  If requested by Landlord, the Affiliate or successor shall sign a commercially reasonable form of assumption agreement.

12.            Liens . Tenant shall not permit mechanic’s or other liens to be placed upon the Property, Premises or Tenant’s leasehold interest in connection with any work or service done or purportedly done by or for the benefit of Tenant.  If a lien is so placed, Tenant shall, within 10 days of notice from Landlord of the filing of the lien, fully discharge the lien by settling the claim which resulted in the lien or by bonding or insuring over the lien in the manner prescribed by the applicable lien Law.

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If Tenant fails to discharge the lien, then, in addition to any other right or remedy of Landlord, Landlord may bond or insure over the lien or otherwise discharge the lien.  Tenant shall, within 30 days after receipt of an invoice from Landlord, reimburse Landlord for any amount paid by Landlord, including reasonable attorneys’ fees, to bond or insure over the lien or discharge the lien.

13.             Indemnity . Subject to Article 15 Tenant shall hold Landlord, its trustees, Affiliates, subsidiaries, members, principals, beneficiaries, partners, officers, directors, shareholders, employees, Mortgagee(s) (defined in Article 25 ) and agents (including the manager of the Property) (collectively, “ Landlord Parties ”) harmless from, and indemnify and defend such parties against, all liabilities, obligations, damages, penalties, claims, actions, costs, charges and expenses, including reasonable attorneys’ fees and other professional fees that may be imposed upon, incurred by or asserted against any of such indemnified parties (each a “ Claim ” and collectively “ Claims ”) that arise out of Tenant’s possession, use, maintenance or repair of the Premises or any act or omission of Tenant or any of Tenant’s employees, agents and invitees in the Premises or on the Property, except to the extent caused by the gross negligence or willful misconduct of a Landlord Party.  Provided Landlord Parties are properly named as additional insureds in the policies required to be carried under this Lease, and except as otherwise expressly provided in this Lease, the indemnity set forth in the preceding sentence shall be limited to the greater of (A) $5,000,000, and (B) the aggregate amount of general/umbrella liability insurance actually carried by Tenant.  Subject to Articles 9.B , 15 and 20 , Landlord shall hold Tenant, its trustees, members, principals, beneficiaries, partners, officers, directors, shareholders, employees and agents (collectively, “ Tenant Parties ”) harmless from, and indemnify and defend such parties against, all Claims that arise out of or in connection with any damage or injury occurring in or on the Property (excluding the Premises), except to the extent caused by the gross negligence or willful misconduct of a Tenant Party, to the same extent the Tenant Parties would have been covered had they been named as additional insureds on the commercial general liability insurance policy required to be carried by Landlord under this Lease.  The indemnity set forth in the preceding sentence shall be limited to the amount of $5,000,000.

14.
Insurance .

A.            Tenant’s Insurance .  Tenant shall maintain the following insurance (“ Tenant’s Insurance ”), at its sole cost and expense: (1) commercial general liability insurance applicable to the Premises and its appurtenances providing, on an occurrence basis, a per occurrence limit of no less than $1,000,000; (2) causes of loss-special form (formerly “all risk”) property insurance, including flood and earthquake, covering all above building standard leasehold improvements and Tenant’s trade fixtures, equipment, furniture and other personal property within the Premises (“ Tenant’s Property ”) in the amount of the full replacement cost thereof; (3) business income (formerly “business interruption”) insurance written on an actual loss sustained form or with sufficient limits to address reasonably anticipated business interruption losses; (4) business automobile liability insurance to cover all owned, hired and nonowned automobiles owned or operated by Tenant providing a minimum combined single limit of $1,000,000; (5) workers’ compensation insurance as required by the state in which the Premises is located and in amounts as may be required by applicable statute (provided, however, if no workers’ compensation insurance is statutorily required, Tenant shall carry workers’ compensation insurance in a minimum amount of $500,000); (6) employer’s liability insurance in an amount of at least $500,000 per occurrence; and (7) umbrella liability insurance that follows form in excess of the limits specified in (1), (4) and (6) above, of no less than $4,000,000 per occurrence and in the aggregate.  Any company underwriting any of Tenant’s Insurance shall have, according to A.M. Best Insurance Guide , a Best’s rating of not less than A- and a Financial Size Category of not less than VIII.  All commercial general liability, business automobile liability and umbrella liability insurance policies shall name Landlord (or any successor), Landlord’s property manager, Landlord’s Mortgagee (if any), and their respective members, principals, beneficiaries, partners, officers, directors, employees, and agents, and other designees of Landlord as the interest of such designees shall appear, as “additional insureds” and shall be primary with Landlord’s policy being secondary and noncontributory.  If any aggregate limit is reduced because of losses paid to below 75% of the limit required by this Lease, Tenant will notify Landlord in writing within 10 days of the date of reduction.  All policies of Tenant’s Insurance shall contain endorsements that the insurer(s) shall give Landlord and its designees at least 30 days’ advance written notice of any change, cancellation, termination or lapse of insurance.  Tenant shall provide Landlord with a certificate of insurance and all required endorsements evidencing Tenant’s Insurance prior to the earlier to occur of the Commencement Date or the date Tenant is provided access to the Premises for any reason, and upon renewals at least 10 days prior to the expiration of the insurance coverage.  All of Tenant’s Insurance policies, endorsements and certificates will be on forms and with deductibles and self-insured retention, if any, reasonably acceptable to Landlord.  The limits of Tenant’s insurance shall not limit Tenant’s liability under this Lease.

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B.            Landlord’s Insurance .  Landlord shall maintain: (1) commercial general liability insurance applicable to the Property which provides, on an occurrence basis, a minimum combined single limit of no less than $5,000,000 (coverage in excess of $1,000,000 may be provided by way of an umbrella/excess liability policy); and (2) causes of loss-special form (formerly “all risk”) property insurance on the Building in the amount of the replacement cost thereof, as reasonably estimated by Landlord.  The foregoing insurance and any other insurance carried by Landlord may be effected by a policy or policies of blanket insurance and shall be for the sole benefit of Landlord and under Landlord’s sole control.  Consequently, Tenant shall have no right or claim to any proceeds thereof or any other rights thereunder.

15.            Mutual Waiver of Subrogation . Notwithstanding anything in this Lease to the contrary, Tenant waives, and shall cause its insurance carrier(s) and any other party claiming through or under such carrier(s), by way of subrogation or otherwise, to waive any and all rights of recovery, Claim, action or causes of action against all Landlord Parties for any loss or damage to Tenant’s business, any loss of use of the Premises, and any loss, theft or damage to Tenant’s Property (including Tenant’s automobiles or the contents thereof), including all rights (by way of subrogation or otherwise) of recovery , Claims, actions or causes of action arising out of the negligence of any Landlord Party , which loss or damage is (or would have been, had the insurance required by this Lease been maintained) covered by insurance.  In addition, Landlord waives (except to the extent of Landlord’s property insurance deductible) and shall cause its insurance carrier(s) and any other party claiming through or under such carrier(s), by way of subrogation or otherwise, to waive any and all rights of recovery, Claim, action or causes of action against all Tenant Parties for any loss of or damage to or loss of use of the Building, any additions or improvements to the Building, or any contents thereof, including all rights (by way of subrogation or otherwise) of recovery , Claims, actions or causes of action arising out of the negligence of any Tenant Party , which loss or damage is (or would have been, had the insurance required by this Lease been maintained) covered by insurance.

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16.            Casualty Damage .

A.            Repair or Termination by Landlord .  If all or any part of the Premises are damaged by fire or other casualty, Tenant shall immediately notify Landlord in writing.  Landlord shall have the right to terminate this Lease if: (1) the Building shall be damaged so that, in Landlord’s judgment, substantial alteration or reconstruction of the Building shall be required (whether or not the Premises have been damaged); (2) Landlord is not permitted by Law to rebuild the Building in substantially the same form as existed before the fire or casualty; (3) the Premises have been materially damaged and there is less than 2 years of the Term remaining on the date of the casualty; (4) any Mortgagee requires that the insurance proceeds be applied to the payment of the mortgage debt and Landlord does not have the right under its loan agreement to require that such proceeds be made available for the repair or reconstruction of the Building; or (5) an uninsured loss of the Building occurs notwithstanding Landlord’s compliance with Section 14.B above.  Landlord may exercise its right to terminate this Lease by notifying Tenant in writing within 90 days after the date of the casualty.  If Landlord does not terminate this Lease under this Section 16.A , Landlord shall commence and proceed with reasonable diligence to repair and restore the Building and/or the Premises to substantially the same condition as existed immediately prior to the date of damage; provided, however, that Landlord shall only be required to reconstruct building standard leasehold improvements existing in the Premises as of the date of damage, and Tenant shall be required to pay the cost for restoring any other leasehold improvements.  However, in no event shall Landlord be required to spend more than the insurance proceeds received by Landlord.

B.            Timing for Repair; Termination by Either Party .  If all or any portion of the Premises is damaged as a result of fire or other casualty, Landlord shall, with reasonable promptness, cause an architect or general contractor selected by Landlord to provide Landlord and Tenant with a written estimate of the amount of time required to substantially complete the repair and restoration of the Premises, using standard working methods (“ Completion Estimate ”).  If the Completion Estimate indicates that the Premises cannot be made tenantable within 210 days from the date of damage, then regardless of anything in Section 16.A above to the contrary, either party shall have the right to terminate this Lease by giving written notice to the other of such election within 10 days after receipt of the Completion Estimate.  Tenant, however, shall not have the right to terminate this Lease if the fire or casualty was caused by the negligence or intentional misconduct of any of the Tenant Parties.  If neither party terminates this Lease under this Section 16.B , then Landlord shall repair and restore the Premises in accordance with, and subject to the limitations of, Section 16.A .

C.            Abatement .  In the event a material portion of the Premises is damaged as a result of a fire or other casualty, the Rent shall abate for the portion of the Premises that is damaged and not usable by Tenant until substantial completion of the repairs and restoration required to be made by Landlord pursuant to Section 16.A .  Tenant, however, shall not be entitled to such abatement if the fire or other casualty was caused by the gross negligence or intentional misconduct of any of the Tenant Parties.  To the extent the fire or other casualty was caused by the ordinary negligence of a Tenant Party, Tenant shall still be entitled to the abatement of Base Rent as described above, provided that Tenant shall first pay to Landlord Landlord’s insurance deductible on its All Risk Property insurance policy.  Landlord shall not be liable for any loss or damage to Tenant’s Property or to the business of Tenant resulting in any way from the fire or other casualty or from the repair and restoration of the damage.  Landlord and Tenant hereby waive the provisions of any Law relating to the matters addressed in this Article, and agree that their respective rights for damage to or destruction of the Premises shall be those specifically provided in this Lease.
 
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17.            Condemnation . Either party may terminate this Lease if the whole or any material part of the Premises are taken or condemned for any public or quasi-public use under Law, by eminent domain or private purchase in lieu thereof (a “ Taking ”).  Landlord shall also have the right to terminate this Lease if there is a Taking of any portion of the Building or Property which would leave the remainder of the Building unsuitable for use as an office building in a manner comparable to the Building’s use prior to the Taking.  In order to exercise its right to terminate this Lease under this Article 17 , Landlord or Tenant, as the case may be, must provide written notice of termination to the other within 45 days after the terminating party first receives notice of the Taking.  Any such termination shall be effective as of the date the physical taking of the Premises or the portion of the Building or Property occurs.  If this Lease is not terminated, the Rentable Square Footage of the Building, the Rentable Square Footage of the Premises and Tenant’s Pro Rata Share shall, if applicable, be appropriately adjusted by Landlord.  In addition, Base Rent for any portion of the Premises taken or condemned shall be abated during the unexpired Term effective when the physical taking of the portion of the Premises occurs.  All compensation awarded for a Taking, or sale proceeds, shall be the property of Landlord, any right to receive compensation or proceeds being expressly waived by Tenant.  However, Tenant may file a separate claim at its sole cost and expense for Tenant’s Property (excluding above building standard leasehold improvements) and Tenant’s reasonable relocation expenses, provided the filing of such claim does not diminish the award which would otherwise be receivable by Landlord.

18.            Events of Default . Tenant shall be considered to be in default under this Lease upon the occurrence of any of the following events of default:

A.            Tenant’s failure to pay when due all or any portion of the Rent (“ Monetary Default ”); provided that the first such failure during any consecutive 12 month period shall not be a Monetary Default if Tenant pays the amount due within 5 days after written notice from Landlord.

B.            Tenant’s failure to perform any of the obligations of Tenant in the manner set forth in Articles 14, 23, 24 or 25 (a “ Time Sensitive Default ”).

C.            Tenant’s failure (other than a Monetary Default or a Time Sensitive Default) to comply with any term, provision or covenant of this Lease, if the failure is not cured within 30 days after written notice to Tenant.  However, if Tenant’s failure to comply cannot reasonably be cured within 30 days, Tenant shall be allowed additional time (not to exceed an additional 30 days) as is reasonably necessary to cure the failure so long as: (1) Tenant commences to cure the failure within the 10 day period following Landlord’s initial written notice, and (2) Tenant diligently pursues a course of action that will cure the failure and bring Tenant back into compliance with this Lease.  However, if Tenant’s failure to comply creates a hazardous condition, the failure must be cured immediately upon notice to Tenant.  In addition, if Landlord provides Tenant with notice of Tenant’s failure to comply with the same specific term, provision or covenant of this Lease on more than two (2) occasions during any 12 month period, Tenant’s subsequent violation of the same provision or covenant shall, at Landlord’s option, be deemed an incurable event of default by Tenant.

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D.            Tenant or any Guarantor becomes insolvent, files a petition for protection under the U.S. Bankruptcy Code (or similar Law) or a petition is filed against Tenant or any Guarantor under such Laws and is not dismissed within 45 days after the date of such filing, makes a transfer in fraud of creditors or makes an assignment for the benefit of creditors, or admits in writing its inability to pay its debts when due.

E.            The leasehold estate is taken by process or operation of Law.

F.            In the case of any ground floor or retail tenant, or any other tenant whose space is visible from the Common Areas or elevator lobby areas of the Building, Tenant does not take possession of, or abandons or vacates all or a substantial portion of the Premises; provided, however that so long as Tenant keeps the Premises neat and orderly (including, without limitation, keeping the Premises free of trash and boxes and the window coverings closed so that the vacant space is not visible), it shall not be an event of default if Tenant abandons or vacates all or a substantial portion of the Premises.

G.            Tenant is in default beyond any notice and cure period under any other lease or agreement with Landlord, including any lease or agreement for parking.

19.
Remedies .

A.            Landlord’s Remedies .  Upon any default, Landlord shall have the right without notice or demand (except as provided in Article 18 ) to pursue any of its rights and remedies at Law or in equity, including any one or more of the following remedies:

(1)
Terminate this Lease;

(2)            Re-enter the Premises, change locks, alter security devices and lock out Tenant or terminate Tenant’s right of possession of the Premises without terminating this Lease, and without complying with applicable Law, the benefits of which are waived by Tenant to the fullest extent permitted by applicable Law; provided, however, Landlord shall provide Tenant access to the Premises for the removal of Tenant’s client files, provided an agent of Landlord accompanies Tenant at all times during such access and confirms that no property of Tenant, other than such client files, is removed from the Premises;

(3)            Remove and store, at Tenant’s expense, all the property in the Premises using such lawful force as may be necessary;

(4)            Cure such event of default for Tenant at Tenant’s expense (plus a 15% administrative fee);

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(5)            Withhold or suspend payment of sums Landlord would otherwise be obligated to pay to Tenant under this Lease or any other agreement;

(6)            Require all future payments to be made by cashier’s check, money order or wire transfer after the first time any check is returned for insufficient funds, or the second time any sum due hereunder is more than five (5) days late; provided, however, if Tenant timely pays all Rent payments for a period of 12 consecutive months after any check is returned for insufficient funds, Tenant shall once again be entitled to make Rent payments by check until any check is returned for insufficient funds;

(7)            Apply any Security Deposit as permitted under this Lease; and/or

(8)            Recover such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time by applicable Law, including any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its obligations under this Lease or which in the ordinary course of events would be likely to result therefrom.

B.
Measure of Damages .

(1)            Calculation .  If Landlord either terminates this Lease or terminates Tenant’s right to possession of the Premises, Tenant shall immediately surrender and vacate the Premises and pay Landlord on demand: (a) all Rent accrued through the end of the month in which the termination becomes effective; (b) interest on all unpaid Rent from the date due at a rate equal to the lesser of 18% per annum or the highest interest rate permitted by applicable Law; (c) all expenses reasonably incurred by Landlord in enforcing its rights and remedies under this Lease, including all reasonable legal expenses; (d) Costs of Reletting (defined below); and (e) all Landlord’s Rental Damages (defined below).  In the event that Landlord relets the Premises for an amount greater than the Rent due during the Term, Tenant shall not receive a credit for any such excess.

(2)            Definitions .  “ Costs of Reletting ” shall include commercially reasonable costs, losses and expenses incurred by Landlord in reletting all or any portion of the Premises including, without limitation, the cost of removing and storing Tenant’s furniture, trade fixtures, equipment, inventory or other property, repairing and/or demolishing the Premises, removing and/or replacing Tenant’s signage and other fixtures, making the Premises ready for a new tenant, including the cost of advertising, commissions, architectural fees, legal fees and leasehold improvements, and any allowances and/or concessions provided by Landlord.  “ Landlord’s Rental Damages ” shall mean the total Rent which Landlord would have received under this Lease (had Tenant made all such Lease payments as required) for the remainder of the Term minus the amount of such rental loss that Tenant proves would be reasonably avoided pursuant to Section 19.D. below, or, if the Premises are relet, the actual rental value (not to exceed the Rent due during the Term), both discounted to present value at the Prime Rate (defined below) in effect upon the date of determination For purposes hereof, the “ Prime Rate ” shall be the per annum interest rate publicly announced by a federally insured bank selected by Landlord in the state in which the Building is located as such bank’s prime or base rate.

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(3)            Landlord’s Alternative Calculation Because future market rental rates, and the costs or time involved in reletting may be uncertain and difficult to determine at the time of Tenant’s default, the parties agree that Landlord may in its sole discretion elect to recover, in lieu of calculating damages under Section 19.B(1)(d) and (e) above (but without limiting damages under Section 19.B(1)(a) and (b)  above), the sum of (a) the unamortized portion of all costs, losses and expenses incurred by Landlord as a result of entering into the Lease, and (b) twenty five percent (25%) of the total nominal Rent which Landlord would have received under this Lease (had Tenant made all such Rent payments as required) for the remainder of the Term, which the parties agree is a fair and reasonable estimate of Landlord’s Rental Damages and the Costs of Reletting.

C.            Tenant Not Relieved from Liabilities Unless expressly provided in this Lease, the repossession or re-entering of all or any part of the Premises shall not relieve Tenant of its liabilities and obligations under this Lease In addition, Tenant shall not be relieved of its liabilities under this Lease, nor be entitled to any damages hereunder, based upon minor or immaterial errors in the exercise of Landlord’s remedies No right or remedy of Landlord shall be exclusive of any other right or remedy Each right and remedy shall be cumulative and in addition to any other right and remedy now or subsequently available to Landlord at Law or in equity If Tenant fails to pay any amount when due hereunder (after the expiration of any applicable cure period), Landlord shall be entitled to receive interest on any unpaid item of Rent from the date initially due (without regard to any applicable grace period) at a rate equal to the lesser of 18% per annum or the highest rate permitted by Law In addition, if Tenant fails to pay any item or installment of Rent when due (after the expiration of any applicable cure period), Tenant shall pay Landlord an administrative fee equal to 5% of the past due Rent However, in no event shall the charges permitted under this Section 19.C or elsewhere in this Lease, to the extent they are considered interest under applicable Law, exceed the maximum lawful rate of interest If any payment by Tenant of an amount deemed to be interest results in Tenant having paid any interest in excess of that permitted by Law, then it is the express intent of Landlord and Tenant that all such excess amounts theretofore collected by Landlord be credited against the other amounts owing by Tenant under this Lease Receipt by Landlord of Tenant’s keys to the Premises shall not constitute an acceptance or surrender of the Premises Notwithstanding any other provision of this Lease to the contrary, Tenant shall hold Landlord Parties harmless from and indemnify and defend such parties against, all Claims that arise out of or in connection with a breach of this Lease, specifically including any violation of applicable Laws or Contamination (defined in article 30) caused by a Tenant Party.

D.            Mitigation of Damages Upon termination of Tenant’s right to possess the Premises, Landlord shall, only to the extent required by Law, use objectively reasonable efforts to mitigate damages by reletting the Premises Landlord shall not be deemed to have failed to do so if Landlord refuses to lease the Premises to a prospective new tenant with respect to whom Landlord would be entitled to withhold its consent pursuant to Section 11.A , or who (1) is an Affiliate, parent or subsidiary of Tenant; (2) is not acceptable to any Mortgagee of Landlord; (3) requires improvements to the Premises to be made at Landlord’s expense; or (4) is unwilling to accept lease terms then proposed by Landlord, including: (a) leasing for a shorter or longer term than remains under this Lease; (b) re-configuring or combining the Premises with other space, (c) taking all or only a part of the Premises; and/or (d) changing the use of the Premises Notwithstanding Landlord’s duty to mitigate its damages as provided herein, Landlord shall not be obligated (i) to give any priority to reletting Tenant’s space in connection with its leasing of space in the Building or any complex of which the Building is a part, or (ii) to accept below market rental rates for the Premises or any rate that would negatively impact the market rates for the Building To the extent that Landlord is required by applicable Law to mitigate damages, Tenant must plead and prove by clear and convincing evidence that Landlord failed to so mitigate in accordance with the provisions of this Section 19.D , and that such failure resulted in an avoidable and quantifiable detriment to Tenant.
 
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20.             Limitation of Liability . Notwithstanding anything to the contrary contained in this Lease, the liability of Landlord (and of any successor Landlord) to Tenant (or any person or entity claiming by, through or under Tenant) shall be limited to the interest of Landlord in the Property Tenant shall look solely to Landlord’s interest in the Property for the recovery of any judgment or award against Landlord No Landlord Party shall be personally liable for any judgment or deficiency Before filing suit for an alleged default by Landlord, Tenant shall give Landlord and the Mortgagee(s) (defined in Article 25 ) whom Tenant has been notified hold Mortgages (defined in Article 25 ) on the Property, Building or Premises, notice and reasonable time to cure the alleged default Tenant hereby waives all claims against all Landlord Parties for consequential, special or punitive damages allegedly suffered by any Tenant Parties, including lost profits and business interruption.

21.             No Waiver . Neither party’s failure to declare a default immediately upon its occurrence or delay in taking action for a default shall constitute a waiver of the default, nor shall it constitute an estoppel Neither party’s failure to enforce its rights for a default shall constitute a waiver of that party’s rights regarding any subsequent default.

22.             Tenant’s Right to Possession . Provided Tenant pays the Rent and fully performs all of its other covenants and agreements under this Lease, Tenant shall have the right to occupy the Premises without hindrance from Landlord or any person lawfully claiming through Landlord, subject to the terms of this Lease, all Mortgages, insurance requirements and applicable Law This covenant and all other covenants of Landlord shall be binding upon Landlord and its successors only during its or their respective periods of ownership of the Building, and shall not be a personal covenant of any Landlord Parties.

23.             Relocation . Landlord may, upon not less than 90 days’ notice to Tenant, relocate the Premises to any other premises within the Hughes Center (“ Relocated Premises ”) on a date of relocation (the “ Relocation Date ”) specified therein The Relocated Premises shall in all respects be substantially the same or better, as reasonably determined by Landlord, in area, finish, and appropriateness for the Permitted Use In such event, all reasonable expenses of moving Tenant and decorating the Relocated Premises with substantially the same leasehold improvements shall be at the expense of Landlord, including the physical move, relocating Tenant’s existing telephone equipment and other costs set forth below All moving costs (including the cost to relocate phones, computers and other systems of similar nature), all costs of reprinting stationery, cards and other printed material bearing Tenant’s address at the Premises if such address changes due to the relocation (but only the quantity existing immediately prior to the relocation) and all other out-of-pocket costs directly incurred by Tenant in connection with relocation to the Relocated Premises, including reasonable decorating and design costs, shall be paid by Landlord within thirty (30) days after receipt of third-party invoices therefor Tenant shall have the option, effective as of the Relocation Date, either to enter into an appropriate lease amendment relocating the Premises, or to terminate this Lease, which option shall be exercised within fifteen (15) Business Days following receipt of Landlord’s relocation notice Failure of Tenant to choose either option within such period shall constitute Tenant’s election to relocate If Tenant elects (or is deemed to have elected) to relocate, Landlord shall have the option to tender the Relocated Premises to Tenant on any date within a 30 day period prior to or after the Relocation Date, in which event the date of tender of possession of the Relocated Premises shall become the Relocation Date From the Relocation Date through the Expiration Date, the aggregate Base Rent for the Relocated Premises shall be the same as for the original Premises Tenant’s failure to vacate the Premises and move into the Relocated Premises on the Relocation Date shall constitute a Time Sensitive Default Notwithstanding the foregoing, Landlord shall not relocate the Premises during the first twenty-four (24) months of the initial Lease Term.

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24.            Holding Over . Except for any permitted occupancy by Tenant under Article 29 , if Tenant or any party claiming by, through or under Tenant fails to surrender the Premises at the expiration or earlier termination of this Lease, the continued occupancy of the Premises shall be that of a tenancy at sufferance Tenant shall pay an amount (on a per month basis without reduction for partial months during the holdover) equal to (A) with respect to the first thirty (30) days of any holding over, 150% of the sum of the Base Rent and Tenant’s Pro Rata Share of Excess Operating Expenses due for the period immediately preceding the holdover, (B) with respect to the second thirty (30) days of any holding over, 175% of the sum of the Base Rent and Tenant’s Pro Rata Share of Excess Operating Expenses due for the period immediately preceding the holdover, (C) with respect to any holding over after the second thirty (30) days, 200% of the greater of: (i) the sum of the Base Rent and Tenant’s Pro Rata Share of Excess Operating Expenses due for the period immediately preceding the holdover; or (ii) the fair market gross rental for the Premises Tenant shall otherwise continue to be subject to all of Tenant’s obligations under this Lease No holdover by Tenant or payment by Tenant after the expiration or early termination of this Lease shall be construed to extend the Term or prevent Landlord from immediate recovery of possession of the Premises by summary proceedings or otherwise In addition to the payment of the amounts provided above, if Landlord is unable to deliver possession of the Premises to a new tenant, or to perform improvements for a new tenant, as a result of Tenant’s holdover and Tenant fails to vacate the Premises within 15 days after Landlord notifies Tenant of Landlord’s inability to deliver possession, or perform improvements, such failure shall constitute a Time Sensitive Default hereunder; and notwithstanding any other provision of this Lease to the contrary, Tenant shall be liable to Landlord for, and shall protect Landlord from and indemnify and defend Landlord against, all losses and damages, including any claims made by any succeeding tenant resulting from such failure to vacate, and any consequential damages that Landlord suffers from the holdover .

25.             Subordination to Mortgages; Estoppel Certificate . Tenant accepts this Lease subject and subordinate to any mortgage(s), deed(s) of trust, ground lease(s) or other lien(s) now or subsequently affecting the Premises, the Building or the Property, and to renewals, modifications, refinancings and extensions thereof (collectively, a “ Mortgage ”) The party having the benefit of a Mortgage shall be referred to as a “ Mortgagee .” This clause shall be self-operative, but upon request from a Mortgagee, Tenant shall execute a commercially reasonable subordination agreement in favor of the Mortgagee In lieu of having the Mortgage be superior to this Lease, a Mortgagee shall have the right at any time to subordinate its Mortgage to this Lease If requested by a successor-in-interest to all or a part of Landlord’s interest in this Lease, Tenant shall, without charge, attorn to the successor-in-interest Tenant shall, within 5 days after receipt of a written request from Landlord, execute and deliver an estoppel certificate to those parties as are reasonably requested by Landlord (including a Mortgagee or prospective purchaser) The estoppel certificate shall include a statement certifying that this Lease is unmodified (except as identified in the estoppel certificate) and in full force and effect, describing the dates to which Rent and other charges have been paid, representing that, to the best of Tenant’s knowledge, there is no current, uncured default (or stating with specificity the nature of the alleged default) and certifying other matters with respect to this Lease that may reasonably be requested Tenant’s failure to provide any estoppel certificate within the 5 day period specified above, and the continuation of such failure for a period of 5 days after Landlord delivers a second written notice requesting same, shall constitute a Time Sensitive Default under this Lease Landlord shall use reasonable efforts, at Tenant’s costs, to obtain Landlord’s Mortgagee’s then-current form of nondisturbance agreement for the benefit of Tenant.
 
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26.            Attorneys’ Fees . If either party institutes a suit against the other for violation of or to enforce any covenant or condition of this Lease, or if either party intervenes in any suit in which the other is a party to enforce or protect its interest or rights, the prevailing party shall be entitled to all of its costs and expenses, including reasonable attorneys’ fees.

27.             Notice . If a demand, request, approval, consent or notice (collectively, a “ notice ”) shall or may be given to either party by the other, the notice shall be in writing and delivered by hand or sent by registered or certified mail with return receipt requested, or sent by overnight or same day courier service, at the party’s respective Notice Address(es) set forth in Article 1 , except that if Tenant has vacated the Premises (or if the Notice Address for Tenant is other than the Premises, and Tenant has vacated such address) without providing Landlord a new Notice Address, Landlord may serve notice in any manner described in this Article or in any other manner permitted by Law Each notice shall be deemed to have been received or given on the earlier to occur of actual delivery or the date on which delivery is first refused, or, if Tenant has vacated the Premises or the other Notice Address of Tenant without providing a new Notice Address, three (3) days after notice is deposited in the U.S. mail or with a courier service in the manner described above Either party may, at any time, change its Notice Address by giving the other party written notice of the new address in the manner described in this Article.

28.            Reserved Rights . This Lease does not grant any rights to light or air over or about the Building Landlord excepts and reserves exclusively to itself the use of: (A) roofs, (B) telephone, electrical and janitorial closets, (C) equipment rooms, Building risers or similar areas that are used by Landlord for the provision of Building services, (D) rights to the land and improvements below the floor of the Premises, (E) the improvements and air rights above the Premises, (F) the improvements and air rights outside the demising walls of the Premises, (G) the areas within the Premises used for the installation of utility lines and other installations serving occupants of the Building, and (H) any other areas designated from time to time by Landlord as service areas of the Building Tenant shall not have the right to install or operate any equipment producing radio frequencies, electrical or electromagnetic output or other signals, noise or emissions in or from the Building without the prior written consent of Landlord To the extent permitted by applicable Law, Landlord reserves the right to restrict and control the use of such equipment Landlord has the right to change the Building’s name or address Landlord also has the right to make such other changes to the Property and Building as Landlord deems appropriate, provided the changes do not materially affect Tenant’s ability to use the Premises for the Permitted Use Landlord shall also have the right (but not the obligation) to temporarily close the Building if Landlord reasonably determines that there is an imminent danger of significant damage to the Building or of personal injury to Landlord’s employees or the occupants of the Building The circumstances under which Landlord may temporarily close the Building shall include, without limitation, electrical interruptions, hurricanes and civil disturbances A closure of the Building under such circumstances shall not constitute a constructive eviction nor entitle Tenant to an abatement or reduction of Rent.

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29.            Surrender of Premises . All improvements to the Premises (collectively, “ Leasehold Improvements ”) shall be owned by Landlord and shall remain upon the Premises without compensation to Tenant At the expiration or earlier termination of this Lease or Tenant’s right of possession, Tenant shall remove Tenant’s Removable Property (defined below) from the Premises, and quit and surrender the Premises to Landlord, broom clean, and in good order, condition and repair, ordinary wear and tear, casualties and repairs that are not Tenant’s responsibility hereunder, excepted As used herein, the term “ Tenant’s Removable Property ” shall mean: (A) Cable installed by Tenant and located in the Premises or other portions of the Building; (B) any Leasehold Improvements that are installed by Tenant and, in Landlord’s reasonable judgment, are of a nature that would require removal and repair costs that are materially in excess of the removal and repair costs associated with standard office improvements (“ Special Installations ”); and (C) Tenant’s personal property Notwithstanding any provisions contained in this Lease to the contrary, Landlord shall have the right to require Tenant to remove, at Tenant’s expense, upon the expiration or earlier termination of the Term, any Special Installations made or installed by Tenant or at Tenant’s expense in the Premises if, and only if, Landlord notifies Tenant to such effect in writing at the time of Landlord’s approval of the installation of such Special Installations Notwithstanding the foregoing, Landlord may, in Landlord’s sole discretion and at no cost to Landlord, require Tenant to leave any of its Special Installations in the Premises If Tenant fails to remove any of Tenant’s Removable Property (other than Special Installations which Landlord has designated to remain in the Premises) within 2 days after the termination of this Lease or of Tenant’s right to possession, Landlord, at Tenant’s sole cost and expense, shall be entitled (but not obligated) to remove and store Tenant’s Removable Property Landlord shall not be responsible for the value, preservation or safekeeping of Tenant’s Removable Property Tenant shall pay Landlord, upon demand, the expenses and storage charges incurred for Tenant’s Removable Property To the fullest extent permitted by applicable Law, any unused portion of Tenant’s Security Deposit may be applied to offset Landlord’s costs set forth in the preceding sentence In addition, if Tenant fails to remove Tenant’s Removable Property from the Premises or storage, as the case may be, within 30 days after written notice, Landlord may deem all or any part of Tenant’s Removable Property to be abandoned, and title to Tenant’s Removable Property (except with respect to any Hazardous Material [defined in Article 30 ]) shall be deemed to be immediately vested in Landlord Except for Special Installations designated by Landlord to remain in the Premises, Tenant’s Removable Property shall be removed by Tenant before the Expiration Date; provided that upon Landlord’s prior written consent (which must be requested by Tenant at least 30 days in advance of the Expiration Date and which shall not be unreasonably withheld), Tenant may remain in the Premises for up to 5 days after the Expiration Date for the sole purpose of removing Tenant’s Removable Property Tenant’s possession of the Premises for such purpose shall be subject to all of the terms and conditions of this Lease, including the obligation to pay Base Rent and Tenant’s Pro Rata Share of Excess Operating Expenses on a per diem basis at the rate in effect for the last month of the Term In the event this Lease is terminated prior to the Expiration Date, Tenant’s Removable Property (except for Special Installations designated by Landlord to remain in the Premises) shall be removed by Tenant on or before such earlier date of termination Tenant shall repair damage caused by the installation or removal of Tenant’s Removable Property.

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30.            Hazardous Materials .

A.            Restrictions No Hazardous Material (defined below) (except for de minimis quantities of household cleaning products and office supplies used in the ordinary course of Tenant’s business at the Premises and that are used, kept and disposed of in compliance with Laws) shall be brought upon, used, kept or disposed of in or about the Premises or the Property by any Tenant Parties or any of Tenant’s transferees, contractors or licensees without Landlord’s prior written consent, which consent may be withheld in Landlord’s sole and absolute discretion Tenant’s request for such consent shall include a representation and warranty by Tenant that the Hazardous Material in question (1) is necessary in the ordinary course of Tenant’s business, and (2) shall be used, kept and disposed of in compliance with all Laws.

B.            Remediation Tenant shall have the ongoing obligation to visually inspect the Premises for the presence of Hazardous Materials or conditions which may reasonably give rise to Contamination (defined below) and promptly notify Landlord if it suspects Contamination in the Premises Any remediation of Contamination caused by a Tenant Party or its contractors or invitees which is required by Law or which is deemed necessary by Landlord, in Landlord’s opinion, shall be performed by Landlord and Tenant shall reimburse Landlord for the cost thereof, plus a 15% administrative fee Landlord shall indemnify Tenant against all Claims that arise out of Contamination caused by Landlord.

C.            Definitions For purposes of this Article 30 , a “ Hazardous Material ” is any substance the presence of which requires, or may hereafter require, notification, investigation or remediation under any Laws or which is now or hereafter defined, listed or regulated by any governmental authority as a “hazardous waste”, “extremely hazardous waste”, “solid waste”, “toxic substance”, “hazardous substance”, “hazardous material” or “regulated substance”, or otherwise regulated under any Laws Contamination ” means the existence or any release or disposal of a Hazardous Material or biological or organic contaminant, including any such contaminant which could adversely impact air quality, such as mold, fungi or other bacterial agents, in, on, under, at or from the Premises, the Building or the Property which may result in any liability, fine, use restriction, cost recovery lien, remediation requirement, or other government or private party action or imposition affecting any Landlord Party For purposes of this Lease, claims arising from Contamination shall include diminution in value, restrictions on use, adverse impact on leasing space, and all costs of site investigation, remediation, removal and restoration work, including response costs under CERCLA and similar statutes Landlord represents that, to Landlord’s current and actual knowledge, it has received no written notice of any violation in the Property of any Laws regulating Hazardous Materials.

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D.            Reports, Surveys and Acceptance of Premises All current surveys or reports prepared for the Property regarding the presence of Hazardous Materials (if any) in the Building are available for inspection by Tenant in the office of the Property manager With respect to Hazardous Materials, Tenant hereby (1) accepts full responsibility for reviewing any such surveys and reports and satisfying itself prior to the execution of this Lease as to the acceptability of the Premises under Section 3.B above, and (2) acknowledges and agrees that this provision satisfies all notice requirements under applicable Law In the event Tenant performs or causes to be performed any test on or within the Premises for the purpose of determining the presence of a Hazardous Material, Tenant shall obtain Landlord’s prior written consent and use a vendor approved by Landlord for such testing In addition, Tenant shall provide to Landlord a copy of such test within 10 days of Tenant’s receipt.

31.            Building Directory . Tenant shall be provided with one (1) name on the electronic directory board located in the main lobby of the Building at Landlord’s cost and expense In addition, Landlord shall provide one (1) sign for Tenant’s name at Tenant’s suite at Tenant’s sole cost and expense in accordance with the Building’s suite signage criteria.

32.
Miscellaneous .

A.            Governing Law; Jurisdiction and Venue; Severability; Paragraph Headings This Lease and the rights and obligations of the parties shall be interpreted, construed and enforced in accordance with the Laws of the state in which the Property is located All obligations under this Lease are performable in the county or other jurisdiction where the Property is located, which shall be venue for all legal actions If any term or provision of this Lease shall be invalid or unenforceable, then such term or provision shall be automatically reformed to the extent necessary to render such term or provision enforceable, without the necessity of execution of any amendment or new document The remainder of this Lease shall not be affected, and each remaining and reformed provision of this Lease shall be valid and enforced to the fullest extent permitted by Law The headings and titles to the Articles and Sections of this Lease are for convenience only and shall have no effect on the interpretation of any part of this Lease The words “include”, “including” and similar words will not be construed restrictively to limit or exclude other items not listed.

B.            Recording Tenant shall not record this Lease or any memorandum without Landlord’s prior written consent.

C.            Force Majeure Whenever a period of time is prescribed for the taking of an action by Landlord or Tenant, the period of time for the performance of such action shall be extended by the number of days that the performance is actually delayed due to strikes, acts of God, shortages of labor or materials, war, terrorist attacks (including bio-chemical attacks), civil disturbances and other causes beyond the reasonable control of the performing party (“ Force Majeure ”) However, events of Force Majeure shall not extend any period of time for the payment of Rent or other sums payable by either party or any period of time for the written exercise of an option or right by either party.

D.            Transferability; Release of Landlord Landlord shall have the right to transfer and assign, in whole or in part, all of its rights and obligations under this Lease and in the Building and/or Property, and upon such transfer Landlord shall be released from any further obligations hereunder, and Tenant agrees to look solely to the successor in interest of Landlord for the performance of such obligations.

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E.             Brokers Tenant represents that it has dealt directly with and only with Colliers International, Taber Thill, representing Tenant, and Colliers International, representing Landlord (whose commissions shall be paid by Landlord pursuant to a separate written agreement) in connection with this Lease Tenant and Landlord shall each indemnify the other against all costs, expenses, attorneys’ fees, liens and other liability for commissions or other compensation claimed by any broker or agent claiming the same by, through or under the indemnifying party, other than the broker(s) specifically identified above .

F.             Authority; Joint and Several Liability Landlord covenants, warrants and represents that each individual executing, attesting and/or delivering this Lease on behalf of Landlord is authorized to do so on behalf of Landlord, this Lease is binding upon and enforceable against Landlord, and Landlord is duly organized and legally existing in the state of its organization and is qualified to do business in the state in which the Premises are located Similarly, Tenant covenants, warrants and represents that each individual executing, attesting and/or delivering this Lease on behalf of Tenant is authorized to do so on behalf of Tenant, this Lease is binding upon and enforceable against Tenant; and Tenant is duly organized and legally existing in the state of its organization and is qualified to do business in the state in which the Premises are located If there is more than one Tenant, or if Tenant is comprised of more than one party or entity, the obligations imposed upon Tenant shall be joint and several obligations of all the parties and entities Notices, payments and agreements given or made by, with or to any one person or entity shall be deemed to have been given or made by, with and to all of them.

G.            Time is of the Essence; Relationship; Successors and Assigns Time is of the essence with respect to Tenant’s performance of its obligations and the exercise of any expansion, renewal or extension rights or other options granted to Tenant This Lease shall create only the relationship of landlord and tenant between the parties, and not a partnership, joint venture or any other relationship This Lease and the covenants and conditions in this Lease shall inure only to the benefit of and be binding only upon Landlord and Tenant and their permitted successors and assigns.

H.            Survival of Obligations The expiration of the Term, whether by lapse of time or otherwise, shall not relieve either party of any obligations which accrued prior to or which may continue to accrue after the expiration or early termination of this Lease Without limiting the scope of the prior sentence, it is agreed that Tenant’s obligations under Sections 4.A, 4.B , and 4.C , and under Articles 6, 8, 12, 13, 19, 24, 29 and 30 shall survive the expiration or early termination of this Lease.

I.              Binding Effect Landlord has delivered a copy of this Lease to Tenant for Tenant’s review only, and the delivery of it does not constitute an offer to Tenant or an option This Lease shall not be effective against any party hereto until an original copy of this Lease has been signed by such party and delivered to the other party.

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J.            Full Agreement; Amendments This Lease contains the parties’ entire agreement regarding the subject matter hereof All understandings, discussions, and agreements previously made between the parties, written or oral, are superseded by this Lease, and neither party is relying upon any warranty, statement or representation not contained in this Lease This Lease may be modified only by a written agreement signed by Landlord and Tenant The exhibits and riders attached hereto are incorporated herein and made a part of this Lease for all purposes.

K.            Tax Waiver Tenant waives all rights pursuant to all Laws to contest any taxes or other levies or protest appraised values or receive notice of reappraisal regarding the Property (including Landlord’s personalty), irrespective of whether Landlord contests same.

L.            Prohibited Persons and Transactions Tenant represents to Landlord: (i) that neither Tenant nor any person or entity that directly owns a 10% or greater equity interest in it, nor any of its officers, directors or managing members, is a person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control (“ OFAC ”) of the Department of the Treasury (including those named on OFAC’s Specially Designated and Blocked Persons List) or under Executive Order 13224 (the “ Executive Order ”) signed on September 24, 2001, and entitled “Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism”, or other Laws (each such person, a “ Prohibited Person ”), (ii) that Tenant’s activities do not violate the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, or the regulations or orders promulgated thereunder, as they may be amended from time to time, or other anti-money laundering Laws (the “ Anti-Money Laundering Laws ”), and (iii) that throughout the Term of this Lease Tenant shall comply with the Executive Order and with the Anti-Money Laundering Laws.

M.            Approvals Whenever this Lease requires an approval, consent, determination or judgment by either Landlord or Tenant, unless another standard is expressly set forth, such approval, consent, determination or judgment shall not be unreasonably withheld or delayed.

[Signature Page on Next Page]
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Landlord and Tenant have executed this Lease as of the Effective Date specified below Landlord’s signature.

Address :
 
LANDLORD
       
3800 Howard Hughes Parkway,
 
MS CRESCENT 3993 HUGHES SPV, LLC,
a Delaware limited liability company
       
Suite 150, Las Vegas, Nevada 89169
     
Attention: Property Management
     
Phone #:
     
Fax #:
 
By:
/s/ Robert H. Boykin, Jr.
   
Name:
Robert H. Boykin, Jr.
With a copy to:
 
Title:
Managing Director Leasing

9 Greenway Plaza, Suite 3040
Houston, Texas 77046
Attention: Managing Director, Property
Management
Phone:
Fax:

And to:
777 Main Street, Suite 2100 Fort Worth, Texas 76102
Attention: Legal Dept.
Phone:
Fax:

 
Effective Date :
  May 22, 2013

 
TENANT :
       
 
RIMINI STREET, INC.,
 
a Nevada Corporation
       
 
By:
/s/ Seth Ravin
 
 
Name:
Seth Ravin
 
 
Title:
CEO
 

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RIDER NO. 1

OPTION TO EXTEND

A.             Renewal Period Tenant may, at its option, extend the Term for one renewal period of five years (the “ Renewal Period ”) by written notice to Landlord (the “ Renewal Notice ”) given no earlier than 13 nor later than 12 months prior to the expiration of the Term, provided that at the time of such notice and at the commencement of such Renewal Period, (i) Tenant remains in occupancy of the Premises, and (ii) no uncured event of default beyond applicable notice and cure periods exists under the Lease The Base Rent payable during the Renewal Period shall be the Market Rental Rate for the Premises However, in no event shall the Base Rent for the Renewal Period be less than the Base Rent during the last year of the Term Except as provided in this Rider No. 1 , all terms and conditions of the Lease shall continue to apply during the Renewal Period.

B.             Acceptance Within 30 days after receipt of the Renewal Notice, Landlord shall notify Tenant of the Base Rent for such Renewal Period (the “ Rental Notice ”) Tenant may accept the terms set forth in the Rental Notice by written notice (the “ Acceptance Notice ”) or Tenant may object to the Rental Notice by written notice to Landlord; provided that, in either case, notice must be given to Landlord within 15 days after receipt of the Rental Notice If Tenant fails to timely respond to the Rental Notice, this Option to Extend shall automatically expire and be of no further force or effect In addition, this Option to Extend shall terminate upon assignment of this Lease or subletting of all or any part of the Premises If Tenant timely delivers its Acceptance Notice, Tenant shall, within 15 days after receipt, execute a lease amendment confirming the Base Rent and other terms applicable during the Renewal Period If Tenant objects to Landlord’s Rental Notice, Tenant and Landlord shall meet to attempt to agree upon the Fair Market Rental Rate If Landlord and Tenant are unable to agree within thirty (30) days after Tenant’s objection to Landlord’s determination (the “ Outside Agreement Date ”), each party shall place in a separate sealed envelope their final proposal as to Fair Market Rental Rate and such determination shall be submitted to arbitration in accordance with Paragraphs (1) through (5) below, provided that Landlord’s determination of Fair Market Rental Rate shall not be less favorable to Tenant than that specified in Landlord’s Rental Notice (if applicable).

(1)            Landlord and Tenant shall meet with each other within five (5) business days of the Outside Agreement Date and exchange the sealed envelopes and then open such envelopes in each other’s presence If Landlord and Tenant do not mutually agree upon the Market Rental Rate within five (5) business days of the exchange and opening of envelopes, then, within ten (10) business days of such exchange Landlord and Tenant shall agree upon and jointly appoint a single arbitrator who shall be an M.A.I . real estate appraiser who shall have been active over the five (5) year period ending on the date of such appointment in the appraisal of office projects in the Las Vegas Valley Neither Landlord nor Tenant shall consult with such appraiser as to his or her opinion as to Market Rental Rate prior to the appointment The determination of the arbitrator shall be limited solely to the issue of whether Landlord’s or Tenant’s submitted Market Rental Rate for the Premises is the closer to the actual Market Rental Rate for the Premises as determined by the arbitrator, taking into account the requirements of this Article regarding the same The arbitrator may hold such hearings and require such briefs as the arbitrator, in his or her sole discretion, determines to be necessary In addition, Landlord or Tenant may submit to the arbitrator, with a copy to the other party, within five (5) business days after the appointment of the arbitrator, any market data and additional information that such party deems relevant to the determination of the Fair Market Rental Rate (“ FMRR Data ”) and the other party may submit a reply in writing within five (5) business days after receipt of such FMRR Data.

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(2)            The arbitrator shall, within thirty (30) days of his or her appointment, reach a decision as to whether the parties shall use Landlord’s or Tenant’s submitted Fair Market Rental Rate, and shall notify Landlord and Tenant thereof.

(3)            The decision of the arbitrator shall be binding upon Landlord and Tenant.

(4)            If Landlord and Tenant fail to agree upon and appoint an arbitrator, then the appointment of the arbitrator shall be made by the Chief Judge of the District Court of Clark County, Nevada, or, if he or she refuses to act, by any judge having jurisdiction over the parties.

(5)            The cost of arbitration shall be paid by Landlord and Tenant equally.

Upon the final determination of the Fair Market Rental Rate, Tenant shall, within 15 days after receipt, execute a lease amendment confirming the Base Rent and other terms applicable during the Renewal Period.

C.             Market Rental Rate The “ Market Rental Rate ” is the rate (or rates) a willing tenant would pay and a willing landlord would accept for a comparable transaction (e.g., renewal, expansion, relocation, etc., as applicable, in comparable space and in a comparable building) as of the commencement date of the applicable term, neither being under any compulsion to lease and both having reasonable knowledge of the relevant facts, considering the highest and most profitable use if offered for lease in the open market with a reasonable period of time in which to consummate a transaction In calculating the Market Rental Rate, all relevant factors will be taken into account, including the location and quality of the Building, lease term, amenities of the Property, condition of the space and any concessions and allowances commonly being offered by Landlord for comparable transactions in the Property The parties agree that the best evidence of the Market Rental Rate will be the rate then charged for comparable transactions in the Property.

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EXHIBIT A-1

OUTLINE AND LOCATION OF PREMISES


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EXHIBIT A-2

Legal Description of Property

3993 Hughes

Being a portion of Lot 1 of Hughes Center Unit No. 2, a Commercial Subdivision recorded in Book of Plats 62 page 25 as recorded in the office of the Clark County Recorder, Clark County Nevada.

A portion of that certain parcel of land described as “Remainder Parcel” as shown by map thereof on file in File 85, Page 67 of Surveys, in the Clark County Recorder’s Office, Clark County, Nevada, lying within the Southeast Quarter (SEA) of Section 16, Township 21 South, Range 61 East, M.D.M., Clark County, Nevada described as follows:

Beginning at the Southwest Corner of said “Remainder Parcel”; also being the southwest corner of said Lot 1 Thence along the West line of said “Remainder Parcel”, North 00°11’17” West 414.76 feet;

Thence North 89°48’43” East, 217.00 feet;
Thence curving to the left along the arc of a 234.50 foot radius curve, concave Northerly through a central angle of 12°26’04”, an arc length of 50.89 feet to a point of reverse curvature through which a radial line bears South 12°37’21” East;
Thence curving to the right along the arc of a 175.00 foot radius curve, concave Southwesterly, through a central angle of 71°04’32” an arc length of 217.09 feet to a point of reverse curvature through which a radial line bears North 58°27’11” East;
Thence curving to the left along the arc of a 175.00 foot radius curve, concave Northeasterly, through a central angle of 31°30’01”, an arc length of 96.21 feet;
Thence South 63°02’50” East, 49.07 feet to a point on the Westerly right-of-way line of Howard Hughes Parkway as shown on the aforementioned survey map;
Thence along said Westerly right-of-way line the following two (2) courses:
From a tangent bearing South 26°57’10” West, curving to the right along the arc of a 860.00 foot radius curve, concave Northwesterly (the radius point of which bears North 63°02’50” West), through a central angle of 15°05’27”, an arc length of 226.51 feet;
Thence South 42°02’37” West, 51.85 feet to the Southeast Corner of said “Remainder Parcel”;
Thence along the South line of said “Remainder Parcel”:
From a tangent bearing North 82°48’56” West, curving to the left along the arc of a 1016.00 foot radius curve, concave Southerly (the radius point of which bears South 07°11’04” West), through a central angle of 23°01’33” an arc length of 408.31 feet to the Point of Beginning to which a radial line bears North 15°50’29” West.

Said land is also shown as Survey Area “A” on that certain Record of Survey filed in File 124 of Surveys, page 27.

Parcel Seventeen (17A):

Together with a non-exclusive easement for ingress, egress as set forth in the document recorded August 20, 2002 in Book 20020820, as Document No. 00104, of Official Records.

APN: 162-16-812-003

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EXHIBIT B

RULES AND REGULATIONS

1.            Tenant, or its officers, agents, employees, contractors or vendors, shall not obstruct sidewalks, doorways, vestibules, halls, corridors, stairways, lobbies and other common areas (the “Public Areas”) with refuse, furniture, boxes, or other items The Public Areas shall not be used for any purpose other than ingress and egress to and from the Premises, or for going from one part of the Building to another part of the Building Tenant’s doors to the Premises shall not be blocked open and shall remain closed at all times unless first approved in writing by Landlord in its sole discretion.

2.            Plumbing, fixtures and appliances shall be used only for the purposes for which constructed and no unsuitable material shall be placed therein.

3.            No signs, directories, posters, advertisements, or notices shall be painted on or affixed to any portion of the Building or Premises or other parts of the Building including within Tenant’s Premises, which are visible from any Public Areas or the Building exterior, except in such color, size, and style, and in such places, as shall be first approved in writing by Landlord at its sole discretion The Premises shall be identified by a standard suite sign, which Landlord shall order at Tenant’s expense Landlord shall have the right to remove all unapproved signs without notice to Tenant, at Tenant’s expense.

4.            Tenant shall not do, or permit anything to be done in or about the Building, or bring or keep anything therein, that will in any way increase the possibility of fire or other hazard or increase rate of fire or other insurance on the Building Tenant shall not use or keep in the Building any inflammable or explosive fluid or substance or any illuminating materials No space heaters or portable fans shall be operated in the Building Tenant must submit to Landlord a certificate of Fire Retardancy for any fresh evergreens (i.e. Christmas tree, wreaths) to be brought onto the Premises.

5.            Tenant shall notify Landlord when safes or other heavy equipment are to be taken in or out of the Building, and such moving shall only be done after written permission is obtained from Landlord on such conditions as Landlord may require at its sole discretion Landlord shall have the power to prescribe the weight and position of heavy equipment or other objects, which may overstress any portion of the Building All damage done to the Building by such heavy items will be repaired at the sole expense of the responsible Tenant.

6.            During normal business hours, Tenant may receive routine deliveries at the Premises (i.e. office supplies, bottled water, mail couriers and parcel shipments) All such deliveries must be made via the Building’s designated service access route and under no circumstances through the front lobby door Tenant’s initial move-in, move-out and all other non-routine deliveries (i.e. furnishings, large equipment) must occur after normal business hours and only after written permission is obtained from Landlord, on such conditions as Landlord may require in its sole discretion.

7.            Tenant shall cooperate with Landlord in keeping the Premises neat and clean.

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8.             Tenant shall not cause or permit any improper noises in the Building, or allow any unpleasant odors to emanate from the Premises, or otherwise interfere, injure or annoy in any way other tenants in the Building, or persons having business with them.

9.             No animals shall be brought into or kept in or about the Building, with the exception of aid animals such as Seeing Eye dogs.

10.            When conditions are such that Tenant must dispose of small shipping crates or boxes, it will be the responsibility of Tenant to break down and dispose of same in the refuse container designated by Landlord The disposal of large shipping crates or boxes (or other large objects or quantities), which in Landlord’s sole determination could overload the designated refuse container, must be accommodated through Tenant’s mover or vendor or may otherwise be prearranged through Landlord at an additional charge to Tenant’s account.

11.            No machinery of any kind, other than ordinary office machines such as typewriters, calculators, facsimile equipment and personal computer equipment shall be operated on the Premises unless first approved in writing by Landlord in its sole discretion.

12.            No bicycles, motorcycles or similar vehicles will be allowed in the Building Segways and other similar multi-purpose motorized vehicles shall not be allowed in the building unless, and only to the extent that, they are necessary to assist a bona fide medical condition and do not otherwise interfere with the operation of the Building or the use of the Building by other tenants.

13.            No nails, hooks, or screws shall be driven into or inserted in any part of the Building unless first approved in writing by Landlord in its sole discretion.

14.            After normal business hours, Landlord reserves the right to exclude from the Building any person who does not possess an authorized means of access such as a key, card key, or a prearranged written authorization and who is otherwise not an employee or guest of Tenant Tenant and its officers, agents or employees shall utilize card keys only as instructed by Landlord and in no event shall Tenant allow access to anyone, other than its officers, agents, employees, guests or vendors.

15.            Canvassing, soliciting and peddling in Public Areas, or otherwise within the Building, are strictly prohibited Unless otherwise approved by Landlord in writing, Tenant shall not use the Premises for the sale of newspapers, magazines, periodicals, theater tickets or any other goods or merchandise to other tenants in the Building or the general public Tenant shall not use the Premises for any business or activity other than that specifically provided for in Tenant’s lease Tenant shall not make door-to-door solicitation of business from other tenants in the Building.

16.            Landlord shall initially give tenant two (2) keys to the Premises Tenant shall make no duplicates of such keys Additional keys shall be obtained only from Landlord, at a fee to be determined by Landlord No additional locks shall be placed upon any doors unless first approved by Landlord in writing Upon termination of Tenant’s lease, Tenant shall surrender all keys to the Premises (and, if applicable, card keys) to Landlord and shall otherwise give Landlord the combination of all locks on the Premises.

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17.            Tenant will not locate furnishings or cabinets adjacent to mechanical or electrical access panels or over air conditioning outlets so as to prevent operating personnel from servicing such units as routine or emergency access may require Cost of moving such furnishings for Landlord’s access will be billed to Tenant The lighting and air conditioning equipment of the Building is the exclusive charge of Landlord and its employees.

18.            Tenant shall comply with all parking rules and regulations as posted and distributed by Landlord from time to time.

19.            No portion of the Building shall be used for the purpose of lodging rooms.

20.            Tenant shall not waste electricity, water or other utilities Tenant will comply with any governmental energy-saving rules, laws or regulations of which Tenant has received notice Tenant agrees to cooperate fully with Landlord to assure the effective operation of the Building’s heating and air conditioning and to refrain from adjusting thermostat controls.

21.            Tenant shall not place vending machines or dispensing machines of any kind in the Premises, unless first approved in writing by Landlord in its sole discretion.

22.            Landlord’s written approval, which shall be at Landlord’s sole discretion, must be obtained prior to changing from the standard blinds Landlord will control all blinds and internal lighting that may be visible from the exterior or Public Areas of the Building and shall have the right to change any unapproved blinds and lighting at Tenant’s expense.

23.            Tenant shall not make any changes or alterations to any portion of the Building without Landlord’s prior written approval, which may be given on such conditions as Landlord may require in its sole discretion All such work shall be done by Landlord or by Landlord’s contractors and/or workers approved by Landlord, who must work under Landlord’s supervision and within Landlord’s standards and guidelines.

24.            Tenant shall not use the name of the Building in connection with or in promoting or advertising the business of Tenant except as Tenant’s address, without Landlord’s prior written approval, which may be given on such conditions as Landlord may require in its sole discretion.

25.            Tenant shall comply with all safety, fire protection, and evacuation procedures and regulations established by Landlord or any governmental agency Landlord has the right to evacuate the Building in the event of an emergency or catastrophe Landlord reserves the right to prevent access to the Building in cases of invasion, mob, riot, bomb threat, public excitement or other commotion by closing the doors or by taking other appropriate action.

26.            Tenant assumes any and all responsibility for protecting the Premises from theft, robbery and pilferage, which includes keeping doors locked when the Premises are not frilly inhabited.

27.            Tenant shall not permit its employees, invitees or guests to smoke in the Premises or the lobbies, passages, corridors, elevators, vending rooms, rest rooms, stairways or any other area shared in common with other tenants in the Building, or permit its employees, invitees, or guests to loiter within twenty-five (25) feet of the Building entrances for the purposes of smoking Landlord may, but shall not be required to, designate an area for smoking outside the Building.

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28.            Landlord has the right to designate a property management company to, among other things, monitor and enforce the Rules and Regulations.

29.            Tenant is solely responsible for the cost to maintain and repair any and all “Above Standard” items installed within their Premises (i.e., computer room air conditioning unit, sinks, garbage disposals, dishwashers, custom locking devices, specialty lighting, private restroom fixtures, etc.)

30.            Landlord reserves the right to rescind any of these rules and regulations and to make such other and further rules and regulations as in its sole judgment shall from time to time be required for the successful and professional operation of the Building, which rules shall be binding upon each tenant and its officers, agents, employees, guests and vendors upon delivery to Tenant.

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EXHIBIT C

COMMENCEMENT LETTER

Re:
Office Lease dated ____________, 2013 (the “ Lease ”) between MS CRESCENT 3993 HUGHES SPV, LLC (“ Landlord ”) and RIMINI STREET, INC (“ Tenant ”) for the Premises, the Rentable Square Footage of which is 3,315, located on the 7th floor of 3993 Howard Hughes Parkway, Las Vegas, Nevada Unless otherwise specified, all capitalized terms used herein shall have the same meanings as in the Lease.

Landlord and Tenant agree that:

Landlord has fully completed all Landlord Work required under the terms of the Lease, if any.

Tenant has accepted possession of the Premises The Premises are usable by Tenant as intended; Landlord has no further obligation to perform any Landlord Work or other construction, and Tenant acknowledges that both the Building and the Premises are satisfactory in all respects.

The Commencement Date of the Lease is ____________, 2013.

The Expiration Date of the Lease is the last day of ____________, __________.

Tenant’s Address at the Premises after the Commencement Date is:

Rimini Street, Inc.
_______________________________
_______________________________
Attention: ______________________
Phone: _________________________
Fax: ___________________________

All other terms and conditions of the Lease are ratified and acknowledged to be unchanged.

EXECUTED as of ____________, 2013.

 
TENANT:
 
       
 
RIMINI STREET, INC.
 
 
a Nevada corporation
 
       
 
By:
   
 
Name:
   
 
Title:
   
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EXHIBIT D

WORK LETTER

This Work Letter is attached as an Exhibit to an Office Lease (the “ Lease ”) between MS CRESCENT 3993 HUGHES SPV, LLC, as Landlord, and RIMINI STREET, INC., as Tenant, for the Premises, the Rentable Square Footage of which is 3,315, located on the seventh floor of the Building Unless otherwise specified, all capitalized terms used in this Work Letter shall have the same meanings as in the Lease In the event of any conflict between the Lease and this Work Letter, the latter shall control.

1.            Landlord Work.  Landlord agrees to construct, or cause to be constructed, leasehold improvements in the Premises (the “ Landlord Work ”) in accordance with Exhibit ”1” attached hereto (the “ Construction Plan ”), at Landlord’s sole cost and expense; provided, however, if the cost of the Landlord exceeds an amount equal to $60.00 multiplied by the Usable Square Footage of the Premises (the “ Finish Allowance ”), Tenant shall be required to reimburse Landlord the cost of any overage in an amount not to exceed $15.00 multiplied by the usable square footage of the Premises (subject to Tenant’s obligation to pay any costs of Change Orders pursuant to the Paragraph 4 below) The construction of the Landlord Work shall be performed in a good and workmanlike manner in accordance with all Laws, so that, when the Premises are made available for occupancy by Tenant, the Premises shall be in compliance with applicable building codes and other Laws Tenant acknowledges that Landlord is not an architect or engineer, and that the Landlord Work will be designed and performed by independent architects, engineers and contractors Accordingly, Landlord does not guarantee or warrant that the Construction Plan will comply with Laws or be free from errors or omissions, nor that the Landlord Work will be free from defects, and Landlord will have no liability therefor In the event of such errors, omissions or defects, and upon Tenant’s written request, Landlord will use commercially reasonable efforts to either enforce any applicable warranties or assign such warranties to Tenant and cooperate with Tenant in enforcing such applicable warranties In addition, Landlord’s approval of the Construction Plan or the Landlord Work shall not be interpreted to waive or otherwise modify the terms and provisions of the Lease.

2.            ADA Compliance.  Landlord shall, as an Operating Expense, subject to Section 4(D) of the Lease, be responsible for ADA (and any applicable state accessibility standard) compliance for the base Building, core areas (including elevators, Common Areas, service areas and the Property’s parking facilities) and all points of access into the Property Subject to Sections 3(B) and 5(B) of the Lease, Tenant shall, at its expense, be responsible for ADA (and any applicable state accessibility standard) compliance in the Premises, including restrooms on any floor now or hereafter leased or occupied in its entirety by Tenant, its affiliates or transferees Landlord shall not be responsible for ensuring that the Landlord Work complies with ADA requirements.

3.            Substantial Completion.  The Landlord Work shall be deemed to be “Substantially Complete” on the date that all Landlord Work (other than any details of construction, mechanical adjustment or any other similar matter, the noncompletion of which does not materially interfere with Tenant’s use or occupancy of the Premises) has been performed and Landlord has received a certificate of occupancy, temporary certificate of occupancy, final inspection approval, or other governmental approval required for occupancy of the Premises Time is of the essence in connection with the obligations of Landlord and Tenant under this Work Letter Landlord shall not be liable or responsible for any claims incurred (or alleged) by Tenant due to any delay in achieving Substantial Completion for any reason.

D-i

Prior to or not later than five (5) Business Days after the date upon which the Premises are delivered to Tenant, a representative of Landlord and a representative of Tenant shall walk through the Premises and jointly prepare a list of minor items which, in the mutual opinion of Landlord and Tenant, have not been fully completed or which require repair (the “ Punch List Items ”) Landlord shall cause its contractor to complete or repair the Punch List Items within 30 days after the date of the “walk-through” (or such long period as may be required if such work cannot reasonably be completed within such thirty (30) day period) Tenant shall not be entitled to any abatement of any rental obligations as pertains to the Premises pending completion of the Punch List Items If Tenant is unable to participate in a walk-through of the Premises, as described herein, prior to taking occupancy, Landlord shall have the right to conduct a walk-through with Landlord’s contractor for the purpose of verifying the condition of the Premises prior to Tenant’s move-in activities.

4.            Change Orders and Cost Overruns.  Landlord’s approval is required in advance of all changes requested by Tenant to, and deviations from, the Construction Plan (each, a “ Change Order ”), including any (i) omission, removal, alteration or other modification of any portion of the Landlord Work, (ii) additional architectural or engineering services, (iii) changes to materials, whether building standard materials, specially ordered materials, or specially fabricated materials, or (iv) cancellation or modification of supply or fabrication orders All Change Orders requested by Tenant and approved by Landlord which increase the cost of the Landlord Work over the Finish Allowance (collectively, “ Cost Overruns ”) shall be paid by Tenant to Landlord within 10 days of receipt of Landlord’s invoice In addition, at Landlord’s election, Landlord may require Tenant to prepay any projected Cost Overruns within 10 days of receipt of Landlord’s invoice for same Landlord may stop or decline to commence all or any portion of the Landlord Work until such payment (or prepayment) of Cost Overruns is received Tenant’s failure to pay, when due, any Cost Overruns or the cost of any Change Order shall constitute an event of default under the Lease after the expiration of applicable notice and cure periods.

5.            Construction Management Fee.  Landlord has waived its fee for the supervision and administration of the construction and installation of the Landlord Work.

D-ii

EXHIBIT “I”

CONSTRUCTION PLAN















EXHIBIT E

HUGHES CENTER

PARKING AGREEMENT

This Parking Agreement is incorporated by reference into that certain Lease Agreement dated as of ____________, 2013, RIMINI STREET, INC., as Tenant, and MS CRESCENT 3993 HUGHES SPV, LLC, as Landlord (the “Lease”).

1.            Parking Facilities The parking facilities appurtenant to the Building include asphalt surface parking for visitor parking and a separate parking structure for monthly parking (“Parking Structure”) Tenant shall be entitled to use commencing on the earlier of the Commencement Date or Tenant’s occupancy of the Premises, eight (8) vehicle parking spaces within the Parking Structure for the monthly parking of Tenant’s employees Two of such parking spaces shall be for parking in the reserved covered portion of the Parking Structure, four (4) of such parking spaces shall be for parking in the unreserved covered portion of the Parking Structure, and the remaining two (2) parking spaces shall be for parking in the unreserved rooftop, uncovered portion of the Parking Structure Tenant’s use of the Parking Structure shall be based upon a non-exclusive use in common with Landlord, other tenants of the Building, and their guests and invitees Tenant shall not use more parking spaces than said number, or any spaces (a) which have been specifically assigned by Landlord to other tenants or for such other uses as visitor parking or (b) which have been designated by governmental entities of competent jurisdiction as being restricted to certain uses Landlord reserves the right to erect such security and access and egress control devices as it may reasonably deem to be appropriate (including, without limitation card controlled gates) and Tenant agrees to cooperate fully with Landlord in such matters Tenant shall not permit or allow any vehicles that belong to or are controlled by Tenant or Tenant’s employees, suppliers, shippers, customers, or invitees to be loaded, unloaded, or parked in areas other than those designated by Landlord for such activities If Tenant permits or allows any of such prohibited activities, then Landlord shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove or tow away the vehicle involved and charge the cost to Tenant, which cost shall be immediately payable upon demand by Landlord.

2.            Parking Fee Tenant shall pay, throughout the entire Term, an amount equal to the number of parking spaces Tenant is entitled to use times the applicable fees (the “Parking Fees”) which Landlord is charging for use of the parking facilities Currently, Landlord is charging One Hundred Ten Dollars and No Cents ($110.00) per space per month for reserved covered parking, Seventy Dollars and No Cents ($70.00) per space per month for covered parking and Forty-Five Dollars and No Cents ($45.00) per space per month for uncovered parking Landlord shall have the right from time to time to increase the Parking Fees being charged Tenant upon thirty (30) days prior written notice to Landlord’s prevailing rates Tenant agrees and acknowledges that Tenant shall be obligated to pay such rates regardless of whether or not Tenant actually uses or needs the parking spaces which Tenant is entitled to use Such Parking Fees shall be payable monthly commencing with the first installment of Base Rent due under the Lease If the Commencement Date is other than the first day of a calendar month, the first installment of the Parking Fees shall be prorated on the basis of a thirty (30) day calendar month Notwithstanding the foregoing, Tenant shall be obligated to pay only fifty percent (50%) of the monthly Parking Fees for such parking spaces during the first twelve (12) months of the initial Lease Term; and Tenant shall be obligated to pay only seventy-five percent (75%) of the monthly Parking Fees for such parking spaces during the second twelve (12) months of the initial Lease Term.

E-i

3.            Definitions All capitalized terms contained in this Parking Agreement that are not defined herein shall have the same definition as set forth in the Lease.

4.            Additional Parking If requested by Tenant in writing, Tenant may convert one (1) unreserved covered parking space to a ‘reserved’ covered parking space, subject to availability and on a month-to-month basis at the then prevailing fees for such additional reserved covered parking space.
E-ii

EXHIBIT “F”

HUGHES CENTER

JANITORIAL SPECIFICATIONS

I.
COMMON AREA RESTROOMS

A.
DAILY

Wash and disinfect all toilets, urinals and sinks.

Clean and polish bright work (chrome flushometers, faucets, “P” traps, etc.) and mirrors using safe, non-destructive chemicals.

Clean stainless steel items, using stainless polish and safe chemicals.

Spot clean walls and stall partitions to remove fingerprints and graffiti.

Thoroughly clean tile floor and grout joints Mop/scrub as required.

Empty, clean and install liners in all trash and sanitary napkin receptacles.

Re-stock: toilet paper, seat protectors, hand towels and hygiene dispensers.

Clean urinal and deodorant screens Change as needed.

Wash vanities and sink tops.

B.
QUARTERLY

Wash walls, ceilings and vents.

Wash light fixtures.

II.
CARPET MAINTENANCE (All areas)

Vacuum all carpets and rugs This will include moving light items, chairs, small tables, plants, etc., but will exclude moving desks, file cabinets or other heavy, non-movable equipment (daily).

Clean spills and spots using spot-shot or other approved method (daily).

Trim strings (daily).

Clean elevator carpet using spin-pad, dry capture or extraction method (weekly).

F-2

Clean all common area carpets using spin-pad, dry capture, or extraction method as approved by Property Management (as needed, but not less than quarterly).

Floor covering in the Premises will be cleaned on a “time and materials” basis, as reasonably requested by Tenant and billed to Tenant separately.

III.
HARD-SURFACED FLOORS (All areas)

A.
CERAMIC TILED FLOORS

Dust and/or mop all surfaces (daily).

Strip, seal and finish flooring to manufacturer’s recommendations, using slip resistant products as approved (as needed).

Machine scrub and refinish (weekly).

Ground floor lobby tile needs daily maintenance to retain luster and slip resistance (daily).

B.
VINYL COMPOSITION TILED FLOORS

Sweep and damp mop (daily).

Dust baseboards (weekly).

Strip, seal and re-finish (monthly).

Machine scrub, re-finish and spray buff (weekly) Use only safe, non-slip, ultra-high-sheen (wet-look) products.

C.
WOOD-PARQUET FLOORS

Dust mop with clean, treated mops (daily).

Clean and spray buff (weekly).

Strip, seal and re-finish on a “time and materials” basis as requested by Tenant and billed to Tenant separately.

D.
GRANITE FLOORS

Sweep (daily).

Wet mop (weekly).

Strip (if necessary) and wax (monthly).
F-3


Floor covering in the Premises will be cleaned on a “time and materials” basis, as reasonably requested by Tenant and billed to Tenant separately.

IV.
WINDOWS AND GLASS (All areas)

Clean entrance doors and glass (daily).

Clean all interior glass fingerprints and smudges (daily).

Clean all tenant partitions (monthly).

Clean interior side of all exterior windows (annually).

Clean exterior side of all exterior windows (every six (6) months).

V.
COMMON AREAS

A.
DAILY

Clean elevator, wipe panels, polish stainless, clean thresholds, buttons and floor.

Spot clean walls, doors and baseboards.

Clean signage, chrome and hardware, etc.

Service and clean ash urns, empty trash, fill sand, etc.

Clean and sanitize drinking fountains.

Clean directory.

B.
WEEKLY

Clean wax over-spray off base in lobby areas (weekly, or as needed to eliminate build-up on base).

Clean fire stairwells.

C.
OTHER

Dust light fixtures, high areas and vents (quarterly).

Clean, oil and polish as applicable, all doors (quarterly).

Dust and wash walls (monthly).

F-4

VI.
TENANT AREAS

A.
DAILY

Empty all trash containers and change liners, clean containers as needed.

Empty and clean ashtrays.

Clean and disinfect phone receivers.

Dust and wipe desks, tables, filing cabinets, etc.

Touch-up hand prints and smudges on doors, walls, light switches, railings, etc.

Clean sinks, removing coffee stains and lime deposits.

Wipe down counters, cabinets and appliances in lunch rooms.

B.
WEEKLY

Dust mini-blinds, window ledges and partitions.

Wipe down legs of chairs, desks, tables, etc.

C.
MONTHLY/OTHER

Wipe sides of desks, credenzas, shelves, pictures, etc.

Polish desks, tables, credenzas, shelves, etc.

Polish/dust wood paneling and doors.

Vacuum all cloth chairs and couches, wipe down others, as needed.

Wash desk floor pads.

Clean partitions (cloth and hard type).

High level dusting for light fixtures, vents, etc (semi-annually)

 
 
 
F-5

Exhibit 10.39
 
FIRST AMENDMENT

THIS FIRST AMENDMENT (this “ Amendment ”) is made and entered into as of October 8, 2014, by and between BRE/HC LAS VEGAS PROPERTY HOLDINGS, L.L.C., a Delaware limited liability company (“ Landlord ”), and RIMINI STREET, INC., a Nevada corporation (“ Tenant ”).

RECITALS

A.
Landlord (as successor in interest to MS Crescent 3993 Hughes SPV, LLC, a Delaware limited liability company) and Tenant are parties to that certain office lease dated May 22, 2013 (the “ Lease ”).  Pursuant to the Lease, Landlord has leased to Tenant space currently containing approximately 3,315 rentable square feet (the “ Existing Premises ”) described as Suite No. 780 on the seventh (7 th ) floor of the building commonly known as Hughes Center-3993 Howard Hughes Parkway located at 3993 Howard Hughes Parkway, Las Vegas, Nevada (the “ Building ”).

B.
The Lease will expire by its terms on October 31, 2019 (the “ Existing Expiration Date ”), and the parties wish to extend the term of the Lease on the following terms and conditions.

C.
The parties wish to expand the Premises (defined in the Lease) to include additional space, containing approximately 11,715 rentable square feet described as Suite No. 500 on the fifth (5 th ) floor of the Building and shown on Exhibit A   attached hereto (the “ Suite 500 Expansion Space ”), on the following terms and conditions.

NOW, THEREFORE , in consideration of the above recitals which by this reference are incorporated herein, the mutual covenants and conditions contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows:

1.
Extension .  The term of the Lease is hereby extended through December 31, 2021 (the “ Extended Expiration Date ”).  The portion of the term of the Lease beginning on the date immediately following the Existing Expiration Date (the “ Extension Date ”) and ending on the Extended Expiration Date shall be referred to herein as the “ Extended Term ”.

2.
Suite 500 Expansion .

2.1
Effect of Suite 500 Expansion .  Effective as of the Suite 500 Expansion Effective Date (defined in Section 2 . 2 below), the Premises shall be increased from 3,315 rentable square feet on the seventh (7 th ) floor to 15,030 rentable square feet on the fifth (5 th ) and seventh (7 th ) floors by the addition of the Suite 500 Expansion Space, and, from and after the Suite 500 Expansion Effective Date, the Existing Premises and the Suite 500 Expansion Space shall collectively be deemed the Premises.  The term of the Lease for the Suite 500 Expansion Space (the “ Suite 500 Expansion Term ”) shall commence on the Suite 500 Expansion Effective Date and, unless sooner terminated in accordance with the Lease, end on the Extended Expiration Date.  From and after the Suite 500 Expansion Effective Date, the Suite 500 Expansion Space shall be subject to all the terms and conditions of the Lease except as provided herein.  Except as may be expressly provided herein, (a) Tenant shall not be entitled to receive, with respect to the Suite 500 Expansion Space, any allowance, free rent or other financial concession granted with respect to the Existing Premises, and (b) no representation or warranty made by Landlord with respect to the Existing Premises shall apply to the Suite 500 Expansion Space.


2.2
Suite 500 Expansion Effective Date .  As used herein, “ Suite 500 Expansion Effective Date ” means the earlier of (i) the first date on which Tenant conducts business in the Suite 500 Expansion Space, or (ii) December 15, 2014.  Notwithstanding the foregoing, if the Tenant Improvement Work (defined in Exhibit B attached hereto) is not Substantially Complete (defined in Exhibit B attached hereto) on or before the Suite 500 Expansion Effective Date, Tenant shall be entitled to receive a full abatement of Base Rent and Additional Rent for the Suite 500 Expansion Space with respect to the period beginning on December 15, 2014 and ending on the date that the Tenant Improvement Work is Substantially Complete (the “ Late Completion Abatement Period ”).

Notwithstanding the foregoing to the contrary, Tenant shall be permitted to take possession of the Suite 500 Expansion Space for the purpose of installing furniture, fixtures, equipment or other personal property in the Suite 500 Expansion Space during the period commencing no earlier than 14 days prior of the Substantial Completion of the Tenant Improvement Work (the “ Beneficial Occupancy Period ”) so long as Landlord is in receipt of a certificate of insurance from Tenant as required under the Lease with respect to the Suite 500 Expansion Space.  Possession of the Suite 500 Expansion Space during the Beneficial Occupancy Period shall be subject to the terms and conditions of the Lease.  However, except for the cost of services requested by Tenant (e.g. after-hours HVAC), Tenant shall not be required to pay Rent for the Suite 500 Expansion Space during the Beneficial Occupancy Period.  If at any time such entry shall cause disharmony, interference or union disputes of any nature whatsoever, or if Landlord shall, in Landlord’s reasonable judgment, determine that such entry, such work or the continuance thereof shall materially interfere with, hamper or prevent Landlord from proceeding with the completion of the Tenant Improvement Work at the earliest possible date, Tenant’s right to possession of the Suite 500 Expansion Space for the purpose of performing improvements or installing furniture, equipment or other personal property or the Permitted Use may be conditioned by Landlord in a manner that will avoid any such delay.

2.3
Confirmation Letter .  At any time after the Suite 500 Expansion Effective Date, Landlord may deliver to Tenant a notice substantially in the form of Exhibit C attached hereto, as a confirmation of the information set forth therein.  Tenant shall execute and return (or, by written notice to Landlord, reasonably object to) such notice within five (5) days after receiving it.

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3.
Base Rent .

3.1
Existing Premises During Extended Term .  With respect to the Existing Premises during the Extended Term, the schedule of Base Rent shall be as follows:

Period of Extended
Term
Annual Rate Per Square
Foot (rounded to the
nearest 100 th of a dollar)
Monthly Base Rent
     
November 1, 2019 through October 31, 2020
$41.52
$11,469.90
November 1, 2020 through October 31, 2021
$42.77
$11,815.21
November 1, 2021 through the Extended Expiration Date (i.e. December 31, 2021)
$44.05
$12,168.81
 
All such Base Rent shall be payable by Tenant in accordance with the terms of the Lease.

3.2
Suite 500 Expansion Space During Suite 500 Expansion Term.  With respect to the Suite 500 Expansion Space during the Suite 500 Expansion Term, the schedule of Base Rent shall be as follows:

Period During Suite 500
Expansion Term
Annual Rate Per Square
Foot (rounded to the
nearest 100 th of a dollar)
Monthly Base Rent
Suite 500 Expansion
Effective Date through
October 31, 2015
$34.80
$33,973.50
November 1, 2015 through October 31, 2016
$35.84
$34,988.80
November 1, 2016 through October 31, 2017
$36.92
$36,043.15
November 1, 2017
through October 31, 2018
$38.03
$37,126.79
November 1, 2018 through October 31, 2019
$39.17
$38,239.71
November 1, 2019 through October 31, 2020
$40.34
$39,381.93
November 1, 2020
through Extended
Expiration Date (i.e.
December 31, 2021)
$41.55
$40,563.19

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All such Base Rent shall be payable by Tenant in accordance with the terms of the Lease.

Base Rent Abatement.  Notwithstanding anything in this Section of this Amendment Lease to the contrary, so long as an event of default has not occurred under the Lease, Tenant shall be entitled to an abatement of Base Rent in the amount of $33,973.50 per month for six (6) consecutive full calendar months of the Suite 500 Expansion Term, beginning with the second (2 nd ) full calendar month following the later to occur of the Suite 500 Expansion Effective Date and the last day of the last day of the Late Completion Abatement Period.  The total amount of Base Rent abated in accordance with the foregoing shall equal $203,841.00 (the “Abated Base Rent”).  If an event of default occurs at any time during the Suite 500 Expansion Term and Tenant fails to cure such event of default within any applicable cure period under the Lease, all unamortized Abated Base Rent (i.e. based upon the amortization of the Abated Base Rent in equal monthly amounts during the Suite 500 Expansion Term, without interest) shall immediately become due and payable.  The payment by Tenant of the Abated Base Rent in the event of a default shall not limit or affect any of Landlord’s other rights, pursuant to this Amendment, the Lease or at law or in equity.  Only Base Rent shall be abated, and all additional Rent (as defined in Section 4.A of the Lease) and other costs and charges specified in this Amendment and the Lease shall remain as due and payable pursuant to the provisions of this Amendment and the Lease.

4.
Additional Security Deposit; Letter of Credit .

4.1
Security Deposit.  Landlord currently retains the sum of $57,681.00 as the Security Deposit, held by Landlord pursuant to Article 6 of the Original Lease.

4.2
Letter of Credit .

A.
General Provisions .  Concurrently with Tenant’s execution of this Amendment, Tenant shall deliver to Landlord, as collateral for the full performance by Tenant of all of its obligations under this Lease and for all losses and damages Landlord may suffer as a result of Tenant’s failure to comply with one or more provisions of this Lease, a standby, unconditional, irrevocable, transferable letter of credit (the “Letter of Credit”) in the form of Exhibit D hereto and containing the terms required herein, in the face amount of $203,841.00 (the “Letter of Credit Amount”), naming Landlord as beneficiary, issued (or confirmed) by a financial institution acceptable to Landlord in Landlord’s sole discretion, permitting multiple and partial draws thereon, and otherwise in form acceptable to Landlord in its sole discretion.  Tenant shall cause the Letter of Credit to be continuously   maintained in effect (whether through replacement, renewal or extension) in the Letter of Credit Amount through the date (the “Final LC Expiration Date”) that is 60 days after the Extended Expiration Date, as the same may be extended.  If the Letter of Credit held by Landlord expires earlier than the Final LC Expiration Date (whether by reason of a stated expiration date or a notice of termination or non-renewal given by the issuing bank), Tenant shall deliver a new Letter of Credit or certificate of renewal or extension (a “Renewal or Replacement LC”) to Landlord not later than 60 days prior to the expiration date of the Letter of Credit then held by Landlord.  Any Renewal or Replacement LC shall comply with all of the provisions of this Section 4.2, shall be irrevocable, transferable and shall remain in effect (or be automatically renewable) through the Final LC Expiration Date upon the same terms as the expiring Letter of Credit or such other terms as may be acceptable to Landlord in its sole discretion.

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B.
Drawings under Letter of Credit .  Upon Tenant’s failure to comply with one or more provisions of the Lease, or as otherwise specifically agreed by Landlord and Tenant pursuant to this Lease or any amendment hereof, Landlord may, without prejudice to any other remedy provided in the Lease or by Law, draw on the Letter of Credit and use all or part of the proceeds to (a) satisfy any amounts due to Landlord from Tenant, and (b) satisfy any other damage, injury, expense or liability caused by Tenant’s failure to so comply.  In addition, if Tenant fails to furnish a Renewal or Replacement LC complying with all of the provisions of this Section 4.2 at least 60 days prior to the stated expiration date of the Letter of Credit then held by Landlord, Landlord may draw upon such Letter of Credit and hold the proceeds thereof (and such proceeds need not be segregated) in accordance with the terms of this Section 4.2 (the “LC Proceeds Account”).

C.
Use of Proceeds by Landlord .  The proceeds of the Letter of Credit shall constitute Landlord’s sole and separate property (and not Tenant’s property or the property of Tenant’s bankruptcy estate) and Landlord may immediately upon any draw (and without notice to Tenant) apply or offset the proceeds of the Letter of Credit: (a) against any Rent payable by Tenant under this Lease that is not paid when due; (b) against all losses and damages that Landlord has suffered or that Landlord reasonably estimates that it may suffer as a result of Tenant’s failure to comply with one or more provisions of this Lease; (c) against any costs incurred by Landlord in connection with the Lease (including attorneys’ fees); and (d) against any other amount that Landlord may spend or become obligated to spend by reason of Tenant’s Default.  Provided Tenant has performed all of its obligations under the Lease, Landlord agrees to pay to Tenant within 45 days after the Final LC Expiration Date the amount of any proceeds of the Letter of Credit received by Landlord and not applied as allowed above; provided, that if prior to the Final LC Expiration Date a voluntary petition is filed by Tenant or any Guarantor, or an involuntary petition is filed against Tenant or any Guarantor by any of Tenant’s or Guarantor’s creditors, under the Federal Bankruptcy Code, then Landlord shall not be obligated to make such payment in the amount of the unused Letter of Credit proceeds until either all preference issues relating to payments under the Lease have been resolved in such bankruptcy or reorganization case or such bankruptcy or reorganization case has been dismissed, in each case pursuant to a final court order not subject to appeal or any stay pending appeal.

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D.
Additional Covenants of Tenant .  If, as result of any application or use by Landlord of all or any part of the Letter of Credit, the amount of the Letter of Credit shall be less than the Letter of Credit Amount, Tenant shall, within 5 days thereafter, provide Landlord with additional letter(s) of credit in an amount equal to the deficiency (or a replacement letter of credit in the total Letter of Credit Amount), and any such additional (or replacement) letter of credit shall comply with all of the provisions of this Section 4.2, and if Tenant fails to comply with the foregoing, notwithstanding anything to the contrary contained in the Lease, the same shall constitute an incurable Default by Tenant.  Tenant further covenants and warrants that it will neither assign nor encumber the Letter of Credit or any part thereof and that neither Landlord nor its successors or assigns will be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.

E.
Nature of Letter of Credit .  Landlord and Tenant (a) acknowledge and agree that in no event or circumstance shall the Letter of Credit or any renewal thereof or substitute therefor or any proceeds thereof (including the LC Proceeds Account) be deemed to be or treated as a “security deposit” under any Law applicable to security deposits in the commercial context (“Security Deposit Laws”), (b)   acknowledge and agree that the Letter of Credit (including any renewal thereof or substitute therefor or any proceeds thereof) is not intended to serve as a security deposit, and the Security Deposit Laws shall have no applicability or relevancy thereto, and (c) waive any and all rights, duties and obligations either party may now or, in the future, will have relating to or arising from the Security Deposit Laws.

F.
Reduction in Letter of Credit Amount .  Provided that, during the 12 month period immediately preceding the effective date of any reduction of the Letter of Credit, Tenant has timely paid all Rent and no Default has occurred under this Lease which remains uncured following any applicable cure period (the “LC Reduction Conditions”), Tenant may reduce the Letter of Credit Amount so that the reduced Letter of Credit Amounts will be as follows: (a) $169,867.50 effective as of the first day of the 42 nd full calendar month of the Suite 500 Expansion Term; (b) $135,894.00 effective as of the first day of the 54 th full calendar month of the Suite 500 Expansion Term; (c) $101,920.50 effective as of the first day of the 66 th full calendar month of the Suite 500 Expansion Term; (d) $33,973.50 effective as of the first day of the 78 th full calendar month of the Suite 500 Expansion Term.  If Tenant is not entitled to reduce the Letter of Credit Amount as of a particular reduction effective date due to Tenant’s failure to satisfy the LC Reduction Conditions described above, then any subsequent reduction(s) Tenant is entitled to hereunder shall be reduced by the amount of the reduction Tenant would have been entitled to had Tenant satisfied the LC Reduction Conditions necessary for such earlier reduction.  Notwithstanding anything to the contrary contained herein, if Tenant has been in Default under this Lease at any time prior to the effective date of any reduction of the Letter of Credit Amount and Tenant has failed to cure such Default within any applicable cure period, then Tenant shall have no further right to reduce the Letter of Credit Amount as described herein.  Any reduction in the Letter of Credit Amount shall be accomplished by Tenant providing Landlord with a substitute letter of credit in the reduced amount or an amendment to the existing Letter of Credit reflecting the reduced amount.

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G.
Cash Security Deposit .  Notwithstanding anything herein to the contrary, Tenant shall have the right to provide Landlord with a cash security deposit in the amount of $203,841.00 in lieu of a Letter of Credit.  In such event, the amount of the existing security deposit shall be increased from $57,681.00 to $261,522.00.  In such event, the reduction schedule for the $57,681.00 portion of the security deposit shall be in accordance with Article 6 of the Lease and the reduction schedule for the $203,841.00 portion of the security deposit shall be in accordance with Section 4.2 F above.

5.
Tenant’s Pro Rata Share With respect to the Suite 500 Expansion Space during the Suite 500 Expansion Term, Tenant’s Pro Rata Share shall be 6.8565%.

6.
Operating Expenses .

6.1
Existing Premises During Extended Term.  With respect to the Existing Premises during the Extended Term, Tenant shall pay for Tenant’s Pro Rata Share of Excess Operating Expenses in accordance with the terms of the Lease; provided, however, that, with respect to the Existing Premises during the Extended Term, the Base Year for Operating Expenses shall be 2014.

6.2
Suite 500 Expansion Space During Suite 500 Expansion Term.  With respect to the Suite 500 Expansion Space during the Suite 500 Expansion Term, Tenant shall pay for Tenant’s Pro Rata Share of Operating Expenses in accordance with the terms of the Lease; provided, however, that (i) with respect to the Suite 500 Expansion Space during the Suite 500 Expansion Term, the Base Year for Operating Expenses shall be 2014; and (ii) Tenant shall not be required to pay Tenant’s Pro Rata Share of Operating Expenses for the Suite 500 Expansion Space during the Late Completion Abatement Period, if any.

7.
Improvements to Existing Premises and Suite 500 Expansion Space .

7.1
Configuration and Condition of Existing Premises and Suite 500 Expansion Space.  Tenant acknowledges that it is in possession of the Existing Premises and that it has inspected the Suite 500 Expansion Space, and agrees to accept each such space in its existing configuration and condition, without any representation by Landlord regarding its configuration or condition and without any obligation on the part of Landlord to perform or pay for any alteration or improvement, except as may be otherwise expressly provided in this Amendment.

7.2
Responsibility for Improvements to the Suite 500 Expansion Space.  Landlord shall perform improvements to the Suite 500 Expansion Space in accordance with Exhibit B   attached hereto.

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8.
Option to Extend .  Tenant shall retain its existing one (1) renewal period for five (5) years as set forth in RIDER NO. 1, “OPTION TO EXTEND” of the Lease ; provided, however, (a) all references to “Term” shall be deleted and “Extended Term” shall be substituted therefore; and (b) if Tenant has not previously exercised its right to terminate the Existing Premises in accordance with Section 3.D of the Original Lease, Tenant may exercise its Option to Extend with respect to the entire Premises less the Existing Premises.

9.
Parking .  In addition to Tenant’s rights under EXHIBIT E, “PARKING AGREEMENT” of the Lease , during the Suite 500 Expansion Term, Tenant shall be entitled to use twenty-three (23) additional unreserved covered parking spaces and twelve (12) additional unreserved uncovered parking spaces .  Tenant shall pay Landlord’s standard changes for any such additional parking (currently $70.00 per additional unreserved covered parking space per month and $45.00 per additional unreserved uncovered parking space per month); provided, however, (a) during the initial twelve (12) full calendar months of the Suite 500 Expansion Term, Tenant shall receive a fifty percent (50%) discount against the then current Parking Fees for such additional parking, and (b) during the thirteenth (13 th ) through twenty-fourth (24 th ) full calendar months of the Suite 500 Expansion Term, Tenant shall receive a twenty-five percent (25%) discount against the then current Parking Fees for such additional parking.  Except as provided herein to the contrary, Tenant’s use of the additional spaces shall be subject to Exhibit E of the Lease.

10.
Right of First Offer .

10.1
Grant of Option; Conditions .  Tenant shall have an on-going right of first offer (“Right of First Offer”) with respect to the space that is contiguous to the Suite 500 Expansion Space (the “Potential Offering Space”) on the 5 th floor of the Building.  Tenant’s Right of First Offer shall be exercised as follows: At any time after Landlord has determined that a Potential Offering Space has become Available (defined below), but before leasing such Potential Offering Space to a third party, Landlord shall provide Tenant with written notice (the “Advice”) advising Tenant of the terms under which Landlord is prepared to lease such Potential Offering Space (an “Offering Space”) to Tenant for the remainder of the Extended Term, which terms shall reflect the Market Rental Rate (defined in Section C of Rider No. 1 to the Lease) rate for such Offering Space as reasonably determined by Landlord.  For purposes hereof, a Potential Offering Space shall be deemed to become “Available” as follows: (i) if such Potential Offering Space is not under lease to a third party as of the date of mutual execution and delivery of this Amendment, such Potential Offering Space shall be deemed to become Available when Landlord has located a prospective tenant that may be interested in leasing such Potential Offering Space; and (ii) if such Potential Offering Space is under lease to a third party as of the date of mutual execution and delivery of the Lease, such Potential Offering Space shall be deemed to become Available when Landlord has determined that the third-party tenant of such Potential Offering Space, and any occupant of such Potential Offering Space claiming under such third-party tenant, will not extend or renew the term of its lease, or enter into a new lease, for such Potential Offering Space.  Tenant may lease any Offering Space in its entirety only, under the terms set forth in the Advice, by delivering written notice of exercise to Landlord (the “Notice of Exercise ”)   within 7 business days after the date of the Advice, except that Tenant shall have no Right of First Offer, and Landlord shall not be required to provide Tenant with an Advice, with respect to any Potential Offering Space, if:

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A.
Tenant is in default under the Lease beyond any applicable cure period when Landlord would otherwise deliver the Advice; or

B.
the Premises, or any portion thereof, is sublet when Landlord would otherwise deliver the Advice (except in connection with a Permitted Transfer); or

C.
the Lease has been assigned (except in connection with a Permitted Transfer) before the date on which Landlord would otherwise deliver the Advice.

10.2
Terms for Offering Space .

A.
The term for the Offering Space shall commence on the commencement date stated in the Advice and thereupon the Offering Space shall be considered a part of the Premises subject to the provisions of the Lease; provided, however, that the provisions of the Advice shall prevail to the extent they conflict with the provisions of the Lease.

B.
Tenant shall pay Base Rent and Additional Rent for the Offering Space in accordance with the provisions of the Advice, which provisions shall reflect the Market Rental Rate for the Offering Space as determined in Landlord’s reasonable judgment.

C.
Except as may be otherwise provided in the Advice, the Offering Space (including improvements and personalty, if any) shall be accepted by Tenant in its condition and as-built configuration existing on the earlier of the date Tenant takes possession of the Offering Space or as of the date the term for the Offering Space commences.  If Landlord is delayed in delivering possession of the Offering Space by any holdover or unlawful possession of the Offering Space by any party, Landlord shall use reasonable efforts to obtain possession of the Offering Space, and the commencement date of the term for the Offering Space shall be postponed until the date Landlord delivers possession of the Offering Space to Tenant free from occupancy by any party.

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10.3
Termination of Right of First Offer .  The rights of Tenant hereunder with respect to any Potential Offering Space shall terminate on the earliest to occur of: (i) the last day of the 53 rd month of the Suite 500 Expansion Term, (ii) Tenant’s failure to exercise its Right of First Offer with respect to such Potential Offering Space within the 7 business day period provided in Section 10.1 above, or (iii) the date on which Landlord would have provided Tenant an Advice for such Potential Offering Space if Tenant had not been in violation of one or more of the conditions set forth in Section 10.1   above.  Notwithstanding anything herein to the contrary, if (a) Tenant failed to exercise its Right of First Offer within the 7 business day period provided in Section 10.1 above, and (b) Landlord does not enter into a lease for the Offering Space within a period of 6 months following the date of the Advice, Tenant shall once again (but subject to the outside date set forth in (i) above) have a Right of First Offer with respect to such Offering Space.  In addition, if Landlord enters into a lease for the Offering Space with a third party following Tenant’s failure to exercise its Right of First Offer within the 7 business day period provided in Section 10.1 above, Tenant shall once again (but subject to the outside date set forth in (i) above) have a Right of First Offer with respect to such Offering Space following the expiration or earlier termination of such third party lease.

10.4
Offering Amendment .  If Tenant exercises its Right of First Offer, Landlord shall prepare an amendment (the “Offering Amendment”) adding the Offering Space to the Premises on the terms set forth in the Advice and reflecting the changes in the Base Rent, rentable square footage of the Premises, Tenant’s Share and other appropriate terms in accordance with this Section 10 .  A copy of the Offering Amendment shall be sent to Tenant within a reasonable time after   Landlord’s receipt of the Notice of Exercise executed by Tenant, and Tenant shall execute and return the Offering Amendment to Landlord within 15 days thereafter, but an otherwise valid exercise of the Right of First Offer shall be fully effective whether or not the   Offering Amendment is executed.

10.5
Subordination .  Notwithstanding anything herein to the contrary, Tenant’s Right of First Offer is subject and subordinate to the expansion rights (whether such rights are designated as a right of first offer, right of first refusal, expansion option or otherwise) of any tenant of the Building existing on the date hereof.

11.
Monument Signage .

11.1
So long as (i) Tenant is not in default under the terms of the Lease; and (ii) Tenant has not assigned the Lease (except in connection with a Permitted Transfer) or sublet more than 25% of the Premises (except in connection with a Permitted Transfer), then Landlord shall install, for Tenant’s benefit and at Tenant’s cost, a signage panel (the “ Panel ”) identifying Tenant’s presence in the Building on the existing Building monument sign (the “ Monument Sign ”) located ___________________.  The exact location of Tenant’s Panel on the Monument Sign shall be determined alphabetically (i.e. starting with “A” names on the top of the Monument Sign.  Tenant, at its sole cost and expense, shall obtain all necessary building permits and zoning and regulatory approval in connection with the Panel.  Following installation of the Panel, Tenant shall remain liable for all costs related to the maintenance and, if applicable, illumination of the Panel.  Notwithstanding the foregoing, Landlord shall have the right to maintain the Panel with contractors selected by Landlord and to bill Tenant for the cost thereof as Additional Rent.

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11.2
Tenant must obtain Landlord’s written consent to any proposed Panel prior to its fabrication and installation.  Landlord reserves the right to withhold consent to any Panel that, in the sole judgment of Landlord, is not harmonious with the design standards of the Building.  To obtain Landlord’s consent, Tenant shall submit design drawings to Landlord, showing the type and sizes of all lettering; the colors, finishes and types of materials used; and (if applicable and Landlord consents) any provisions for illumination.

11.3
If during the Term (and any extensions thereof) (a) Tenant is in default under the terms of the Lease after the expiration of applicable cure periods; or (b) Tenant fails to continuously occupy the Premises; or (c) Tenant assigns the Lease (except in connection with a Permitted Transfer) or subleases more than 25% of the Premises (except in connection with a Permitted Transfer), then Tenant’s rights granted herein will terminate and Landlord may remove any Panel at Tenant’s cost.  Tenant agrees upon the expiration date or sooner termination of this Lease, upon Landlord’s request, to remove the Panel and repair any damage to the Monument Sign at Tenant’s sole cost and expense.  Notwithstanding the foregoing, Landlord shall have the right to perform any removal or restoration work with contractors selected by Landlord and to bill Tenant for the cost thereof as additional Rent.

11.4
Landlord may, at any time during the Term (or any extension thereof), upon five (5) days prior written notice to Tenant, relocate the position of Tenant’s Panel on the Monument Sign in order to keep the alphabetical listing order intact.  The cost of such relocation of Tenant’s Panel shall be paid by Landlord.

12.
Other Pertinent Provisions .  Landlord and Tenant agree that, effective as of the date of this Amendment (unless different effective date(s) is/are specifically referenced in this Section), the Lease shall be amended in the following additional respects:

12.1
Early Termination/Right to Terminate Section 3.E., “Right to Terminate” of the Lease is hereby deleted in its entirety and of no further force and effect.  Tenant shall retain its early termination right under Section 3.D.  of the Lease, provided that such right to terminate shall only apply to the Existing Premises (i.e. the 3,315 rentable square feet described as Suite No. 780).

12.2
Discounted Hourly HVAC Charge .  Effectively as of January 1, 2015, the Discounted Hourly HVAC charge per calendar year set forth in Section 7.A (2) of the Lease shall be applicable to both the Existing Premises and the Suite 500 Expansion Space during the Term, as extended by this Amendment.
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12.3
Notice Addresses .  Any notice required under the terms of the Lease to b3e sent to Landlord shall be sent to the following addresses:

 
BRE/HC LAS VEGAS PROPERTY HOLDINGS, L.L.C.
 
3800 Howard Hughes Parkway
 
Suite 150
 
Las Vegas, NV 89169
 
Attn: Property Manager
   
 
with copies to:
   
 
BRE/HC LAS VEGAS PROPERTY HOLDINGS, L.L.C.
 
c/o Equity Office
 
Two North Riverside Plaza
 
Suite 2100
 
Chicago, IL 60606
 
Attn: Managing Counsel
   
 
and
   
 
Equity Office
 
Two North Riverside Plaza
 
Suite 2100
 
Chicago, IL 60606
 
Attn: Lease Administration
 
13.
Miscellaneous .

13.1
This Amendment and the attached exhibits, which are hereby incorporated into and made a part of this Amendment, set forth the entire agreement between the parties with respect to the matters set forth herein.  There have been no additional oral or written representations or agreements.  Tenant shall not be entitled, in connection with entering into this Amendment, to any free rent, allowance, alteration, improvement or similar economic incentive to which Tenant may have been entitled in connection with entering into the Lease, except as may be otherwise expressly provided in this Amendment.

13.2
Except as herein modified or amended, the provisions, conditions and terms of the Lease shall remain unchanged and in full force and effect.

13.3
In the case of any inconsistency between the provisions of the Lease and this Amendment, the provisions of this Amendment shall govern and control.

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13.4
Submission of this Amendment by Landlord is not an offer to enter into this Amendment but rather is a solicitation for such an offer by Tenant.  Landlord shall not be bound by this Amendment until Landlord has executed and delivered it to Tenant.

13.5
Capitalized terms used but not defined in this Amendment shall have the meanings given in the Lease.

13.6
Tenant shall indemnify and hold Landlord, its trustees, members, principals, beneficiaries, partners, officers, directors, employees, mortgagee(s) and agents, and the respective principals and members of any such agents harmless from all claims of any brokers (other than Colliers International) claiming to have represented Tenant in connection with this Amendment.  Landlord shall indemnify and hold Tenant, its trustees, members, principals, beneficiaries, partners, officers, directors, employees, and agents, and the respective principals and members of any such agents harmless from all claims of any brokers claiming to have represented Landlord in connection with this Amendment.  Tenant acknowledges that any assistance rendered by any agent or employee of any affiliate of Landlord in connection with this Amendment has been made as an accommodation to Tenant solely in furtherance of consummating the transaction on behalf of Landlord, and not as agent for Tenant.

[SIGNATURES ARE ON FOLLOWING PAGE]

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IN WITNESS WHEREOF , Landlord and Tenant have duly executed this Amendment as of the day and year first above written.

  LANDLORD:
       
  BRE/HC LAS VEGAS PROPERTY HOLDINGS, L.L.C., a Delaware limited liability Company
       
  By: /s/ John Woo
    Name:
John Woo
    Title:
VP Portfolio Management
       
  TENANT:
       
  RIMINI STREET, INC., a Nevada corporation
       
  By:   /s/ Seth A. Raven
       
  Name:  
Seth A. Raven
       
  Title:  
CEO


EXHIBIT A

OUTLINE AND LOCATION OF SUITE 500 EXPANSION SPACE



EXHIBIT B

WORK LETTER

As used in this Exhibit B (this “ Work Letter ”), the following terms shall have the following meanings: “ Agreement ” means the Lease of which this Work Letter is a part.  “Premises” means the Suite 500 Expansion Space only.  “ Tenant Improvements ” means all improvements to be constructed in the Premises (i.e. the Suite 500 Expansion Space) pursuant to this Work Letter.  “ Tenant Improvement Work ” means the construction of the Tenant Improvements, together with any related work (including demolition) that is necessary to construct the Tenant Improvements.

1.            COST OF TENANT IMPROVEMENT WORK .  Except as provided in Section 3.3.3 below, the Tenant Improvement Work shall be performed at Landlord’s expense.

2.            PLANS .

2.1            Approved Pricing Plan .  Landlord and Tenant acknowledge that they have approved the space plan and pricing plan (the “ Approved Pricing Plan ”) prepared by Ethos Three Architecture (the “ Architect ”), dated August 11, 2014, and attached hereto as Exhibit B-1 .  Tenant shall be responsible for ensuring that all elements of the design of the Approved Pricing Plan are suitable for Tenant’s use of the Premises, and neither the preparation of the Approved Pricing Plan by the Architect nor Landlord’s approval of the Approved Pricing Plan or Approved Construction Drawings (hereinafter defined) shall relieve Tenant from such responsibility.  Except as noted in the Approved Pricing Plan to the contrary, the Tenant Improvements shall be performed using building standard materials.

2.2            Construction Drawings .  If and to the extent deemed necessary by Landlord, or required by Law, based on the scope of the Tenant Improvement Work, Landlord shall cause the Architect to prepare and deliver to Tenant construction drawings that conform to the Approved Pricing Plan.  Tenant shall approve or disapprove the construction drawings by notice to Landlord within two (2) business days after Tenant’s receipt of the construction drawings.  If Tenant disapproves the construction drawings, Tenant’s notice of disapproval shall specify any revisions Tenant desires in the construction drawings.  After receiving such notice of disapproval, Landlord shall cause the Architect to revise the construction drawings, taking into account the reasons for Tenant’s disapproval (provided, however, that Landlord shall not be required to cause the Architect to make any revision to the construction drawings that is inconsistent with the Approved Pricing Plan or Landlord’s requirements for avoiding aesthetic, engineering or other conflicts with the design and function of the balance of the Building), and resubmit the construction drawings to Tenant for its approval.  Such revision and resubmission shall occur within 5 business days after Landlord’s receipt of Tenant’s notice of disapproval if such revision is not material, and within such longer period of time as may be reasonably necessary if such revision is material.  Such procedure shall be repeated as necessary until Tenant has approved the construction drawings; provided that if Tenant requires more than one set of revisions, the time required to prepare and obtain approval of the second and subsequent sets of revisions shall be considered to be a Tenant Delay.  The final plans approved by Landlord and Tenant for the Tenant Improvement Work (i.e. the Approved Pricing Plan or, if applicable, approved construction drawings) are referred to in this Work Letter as the “ Approved Construction Drawings ”.


2.3            Time Deadlines .  Tenant shall use its best efforts to cooperate with Landlord and its architect, engineers and other consultants to complete all phases of the plans and obtain the permits for the Tenant Improvement Work as soon as possible after the execution of this Agreement, and Tenant shall meet with Landlord, in accordance with a schedule determined by Landlord, to discuss the parties’ progress.

3.            CONSTRUCTION .

3.1            Contractor .  A contractor designated by Landlord (the “ Contractor ”) shall perform the Tenant Improvement Work.  In addition, Landlord may select and/or approve of any subcontractors, mechanics and materialmen used in connection with the performance of the Tenant Improvement Work.

3.2            Cost of Tenant Improvement Work .  Except as provided in Section 3.3.3 below, the Tenant Improvement Work shall be performed at Landlord’s expense.

3.3            Construction .

3.3.1            Over-Allowance Amount Intentionally Omitted .

3.3.2            Landlord’s Retention of Contractor .  Landlord shall independently retain the Contractor to perform the Tenant Improvement Work in accordance with the Approved Construction Drawings.

3.3.3            Revisions to Approved Construction Drawings .  If Tenant requests any revision to the Approved Pricing Plan or Approved Construction Drawings (a “ Revision ”), Landlord shall provide Tenant with notice approving or reasonably disapproving such Revision, and, if Landlord approves such Revision, Landlord shall have such Revision made and delivered to Tenant, together with notice of any resulting change in the total cost associated with the Tenant Improvement Work, within five (5) business days after the later of Landlord’s receipt of such request or the mutual execution and delivery of this Agreement if such Revision is not material, and within such longer period of time as may be reasonably necessary (but not more than ten (10) business days after the later of such receipt or such execution and delivery) if such Revision is material, whereupon Tenant, within one business day, shall notify Landlord whether it desires to proceed with such Revision.  If Landlord has commenced performance of the Tenant Improvement Work, then, in the absence of such authorization, Landlord shall have the option to continue such performance disregarding such Revision.  Subject to the Landlord Contribution (hereinafter defined), Tenant shall reimburse Landlord, immediately upon demand, for any increase in the total cost associated with the Tenant Improvement Work that results from any Revision (including the cost of preparing the Revision).  It shall be deemed reasonable for Landlord to disapprove any proposed revision to the Approved Construction Drawings that, in Landlord’s reasonable judgment, would fail to comply with law or Landlord’s requirements for avoiding aesthetic, engineering or other conflicts with the design and function of the balance of the Building.

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3.3.4            Notwithstanding anything herein to the contrary, Landlord has agreed to contribute up to $603,872.39 (the “ Landlord Contribution ”) toward the cost of the Tenant improvement Work, including: (a) the fees of the Architect and the engineers; (b) plan-check, permit and license fees relating to performance of the Tenant Improvement Work; (c) the cost of performing the Tenant Improvement Work, including after-hours charges, testing and inspection costs, freight elevator usage, hoisting and trash removal costs, and contractors’ fees and general conditions; and (d) the cost of any change to the Plans or Tenant Improvement Work required by Law.  So long as the cost of such Revisions to the Approved Pricing Plan or Approved Construction Drawings do not cause the total cost of the Tenant Improvement Work to exceed the Landlord Contribution, the cost of any Revisions shall be borne by Landlord.

3.3.5            Contractor’s Warranties .  Tenant waives all claims against Landlord relating to any latent defects in the Tenant Improvement Work.  Notwithstanding the foregoing or any contrary provision of the Lease, Landlord shall obtain a commercially reasonable one (1) year warranty from the Contractor with respect to the Tenant Improvement Work.  If, within the period covered by such warranty, Tenant provides notice to Landlord of any latent defect in the Tenant Improvements, Landlord shall, at Landlord’s expense, use reasonable efforts to enforce such right directly against the Contractor for Tenant’s benefit.

4.            COMPLETION .

4.1            Ready for Occupancy .  The Premises shall be deemed “ Ready for Occupancy ” upon the substantial completion of the Tenant Improvement Work.  Subject to Section 4.2 below, the Tenant Improvement Work shall be deemed to be “ substantially complete ” upon the completion of the Tenant Improvement Work pursuant to the Approved Construction Drawings (as reasonably determined by Landlord), with the exception of any details of construction, mechanical adjustment or any other similar matter the non-completion of which does not materially interfere with Tenant’s use of the Premises.

4.2            Tenant Delay .  If the substantial completion of the Tenant Improvement Work is delayed (a “ Tenant Delay ”) as a result of (a) Intentionally Omitted ; (b) Tenant’s failure to timely approve any matter requiring Tenant’s approval; (c) any breach by Tenant of this Work Letter or the Lease; (d) any change (or Tenant’s request for any change) in the Approved Construction Drawings (except to the extent such delay results from any failure of Landlord to comply with its obligations under Section 3.3.3 above); (e) Tenant’s requirement for materials, components, finishes or improvements that are not available in a commercially reasonable time given the anticipated date of substantial completion of the Tenant Improvement Work as set forth in this Agreement; (f) any change to the base, shell or core of the Premises or Project required by the Approved Construction Drawings; or (g) any other act or omission of Tenant or any of its agents, employees or representatives, then, notwithstanding any contrary provision of this Agreement, and regardless of when the Tenant Improvement Work is actually substantially completed, the Tenant Improvement Work shall be deemed to be substantially completed on the date on which the Tenant Improvement Work would have been substantially completed if no such Tenant Delay had occurred.

5.            MISCELLANEOUS .  Notwithstanding any contrary provision of this Agreement, if Tenant defaults under this Agreement before the Tenant Improvement Work is completed, Landlord’s obligations under this Work Letter shall be excused until such default is cured and Tenant shall be responsible for any resulting delay in the completion of the Tenant Improvement Work.  This Work Letter shall not apply to any space other than the Premises.

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EXHIBIT B-I

APPROVED PRICING PLAN



EXHIBIT C

NOTICE OF LEASE TERM DATES

______________, 20__

To:            ______________
                ______________
                ______________
                ______________

Re:            First Amendment (the “ Amendment ”), dated _________________, 20__, to a lease agreement dated May 22, 2013, between BRE/HC LAS VEGAS PROPERTY HOLDINGS, L.L.C., a Delaware limited liability company (“ Landlord ”), and RIMINI STREET, INC., a Nevada corporation (“ Tenant ”), concerning Suite 500 on the fifth (5 th ) floor of the building located at 3993 Howard Hughes Parkway, Las Vegas, Nevada (the “ Suite 500 Expansion Space ”).

Lease ID:
Business Unit Number:

Dear ________________:

In accordance with the Amendment, Tenant accepts possession of the Suite 500 Expansion Space and confirms that (a) the Suite 500 Expansion Effective Date is _________, 20__, and (b) the Extended Expiration Date is _________, 20__.

Please acknowledge the foregoing by signing all three (3) counterparts of this letter in the space provided below and returning two (2) fully executed counterparts to my attention.  Please note that, under Section 2.3 of the Amendment, Tenant is required to execute and return (or reasonably object in writing to) this letter within five (5) days after receiving it.

  Landlord ”:
     
,
   
  __________________________________________________,
 
a____________________________________________
     
 
By:
_______________________________________________________________
     
 
Name:
_______________________________________________________________
     
 
Title:
_______________________________________________________________

Agreed and Accepted as
of ________, 20__.

“Tenant”:
 
   
RIMINI STREET, INC., a Nevada corporation
 
   
By:____________________________
 
   
Name:__________________________
 
   
Title:___________________________
 

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EXHIBIT D

SAMPLE LETTER OF CREDIT

________________________
[Name of Financial Institution]

 
Irrevocable Standby
 
Letter of Credit
 
No. __________________
 
Issuance Date: _________
 
Expiration Date: ________
 
Applicant: RIMINI STREET, INC., a Nevada corporation

Beneficiary

BRE/HC LAS VEGAS PROPERTY HOLDINGS, L.L.C.
3800 Howard Hughes Parkway
Suite 150 Las Vegas, NV 89169
Attn: Property Manager

with a copy to:

BRE/HC LAS VEGAS PROPERTY HOLDINGS, L.L.C.
c/o Equity Office
Two North Riverside Plaza
Suite 2100
Chicago, IL 60606
Attn: Treasury Department

Ladies/Gentlemen:

We hereby establish our Irrevocable Standby Letter of Credit in your favor for the account of the above referenced Applicant in the amount of ______________ U.S. Dollars ($______________) available for payment at sight by your draft drawn on us when accompanied by the following documents:

1.
An original copy of this Irrevocable Standby Letter of Credit.
2.            Beneficiary’s dated statement purportedly signed by an authorized signatory or agent reading: “This draw in the amount of ______________ U.S. Dollars ($______________) under your Irrevocable Standby Letter of Credit No. ______________ represents funds due and owing to us pursuant to the terms of that certain lease by and between BRE/HC LAS VEGAS PROPERTY HOLDINGS, L.L.C., a Delaware limited liability company, as landlord, and RIMINI STREET, INC., a Nevada corporation, as tenant, and/or any amendment to the lease or any other agreement between such parties related to the lease.”


It is a condition of this Irrevocable Standby Letter of Credit that it will be considered automatically renewed for a one year period upon the expiration date set forth above and upon each anniversary of such date, unless at least 60 days prior to such expiration date or applicable anniversary thereof, we notify you in writing, by certified mail return receipt requested or by recognized overnight courier service, that we elect not to so renew this Irrevocable Standby Letter of Credit.  A copy of any such notice shall also be sent, in the same manner, to: Equity Office, 2 North Riverside Plaza, Suite 2100, Chicago, Illinois 60606, Attention: Treasury Department.  In addition to the foregoing, we understand and agree that you shall be entitled to draw upon this Irrevocable Standby Letter of Credit in accordance with 1 and 2 above in the event that we elect not to renew this Irrevocable Standby Letter of Credit and, in addition, you provide us with a dated statement purportedly signed by an authorized signatory or agent of Beneficiary stating that the Applicant has failed to provide you with an acceptable substitute irrevocable standby letter of credit in accordance with the terms of the above referenced lease.  We further acknowledge and agree that: (a) upon receipt of the documentation required herein, we will honor your draws against this Irrevocable Standby Letter of Credit without inquiry into the accuracy of Beneficiary’s signed statement and regardless of whether Applicant disputes the content of such statement; (b) this Irrevocable Standby Letter of Credit shall permit partial draws and, in the event you elect to draw upon less than the full stated amount hereof, the stated amount of this Irrevocable Standby Letter of Credit shall be automatically reduced by the amount of such partial draw; and (c) you shall be entitled to transfer your interest in this Irrevocable Standby Letter of Credit from time to time and more than one time without our approval and without charge.  In the event of a transfer, we reserve the right to require reasonable evidence of such transfer as a condition to any draw hereunder.

This Irrevocable Standby Letter of Credit is subject to the International Standby Practices (ISP98) ICC Publication No. 590.

We hereby engage with you to honor drafts and documents drawn under and in compliance with the terms of this Irrevocable Standby Letter of Credit.

All communications to us with respect to this Irrevocable Standby Letter of Credit must be addressed to our office located at _________________________________________ to the attention of ______________________.

 
Very truly yours,
   
   
   
 
[name]
   
 
[title]

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Exhibit 10.40
 
SECOND AMENDMENT

THIS SECOND AMENDMENT (this “ Amendment ”) is made and entered into as of April 3, 2017, by and between BRE/HC LAS VEGAS PROPERTY HOLDINGS, L.L.C ., a Delaware limited liability company (“ Landlord ”), and RIMINI STREET, INC., a Nevada corporation (“ Tenant ”).

RECITALS

A.
Landlord (as successor in interest to MS Crescent 3993 Hughes SPV, LLC, a Delaware limited liability company) and Tenant are parties to that certain lease dated May 22, 2013, as previously amended by the First Amendment dated October 8, 2014 (the “ First Amendment ”) (as amended, the “ Lease ”).  Pursuant to the Lease, Landlord has leased to Tenant space currently containing approximately 15,030 rentable square feet (the “ Existing Premises ”) described as Suite No. 780 on the 7th floor and Suite No. 500 on the 5th floor of the building located at 3993 Howard Hughes Parkway, Las Vegas, Nevada (the “ Building ”).

B.
The Lease will expire by its terms on December 31, 2021 (the “ Existing Expiration Date ”), and the parties wish to extend the term of the Lease on the following terms and conditions.

C.
The parties wish to (i) terminate the Lease with respect to the portion of the Existing Premises containing approximately 3,315 rentable square feet described as Suite No. 780 on the 7 th floor of the Building and originally identified as the Premises in Section 1.C of the Lease (the “ Reduction Space ”) (the Existing Premises, less the Reduction Space, is referred to herein as the “ Balance of the Existing Premises ”), and (ii) expand the Premises (defined in the Lease) to include the additional space containing approximately 11,373 rentable square feet described as Suite Nos. 530, 540 and 550 on the 5th floor of the Building and shown on Exhibit A attached hereto (the “ 2017 Expansion Space ”), all on the following terms and conditions.

NOW, THEREFORE , in consideration of the above recitals which by this reference are incorporated herein, the mutual covenants and conditions contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows:

1.
Extension .  The term of the Lease is hereby extended through the last day of the 66 th full calendar month beginning on or after the 2017 Expansion Effective Date (defined in Section 2.2.A below) (the “ Second Extended Expiration Date ”).  The portion of the term of the Lease beginning on the date immediately following the Existing Expiration Date (the “ Second Extension Date ”) and ending on the Second Extended Expiration Date shall be referred to herein as the “ Second Extended Term ”.



2.
Reduction and 2017 Expansion .

2.1
Reduction .

A.
Reduction Space Expiration Date .  Subject to the terms hereof, the term of the Lease shall expire, with respect to the Reduction Space only, on the date occurring 21 days after the mutual execution and delivery of this Amendment (the “ Reduction Space Expiration Date ”) with the same force and effect as if such term were, by the provisions of the Lease, fixed to expire with respect to the Reduction Space on the Reduction Space Expiration Date (the “ Reduction ”).  Without limiting the foregoing:

1.
Tenant shall surrender the Reduction Space to Landlord in accordance with the terms of the Lease on or before the Reduction Space Expiration Date.

2.
Tenant shall remain liable for all Rent and other amounts payable under the Lease with respect to the Reduction Space for the period up to and including the Reduction Space Expiration Date, even though billings for such amounts may occur after the Reduction Space Expiration Date.

3.
Tenant’s restoration obligations with respect to the Reduction Space shall be as set forth in the Lease.

4.
If Tenant fails to surrender any portion of the Reduction Space on or before the Reduction Space Expiration Date, Tenant’s tenancy with respect to the Reduction Space shall be subject to Article 24 of the Lease.

5.
Any other rights or obligations of Landlord or Tenant under the Lease relating to the Reduction Space that, in the absence of the Reduction, would have survived the expiration date of the Lease shall survive the Reduction Space Expiration Date.

B.
Reduction Space During 2017 .  Notwithstanding any contrary provision of this Amendment or the Lease, during the period beginning (retroactively) on January 1, 2017 and ending on the Reduction Space Expiration Date, (i) Tenant shall not be required to pay Base Rent or Tenant’s Pro Rata Share of Operating Expenses with respect to the Reduction Space, and (ii) Tenant shall not be permitted to use the Reduction Space for the operation of its business (as distinguished from the storage of its furniture, fixtures and equipment and the performance of its restoration and surrender obligations under the Lease).  All amounts paid by Tenant before the date of mutual execution and delivery of this Amendment in respect of Base Rent and/or Tenant’s Pro Rata Share of Operating Expenses for the Reduction Space for any period following December 31, 2016 shall be credited, until exhausted, toward the installments of Base Rent and Tenant’s Pro Rata Share of Operating Expenses that (a) are payable for the Balance of the Existing Premises under the Lease, as amended hereby, and (b) next come due after the date of mutual execution and delivery of this Amendment.

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2.2
2017 Expansion .  From and after the 2017 Expansion Effective Date (defined in Section 2.2.A below), the Premises shall be, collectively, the Balance of the Existing Premises and the 2017 Expansion Space, subject to the terms hereof.  The term of the Lease for the 2017 Expansion Space (the “ 2017 Expansion Term ”) shall commence on the 2017 Expansion Effective Date and, unless sooner terminated in accordance with the Lease, end on the Second Extended Expiration Date.  From and after the 2017 Expansion Effective Date, the 2017 Expansion Space shall be subject to all the terms and conditions of the Lease except as provided herein.  Except as may be expressly provided herein, (a) Tenant shall not be entitled to receive, with respect to the 2017 Expansion Space, any allowance, free rent or other financial concession granted with respect to the Existing Premises, and (b) no representation or warranty made by Landlord with respect to the Existing Premises shall apply to the 2017 Expansion Space.  From and after the 2017 Expansion Effective Date, the Balance of the Existing Premises and the 2017 Expansion Space shall be known collectively as “Suite 500”.

A.
2017 Expansion Effective Date .  As used herein, “ 2017 Expansion Effective Date ” means the earlier to occur of (i) the date on which Tenant first conducts business in the 2017 Expansion Space, or (ii) the date on which the Tenant Improvement Work (defined in Exhibit B attached hereto) is Substantially Complete (defined in Exhibit B attached hereto), which is anticipated to be September 1, 2017 (the “ Target 2017 Expansion Effective Date ”).  The adjustment of the 2017 Expansion Effective Date and, accordingly, the postponement of Tenant’s obligation to pay rent for the 2017 Expansion Space shall be Tenant’s sole remedy if the Tenant Improvement Work is not Substantially Complete on the Target 2017 Expansion Effective Date.

B.
Confirmation Letter .  At any time after the 2017 Expansion Effective Date, Landlord may deliver to Tenant a notice substantially in the form of Exhibit C attached hereto, as a confirmation of the information set forth therein.  Tenant shall execute and return (or, by written notice to Landlord, reasonably object to) such notice within five (5) business days after receiving it.

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3.
Base Rent .

3.1
2017 Expansion Space During 2017 Expansion Term .  With respect to the 2017 Expansion Space during the 2017 Expansion Term, the schedule of Base Rent shall be as follows:

Period During 2017 Expansion Term
Annual Rate Per Square Foot (rounded to the nearest 100 th of a dollar)
Monthly Base Rent
2017 Expansion Effective Date through last day of 12 th full calendar month of 2017 Expansion Term
$36.60
$34,687.65
13 th through 24 th full calendar months of 2017 Expansion Term
$37.70
$35,730.18
25 th through 36 th full calendar months of 2017 Expansion Term
$38.83
$36,801.13
37 th through 48 th full calendar months of 2017 Expansion Term
$39.99
$37,900.52
49 th through 60 th full calendar months of 2017 Expansion Term
$41.19
$39,037.82
61 st full calendar month of 2017 Expansion Term through last day of 2017 Expansion Term
$42.43
$40,213.03

All such Base Rent shall be payable by Tenant in accordance with the terms of the Lease.

Notwithstanding the foregoing, Base Rent for the 2017 Expansion Space shall be abated, in the amount of $34,687.65 per month, for the first six (6) full calendar months of the 2017 Expansion Term; provided, however, that a default by Tenant beyond any applicable cure period exists when any such abatement would otherwise apply, such abatement shall be deferred until the date, if any, on which such default is cured.

3.2
Balance of the Existing Premises During Second Extended Term .  With respect to the Balance of the Existing Premises during the Second Extended Term, the schedule of Base Rent shall be as follows:


Period of Second Extended Term
Annual Rate Per Square Foot (rounded to the nearest 100 th of a dollar)
Monthly Base Rent
Second Extension Date through last day of Second Extended Term
$42.43
$41,422.29
 
All such Base Rent shall be payable by Tenant in accordance with the terms of the Lease.

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4.
Security Deposit; Letter of Credit .  No increase in the amount of the Security Deposit or the Letter of Credit shall be required in connection with this Amendment.  However, Section 4.2.F of the First Amendment (providing for a reduction in the Letter of Credit Amount under certain circumstances) is hereby deleted in its entirety from the Lease.  Accordingly, and for the avoidance of doubt, (a) the amount of the Security Deposit required under Article 6 of the Lease on the date hereof and through the balance of the term of the Lease is and shall be $9,613.50, and (b) the amount of the Letter of Credit required under Section 4.2 of the First Amendment on the date hereof and through the balance of the term of the Lease is and shall be $203,841,00.

5.
Tenant’s Pro Rata Share .

5.1
2017 Expansion Space During 2017 Expansion Term .  With respect to the 2017 Expansion Space during the 2017 Expansion Term, Tenant’s Pro Rata Share shall be 6.3695% (as determined after giving effect to Section 9.1 below).

5.2
Balance of the Existing Premises .  With respect to the Balance of the Existing Premises during the Second Extended Term, Tenant’s Pro Rata Share shall be 6.5610% (as determined after giving effect to Section 9.1 below).

6.
Operating Expenses .

6.1
2017 Expansion Space During 2017 Expansion Term .  With respect to the 2017 Expansion Space during the 2017 Expansion Term, Tenant shall pay for Tenant’s Pro Rata Share of Operating Expenses in accordance with the terms of the Lease; provided, however, that, with respect to the 2017 Expansion Space during the 2017 Expansion Term, the Base Year for Operating Expenses shall be 2017.

6.2
Balance of the Existing Premises During Second Extended Term .  With respect to the Balance of the Existing Premises during the Second Extended Term, Tenant shall pay for Tenant’s Pro Rata Share of Operating Expenses in accordance with the terms of the Lease; provided, however, that, with respect to the Balance of the Existing Premises during the Second Extended Term, the Base Year for Operating Expenses shall be 2017.

7.
Improvements to Balance of the Existing Premises and 2017 Expansion Space .

7.1
Condition and Configuration of Balance of the Existing Premises and 2017 Expansion Space .  Tenant acknowledges that it is in possession of the Balance of the Existing Premises and that it has inspected the 2017 Expansion Space, and agrees to accept each such space in its existing condition and configuration (or, in the case of the 2017 Expansion Space, in such other condition and configuration as any existing tenant of the 2017 Expansion Space may cause to exist in accordance with its lease), without any representation by Landlord regarding its condition or configuration and without any obligation on the part of Landlord to perform or pay for any alteration or improvement, except as may be otherwise expressly provided in this Amendment.

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7.2
Responsibility for Improvements to Balance of the Existing Premises and 2017 Expansion Space .  Landlord shall perform improvements to the Balance of the Existing Premises and the 2017 Expansion Space in accordance with Exhibit B attached hereto.

8.
Representations .  Tenant represents and warrants that, as of the date hereof and the Reduction Space Expiration Date: (a) Tenant is the rightful owner of all of the Tenant’s interest in the Lease, and (b) Tenant has not subleased the Reduction Space or made any disposition, assignment or-conveyance of the Lease or Tenant’s interest therein.

9.
Other Pertinent Provisions .  Landlord and Tenant agree that, effective as of the date of this Amendment (unless different effective date(s) is/are specifically referenced in this Section), the Lease shall be amended in the following additional respects:

9.1
Re-measurement of Building .  Landlord and Tenant acknowledge and agree that (a) Landlord has re-measured the Building and that, according to such re-measurement, the rentable area of the Building is 178,555 square feet, and (b) from and after the 2017 Expansion Effective Date, the rentable square footage of the Building shall be deemed to be the square footage set forth in the preceding clause (a).

9.2
Early Entry .  Tenant may enter the 2017 Expansion Space on the date that Landlord reasonably estimates will be 21 days before the 2017 Expansion Effective Date, solely for the purpose of installing equipment, furnishings and other personal property (including telecommunications and data cabling) in the 2017 Expansion Space.  Other than the obligation to pay Base Rent and Tenant’s Pro Rata Share of Operating Expenses for the 2017 Expansion Space, all of Tenant’s obligations hereunder shall apply during any period of such early entry.  Notwithstanding the foregoing, Landlord may limit, suspend or terminate Tenant’s rights to enter the 2017 Expansion Space pursuant to this Section 9.2 if Landlord reasonably determines that such entry is endangering individuals working in the 2017 Expansion Space or is delaying completion of the Tenant Improvement Work (defined in Exhibit B ).

9.3
Parking .

A.
Reduction Space .  From and after the date immediately following the Reduction Space Expiration Date, Tenant shall no longer have any right to use the parking spaces described in the second and third sentences of Section 1 of Exhibit E to the Lease (consisting of (a) two (2) parking spaces in the reserved covered portion of the Parking Structure, (b) four (4) parking spaces in the unreserved covered portion of the Parking Structure, and (c) two (2) parking spaces in the unreserved, rooftop, uncovered portion of the Parking Structure).

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B.
2017 Expansion Space .  During the 2017 Expansion Term, Tenant shall retain its parking rights as provided in the Lease (as amended by Section 9.3.A above) and, in addition thereto, shall be entitled to use (a) 45 parking spaces in the unreserved covered portion of the Parking Structure, and (b) 23 parking spaces in the unreserved uncovered portion of the Parking Structure.  Tenant’s use of such additional parking spaces shall be subject to Exhibit E to the Lease; provided, however, that the Parking Fees for 22 of such additional unreserved covered spaces and 11 of such additional unreserved uncovered spaces shall be (i) 50% of Landlord’s then current rate during the first 12 months of the 2017 Expansion Term, and (ii) 75% of Landlord’s then current rate during the second 12 months of the 2017 Expansion Term.

9.4
Option to Extend .  Tenant shall retain its existing one (1) renewal period for five (5) years as set forth in RIDER NO. 1, “OPTION TO EXTEND” of the Lease; provided, however, that all references therein to “Extended Term” shall be deleted and “Second Extended Term” shall be substituted therefor.

9.5
Deleted Provisions .  The following provisions are hereby deleted in their entirety from the Lease: (a) Section 3.D of the Lease, entitled “Early Termination,” and (b) Section 10 of the First Amendment, entitled “Right of First Offer.”

9.6
Discounted Hourly HVAC Charge .  The Discounted Hourly HVAC Charge per calendar year set forth in Section 7.A(2) of the Lease shall apply (a) to the 2017 Expansion Space during the 2017 Expansion Term, and (b) to the Balance of the Existing Premises during the Second Extended Term.

9.7
Base Year Operating Expenses .  Notwithstanding any contrary provision of the Lease, (a) Operating Expenses shall exclude any capital expenditure that is incurred during or before the Base Year; and (b) Operating Expenses for the Base Year shall exclude (i) any market-wide cost increase resulting from extraordinary circumstances, and (ii) at Landlord’s option, the cost of any repair or replacement that is made necessary by a fire or other casualty; provided, however, that if (x) any amounts of a given type (as determined in good faith by Landlord) that would otherwise be included in Operating Expenses for the Base Year are excluded from such Operating Expenses pursuant to the preceding clause (b) (collectively, an “ Excluded Base Year Amount ”), and (y) any amounts of the same type (as determined in good faith by Landlord) are incurred in, and would otherwise be included in Operating Expenses for, any calendar year following the Base Year, then such amounts incurred in such calendar year shall be included in Operating Expenses for such calendar year only to the extent, if any, that they collectively exceed such Excluded Base Year Amount.

9.8
Compliance with Law .  If, as a result of Tenant’s performance of any work (including any alteration, repair or maintenance), Landlord becomes required under Law to perform any inspection, give any notice, or cause such work to be performed in any particular manner, Tenant shall comply with such requirement and promptly provide Landlord with reasonable documentation of such compliance.  If a change to any common area, the Building structure, or any Building system located outside of and not exclusively serving the Premises becomes required under Law (or if any such requirement is enforced) as a result of any improvement or alteration of the Premises, or as a result of any particular use of the Premises (as distinguished from general office use), then Tenant, upon demand, shall (x) at Landlord’s option, either make such change at Tenant’s cost or pay Landlord the cost of making such change, and (y) pay Landlord a coordination fee equal to 5% of the cost of such change.

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9.9
Indemnity Section 13 of the Lease is hereby amended in its entirety to read as follows:

Tenant shall indemnify, defend, protect, and hold Landlord, its Mortgagee(s) (defined in Article 25 ), Landlord’s managing agent(s), their (direct or indirect) owners, and the beneficiaries, trustees, officers, directors, employees and agents of each of the foregoing (including Landlord, collectively, the “ Landlord Parties ”) harmless from any obligation, loss, claim, action, liability, penalty, damage, cost or expense (including reasonable attorneys’ and consultants’ fees and expenses) (each, a “ Claim ”) that is imposed or asserted by any third party and arises from any negligence, willful misconduct or breach of this Lease of or by Tenant, any subtenant or licensee of Tenant, their (direct or indirect) owners, or any of their respective beneficiaries, trustees, officers, directors, employees, agents, contractors, licensees or invitees (each, an “ Act of Tenant ”), except to the extent such Claim arises from any negligence, willful misconduct or breach of this Lease of or by any Landlord Party or any contractor of any Landlord Party (each, an “ Act of Landlord ”).  Landlord shall indemnify, defend, protect, and hold Tenant, its (direct or indirect) owners, and their respective beneficiaries, trustees, officers, directors, employees and agents (including Tenant, collectively, the “ Tenant Parties ”) harmless from any Claim that is imposed or asserted by any third party and arises from any Act of Landlord, except to the extent such Claim arises from any Act of Tenant.

9.10
[Intentionally Omitted.]

9.11
Waiver of Subrogation .  For purposes of Section 15 of the Lease, (a) any deductible with respect to a party’s insurance shall be deemed covered by, and recoverable by such party under, valid and collectable policies of insurance, and (b) any contractor retained by Landlord to install, maintain or monitor a fire or security alarm for the Building shall be deemed a Landlord Party.

9.12
Building Name .  Tenant shall not (a) use any name of the Building or the project of which the Building is a part (the “ Project ”) for any purpose other than (i) to identify the address of the business to be conducted by Tenant in the Premises, and (ii) with the symbol “®”; (b) use any image of the Building or Project (i) in any advertising or other publicity without Landlord’s prior consent (which shall not be unreasonably withheld), or (ii) for any purpose other than to identify the address of the business to be conducted by Tenant in the Premises; or (c) use any name or image of the Building or Project as part of the name of Tenant’s business or in any manner that would infringe any trade name, trade mark, copyright or similar right of Landlord or any third party in or to any name or image of the Building or Project.  Without limiting the foregoing, Tenant shall not, in any signage displayed at the Building or Project, on its website, or in any other advertising or promotional material, identify, describe, or refer to itself or its business as “[Tenant’s name or trade name] [name of Building or Project]” or “[Tenant’s name or trade name] At [name of Building or Project].”

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9.13
Address of Landlord .  Effective as of the date hereof, Landlord’s Notice Address is the following:

BRE/HC LAS VEGAS PROPERTY HOLDINGS, L.L.C.
3800 Howard Hughes Parkway, Suite 140
Las Vegas, NV 89169
Attn: Property Manager

with copies to :

BRE/HC LAS VEGAS PROPERTY HOLDINGS, L.L.C.
c/o Equity Office
1810 Gateway Drive, Suite 230
San Mateo, CA 94404
Attn:  Managing Counsel

and

Equity Office
222 S. Riverside Plaza, Suite 2000
Chicago, IL 60606-6115
Attn:  Lease Administration

10.
Right of First Offer .

10.1
Grant of Option; Conditions .

A.
Subject to the terms of this Section 10 , Tenant shall have a right of first offer (“ Right of First Offer ”) with respect to the entirety (and each portion) of the rentable area on the fourth (4 th ) floor of the Building (such area or portion thereof; a “ Potential Offering Space ”).  Tenant’s Right of First Offer shall be exercised as follows: At any time after Landlord has determined that a Potential Offering Space has become Available (defined below), but before leasing such Potential Offering Space to a third party, Landlord, subject to the terms of this Section 10 shall provide Tenant with a written notice (for purposes of this Section 10 , an “ Advice ”) advising Tenant of the material terms on which Landlord is prepared to lease such Potential Offering Space (sometimes referred to herein as an “ Offering Space ”) to Tenant, which terms shall be consistent with Section 10.2 below.  For purposes hereof, a Potential Offering Space shall be deemed to become “ Available ” as follows: (i) if such Potential Offering Space is not leased to a third party as of the date of mutual execution and delivery of this Amendment, such Potential Offering Space shall be deemed to become Available when Landlord has located a prospective tenant that may be interested in leasing such Potential Offering Space; and (ii) if such Potential Offering Space is leased to a third party tenant as of, or at any time after, the date of mutual execution and delivery of this Amendment, such Potential Offering Space shall be deemed to become Available when Landlord has determined that such third-party tenant, and any occupant of such Potential Offering Space claiming under such third-party tenant, will not extend or renew the term of its lease, or enter into a new lease, for such Potential Offering Space.  Upon receiving an Advice, Tenant may lease the Offering Space, in its entirety only, on the terms set forth in the Advice, by delivering to Landlord a written notice (for purposes of this Section 10 , a “ Notice of Exercise ”) within seven (7) business days after receiving the Advice.

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B.
If Tenant receives an Advice but does not deliver a Notice of Exercise within the period of time required under Section 10.1.A above, Landlord may lease the Offering Space to any party on any terms determined by Landlord in its sole and absolute discretion.

C.
Notwithstanding any contrary provision hereof; (i) Landlord shall not be required to provide Tenant with an Advice if any of the following conditions exists when Landlord would otherwise deliver the Advice; and (ii) if Tenant receives an Advice from Landlord, Tenant shall not be entitled to lease the Offering Space based on such Advice if any of the following conditions exists:

(1)
a default beyond any applicable cure period exists;

(2)
all or any portion of the Premises is sublet (other than pursuant to a Permitted Transfer); or

(3)
the Lease has been assigned (other than pursuant to a Permitted Transfer); or

If, by operation of the preceding sentence, Landlord is not required to provide Tenant with an Advice, or Tenant, after receiving an Advice, is not entitled to lease the Offering Space based on such Advice, then Landlord may lease the Offering Space to any party on any terms determined by Landlord in its sole and absolute discretion.

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10.2
Terms for Offering Space .

A.
The term for the Offering Space shall be the longer of (i) coterminous with the term for the balance of the Premises, or (ii) 60 calendar months (together with any partial calendar month occurring at the beginning of such 60-calendar-month period).  The Option to Extend set forth in Rider I to the Lease shall not apply to the Offering Space unless the term of the Offering Space is coterminous with the term for the balance of the Premises.

B.
The term for the Offering Space shall commence on the commencement date stated in the Advice and thereupon the Offering Space shall be considered a part of the Premises subject to the provisions of the Lease; provided, however, that the provisions of the Advice (including the provision of the Advice establishing the expiration date for the Offering Space) shall prevail to the extent they conflict with the provisions of the Lease.

C.
Tenant shall pay Base Rent and Tenant’s Pro Rata Share of Operating Expenses for the Offering Space in accordance with the provisions of the Advice, which shall reflect the Prevailing Market (defined in Section 10.5 below) rate for the Offering Space as determined in Landlord’s reasonable judgment.

D.
Except as may be otherwise provided in the Advice, (i) the Offering Space shall be accepted by Tenant in its configuration and condition existing when Landlord tenders possession of the Offering Space to Tenant, without any obligation on the part of Landlord to perform or pay for any alterations or improvements thereto; and (ii) if Landlord is delayed in delivering possession of the Offering Space by any holdover or unlawful possession of the Offering Space by any party, Landlord shall use reasonable efforts to obtain possession of the Offering Space and any obligation of Landlord to tender possession of, permit entry to, or perform alterations to the Offering Space shall be deferred until after Landlord has obtained possession of the Offering Space.

10.3
Termination of Right of First Offer; Ongoing Right .

A.
Notwithstanding any contrary provision hereof, Landlord shall not be required to provide Tenant with an Advice, and Tenant shall not be entitled to exercise its Right of First Offer, after the expiration or earlier termination of the Lease.

B.
If Landlord leases a Potential Offering Space to a third party as permitted under Section 10.1 above and subsequently determines that such Potential Offering Space has again become Available, then the provisions of this Section 10 shall apply again to such Potential Offering Space.

10.4
Offering Amendment .  If Tenant validly exercises its Right of First Offer, Landlord, within a reasonable period of time thereafter, shall prepare and deliver to Tenant an amendment (the “ Offering Amendment ”) adding the Offering Space to the Premises on the terms set forth in the Advice and reflecting the changes in the Base Rent, the rentable square footage of the Premises, Tenant’s Pro Rata Share, and other appropriate terms in accordance with this Section 10 .  Tenant shall execute and return the Offering Amendment to Landlord within 15 days after receiving it, but an otherwise valid exercise of the Right of First Offer shall be fully effective whether or not the Offering Amendment is executed.

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10.5
Definition of Prevailing Market .  For purposes of this Section 10 Prevailing Market ” means the arms-length, fair-market, annual rental rate per rentable square foot, under renewal and expansion leases and amendments entered into on or about the date on which the Prevailing Market is being determined hereunder, for space comparable to the Offering Space in the Building and office buildings comparable to the Building in the Las Vegas, Nevada area.  The determination of Prevailing Market shall take into account (i) any material economic differences between the terms of the Lease and any comparison lease or amendment, such as rent abatements, construction costs and other concessions, and the manner, if any, in which the landlord under any such lease is reimbursed for operating expenses and taxes; and (ii) any material differences in configuration or condition between the Offering Space and any comparison space.

10.6
[Intentionally Omitted.]

10.7
Subordination .  Notwithstanding any contrary provision hereof, Tenant’s Right of First Offer shall be subject and subordinate to the expansion rights (whether such rights are designated as a right of first offer, right of first refusal, expansion option or otherwise) of any tenant of the Building existing on the date hereof.

11.
Miscellaneous .

11.1
This Amendment and the attached exhibits, which are hereby incorporated into and made a part of this Amendment, set forth the entire agreement between the parties with respect to the matters set forth herein.There have been no additional oral or written representations or agreements.  Tenant shall not be entitled, in connection with entering into this Amendment, to any free rent, allowance, alteration, improvement or similar economic incentive to which Tenant may have been entitled in connection with entering into the Lease, except as may be otherwise expressly provided in this Amendment.

11.2
Except as herein modified or amended, the provisions, conditions and terms of the Lease shall remain unchanged and in full force and effect.

11.3
In the case of any inconsistency between the provisions of the Lease and this Amendment, the provisions of this Amendment shall govern and control.

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11.4
Submission of this Amendment by Landlord is not an offer to enter into this Amendment but rather is a solicitation for such an offer by Tenant.  Neither party shall be bound by this Amendment until it has been executed and delivered by both parties.

11.5
Capitalized terms used but not defined in this Amendment shall have the meanings given in the Lease.

11.6
Tenant shall indemnify and hold Landlord, its trustees, members, principals, beneficiaries, partners, officers, directors, employees, mortgagee(s) and agents, and the respective principals and members of any such agents harmless from all claims of any brokers (other than Colliers Nevada LLC, a Nevada limited liability company) claiming to have represented Tenant in connection with this Amendment.  Landlord shall indemnify and hold Tenant, its trustees, members, principals, beneficiaries, partners, officers, directors, employees, and agents, and the respective principals and members of any such agents harmless from all claims of any brokers claiming to have represented Landlord in connection with this Amendment.  Tenant acknowledges that any assistance rendered by any agent or employee of any affiliate of Landlord in connection with this Amendment has been made as an accommodation to Tenant solely in furtherance of consummating the transaction on behalf of Landlord, and not as agent for Tenant.

[SIGNATURES ARE ON FOLLOWING PAGE]

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IN WITNESS WHEREOF , Landlord and Tenant have duly executed this Amendment as of the day and year first above written.

LANDLORD:
 
 
BRE/HC LAS VEGAS PROPERTY HOLDINGS, L.L.C.,
 
a Delaware limited liability company
     
 
By:
/s/ John Woo
     
 
Name:  
John Woo
     
 
Title:
VP Portfolio Management
     
 
TENANT:
     
 
RIMINI STREET, INC.,
 
a Nevada corporation
     
 
By:
/s/ Thomas Shay
     
 
Name:
Thomas Shay
     
 
Title:
SVP and CIO


EXHIBIT A

OUTLINE AND LOCATION OF 2017 EXPANSION SPACE

See Attached



EXHIBIT B

WORK LETTER

As used in this Exhibit B (this “ Work Letter ”), the following terms shall have the following meanings:

(i)
Premises ” means the Balance of the Existing Premises and 2017 Expansion Space;

(ii)
Tenant Improvements ” means all improvements to be constructed in the Premises pursuant to this Work Letter; and

(iii)
Tenant Improvement Work ” means the construction of the Tenant Improvements, together with any related work (including demolition) that is necessary to construct the Tenant Improvements.

1.
ALLOWANCE .

1.1            Allowance .  Tenant shall be entitled to a one-time tenant improvement allowance (the “ Allowance ”) in the amount of $618,085.00 to be applied toward the Allowance Items (defined in Section 1.2 below).  Tenant shall be responsible for all costs associated with the Tenant Improvement Work, including the costs of the Allowance Items, to the extent such costs exceed the lesser of (a) the Allowance, or (b) the aggregate amount that Landlord is required to disburse for such purpose pursuant to this Work Letter.

1.2            Disbursement .  Except as otherwise provided in this Work Letter, the Allowance shall be disbursed by Landlord only for the following items (the “Allowance Items”): (a) the fees of the Architect (defined in Section 2.1 below); (b) the cost of preparing the Engineering Drawings (defined in Section 3.2 below); (c) plan-check, permit and license fees relating to performance of the Tenant Improvement Work; (d) the cost of performing the Tenant Improvement Work, including after-hours charges, testing and inspection costs, freight elevator usage, hoisting and trash removal costs, and contractors’ fees and general conditions; (e) the cost of any change to the base, shell or core of the Premises or Building required by the Approved Plans (defined in Section 2.7 below) (including if such change is due to the fact that such work is prepared on an unoccupied basis), including all direct architectural and/or engineering fees and expenses incurred in connection therewith; (f) the cost of any change to the Approved Plans or the Tenant Improvement Work required by Law; (g) the Landlord Supervision Fee (defined in Section 3.4.1 below); (h) sales and use taxes; and (i) all other costs expended by Landlord in connection with the performance of the Tenant Improvement Work.

1.3            Disbursement for Other Allowance Items .  If any portion of the Allowance remains unused after all Allowance Items have been fully paid, then, upon Tenant’s request, and subject to Section 1.4 below, Landlord shall disburse the Allowance to Tenant to pay the reasonable costs of relocating and installing in the Premises Tenant’s furniture, fixtures, equipment, data and telecommunications cabling, and other personal property, within 30 days after receiving paid invoices from Tenant with respect to such costs (the “ Other Allowance Items ”).  Tenant shall be responsible for all costs of the Other Allowance Items to the extent such costs exceed the aggregate amount that Landlord is required to disburse for such purpose pursuant to this Work Letter.



1.4            Deadline for Use of Allowance .  Notwithstanding any contrary provision of this Amendment, if, for any reason other than a breach by Landlord of its obligations under this Amendment or a failure of Landlord to use good faith efforts to complete the Tenant Improvement Work in a timely manner, the entire Allowance is not used by December 31, 2017, then the unused amount shall revert to Landlord and Tenant shall have no further rights with respect thereto.

2.
ARCHITECTURAL PLANS; PRICING .

2.1            Selection of Architect .  Landlord shall retain Ethos 3 or another architect/space planner of Landlord’s choice (the “ Architect ”) to prepare the Architectural Drawings (defined in Section 2.5 below).

2.2            [Intentionally Omitted.]

2.3            Approved Space Plan .  Landlord and Tenant acknowledge that they have approved the scope of work described in the space plan with pricing notes for the Premises dated January 19, 2017 prepared by Ethos Three Architecture, excluding any provision thereof that is inconsistent with any provision of this Amendment (the “ Approved Space Plan ”).

2.4            Additional Programming Information .  Tenant shall deliver to Landlord, in writing, all information (including all interior and special finishes) that, when combined with the Approved Space Plan, will be sufficient to complete the Architectural Drawings, together with all information (including all electrical requirements, telephone requirements, special HVAC requirements, and plumbing requirements) that, when combined with the Approved Space Plan, will be sufficient to complete the Engineering Drawings (collectively, the “ Additional Programming Information ”).  The Additional Programming Information shall be (a) consistent with the Approved Space Plan, (b) consistent with Landlord’s requirements for avoiding aesthetic, engineering or other conflicts with the design and function of the balance of the Building (collectively, the “ Landlord Requirements ”), and (c) otherwise subject to Landlord’s reasonable approval.  Landlord shall provide Tenant with notice approving or reasonably disapproving the Additional Programming Information within five (5) business days after the later of Landlord’s receipt thereof or the mutual execution and delivery of this Amendment.  If Landlord disapproves the Additional Programming Information, Landlord’s notice of disapproval shall describe with reasonable specificity the basis for such disapproval and Tenant shall modify the Additional Programming Information and resubmit it for Landlord’s approval.  Such procedure shall be repeated as necessary until Landlord has approved the Additional Programming Information.  Such approved Additional Programming Information shall be referred to herein as the “ Approved Additional Programming Information .” If requested by Tenant, Landlord, in its sole and absolute discretion, may assist Tenant, or cause the Architect and/or other contractors or consultants of Landlord to assist Tenant, in preparing all or a portion of the Additional Programming Information; provided, however, that, whether or not the Additional Programming Information is prepared with such assistance, Tenant shall be solely responsible for the timely preparation and delivery of the Additional Programming Information and for all elements thereof and, subject to Section 1 above, all costs relating thereto.

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2.5            Architectural Drawings .  After approving the Additional Programming Information, Landlord shall cause the Architect to prepare and deliver to Tenant the final architectural (and, if applicable, structural) working drawings for the Tenant Improvement Work that are in a form that (a) when combined with any programming information that is contained in the Approved Space Plan or the Approved Additional Programming Information but not expressly incorporated into such working drawings, will be sufficient to enable the Contractor (defined in Section 3.1 below) and its subcontractors to bid on the Tenant Improvement Work, and (b) when combined with any Approved Engineering Drawings (defined in Section 3.2 below), will be sufficient to obtain the Permits (defined in Section 3.3 below) (the “ Architectural Drawings ”).  The Architectural Drawings shall conform to the Approved Space Plan and the Approved Additional Programming Information.  The Architect’s preparation and delivery of the Architectural Drawings shall occur within 20 business days after the later of Landlord’s approval of the Additional Programming Information or the mutual execution and delivery of this Amendment.  Tenant shall approve or disapprove the Architectural Drawings by notice to Landlord.  If Tenant disapproves the Architectural Drawings, Tenant’s notice of disapproval shall specify any revisions Tenant desires in the Architectural Drawings.  After receiving such notice of disapproval, Landlord shall cause the Architect to revise the Architectural Drawings and resubmit them to Tenant, taking into account the reasons for Tenant’s disapproval; provided, however, that Landlord shall not be required to cause the Architect to make any revision to the Architectural Drawings that conflicts with the Landlord Requirements or is otherwise reasonably disapproved by Landlord.  Such revision and resubmission shall occur within five (5) business days after the later of Landlord’s receipt of Tenant’s notice of disapproval or the mutual execution and delivery of this Amendment if such revision is not material, and within such longer period of time as may be reasonably necessary (but not more than 15 business days after the later of such receipt or such mutual execution and delivery) if such revision is material.  Such procedure shall be repeated as necessary until Tenant has approved the Architectural Drawings.  Such approved Architectural Drawings shall be referred to herein as the “ Approved Architectural Drawings .”

 
2.6
Construction Pricing .

2.6.1            Construction Pricing Proposal .  Within 15 business days after the Architectural Drawings are approved by Landlord and Tenant, Landlord shall provide Tenant with Landlord’s reasonable estimate (the “ Construction Pricing Proposal ”) of the cost of all Allowance Items to be incurred by Tenant in connection with the performance of the Tenant Improvement Work pursuant to the Approved Architectural Drawings and the Approved Additional Programming Information.  Tenant shall provide Landlord with notice approving or disapproving the Construction Pricing Proposal.  If Tenant disapproves the Construction Pricing Proposal, Tenant’s notice of disapproval shall be accompanied by proposed revisions to the Approved Architectural Drawings and/or the Approved Additional Programming Information that Tenant requests in order to resolve its objections to the Construction Pricing Proposal, and Landlord shall respond as required under Section 2.7 below.  Such procedure shall be repeated as necessary until the Construction Pricing Proposal is approved by Tenant.  Upon Tenant’s approval of the Construction Pricing Proposal, Landlord may purchase the items set forth in the Construction Pricing Proposal and begin construction relating to such items.

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2.6.2            Over-Allowance Amount .  If the Construction Pricing Proposal exceeds the Allowance, then Tenant, concurrently with its delivery to Landlord of its approval of the Construction Pricing Proposal, shall deliver to Landlord cash in the amount of such excess (the “ Over-Allowance Amount ”).  Any Over-Allowance Amount shall be disbursed by Landlord before the Allowance and pursuant to the same procedure as the Allowance.  If, after the Construction Pricing Proposal is approved by Tenant, (a) any revision is made to the Approved Additional Programming Information or the Approved Architectural Drawings or the Tenant Improvement Work is otherwise changed, in each case in a way that increases the Construction Pricing Proposal, or (b) the Construction Pricing Proposal is otherwise increased to reflect the actual cost of all Allowance Items to be incurred by Tenant in connection with the performance of the Tenant Improvement Work pursuant to the terms hereof, then Tenant shall deliver any resulting Over-Allowance Amount (or any resulting increase in the Over-Allowance Amount) to Landlord immediately upon Landlord’s request.

2.7            Revisions .  If Tenant requests any revision to the Approved Space Plan, the Approved Additional Programming Information, the Approved Architectural Drawings, or the Approved Engineering Drawings (defined in Section 3.2 below) (collectively, the “ Approved Plans ”), Landlord shall provide Tenant with notice approving or reasonably disapproving such revision, and, if Landlord approves such revision, Landlord shall deliver to Tenant notice of any resulting change in the most recent Construction Pricing Proposal, if any (together with a copy of the revision itself, except in the case of the Approved Additional Programming Information), within five (5) (or, in the case of the Approved Architectural Drawings or the Approved Engineering Drawings, 15) business days after the later of Landlord’s receipt of such request or the mutual execution and delivery of this Amendment, whereupon Tenant, within one (1) business day, shall notify Landlord whether it desires to proceed with such revision.  If Landlord has begun performing the Tenant Improvement Work, then, in the absence of such authorization, Landlord shall have the option to continue such performance disregarding such revision.  Without limitation, it shall be deemed reasonable for Landlord to disapprove any such proposed revision that conflicts with the Landlord Requirements.  Landlord shall not revise the Approved Plans without Tenant’s consent, which shall not be unreasonably withheld or conditioned.  Tenant shall approve, or reasonably disapprove (and state, with reasonable specificity, its reasons for disapproving), any revision to the Approved Plans within two (2) business days after receiving Landlord’s request for approval thereof.  For purposes hereof, any change order affecting the Approved Plans shall be deemed a revision thereto.

2.8            Tenant’s Approval Deadline .  Tenant shall approve the Construction Pricing Proposal pursuant to Section 2.6.1 above on or before Tenant’s Approval Deadline (defined below).  As used in this Work Letter, “ Tenant’s Approval Deadline ” means the date occurring 55 business days after the mutual execution and delivery of this Amendment; provided, however, that Tenant’s Approval Deadline shall be extended by one (1) day for each day, if any, of any breach by Landlord of its obligations under this Section 2 .

3.
CONSTRUCTION .

3.1            Contractor .  Landlord shall retain a contractor of its choice (the “ Contractor ”) to perform the Tenant Improvement Work.  In addition, Landlord may select and/or approve of any subcontractors, mechanics and materialmen used in connection with the performance of the Tenant Improvement Work.

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3.2            Engineering Drawings .  Landlord shall cause the engineering working drawings for the mechanical, electrical, plumbing, fire-alarm and fire sprinkler work in the Premises (the “ Engineering Drawings ”) to (a) be prepared by one or more of the Architect, the Contractor, and/or engineers or other consultants selected and/or retained by the Architect, the Contractor or Landlord, and (b) conform to the Approved Space Plan, the Approved Additional Programming Information, the first sentence of Section 4 below, and any then-existing Approved Architectural Drawings (collectively, the “ Engineering Requirements ”).  Engineering Drawings that conform to the Engineering Requirements shall be referred to herein as “ Approved Engineering Drawings ”.

3.3            Permits .  Landlord shall cause the Architect, the Contractor and/or other consultants of Landlord to submit the Approved Architectural Drawings and the Approved Engineering Drawings (collectively, the “ Approved Construction Drawings ”) to the appropriate municipal authorities and otherwise apply for and obtain from such authorities all permits necessary for the Contractor to complete the Tenant Improvement Work (the “ Permits ”).

 
3.4
Construction .

3.4.1            Performance of Tenant Improvement Work; Landlord Supervision Fee .  Landlord shall cause the Contractor to perform the Tenant Improvement Work in accordance with the Approved Construction Drawings.  Tenant shall pay a construction supervision and management fee (the “ Landlord Supervision Fee ”) to Landlord in an amount equal to 3% of the aggregate amount of all Allowance Items other than the Landlord Supervision Fee.

3.4.2            Contractor’s Warranties .  Tenant waives all claims against Landlord relating to any defects in the Tenant Improvements; provided, however, that if, within 30 days after substantial completion of the Tenant Improvement Work, Tenant provides notice to Landlord of any non-latent defect in the Tenant Improvements, or if, within 11 months after substantial completion of the Tenant Improvement Work, Tenant provides notice to Landlord of any latent defect in the Tenant Improvements, then Landlord shall promptly cause such defect to be corrected.

4.            COMPLIANCE WITH LAW; SUITABILITY FOR TENANT’S USE .  Landlord shall cause the Architect and the Contractor to use the Required Level of Care (defined below) to cause the Architectural Drawings and the Engineering Drawings to comply with Law; provided, however, that Landlord shall not be responsible for any violation of Law resulting from (a) any particular use of the Premises (as distinguished from general office use), or (b) any failure of the Approved Additional Programming Information to comply with Law.  As used herein, “ Required Level of Care ” means the level of care that reputable architects and engineers customarily use to cause architectural and engineering plans, drawings and specifications to comply with Law where such plans, drawings and specifications are prepared for spaces in buildings comparable in quality to the Building.  Except as provided above in this Section 4 , Tenant shall be responsible for ensuring that the Approved Plans are suitable for Tenant’s use of the Premises and comply with Law, and neither the preparation of any of the Approved Plans by the Architect or the Contractor nor Landlord’s approval of the Approved Plans shall relieve Tenant from such responsibility.  To the extent that either party (the “ Responsible Party ”) is responsible under this Section 4 for causing the Approved Plans to comply with Law, the Responsible Party may contest any alleged violation of Law in good faith, including by seeking a waiver or deferment of compliance, asserting any defense allowed by Law, and exercising any right of appeal (provided that the other party incurs no liability as a result of such contest and that, after completing such contest, the Responsible Party makes any modification to the Approved Plans or any alteration to the Premises that is necessary to comply with any final order or judgment).

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5.
COMPLETION .

5.1            Substantial Completion .  For purposes of Section 2.2.A of this Amendment, and subject to Section 5.2 below, the Tenant Improvement Work shall be deemed to be “ Substantially Complete ” upon the completion of the Tenant Improvement Work pursuant to the Approved Construction Drawings (as reasonably determined by Landlord), with the exception of any details of construction, mechanical adjustment or any other similar matter the non-completion of which does not materially interfere with Tenant’s use of the Premises.

5.2            Tenant Cooperation; Tenant Delay .  Tenant shall use reasonable efforts to cooperate with Landlord, the Architect, the Contractor, and Landlord’s other consultants to complete all phases of the plans and specifications for the Tenant Improvement Work, approve the Construction Pricing Proposal, obtain the Permits, and complete the Tenant Improvement Work as soon as possible, and Tenant shall meet with Landlord, in accordance with a schedule determined by Landlord, to discuss the parties’ progress.  Without limiting the foregoing, if (i) the Tenant Improvements include the installation of electrical connections for furniture stations to be installed by Tenant, and (ii) any electrical or other portions of such furniture stations must be installed in order for Landlord to obtain any governmental approval required for occupancy of the Premises, then (x) Tenant, upon five (5) business days’ notice from Landlord, shall promptly install such portions of such furniture stations in accordance with Section 9.C of the Lease, and (y) during the period of Tenant’s entry into the Premises for the purpose of performing such installation, all of Tenant’s obligations under this Amendment relating to the Premises shall apply, except for the obligation to pay monthly Rent.  In addition, without limiting the foregoing, if the Substantial Completion of the Tenant Improvement Work is delayed (a “ Tenant Delay ”) as a result of (a) any failure of Tenant to approve the Construction Pricing Proposal pursuant to Section 2.6.1 above on or before Tenant’s Approval Deadline; (b) any failure of Tenant to timely approve the Engineering Drawings for any reason other than their failure to satisfy the Engineering Requirements; (c) any failure of Tenant to timely approve any other matter requiring Tenant’s approval; (d) any breach by Tenant of this Work Letter or this Amendment; (e) any request by Tenant for any revision to, or for Landlord’s approval of any revision to, any portion of the Approved Plans (except to the extent that such delay results from a breach by Landlord of its obligations under Section 2.7 above); (f) any requirement of Tenant for materials, components, finishes or improvements that are not available in a commercially reasonable time given the anticipated date of Substantial Completion of the Tenant Improvement Work as set forth in this Amendment; (g) any change to the base, shell or core of the Premises or Building required by the Approved Construction Drawings; or (h) any other act or omission of Tenant or any of its agents, employees or representatives, then, notwithstanding any contrary provision of this Amendment, and regardless of when the Tenant Improvement Work is actually Substantially Completed, the Tenant Improvement Work shall be deemed to be Substantially Completed on the date on which the Tenant Improvement Work would have been Substantially Completed if no such Tenant Delay had occurred.  Notwithstanding the foregoing, Landlord shall not be required to tender possession of the Premises to Tenant before the Tenant Improvement Work has been Substantially Completed, as determined without giving effect to the preceding sentence.

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6.            MISCELLANEOUS .  Notwithstanding any contrary provision of this Amendment, if Tenant defaults under this Amendment before the Tenant Improvement Work is completed, Landlord’s obligations under this Work Letter shall be excused until such default is cured and Tenant shall be responsible for any resulting delay in the completion of the Tenant Improvement Work.  This Work Letter shall not apply to any space other than the Premises.

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EXHIBIT C

NOTICE OF LEASE TERM DATES

__________________, 20__
 
To:       
   
     
     
     
 
Re: ________ Amendment (the “ Amendment ”), dated __________, 20__ to a lease agreement dated ___________, 20__, between ___________________, a (“ Landlord ”), and ________________, a (“ Tenant ”), concerning Suite _____ on the __________ floor of the building located at __________________, _____________ California (the “ 2017 Expansion Space ”).

Lease ID: ______________________
Business Unit Number: ___________

Dear ____________:

In accordance with the Amendment, Tenant accepts possession of the 2017 Expansion Space and confirms that (a) the 2017 Expansion Effective Date is ___________, 20__, and (b) Second Extended Expiration Date is __________, 20__.

Please acknowledge the foregoing by signing all three (3) counterparts of this letter in the space provided below and returning two (2) fully executed counterparts to my attention.  Please note that, under Section 2.2.B of the Amendment, Tenant is required to execute and return (or reasonably object in writing to) this letter within five (5) days after receiving it.
 
 
“Landlord”:
     
 
                      ,
 
a                     
     
 
By:
 
 
Name:
 
 
Title:
 
 


Agreed and Accepted as
of ______, 20__.
 
“Tenant”:
 
     
                      ,
 
a                      
 
     
By:
   
Name:
   
Title:
   

 
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Exhibit 10.41
 
BERNAL CORPORATE PARK
 
OFFICE LEASE
 
BETWEEN
 
THE ROBISON FAMILY TRUST DATED OCTOBER 30, 1989
 
("LANDLORD")
 
AND
 
RIMINI STREET, INC. ("TENANT")
 

TABLE OF CONTENTS
 
PAGE
   
ARTICLE 1 TERM
1
ARTICLE 2 POSSESSION
2
ARTICLE 3 RENT
3
ARTICLE 4 RENTAL ADJUSTMENT
4
ARTICLE 5 SECURITY DEPOSIT
7
ARTICLE 6 USE
7
ARTICLE 7 NOTICES
9
ARTICLE 8 BROKERS
9
ARTICLE 9 HOLDING OVER; SURRENDER
9
ARTICLE 10 TAXES ON TENANT'S PROPERTY
10
ARTICLE 11 CONDITION OF PREMISES
10
ARTICLE 12 ALTERATIONS
10
ARTICLE 13 REPAIRS
11
ARTICLE 14 LIENS
13
ARTICLE 15 ENTRY BY LANDLORD AND RESERVED RIGHTS OF LANDLORD
13
ARTICLE 16 UTILITIES AND SERVICES
14
ARTICLE 17 BANKRUPTCY
14
ARTICLE 18 INDEMNIFICATION
15
ARTICLE 19 DAMAGE TO TENANT'S PROPERTY
15
ARTICLE 20 TENANT'S INSURANCE
15
ARTICLE 21 DAMAGE OR DESTRUCTION
17
ARTICLE 22 EMINENT DOMAIN
19
ARTICLE 23 DEFAULTS AND REMEDIES
20
ARTICLE 24 ASSIGNMENT AND SUBLETTING
22
ARTICLE 25 SUBORDINATION; MORTGAGEE PROTECTION
24
ARTICLE 26 ESTOPPEL CERTIFICATE
25
ARTICLE 27 SIGNAGE
26
ARTICLE 28 RULES AND REGULATIONS
26
ARTICLE 29 CONFLICT OF LAWS
26
ARTICLE 30 SUCCESSORS AND ASSIGNS
26
 
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TABLE OF CONTENTS
(Continued)
 
 
PAGE
 
ARTICLE 31 SURRENDER OF PREMISES
26
ARTICLE 32 ATTORNEYS' FEES
27
ARTICLE 33 PERFORMANCE BY TENANT
27
ARTICLE 34 MORTGAGEE PROTECTION
27
ARTICLE 35 DEFINITION OF LANDLORD
27
ARTICLE 36 WAIVER
28
ARTICLE 37 IDENTIFICATION OF TENANT
28
ARTICLE 38 PARKING
28
ARTICLE 39 TERMS AND HEADINGS
29
ARTICLE 40 EXAMINATION OF LEASE
29
ARTICLE 41 TIME
29
ARTICLE 42 PRIOR AGREEMENT: AMENDMENTS
29
ARTICLE 43 SEPARABILITY
29
ARTICLE 44 RECORDING
30
ARTICLE 45 CONSENTS
30
ARTICLE 46 LIMITATION ON LIABILITY
30
ARTICLE 47 RIDERS
31
ARTICLE 48 EXHIBITS
31
ARTICLE 49 MODIFICATION FOR LENDER; FINANCIAL INFORMATION
31
ARTICLE 50 PROJECT PLANNING
32
ARTICLE 51 HAZARDOUS MATERIALS
32
ARTICLE 52 COUNTERPARTS
33
ARTICLE 53 FORCE MAJEURE
33
ARTICLE 54 WAIVER OF RIGHT TO TRIAL BY JURY
33
 
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LIST OF EXHIBITS

EXHIBIT A
The Premises
   
EXHIBIT A-1
The Project
   
EXHIBIT B
Work Letter
   
EXHIBIT C
Standards for Utilities and Services
   
EXHIBIT D
Rules and Regulations
   
EXHIBIT E
Parking Rules and Regulations
   
EXHIBIT F
Commencement Date Memorandum
   
EXHIBIT G
Sublease Agreement
 
The exhibits attached hereto are incorporated into and made a part of this Lease.
 
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BERNAL CORPORATE PARK
SYCAMORE TERRACE
 
THIS LEASE is made as of September , 2006, by and between THE ROBISON FAMILY TRUST DATED OCTOBER 30, 1989 ("Landlord"), and RIMINI STREET, INC., a Nevada corporation ("Tenant").
 
Landlord hereby leases to Tenant and Tenant hereby leases from Landlord Suite Number Suite 246 (the "Premises") outlined on the floor plan attached hereto and marked EXHIBIT A , the Premises being agreed, for the purposes of this Lease, to have an area of approximately 1,794 rentable square feet and being situated on the second floor of that certain office building located at 6601 Koll Center Parkway, Pleasanton, California (the "Building"), and part of a one building complex (the "Project") more particularly described in EXHIBIT A-1 attached hereto.  The Project contains approximately sixty nine thousand five hundred eighty eight (69,588) square feet of space.
 
Landlord and Tenant agree that said letting and hiring is upon and subject to the terms, covenants and conditions herein set forth Tenant covenants, as a material part of the consideration for this Lease, to keep and perform each and all of said terms, covenants and conditions for which Tenant is liable and that this Lease is made upon the condition of such performance.
 
Prior to the commencing of the term of this Lease, Landlord shall cause the Premises to be improved by the Tenant Improvements described in the Work Letter marked EXHIBIT B attached hereto.  Except as expressly provided to the contrary in this Lease, Landlord shall not be required to make any expenditure, incur any obligation, or incur any liability of any kind whatsoever in connection with the Lease or the ownership, construction, maintenance, operation or repair of the Premises or the Project.
 
ARTICLE 1
TERM
 
1.1             Commencement Date .  The term of this Lease shall be for TWELVE (12) MONTHS unless sooner terminated as hereinafter provided, commencing on the date which is the earlier of:
 
(a)             the date on which the Premises are Substantially Complete (as hereinafter defined); or
 
(b)             the date that Tenant opens for business in the Premises;
 
(or, at Landlord's election, upon the first day of the first full month following the earlier to occur of (a) or (b) above).
 
The Premises shall be deemed to be "Substantially Complete" on the earliest of the date on which: (1) Landlord files or causes to be filed with the City of Pleasanton (the "City"), if required, and delivers to Tenant an architect's notice of substantial completion, or similar written notice that the Premises are substantially complete, (2) Tenant first occupies all or any portion of the Premises, or (3) a certificate of occupancy (or a reasonably substantial equivalent such as a signoff from a building inspector or a temporary certificate of occupancy) is issued for the Premises.
 

1.1.1          The date that the Lease commences in accordance with this Article 1 shall be referred to herein as the "Commencement Date".  If either of the events described in Paragraph 1.1(a) or (b) occurs on the first day of a month, that date shall be the Commencement Date of this Lease.
 
1.1.2          On and after the Commencement Date, the Lease shall continue in full force and effect for the period of time specified as the Term or until this Lease is terminated as otherwise provided herein.  As soon as the Commencement Date is determined, Tenant shall execute a Commencement Date Memorandum in the form attached hereto as Exhibit F acknowledging, among other things, the (a ) Commencement Date, (b ) scheduled termination date of this Lease and (c ) Tenant's acceptance of the Premises.  The Tenant's failure to execute the Commencement Date Memorandum shall not affect Tenant's liability hereunder.
 
1.1.3          Reference in this Lease to a "Lease Year" shall mean each successive twelve month period commencing with the Commencement Date.
 
1.1.4          Landlord and Tenant estimate that the Commencement Date shall be September 15, 2006, but such estimate is not and shall not be deemed to be a representation or warranty by Landlord that Premises shall be ready for Tenant's occupancy on such date.
 
ARTICLE 2
POSSESSION
 
2.1             Lease in Full Force and Effect .  Tenant agrees that, if Landlord is unable to deliver possession of the Premises to Tenant on the scheduled Commencement Date, this Lease shall not be void or voidable, nor shall Landlord be liable to Tenant for any loss or damage resulting therefrom, but in such event the Term of this Lease shall not commence until Landlord tenders possession of the Premises to Tenant with the Tenant Improvements substantially completed or Tenant opens for business in the Premises.  If Landlord completes construction of the Tenant Improvements prior to the date scheduled Commencement Date, Landlord shall deliver possession of the Premises to Tenant upon such completion and the term of this Lease shall thereupon commence.
 
2.2             Acceptance by Tenant .  Tenant has determined that the Premises are acceptable for Tenant's use and Tenant acknowledges that neither Landlord nor any broker or agent has made any representations or warranties in connection with the physical condition of the Premises or their fitness for Tenant's use upon which Tenant has relied directly or indirectly for any purpose.  Except as expressly provided to the contrary in this Lease, Landlord shall not be required to make any expenditure, incur any obligation, or incur any liability of any kind whatsoever in connection with this Lease or the ownership, construction, maintenance, operation or repair of the Premises or the Project.  Tenant's possession of the Premises during the period of time, if any, prior to the Commencement Date, shall be subject to all the provisions of this Lease and shall not advance the expiration date.  Rent shall be paid for such period at the rate stated in Article 3, prorated on the basis of a thirty (30) day month, and shall be due and payable to Landlord on or before the Commencement Date.
 
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ARTICLE 3
RENT
 
3.1             Rent .  Tenant shall pay to Landlord, in lawful money of the United States of America, at the address of Landlord designated on the signature page of this Lease or to such other person or at such other place as Landlord may from time to time designate in writing, the monthly base rent (the "Base Rent") in advance, without notice, demand, offset or deduction, on the first day of each calendar month.  Tenant shall pay the first month's Base Rent on the date Tenant executes this Lease, and shall continue to pay the Base Rent on the first day of each month thereafter (subject to adjustment as hereinafter provided) as follows:
 
Months of Term
 
Base Rent/Per Month
1 – 12
 
$4,215.90
 
If the Term commences or ends on a date other than the first or last day of a month, Base Rent shall be prorated on the basis of a thirty (30) day month Tenant shall pay Landlord the Rent (as hereinafter defined) due under this Lease without any deduction or offset whatsoever by Tenant, foreseeable or unforeseeable.
 
3.2             Additional Rent .  In addition to the Base Rent, Tenant agrees to pay as additional rental (the "Additional Rent" and together with the Base Rent, the "Rent") the amount of rental adjustments and all other charges required by this Lease.  All sums other than the Base Rent that Tenant is obligated to pay under this Lease will be Additional Rent, whether or not such sums are designated as Additional Rent.
 
3.3             Late Charge and Interest .  Tenant acknowledges and agrees that the late payment of any Rent will cause Landlord to incur additional costs, including administration and collection costs, processing and accounting expenses, and increased debt service (the "Delinquency Costs") If Landlord has not received any installment of Rent when due, Tenant shall pay a late charge (the "Late Charge") equal to ten percent (10%) of the delinquent amount Tenant agrees that the Late Charge represents a reasonable estimate of the Delinquency Costs that will be incurred by Landlord In addition, Tenant shall pay interest on all delinquent amounts from the date the amount was due until the date the amount is paid in full at a rate per annum (the "Applicable Interest Rate") equal to the lesser of (a) the maximum interest rate permitted by law or (b) five percent (5%) above the reference rate (the "Reference Rate") publicly announced by Bank of America, NA. (or if Bank of America, NA. ceases to exist, the largest bank then headquartered in the State of California) (the "Bank") If the Bank discontinues use of the Reference Rate, then the term "Reference Rate" will mean the announced rate charged by the Bank, from time to time instead of the Reference Rate Landlord and Tenant agree that it is difficult to ascertain the damage that Landlord will suffer as a result of the late payment of any Rent and that the Late Charge and interest are the best estimates of the damage that Landlord will suffer in the event of late payment If a Late Charge becomes payable for any two (2) installments of Rent within any twelve (12) month period, then all Rent will automatically become due and payable quarterly in advance.
 
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ARTICLE 4
RENTAL ADJUSTMENT
 
4.1             Rental Adjustment .
 
(a)             For the purpose of this Lease, the following terms are defined as follows:
 
(i)          Tenant's Percentage .  That portion of the Project occupied by Tenant divided by the total rentable square footage of the Project, which result is the following: 2.578%.  If the Project is less than ninety-five percent (95%) occupied during any calendar year of the term, an adjustment shall be made in computing the Direct Expenses for such year so that Direct Expenses shall be computed as though the Project were ninety-five percent (95%) occupied.
 
(ii)         Direct Expenses Base .  The amount of annual Direct Expenses that Landlord has included in the Base Rent, which is equal to Tenant's Percentage of the actual Direct Expenses incurred by Landlord in calendar year 2006.
 
(iii)        Direct Expenses .  The term "Direct Expenses" shall include "Taxes" (as hereinafter defined) and "Operating Expenses" (as hereinafter defined).
 
(A)         "Taxes" means the sum of any and all real and personal property taxes and assessments (excluding those assessments described in Section 4.1(a)(iii)(C)) possessory-interest taxes, business or license taxes or fees, service payments in lieu of such taxes or fees, annual or periodic license or use fees, excises, transit and traffic charges, housing fund assessments, open space charges, childcare fees, school, sewer and parking fees or any other assessments, levies, fees, exactions or charges, general and special, ordinary and extraordinary, unforeseen as well as foreseen (including fees "in-lieu" of any such tax or assessment) which are assessed, levied, charged, conferred or imposed by any public authority upon the Project (or any real property comprising any portion thereof) or its operations, together with all taxes, assessments or other fees imposed by any public authority upon or measured by any Rent or other charges payable hereunder, including any gross receipts tax or excise tax levied by any governmental authority with respect to receipt of rental income, or upon, with respect to or by reason of the development, possession, leasing, operation, management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises or any portion thereof, or documentary transfer taxes upon this transaction or any document to which Tenant is a party creating or transferring an interest in the Premises, together with any tax imposed in substitution, partially or totally, of any tax previously included within the aforesaid definition or any additional tax the nature of which was previously included within the aforesaid definition, together with any and all costs and expenses (including, without limitation, attorneys, administrative and expert witness fees and costs) of challenging any of the foregoing or seeking, the reduction in or abatement, redemption or return of any of the foregoing, but only to the extent of any such reduction, abatement, redemption or return.  All references to Taxes during a particular year shall be deemed to refer to taxes accrued during such year, including supplemental tax bills regardless of when they are actually assessed and without regard to when such taxes are payable.  The obligation of Tenant to pay for supplemental taxes shall survive the expiration or earlier termination of this Lease.  In no event shall Tenant or any Tenant Party (as hereinafter defined) be entitled to file any property tax assessment appeal.  Tenant's obligations for Taxes for the last full and/or partial year(s) of the Term shall survive the expiration or early termination of the Lease.
 
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(B)          "Operating Expenses" means the total costs and expenses incurred by Landlord in the operation, maintenance, repair and management of the Project, the Common -Area and the Building, including, but not limited to, (a ) repairs to and maintenance of the roof (and roof membrane), skylights and exterior walls of the Building; (b ) cleaning, maintenance, repair, replacement, utility costs and landscaping of the entrances, lobbies and other public areas of the Building, walkways, landscaped areas, driveways necessary for access to the Premises, parking areas (including sweeping, striping and slurry coating), and other common facilities designated by Landlord from time to time for the common use of all tenants of the Project (the "Common Area"), common driveways, outdoor lighting, walkways, landscaping, and other costs which are allocable to the Project or the real property of which the Premises are a part including any costs under the terms of any recorded covenants affecting the real property or the Project; (c ) the costs and premiums relating to the insurance maintained by Landlord with respect to the Project, including, without limitation, Landlord's cost of any self insurance deductible or retention; (d ) service and maintenance contracts for, and the repair and replacement of, the heating, ventilation and air-conditioning (HVAC) systems and elevators, if any, and maintenance, repair, replacement, monitoring and operation of the fire/life safety system, (e) service and maintenance contracts for security, cleaning, janitorial and landscaping services; (f) trash collection (g ) all wage and labor costs, including fringe benefits, applicable to persons engaged in the operation, maintenance and repair of the Project as Landlord's agents or as independent contractors; (h ) capital improvements made to or capital assets acquired for the Project after the Commencement Date that (1 ) are intended to reduce Operating Expenses or (2 ) are reasonably necessary for the health and safety of the occupants of the Project or (3 ) are required under any and all applicable laws, statutes, codes, ordinances, orders, rules, regulations, conditions of approval and requirements of all federal, state, county, municipal and governmental authorities and all administrative or judicial orders or decrees and all permits, licenses, approvals and other entitlements issued by governmental entities, and rules of common law, relating to or affecting the Project, the Premises or the Building or the use or operation thereof, whether now existing or hereafter enacted, including, without limitation, the Americans with Disabilities Act of 1990, 42 USC 12111 et seq. (the "ADA") as the same may be amended from time to time, all Environmental Laws (as hereinafter defined), and any CC&Rs, or any corporation, committee or association formed in connection therewith, or any supplement thereto recorded in any official or public records with respect to the Project or any portion thereof (collectively, "Applicable Laws"), which capital costs, or an allocable portion thereof, shall be amortized over the period determined by Landlord, together with interest on the unamortized balance at the Applicable Interest Rate (as hereinafter defined); and (i ) any other costs incurred by Landlord related to the Project as a whole.  Operating Expenses shall also include an administrative fee to Landlord for accounting and project management services relating to the Project not to exceed a market amount.  Operating Expenses shall also include all costs and fees incurred by Landlord in connection with the management of this Lease and the Premises including the cost of those services which are customarily performed by a property management services company, whether performed internally or through an outside management company.
 
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(C)          Tenant acknowledges that the Premises are subject to assessments levied to secure bonds sold by the City of Pleasanton pursuant to Consolidated Reassessment District 1993-1.  Such Assessments shall be Landlord's responsibility throughout the term of this Lease.  Tenant hereby consents to the formation of any other districts formed for maintenance, utilities, landscaping, lighting, special service zones, fire district, water district, road extensions, traffic mitigation, sports facilities or other improvements in the Project or Bernal Corporate Park and to the re-financing of any assessment districts, provided that payment of any of the foregoing shall be Tenant's responsibility.  Tenant hereby waives any right of notice and protest in connection with the formation and continued existence of the assessment districts.  Tenant shall execute all documents, including, but not limited to, petitions and formal waivers of notice and protest of formation, evidencing such consent and waiver upon request of Landlord or the City of Pleasanton.
 
(b)             Payment of Direct Expenses .
 
(i)          If Tenant's Percentage of the Direct Expenses paid or incurred by Landlord for any calendar year exceeds the Direct Expenses Base included in Tenant's rent, then Tenant shall pay such excess as Additional Rent.
 
(ii)         In addition, for each year after the first calendar year, or portion thereof, Tenant shall pay Tenant's Percentage of Landlord's estimate of the amount by which Direct Expenses for that year shall exceed the Direct Expenses Base (the "Landlord's Estimate").  This estimated amount shall be divided into twelve equal monthly installments.  Tenant shall pay to Landlord without offset or deduction, concurrently with the regular monthly Base Rent payment next due following the receipt of such statement, an amount equal to one monthly installment multiplied by the number of months from January in the calendar year in which said statement is submitted to the month of such payment, both months inclusive.  Subsequent installments shall be payable concurrently with the regular monthly Base Rent payments for the balance of that calendar year and shall continue until the next calendar year's statement is rendered.
 
(iii)        As soon as possible after the end of each calendar year, Landlord shall provide Tenant with a statement showing the amount of Tenant's Percentage of Direct Expenses, the amount of Landlord's Estimate actually paid by Tenant and the amount of the Direct Expenses Base.  Thereafter, Landlord shall reconcile the above amounts and shall either bill Tenant for the balance due (payable on demand by Landlord) or credit any overpayment by Tenant towards the next monthly installment of Landlord's Estimate falling due, as the case may be.  For purposes of making these calculations, in no event shall Tenant's Percentage of the Direct Expenses be deemed to be less than the Direct Expenses Base.
 
(c)             Tenant's obligation to pay Tenant's Percentage of Direct Expenses shall survive the expiration or termination of this Lease Tenant's Percentage of Direct Expenses shall be paid by Tenant when due even though the Term has expired and/or Tenant has vacated the Premises, when the final determination is made of Tenant's Percentage of Direct Expenses for the year in which this Lease terminates, Tenant shall immediately pay any increase due over the estimated expenses paid and, conversely, any overpayment made in the event said expenses decrease shall be rebated by Landlord to Tenant.
 
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ARTICLE 5
SECURITY DEPOSIT
 
Upon execution of this Lease, Tenant shall deposit with Landlord the sum of Four Thousand Two Hundred Fifteen and 90/100 Dollars ($4,215.90) (the "Security Deposit") The -Security Deposit shall be held by Landlord as security for the full and faithful performance by Tenant of all of Tenant's obligations hereunder If Tenant defaults with respect to any provision of this Lease, including but not limited to the provisions relating to the payment of Rent, Landlord may, but shall not be required to, use, apply or retain all or any part of this Security Deposit for the payment of any Rent or any other sum in default, or for the payment of any other amount which Landlord may spend or become obligated to spend by reason of Tenant's default or to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant's default If any portion of the Security Deposit is so used or applied, Tenant shall, upon demand, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount Tenant's failure to do so shall be a material breach of this Lease Landlord shall not be required to keep the Security Deposit separate from its general funds, and Tenant shall not be entitled to interest on the Security Deposit If Tenant shall fully and faithfully perform all of its obligations under this Lease, and if Tenant is not in default under this Lease, the Security Deposit or any balance thereof shall be returned to Tenant (or, at Landlord's option, to the last assignee of Tenant's interests hereunder) after the expiration of the Term and after Landlord after such time as any amount due from Tenant in accordance with Article 4 hereof has been determined and paid in full Tenant hereby waives the benefit of California Civil Code Section 1950.7 with regards to such Security Deposit, it being agreed and understood that Landlord shall have the right, upon an Event of Default, to apply the Security Deposit to satisfy the payment of future rent obligations.
 
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ARTICLE 6
USE
 
Tenant shall use the Premises for general office use consistent with the character of a first class office building and shall not use or permit the Premises to be used for any other purpose without Landlord's prior written consent Nothing contained herein shall be deemed to give Tenant any exclusive right to such use in the Project Tenant shall not use or occupy the Premises in violation of law or of the certificate of occupancy issued for the Building or Project, and shall, upon written notice from Landlord, discontinue any use of the Premises which is declared by any governmental authority having jurisdiction to be a violation of law or of said certificate of occupancy Tenant shall comply with any direction of any governmental authority having jurisdiction which shall, by reason of the nature of Tenant's use or occupancy of the Premises, impose any duty upon Tenant or Landlord with respect to the Premises or with respect to the use or occupation thereof Tenant shall not do or permit to be done anything which will invalidate or increase the cost of any fire, extended coverage or any other insurance policy covering the Building and/or Project and/or property located therein and shall comply with all rules, orders, regulations and requirements of the Insurance Service Offices, formerly known as the Pacific Fire Rating Bureau or any other organization performing a similar function Tenant shall promptly, upon demand, reimburse Landlord for any additional premium charged for such policy by reason of Tenant's failure to comply with the provisions of this Article Tenant shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Project, or injure or annoy them, or use or allow the Premises to be used for any improper, immoral, unlawful or objectionable purpose, nor shall Tenant cause, maintain or permit any nuisance in, on or about the Premises.: Tenant shall not commit or suffer to be committed any waste in or upon the Premises Tenant acknowledges that Landlord has recorded covenants, conditions and restrictions against the Premises on February 18, 1987 as Instrument Number 87/046032 in the Official Records of Alameda County, as amended by that certain First Amendment to Declaration of Covenants, Conditions and Restrictions of Koll Center Pleasanton on October 5, 1993 as Instrument Number 93366552, as further amended by that certain Second Amendment to Declaration of Easement and Maintenance Agreement on July 31, 1997 as Instrument Number 97191415, as further amended by that certain Third Amendment to Declaration of Covenants, Conditions and Restrictions on November 17, 2000 as Instrument Number 2000341937, as further amended by that certain Fourth Amendment to Declaration of Covenants, Conditions and Restrictions on August 17, 2000 as Instrument Number 2000341939 (as amended, the "CC&Rs") Tenant's use of the Premises shall be subject to and Tenant shall comply with the CC&Rs, as the same may be amended from time to time, and all Applicable Laws Tenant acknowledges that there have been and may be from time to time recorded easements and/or declarations granting or declaring easements for parking, utilities, fire or emergency access, and other matters Tenant's use of the Premises shall be subject to and Tenant shall comply with any and all such easements and declarations Tenant's use of the Premises shall be subject to such guidelines as may from time to time be prepared by Landlord or the Bernal Corporate Park Owner's Association in their sole discretion Tenant acknowledges that governmental entities with jurisdiction over the Premises may, from time to time promulgate laws, rules, plans and regulations affecting the use of the Premises, including, but not limited to, traffic management plans and energy conservation plans Tenant's use of the Premises shall be subject to and Tenant shall comply with any and all such laws, rules, plans, and regulations Tenant, at its sole cost, shall comply with any and all federal, state or local environmental, health and/or safety-related laws, regulations, standards, decisions of courts, ordinances, rules, codes, orders, decrees, directives, guidelines, permits or permit conditions, currently existing and as amended, enacted, issued or adopted in the future which are or become applicable to Tenant, the Premises, the Building, the Common Area or the Project ("Environmental Laws") If Tenant does store, use or dispose of any "Hazardous Materials" (as hereinafter defined), Tenant shall notify Landlord in writing at least ten (10) days prior to their first appearance on the Premises As used herein, "Hazardous Materials" means any chemical, substance, material, controlled substance, object, condition, waste, living organism or combination thereof, whether solid, semi solid, liquid or gaseous, which is or may be hazardous to human health or safety or to the environment due to its radioactivity, ignitability, corrosivity, reactivity, explosivity, toxicity, carcinogenicity, mutagenicity, phytotoxicity, infectiousness or other harmful or potentially harmful properties or effects, including, without limitation, tobacco smoke, petroleum and petroleum products, asbestos, radon, polychlorinated biphenyls (PCBs), refrigerants (including those substances defined in the Environmental Protection Agency's "Refrigerant Recycling Rule," as amended from time to time) and all of those chemicals, substances, materials, controlled substances, objects, conditions, wastes, living organisms or combinations thereof which are now or become in the future listed, defined or regulated in any manner by any Environmental Law based upon, directly or indirectly, such properties or effects.
 
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ARTICLE 7
NOTICES
 
Any notice required or permitted to be given hereunder must be in writing and may be given by personal delivery or by mail, and if given by mail shall be deemed sufficiently given if sent by registered or certified mail addressed to Tenant at the Project, or to Landlord at its address set forth at the end of this Lease Either party may specify a different address for notice purposes by written notice to the other except that the Landlord may in any event use the Premises as Tenant's address for notice purposes.
 
ARTICLE 8
BROKERS
 
Tenant warrants that it has had no dealings with any real estate broker or agent in connection with the negotiation of this Lease, except Colliers International, whose commission shall be payable by Landlord Tenant warrants that it knows of no other real estate broker or agent who is or might be entitled to a commission in connection with the Lease If Tenant has dealt with any other person or real estate broker with respect to leasing or renting space in the Project, Tenant shall be solely responsible for the payment of any fee due said person or firm and Tenant shall hold Landlord free and harmless against any liability in respect thereto, including attorneys' fees and costs.
 
ARTICLE 9
HOLDING OVER; SURRENDER
 
9.1             Holding Over .  If Tenant holds over the Premises or any part thereof after expiration of the Term, such holding over shall, at Landlord's option, constitute a month-to-month tenancy, at a rent equal to two hundred percent (200%) of the greater of (a ) the then fair market value of the base rent for the Premises as determined by Landlord and (b ) the Base Rent in effect immediately prior to such holding over and shall otherwise be on all the other terms and conditions of this Lease.  The provisions of this Section 9.1 shall not be construed as Landlord's permission for Tenant to hold over.  Acceptance of Rent by Landlord following expiration or termination shall not constitute a renewal of this Lease or extension of the Term except as specifically set forth above.  If Tenant fails to surrender the Premises upon expiration or earlier termination of this Lease, Tenant shall indemnify and hold Landlord harmless from and against all loss or liability resulting from or arising out of Tenant's failure to surrender the Premises, including, but not limited to, any amounts required to be paid to any tenant or prospective tenant who was to have occupied the Premises after the expiration or earlier termination of this Lease and any related attorneys' fees and brokerage commissions.
 
9.2             Surrender .  Upon the termination of this Lease or Tenant's right to possession of the Premises, Tenant will surrender the Premises broom clean, together with all keys, in good condition and repair, reasonable wear and tear excepted.  Tenant shall patch and fill all holes within the Premises.  Tenant shall also remove all alterations or improvements made by it, or made by Landlord at Tenant's request or direction, to the Premises (which removal shall include restoration if and to the extent necessary to return the Premises to its condition at the Commencement Date, reasonable wear and tear excluded), excluding the Tenant Improvements, unless requested not to do so by Landlord.  In no event may Tenant remove from the Premises any mechanical or electrical systems or any wiring or any other aspect of any systems within the Premises.  Conditions existing because of Tenant's failure to perform maintenance, repairs or replacements shall not be deemed "reasonable wear and tear."
 
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ARTICLE 10
TAXES ON TENANT'S PROPERTY
 
(a)             Tenant shall be liable for and shall pay, at least ten (10) days before delinquency, all taxes levied against any personal property or trade fixtures placed by Tenant in or about the Premises.  If any such taxes on Tenant's personal property or trade fixtures are levied against Landlord or Landlord's property or if the assessed value of the Premises is increased by the inclusion therein of a value placed upon such personal property or trade fixtures of Tenant and if Landlord, after written notice to Tenant, pays the taxes based upon such increased assessment, which Landlord shall have the right to do regardless of the validity thereof, but only under proper protest if requested by Tenant, Tenant shall, upon demand, repay to Landlord the taxes so levied against Landlord, or the portion of such taxes resulting from such increase in the assessment.
 
(b)             If the Tenant Improvements in the Premises, whether installed, and/or paid for by Landlord or Tenant and whether or not affixed to the real property so as to become a part thereof, are assessed for real property tax purposes at a valuation higher than the valuation at which Tenant Improvements conforming to Landlord's "Project Standard," in other space in the Project are assessed, then the real property taxes and assessment levied against the Project by reason of such excess assessed valuation shall be deemed to be taxes levied against personal property of Tenant and shall be governed by the provisions of Section 10(a), above.  If the records of the County Assessor are available and sufficiently detailed to serve as a basis for determining whether said Tenant Improvements are assessed at a higher valuation than Landlord's Project Standard, such records shall be binding on both the Landlord and the Tenant.  If the records of the County Assessor are not available or sufficiently detailed to serve as a basis for making said determination, the actual cost of construction shall be used.
 
ARTICLE 11
CONDITION OF PREMISES
 
Tenant acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the Premises or the Project or with respect to the suitability of either for the conduct of Tenant's business The taking of possession of the Premises by Tenant shall conclusively establish that the Premises and the Project were in satisfactory condition at such time.
 
ARTICLE 12
ALTERATIONS
 
(a)             Tenant shall make no alterations, additions or improvements in or to the Premises, without Landlord's prior written consent, and then only by contractors or mechanics approved by Landlord.  Tenant agrees that there shall be no construction or partitions or other obstructions which might interfere with Landlord's free access to mechanical installations or service facilities of the Building or Project or interfere with the moving of Landlord's equipment to or from the enclosures containing said installations or facilities.  All such work shall be done at such times and in such manner as Landlord may from time to time designate.  Tenant covenants and agrees that all work done by Tenant shall be performed in full compliance with all laws, rules, orders, ordinances, regulations and requirements of all governmental agencies, offices, and boards having jurisdiction, and in full compliance with the rules, regulations and requirements of the Insurance Service Offices formerly known as the Pacific Fire Rating Bureau, and of any similar body.  Before commencing any work, Tenant shall give Landlord at least ten days written notice of the proposed commencement of such work and shall, if required by Landlord, secure at Tenant's own cost and expense, a completion and lien indemnity bond, satisfactory to Landlord, for said work.  Tenant further covenants and agrees that any mechanic's lien filed against the Premises or against the Building or Project for work claimed to have been done for, or materials claimed to have been furnished to, Tenant will be discharged by Tenant, by bond or otherwise, within ten days after the filing thereof, at the cost and expense of Tenant.  All alterations, additions or improvements upon the Premises made by either party, including (without limiting the generality of the foregoing) all wall-covering, built-in cabinet work, paneling and the like, shall, unless Landlord elects otherwise, become the property of Landlord, and shall remain upon, and be surrendered with the Premises, as a part thereof, at the end of the term hereof, except that Landlord may, by written notice to Tenant, require Tenant to remove all partitions, counters, railings and the like installed by Tenant, and Tenant shall repair all damage resulting from such removal or, at Landlord's option, shall pay to Landlord all costs arising from such removal.
 
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(b)             All articles of personal property and all business and trade fixtures, machinery and equipment, furniture and movable partitions owned by Tenant or installed by Tenant at its expense in the Premises shall be and remain the property of Tenant and may be removed by Tenant at any time during the lease term when Tenant is not in default hereunder.  If Tenant shall fail to remove all of its effects from the Premises upon termination of this Lease for any cause whatsoever, Landlord may, at its option, remove the same in any manner that Landlord shall choose, and store said effects without liability to Tenant for loss thereof.  In such event, Tenant agrees to pay Landlord upon demand any and all expenses incurred in such removal, including court costs and attorneys' fees and storage charges on such effects for any length of time that the same shall be in Landlord's possession.  Landlord may, at its option, without notice, sell said effects, or any of the same, at private sale and without legal process, for such price as Landlord may obtain and apply the proceeds of such sale upon any amounts due under this Lease from Tenant to Landlord and upon the expense incident to the removal and sale of said effects.
 
ARTICLE 13
REPAIRS
 
13.1           Tenant .  By entry hereunder, Tenant accepts the Premises as being in good and sanitary order, condition and repair.  Tenant, at Tenant's sole cost and expense, shall keep, maintain and preserve the Premises in first class condition and repair, and shall, when and if needed, at Tenant's sole cost and expense, make all repairs to the Premises and every part thereof, including, without limitation, Tenant's trade fixtures, installations, equipment and other personal property items within the Premises.  All such repairs, maintenance and replacements by Tenant shall be performed in a good and workmanlike manner.  Tenant shall, upon the expiration or sooner termination of the Term hereof, surrender the Premises to Landlord in the same condition as when received, usual and ordinary wear and tear excepted.  Landlord shall have no obligation to alter, remodel, improve, repair, decorate or paint the Premises or any part thereof.  Tenant acknowledges, agrees and affirms that Landlord has made no representations to Tenant respecting the condition of the Premises or the Project.  Without limiting the foregoing, Tenant shall, at Tenant's sole expense, be responsible for repairing any area damaged by Tenant, Tenant's agents, employees, invitees and visitors.  All repairs and replacements by Tenant shall be made and performed: (a ) at Tenant's cost and expense and at such time and in such manner as Landlord may reasonably designate, (b ) by contractors or mechanics approved by Landlord, which approval shall not be unreasonably withheld, (c ) so that same shall be at least equal in quality, value and utility to the original work or installation, (d ) in a manner and using equipment and materials that will not interfere with or impair the operations, use or occupation of the Building or any of the mechanical, electrical, plumbing or other systems in the Building or the Project, and (e ) in accordance with the Rules and Regulations attached hereto as EXHIBIT D and all Applicable Laws.  In the event Tenant fails, in the reasonable judgment of Landlord, to maintain the Premises in accordance with the obligations under the Lease, Landlord shall have the right, but not the obligation, to enter the Premises and perform such maintenance, repairs or refurbishing at Tenant's sole cost and expense (including a sum for overhead to Landlord equal to ten percent (10%) of the cost of the maintenance, repairs or refurbishing).  Tenant shall maintain written records of maintenance and repairs, as required by any Applicable Law, and shall use certified technicians to perform such maintenance and repairs, as so required.  Tenant shall promptly deliver to Landlord full and complete copies of all service or maintenance contracts entered into by Tenant for the Premises.
 
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13.2           Landlord.   Anything contained in Section 13.1 above to the contrary notwithstanding, as items of Operating Expenses, Landlord shall repair and maintain the structural portions of the Building, including the foundations and roof structure Landlord shall repair and maintain the basic plumbing, elevators, life safety systems and other building systems, heating, ventilating, air conditioning and electrical systems installed or furnished by Landlord, and perform roof repair and maintenance to the Premises Landlord shall not be liable for any failure to make any such repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after written notice of the need of such repairs or maintenance is given to Landlord by Tenant Landlord shall not be required to make any repair resulting from (i) any alteration or modification to the Building or to mechanical equipment within the Building performed by, or on behalf of, Tenant or to special equipment or systems installed by, or on behalf of, Tenant, (ii) the installation, use or operation of Tenant's property, fixtures and equipment, (iii) the moving of Tenant's property in or out of the Building or in and about the Premises, (iv) Tenant's use or occupancy of the Premises in violation of Section 6 of this Lease or in a manner not contemplated by the parties at the time of the execution of this Lease, (v) the acts or omissions of Tenant or any employees, agents, customers, visitors, invitees, licensees, contractors, assignees or subtenants of Tenant (individually, a "Tenant Party" and collectively, "Tenant's Parties"), (vi) fire and other casualty, except as provided by Section 21 of this Lease or (vii) condemnation, except as provided in Section 22 of this Lease Landlord shall have no" obligation to make repairs under this Section 13.2 until a reasonable time after (a) Landlord first -becomes aware of the need for such repairs, or (b) receipt of written notice from Tenant of the need for such repairs, whichever is earlier There shall be no abatement of Rent during the performance of such work Except for the initial Tenant Improvements, if any, provided for in the Work Letter, Landlord shall have no obligation during the Term of this Lease to remodel, repair, improve, decorate or paint any part of the Premises or to clean, repair or replace carpeting or window coverings Landlord shall not be liable to Tenant for injury or damage that may result from any defect in the construction or condition of the Premises, nor for any damage that may result from interruption of Tenant's use of the Premises during any repairs by Landlord Tenant waives any right to repair the Premises, the Building and/or the Common Area at the expense of Landlord under any Applicable Laws including without limitation Sections 1941 and 1942 of the California Civil Code.
 
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ARTICLE 14
LIENS
 
Tenant shall not permit any mechanic's, materialmen's or other liens to be filed against the Building or Project, nor against Tenant's leasehold interest in the Premises Landlord shall have the right at all reasonable times to post and keep posted on the Premises any notices which it deems necessary for protection from such liens If any such liens are filed, Landlord may, without waiving its rights and remedies based on such breach of Tenant and without releasing Tenant from any of its obligations, cause such liens to be released by any means it shall deem proper, including payments in satisfaction of the claim giving rise to such lien Tenant shall pay to Landlord at once, upon notice by Landlord, any sum paid by Landlord to remove such liens, together with interest at the maximum rate per annum permitted by law from the date of such payment by Landlord.
 
ARTICLE 15
ENTRY BY LANDLORD AND RESERVED RIGHTS OF LANDLORD
 
Landlord shall at any and all times have the right to enter the Premises for any lawful reason and/or to undertake the following, without limitation: to inspect the Premises; to supply janitorial service and any service to be provided by Landlord to Tenant hereunder; to show the Premises to prospective purchasers or tenants; to post notices of nonresponsibility, to alter, improve or repair the Premises or any other portion of the Building or Project; to install, use, maintain, repair, alter, relocate or replace any pipes, ducts, conduits, wires, equipment or other facilities in the Common Areas or the Building or Project; to grant easements on the Project, dedicate for public use portions thereof and record covenants, conditions and restrictions affecting the Project and/or amendments to existing CC&Rs which do not unreasonably interfere with Tenant's use of the Premises; change the name of the Building or Project; affix reasonable signs and displays; and, during the last nine (9) months of the Term, place signs for the rental of and show the Premises to prospective tenants, all without being deemed guilty of any eviction of Tenant and without abatement of Rent Landlord may, in order to carry out any of the foregoing purposes, erect scaffolding and other necessary structures where required by the character of the work to be performed Tenant hereby waives any claim for damages for any injury or inconvenience to or interference with Tenant's business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss in, upon and about the Premises Landlord shall at all times have and retain a key with which to unlock all doors in the Premises Landlord shall have the right to use any and all means which Landlord may deem proper to open said doors in an emergency in order to obtain entry to the Premises Any entry to the Premises obtained by Landlord by any of said means, or otherwise, shall not be construed or deemed to be a forcible or unlawful entry into the Premises, or any eviction of Tenant from the Premises or any portion thereof, and any damages caused on account thereof shall be paid by Tenant It is understood and agreed that no provision of this Lease shall be construed as obligating Landlord to perform any repairs, alterations or decorations except as otherwise expressly agreed herein by Landlord.
 
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ARTICLE 16
UTILITIES AND SERVICES
 
Provided that Tenant is not in default under this Lease, Landlord agrees to furnish or cause to be furnished to the Premises the utilities and services described in the Standards for Utilities and Services, attached hereto as EXHIBIT C , subject to the conditions and in accordance with the standards set forth therein Landlord's failure to furnish any of the foregoing items when such failure is caused by:
 
(i)          Accident, breakage, or repairs,
 
(ii)         Strikes, lockouts or other labor disturbance or labor dispute of any character,
 
(iii)        Governmental regulation, moratorium or other governmental action,
 
(iv)        Inability despite the exercise of reasonable diligence to obtain electricity, water or fuel, or by
 
(v)         Any other cause beyond Landlord's reasonable control,
 
shall not result in any liability to Landlord In addition, Tenant shall not be entitled to any abatement or reduction of rent by reason of such failure, no eviction of Tenant shall result from such failure and Tenant shall not be relieved from the performance of any covenant or agreement in this Lease because of such failure In the event of any failure, stoppage or interruption thereof, Landlord shall diligently attempt to resume service promptly.
 
ARTICLE 17
BANKRUPTCY
 
If Tenant shall file a petition in bankruptcy under any provision of the Bankruptcy Code as then in effect, or if Tenant shall be adjudicated a bankrupt in involuntary bankruptcy proceedings and such adjudication shall not have been vacated within thirty days from the date thereof, or if a receiver or trustee shall be appointed of Tenant's property and the order appointing such receiver or trustee shall not be set aside or vacated within thirty days after the entry thereof, or if Tenant shall assign Tenant's estate or effects for the benefit of creditors, or if this Lease shall, by operation of law or otherwise, pass to any person or persons other than Tenant, then in any such event Landlord may terminate this Lease, if Landlord so elects, with or without notice of such election and with or without entry or action by Landlord In such case, notwithstanding any other provisions of this Lease, Landlord, in addition to any and all rights and remedies allowed by law or equity, shall, upon such termination, be entitled to recover damages in the amount provided in Article 23 hereof Neither Tenant nor any person claiming through or under Tenant or by virtue of any statute or order of any court shall be entitled to possession of the Premises but shall surrender the Premises to Landlord Nothing contained herein shall limit or prejudice the right of Landlord to recover damages by reason of any such termination equal to the maximum allowed by any statute or rule of law in effect at the time when, and governing the proceedings in which, such damages are to be proved; whether or not such amount is greater, equal to, or less than the amount of damages recoverable under the provisions of this Article 17.
 
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ARTICLE 18
INDEMNIFICATION
 
Tenant shall indemnify, protect, defend (by counsel acceptable to Landlord) and hold harmless Landlord and Landlord's affiliated entities, and each of their respective members, managers, partners, directors, officers, employees, shareholders, lenders, agents, contractors, successors and assigns from and against any and all claims, judgments, causes of action, damages, penalties, costs, liabilities, and expenses, including all costs, attorneys' fees, expenses and liabilities incurred in the defense of any such claim or any action or proceeding brought thereon, arising at any time during or after the Term as a result (directly or indirectly) of or in connection with (a) any default in the performance of any obligation on Tenant's part to be performed under the terms of this Lease, or (b) Tenant's use of the Premises, the conduct of Tenant's business or any activity, work or things done, permitted or suffered by Tenant or any Tenant Party in or about the Premises, the Building, the Common Area or other portions of the Project The foregoing indemnity obligation shall include, without limitation, any claim by any Tenant Party for any injury or illness caused or alleged to be caused in whole or in part by any furniture, carpeting, draperies, stoves or any other materials on the Premises Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to property or injury to person in, upon or about the Premises from any cause whatsoever The obligations of Tenant under this Article 18 shall survive the termination of this Lease with respect to any claims or liability arising prior to such termination.
 
ARTICLE 19
DAMAGE TO TENANT'S PROPERTY
 
Landlord or its agents shall not be liable for (i) any damage to any property entrusted to employees of the Project, (ii) loss or damage to any property by theft or otherwise, (iii) any injury or damage to property resulting from fire, explosion, falling plaster, steam, gas, electricity, water or rain which may leak from any part of the Project or from the pipes, appliances or plumbing work therein or from the roof, street or sub-surface or from any other place or resulting from dampness or from any other cause whatsoever Landlord or its agents shall not be liable for interference with light or other incorporeal hereditaments, nor shall Landlord be liable for any damage caused by latent defect in the Premises or in the Project Tenant shall give prompt notice to Landlord in case of fire or accidents in the Premises or in the Project or of defects therein or in the fixtures or equipment.
 
ARTICLE 20
TENANT'S INSURANCE
 
(a)             Tenant shall, during the term hereof and any other period of occupancy, at its sole cost and expense, keep in full force and effect the following insurance:
 
(i)          Standard form property insurance insuring against the perils of fire, extended coverage, vandalism, malicious mischief, special extended coverage ("All-Risk") and sprinkler leakage.  This insurance policy shall be upon all property owned by Tenant, for which Tenant is legally liable or that was installed at Tenant's expense, and which is located in the Project including, without limitation, furniture, fittings, installations, fixtures (other than Tenant improvements installed by Landlord), and any other personal property in an amount not less than ninety percent (90%) of the full replacement cost thereof.  In the event that there shall be a dispute as to the amount which comprises full replacement cost, the decision of Landlord or any mortgagees of Landlord shall be conclusive.  This insurance policy shall also be upon direct or indirect loss of Tenant's earnings attributable to Tenant's inability to use fully or obtain access to the Premises or Project in an amount as will properly reimburse Tenant.  Such policy shall name Landlord and any mortgagees of Landlord as insured parties, as their respective interests may appear.
 
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(ii)         Commercial General Liability Insurance insuring Tenant against any liability arising out of the lease, use, occupancy or maintenance of the Premises and all areas appurtenant thereto.  Such insurance shall be in the amount of $5,000,000 Combined Single Limit for injury to, or death of one or more persons in an occurrence, and for damage to tangible property (including loss of use) in an occurrence, with such liability amount to be adjusted from year to year to reflect increases in the Consumer Price Index.  The policy shall insure the hazards of premises and operation, independent contractors, contractual liability (covering the Indemnity contained in Section 18 hereof) and shall (1 ) name Landlord as an additional insured, and (2 ) contain a cross liability provision, and (3 ) contain a provision that "the insurance provided the Landlord hereunder shall be primary and non-contributing with any other insurance available to the Landlord."
 
(iii)        Workers' Compensation and Employer's Liability insurance (as required by state law).
 
(iv)        Rental loss insurance in an amount equal to all unpaid Rent which would be due for a period of eighteen (18) months under the Lease.  The amount of such rental loss insurance shall be increased from time to time during the Term as and when the Rent increases (including estimated increases in Additional Rent as reasonably determined by Landlord).
 
(v)         Tenant shall obtain and maintain loss of income and extra expense insurance in amounts as will reimburse Tenant for direct or indirect loss of earnings attributable to all peril commonly insured against by prudent lessees in the business of Tenant or attributable to prevention of access to the Premises as a result of such perils.
 
(vi)        Any other form or forms of insurance as Tenant or Landlord or any mortgagees of Landlord may reasonably require from time to time in form, in amounts and for insurance risks against which a prudent tenant would protect itself
 
(b)             All policies shall be written in a form satisfactory to Landlord and shall be taken out with insurance companies holding a General Policyholders Rating of "A" and a Financial Rating of "X" or better, as set forth in the most current issue of Bests Insurance Guide Within ten (10) days after the execution of this Lease, Tenant shall deliver to Landlord copies of policies or certificates evidencing the existence of the amounts and forms of coverage satisfactory to Landlord No such policy shall be cancelable or reducible in coverage except after thirty (30) days prior written notice to Landlord Tenant shall, within ten days prior to the expiration of such policies, furnish Landlord with renewals or "binders" thereof, or Landlord may order such insurance and charge the cost thereof to Tenant as additional rent If Landlord obtains any insurance that is the responsibility of Tenant under this section, Landlord shall deliver to Tenant a written statement setting forth the cost of any such insurance and showing in reasonable detail the manner in which it has been computed All insurance policies required to be carried by Tenant covering the Premises, including but not limited to contents, fire, and casualty insurance, shall to the extent permitted by law expressly waive any right on the part of the insurer against the Landlord The failure of any insurance policy to include such waiver clause or endorsement shall not affect the validity of this Lease.
 
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ARTICLE 21
DAMAGE OR DESTRUCTION
 
21.1           Casualty .  If the Premises or Building should be damaged or destroyed by fire or other casualty, Tenant shall give immediate written notice to Landlord.  Within thirty (30) days after receipt from Tenant of such written notice, Landlord shall notify Tenant whether the necessary repairs can reasonably be made: (a ) within ninety (90) days; (b ) in more than ninety (90) days but in less than one hundred eighty (180) days; or (c ) in more than one hundred eighty (180) days, in each case after the date of the issuance of permits for the necessary repair or reconstruction of the portion of the Building or Premises which was damaged or destroyed.
 
21.1.1        Less Than 90 Days .  If the Premises or Building should be damaged only to such extent that rebuilding or repairs can reasonably be completed within ninety (90) days after the issuance of permits for the necessary repair or reconstruction of the portion of the Building or Premises which was damaged or destroyed, this Lease shall not terminate and, provided that insurance proceeds are available to pay for the full repair of all damage, Landlord shall repair the Premises, except that Landlord shall not be required to rebuild, repair or replace Tenant's Property which may have been placed in, on or about the Premises by or for the benefit of Tenant.  If Tenant is required to vacate all or a portion of the Premises during Landlord's repair thereof, the Base Rent payable hereunder shall be abated proportionately on the basis of the size of the area of the Premises that is damaged (i.e., the number of square feet of floor area of the Premises that is damaged compared to the total square footage of the floor area of the Premises) from the date Tenant vacates all or a portion of the Premises that was damaged only to the extent rental abatement insurance proceeds are received by Landlord and only during the period the Premises are unfit for occupancy.
 
21.1.2        Greater Than 90 Days .  If the Premises or Building should be damaged only to such extent that rebuilding or repairs can reasonably be completed in more than ninety (90) days but in less than one hundred eighty (180) days after the issuance of permits for the necessary repair or reconstruction of the portion of the Building or Premises which was damaged or destroyed, then Landlord shall have the option of: (a ) terminating the Lease effective upon the occurrence of such damage, in which event the Base Rent shall be abated from the date Tenant vacates the Premises; or (b ) electing to repair the Premises, provided insurance proceeds are available to pay for the full repair of all damage (except that Landlord shall not be required to rebuild, repair or replace Tenant's Property).  If Tenant is required to vacate all or a portion of the Premises during Landlord's repair thereof, the Base Rent payable hereunder shall be abated proportionately on the basis of the size of the area of the Premises that is damaged (i.e., the number of square feet of floor area of the Premises that is damaged compared to the total square footage of the floor area of the Premises) from the date Tenant vacates all or a portion of the Premises that was damaged only to the extent rental abatement insurance proceeds are received by Landlord and only during the period the Premises are unfit for occupancy.  In the event that Landlord should fail to substantially complete such repairs within one hundred eighty (180) days after the issuance of permits for the necessary repair or reconstruction of the portion of the Building or Premises which was damaged or destroyed (such period to be extended for delays caused by Tenant or because of any items of Force Majeure (as hereinafter defined), and Tenant has not reoccupied the Premises, Tenant shall have the right, as Tenant's exclusive remedy, within ten (10) days after the expiration of such one hundred eighty (180) day period, and provided that such repairs have not been substantially completed within such ten (10) day period, to terminate this Lease by delivering written notice to Landlord as Tenant's exclusive remedy, whereupon all rights of Tenant hereunder shall cease and terminate thirty (30) days after Landlord's receipt of such notice.
 
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21.1.3        Greater Than 180 Days .   If the Premises or Building should be so damaged that rebuilding or repairs cannot be completed within one hundred eighty (180) days after the issuance of permits for the necessary repair or reconstruction of the portion of the Building or Premises which was damaged or destroyed, either Landlord or Tenant may terminate this Lease by giving written notice within ten (10) days after notice from Landlord specifying such time period of repair; and this Lease shall terminate and the Rent shall be abated from the date Tenant vacates the Premises.  In the event that neither party elects to terminate this Lease, Landlord shall commence and prosecute to completion the repairs to the Building or Premises, provided insurance proceeds are available to pay for the repair of all damage (except that Landlord shall not be required to rebuild, repair or replace Tenant's Property).  If Tenant is required to vacate all or a portion of the Premises during Landlord's repair thereof, the Base Rent payable hereunder shall be abated proportionately on the basis of the size of the area of the Premises that is damaged (i.e., the number of square feet of floor area of the Premises that is damaged compared to the total square footage of the floor area of the Premises), from the date Tenant vacates all or a portion of the Premises that was damaged only to the extent rental abatement insurance proceeds are received by Landlord and only during the period that the Premises are unfit for occupancy.
 
21.1.4        Casualty During the Last Year of the Lease Term .  Notwithstanding any other provisions hereof, if the Premises or the Building shall be damaged within the last year of the Lease Term, and if the cost to repair or reconstruct the portion of the Building or the Premises which was damaged or destroyed shall exceed $10,000, then, irrespective of the time necessary to complete such repair or reconstruction, Landlord shall have the right, in its sole and absolute discretion, to terminate the Lease effective upon the occurrence of such damage, in which event the Rent shall be abated from the date Tenant vacates the Premises.  The foregoing right shall be in addition to any other right and option of Landlord under this Article 21.
 
21.2           Uninsured Casualty .  Tenant shall be responsible for and shall pay to Landlord Tenant's share of any deductible or retention amount payable under the property insurance for the Building.  In the event that the Premises or any portion of the Building is damaged to the extent Tenant is unable to use the Premises and such damage is not covered by insurance proceeds received by Landlord or in the event that the holder of any indebtedness secured by the Premises requires that the insurance proceeds be applied to such indebtedness, then Landlord shall have the right at Landlord's option, in Landlord's sole and absolute discretion, either (i ) to repair such damage as soon as reasonably possible at Landlord's expense, or (ii ) to give written notice to Tenant within thirty (30) days after the date of the occurrence of such damage of Landlord's intention to terminate this Lease as of the date of the occurrence of such damage.  In the event Landlord elects to terminate this Lease, Tenant shall have the right within ten (10) days after receipt of such notice to give written notice to Landlord of Tenant's commitment to pay the cost of repair of such damage, in which event this Lease shall continue in full force and effect, and Landlord shall make such repairs as soon as reasonably possible subject to the following conditions: Tenant shall deposit with Landlord Landlord's estimated cost of such repairs not later than five (5) business days prior to Landlord's commencement of the repair work.  If the cost of such repairs exceeds the amount deposited, Tenant shall reimburse Landlord for such excess cost within ten (10) business days after receipt of an invoice from Landlord.  Any amount deposited by Tenant in excess of the cost of such repairs shall be refunded within thirty (30) days of Landlord's final payment to Landlord's contractor.  If Tenant does not give such notice within the ten (10) day period, or fails to make such deposit as required, Landlord shall have the right, in Landlord's sole and absolute discretion, to immediately terminate this Lease to be effective as of the date of the occurrence of the damage.
 
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21.3           Waiver .  With respect to any damage or destruction which Landlord is obligated to repair or may elect to repair, Tenant waives all rights to terminate this Lease pursuant to rights otherwise presently or hereafter accorded by law, including without limitation any rights granted under Section 1932, subdivision 2, and Section 1933, of the California Civil Code.
 
ARTICLE 22
EMINENT DOMAIN
 
22.1           Total Condemnation .  If all of the Premises is condemned by eminent domain, inversely condemned or sold under threat of condemnation for any public or quasi-public use or purpose ("Condemned"), this Lease shall terminate as of the earlier of the date the condemning authority takes title to or possession of the Premises, and Rent shall be adjusted to the date of termination.
 
22.2           Partial Condemnation .  If any portion of the Premises or the Building is Condemned and such partial condemnation materially impairs Tenant's ability to use the Premises for Tenant's business as reasonably determined by Landlord, Landlord shall have the option in Landlord's sole and absolute discretion of either (i ) relocating Tenant to comparable space within the Project or (ii ) terminating this Lease as of the earlier of the date title vests in the condemning authority or as of the date an order of immediate possession is issued and Rent shall be adjusted to the date of termination.  If such partial condemnation does not materially impair Tenant's ability to use the Premises for the business of Tenant, Landlord shall promptly restore the Premises to the extent of any condemnation proceeds recovered by Landlord, excluding the portion thereof lost in such condemnation, and this Lease shall continue in full force and effect except that after the date of such title vesting or order of immediate possession Rent shall be adjusted as reasonably determined by Landlord.
 
22.3           Award .  If the Premises are wholly or partially Condemned, Landlord shall be entitled to the entire award paid for such condemnation, and Tenant waives any claim to any part of the award from Landlord or the condemning authority; provided, however, Tenant shall have the right to recover from the condemning authority such compensation as may be separately awarded to Tenant in connection with costs in removing Tenant's merchandise, furniture, fixtures, leasehold improvements and equipment to a new location.  No condemnation of any kind shall be construed to constitute an actual or constructive eviction of Tenant or a breach of any express or implied covenant of quiet enjoyment.  Tenant hereby waives the effect of Sections 1265.120 and 1265.130 of the California Code of Civil Procedure.
 
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22.4           Temporary Condemnation .  In the event of a temporary condemnation not extending beyond the Term, this Lease shall remain in effect, Tenant shall continue to pay Rent and Tenant shall receive any award made for such condemnation except damages to any of Landlord's property.  If a temporary condemnation is for a period which extends beyond the Term, this Lease shall terminate as of the date of initial occupancy by the condemning authority and any such award shall be distributed in accordance with the preceding section.  If a temporary condemnation remains in effect at the expiration or earlier termination of this Lease, Tenant shall pay Landlord the reasonable cost of performing any obligations required of Tenant with respect to the surrender of the Premises.
 
ARTICLE 23
DEFAULTS AND REMEDIES
 
23.1           Event of Default .  The occurrence of any one or more of the following events shall constitute a default (an "Event of Default") hereunder by Tenant:
 
(i)              The vacation or abandonment of the Premises by Tenant.  Abandonment is herein defined to include, but is not limited to, any absence by Tenant from the Premises for five (5) business days or longer.
 
(ii)             The failure by Tenant to make any payment of rent or additional rent or any other payment required to be made by Tenant hereunder, as and when due.
 
(iii)            The failure by Tenant to observe or perform any of the express or implied covenants or provisions of this Lease to be observed or performed by Tenant, other than as specified in Section 23.1(a)(i) or (ii) above.
 
(iv)            (1 ) The making by Tenant of any general assignment for the benefit of creditors; (2 ) the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt or a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within thirty (30) days); (3 ) the appointment of a trustee or receiver to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or (4 ) the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease where such seizure is not discharged within thirty days.
 
(v)             The making of any material misrepresentation or omission by Tenant or any successor in interest of Tenant in any materials delivered by or on behalf of Tenant to Landlord or Landlord's lender pursuant to this Lease.
 
(vi)            The occurrence of an Event of Default set forth in any of the foregoing clauses (iv) or (v) with respect to any guarantor of this Lease, if applicable.
 
(vii)           At the option of Landlord, in its sole and absolute discretion, if Tenant occupies any other space in the Project (the "Other Premises", provided that the Premises and the Other Premises are both owned by Landlord at the time of the default), whether by lease, sublease or assignment (in any case, an "Occupancy Agreement"), the occurrence of an Event of Default hereunder shall also be a default or event of default under the Occupancy Agreement and a default or event of default under such Occupancy Agreement shall be an Event of Default hereunder.
 
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(viii)          Any failure of Tenant or any guarantor of this Lease to comply with the terms of Section 49(b) hereof.
 
23.2           Remedies .
 
23.2.1        Termination .  In the event of the occurrence of any Event of Default, Landlord shall have the right to give a written termination notice to Tenant (which notice shall be in lieu of any notice required by California Code of Civil Procedure Section 1161, et seq.) and, on the date specified in such notice, this Lease shall terminate unless on or before such date all arrears of Rent and all other sums payable by Tenant under this Lease and all costs and expenses incurred by or on behalf of Landlord hereunder shall have been paid by Tenant and all other Events of Default at the time existing shall have been fully remedied to the satisfaction of Landlord.
 
23.2.2        Repossession .  Following termination, without prejudice to other remedies Landlord may have, Landlord may (i ) peaceably re-enter the Premises upon voluntary surrender by Tenant or remove Tenant therefrom and any other persons occupying the Premises, using such legal proceedings as may be available; (ii ) repossess the Premises or relet the Premises or any part thereof for such term (which may be for a term extending beyond the Term), at such rental and upon such other terms and conditions as Landlord in Landlord's sole discretion shall determine, with the right to make reasonable alterations and repairs to the Premises; and (iii ) remove all personal property therefrom.
 
23.2.3        Unpaid Rent/Sums Expended by Landlord .  Landlord shall have all the rights and remedies of a landlord provided by Applicable Law, including the right to recover from Tenant: (a ) the worth, at the time of award, of the unpaid Rent that had been earned at the time of termination, (b) the worth, at the time of award, of the amount by which the unpaid Rent that would have been earned after the date of termination until the time of award exceeds the amount of loss of rent that Tenant proves could have been reasonably avoided, (c ) the worth, at the time of award, of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided, (d ) all unamortized free rent, if any, (e ) any and all unamortized sums expended by Landlord for tenant improvements and leasing commissions, and (f ) any other amount, and court costs, necessary to compensate Landlord for all detriment proximately caused by Tenant's default.  The phrase "worth, at the time of award," as used in (a) and (b) above, shall be computed at the Applicable Interest Rate, and as used in (c) above, shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1%).  The items referenced in (d) and (e) shall be amortized on a straight line basis over the length of the Term of this Lease.
 
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23.2.4        Continuation .  Even though an Event of Default may have occurred, this Lease shall continue in effect for so long as Landlord does not terminate Tenant's right to possession; and Landlord may enforce all of Landlord's rights and remedies under this Lease, including the remedy described in California Civil Code Section 1951.4 ("lessor" may continue the Lease in effect after "lessee's" breach and abandonment and recover Rent as it becomes due, if "lessee" has the right to sublet or assign, subject only to reasonable limitations) to recover Rent as it becomes due.  Landlord, without terminating this Lease, may, during the period Tenant is in default, enter the Premises and relet the same, or any portion thereof, to third parties for Tenant's account and Tenant shall be liable to Landlord for all costs Landlord incurs in reletting the Premises, including, without limitation, brokers' commissions, expenses of remodeling the Premises and like costs.  Reletting may be for a period shorter or longer than the remaining Term.  Tenant shall continue to pay the Rent on the date the same is due.  No act by Landlord hereunder, including acts of maintenance, preservation or efforts to lease the Premises or the appointment of a receiver upon application of Landlord to protect Landlord's interest under this Lease, shall terminate this Lease unless Landlord notifies Tenant that Landlord elects to terminate this Lease.  In the event that Landlord elects to relet the Premises, the rent that Landlord receives from reletting shall be applied to the payment of, first, any indebtedness from Tenant to Landlord other than Base Rent and Additional Rent; second, all costs, including maintenance, incurred by Landlord in reletting; and, third, Base Rent and Additional Rent under this Lease.  After deducting the payments referred to above, any sum remaining from the rental Landlord receives from reletting shall be held by Landlord and applied in payment of future Rent as Rent becomes due under this Lease.  In no event shall Tenant be entitled to any excess rent received by Landlord.  If, on the date Rent is due under this Lease, the rent received from the reletting is less than the Rent due on that date, Tenant shall pay to Landlord, in addition to the remaining Rent due, all costs, including maintenance, which Landlord incurred in reletting the Premises that remain after applying the rent received from reletting as provided hereinabove.  So long as this Lease is not terminated, Landlord shall have the right to remedy any default of Tenant, to maintain or improve the Premises, to cause a receiver to be appointed to administer the Premises and new or existing subleases and to add to the Rent payable hereunder all of Landlord's reasonable costs in so doing, including without limitation attorney's fees and costs, with interest at the Applicable Interest Rate from the date of such expenditure.  Landlord shall have no duty to relet the Premises so long as it has other unleased space available in the Project.
 
23.2.5        Cumulative .  Each right and remedy of Landlord provided for herein or now or hereafter existing at law, in equity, by statute or otherwise shall be cumulative and shall not preclude Landlord from exercising any other rights or remedies provided for in this Lease or now or hereafter existing at law or in equity, by statute or otherwise.  No payment by Tenant of a lesser amount than the Rent nor any endorsement on any check or letter accompanying any check or payment as Rent shall be deemed an accord and satisfaction of full payment of Rent; and Landlord may accept such payment without prejudice to Landlord's right to recover the balance of such Rent or to pursue other remedies.
 
ARTICLE 24
ASSIGNMENT AND SUBLETTING
 
24.1           Tenant shall not voluntarily assign or encumber its interest in this Lease or in the Premises, or sublease all or any part of the Premises, or allow any other person or entity to occupy or use all or any part of the Premises, without first obtaining Landlord's prior written consent.  Any sublease shall be in the form of sublease attached hereto as EXHIBIT G .  Any assignment, encumbrance or sublease without Landlord's prior written consent shall be voidable, at Landlord's election, and shall constitute a default and at the option of the Landlord shall result in a termination of this Lease.  No consent to assignment, encumbrance, or sublease shall constitute a further waiver of the provisions of this section.  Tenant shall notify Landlord in writing of Tenant's intent to sublease, encumber or assign this Lease and Landlord shall, within thirty (30) days of receipt of such written notice, elect one of the following:
 
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(a)             Consent to such proposed assignment, encumbrance or sublease;
 
(b)             Refuse such consent, which refusal shall be on reasonable grounds; or
 
(c)             Recapture the entire Premises, or at Lender's election, such part as Tenant desires to sublease or assign, in the sole and absolute discretion of Landlord.
 
In the event Landlord consents to an assignment or sublease in accordance with this Lease, the Base Rent per month under this Lease shall be increased to the fair market value as reasonably determined by Landlord, to be effective on the effective date of such assignment or sublease; provided that in no event shall the amount of Base Rent be lower than the amount of Base Rent Tenant is then paying under the Lease.
 
24.2           As a condition for granting its consent to any assignment, encumbrance or sublease, sixty (60) days prior to any anticipated assignment or sublease Tenant shall give Landlord and Landlord's lender written notice (the "Assignment Notice"), which shall set forth the name, address and business of the proposed assignee or sublessee, information (including references) concerning the character, ownership, and financial condition of the proposed assignee or sublessee, and the Assignment Date, any ownership or commercial relationship between Tenant and the proposed assignee or sublessee, and the consideration of all other material terms and conditions of the proposed assignment or sublease, all in such detail as Landlord shall reasonably require.  If Landlord requests additional detail, the Assignment Notice shall not be deemed to have been received until Landlord receives such additional detail, and Landlord may withhold consent to any assignment or sublease until such additional detail is provided to it.  Further, Landlord may require that the sublessee or assignee remit directly to Landlord on a monthly basis, all monies due to Tenant by said assignee or sublessee.
 
24.3           The consent by Landlord to any assignment or subletting shall not be construed as relieving Tenant or any assignee of this Lease or sublessee of the Premises from obtaining the express written consent of Landlord to any further assignment or subletting or as releasing Tenant or any assignee or sublessee of Tenant from any liability or obligation hereunder whether or not then accrued.  Regardless of whether or not Landlord shall consent to an assignment or sublease, Tenant shall pay Landlord all of Landlord's attorneys' fees and administrative costs incurred in connection with evaluating the Assignment Notice immediately upon demand.  This section shall be fully applicable to all further sales, hypothecations, transfers, assignments and subleases of any portion of the Premises by any successor or assignee of Tenant, or any sublessee of the Premises.
 
24.4           As used in this section, the subletting of substantially all of the Premises for substantially all of the remaining term of this Lease shall be deemed an assignment rather than a sublease.  The assignment, sale or transfer of a twenty-five (25%) interest in Tenant shall be deemed an assignment requiring Landlord's consent hereunder.  Notwithstanding the foregoing, Landlord shall consent to the assignment, sale or transfer if the Assignment Notice states that Tenant desires to assign the Lease to any entity into which Tenant is merged, with which Tenant is consolidated or which acquires all or substantially all of the assets of Tenant, provided that the assignee first executes, acknowledges and delivers to Landlord an agreement whereby the assignee agrees to be bound by all of the covenants and agreements in this Lease which Tenant has agreed to keep, observe or perform, that the assignee agrees that the provisions of this section shall be binding upon it as if it were the original Tenant hereunder and that the assignee shall have a net worth (determined in accordance with generally accepted accounting principles consistently applied) immediately after such assignment which is at least equal to the net worth (as so determined) of Tenant: (1 ) at the commencement of this Lease or (2 ) immediately before such assignment; whichever is greater.
 
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24.5           Except as provided above, Landlord's consent to any sublease shall not be unreasonably withheld.  A condition to such consent shall be delivery by Tenant to Landlord of a true copy of the sublease substantially in the form attached hereto as EXHIBIT G .  If for any proposed assignment or sublease Tenant receives rent or other consideration, either initially or over the term of the assignment or sublease, in excess of the Rent called for hereunder (as such Rent is adjusted pursuant to Section 24.1), or, in case of the sublease of a portion of the Premises, in excess of such rent fairly allocable to such portion, after appropriate adjustments to assure that all other payments called for hereunder are taken into account, Tenant shall pay to Landlord as Additional Rent hereunder fifty percent (50%) of the excess of each such payment of rent or other consideration received by Tenant promptly after its receipt.  Landlord's waiver or consent to any assignment or subletting shall not relieve Tenant from any obligation under this lease.  For the purpose of this section, the Rent for each square foot of floor space in the Premises shall be deemed equal.
 
ARTICLE 25
SUBORDINATION; MORTGAGEE PROTECTION
 
25.1           Subordination .  This Lease shall be subject and subordinate to all ground leases, master leases and the lien of all mortgages and deeds of trust which now or hereafter affect the Premises or the Project or Landlord's interest therein, the CC&Rs and all amendments thereto, all without the necessity of Tenant's executing further instruments to effect such subordination.  If requested, Tenant shall execute and deliver to Landlord within ten (10) days after Landlord's request whatever documentation that may reasonably be required to further effect the provisions of this section including, without limitation, a Subordination, Nondisturbance and Attornment Agreement in such form as may be required by Landlord's lender.  Should any holder of a mortgage or deed of trust request that this Lease and Tenant's rights hereunder be made superior, rather than subordinate, to the mortgage or deed of trust, then Tenant will, within ten (10) days after written request, execute and deliver such agreement as may be required by such holder in order to effectuate and evidence such superiority of the Lease to the mortgage or deed of trust.
 
25.2           Attornment .  Tenant hereby agrees that Tenant will recognize as its landlord under this Lease and shall attorn to any person succeeding to the interest of Landlord in respect of the land and the buildings governed by this Lease upon any foreclosure of any mortgage upon such land or buildings or upon the execution of any deed in lieu of foreclosure in respect to such deed of trust.  If requested, Tenant shall execute and deliver an instrument or instruments confirming its attornment as provided for herein; provided, however, that no such beneficiary or successor-in-interest shall be bound by any payment of Base Rent for more than one (1) month in advance, or any amendment or modification of this Lease made without the express written consent of such beneficiary where such consent is required under applicable loan documents.
 
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25.3           Mortgagee Protection .  Tenant agrees to give Landlord's lender or any holder of any mortgage or deed of trust secured by the Project, by registered or certified mail or nationally recognized overnight delivery service, a copy of any notice of default served upon the Landlord by Tenant, provided that, prior to such notice, Tenant has been notified in writing (by way of service on Tenant of a copy of assignment of rents and leases or otherwise) of the address of such lender or such holder of a mortgage or deed of trust.  Tenant further agrees that if Landlord shall have failed to cure such default within sixty (60) days after such notice to Landlord (or if such default cannot be cured or corrected within that time, then such additional time as may be -necessary if Landlord has commenced within such sixty (60) day period and is diligently pursuing the remedies or steps necessary to cure or correct such default), then Landlord's lender or the holder of any mortgage or deed of trust shall have an additional ninety (90) days within which to cure or correct such default (or if such default cannot be cured or corrected within that time, then such additional time as may be necessary if such holder of any mortgage or deed of trust has commenced within such ninety (90) day period and is diligently pursuing the remedies or steps necessary to cure or correct such default) .  Notwithstanding the foregoing, in no event shall Landlord's lender or any holder of any mortgage or deed of trust have any obligation to cure any default of the Landlord.
 
ARTICLE 26
ESTOPPEL CERTIFICATE
 
(a)             Within ten days following any written request which Landlord or Landlord's lender may make from time to time, Tenant shall duly execute (and if required by Landlord or Landlord's lender, have such signature acknowledged) and deliver to Landlord and Landlord's lender; an estoppel certificate in the form then in use by Landlord or its lender.  Landlord and Tenant intend that any statement delivered pursuant to this Article 26 may be relied upon by any mortgagee, beneficiary, purchaser or prospective purchaser of the Building or Project or any interest therein.
 
(b)             Tenant's failure to deliver such statement within such time shall be an Event of Default hereunder and shall conclusive upon Tenant:
 
(i)          That this Lease is in full force and effect, without modification except as may be represented by Landlord,
 
(ii)         That there are no uncured defaults in Landlord's performance,
 
(iii)        That not more than one month's rental has been paid in advance; and hereunder,
 
If Landlord's lender should require that this Lease be amended (other than in the description of the Premises, the Term, the Permitted Use, the Rent or as will substantially, materially and adversely affect the rights of Tenant), Landlord shall give written notice thereof to Tenant, which notice shall be accompanied by a Lease supplement embodying such amendments Tenant shall, within ten (10) days after the receipt of Landlord's notice, execute and deliver to Landlord the tendered Lease supplement If Tenant fails to deliver to Landlord the tendered Lease supplement within ten (10) days after receipt of Landlord's notice, Tenant shall be deemed to have given Landlord a power of attorney to execute such supplement on behalf of Tenant.
 
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ARTICLE 27
SIGNAGE
 
Landlord shall provide for Tenant the opportunity to have Tenant's name placed upon the Building lobby directory sign, and at Tenant's entrance to the Premises Tenant shall have no other right to maintain a Tenant identification sign in any other location in, on or about the Premises, the Building, the Project, or Bernal Corporate Park and shall not display or erect any Tenant identification sign, display or other advertising material that is visible from the exterior of the Building The size, design, color and other physical aspects of the Tenant identification sign shall be subject to Landlord's written reasonable approval prior to installation The cost of the installation of the sign, and its maintenance and removal expense, shall be at Tenant's sole expense If Tenant fails to maintain its sign or if Tenant fails to remove its sign upon termination of this Lease, Landlord may do so at Tenant's expense and Tenant's reimbursement to Landlord for such amounts shall be deemed additional rent All signs shall comply with rules and regulations set forth by Landlord as may be modified from time to time.
 
ARTICLE 28
RULES AND REGULATIONS
 
Tenant shall faithfully observe and comply with the "Rules and Regulations," a copy of which is attached hereto and marked EXHIBIT D , and all reasonable and nondiscriminatory modifications thereof and additions thereto from time to time put into effect by Landlord Landlord shall not be responsible to Tenant for the violation or non-performance by any other tenant or occupant of the Project of any of said Rules and Regulations.
 
ARTICLE 29
CONFLICT OF LAWS
 
This Lease shall be governed by and construed pursuant to the laws of the State of California.
 
ARTICLE 30
SUCCESSORS AND ASSIGNS
 
Except as otherwise provided in this Lease, all of the covenants, conditions and provisions of this Lease shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns.
 
ARTICLE 31
SURRENDER OF PREMISES
 
The voluntary or other surrender of this Lease by Tenant, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of Landlord, operate as an assignment to it of any or all subleases and subtenancies.
 
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ARTICLE 32
ATTORNEYS' FEES
 
(a)             If Landlord should bring suit for possession of the Premises, for the recovery of any sum due under this Lease, or because of the breach of any provisions of this Lease, or for any other relief against Tenant hereunder, or in the event of any other litigation between the parties with respect to this Lease, then all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party therein shall be paid by the other party, which obligation on the part of the other party shall be deemed to have accrued on the date of the commencement of such action and shall be enforceable whether or not the action is prosecuted to judgment.
 
(b)             If Landlord is named as a defendant in any suit brought against Tenant in connection with or arising out of Tenant's occupancy hereunder, Tenant shall pay to Landlord its costs and expenses incurred in such suit, including reasonable attorneys' fees.
 
ARTICLE 33
PERFORMANCE BY TENANT
 
All covenants and agreements to be performed by Tenant under any of the terms of this Lease shall be performed by Tenant at Tenant's sole cost and expense and without any abatement of rent If Tenant shall fail to pay any sum of money owed to any party other than Landlord, for which it is liable hereunder or if Tenant shall fail to perform any other act on its part to be performed hereunder, Landlord may, without waiving or releasing Tenant from obligations of Tenant, but shall not be obligated to, make any such payment or perform any such other act to be made or performed by Tenant All sums so paid by Landlord and all necessary incidental costs together with interest thereon at the maximum rate permissible by law, from the date of such payment by Landlord, shall be payable to Landlord on demand Tenant covenants to pay any such sums and Landlord shall have (in addition to any other right or remedy of Landlord) all rights and remedies in the event of the non-payment thereof by Tenant as are set forth in Article 23 hereof.
 
ARTICLE 34
MORTGAGEE PROTECTION
 
In the event of any default on the part of Landlord, Tenant will give notice by registered or certified mail to any beneficiary of a deed of trust or mortgage covering the Premises whose address shall have been furnished to Tenant, and shall offer such beneficiary or mortgagee a reasonable opportunity to cure the default, including time to obtain possession of the Premises by power of sale or a judicial foreclosure, if such should prove necessary to effect a cure.
 
ARTICLE 35
DEFINITION OF LANDLORD
 
The term "Landlord", as used in this Lease, so far as covenants or obligations on the part of Landlord are concerned, shall be limited to mean and include only the owner or owners, at the time in question, of the fee title of the Premises or the lessees under any ground lease, if any In the event of any transfer, assignment or other conveyance or transfers of any such title, Landlord herein named (and in case of any subsequent transfers or conveyances, the then grantor) shall be automatically freed and relieved from and after the date of such transfer, assignment or conveyance of all liability as respects the performance of any covenants or obligations on the part of Landlord contained in this Lease thereafter to be performed Without further agreement, the transferee of such title shall be deemed to have assumed and agreed to observe and perform any and all obligations of Landlord hereunder, during its ownership of the Premises Landlord may transfer its interest in the Premises without the consent of Tenant and such transfer or subsequent transfer shall not be deemed a violation on Landlord's part of any of the terms and conditions of this Lease.
 
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ARTICLE 36
WAIVER
 
The waiver by Landlord of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition herein contained, nor shall any custom or practice which may grow up between the parties in the administration of the terms hereof be deemed a waiver of or in any way affect the right of Landlord to insist upon the performance by Tenant in strict accordance with said terms The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant or any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular rent so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such rent Without limiting the generality of the foregoing, the acceptance of Rent hereunder by Landlord shall not be a waiver of any preceding breach by Tenant of any provision hereof, other than the failure of Tenant to pay the particular Rent so accepted Tenant agrees and acknowledges that the foregoing provides actual and sufficient knowledge to Tenant, pursuant to California Code of Civil Procedure Section 1161.1(c), that acceptance of a partial rent payment by Landlord does not constitute a waiver of any of Landlord's rights under said Section 1161.1(c).
 
ARTICLE 37
IDENTIFICATION OF TENANT
 
If more than one person executes this Lease as Tenant:
 
(i)          Each of them is jointly and severally liable for the keeping, observing and performing of all of the terms, covenants, conditions, provisions and agreements of this Lease to be kept, observed and performed by Tenant, and
 
(ii)         The term "Tenant" as used in this Lease shall mean and include each of them jointly and severally.  The act of or notice from, or notice to refund to, or the signature of any one or more of them, with respect to the tenancy of this Lease, including, but not limited to any renewal, extension, expiration, termination or modification of this Lease, shall be binding -upon each and all of the persons executing this Lease as Tenant with the same force and effect as:, if each and all of them had so acted or so given or received such notice or refund or so signed.
 
ARTICLE 38
PARKING
 
The use by Tenant, its employees and invitees, of the parking facilities of the Project shall be on the terms and conditions set forth in EXHIBIT E attached hereto and by this reference incorporated herein and shall be subject to such other agreement between Landlord and Tenant as may hereinafter be established Tenant, its employees and invitees shall use no more than four (4) non-exclusive parking spaces per one thousand (1,000) square feet of leased space Tenant's use of the parking spaces shall be confined to the Project If, in Landlord's reasonable business judgment, it becomes necessary, Landlord shall exercise due diligence to cause the creation of cross-parking easements and such other agreements as are necessary to permit Tenant, its employees and invitees to use parking spaces on the properties and buildings of Bernal Corporate Park, which are separate legal parcels from the Project Tenant acknowledges that other tenants of the Project and the tenants of the other buildings, their employees and invitees, may be given the right to park at the Project.
 
ARTICLE 39
TERMS AND HEADINGS
 
The words "Landlord" and "Tenant" as used herein shall include the plural as well as the singular Words used in any gender include other genders The section headings of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof.
 
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ARTICLE 40
EXAMINATION OF LEASE
 
Submission of this instrument for examination or signature by Tenant does not constitute a reservation of or option for lease, and it is not effective as a lease or otherwise until execution by and delivery to both Landlord and Tenant.
 
ARTICLE 41
TIME
 
Time is of the essence with respect to the performance of every provision of this Lease in which time or performance is a factor.
 
ARTICLE 42
PRIOR AGREEMENT: AMENDMENTS
 
This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose No provisions of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective -successors in interest.
 
ARTICLE 43
SEPARABILITY
 
Any provision of this Lease which shall prove to be invalid, void or illegal in no way affects, impairs or invalidates any other provision hereof, any such other provisions shall remain in full force and effect.
 
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ARTICLE 44
RECORDING
 
Neither Landlord nor Tenant shall record this Lease nor a short form memorandum thereof without the consent of the other.
 
ARTICLE 45
CONSENTS
 
Unless otherwise specified herein, whenever the consent of either party is required hereunder such consent shall not be unreasonably withheld Tenant shall pay Landlord immediately upon demand all of Landlord's fees and administrative costs incurred in connection with evaluating any request by Tenant (or on behalf of Tenant) for any Landlord consent.
 
ARTICLE 46
LIMITATION ON LIABILITY
 
In consideration of the benefits accruing hereunder, Tenant and all successors and assigns covenant and agree that, in the event of any actual or alleged failure, breach or default hereunder by Landlord:
 
(a)             The sole and exclusive remedy shall be against the Landlord's interest in the Project;
 
(b)             No partner, member, shareholder, officer, agent or employee of Landlord shall be sued or named as a party in any suit or action (except as may be necessary to secure jurisdiction of Landlord);
 
(c)             No service or process shall be made against any partner, member, shareholder, officer, agent or employee of Landlord (except as may be necessary to secure jurisdiction of Landlord);
 
(d)             No partner, member, shareholder, officer, agent or employee of Landlord shall be required to answer or otherwise plead to any service of process;
 
(e)             No judgment will be taken against any partner, member, shareholder, officer, agent or employee of Landlord;
 
(f)              Any judgment taken against any partner, member, shareholder, officer, agent or employee of Landlord may be vacated and set aside at any time nunc pro tunc;
 
(g)             No writ of execution will ever be levied against the assets of any partner, officer, agent or employee of Landlord;
 
(h)             These covenants and agreements are enforceable both by Landlord and also by any partner, officer, agent or employee of Landlord.
 
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ARTICLE 47
RIDERS
 
Clauses, plats and riders, if any, signed by Landlord and Tenant and affixed to this Lease are a part hereof.
 
ARTICLE 48
EXHIBITS
 
All Exhibits attached hereto are incorporated into this Lease.
 
ARTICLE 49
MODIFICATION FOR LENDER; FINANCIAL INFORMATION
 
(a)             If, in connection with obtaining construction, interim or permanent financing for the Project the lender shall request reasonable modifications in this Lease as a condition to such financing, Tenant will not unreasonably withhold, delay or defer its consent thereto, provided that such modifications do not increase the obligations of Tenant hereunder or materially adversely affect the leasehold interest hereby created or Tenant's rights hereunder.
 
(b)             Prior to the date hereof, Tenant has delivered certain Financial Information (as hereinafter defined) to Landlord and Landlord has relied to a material extent on such financial information in agreeing to lease the Premises to Tenant.  Tenant represents, warrants, certifies and covenants to Landlord that: (i) all of the financial information (other than future projections, if any) (collectively, "Financial Information") delivered by Tenant to Landlord prior to the date hereof is true, correct and complete in all material respects as of the date of such Financial Information; (ii) the Financial Information accurately represents the financial condition of the Tenant as of the date of such Financial Information; (iii) if Tenant delivered unaudited Financial Information to Landlord, then Tenant does not have any audited financial statements for the three (3) calendar and/or fiscal years preceding the date hereof; (iv) the Financial Information was prepared using generally accepted accounting principles consistently applied; and (v) Tenant has delivered to Landlord all material information in Tenant's possession and/or control concerning the financial condition of Tenant.  Tenant shall at its own cost and expense, upon any written request by Landlord (not to exceed one (1) request every calendar quarter), deliver to Landlord true, correct and complete copies of Tenant's then most recent Financial Information, and if available, such Financial Information delivered to Landlord shall have been audited.  Any failure by Tenant to deliver its then most recent financial Information within ten (10) business days: (which shall be in lieu of any grace period set forth herein, if any) after a written request by Landlord to Tenant or if any Financial Information delivered by Tenant to Landlord is not true, correct and complete as of the date of such Financial Information shall in either case be an Event of Default by Tenant hereunder.  Tenant agrees and acknowledges that notwithstanding anything to the contrary set forth in this Lease, under no circumstances shall Tenant be afforded any notice and/or cure rights with regards to any Financial Information that is not true, correct and complete in all material respects as of the date of the Financial Information.  The foregoing provisions of this Section 49(b) shall also apply to any guarantor of this Lease.
 
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ARTICLE 50
PROJECT PLANNING
 
If Landlord requires the Premises for use in conjunction with another suite or for other reasons connected with the Project planning program, upon notifying Tenant in writing, Landlord shall have the right to relocate Tenant to other space in the Project, at Landlord's sole cost and expense, and the terms and conditions of the original Lease shall remain in full force and effect, except that a revised EXHIBIT A reflecting the location of the new space shall be attached to and become a part of this Lease However, if the new space does not meet with Tenant's approval, Tenant shall have the right to terminate this Lease effective thirty (30) days after written notice to Landlord, which notice shall be given within ten (10) days after receipt of Landlord's notification.
 
ARTICLE 51
HAZARDOUS MATERIALS
 
Tenant shall not cause nor permit, nor allow any Tenant Party to cause or permit, any Hazardous Materials to be brought upon, stored, manufactured, generated, blended, handled, recycled, treated, disposed or used on, under or about the Premises, the Building, the Common Area or the Project, except for routine office and janitorial supplies in usual and customary quantities stored, used and disposed of in accordance with all applicable Environmental Laws Tenant and Tenant's Parties shall comply with all Environmental Laws and promptly notify Landlord in writing of the violation of any Environmental Law or presence of any Hazardous Materials, other than office and janitorial supplies as permitted above, on the Premises Landlord shall have the right to enter upon and inspect the Premises and to conduct tests, monitoring and investigations If such tests indicate the presence of any environmental condition caused or exacerbated by Tenant or any Tenant Party or arising during Tenant's or any Tenant Party's occupancy, Tenant shall reimburse Landlord for the cost of conducting such tests The phrase "environmental condition" shall mean any adverse condition relating to any Hazardous Materials or the environment, including surface water, groundwater, drinking water supply, land, surface or subsurface strata or the ambient air and includes air, land and water pollutants, noise, vibration, light and odors In the event of any such environmental condition, Tenant shall promptly take any and all steps necessary to rectify the same to the satisfaction of the applicable agencies and Landlord, or shall, at Landlord's election, reimburse Landlord, upon demand, for the cost to Landlord of performing rectifying work The reimbursement shall be paid to Landlord in advance of Landlord's performing such work, based upon Landlord's reasonable estimate of the cost thereof; and upon completion of such work by Landlord, Tenant shall pay to Landlord any shortfall within thirty (30) days after Landlord bills Tenant therefore or Landlord shall within thirty (30) days refund to Tenant any excess deposit, as the case may be Tenant shall indemnify, protect, defend (by counsel acceptable to Landlord) and hold harmless Landlord and Landlord's affiliated entities, and each of their respective members, managers, partners, directors, officers, employees, shareholders, lenders, agents, contractors, along with the successors and assigns of the foregoing, (individually and collectively, "Indemnitees") from and against any and all claims, judgments, causes of action, damages, penalties, fines, taxes, costs, liabilities, losses and expenses arising at any time during or after the Term as a result (directly or indirectly) of or in connection with (a) Tenant and/or any Tenant Party's breach of this Article 51 or (b) the presence of Hazardous Materials on, under or about the Premises or other property as a result (directly or indirectly) of Tenant's and/or any Tenant Party's activities, or failure to act, in connection with the Premises This indemnity shall include, without limitation, the cost of any required or necessary repair, cleanup or detoxification, and the preparation and implementation of any closure, monitoring or other required plans, whether such action is required or necessary prior to or following the termination of this Lease Neither the written consent by Landlord to the presence of Hazardous Materials on, under or about the Premises, nor the strict compliance by Tenant with all Environmental Laws, shall excuse Tenant from Tenant's obligation of indemnification pursuant hereto Tenant's obligations pursuant to the foregoing indemnity shall survive the expiration or termination of this Lease.
 
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ARTICLE 52
COUNTERPARTS
 
This Lease may be executed in two or more fully or partially executed counterparts, any one or more of which may be executed and delivered by facsimile transmission, each of which will be deemed an original binding the signer thereof against the other signing parties, but all counterparts together will constitute one and the same instrument.
 
ARTICLE 53
FORCE MAJEURE
 
As used herein, a "Force Majeure" event shall mean any acts of God, inability to obtain labor, strikes, lockouts, lack of materials, governmental restrictions, enemy actions, civil commotion, fire, earthquake, unavoidable casualty or other similar causes beyond Landlord's control It is expressly agreed that Landlord shall not be obliged to settle any strike to avoid a Force Majeure event from continuing.
 
ARTICLE 54
WAIVER OF RIGHT TO TRIAL BY JURY
 
EACH PARTY TO THIS LEASE HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING HEREUNDER WHETHER SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION IS NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS LEASE MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF ANY RIGHT THEY MIGHT OTHERWISE HAVE TO TRIAL BY JURY.  NOTWITHSTANDING THE FOREGOING TO THE CONTRARY, IN THE EVENT THAT THE JURY TRIAL WAIVER CONTAINED HEREIN SHALL BE HELD OR DEEMED TO BE UNENFORCEABLE, EACH PARTY HERETO HEREBY EXPRESSLY AGREES TO SUBMIT TO JUDICIAL REFERENCE PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 638 THROUGH 645.1 ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING HEREUNDER FOR WHICH A JURY TRIAL WOULD OTHERWISE BE APPLICABLE OR AVAILABLE.  PURSUANT TO SUCH JUDICIAL REFERENCE, THE PARTIES AGREE TO THE APPOINTMENT OF A SINGLE REFEREE AND SHALL USE THEIR BEST EFFORTS TO AGREE ON THE SELECTION OF A REFEREE.  IF THE PARTIES ARE UNABLE TO AGREE ON A SINGLE A REFEREE, A REFEREE SHALL BE APPOINTED BY THE COURT UNDER CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 638 AND 640 TO HEAR ANY DISPUTES HEREUNDER IN LIEU OF ANY SUCH JURY TRIAL.  THE PARTIES ACKNOWLEDGE AND AGREE THAT THE APPOINTED REFEREE SHALL HAVE THE POWER TO DECIDE ALL ISSUES IN THE APPLICABLE ACTION OR PROCEEDING, WHETHER OF FACT OR LAW, AND SHALL REPORT A STATEMENT OF DECISION THEREON; PROVIDED, HOWEVER, THAT ANY MATTERS WHICH WOULD NOT OTHERWISE BE THE SUBJECT OF A JURY TRIAL WILL BE UNAFFECTED BY THIS WAIVER AND THE AGREEMENTS CONTAINED HEREIN.  THE PARTIES HERETO HEREBY AGREE THAT THE PROVISIONS CONTAINED HEREIN HAVE BEEN FAIRLY NEGOTIATED ON AN ARMS-LENGTH BASIS, WITH BOTH SIDES AGREEING TO THE SAME KNOWINGLY AND BEING AFFORDED THE OPPORTUNITY TO HAVE THEIR RESPECTIVE LEGAL COUNSEL CONSENT TO THE MATTERS CONTAINED HEREIN.  ANY PARTY TO THIS LEASE MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY AND THE AGREEMENTS CONTAINED HEREIN REGARDING THE APPLICATION OF JUDICIAL REFERENCE IN THE EVENT OF THE INVALIDITY OF SUCH JURY TRIAL WAIVER.
 
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IN WITNESS WHEREOF, the parties have executed this Lease as of the date first above written.
 
LANDLORD:
   
     
THE ROBISON FAMILY TRUST DATED
 
ADDRESS
OCTOBER 30, 1989
   
   
Streamline
THE ROBISON FAMILY TRUST DATED
   
OCTOBER 30, 1989
   
By:
/s/ Claire Robinson
   
Name: Clair Robison
   
Its: Trustee
   
 
TENANT:
   
     
RIMINI STREET, INC., a Nevada corporation
 
ADDRESS
     
By:
/s/ Thomas Shay
 
Prior to Commencement Date:
       
Its:
CTO
 
From and after Commencement Date:
       
     
Rimini Street, Inc.
     
7251 W. Lake Mend Blvd., Suite 300
     
Las Vegas, NV  89128
 

EXHIBIT A
OUTLINE OF TENANT'S FLOOR PLAN
 
[To be attached]
 
A-1

EXHIBIT A-1
THE PROJECT
 
The land referred to in this commitment is situated in the County of ALAMEDA, State of California, and is described as follows:
 
All that certain real property situated in the City of Pleasanton, County of Alameda, State of California, described as follows:
 
PARCEL ONE:
 
Parcel 3, Parcel Map 4979, filed February 27, 1987, in Book 168, Pages 4 and 5 of Maps, Alameda County Records.
 
EXCEPTING THEREFROM that portion thereof described in the Deed recorded August 30, 1988, Series No. 88-219991, Official Records, pursuant to Lot Line Adjustment No. 87-10.
 
ALSO EXCEPTING THEREFROM all subsurface waters, without the right of surface entry, as described in the Quit Claim Deed to the City of Pleasanton, a municipal corporation, recorded September 10, 1987, Series N. 87-249703, Official Records.
 
RESERVING THEREFROM
 
A non-exclusive easement for ingress and egress of motor vehicles over portions of Parcel 3 of Parcel Map 4979, filed February 27, 1987, in Book 168 of Parcel Maps, pages 4 & 5, Alameda County Records, as described in the instrument entitled "Declaration of Easement and Maintenance Agreement" recorded February 25, 1991, as Instrument No. 91-51502, Alameda County Records as modified by instrument recorded April 3, 1991, Instrument No. 91-84344, Alameda County Records, February 22, 1996, Instrument No. 96-43365, Alameda County Records, July 31, 1997, Series No. 97191414, Official Records and November 17, 2000, Series 2000-341939, Official Records said easement being appurtenant to Parcels 1 and 2 of Parcel Map 7339, filed May 19, 1999, in Book 244 of Maps, Pages 52 and 53, Alameda County Records and Parcel A, Parcel Map 5388, filed October 27m 1988, Book 182 of Maps, Pages 36 and 37, Alameda County Records.
 
A non-exclusive easement for ingress and egress of motor vehicles over portions of Parcel 3 of Parcel Map 4979, filed February 27, 1987, in Book 168, Pages 4 and 5, of Maps, Alameda County Records as described in the instrument entitled "Declaration of Easement and Maintenance Agreement recorded February 25, 1991, as Series No. 91-51503, Official Records as modified by instruments recorded April 3, 1991, Series No. 91-84345, July 31, 1997, Series No. 97191413, Official Records, and November 17, 2000, Series No. 2000-341938, Official Records said easement being appurtenant to Parcels 1 and 2 of Parcel Map 4979, filed February 27, 1987, in Book 168, Pages 4 and 5 of Maps, Alameda County Records.
 
PARCEL TWO:
 
A non-exclusive easement for ingress and egress over and across that portion of Parcel A, Parcel Map 5388, filed October 27, 1988 in Book 182, Pages 36 and 37 of Maps, Alameda County Records, and Parcels 1 and 2, of Parcel Map 7339, filed May 19, 1999, in Book 244 of Maps, Pages 52 and 53, Alameda County Records as described in the Declaration of Easement and Maintenance Agreement recorded February 25, 1991, Series No. 91-051502, Official Recorded modified by instruments recorded April 3, 1991, Series No. 91-84344, Official Records, February 22, 1996, Series No. 96-43365, Official Records, July 31, 1997, Series No. 97-191414, Official Records and November 17, 2000, Series No. 2000-341939, Official Records.
 
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PARCEL THREE:
 
A non-exclusive easement appurtenant to Parcel One for ingress and egress of motor vehicles over portions of Parcels 1 and 2 of Parcel Map 4979, filed February 27, 1987, in Book 168, Pages 4 and 5 of Maps, Alameda County Records as described in the instrument entitled "Declaration of Easement and Maintenance Agreement" recorded February 25, 1991, as Series No. 91-51503, Official Records as modified by instruments recorded April 3, 1991, Series No. 91-84345, July 31, 1997, Series No. 97-191413, and November 17, 2000, Series No. 2000-341938, Official Records.
 
PARCEL FOUR:
 
A non-exclusive easement for pedestrian and vehicular ingress and egress over and across those portions of Parcels 1 and 2 of Parcel Map 4979, filed February 27, 1987, in Book 168, Pages 4 and 5, of Maps, Alameda County Records, Parcels 1 and 2, Parcel Map 5568, filed October 26, 1989, in Book 187, Pages 50 and 51 of Maps, Alameda County records, Parcel A of Parcel Map 5388, filed October 27, 1988, in Book 182 of Maps, Pages 36 and 37, Alameda County Records and Parcels 1 and 2 of Parcel Map 7339, filed May 19, 1999, in Book 244 of Maps, Pages 52 and 53, Alameda County Records as described in the instrument entitled "Declaration of Reciprocal Access Easement Agreement" recorded August 16, 2001, Instrument No. 2001-305639, Alameda County Records.
 
Commonly known as:
6601 Koll Center Parkway
APN:
946-4557-020-03
 
A-1-2

 
EXHIBIT B
WORK LETTER
 
This work letter ("Work Letter") shall set forth the terms and conditions relating to the construction of the tenant improvements by Landlord or Landlord's contractor in the Premises.
 
A.             Construction Allowance .  Landlord shall, at its cost and expense: (i) paint the interior walls of the Premises, using building standard paint in a color to be designated by Tenant from the color(s) currently in use by Landlord (and if no such color is designated by Tenant within three (3) business days of the execution and delivery of this Lease, then as designated by Landlord) and (ii) professionally clean the carpets and VCT floors within the Premises (collectively, the "Tenant Improvements").
 
B.              Contractors .  Landlord shall select such general and subcontractors as Landlord determines are appropriate in Landlord's sole and absolute discretion for the construction of the Tenant Improvements.
 
C.              Cooperation of Tenant .  Tenant shall reasonably cooperate with Landlord in the construction and supervision of the Tenant Improvements and shall not interfere with same.
 
D.              No Representations or Warranties .  Landlord makes no representations or warranties of any kind with respect to the construction of the Tenant Improvements.
 
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EXHIBIT C
STANDARDS FOR UTILITIES AND SERVICES
 
The following Standards for Utilities and Services are in effect.  Landlord reserves the right to adopt nondiscriminatory modifications and additions hereto:
 
As long as Tenant is not in default under any of the terms, covenants, conditions, provisions, or agreements of this Lease, Landlord shall:
 
(a)             On Monday through Friday, except holidays, from 7 A.M. to 6 P.M. (and other times for a reasonable additional charge to be fixed by Landlord), ventilate the Premises and furnish air conditioning or heating on such days and hours, when in the judgment of Landlord it may be required for the comfortable occupancy of the Premises The air conditioning system achieves maximum cooling when the window coverings are closed Landlord shall not be responsible for room temperatures if Tenant does not keep all window coverings in the Premises closed whenever the system is in operation Tenant agrees to cooperate fully at all times with Landlord, and to abide by all regulations and requirements which Landlord may prescribe for the proper function and protection of said air conditioning system Tenant agrees not to connect any apparatus, device, conduit or pipe to the Building chilled and hot water air conditioning supply lines Tenant further agrees that neither Tenant nor its servants, employees, agents, visitors, licensees or contractors shall at any time enter mechanical installations or facilities of the Building or adjust, tamper with, touch or otherwise in any manner affect said installations or facilities The cost of maintenance and service calls to adjust and regulate the air conditioning system shall be charged to Tenant if the need for maintenance work results from either Tenant's adjustment of room thermostats or Tenant's failure to comply with its obligations under this section, including keeping window coverings closed as needed Such work shall be charged at hourly rates equal to then current journeymen's wages for air conditioning mechanics.
 
(b)             Landlord shall furnish to Tenant after-hours heating and air conditioning at the rate of $25.00 per hour (two-hour minimum charge) for such after-hours use.  If the actual cost to Landlord of providing such after-hours heating and air-conditioning increases at any time during the term of this Lease, Landlord shall have the right to increase the hourly rate charged by Landlord for such after-hours usage upon at least 10 days prior notice to Tenant.  Landlord shall bill Tenant monthly for such after-hours usage and Tenant shall pay such charges to Landlord, as additional rent, within 20 days after receipt of Landlord's statement of such charges.
 
(c)             Landlord shall furnish to the Premises, during the usual business hours on business days, electric current sufficient for normal office use.  Tenant agrees, should its electrical installation or electrical consumption be in excess of the aforesaid quantity or extend beyond normal business hours, to reimburse Landlord monthly for the measured consumption at the average cost per kilowatt hour charged to the Building during the period.  If a separate meter is not installed at Tenant's cost, such excess cost will be established by an estimate agreed upon by Landlord and Tenant, and if the parties fail to agree, as established by an independent licensed engineer.  Said estimates to be reviewed and adjusted quarterly.  Tenant agrees not to use any apparatus or device in, or upon, or about the premises which may in any way increase the amount of such services usually furnished or supplied to said Premises, and Tenant further agrees not to connect any apparatus or device with wires, conduits or pipes, or other means by which such services are supplied, for the purpose of using additional or unusual amounts of such services without written consent of Landlord.  Should Tenant use the same to excess, the refusal on the part of Tenant to pay upon demand of Landlord the amount established by Landlord for such excess charge shall constitute a breach of the obligation to pay rent under this Lease and shall entitle Landlord to the rights therein granted for such breach.  At all times Tenant's use of electric current shall never exceed the capacity of the feeders to the Building or the risers or wiring installation and Tenants shall not install or use or permit the installation or use of any computer, larger than personal computer, or electronic data processing equipment in the Premises, without the prior written consent of Landlord.
 
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(d)             Water will be available in public areas for drinking and lavatory purposes only, but if Tenant requires, uses or consumes water for any purposes in addition to ordinary drinking and lavatory purposes of which fact Tenant constitutes Landlord to be the sole judge, Landlord may install a water meter and thereby measure Tenant's water consumption for all purposes.  Tenant shall pay Landlord for the cost of the meter and the cost of the installation thereof and throughout the duration of Tenant's occupancy, Tenant shall keep said meter and installation equipment in good working order and repair at Tenant's own cost and expense, in default of which Landlord may cause such meter and equipment to be replaced or repaired and collect the cost thereof from Tenant.  Tenant agrees to pay for water consumed, as shown on said meter, as and when bills are rendered, and on default in making such payment, Landlord may pay such charges and collect the same from Tenant.  Any such costs or expenses incurred, or payments made by Landlord for any of the reasons or purposes hereinabove stated shall be deemed to be additional rent payable by Tenant and collectible by Landlord as such.
 
(e)             Provide janitor service to the Premises, provided the same are kept reasonably in order by Tenant, and if to be kept clean by Tenant, no one other than persons approved by Landlord shall be permitted to enter the Premises for such purposes.  If the Premises are not used exclusively as offices, they shall be kept clean and in order by Tenant, at Tenant's expense, and to the satisfaction of Landlord, and by persons approved by Landlord.  Tenant shall pay to Landlord the cost of removal of any of Tenant's refuse and rubbish, to the extent that the same exceeds the refuse and rubbish usually attendant upon the use of the Premises as offices.
 
(f)              Landlord reserves the right to stop service of the elevator, plumbing, ventilation, air conditioning and electric systems, when necessary, by reason of accident or emergency or for repairs, alterations or improvements, in the judgment of Landlord desirable or necessary to be made, until said repairs, alterations or improvements shall have been completed, and shall further have no responsibility or liability for failure to supply elevator facilities, plumbing, ventilating, air conditioning or electric service, when prevented from so doing by strike or accident or by any cause beyond Landlord's reasonable control, or by laws, rules, orders, ordinances, directions, regulations or requirements of any federal, state, county or municipal authority or failure of gas, oil or other suitable fuel supply or inability by exercise of reasonable diligence to obtain gas, oil or other suitable fuel.  It is expressly understood and agreed that any covenants on Landlord's part to furnish any service pursuant to any of the terms, covenants, conditions, provisions or agreements of this Lease, or to perform any act or thing for the benefit of Tenant, shall not be deemed breached if Landlord is unable to furnish or perform the same by virtue of a strike or labor trouble or any other cause whatsoever beyond Landlord's control.
 
C-2

EXHIBIT D
RULES AND REGULATIONS
Sycamore Terrace Project
 
1.               Except as specifically provided in the Lease to which these Rules and Regulations are attached, no sign, placard, picture, advertisement, name or notice shall be installed or displayed on any part of the outside or inside of the Building without the prior written consent of Landlord.  Landlord shall have the right to remove, at Tenant's expense and without notice, any sign installed or displayed in violation of this rule.  All approved signs or lettering on doors and walls shall be printed, painted, affixed or inscribed at the expense of Tenant by a person approved by Landlord.
 
2.               If Landlord objects in writing to any curtains, blinds, shades, screens or hanging plants or other similar objects attached to or used in connection with any window or door of the Premises, or placed on any windowsill, which is visible from the exterior of the Premises, Tenant shall immediately discontinue such use.  Tenant shall not place anything against or near glass partitions or doors or windows which may appear unsightly from outside the Premises.
 
3.               Tenant shall not obstruct any sidewalks, halls, passages, exits, entrances, elevators, escalators, or stairways of the Project.  The halls, passages, exits, entrances, elevators, and stairways are not open to the general public, but are open, subject to reasonable regulation, to Tenant's business invitees.  Landlord shall in all cases retain the right to control and prevent access thereto of all persons whose presence in the judgment of Landlord would be prejudicial to the safety, character, reputation and interest of the Project and its tenants; provided that nothing herein contained shall be construed to prevent such access to persons with whom any tenant normally deals in the ordinary course of its business, unless such persons are engaged in illegal or unlawful activities.  No tenant and no employee or invitee of any tenant shall go upon the roof of any building of the Project.
 
4.               The directory of the building will be provided exclusively for the display of the name and location of tenants only, and Landlord reserves the right to exclude any other names therefrom.
 
5.              All cleaning and janitorial services for the Project and the Premises shall be provided exclusively through Landlord, and except with the written consent of Landlord, no person or persons other than those approved by Landlord shall be employed by Tenant or permitted to enter the Building for the purpose of cleaning the same.  Tenant shall not cause any unnecessary labor by carelessness or indifference to the good order and cleanliness of the Premises.
 
6.               Landlord will furnish Tenant, free of charge, with two keys to each door lock in the Premises.  Landlord may make a reasonable charge for any additional keys.  Tenant shall not make or have made additional keys, and Tenant shall not alter any lock or install a new additional lock or bolt on any door of its Premises.  Tenant, upon the termination of its tenancy, shall deliver to Landlord the keys of all doors which have been furnished to Tenant, and in the event of loss of any keys so furnished, shall pay Landlord therefor.
 
7.              If Tenant requires telegraphic, telephonic, burglar alarm or similar services, it shall first obtain, and comply with, Landlord's instructions in their installation.
 
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8.               Tenant shall not place a load upon any floor of the Premises which exceeds the load per square foot which such floor was designed to carry and which is allowed by law.  Landlord shall have the right to prescribe the weight, size and position of all equipment, materials, furniture or other property brought into the Project.  Heavy objects shall, if considered necessary by Landlord, stand on such platforms as determined by Landlord to be necessary to properly distribute the weight, which platforms shall be provided at Tenant's expense.  Business machines and mechanical equipment belonging to Tenant, which cause noise or vibration that may be transmitted to the structure of the Premises or to any space therein to such a degree to be objectionable to Landlord or to any tenants in the Project, shall be placed and maintained by Tenant, at Tenant's expense, on vibration eliminators or other devices sufficient to eliminate noise or vibration.  The persons employed to move such equipment in or out of the Premises must be acceptable to Landlord.  Landlord will not be responsible for loss of, or damage to, any such equipment or other property from any cause, and all damage done to the Premises, by maintaining or moving such equipment or other property shall be repaired at the expense of Tenant.
 
9.               Tenant shall not use or keep in the Premises any kerosene, gasoline or inflammable or combustible fluid or material other than those limited quantities necessary for the operation or maintenance of office equipment.  Tenant shall not use or permit to be used in the Premises any foul or noxious gas or substance, or permit or allow the Premises to be occupied or used in a manner offensive or objectionable to Landlord or other occupants of the Project by reason of noise, odors or vibrations, nor shall Tenant bring into or keep in or about the Premises any birds or animals.
 
10.             Tenant shall not use any method of heating or air-conditioning other than that supplied by Landlord.
 
11.             Tenant shall not waste electricity, water or air-conditioning and agrees to cooperate fully with Landlord to assure the most effective operation of the Premises' heating and air-conditioning and to comply with any governmental energy-saving rules, laws or regulations of which Tenant has actual notice, and shall refrain from attempting to adjust controls.  Tenant shall keep corridor doors closed, and shall close window coverings at the end of each business day.
 
12.             Landlord reserves the right, exercisable without notice and without liability to Tenant, to change the name and street address of the Premises.
 
13.             Landlord reserves the right to exclude from the Project between the hours of 6 p.m. and 7 a.m. the following day, or such other hours as may be established from time to time by Landlord, and on Sundays and legal holidays, any person unless that person is known to the person or employee in charge of the Project and has a pass or is properly identified.  Tenant shall be responsible for all persons for whom it requests passes and shall be liable to Landlord for all acts of such persons.  Landlord shall not be liable for damages for any error with regard to the admission to or exclusion from the Project of any person.  Landlord reserves the right to prevent access to the Project in case of invasion, mob, riot, public excitement or other commotion by closing the doors or by other appropriate action.
 
14.             Tenant shall close and lock the doors of its Premises and entirely shut off all water faucets or other water apparatus, and electricity, gas or air outlets before tenant and its employees leave the Premises.  Tenant shall be responsible for any damage or injuries sustained by other tenants or occupants of the Project or by Landlord for noncompliance with this rule.
 
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15.            Tenant shall not obtain for use on the Premises ice, drinking water, food, -beverages, towel or other similar services upon the Premises, except at such hours and under such regulations as may be fixed by Landlord.
 
16.             The toilet rooms, toilets, urinals, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed and no foreign substance of any kind whatsoever shall be thrown therein.  The expense of any breakage, stoppage of damage resulting from the violation of this rule shall be borne by the tenant who, or whose employees or invitees, shall have caused it.
 
17.             Tenant shall not sell, or permit the sale at retail, of newspapers, magazines, periodicals, theater tickets or any other goods or merchandise to the general public in or on the Premises.  Tenant shall not make any suite-to-suite solicitation of business from other tenants in the Project.  Tenant shall not use the Premises for any business or activity other than that specifically provided for in Tenant's Lease.
 
18.             Tenant shall not install any radio or television antenna, loudspeaker or other devices on the roof or exterior walls of the Premises.  Tenant shall not interfere with radio or television broadcasting or reception from or in the Project or elsewhere.
 
19.             Tenant shall not mark, drive nails, screw or drill into the partitions, woodwork or plaster or in any way deface the Premises or any part thereof, except in accordance with the provisions of the Lease pertaining to alterations.  Landlord reserves the right to direct electricians as to where and how telephone and telegraph wires are to be introduced to the Premises.  Tenant shall not cut or bore holes for wires.  Tenant shall not affix any floor covering to the floor of the Premises in any manner except as approved by Landlord.  Tenant shall repair any damage resulting from noncompliance with this rule.
 
20.             Tenant shall not install, maintain or operate upon the Premises any vending machines without the written consent of Landlord.
 
21.             Canvassing, soliciting and distributing of handbills or any other written material, and peddling in the Project are prohibited, and Tenant shall cooperate to prevent such activities.
 
22.             Landlord reserves the right to exclude or expel from the Project any person who, in Landlord's judgment, is intoxicated or under the influence of liquor or drugs or who is in violation of any of the Rules and Regulations of the Project.
 
23.             Tenant shall store all its trash and garbage within its Premises or in other facilities provided by Landlord.  Tenant shall not place in any trash box or receptacle any material which cannot be disposed of in the ordinary and customary manner of trash and garbage disposal.  All garbage and refuse disposal shall be made in accordance with directions issued from time to time by Landlord.
 
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24.             The Premises shall not be used for the storage of merchandise held for sale to the general public, or for lodging or for manufacturing of any kind, nor shall the Premises be used for any improper, immoral or objectionable purpose.  No cooking shall be done or permitted on -the Premises without Landlord's consent, except that use by Tenant of Underwriter's Laboratory approved equipment for brewing coffee, tea, hot chocolate and similar beverages or use of microwave ovens for employee use shall be permitted, provided that such equipment and use is in accordance with all applicable federal, state, county and city laws, codes, ordinances, rules and regulations.
 
25.             Tenant shall not use in the Premises any hand truck except those equipped with rubber tires and side guards or such other material-handling equipment as Landlord may approve.  Tenant shall not bring any other vehicles of any kind into the Premises.
 
26.             Without the written consent of Landlord, Tenant shall not use the name of the Project in connection with or in promoting or advertising the business of Tenant except as Tenant's address.
 
27.             Tenant shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord or any governmental agency.
 
28.             Tenant and its employees, guests and invitees shall not enter into the waterways located in the Project.  No object of any kind may be floated or submerged in the waterways, and no foreign substance of any kind may be thrown in the waterways.  The expense of any breakage or damage to any mechanical equipment related to the waterways resulting from violation of this rule or any expense incurred restoring the waterways to their normal condition shall be borne by the tenant who, or whose employees or invitees, shall have caused such damage.
 
29.             Tenant assumes any and all responsibility for protecting its Premises from theft, robbery and pilferage, which includes keeping doors locked and other means of entry to the Premises closed.
 
30.             Tenant's requirements will be attended to only upon appropriate application to the Project management office by an authorized individual.  Employees of Landlord shall not perform any work or do anything outside of their regular duties unless under special instructions from Landlord, and no employee of Landlord will admit any person (Tenant or otherwise) to any office without specific instructions from Landlord.
 
31.             Landlord may waive any one or more of these Rules and Regulations for the benefit of.  Tenant or any other tenant, but no such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in favor of Tenant or any other tenant, nor prevent Landlord from thereafter enforcing any such Rules and Regulations against any or all of the tenants of the Project.
 
32.             These Rules and Regulations are in addition to, and shall not be construed to in any way modify or amend, in whole or in part, the terms, covenants, agreements and conditions of Tenant's lease of its Premises in the Project.
 
D-4

33.             Landlord reserves the right to make such other and reasonable Rules and Regulations as, in its judgment, may from time to time be needed for safety and security, for care and cleanliness of the Project and for the preservation of good order therein.  Tenant agrees to abide by all such Rules and Regulations hereinabove stated and any additional rules and regulations which are adopted.  In particular, tenant shall comply at all times with the City of Pleasanton's Transportation Systems Management Ordinance (TSM Ordinance, Chapter 17.24, Pleasanton Municipal Code), as said Ordinance may be amended from time to time."
 
34.             Tenant shall be responsible for the observance of all of the foregoing rules by Tenant's employees, agents, clients, customers, invitees and guests.
 
D-5

EXHIBIT E
PARKING RULES AND REGULATIONS
 
The following rules and regulations shall govern use of the parking facilities which are appurtenant to the Building.
 
1.
All claimed damage or loss must be reported and itemized in writing delivered to the Landlord within ten business days after any claimed damage or loss occurs Any claim not so made is waived Landlord has the option to make repairs at its expense of any claimed damage within two business days after filing of any claim In all court actions the burden of proof to establish a claim remains with Tenant Court actions by Tenant for any claim must be filed in the court of jurisdiction where a claimed loss occurred within ninety days after date of damage or loss Landlord is not responsible for damage by water, fire, or defective brakes, or parts, or for the act of omissions of others, or for articles left in the car The total liability of Landlord is limited to $250.00 for all damages or loss to any car Landlord is not responsible for loss of use.
 
2.
Tenant shall not park or permit the parking of any vehicle under its control in any parking areas designated by Landlord as areas for parking by visitors to the Building.  Tenant shall not leave vehicles in the parking areas overnight nor park any vehicles in the parking areas other than automobiles, motorcycles, motor driven or non-motor driven bicycles or four-wheeled trucks.
 
3.
Parking stickers or any other device or form of identification supplied by Landlord as a condition of use of the Parking Facilities shall remain the property of Landlord.  Such parking identification device must be displayed as requested and may not be mutilated in any manner.  The serial number of the parking identification device may not be obliterated.  Devices are not transferable and any device in the possession of an unauthorized holder will be void.
 
4.
No overnight or extended term storage of vehicles shall be permitted.
 
5.
Vehicles must be parked entirely within the painted stall lines of a single parking stall.
 
6.
All directional signs and arrows must be observed.
 
7.
The speed limit within all parking areas shall be 5 miles per hour.
 
8.
Parking is prohibited:
 
(a)
in areas not striped for parking;
 
(b)
in aisles ;
 
(c)
where "no parking " signs are posted;
 
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(d)
on ramps;
 
(e)
in cross hatched areas; and
 
(f)
in such other areas as may be designated by Landlord or Landlord's Parking Operator.
 
9.
Every parker is required to park and lock his own vehicle.  All responsibility for damage to vehicles is assumed by the parker.
 
10.
Loss of theft of parking identification devices from automobiles must be reported immediately, and a lost or stolen report must be filed by the customer at that time.  Landlord has the right to exclude any car from the parking facilities that does not have an identification.
 
11.
Any parking identification devices reported lost or stolen found on any unauthorized car will be confiscated and the illegal holder will be subject to prosecution.
 
12.
Lost or stolen devices found by the purchaser must be reported immediately to avoid confusion.
 
13.
Washing, waxing, cleaning or servicing of any vehicle in any area not specifically reserved for such purpose is prohibited.
 
14.
Landlord reserves the right to refuse the sale of monthly stickers or other parking identification devices to any tenant or person and/or his agents or representatives who willfully refuse to comply with these Rules and Regulations and all unposted City, State or Federal ordinances, laws or agreements.
 
15.
Landlord reserves the right to modify and/or adopt such other reasonable and non-discriminatory rules and regulations for the parking facilities as it deems necessary for the operation of the parking facilities.  Landlord may refuse to permit any person who violates these rules to park in the parking facilities, and any violation of the rules shall subject the car to removal.
 
E-2

EXHIBIT F
COMMENCEMENT DATE MEMORANDUM
 
With respect to that certain lease ("Lease") dated ____________, 19__ between ___________________________ a ___________________________ ("Tenant"), and ___________________________, a Delaware limited liability company ("Landlord"), whereby Landlord leased to Tenant and Tenant leased from Landlord approximately ______________ rentable square feet of the building located at ___________________________ ("Premises"), Tenant hereby acknowledges and certifies to Landlord as follows:
 
(1)            Landlord delivered possession of the Premises to Tenant in a Substantially Complete on ___________________________ ("Possession Date");
 
(2)             The Lease commenced on ___________________________ ("Commencement Date");
 
(3)             The Premises contain ________ rentable square feet of space; and
 
(4)             Tenant has accepted and is currently in possession of the Premises and the Premises are acceptable for Tenant's use.
 
(5)             Tenant's Share is ___________________________
 
(6)             Base Rent Per Month is ___________________________
 
IN WITNESS WHEREOF, this Commencement Date Memorandum is executed this day of ___________________________.
 
 
"Tenant"
     
 
 
     
 
By:
 
 
Its:
 
     
 
By:
 
 
Its:
 
 
F-1

EXHIBIT G
SUBLEASE AGREEMENT
 
This Sublease Agreement (the "Sublease") is executed this ____ day of ______________, 2001, by and between ___________________________, a ___________________________ ("Sublandlord") and ___________________________, a ___________________________ ("Subtenant").
 
WITNESSETH:
 
WHEREAS, _____________ as Landlord ("Master Landlord") and Sublandlord as Tenant executed a Lease Agreement dated _____________ and amended by Lease Amendments dated _____________ (the "Master Lease"), with respect to certain Premises described therein (the "Premises"), a copy of which is attached hereto as Exhibit A; and
 
WHEREAS, Sublandlord desires to sublease [the Premises/ the portion of the Premises described as _____________ (the "Subleased Premises")] under and subject to the terms of the Master Lease and Subtenant desires to lease the Subleased Premises from Sublandlord.
 
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto covenant and agree as follows:
 
1.              Sublease Sublandlord hereby leases to Subtenant and Subtenant hereby hires from Sublandlord the Subleased Premises upon and subject to all of the terms, covenants, and conditions provided for herein Subtenant hereby expressly assumes and agrees to perform all obligations and covenants of Sublandlord under the Master Lease with respect to the Subleased Premises.
 
2.               Term The term of this Sublease shall be for the period from _____________ 2001, through [_____________ the termination of the Master Lease by its terms].
 
3.               Rent .
 
(a)             Base Rent Subtenant shall pay for the use and occupancy of the Subleased Premises Base Rent in the amount of $_____________ The Base Rent shall be increased, under the same terms and conditions by which the Base Rent is increased under the terms of Paragraph [ _____________ of the Master Lease In addition, in the event this Sublease commences or terminates on a date that is not the first day of a month, Base Rent shall be prorated as of that date.
 
(b)             Additional Rent Subtenant acknowledges that pursuant to the terms of the Master Lease, Sublandlord is obligated to pay as Additional Rent Tenant's Percentage of increases in Direct Expenses over the [Expense Stop/Base Year] Subtenant agrees that in addition to the Base Rent, Subtenant shall pay Additional Rent in the amount of [_____ percent ( ___%)] ("Subtenant's Percentage") of Tenant's Percentage of increases in Direct Expenses.
 
Subtenant shall pay Subtenant's Percentage to Sublandlord no later than five (5) business days prior to the date that Sublandlord is required to pay Tenant's Percentage pursuant to the terms of the Master Lease.
 
G-1

(c)             Assignment of Rents Sublandlord unconditionally assigns to Master Landlord any and all payments due from Subtenant to Sublandlord under the Sublease, including, without limitation, all Base Rent and Additional Rent (collectively, "Rent") Sublandlord acknowledges that this assignment is present, absolute and unconditional and Master Landlord shall therefore have the right to collect the Rent and to apply the Rent in payment of any sums payable by Sublandlord under the Master Lease However, Sublandlord shall have a license to collect the Rent until the occurrence of a default by Sublandlord under the Master Lease If a default by Sublandlord occurs under the Master Lease or under this Sublease,: Sublandlord's right to collect the Rent shall be suspended until the default is cured During such period, Master Landlord shall have the right to collect the Rent and apply the Rent toward Sublandlord's obligations under the Master Lease Master Landlord's acceptance of any payment from Subtenant as a result of any default does not release Sublandlord from liability under the terms, covenants, conditions, provisions or agreements under the Master Lease.
 
(d)             Payment Subtenant shall pay all Rent to Sublandlord at the following address: _______________________________ or at such place as Sublandlord may designate from time to time in writing unless and until it is notified by Master Landlord that it shall begin paying Rent directly to Master Landlord, in which event Subtenant shall pay all Rent to Master Landlord at the address provided for payment of Rent under the Master Lease or at such place as Master Landlord may designate from time to time in writing Concurrent with Subtenant's execution and delivery of this Sublease, Subtenant will deliver to Sublandlord the first month's Base Rent in the amount of $ _____________ plus the amount of $ _____________ as a security deposit to be held by Sublandlord under the terms of Article [5] of the Master Lease.
 
4.               Termination .
 
(a)             If at any time prior to the expiration of the term of the Sublease, the Master Lease shall terminate or be terminated for any reason, or Sublandlord's right to possession shall terminate without termination of the Master Lease ("Master Lease Termination"), this Sublease shall simultaneously terminate However, Subtenant agrees, at the election and upon written demand of Master Landlord prior to the termination of the Master Lease, and not otherwise, to attorn to Master Landlord for the remainder of the term of this Sublease, such attornment to be upon all of the terms and conditions of the Master Lease The foregoing provisions shall apply notwithstanding that, as a matter of law, this Sublease may otherwise terminate upon the termination of the Master Lease and shall be self-operative upon such written demand of Master Landlord, and no further instrument shall be required to give effect to said provisions Upon demand of Master Landlord, however, Subtenant agrees to execute, from time to time, documents in confirmation of the foregoing provisions satisfactory to Master Landlord in which Subtenant shall acknowledge such attornment and shall set forth the terms and conditions of its tenancy Nothing contained in this paragraph shall be construed to impair or modify any right otherwise exercisable by Master Landlord, whether under the Master Lease, any other agreement or by law.
 
(b)             Master Landlord shall not (i ) be liable to Subtenant for any act, omission or breach of this Sublease by Sublandlord, (ii ) be subject to any offsets or defenses which Subtenant might have against Sublandlord, (iii ) be bound by any Rent which Subtenant might have paid in advance to Sublandlord, or (iv ) be bound to honor any rights of Subtenant in any security deposit made with Sublandlord, except to the extent Sublandlord has turned over such security deposit to Master Landlord Sublandlord hereby agrees that in the event of Master Lease Termination, Sublandlord shall immediately pay or transfer to Master Landlord any security deposit, Rent or other sums then held by Sublandlord.
 
G-2

5.               Additional Services Should Master Landlord furnish additional services to Subtenant in addition to those provided under the Master Lease, Sublandlord consents to Master Landlord billing Subtenant directly, without notice to Sublandlord Should Subtenant fail to pay said amounts as Additional Rent under the Master Lease, Sublandlord agrees to pay such amounts to Master Landlord immediately upon written demand therefor A failure by Sublandlord to pay upon demand shall constitute a payment default under the Master Lease.
 
6.               Use Subtenant shall use the Subleased Premises for the use(s) specified in Article [6] of the Master Lease and for no other purpose without the prior written consent of Sublandlord and Master Landlord.
 
7.               Notice Notices given hereunder shall be given in the same manner as required under the Master Lease to the parties at the following addresses:
 
SUBLANDLORD:
   
     
     
     
     
SUBTENANT:
   
     
     
     
 
8.              The Master Lease .
 
(a)             It is hereby agreed that Sublandlord leases the Subleased Premises to Subtenant upon each and all of the terms, conditions, covenants and obligations of the Master Lease, and Subtenant hereby unconditionally and irrevocably accepts this Sublease and the Subleased Premises subject to and upon, and hereby irrevocably and unconditionally assumes and agrees to be bound by and perform, each and all of the terms, conditions, covenants and obligations of the Master Lease binding on the "Tenant" thereunder with respect to the Subleased Premises, and such terms, conditions, covenants and obligations of the Master Lease are hereby incorporated by reference herein as if Sublandlord were the "Landlord" thereunder and Subtenant were the "Tenant" thereunder and the "Premises" therein were the Subleased Premises, except as otherwise .expressly provided herein and except to the extent that the terms of the Master Lease are inconsistent with the express terms of this Sublease Subtenant shall be liable for any and all damages resulting from or in respect of Subtenant's failure to perform any of the terms, conditions, covenants and obligations set forth in the Master Lease to the extent of Subtenant's pro-rata share of any such damages, such pro rata share to be calculated by multiplying any such damages by the ratio of rentable square feet contained in the Subleased Premises to the rentable square feet contained in the Sublandlord Premises Subtenant expressly agrees and  acknowledges that Sublandlord shall not be obligated to perform, and shall not be liable for the performance by Master Landlord of any of the covenants and obligations of Master Landlord under the Master Lease or as incorporated into this Sublease and that Subtenant shall have no claim against Sublandlord by reason of any default by Master Landlord in performing such covenants and obligations Subtenant shall indemnify, defend and hold Sublandlord harmless from and against any liability, loss, cost, claim, damage, expense or cause of action, including, without limitation, attorneys' fees and court costs, which arise from, in respect of, in connection with or are related in any manner or to any extent to any failure by Subtenant to perform each and all of the terms, conditions, covenants or obligations in the Master Lease which are binding on the "Tenant" thereunder with respect to the Subleased Premises.
 
G-3

(b)             Notwithstanding anything to the contrary set forth herein, the parties agree that the Subtenant shall not be entitled to any of the rights and benefits granted to Sublandlord set forth in the following Master Lease provisions: Paragraphs [____, ____, ____ and ____] . Subtenant and Sublandlord further agree that these provisions shall remain in full force and effect as to Sublandlord, and this Sublease shall not interfere with, contravene, limit or in any way alter the rights and benefits granted to Sublandlord pursuant to said provisions.
 
(c)             The following sections of the Master Lease shall be incorporated by reference, as modified in the manner set forth below: ____________________________ [Insert, provisions, if applicable]
 
(d)             Except as specifically provided elsewhere herein, Sublandlord shall have no obligation to render any services to Subtenant in or to the Subleased Premises of any nature whatsoever or to expend any money for the maintenance, repair or restoration of the Subleased Premises.
 
(e)             Subtenant shall not do, or with respect to the Subleased Premises permit to be done, anything which would constitute a violation or breach of any of the terms, conditions or provisions of the Master Lease or which would cause the Master Lease to be terminated or forfeited.
 
(f)              Subtenant shall promptly furnish Sublandlord with copies of all notices relating to the Subleased Premises which Subtenant shall receive from Master Landlord and Sublandlord shall promptly furnish Subtenant with copies of all notices relating to the Subleased Premises which Sublandlord receives from Master Landlord.
 
(g)             Wherever in the Master Lease the "Tenant" thereunder is required to obtain the consent of the "Landlord" thereunder prior to taking any action, Subtenant shall be required to obtain the consent of both Sublandlord and Master Landlord as a condition to taking any such action.
 
(h)             Except as otherwise expressly set forth herein, wherever in the Master Lease a time is specified within which the "Tenant" thereunder must (i ) give notice or make a demand following an event, (ii ) respond to any notice, request, or demand previously given or made by the "Landlord" thereunder, (iii ) exercise any right, remedy, or option, or (iv ) comply with any obligation (except for the payment of rent, additional rent, or any other amount), such time period shall also apply to Subtenant Wherever in the Master Lease a time is specified within which the "Landlord" thereunder must (i ) give notice or make a demand following an event, (ii ) respond to any notice, request, or demand previously given or made by the "Tenant" thereunder, (iii ) exercise any right, remedy, or option, or (iv ) comply with any obligation, such time is hereby changed (only for the purpose of this Sublease) by adding two (2) business days to the time set forth in the Master Lease.
 
G-4

(i)              Provided Subtenant is not in default with respect to any of its monetary obligations hereunder„ Sublandlord agrees to pay all Rent according to the terms and conditions set forth in the Master Lease.
 
(j)              Sublandlord hereby represents and warrants to Subtenant that (i ) the Master Lease is in full force and effect as of the date hereof; (ii ) a true and correct copy of the Master Lease has been delivered to Subtenant and is attached hereto as Exhibit A; (iii ) to Sublandlord's knowledge, there exists no default, or event or condition which, with the giving of notice or the passage of time or both, would become a default which would affect the Subleased Premises or Subtenant's use and occupancy thereof under the Master Lease on the part of Sublandlord; and (iv ) Sublandlord has received no notice or claim that the Subleased Premises do not comply with applicable legal requirements for general office use.
 
(k)             In the event that the terms and conditions of this Sublease conflict with the terms and conditions of the Master Lease provisions incorporated by reference herein, the terms and conditions of this Sublease shall govern.
 
(l)              Subtenant acknowledges that this Sublease is subject and subordinate to the Master Lease and, to the extent that the Master Lease is also subject and subordinate to any of the following, this Sublease shall be subject and subordinate to same: (i ) all ground and underlying leases and all deeds of trust or mortgages which might now or hereafter affect such leases, (ii ) the leasehold estate or estates thereby created or the real property of which the Subleased Premises form a part, (iii ) and any and all renewals, modifications, consolidations, replacements and extensions thereof Sublandlord shall have the right to modify the Master Lease without Subtenant's prior consent, provided, that if the modification in question would affect any right or obligation of Subtenant hereunder or would affect the Subleased Premises, then such modification shall not be effective against Subtenant without Subtenant's written consent.
 
9.               Assignment and Subleasing Subtenant shall not voluntarily assign or encumber its interest in this Sublease or in the Premises, or sublease all or any part of the Subleased Premises, or allow any other person or entity (except Subtenant's authorized representatives) to occupy or use all or any part of the Subleased Premises without the prior written consent of both Master Landlord and Sublandlord Any assignment, encumbrance, or sublease made in violation of this Sublease shall be voidable at Sublandlord's election No consent to any sublease shall constitute a further waiver of the provisions of this paragraph.
 
10.             Brokerage Each party represents and warrants to the other that it has not dealt with any broker, consultant, finder or agent in connection with this Sublease, other than ______________________, for whose compensation Sublandlord shall be liable pursuant to that certain ________________________ Except with respect to the brokers specifically set forth in this Section 11, Sublandlord and Subtenant each hereby indemnifies and holds harmless the other against and from any and all claims for any brokerage commissions and all costs, expenses and liabilities in connection therewith including, without limitation, attorneys' fees and expenses, arising from any breach by such party of the foregoing representation and warranty made by it.
 
G-5

11.             Memorandum of Sublease Neither Sublandlord nor Subtenant shall execute or record a memorandum of this Sublease without the consent of Sublandlord and Master Landlord.
 
12.             Defaults .
 
(a)             The occurrence of any of the following shall constitute an Event of Default by Subtenant:
 
(i)          Failure to pay Base Rent or Additional rent when due.
 
(ii)         The abandonment of the Subleased Premises by Subtenant, which is defined for purposes of this Sublease to include, but not be limited to, any absence by Subtenant from the Subleased Premises for a continuous period of ten (10) days or longer.
 
(iii)        Failure to perform any other provision of this Sublease if (i) the failure to perform is not curable, or (ii) the failure to perform is curable, but is not cured within thirty (30) days after notice has been given to Subtenant.  If the default is curable, but cannot reasonably be cured within thirty (30) days, Subtenant shall not be in default of this Sublease if Subtenant commences to cure the default within the thirty (30) day period and diligently and in good faith continues to cure the default, provided, however that in no event shall a default remain uncured for a period of more than sixty (60) days.
 
(iv)        Any assignment , sublease, encumbrance or other transfer of this Sublease, or any interest therein, by Subtenant, wither voluntarily or by operation of law, whether by judgment, execution transfer by intestacy or testacy, or other means, without the prior written consent of Sublandlord and Master Landlord.
 
(v)         A general assignment by Subtenant or any guarantor of Subtenant for the benefit of creditors.
 
(vi)        The filing by Subtenant or any guarantor of Subtenant of a voluntary petition in bankruptcy, insolvency, reorganization , or liquidation, or any other petition under any section or chapter of the Bankruptcy Code or any similar law, whether state, federal or otherwise, for the relief of debtors.
 
(v)         Any event, which, under the Master Lease, would be a default by the "Tenant" thereunder.
 
13.             Sublandlord's Indemnification Sublandlord shall indemnify, defend and hold harmless Subtenant, its partners, agents and employees, from and against any and all claims, suits, demands, liability, damages and expenses, including attorneys' fees and costs, (collectively,`, the "Sublandlord Claims") arising from or in connection with Sublandlord's use of the Premises (as defined in the Master Lease) or the conduct of its business or from any activity performed or permitted by Sublandlord in or about the Premises during the term of this Sublease (but not including actions and inactions of Master Landlord, its partners, officers, agents, employees, and representatives) or arising from any material breach or default in the performance of any material obligation on Sublandlord's part to be performed under the terms of this Sublease, or arising from any other act, negligence, fault or omission of Sublandlord or any of its partners, agents, directors, contractors, employees, licensees or invitees, except to the extent a Sublandlord Claim is caused by the negligence or willful act of Subtenant, its partners, agents, representatives, employees or contractors or breach of this Sublease by Subtenant.
 
G-6

14.             Subtenant's Indemnification Subtenant shall indemnify, defend and hold harmless Sublandlord, its partners, agents, employees, and contractors from and against any and all claims, suits, demands, liability, damages and expenses, including attorneys' fees and costs, (collectively, the "Subtenant Claims") arising from or in connection with Subtenant's use of the Premises under this Sublease or the conduct of Subtenant's business or from any activity performed or permitted by Subtenant in or about the Premises during the term of this Sublease or arising from any breach or default in the performance of any obligation on Subtenant's part to be performed under the terms of this Sublease, or arising from any other act, negligence, fault or omission of Subtenant or any of its partners, agents, directors, contractors, employees, licensees or invitees, except to the extent a Subtenant Claim is caused by the gross negligence or willful act of Sublandlord or breach of this Sublease by Sublandlord.
 
15.             This Sublease shall be construed and enforced in accordance with the laws of the State of California.
 
16.             Miscellaneous .
 
(a)             This Sublease may not be modified or amended without the prior written consent of Master Landlord and Sublandlord.
 
(b)             If any provision of this Sublease shall be invalid or unenforceable, such provision shall be severable and such invalidity or unenforceability shall not impair the validity of any other provision of this Sublease.
 
(c)             This Sublease may be executed in several counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.
 
(d)             This Sublease shall be binding upon and inure to the benefit of the parties' respective successors and permitted assigns, subject to all agreements and restrictions contained in the Master Lease and this Sublease with respect to sublease, assignment or other transfer The agreements contained herein and the Master Lease constitute the entire understanding between the parties with respect to the subject matter hereof and supercede all prior agreements except for the Master Lease, written or oral, inconsistent herewith.
 
(e)             Capitalized terms which are not otherwise defined shall have the meanings ascribed to such terms in the Master Lease.
 
G-7

IN WITNESS WHEREOF, the parties hereto have executed this Consent Agreement the day and year first above written.
 
 
SUBLANDLORD:
     
 
By:
 
     
 
By
 
     
 
SUBTENANT:
   
 
By:
 
     
 
By:
 
 
G-8

CONSENT TO SUBLEASE
 
This Consent to Sublease ("Consent Agreement") dated as of this _________ day of _____________, 2001, is made with reference to that certain sublease (the "Sublease") dated _____________, 2001, by and between _____________, a _____________ ("Tenant") and _____________, a _____________ ("Subtenant") and is entered into _____________ between the foregoing parties and ROBISON FAMILY TRUST DATED OCTOBER 30, 1989 ("Master Landlord").
 
WITNESSETH:
 
WHEREAS, Master Landlord and Tenant entered into that certain Lease Agreement dated _________________, ____ (the "Master Lease"), as amended by _______________________, with respect to certain Premises described as _______________________ (the "Premises") located in the building known as _______________________ (the "Building"); and
 
WHEREAS, Tenant and Subtenant wish to enter into the Sublease with respect to [the Premises/ a portion of the Premises] described in the Sublease (the "Sublease Premises"); and
 
WHEREAS, Tenant requests Master Landlord's written consent to its entering into the Sublease; and
 
WHEREAS, Tenant and Subtenant have presented the fully-executed Sublease (which is attached hereto) to Master Landlord for Master Landlord's approval and Master Landlord is willing to approve the same, all upon the terms and conditions hereinafter set forth.
 
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto covenant and agree as follows:
 
1.               Master Landlord consents to the subletting of the Sublease Premises on the express conditions set forth in this Consent Agreement.
 
2.              Master Landlord's consent to the Sublease shall not constitute its consent or waiver of consent to any subsequent sublease or sub-sublease, and shall not in any manner increase, decrease, modify, amend or otherwise affect the rights and obligations of Master Landlord and Tenant under the Master Lease except as specifically provided in paragraph hereof.
 
3.               Neither the Master Lease, the Sublease nor this Consent shall be deemed to grant Subtenant any rights against Master Landlord Subtenant hereby acknowledges and agrees that its sole remedy for any alleged or actual breach of its rights in connection with the Sublease Premises shall be solely against Tenant.
 
4.               In the event of default by Subtenant, Tenant shall remain liable to Master Landlord .for all monthly Master Lease payments and any other monies due through the remainder of the Master Lease term as set forth in the Master Lease The Sublease shall in no way release Tenant from any obligation or covenant of the Master Lease.
 
G-9

5.               In the event of any default under the Master Lease, Master Landlord shall have the right, by giving two (2) business days advance written notice to Subtenant, to collect the Rent attributable to the Sublease Premises directly from Subtenant without waiving any of the Master Landlord's rights against Tenant Upon receipt of Master Landlord's notice, Subtenant shall thereafter pay to Master Landlord any and all sums becoming due or payable under the Sublease directly to Master Landlord, and Tenant shall receive from landlord a corresponding credit for such sums against any payments then due or thereafter becoming due from Tenant Neither the service of such written notice nor the receipt of such direct payments shall cause Master Landlord to assume any of Tenant's duties, obligations and/or liabilities under the Sublease, nor shall such event impose upon Master Landlord the duty or obligation to honor the Sublease, nor subsequently to accept Subtenant's attornment pursuant to paragraph 6 hereof.
 
(a)             If at any time prior to the expiration of the term of the Sublease, the Master Lease shall terminate or be terminated for any reason (or Tenant's right to possession shall terminate without termination of the Master Lease), the Sublease shall simultaneously terminate However, Subtenant agrees, at the election and upon written demand of Master Landlord prior to the termination of the Master Lease, and not otherwise, to attorn to Master Landlord for the remainder of the term of the Sublease, such attornment to be upon all of the terms and conditions of the Master Lease The foregoing provisions shall apply notwithstanding that, as a matter of law, the Sublease may otherwise terminate upon the termination of the Master Lease and shall be self-operative upon such written demand of Master Landlord, and no further instrument shall be required to give effect to said provisions Upon demand of Master Landlord, however, Subtenant agrees to execute, from time to time, documents in confirmation of the foregoing provisions satisfactory to Master Landlord in which Subtenant shall acknowledge such attornment and shall set forth the terms and conditions of its tenancy Nothing contained in this paragraph shall be construed to impair or modify any right otherwise exercisable by Master Landlord, whether under the Master Lease, any other agreement or by law.
 
(b)             Master Landlord shall not (i ) be liable to Subtenant for any act, omission or breach of the Sublease by Tenant, (ii ) be subject to any offsets or defenses which Subtenant might have against Tenant, (iii ) be bound by any Base Rent or Additional Rent which Subtenant might have paid in advance to Tenant, or (iv ) be bound to honor any rights of Subtenant in any security deposit made with Tenant, except to the extent Tenant has turned over such security deposit to Master Landlord Tenant hereby agrees that in the event of Lease Termination, Tenant shall immediately pay or transfer to Master Landlord any security deposit, rent or other sums then held by Tenant.
 
6.               This Consent Agreement shall be binding upon and inure to the benefit of the parties' respective successors and permitted assigns, subject to all agreements and restrictions contained in the Master Lease, the Sublease and herein with respect to subleasing, assignment or other transfer The agreements contained herein constitute the entire understanding between the parties with respect to the subject matter hereof and supercede all prior agreements except for the Master Lease, written or oral, inconsistent herewith No amendment, modification or change therein will be effective unless Master Landlord shall have given its prior written consent thereto This Consent Agreement may be amended only in writing, signed by all parties hereto.
 
G-10

7.               Notices given hereunder shall be given as required under the Master Lease to the parties at the following addresses:
 
MASTER LANDLORD:
 
     
TENANT:
   
     
     
     
     
SUBTENANT:
   
     
     
     
 
8.               Tenant and Subtenant agree to indemnify and hold Master Landlord harmless from and against any loss, cost, expense, damage or liability, including reasonable attorneys' fees, incurred as a result of a claim by any person or entity (i ) that it is entitled to a commission, finder's fee or the like payment in connection with the Sublease or (ii ) relating to or arising out of the Sublease or any related agreements or dealings.
 
9.              The Sublease may not be amended or renewed without Master Landlord's prior written consent.
 
G-11

IN, WITNESS WHEREOF, the parties hereto have executed this Consent Agreement the day and year first above written.
 
MASTER LANDLORD:
   
     
TENANT:   SUBTENANT:
         
By:
   
By:
 
 
 
G-12


Exhibit 10.42

FIRST AMENDMENT TO OFFICE BUILDING LEASE

This FIRST AMENDMENT TO OFFICE BUILDING LEASE (this “ Amendment ”) is made and entered into as of October 16, 2007, by and between PARK LAKE APARTMENTS, LLC, a California limited liability company (“ Landlord ”), and RIMINI STREET, INC., a Nevada corporation (“ Tenant ”).

RECITALS:

A.           WHEREAS, Landlord’s predecessor-in-interest and Tenant entered into that certain Office Building Lease dated September, 2006 (“ Lease ”) whereby Landlord leased to Tenant and Tenant leased from Landlord approximately 1,794 square feet of Net Rentable Area (the “ Original Leased Premises ”) and situated at 6601 Koll Center Parkway, Pleasanton, California (“ Original Building ”) and known as Suite 246.

B.           WHEREAS, Landlord and Tenant now desire to amend the Lease in accordance with the terms hereof whereby, among other things, Tenant will surrender the Original Leased Premises to Landlord, Landlord shall lease to Tenant and Tenant shall lease from Landlord the Replacement Leased Premises (as hereinafter defined) and the Term for the Replacement Leased Premises shall be extended by the Renewal Term (as hereinafter defined), upon the terms and conditions set forth in the Lease, as amended hereby.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.            Recitals .  The foregoing recitals are incorporated herein by this reference.

2.            Defined Terms .  Capitalized terms not otherwise defined herein shall have the meaning given such terms in the Lease.

3.            Effective Date .  This Amendment shall be effective upon the date hereof (“ Effective Date ”).

4.            Original Leased Premises and Replacement Leased Premises .

(a)           Upon the Renewal Term Commencement Date (as hereinafter defined), Tenant shall surrender and vacate to Landlord, the Original Leased Premises and Landlord shall lease to Tenant and Tenant shall lease from Landlord approximately 5,766 square feet of Net Rentable Area (the “ Replacement Leased Premises ”) and situated on the third floor of 6601 Koll Center Parkway, Pleasanton, California and known as Suite 350.  Exhibit A-1 attached hereto sets forth the Replacement Leased Premises.

(b)           Upon the Renewal Term Commencement Date and assuming that the Tenant has vacated and surrendered the Original Leased Premises as required hereunder, the Lease shall no longer be effective as to the Original Leased Premises, but solely as to Replacement Leased Premises.  From and after the Renewal Term Commencement Date: (i) each and every reference in the Lease to “Leased Premises” shall be and mean the Replacement Leased Premises; and (ii) Exhibit A attached to the Lease shall be deemed to have been deleted in its entirety and replaced with Exhibit A-1 attached hereto.  Notwithstanding anything to the contrary contained herein or in the Lease, the indemnities by Tenant of Landlord set forth in the Lease shall survive the surrender of the Original Leased Premises, such survival to be upon the terms and conditions set forth in the Lease.
 
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5.            Renewal Term .

(a)           The term of the Lease, as amended hereby, for the Replacement Leased Premises (the “ Renewal Term ”), shall commence (“ Renewal Term Commencement Date ”) upon the Substantial Completion (as hereinafter defined) of the Replacement Leased Premises.  The Renewal Term shall expire on the “ Renewal Term Expiration Date ” which shall mean: (i) where the Renewal Term Commencement Date is the first day of a calendar month, the last calendar day of the thirty-ninth (39 th ) month after the Renewal Term Commencement Date measured by counting the month in which the Renewal Term Commencement Date occurs, or (ii) where the Renewal Term Commencement Date is other than the first day of a calendar month, the last calendar day of the thirty-ninth (39 th ) month after the Renewal Term Commencement Date measured without counting the month in which the Renewal Term Commencement Date occurs, or (iii) irrespective of whether item (i) or item (ii) applies, such earlier date upon which the Lease, as amended hereby, is terminated pursuant to the terms hereof.

(b)           Landlord and Tenant anticipate that the Replacement Leased Premises shall be Substantially Complete on December 1, 2007 (“ Scheduled Renewal Term Commencement Date ”), but the same shall not be a representation or warranty by Landlord that the Replacement Leased Premises shall be Substantially Complete by such date.  If the Replacement Leased Premises are not Substantially Complete by the Renewal Term Commencement Date for any reason, Landlord shall not be liable for any claims, damages or liabilities by reason thereof.  However, in such event of delay, the Scheduled Renewal Term Commencement Date shall be rescheduled to occur January 15, 2008.  Upon the Renewal Term Commencement Date, at the request of Landlord, Landlord and Tenant shall promptly execute a Lease Commencement Certificate in the form attached as Exhibit D to the Lease, specifying, among other things, the Renewal Term Commencement Date.  Tenant’s obligation to pay Rent and its other obligations under the Lease, as amended hereby, for the Replacement Leased Premises shall commence upon the Renewal Term Commencement Date.

(c)           As used herein and with regards to the Replacement Leased Premises only, “Substantial Completion” shall mean (and the Replacement Leased Premises shall be deemed “ Substantially Complete ”) when: (i) installation of Tenant Improvements (as hereinafter defined) in accordance with Section 5(d) has occurred, (ii) Tenant has direct access to the elevator lobby on the floor where the Replacement Leased Premises are located, (iii) Basic Services are available to the Replacement Leased Premises, and (iv) to the extent necessary for the Tenant Improvements, Landlord has received a temporary certificate of occupancy for the Replacement Leased Premises from the City of Pleasanton, California.
 
Page  2 of 9


(d)           Following the mutual execution and delivery of this Amendment and prior to the Renewal Term Commencement Date, Landlord shall construct and install certain improvements within the Replacement Leased Premises (collectively herein, the “ Tenant Improvements ”), which shall be constructed in accordance with: (i) the all applicable laws, including the Americans with Disabilities Act, as the same are in affect as of the Renewal Term Commencement Date only, (ii) the space plan (“ Option B ”), dated July 13, 2007 (“ Space Plan ”) and approved by Landlord and Tenant, as evidenced by both parties signature upon such space plan (the approved space plan shall be referred to herein as the “ Space Plan ”) and attached hereto as Exhibit B .  The Tenant Improvements shall be constructed by Landlord, with the cost of construction of those Tenant Improvements which constitute Building Standard Improvements to be borne by Landlord and the costs of construction of any Tenant Improvements constituting Tenant Extra Improvements (if any) such costs herein collectively, the “ Replacement Leased Premises Tenant Extra Improvements Costs ”) being borne by Tenant.  Notwithstanding the foregoing, in the event of any Tenant’s Delay, Tenant shall also be responsible for all increased costs of construction of the Tenant Improvements incurred by Landlord as a result of such Tenant’s Delay (such costs referred to collectively herein as “ Replacement Leased Premises Change Costs ”).  In connection with the foregoing provisions, Tenant shall reimburse Landlord for the Replacement Leased Premises Tenant Extra Improvements Costs (if any) and the Replacement Leased Premises Change Costs (if any) within ten (10) business days after Landlord’s delivery of a statement of such costs to Tenant.  For purposes hereof, “ costs ” shall include, without limitation, all building permit fees for Replacement Leased Premises Tenant Extra Improvement Costs (not included in the permit fees paid with respect to the Replacement Building), payments to design consultants for services and disbursements, a management fee (“ Replacement Leased Premises Construction Management Fee ”) for the coordination and supervision of the construction of the Tenant Improvements in an amount equal to four percent (4%) of the aggregate amount of all costs of construction of the Tenant Improvements (other than the Replacement Leased Premises Construction Management Fee), and such inspection fees as Landlord may incur and reimbursement to Landlord for permit and other fees Landlord has prepaid that are fairly attributable to the Tenant Improvements.

(e)           For the purposes herein, the term “ Tenant’s Delay ” shall mean any delay in the construction of the Tenant Improvements resulting from: (i) Tenant’s change(s) in the Space Plan, provided that Tenant shall not change the Space Plan without the prior written consent of Landlord, which consent shall not be unreasonably withheld unless such change either incorporates items which are not Building Standard Improvements or could reasonably be expected to delay Substantial Completion; or (ii) Tenant’s request for materials, finishes or installations which require a longer time than Building Standard Improvements to obtain, install or complete; or (iii) Tenant’s failure to comply with Landlord’s contractor’s or subcontractor’s schedule; or (iv) an Event of Default by Tenant under the Lease or the existence of any event or condition which, with the passage of time or the giving of notice or both would constitute such an Event of Default; or (v) delays caused by Tenant in construction; or (vi) any work performed in, on or about the Replacement Leased Premises by Tenant or any Tenant Parties.  Tenant acknowledges that the length and/or impact of any Replacement Leased Premises Tenant’s Delay may exceed the duration or scope of such event or conduct due to the necessity of rescheduling work or other causes.
 
Page  3 of 9


6.            Base Rent .  As of the Renewal Term Commencement Date, the Base Rent set forth in the Basic Lease Information shall be adjusted to be the following amounts for the Replacement Leased Premises:

Months of Renewal Term
Monthly Base Rent
(per square foot)
Monthly Base Rent
1 – 3
$0.00
$0.00
4 – 39
$2.55
$14,703.30

7.            Tenant’s Percentage Share .  As of the Renewal Term Commencement Date, Tenant’s Percentage Share shall be adjusted to take into consideration the Net Rentable Area of the Replacement Leased Premises.

8.            Direct Expenses Base .  As of the Renewal Term Commencement Date, the amount of annual Direct Expenses that Landlord has included in the Base Rent shall be adjusted to become equal to Tenant’s Percentage of the actual Direct Expenses incurred by Landlord in calendar year 2008:

9.            Early Access .  Landlord shall provide Tenant with limited early access to the Replacement Leased Premises for the approximately ten (10) day period prior to the date when Landlord estimates that the Tenant Improvements will be Substantially Completed for the sole purpose of permitting Tenant to ready the Replacement Leased Premises for Tenant’s occupancy, at such times as are reasonably specified by Landlord so that Tenant’s access does not interfere with the performance of Landlord’s work in the Replacement Leased Premises.  Tenant’s access to the Replacement Leased Premises during the period of time prior to the Renewal Term shall be subject to all the provisions of the Lease, as amended hereby (including the Rules and Regulations and such other rules and regulations as Landlord may reasonably impose), other than the payment of Rent and the expiration date of the Lease shall not be advanced by such access by Tenant of the Replacement Leased Premises prior to the Renewal Term Commencement Date.  Tenant shall not interfere with Landlord’s performance of Landlord’s work in the Replacement Leased Premises.
 
Page  4 of 9


 
10.            Renewal Option .

(a)           Subject to the terms of this Section 10, Tenant shall have one (1) option (“ Second Renewal Option ”) to extend the Term of this Lease for a consecutive period of sixty (60) months beyond the expiration of the Renewal Term (“ Second Renewal Term ”).  The Second Renewal Option is personal to Tenant and may not be exercised by any sublessee or assignee of Tenant.  The Second Renewal Option must be exercised, if at all, by written notice (“ Election Notice ”) from Tenant to Landlord given not more than two hundred seventy (270) days and not less than one hundred eighty (180) days prior to the expiration of the Renewal Option.  Any such Election Notice given by Tenant to Landlord shall be irrevocable.  The Second Renewal Option and Tenant’s delivery of an Election Notice shall be voidable and of no force or effect at the election of Landlord, exercised in Landlord’s sole and absolute discretion, if (i) an Event of Default is occurring under this Lease, or (ii) there is any event occurring which with the giving of notice or the passage of time, or both, would constitute an Event of Default hereunder, either at the time of Tenant’s delivery of the Election Notice or at any time from the date of delivery of such Election Notice through the time of commencement of the Second Renewal Term or (iii) if: (x) there has been any materially adverse change in the financial condition of the Tenant, as of the Renewal Term Commencement Date.  If Tenant fails to exercise the Second Renewal Option in a timely manner, as provided for above, then the Second Renewal Option shall be void and of no force or effect.  The validly exercised Second Renewal Term shall be upon the same terms and conditions as the Lease, as amended, except that (x) the annual Base Rent during the Second Renewal Term shall be equal to the Fair Market Rent as of the commencement of the Second Renewal Term; and (y) Tenant shall have no further renewal options pursuant to this Section 10 or any provision of the Lease.  Fair Market Rent for the Second Renewal Term shall be determined by Landlord with written notice given to Tenant prior to the commencement of the Second Renewal Term.

(b)           No later than thirty (30) days prior to the commencement of the Second Renewal Term, Tenant shall deposit with Landlord an amount, that when taken together with the Security Deposit, equals the Monthly Base Rent due for the last month of the Second Renewal Term (“ Additional Deposit ”).  Upon the commencement of the Second Renewal Term, the term “Security Deposit” shall automatically include the “Additional Deposit” and the Additional Deposit shall be held pursuant to the terms of Article 5 hereof.  If Tenant fails to deposit the Additional Deposit as and when required hereunder, Tenant’s exercise of the Second Renewal Option shall be null and void and the Renewal Term shall expire naturally expire.

11.            Graphics and Signage .  As of the Renewal Term Commencement Date, Landlord shall provide the Building standard identification of Tenant’s name at the entrance to the Replacement Leased Premises.

Tenant shall have a right to one (1) line on the Building entry monument sign.  Landlord and Tenant will comply with all governmental regulations and will be subject to any Project CC&R’s in connection with the monument signage right described herein.  Monument signage fabrication, installation, repairs and removal shall be at Tenant’s sole expense.

12.            Parking .  As of the Renewal Term Commencement Date, Tenant’s entitlement to parking spaces shall be based upon the rentable square feet in the Replacement Leased Premises.

13.            Original Leased Premises Rent .  Provided that Landlord and Tenant have executed and delivered this Amendment not later than October 15, 2007, then until the Renewal Term Commencement Date occurs, Tenant shall pay, as Monthly Base Rent, the Monthly Base Rent that is due for the last month of the Term for the Original Leased Premises (and not the holdover Monthly Base Rent required under Article 9 of the Lease).
 
Page  5 of 9


 
14.            Brokers .  Tenant and Landlord each represent and warrant to the other that it has had no dealing with any broker or agent with respect to this Amendment other than Colliers International, on behalf of Landlord and Tenant.  Landlord shall pay a commission to Colliers International pursuant to a separate agreement.  Tenant and Landlord each do hereby agree to indemnify, defend and hold the other party harmless from and against any and all liabilities for commissions or other compensation or charges claimed by any other broker or agent based on dealings with the indemnifying party with respect to this Amendment.  The foregoing indemnity shall survive termination or earlier expiration of the Lease.

15.            Security Deposit .  Pursuant to the terms and conditions set forth in the Lease, Tenant deposited with Landlord the sum of Four Thousand Two Hundred Fifteen and Ninety/100 Dollars ($4,215.90) as the Security Deposit.  Concurrently with the execution and delivery of this Amendment by Tenant and as a condition precedent to the effectiveness of this Amendment, Tenant shall deliver to Landlord the additional sum of Ten Thousand Four Hundred Eighty-Seven and Forty/100 Dollars ($10,487.40), so that such additional sum, when taken together with the existing Security Deposit, shall equal the Monthly Base Rent that Tenant is obligated to pay for the last month of the Renewal Term and such original Security Deposit together with the additional amount shall be subject to Article 5 of the Lease.

16.            Lease .  All provisions of the Lease which are not amended hereby are incorporated herein as if the same had been set forth herein.

[SIGNATURE PAGE FOLLOWS]
 
Page  6 of 9


This Amendment is executed by the parties hereto as of the date first written above.

 
Landlord:
PARK LAKE APARTMENTS, LLC
   
a California limited liability company
       
   
By:
/s/ Carl Zocchi
       
   
Name:
Carl Zocchi
       
   
Its:
Partner
       
 
Tenant: 
RIMINI STREET, INC.,
    a Nevada corporation
       
   
By:
/s/ Seth A. Ravin
       
   
Name:
Seth A. Ravin
       
   
Its:
CEO & President
 
Page  7 of 9


EXHIBIT A-1

Replacement Leased Premises Description
 
 
 
 
 
Page  8 of 9

 
EXHIBIT B

Space Plan
 
 

 


Page  9 of 9


Exhibit 10.43

SECOND AMENDMENT TO OFFICE BUILDING LEASE

This SECOND AMENDMENT TO OFFICE BUILDING LEASE (“ Amendment ”) is made and entered into as of May 4, 2009, by and between PARK LAKE APARTMENTS, LLC , a California limited partnership (“ Landlord ”) and RIMINI STREET, INC. , a Nevada corporation (“ Tenant ”).

RECITALS:

A.            WHEREAS, Landlord’s predecessor-in-interest and Tenant entered into that certain Office Building Lease dated as of September 2006 (“ Original Lease ”), pursuant to which Landlord leased to Tenant and Tenant leased from Landlord Suite 246, consisting of approximately 1,794 rentable square feet and located on the second floor (“ Original Premises ”) of the building located at 6601 Koll Center Parkway, Pleasanton, California (“ Building ”);

B.            WHEREAS, the Original Lease was amended by that certain First Amendment to Office Building Lease dated as of October 2007 (“ First Amendment ” and the Original Lease, as amended, is referred to herein as the “ Lease ”), pursuant to which, among other things, Landlord leased to Tenant, Suite 350, consisting of approximately 5,766 rentable square feet and located on the third floor (“ Replacement Premises ”) of the Building, in lieu of the Original Premises.

C.            WHEREAS, Landlord and Tenant now desire to amend the Lease in accordance with the terms hereof whereby, among other things: (i) the Renewal Term shall be extended by the Second Renewal Term (as hereinafter defined); and (ii) Landlord shall additionally lease to Tenant and Tenant shall additionally lease from Landlord approximately 6,337 rentable square feet of space on the third floor of the Building (“ Expansion Premises ”) as of the Second Renewal Term Commencement Date (as hereinafter defined), all upon the terms and conditions set forth in the Lease, as amended hereby.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.            Recitals .  The foregoing recitals are incorporated herein by this reference.

2.            Defined Terms .  Capitalized terms not otherwise defined herein shall have the meaning given such terms in the Lease.

3.            Effective Date .  The effective date of this Amendment shall be upon the mutual execution and delivery of this Amendment by Landlord and Tenant (“ Effective Date ”).

4.            Extension of Renewal Term .  Pursuant to the First Amendment, the Renewal Term expires on February 28, 2011.  As of the Effective Date, and notwithstanding the current expiration date of the Renewal Term, the Lease Term for the Replacement Premises and the Expansion Premises shall be extended for fifty-one (51) months (“ Second Renewal Term ”), commencing (“ Second Renewal Term Commencement Date ”) upon Substantial Completion (as hereinafter defined) of the Expansion Premises Tenant Improvements (as hereinafter defined), provided, however, if the Expansion Premises Tenant Improvements are Substantially Completed prior to July 1, 2009, the Second Renewal Term Commencement Date shall not occur until July 1, 2009, unless Tenant agrees otherwise.  During the Second Renewal Term, all of the terms and provisions of the Lease, as amended by this Amendment, shall be in full force and effect and shall be applied in the same manner as such terms and provisions were applied during the original term of the Lease.
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5.            Expansion Premises .

(a)            In consideration of the rents, terms, provisions and covenants of this Amendment and the Lease, Landlord hereby leases unto Tenant and Tenant hereby rents and accepts from Landlord the Expansion Premises.  The Expansion Premises is more particularly described on Exhibit A attached hereto.  The Expansion Premises is contiguous to the Replacement Premises.

(b)            Tenant covenants, as a material part of the consideration for the Lease, as amended hereby, to keep and perform each and all of said terms, covenants and conditions for which Tenant is liable and that this Amendment is made upon the condition of such performance.  On and after the Second Renewal Term Commencement Date, all of the terms and provisions of the Lease, as amended hereby, shall apply to both the Replacement Premises and the Expansion Premises.  From and after the Second Renewal Term Commencement Date, each and every reference in the Lease and in this Amendment to “ Premises ” shall be and mean the Replacement Premises and the Expansion Premises, collectively.  The Replacement Premises and Expansion Premises consist of a total of approximately 12,103 rentable square feet.  The Expansion Premises shall be known as Suite 246.

(c)            At Landlord’s request, Tenant shall execute a Commencement Date Memorandum in the form attached hereto as Exhibit B acknowledging, among other things, the (i) Second Renewal Term Commencement Date, (ii) scheduled termination date of the Lease and (iii) Tenant’s acceptance of the Expansion Premises.  Tenant’s failure to execute the Commencement Date Memorandum shall not affect Tenant’s liability hereunder.

6.            Replacement Premises and Expansion Premises Base Rent .  As of the Second Renewal Term Commencement Date, the monthly Base Rent for the Replacement Premises and Expansion Premises shall be as follows:

Period of the Second Renewal Term
Annual Rental Rate Per Rentable Square Foot
Monthly Base Rent
for the Expansion
Premises and
Replacement
Premises
1 – 3
$0.00
$0.00
4 – 15
$2.10
$25,416.30
16 – 27
$2.15
$26,021.45
28 – 39
$2.20
$26,626.60
40 – 51
$2.25
$27,231.75

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7.            Tenant’s Percentage Share .  As of the Second Renewal Term Commencement Date, Tenant’s Percentage Share shall be adjusted upwards to 17.39%, to take into account the leasing of the Expansion Premises to Tenant.

8.            Base Year .  As of the Second Renewal Term Commencement Date, the Base Year shall be adjusted to 2009.

9.            Expansion Premises Tenant Improvements .

(a)            Following the mutual execution and delivery of this Amendment and prior to the Second Renewal Term Commencement Date, Landlord shall construct and install certain improvements within the Expansion Premises (collectively herein, the “ Expansion Premises Tenant Improvements ”), which shall be constructed in accordance with (i) the all applicable laws including the Americans with Disabilities Act, as the same are in affect as of the Second Renewal Term Commencement Date only, and (ii) the space plan (“ Space Plan ”), prepared by AAI, dated April 4, 2009 (“ Space Plan ”) attached hereto as Exhibit C .  As part of the Expansion Premises Tenant Improvements, Landlord will be responsible for installing a single 3’ x 9’ glass door in the Tenant’s conference room adjacent to reception and for installing clear tempered, butt-jointed glass sections in the balance of the conference room wall.  The Expansion Premises Tenant Improvements shall be constructed by Landlord, with the cost of construction of those Expansion Premises Tenant Improvements which constitute Building standard improvements to be borne by Landlord and the costs of construction of any Expansion Premises Tenant Improvements constituting Tenant Extra Improvements (if any) (such costs herein collectively, the “ Expansion Premises Tenant Extra Improvements Costs ”) being borne by Tenant.  Notwithstanding the foregoing, in the event of any Tenant’s Delay (as defined in this Amendment and not the First Amendment), Tenant shall also be responsible for all increased costs of construction of the Expansion Premises Tenant Improvements incurred by Landlord as a result of such Tenant’s Delay (such costs referred to collectively herein as “ Expansion Premises Change Costs ”).  In connection with the foregoing provisions, Tenant shall reimburse Landlord for the Expansion Premises Tenant Extra Improvements Costs (if any) and the Expansion Premises Change Costs (if any) within ten (10) business days after Landlord’s delivery of a statement of such costs to Tenant.  For purposes hereof, “ costs ” shall include, without limitation, all building permit fees for Expansion Premises Tenant Extra Improvement Costs (not included in the permit fees paid with respect to the Building), payments to design consultants for services and disbursements, a management fee (“ Expansion Premises Construction Management Fee ”) for the coordination and supervision of the construction of the Expansion Premises Tenant Improvements in an amount equal to four percent (4%) of the aggregate amount of all costs of construction of the Tenant Extra Improvements (other than the Expansion Premises Construction Management Fee), and such inspection fees as Landlord may incur and reimbursement to Landlord for permit and other fees Landlord has prepaid that are fairly attributable to the Expansion Premises Tenant Extra Improvements Costs.

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(b)            As used herein and with regards to the Expansion Premises only, “ Substantial Completion ” shall mean (and the Expansion Premises shall be deemed “ Substantially Complete ”) when: (i) installation of Expansion Premises Tenant Improvements has been completed in accordance with the Space Plan, as reasonably determined by Landlord’s contractor, (ii) Tenant has direct access to the elevator lobby on the floor where the Expansion Premises are located, and (iii) Building services are available to the Expansion Premises.  Substantial Completion shall have occurred even though minor details of construction, decoration and mechanical adjustments remain to be completed by Landlord (so long as the same do not interfere with Tenant’s use of the Expansion Premises).

(c)            For the purposes herein, the term “ Tenant’s Delay ” shall mean any delay in the construction of the Expansion Premises Tenant Improvements resulting from: (i) Tenant’s change(s) in the Space Plan, provided that Tenant shall not change the Space Plan without the Prior written consent of Landlord, which consent shall not be unreasonably withheld unless such change either incorporates items which are not Building standard improvements or could reasonably be expected to delay Substantial Completion; or (ii) Tenant’s request for materials, finishes or installations which require a longer time than Building standard improvements to obtain, install or complete; or (iii) Tenant’s failure to comply with Landlord’s contractor’s or subcontractor’s schedule; or (iv) an Event of Default by Tenant under the Lease or the existence of any event or condition which, with the passage of time or the giving of notice or both would constitute such an Event of Default; or (v) delays caused by Tenant in construction; or (vi) any work performed in, on or about the Expansion Premises by Tenant or any Tenant Parties concurrently with the performance by Landlord of the Expansion Premises Tenant Improvements.  Tenant acknowledges that the length and/or impact of any Expansion Premises Tenant’s Delay may exceed the duration or scope of such event or conduct due to the necessity of rescheduling work or other causes.

(d)            Tenant shall be responsible for the cost of expanding its card key access system to the Expansion Premises.

(e)            Tenant hereby acknowledges and approves that Landlord will be conducting Expansion Premises Tenant Improvements in the Expansion Premises during Tenant’s occupancy of the Replacement Premises.  Tenant agrees that the performance of the Expansion Premises Tenant Improvements shall in no way constitute a constructive eviction of Tenant nor entitle Tenant to any abatement of rent or damages of any kind.  Furthermore, in no event shall Tenant be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part of the Replacement Premises or of Tenant’s personal property or improvements resulting from the Expansion Premises Tenant Improvements or Landlord’s actions in connection with the Expansion Premises Tenant Improvements, or for any inconvenience or annoyance occasioned by the Tenant Expansion Premises Improvements or Landlord’s actions in connection with the Expansion Premises Tenant Improvements.  Tenant shall ready the Replacement Premises in a sufficiently clean condition to ensure that Landlord will be able to construct the Expansion Premises Tenant Improvements.

10.            Third Renewal Term .

(a)            Section 10 of the First Amendment is deleted in its entirety and is replaced with the Sections 10(b) through (d) below.

4

(b)            Subject to the terms of this Section 10, Tenant shall have one (1) option (“ Third Renewal Option ”) to extend the Second Renewal Term for a consecutive period of sixty (60) months beyond the expiration of the Second Renewal Term (“ Third Renewal Term ”).  The Third Renewal Term is personal to Tenant and may not be exercised by any sublessee or assignee of Tenant.  The Third Renewal Option must be exercised, if at all, by written notice (“ Election Notice ”) from Tenant to Landlord given not more than three hundred sixty five (365) days and not less than one hundred eighty (180) days prior to the expiration of the Third Renewal Option.  Any such Election Notice given by Tenant to Landlord shall be irrevocable.  The Third Renewal Option and Tenant’s delivery of an Election Notice shall be voidable and of no force or effect at the election of Landlord, exercised in Landlord’s sole and absolute discretion, if (i) an Event of Default is occurring under the Lease, as amended hereby, or (ii) there is an event occurring which with the giving of notice or the passage of time, or both, would constitute an Event of Default under the Lease, as amended hereby, either at the time of Tenant’s delivery of the Election Notice or at any time from the date of delivery of such Election Notice through the time of commencement of the Third Renewal Term or (iii) if there has been any materially adverse change in the financial condition of the Tenant, as of the commencement of the Third Renewal Term.  If Tenant fails to exercise the Third Renewal Option in a timely manner, as provided for above, then the Third Renewal Option shall be void and of no force and effect.  The validly exercised Third Renewal Term shall be upon the same terms and conditions as the Lease, as amended, except that: (x) the annual Base Rent during the Third Renewal Term shall be equal to the Fair Market Rent (as hereinafter defined) as of the commencement of the Third Renewal Term; and (y) Tenant shall have no further renewal options pursuant to this Section 10 or any provision of the Lease.  “ Fair Market Rent ” for the Third Renewal Term shall be equal to the then-prevailing market rent for comparable buildings in Pleasanton, California as reasonably determined by Landlord with written notice given to Tenant prior to the commencement of the Third Renewal Term.

(c)            Upon the mutual execution and delivery of an amendment incorporating the lease terms for the Third Renewal Option, Landlord shall provide new Building standard carpet throughout the Replacement Premises (but not the Expansion Premises).

(d)            No later than thirty (30) days prior to the commencement of the Third Renewal Term, Tenant shall deposit with Landlord an amount, that when taken together with the Security Deposit, equals the monthly Base Rent due for the last month of the Third Renewal Term.  Upon the commencement of the Third Renewal Term, the term “Security Deposit” shall automatically include such additional Security Deposit and such additional Security Deposit shall be held pursuant to the terms of Article 5 of the Lease.  If Tenant fails to deposit such additional Security Deposit as and when required hereunder, Tenant’s exercise of the Third Renewal Option shall be null and void and the Second Renewal Term shall expire naturally.

11.            Parapet Signage .  Subject to Article 27 of the Lease, as of the Second Renewal Term Commencement Date, Tenant shall have the right to one (1) parapet sign on the exterior of the Building in a location mutually agreeable to Landlord and Tenant and subject to the approval of the City of Pleasanton.  Notwithstanding the foregoing, such parapet signage shall not be located above the front entry of the Building.  Landlord and Tenant shall comply with all Applicable Laws and the CC&R’s in connection with the parapet signage.  The fabrication, installation, maintenance, repair and removal, as well as Building exterior restoration, shall be at Tenant’s sole expense.

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12.            Furniture .  There is currently located in the Expansion Premises certain furniture and equipment which belongs to the prior tenant.  Tenant has expressed its interest to Landlord in acquiring all or some of the furniture and equipment from the prior tenant.  Any furniture or equipment that Tenant does not purchase from the prior tenant shall be removed by the Landlord at no cost or expense to Tenant, prior to the Second Renewal Term Commencement Date.  To the extent there are any marks or soiled carpets underneath any of the furniture that is removed by Landlord, then Landlord will cause such portions of the carpet to be professionally cleaned, prior to the Second Renewal Term Commencement Date.  Landlord makes absolutely no representations nor warranties concerning the furniture and equipment.  Landlord shall have no maintenance or repair obligations with respect to the furniture and equipment.  Any transaction between Tenant and the prior tenant for the purchase of the furniture and equipment shall be between Tenant and the prior tenant and not Landlord.

13.            Parking .  As of the Second Renewal Term Commencement Date, Tenant’s entitlement to parking spaces shall be based upon the rentable square feet in the Replacement Premises and Expansion Premises, collectively.

14.            Security Deposit .  Pursuant to the Original Lease and First Amendment, Tenant has deposited a total of Fourteen Thousand Seven Hundred Three and 30/100 Dollars ($14,703.30) as the Security Deposit.  Upon the Effective Date, Tenant shall deposit with Landlord the additional sum of Thirteen Thousand Five Hundred Twenty Eight and 45/100 Dollars ($13,528.45), so that such sum, together with the original Security Deposit, shall equal the Base Rent due for the last month of Second Renewal Term and such original Security Deposit together with the additional amount shall be considered the “Security Deposit” and shall be subject to Article 5 of the Lease.

15.            As-Is .  Tenant agrees and acknowledges that the Replacement Premises remain acceptable for Tenant’s use, and Tenant acknowledges that neither Landlord nor any broker or agent has made any representations or warranties in connection with the physical condition of the Replacement Premises or the Expansion Premises or their fitness for Tenant’s use upon which Tenant has relied directly or indirectly for any purpose.  Subject to completion of the Expansion Premises Tenant Improvements, Tenant accepts the Replacement Premises in an “AS IS” condition.

16.            Tenant’s Representations and Warranties .  Tenant hereby represents and warrants to Landlord that the Lease as amended hereby constitutes a valid and binding obligation of Tenant, enforceable against Tenant in accordance with their terms, and Tenant has no defenses, offsets or counterclaims with respect to its obligations thereunder.  Tenant also represents and warrants that there is no existing default on the part of the Landlord or the Tenant in any of the terms and conditions of the Lease and no event has occurred which, with the passing of time or giving of notice or both, would constitute an event of default under the Lease by Landlord or Tenant.

17.            Express Changes Only .  Except as set forth in this Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect and shall be incorporated herein.

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18.            Brokers .  Tenant warrants that it has had no dealings with any real estate broker or agent, other than Colliers International, acting in its dual capacity on behalf of Landlord and Tenant.  Landlord shall pay Colliers International pursuant to a separate written agreement.  If Tenant has dealt with any other person or real estate broker with respect to leasing or renting space in the Building, Tenant shall be solely responsible for the payment of any fee due said person or firm and Tenant shall hold Landlord free and harmless against any liability in respect thereto, including attorneys’ fees and costs.

19.            Counterparts .  This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original and all such counterparts together, shall constitute one and the same instrument.  The execution of facsimiles of this Amendment shall be binding on the parties hereto.

20.            Entire Agreement .  There are and were no oral or written representations, warranties, understandings, stipulations, agreements, or promises made by either party, or by any agent, employee, or other representative of either party, pertaining to the subject matter of this Amendment which have not been incorporated into this Amendment.  This Amendment shall not be modified, changed, terminated, amended, superseded, waived, or extended except by a written instrument executed by the parties hereto.

[SIGNATURE PAGE ATTACHED]

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LANDLORD:

PARK LAKE APARTMENTS, L.P.,
a California limited partnership

By:
/s/ Louis Zocchi
 
Name:
Louis Zocchi
 
Its:
General Partner
 

TENANT:

RIMINI STREET, INC.,
a Nevada corporation

By:
/s/ Thomas Shay
 
Name:
Thomas Shay
 
Its:
EVP Operations
 


EXHIBIT A

EXPANSION PREMISES FLOOR PLAN

[see attached]


EXHIBIT B

COMMENCEMENT DATE MEMORANDUM

With respect to that certain lease (“Lease”) dated , __________________, 2009 between ______________________ a ______________________ (“Tenant”), and ______________________, company _______________________ (“Landlord”), whereby Landlord leased to Tenant and Tenant leased from Landlord approximately _______ rentable square feet of the building located at __________________________ (“Premises”), Tenant hereby acknowledges and certifies to Landlord as follows:

(1)            Landlord delivered possession of the Expansion Premises to Tenant in a Substantially Complete on ______________________.

(2)            The Second Renewal Term commenced on ______________________;

(3)            The Replacement Premises and Expansion Premises contain _________ rentable square feet of space; and

(4)            Tenant has accepted and is currently in possession of the Premises and the Premises are acceptable for Tenant’s use.

(5)            Rent Per Month is ______________.

IN WITNESS WHEREOF, this Commencement Date Memorandum is executed this day of _______________.

 
“Tenant”
   
   
   
   



EXHIBIT C

SPACE PLAN

[See Attached]





Exhibit 10.44

THIRD AMENDMENT TO OFFICE BUILDING LEASE

This THIRD AMENDMENT TO OFFICE BUILDING LEASE (“ Amendment ”) is made and entered into as of October 12 , 2009, by and between PARK LAKE APARTMENTS, LLC , a California limited partnership (“ Landlord ”) and RIMINI STREET, INC ., a Nevada corporation (“ Tenant ”).

RECITALS:

A.            WHEREAS, Landlord’s predecessor-in-interest and Tenant entered into that certain Office Building Lease dated as of September 2006 (“ Original Lease ”), pursuant to which Landlord leased to Tenant and Tenant leased from Landlord Suite 246, consisting of approximately 1,794 rentable square feet and located on the second floor (“ Original Premises ”) of the building located at 6601 Koll Center Parkway, Pleasanton, California (“ Building ”);

B.            WHEREAS, the Original Lease was amended by that certain First Amendment to Office Building Lease dated as of October 2007 (“ First Amendment ”) pursuant to which, among other things, Landlord leased to Tenant, Suite 350, consisting of approximately 5,766 rentable square feet and located on the third floor (“ Replacement Premises ”) of the Building, in lieu of the Original Premises;

C.            WHEREAS, the Original Lease was further amended by that certain Second Amendment to Office Building Lease dated as of May 2009 (“ Second Amendment ”, together with the First Amendment and Original Lease, as amended, is referred to herein as the “ Lease ”) pursuant to which, among other things: (i) the Renewal Term was extended by the Second Renewal Term; and (ii) Landlord additionally leased to Tenant and Tenant additionally leased from Landlord approximately 6,337 rentable square feet of space on the third floor of the Building (“ Expansion Premises ”, together with the Replacement Premises is referred to herein as the “ Existing Premises ”) as of the Second Renewal Term Commencement Date; and

D.            WHEREAS, Landlord and Tenant now desire to amend the Lease in accordance with the tennis hereof whereby, among other things: (i) the Renewal Term shall be extended by the Third Renewal Term (as hereinafter defined); and (ii) Landlord shall additionally lease to Tenant and Tenant shall additionally lease from Landlord approximately 10,852 rentable square feet of space adjacent to the Existing Premises of the Building (“ Second Expansion Premises ”) as of the Third Renewal Term Commencement Date (as hereinafter defined), all upon the terms and conditions set forth in the Lease, as amended hereby.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.            Recitals . The foregoing recitals are incorporated herein by this reference.

2.            Defined Terms . Capitalized terms not otherwise defined herein shall have the meaning given such terms in the Lease.


3.            Effective Date . The effective date of this Amendment shall be upon the mutual execution and delivery of this Amendment by Landlord and Tenant (“ Effective Date ”).

4.            Extension of Renewal Term . Pursuant to the Second Amendment, the Renewal Term expires on August 31, 2013. As of the Effective Date, and notwithstanding the current expiration date of the Renewal Term, the term of the Lease for the Second Expansion Premises shall be for sixty (60) months (“ Third Renewal Term ”), commencing on November 1, 2009 (“ Third Renewal Term Commencement Date ”) and expiring on October 31, 2014 and the term of the Lease for the Existing Premises shall be extended to be co-terminus with the Third Renewal Term (i.e. expiring on October 31, 2014. Landlord shall provide Tenant with limited access to the Second Expansion Premises from October 15, 2009 for the sole purpose of permitting Tenant to ready the Premises for Tenant’s occupancy, at such times as are reasonably specified by Landlord so that Tenant’s access does not interfere with the performance of the Second Expansion Premises Tenant Improvements (as hereinafter defined). Tenant’s access to the Second Expansion Premises during the period of time prior to the Third Renewal Term Commencement Date shall be subject to all the provisions of the Lease, other than the payment of Rent and the expiration date of the Lease shall not be advanced by such access by Tenant of the Second Expansion Premises prior to the Third Renewal Term Commencement Date. Tenant shall not interfere with Landlord’s performance of the Second Expansion Premises Improvements. During the Third Renewal Term, all of the terms and provisions of the Lease, as amended by this Amendment, shall be in full force and effect and shall be applied in the same manner as such terms and provisions were applied during the original term of the Lease.

5.            Second Expansion Premises .

(a)            In consideration of the rents, terms, provisions and covenants of this Amendment and the Lease, Landlord hereby leases unto Tenant and Tenant hereby rents and accepts from Landlord the Second Expansion Premises. The Second Expansion Premises is more particularly described on Exhibit A attached hereto. The Second Expansion Premises is adjacent to the Existing Premises.

(b)            Tenant covenants, as a material part of the consideration for the Lease, as amended hereby, to keep and perform each and all of said terms, covenants and conditions for which Tenant is liable and that this Amendment is made upon the condition of such performance. On and after the Third Renewal Term Commencement Date, all of the terms and provisions of the Lease, as amended hereby, shall apply to both the Existing Premises and the Second Expansion Premises. From and after the Third Renewal Term Commencement Date, each and every reference in the Lease and in this Amendment to “ Premises ” shall be and mean the Existing Premises and the Second Expansion Premises, collectively. The Existing Premises and Second Expansion Premises consist of a total of approximately 22,955 rentable square feet. The Second Expansion Premises shall be known as Suite 300.


6.            Second Expansion Premises and Existing Premises Base Rent .

(a)            As of the Third Renewal Term Commencement Date, the monthly Base Rent for the Second Expansion Premises shall be as follows:

Period of the Third Renewal Term
Monthly Rental
Rate Per Rentable
Square Foot
Monthly Base Rent for the
Second Expansion
Premises
November 1, 2009 – December 31, 2009
$0.00
$0.00
January 1, 2010 – March 31, 2010
$0.96
$10,417.92
April 1, 2010 – October 31, 2010
$1.92
$20,835.84
November 1, 2010 – October 31, 2011
$1.97
$21,378.44
November 1, 2011 – October 31, 2013
$2.02
$21,921.04
November 1, 2013 – October 31, 2014
$2.07
$22,463.64

(b)            The monthly Base Rent for the Existing Premises shall be the same as is set forth in the Second Amendment, provided, however, commencing on September 1, 2013 and thereafter through the end of the Third Renewal Term, the monthly Base Rent for the Existing Premises shall be as follows:

Period of the Third Renewal Term
Monthly Rental
Rate Per Rentable
Square Foot
Monthly Base Rent for
the Existing Premises
September 1, 2013 – October 31, 2013
$2.02
$24,448.06
November 1, 2013 – October 15, 2014
$2.07
$25,053.21

7.            Tenant’s Percentage Share . As of the Third Renewal Term Commencement Date, Tenant’s Percentage Share shall be adjusted upwards to 32.98%, to take into account the leasing of the Second Expansion Premises to Tenant.

8.            Base Year . The Base Year shall remain as 2009, as set forth in the Second Amendment.

9.            Second Expansion Premises Tenant Improvements .

(a)            Following the mutual execution and delivery of this Amendment and prior to the Third Renewal Term Commencement Date, Landlord shall construct and install certain improvements within the Second Expansion Premises (collectively herein, the “ Second Expansion Premises Tenant Improvements ”), which shall be constructed in accordance with the Bid Space Plan (“ Bid Space Plan ”), prepared by Blueline Associates, Inc. dated October 9, 2009 attached hereto as Exhibit B . The Second Expansion Premises Tenant Improvements shall be constructed by Landlord at Landlord’s expense. The costs of construction of any improvements requested by Tenant which are not set forth on Exhibit B (if any) shall be borne by Tenant.


(b)            Landlord will also be responsible for installing carpet throughout the Replacement Premises during the period starting November 1, 2011 and ending October 31, 2012 (“ Replacement Premises Carpet Replacement ”) using Building standard carpet in a color selected by Tenant (or receive a credit equivalent to such expense against a more expensive carpet selected by Tenant, in which case Tenant shall be responsible for the difference in cost between the standard carpet and the more expensive carpet that Tenant selects). Tenant shall specify, in writing in advance, when Landlord should install the carpet during such period of time. Landlord shall have no obligation to provide carpet outside of the aforementioned time periods nor shall Landlord be required to perform the Replacement Premises Carpet Replacement while an Event of Default is on-going. Notwithstanding the foregoing, Tenant shall, prior to the Replacement Premises Carpet Replacement by Landlords, at Tenant’s sole cost and expense, have any and all furniture moved within, or removed from, the Replacement Premises (and moved back to their original place after such installation) as required and in order to permit the Replacement Premises Carpet Replacement by Landlord.

(c)            For the purposes herein, the term “ Tenant’s Delay ” shall mean any delay in the construction of the Second Expansion Premises Tenant Improvements resulting from: (i) Tenant’s change(s) in the Bid Space Plan, provided that Tenant shall not change the Bid Space Plan without the prior written consent of Landlord, which consent shall not be unreasonably withheld unless such change either incorporates items which are not Building standard improvements; or (ii) Tenant’s request for materials, finishes or installations which require a longer time than Building standard improvements to obtain, install or complete; or (iii) Tenant’s failure to comply with Landlord’s contractor’s or subcontractor’s schedule; or (iv) an Event of Default by Tenant under the Lease or the existence of any event or condition which, with the passage of time or the giving of notice or both would constitute such an Event of Default; or (v) delays caused by Tenant in construction; or (vi) any work performed in, on or about the Second Expansion Premises by Tenant or any Tenant Parties concurrently with the performance by Landlord of the Second Expansion Premises Tenant Improvements. Tenant acknowledges that the length and/or impact of any Second Expansion Premises Tenant’s Delay may exceed the duration or scope of such event or conduct due to the necessity of rescheduling work or other causes.

(d)            Tenant shall be responsible for the cost of expanding its card key access system to the Second Expansion Premises.

(e)            Tenant hereby acknowledges and approves that Landlord will be conducting Second Expansion Premises Tenant Improvements in the Second Expansion Premises and in the Replacement Premises with respect to the Replacement Premises Carpet Replacement during Tenant’s occupancy of the Existing Premises and Replacement Premises, as applicable. Tenant agrees that the performance of the Second Expansion Premises Tenant Improvements shall in no way constitute a constructive eviction of Tenant nor entitle Tenant to any abatement of rent or damages of any kind. Furthermore, in no event shall Tenant be entitled to any compensation or damages from Landlord for loss of the use of the whole or any part of the Existing Premises or of Tenant’s personal property or improvements resulting from the Second Expansion Premises Tenant Improvements or Landlord’s actions in connection with the Second Expansion Premises Tenant Improvements, or for any inconvenience or annoyance occasioned by the Second Expansion Premises Tenant Improvements or Landlord’s actions in connection with the Second Expansion Premises Tenant Improvements. Tenant shall ready the Existing Premises in a sufficiently clean condition to ensure that Landlord will be able to construct the Second Expansion Premises Tenant Improvements.


10.            Fourth Renewal Term .

(a)            Tenant has exercised the Third Renewal Option in the Lease and the provisions of Section 10(b) through (d) of the Second Amendment are no longer applicable. In particular, Landlord shall not be required to provide the carpet required pursuant to Section 10(c) of the Second Amendment.

(b)            Subject to the terms of this Section 10, Tenant shall have one (1) option (“ Fourth Renewal Option ”) to extend the Third Renewal Term for a consecutive period of sixty (60) months beyond the expiration of the Third Renewal Term (“ Fourth Renewal Term ”). The Fourth Renewal Term is personal to Tenant and may not be exercised by any sublessee or assignee of Tenant. The Fourth Renewal Option must be exercised, if at all, by written notice (“ Election Notice ”) from Tenant to Landlord given not more than three hundred sixty five (365) days and not less than one hundred eighty (180) days prior to the expiration of the Third Renewal Term. Any such Election Notice given by Tenant to Landlord shall be irrevocable. The Fourth Renewal Option and Tenant’s delivery of an Election Notice shall be voidable and of no force or effect at the election of Landlord, exercised in Landlord’s sole and absolute discretion, if (i) an Event of Default is occurring under the Lease, as amended hereby, either at the time Tenant exercises the Fourth Renewal Option or as of the commencement of the Fourth Renewal Term, or (ii) there is an event occurring which with the giving of notice or the passage of time, or both, would constitute an Event of Default under the Lease, as amended hereby, either at the time of Tenant’s delivery of the Election Notice or at any time from the date of delivery of such Election Notice through the time of commencement of the Fourth Renewal Term or (iii) if there has been any materially adverse change in the financial condition of the Tenant, as of the commencement of the Fourth Renewal Term. If Tenant fails to exercise the Fourth Renewal Option in a timely manner, as provided for above, then the Fourth Renewal Option shall be void and of no force and effect. The validly exercised Fourth Renewal Term shall be upon the same terms and conditions as the Lease, as amended, except that: (x) the annual Base Rent during the Fourth Renewal Term shall be equal to the Fair Market Rent (as defined in the Second Amendment) as of the commencement of the Fourth Renewal Term; and (y) Tenant shall have no further renewal options pursuant to this Section 10 or any provision of the Lease.

(c)            No later than thirty (30) days prior to the commencement of the Fourth Renewal Term, Tenant shall deposit with Landlord an amount, that when taken together with the Security Deposit, equals the monthly Base Rent due for the last month of the Fourth Renewal Term. Upon the commencement of the Fourth Renewal Term, the term “Security Deposit” shall automatically include such additional Security Deposit and such additional Security Deposit shall be held pursuant to the terms of Article 5 of the Lease. If Tenant fails to deposit such additional Security Deposit as and when required hereunder, Tenant’s exercise of the Fourth Renewal Option shall be null and void and the Third Renewal Term shall expire naturally.


11.            Right of First Offer .

(a)            Subject to the then-existing renewal or expansion options of the tenants in the ROFO Premises (as hereinafter defined) (“ Prior Rights ”), Tenant shall have the right, from time to time, to lease the vacant spaces on the second floor of the Building (“ ROFO Premises ”). Upon receipt by Landlord of written notice from a third party that it desires to lease the ROFO Premises (other than the tenants, if any, with Prior Rights), Landlord shall notify Tenant in writing (the “ ROFO Initial Notice ”). The ROFO Initial Notice shall: (i) describe the ROFO Premises that is vacant; and (ii) the terms on which Landlord would lease such ROFO Premises to Tenant (“ ROFO Terms ”). The ROFO Terms must be at the then-existing fair market value, as reasonably determined by Landlord for like kind properties, taking into account all factors that a landlord would typically take into account when leasing office premises.

(b)            Tenant shall have the right (“ ROFO ”), to be exercised within ten (10) calendar days of the ROFO Initial Notice (“ ROFO Notice ”), or waived if not so exercised, to provide written notice to Landlord to elect to lease the ROFO Premises on the ROFO Terms. If Tenant exercises the ROFO, Landlord and Tenant shall enter into an agreement documenting and incorporating the ROFO Terms (the “ ROFO Amendment ”) within ten (10) calendar days after the ROFO Notice.

(c)            If Tenant fails to deliver the ROFO Notice as and when required above or if Landlord and Tenant fail to enter into the ROFO Amendment, Landlord shall then be free to offer such space or any part thereof, and negotiate a lease therefor, on any terms and conditions, whether better or worse than those discussed with Tenant, with any other party and Tenant shall have no further right to lease the space which is the subject of the ROFO Initial Notice. The right to lease the space by Tenant hereunder shall apply only to the entire space described in the ROFO Initial Notice.

(d)            Notwithstanding anything to the contrary contained herein, the ROFO in this Section 11 is personal to Rimini Street, Inc., a Nevada corporation, shall be exercisable only by Rimini Street, Inc., a Nevada corporation, and may not be assigned or exercised by any assignee, sublessee or transferee of Rimini Street, Inc., a Nevada corporation’s interest in the Lease, or any successor in interest to Rimini Street, Inc., a Nevada corporation, nor may it be exercised if any portion of the Premises is sublet, or if Rimini Street, Inc., a Nevada corporation, is not occupying 100% of the Premises or if an Event of Default is occurring under the Lease, as amended hereby, either at the time Tenant exercises the ROFO or as of the commencement of the lease for the ROFO Premises or there is an event occurring which with the giving of notice or the passage of time, or both, would constitute an Event of Default under the Lease, as amended hereby, either at the time of Tenant’s exercise of the ROFO or at any time from the date of delivery of the ROFO Notice through the time of commencement of the lease for the ROFO Premises or if there has been any materially adverse change in the financial condition of the Tenant, as of the commencement of the Fourth Renewal Term.


12.            Parapet Signage . Section 11 of the Second Amendment is hereby deleted in its entirety and replaced with the following: “Subject to Article 27 of the Lease, as of the Third Renewal Term Commencement Date, Tenant shall have the right to one (1) parapet sign on the exterior of the Building in a location mutually agreeable to Landlord and Tenant above the front entry to the Building, and subject to the approval of the City of Pleasanton. Landlord and Tenant shall comply with all Applicable Laws and the CC&R’s in connection with the parapet signage. The fabrication, installation, maintenance, repair and removal, as well as Building exterior restoration, shall be at Tenant’s sole expense.”

13.            Parking . As of the Third Renewal Term Commencement Date, Tenant’s entitlement to parking spaces shall be based upon the rentable square feet in the Existing Premises and Second Expansion Premises, collectively.

14.            Security Deposit . Pursuant to the Original Lease, First Amendment and Second Amendment, Tenant has deposited a total of Twenty-Seven Thousand Two Hundred Thirty-One and 75/100 Dollars ($27,231.75) as the Security Deposit. Upon the Effective Date, Tenant shall deposit with Landlord the additional sum of Twenty Thousand Two Hundred Eighty-Five and 10/100 Dollars ($20,285.10), so that such sum, together with the original Security Deposit, shall equal the Base Rent due for the last month of Third Renewal Term and such original Security Deposit together with the additional amount shall be considered the “Security Deposit” and shall be subject to Article 5 of the Lease.

15.            As-Is . Subject to the Second Expansion Premises Tenant Improvements, Tenant agrees and acknowledges that the Existing Premises remain acceptable for Tenant’s use, and Tenant acknowledges that neither Landlord nor any broker or agent has made any representations or warranties in connection with the physical condition of the Existing Premises or the Second Expansion Premises or their fitness for Tenant’s use upon which Tenant has relied directly or indirectly for any purpose. Subject to completion of the Second Expansion Premises Tenant Improvements, Tenant accepts the Existing Premises in an “AS IS” condition.

16.            Tenant’s Representations and Warranties . Tenant hereby represents and warrants to Landlord that the Lease as amended hereby constitutes a valid and binding obligation of Tenant, enforceable against Tenant in accordance with their terms, and Tenant has no defenses, offsets or counterclaims with respect to its obligations thereunder. Tenant also represents and warrants that there is no existing default on the part of the Landlord or the Tenant in any of the terms and conditions of the Lease and no event has occurred which, with the passing of time or giving of notice or both, would constitute an event of default under the Lease by Landlord or Tenant.

17.            Express Changes Only . Except as set forth in this Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect and shall be incorporated herein.

18.            Brokers . Tenant warrants that it has had no dealings with any real estate broker or agent, other than Colliers International, acting in its dual capacity on behalf of Landlord and Tenant. Landlord shall pay Colliers International pursuant to a separate written agreement. If Tenant has dealt with any other person or real estate broker with respect to leasing or renting space in the Building, Tenant shall be solely responsible for the payment of any fee due said person or firm and Tenant shall hold Landlord free and harmless against any liability in respect thereto, including attorneys’ fees and costs.


19.            Counterparts . This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original and all such counterparts together, shall constitute one and the same instrument. The execution of facsimiles of this Amendment shall be binding on the parties hereto.

20.            Entire Agreement . There are and were no oral or written representations, warranties, understandings, stipulations, agreements, or promises made by either party, or by any agent, employee, or other representative of either party, pertaining to the subject matter of this Amendment which have not been incorporated into this Amendment. This Amendment shall not be modified, changed, terminated, amended, superseded, waived, or extended except by a written instrument executed by the parties hereto.

[SIGNATURE PAGE ATTACHED]


LANDLORD:

PARK LAKE APARTMENTS, L.P.,
a California limited partnership

By:
/s/ Carlo Zocchi
 
Name:
Carlo Zocchi
 
Its:
General Partner
 

TENANT:

RIMINI STREET, INC.,
a Nevada corporation

By:
/s/ Seth Ravin
 
Name:
Seth Ravin
 
Its:
CEO & President
 


EXHIBIT A

SECOND EXPANSION PREMISES FLOOR PLAN

[see attached]


EXHIBIT B

BID SPACE PLAN

[See attached]



Exhibit 10.45
 
FOURTH AMENDMENT TO OFFICE BUILDING LEASE

This FOURTH AMENDMENT TO OFFICE BUILDING LEASE (“ Amendment ”) is made and entered into as of January 18, 2011, by and between PARK LAKE APARTMENTS, L.P ., a California limited partnership (“ Landlord ”) and RIMINI STREET, INC ., a Nevada corporation (“ Tenant ”).

RECITALS:

A.            WHEREAS, Landlord’s predecessor-in-interest and Tenant entered into that certain Office Building Lease dated as of September 2006 (“ Original Lease ”), pursuant to which Landlord leased to Tenant and Tenant leased from Landlord Suite 246, consisting of approximately 1,794 rentable square feet and located on the second floor (“ Original Premises ”) of the building located at 6601 Koll Center Parkway, Pleasanton, California (“ Building ”);

B.            WHEREAS, the Original Lease was amended by that certain First Amendment to Office Building Lease dated as of October 2007 (“ First Amendment ”) pursuant to which, among other things, Landlord leased to Tenant, Suite 350, consisting of approximately 5,766 rentable square feet and located on the third floor (“ Replacement Premises ”) of the Building, in lieu of the Original Premises;

C.            WHEREAS, the Original Lease was further amended by that certain Second Amendment to Office Building Lease dated as of May 2009 (“ Second Amendment ”, together with the First Amendment and Original Lease, as amended, is referred to herein as the “ Lease ”) pursuant to which, among other things: (i) the Renewal Term was extended by the Second Renewal Term; and (ii) Landlord additionally leased to Tenant and Tenant additionally leased from Landlord approximately 6,337 rentable square feet of space on the third floor of the Building (“ Expansion Premises ”, together with the Replacement Premises is referred to herein as the “ Existing Premises ”) as of the Second Renewal Term Commencement Date;

D.            WHEREAS, the Original Lease was further amended by that certain Third Amendment to Office Building Lease dated as of October 2009, whereby, among other things: (i) the Renewal Term was extended by the Third Renewal Term; and (ii) Landlord additionally leased to Tenant and Tenant additionally leased from Landlord approximately 10,852 rentable square feet of space adjacent to the Existing Premises of the Building (“ Second Expansion Premises ”) as of the Third Renewal Term Commencement Date.

E.            WHEREAS, the Third Renewal Term Commencement Date did not occur on the date anticipated in the Third Amendment and the Base Rent tables in the Third Amendment contained scriveners errors and the parties desire to memorialize such matters and correct such errors, as more particularly set forth herein.


NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.            Recitals . The foregoing recitals are incorporated herein by this reference.

2.            Defined Terms . Capitalized terms not otherwise defined herein shall have the meaning given such terms in the Lease.

3.            Effective Date . The effective date of this Amendment shall be upon the mutual execution and delivery of this Amendment by Landlord and Tenant (“ Effective Date ”).

4.            Third Renewal Term . The parties agree that the Third Renewal Commencement Date was December 1, 2009. As such, the Third Renewal Term expires on November 30, 2014.

5.            Second Expansion Premises and Existing Premises Base Rent .

(a)            As of the Third Renewal Term Commencement Date, the monthly Base Rent for the Second Expansion Premises shall be as follows:

Period of the Third Renewal Term
Monthly Rental
Rate Per Rentable
Square Foot
Monthly Base Rent for the
Second Expansion
Premises
December 1, 2009 – January 31, 2010
$0.00
$0.00
February 1, 2010 – April 30, 2010
$0.96
$10,417.92
May 1, 2010 – November 30, 2010
$1.92
$20,835.84
December 1, 2010 – November 30, 2011
$1.97
$21,378.44
December 1, 2011 – November 30, 2012
$2.02
$21,921.04
December 1, 2012 – November 30, 2014
$2.07
$22,463.64

(b)            The monthly Base Rent for the Existing Premises shall be the same as is set forth in the Second Amendment, provided, however, commencing on September 1, 2013 and thereafter through the end of the Third Renewal Term, the monthly Base Rent for the Existing Premises shall be as follows:

Period of the Third Renewal Term
Monthly Rental
Rate Per Rentable
Square Foot
Monthly Base Rent for
the Existing Premises
September 1, 2013 – November 30, 2014
$2.07
$25,053.21

Sections 6(a) and (b) of the Third Amendment are superseded in their entirety by Sections 5(a) and (b) above.


6.            Express Changes Only . Except as set forth in this Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect and shall be incorporated herein.

7.            Brokers . Tenant warrants that it has had no dealings with any real estate broker or agent, other than Colliers International, acting in its dual capacity on behalf of Landlord and Tenant. Landlord shall pay Colliers International pursuant to a separate written agreement. If Tenant has dealt with any other person or real estate broker with respect to leasing or renting space in the Building, Tenant shall be solely responsible for the payment of any fee due said person or firm and Tenant shall hold Landlord free and harmless against any liability in respect thereto, including attorneys’ fees and costs.

8.            Counterparts . This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original and all such counterparts together, shall constitute one and the same instrument. The execution of facsimiles of this Amendment shall be binding on the parties hereto.

9.            Entire Agreement . There are and were no oral or written representations, warranties, understandings, stipulations, agreements, or promises made by either party, or by any agent, employee, or other representative of either party, pertaining to the subject matter of this Amendment which have not been incorporated into this Amendment. This Amendment shall not be modified, changed, terminated, amended, superseded, waived, or extended except by a written instrument executed by the parties hereto.

[SIGNATURE PAGE ATTACHED]


LANDLORD :

PARK LAKE APARTMENTS, L.P.,
a California limited partnership

By:
/s/ Carlo Zocchi
 
Name:
Carlo Zocchi
 
Its:
General Partner
 

TENANT :

RIMINI STREET, INC.,
a Nevada corporation

By:
/s/ Thomas Shay
 
Name:
Thomas Shay
 
Its:
E.V.P. Operations
 




Exhibit 10.46

FIFTH AMENDMENT TO OFFICE BUILDING LEASE

This FIFTH AMENDMENT TO OFFICE BUILDING LEASE (“ Amendment ”) is made and entered into as of April 19, 2012, by and between PARK LAKE APARTMENTS, L.P ., a California limited partnership (“ Landlord ”) and RIMINI STREET, INC ., a Nevada corporation (“ Tenant ”).

R E C I T A L S:

A.            WHEREAS, Landlord’s predecessor-in-interest and Tenant entered into that certain Office Building Lease dated as of September 2006 (“ Original Lease ”), pursuant to which Landlord leased to Tenant and Tenant leased from Landlord Suite 246, consisting of approximately 1,794 rentable square feet and located on the second floor (“ Original Premises ”) of the building located at 6601 Koll Center Parkway, Pleasanton, California (“ Building ”);

B.            WHEREAS, the Original Lease was amended by that certain First Amendment to Office Building Lease dated as of October 2007 (“ First Amendment ”) pursuant to which, among other things, Landlord leased to Tenant, Suite 350, consisting of approximately 5,766 rentable square feet and located on the third floor (“ Replacement Premises ”) of the Building, in lieu of the Original Premises;

C.            WHEREAS, the Original Lease was further amended by that certain Second Amendment to Office Building Lease dated as of May 2009 (“ Second Amendment ”, together with the First Amendment and Original Lease, as amended, is referred to herein as the “ Lease ”) pursuant to which, among other things: (i) the Renewal Term was extended by the Second Renewal Term; and (ii) Landlord additionally leased to Tenant and Tenant additionally leased from Landlord approximately 6,337 rentable square feet of space on the third floor of the Building (“ Expansion Premises ”, together with the Replacement Premises is referred to herein as the “ Existing Premises ”) as of the Second Renewal Term Commencement Date;

D.            WHEREAS, the Original Lease was further amended by that certain Third Amendment to Office Building Lease dated as of October 2009, whereby, among other things: (i) the Renewal Term was extended by the Third Renewal Term; and (ii) Landlord additionally leased to Tenant and Tenant additionally leased from Landlord approximately 10,852 rentable square feet of space adjacent to the Existing Premises of the Building (“ Second Expansion Premises ”) as of the Third Renewal Term Commencement Date.

E.            WHEREAS, the Original Lease was further amended by that certain Fourth Amendment to Office Building Lease dated as of January 18, 2011, whereby, among other things: (i) the Third Renewal Term Commencement Date was amended to reflect the actual Commencement Date of the Third Amendment and: (ii) the Base Rent Tables in the Third Amendment were amended to reflect actual dates as well as corrections of scriveners errors in the Third Amendment.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.            Recitals .  The foregoing recitals are incorporated herein by this reference.

2.            Defined Terms .  Capitalized terms not otherwise defined herein shall have the meaning given such terms in the Lease.

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3.            Effective Date .  The effective date of this Amendment shall be upon the mutual execution and delivery of this Amendment by Landlord and Tenant (“ Effective Date ”).

4.            Extension of Third Renewal Term .  Pursuant to the Fourth Amendment, the Third Renewal Term expires on November 30, 2014.  As of the Effective Date, the term of the Lease for the Existing Premises and the Second Expansion Premises shall be for sixty (60) months (“ Fourth Renewal Term ”), commencing on July 1, 2012 (“ Fourth Renewal Term Commencement Date ”) and expiring on June 30, 2017.

5.            Third Expansion Premises .

(a)            In consideration of the rents, terms, provisions and covenants of this Amendment and the Lease, Landlord hereby leases unto Tenant and Tenant hereby rents and accepts from Landlord the Third Expansion Premises.  The Third Expansion Premises is more particularly described on Exhibit A attached hereto.  The Third Expansion Premises is located on the ground floor of 6601 Koll Center Parkway, Suite 100.

(b)            Tenant covenants, as a material part of the consideration for the Lease, as amended hereby, to keep and perform each and all of said terms, covenants and conditions for which Tenant is liable and that this Amendment is made upon the condition of such performance.  On and after the Fourth Renewal Term Commencement Date, all of the terms and provisions of the Lease, as amended hereby, shall apply to both the Existing Premises, the Second Expansion Premises and the Third Expansion Premises.  From and after the Fourth Renewal Term Commencement Date, each and every reference in the Lease and in this Amendment to “ Premises ” shall be and mean the Existing Premises, the Second Expansion Premises and the Third Expansion Premises, collectively.  The Existing Premises and Second Expansion Premises consist of a total of approximately 22,955 rentable square feet.  The Third Expansion Premises shall be known as Suite 100 and consists of approximately 5,468 rentable square feet.

6.            Existing Premises and Second Expansion Premises Base Rent .

(a)            As of the Fourth Renewal Term Commencement Date, the monthly Base Rent for the Existing Premises and the Second Expansion Premises shall be as follows:

Period of the Fourth Renewal Term
Monthly Rental
Rate Per Rentable
Square Foot
Monthly Base Rent for the
Existing Premises and the
Second Expansion Premises
July 1, 2012 – August 31, 2012
$0.00
$0.00
September 1, 2012 – June 30, 2013
$2.00
$45,910.00
July 1, 2013 – June 30, 2014
$2.05
$47,057.75
July 1, 2014 – June 30, 2015
$2.10
$48,205.50
July 1, 2015 – June 30, 2016
$2.15
$49,353.25
July 1, 2016 – June 30, 2017
$2.20
$50,501.00

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(b)            As of the Fourth Renewal Term Commencement Date, the monthly Base Rent for the Third Expansion Premises shall be as follows:

Period of the Fourth Renewal Term
Monthly Rental
Rate Per Rentable
Square Foot
Monthly Base Rent for the
Third Expansion Premises
July 1, 2012 – December 31, 2012
$0.00
$0.00
January 1, 2013 – June 30, 2013
$1.864
$10,192.35
July 1, 2013 – June 30, 2014
$1.924
$10,520.43
July 1, 2014 – June 30, 2015
$1.974
$10,793.83
July 1, 2015 – June 30, 2016
$2.024
$11,067.23
July 1, 2016 – June 30, 2017
$2.074
$11,340.63

7.            Tenant’s Percentage Share .  As of the Fourth Renewal Term Commencement Date, Tenant’s Percentage Share shall be adjusted upwards to 40.84%, to take into account the leasing of the Third Expansion Premises to Tenant.

8.            Base Year .  As of the Fourth Renewal Term Commencement Date, Tenant’s Base Year for the Existing Premises and the Second Expansion Premises shall be adjusted to 2012.  Tenant’s Base Year for the Third Expansion Premises shall be 2012.

9.            Third Expansion Premises Tenant Improvements .

(a)            Following the mutual execution and delivery of this Amendment and prior to the Fourth Renewal Term Commencement Date, Landlord shall construct and install certain improvements within the Third Expansion Premises (collectively herein, the “ Third Expansion Premises Tenant Improvements ”), which shall be constructed in accordance with the Space Plan (“ Space Plan ”), prepared by Hopkins & Wall, dated February 27, 2012, attached hereto as Exhibit B , to also include the following specifications and improvements:

(i)
Carpet specification is J&J Tussah broadloom carpet over pad, which is installed in the Second Expansion Premises ;

(ii)
Supply and install four (4) receptacles above the grid at reception, secondary corridor exit and above columns adjacent to cubicles in open area;

(iii)
Install floor monuments in both conference rooms;

(iv)
If necessary, supply and install conduit from the first (1st) floor electrical room over the lobby into Tenant’s Premises;

(v)
Provide touch-up of existing doors;

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(vi)
Inclusive in the “turnkey” improvements are removal and replacement of all acoustical ceiling tiles using building standard, 2’ x 4’, “Armstrong 2767 Second Look”, and the repair and/or replacement of existing Leveler window blinds where necessary; and

(vii)
Supply and install two (2), 6’ x 6’, Da-Lite Advantage Electoral, recessed projection screens.

The Third Expansion Premises Tenant Improvements shall be constructed by Landlord at Landlord’s expense.  The additional costs of construction resulting from improvements requested by Tenant which are not set forth in the Space Plan or in Section 9(a) shall be borne by Tenant.  In the event of any Tenant’s Delay (as defined in this Fifth Amendment), Tenant shall also be responsible for all increased costs of construction of the “ Third Expansion Premises Tenant Improvements ” incurred by Landlord as a result of such Tenant’s Delay (such costs referred to collectively herein as “ Third Expansion Premises Change Costs ”).

(b)            Landlord will also be responsible to provide a one-time touch-up of paint, where necessary, and at Tenant’s discretion, in the Existing Premises and the Second Expansion Premises during the period beginning December 1, 2014 and ending April 30, 2015 (“ Paint Refurbishment in the Existing Premises and the Second Expansion Premises ”).

(c)            For the purposes herein, the term “ Tenant’s Delay ” shall mean any delay in the construction of the Third Expansion Premises Tenant Improvements resulting from: (i) Tenant’s change(s) in the Space Plan or specifications and additional improvements in Section 9(a), provided that Tenant shall not make changes without the prior written consent of Landlord, which consent shall not be unreasonably withheld unless such change either incorporates items which are not Building standard improvements; or (ii) Tenant’s request for materials, finishes or installations which require a longer time than Building standard improvements to obtain, install or complete; or (iii) Tenant’s failure to comply with Landlord’s contractor’s or subcontractor’s schedule; or (iv) an Event of Default by Tenant under the Lease or the existence of any event or condition which, with the passage of time or the giving of notice or both would constitute such an Event of Default; or (v) delays caused by Tenant in construction; or (vi) any work performed in, on or about the Third Expansion Premises by Tenant or any Tenant Parties concurrently with the performance by Landlord of the Third Expansion Premises Tenant Improvements.  Tenant acknowledges that the length and/or impact of any Third Expansion Premises Tenant’s Delay may exceed the duration or scope of such event or conduct due to the necessity of rescheduling work or other causes.

(d)            Tenant shall have early access to the Third Expansion Premises, with all accessing parties having appropriate insurance in place with Property Management, two (2) weeks prior to the Fourth Renewal Term Commencement Date for the purpose of installing furniture, fixtures and voice and data systems, provided it does not interfere with Landlord’s ability to complete the Tenant Improvements.

(e)            Tenant shall be responsible for the cost of expanding its card key access system to the Third Expansion Premises.

10.            Replacement Premises Carpet Replacement .  The designated period of time for Landlord’s installation of new carpet throughout the Replacement Premises, as defined in Section 9(b) of the Third Amendment, is extended to January 31, 2013.

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11.            Fifth Renewal Term .

(a)            The Fourth Renewal Option in the Lease and the provisions of Section 10(b) and (c) of the Third Amendment are no longer applicable.

(b)            Subject to the terms of this Section 10, Tenant shall have one (1) option (“ Fifth Renewal Option ”) to extend the Fourth Renewal Term of either or both the Existing Premises and the Second Expansion Premises and/or the Third Expansion Premises for a consecutive period of sixty (60) months beyond the expiration of the Fourth Renewal Term (“ Fifth Renewal Term ”).  The Fifth Renewal Term is personal to Tenant and may not be exercised by any sublessee or assignee of Tenant.  The Fifth Renewal Option must be exercised, if at all, by written notice (“ Election Notice ”) from Tenant to Landlord given not more than three hundred sixty five (365) days and not less than two hundred and seventy (270) days prior to the expiration of the Fourth Renewal Term.  Any such Election Notice given by Tenant to Landlord shall be irrevocable.  The Fifth Renewal Option and Tenant’s delivery of an Election Notice shall be voidable and of no force or effect at the election of Landlord, exercised in Landlord’s sole and absolute discretion, if (i) an Event of Default is occurring under the Lease, as amended hereby, either at the time Tenant exercises the Fifth Renewal Option or as of the commencement of the Fifth Renewal Term, or (ii) there is an event occurring which with the giving of notice or the passage of time, or both, would constitute an Event of Default under the Lease, as amended hereby, either at the time of Tenant’s delivery of the Election Notice or at any time from the date of delivery of such Election Notice through the time of commencement of the Fifth Renewal Term or (iii) if there has been any materially adverse change in the financial condition of the Tenant, as of the commencement of the Fifth Renewal Term.  If Tenant fails to exercise the Fifth Renewal Option in a timely manner, as provided for above, then the Fifth Renewal Option shall be void and of no force and effect.  The validly exercised Fifth Renewal Term shall be upon the same terms and conditions as the Lease, as amended, except that: (x) the annual Base Rent during the Fifth Renewal Term shall be equal to the Fair Market Rent (as defined in the Second Amendment) as of the commencement of the Fifth Renewal Term; and (y) Tenant shall have no further renewal options pursuant to this Section 10 or any provision of the Lease.

(c)            No later than thirty (30) days prior to the commencement of the Fifth Renewal Term, Tenant shall deposit with Landlord an amount, that when taken together with the Security Deposit, equals the monthly Base Rent due for the last month of the Fifth Renewal Term.  Upon the commencement of the Fifth Renewal Term, the term “Security Deposit” shall automatically include such additional Security Deposit and such additional Security Deposit shall be held pursuant to the terms of Article 5 of the Lease.

12.            Security Deposit for the Existing Premises and the Second Expansion Premises .  Pursuant to the Original Lease, First Amendment, Second Amendment and Third Amendment Tenant has deposited a total of Forty Seven Thousand, Five Hundred and Sixteen and 85/100 Dollars ($47,516.85).  Upon execution of this Fifth Amendment to Office Building Lease, Tenant shall deposit with Landlord the additional sum of Two Thousand, Nine Hundred Eight-Four and 15/100 Dollars ($2,984.15), so that such sum, together with the original Security Deposit, shall equal the Base Rent due for the last month of the Fourth Renewal Term and such original Security Deposit together with the additional amount shall be considered the “Security Deposit” and shall be subject to Article 5 of the Original Lease.

13.            Security Deposit for the Third Expansion Premises .  Tenant shall deposit with Landlord as Security Deposit for the Third Expansion Premises and amount equal to Eleven Thousand, Three Hundred and Forty and 63/100 Dollars ($11,340.63).

14.            Express Changes Only .  Except as set forth in this Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect and shall be incorporated herein.

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15.            Brokers .  Tenant warrants that it has had no dealings with any real estate broker or agent, other than Colliers International, acting in its dual capacity on behalf of Landlord and Tenant.  Landlord shall pay Colliers International pursuant to a separate written agreement.  If Tenant has dealt with any other person or real estate broker with respect to leasing or renting space in the Building, Tenant shall be solely responsible for the payment of any fee due said person or firm and Tenant shall hold Landlord free and harmless against any liability in respect thereto, including attorneys' fees and costs.

16.            Counterparts .  This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original and all such counterparts together, shall constitute one and the same instrument.  The execution of facsimiles of this Amendment shall be binding on the parties hereto.

17.            Entire Agreement .  There are and were no oral or written representations, warranties, understandings, stipulations, agreements, or promises made by either party, or by any agent, employee, or other representative of either party, pertaining to the subject matter of this Amendment which have not been incorporated into this Amendment.  This Amendment shall not be modified, changed, terminated, amended, superseded, waived, or extended except by a written instrument executed by the parties hereto.

LANDLORD :

PARK LAKE APARTMENTS, L.P.,
a California limited partnership

By:
/s/ Carl Zocchi
 
Name:
Carl Zocchi
 
Its:
General Partner
 

TENANT :

RIMINI STREET, INC.,
 a Nevada corporation

By:
/s/ Seth A. Ravin
 
Name:
Seth A. Ravin
 
Its:
CEO
 
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Exhibit 10.47

SIXTH AMENDMENT TO OFFICE BUILDING LEASE

This SIXTH AMENDMENT TO OFFICE BUILDING LEASE (“ Amendment ”) is made and entered into as of September 16, 2013, by and between WEST STATE CO, LP , a California limited partnership as predecessor-in-interest to PARK LAKE APARTMENTS, L.P., a California limited partnership (“ Landlord ”) and RIMINI STREET, INC. , a Nevada corporation (“ Tenant ”).

RECITALS:

A.            WHEREAS, Landlord’s predecessor-in-interest and Tenant entered into that certain Office Building Lease dated as of September 2006 (“ Original Lease ”), pursuant to which Landlord leased to Tenant and Tenant leased from Landlord Suite 246, consisting of approximately 1,794 rentable square feet and located on the second floor (“ Original Premises ”) of the building located at 6601 Koll Center Parkway, Pleasanton, California (“ Building ”);

B.            WHEREAS, the Original Lease was amended by that certain First Amendment to Office Building Lease dated as of October 2007 (“ First Amendment ”) pursuant to which, among other things, Landlord leased to Tenant, Suite 350, consisting of approximately 5,766 rentable square feet and located on the third floor (“ Replacement Premises ”) of the Building, in lieu of the Original Premises;

C.            WHEREAS, the Original Lease was further amended by that certain Second Amendment to Office Building Lease dated as of May 2009 (“ Second Amendment ”, together with the First Amendment and Original Lease, as amended, is referred to herein as the “ Lease ”) pursuant to which, among other things: (i) the Renewal Term was extended by the Second Renewal Term; and (ii) Landlord additionally leased to Tenant and Tenant additionally leased from Landlord approximately 6,337 rentable square feet of space on the third floor of the Building (“ Expansion Premises ”, together with the Replacement Premises is referred to herein as the “ Existing Premises ”) as of the Second Renewal Term Commencement Date;

D.            WHEREAS, the Original Lease was further amended by that certain Third Amendment to Office Building Lease dated as of October 2009, whereby, among other things: (i) the Renewal Term was extended by the Third Renewal Term; and (ii) Landlord additionally leased to Tenant and Tenant additionally leased from Landlord approximately 10,852 rentable square feet of space adjacent to the Existing Premises of the Building (“ Second Expansion Premises ”) as of the Third Renewal Term Commencement Date.

E.            WHEREAS, the Original Lease was further amended by that certain Fourth Amendment to Office Building Lease dated as of January 18, 2011, whereby, among other things: (i) the Third Renewal Term Commencement Date was amended to reflect the actual Commencement Date of the Third Amendment and: (ii) the Base Rent Tables in the Third Amendment were amended to reflect actual dates as well as corrections of scriveners errors in the Third Amendment.

F.            WHEREAS, the Original Lease was further amended by that certain Fifth Amendment to Office Building Lease dated as of April, 2012, whereby, among other things: (i) Tenant Leased the “ Third Expansion Premises ”, also known as “Suite 100” (ii) Tenant extended their Lease term in the Existing Premises and Second Expansion Premises (the Fourth Renewal Term).

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.            Recitals .  The foregoing recitals are incorporated herein by this reference.

2.            Defined Terms .  Capitalized terms not otherwise defined herein shall have the meaning given such terms in the Lease.

3.            Effective Date .  The effective date of this Amendment shall be upon the mutual execution and delivery of this Amendment by Landlord and Tenant (“ Effective Date ”).

4.            Extension of Fourth Renewal Term . Pursuant to the Fifth Amendment, the Fourth Renewal Term expires on June 30, 2017.  As of the Effective Date, the term of the Lease for the Existing Premises, the Second Expansion Premises (from hereafter known as “ Suite 300 Premises ”) and the Third Expansion Premises (from hereafter known as “ Suite 100 Premises ”) shall be for sixty-seven (67) months (“ Fifth Renewal Term ”), commencing on December 1, 2013 (“ Fifth Renewal Term Commencement Date ”) and expiring on June 30, 2019.

5.            Fourth Expansion Premises .

(a)            In consideration of the rents, terms, provisions and covenants of this Amendment and the Lease, Landlord hereby leases unto Tenant and Tenant hereby rents and accepts from Landlord the “ Fourth Expansion Premises ” which is comprised of four second floor suites in the building: Suites 245, 248, 240, and 246.

(i)            Suites 245 and 248 will be combined to create the new Suite 200 Premises (from hereafter known as “ Suite 200 Premises ”) and consists of approximately 7,180 rentable square feet.  The Suite 200 Premises is more particularly described on Exhibit A attached hereto.  As of the Effective Date, the term of the Lease for the Suite 200 Premises shall be for sixty-seven (67) months (“ Fourth Expansion Premises Term ”) commencing on December 1, 2013 (“ Fourth Expansion Premises Commencement Date ”) and expiring on June 30, 2019.

(ii)            Suite 246 (from hereafter known as “ Suite 246 Premises ”) is comprised of 1,794 rentable square feet and is more particularly described on Exhibit A attached hereto.  As of the Effective Date, the term of the Lease for the Suite 246 Premises shall be for sixty-seven (67) months commencing on December 1, 2013 and expiring on June 30, 2019.

(iii)            Suite 240 (from hereafter known as “ Suite 240 Premises ”) is comprised of 2,107 rentable square feet and is more particularly described on Exhibit A attached hereto. As of the Effective Date, the term of the Lease for the Suite 240 Premises shall be for either (I) sixty-five (65) months commencing on February 1, 2014 and expiring on June 30, 2019 or (II) fifty-three (53) months commencing on February 1, 2015 and expiring on June 30, 2019.  In either event the term shall be defined as the “ Fourth Expansion Premises Term - Suite 240 Premises ” and the commencement date shall be defined as the “ Fourth Expansion Premises Commencement Date - Suite 240 Premises ”.
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The Suite 240 Premises and the Suite 246 Premises will be combined at a to be determined date with the Suite 200 Premises and this plan is more particularly described on Exhibit A1 attached hereto and thereafter will be known as Suite 200.

(b)            Tenant covenants, as a material part of the consideration for the Lease, as amended hereby, to keep and perform each and all of said terms, covenants and conditions for which Tenant is liable and that this Amendment is made upon the condition of such performance.  On and after the Fifth Renewal Term Commencement Date, all of the terms and provisions of the Lease, as amended hereby, shall apply to the Suite 300 Premises, the Suite 100 Premises, the Suite 200 Premises, the Suite 246 Premises and the Suite 240 Premises.  From and after the Fifth Renewal Term Commencement Date, each and every reference in the Lease and in this Amendment to “Premises” shall be and mean the Suite 300 Premises, the Suite 100 Premises the Suite 200 Premises the Suite 246 Premises and the Suite 240 Premises, collectively.  The Premises consists of a total of approximately 39,504 rentable square feet.

6.            Base Rent for the Suite 300 Premises, the Suite 100 Premises, the Suite 200 Premises, the Suite 246 Premises and the Suite 240 Premises :

(a)            As of the Fifth Renewal Term Commencement Date, the monthly Base Rent for the Suite 300 Premises (approximately 22,955 rentable square feet) shall be as follows:

Period of the Fifth Renewal Term
Monthly Rental Rate Per Rentable Square Foot
Monthly Base Rent for the Existing Premises and the Second Expansion Premises
December 1, 2013 – December 31, 2013
$0.00
$0.00
January 1, 2014 – June 30, 2014
$2.05
$47,057.75
July 1, 2014 – June 30, 2015
$2.10
$48,205.50
July 1, 2015 – June 30, 2016
$2.15
$49,353.25
July 1, 2016 – June 30, 2017
$2.20
$50,501.00
July 1, 2017 – June 30, 2018
$2.30
$52,796.50
July 1, 2018 – June 30, 2019
$2.40
$55,092.00

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(b)            As of the Fifth Renewal Term Commencement Date, the monthly Base Rent for the Suite 100 Premises (approximately 5,468 rentable square feet) shall be as follows:

Period of the Fifth Renewal Term
Monthly Rental Rate Per Rentable Square Foot
Monthly Base Rent for the Third Expansion Premises
December 1, 2013 – June 30, 2014
$1.276
$6,975.73
July 1, 2014 – June 30, 2015
$2.10
$11,482.80
July 1, 2015 – June 30, 2016
$2.15
$11,756.20
July 1, 2016 – June 30, 2017
$2.20
$12,029.60
July 1, 2017 – June 30, 2018
$2.30
$12,576.40
July 1, 2018 – June 30, 2019
$2.40
$13,123.20

(c)            As of the Fifth Renewal Term Commencement Date, the monthly Base Rent for the Suite 200 Premises (approximately 7,180 rentable square feet) shall be as follows:

Period of the Fifth Renewal Term
Monthly Rental Rate Per Rentable Square Foot
Monthly Base Rent for the Third Expansion Premises
December 1, 2013 – March 31, 2014
$0.00
$0.00
April 1, 2014 – June 30, 2014
$2.10
$15,078.00
July 1, 2014 – June 30, 2015
$2.15
$15,437.00
July 1, 2015 – June 30, 2016
$2.20
$15,796.00
July 1, 2016 – June 30, 2017
$2.25
$16,155.00
July 1, 2017 – June 30, 2018
$2.30
$16,514.00
July 1, 2018 – June 30, 2019
$2.35
$16,873.00

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(d)            As of the Fourth Expansion Premises Commencement Date, the monthly Base Rent for the Suite 246 Premises (approximately 1,794 rentable square feet) shall be as follows:

Period of the Fifth Renewal Term
Monthly Rental Rate Per Rentable Square Foot
Monthly Base Rent for the Third Expansion Premises
December 1, 2013 – March 31, 2014
$0.00
$0.00
April 1, 2014 – June 30, 2014
$2.10
$3,767.40
July I, 2014 – June 30, 2015
$2.15
$3,857.10
July 1, 2015 – June 30, 2016
$2.20
$3,946.80
July 1, 2016 – June 30, 2017
$2.25
$4,036.50
July 1, 2017 – June 30, 2018
$2.30
$4,126.20
July 1, 2018 – June 30, 2019
$2.35
$4,215.90

(e)            As of the Fourth Expansion Premises Commencement Date-Suite 240 Premises, the monthly Base Rent for the Suite 240 Premises (approximately 2,107 rentable square feet) shall be as follows depending on that date the Landlord is able to deliver the Suite 240 Premises:

If (I) Lease Commencement Date is February 1, 2014:

Period of the Fifth Renewal Term
Monthly Rental Rate Per Rentable Square Foot
Monthly Base Rent for the Third Expansion Premises
February 1, 2014 – March 31, 2014
$0.00
$0.00
April 1, 2014 –June 30, 2014
$0.80
$1,685.60
July 1, 2014 – June 30, 2015
$2.15
$4,530.05
July 1, 2015 – June 30, 2016
$2.20
$4,635.40
July 1, 2016 – June 30, 2017
$2.25
$4,740.75
July 1, 2017 – June 30, 2018
$2.30
$4,846.10
July 1, 2018 – June 30, 2019
$2.35
$4,951.45

In the event of Landlord delay in the Lease Commencement Date, the above rent schedule will be adjusted in the Commencement Date Memorandum to reflect an underlying effective rate on the entire lease term for the Suite 246 Premises equal to $2.11 Full Service.  In no event will the Lease Expiration Date, June 30, 2019, be extended due to delay.

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Or (II) Lease Commencement Date is February 1, 2015:

Period of the Fifth Renewal Term
Monthly Rental Rate Per Rentable Square Foot
Monthly Base Rent for the Third Expansion Premises
February 1, 2015 – June 30, 2015
$2.15
$4,530.05
July 1, 2015 – June 30, 2016
$2.20
$4,635.40
July 1, 2016 – June 30, 2017
$2.25
$4,740.75
July 1, 2017 – June 30, 2018
$2.30
$4,846.10
July 1, 2018 – June 30, 2019
$2.35
$4,951.45

7.            Tenant’s Percentage Share .  As of the Fifth Renewal Term Commencement Date, Tenant’s Percentage Share shall be adjusted upwards to 53.74 %, to take into account the leasing of the Suite 200 Premises and the Suite 246 Premises.  At that date Tenant leases the Suite 240 Premises, Tenant’s Percentage Share shall be adjusted upwards to 56.77%.

8.            Base Year .  As of the Fifth Renewal Term Commencement Date, Tenant’s Base Year for the Suite 300 Premises and the Suite 100 Premises shall be adjusted to 2014.

Tenant’s Base Year for the Suite 200 Premises, the Suite 246 Premises, and the Suite 240 Premises shall be 2014.

9.            Tenant Improvements: Suite 300 Premises .  The Landlord will allow Tenant, at Tenant’s sole costs and expense, to create a new “Video Studio” by reconfiguring existing small break room and former IT room, attached hereto as Exhibit B1 .  Additionally, the Landlord will allow Tenant, at Tenant’s sole cost and expense, to reconfigure Tenant’s existing conference room into two separate conference rooms, attached hereto as Exhibit B2 .  Tenant Improvements shall be performed by licensed contractors selected by Tenant and approved by Landlord.  Tenant’s contractors shall provide evidence of insurance required by Landlord.  Landlord will provide Tenant an allowance of $8,000.00 to be applied to the costs of said work.

10.            Tenant Improvements: Fourth Expansion Premises .

(a)            Following the mutual execution and delivery of this Amendment and prior to the Fourth Expansion Premises Commencement Dates, Landlord shall construct and install certain improvements within the Fourth Expansion Premises which shall be constructed in accordance with the Space Plan prepared by Hopkins & Wall, dated August 27, 2013, attached hereto as Exhibit B3 , to also include the following specifications and improvements:

(i)            Removal and replacement of all existing acoustical ceiling tiles in the Fourth Expansion Premises using building standard 2′ x 4′ “Armstrong 2767 Second Look”.

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(ii)            Repair and/or replacement of existing levolor window blinds where necessary.

(iii)            The Landlord will give Tenant an allowance equal to twenty dollars ($20.00) per square yard for Tenant’s carpet, base and pad.

(iv)            The Landlord will provide building standard painted accent walls provided accent wall is fully painted.

Incremental costs for above standard improvements shall be paid for by Tenant, at Tenant’s election, in cash or amortized into the Base Rent on a straight-line basis over the paid months of the Fourth Expansion Premises Term.  Above standard improvements include, but are not limited to, any Tenant desired carpet upgrade above building standard carpet, floor monuments for conference rooms, any changes in color of building standard electrical, data and switch cover plates and any recessed projection screens.

In the event of any Tenant’s Delay (as defined below), Tenant shall be responsible for all increased costs of construction incurred by Landlord as a result of such Tenant’s Delay.

(b)            For the purposes herein, the term “ Tenant’s Delay ” shall mean any delay in the construction of Tenant Improvement in the Fourth Expansion Premises resulting from: (i) Tenant’s change(s) in the Space Plan(s) or specifications and additional improvements other than those of Exhibit B3 provided that Tenant shall not make changes without the prior written consent of Landlord, which consent shall not be unreasonably withheld unless such change either incorporates items which are not Building Standard Improvements; or (ii) Tenant’s request for materials, finishes or installations which require a longer time than Building standard improvements to obtain, install or complete; or (iii) Tenant’s failure to comply with Landlord’s contractor’s or subcontractor’s schedule; or (iv) an Event of Default by Tenant under the Lease or the existence of any event or condition which, with the passage of time or the giving of notice or both would constitute such an Event of Default; or (v) delays caused by Tenant in construction; or (vi) any work performed in, on or about the Fourth Expansion Premises by Tenant or any Tenant Parties concurrently with the performance by Landlord of the Fourth Expansion Premises Tenant Improvement causes delay of Landlord’s contractor’s or subcontractor’s schedule.  Tenant acknowledges that the length and/or impact of any “Tenant’s Delay” may exceed the duration or scope of such event due to the necessity of rescheduling work or other causes.

(c)            Tenant shall have early access to the Fourth Expansion Premises, with all accessing parties having appropriate insurance in place with Property Management, two (2) weeks prior to the Fourth Expansion Premises Commencement Date (or Fourth Expansion Premises Commencement Date-Suite 240 Premises) for the purpose of installing furniture, fixtures and voice and data systems, provided it does not interfere with Landlord’s ability to complete the Tenant Improvements.

11.            Delivery of Premises .  If the Landlord shall be unable to give possession of the Premises, exclusively the Suite 200 Premises and the Suite 246 Premises, on the Fourth Expansion Premises Commencement Date by reason of (i) the Landlord work is not substantially complete, (ii) the holding over or retention of possession of any tenant, tenants or occupants, or (iii) for any other reason, then Landlord shall not be subject to any liability for the failure to give possession on said date.  Under such circumstances the Base Rent to be paid herein shall not commence until the Premises (exclusively the Suite 200 Premises and the Suite 246 Premises) are made available to Tenant by Landlord, and no such failure to give possession on the Fourth Expansion Premises Commencement Date shall affect the validity of this Sixth Amendment to Office Building Lease or the obligations of the Tenant hereunder.  The Base Rents due hereunder will be adjusted at the time that any or all of the Fourth Expansion Premises are delivered to Tenant substantially complete to reflect the same underlying effective rent of the rent structure specific to each suite with the lease expiration dates to remain unchanged.

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Notwithstanding the foregoing, if the Fourth Expansion Premises Commencement Date for the Suite 200 Premises together with the Suite 246 Premises has not occurred within ninety (90) days after the Fourth Expansion Premises Commencement Date, the Tenant, by written notice to the Landlord given within ten (10) days after the expiration of such ninety (90) day period, may terminate the Sixth Amendment to Office Building Lease without any liability to the Landlord.

Separately, if the Fourth Expansion Premises Commencement Date-Suite 240 Premises has not occurred within ninety (90) days after the Fourth Expansion Premises Commencement Date-Suite 240 Premises, the Tenant, by written notice to the Landlord given within ten (10) days after the expiration of such ninety (90) day period, may terminate the terms of lease for the Suite 240 Premises in the Sixth Amendment to Office Building Lease for the Suite 240 Premises not delivered in said time frame without any liability to the Landlord.

If Landlord’s failure to complete Tenant’s improvements within ninety (90) days after the Fourth Expansion Premises Commencement Date and/or Fourth Expansion Premises Commencement Date-Suite 240 Premises is result of Tenant Delay, Tenant shall not have the option to terminate the Sixth Amendment to Office Building Lease or the terms of lease for the Suite 240 Premises in the Sixth Amendment to Office Building Lease.

12.            Tenant Refurbishment Allowance : This paragraph will replace paragraph 9. (b) in the Fifth (5 th ) Amendment:

Tenant shall have a credit of $20,000.00 with the Landlord for paint or other needed minor repair or touch-up.  Tenant shall be allowed to perform any needed work with prior written consent of the Landlord.  The Landlord will pay all invoices upon receipt from the Tenant up to $20,000.00 after which amount said costs shall be at the Tenant’s sole cost and expense.  Said $20,000.00 allowance may only be used in improving any of Tenant’s Premises and shall expire, if unused, July 1, 2018.

13.            HVAC Upper Limit Control : Landlord will install upper limit controls in the HVAC system which will automatically activate cooling during non-standard business hours if the ambient temperature in Tenant’s Premises reaches approximately 85° Fahrenheit.  The system will maintain ambient temperatures in the Premises not to exceed approximately 85° Fahrenheit.

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14.            Parapet Signage :  Tenant shall also have the right to one (1), additional parapet sign on the Building exterior in a location mutually agreeable to Landlord and Tenant, on the east side of the Building facing Valley Avenue, subject to the approval of the City of Pleasanton.  Landlord and Tenant will comply with all governmental regulations and will be subject to any Project CC&R’s in connection with the parapet signage right described herein.  Parapet signage fabrication, installation, maintenance, repair and removal, as well as Building exterior restoration, shall be at Tenant’s sole expense.

15.            In-Premises Janitorial Service :  The Landlord shall allow Tenant to use their own janitorial service within their suites.  The Landlord will agree to give Tenant a rent credit equal to $0.06 per useable square foot per month.  Said credit will be issued in arrears on a monthly basis.

16.            Right of First Offer :  The Right of First Offer provided for in Section 11 of the Third Amendment to Office Building Lease is amended to also include vacant spaces on the first (1 st ) floor of the Building.

17.            Sixth Renewal Term .

(a)            Subject to the terms of this Section 16, Tenant shall have one (1) option (“ Sixth Renewal Option ”) to extend the Fifth Renewal Term of any or all of the Suite 300 Premises, Suite 100 Premises and the Fourth Expansion Premises for a consecutive period of sixty (60) months beyond the expiration of the Fifth Renewal Term (“ Sixth Renewal Term ”).  The Sixth Renewal Term is personal to Tenant and may not be exercised by any sublessee or assignee of Tenant.  The Sixth Renewal Option must be exercised, if at all, by written notice (“ Election Notice ”) from Tenant to Landlord given not more than three hundred sixty five (365) days and not less than two hundred and seventy (270) days prior to the expiration of the Fifth Renewal Term.  Any such Election Notice given by Tenant to Landlord shall be irrevocable.  The Sixth Renewal Option and Tenant’s delivery of an Election Notice shall be voidable and of no force or effect at the election of Landlord, exercised in Landlord’s sole and absolute discretion, if (i) an Event of Default is occurring under the Lease, as amended hereby, either at the time Tenant exercises the Sixth Renewal Option or as of the commencement of the Sixth Renewal Term, or (ii) there is an event occurring which with the giving of notice or the passage of time, or both, would constitute an Event of Default under the Lease, as amended hereby, either at the time of Tenant’s delivery of the Election Notice or at any time from the date of delivery of such Election Notice through the time of commencement of the Sixth Renewal Term or (iii) if there has been any materially adverse change in the financial condition of the Tenant, as of the commencement of the Sixth Renewal Term.  If Tenant fails to exercise the Sixth Renewal Option in a timely manner, as provided for above, then the Sixth Renewal Option shall be void and of no force and effect.  The validly exercised Sixth Renewal Term shall be upon the same terms and conditions as the Lease, as amended, except that: (x) the annual Base Rent during the Sixth Renewal Term shall be equal to the Fair Market Rent (as defined in the Second Amendment) as of the commencement of the Sixth Renewal Term; and (y) Tenant shall have no further renewal options pursuant to this Section 16 or any provision of the Lease.

(b)            No later than thirty (30) days prior to the commencement of the Sixth Renewal Term, Tenant shall deposit with Landlord an amount, that when taken together with the Security Deposit, equals the monthly Base Rent due for the last month of the Sixth Renewal Term.  Upon the commencement of the Sixth Renewal Term, the term “Security Deposit” shall automatically include such additional Security Deposit and such additional Security Deposit shall be held pursuant to the terms of Article 5 of the Lease.

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18.            Security Deposit .  Pursuant to the Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth Amendment and Fifth Amendment Tenant has deposited a total of Sixty-One Thousand, Eight Hundred and Forty-One and 63/100 Dollars ($61,841.63).  Upon execution of the Sixth Amendment to Office Building Lease, Tenant shall deposit with Landlord the additional sum of Twenty-Six Thousand and Forty and 35/100 ($26,040.35) an amount equal to the last months’ rent of the Fourth Expansion Premises.  The new sum, together with the original Security Deposit, shall be considered the “Security Deposit” and shall be subject to Article 5 of the Original Lease.

19.            Express Changes Only .  Except as set forth in this Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full force and effect and shall be incorporated herein.

20.            Brokers .  Tenant warrants that it has had no dealings with any real estate broker or agent, other than Colliers International, acting in its dual capacity on behalf of Landlord and Tenant.  Landlord shall pay Colliers International pursuant to a separate written agreement.  If Tenant has dealt with any other person or real estate broker with respect to leasing or renting space in the Building, Tenant shall be solely responsible for the payment of any fee due said person or firm and Tenant shall hold Landlord free and harmless against any liability in respect thereto, including attorneys’ fees and costs.

21.            Counterparts .  This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original and all such counterparts together, shall constitute one and the same instrument.  The execution of facsimiles of this Amendment shall be binding on the parties hereto.

22.            Entire Agreement .  There are and were no oral or written representations, warranties, understandings, stipulations, agreements, or promises made by either party, or by any agent, employee, or other representative of either party, pertaining to the subject matter of this Amendment which have not been incorporated into this Amendment.  This Amendment shall not be modified, changed, terminated, amended, superseded, waived, or extended except by a written instrument executed by the parties hereto.

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LANDLORD :

WEST STATE CO, L.P.,
a California limited partnership

By:
/s/ Carl Zocchi
 
Name:
Carl Zocchi
 
Its:
General Partner
 

TENANT :

RIMINI STREET, INC.,
a Nevada corporation

By:
/s/ Thomas Shay
 
Name:
Thomas Shay
 
Its:
SVP and CIO
 

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Exhibit A



Exhibit A1



Exhibit B1

(attached)






Exhibit B2

(attached)




Exhibit B3

(attached)






Exhibit 10.48

SEVENTH AMENDMENT TO OFFICE BUILDING LEASE

This SEVENTH AMENDMENT TO OFFICE BUILDING LEASE (“ Amendment ”) is made and entered into as of September 29, 2014, by and between WEST STATE CO, LP , a California limited partnership (“ Landlord ”) and RIMINI STREET, INC. , a Nevada corporation (“ Tenant ”).

R E C I T A L S:

A.            WHEREAS, Landlord’s predecessor-in-interest and Tenant entered into that certain Office Building Lease dated as of September 2006 (“ Original Lease ”), pursuant to which Landlord leased to Tenant and Tenant leased from Landlord Suite 246, consisting of approximately 1,794 rentable square feet and located on the second (2 nd ) floor (“ Original Premises ”) of the building located at 6601 Koll Center Parkway, Pleasanton, California (“ Building ”);

B.            WHEREAS, the Original Lease was amended by that certain First Amendment to Office Building Lease dated as of October 2007 (“ First Amendment ”) pursuant to which, among other things, Landlord leased to Tenant, Suite 350, consisting of approximately 5,766 rentable square feet and located on the third (3 rd ) floor (“ Replacement Premises ”) of the Building, in lieu of the Original Premises;

C.            WHEREAS, the Original Lease was further amended by that certain Second Amendment to Office Building Lease dated as of May 2009 (“ Second Amendment ”, together with the First Amendment and Original Lease, as amended, is referred to herein as the “ Lease ”) pursuant to which, among other things: (i) the Renewal Term was extended by the Second Renewal Term; and (ii) Landlord additionally leased to Tenant and Tenant additionally leased from Landlord approximately 6,337 rentable square feet of space on the third (3 rd ) floor of the Building (“ Expansion Premises ”, together with the Replacement Premises is referred to herein as the “ Existing Premises ”) as of the Second Renewal Term Commencement Date;

D.            WHEREAS, the Original Lease was further amended by that certain Third Amendment to Office Building Lease dated as of October 2009, whereby, among other things: (i) the Renewal Term was extended by the Third Renewal Term; and (ii) Landlord additionally leased to Tenant and Tenant additionally leased from Landlord approximately 10,852 rentable square feet of space adjacent to the Existing Premises of the Building (“ Second Expansion Premises ”) as of the Third Renewal Term Commencement Date;

E.            WHEREAS, the Original Lease was further amended by that certain Fourth Amendment to Office Building Lease dated as of January 18, 2011, whereby, among other things: (i) the Third Renewal Term Commencement Date was amended to reflect the actual Commencement Date of the Third Amendment and: (ii) the Base Rent Tables in the Third Amendment were amended to reflect actual dates as well as corrections of scriveners errors in the Third Amendment;

F.            WHEREAS, the Original Lease was further amended by that certain Fifth Amendment to Office Building Lease dated as of April, 2012, whereby, among other things: (i) Tenant Leased the “ Third Expansion Premises ”, also known as “Suite 100” (ii) Tenant extended their Lease term in the Existing Premises and Second Expansion Premises (the Fourth Renewal Term); and

G.            WHEREAS, the Original Lease was further amended by that certain Sixth Amendment to Office Building Lease dated as of September 2013, whereby, among other things: (i) Tenant Leased the “ Fourth Expansion Premises ”, also known as Suite 200 Premises (ii) Tenant extended their Lease term in their Existing Premises (the Fifth Renewal Term).


NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.            Recitals .  The foregoing recitals are incorporated herein by this reference.

2.            Defined Terms .  Capitalized terms not otherwise defined herein shall have the meaning given such terms in the Lease.

3.            Effective Date .  The effective date of this Amendment shall be upon the mutual execution and delivery of this Amendment by Landlord and Tenant (“ Effective Date ”).

4.            Lease Extension of Fifth Renewal Term .  Pursuant to the Sixth Amendment, the Fifth Renewal Term expires on June 30, 2019.  As of the Effective Date, the term of the Lease for the “ Suite 300 Premises ”, “ Suite 200 Premises ” and the “ Suite 100 Premises ” shall be extended by the greater of forty-one months or a term co-terminus with the Fifth Expansion Premises (defined below) with the extension term commencing on July 1, 2019 and expiring on November 30, 2022 or the actual date of the Lease Expiration for the Fifth Expansion Premises (defined below).

(a)            Base Rent during Lease Extension of the Fifth Renewal Term.

(i)            Suite 300 Premises (22,955 Rentable Square Feet)

Lease Extension of Fifth Renewal Term
Monthly Base Rent for the
(Dates of Extended Terms)
Third Expansion Premises
July 1, 2019 – June 30, 2020
$56,744.76
July 1, 2020 – June 30, 2021
$58,447.10
July 1, 2021 – June 30, 2022
$60,200.52
July 1, 2022 – November 30, 2022
$62,006.53

(ii)            Suite 200 Premises (11,081 Rentable Square Feet)

Lease Extension of Fifth Renewal Term
Monthly Base Rent for the
(Dates of Extended Term)
Third Expansion Premises
July 1, 2019 – June 30, 2020
$27,392.23
July 1, 2020 – June 30, 2021
$28,214.00
July 1, 2021 – June 30, 2022
$29,060.42
July 1, 2022 – November 30, 2022
$29,932.23

(iii)            Suite 100 Premises (5,468 Rentable Square Feet)

Lease Extension of Fifth Renewal Term
Monthly Base Rent for the
(Dates of Extended Term)
Third Expansion Premises
July 1, 2019 – June 30, 2020
$13,516.90
July 1, 2020 – June 30, 2021
$13,922.40
July 1, 2021 – June 30, 2022
$14,340.07
July 1, 2022 – November 30, 2022
$14,770.28

5.            Fifth Expansion Premises .  In consideration of the rents, terms, provisions and covenants of this Amendment and the Lease, Landlord hereby leases unto Tenant and Tenant hereby rents and accepts from Landlord the “ Fifth Expansion Premises ” which is comprised of four second (2 nd ) floor suites in the building: Suites 201 (3,773 rentable square feet), 210 (3,142 rentable square feet), 250 (2,316 rentable square feet), and 260 (2,608 rentable square feet).  The Suites collectively are 11,839 rentable square feet and will be combined with the Suite 200 Premises per Exhibit A attached hereto.

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(a)            As of the Effective Date, the term of the Lease for the Fifth Expansion Premises shall be for ninety-six (96) months (“ Fifth Expansion Premises Term ”) commencing upon substantial completion of the Tenant Improvements estimated to be December 1, 2014 (“ Fifth Expansion Premises Commencement Date ”) with Lease Expiration ninety-six months thereafter.

(b)            As of the Fifth Expansion Premises Commencement Date, the monthly Base Rent for the Fifth Expansion Premises (approximately 11,839 rentable square feet) shall be as follows:

Fifth Expansion
Monthly Base Rent
Premises Term (Months)
for the Fifth Expansion Premises
01 – 06
$0.00
07 – 12
$27,611.12
13 – 24
$28,392.50
25 – 36
$29,197.31
37 – 48
$30,026.27
49 – 60
$30,880.10
61 – 72
$31,759.54
73 – 84
$32,665.37
85 – 96
$33,598.37

The Monthly Base Rent is inclusive of a straight-line amortization of $140,879.00 over Months 7 through 96 of the Lease Term for the Fifth Expansion Premises as Tenant’s contribution towards the cost of Title 24 compliance improvements for the Fifth Expansion Premises and Suite 200 Premises and in no event shall the Monthly Base Rent be further increased as result of said Title 24 compliance improvements for the Fifth Expansion Premises and Suite 200 Premises.

(c)            Following the mutual execution and delivery of this Amendment and prior to the Fifth Expansion Premises Commencement Date, Landlord shall construct the Fifth Expansion Premises Tenant Improvements (“ Tenant Improvements ”) which shall be constructed in accordance with the Space Plan prepared by Hopkins & Wall, dated August 14, 2014, attached hereto as Exhibit A-1 , with the following corrections and additions to the plan:

1)            Each office is to receive one (1) accent paint wall as building standard.

2)            All light switches and outlet and data cover plates are to be white.

Additionally, the Landlord will pay for all architectural costs, including construction drawings, permits and Property Management construction oversight fees.  Any cost increases resulting from change orders after agreement of the original scope of work, including architectural fees and Property Management construction oversight fees shall be at Tenant’s sole cost and expense.  Any delay (see below “ Tenant’s Delay ”) in delivery due to change orders shall not be cause for delay in the commencement of the Lease.  Any above building standard improvements shall be at Tenant’s sole cost and expense.  Incremental costs for Above Standard Improvements shall be paid for by Tenant, at Tenant’s election, in cash or amortized into the Base Rent on a straight-line basis without imputed interest over the paid months of the Fifth Expansion Premises Term.  Above Standard Improvements are Tenant desired carpet upgrade above $25 per square yard (building standard carpet), floor monuments for conference rooms, any changes in color of building standard electrical, data and switch cover plates, additional glass for conference rooms or offices above the building standard sidelight, any dedicated HVAC units required for Tenant’s IT needs, inclusive of all costs of installation and any recessed projection screens.

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(i)            For the purposes herein, the term “ Tenant’s Delay ” shall mean any delay in the construction of Tenant Improvement in the Fifth Expansion Premises resulting from: (1) Tenant’s change(s) in the Space Plan or specifications and additional improvements other than those of Exhibit A-1 provided that Tenant shall not make changes without the prior written consent of Landlord unless such change either incorporates items which are not Building Standard Improvements; or (2) Tenant’s request for materials, finishes or installations which require a longer time than Building standard improvements to obtain, install or complete; or (3) Tenant’s failure to comply with Landlord’s contractor’s or subcontractor’s schedule; or (4) an Event of Default by Tenant under the Lease or the existence of any event or condition which, with the passage of time or the giving of notice or both would constitute such an Event of Default; or (5) delays caused by Tenant in construction; or (vi) any work performed in, on or about the Fifth Expansion Premises by Tenant or any Tenant Parties concurrently with the performance by Landlord of the Fifth Expansion Premises Tenant Improvement causes delay of Landlord’s contractor’s or subcontractor’s schedule.  Tenant acknowledges that the length and/or impact of any “Tenant’s Delay” may exceed the duration or scope of such event due to the necessity of rescheduling work or other causes.

(d)            Tenant shall have early access to the Fifth Expansion Premises, with all accessing parties having appropriate insurance in place with Property Management, two (2) weeks prior to the Fifth Expansion Premises Commencement Date for the purpose of installing furniture, fixtures and voice and data systems, provided it does not interfere with Landlord’s ability to complete the Tenant Improvements.

(e)            Tenant covenants, as a material part of the consideration for the Lease, as Amended hereby, to keep and perform each and all of said terms, covenants and conditions for which Tenant is liable and that this Amendment is made upon the condition of such performance.  On and after the Effective Date, all of the terms and provisions of the Lease, as amended hereby, shall apply to the Suite 300 Premises, the Suite 200 Premises, the Suite 100 Premises, and the Fifth Expansion Premises.  From and after the Effective Date, each and every reference in the Lease and in this Amendment to “ Premises ” shall be and mean the Suite 300 Premises, the Suite 200 Premises the Suite 100 Premises and the Fifth Expansion Premises, collectively.  The Premises consists of a total of approximately 51,343 rentable square feet.

(f)            Landlord, at Landlord’s sole cost and expense, shall install uniform Title 24 compliant lighting and controls throughout the Suite 200 Premises and the Fifth Expansion Premises.

6.            Tenant’s Percentage Share .  As of the Fifth Renewal Term Commencement Date, Tenant’s Percentage Share shall be adjusted upwards to 73.78%, to take into account the leasing of the Fifth Expansion Premises.

7.            Base Year .  As of the Fifth Expansion Premises Commencement Date, Tenant’s Base Year for the Suite 300 Premises, the Suite 200 Premises, the Suite 100 Premises, and the Fifth Expansion Premises shall be 2014.

8.            Tenant Refurbishment Allowance :  Tenant’s existing Tenant Refurbishment Allowance, pursuant to Section 12 of the Sixth Amendment to Lease, shall be increased to three dollars per square foot ($3.00 per square foot) or One Hundred and Fifty Four Thousand Twenty Nine and No/100 Dollars ($154,029.00) and shall be expanded to include the replacement of carpet.  The allowance, or unused portions thereof, shall expire prior to commencement of the last twenty-four (24) months of the Lease Term.

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9.            In-Premises Janitorial Service :  The Landlord shall allow Tenant to use their own janitorial service within their suites.  The Landlord will agree to give Tenant a rent credit equal to No and Six/100 Dollars ($0.06) per useable square foot per month.  Said credit will be issued either monthly, quarterly or semi-annually.  If there is an operating expense increase for in-premises janitorial services for the entire Building, and Tenant elects thereafter to perform its own in-premises janitorial services, Tenant’s rent credit will automatically be adjusted by the same rate of increase on a per useable square foot basis.  Landlord will dedicate one (1) janitorial closet on the third (3 rd ) floor of the Building for Tenant’s use.  See Exhibit B , janitorial specifications for the Building common areas (including windows and glass) and the Tenant’s Premises.

10.            Right of First Offer : The Right of First Offer per Paragraph 16 of the Sixth Amendment to lease shall remain in effect except that Tenant shall have the below offered option terms on the following two first (1 st ) floor suites:

(a)            Suite 180   (8,993 Square Feet) – Lease Expires October 31, 2015

Tenant shall have the option to lease this suite, subject to the rights of the existing tenant, by giving Landlord written notice during the period May 1, 2015 to May 15, 2015.  After said period, the Landlord shall be free to market the suite to the general public and the option terms (below) shall be null and void; thereafter Tenant’s Right of First Offer per Paragraph 16 of the Sixth Amendment to Lease shall apply:

Estimated Time Lines :
October 31, 2015 – Suite 180 Lease Expiration
November 1, 2015 – December 31, 2015 – Tenant Improvement Timeframe

New Lease Term (Coterminous with Tenant’s Existing Lease) :
Lease Commencement Date:
On or before January 1, 2016
Estimated Lease Expiration Date:
November 30, 2022
Rent Schedule:
Three (3) Months Free, $2.35 Start Rent with Three Percent (3%) Annual Increases
Tenant Improvements:
Turn-key using building standard materials per a mutually agreeable space plan in substantial conformance to the Space Plan ( Exhibit A-2 ) prepared by Hopkins & Wall, dated August 12, 2014.

(b)            Suite 140 (4,496 Square Feet) – Lease Expires February 29, 2016

Tenant shall have the option to lease this suite, subject to the rights of the existing tenant, by giving Landlord written notice during the period September 1, 2015 to September 15, 2015.  After said period, the Landlord shall be free to market the suite to the general public and the option terms (below) shall be null and void; thereafter Tenant’s Right of First Offer per Paragraph 16 of the Sixth Amendment to Lease shall apply:

Estimated Time Lines :
February 29, 2016 – Suite 180 Lease Expiration
March 1, 2016 – April 30, 2016 – Tenant Improvement Timeframe

New Lease Term (Coterminous with Tenant’s Existing Lease) :
Lease Commencement Date:
On or before May 1, 2016
Estimated Lease Expiration Date:
November 30, 2022     Rent Schedule:  Three (3) Months Free, $2.40 Start Rent with Three Percent (3%) Annual Increases
Tenant Improvements:
Turn-key using building standard materials per a mutually agreeable space plan substantially utilizing the existing improvements wherever possible.

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11.            Option to Renew :  Provided Tenant is not then in default of the Lease, and is still occupying the Premises, Tenant shall have the Option to Renew the Lease in any one or any combination thereof of Tenant’s Premises (defined as the entire third (3 rd ) floor, the entire second (2 nd ) floor and any suite leased at the time on the first (1 st ) floor) for one (1) additional period of five (5) years (the “ Renewal Term ”).  The Option to Renew must be exercised, if at all, by written notice (“ Election Notice ”) from Tenant to Landlord given not more than three hundred sixty five (365) days and not less than two hundred and seventy (270) days prior to the expiration of the Fifth Renewal Term.  Any such Election Notice given by Tenant to Landlord shall be irrevocable.  The Option to Renew and Tenant’s delivery of an Election Notice shall be voidable and of no force or effect at the election of Landlord, exercised in Landlord’s sole and absolute discretion, if (i) an Event of Default is occurring under the Lease, as amended hereby, either at the time Tenant exercises the Option to Renew or as of the commencement of the Renewal Term, or (ii) there is an event occurring which with the giving of notice or the passage of time, or both, would constitute an Event of Default under the Lease, as amended hereby, either at the time of Tenant’s delivery of the Election Notice or at any time from the date of delivery of such Election Notice through the time of commencement of the Renewal Term or (iii) if there has been any materially adverse change in the financial condition of the Tenant, as of the commencement of the Renewal Term.  If Tenant fails to exercise the Option to Renew in a timely manner, as provided for above, then the Option to Renew shall be void and of no force and effect.  The validly exercised Renewal Term shall be upon the same terms and conditions as the Lease, as amended, except that: (1) the annual Base Rent during the Sixth Renewal Term shall be equal to be one hundred (100%) of the then Fair Market Rental Rate for space of comparable size, quality and location; and (2) Tenant shall have no further renewal options pursuant to this Section 11 or any provision of the Lease; and (3) No later than thirty (30) days prior to the commencement of the Renewal Term, Tenant shall deposit with Landlord an amount, that when taken together with the Security Deposit, equals the monthly Base Rent due for the last month of the Renewal Term.  Upon the commencement of the Renewal Term, the term “Security Deposit” shall automatically include such additional Security Deposit and such additional Security Deposit shall be held pursuant to the terms of Article 5 of the Lease.

(a)            The right is personal to the Tenant and may not be exercised by any sublessee or assignee of Tenant.

12.            Security Deposit .  Pursuant to the Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment and Sixth Amendment Tenant has deposited a total of Eighty-Seven Thousand, Eight Hundred and Eighty-One and 98/100 Dollars ($87,881.98).  Upon execution of the Seventh Amendment to Office Building Lease, Tenant shall deposit with Landlord the additional sum of Fifty-Two Thousand Four Hundred Twenty-Five and Forty-Three/100 Dollars ($52,425.43) an amount equal to the last months’ rent of the Premises.  The new sum, together with the original Security Deposit, shall be considered the “Security Deposit” and shall be subject to Article 5 of the Original Lease.

13.            Landlord Notice of Intent to Sell .  In the event the Landlord decides to market the Building for sale, the Landlord shall notify Tenant in writing of its intent with a sale price and shall provide Tenant ten (10) business days within which to respond with an offer to purchase the Building prior to marketing to the general public.  The Landlord shall have the right, without notice to Tenant, to sell or transfer ownership to family.

(a)            This Notice of Intent to Sell shall be personal to Rimini Street, Inc. and shall not apply to any other entity.

-6-

14.            Repairs .  Pursuant to the Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment and Sixth Amendment, the Landlord’s obligations are clarified to include: (i) Provide light fixture bulb replacement (not in cubicles); (ii) Replace ceiling tiles damaged or stained from water leaks; (iii) Repair door handles and hinges and window blinds, unless damage to any of the aforementioned is a result of Tenant’s misuse.

15.            HVAC .  Per the Matrix survey of the mechanical HVAC systems, dated September 8, 2014, the Landlord, at Landlord’s sole cost and expense, will agree to perform the following maintenance and repairs to the HVAC systems in Tenant’s existing Premises on or before October 15, 2014, or in Expansion Premises in the course of the agreed upon Tenant Improvement:

1.            In Suite 200, repair leaky hot water valve closest to Suite 250.
2.            Repair damaged ducting in Suite 250.
3.            Repair one VAV velocity sensor and fix velocity controller and actuator in Suite 100.

Landlord agrees to maintain the Building in a manner, which is consistent with other comparable “Class A” office buildings in the Tri-Valley office market.

16.            Common Area Carpets .  Landlord will agree to replace the carpet in the first (1 st ) floor common areas and elevators as is necessary to maintain the Building in a manner which is consistent with other comparable “Class A” office buildings in the Tri-Valley office market, not to exceed an interval of seven (7) years from date of last new install (November 3, 2012).

17.            Building Security .  Landlord will install an Uninterruptable Power Supply (“UPS”) system which will provide approximately eight (8) hours of back-up battery power supply for the Building lobby doors in the event of a power failure.

If Tenant occupies 100% of the Building, Tenant shall have the right to install Besam automated glass sliding lobby doors ( www.besam-usa.com / or similar product type) at Tenant’s sole cost and expense, subject to and in compliance with all Building codes and subject to Landlord’s approval.  Landlord will advise Tenant of restoration requirements, if any, at the time of approval.  The Landlord will have the opportunity to review renderings and study the impact of the improvement on the building façade and lobby and reserves the right to work with Tenant in making modifications to accommodate a long term improvement for the building.

Tenant shall be granted the right to install cardkey access controls in elevators for controlled access to the second (2 nd ) and third (3 rd ) floors during non-standard business hours.  This would include, subject to fire code regulations, the locking of first (1 st ) floor stairwell doors to allow for exiting only from upper floors.  Landlord and Property Management prior approval shall be required of said improvements and detailed scope of work.  Tenant shall also be subject to restoration of the Building due to installment of the cardkey access controls.

18.            Express Changes Only .  Except as set forth in this Amendment, all of the terms and provisions of the Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment and Sixth Amendment shall remain unmodified and in full force and effect and shall be incorporated herein.

-7-

19.            Brokers .  Tenant warrants that it has had no dealings with any real estate broker or agent, other than Colliers International, acting in its dual capacity on behalf of Landlord and Tenant.  Landlord shall pay Colliers International pursuant to a separate written agreement.  If Tenant has dealt with any other person or real estate broker with respect to leasing or renting space in the Building, Tenant shall be solely responsible for the payment of any fee due said person or firm and Tenant shall hold Landlord free and harmless against any liability in respect thereto, including attorneys’ fees and costs.

20.            Counterparts .  This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original and all such counterparts together shall constitute one and the same instrument.  The execution of facsimiles of this Amendment shall be binding on the parties hereto.

21.            Entire Agreement .  There are and were no oral or written representations, warranties, understandings, stipulations, agreements, or promises made by either party, or by any agent, employee, or other representative of either party, pertaining to the subject matter of this Amendment which have not been incorporated into this Amendment.  This Amendment shall not be modified, changed, terminated, amended, superseded, waived, or extended except by a written instrument executed by the parties hereto.

22.            Contingency .  This Seventh Amendment to Office Building Lease is contingent on the Landlord’s successful relocation of tenants that currently have leasehold’s on suites 210 and 250 on the second (2 nd ) floor of the building.  In the event that either of the aforementioned suites remains occupied as of November 30, 2014, then Tenant or Landlord can terminate this agreement by giving written notice to the other party.

LANDLORD :

WEST STATE CO, L.P.,
a California limited partnership

By:
/s/ Carl Zocchi
 
Name:
Carl Zocchi
 
Its:
General Partner
 

TENANT :

RIMINI STREET, INC.,
a Nevada corporation

By:
/s/ Seth A. Ravin
 
Name:
Seth A. Ravin
 
Its:
Chief Executive Officer
 

RIMINI STREET, INC.,
a Nevada corporation

By:
/s/ Thomas Shay
 
Name:
Thomas Shay
 
Its:
SVP and CIO
 

(Two Corporate Officer Signatures Required)

-8-

EXHIBIT A

FIFTH EXPANSION PREMISES





EXHIBIT A-1

TENANT IMPROVEMENTS



EXHIBIT A-2

SPACE PLAN





EXHIBIT B

JANITORIAL SPECIFICATIONS


Exhibit B
Janitorial Specifications

1. Monday Through Friday :
Offices
Hand dust open counters, tables and chairs
Hand dust flat surfaces within reach
Gather all waste paper, replace plastic liners and place in disposal
Spot clean glass, doors and light switches
Sweep and mop all resilient tile floors
Vacuum all carpet areas
Clean and sanitize drinking fountains
When done, close doors and turn off lights
Break room Kitchens
Sweep and mop floors
Gather all waste, replace plastic liners and place in disposal
Clean all tables and counter tops and the exterior of appliances
Clean and polish sinks
Arrange furniture
Restrooms
Clean and refill dispensers
Clean and sanitize fixtures, polish chrome fittings
Spot wash walls and partitions
Clean and sanitize mirrors
Damp mop and sanitize floors; flush floor drains weekly
Lobby
Clean entrance glass doors
Hand dust all ledges and flat surfaces, spot clean metal finishes
Clean elevator doors and walls, vacuum carpets, keep tracks free of dirt
Vacuum carpets
Sweep/mop entrance tile

2. Quarterly :
Dust window blinds
Machine scrub restroom floors

3. Annually :
Strip and wax vinyl floors
Clean return and supply air vents

4. Window Cleaning :
Interior and exterior windows cleaned in May
Exterior only cleaned in September



Exhibit 10.49

EIGHTH AMENDMENT TO OFFICE BUILDING LEASE

This EIGHTH AMENDMENT TO OFFICE BUILDING LEASE (“ Amendment ”) is made and entered into as of January 25, 2016, by and between WEST STATE CO, LP , a California limited partnership (“ Landlord ”) and RIMINI STREET, INC. , a Nevada corporation (“ Tenant ”).

R E C I T A L S:

A.            WHEREAS, Landlord’s predecessor-in-interest and Tenant entered into that certain Office Building Lease dated as of September 2006 (“ Original Lease ”), pursuant to which Landlord leased to Tenant and Tenant leased from Landlord Suite 246, consisting of approximately 1,794 rentable square feet and located on the second (2 nd ) floor (“ Original Premises ”) of the building located at 6601 Koll Center Parkway, Pleasanton, California (“ Building ”);

B.            WHEREAS, the Original Lease was amended by that certain First Amendment to Office Building Lease dated as of October 2007 (“ First Amendment ”) pursuant to which, among other things, Landlord leased to Tenant, Suite 350, consisting of approximately 5,766 rentable square feet and located on the third (3 rd ) floor (“ Replacement Premises ”) of the Building, in lieu of the Original Premises;

C.            WHEREAS, the Original Lease was further amended by that certain Second Amendment to Office Building Lease dated as of May 2009 (“ Second Amendment ”, together with the First Amendment and Original Lease, as amended, is referred to herein as the “ Lease ”) pursuant to which, among other things: (i) the Renewal Term was extended by the Second Renewal Term; and (ii) Landlord additionally leased to Tenant and Tenant additionally leased from Landlord approximately 6,337 rentable square feet of space on the third (3 rd ) floor of the Building (“ Expansion Premises ”, together with the Replacement Premises is referred to herein as the “ Existing Premises ”) as of the Second Renewal Term Commencement Date;

D.            WHEREAS, the Original Lease was further amended by that certain Third Amendment to Office Building Lease dated as of October 2009, whereby, among other things: (i) the Renewal Term was extended by the Third Renewal Term; and (ii) Landlord additionally leased to Tenant and Tenant additionally leased from Landlord approximately 10,852 rentable square feet of space adjacent to the Existing Premises of the Building (“ Second Expansion Premises ”) as of the Third Renewal Term Commencement Date;

E.            WHEREAS, the Original Lease was further amended by that certain Fourth Amendment to Office Building Lease dated as of January 18, 2011, whereby, among other things: (i) the Third Renewal Term Commencement Date was amended to reflect the actual Commencement Date of the Third Amendment and: (ii) the Base Rent Tables in the Third Amendment were amended to reflect actual dates as well as corrections of scriveners errors in the Third Amendment;

F.            WHEREAS, the Original Lease was further amended by that certain Fifth Amendment to Office Building Lease dated as of April, 2012, whereby, among other things: (i) Tenant Leased the “ Third Expansion Premises ”, also known as “ Suite 100 ” (ii) Tenant extended their Lease term in the Existing Premises and Second Expansion Premises (the Fourth Renewal Term); and

G.            WHEREAS, the Original Lease was further amended by that certain Sixth Amendment to Office Building Lease dated as of September 2013, whereby, among other things: (i) Tenant Leased the “ Fourth Expansion Premises ”, also known as Suite 200 Premises (ii) Tenant extended their Lease term in their Existing Premises (the Fifth Renewal Term); and

H.            WHEREAS, the Original Lease was further amended by that certain Seventh Amendment to Office Building Lease, dated as of September 29, 2015, whereby among other things: (i) Tenant leased the “ Fifth Expansion Premises ”, also known as “ Suite 200 ”; (ii) Tenant extended their Lease Term in their Existing Premises (Lease Extension of Fifth Renewal Term).

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

1.            Recitals .  The foregoing recitals are incorporated herein by this reference.

2.            Defined Terms .  Capitalized terms not otherwise defined herein shall have the meaning given such terms in the Lease.

3.            Effective Date .  The effective date of this Amendment shall be upon the mutual execution and delivery of this Amendment by Landlord and Tenant (“ Effective Date ”).

4.            Sixth Expansion Premises .  In consideration of the rents, terms, provisions and covenants of this Amendment and the Lease, Landlord hereby leases unto Tenant and Tenant hereby rents and accepts from Landlord the “ Sixth Expansion Premises ” which is comprised of two (2) first (1 st ) floor suites in the building: Suites 140 (4,496 rentable square feet) and Suite 180 (8,993 rentable square feet) as shown on Exhibit A attached hereto.  The suites are collectively 13,489 rentable square feet.

(a)            As of the Effective Date, the term of the Lease for the Sixth Expansion Premises shall be for eighty (80) months (“ Sixth Expansion Premises Term ”) commencing upon the later of completion of the Tenant Improvements or June 1, 2016 (“ Sixth Expansion Premises Commencement Date ”) with Lease Expiration January 31, 2023.

(b)            As of the Sixth Expansion Premises Commencement Date, the monthly Base Rent for the Sixth Expansion Premises (approximately 13,489 rentable square feet) shall be as follows:

Sixth Expansion
Premises Term (Months)
Monthly Base Rent
for the Sixth Expansion Premises
01 – 03
$0.00
04 – 12
$33,048.05
13 – 24
$34,039.49
25 – 36
$35,060.68
37 – 48
$36,112.50
49 – 60
$37,195.87
61 –72
$38,311.75
73 – 80
$39,461.10

(c)            Following the mutual execution and delivery of this Amendment and prior to the Sixth Expansion Premises Commencement Date, Landlord shall construct the Sixth Expansion Premises Tenant Improvements (“ Tenant Improvements ”) which shall be constructed in accordance with the Space Plan prepared by Hopkins & Wall, dated January 12, 2016, attached hereto as Exhibit A-1 .

Additionally, the Landlord will pay for all architectural costs, including construction drawings, permits and Property Management construction oversight fees.  Any cost increases resulting from change orders after agreement of the original scope of work, including architectural fees and Property Management construction oversight fees shall be at Tenant’s sole cost and expense.  Any delay (see below “ Tenant’s Delay ”) in delivery due to change orders shall not be cause for delay in the commencement of the Lease.  Above building standard improvements shall be at Tenant’s sole cost and expense.  Incremental costs for Above Standard Improvements shall be paid for by Tenant, at Tenant’s election, in cash or amortized into the Base Rent on a straight-line basis without imputed interest over the paid months of the Sixth Expansion Premises Term.  Above Standard Improvements for the Sixth Expansion Premises are defined as: 1) Tenant desired carpet upgrade above $25 per square yard (building standard carpet), 2) floor monuments for conference rooms, 3) any dedicated HVAC units required for Tenant’s IT needs, inclusive of all costs of installation and 4) any recessed projection screens.
2

(i)            For the purposes herein, the term “ Tenant’s Delay ” shall mean any delay in the construction of Tenant Improvement in the Sixth Expansion Premises resulting from: (1) Tenant’s change(s) in the Space Plan or specifications and additional improvements other than those of Exhibit A-1 provided that Tenant shall not make changes without the prior written consent of Landlord unless such change either incorporates items which are not Building Standard Improvements; or (2) Tenant’s request for materials, finishes or installations which require a longer time than Building standard improvements to obtain, install or complete; or (3) Tenant’s failure to comply with Landlord’s contractor’s or subcontractor’s schedule; or (4) an Event of Default by Tenant under the Lease or the existence of any event or condition which, with the passage of time or the giving of notice or both would constitute such an Event of Default; or (5) delays caused by Tenant in construction; or (6) any work performed in, on or about the Sixth Expansion Premises by Tenant or any Tenant Parties concurrently with the performance by Landlord of the Sixth Expansion Premises Tenant Improvement causes delay of Landlord’s contractor’s or subcontractor’s schedule.  Tenant acknowledges that the length and/or impact of any “Tenant’s Delay” may exceed the duration or scope of such event due to the necessity of rescheduling work or other causes.

(d)            Tenant shall have early access to the Sixth Expansion Premises, with all accessing parties having appropriate insurance in place with Property Management, three (3) weeks prior to the Sixth Expansion Premises Commencement Date for the purpose of installing furniture, fixtures and voice and data systems, provided it does not interfere with Landlord’s ability to complete the Tenant Improvements.

(e)            Tenant covenants, as a material part of the consideration for the Lease, as Amended hereby, to keep and perform each and all of said terms, covenants and conditions for which Tenant is liable and that this Amendment is made upon the condition of such performance.  On and after the Effective Date, all of the terms and provisions of the Lease, as amended hereby, shall apply to the Sixth Expansion Premises.  From and after the Effective Date, each and every reference in the Lease and in this Amendment to “ Premises ” shall be and mean the Suite 300 Premises, the Suite 200 Premises the Suite 100 Premises and the Sixth Expansion Premises, collectively.  The Premises consists of a total of approximately 64,832 rentable square feet.

6.            Tenant’s Percentage Share .  As of the Sixth Renewal Term Commencement Date, Tenant’s Percentage Share shall be adjusted upwards to 93.17%, to take into account the leasing of the Sixth Expansion Premises.

7.            Base Year .  As of the Sixth Expansion Premises Commencement Date, Tenant’s Base Year for the Sixth Expansion Premises shall be 2016.

8.            Right of First Offer :  The Right of First Offer per Paragraph 16 of the Sixth Amendment to Lease shall remain in effect with respect to vacant spaces on the first (1 st ) floor of the Building.

9.            Option to Renew :  The Option to Renew per Paragraph 11 of the Seventh Amendment to Lease shall apply to the Sixth Expansion Premises.

10.            Security Deposit .  Pursuant to the Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment and Sixth Amendment Tenant has deposited a total of One Hundred Forty Thousand Three Hundred Seven and Forty-One/100 Dollars ($140,307.41).  Upon execution of the Eighth Amendment to Office Building Lease, Tenant shall deposit with Landlord the additional sum of Thirty-Nine Thousand Four Hundred Sixty-One and Ten/100 Dollars ($39,461.10) an amount equal to the last months’ rent of the Sixth Expansion Premises.  The new sum, together with the existing Security Deposit, shall be considered the “ Security Deposit ” and shall be subject to Article 5 of the Original Lease.

3

11.            Express Changes Only .  Except as set forth in this Amendment, all of the terms and provisions of the Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment, Sixth Amendment and Seventh Amendment shall remain unmodified and in full force and effect and shall be incorporated herein.

12.            Brokers .  Tenant warrants that it has had no dealings with any real estate broker or agent, other than Colliers International, acting in its dual capacity on behalf of Landlord and Tenant.  Landlord shall pay Colliers International pursuant to a separate written agreement.  If Tenant has dealt with any other person or real estate broker with respect to leasing or renting space in the Building, Tenant shall be solely responsible for the payment of any fee due said person or firm and Tenant shall hold Landlord free and harmless against any liability in respect thereto, including attorneys’ fees and costs.

13.            Counterparts .  This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original and all such counterparts together shall constitute one and the same instrument.  The execution of facsimiles of this Amendment shall be binding on the parties hereto.

14.            Entire Agreement .  There are and were no oral or written representations, warranties, understandings, stipulations, agreements, or promises made by either party, or by any agent, employee, or other representative of either party, pertaining to the subject matter of this Amendment which have not been incorporated into this Amendment.  This Amendment shall not be modified, changed, terminated, amended, superseded, waived, or extended except by a written instrument executed by the parties hereto.

LANDLORD :

WEST STATE CO, L.P.,
a California limited partnership

By:
/s/ Carl Zocchi
 
Name:
Carl Zocchi
 
Its:
General Partner
 

TENANT :

RIMINI STREET, INC.,
a Nevada corporation

By:
/s/ Seth Ravin
 
Name:
Seth Ravin
 
Its:
CEO
 

RIMINI STREET, INC.,
a Nevada corporation
 
By:
/s/ Thomas Shay
 
Name:
Thomas Shay
 
Its:
SVP and CIO
 

( Two Corporate Officer Signatures Required )
4



EXHIBIT A

SIXTH EXPANSION PREMISES



EXHIBIT A-1

TENANT IMPROVEMENTS





Exhibit 10.50
 
NINTH AMENDMENT TO OFFICE BUILDING LEASE
 
This NINTH AMENDMENT TO OFFICE BUILDING LEASE (“ Amendment ”) is made and entered into as of June 29, 2016, by and between WEST STATE CO, LP , a California limited partnership (“ Landlord ”) and RIMINI STREET, INC. , a Nevada corporation (“ Tenant ”).
 
R E C I T A L S:
 
A.            WHEREAS, Landlord’s predecessor-in-interest and Tenant entered into that certain Office Building Lease dated as of September 2006 (“ Original Lease ”).
 
B.            WHEREAS, the Original Lease was amended by that certain First Amendment to Office Building Lease dated as of October 2007, as further amended by the certain Second Amendment to Office Building Lease dated as of May 2009, as further amended by that certain Third Amendment to Office Building Lease dated as of October 2009, as further amended by that certain Fourth Amendment to Office Building Lease dated as of January 18, 2011, as further amended by that certain Fifth Amendment to Office Building Lease dated as of April, 2012, as further amended by that certain Sixth Amendment to Office Building Lease dated as of September 2013, as further amended by that certain Seventh Amendment to Office Building Lease dated September 29, 2015, and further amended by that certain Eight Amendment to Office Building Lease dated January 25, 2016 (collectively referred to as the, “Lease”) pursuant to which Landlord leases to Tenant and Tenant leases from Landlord suites 100, 140, 180, 200 and 300 of the building located at 6601 Koll Center Parkway, Pleasanton, California (“Building”).
 
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
 
1.            Recitals .  The foregoing recitals are incorporated herein by this reference.
 
2.            Defined Terms .  Capitalized terms not otherwise defined herein shall have the meaning given such terms in the Lease.
 
3.            Effective Date .  The effective date of this Amendment shall be upon the mutual execution and delivery of this Amendment by Landlord and Tenant (“ Effective Date ”).
 
4.            Sixth Expansion Premises .  Per the Eighth Amendment to Office Building Lease, the Sixth Expansion Premises consists of suite 140 and suite 180.  As of the Effective Date, the Sixth Expansion Premises shall be combined and collectively referred to as suite 150.
 
5.            Express Changes Only .  Except as set forth in this Amendment, all of the terms and provisions of the Original Lease, First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment, Sixth Amendment, Seventh Amendment and Eight Amendment shall remain unmodified and in full force and effect and shall be incorporated herein.

6.            Brokers .  Tenant warrants that it has had no dealings with any real estate broker or agent, acting in its dual capacity on behalf of Landlord and Tenant.  If Tenant has dealt with any other person or real estate broker with respect to leasing or renting space in the Building, Tenant shall be solely responsible for the payment of any fee due said person or firm and Tenant shall hold Landlord free and harmless against any liability in respect thereto, including attorneys’ fees and costs.
 
7.            Counterparts .  This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be deemed to be an original and all such counterparts together, shall constitute one and the same instrument.  The execution of facsimiles of this Amendment shall be binding on the parties hereto.
 
8.            Entire Agreement .  There are and were no oral or written representations, warranties, understandings, stipulations, agreements, or promises made by either party, or by any agent, employee, or other representative of either party, pertaining to the subject matter of this Amendment which have not been incorporated into this Amendment.  This Amendment shall not be modified, changed, terminated, amended, superseded, waived, or extended except by a written instrument executed by the parties hereto.

LANDLORD :
 
WEST STATE CO, L.P.,
a California limited partnership
 
By:
/s/Carl Zocchi
 
Name:
Carl Zocchi
 
Its:
General Partner
 

TENANT :
 
RIMINI STREET, INC.,
a Nevada corporation
 
By:
/s/ Thomas Shay
 
Name:
Thomas Shay
 
Its:
SVP and CIO
 

2

Exhibit 16.1
June 29, 2017
 
Securities and Exchange Commission
100 F. Street, N.E.
Washington, DC 20549
 
Re: Rimini Street, Inc.
 
Dear Sirs:
 
We have received a copy of the proposed disclosure in response to Item 17(b)(6) as it is expected to appear in the joint proxy statement/prospectus included in the Registration Statement on Form S-4 (the “Form S-4”) of GP Investments Acquisition Corp. (“GPIAC”) relating to the proposed business combination of GPIAC and Rimini Street, Inc. (“Rimini Street”) and have attached it as an appendix to this letter.  We agree with the statements made that appendix insofar as they relate to our Firm.
 
Sincerely,
 
/s/ BDO USA, LLP
 
 
 
BDO USA, LLP
 
 
 

APPENDIX
 
RIMINI STREET CHANGE IN INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
BDO USA, LLP (“BDO”) audited the consolidated financial statements of Rimini Street for the year ended December 31, 2013.  BDO had also performed an audit for the year ended December 31, 2014, and issued a report dated August 28, 2015.  On December 2, 2016, BDO communicated to the audit committee that it effectively withdrew its audit report on the consolidated financial statements for the year ended December 31, 2014.  BDO’s report for the year ended December 31, 2013, did not contain an adverse opinion or disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principles.
 
On May 25, 2016, the Rimini Street audit committee dismissed BDO as the independent auditor of Rimini Street and engaged KPMG LLP as the independent auditor of Rimini Street commencing with work to be performed in relation to the audit of Rimini Street for the year ended December 31, 2014.  In addition, the Rimini Street audit committee engaged KPMG LLP to audit the consolidated financial statements of Rimini Street for the year ended December 31, 2015 and for the year ended December 31, 2016.
 
During the period in which BDO served as the independent auditor of Rimini Street, there were no disagreements between BDO and Rimini Street on any matter of accounting principles or practices, financial statements disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of BDO, would have caused BDO to make reference to such disagreements in the firm’s reports on the financial statements of Rimini Street for such periods.  In addition, no reportable events, as defined in Item 304(a)(1)(v) of Regulation S-K, occurred during Rimini Street’s two most recent fiscal years or the interim period preceding the dismissal of BDO.
 
Rimini Street has provided BDO with a copy of the foregoing disclosure and has requested that BDO furnish Rimini Street with a letter addressed to the SEC stating whether or not BDO agrees with the above statements and, if not, stating the respects in which it does not agree.  A copy of the letter from BDO, in which BDO agrees with the above statements, is filed as an exhibit to the registration statement of which this joint proxy statement/prospectus forms part.
 





Exhibit 21.1
SUBSIDIARIES OF RIMINI STREET, INC.

Name of Subsidiary
Jurisdiction of Organization
   
RSI International Holdings, Inc.
Delaware
   
RSI International Holdings, LLC
Delaware
   
Rimini Street Australia Pty Limited
Australia
   
Rimini Street GmbH
Germany
   
Nihon Rimini Street KK
Japan
   
Rimini Street (HK) Ltd.
Hong Kong
   
Rimini Street Ltd.
United Kingdom
   
Rimini Street AB
Sweden
   
Rimini Street Israel, Ltd.
Israel
   
Rimini Street Brazil Technical Services Ltda.
Brazil
   
Rimini Street India Operations Pvt. Ltd.
India
   
Rimini Street Korea, Inc.
Korea
   
Rimini Street Taiwan
Taiwan



Exhibit 23.1

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM’S CONSENT — MARCUM LLP

We consent to the inclusion in this Registration Statement of GP Investments Acquisition Corp. on Form S-4, of our report dated March 16, 2017 with respect to our audits of the financial statements of GP Investments Acquisition Corp. as of December 31, 2016 and 2015 and for the year ended December 31, 2016 and for the period from January 28, 2015, (inception) through December 31, 2015, which report appears in the Joint Proxy Statement/Prospectus, which is part of this Registration Statement. We also consent to the reference to our Firm under the heading “Experts” in such Proxy Statement/Prospectus.

/s/ Marcum LLP
 
Marcum LLP
 
New York, NY
 
June 30, 2017
 





Exhibit 23.2

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM — KPMG LLP

The Board of Directors
Rimini Street, Inc. and Subsidiaries

We consent to the use of our report dated June 30, 2017, with respect to the consolidated balance sheets of Rimini Street, Inc. and Subsidiaries as of December 31, 2016 and 2015, and the related consolidated statements of operations and comprehensive loss, stockholders’ deficit and cash flows for each of the years in the three-year period ended December 31, 2016, included herein and to the reference to our firm under the heading “Experts” in the prospectus.

/s/ KPMG LLP

San Francisco, California
June 30, 2017