Brencourt Advisors, LLC New York, NY 10022 June 20, 2007
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12 of 21
EXHIBIT
2
Brencourt
Advisors, LLC
000
Xxxxxxxxx Xxxxxx, 0xx Xxxxx
Xxx
Xxxx, XX 00000
June
20,
2007
Xxxxxx
X.
Xxxxx
Xxxxx
X.
Xxxxxxxxxxx
000
Xxxxxxxx Xxxxxx
Xxxxxxxxx,
XX 00000
Gentlemen:
This
Letter Agreement confirms the (i) agreement by Brencourt Advisors, LLC
(“Brencourt”) to purchase for the account and on behalf of one or more funds
managed by Brencourt (collectively, the “Purchasers”) an aggregate of 1,807,021
shares (the “Shares”) of common stock, par value $.01 per share (the “Common
Stock”) of Vertrue Incorporated, a Delaware corporation (the “Company”) (CUSIP #
00000X000) from you and certain accounts managed by you (collectively, the
“Sellers”) for a fixed price of $48.90 per Share (subject to adjustment as
provided below), resulting in an aggregate purchase price of $88,363,326.90,
and
(ii) the agreement by you to sell for the account and on behalf of Sellers
the
Shares to the Purchasers for such price, in each case subject to the terms
and
conditions hereof. Such purchase price per Share shall be adjusted so that,
for
each day that the Closing occurs prior to July 10, 2007, the price per Share
shall be reduced by $0.007, and for each day that the Closing occurs after
July
10, 2007, the price per Share shall be increased by $0.007 (for example, a
closing on July 6, 2007 would result in a purchase price per Share of $48.872;
and a closing on July 11, 2007 would result in a purchase price per Share of
$48.907.
1. Closing.
The
closing of such purchase and sale (the “Closing”) shall occur on the second
business day after receipt by Brencourt and/or the Purchasers of notice of
the
termination of the applicable waiting period under the Xxxx-Xxxxx-Xxxxxx
Antitrust Improvements Act of 1976 (the “HSR Act”), or the expiration of the
waiting period thereunder. The aggregate purchase price for the Shares shall
be
paid by wire transfer by the Purchasers on the date of the closing to such
accounts as you shall have specified in writing.
2. Representations
and Warranties.
(a) Brencourt
represents and warrants to you, and you represent and warrant to Brencourt,
that
such party is duly authorized to execute, deliver and perform its obligations
hereunder and that such execution, delivery and performance do not and will
not
conflict with or constitute a breach of any law, regulation or contract binding
on such party. Brencourt represents and warrants that it has all necessary
power
and authority to act on behalf of and to bind the Purchasers to purchase the
Shares and fulfill all the obligations of Purchasers contemplated by this
Agreement, and that the Purchasers presently have and will have at the time
of
Closing sufficient funds to pay the full cash aggregate purchase price. You
represent and warrant that you have all necessary power and authority to act
on
behalf of and to bind the Sellers to sell the Shares and fulfill all the
obligations of Sellers contemplated by this Agreement.
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(b) You
represent that the Sellers own all of the Shares free and clear of any lien,
claim or circumstance, except for any that will be released or satisfied upon
the sale to the Purchasers hereunder.
3. Voting
Agreement.
(a) Agreement
to Vote.
Subject to Section 7 of this Agreement, effective on the date hereof, you agree
that at any meeting of the stockholders of the Company (a “Company
Stockholders’ Meeting”),
for which a Seller is a record holder of any of the Shares and at every
adjournment or postponement thereof, or in any other circumstances upon which
a
vote, consent, or other approval (including by written consent) is sought,
the
Sellers shall—
(i) when
a
meeting is held, appear at such meeting or otherwise cause the Shares to be
counted as present thereat for purposes of establishing a quorum,
(ii) vote,
or
execute consents in respect of the Shares, or cause the Shares to be voted,
or
consents to be executed in respect thereof, in respect of the Agreement and
Plan
of Merger (the “Merger Agreement”) between the Company and Velo Holdings Inc.
and Velo Acquisition Inc. (including any revised or amended Merger Agreement
approved by the board of directors of the Company), as Brencourt may direct
in
writing, and
(iii) vote,
or
execute consents in respect of the Shares to be voted, or consents to be
executed in respect thereof, as Brencourt may direct in writing, in respect
of
(A) any agreement or transaction relating to an Acquisition Proposal (as defined
in the Merger Agreement) or transaction or occurrence that if proposed and
offered to the Company or its stockholders (or any of them) would constitute
an
Acquisition Proposal or (B) any extraordinary corporate transaction (other
than
the Merger), or any amendment of the Company’s Certificate of Incorporation or
Bylaws or other proposal, action or transaction involving the Company or any
of
the Company Subsidiaries or any of its stockholders, and
(iv) vote,
or
execute consents in respect of the Shares to be voted, or consents to be
executed in respect thereof, as Brencourt may direct in writing, in respect
of
any other matter that may be presented to the stockholders of the Company for
which the Sellers are the record holders of the Shares.
(b) Appointment
of Proxy.
Subject
to Section 7 of this Agreement, you hereby irrevocably (to
the
fullest extent permitted by law) constitute and appoint Xxxx Xxxxxxxxxxx and
Xxxxxxx Xxxxxxx, each of them individually, as the Sellers’ proxy and
attorney-in-fact, with full power of substitution and resubstitution, to cause
the Shares to be counted as present at any such Company Stockholders’ Meetings
and to vote the Shares at any Company Stockholders’ Meeting, however called, and
to execute consents in respect of the Shares as and to the extent provided
in
Section (a) hereof.
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(c) Revocation
of Other Proxies.
You
represent that any proxies heretofore given in respect of the Shares, if any,
are revocable, and hereby revoke all other proxies and powers of attorney with
respect to the Shares that the Sellers may have heretofore appointed or granted,
and no subsequent proxy or power of attorney shall be granted.
(d) Proxy
Irrevocable.
You
acknowledge that Purchasers are relying on this Agreement in purchasing the
Shares. ACCORDINGLY, SUBJECT TO SECTION 7 OF THIS AGREEMENT, THIS PROXY AND
POWER OF ATTORNEY IS IRREVOCABLE (TO
THE
FULLEST EXTENT PERMITTED BY LAW) AND COUPLED WITH AN INTEREST. Except as
otherwise required by law in the case of Shares beneficially owned by Sellers
who are natural persons (other than yourselves), this irrevocable proxy shall
not be terminated by any act of the Sellers (subject to Section 7 of this
Agreement) or by operation of law, whether by the death or incapacity of the
Sellers or by the occurrence of any other event or events (including, without
limiting the foregoing, the termination of any trust or estate for which either
of you is acting as a fiduciary or fiduciaries or the dissolution or liquidation
of any corporation or partnership). If after the execution hereof any Seller
should be dissolved or liquidated, actions taken by the Purchasers hereunder
shall be as valid as if such dissolution, liquidation or other event or events
had not occurred, regardless of whether or not the Purchasers have received
any
notice of such dissolution, liquidation or other event.
(e) No
Transfer of Rights.
Except
as otherwise provided in Section 5 of this Agreement with respect to the Merger,
the Sellers shall not: (i) enter into any tender, voting, or other such
agreement, or grant any proxy, power-of-attorney or other authorization or
consent with respect to any of the Shares; or (ii) take any other action that
would in any way restrict, limit or interfere with the performance of its
obligations hereunder or the transactions contemplated hereby or make any
representation or warranty of the Sellers untrue or incorrect. Except
as
contemplated by this Agreement, the Sellers will not enter into any voting
or
other agreement or grant any power of attorney with respect to the Shares,
or
take any action that is
inconsistent with this Agreement.
4. HSR
Filing.
Brencourt and Purchasers shall use their best efforts to prepare and file a
Notification and Report Form with the United States Federal Trade Commission
and
the Antitrust Division of the United States Department of Justice no later
than
two business days after the date of this Agreement, and to take all further
actions as may be required to obtain the early termination of the waiting period
under the HSR Act or the earliest possible expiration of the waiting period
thereunder. Brencourt and Purchasers shall be solely responsible for all
applicable costs and expenses, including the filing fee.
5. Additional
Purchasers’ Obligations.
If, for
any reason other than as a result of a material breach by you under this
Agreement, the Closing of the purchase and sale of the Shares under this
Agreement does not occur prior to the closing of the Merger (as defined in
the
Merger Agreement and any amendments to the Merger Agreement), the Purchasers
shall be obligated to pay you the amount of $0.25 per Share, or an aggregate
payment of $451,755.25, which payment shall be made by wire transfer by the
Purchasers to such accounts as you shall have specified in writing and shall
be
paid no later than two business days after the closing of the Merger. In such
case where the Closing of the purchase and sale of the Shares under this
Agreement does not occur prior to the closing of the Merger, Sellers shall
retain all rights that they have with respect to their Shares under the Merger
Agreement, and the parties shall have no further obligations under this
Agreement other than Purchasers’ obligation to make the payment of
$451,755.25.
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6. Miscellaneous.
Brencourt’s and Purchasers’ obligations under this Agreement shall not be
excused if, for any reason, you are unable to perform your obligations with
respect to all of the Shares, provided that you perform your obligations with
respect to a minimum of 1,500,000 Shares. In any such case, neither you nor
any
Seller shall have any liability under this Agreement, and the parties shall
enter into an appropriate amendment to this Agreement so that the provisions
of
this Agreement only shall apply to the Shares for which and the Sellers for
whom
you are able to perform the obligations under this Agreement.
7. Termination.
You may
terminate this Agreement if the Closing shall not have occurred on or prior
to
July 31, 2007, other than as a result of a breach by you of your obligations
under this Agreement. In the event of a termination of this Agreement, the
voting agreement and proxy provided in Section 3 of this Agreement shall
likewise terminate.
[Signature
Page Follows]
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If
the
foregoing accurately states our agreement, please sign and return a copy hereof,
at which time this will become a mutually binding agreement.
Very
truly yours,
BRENCOURT
ADVISORS, LLC
By:
/s/
Xxxxxxx Xxxxxx
Name: Xxxxxxx Xxxxxx
Title: Chief Financial Officer
Name: Xxxxxxx Xxxxxx
Title: Chief Financial Officer
/s/
Xxxxxx X. Xxxxx
Xxxxxx
X.
Xxxxx
/s/
Xxxxx X. Xxxxxxxxxxx
Xxxxx
X.
Xxxxxxxxxxx