NON-TENDER AND SUPPORT AGREEMENT
Exhibit
(e)(8)
THIS NON-TENDER AND SUPPORT AGREEMENT (this “Agreement”) dated as of July 22, 2009, is
by and among BEN HOLDINGS, INC., a Delaware Corporation (“Parent”), BEN MERGER SUB, INC., a
Florida corporation and a wholly owned subsidiary of Parent (“Merger Sub”) and Xxxxx
Xxxxxxxxxxx Xxxxx; Xxxxxx X. Xxxxx, Xxxxxx X. Xxxxx Revocable Trust; Xxxxx X. Xxxxx 2008 Annuity
Trust; Xxxxx X. Xxxxx 2007 Annuity Trust; Xxxxx X. Xxxxx Remainder Trust FBO Xxxx X. Xxxxx; Xxxxx
X. Xxxxx Remainder Trust FBO Xxxx X. Xxxxxx; and Xxxxx X. Xxxxx Remainder Trust FBO Xxxx X. Xxxxx
(collectively, the “Xxxxx Parties”).
WHEREAS, Parent, Merger Sub and Bankrate, Inc., a Florida corporation (the “Company”)
propose to enter into an Agreement and Plan of Merger, dated as of or after the date hereof (the
“Merger Agreement”), which provides, among other things, for Merger Sub to conduct a tender
offer for all of the issued and outstanding shares of Common Stock (as defined below) of the
Company (the “Offer”) and the merger of Merger Sub with and into the Company, with the
Company continuing as the surviving corporation (the “Merger”), upon the terms and subject
to the conditions set forth in the Merger Agreement (capitalized terms used herein without
definition shall have the respective meanings specified in the Merger Agreement);
WHEREAS, the Xxxxx Parties, Parent and Merger Sub are executing this agreement prior to the
execution of the Merger Agreement;
WHEREAS, the Xxxxx Parties own shares of common stock, par value $0.01 per share, of the
Company (the “Common Stock”, which for the avoidance of doubt, shall include Company
Restricted Shares) and shares subject to Company Stock Options (such shares of Common Stock,
together with any other shares of capital stock of the Company acquired (whether beneficially or of
record) by the Xxxxx Parties after the date hereof and prior to the earlier of the Effective Time
and the termination of all of the Xxxxx Parties’ obligations under this Agreement, including any
shares of Common Stock acquired by means of purchase, dividend or distribution, or issued upon the
exercise of any Company Stock Options or warrants or the conversion of any convertible securities
or otherwise, being collectively referred to herein as the “Securities”);
WHEREAS, the Xxxxx Parties have agreed to accept as consideration for certain Securities,
securities of Parent (and/or an Affiliate of Parent) in accordance with the terms and conditions
set forth on Annex A attached hereto, which is subject to the non-exclusive safe harbor
(the “Safe Harbor”) of Rule 14d-10(a)(2) of the Exchange Act (the “Best Price
Rule”);
WHEREAS, in addition to complying with the Safe Harbor, in order to ensure that the Xxxxx
Parties’ agreement to accept securities of Parent (and/or an Affiliate of Parent) as consideration
for certain Securities in accordance with the terms and conditions set forth on Annex A
attached hereto will not cause the Offer to fail to comply with the Best Price Rule, Parent has
required the Xxxxx Parties to agree (a) not to tender Securities into the Offer and (b) not to have
any Securities cashed out at the Acceptance Time, other than in accordance with the terms and
conditions of definitive documents relating to the treatment of Securities in accordance with the
terms and conditions of Annex A;
WHEREAS, receipt of shareholder approval is a condition to the consummation of the Merger; and
WHEREAS, as a condition to the willingness of Parent and Merger Sub to enter into the Merger
Agreement and as an inducement and in consideration therefor, the Xxxxx Parties have agreed to
enter into this Agreement.
NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and agreements set
forth herein, and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:
ARTICLE I
NON-TENDER OF THE SECURITIES
NON-TENDER OF THE SECURITIES
Section 1.1 Non-Tender of the Securities. Each Xxxxx Party hereby agrees that it shall
not, directly or indirectly, tender any of its Securities into the Offer, including any “subsequent
offering period” in accordance with Rule 14d-11 promulgated under the Exchange Act, in any manner,
or enter into any agreement, transaction or arrangement that results in such Securities being
tendered into the Offer, including any “subsequent offering period” in accordance with Rule 14d-11
promulgated under the Exchange Act.
Section 1.2 Rule 14e-5. Each Xxxxx Party covenants to comply in all respects with
Rule 14e-5 promulgated under the Exchange Act (notwithstanding whether it would be subject to the
terms of such Rule pursuant to its terms).
Section 1.3 Non-Cash Out of Company Stock Options or Company Restricted Shares.
Notwithstanding any right any of the Xxxxx Parties may have under the Company Stock Plans, or any
treatment afforded any other holder of Company Stock Options or Company Restricted Shares triggered
by the Acceptance Time, each Xxxxx Party acknowledges and agrees that its Securities shall not vest
and shall not be cashed out other than in accordance with the terms and conditions of the
definitive documentation relating to the treatment of such Xxxxx Party’s Securities in accordance
with the terms and conditions of Annex A.
ARTICLE II
VOTING; GRANT AND APPOINTMENT OF PROXY
VOTING; GRANT AND APPOINTMENT OF PROXY
Section 2.1 Voting. From and after the date hereof until the earlier of (a) the
Acceptance Time and (b) the termination of the Merger Agreement pursuant to and in compliance with
the terms therein, each of the Xxxxx Parties irrevocably and unconditionally hereby agrees that at
any meeting (whether annual or special and each adjourned or postponed meeting) of the Company’s
shareholders, however called, or in connection with any written consent of the Company’s
shareholders, each Xxxxx Party will (i) appear at such meeting or otherwise cause its Covered
Securities (as defined below) to be counted as present thereat for purposes of calculating a quorum
and (ii) vote or cause to be voted (including by proxy or written consent, if applicable) all of
such Xxxxx Party’s Securities beneficially owned or controlled by such Xxxxx Party as of the
relevant time, other than any of such Xxxxx Party’s Company Stock Options or Company Restricted
Stock for which such Xxxxx Party does not have
2
the right to vote under the Company Stock Plans, (with respect to each Xxxxx Party, the
“Covered Securities”), without regard to any Adverse Recommendation Change,
(a) for approval and adoption of the Merger Agreement and the transactions contemplated by the
Merger Agreement,
(b) against any Alternative Proposal, without regard to the terms of such Alternative
Proposal, or any other transaction, proposal, agreement or action made in opposition to adoption of
the Merger Agreement or in competition or inconsistent with the Merger and the other transactions
contemplated by the Merger Agreement,
(c) against any other action, agreement or transaction, that is intended, that could
reasonably be expected, or the effect of which could reasonably be expected, to materially impede,
interfere with, delay, postpone, discourage or adversely affect the Offer, the Merger or any of the
other transactions contemplated by the Merger Agreement or this Agreement or the performance by
such Xxxxx Party of its obligations under this Agreement, including, without limitation: (i) any
extraordinary corporate transaction, such as a merger, consolidation or other business combination
involving the Company or its Subsidiaries (other than the Offer and the Merger); (ii) a sale, lease
or transfer of a material amount of assets of the Company or any of its Subsidiaries or a
reorganization, recapitalization or liquidation of the Company or any of its Subsidiaries; (iii) an
election of new members to the board of directors of the Company, other than nominees to the board
of directors of the Company who are serving as directors of the Company on the date of this
Agreement or as otherwise provided in the Merger Agreement; (iv) any material change in the present
capitalization or dividend policy of the Company or any amendment or other change to the Company’s
articles of incorporation or bylaws, except if approved in writing by Parent; or (v) any other
material change in the Company’s corporate structure or business, except if approved in writing by
Parent,
(d) against any action, proposal, transaction or agreement that would reasonably be expected
to result in a breach in any respect of any covenant, representation or warranty or any other
obligation or agreement of the Company contained in the Merger Agreement, or of such Xxxxx Party
contained in this Agreement, and
(e) in favor of any other matter necessary to the consummation of the transactions
contemplated by the Merger Agreement, including the Offer.
Section 2.2 Grant of Irrevocable Proxy; Appointment of Proxy.
2.2.1 From and after the Acceptance Time until the earlier of (a) the consummation of the
Merger and (b) the termination of the Merger Agreement pursuant to and in compliance with the terms
therein (such earliest time, the “Expiration Time”), each Xxxxx Party hereby irrevocably
and unconditionally grants to, and appoints, Parent and any designee thereof, such Xxxxx Party’s
proxy and attorney-in-fact (with full power of substitution), for and in the name, place and stead
of the Xxxxx Parties, to vote or cause to be voted (including by proxy or written consent, if
applicable) its Covered Securities, without regard to any Adverse Recommendation Change,
3
(a) for approval and adoption of the Merger Agreement and the transactions contemplated by the
Merger Agreement,
(b) against any Alternative Proposal, without regard to the terms of such Alternative
Proposal, or any other transaction, proposal, agreement or action made in opposition to adoption of
the Merger Agreement or in competition or inconsistent with the Merger and the other transactions
contemplated by the Merger Agreement,
(c) against any other action, agreement or transaction, that is intended, that could
reasonably be expected, or the effect of which could reasonably be expected, to materially impede,
interfere with, delay, postpone, discourage or adversely affect the Merger or any of the other
transactions contemplated by the Merger Agreement or this Agreement or the performance by each
Xxxxx Party of its obligations under this Agreement, including, without limitation: (i) any
extraordinary corporate transaction, such as a merger, consolidation or other business combination
involving the Company or its Subsidiaries (other than the Merger); (ii) a sale, lease or transfer
of a material amount of assets of the Company or any of its Subsidiaries or a reorganization,
recapitalization or liquidation of the Company or any of its Subsidiaries; (iii) an election of new
members to the board of directors of the Company, other than nominees to the board of directors of
the Company who are serving as directors of the Company on the date of this Agreement or as
otherwise provided in the Merger Agreement; (iv) any material change in the present capitalization
or dividend policy of the Company or any amendment or other change to the Company’s articles of
incorporation or bylaws, except if approved in writing by Parent; or (v) any other material change
in the Company’s corporate structure or business, except if approved in writing by Parent,
(d) against any action, proposal, transaction or agreement that would reasonably be expected
to result in a breach in any respect of any covenant, representation or warranty or any other
obligation or agreement of the Company contained in the Merger Agreement, or of such Xxxxx Party
contained in this Agreement, and
(e) in favor of any other matter necessary to the consummation of the transactions
contemplated by the Merger Agreement.
2.2.2 Each of the Xxxxx Parties hereby represents that any proxies heretofore given in respect
of each such Xxxxx Party’s Securities, if any, are revocable, and hereby revokes such proxies.
2.2.3 Each of the Xxxxx Parties hereby affirms that the irrevocable proxy set forth in this
Section 2.2 is given in connection with the execution of the Merger Agreement, and that
such irrevocable proxy is given to secure the performance of the duties of such Xxxxx Party under
this Agreement. Each of the Xxxxx Parties hereby further affirms that the irrevocable proxy is
coupled with an interest and, except as set forth in this Section 2.2, is intended to be
irrevocable. If for any reason the proxy granted herein is not irrevocable, then each of the Xxxxx
Parties agrees to vote its Covered Securities in accordance with Section 2.2.1(a) through
Section 2.2.1(e) above as instructed by Parent in writing. The parties agree that the
foregoing is a voting agreement.
4
Section 2.3 Restrictions on Transfers. Except as provided for in the term sheet
attached hereto as Annex A or as pursuant to the Merger Agreement, each of the Xxxxx
Parties hereby agrees that, from the date hereof until the consummation of the Merger, it shall
not, directly or indirectly, (a) sell, transfer, assign, tender in any tender or exchange offer,
pledge, encumber, hypothecate or similarly dispose of (by merger, by testamentary disposition, by
operation of law or otherwise), either voluntarily or involuntarily, or to enter into any contract,
option or other arrangement or understanding with respect to the sale, transfer, assignment,
pledge, Lien, hypothecation or similar disposition of (by merger, by testamentary disposition, by
operation of law or otherwise), any Securities, except in connection with cashless exercises or
similar transactions (including, in respect of tax withholding) pursuant to the exercise of the
Company Stock Options or settlement of other awards or obligations outstanding as of the date
hereof, (b) deposit any Securities into a voting trust or enter into a voting agreement or
arrangement or grant any proxy or power of attorney with respect thereto that is inconsistent with
this Agreement, or (c) agree (whether or not in writing) to take any of the actions referred to in
the foregoing clause (a) or (b).
Section 2.4 Inconsistent Agreements. Each of the Xxxxx Parties hereby covenants and
agrees that, except for this Agreement, it (a) has not entered into, and shall not enter into at
any time while this Agreement remains in effect, any voting agreement or voting trust with respect
to its Covered Securities and (b) has not granted, and shall not grant at any time while this
Agreement remains in effect, a proxy, consent or power of attorney with respect to its Covered
Securities.
ARTICLE III
NO SOLICITATION
NO SOLICITATION
Section 3.1 Restricted Activities. Prior to the Expiration Time, each of the Xxxxx
Parties in its capacity as a shareholder of the Company shall not, and shall use his reasonable
best efforts to cause his officers, directors, employees, agents, advisors and other
representatives (in each case, acting in their capacity as such to such Xxxxx Party, in such Xxxxx
Party’s capacity as a shareholder, (the “Xxxxx Parties’ Representatives”) not to, directly
or indirectly: (a) initiate, solicit, propose, encourage or knowingly facilitate (including by
providing information) any inquiries, proposals or offers with respect to, or the making or
completion of, an Alternative Proposal or offer that would reasonably be expected to lead to an
Alternative Proposal, (b) engage, continue or participate in any negotiations concerning, or
provide or cause to be provided any non-public information or data relating to the Company or any
of its Subsidiaries in connection with, or have any discussions (other than to state that they are
not permitted to have discussions) with any person relating to, an actual or proposed Alternative
Proposal or offer that would reasonably be expected to lead to an Alternative Proposal, or
otherwise knowingly facilitate any effort or attempt to make or implement an Alternative Proposal
or offer that would reasonably be expected to lead to an Alternative Proposal, (c) to the extent
permitted by applicable Law, grant any waiver, amendment or release under any standstill or
confidentiality agreement or Takeover Statutes, or otherwise knowingly facilitate any effort or
attempt by any person to make an Alternative Proposal (including providing consent or authorization
to make an Alternative Proposal to any officer or employee of the Company or to the Board (or any
member thereof) pursuant to any Existing Confidentiality Agreement), (d) approve, endorse or
recommend, or propose to approve, endorse or recommend, or execute or
5
enter into, any letter of intent, agreement in principle, merger agreement, acquisition
agreement, option agreement or other similar agreement relating to any Alternative Proposal or
offer that would reasonably be expected to lead to an Alternative Proposal, or (e) resolve to
propose or agree to do any of the foregoing (the activities specified in clauses (a) through (e)
being hereinafter referred to as the “Restricted Activities”); provided, however, that if
the Company is engaging in Restricted Activities that such Xxxxx Party reasonably believes are in
compliance with the provisions of the Merger Agreement, such Xxxxx Party and its Representatives
may participate with the Company in such Restricted Activities.
Section 3.2 Notification. Each of the Xxxxx Parties, in its capacity as a shareholder
of the Company, shall and shall use its reasonable best efforts, in its capacity as a shareholder
of the Company, to cause such Xxxxx Party’s Representatives to, immediately cease and cause to be
terminated any discussions or negotiations with any parties that may have been conducted heretofore
with respect to an Alternative Proposal. From and after the date hereof until the Expiration Time,
each Xxxxx Party shall promptly advise Parent orally (and in any event within 48 hours) and
subsequently in writing of (x) any Alternative Proposal it receives in its capacity as a
shareholder of the Company, (y) any request it receives in its capacity as a shareholder of the
Company for non-public information relating to the Company or its Subsidiaries, other than requests
for information not reasonably expected to be related to an Alternative Proposal, and (z) any
inquiry or request for discussion or negotiation it receives in its capacity as a shareholder of
the Company regarding an Alternative Proposal, including in each case the identity of the person
making any such Alternative Proposal or indication or inquiry and the material terms of any such
Alternative Proposal or indication or inquiry (including, if applicable, copies of any written
requests, proposals or offers, including proposed agreements). Each of the Xxxxx Parties, in its
capacity as a shareholder of the Company, shall keep Parent reasonably informed on a reasonably
current basis of the status and terms (including any material changes to the terms thereof) of any
such Alternative Proposal or indication or inquiry (including, if applicable, any revised copies of
written requests, proposals and offers) and the status of any such discussions or negotiations.
This Section 3.2 shall not apply to any Alternative Proposal received by the Company. Each
of the Xxxxx Parties’ receipt, in its capacity as a shareholder of the Company, of any Alternative
Proposal shall not relieve such Xxxxx Party from any of its obligations hereunder.
Section 3.3 Capacity. Each of the Xxxxx Parties are signing this Agreement solely in
its capacity as a shareholder of the Company and nothing contained herein shall in any way limit or
affect any actions taken by any of the Xxxxx Parties, or any trustee of any of the Xxxxx Parties,
in its capacity as an officer or director of the Company, and no action taken in any such capacity
as an officer or director shall be deemed to constitute a breach of this Agreement.
ARTICLE IV
REPRESENTATIONS, WARRANTIES AND COVENANTS
OF THE XXXXX PARTIES
REPRESENTATIONS, WARRANTIES AND COVENANTS
OF THE XXXXX PARTIES
Section 4.1 Representations and Warranties. Each of the Xxxxx Parties represents and
warrants to Parent and Merger Sub as follows: (a) such Xxxxx Party has full legal right and
capacity to execute and deliver this Agreement, to perform such Xxxxx Party’s obligations hereunder
and to consummate the transactions contemplated hereby, (b) this Agreement has been
6
duly executed and delivered by such Xxxxx Party and the execution, delivery and performance of
this Agreement by such Xxxxx Party and the consummation of the transactions contemplated hereby
have been duly authorized by all necessary action on the part of such Xxxxx Party and no other
actions or proceedings on the part of such Xxxxx Party are necessary to authorize this Agreement or
to consummate the transactions contemplated hereby, (c) assuming this Agreement constitutes the
valid and binding agreement of Parent and Merger Sub, this Agreement constitutes the valid and
binding agreement of such Xxxxx Party, enforceable against such Xxxxx
Party in accordance with its
terms, (d) the execution and delivery of this Agreement by such Xxxxx Party does not, and the
consummation of the transactions contemplated hereby and the compliance with the provisions hereof
will not, conflict with or violate any Law or agreement binding upon such Xxxxx Party or such Xxxxx
Party’s Securities, nor require any authorization, consent or approval of, or filing with, any
Governmental Entity, except for filings with the Securities and Exchange Commission by such Xxxxx
Party, and (e) except for such transfer restrictions of general applicability as may be provided
under the Securities Act of 1933, as amended, and the “blue sky” laws of the various states of the
United States, such Xxxxx Party owns, beneficially and of record, or controls all of its Securities
(and any additional Securities acquired by it after the date hereof) free and clear of any proxy,
voting restriction, adverse claim or other Lien (other than any restrictions created by this
Agreement) and has sole voting power with respect to its Covered Securities and sole power of
disposition with respect to all of such Xxxxx Party’s Securities, other than any of such Xxxxx
Party’s Company Stock Options or Company Restricted Stock which such Xxxxx Party does not have the
right to dispose of under the Company Stock Plans, with no restrictions on such Xxxxx Party’s
rights of voting or disposition pertaining thereto and no person other than such Xxxxx Party has
any right to direct or approve the voting or disposition of any of such Xxxxx Party’s Securities.
Section 4.2 Covenants. Each of the Xxxxx Parties hereby:
(a) agrees, prior to the Expiration Time, not to take any action that would make any
representation or warranty of such Xxxxx Party contained herein untrue or incorrect or have or
would reasonably be expected to have the effect of preventing, impeding or interfering with or
adversely affecting the performance by such Xxxxx Party of their obligations under this Agreement;
(b) irrevocably waives, and agrees not to exercise, any rights of appraisal or rights of
dissent from the Merger that such Xxxxx Party may have with respect to such Xxxxx Party’s
Securities;
(c) agrees to promptly notify the Company, Parent and Merger Sub of the number of any new
Securities acquired by such Xxxxx Party after the date hereof and prior to the Expiration Time.
Any such Securities shall be subject to the terms of this Agreement as though owned by such Xxxxx
Party on the date hereof;
(d) agrees to permit Parent and Merger Sub to publish and disclose in the Offer Documents and,
if approval of the shareholders of the Company is required under applicable law, the Company Proxy
Statement, such Xxxxx Party’s identity and ownership of Common Stock and the nature of the such
Xxxxx Party’s commitments, arrangements and understandings under this Agreement;
7
(e) shall and does authorize the Company or its counsel to, notify the Company’s transfer
agent that there is a stop transfer order with respect to all of its Securities (and that this
Agreement places limits on the voting and transfer of such shares); and
(f) agrees that, upon request of Parent or Merger Sub, such Xxxxx Party shall execute and
deliver any additional documents and take such further actions with respect to its Securities as
may reasonably be deemed by Parent or Merger Sub to be necessary or desirable to carry out the
provisions of this Agreement.
Section 4.3
Investment. The Xxxxx Parties commit, at the Effective Time, to collectively
invest in securities of Parent (and/or an Affiliate of Parent), in accordance with the terms and
conditions set forth on Annex A attached hereto and pursuant to definitive documents as
described in Annex A, the terms of which are consistent with such terms and conditions, to
be executed by the Xxxxx Parties and Parent (and/or an Affiliate of Parent) prior to the Acceptance
Time, an amount between 30-50% of the after tax value of the Xxxxx Parties’ aggregate current
equity holdings into the Company, valued for this purpose using the Offer Price (the “Rollover
Amount”).
ARTICLE V
REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
Section 5.1 Representations and Warranties of Parent and Merger Sub. Each of Parent
and Merger Sub hereby, jointly and severally, represents and warrants to the Xxxxx Parties as
follows: (a) this Agreement has been duly and validly authorized by each of Parent’s and Merger
Sub’s respective board of directors, (b) this Agreement has been duly executed and delivered by a
duly authorized officer or other representative of each of Parent and Merger Sub, (c) assuming this
Agreement constitutes a valid and binding agreement of the Xxxxx Parties and Parent or Merger Sub,
as applicable, this Agreement constitutes a valid and binding agreement of Merger Sub or Parent, as
applicable, enforceable against Merger Sub or Parent, as applicable, in accordance with its terms
and (d) the execution and delivery of this Agreement by Parent and Merger Sub does not, and the
consummation of the transactions contemplated hereby and the compliance with the provisions hereof
will not, conflict with or violate any Law or agreement or organizational documents binding upon
Parent or Merger Sub, nor require any authorization, consent or approval of, or filing with, any
Governmental Entity, except for the Parent Approvals.
ARTICLE VI
TERMINATION
TERMINATION
This Agreement shall terminate and be of no further force or effect (i) upon the earlier to
occur of (A) the Closing and (B) the date of termination of the Merger Agreement in accordance with
its terms or (ii) within five (5) calendar days from the date of this Agreement should the Merger
Agreement not be executed by all of the parties thereto. Notwithstanding the preceding sentence,
this Article VI and Article VII shall survive any termination of this Agreement.
Nothing in this Article VI shall relieve or otherwise limit any party of liability for
willful breach of this Agreement.
8
ARTICLE VII
MISCELLANEOUS
MISCELLANEOUS
Section 7.1 Expenses. Except as otherwise may be agreed in writing, all costs, fees
and expenses incurred in connection with this Agreement and the transactions contemplated hereby
shall be paid by the party incurring or required to incur such costs, fees and expenses.
Section 7.2 Notices. Any notice required to be given hereunder shall be sufficient if
in writing, and sent by facsimile transmission (provided that any notice received by
facsimile transmission or otherwise at the addressee’s location on any Business Day after 5:00 p.m.
(addressee’s local time) shall be deemed to have been received at 9:00 a.m. (addressee’s local
time) on the next Business Day), by reliable overnight delivery service (with proof of service),
hand delivery or certified or registered mail (return receipt requested and first-class postage
prepaid), addressed as follows:
To Parent or Merger Sub: | ||||||||
c/o BEN Holdings, Inc. | ||||||||
000 Xxxxxxxxx Xxxxxx | ||||||||
Xxx Xxxx, Xxx Xxxx 00000 | ||||||||
with copies to: | ||||||||
Xxxxxxxx & Xxxxx LLP | ||||||||
000 Xxxxxxxxx Xxxxxx | ||||||||
Xxx Xxxx, Xxx Xxxx 00000 | ||||||||
Telecopy: 000-000-0000 | ||||||||
Attention: | Xxxx X. Xxxxx | |||||||
Xxx Xxxxxx | ||||||||
Xxxxx X. Xxxxxxx | ||||||||
To any of the Xxxxx Parties: | ||||||||
with a copy to: | ||||||||
Wachtell, Lipton, Xxxxx & Xxxx | ||||||||
00 Xxxx 00xx Xxxxxx | ||||||||
Xxx Xxxx, XX 00000 | ||||||||
Telecopy: 212-403-2000 | ||||||||
Attention: | Xxxxxxxx X. Xxxxx | |||||||
Xxxxx X. Xxxxxxx |
or to such other address as any party shall specify by written notice so given, and such notice
9
shall be deemed to have been delivered as of the date so telecommunicated, personally delivered or
mailed. Any party to this Agreement may notify any other party of any changes to the address or
any of the other details specified in this Section 7.2; provided, however,
that such notification shall only be effective on the date specified in such notice or five (5)
Business Days after the notice is given, whichever is later. Rejection or other refusal to accept
or the inability to deliver because of changed address or facsimile of which no notice was given
shall be deemed to be receipt of the notice as of the date of such rejection, refusal or inability
to deliver.
Section 7.3 Amendments; Waivers. At any time prior to the Expiration Time, any
provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is
in writing and signed, in the case of an amendment, by the Xxxxx Parties, Parent and Merger Sub, or
in the case of a waiver, by the party against whom the waiver is to be effective. Notwithstanding
the foregoing, no failure or delay by the Company or Parent in exercising any right hereunder shall
operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or
further exercise of any other right hereunder.
Section 7.4 Assignment; Binding Effect. Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by any of the parties hereto (whether by
operation of Law or otherwise) without the prior written consent of the other parties, except that
Merger Sub may assign, in its sole discretion, any of or all of its rights, interest and
obligations under this Agreement to Parent or to any direct or indirect wholly owned subsidiary of
Parent, but no such assignment shall relieve Merger Sub of its obligations hereunder. Subject to
the preceding sentence, this Agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their respective successors and assigns. Parent shall cause Merger Sub, and any
assignee thereof, to perform its obligations under this Agreement and shall be responsible for any
failure of Merger Sub or such assignee to comply with any representation, warranty, covenant or
other provision of this Agreement.
Section 7.5 No Partnership, Agency, or Joint Venture. This Agreement is intended to
create, and creates, a contractual relationship and is not intended to create, and does not create,
any agency, partnership, joint venture or any like relationship between the parties hereto.
Section 7.6 Entire Agreement; Benefit. This Agreement (including the arrangements
pursuant to Annex A attached hereto) constitutes the entire agreement, and supersedes all
other prior agreements and understandings, both written and oral, between the parties, or any of
them, with respect to the subject matter hereof and thereof. This Agreement is not intended to
grant and does not grant standing to any person other than the parties. The representations and
warranties set forth herein and the covenants set forth herein have been made solely for the
benefit of the parties to this Agreement and (a) may be intended not as statements of fact, but
rather as a way of allocating the risk to one of the parties if those statements prove to be
inaccurate and (b) may apply standards of materiality in a way that is different from what may be
viewed as material by shareholders of, or other investors in, the Company.
Section 7.7 Severability. Any term or provision of this Agreement which is invalid or
unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is
10
so broad as to be unenforceable, such provision shall be interpreted to be only as broad as is
enforceable.
Section 7.8 Governing Law. This Agreement, and all claims or causes of action
(whether at Law, in contract or in tort) that may be based upon, arise out of or relate to this
Agreement, or the negotiation, execution or performance hereof, shall be governed by and construed
in accordance with the Laws of the State of Delaware, without giving effect to any choice or
conflict of Law provision or rule (whether of the State of Delaware or any other jurisdiction) that
would cause the application of the Laws of any jurisdiction other than the State of Delaware except
matters relating to the fiduciary duties of the Board and internal corporate affairs and the
Company shall be governed by the laws of the State of Florida.
Section 7.9 Jurisdiction; Enforcement. Each of the parties hereto irrevocably agrees
that any legal action or proceeding with respect to this Agreement and the rights and obligations
arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement
and the rights and obligations arising hereunder brought by the other party hereto or its
successors or assigns, shall be brought and determined exclusively in the Delaware Court of
Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware
Court of Chancery declines to accept jurisdiction over a particular matter, any state or federal
court within the State of Delaware). Each of the parties hereto hereby irrevocably submits with
regard to any such action or proceeding for itself and in respect of its property, generally and
unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not
bring any action relating to this Agreement or any of the transactions contemplated by this
Agreement in any court other than the aforesaid courts. Each of the parties hereto hereby
irrevocably waives, and agrees not to assert as a defense, counterclaim or otherwise, in any Action
or proceeding with respect to this Agreement, (a) any claim that it is not personally subject to
the jurisdiction of the above named courts for any reason other than the failure to serve in
accordance with this Section 7.9, (b) any claim that it or its property is exempt or immune
from jurisdiction of any such court or from any legal process commenced in such courts (whether
through service of notice, attachment prior to judgment, attachment in aid of execution of
judgment, execution of judgment or otherwise) and (c) to the fullest extent permitted by the
applicable Law, any claim that (i) the suit, action or proceeding in such court is brought in an
inconvenient forum, (ii) the venue of such suit, action or proceeding is improper or (iii) this
Agreement or the subject matter hereof may not be enforced in or by such courts. Each of the
parties hereto irrevocably consents to the service of process out of the Delaware Court of Chancery
and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of
Chancery declines to accept jurisdiction over a particular matter, any state or federal court
within the State of Delaware) in any such action or proceeding by the mailing of copies thereof by
registered mail, postage prepaid, to it its address set forth in Section 7.2 of this
Agreement, such service of process to be effective upon acknowledgment of receipt of such
registered mail. Nothing herein shall affect the right of any party to serve process in any other
manner permitted by applicable law.
Section 7.10 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING BETWEEN THE PARTIES HERETO ARISING OUT OF OR
RELATING TO THIS AGREEMENT.
11
Section 7.11 Remedies. The Xxxxx Parties acknowledge that monetary damages would not
be an adequate remedy in the event that any covenant or agreement in this Agreement is not
performed in accordance with its terms, and it is therefore agreed that, in addition to and without
limiting any other remedy or right it may have, Parent or Merger Sub will have the right to an
injunction, temporary restraining order or other equitable relief in any court of competent
jurisdiction enjoining any such breach and enforcing specifically the terms and provisions hereof.
The Xxxxx Parties agree not to oppose the granting of such relief in the event a court determines
that such a breach has occurred, and to waive any requirement for the securing or posting of any
bond in connection with such remedy. All rights, powers, and remedies provided under this
Agreement or otherwise available in respect hereof at law or in equity shall be cumulative and not
alternative, and the exercise or beginning of the exercise of any thereof by Parent or Merger Sub
shall not preclude the simultaneous or later exercise of any other such right, power or remedy by
such party.
Section 7.12 Headings. Headings of the Articles and Sections of this Agreement are
for convenience of the parties only and shall be given no substantive or interpretive effect
whatsoever. The table of contents to this Agreement is for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement.
Section 7.13 Interpretation. When a reference is made in this Agreement to an Article
or Section, such reference shall be to an Article or Section of this Agreement unless otherwise
indicated. Whenever the words “include,” “includes” or “including” are used in this Agreement,
they shall be deemed to be followed by the words “without limitation.” 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. The word “or”
shall be deemed to mean “and/or.” All terms defined in this Agreement shall have the defined
meanings when used in any certificate or other document made or delivered pursuant thereto unless
otherwise defined therein. The definitions contained in this Agreement are applicable to the
singular as well as the plural forms of such terms and to the masculine as well as to the feminine
and neuter genders of such term. Any agreement, instrument or statute defined or referred to
herein or in any agreement or instrument that is referred to herein means such agreement,
instrument or statute as from time to time amended, modified or supplemented, including (in the
case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession
of comparable successor statutes and references to all attachments thereto and instruments
incorporated therein. Each of the parties has participated in the drafting and negotiation of this
Agreement. If an ambiguity or question of intent or interpretation arises, this Agreement must be
construed as if it is drafted by all the parties, and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of authorship of any of the provisions of this
Agreement.
Section 7.14 Counterparts. This Agreement may be executed in two or more consecutive
counterparts (including by facsimile or email pdf format), each of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same instrument, and shall
become effective when one or more counterparts have been signed by each of the parties and
delivered (by telecopy, email pdf format or otherwise) to the other parties.
12
[Signature Pages to follow]
13
IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement as of
the date and year first written above.
BEN HOLDINGS, INC. |
||||
By: | /s/ Xxxxx Xxxxxx | |||
Name: | Xxxxx Xxxxxx | |||
Title: | Vice President | |||
BEN MERGER SUB, INC. |
||||
By: | /s/ Xxxxxxxxx Xxxxx | |||
Name: | Xxxxxxxxx Xxxxx | |||
Title: | Vice President | |||
XXXXX X. XXXXX | ||
/s/ Xxxxx X. Xxxxx | ||
XXXXXX X. XXXXX | ||
/s/ Xxxxxx X. Xxxxx | ||
XXXXXX X. XXXXX REVOCABLE TRUST | ||
/s/ Xxxxx X. Xxxxx | ||
By: Xxxxx X. Xxxxx, as Trustee | ||
/s/ Xxxxxx X. Xxxxx | ||
By: Xxxxxx X. Xxxxx, as Trustee | ||
XXXXX X. XXXXX 2008 ANNUITY TRUST | ||
/s/ Xxxxx X. Xxxxx | ||
By: Xxxxx X. Xxxxx, as Trustee | ||
XXXXX X. XXXXX 2007 ANNUITY TRUST | ||
/s/ Xxxxx X. Xxxxx | ||
By: Xxxxx X. Xxxxx, as Trustee |
XXXXX X. XXXXX REMAINDER TRUST FBO XXXX X. XXXXX | ||
/s/ Xxxxx X. Xxxxxxxxx | ||
By: Xxxxx X. Xxxxxxxxx, as Trustee | ||
XXXXX X. XXXXX REMAINDER TRUST FBO XXXX X. XXXXXX | ||
/s/ Xxxxx X. Xxxxxxxxx | ||
By: Xxxxx X. Xxxxxxxxx, as Trustee | ||
XXXXX X. XXXXX REMAINDER TRUST FBO XXXX X. XXXXX | ||
/s/ Xxxxx X. Xxxxxxxxx | ||
By: Xxxxx X. Xxxxxxxxx, as Trustee |
ANNEX A
Summary of Terms
Management Rollover
Summary of Terms
Management Rollover
The following summarizes certain terms and conditions in connection with the rollover of the Xxxxx
Parties’ current equity interests in the Company. Capitalized terms not defined herein have the
meanings given such terms in the Non-Tender and Support Agreement by and among Parent, Merger Sub
and the Xxxxx Parties (the “Support Agreement”).
I. | Rollover Investment |
• | The Xxxxx Parties commit to invest collectively into the Parent in connection with the Merger an amount equal to a percentage of the after-tax value of the Xxxxx Parties’ aggregate current equity holdings specified in the Support Agreement, valued for this purpose using the Offer Price (the “Rollover Amount”). | ||
• | The Rollover Amount will be invested in the same strip of securities and in the same relative proportions between securities in any strip as Apax and its affiliates (collectively, the “Sponsor”); provided, however, that at least 60% of the fair market value of any such strip of securities to be held by Apax and the Xxxxx Parties will consist of common stock and/or preferred stock that is not “nonqualified preferred stock” as defined in Section 351(g) of the Code. | ||
• | Notwithstanding that the Support Agreement provides that the Rollover Amount is determined based upon after-tax proceeds, after consultation with the Xxxxx Parties, and to the extent that Sponsor determines that it is reasonably feasible (after giving effect to the second bullet point of this Part I), Sponsor and Parent will cooperate with the Xxxxx Parties to achieve a tax-free rollover of the Rollover Amount within the corporate/capital structure selected by Sponsor for the transaction. No more than five (5) business days after the execution of the Merger Agreement, the Xxxxx Parties shall notify Parent in writing (the “Rollover Notice”) whether the Xxxxx Parties desire to achieve a tax-free rollover with respect to all or a portion of the Xxxxx Parties’ Rollover Amount. Following the receipt of the Rollover Notice, but prior to the Acceptance Time, each of Parent, Sponsor and Xxxxx Parties shall use its reasonable efforts to negotiate and enter into definitive documents (the “Rollover Documents”) that effect the exchange of Company securities owned by one or more of the Xxxxx Parties representing the Rollover Amount for securities of Parent (and/or an Affiliate of Parent) on terms and conditions reasonably satisfactory to the parties. The shares of Common Stock to be so exchanged shall constitute “Rollover Shares” for purposes of the Merger Agreement. The Rollover Documents shall identify any shares of Common Stock that are being exchanged for securities of Parent prior to the Effective Time in a transaction that the parties intend to qualify as an exchange described in Section 351 of the Internal Revenue Code. | ||
• | The Xxxxx Parties’ investment will be fully vested and not be subject to forfeiture. |
II. | General Provisions |
• | The Xxxxx Parties’ investment will not be subject to repurchase upon the termination of any of the Xxxxx Parties’ service to the Company. | ||
• | The Xxxxx Parties will be subject to a customary Securityholders Agreement that will contain customary management equityholder rights, including, without limitation, piggyback registration rights, tag along rights, transfer restrictions, drag along obligations and lock up provisions. Management’s rollover investment in any debt securities will have pari passu liquidity rights with Sponsor’s investment in debt securities. | ||
• | The Company intends that the Xxxxx Parties’ rollover investment be compensatory for purposes of the SEC’s exception to the best-price rule that requires that the consideration paid to any security holder for securities tendered in the tender offer be the highest consideration paid to any security holder for securities tendered in the tender offer. |