Court Square Capital Partners, L.P. 399 Park Avenue, 14th Floor New York, New York 10043
Exhibit 0x
Xxxxx Xxxxxx Xxxxxxx Xxxxxxxx, L.P.
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
December 15, 2006
To:
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MDI Holdings, LLC | |
The other Investors Listed on Schedule B | ||
Re::
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Acquisition of MacDermid, Incorporated |
Ladies and Gentlemen:
Reference is made to the Agreement and Plan of Merger, dated as of the date hereof (the
“Merger Agreement”), by and among MDI Holdings, LLC, a Delaware limited liability company
(“Parent”), Matrix Acquisition Corp., a Connecticut corporation (“Merger Sub”) and
MacDermid, Incorporated, a Connecticut corporation (the “Company”), and pursuant to which
Merger Sub, or its permitted assignees, will be merged with and into the Company (the
“Merger”). Capitalized terms used but not defined herein have the meanings ascribed to
them in the Merger Agreement. This letter is being delivered to the addressees in connection with
the execution of the Merger Agreement by Parent, Merger Sub and the Company.
The undersigned hereby commits, subject to the conditions set forth herein, to purchase, or
cause an assignee permitted by the fifth paragraph of this letter (a “Permitted Assignee”)
to purchase preferred units and common units of Parent (“Subscribed Units”) for an
aggregate Purchase Price equal to the dollar commitment set forth next to the undersigned’s name on
Schedule A (the “Commitment”) solely for the purpose of funding, and to the extent
necessary to fund, the Merger Consideration pursuant to and in accordance with the Merger Agreement
and to pay fees and expenses related to the transactions contemplated by the Merger Agreement,
provided that the undersigned and its Permitted Assignees shall not, under any
circumstances, be obligated to contribute to, purchase equity or debt of or otherwise provide funds
to Parent in any amount in excess of the Commitment. The obligation of the undersigned and its
Permitted Assignees to fund the Commitment is subject to (a) the terms of this letter, and (b) the
substantially concurrent consummation of the Merger in accordance with the terms of the Merger
Agreement and without waiver of any condition or amendment of the Merger Agreement that, in either
case, is not consented to in writing by the Court Square Capital Partners L.P.
This letter, and the undersigned’s obligation to fund the Commitment, will terminate
automatically and immediately upon the earliest to occur of (a) the Effective Time (but only if
Parent’s obligation pursuant to Section 2.2(a) of the Merger Agreement shall have been performed in
full), (b) the termination of the Merger Agreement, and (c) the assertion by the Company or any of
its affiliates in any litigation or other proceeding of any claim under any Limited Guarantee of
any Guarantor.
The undersigned represents and warrants to Parent that: (i) the undersigned has the requisite
capacity and authority to execute and deliver this letter and to fulfill and perform the
undersigned’s obligations hereunder and (ii) this letter has been duly and validly executed and
delivered by the
undersigned and constitutes a legal, valid and binding agreement of the undersigned
enforceable by the addressees against the undersigned in accordance with its terms.
The rights and obligations under this letter may not be assigned by any party hereto without
the prior written consent of Parent, and any attempted assignment shall be null and void and of no
force or effect, except as permitted in this paragraph. The undersigned may assign all or a
portion of its obligations to fund the Commitment to one or more of its affiliated funds or
coinvestors; provided, however, that no assignment shall relieve the undersigned of its
obligations under this letter. This letter may not be amended, and no provision hereof waived or
modified, except by an instrument in writing signed by Parent and the undersigned and approved in
writing by each Guarantor, except that this letter and Schedule A may be amended by sole action of
the undersigned solely to reflect the addition of one or more Permitted Assignees of all or a
portion of the undersigned’s obligations to fund the Commitment as and to the extent provided for
in the immediately preceding sentence.
This letter shall be binding on the undersigned solely for the benefit of the addressees, and
nothing set forth in this letter shall be construed to confer upon or give to any person other than
the addressees any benefits, rights or remedies under or by reason of, or any rights to enforce or
cause such addressee to enforce, the Commitment or any provisions of this letter.
Notwithstanding anything that may be expressed or implied in this letter, the addressees, by
their acceptance of the benefits of this letter, covenant, agree and acknowledge that no person
other than the undersigned (and to the extent a portion of the commitment is assigned to one or
more Permitted Assignees, such Permitted Assignees) shall have any obligation hereunder and that,
notwithstanding that the undersigned (and to the extent a portion of the commitment is assigned to
one or more Permitted Assignees, such Permitted Assignees) may be a partnership or limited
liability company, no recourse hereunder or under any documents or instruments delivered in
connection herewith shall be had against any former, current or future director, officer, employee,
agent, general or limited partner, manager, member, stockholder, affiliate or assignee (other than
a Permitted Assignee) of the undersigned (and to the extent a portion of the commitment is assigned
to one or more Permitted Assignees, such Permitted Assignees) or any former, current or future
director, officer, employee, agent, general or limited partner, manager, member, stockholder,
affiliate or assignee (other than a Permitted Assignee) of any of the foregoing, whether by the
enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute,
regulation or other applicable law, it being expressly agreed and acknowledged that no personal
liability whatsoever shall attach to, be imposed on or otherwise be incurred by any former, current
or future director, officer, employee, agent, general or limited partner, manager, member,
stockholder, affiliate or assignee (other than a Permitted Assignee) of the undersigned (and to the
extent a portion of the commitment is assigned to one or more Permitted Assignees, such Permitted
Assignees) or any former, current or future director, officer, employee, agent, general or limited
partner, manager, member, stockholder, affiliate or assignee (other than a Permitted Assignee) of
any of the foregoing, as such, for any obligations of the undersigned (and to the extent a portion
of the commitment is assigned to one or more Permitted Assignees, such Permitted Assignees) under
this letter or any documents or instrument delivered in connection herewith or for any claim based
on, in respect of, or by reason of such obligations or their creation.
This letter may only be enforced by the addressees. Neither Parent’s creditors nor any other
Person shall have any right to enforce this letter or to cause Parent to enforce this letter.
Concurrently with the execution and delivery of this letter, the undersigned is executing and
delivering to the Company a Limited Guarantee related to Parent’s obligations under the Merger
Agreement. The Company’s remedies against the undersigned under the Limited Guarantee shall,
and are intended to be, the sole and exclusive direct or indirect remedies available to the Company
against the undersigned and any former, current or future director, officer, employee, agent,
general or limited partner, manager, member, stockholder, affiliate or assignee of the undersigned
or any former, current or future director, officer, employee, agent, general or limited partner,
manager, member, stockholder, affiliate or assignee of any of the foregoing in respect of any
liabilities or obligations arising under, or in connection with, the Merger Agreement and the
transactions contemplated thereby, including in the event Parent or Merger Sub breaches its
respective obligations under the Merger Agreement, whether or not Parent’s or Merger Sub’s breach
is caused by the undersigned’s breach of its obligations under this letter.
This letter shall be treated as confidential and is being provided to the addressees solely in
connection with the Merger. This letter may not be used, circulated, quoted or otherwise referred
to in any document, except with the written consent of Court Square Capital Partners L.P. The
foregoing notwithstanding, and without prejudice to the sixth paragraph of this letter, this letter
may be provided to the Company if the Company agrees to treat this letter as confidential, except
that the Company and the undersigned may disclose the existence of this letter to the extent
required by law, the applicable rules of any national securities exchange or in connection with any
SEC filings relating to the Merger, including the Proxy Statement, Schedule 13E-3 and any Schedule
13D filings by the undersigned.
This letter may be executed in counterparts and by facsimile. This letter shall be governed
by, and construed and interpreted in accordance with, the laws of the State of Delaware, without
giving effect to any applicable principles of conflict of laws rules that would cause the laws of
another State to otherwise govern this Agreement. The parties hereto hereby (a) submit to the
personal jurisdiction of Delaware Court of Chancery, or in the event (but only in the event) that
such court does not have subject matter jurisdiction over an action or proceeding, in the United
States District Court for the District of Delaware, and (b) waive any claim of improper venue or
any claim that those courts are an inconvenient forum. The parties hereto agree that mailing of
process or other papers in connection with any action or proceeding in the manner provided in
Section 8.7 of the Merger Agreement or in such other manner as may be permitted by applicable laws,
will be valid and sufficient service thereof.
EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF, UNDER OR IN CONNECTION WITH THIS LETTER OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.
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Very truly yours, | ||||||
COURT SQUARE CAPITAL PARTNERS II, L.P. |
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By: Court Square Capital GP, LLC, its General Partner |
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By: Name: |
/s/ Xxxxxx X. Xxxxxxxxx
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Title: | Managing Partner |
Accepted and Acknowledged:
MDI HOLDINGS, LLC
By: Name: |
/s/ Xxxxxx X. Xxxxxxxxx
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Title:
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President |
[Signature Page to Court Square Commitment Letter]
Schedule A
Investor | Dollar Commitment | |
Court Square Capital Partners |
$296 million |
Schedule B
Other Investors
Weston Presidio V, L.P.
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$50 million |