SHARE PURCHASE AND INVESTOR RIGHTS AGREEMENT BETWEEN CME GROUP INC. AND BM&FBOVESPA S.A. — BOLSA DE VALORES, MERCADORIAS E FUTUROS DATED AS OF JUNE 22, 2010
Exhibit 99.1
EXECUTION VERSION
BETWEEN
CME GROUP INC.
AND
BM&FBOVESPA S.A. — BOLSA DE VALORES, MERCADORIAS E FUTUROS
DATED AS OF JUNE 22, 2010
TABLE OF CONTENTS
Page | ||||||
ARTICLE I DEFINED TERMS; CERTAIN RELATED MATTERS | 1 | |||||
Section 1.1
|
Certain Defined Terms | 1 | ||||
Section 1.2
|
Other Definitional Provisions; Interpretation | 13 | ||||
ARTICLE II SHARE PURCHASE | 14 | |||||
Section 2.1
|
Share Purchase; Adjustments | 14 | ||||
Section 2.2
|
Closing | 15 | ||||
ARTICLE III RESTRICTIONS ON TRANSFERS OF THE SHARES | 16 | |||||
Section 3.1
|
General Restrictions During Restricted Period | 16 | ||||
Section 3.2
|
Termination of Transfer Restrictions upon Occurrence of a Designated Event | 17 | ||||
Section 3.3
|
Restricted Securities | 18 | ||||
Section 3.4
|
Registration Rights | 19 | ||||
Section 3.5
|
No Sale During Blackout Periods | 25 | ||||
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BVMF | 25 | |||||
Section 4.1
|
Corporate Existence and Power | 25 | ||||
Section 4.2
|
Authorization; No Contravention | 26 | ||||
Section 4.3
|
Governmental Authorization; Third Party Consents | 26 | ||||
Section 4.4
|
Binding Effect | 27 | ||||
Section 4.5
|
Litigation | 27 | ||||
Section 4.6
|
Accredited Investor; Disclosure of Information | 27 | ||||
Section 4.7
|
CVM Documents; Financial Statements | 27 | ||||
Section 4.8
|
No Material Adverse Change | 28 | ||||
Section 4.9
|
Broker’s, Finder’s or Similar Fees | 28 | ||||
ARTICLE V REPRESENTATIONS AND WARRANTIES OF CME GROUP | 28 | |||||
Section 5.1
|
Corporate Existence and Power | 28 | ||||
Section 5.2
|
Authorization; No Contravention | 29 | ||||
Section 5.3
|
Governmental Authorization; Third Party Consents | 29 | ||||
Section 5.4
|
Binding Effect | 29 | ||||
Section 5.5
|
Litigation | 29 | ||||
Section 5.6
|
Compliance with Laws; Permits | 30 | ||||
Section 5.7
|
Capitalization | 30 | ||||
Section 5.8
|
SEC Documents; Financial Statements; Undisclosed Liabilities | 31 | ||||
Section 5.9
|
No Material Adverse Change | 31 | ||||
Section 5.10
|
Taxes | 31 | ||||
Section 5.11
|
Regulatory Matters | 32 | ||||
Section 5.12
|
Broker’s, Finder’s or Similar Fees | 32 | ||||
ARTICLE VI COVENANTS | 32 | |||||
Section 6.1
|
Commercially Reasonable Efforts | 32 |
Page | ||||||
Section 6.2
|
Regulatory Approvals | 32 | ||||
Section 6.3
|
Publicity | 34 | ||||
Section 6.4
|
Director Designation Rights | 34 | ||||
Section 6.5
|
Termination of Designation Rights | 35 | ||||
Section 6.6
|
Amendment to Master Agreement | 37 | ||||
Section 6.7
|
Ownership of Intellectual Property | 37 | ||||
Section 6.8
|
Standstill | 38 | ||||
Section 6.9
|
Strategic Product Reports | 38 | ||||
Section 6.10
|
Tax Cooperation | 39 | ||||
Section 6.11
|
Disclosure Schedules | 39 | ||||
Section 6.12
|
Rescission | 39 | ||||
ARTICLE VII CONDITIONS TO CLOSING | 40 | |||||
Section 7.1
|
Conditions of Each Party to Closing | 40 | ||||
Section 7.2
|
CME Group’s Conditions to Closing | 40 | ||||
Section 7.3
|
BVMF’s Conditions to Closing | 41 | ||||
ARTICLE VIII TERMINATION | 42 | |||||
Section 8.1
|
Termination | 42 | ||||
Section 8.2
|
Effect of Termination | 43 | ||||
ARTICLE IX SURVIVAL AND INDEMNIFICATION | 43 | |||||
Section 9.1
|
Survival | 43 | ||||
Section 9.2
|
Indemnification | 43 | ||||
Section 9.3
|
Notification | 44 | ||||
Section 9.4
|
Limits on Indemnification | 45 | ||||
ARTICLE X MISCELLANEOUS | 46 | |||||
Section 10.1
|
Expenses | 46 | ||||
Section 10.2
|
Entire Agreement | 46 | ||||
Section 10.3
|
Notices | 46 | ||||
Section 10.4
|
Assignment | 47 | ||||
Section 10.5
|
Dispute Resolution, Arbitration | 47 | ||||
Section 10.6
|
Governing Law | 48 | ||||
Section 10.7
|
Waiver; Amendment | 48 | ||||
Section 10.8
|
Further Action | 48 | ||||
Section 10.9
|
Counterparts; Effectiveness | 48 | ||||
Section 10.10
|
Benefits of Agreement | 48 | ||||
Section 10.11
|
Severability | 49 |
LIST OF EXHIBITS
Exhibit | Title | |
A
|
BVMF Restricted Products | |
B
|
CME Group Restricted Products | |
C
|
Form of Master Agreement Amendment |
ii
This SHARE PURCHASE AND INVESTOR RIGHTS AGREEMENT, dated as of June 22, 2010 (this
“Agreement”), is entered into between CME GROUP INC., a Delaware corporation (“CME
Group”), and BM&FBOVESPA S.A. — BOLSA DE VALORES, MERCADORIAS E FUTUROS, a Brazilian sociedade
por ações (“BVMF”). CME Group and BVMF are referred to individually as a “Party”
and together as the “Parties.”
RECITALS
WHEREAS, the Board of Directors of CME Group and the Board of Directors of BVMF have each
determined that the transactions contemplated hereby are consistent with, and will further, their
respective business strategies and goals, and have deemed it advisable and in the best interests of
their respective companies and shareholders that CME Group and BVMF engage in the transactions
contemplated hereby, upon the terms and subject to the conditions hereof; and
WHEREAS, simultaneously herewith, CME and BVMF are entering into the Technology Agreement and,
at the Closing, CME Group and BVMF will enter into the Strategic Partnership Agreement.
NOW, THEREFORE, in consideration of the foregoing and the Parties’ respective representations,
warranties, covenants and agreements set forth in this Agreement, and intending to be legally bound
hereby, the Parties hereby agree as follows:
ARTICLE I
DEFINED TERMS; CERTAIN RELATED MATTERS
Section 1.1 Certain Defined Terms. As used in this Agreement, the following terms shall have the following respective meanings:
“Affiliate” means, with respect to any Person, another Person that directly or
indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with, such first Person, where “control” (including the terms “controlled
by” and “under common control with”) means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract, as trustee or executor or otherwise.
“Agreement” has the meaning set forth in the Preamble.
“Ancillary Agreements” means the Strategic Partnership Agreement, the Technology
Agreement and the Master Agreement Amendment.
“Antitrust Laws” has the meaning set forth in Section 6.2(a).
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“Beneficial Owner” of a security means any Person who, directly or indirectly, through
any contract, relationship or otherwise, has or shares (i) the power to vote, or to direct the
voting of, such security, (ii) the power to dispose of, or to direct the disposition of, such
security, or (iii) the ability to profit or share in any profit derived from a transaction in such
security, and the term “Beneficially Owned” shall be construed accordingly.
“Board of Directors” means the board of directors, the Conselho de Administração or
any comparable governing body, as applicable, of any specified Person.
“Brazilian Corporate Law” means Law No. 6,404 of December 15, 1976 of the Federative
Republic of Brazil, as amended from time to time.
“Brazilian GAAP” means the generally accepted accounting principles in Brazil pursuant
to the Brazilian Corporate Law method and the specific rules issued by the CVM, the Brazilian
Accountants Institute — IBRACON and the Federal Accounting Counsel — CFC, consistently applied in
accordance with past practices.
“Burdensome Condition” has the meaning set forth in Section 6.2(b).
“Business Day” means any calendar day, except a Saturday, Sunday or other day on which
commercial banks are required or authorized by law to be closed in the City of São Paulo, State of
São Paulo, Brazil or in the City of Chicago, State of Illinois, United States of America.
“BVMF” has the meaning set forth in the Preamble.
“BVMF Common Shares” has the meaning set forth in Section 6.5(a)(i).
“BVMF CVM Documents” has the meaning set forth in Section 4.7(a).
“BVMF Designated Director” means the individual designated by BVMF from time to time
to serve on the CME Group Board of Directors pursuant to Section 6.4, which individual
shall be BVMF’s Chairman or Chief Executive Officer, or another member of the BVMF Board of
Directors or senior management who is reasonably acceptable to CME Group.
“BVMF Designated Exchange” means:
(i) CETIP S.A. (including any successor, assign or Affiliate of any of the
foregoing);
(ii) Bolsa de Comercio xx Xxxxxxxx, Bolsa de Valores de Colombia, Bolsa de
Valores de Lima, Xxxxxxx de Valores de Buenos Aires (MERVAL) and ROFEX
Futuros y Opciones (including any successor, assign or Affiliate of any of
the foregoing, but only to the extent such successors, assigns or Affiliates
are formed in, or conduct their operations primarily in, the BVMF Exclusive
Region) (any such entity in clause (i) above or this clause
(ii), a “BVMF Listed Exchange”);
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(iii) any exchange, board of trade, trading platform or execution facility,
other than a BVMF Listed Exchange, that lists for trading BVMF Strategic
Products and (A) such Products constitute ten percent (10%) or more of such
entity’s trading volume over the trailing twelve (12) month period ended as
of the last day of the month preceding the month of the applicable date of
determination or (B) with respect to a newly-formed board of trade, trading
platform or execution facility, such entity is or will be formed to compete
against BVMF in a material way by listing BVMF Strategic Products, as
evidenced by such entity’s public announcements or regulatory filings;
provided, however, that solely for the purposes of determining whether a
Person is a “BVMF Designated Exchange,” BVMF Strategic Products shall not
include (x) any Product that was listed for trading by such Person prior to
BVMF’s listing of the Product, (y) any Product for which there is specific
geographic or other logical nexus between the Product and the Person listing
it for trading, such that the Product may be said to belong more
appropriately to the Person listing it for trading than to BVMF or (z) any
Product the revenue with respect to which is excluded from the calculation
of BVMF Gross Trading Fees pursuant to the exclusion in clause (iii)
of such definition. By way of example and without limitation, clause
(y) above would exclude from consideration for such purpose (A) an index
Product listed by a third-party exchange where the primary underlying
components of the index are also listed by such exchange or by another
exchange in its same geographic jurisdiction, (B) a physical commodity
Product settled by physical delivery to delivery points in the geographic
jurisdiction of the third-party exchange and not in the geographic
jurisdiction of BVMF, where the differences in delivery points have a
material impact on the settlement prices for such Products or (C) a currency
Product listed by a third-party exchange located in the jurisdiction issuing
such currency; or
(iv) any exchange, board of trade, trading platform or execution facility
that is authorized to operate by the CVM as an entity responsible for
managing organized markets, including OTC markets, as defined in CVM Rule
461/07, or any substitute regulation; provided, however,
that if at any time after the date of this Agreement, CVM Rule 461/07 is
amended or substituted, this clause (iv) shall not include any exchange,
board of trade, trading platform, execution facility or other Person that
would not have been primarily supervised or regulated by CVM as an entity
responsible for managing organized markets under CVM Rule 461/07 as existing
at the time of this Agreement.
3
“BVMF Designated Exchange Transaction” means:
(i) any agreement entered into or consummated after the date hereof between
CME Group (or any controlled Affiliate of CME Group) and any BVMF Designated
Exchange pursuant to which:
(A) CME Group is or, upon the consummation of the transactions
contemplated by such agreement (whether individually or in a series
of related transactions that are consummated contemporaneously (or
consummated pursuant to contemporaneous agreements)), would become
the Beneficial Owner, directly or indirectly, of Equity Securities
representing two percent (2%) or more of all of the then outstanding
shares of any class of Equity Security of such BVMF Designated
Exchange;
(B) such BVMF Designated Exchange is or, upon the consummation of the
transactions contemplated by such agreement (whether individually or
in a series of related transactions that are consummated
contemporaneously (or consummated pursuant to contemporaneous
agreements)), would become the Beneficial Owner, directly or
indirectly, of Equity Securities representing two percent (2%) or
more of all of the then outstanding shares of any class of Equity
Security of CME Group; or
(C) CME Group merges or consolidates with or into, or acquires assets
constituting fifty percent (50%) or more of the assets of, or, upon
the consummation of the transactions contemplated by such agreement
(whether individually or in a series of related transactions that are
consummated contemporaneously (or consummated pursuant to
contemporaneous agreements)), would merge or consolidate with or
into, or would acquire assets constituting fifty percent (50%) or
more of the assets of, such BVMF Designated Exchange; or
(ii) any Material Commercial Agreement between CME Group (or any controlled
Affiliate of CME Group) and any BVMF Designated Exchange;
provided, however, that none of the following shall be deemed a BVMF Designated
Exchange Transaction: (i) any relationship between CME Group and a BVMF Designated
Exchange existing as of the date of this Agreement or (ii) any transaction entered
into jointly by the Parties pursuant to the Strategic Partnership Agreement.
“BVMF Designee Termination Event” has the meaning set forth in Section
6.5(b).
“BVMF Disclosure Schedules” has the meaning set forth in Article IV.
4
“BVMF Exclusive Region” has the meaning ascribed to such term in the Technology
Agreement.
“BVMF Financial Statements” has the meaning set forth in Section 4.7(a).
“BVMF Gross Trading Fees” means, for any given period of time, the aggregate of
transaction-based fees charged and collected or receivable for Products traded on any BVMF trading
platform (including without limitation any exchange that is a controlled Affiliate of BVMF),
including clearing fees for such transactions during such period of time. “BVMF Gross Trading
Fees” does not include (i) any discounts to such fees paid to market participants in the form of a
rebate or revenue-share, (ii) any surcharges that are related to transaction-based or revenue-based
taxes that are being passed through to participants or (iii) any trading or clearing fees from
transactions in the following markets: cash equities, corporate bonds/private issuer bonds, spot
foreign currency or derivatives on individual equities.
“BVMF Listed Exchange” has the meaning set forth in the definition of BVMF Designated
Exchange.
“BVMF Shareholder Approval” has the meaning set forth in Section 4.2.
“BVMF Strategic Product” means a Product (or economic equivalent of a Product) that
(i) is listed on Exhibit A hereto or (ii) as of the date of the applicable determination is
listed on the most recent BVMF Strategic Product Report delivered to CME Group in accordance with
Section 6.9.
“BVMF Strategic Product Report” has the meaning set forth in Section 6.9(a).
“XXXX” has the meaning set forth in Section 4.3.
“CFTC” means the Commodity Futures Trading Commission, as from time to time
constituted or, if at any time after the execution of this Agreement such Commission is not
existing and performing the duties assigned to it under the Commodity Exchange Act, as amended, or
if another United States regulatory body or commission is performing such duties, then the body
performing such duties at such time.
“Claim” means any action, suit, proceeding, claim, complaint, dispute, arbitration or
investigation.
“Closing” has the meaning set forth in Section 2.2.
“Closing Date” has the meaning set forth in Section 2.2.
“CME” means Chicago Mercantile Exchange Inc., a Delaware corporation and wholly-owned
subsidiary of CME Group.
“CME Group” has the meaning set forth in the Preamble.
5
“CME Group Class A Common Stock” means the Class A Common Stock, par value $0.01 per
share, of CME Group.
“CME Group Class B Common Stock” has the meaning set forth in Section 5.7(a).
“CME Group Common Stock” has the meaning set forth in Section 5.7(a).
“CME Group Designated Director” means the individual designated by CME Group from time
to time to serve on the BVMF Board of Directors pursuant to Section 6.4, which individual
shall be CME Group’s Chairman or Chief Executive Officer, or another member of the CME Group Board
of Directors or senior management who is reasonably acceptable to BVMF.
“CME Group Designated Exchange” means:
(i) Intercontinental Exchange, Inc., NYSE Euronext, The Nasdaq OMX Group,
Inc., Deutsche Boerse AG or ELX Futures, L.P. (including any successor,
assign or Affiliate of any of the foregoing) (each, a “CME Group Listed
Exchange”);
(ii) any exchange, board of trade, trading platform or execution facility,
other than a CME Group Listed Exchange, that lists for trading CME Group
Strategic Products and (A) such Products constitute ten percent (10%) or
more of such entity’s trading volume over the trailing twelve (12) month
period ended as of the last day of the month preceding the month of the
applicable date of determination or (B) with respect to a newly-formed board
of trade, trading platform or execution facility, such entity is or will be
formed to compete against CME Group in a material way by listing CME Group
Strategic Products, as evidenced by such entity’s public announcements or
regulatory filings; provided, however, that solely for the purposes of
determining whether a Person is a “CME Group Designated Exchange,” CME Group
Strategic Products shall not include (x) any Product that was listed for
trading by such Person prior to listing of the Product by a Person that is a
controlled Affiliate of CME Group, (y) any Product for which there is
specific geographic or other logical nexus between the Product and the
Person listing it for trading, such that the Product may be said to belong
more appropriately to the Person listing it for trading than to CME Group or
(z) any Product the revenue with respect to which is excluded from the
calculation of CME Group Gross Trading Fees pursuant to the exclusion in
clause (iii) of such definition. By way of example and without
limitation, clause (y) above would exclude from consideration for
such purpose (A) an index Product listed by a third-party exchange where the
primary underlying components of the index are also listed by such exchange
or by another exchange in its same geographic jurisdiction, (B) a physical
commodity Product settled by physical delivery to delivery points in the
geographic jurisdiction of the third-party exchange and not in the
geographic jurisdiction of CME Group, where the
6
differences in delivery points have a material impact on the settlement
prices for such Products or (C) a currency Product listed by a third-party
exchange located in the jurisdiction issuing such currency; or
(iii) any exchange, board of trade, trading platform or execution facility
that is subject to regulation by the CFTC, excluding for these purposes
regulation by usage of no-action letters granted to foreign exchanges,
boards of trades, trading platforms or execution facilities that are not
otherwise regulated by the CFTC; provided, however, that if at any time
after the execution of this Agreement the CFTC is not existing or is not
otherwise exclusively performing the duties currently assigned to it under
the Commodity Exchange Act, as amended, or if another United States
regulatory body or commission is performing such duties, or if the
Commodities Exchange Act is amended, this clause (iii) shall not include any
exchange, board of trade, trading platform, execution facility or other
Person that would not have been primarily supervised or regulated by the
CFTC as existing at the time of this Agreement.
“CME Group Designated Exchange Transaction” means:
(i) any agreement entered into or consummated after the date hereof between
BVMF (or any controlled Affiliate of BVMF) and any CME Group Designated
Exchange pursuant to which:
(A) BVMF is or, upon the consummation of the transactions
contemplated by such agreement (whether individually or in a series
of related transactions that are consummated contemporaneously (or
consummated pursuant to contemporaneous agreements)), would become
the Beneficial Owner, directly or indirectly, of Equity Securities
representing two percent (2%) or more of all of the then outstanding
shares of any class of Equity Security of such CME Group Designated
Exchange;
(B) such CME Group Designated Exchange is or, upon the consummation
of the transactions contemplated by such agreement (whether
individually or in a series of related transactions that are
consummated contemporaneously (or consummated pursuant to
contemporaneous agreements)), would become the Beneficial Owner,
directly or indirectly, of Equity Securities representing two percent
(2%) or more of all of the then outstanding shares of any class of
Equity Security of BVMF; or
(C) BVMF merges or consolidates with or into, or acquires assets
constituting fifty percent (50%) or more of the assets of, or, upon
the consummation of the transactions contemplated by such agreement
(whether individually or in a series of related transactions that are
consummated contemporaneously (or
7
consummated pursuant to contemporaneous agreements)), would merge or
consolidate with or into, or would acquire assets constituting fifty
percent (50%) or more of the assets of, such CME Group Designated
Exchange; or
(ii) any Material Commercial Agreement between BVMF (or any controlled
Affiliate of BVMF) and any CME Group Designated Exchange;
provided, however, that none of the following shall be deemed a CME Group Designated
Exchange Transaction: (i) any relationship between BVMF and a CME Group Designated
Exchange existing as of the date of this Agreement or (ii) any transaction entered
into jointly by the Parties pursuant to the Strategic Partnership Agreement.
“CME Group Designee Termination Event” has the meaning set forth in Section
6.5(a).
“CME Group Disclosure Schedules” has the meaning set forth in Article V.
“CME Group Financial Statements” has the meaning set forth in Section 5.8(a).
“CME Group Gross Trading Fees” means, for any given period of time, the aggregate of
transaction-based fees charged and collected or receivable for Products traded on any CME Group
trading platform (including without limitation any exchange that is a controlled Affiliate of CME
Group), including clearing fees for such transactions during such period of time. CME Group Gross
Trading Fees does not include (i) any discounts to such fees paid to market participants in the
form of a rebate or revenue-share, (ii) any surcharges that are related to transaction-based or
revenue-based taxes that are being passed through to participants or (iii) any trading or clearing
fees from transactions in the following markets: cash equities, corporate bonds/private issuer
bonds, spot foreign currency or derivatives on individual equities.
“CME Group Listed Exchange” has the meaning set forth in the definition of CME Group
Designated Exchange.
“CME Group Preferred Stock” has the meaning set forth in Section 5.7(a).
“CME Group Rights” means the rights distributed to the holders of CME Group Class A
Common Stock pursuant to the CME Group Rights Agreement.
“CME Group Rights Agreement” means the rights agreement, dated as of November 30,
2001, as amended, between CME Group and Computershare Investor Services LLC, as rights agent.
“CME Group SEC Documents” has the meaning set forth in Section 5.8(a).
“CME Group Shares” has the meaning set forth in Section 2.1(a). Each
reference to CME Group Shares shall include the CME Group Rights attached thereto or associated
therewith.
8
“CME Group Strategic Product” means a Product (or economic equivalent of a Product)
that (i) is listed on Exhibit B hereto or (ii) as of the date of the applicable
determination is listed on the most recent CME Group Strategic Product Report delivered to BVMF in
accordance with Section 6.9.
“CME Group Strategic Product Report” has the meaning set forth in Section
6.9(b).
“Code” has the meaning set forth in Section 6.10.
“Condition” means, with respect to any Person, (i) the assets, business, properties,
operations or condition (financial or otherwise) of such Person and its Subsidiaries, taken as a
whole, or (ii) the ability of such Person (or the applicable Subsidiary of such Person) to perform
its obligations under this Agreement or any Ancillary Agreement or to consummate the transactions
contemplated hereby or thereby.
“Confidentiality Agreement” means the Confidentiality and Non-Disclosure Agreement,
dated as of February 25, 2010, between CME Group and BVMF.
“Contractual Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, undertaking, contract, indenture, mortgage, deed of trust or
other instrument to which such Person is a party or by which it or any of its property is bound.
“Covered Subsidiaries” means CME, Board of Trade of the City of Chicago, Inc., New
York Mercantile Exchange, Inc., Commodity Exchange, Inc. and any other Person that is a
“significant subsidiary” of CME Group within the meaning of Rule 1-02(w) of Regulation S-X under
the Securities Act.
“CVM” means the Comissão de Valores Mobiliários (the Brazilian Securities Commission)
of the Federative Republic of Brazil created by Law 6,385/76, as from time to time constituted or,
if at any time after the execution of this Agreement such body is not existing and performing the
duties currently performed by it, or if another Brazilian regulatory body or commission is
performing such duties, then the body performing such duties at such time.
“Deferral Notice” has the meaning set forth in Section 3.4(c)(i).
“Designated Event” has the meaning set forth in Section 3.2(a).
“Dispute” has the meaning set forth in Section 10.5.
“Dispute Notice” has the meaning set forth in Section 10.5.
“Equity Security” means, with respect to any Person, any common share, preferred share
and any other equity security of such Person, however described and whether voting or non-voting,
including any Stock Equivalent of such Person or any other security the yield on which is
determined in whole or in part by reference to market price or value of, shares of capital stock or
results of, revenues or other financial performance of, such Person.
9
“Exchange Act” means the United States Securities Exchange Act of 1934, as amended,
and the rules and regulations of the SEC thereunder.
“Extraordinary Shareholders Meeting” has the meaning set forth in Section 4.2.
“Fully Diluted Basis” means, with respect to any class of Equity Security of a Person,
as of any given date, the sum of (A) the number of shares of such class of Equity Security actually
outstanding and (B) the number of shares of such class of Equity Security which could be obtained
through the exercise or conversion of all Stock Equivalents convertible into, or exchangeable or
exercisable for, such class of Equity Security on the day immediately preceding the given date,
other than Stock Equivalents issued by such Person as incentive compensation.
“Governmental Action” means any consent, approval, authorization, waiver, permit,
grant, concession, agreement, license, certificate, exemption, order, decree, judgment, injunction,
registration, declaration, filing, report or notice of or with any Governmental Authority.
“Governmental Authority” means any supranational, national, state, municipal, local or
foreign government, any instrumentality, subdivision, court, tribunal, judicial or arbitral body,
administrative agency or commission, or other governmental authority or quasi-governmental
authority or instrumentality or industry self-regulatory organization.
“HSR Act” has the meaning set forth in Section 6.2(a).
“ICC Rules” has the meaning set forth in Section 10.5.
“Indemnified Party” has the meaning set forth in Section 9.2.
“Indemnifying Party” has the meaning set forth in Section 9.2.
“Indemnity Threshold” has the meaning set forth in Section 9.4(a).
“INPI” has the meaning set forth in Section 4.3.
“Law” means any statute, law, code, ordinance, Order, proclamation, regulation,
published requirement or rule of any Governmental Authority, as amended and in effect from time to
time.
“Liability” means any direct or indirect indebtedness, liability, assessment, expense,
claim, loss, damage, deficiency, obligation or responsibility of any nature, whether known or
unknown, vested or unvested, absolute, accrued, contingent or otherwise.
“Lien” means any lien (statutory or other), mortgage, pledge, encumbrance, assignment,
grant of security, usufruct, fiduciary transfer or similar security interest or any preferential
arrangement that has the practical effect of creating a security interest or floating guarantee
under applicable Law with respect to any asset (including any security).
10
“Losses” has the meaning set forth in Section 9.2.
“Master Agreement” means that certain master agreement, dated January 22, 2008, by and
between CME Group and BVMF (as successor to Bolsa de Mercadorias & Futuros — BM&F S.A.).
“Master Agreement Amendment” has the meaning set forth in Section 6.6.
“Material Commercial Agreement” means any material commercial agreement of a strategic
nature, including, without limitation, any partnership, alliance or joint venture to pursue
material strategic opportunities; but excluding (i) in the case of both Parties, routine agreements
entered into between or among exchanges, including, without limitation, agreements for market data
distribution or administration services; agreements related to new product development; licensing
of settlement price information, specifications, or indexes; cross-margining agreements; or
licensing of software or other intellectual property; or the provision of routine exchange-related
services; (ii) in the case of BVMF, any agreements that relate primarily to cash, equities or bond
markets (and do not related to derivatives products other than (1) derivatives on individual
equities (excluding U.S. single-stock futures) or (2) options on equity indices); and (iii) any
agreement CME Group or BVMF had in place as of February 11, 2010 with a BVMF Listed Exchange or CME
Listed Exchange, as the case may be, or any extensions thereof.
“Orders” has the meaning set forth in Section 4.2.
“Organizational Documents” means with respect to any Person, its certificate or
articles of incorporation, by-laws, and any similar charter or other organizational documents of
such Person.
“Party” or “Parties” has the meaning set forth in the Preamble.
“Per Share Price” has the meaning set forth in Section 2.1(a).
“Permit” means any license, permit, authorization, consent, registration or approval
required by any Governmental Authority.
“Person” means any individual, corporation, partnership, limited liability company,
association, joint stock company, trust, investment fund, unincorporated organization or any other
entity, including a Governmental Authority.
“PFIC” has the meaning set forth in Section 6.10.
“Product” has the meaning ascribed to such term in the Technology Agreement.
“Prospectus” has the meaning set forth in Section 3.4(b)(ii).
“Purchase Price” has the meaning set forth in Section 2.2(b)(i).
“Registrable Securities” has the meaning set forth in Section 3.4(a).
11
“Registration Statement” has the meaning set forth in Section 3.4(a).
“Requirements of Law” means, as to any Person, any Law, right, privilege,
qualification, license or franchise or determination of an arbitrator or a court or other
Governmental Authority or stock exchange, in each case applicable or binding upon such Person or
any of its property or to which such Person or any of its property is subject or pertaining to any
or all of the transactions contemplated or referred to in this Agreement or in any Ancillary
Agreement.
“Rescission Date” has the meaning set forth in Section 6.12.
“Restricted Period” has the meaning set forth in Section 3.1.
“Rule 144,” “Rule 144A” and “Rule 405” means, in each case, such rule
promulgated under the Securities Act (or any successor provision), as the same shall be amended
from time to time.
“SEC” means the United States Securities and Exchange Commission.
“Securities Act” means the United States Securities Act of 1933, as amended, and the
rules and regulations of the SEC thereunder.
“Stock Equivalents” means, with respect to any Person, any security or obligation
which is by its terms, whether directly or indirectly, convertible into or exchangeable or
exercisable for common shares or other capital stock of such Person, and any option, warrant or
other subscription or purchase right with respect to common shares or such other capital stock,
including those rights under any stock option plan approved by such Person’s shareholders.
“Strategic Partnership Agreement” means that certain Global Preferred Strategic
Partnership Agreement, by and between CME Group and BVMF, in the form agreed between the Parties as
of the date hereof.
“Subsidiary” when used with respect to any entity means any corporation or other
organization, whether incorporated or unincorporated, (i) of which such entity or any other
Subsidiary of such entity is a general partner (excluding partnerships, the general partnership
interests of which are held by such entity or any Subsidiary of such entity do not have a majority
of the voting interests in such partnership) or (ii) at least a majority of the securities or other
interests of which having by their terms ordinary voting power to elect a majority of the Board of
Directors, managers, or others performing similar functions with respect to such corporation or
other organization is directly or indirectly owned or controlled by such entity or by any one or
more of its Subsidiaries, or by such entity and one or more of its Subsidiaries.
“Taxes” means all taxes, charges, levies, penalties or other assessments imposed by
any Brazilian or United States federal, state, local or foreign taxing authority, including any
income, social contribution on net profits, excise, property, sales, transfer, franchise, payroll,
withholding, social security or other taxes, together with any interest, additions to tax or
penalties attributable thereto, and any payments made or owing to any other Person measured by such
taxes, charges, levies, penalties or other assessment, whether pursuant to a tax indemnity
12
agreement, tax sharing payment or otherwise (other than pursuant to commercial agreements or
benefit plans).
“Tax Return” means any return, report, information return or other document (including
any related or supporting information) required to be filed with any taxing authority with respect
to Taxes, including without limitation all information returns relating to Taxes of third parties,
any claims for refunds of Taxes and any amendments or supplements to any of the foregoing.
“Technology Agreement” means that certain Technology Agreement, dated as of June 22,
2010 by and between CME and BVMF.
“Transfer” has the meaning set forth in Section 3.1.
“U.S. GAAP” means generally accepted accounting principles in the United States of
America.
“Walk-Away Date” has the meaning set forth in Section 8.1(b)(i).
Section 1.2 Other Definitional Provisions; Interpretation.
(a) The words “hereof,” “herein” and “herewith” and words of similar import shall, unless
otherwise stated, be construed to refer to this Agreement as a whole and not to any particular
provision of this Agreement, and references to articles, sections, paragraphs, exhibits and
schedules are to the articles, sections and paragraphs of, and exhibits and schedules to, this
Agreement, unless otherwise specified.
(b) Whenever the words “include,” “includes” or “including” are used in this Agreement, they
shall be deemed to be followed by the phrase “without limitation.”
(c) Words describing the singular number shall be deemed to include the plural and vice versa,
words denoting any gender shall be deemed to include all genders and words denoting natural persons
shall be deemed to include business entities and vice versa.
(d) The phrases “the date of this Agreement” and “the date hereof” and terms or phrases of
similar import shall be deemed to refer to June 22, 2010.
(e) All references in this Agreement to “dollars,” “US Dollars” or “$” shall be deemed
references to dollars of the United States of America.
(f) Terms defined in the text of this Agreement shall have such meaning throughout this
Agreement, unless otherwise indicated in this Agreement.
(g) The table of contents and headings in this Agreement are for reference purposes only and
do not affect in any way the meaning or interpretation of this Agreement.
13
(h) The phrase “to the knowledge of BVMF” means the actual knowledge, without any special
investigation or inquiry, of Xxxxxx Xxxxx, Cícero Xxxxxxx Xxxxxx Xxxx, Xxxxxx Xxxxxx Xxxx Xxxxxxxx,
Xxxxxxxx xx Xxxxxxx Xxxxxxx, Xxxxxx Xxxxxxx xx Xxxxxx or Xxxxx Xxxxx Clivati Padilha.
(i) The phrase “to the knowledge of CME Group” means the actual knowledge, without any special
investigation or inquiry, of Xxxxx X. Xxxxxxx, Xxxxx X. Xxxxxx, Xxxxxxxx X. Xxxxxx, Xxx Xxxxxx,
Xxxxx Xxxxxxx or Xxxxx X. Xxxxxx.
ARTICLE II
SHARE PURCHASE
Section 2.1 Share Purchase; Adjustments.
(a) Share Purchase. On the terms and subject to the conditions set forth in this
Agreement, at the Closing, BVMF shall purchase from CME Group, and CME Group shall issue to BVMF,
2,206,478 shares of CME Group Class A Common Stock (the “CME Group Shares”) at a purchase
price per share of $275.12 in cash (the “Per Share Price”).
(b) Adjustments. The number of CME Group Shares to be purchased by BVMF and the Per
Share Price to be paid therefor pursuant to Section 2.1(a) hereof shall be subject to
adjustment as follows:
(i) Upon Dividends or Distributions. If the number of outstanding
shares of CME Group Class A Common Stock is increased or scheduled to be increased
by a dividend or share distribution, in each case (1) payable in shares of CME Group
Class A Common Stock (or in securities convertible into, or exchangeable or
exercisable for, CME Group Class A Common Stock for no or only nominal
consideration) and (2) with a record date for the determination of holders of CME
Group Class A Common Stock entitled to receive such dividend or distribution fixed
for date after the date of this Agreement and prior to the Closing, then the number
of CME Group Shares to be purchased by BVMF pursuant to Section 2.1(a) shall
be increased in proportion to such increase in outstanding shares of CME Group Class
A Common Stock.
(ii) Upon Subdivisions or Forward Splits. If, at any time after the
date of this Agreement and prior to the Closing Date, the number of outstanding
shares of CME Group Class A Common Stock is increased by a subdivision or forward
split of the outstanding shares of CME Group Class A Common Stock, then the number
of CME Group Shares to be purchased by BVMF pursuant to Section 2.1(a) shall
be increased in proportion to such increase in outstanding shares of CME Group Class
A Common Stock.
(iii) Upon Consolidation or Reverse Splits. If, at any time after the
date of this Agreement and prior to the Closing Date, the number of outstanding shares of CME Group Class A Common Stock is decreased by a
consolidation or reverse split of the outstanding shares of CME Group Class A
14
Common
Stock, then the number of CME Group Shares to be purchased by BVMF pursuant to
Section 2.1(a) shall be decreased in proportion to such decrease in
outstanding shares of CME Group Class A Common Stock.
(iv) Adjustment of the Per Share Price. Whenever the number of CME
Group Shares to be purchased by BVMF pursuant to Section 2.1(a) is adjusted
as provided in Sections 2.1(b)(i), (ii) or (iii), the Price
Per Share payable shall simultaneously be adjusted by multiplying such Price Per
Share immediately prior to such adjustment by a fraction, the numerator of which
shall be the number of CME Group Shares to be purchased by BVMF pursuant to
Section 2.1(a) immediately prior to such adjustment, and the denominator of
which shall be the number of CME Group Shares to be purchased by BVMF pursuant to
Section 2.1(a) immediately thereafter.
(v) Other Adjustments. In the event of (A) any reorganization,
recapitalization, reclassification or other like change in the outstanding shares of
CME Group Class A Common Stock at any time after the date of this Agreement and
prior to the Closing Date or (B) the declaration after the date of this Agreement of
any dividend with a record date prior to the Closing Date (other than regular
quarterly cash dividends in timing and amount consistent with past practice), in
each case for which an adjustment is not otherwise provided under Sections
2.1(b)(i), (ii) or (iii), the number of CME Group Shares to be
purchased by BVMF and the Per Share Price to be paid therefor pursuant to
Section 2.1(a) shall be equitably adjusted to reflect the effects of such
reorganization, recapitalization, reclassification or other like change or dividend.
Section 2.2 Closing. Subject to the terms and conditions hereof and unless otherwise agreed by the Parties in
writing, the closing of the transactions contemplated by this Agreement (the “Closing”)
shall take place at the offices of Skadden, Arps, Slate, Xxxxxxx & Xxxx LLP, 000 X. Xxxxxx Xxxxx,
Xxxxxxx, Xxxxxxxx 00000, at 10:00 a.m., local time, on the third Business Day after all of the
conditions set forth in Article VII have been fulfilled or waived (other than those
conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment
or waiver of those conditions); provided, that (A) BVMF shall have the right, by written notice
delivered to CME Group prior to such third Business Day, to delay the date of Closing for not more
than 60 calendar days in order to obtain any financing desired by BVMF to pay the Purchase Price
and (B) in the event BVMF elects to extend the Closing pursuant to the foregoing clause (A), (i)
BVMF shall use commercially reasonable efforts to obtain such financing during the period of any
such delay and (ii) the Closing shall occur contemporaneously with or as promptly as practicable
following (but in any event not more than three (3) Business Days following) the closing of such
financing. The date of the Closing is referred to in this Agreement as the “Closing Date.”
(a) At the Closing, CME Group shall deliver to or cause to be delivered to BVMF:
15
(i) evidence of the registration of BVMF as holder of the CME Group Shares,
free and clear of all Liens except those created by this Agreement;
(ii) certified copies of the CME Group Board of Directors resolutions approving
and authorizing the execution of this Agreement and the consummation of the
transactions contemplated hereby, including the issuance of the CME Group Shares to
BVMF; and
(iii) a certificate of the chief executive officer or the chief financial
officer of CME Group as contemplated by Sections 7.3(a) and (b)
hereof.
(b) At the Closing, BVMF shall deliver to or cause to be delivered to CME Group:
(i) cash in US Dollars in an amount equal to the product of the number of CME
Group Shares to be purchased by BVMF multiplied by the Per Share Price to be paid
therefor pursuant to Section 2.1 (the “Purchase Price”), as payment
in full for the CME Group Shares, by wire transfer of immediately available funds to
a bank account that has been designated by CME Group at least two (2) Business Days
prior to the Closing Date;
(ii) certified copies of the BVMF Board of Directors resolutions approving and
authorizing the execution and consummation of this Agreement and the transactions
contemplated hereby; and
(iii) a certificate of the chief executive officer or the chief financial
officer of BVMF as contemplated by Sections 7.2(a) and (b) hereof.
ARTICLE III
RESTRICTIONS ON TRANSFERS OF THE SHARES
Section 3.1 General Restrictions During Restricted Period. Each Party agrees that from the Closing Date until February 27, 2012 or as terminated pursuant
to Section 3.2 or Sections 6.5(a) or 6.5(b), as applicable, (the
“Restricted Period”), without the prior written consent of the other Party, such Party will
not, and will cause its Subsidiaries to not, directly or indirectly, sell, transfer, encumber,
assign, grant any option to purchase, make any short sale or otherwise dispose of, directly or
indirectly (each such transaction, a “Transfer”), (x) in the case of CME Group, any
interest in the BVMF Common Shares owned by CME Group as of the Closing Date; and (y) in the case
of BVMF, any interest in the CME Group Class A Common Stock owned by BVMF as of the Closing Date
(including the CME Group Shares acquired pursuant to this Agreement); provided, however, that such
Party and its Subsidiaries may at any time Transfer all or a portion of such shares to (A) the
other Party pursuant to a self-tender offer or otherwise or (B) any wholly-owned Subsidiary of such
Party; provided that such Subsidiary agrees in writing to be bound by the restrictions set forth in
this Article III and to re-Transfer such shares back to CME Group or BVMF, as the case may be, prior to the date, if any, that
such Subsidiary ceases to be a wholly-owned Subsidiary of such Party.
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Section 3.2 Termination of Transfer Restrictions upon Occurrence of a Designated Event. Notwithstanding anything in this Agreement to the contrary, upon the occurrence of a Designated
Event as to a Party during the Restricted Period, the other Party shall have the right to, or to
cause any Subsidiary to, Transfer all or a portion of its BVMF Common Shares or shares of CME Group
Class A Common Stock, as applicable, free from any and all limitations on transfer under this
Agreement, and the other Party agrees that in such event it will not take any action, the purpose
of which is to interfere with any such Transfer.
(a) For purposes of this Agreement, a “Designated Event” as to a Party shall be deemed
to have occurred:
(i) upon the consummation of a transaction (whether by merger, consolidation,
stock purchase, recapitalization, reorganization, redemption, issuance of capital
stock or otherwise), whether in a single transaction or a series of related
transactions that are consummated contemporaneously (or consummated pursuant to
contemporaneous agreements), pursuant to which (A) any Person or “group” (as such
term is used for purposes of Section 13(d) of the Exchange Act) becomes the
Beneficial Owner, directly or indirectly, of Equity Securities of such Party
representing fifty percent (50%) or more of the voting power of all of the then
outstanding Equity Securities of such Party or (B) any Person or “group” (as such
term is used for purposes of Section 13(d) of the Exchange Act), other than such
Party or a wholly-owned Subsidiary of such Party, acquires assets constituting fifty
percent (50%) or more of the assets of such Party and its Subsidiaries on a
consolidated basis; provided, however that a transaction will not be deemed to
involve a Designated Event if (1) such Party becomes a direct or indirect
wholly-owned Subsidiary of a holding company and (2)(A) the direct or indirect
holders of the voting Equity Securities of such holding company immediately
following that transaction are substantially the same as the holders of such Party’s
voting Equity Securities immediately prior to such transaction or (B) immediately
following such transaction no Person or group (other than a holding company
satisfying the requirements of this sentence) is the Beneficial Owner, directly or
indirectly, of Equity Securities of such holding company representing fifty percent
(50%) or more of the voting power of all of the then outstanding Equity Securities
of such holding company; or
(ii) if, during any period of two (2) consecutive years (not including any
period prior to the execution of this Agreement), individuals who at the beginning
of such period constitute the Board of Directors of such Party, and any new director
whose election by the Board of Directors of such Party or nomination for election by
the security holders of such Party 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 a majority thereof.
(b) In addition to the Designated Events described in Section 3.2(a), during the
Restricted Period, each of CME Group and BVMF shall have the right to Transfer a
17
number of BVMF
Common Shares or CME Group Class A Common Stock, as the case may be, sufficient to reduce its
respective holdings of BVMF Common Shares or CME Group Class A Common Stock to an amount compatible
with CME Group’s and BVMF’s respective retained earnings and capital surplus for purposes of
compliance with the provisions of Brazilian Corporate Law on crossholdings.
Section 3.3 Restricted Securities.
(a) CME Group hereby acknowledges and agrees that the certificates for the BVMF Common Shares
owned by it, if issued, shall bear a legend in Portuguese for purposes of Article 40 of the
Brazilian Corporate Law stating that such BVMF Common Shares are subject to certain restrictions on
transfer set forth in this Agreement.
(b) When the BVMF Common Shares owned by CME cease to be subject to any restrictions on
transfer set forth in this Agreement, BVMF shall, upon the written request of CME Group, issue new
certificates or other instruments representing such BVMF Common Shares, which shall not contain the
legend in Section 3.3(a) and shall instruct BVMF’s transfer agent to make any necessary
notations in the share register of BVMF to reflect the removal of such legend; provided CME Group
surrenders to BVMF the previously issued certificates or other instruments, if any.
(c) BVMF hereby acknowledges and agrees that, in addition to the restrictions on transfers of
the shares of CME Group Class A Common Stock owned by BVMF contained in this Agreement, the CME
Group Shares will not be, and the other shares of CME Group Class A Common Stock owned by BVMF have
not been, registered under the Securities Act and may not be offered or sold except pursuant to a
registration statement or an exemption from the registration requirements of the Securities Act.
BVMF further acknowledges and agrees that the certificates for the CME Group Shares and the other
shares of CME Group Class A Common Stock owned by BVMF, if issued, shall bear a legend in English
as follows, and CME Group’s transfer agent shall be instructed to annotate in the share register
book of CME Group as a Lien to the CME Group Shares and the other shares of CME Group Class A
Common Stock owned by BVMF:
(i) | THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY FOREIGN JURISDICTION. THE SECURITIES MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE AND FOREIGN SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS. |
(ii) | THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE PROVISIONS SET FORTH IN THE SHARE PURCHASE AND INVESTOR RIGHTS AGREEMENT, DATED AS OF JUNE 22, 2010, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF CME GROUP INC. |
18
SUCH AGREEMENT PROVIDES, AMONG OTHER THINGS, FOR CERTAIN RESTRICTIONS ON THE SALE, TRANSFER, ENCUMBRANCE OR OTHER DISPOSITION OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE. ANY SALE, TRANSFER, ENCUMBRANCE OR OTHER DISPOSITION OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IN VIOLATION OF SUCH AGREEMENT SHALL BE NULL AND VOID. |
(d) In the event that any of the shares of CME Group Class A Common Stock held by BVMF (i)
become registered under the Securities Act or (ii) are eligible to be transferred without
restriction in accordance with Rule 144 or another exemption from registration under the Securities
Act (other than Rule 144A), CME Group shall, upon the written request of BVMF, issue new
certificates or other instruments representing such shares of CME Group Class A Common Stock, which
shall not contain the legend in Section 3.3(c)(i) and shall instruct its transfer agent to
make any necessary notations in the share register book of CME Group to reflect the removal of such
legend; provided BVMF surrenders to CME Group the previously issued certificates or other
instruments, if any, together, in the case of clause (ii) of this Section 3.3(d), with a
customary representation letter or opinion of counsel regarding BVMF’s eligibility to sell under
Rule 144 or such other exemption. When the shares of CME Group Class A Common Stock owned by BVMF
cease to be subject to any restrictions on transfer set forth in this Agreement, CME Group shall,
upon the written request of BVMF, issue new certificates or other instruments representing such
shares, which shall not contain the legend in Section 3.3(c)(ii) and shall instruct its
transfer agent to make any necessary notations in the share register book of CME Group to reflect
removal of such legend; provided BVMF surrenders to CME Group the previously issued certificates or
other instruments, if any.
Section 3.4 Registration Rights.
(a) On or prior to the date of expiration of the Restricted Period, CME Group shall file with
the SEC a registration statement under the Securities Act on Form S-3 (or any successor short form
registration involving a similar amount of disclosure; or if then ineligible to use any such form,
then any other available form of registration statement) for a public offering of the shares of CME
Group Class A Common Stock owned by BVMF as of the Closing Date (including the CME Group Shares
acquired pursuant to this Agreement) (the “Registrable Securities”) to be made on a
continuous basis pursuant to Rule 415 of the Securities Act (the “Registration Statement”)
and cause the Registration Statement to become effective as soon as practicable after filing. If
it shall be impracticable for CME Group to file and cause the effectiveness of such Registration
Statement prior to the termination of the Restricted Period due to an early termination thereof,
then CME Group shall file and cause the effectiveness of such Registration Statement as promptly as practicable after such early termination of the
Restricted Period.
(b) Whenever required to effect the registration of any Registrable Securities, CME Group
shall:
(i) cause the Registration Statement to remain effective until the earlier of
(A) the date when all Registrable Securities covered by the
19
Registration Statement
have been sold pursuant to an effective Registration Statement under the Securities
Act or (B) the date all the Registrable Securities are capable of being sold
pursuant to Rule 144 under the Securities Act (or any similar provision then in
force) without limitation thereunder on volume or manner of sale;
(ii) prepare and file with the SEC such amendments and supplements to the
Registration Statement and the prospectus (including any prospectus supplement) used
in connection therewith (the “Prospectus”) and take all other actions as may
be reasonably necessary to comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities covered by the Registration
Statement;
(iii) furnish to BVMF such number of copies of the applicable Registration
Statement and each such amendment and supplement thereto (including in each case all
exhibits) and of the Prospectus, including a preliminary prospectus, in conformity
with the requirements of the Securities Act, and such other documents as they may
reasonably request in order to facilitate the disposition of Registrable Securities
owned or to be distributed by them;
(iv) give written notice to BVMF:
(1) when any Registration Statement filed pursuant to Section 3.4 or
any amendment thereto has been filed with the SEC (except for any amendment effected
by the filing of a document with the SEC pursuant to the Exchange Act) and when such
Registration Statement or any post-effective amendment thereto has become effective;
(2) of any request by the SEC for amendments or supplements to any Registration
Statement or the Prospectus or for additional information;
(3) of the occurrence of any of the events described in Sections
3.4(c)(i)(1) and (2); and
(4) of the receipt by CME Group of any written notification from a Governmental
Authority with respect to the suspension of the qualification of the CME Group Class
A Common Stock for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose;
(v) use commercially reasonable efforts to cause all such Registrable
Securities to be listed on each national securities exchange on which the CME Group
Class A Common Stock is then listed; and
(vi) if requested by BVMF, promptly include in a prospectus supplement or
amendment such information as BVMF may reasonably request in order to permit the
intended method of distribution of such securities
20
and make all required filings of
such prospectus supplement or such amendment as soon as practicable after CME Group
has received such request.
(c) Suspensions.
(i) CME Group may, by giving notice to BVMF (a “Deferral Notice”),
suspend the availability of the Registration Statement and the related Prospectus:
(1) upon the issuance by the SEC of a stop order suspending the effectiveness
of the Registration Statement or the initiation of proceedings with respect to the
Registration Statement under Section 8(d) or 8(e) of the Securities Act,
(2) if the Registration Statement shall 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 not misleading, or any Prospectus forming a
part of the Registration Statement shall contain any untrue statement 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 (including, in
any such case, as a result of the non-availability of financial statements), or
(3) if in the good faith judgment of the CME Group Board of Directors, it would
be materially detrimental to CME Group or its securityholders for a registration or
underwritten offering under this Section 3.4 to be effected at such time.
(ii) Upon receipt of any Deferral Notice, BVMF agrees that it shall not sell
any Registrable Securities pursuant to the Registration Statement (including any
related Prospectus) until it receives copies of the supplemented or amended
Prospectus provided for in Section 3.4(c)(iv) below and/or is notified of
the effectiveness of the post-effective amendment to the Registration Statement
provided for in Section 3.4(c)(iv) below, or until it is advised in writing
by CME Group that the Prospectus may be used. BVMF agrees to treat the existence
of, and facts relating to, any Deferral Notice or any notice pursuant to Section
3.4(b)(iv) as confidential and shall not disclose, and shall cause its officers
and directors not to disclose, the existence of, or any facts relating to, any
Deferral Notice or any notice pursuant to Section 3.4(b)(iv) to any Person
other than to those of BVMF’s officers and directors who need to know
such information for purposes of the performance of their duties as officers
and directors of BVMF.
(iii) In the case of a suspension pursuant to Section 3.4(c)(i)(1), CME
Group shall use commercially reasonable efforts to cause such stop order to be
lifted as promptly as practicable.
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(iv) In the case of a suspension pursuant to Section 3.4(c)(i)(2), CME
Group shall as promptly as practicable prepare and file a post effective amendment
to such Registration Statement or a supplement to the related Prospectus so that
such Registration Statement does not 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 not misleading, and such Prospectus does not contain any
untrue statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they were
made, not misleading, as thereafter delivered to the purchasers of the Registrable
Securities being sold thereunder, and, in the case of a post effective amendment to
the Registration Statement use commercially reasonable efforts to cause it to be
declared effective as promptly as is reasonably practicable.
(v) CME Group shall be entitled to exercise its rights pursuant to this
Section 3.4(c) to suspend the availability of a Registration Statement or
any Prospectus in connection with developments covered by Section
3.4(c)(i)(3) no more than two (2) times in any calendar year and for no more
than an aggregate of one-hundred twenty (120) days. CME Group shall not be required
to specify in the related Deferral Notice to BVMF the nature of the developments
covered by Section 3.4(c)(i)(3) giving rise to a suspension.
(d) Registration Expenses. In connection with the performance of its obligations
under this Section 3.4, CME Group shall pay all fees and disbursements of CME Group’s legal
counsel, CME Group’s independent registered public accounting firm and any other Persons retained
by CME Group, and any other expenses incurred by CME Group. CME Group and BVMF shall each pay one
half of any registration fees under the Securities Act. BVMF shall pay all printing expenses, any
discounts, selling commissions and transfer taxes, if any, attributable to the registration or sale
of Registrable Securities, as well as the fees and disbursements of counsel to BVMF and any other
Persons retained by BVMF, and any other expenses incurred by BVMF.
(e) Indemnity.
(i) CME Group agrees to indemnify BVMF, and each Person, if any, who controls
BVMF within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act, including BVMF’s officers, directors, employees, agents and
representatives, against any and all Losses arising out of or based on any untrue
statement or alleged untrue statement of a material fact contained in the
Registration Statement, including any preliminary or final prospectus contained therein or any amendment or supplement thereto or
any documents incorporated therein by reference or contained in any free writing
prospectus (as such term is defined in Rule 405) prepared by CME Group or authorized
by it in writing for use by BVMF; or the omission therefrom of a material fact
required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading; provided,
however, that this indemnity shall not apply to any Loss to
22
the extent arising out
of any untrue statement or omission made in reliance upon and in conformity with
information furnished to CME Group in writing by or on behalf of BVMF expressly for
use in the Registration Statement, including any preliminary or final prospectus
contained therein or any amendment or supplement thereto or any documents
incorporated therein by reference or contained in any free writing prospectus (as
such term is defined in Rule 405) prepared by CME Group or authorized by it in
writing for use by BVMF; and provided further, however, that this indemnity shall
not apply to any Loss to the extent that any such untrue statement or omission is
corrected in an amendment to the Registration Statement or an amendment or
supplement to the Prospectus, or any document incorporated by reference therein, and
BVMF fails to deliver such amendment or supplement to the Person asserting such Loss
after CME Group had furnished BVMF with a sufficient number of copies of the same,
or if BVMF received written notice from CME Group of the existence of such untrue
statement or omission and BVMF continued to dispose of Registrable Securities prior
to the receipt by BVMF of an amendment or supplement that corrected such untrue
statement or omission or a notice from CME Group that the use of the existing
Prospectus may be resumed.
(ii) In connection with any Registration Statement in which BVMF is
participating by registering Registrable Securities, BVMF agrees to indemnify CME
Group, and each Person, if any, who controls CME Group within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act, including CME
Group’s officers, directors, employees, agents and representatives, against any and
all Losses described in the indemnity contained in Section 3.4(e)(i) but
only with respect to any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement, including any preliminary or final
prospectus contained therein or any amendment or supplement thereto or any documents
incorporated therein by reference or contained in any free writing prospectus (as
such term is defined in Rule 405) prepared by CME Group or authorized by it in
writing for use by BVMF; or the omission therefrom of a material fact required to be
stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading; but only to the extent
made in reliance upon and in conformity with information furnished in writing to CME
Group by or on behalf of BVMF expressly for use therein.
(iii) Each indemnified party shall give notice as promptly as reasonably
practicable to each indemnifying party of any action or proceeding commenced against
it in respect of which indemnity may be sought under this Section 3.4, but failure to so notify an indemnifying party
shall not relieve such indemnifying party from any liability hereunder to the extent
it is not prejudiced as a result thereof. In case any such action shall be brought
against any indemnified party, the indemnifying party shall be entitled to
participate therein and, to the extent that it shall wish to assume the defense
thereof, with counsel reasonably satisfactory to such indemnified party, and, after
notice from the indemnifying party to such indemnified party of its election so to
assume the
23
defense thereof, such indemnifying party shall not be liable to such
indemnified party under this Section 3.4 for any legal expenses of other
counsel or any other expenses, in each case subsequently incurred by such
indemnified party, in connection with the defense thereof. No indemnifying party
shall, without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any litigation,
or any investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever in respect of which indemnification or
contribution is sought under this Section 3.4(e) (whether or not the
indemnified parties are actual or potential parties thereto), unless such
settlement, compromise or consent includes an unconditional release of each
indemnified party from all liability arising out of such litigation, investigation,
proceeding or claim. No indemnified party shall, without the prior written consent
of the indemnifying party, effect any settlement of any commenced or threatened
litigation, investigation, proceeding or claim in respect of which any
indemnification is sought hereunder.
(iv) If the indemnification provided for in this Section 3.4(e) from
the indemnifying party is unavailable to an indemnified party hereunder in respect
of any Losses referred to in this Section 3.4(e), the indemnifying party, in
lieu of indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of such Losses, in such proportion as
is appropriate to reflect the relative fault of the indemnifying party and
indemnified party in connection with the actions which resulted in such Losses, as
well as any other relevant equitable considerations. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall
be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.
(v) The obligations of CME Group and BVMF under this Section 3.4(e)
shall survive the completion of any offering of Registrable Securities pursuant to
any Registration Statement under this Agreement.
(f) In connection with any Registration Statement in which BVMF is participating by
registering Registrable Securities, BVMF shall (i) furnish to CME Group such information regarding
itself, its relationship to CME Group and its Affiliates, the CME Group Common Stock Beneficially
Owned by it, the Registrable Securities held by it, and the intended method of disposition, if any,
of such securities as is required to be included under the Securities Act in the Registration
Statement (or any amendment thereto) or any Prospectus (or any amendment or supplement thereto),
(ii) comply with the prospectus delivery requirements under the Securities Act in connection with
the sale or other distribution of Registrable Securities pursuant to the Registration Statement and (iii) report to CME Group all sales or other
distributions of Registrable Securities pursuant to the Registration Statement. The inclusion of
BVMF’s Registrable Securities in the Registration Statement is subject to the receipt of the
information specified in Section 3.4(f)(i).
(g) Rule 144 Reporting. With a view to making available to BVMF the benefits of
certain rules and regulations of the SEC which may permit the sale of the Registrable
24
Securities to
the public without registration, CME Group agrees to use commercially reasonable efforts to:
(i) make available adequate current public information with respect to CME
Group, as contemplated by Rule 144(c)(1) under the Securities Act, at all times
after the termination of the Restricted Period; and
(ii) so long as BVMF owns any Registrable Securities, furnish to BVMF forthwith
upon request: a written statement by CME Group as to its compliance with the current
public information requirements of Rule 144 under the Securities Act; a copy of the
most recent annual or quarterly report of CME Group; and such other reports and
documents as BVMF may reasonably request in availing itself of any rule or
regulation of the SEC allowing it to sell any such securities without registration.
Section 3.5 No Sale During Blackout Periods.
(a) Notwithstanding anything in this Agreement to the contrary, for so long as a BVMF
Designated Director is serving as a member of the CME Group Board of Directors, BVMF agrees that it
shall not Transfer any Equity Security of CME Group, whether pursuant to Rule 144 under the
Securities Act, under the Registration Statement (including any related Prospectus) or otherwise,
during any blackout periods under CME Group’s securities law compliance policies applicable to all
members of the CME Group Board of Directors, including the regular quarterly blackout periods
surrounding CME Group’s earnings releases.
(b) Notwithstanding anything in this Agreement to the contrary, for so long as a CME Group
Designated Director is serving as a member of the BVMF Board of Directors, CME Group agrees that it
shall not Transfer any Equity Security of BVMF during any blackout periods under CVM’s Regulation
No. 358/02 or under BVMF’s compliance policies applicable to all members of the BVMF Board of
Directors, including the regular quarterly blackout periods surrounding BVMF’s earnings releases.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF BVMF
Except as otherwise specifically disclosed or identified in the BVMF CVM Documents filed since
December 31, 2008 (excluding any risk factor disclosure contained in the BVMF CVM Documents and any
disclosure of risks included in any “forward-looking statements” disclaimer or other statements that are predictive or forward-looking in nature)
or in the disclosure schedules (the “BVMF Disclosure Schedules”) delivered to CME Group by
BVMF prior to the execution of this Agreement (with specific reference to the representations and
warranties in this Article IV to which the information in such letter relates), BVMF
represents and warrants to CME Group as follows:
Section 4.1 Corporate Existence and Power. BVMF (x) is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its formation, (y) has all requisite power and authority to own and operate its
property, to lease the property it operates
25
as lessee and to conduct the business in which it is
currently engaged and (z) is duly qualified to do business and is in good standing under the laws
of each jurisdiction in which its ownership, lease or operation of property or the conduct of its
business requires such qualification, except where the failure to be so qualified would not
reasonably be expected to have a material adverse effect on the Condition of BVMF. BVMF has the
power and authority to execute, deliver and perform its obligations under this Agreement and each
Ancillary Agreement. No jurisdiction, other than those in which BVMF is duly qualified, has
claimed in writing that BVMF is required to qualify as a foreign corporation or other entity
therein, and BVMF does not file any franchise, income or other tax returns in any other
jurisdiction based upon the ownership or use of property therein or the derivation of income
therefrom. BVMF has made available to CME Group true, correct and complete copies of its
Organizational Documents, as amended and in effect on the date of this Agreement.
Section 4.2 Authorization; No Contravention. Assuming all of the filings, consents and approvals set forth in Section 4.3 have been
made or obtained, the execution, delivery and performance by BVMF of this Agreement and each
Ancillary Agreement and the transactions contemplated hereby and thereby (i) have been duly
authorized by all necessary action of BVMF, (ii) do not contravene the terms of the Organizational
Documents of BVMF, (iii) do not violate, conflict with or result in any breach, default or
contravention of (or with due notice or lapse of time or both would result in any breach, default
or contravention of), or the creation of any Lien under, any Contractual Obligation of BVMF or its
Subsidiaries or any material Requirement of Law applicable to BVMF or its Subsidiaries and (iv) do
not violate any judgment, injunction, writ, award, decree or order of any nature (collectively,
“Orders”) of any Governmental Authority against, or binding upon, BVMF or its Subsidiaries
or any of their respective assets or properties. On April 20, 2010, BVMF duly convened and held an
extraordinary meeting of the shareholders of BVMF (the “Extraordinary Shareholders
Meeting”) at which the shareholders of BVMF approved the purchase by BVMF of the CME Group
Shares as contemplated by this Agreement (the “BVMF Shareholder Approval”). The receipt of
the BVMF Shareholder Approval is the only vote of the holders of Equity Securities of BVMF
necessary to approve this Agreement and the transactions contemplated hereby. A true and complete
copy of the minutes of the Extraordinary Shareholders Meeting containing the BVMF Shareholder
Approval have been delivered to CME Group. BVMF has (i) filed the minutes of the Extraordinary
Shareholders Meeting with the São Paulo Registry of Commerce and the CVM, and (ii) publish such
minutes in the Official Gazette and in the Jornal Valor Econômico. As soon as such minutes were
registered, the official certification of such registration was also published in the same manner. All publications were then filed with the São
Paulo Registry of Commerce.
Section 4.3 Governmental Authorization; Third Party Consents. Except for (i) the consent of the Conselho Administrativo de Defesa Econômica, the Secretaria de
Direito Econômico — SDE, and Secretaria de Acompanhamento Econômico — SEAE (collectively,
“XXXX”), (ii) the approval of the Technology Agreement by the National Institute of
Industrial Property (the “INPI”) and (iii) any required filings, consents or approvals
under the HSR Act, no approval, consent, compliance, exemption, authorization, qualification,
registration or other action by, or notice to, or filing with, any Governmental Authority with
jurisdiction or supervision over BVMF or its Subsidiaries or any other Person is necessary or
required to be made or obtained in connection with the execution, delivery or performance by, or
enforcement
26
against, BVMF of this Agreement, each Ancillary Agreement or the transactions
contemplated hereby or thereby.
Section 4.4 Binding Effect. This Agreement has been duly executed and delivered by BVMF. Each of the Ancillary
Agreements will be duly executed and delivered by BVMF concurrently with the Closing. This
Agreement constitutes, and upon execution and delivery by BVMF, each Ancillary Agreement will
constitute, the legal, valid and binding obligations of BVMF, enforceable against BVMF in
accordance with their terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar Laws affecting
the enforcement of creditors’ rights generally and by general principles of equity relating to
enforceability (regardless of whether considered in a proceeding at law or in equity).
Section 4.5 Litigation. There is no Claim pending or, to the knowledge of BVMF, threatened, at law, in equity, in
arbitration or before any Governmental Authority against BVMF seeking to enjoin or restrain the
execution, delivery or performance of this Agreement or any of the Ancillary Agreements, other than
any such Claims that have not materially impaired, and would not reasonably be expected to
materially impair, the ability of BVMF to perform its obligations under this Agreement or any
Ancillary Agreement or to consummate the transactions contemplated hereby and thereby. No Order
has been issued by any Governmental Authority against BVMF purporting to enjoin or restrain the
execution, delivery or performance of this Agreement or any of the Ancillary Agreements.
Section 4.6 Accredited Investor; Disclosure of Information. BVMF is an “accredited investor” within the meaning of Rule 501 of Regulation D of the
Securities Act. BVMF is acquiring the CME Group Shares solely for its own account for investment
with no present intention to distribute any of the CME Group Shares to any Person in violation of
the Securities Act or any other applicable securities Laws and will not transfer any of the CME
Group Shares except in compliance with the registration requirements or exemption provisions of the
Securities Act and any other applicable securities laws. BVMF represents that
it has been given access to all information that it considers necessary or appropriate for deciding
whether to purchase the CME Group Shares. BVMF further represents that it has had an opportunity
to ask questions and receive answers from CME Group regarding the business, operations, financial
condition, assets, liabilities and other matters relevant to BVMF’s purchase of the CME Group
Shares.
Section 4.7 CVM Documents; Financial Statements. Since January 1, 2008, BVMF has filed all reports, schedules, forms, statements and other
documents required to be filed with or to any Governmental Authority under applicable CVM and
Central Bank of Brazil rules (together with all exhibits, financial statements and schedules
thereto and all information incorporated by reference therein, the “BVMF CVM Documents”).
As of its respective date (or, if amended, as of the date of the last such amendment), each of the
BVMF CVM Documents complied, when filed, in all material respects with the requirements of the
statutes, rules and regulations of the CVM and Central Bank of Brazil applicable to such BVMF CVM
Documents, and did not, and any BVMF CVM Documents filed with the CVM subsequent to the date hereof
will not, contain any untrue statement of a material fact or omit to state a material fact required
to be stated therein or incorporated by reference therein or necessary in order to make the
27
statements therein, in light of the circumstances under which they were made, not misleading. The
financial statements of BVMF (the “BVMF Financial Statements”) included in the BVMF CVM
Documents (a) have been prepared from, are in accordance with and accurately reflect, in all
material respects, the books and records of BVMF and its Subsidiaries, (b) have been prepared in
accordance with Brazilian GAAP applied on a consistent basis throughout the periods presented
therein, except as otherwise noted therein, and (c) present fairly, in all material respects, the
financial position, results of operations, shareholders’ equity, cash flows and value added of BVMF
and its Subsidiaries for the respective periods indicated.
Section 4.8 No Material Adverse Change. Since December 31, 2009, there has not been any material adverse change in the Condition of
BVMF, other than adverse changes occurring as a result of general economic, market or industry
conditions which do not have a disproportionate effect on BVMF or its Subsidiaries as compared to
other persons in the industry in which BVMF and its Subsidiaries conduct business.
Section 4.9 Broker’s, Finder’s or Similar Fees. There are no brokerage commissions, finder’s fees or similar fees or commissions payable by BVMF
or any of its Subsidiaries in connection with the transactions contemplated by this Agreement and
by any Ancillary Agreement based on any agreement, arrangement or understanding with BVMF or any of
its Subsidiaries or any action taken by any such Person.
ARTICLE V
REPRESENTATIONS AND WARRANTIES OF CME GROUP
Except as otherwise specifically disclosed or identified in the CME Group SEC Documents filed
since December 31, 2008 (excluding any risk factor disclosure contained in the CME Group SEC Documents and any disclosure of risks included in any “forward-looking
statements” disclaimer or other statements that are predictive or forward-looking in nature) or in
the disclosure schedules (the “CME Group Disclosure Schedules”) delivered to BVMF by CME
Group prior to the execution of this Agreement (with specific reference to the representations and
warranties in this Article V to which the information in such letter relates), CME Group
represents and warrants to BVMF as follows:
Section 5.1 Corporate Existence and Power. Each of CME Group and each of the Covered Subsidiaries (x) is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its formation, (y) has all requisite
power and authority to own and operate its property, to lease the property it operates as lessee
and to conduct the business in which it is currently engaged and (z) is duly qualified to do
business and is in good standing under the laws of each jurisdiction in which its ownership, lease
or operation of property or the conduct of its business requires such qualification, except where
the failure to be so qualified would not reasonably be expected to have a material adverse effect
on the Condition of CME Group. CME Group and CME have the power and authority to execute, deliver
and perform their respective obligations under this Agreement and each of the Ancillary Agreements
to which it will be a party, as applicable. No jurisdiction, other than those in which CME Group
or its Covered Subsidiaries are duly qualified, has claimed in writing that either CME Group or any
of its Covered Subsidiaries, as the case may be, is required to qualify as a foreign corporation or
28
other entity therein, and neither CME Group nor any of its Covered Subsidiaries files any
franchise, income or other tax returns in any other jurisdiction based upon the ownership or use of
property therein or the derivation of income therefrom. CME Group has made available to BVMF true,
correct and complete copies of its Organizational Documents, as amended and in effect on the date
of this Agreement.
Section 5.2 Authorization; No Contravention. Assuming all of the filings, consents and approvals set forth in Section 5.3 have been
made or obtained, the execution, delivery and performance by CME Group of this Agreement and by CME
Group or CME of each Ancillary Agreement to which it is a party and the transactions contemplated
hereby and thereby (i) have been duly authorized by all necessary action of CME Group and CME, (ii)
do not contravene the terms of the Organizational Documents of CME Group or CME, (iii) do not
violate, conflict with or result in any breach, default or contravention of (or with due notice or
lapse of time or both would result in any breach, default or contravention of), or the creation of
any Lien under, any Contractual Obligation of CME Group or any Covered Subsidiary or any material
Requirement of Law applicable to CME Group or any Covered Subsidiary and (iv) do not violate any
Order of any Governmental Authority against, or binding upon, CME Group or any Covered Subsidiary
or any of their respective assets or properties.
Section 5.3 Governmental Authorization; Third Party Consents. Except for (i) the consent of the XXXX, (ii) the approval of the Technology Agreement by the
INPI and (iii) any required filings, consents or approvals under the HSR Act, no approval, consent,
compliance, exemption, authorization, qualification, registration or other action by, or
notice to, or filing with, any Governmental Authority with jurisdiction or supervision over CME
Group or its Subsidiaries or any other Person is necessary or required to be made or obtained in
connection with the execution, delivery or performance by, or enforcement against, CME Group or its
Subsidiaries of this Agreement and the Ancillary Agreements or the transactions contemplated hereby
or thereby, as applicable.
Section 5.4 Binding Effect. This Agreement has been duly executed and delivered by CME Group. Each of the Ancillary
Agreements will be duly executed and delivered by CME Group or CME, as applicable, concurrently
with the Closing. This Agreement constitutes, and upon execution and delivery by CME Group or CME,
as applicable, each of the Ancillary Agreements will constitute, the legal, valid and binding
obligation of CME Group or its applicable Subsidiary, as the case may be, enforceable against CME
Group or its applicable Subsidiary, as the case may be, in accordance with their terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance or transfer, moratorium or similar Laws affecting the enforcement of creditors’ rights
generally and by general principles of equity relating to enforceability (regardless of whether
considered in a proceeding at law or in equity).
Section 5.5 Litigation. There is no material Claim pending or, to the knowledge of CME Group, threatened, at law, in
equity, in arbitration or before any Governmental Authority against CME Group or any of its
Subsidiaries. The forgoing includes any Claims seeking to enjoin or restrain the execution,
delivery or performance of this Agreement or any of the Ancillary Agreements, other than any such
Claims that have not materially impaired, and would not reasonably be expected to materially
impair, the ability of
29
CME Group or CME, as applicable, to perform its obligations under this
Agreement or any Ancillary Agreement or to consummate the transactions contemplated hereby and
thereby. No Order has been issued by any Governmental Authority against CME Group purporting to
enjoin or restrain the execution, delivery or performance of this Agreement or any of the Ancillary
Agreements.
Section 5.6 Compliance with Laws; Permits.
(a) CME Group and its Subsidiaries are in compliance in all material respects with all
Requirements of Law and all Orders of any Governmental Authority against CME Group and such
Subsidiaries.
(b) Except as would not reasonably be expected to have a material adverse effect on the
Condition of CME Group, (i) each of CME Group and each of the Covered Subsidiaries has all Permits
that are necessary in order for it to own or lease its properties and assets and conduct its
business as currently conducted; (ii) such Permits are in full force and effect; (iii) to the
knowledge of CME Group, no material suspension or cancellation of such Permits is threatened and
(iv) no violations are or have been recorded in respect of any Permit.
Section 5.7 Capitalization.
(a) As of the date of this Agreement, the authorized capital stock of CME Group consists of
(i) 1,000,000,000 shares of CME Group Class A Common Stock; (ii) 3,138 shares of Class B Common
Stock, par value $0.01 per share (the “CME Group Class B Common Stock” and, together with
the CME Group Class A Common Stock, the “CME Group Common Stock”), of which 625 shares have
been designated as Class X-0 Xxxxxx Xxxxx, 000 shares have been designated as Class B-2 Common
Stock, 1,287 shares have been designated as Class B-3 Common Stock and 413 shares have been
designated as Class B-4 Common Stock; and (iii) 10,000,000 shares of Preferred Stock, par value
$0.01 per share (the “CME Group Preferred Stock”), of which 140,000 shares have been
designated as Series A Junior Participating Preferred Stock.
(b) At the close of business on June 16, 2010, (i) 65,699,160 shares of CME Group Class A
Common Stock were issued and outstanding; (ii) 3,138 shares of CME Group Class B Common Stock were
issued and outstanding as follows: (A) 625 shares of Class B-1 Common Stock were issued and
outstanding, (B) 813 shares of Class B-2 Common Stock were issued and outstanding, (C) 1,287 shares
of Class B-3 Common Stock were issued and outstanding and (D) 413 shares of Class B-4 Common Stock
were issued and outstanding; (iii) no shares of CME Group Preferred Stock were issued and
outstanding; and (iv) 9,565,000 shares of CME Group Class A Common Stock were reserved for issuance
pursuant to CME Group’s equity or equity-based compensation plans. All shares of CME Group Common
Stock outstanding as of the date of this Agreement are duly authorized, validly issued, fully paid
and nonassessable and have been issued in compliance in all material respects with applicable Laws.
As of the date hereof, there are no declared or accrued but unpaid dividends or distributions with
respect to any shares of CME Group Common Stock.
30
(c) On the Closing Date, the CME Group Shares shall be duly authorized and, when delivered to
BVMF and paid for in accordance with the terms of this Agreement, will be validly issued, fully
paid and non-assessable and will be free and clear of all Liens, other than any Liens created by
BVMF and the restrictions on Transfer created by this Agreement or arising under the Securities Act
or other applicable Law.
Section 5.8 SEC Documents; Financial Statements; Undisclosed Liabilities.
(a) Since January 1, 2008, CME Group has timely filed or furnished, as applicable, all
reports, registrations, schedules, forms, statements and other documents required to be filed or
furnished with or to the SEC (together with all exhibits, financial statements and schedules
thereto and all information incorporated by reference therein, the “CME Group SEC
Documents”). As of its respective date (or, if amended, as of the date of the last such
amendment), each of the CME Group SEC Documents complied, when filed or furnished, in all material
respects with the requirements of the Securities Act or Exchange Act as applicable to such CME
Group SEC Documents, and did not, and any CME Group SEC Documents filed with the SEC subsequent to
the date hereof will not, contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or incorporated by reference therein or necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The financial statements of CME Group (the “CME Group
Financial Statements”) included in the CME Group SEC Documents (a) have been prepared from, are
in accordance with and accurately reflect, in all material respects, the books and records of CME
Group and its Subsidiaries, (b) have been prepared in accordance with U.S. GAAP applied on a
consistent basis throughout the periods presented therein, except as otherwise noted therein, and
(c) present fairly, in all material respects, the financial position, results of operations,
shareholders’ equity and cash flows of CME Group and its Subsidiaries for the respective periods
indicated.
(b) CME Group and its Subsidiaries do not have any Liabilities of a nature required to be set
forth or reflected in a balance sheet prepared in accordance with U.S. GAAP, other than (x)
Liabilities fully and adequately reflected in or reserved against, or the object of management
explanatory notes in the CME Group Financial Statements, (y) Liabilities incurred since March 31,
2010 in the ordinary course of business consistent with past practice and (z) Liabilities that
would not, individually or in the aggregate, reasonably be expected to have a material adverse
effect on the Condition of CME Group.
Section 5.9 No Material Adverse Change. Since December 31, 2009, there has not been any material adverse change in the Condition of CME
Group, other than adverse changes occurring as a result of general economic, market or industry
conditions which do not have a disproportionate effect on CME Group or its Subsidiaries as compared
to other persons in the industry in which CME Group and its Subsidiaries conduct business.
Section 5.10 Taxes. Except as specifically disclosed or identified in the CME Group Financial Statements, (a) CME
Group and its Subsidiaries have timely filed or caused to be filed all material Tax Returns that
they are required to file on and through the date hereof (including all applicable extensions), and
all such material Tax Returns are accurate and complete; (b) CME Group and its Subsidiaries have
paid in full, or adequate provision has been
31
made on the CME Group Financial Statements (in
accordance with U.S. GAAP) for, all material Taxes with respect to periods ending on or before the
date of the CME Group Financial Statements; (c) with respect to all Tax Returns of CME Group and
its Subsidiaries, (i) there is no material unpaid Tax deficiency proposed in writing against CME
Group or its Subsidiaries and (ii) no audit is in progress with respect to any material Tax
Returns, no extension of time is in force with respect to any date on which any material Tax
Returns were or are to be filed and no waiver or agreement is in force for the extension of time
for the assessment or payment of any material Tax; (d) CME Group and its Subsidiaries have paid in
full or made adequate provision on its books and records for all material Taxes with respect to
periods ending after the date of the most recent CME Group Financial Statements through the date
hereof; and (e) there are no Liens for material Taxes on the assets of CME Group and its
Subsidiaries, other than Liens for Taxes not yet due and payable.
Section 5.11 Regulatory Matters. No material change is required in CME Group’s or any of its Subsidiaries’ processes, properties
or procedures to comply with any rules or regulations of the CFTC in effect on the date hereof or
enacted as of the date hereof and scheduled to be effective after the date hereof, and neither CME
Group nor any of its Covered Subsidiaries has received any written notice or written communication
of any material noncompliance with any rules or regulations of the CFTC.
Section 5.12 Broker’s, Finder’s or Similar Fees. No Person is entitled to any brokerage commissions, finder’s fees or similar fees or
commissions payable by CME Group or any of its Subsidiaries in connection with the transactions
contemplated by this Agreement and by any Ancillary Agreement based on any agreement, arrangement
or understanding with CME Group or any of its Subsidiaries or any action taken by any such Person.
ARTICLE VI
COVENANTS
Section 6.1 Commercially Reasonable Efforts. Subject to the terms and conditions herein provided, each Party hereto agrees to use its
commercially reasonable efforts to take, or cause to be taken, all appropriate action, and to do,
or cause to be done, all things necessary, proper or advisable under applicable Requirements of Law
to consummate and make effective, in the most expeditious manner practicable, the transactions
contemplated by this Agreement and the Ancillary Agreements.
Section 6.2 Regulatory Approvals.
(a) Subject to the terms and conditions of this Agreement, each of the Parties hereto shall
(i) use commercially reasonable efforts to take, or cause to be taken, all actions and to do, or
cause to be done, all things necessary, proper or advisable under applicable Law to consummate the
transactions contemplated by this Agreement, including cooperating and consulting with each other
and using commercially reasonable efforts to prepare and file as promptly as practicable all
documentation to effect all necessary filings, notices, petitions, statements, registrations,
submissions of information, applications and other documents necessary to consummate the
transactions contemplated by this Agreement or any of the
32
Ancillary Agreements, and (ii) use
commercially reasonable efforts to obtain, or cause to be obtained, all consents, authorizations
and approvals from all Governmental Authorities required to be obtained by such Party or any of its
Affiliates, in each case in connection with this Agreement or the Ancillary Agreements, or the
consummation of the transactions contemplated hereby or thereby. In furtherance and not in
limitation of the foregoing, each of the Parties hereto shall (i) make or cause to be made the
filings required of such Party under the Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976 (the
“HSR Act”) and with XXXX with respect to the transactions contemplated by this Agreement as
promptly as practicable after the date of this Agreement, (ii) comply at the earliest practicable
date with any request under the HSR Act or by XXXX for additional information, documents or other
materials received by such Party from the U.S. Federal Trade Commission, the Antitrust Division of the U.S. Department of Justice, CADE
or by any other Governmental Authority in respect of such filings or such transactions, and (iii)
act in good faith and reasonably cooperate with the other Party in connection with any such filings
(including, if requested by the other Party, to accept all reasonable additions, deletions or
changes suggested by the other Party in connection therewith, unless there is a reasonable
objection thereto) and in connection with resolving any investigation or other inquiry of any such
agency or other Governmental Authority under the HSR Act and any other Laws that are designed to
prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint
of trade (collectively, the “Antitrust Laws”) with respect to any such filing or any such
transaction. To the extent not prohibited by applicable Law, each Party shall use its commercially
reasonable efforts to furnish to the other Party all information required for any application or
other filing to be made pursuant to any applicable Law in connection with the transactions
contemplated by this Agreement or any Ancillary Agreement. Each Party shall give the other Party
reasonable prior notice of any communication with, and any proposed understanding, undertaking or
agreement with, any Governmental Authority regarding any such filings or any such transaction. The
Parties hereto agree that both CME Group and BVMF shall be represented at all in person meetings
and in all substantive conversations with any Governmental Authority regarding the matters set
forth in this Section 6.2(a), except if, and to the extent, that any Governmental Authority
objects to any Party’s being represented at any such meeting or in any such conversation. The
Parties hereto will consult and cooperate with one another in connection with any analyses,
appearances, presentations, memoranda, briefs, arguments, opinions and proposals made or submitted
by or on behalf of any Party hereto in connection with proceedings under or relating to the HSR Act
and the other Antitrust Laws. The filing fees associated with the filings under the HSR Act and
with XXXX and any other similar filings required in any other jurisdictions shall be paid by BVMF.
Each of CME Group and BVMF will request early termination of the waiting period with respect to the
transactions contemplated by this Agreement under the HSR Act.
(b) Notwithstanding anything to the contrary in Section 6.2(a), neither CME Group nor
BVMF or any of their respective Subsidiaries shall be required to take any action required under
Section 6.2(a) that, individually or in the aggregate, would reasonably be expected to
result in (A) a material adverse diminution in the benefits expected to be derived from the
transactions contemplated by this Agreement and the Ancillary Agreements or (B) any adverse effect
that is not de minimis on the business of either CME Group (or any of its Subsidiaries) or BVMF (or
any of its Subsidiaries), respectively, following the Closing; provided that the imposition of any
limitation on, or any required change in, the market practices or structure of either CME Group (or
any of its Subsidiaries) or BVMF (or any of its Subsidiaries),
33
respectively, or any requirement to
license or sell any assets of either CME Group (or any of its Subsidiaries) or BVMF (or any of its
Subsidiaries), respectively, shall in no event be deemed to be de minimis (any such action
described in clause (A) or (B), a “Burdensome Condition”).
Section 6.3 Publicity. Neither of the Parties or their respective Affiliates or advisors shall issue or cause the
publication of any press release or other announcement with respect to the transactions
contemplated by this Agreement without prior consent of the other Party, which consent shall not be
unreasonably withheld, conditioned or delayed, except as may be required by Law or by any
listing agreement with a national securities exchange or trading market, in which case the other
Party shall have the right to review (to the extent practicable) such press release or announcement
prior to publication.
Section 6.4 Director Designation Rights.
(a) CME Group Designated Director. CME Group hereby designates Xxxxx Xxxxxxx, who is
currently a member of the BVMF Board of Directors, as the initial CME Group Designated Director.
Following the Closing, so long as a CME Group Designee Termination Event shall not have occurred,
(i) BVMF shall, subject to the fiduciary duties of the BVMF Board of Directors, use its best
efforts to include the CME Group Designated Director on the slate of directors for election to the
BVMF Board of Directors at each regular or extraordinary general meeting of the shareholders of
BVMF and in each action by written consent executed in lieu of such a meeting at which directors
are to be elected, and at any such election, BVMF shall, through the BVMF Board of Directors,
recommend to the shareholders of BVMF that they vote their voting Equity Securities in favor of the
CME Group Designated Director, and (ii) if a vacancy is created on the BVMF Board of Directors by
reason of the incapacity, death, removal or resignation of the CME Group Designated Director, then
CME Group shall designate a new CME Group Designated Director who BVMF shall cause to be appointed
to fill such vacancy, subject to the rights of shareholders set forth in the Organizational
Documents of BVMF and under applicable Law. In connection with an election at a regular general
meeting of the shareholders of BVMF, CME Group shall provide notice to BVMF of the proposed CME
Group Designated Director to be nominated for election at such meeting not less than sixty (60)
days before the anniversary date of BVMF’s call notice released to its shareholders in connection
with the prior year’s general meeting. In connection with an election at a meeting of shareholders
other than regular general meeting, CME Group shall provide notice to BVMF of the proposed CME
Group Designated Director to be nominated for election at such meeting promptly following notice to
CME from BVMF that BVMF intends to call such meeting.
(b) BVMF Designated Director.
(i) CME Group shall use its best efforts to cause the CME Group Board of
Directors to increase the size of the CME Group Board of Directors and have,
concurrently with the Closing (or as promptly as practicable following the Closing
if the individual selected by BVMF to serve as the BVMF Designated Director is a
person other than BVMF’s Chairman or Chief Executive Officer), the BVMF Designated
Director appointed to the CME Group Board of Directors for a term ending at CME
Group’s 2011 annual meeting of shareholders. The initial BVMF Designated Director
to be appointed to the CME Group Board
34
of Directors concurrently with the Closing
shall be designated by BVMF at least three Business Days prior to the Closing Date.
(ii) Following the Closing, so long as a BVMF Designee Termination Event shall
not have occurred, (i) CME Group shall, subject to the fiduciary duties of the CME
Group Board of Directors, use its best efforts to include the BVMF Designated Director on the slate of directors for
election to the CME Group Board of Directors at each annual or special meeting of
the shareholders of CME Group at which the BVMF Designated Director is to be
elected, and at any such election, CME Group shall, through the CME Group Board of
Directors, recommend to the shareholders of CME Group that they vote their voting
Equity Securities in favor of the BVMF Designated Director, and (ii) if a vacancy is
created on the CME Group Board of Directors by reason of the incapacity, death,
removal or resignation of the BVMF Designated Director, then BVMF shall designate a
new BVMF Designated Director who CME Group shall cause to be appointed to fill such
vacancy, subject to the rights of shareholders set forth in the Organizational
Documents of CME Group and under applicable Law. In connection with an election at
an annual meeting of the shareholders of CME Group, BVMF shall provide notice to CME
Group of the proposed BVMF Designated Director to be nominated for election at such
meeting not less than sixty (60) days before the anniversary date of CME Group’s
proxy statement released to its shareholders in connection with the prior year’s
annual meeting. In connection with an election at a meeting of shareholders other
than an annual meeting, BVMF shall provide notice to CME Group of the proposed BVMF
Designated Director to be nominated for election at such meeting promptly following
notice to BVMF from CME Group that CME Group intends to call such meeting.
(c) D&O Insurance. Each of CME Group and BVMF shall use commercially reasonable
efforts to maintain directors’ and officers’ insurance (or similar liability insurance) covering
the BVMF Designated Director and the CME Group Designated Director (as applicable), and the amount
of such insurance and the terms and conditions thereof shall be no less favorable than those
available to any other member of the CME Group Board of Directors or the BVMF Board of Directors,
as the case may be. CME Group shall indemnify and hold harmless and provide advancement of
expenses to the BVMF Designated Director to the same extent any other member of the CME Group Board
of Directors is indemnified and held harmless or has the right to advancement of expenses pursuant
to the CME Group Organizational Documents. BVMF shall indemnify and hold harmless and provide
advancement of expenses to the CME Group Designated Director to the same extent any other member of
the BVMF Board of Directors is indemnified and held harmless or has the right to advancement of
expenses pursuant to the BVMF Organizational Documents.
Section 6.5 Termination of Designation Rights.
(a) CME Group’s director designation rights pursuant to Section 6.4(a) and the
Transfer restrictions pursuant to Section 3.1 with respect to shares of CME Group
35
Class A
Common Stock owned by BVMF shall terminate, at BVMF’s election, if any of the following events
shall have occurred (each, a “CME Group Designee Termination Event”):
(i) CME Group ceases to Beneficially Own at least (A) sixty percent (60%) of
the shares of common stock, no par value, of BVMF (the “BVMF Common Shares”) Beneficially Owned by CME Group immediately
following the Closing or (B) two percent (2%) of the total outstanding BVMF Common
Shares on a Fully Diluted Basis;
(ii) a Designated Event shall have occurred with respect to CME Group, except
that for purposes of this Section 6.5, references to fifty percent (50%) in
the definition of Designated Event shall be reduced to thirty percent (30%);
(iii) CME Group is in breach of Section 6.8 of this Agreement;
(iv) CME Group is in material breach of the Strategic Partnership Agreement,
and such breach has not been cured, or is incapable of being cured, within thirty
(30) Business Days after written notice by BVMF to CME Group of such breach;
(v) CME is in material breach of the Technology Agreement, and such breach has
not been cured, or is incapable of being cured, within thirty (30) Business Days
after written notice by BVMF to CME of such breach; or
(vi) CME Group enters into or consummates a BVMF Designated Exchange
Transaction with a BVMF Designated Exchange.
(b) BVMF’s director designation rights pursuant to Section 6.4(b) and the Transfer
restrictions pursuant to Section 3.1 with respect to BVMF Common Shares owned by CME Group
shall terminate, at CME Group’s election, if any of the following events shall have occurred (each,
a “BVMF Designee Termination Event”):
(i) BVMF ceases to Beneficially Own at least (A) sixty percent (60%) of the
shares of CME Group Class A Common Stock Beneficially Owned by BVMF immediately
following the Closing or (B) two percent (2%) of the total outstanding shares of CME
Group Class A Common Stock on a Fully Diluted Basis;
(ii) a Designated Event shall have occurred with respect to BVMF, except that
for purposes of this Section 6.5, references to fifty percent (50%) in the
definition of Designated Event shall be reduced to thirty percent (30%);
(iii) BVMF is in breach of Section 6.8 of this Agreement;
36
(iv) BVMF is in material breach of the Strategic Partnership Agreement, and
such breach has not been cured, or is incapable of being cured, within thirty (30)
Business Days after written notice by CME Group to BVMF of such breach;
(v) BVMF is in material breach of the Technology Agreement, and such breach has
not been cured, or is incapable of being cured, within thirty (30) Business Days
after written notice by CME Group to BVMF of such breach; or
(vi) BVMF enters into or consummates a CME Group Designated Exchange
Transaction with a CME Group Designated Exchange.
(c) Each Party’s designation rights under Section 6.4 shall terminate upon any
termination of the Strategic Partnership Agreement; provided, however, that if the
Strategic Partnership Agreement is terminated by BVMF as a result of CME Group’s material breach of
the Strategic Partnership Agreement as set forth in Section 6.5(a)(iv) or by CME Group as a
result of BVMF’s material breach of the Strategic Partnership Agreement as set forth in Section
6.5(b)(iv), then only the breaching party’s designation rights under Section 6.4 shall
automatically terminate pursuant to this Section 6.5(c).
(d) Each of the BVMF Board of Directors and the CME Group Board of Directors, as applicable,
shall give due consideration to any request by the other Party to waive a CME Group Designee
Termination Event or BVMF Designee Termination Event, as applicable.
(e) Any election by a Party to terminate the other Party’s designation rights as a result of a
designee termination event under this Section 6.5 shall be effective immediately upon
receipt of written notice of such election by the other Party, and such other Party shall cause its
designated director to immediately submit a written resignation to the CME Group Board of Directors
or the BVMF Board of Directors, as applicable.
Section 6.6 Amendment to Master Agreement. At the Closing, CME Group and BVMF shall enter into an amendment to the Master Agreement, in the
form attached as Exhibit C hereto (the “Master Agreement Amendment”).
Section 6.7 Ownership of Intellectual Property. In the event (i) this Agreement is terminated pursuant to Section 8.1 and, if as a
consequence thereof, the Technology Agreement is terminated pursuant to Section 15.2(e) thereof, or
(ii) CME Group causes the rescission of this Agreement in accordance with Section 6.12
following the termination of the Technology Agreement pursuant to Section 15.2(f) thereof , CME
Group shall own all intellectual property rights in any new intellectual property created or
reduced to practice in the development of the System (as such term is defined under the Technology
Agreement), provided that, with respect to intellectual property rights in any Jointly Developed
Modules (as such term is defined under the Technology Agreement), CME Group shall not, and shall
cause its controlled Affiliates not to, assert against BVMF a claim of intellectual property
infringement or misappropriation based on BVMF’s use or exploitation of such intellectual property.
37
Section 6.8 Standstill. After the Closing, each Party agrees that for so long as such Party maintains its director
designation rights pursuant to Section 6.4, without the prior written consent of the other
Party, it will not, and will cause its controlled Affiliates not to, (i) make, or in any way
participate in, directly or indirectly, any solicitation of proxies to vote, or seek to advise or
influence any person or entity with respect to the voting of, any voting securities of the other
Party or (ii) make any public announcement with respect to (a) any form of merger, tender or
exchange offer, consolidation, business combination, change of control or other similar transaction
with respect to the other Party; (b) any request to amend, waive or terminate the provisions of
this Section 6.8; or (c) any proposal or other statement inconsistent with the terms of
this Section 6.8. Notwithstanding anything to the contrary contained in this Agreement,
(i) the sole remedy of BVMF with respect to CME Group’s breach of this Section 6.8 shall be
BVMF’s rights (a) to terminate pursuant to Section 6.5(a)(iii) of this Agreement CME
Group’s director designation rights under Section 6.4 of this Agreement and (b) to
terminate the Strategic Partnership Agreement pursuant to Section 3.2(d) of the Strategic
Partnership Agreement and (ii) the sole remedy of CME Group with respect to BVMF’s breach of this
Section 6.8 shall be CME Group’s rights (a) to terminate pursuant to Section
6.5(b)(iii) of this Agreement BVMF’s director designation rights under Section 6.4 of
this Agreement and (b) to terminate the Strategic Partnership Agreement pursuant to Section
3.2(c) of the Strategic Partnership Agreement.
Section 6.9 Strategic Product Reports.
(a) Within thirty (30) days after the end of each semi-annual period ending June 30 and
December 31 of each year until the later of (i) the end of the Restricted Period (as such term is
defined in the Technology Agreement) and (ii) the occurrence of a CME Group Designee Termination
Event, BVMF shall deliver to CME Group in accordance with Section 10.3 a true and complete
list of all Products (or economic equivalents of Products) that generated 1% or more of the BVMF
Gross Trading Fees during the trailing twelve (12) month period ended as of the last day of such
semi-annual period (each, a “BVMF Strategic Product Report”). For the avoidance of doubt,
no Product the revenue with respect to which is excluded from the calculation of BVMF Gross Trading
Fees pursuant to the exclusion in clause (iii) of such definition shall be included on any
BVMF Strategic Product Report.
(b) Within thirty (30) days after the end of each semi-annual period ending June 30 and
December 31 of each year until the later of (i) the end of the Restricted Period (as such term is
defined in the Technology Agreement) and (ii) the occurrence of a BVMF Designee Termination Event,
CME Group shall deliver to BVMF in accordance with Section 10.3 a true and complete list of
all Products (or economic equivalents of Products) that generated 1% or more of the CME Group Gross
Trading Fees during the trailing twelve (12) month period ended as of the last day of such
semi-annual period (each, a “CME Group Strategic Product Report”). For the avoidance of
doubt, no Product the revenue with respect to which is excluded from the calculation of CME Group
Gross Trading Fees pursuant to the exclusion in clause (iii) of such definition shall be
included on any CME Group Strategic Product Report.
(c) Notwithstanding anything to the contrary in Sections 6.9(a) and (b) above,
within thirty (30) days after the end of any fiscal quarter, each of BVMF or CME Group
may elect, at its option, to deliver to the other Party in accordance with Section
10.3 a BVMF
38
Product Report or CME Group Product Report, as the case may be, setting forth a
true and complete list of all Products (or economic equivalents of Products) that generated 1% or
more of the BVMF Gross Trading Fees or CME Group Gross Trading Fees, as applicable, during the
trailing twelve (12) month period ended as of the last day of such fiscal quarter.
Section 6.10 Tax Cooperation. Following the Closing, (i) each Party shall furnish to the other Party copies of official
receipts for the payment of withholding Taxes on payments made by a Party to the other Party and
its Affiliates, (ii) CME Group shall furnish to BVMF such copies of official receipts for the
payment of Taxes by CME Group and its Subsidiaries (or such other evidence of such payment) as BVMF
may reasonably request from time to time, (iii) BVMF shall furnish to CME Group such copies of
official receipts for the payment of Taxes by BVMF and its Subsidiaries (or such other evidence of
such payment) as CME Group may reasonably request from time to time, provided that CME Group meets
the share ownership requirement of Section 902(a) of the US Internal Revenue Code of 1986, as
amended (the “Code”), with respect to BVMF or otherwise qualifies for “indirect” foreign
tax credits in the U.S. with respect to its investment in BVMF, and (iv) each Party shall cooperate
with the other Party (including by making knowledgeable personnel reasonably available) and shall
furnish such information to the other Party, as such Party may reasonably request from time to
time, to enable such Party to claim credits for Taxes paid by a Party and its Subsidiaries, to
prepare Tax Returns, to prepare for and defend against Tax audits and for other legitimate purposes
related to Taxes. Notwithstanding the foregoing, each Party and its respective Affiliates agree
that BVMF has no responsibility to determine its status as, or to take any action with respect to
its potential classification as a passive foreign investment company (“PFIC”) within the
meaning of Section 1297(a) of the Code. In the event that CME Group owns at least five percent
(5%) of the value of the outstanding shares of BVMF, reasonably determines that BVMF is properly
treated as a PFIC for United States federal income tax purposes, and undertakes to bear all costs
and expenses associated therewith, BVMF and its Affiliates shall instruct its independent auditors
(including their United States affiliates) to provide (and BVMF and its Affiliates shall cooperate
in so providing) to CME Group any information or statement requested by CME Group necessary to
allow CME Group to make a QEF election under Section 1295 of the Code with respect to BVMF or any
of its Subsidiaries.
Section 6.11 Disclosure Schedules. CME Group shall have the right until the date that is the third Business Day prior to the
Closing to update, supplement or amend the CME Group Disclosure Schedules with respect to any
matters arising after the date of this Agreement. Any such update, supplement or amendment of the
CME Group Disclosure Schedules shall not cure any breach of any representation or warranty of CME
Group contained in this Agreement for purposes of Section 7.3(a) or in any way impair
BVMF’s right to terminate this Agreement pursuant to Section8.1(d). However, any such
update, supplement or amendment of the CME Group Disclosure Schedules shall be given effect after
the Closing for purposes of determining whether any Indemnified Party is entitled to any rights of
indemnification pursuant to Section 9.2.
Section 6.12 Rescission. In the event the Technology Agreement is terminated pursuant to Section 15.2(f) thereof, CME
Group shall have right to cause the rescission of this Agreement. CME Group shall exercise such
right by delivery of written notice to BVMF within thirty (30) days of the date of such termination
of the Technology Agreement. In the event CME Group elects to exercise its rescission right
pursuant to this Section 6.12, such rescission shall be
39
effected by BVMF’s delivery to CME
Group of the certificate(s) or other instrument(s) evidencing the CME Group Shares acquired by BVMF
pursuant to this Agreement, free and clear of all Liens (other than Liens arising under the
Securities Act or other applicable Law), against payment in cash to BVMF in an amount equal to the
product of the number of CME Group Shares being delivered to CME Group multiplied by the Per Share
Price. Such payment shall be made by CME Group to BVMF by wire transfer of immediately available
funds to a bank account that has been designated by BVMF at least two (2) Business Days prior to
the Rescission Date agreed by the Parties. Any such rescission of the sale of the CME Group Shares
acquired by BVMF pursuant to this Agreement shall be made at the offices of CME Group as soon as
reasonably practicable after delivery to BVMF by CME Group of its notice electing to exercise the
rescission right but in any event within ten (10) Business Days thereafter (the “Rescission
Date”). For the avoidance of doubt, the number of CME Group Shares to be delivered by BVMF to
CME Group under this Section 6.12 and the Per Share Price to be paid by CME Group therefor
shall be equitably adjusted to reflect the effects of any stock split, combination or other similar
change in the capitalization of CME Group.
ARTICLE VII
CONDITIONS TO CLOSING
Section 7.1 Conditions of Each Party to Closing. The respective obligations of CME Group and BVMF to effect the transactions contemplated by this
Agreement are subject to the satisfaction or waiver on or prior to the Closing Date of the
following conditions:
(a) No Injunction. No Law enacted, promulgated, issued, entered, amended or enforced
by a Governmental Authority prohibiting, preventing or enjoining the consummation of the
transactions contemplated by this Agreement or any of the Ancillary Agreements shall be in effect.
(b) No Litigation. There shall not be any Claim by a Governmental Authority pending
at law, in equity, in arbitration or before any Governmental Authority against BVMF or CME Group
seeking to enjoin or restrain the consummation of the transactions contemplated by this Agreement
or any of the Ancillary Agreements.
(c) Strategic Partnership Agreement. The Strategic Partnership Agreement shall have
been executed by each of BVMF and CME Group concurrently with the Closing, and shall be in full
force and effect.
(d) Master Agreement Amendment. The Master Agreement Amendment shall have been
executed by each of BVMF and CME Group concurrently with the Closing, and shall be in full force
and effect.
Section 7.2 CME Group’s Conditions to Closing. The obligations of CME Group to effect the transactions contemplated by this Agreement are
subject to the satisfaction of, or waiver by CME Group, on or prior to the Closing Date of the
following additional conditions:
(a) Representations and Warranties of BVMF. Each of the representations and
warranties of BVMF set forth in this Agreement, in each case, made as if
40
none of such
representations and warranties contained any qualifications or limitations as to “materiality” or
“material adverse effect,” shall be true and correct, in each case, as of the date of this
Agreement and as of the Closing Date as though made on and as of the Closing Date (except to the
extent in either case that such representations and warranties speak as of another date, in which
case such representations and warranties shall be true and correct as of such date), except where
the failure of such representations and warranties to be true and correct as so made does not have
and is not, individually or in the aggregate, reasonably expected to have a material adverse effect
on the Condition of BVMF. CME Group shall have received a certificate of the chief executive
officer or the chief financial officer of BVMF to such effect.
(b) Covenants. BVMF shall have performed or complied in all material respects with
all agreements and covenants required to be performed by it under this Agreement at or prior to the
Closing Date and CME Group shall have received a certificate of the chief executive officer or the
chief financial officer of BVMF to such effect.
(c) Technology Agreement. As of the Closing Date, the Technology Agreement shall be
in full force and effect and BVMF shall not be in material breach thereof.
(d) HSR Act; Governmental Approvals. The applicable waiting period under the HSR Act
shall have expired or been terminated and all consents or approvals required to be obtained from
any Governmental Authority required to consummate the transactions contemplated hereby or by any
Ancillary Agreement (excluding any required registration with, or approval by, INPI of the
Technology Agreement) shall have been duly filed, obtained and completed and be in full force and
effect, in each case without the imposition of any Burdensome Condition with respect to CME Group.
Section 7.3 BVMF’s Conditions to Closing. The obligations of BVMF to effect the transactions contemplated by this Agreement are subject to
the satisfaction of, or waiver by BVMF, on or prior to the Closing Date of the following additional
conditions:
(a) Representations and Warranties of CME Group. Each of the representations and
warranties of CME Group set forth in this Agreement, in each case, made as if none of such
representations and warranties contained any qualifications or limitations as to “materiality” or
“material adverse effect,” shall be true and correct, in each case, as of the date of this Agreement and as of the Closing Date as though made on and as of the Closing Date (except
to the extent in either case that such representations and warranties speak as of another date, in
which case such representations and warranties shall be true and correct as of such date), except
where the failure of such representations and warranties to be true and correct as so made does not
have and is not, individually or in the aggregate, reasonably expected to have a material adverse
effect on the Condition of CME Group. BVMF shall have received a certificate of the chief
executive officer or the chief financial officer of CME Group to such effect.
(b) Covenants. CME Group shall have performed or complied in all material respects
with all agreements and covenants required to be performed by it under this Agreement at or prior
to the Closing Date and BVMF shall have received a certificate of the chief executive officer or
the chief financial officer of CME Group to such effect.
41
(c) Technology Agreement. As of the Closing Date, the Technology Agreement shall be
in full force and effect and CME shall not be in material breach thereof.
(d) HSR Act; Governmental Approvals. The applicable waiting period under the HSR Act
shall have expired or been terminated and all consents or approvals required to be obtained from
any Governmental Authority required to consummate the transactions contemplated hereby or by any
Ancillary Agreement (excluding any required registration with, or approval by, INPI of the
Technology Agreement) shall have been duly filed, obtained and completed and be in full force and
effect, in each case without the imposition of any Burdensome Condition with respect to BVMF.
ARTICLE VIII
TERMINATION
Section 8.1 Termination. This Agreement may be terminated and the transactions contemplated hereby may be abandoned at
any time prior to the Closing:
(a) by mutual written consent of CME Group and BVMF;
(b) by either CME Group or BVMF, if:
(i) the Closing shall not have occurred on or before the date that is six
months after the date hereof (the “Walk-Away Date”); provided, however, that
if the sole reason that the Closing has not occurred is because one or more of the
approvals of Governmental Authorities required pursuant to Section 7.2(d) or
Section 7.3(d) have not been obtained on or prior to the Walk-Away Date, no
Party shall have the right to terminate this Agreement pursuant to this Section
8.1(b)(i) until the date that is nine months after the date hereof; provided,
further, that the right to terminate this Agreement under this Section
8.1(b)(i) shall not be available to a Party if the failure of the Closing to
have occurred on or before the Walk-Away Date was due to the failure of such Party
to perform any of its obligations under this Agreement; or
(ii) (A) any Governmental Authority has denied an approval or consent required
to consummate the transactions contemplated hereby or by any Ancillary Agreement and
such denial has become final and nonappealable, or (B) any Governmental Authority of
competent jurisdiction shall have issued a final nonappealable order enjoining or
otherwise prohibiting the consummation of the transactions contemplated hereby or by
any Ancillary Agreement; provided, however, that no Party that has breached in any
respect its obligations pursuant to Section 6.2 shall be entitled to
terminate this Agreement under this Section 8.1(b)(ii);
(c) by CME Group if BVMF shall have breached or failed to perform any of its representations,
warranties or covenants contained in this Agreement, which breach or failure to perform (A) is
incapable of being cured by BVMF prior to the Walk-Away Date or is not cured by the earlier of (x)
ten (10) Business Days following written notice to BVMF by CME
42
Group of such breach or (y) the
Walk-Away Date and (B) would result in a failure of any condition set forth in Sections
7.2(a) or (b); and
(d) by BVMF if CME Group shall have breached or failed to perform any of its representations,
warranties or covenants contained in this Agreement, which breach or failure to perform (A) is
incapable of being cured by CME Group prior to the Walk-Away Date or is not cured by the earlier of
(x) ten (10) Business Days following written notice to CME Group by BVMF of such breach or (y) the
Walk-Away Date and (B) would result in a failure of any condition set forth in Sections
7.3(a) or (b).
Section 8.2 Effect of Termination. In the event of termination of this Agreement by either CME Group or BVMF as provided in
Section 8.1 or a rescission of this Agreement pursuant to Section 6.12, this
Agreement shall become void and have no effect, and none of CME Group, BVMF, or any of their
respective officers, directors or Affiliates shall have any Liability of any nature whatsoever
hereunder, except that this Section 8.2, Section 6.7 and Article X shall
survive any such termination; and notwithstanding anything in this Agreement to the contrary, none
of CME Group, BVMF, or any of their respective officers, directors or Affiliates shall be relieved
or released from any Liabilities or damages arising out of its willful breach of any provision of
this Agreement. In the event of a rescission of this Agreement pursuant to Section 6.12,
the Master Agreement Amendment shall be rescinded and shall become void and have no effect and, as
of the Rescission Date, the Master Agreement shall remain in full force and effect as in effect
prior to the effective date of the Master Agreement Amendment.
ARTICLE IX
SURVIVAL AND INDEMNIFICATION
Section 9.1 Survival. The representations and warranties of a Party contained in this Agreement will survive
and remain in full force and effect in accordance with their terms until the date that is thirty (30) days after the date on which such Party delivers to the other
Party audited financial statements for the fiscal year ending December 31, 2010; provided that CME
Group shall be deemed to have delivered such audited financial statements to BVMF on the earlier to
occur of (i) delivery of such audited financial statements to BVMF in accordance with this
Section 9.1 or (ii) the date CME Group files its Annual Report on Form 10-K for the year
ending December 31, 2010 with the SEC and BVMF shall be deemed to have delivered such audited
financial statements to CME Group on the earlier to occur of (i) delivery of such audited financial
statements to CME Group in accordance with this Section 9.1 or (ii) the date BVMF files its
audited financial statements for the year ending December 31, 2010 with the CVM. The covenants
contained in this Agreement shall survive the Closing in accordance with their terms.
Notwithstanding the foregoing, an indemnification Claim brought pursuant to this Article IX
will not be precluded hereby if the Claim is initiated in writing prior to the expiration of the
respective survival period described in the preceding sentences.
Section 9.2 Indemnification. Except as otherwise provided in this Article IX, from and after the Closing each Party
(the “Indemnifying Party”) agrees to indemnify, defend and hold harmless the other Party
and its officers, directors, employees, Affiliates and representatives and their successors and
assigns (each, an “Indemnified Party”) to the fullest
43
extent permitted by applicable Law
from and against any and all damages, losses or expenses (including expenses of investigation,
enforcement and collection and reasonable attorneys’ and other professionals’ fees and expenses
incurred by the Indemnified Party in any action between the Indemnifying Party and the Indemnified
Party or between the Indemnified Party and any third party or otherwise) or other liabilities
(collectively “Losses”) resulting from or arising out of (x) any breach of any
representation or warranty by such Party in this Agreement as of the Closing Date (as though made
on and as of the Closing Date), except to the extent that such representations and warranties speak
as of another date, in which case as made as of such date, or (y) any breach or default in
performance of any covenant or agreement by such Party in this Agreement. In connection with the
obligation of the Indemnifying Party to indemnify for expenses as set forth above, the Indemnifying
Party shall, upon presentation of appropriate invoices containing reasonable detail, reimburse each
Indemnified Party for all such expenses (including reasonable fees, disbursements and other charges
of counsel incurred by the Indemnified Party in any action between the Indemnifying Party and the
Indemnified Party or between the Indemnified Party and any third party) as they are incurred by
such Indemnified Party, to the extent an indemnification is owed pursuant to this Agreement;
provided, however, that if an Indemnified Party is reimbursed under this Article IX for any
expenses, such reimbursement of expenses shall be refunded to the extent it is finally judicially
determined that the Losses in question resulted primarily from the willful misconduct or gross
negligence of such Indemnified Party.
Section 9.3 Notification. Each Indemnified Party under this Article IX shall, promptly after the receipt of notice
of the commencement of any Claim against such Indemnified Party in respect of which indemnity may
be sought from the Indemnifying Party under this Article IX, notify the Indemnifying Party
in writing of the commencement thereof. The omission of any Indemnified Party to so notify the
Indemnifying Party of any such action shall not relieve the Indemnifying Party from any liability
which it may have to such Indemnified Party under this Article IX unless, and only to the
extent that, such omission results in the Indemnifying Party’s forfeiture of substantive rights or
defenses. In case any such Claim shall be brought against any Indemnified Party, and it shall
notify the Indemnifying Party of the commencement thereof, the Indemnifying Party shall be entitled
to assume the defense thereof at its own expense, with counsel satisfactory to such Indemnified
Party in its reasonable judgment; provided, however, that any Indemnified Party may, at its own
expense, retain separate counsel to participate (subject to the Indemnifying Party’s right to
control the defense in accordance with this Section 9.3) in such defense at its own
expense. Notwithstanding the foregoing, in any Claim in which both the Indemnifying Party, on the
one hand, and an Indemnified Party, on the other hand, are, or are reasonably likely to become, a
party, such Indemnified Party shall have the right to employ separate counsel and to control its
own defense (in accordance with this Section 9.3) of such Claim if, in the reasonable
opinion of counsel to such Indemnified Party, either (x) one or more defenses are available to the
Indemnified Party that are not available to the Indemnifying Party and which the Indemnified Party
is not reasonably able to assert or (y) a conflict or potential conflict exists between the
Indemnifying Party, on the one hand, and such Indemnified Party, on the other hand, that would make
such separate representation advisable; provided, however, that the Indemnifying Party shall not be
liable for the fees and expenses of more than one counsel to all Indemnified Parties. Each of the
Parties agrees that it will not, without the prior written consent of the other Party, settle,
compromise or consent to the entry of any judgment in any pending or threatened Claim relating to
the matters contemplated hereby (if
44
any Indemnified Party is a party thereto) unless such
settlement, compromise or consent includes an unconditional release of each Indemnified Party from
all liability arising or that may arise out of such Claim; provided that, the Indemnifying Party
shall use commercially reasonable efforts to include any Indemnified Party in such settlement,
compromise or consent if such Indemnified Party has been actually threatened to be made a party
thereto. The Indemnifying Party shall not be liable for any settlement of any Claim effected
against an Indemnified Party without its written consent, which consent shall not be unreasonably
withheld. The rights accorded to an Indemnified Party under this Article IX shall be the
exclusive remedy that any Indemnified Party may have at common law, by separate agreement or
otherwise; provided, however, that notwithstanding the foregoing or anything to the contrary
contained in this Agreement, nothing in this Article IX shall restrict or limit any rights
that any Indemnified Party may have to seek equitable relief. No indemnification shall be owed by
the Indemnifying Party in relation to a Claim that is an administrative or judicial action until a
final, nonappealable determination by a Governmental Authority is made, and the Indemnifying Party
shall be entitled to bring to litigation before a Governmental Authority any Claim that it
reasonably believes to be undue before the Indemnifying Party is obligated to pay any amount to the
Indemnified Party under the provisions of this Article IX.
Section 9.4 Limits on Indemnification. The amount of any payment by the Indemnifying Party under this Article IX shall be
subject to the following limitations; provided, however, that Losses arising out of an Indemnifying
Party’s willful breach of this Agreement or its willful misconduct or bad faith shall not be
subject to the following limitations:
(a) subject to Section 9.4(c), the Indemnifying Party shall not be obligated to make
any payment pursuant to this Article IX until the aggregate amount of Losses for which the
Indemnifying Party would (but for this Section 9.4(a)) be liable hereunder exceeds one
percent (1%) of the Purchase Price (the “Indemnity Threshold”), and then only for amounts
in excess of the Indemnity Threshold;
(b) subject to Section 9.4(c), the total amount for which the Indemnifying Party shall
be liable to indemnify and hold harmless the Indemnified Parties pursuant to this Article
IX shall not exceed thirty (30%) of the Purchase Price;
(c) Neither BVMF nor any of its officers, directors, employees, Affiliates or representatives
or any of their successors or assigns shall be deemed to have suffered any Losses for any purpose
under this Article IX, unless, after giving effect to the circumstances forming the basis
for the claim for such Losses, the value per share of the CME Group Shares shall be less than the
Per Share Price; and
(d) in no event shall an Indemnifying Party be liable for speculative, unforeseeable,
punitive, exemplary or consequential damages or lost profits; provided, however,
that, subject to Section 9.4(c), nothing in this Section 9.4(d) shall affect BVMF’s
right to be indemnified by CME Group pursuant to this Article IX for the diminution in
value of the CME Group Shares BVMF purchased pursuant to this Agreement.
45
ARTICLE X
MISCELLANEOUS
Section 10.1 Expenses. Except as otherwise expressly provided herein, each Party shall bear its respective expenses
incurred in connection with the preparation, negotiation and execution of this Agreement and the
Ancillary Agreements, including all fees and expenses of agents, advisors, representatives, counsel
and accountants, whether or not the Closing occurs.
Section 10.2 Entire Agreement. This Agreement (together with the Parties’ disclosure schedules, the Exhibits hereto and the
Ancillary Agreements), the Master Agreement and the Confidentiality Agreement set forth the entire
agreement and understanding among the Parties concerning the transactions contemplated hereby. No
Party shall be bound by any prior or contemporaneous understanding or representation with respect
to the subject matter hereof, other than as set out herein or as subsequently agreed to by the
Parties in writing.
Section 10.3 Notices. Any notice, demand, request, consent, approval, declaration, delivery or other communication
hereunder to be made pursuant to the provisions of this Agreement shall be sufficiently given or
made if in writing and either delivered in person, by overnight courier or by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:
(a) | If to CME Group: | ||
CME Group Inc. 00 X. Xxxxxx Xxxxx Xxxxxxx, Xxxxxxxx 00000 Attention: Xxxxxxxx X. Xxxxxx, General Counsel |
|||
with copies to (which shall not constitute a notice): | |||
Skadden, Arps, Slate, Xxxxxxx & Xxxx LLP 000 X. Xxxxxx Xxxxx Xxxxxxx, Xxxxxxxx 00000 |
|||
Attention: Xxxx X. Xxxxxxxxx Xxxxx X. Xxxxxx |
|||
and | |||
(b) | If to BVMF: | ||
BM&FBOVESPA S.A. Praça Xxxxxxx Xxxxx, 48 — Centro São Paulo, Brazil, SP 01013-001 Attention: Cícero Xxxxxxx Xxxxxx Xxxx, Chief Operating Officer |
46
with copies to (which shall not constitute a notice): | |||
Debevoise & Xxxxxxxx LLP 000 Xxxxx Xxxxxx Xxx Xxxx, Xxx Xxxx 00000 |
|||
Attention: Xxxxxxx Xxxxxxxxx Xxxxxxx X. Xxxxxx |
or to such other address as may be substituted by notice given as herein provided. The giving of
any notice required hereunder may be waived in writing by the Party entitled to receive such
notice. Every notice, demand, request, consent, approval, declaration, delivery or other
communication hereunder shall be deemed to have been duly given or served on the date on which
personally delivered; and the next Business Day after deposit with an overnight courier service.
Section 10.4 Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by either of the Parties, in whole or in part (whether by operation of law or otherwise),
without the prior written consent of the other Party, and any attempt to make any such assignment
without such consent shall be null and void; provided, however, that BVMF may assign or transfer
its right to purchase the CME Group Shares to one of its wholly-owned Subsidiaries without CME
Group’s consent, but only if such Subsidiary of BVMF agrees in
writing with CME Group to be bound by the relevant terms and conditions of this Agreement and
provided that no such assignment or transfer will relieve BVMF of its obligations hereunder.
Subject to the preceding sentence, this Agreement shall be binding upon, inure to the benefit of
and be enforceable by the Parties and their respective successors and assigns.
Section 10.5 Dispute Resolution, Arbitration. Any and all disputes, controversies, or claims arising out of, relating to, or in
connection with this Agreement (each, a “Dispute”) shall be finally resolved through
binding arbitration. In the event of a Dispute, a Party shall not commence arbitration against the
other Party unless that Party first gives written notice to the other Party setting forth the
nature of the Dispute (a “Dispute Notice”). The Parties shall then attempt in good faith
to resolve the Dispute by mediation with a mediator selected by mutual agreement of the Parties.
If the Parties cannot agree on the selection of a mediator within thirty (30) days after delivery
of the Dispute Notice, or in any event if the Dispute has not been resolved by mediation within
sixty (60) days after the delivery of the Dispute Notice, then either Party may submit the Dispute
for arbitration in accordance with this Section 10.5. Any Disputes concerning the
propriety of the commencement of the arbitration shall be finally settled by arbitration pursuant
to this Section 10.5. The arbitration shall be conducted in accordance with the Rules of
Arbitration of the International Chamber of Commerce (“ICC Rules”) in effect at the time of
the arbitration, except as they may be modified herein or by mutual agreement of the Parties. The
seat of the arbitration shall be London, England, United Kingdom, and it shall be conducted in the
English language. The Parties submit to jurisdiction in the High Court in London, England, United
Kingdom for the limited purpose of enforcing this agreement to arbitrate. The arbitration shall be
conducted by three (3) arbitrators. The claimant shall appoint an arbitrator in its request for
arbitration. The respondent shall appoint an arbitrator within 30 days of the receipt of the
request for arbitration. The two arbitrators shall appoint a third
47
arbitrator within 30 days after
the appointment of the second arbitrator. The third arbitrator shall act as chair of the tribunal.
If any of the three arbitrators is not appointed within the time prescribed above, then the ICC
International Court of Arbitration shall appoint that arbitrator. Consistent with the authority
conferred on the arbitration tribunal by the ICC Rules, the arbitration tribunal shall have the
authority to order such production of documents as may reasonably be requested by either Party or
by the tribunal itself. The procedures for the taking of evidence, including the discovery of
documents, shall be governed by the IBA Rules on the Taking of Evidence in International Commercial
Arbitration. The award of the arbitrators shall be final and binding on the Parties. Each award
by the arbitrators shall: (i) if paid to BVMF, be paid in Brazilian Reais, unless BVMF shall
specify payment in US Dollars at the time of the arbitration; (ii) if paid to CME Group, be paid in
US Dollars, unless CME Group shall specify payment in Brazilian Reais at the time of the
arbitration; and (iii) include in favor of the prevailing Party an award of the costs of the
arbitration, including the prevailing Party’s reasonable attorneys’ fees and expenses, including
reasonable expenses incurred by the prevailing Party for language translation of documents and
testimony. Judgment upon the award may be entered by any court having jurisdiction thereof or
having jurisdiction over the relevant Party or its assets. The provisions contained in this
Section 10.5 shall survive the termination or expiration of this Agreement.
Section 10.6 Governing Law. This Agreement shall be governed by, construed and enforced in accordance with the Laws of the
State of New York (other than the Laws thereof that would require or permit application of the Laws
of any other jurisdiction).
Section 10.7 Waiver; Amendment. The failure of any Party to insist upon strict performance of the provisions hereof shall not be
construed as a waiver of future compliance and no waiver of the provisions hereof by such Party
shall be deemed to have been made unless expressed in writing and signed by such Party. Any
provision of this Agreement may be amended if, but only if, such amendment is in writing and signed
by each Party hereto.
Section 10.8 Further Action. The Parties shall execute and deliver all other certificates and documents and take such other
actions as may reasonably be requested in order to consummate or implement the transactions
contemplated hereby.
Section 10.9 Counterparts; Effectiveness. This Agreement may be executed and delivered in one or more counterparts (including by
facsimile), each of which shall be deemed to be an original but all of which shall constitute one
and the same agreement. This Agreement shall become effective when each Party hereto shall have
received counterparts thereof signed and delivered (by facsimile or otherwise) by the other Party
hereto.
Section 10.10 Benefits of Agreement. This Agreement shall be binding upon and inure solely to the benefit of each Party hereto
and their respective permitted successors and assigns and nothing in this Agreement, express or
implied, is intended to or shall give to any Person not a Party to this Agreement any benefit or
any legal or equitable right or remedy, other than Section 6.4(c) (which is intended to be
for the benefit of the CME Designated Director and BVMF Designated Director covered thereby and may
be enforced by them) and Article IX (which is intended to be for the benefit of the
Indemnified Parties thereunder).
48
Section 10.11 Severability. If any provision of this Agreement is deemed to be illegal or unenforceable by any court of
competent jurisdiction, (i) such provision shall be deemed to be severable from the remainder of
this Agreement, (ii) the effect of such determination shall be limited to such provision to the
extent reasonably practicable, and (iii) the validity, legality and enforceability of such
provision in any other jurisdiction shall not in any way be affected or impaired thereby.
[Signature Page Follows]
49
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first
described above.
CME GROUP INC. |
||||
By | /s/ Xxxxx X. Xxxxxxx | |||
Name: | Xxxxx X. Xxxxxxx | |||
Title: | Chief Executive Officer | |||
BM&FBOVESPA S.A. — BOLSA DE VALORES, MERCADORIAS E FUTUROS |
||||
By | /s/ Xxxxxx Xxxxx | |||
Name: | Xxxxxx Xxxxx | |||
Title: | Chief Executive Officer | |||
By | /s/ Cícero Xxxxxxx Xxxxxx Neto | |||
Name: | Cícero Xxxxxxx Xxxxxx Xxxx | |||
Title: | Chief Operating Officer | |||
[Signature Page to the Share Purchase and Investor Rights Agreement]