0001193125-11-208614.txt : 20110804 0001193125-11-208614.hdr.sgml : 20110804 20110803194108 ACCESSION NUMBER: 0001193125-11-208614 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20110804 DATE AS OF CHANGE: 20110803 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: YDE WILLIAM L III CENTRAL INDEX KEY: 0001354151 FILING VALUES: FORM TYPE: SC 13D/A MAIL ADDRESS: STREET 1: 20910 CHERRY CREEK CIRCLE CITY: LAS VEGAS STATE: NV ZIP: 89135 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: GLOBAL TRAFFIC NETWORK, INC. CENTRAL INDEX KEY: 0001344907 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS BUSINESS SERVICES [7380] IRS NUMBER: 331117834 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-81708 FILM NUMBER: 111008269 BUSINESS ADDRESS: STREET 1: 880 THIRD AVENUE, 6TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 212-896-1255 MAIL ADDRESS: STREET 1: 880 THIRD AVENUE, 6TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 SC 13D/A 1 dsc13da.htm SCHEDULE 13D AMENDMENT NO. 8 Schedule 13D Amendment No. 8

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 8)*

 

 

 

GLOBAL TRAFFIC NETWORK, INC.

(Name of Issuer)

 

 

 

Common Stock, $.001 par value

(Title of Class of Securities)

 

37947B 10 3

(CUSIP Number)

 

William L. Yde III

Global Traffic Network, Inc.

880 Third Avenue, Sixth Floor

New York, NY 10022

(212) 896-1255

 

With a copy to:

 

Edward Rayner, Esq.

Pryor Cashman LLP

7 Times Square

New York, NY 10036

(212-326-0110)

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

 

August 2, 2011

(Date of Event Which Requires Filing of this Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.  ¨

 

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

 

 

 

*   The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 


CUSIP No. 37947B 10 3  

 

  1   

NAME OF REPORTING PERSON

I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY)

 

William L. Yde III

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(A)  ¨        (B)  ¨

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS

 

    OO

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E)

 

    ¨

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

    United States

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

     7    

SOLE VOTING POWER

 

    1,301,747 Shares

     8   

SHARED VOTING POWER

 

    0 Shares

     9   

SOLE DISPOSITIVE POWER

 

    1,301,747 Shares

   10   

SHARED DISPOSITIVE POWER

 

    0 Shares

11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

    1,301,747 Shares

12

 

CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES    ¨

 

13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

    6.8%

14

 

TYPE OF REPORTING PERSON

 

    IN

 


Item 1. Security and Issuer.

This statement relates to the common stock, $.001 par value per share (the “Shares”), of Global Traffic Network, Inc., a Nevada corporation (the “Issuer”). The address of the Issuer’s principal executive offices is 880 Third Avenue, Sixth Floor, New York, NY 10022.

 

Item 2. Identity and Background.

This Schedule 13D is being filed by William L. Yde III (the “Reporting Person”). The principal business address for the Reporting Person is 880 Third Avenue, Sixth Floor, New York, NY 10022. Reporting Person is the Chairman, Chief Executive Officer and President of the Issuer.

During the last five years, the Reporting Person has not been (i) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors), or (ii) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

The Reporting Person is a citizen of the United States of America.

 

Item 3. Source and Amount of Funds or Other Consideration.

Not applicable.

 

Item 4. Purposes of Transaction.

On August 2, 2011, the Issuer entered into an Agreement and Plan of Merger (the “Merger Agreement”) with GTCR Gridlock Holdings (Cayman), L.P., a Cayman Islands exempted limited partnership (“Parent”) acting by its general partner, GTCR Gridlock Partners, Ltd., a Cayman Islands limited company, GTCR Gridlock Holdings, Inc., a Delaware corporation and a wholly-owned subsidiary of Parent (“U.S. Parent”), and GTCR Gridlock Acquisition Sub, Inc., a Nevada corporation and a wholly-owned subsidiary of U.S. Parent (the “Purchaser”).

Pursuant to the Merger Agreement, Purchaser will commence a tender offer (the “Tender Offer”) to purchase all outstanding Shares for $14.00 per Share, payable to the seller in cash, without interest, subject to any withholding of taxes required by applicable law (the “Offer Price”). The Merger Agreement also provides that following completion of the Tender Offer, Purchaser will be merged with and into the Issuer (the “Merger”), with the Issuer surviving the merger as a wholly-owned subsidiary of U.S. Parent. At the effective time of the Merger, all remaining outstanding Shares not tendered and accepted for payment in the Tender Offer (other than Shares owned by Parent and its direct and indirect subsidiaries, and the Issuer) will be acquired for cash at the Offer Price and on the terms and conditions set forth in the Merger Agreement. A copy of the Merger Agreement has been filed as an exhibit to the Issuer’s Current Report on Form 8-K filed with the SEC on August 3, 2011.

Concurrently with the entry into the Merger Agreement, and as a condition to and inducement of Parent’s, U.S. Parent’s and the Purchaser’s willingness to enter into the Merger Agreement, the Reporting Person entered into a Contribution, Non-Tender and Support Agreement with Parent (the “Contribution Agreement”), pursuant to which he has agreed, among other things, (i) to not tender any Shares beneficially owned by him (the “Covered Shares”) in the Offer, (ii) to support the Offer and the Merger as provided in the Contribution Agreement and (iii) to contribute 535,715 Shares (the “Contributed Shares”) owned by him to Parent after the Purchaser has accepted Shares for payment in the Offer and prior to the Merger’s effective time upon admission as a limited partner of Parent. Under the Contribution Agreement, the Contributed Shares will be valued at the Offer Price for purposes of the Reporting Person’s capital contribution to the Parent.

Pursuant to the Contribution Agreement, the Reporting Person agreed to vote the Covered Shares (i) in favor of adopting the Merger Agreement and approving the Merger and any other matter that must be approved by the stockholders of the Issuer in order to consummate the transactions contemplated by the Merger Agreement, (ii) against any competing acquisition or transaction proposal to the Merger and (iii) against any proposal, action or agreement that would result in certain conditions of the Merger Agreement not being fulfilled or satisfied.


Pursuant to the Contribution Agreement, the Reporting Person further agreed, except as required by the Merger Agreement or applicable law, not to (i) transfer any of the Covered Shares without Parent’s prior written consent, (ii) grant any proxy, power of attorney or other authorization or consent in or with respect to any of the Covered Shares that would be inconsistent with the Reporting Person’s voting obligations set forth in the Contribution Agreement, or (iii) take any other action that would make any representation or warranty of the Reporting Person contained in the Contribution Agreement untrue or incorrect in any material respect or restrict, limit or interfere in any material respect with the performance of the Reporting Person’s obligations under the Contribution Agreement.

The Contribution Agreement shall terminate upon the earliest of (a) the mutual agreement of Parent and the Reporting Person, (b) the time at which the Merger becomes effective, (c) the termination or withdrawal of the Offer pursuant to its terms or the terms of the Merger Agreement without any Shares being purchased thereunder or (d) the termination of the Merger Agreement in accordance with its terms.

The foregoing description of the Contribution Agreement does not purport to be complete and is qualified in its entirety by reference to the Contribution Agreement, which is filed as Exhibit 10.1 hereto and is incorporated herein by reference.

The Reporting Person may formulate other purposes, plans or proposals relating to any securities of the Issuer to the extent deemed advisable in light of market conditions, investment policies and other factors. Except as otherwise indicated in this Schedule 13D, including under Item 6 hereof, the Reporting Person has no current plans or proposals which would relate to or would result in any of the following matters:

(a) The acquisition by any person of additional securities of the Issuer, or the disposition of securities of the Issuer, other than pursuant to the plans or arrangements described in Item 6 of this Schedule;

(b) An extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving the Issuer or any of its subsidiaries;

(c) A sale or transfer of a material amount of assets of the Issuer or of any of its subsidiaries;

(d) Any change in the present board of directors or management of the Issuer, including any plans or proposals to change the number or term of directors or to fill any existing vacancies on the board;

(e) Any material change in the present capitalization or dividend policy of the Issuer;

(f) Any other material change in the Issuer’s business or corporate structure, including but not limited to, if the Issuer is a registered closed-end investment company, any plans or proposals to make any changes in its investment policy for which a vote is required by Section 13 of the Investment Company Act of 1940;

(g) Changes in the Issuer’s charter, bylaws or instruments corresponding thereto or other actions which may impede the acquisition of control of the Issuer by any person;

(h) Causing a class of securities of the Issuer to be delisted from a national securities exchange or to cease to be authorized to be quoted in an inter-dealer quotation system of a registered national securities association;

(i) A class of equity securities of the Issuer becoming eligible for termination of registration pursuant to Section 12(g)(4) of the Act; or

(j) Any action similar to any of those enumerated above.

Notwithstanding the foregoing, the Reporting Person may from time to time acquire, or dispose of, common stock and/or other securities of the Issuer if and when the Reporting Person deems it appropriate.


Item 5. Interest in the Securities of the Issuer.

(a) The Reporting Person owns 1,301,747 Shares. According to information provided by the Issuer in its most recently filed Quarterly Report on Form 10-Q, as of May 9, 2011, the Issuer had 19,050,172 Shares outstanding. Based upon this information, the Reporting Person is the beneficial owner of 6.8% of the outstanding Shares.

(b) The Reporting Person has sole voting and dispositive power with respect to the 1,301,747 Shares that he holds directly.

(c) The information set forth in Item 4 is incorporated herein by reference.

(d) Not applicable.

(e) Not applicable.

 

Item 6. Contracts, Agreements, Understandings With Respect to Securities of the Issuer.

The description of the Contribution Agreement set forth in Item 4 is incorporated herein by reference.

As previously disclosed on this Schedule 13D, the Reporting Person was a party to a certain Voting Agreement (the “Johander Trust Voting Agreement”) dated September 30, 2005 with Robert L. Johander Revocable Trust u/a/d December 18, 2006 (the “Johander Trust”), pursuant to which the Reporting Person had the right to vote 695,992 Shares held by the Johander Trust. The Johander Trust Voting Agreement terminated and the Reporting Person no longer has the right to vote such Shares held by the Johander Trust.

 

Item 7. Material to be Filed as Exhibits.

 

10.1    Contribution, Non-Tender and Support Agreement dated August 2, 2011 by and between William L. Yde III and GTCR Gridlock Holdings (Cayman), L.P.
10.2    Form of Agreement and Plan of Merger, dated August 2, 2011, by and among Global Traffic Network, Inc. and GTCR Gridlock Holdings (Cayman), L.P., acting by its general partner, GTCR Gridlock Partners, Ltd., GTCR Gridlock Holdings, Inc., and GTCR Gridlock Acquisition Sub, Inc. (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed by Global Traffic Network, Inc. with the SEC on August 3, 2011).


SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

 

Dated: August 3, 2011    

/s/ William L. Yde III

    William L. Yde III
EX-99.10.1 2 dex99101.htm CONTRIBUTION, NON-TENDER AND SUPPORT AGREEMENT Contribution, Non-Tender and Support Agreement

Exhibit 10.1

EXECUTION VERSION

CONTRIBUTION, NON-TENDER AND SUPPORT AGREEMENT

This Contribution, Non-Tender and Support Agreement (this “Agreement”), dated as of August 2, 2011, is entered into by and between GTCR Gridlock Holdings (Cayman), L.P., a Cayman Islands exempted limited partnership (“Parent”), and William L. Yde III, individually (the “Investor”), a stockholder of Global Traffic Network, Inc., a Nevada corporation (the “Company”). Capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Merger Agreement (as defined below).

RECITALS

WHEREAS, Parent, GTCR Gridlock Holdings, Inc., a Delaware corporation (“U.S. Parent”), GTCR Gridlock Acquisition Sub, Inc., a Nevada corporation (the “Purchaser”), and the Company propose to enter into an Agreement and Plan of Merger, dated as of the date hereof (the “Merger Agreement”), which provides, among other things, for (a) the Purchaser to commence a tender offer to purchase all of the issued and outstanding shares of common stock, par value $.001 per share (the “Company Common Stock”), of the Company (the “Offer”) at an offer price of $14.00 per share, payable to the seller in cash (the “Offer Price”), and (b) after completion of the Offer, for the Purchaser to merge with and into the Company, with the Company continuing as the surviving corporation (the “Merger”), whereby each issued and outstanding share of Company Common Stock (other than shares to be cancelled in accordance with the Merger Agreement) will be converted into the right to receive the Offer Price, payable to the holder in cash, all upon the terms and subject to the conditions set forth in the Merger Agreement;

WHEREAS, the Investor beneficially owns 1,301,747 shares of Company Common Stock (excluding shares of Company Common Stock as to which the Investor may be deemed to have voting power as a result of that certain Voting Agreement dated September 30, 2005, by and between the Investor and the Robert L. Johander Revocable Trust u/a/d December 18, 2006, as amended or extended from time to time (the “Johander Trust Voting Agreement”)) (all such shares of Company Common Stock beneficially owned by the Investor as of the date hereof, together with any other shares of Company Common Stock acquired (whether beneficially or of record) by the Investor after the date hereof, including any shares acquired by means of purchase, dividend or distribution, or issued upon the exercise of any warrants, options or restricted stock units, or the conversion of any convertible securities or otherwise, being collectively referred to herein as the “Covered Shares”);

WHEREAS, the Investor has determined, in connection with and immediately prior to the consummation of the Merger, to contribute 535,715 shares of Company Common Stock (the “Contribution”) beneficially owned by the Investor (the “Contributed Shares”), to the capital of Parent upon and in consideration of the Investor’s admission as a limited partner of Parent at the Contribution Closing (as defined below), all on the terms and subject to the conditions set forth in this Agreement;

WHEREAS, to facilitate the Contribution and in light of the applicable requirements of Rule 14d-10(a)(2) of the Exchange Act with respect to the Offer, the Investor


has determined that he will not tender any of the Covered Shares into the Offer, with the effect that any Covered Shares, other than Contributed Shares, will be converted in the Merger into the right to receive the Offer Price, payable to the Investor in cash, upon the terms and subject to the conditions set forth in the Merger Agreement; and

WHEREAS, the Investor has agreed to enter into this Agreement as a condition to the willingness of, and as an inducement for, Parent, U.S. Parent and the Purchaser to enter into the Merger Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and conditions as hereinafter set forth, the parties hereto do hereby agree as follows:

ARTICLE 1

CONTRIBUTION

1.1 Contribution of Company Common Stock. Upon the terms and subject to the conditions of this Agreement, at the Contribution Closing, the Investor agrees to transfer, contribute and deliver to Parent all of the Contributed Shares, free and clear of all Liens. In consideration for the contribution of the Contributed Shares to Parent, at and effective as of the Contribution Closing, Parent agrees to admit the Investor as a limited partner of Parent, and the Investor shall be deemed to have contributed the Contributed Shares to the capital of Parent at an aggregate deemed value equal to (a) the Offer Price, multiplied by (b) the total number of Contributed Shares. The rights, privileges and preferences of the Investor’s interest as a limited partner in Parent shall be set forth in an amended and restated agreement of exempted limited partnership of Parent (the “Parent LP Agreement”), the form of which shall be reasonably acceptable to the Investor and which shall include, among other things, the terms and conditions described on Exhibit A to this Agreement. The parties intend that the contribution of Contributed Shares to Parent pursuant to this Agreement shall be treated as a contribution to which Section 721(a) of the Code shall apply. The Investor shall (x) comply in a timely manner with all income tax reporting requirements associated with the fact that Parent is a non-US partnership, including but not limited to those set forth in Section 6038B of the Code, and shall at Parent’s request provide copies of such tax filings to Parent along with proof of timely filing, (y) provide Parent with such information as may be reasonably requested by Parent regarding the Investor’s Tax basis in the Contributed Shares as of the Contribution Closing for U.S. federal income and other applicable Tax purposes and (z) cooperate with Parent and provide such other Tax information as Parent may reasonably request in respect of any Tax matter (including the filing of any Tax Returns).

1.2 Contribution Closing. Subject to the satisfaction or waiver of the conditions to the Contribution set forth in Section 1.3 below, the closing of the Contribution (the “Contribution Closing”) will take place at such time and date to be specified by the parties, such time and date to be after the Acceptance Time and no later than the Effective Time, at the offices of Latham & Watkins LLP, 233 South Wacker Drive, Suite 5800, Chicago, Illinois 60606, unless another time, date or place is agreed to in writing by the parties hereto. At the Contribution Closing, the Investor shall deliver or cause to be delivered to Parent (a) stock certificates, if any, representing the Contributed Shares, with duly executed stock powers attached in proper form to enable the delivery and transfer of such Shares from the Investor to Parent or its designees, and

 

2


(b) a duly executed joinder to the Parent LP Agreement. Upon receipt of the foregoing deliveries by Parent, at and effective as of the Contribution Closing, the Investor shall be admitted as a limited partner of Parent and the rights, privileges and preferences of the Investor’s interests as a limited partner in Parent shall be as set forth in the Parent LP Agreement.

1.3 Conditions to Contribution.

(a) Conditions to Parent’s Obligations. The obligations of Parent to consummate the Contribution shall be subject to the satisfaction or waiver by Parent of the following conditions:

(i) All of the conditions to the consummation of the Merger under the Merger Agreement shall have been satisfied or waived by Parent or the Company, as applicable.

(ii) The representations and warranties of the Investor contained in Section 3.2 of this Agreement shall be true and correct in all material respects, as of the date of this Agreement and as of the Contribution Closing with the same force and effect as if made on and as of such date.

(iii) The Investor shall have performed in all material respects all of its obligations hereunder required to be performed by it at or prior to the Contribution Closing.

(iv) No Law enacted, entered, promulgated, enforced or issued by any Governmental Entity shall be in effect preventing the consummation of, or otherwise making illegal, the Contribution.

(b) Conditions to Investor’s Obligations. The obligations of the Investor to consummate the Contribution shall be subject to the satisfaction or waiver by the Investor of the following conditions:

(i) All of the conditions to the consummation of the Merger under the Merger Agreement shall have been satisfied or waived by Parent or the Company, as applicable.

(ii) The representations and warranties of Parent contained in Section 3.1 of this Agreement shall be true and correct in all material respects, as of the date of this Agreement and as of the Contribution Closing with the same force and effect as if made on and as of such date.

(iii) Parent shall have performed in all material respects all of its obligations hereunder required to be performed by it at or prior to the Contribution Closing.

(iv) No Law enacted, entered, promulgated, enforced or issued by any Governmental Entity shall be in effect preventing the consummation of, or otherwise making illegal, the Contribution.

(v) Parent shall have delivered or cause to be delivered to Investor a duly executed Employment Agreement on terms and conditions consistent in all material respects with the requirements of that certain Letter Agreement, dated as of the date hereof, between Parent and Investor with respect to Investor’s continued employment after completion of the Merger.

 

3


ARTICLE 2

COVENANTS REGARDING COVERED SHARES

2.1 Agreement Not to Tender. Investor agrees that he shall not, without the prior written consent of Parent, directly or indirectly, tender his or her Covered Shares into the Offer, including any “subsequent offering period” in accordance with Rule 14d-11 under the Exchange Act, in any manner, or enter into any agreement, arrangement or understanding that results in such Covered Shares being tendered into the Offer, including any “subsequent offering period” in accordance with Rule 14d-11 under the Exchange Act. In furtherance of this Agreement, concurrently herewith, the Investor shall, and hereby does authorize the Company or its counsel to, notify the Company’s transfer agent that there is a stop transfer order with respect to any such Covered Shares attempted to be tendered into the Offer.

2.2 Voting Agreement. From and after the date hereof and until the consummation of the Contribution, at any meeting of the stockholders of the Company, however called, or at any adjournment thereof, or in any other circumstance in which the vote, consent or other approval of the stockholders of the Company is sought (in writing or otherwise), the Investor shall (a) appear at each such meeting or otherwise cause all of the Covered Shares to be counted as present thereat for purposes of calculating a quorum and (b) vote (or cause to be voted), or execute and deliver a written consent (or cause a written consent to be executed and delivered) covering, all the Covered Shares (i) in favor of adopting the Merger Agreement (including for the purposes of this Section 2.2, as it may be modified or amended from time to time), and the approval of the Merger and each of the other transactions contemplated by the Merger Agreement and this Agreement and any other matter that must be approved by the stockholders of the Company in order for the transactions contemplated by the Merger Agreement to be consummated, (ii) against any Competing Proposal, and (iii) against any proposal, action or agreement that would result in any of the conditions set forth in Article 6 or Annex I of the Merger Agreement not being fulfilled or satisfied.

2.3 No Disposition or Adverse Act. The Investor hereby covenants and agrees that, except as contemplated by this Agreement and the Merger Agreement or as required by applicable Law, the Investor shall not (a) Transfer any or all of the Covered Shares without the prior written consent of Parent, (b) grant any proxy, power of attorney or other authorization or consent in or with respect to any of the Covered Shares that would be inconsistent with the Investor’s voting or consent obligations pursuant to Section 2.2 of this Agreement, or (c) take any other action that would make any representation or warranty of the Investor contained herein untrue or incorrect in any material respect or restrict, limit or interfere in any material respect with the performance of the Investor’s obligations hereunder. Any attempted Transfer of Covered Shares in violation of this Section 2.3 shall be null and void. For purposes of this Section 2.3, the term “Transfer” means, with respect to any Covered Shares, the direct or indirect transfer, pledge, hypothecation, encumbrance, assignment or other disposition (whether by sale, merger, consolidation, liquidation, dissolution, dividend, distribution or otherwise) of such Covered Shares.

 

4


2.4 Non-Solicitation.

(a) Except to the extent permitted by Section 5.4 of the Merger Agreement and subject to Section 2.7 hereof, the Investor agrees that he will not, directly or indirectly, (i) solicit, initiate, propose, knowingly facilitate or encourage (including by providing nonpublic information) any inquiries, proposals or offers or any other efforts or attempts that constitute or would reasonably be expected to lead to any Competing Proposal, (ii) furnish to any person any material nonpublic information with respect to, any inquiries, proposals or offers or any other efforts or attempts that constitute or would reasonably be expected to lead to, any Competing Proposal, (iii) engage, continue or participate in discussions or negotiations with any person with respect to any inquiries, proposals or offers or any other efforts or attempts that constitute or would reasonably be expected to lead to any Competing Proposal, (iv) approve, endorse or recommend, or publicly propose to approve, endorse or recommend, any Competing Proposal, (v) make any public statement or proposal inconsistent with the Company Board Recommendation, or (vi) enter into any merger agreement, letter of intent, agreement in principle, share purchase agreement, asset purchase agreement, share exchange agreement, option agreement or other similar document relating to a Competing Proposal or enter into any agreement or agreement in principle requiring the Investor to abandon, terminate or breach its obligations hereunder or fail to consummate the transactions contemplated hereby.

(b) The Investor shall promptly (and in no event later than twenty-four (24) hours) notify Parent in the event that the Investor receives (i) any Competing Proposal, (ii) any request for non-public information relating to the Company or any Company Subsidiary other than requests submitted by Persons with whom the Investor is permitted to engage in discussions and negotiations pursuant to Section 5.4 of the Merger Agreement covered by an Acceptable Confidentiality Agreement or (iii) any inquiry or request for discussions or negotiations regarding any Competing Proposal. The Investor shall notify Parent promptly (and in any event within 24 hours) with the identity of such Person and a copy of such Competing Proposal, inquiry or request (or, where no such copy is available, a reasonably detailed description of such Competing Proposal, inquiry or request), including any modifications thereto. The Investor shall keep Parent reasonably informed on a reasonably current basis of the status of any Competing Proposal (including any material modifications to the terms thereof) and shall provide Parent with copies of all written proposals or offers with respect to, and all draft documentation reflecting material revisions to, such Competing Proposal.

2.5 Waiver of Participation in Stockholder Actions. The Investor agrees not to commence or join in, and agrees to take all actions necessary to opt out of, any class in any class action with respect to, any claim, derivative or otherwise, against Parent, U.S. Parent, the Purchaser, the Company or any of their respective successors (a) challenging the validity of, or seeking to enjoin the operation of, any provision of this Agreement or the Merger Agreement, or (b) alleging a breach of any fiduciary duty of any person in connection with the negotiation and entry into this Agreement or the Merger Agreement.

2.6 Communications. Except as provided in Section 5.7 of the Merger Agreement, Parent and the Investor shall consult with each other before issuing any press release or otherwise making any public statements with respect to entry into this Agreement and entry into the Merger Agreement and the party issuing the press release or public announcement shall

 

5


use its commercially reasonable efforts to allow each other party reasonable time to comment on such release or announcement in advance of such issuance. In furtherance and not in limitation of the foregoing, Parent and its counsel shall be given a reasonable amount of time to review any amendment to the Investor’s Schedule 13D to be filed with the SEC, and the Investor shall give due consideration to the additions, deletions or changes suggested thereto by Parent and its counsel.

2.7 No Limitation on Actions as Director of Officer. Nothing in this Agreement shall be construed to prohibit the Investor from taking any action solely in his capacity as a member of the Company Board or as an executive officer of the Company or, subject to the limitations set forth in the Merger Agreement, from taking any action with respect to any Competing Proposal in such capacity.

2.8 No Ownership Interest. Nothing contained in this Agreement shall be deemed, upon execution, to vest in Parent any direct or indirect ownership or incidence of ownership of or with respect to any Covered Shares. All rights, ownership and economic benefits of and relating to the Covered Shares shall remain vested in and belong to the Investor, and Parent shall have no authority to manage, direct, superintend, restrict, regulate, govern or administer any of the policies or operations of the Company or exercise any power or authority to direct the Investor in the voting of any of the Covered Shares, except as otherwise provided herein.

2.9 Legends. Certificates, if any, and other evidences of Covered Shares (including, without limitation, any statement of information required by NRS 78.235 in respect of any uncertificated shares) shall conspicuously bear the following legend during the term of this Agreement:

“THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A CONTRIBUTION, NON-TENDER AND SUPPORT AGREEMENT (A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY), AND, BY ACCEPTING ANY INTEREST IN SUCH SHARES, THE PERSON HOLDING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF SUCH CONTRIBUTION, NON-TENDER AND SUPPORT AGREEMENT, INCLUDING THE VOTING OBLIGATIONS AND RESTRICTIONS ON TRANSFER SET FORTH THEREIN.”

ARTICLE 3

REPRESENTATIONS AND WARRANTIES

3.1 Representations and Warranties of Parent. Parent represents and warrants to the Investor as follows:

(a) Parent is an exempted limited partnership, validly existing and in good standing under the laws of the Cayman Islands and has all requisite power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution and delivery by Parent of this Agreement, the performance by Parent of its obligations hereunder,

 

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and the consummation by Parent of the transactions contemplated hereby have been duly authorized. This Agreement has been duly executed and delivered by Parent and, assuming the due execution and delivery thereof by the Investor, constitutes a legally valid and binding obligation of Parent, enforceable against Parent in accordance with its terms (except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other similar Laws of general applicability relating to or affecting creditor’s rights, and to general equitable principles).

(b) The execution, delivery and performance by Parent of this Agreement and the consummation by Parent of the transactions contemplated hereby do not and will not, with or without the giving of notice or the passage of time or both, (i) violate the provisions of any Law or order applicable to Parent or its properties or assets, (ii) require any consent or approval under, violate, result in any breach of or any loss of any benefit under, or constitute a default under, or result in termination or give to others any right of termination, vesting, amendment, acceleration or cancellation of, or result in the creation of a Lien upon any of the respective properties or assets of Parent, the Purchaser or any Parent Subsidiary pursuant to, any Contract or permit to which Parent, the Purchaser or any Parent Subsidiary is a party or by which they or any of their respective properties or assets may be bound or affected, or (iii) violate the provisions of the governing documents of Parent.

3.2 Representations and Warranties of the Investor. The Investor represents and warrants to Parent that:

(a) The Investor has full legal capacity, right and authority to execute and deliver this Agreement and to perform his obligations hereunder. This Agreement has been duly executed and delivered by the Investor, and assuming the due execution and delivery thereof by Parent, constitutes a legally valid and binding obligation of the Investor, enforceable against the Investor in accordance with its terms (except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other similar Laws of general applicability relating to or affecting creditor’s rights, and to general equitable principles).

(b) The execution, delivery and performance of this Agreement by the Investor and the consummation by the Investor of the transactions contemplated hereby do not and will not, with or without the giving of notice or the passage of time or both, (i) violate the provisions of any Law or order applicable to the Investor, (ii) require authorization, approval, consent or other action by any Person under, result in a breach of any of the terms of, or constitute a default under, or give rise to any right of termination, cancellation or acceleration or to a loss of any benefit to which the Investor is entitled under any provision of any agreement or other instrument to which the Investor is a party or by which the Investor is bound, or (iii) result in the imposition of any Lien on any of the Covered Shares.

(c) The Investor is the beneficial owner of the Covered Shares free and clear of any Liens and any other limitation or restriction (including any restriction on the right to vote or otherwise dispose of any such Covered Shares) other than those created by this Agreement and those set forth in any applicable Benefit Plans. Other than those shares of Company Common Stock as to which the Investor may be deemed to have voting power as a

 

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result of the Johander Trust Voting Agreement, the Covered Shares constitute all of the capital stock and any other Equity Interests in the Company owned of record or beneficially by the Investor on the date hereof and, except for the Covered Shares, none of the Investor nor any of its affiliates is the beneficial owner of, or has any right to acquire (whether currently, upon lapse of time, following the satisfaction of any conditions, upon the occurrence of any event or any combination of the foregoing), any shares of Company Common Stock or other Equity Interests in the Company. The Investor has sole voting power, sole power of disposition and sole power to issue instructions with respect to the matters set forth in this Agreement, in each case with respect to all of the Covered Shares, with no limitations, qualifications or restrictions on such rights, subject to applicable securities Laws and the terms of this Agreement.

(d) The Investor is acquiring the limited partnership interest in Parent for investment for its own account and not with a view to, or for sale in connection with, any distribution thereof. The Investor (either alone or together with his its advisors) has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment in Parent and is capable of bearing the economic risks of such investment.

(e) If the Investor is a married individual and the Covered Shares constitute community property or otherwise need spousal approval in order for this Agreement to be a legally valid and binding obligation of the Investor, this Agreement has been duly executed and delivered by the Investor’s spouse and, assuming this Agreement is a legally valid and binding obligation of Parent, constitutes a legally valid and binding obligation of the Investor’s spouse, enforceable against such spouse in accordance with its terms (except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other similar Laws of general applicability relating to or affecting creditor’s rights, and to general equitable principles).

ARTICLE 4

MISCELLANEOUS

4.1 Notices. Any notices or other communications required or permitted under, or otherwise given in connection with, this Agreement shall be in writing and shall be deemed to have been duly given (a) when delivered or sent if delivered in Person or sent by facsimile transmission (provided confirmation of facsimile transmission is obtained), (b) on the fifth Business Day after dispatch by registered or certified mail, (c) on the next Business Day if transmitted by national overnight courier or (d) on the date delivered if sent by email (provided confirmation of email receipt is obtained), in each case as follows:

If to Parent, addressed to it at:

GTCR Gridlock Holdings (Cayman), L.P.

300 N. LaSalle Street

Suite 5600

Chicago, Illinois 60654

Phone: (312) 382-2200

Fax: (312) 382-2201

 

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E-mail: christian.mcgrath@gtcr.com

Attention: Christian B. McGrath

with a copy to (for information purposes only):

Latham & Watkins LLP

885 Third Avenue

New York, New York 10022

Phone: (212) 906-1200

Fax: (212) 751-4864

E-mail: ted.sonnenschein@lw.com

bradley.faris@lw.com

Attention:      Edward Sonnenschein

Bradley C. Faris

If to Investor, addressed to him at:

William L. Yde

208 West Stafford Road

Westlake Village, California 91361

Phone:     (805) 557-0807

E-mail:    drsamtraffic@aol.com

with a copy to (for information purposes only):

Pryor Cashman LLP

7 Times Square

New York, New York 10036

Phone: (212) 326-0110

Fax: (212) 798-6911

E-mail: erayner@pryorcashman.com

Attention:      Edward J. Rayner

4.2 Termination. The term of this Agreement shall commence on the date hereof and shall terminate upon the earliest of (a) the mutual agreement of Parent and the Investor, (b) the Effective Time (c) the termination or withdrawal of the Offer pursuant to its terms or the terms of the Merger Agreement without any shares of Company Common Stock being purchased thereunder or (d) the termination of the Merger Agreement in accordance with its terms; provided, that nothing herein shall relieve any party hereto from liability for any breach of this Agreement and this Section 4.2, and Sections 4.4 through 4.12 shall survive any termination of this Agreement.

4.3 Further Assurances. Each party hereto shall use its commercially reasonable efforts to take, or cause to be taken, all action and to do, or cause to be done, all things necessary, proper or advisable to satisfy its obligations hereunder. In furtherance and not in limitation of the foregoing, each of Parent and the Investor shall cause the appropriate purchase agreements, deeds, bills of sale, instruments of conveyance, assignments, assurances or any other actions or things that are necessary or desirable to give effect to and/or consummate the Contribution.

 

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4.4 Successors and Assigns. Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or delegated, in whole or in part, by operation of law or otherwise by any party hereto without the prior written consent of the other party, and any such assignment without such prior written consent shall be null and void; provided, that notwithstanding the foregoing, after consummation of the transactions contemplated as of the Contribution Closing, Parent may assign all but not less than all of its rights and obligations hereunder to any affiliate without the prior written consent of the Investor. This Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the parties hereto and their respective successors and permitted assigns.

4.5 Counterparts. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.

4.6 Survival. The representations, warranties, and other agreements contained herein will survive the Contribution Closing.

4.7 Amendments and Waivers. No amendment, modification or supplement to the Agreement shall be enforced against any party unless such amendment, modification or supplement is in writing and signed by Parent and the Investor. Any waiver by any party of any term of this Agreement shall not operate as or be construed to be a waiver of any other term of this Agreement.

4.8 Integration. This Agreement contains the entire understanding of the parties with respect to the subject matter hereof. There are no agreements, representations, warranties, covenants or undertakings with respect to the subject matter hereof other than those expressly set forth herein. This Agreement supersedes all prior agreements and understandings between the parties with respect to this subject matter. There are no third party beneficiaries having rights under or with respect to this Agreement.

4.9 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

4.10 Specific Performance. The parties hereto agree that if any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached, irreparable damage would occur, no adequate remedy at law would exist and damages would be difficult to determine, and that the parties shall be entitled to specific performance of the terms hereof.

 

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4.11 No Recourse. Any claim or cause of action based upon, arising out of, or related to this Agreement may only be brought against Persons that are expressly named as parties hereto, and then only with respect to the specific obligations set forth herein. No former, current or future direct or indirect equity holders, controlling persons, stockholders, directors, officers, employees, members, managers, agents, affiliates, general or limited partners or assignees of Parent, U.S. Parent, the Purchaser, the Investor or of any former, current or future direct or indirect equity holder, controlling person, stockholder, director, officer, employee, member, manager, general or limited partner, affiliate, agent or assignee of any of the foregoing shall have any liability or obligation for any of the representations, warranties, covenants, agreements, obligations or liabilities of Parent or the Investor under this Agreement or of or for any action, suit, arbitration, claim, litigation, investigation, or proceeding based on, in respect of, or by reason of, the transactions contemplated hereby (including the breach, termination or failure to consummate such transactions), in each case whether based on contract, tort or strict liability, by the enforcement of any assessment, by any legal or equitable proceeding, by virtue of any statute, regulation or applicable Laws or otherwise and whether by or through attempted piercing of the corporate or partnership veil, by or through a claim by or on behalf of a party hereto or another Person or otherwise.

4.12 Governing Law; Consent to Jurisdiction; Waiver of Trial by Jury.

(a) This Agreement shall be governed by, and construed in accordance with, the Laws of the State of Nevada, without regard to Laws that may be applicable under conflicts of laws principles (whether of the State of Nevada or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of Nevada.

(b) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any Nevada State court, or Federal court of the United States of America, sitting in Clark County, Nevada, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or the agreements delivered in connection herewith or the transactions contemplated hereby or thereby or for recognition or enforcement of any judgment relating thereto, and each of the parties hereby irrevocably and unconditionally (i) agrees not to commence any such action or proceeding except in such courts, (ii) agrees that any claim in respect of any such action or proceeding may be heard and determined in such Nevada State court or, to the extent permitted by Law, in such Federal court, (iii) waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any such action or proceeding in any such Nevada State or Federal court, and (iv) waives, to the fullest extent permitted by Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such Nevada State or Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 4.1. Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by Law.

 

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(c) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT AND ANY OF THE AGREEMENTS DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (II) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS, (III) IT MAKES SUCH WAIVERS VOLUNTARILY AND (IV) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 4.12(c).

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

 

GTCR Gridlock Holdings (Cayman), L.P.
By:   GTCR Gridlock Partners, Ltd.
Its:   General Partner
By:  

/s/ Mark M. Anderson

  Name:   Mark M. Anderson
  Title:   Director

/s/ William L. Yde III

Name: William L. Yde III

 

[Signature Page to Contribution, Non-Tender Agreement and Support Agreement]


Spousal Consent to Contribution, Non-Tender and Support Agreement

The undersigned (a) understands that, pursuant to the provisions of the Contribution, Non-Tender and Support Agreement (the “Agreement”) to which this Spousal Consent is attached, William L. Yde III has agreed not to tender the Covered Shares in the Offer and, upon the terms and subject to the conditions of the Agreement, to contribute and deliver to Parent all of the Contributed Shares, (b) understands that she may have a community property or other interest in such Covered Shares, and (c) consents to such non-tender provisions and the Contribution and agrees to be bound by each and every provision of the Agreement. Capitalized terms used in this Spousal Consent and not otherwise defined herein shall have the meanings ascribed to them in the Agreement.

 

/s/ Justine Jane Yde

Name: