CONTRIBUTION AND DISTRIBUTION
AGREEMENT
FIDELITY NATIONAL INFORMATION
SERVICES, INC.
LENDER PROCESSING SERVICES,
INC.
dated as of June 13,
2008
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Page
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ii
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ii
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SECTION 1.2. Interpretation
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vii
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ARTICLE II THE ASSET CONTRIBUTION, THE
DISTRIBUTION AND THE DEBT EXCHANGE
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viii
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SECTION 2.1. Asset Contribution, Assumption of
Liabilities and Delivery of Shares and Notes
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viii
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SECTION 2.2. Asset Contribution Deliverables;
Distribution Date Deliverables
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viii
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x
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SECTION 2.4. Debt Exchange
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x
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ARTICLE III NO REPRESENTATIONS AND
WARRANTIES
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xi
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SECTION 3.1. No Representations and
Warranties
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xi
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SECTION 3.2. No Warranty Regarding Transition
License
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xi
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ARTICLE IV ACCESS TO INFORMATION AND
RECORDS
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xii
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SECTION 4.1. Access to Information
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xii
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SECTION 4.2. Restrictions on Disclosure of
Information
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xiv
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SECTION 4.3. Record Retention
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xv
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SECTION 4.4. Production of Witnesses
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xvi
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SECTION 4.5. Other Agreements Regarding Access
to Information
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xvi
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ARTICLE V ADDITIONAL AGREEMENTS
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xvi
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xvi
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Page
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SECTION 5.2. Insurance Matters
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xvi
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SECTION 5.3. Reasonable Best Efforts
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xviii
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SECTION 5.4. Public Announcements
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xviii
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SECTION 5.5. Related Party Agreements
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xix
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SECTION 5.6. Intercompany Obligations
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xix
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xix
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ARTICLE VI TRANSITION LICENSE OF CERTAIN
INTELLECTUAL PROPERTY
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xix
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SECTION 6.1. Grant of Transition License for Use
of Certain FIS Marks
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xix
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xix
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(b) License Restrictions and
Limitations
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xix
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xx
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(d) Sublicense Limitations
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xx
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(e) Inconsistency with Related Party
Agreements
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xxi
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SECTION 6.2. Alterations and
Variations
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xxi
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xxi
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SECTION 6.4. Enforcement;
Infringement
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xxi
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SECTION 6.5. Termination Prior to the Transition
License Expiration Date
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xxi
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(a) Termination as a result of
Disaffiliation
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xxi
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(b) Termination for Insolvency
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xxii
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(c) Transition Upon Termination
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xxii
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xxiii
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(e) Transition License Survival
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xxiii
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SECTION 6.6. Unauthorized Use
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xxiii
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ARTICLE VII INDEMNIFICATION
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xxiii
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SECTION 7.1. Indemnification by LPS
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xxiii
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SECTION 7.2. Indemnification by FIS
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xxiv
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SECTION 7.3. Claim Procedure
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xxv
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xxv
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(b) Response to Notice of Claim
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xxv
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-ii-
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Page
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xxv
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xxv
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SECTION 7.4. Contribution
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xxvi
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xxvii
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(a) Insurance Proceeds; Third Party
Coverage
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xxvii
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xxvii
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(c) Certain Damages Not
Indemnified
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xxviii
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(d) Successors and Assigns
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xxviii
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(e) Payments Made on After-Tax
Basis
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xxviii
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ARTICLE VIII GENERAL PROVISIONS
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xxviii
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SECTION 8.1. Governing Law
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xxviii
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SECTION 8.2. Jurisdiction and Venue; Waiver of
Jury Trial
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xxix
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SECTION 8.3. Dispute Resolution
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xxix
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xxix
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xxix
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xxx
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xxx
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(e) Commencement of Dispute Resolution
Procedure
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xxxi
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xxxi
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SECTION 8.5. Binding Effect and
Assignment
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xxxii
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SECTION 8.6. Severability
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xxxii
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SECTION 8.7. Entire Agreement
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xxxii
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SECTION 8.8. Counterparts
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xxxiii
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xxxiii
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xxxiii
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xxxiii
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SECTION 8.12. Construction of
Agreement
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xxxiii
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SECTION 8.13. Transition License General
Terms
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xxxiv
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(a) Relationship of the Parties
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xxxiv
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xxxiv
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(c) UN Convention Disclaimed
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xxxiv
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xxxiv
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SECTION 8.14. Termination
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xxxiv
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-iii-
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Form of LPS
Term A Notes
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Form of LPS
Term B Notes
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Form of LPS
Bond Indebtedness
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Form of
Assignment and Bill of Sale
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Form of
Assumption Agreement
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List of Subject
Companies
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Transferred
Employee Employment Agreements (1)
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Related Party
Agreements
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Repayment of
Intercompany Obligations
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Liabilities
Requiring Indemnification (1)
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(1)
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This Schedule
has been omitted in its entirety and filed separately with the
Securities and Exchange Commission as part of an application for
confidential treatment pursuant to the Securities Exchange Act of
1934, as amended.
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-iv-
CONTRIBUTION AND DISTRIBUTION
AGREEMENT
CONTRIBUTION AND DISTRIBUTION AGREEMENT , dated as of
June 13, 2008 (this “ Agreement ”), between
Fidelity National Information Services, Inc. , a Georgia
corporation (“ FIS ”), and Lender Processing
Services, Inc. , a Delaware corporation (“ LPS
”).
WHEREAS,
the Board of Directors of FIS has determined that it is in the best
interests of FIS and its stockholders to separate its lender
processing services business and to distribute ownership of the
lender processing services business to the stockholders of FIS as a
dividend; and
WHEREAS,
FIS owns, directly or indirectly, (i) that percentage of the
issued and outstanding shares of capital stock or other equity
securities or ownership interests set forth on Schedule I
(the “ Subject Securities ”) of the entities
listed on Schedule I (the “ Subject
Companies ”) and (ii) the Other Assets (as
hereinafter defined), which Subject Securities and Other Assets
constitute all of the material properties, assets and rights that
primarily relate to, arise out of or are held in connection with
the lender processing services business currently conducted by FIS
and its Subsidiaries; and
WHEREAS,
FIS desires to contribute to LPS all of the Subject Securities and
all of the Other Assets (collectively, the “ Asset
Contribution ”) in exchange for (i) the issuance by
LPS to FIS of the LPS Shares (as hereinafter defined) and the LPS
Notes (as hereinafter defined) and (ii) the assumption by LPS of
the Assumed Liabilities (as hereinafter defined); and
WHEREAS,
the board of directors of FIS has approved (i) the Asset
Contribution in exchange for the LPS Shares and the LPS Notes,
(ii) the distribution, following the Asset Contribution, of
all of the shares of LPS Common Stock held by FIS to the holders of
the outstanding shares of capital stock of FIS as of the Record
Date (as defined herein) for such distribution (the “
Spin-off ”), and (iii) in connection with the
Spin-off, the exchange by FIS of the LPS Notes for a like amount of
FIS’s existing indebtedness consisting of the Tranche B Term
Loans issued under the FIS 2007 Credit Agreement (as defined
herein) (the “ Debt Exchange ”); and
WHEREAS,
the board of directors of LPS has approved the issuance of the LPS
Shares and the LPS Notes, as well as assumption by LPS of the
Assumed Liabilities (as hereinafter defined) and the acceptance of
the Asset Contribution;
NOW,
THEREFORE, in consideration of the premises, covenants and
agreements contained in this Agreement, and for other good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, FIS and LPS agree as follows:
SECTION
1.1. Definitions . For purposes of this Agreement, the
following terms shall have the respective meanings set forth
below:
“
Action or Proceeding ” means any charge, complaint,
grievance, action, suit, litigation, proceeding or arbitration,
whether civil, criminal, administrative or investigative, by any
Person, or any investigation by or before any Governmental
Entity.
“
Adverse Consequences ” means damages, penalties,
fines, costs, expenses (including professional fees and expenses),
amounts paid in settlement, liabilities, obligations, liens, and
losses, including any such amounts arising out of or related to
claims asserted against LPS or FIS by any shareholder participating
in the Spin-off; provided that Adverse Consequences shall
not include any indirect, special, consequential, or punitive
damages.
“
Affiliate ” means, with respect to any specified
Person, a Person that directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common
control with, such specified Person; provided ,
however , that, for purposes of this Agreement, no member of
either Group shall be deemed to be an Affiliate of any member of
the other Group. As used herein, “control” means the
possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such entity,
whether through ownership of voting securities or other interests,
by contract or otherwise.
“
Agreement ” has the meaning set forth in the
Preamble.
“
Ancillary Agreement ” or “ Ancillary
Agreements ”, as the context may require, means each of
the LPS Notes, the Employee Matters Agreement, the Tax
Disaffiliation Agreement, each of the other Related Party
Agreements, and each other agreement or instrument to be entered
into in connection with the Asset Contribution or the Spin-off,
including any exhibits, schedules, attachments, tables or other
appendices thereto, and each other agreement and other instrument
contemplated herein or in any of the foregoing, all as may be
amended from time to time.
“
Arbitrator ” has the meaning set forth in
Section 8.3(c).
“
Asset Contribution ” has the meaning set forth in the
Recitals.
“
Asset Contribution Date ” means the date on which the
Asset Contribution is effective.
“
Assignment and Bill of Sale ” means that certain
Assignment and Bill of Sale to be entered by FIS to and in favor of
LPS in connection with the Asset Contribution, in the form of
Exhibit D , as such may be amended from time to
time.
“
Assumed Liabilities ” means all liabilities and
obligations of any member of the FIS Group required to be paid or
performed under any contract or other agreement included
in
the Other
Assets or otherwise arising in connection with any of the Other
Assets, whether required to be paid or performed before or after
the Asset Contribution Date.
“
Assumption Agreement ” means that certain Assumption
Agreement to be entered by LPS to and in favor of FIS in connection
with the Asset Contribution, in the form of Exhibit E ,
as such agreement may be amended from time to time.
“
Business Day ” means any day, other than a Saturday or
Sunday, or a day on which banking institutions are authorized or
required by law or regulation to close in Jacksonville, Florida or
New York, New York.
“
Change of Control ” means, with respect to any Person,
an acquisition by any person (within the meaning of
Section 3(a)(9) of the Exchange Act) and used in Sections
13(d) and 14(d) thereof of Beneficial Ownership (within the meaning
of Rule 13d-3 under the Exchange Act) of 50% or more of either
the then outstanding shares of common stock or the combined voting
power of the then outstanding voting securities entitled to vote
generally in the election of directors; excluding ,
however , the following: (A) any acquisition directly
from such Person, other than an acquisition by virtue of the
exercise of a conversion privilege unless the security being so
converted was itself acquired directly from such Person or
(B) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by such Person or by one or more
members of such Person’s group of affiliates
entities.
“
Claim Notice ” has the meaning set forth in
Section 7.3(a).
“
Claimed Amount ” has the meaning set forth in
Section 7.3(a).
“
Code ” means the Internal Revenue Code of 1986, as
amended.
“
Controlling Party ” has the meaning set forth in
Section 7.3(d)(ii).
“
D&O Tail Policy ” has the meaning set forth in
Section 5.2(b)(i).
“
Damages ” means all losses, claims, demands, damages,
liabilities, judgments, dues, penalties, assessments, fines (civil,
criminal or administrative), costs, obligations, liens,
forfeitures, settlements, payments, costs, fees or expenses
(including reasonable attorneys’ fees and expenses and any
other expenses reasonably incurred in connection with
investigating, prosecuting or defending a claim or Action or
Proceeding), of any nature or kind, whether or not the same would
properly be reflected on a balance sheet.
“
Debt Exchange ” has the meaning set forth in the
Recitals.
“
Disclosing Party ” has the meaning set forth in
Section 4.2(c).
“
Dispute ” has the meaning set forth in
Section 8.3(a).
“
Distribution Date ” means the date on which the
Spin-off is effective.
“
Employee Matters Agreement ” means the Employee
Matters Agreement to be entered into by and between FIS and LPS, as
may be amended from time to time.
“
Exchange Act ” means the Securities Exchange Act of
1934, as amended, together with the rules and regulations
promulgated thereunder.
“
Existing Insurance ” has the meaning set forth in
Section 5.2(b)(ii).
“
Fiduciary and EP Tail Policy ” has the meaning set
forth in Section 5.2(b).
“
FIS ” means Fidelity National Information Services,
Inc., a Georgia corporation.
“
FIS 2007 Credit Agreement ” means the Credit Agreement
dated as of January 18, 2007, as amended, among FIS, as
borrower, and JPMorgan Chase Bank, N.A., Bank of America, N.A.,
Wachovia Bank, National Association, and certain other
parties.
“
FIS Group ” means FIS, the Subsidiaries of FIS and
each Person that is or becomes an Affiliate of FIS (other than LPS
or any member of the LPS Group) from and after the Asset
Contribution.
“
FIS Indemnified Parties ” has the meaning set forth in
Section 7.1.
“
FIS Marks ” has the meaning set forth in
Section 6.1(a).
“
FIS Policies ” has the meaning set forth in
Section 5.2(b)(ii).
“
FIS Public Filings ” has the meaning set forth in
Section 4.1(b).
“
FNF ” means Fidelity National Financial, Inc., a
Delaware corporation.
“
FNF Policy ” has the meaning set forth in
Section 5.2(a).
“
GAAP ” means U.S. generally accepted accounting
principles, consistently applied.
“
Governmental Entity ” means any federal, state, local,
foreign or international court, government, department, commission,
board, bureau or agency, or any other regulatory, administrative or
governmental authority, including the NYSE.
“
Group ” means either the FIS Group or the LPS Group,
as the context requires.
“
Indemnifiable Losses ” mean all Damages suffered by an
Indemnitee, including any reasonable out-of-pocket fees, costs or
expenses of enforcing any indemnity hereunder; provided that
“Indemnifiable Losses” shall not include any such
Damages caused by, resulting from or arising out of the gross
negligence, willful misconduct or fraud of such
Indemnitee.
“
Indemnified Party ” has the meaning set forth in
Section 7.3(a).
“
Indemnifying Party ” has the meaning set forth in
Section 7.3(a).
“
Indemnitee ” means a Person who or which may seek
indemnification under this Agreement.
“
Jacksonville Court ” has the meaning set forth in
Section 8.2.
“
LPS ” means Lender Processing Services, Inc., a
Delaware corporation.
“
LPS Common Stock ” means LPS Common Stock, par value
$0.0001 per share.
“
LPS Group ” means LPS, the Subsidiaries of LPS, and
each Person that LPS directly or indirectly controls (within the
meaning of the Securities Act) immediately after the Asset
Contribution, and each other Person that becomes an Affiliate of
LPS after the Spin-off.
“
LPS Indemnified Parties ” has the meaning set forth in
Section 7.2.
“
LPS Notes ” has the meaning set forth in
Section 2.1(a).
“
LPS Public Filings ” has the meaning set forth in
Section 4.1(c).
“
LPS Shares ” has the meaning set forth in
Section 2.1(a).
“
Non-controlling Party ” has the meaning set forth in
Section 7.3(d)(ii).
“
NYSE ” means the New York Stock Exchange,
Inc.
“
Other Assets ” means all other properties, assets and
rights of any nature, kind and description, tangible and intangible
(including goodwill), whether real, personal or mixed, held by FIS
immediately prior to the Asset Contribution that primarily relate
to, arise out of or are held in connection with the Transferred
Business.
“
Owning Party ” has the meaning set forth in
Section 4.2(c).
“
Party ” or “ Parties ”, as the
context may require, mean each or both of FIS and LPS.
“
Person ” means (i) for all Sections of this
Agreement, except in the context of “Change of
Control”, an individual, a partnership, a corporation, a
limited liability company, an association, a joint stock company, a
trust, a joint venture, an unincorporated organization or a
Governmental Entity, and (ii) for “Change of
Control”, the meaning set forth in the definition for
“Change of Control”.
“
Providing Party ” has the meaning set forth in
Section 4.1(a).
“
Record Date ” means the close of business on the date
to be determined by the FIS board of directors as the record date
for determining the stockholders of FIS entitled to receive shares
of LPS Common Stock pursuant to a pro-rata distribution of shares
of LPS Common Stock as part of the Spin-off.
“
Records ” has the meaning set forth in
Section 4.1(a).
“
Related Party Agreements ” has the meaning set forth
in Section 5.5(a).
“
Representative ” means, with respect to any Person,
any of such Person’s directors, officers, employees, agents,
consultants, advisors, accountants or attorneys.
“
Requesting Party ” has the meaning set forth in
Section 4.1(a).
“
Retention Period ” has the meaning set forth in
Section 4.3.
“
SEC ” means the United States Securities and Exchange
Commission, or any successor agency.
“
Securities Act ” means the Securities Act of 1933, as
amended from time to time, together with the rules and regulations
promulgated thereunder.
“
Spin-off ” has the meaning set forth in the
Recitals.
“
Spin-off Declaration ” has the meaning set forth in
Section 2.3(a).
“
Split Dollar Plan ” has the meaning set forth in
Section 2.2(a)(vi).
“
Steering Committee ” has the meaning set forth in
Section 8.3(a).
“
Subject Companies ” has the meaning set forth in the
Recitals.
“
Subject Company Subsidiary ” means one or more
Subsidiaries of a Subject Company.
“
Subject Securities ” has the meaning set forth in the
Recitals.
“
Subsidiary ” means, with respect to any specified
Person, any Person of which such specified Person controls or owns,
directly or indirectly, more than fifty percent (50%) of the stock
or other equity interest entitled to vote on the election of the
members to the board of directors or similar governing body;
provided , however , that unless the context
otherwise requires, references to Subsidiaries of FIS will not
include LPS or the Persons that will be transferred to LPS or other
members of the LPS Group pursuant to this Agreement, whether the
transfer of such Persons occurs prior to or after the Asset
Contribution.
“
Tax ” and “ Taxes ” means any net
income, gross income, gross receipts, alternative or add-on
minimum, sales, use, ad valorem, franchise, profits, license,
withholding, payroll, employment, excise, transfer, recording,
severance, stamp, occupation, premium, property, environmental,
estimated, custom duty, or other tax, governmental fee or other
like assessment or charge of any kind whatsoever, together with any
interest and any penalty, addition to Tax, or additional amount,
imposed by any Governmental Entity or any subdivision, agency,
commission or authority thereof or any quasi-governmental or
private body having jurisdiction over the assessment,
determination, collection, or imposition of any Tax (including the
United States Internal Revenue Service).
“
Tax Disaffiliation Agreement ” means that certain Tax
Disaffiliation Agreement to be entered by and between FIS and LPS,
as may be amended from time to time.
“
Third-Party Claim ” has the meaning set forth in
Section 7.3(d)(i).
“
Title 11 ” has the meaning set forth in
Section 8.13(b).
“
Transfer Agent ” means Computershare or such other
Person who has been appointed as the transfer agent for LPS Common
Stock.
“
Transferred Business ” means the lender processing
services operations of FIS as conducted on or prior to the Asset
Contribution Date.
“
Transferred Employee ” has the meaning set forth in
Section 2.2(a)(iv).
“
Transactions ” means the Asset Contribution, the
Spin-off, the Debt Exchange, and the “preliminary
transactions” as defined in the Tax Disaffiliation
Agreement.
“
Transition License Expiration Date ” has the meaning
set forth in Section 6.1(a).
“
Unauthorized Access ” has the meaning set forth in
Section 6.6.
SECTION
1.2. Interpretation.
(a) For purposes
of this Agreement (including all exhibits, schedules and
amendments), unless the context otherwise requires, (i) all
terms defined herein include the plural as well as the singular,
and the masculine, feminine or neuter gender shall be deemed to
include the others whenever the context so requires, (ii) all
accounting terms used but not otherwise defined herein shall have
the meanings given to them under GAAP, and (iii) references to
any Person include successors of such Person by consolidation and
merger and transferees of all or substantially all its assets (
provided that such successor has duly assumed in writing all
such Person’s obligations, if any, hereunder).
(b) Words such as
“herein,” “hereinafter,”
“hereof,” “hereto,” “hereby”
and “hereunder,” and words of like import refer to this
Agreement, unless the context requires otherwise.
(c) The words
“including,” “includes,” or
“include” are to be read as listing non-exclusive
examples of the matters referred to, whether or not words such as
“without limitation” or “but not limited
to” are used in each instance.
(d) References
herein to any agreement or other instrument shall, unless the
context otherwise requires (or the definition thereof otherwise
specifies), be deemed references to the same as it may from time to
time be changed, amended or extended in accordance with its
terms.
(e) Any reference
in this Agreement to a “member” of a Group means the
applicable Party to this Agreement or another Person referred to in
the definition of FIS Group or LPS Group, as applicable.
(f) All references
in this Agreement to times of day shall be to the city of
Jacksonville, Florida time.
THE ASSET CONTRIBUTION, THE
DISTRIBUTION AND THE DEBT EXCHANGE
SECTION
2.1. Asset Contribution, Assumption of Liabilities and Delivery
of Shares and Notes . Upon the terms and subject to the
conditions of this Agreement:
(a) On the Asset
Contribution Date, FIS shall transfer, or cause to be transferred,
to LPS all right, title and interest of FIS in and to all of the
Subject Securities and all right, title and interest of FIS in and
to the Other Assets, in exchange for (i) that number of shares
of LPS Common Stock (the “ LPS Shares ”) as
shall be determined in accordance with the formula set forth in the
Spin-off Declaration, to be issued and delivered to FIS on or prior
to the Distribution Date, (ii) one or more senior notes,
designated as Term A Notes and Term B Notes, together with certain
other bond indebtedness (collectively, the “ LPS Notes
”), all issued by LPS to and in favor of FIS in the aggregate
original principal amount of up to approximately $1.6 billion,
in the form of and containing the terms set forth in
Exhibit A (the form of the LPS Term A Notes),
Exhibit B (the form of the LPS Term B Notes, and
Exhibit C (the form of the LPS bond
indebtedness), all to be delivered to FIS on or prior to the
Distribution Date, and (iii) the assumption by LPS of the
Assumed Liabilities, as evidenced by the Assumption Agreement, to
be effective on the Asset Contribution Date; and
(b) LPS shall
(i) issue and deliver the LPS Shares and the LPS Notes to FIS
on or prior to the Distribution Date, and (ii) assume and
agree to pay, honor and discharge when due all of the Assumed
Liabilities in accordance with their respective terms pursuant to
the Assumption Agreement, effective on the Asset Contribution Date,
all in exchange for the Transferred Business, including the Subject
Securities and the Other Assets.
SECTION
2.2. Asset Contribution Deliverables; Distribution Date
Deliverables .
(a) On the Asset
Contribution Date at the time of the Asset Contribution:
(i) FIS shall
deliver to LPS (x) certificates representing the respective
Subject Securities, together with duly executed transfer forms
including all such deeds, instruments, stock powers, transfer
stamps or other documents as may be necessary to transfer full
legal and beneficial ownership of such Subject Securities to LPS,
and (y) all books and records of each of the Subject
Companies, together
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with all
material documents and materials relating solely to the Subject
Companies, the Other Assets and the Transferred
Business;
(ii) FIS shall
execute and deliver to LPS a bill of sale and such other deeds,
instruments or other documents (each in substance and form
reasonably satisfactory to LPS) as may be necessary to transfer
full legal and beneficial title to the Other Assets to LPS, and any
cash that is a part of the Other Assets shall be paid by wire
transfer of immediately available funds to an account designated by
LPS to FIS in writing no later than two Business Days before the
Asset Contribution Date;
(iii) LPS and FIS
shall execute and deliver the Assumption Agreement and the Employee
Matters Agreement;
(iv) All FIS
employees whose functions or responsibilities primarily relate to
the Transferred Business and who are not intended to be both
employees of FIS (or any member of the FIS Group) and of LPS (or
any member of the LPS Group) on the day immediately following the
Asset Contribution Date (each such employee being a “
Transferred Employee ”) shall be transferred to LPS
and thereafter, such employees shall be employees of
LPS;
(v) FIS or the
applicable member of the FIS Group shall assign to LPS (or the
applicable member of the LPS Group), and LPS or the applicable
member of the LPS Group shall assume from FIS (or the applicable
member of the FIS Group), all of FIS’s right, title, and
interest in and to, and all obligations and liabilities of FIS or
any member of the FIS Group under, all individual employment,
termination, retention, severance or other similar contracts or
agreements with each Transferred Employee and all of the rights,
interests, responsibilities, obligations and liabilities as the
employer under such contracts and agreements, including without
limitation those employment agreements listed on
Schedule 2.2(a) ; and
(vi) FIS or the
applicable member of the FIS Group shall assign to LPS (or the
applicable member of the LPS Group), and LPS or the applicable
member of the LPS Group shall assume from FIS (or the applicable
member of the FIS Group), the obligations of FIS or any member of
the FIS Group for each Transferred Employee under the Certegy Inc.
Executive Life and Supplemental Retirement Benefit Plan (the
“ Split Dollar Plan ”) and the life insurance
policies issued thereunder and all of the obligations and benefits
as the employer under the Split Dollar Plan and such life insurance
policies.
(b) On or before
the Distribution Date immediately prior to the Spin-off:
(i) LPS shall
issue and deliver to FIS the LPS Shares;
(ii) LPS shall
issue and deliver to FIS the LPS Notes; and
(iii) LPS and FIS
shall execute and deliver the Tax Disaffiliation Agreement, as well
as all other Related Party Agreements or amendments thereto, to be
effective as of the Distribution Date.
(a) Pursuant to
the approval of the Spin-off by the board of directors of FIS and
its declaration of the Spin-off dividend (the “ Spin-off
Declaration ”), following the Asset Contribution but
before the Distribution Date, FIS shall deliver to the Transfer
Agent certificates representing the shares of LPS Common Stock to
be delivered to the holders of FIS common stock entitled thereto in
connection with the Spin-off, and the Transfer Agent shall
thereafter distribute on the Distribution Date to each holder
(other than FIS or any FIS Subsidiary) of record of common stock of
FIS, as of the close of business on the Record Date, such number of
shares of LPS Common Stock as shall be determined in accordance
with the formula set forth in the Spin-off Declaration.
(b) LPS agrees to
take any and all actions and enter into any and all agreements and
arrangements reasonably requested by FIS to facilitate the Spin-off
(no matter the form of the Spin-off), including with respect to the
matters set forth in Article V of this Agreement, and to
cooperate with FIS in connection with the Spin-off. LPS shall use
its reasonable best efforts to cause its Representatives to
cooperate with FIS in connection with the Spin-off, including
making LPS executives available for any presentations, and causing
comfort letters and disclosure letters required by FIS to be
provided in connection therewith and shall take all actions
necessary or desirable to cause such documents to be in customary
form.
(c) No
certificates representing fractional shares of LPS Common Stock
will be distributed in the Spin-off. As soon as practicable after
the consummation of the Spin-off, LPS shall direct the Transfer
Agent to determine the number of whole shares and fractional
shares
of LPS Common Stock allocable to each holder of record or
beneficial owner of FIS Common Stock otherwise entitled to
fractional shares of LPS Common Stock, to aggregate all such
fractional shares and sell the whole shares obtained thereby, in
open market transactions or otherwise, in each case at then
prevailing trading prices, and to cause to be distributed to each
such holder or for the benefit of each such beneficial owner to
which a fractional share shall be allocable such holder or
owner’s ratable share of the proceeds of such sale, after
making appropriate deductions for any amount required to be
withheld for United States federal income tax purposes and to repay
expenses reasonably incurred by the Transfer Agent, including all
brokerage charges, commissions and transfer taxes, in connection
with such sale. LPS and the Transfer Agent shall use their
commercially reasonable efforts to aggregate the shares of LPS
Common Stock that may be held by any beneficial owner thereof
through more than one account in determining the fractional share
allocable to such beneficial owner.
SECTION
2.4. Debt Exchange . Prior to the Spin-off, LPS shall issue
to FIS the LPS Notes. The LPS Notes will be issued under
appropriate agreements and instruments to which LPS shall become a
party prior to its issuance of the LPS Notes. The Parties
acknowledge and agree that in connection with the Spin-off, FIS
intends to exchange all of the LPS Notes for
its existing
Tranche B Term Loan indebtedness issued under the FIS 2007 Credit
Agreement. The holders of the Tranche B Term Loan indebtedness
intend to syndicate or place the obligations of LPS under the
various credit facilities and with various groups of lenders and
debtholders. LPS agrees, and agrees to cause the LPS Subsidiaries
to, execute and deliver to FIS or any other person such further
documents, agreements and instruments, and take such further
action, as FIS may at any time reasonably request in order to
consummate and make effective, in the most expeditious manner
practicable, the Debt Exchange and such subsequent syndication and
placement, as contemplated by this Section 2.4.
NO REPRESENTATIONS AND
WARRANTIES
SECTION
3.1. No Representations and Warranties . LPS (on behalf of
itself and each member of the LPS Group) acknowledges and agrees
that, except as expressly set forth in this Agreement or any
Ancillary Agreement, (a) neither FIS nor any member of the FIS
Group is making any representations or warranties, express or
implied, in this Agreement, any Ancillary Agreement or any other
agreement contemplated hereby or thereby, as to the Transferred
Business, including without limitation as to the title to such
entities’ shares or other ownership interests or as to the
assets, liabilities, business or financial condition of such
entities (including the Subject Companies and the Other Assets),
all such transfers being made on an “as-is, where-is”
basis and (b) LPS and its Affiliates will bear the economic
and legal risks that any conveyance will prove to be sufficient to
vest in them good and marketable title, free and clear of any
security interest, pledge, lien, charge, claim or other encumbrance
of any nature whatsoever and that any consents or approvals, and
that any requirements of laws or judgments, with respect to the
transfer of the Transferred Business, have been received or
met.
SECTION
3.2. No Warranty Regarding Transition License . Without
limiting the generality of Section 3.1, except as may be
expressly set forth in Article VI, all licenses granted
pursuant to Article VI are “as is”, and neither
Party (nor any Person within the FIS Group or the LPS Group), nor
any of their respective officers, directors employees or agents
makes any representation or warranty (except as may be expressly
set forth in Article VI) with respect to FIS Marks or the
licenses granted or made pursuant to Article VI, including any
representation as to: (i) a Party’s right to grant
licenses, (ii) the scope of rights in the FIS Marks for any
specific goods or services, or (iii) the title to any such FIS
Marks or the absence of any third party infringement of any such
FIS Marks. FIS does not undertake any commitment to maintain or
defend the FIS Marks.
ACCESS TO INFORMATION AND
RECORDS
SECTION
4.1. Access to Information .
(a) Information
Access Available . The Parties intend that effective upon the
Asset Contribution, all books and records, documents, agreements,
data, files and other materials, whether written or electronically
stored (as applicable to each Party, its “ Records
”), relating to the Subject Companies or the Other Assets, or
arising out of or in connection with the operation of the
Transferred Business, shall be delivered by FIS to LPS. To the
extent that (i) Records owned or in the possession of one
Party (in such capacity, the “ Providing Party
”) created prior to the Distribution Date also include
therein (imbedded, as a part of or as a separate segment)
information relating to the other Party (in such capacity, the
“ Requesting Party ”) or relating to the
Requesting Party’s business, assets, liabilities or
operations, then during the Retention Period (as defined in
Section 4.3), the Providing Party will provide to the
Requesting Party, and will cause its respective Group members and
Representatives to provide to the Requesting Party, upon reasonable
advance written request and otherwise in accordance with the
requirements of this Section 4.1, reasonable access during
normal business hours and at the expense of the Requesting Party to
all such Records owned or in the possession of the Providing Party
and its Subsidiaries, if such access is reasonably required by the
Requesting Party in connection with the Requesting Party’s
financial reporting and accounting matters, the preparation of and
filing of any tax returns or the defense of any tax claim or
assessment, the prosecution or defense of any litigation or other
dispute with third parties, the preparation and filing of reports
and other materials with any Governmental Entity or any other bona
fide purpose, provided that such access does not
unreasonably disrupt the normal operations of the Providing Party
or any of its Subsidiaries. Subject to the confidentiality
provisions set forth in Section 4.2 and any other security
obligations as the Providing Party may reasonably deem necessary,
the Requesting Party may have all requested information duplicated
at the Requesting Party’s expense. Alternatively, the
Providing Party may choose to deliver, at the Requesting
Party’s expense, all requested information to the Requesting
Party in the form requested by the Requesting Party. The Providing
Party will notify the Requesting Party in writing at the time of
delivery if such information is to be returned to the Providing
Party. In such case, the Requesting Party will return such
information when no longer needed to the Providing Party at the
Requesting Party’s expense. In connection with providing
information pursuant to this Section 4.1, the Providing Party
hereto will, upon the request of the Requesting Party and upon
reasonable advance notice, make available during normal business
hours its respective employees (and those employees of its
respective Group members and Representatives, as applicable) to the
extent that they are reasonably necessary to and explain all
requested information with and to the Requesting Party,
provided that such access does not unreasonably disrupt the
normal operations of the Providing Party or any of its
Subsidiaries. Each Providing Party shall be entitled to
reimbursement from the Requesting Party, upon the presentation of
invoices therefor, for all reasonable out-of-pocket costs and
expenses (excluding allocated compensation and overhead expenses)
as may be reasonably incurred in providing information pursuant to
this Section 4.1(a).
(b) Access for
FIS Public Filings . Without limiting the generality of the
provisions of Section 4.1(a), LPS agrees to cooperate fully,
and cause LPS’s auditors to cooperate fully, with FIS to the
extent requested by FIS in the preparation of FIS’s press
releases, Quarterly Reports on Form 10-Q, Annual Reports to
Shareholders, Annual Reports on Form 10-K, any Current Reports on
Form 8-K and any other proxy, information and registration
statements, reports, notices, prospectuses and any other filings
made by FIS with the SEC, any national securities exchange or
otherwise made publicly available (collectively, the “ FIS
Public Filings ”). LPS agrees to provide to FIS all
information that FIS reasonably requests in connection with any FIS
Public Filings or that, in the judgment of FIS, is required to be
disclosed or incorporated by reference therein under any law, rule
or regulation. LPS will provide such information in a timely manner
on the dates reasonably requested by FIS (which may be earlier than
the dates on which LPS otherwise would be required hereunder to
have such information available) to enable FIS to prepare, print
and release all FIS Public Filings on such dates as FIS will
reasonably determine but in no event later than as required by
applicable law. LPS will use its commercially reasonable efforts to
cause LPS’s auditors to consent to any reference to them as
experts in any FIS Public Filings required under any law, rule or
regulation. LPS will authorize its auditors to make available to
FIS and its auditors both the personnel who performed, or are
performing, the annual audit of LPS and work papers related to the
annual audit of LPS, in all cases within a reasonable time prior to
the opinion date of FIS’s auditors, so that such auditors are
able to perform the procedures they consider necessary within
sufficient time to enable FIS to meet a reasonable timetable for
the release of the related audited financial statements. If and to
the extent requested by FIS, LPS will diligently and promptly
review all drafts of such FIS Public Filings and prepare in a
diligent and timely fashion any portion of such FIS Public Filing
pertaining to LPS. Prior to any printing or public release of any
FIS Public Filing, an appropriate executive officer of LPS will, if
requested by FIS, certify on behalf of LPS that the information
relating to LPS or any LPS Subsidiary or the Transferred Business
in such FIS Public Filing is accurate, true, complete and correct
in all material respects. Prior to the release or filing thereof,
FIS will provide LPS with a draft of any portion of an FIS Public
Filing containing information relating to LPS or any LPS Subsidiary
and will give LPS an opportunity to review such information and
comment thereon; provided that FIS will determine in its
sole and absolute discretion the final form and content of all FIS
Public Filings.
(c) Access for
LPS Public Filings . Without limiting the generality of the
provisions of Section 4.1(a), FIS agrees to cooperate fully,
and cause FIS’s auditors to cooperate fully, with LPS to the
extent requested by LPS in the preparation of LPS’s press
releases, Quarterly Reports on Form 10-Q, Annual Reports to
Shareholders, Annual Reports on Form 10-K, any Current Reports on
Form 8-K and any other proxy, information and registration
statements, reports, notices, prospectuses and any other filings
made by LPS with the SEC, any national securities exchange or
otherwise made publicly available (collectively, the “ LPS
Public Filings ”). FIS agrees to provide to LPS all
information that LPS reasonably requests in connection with any LPS
Public Filings or that, in the judgment of LPS, is required to be
disclosed or incorporated by reference therein under any law, rule
or regulation. FIS will provide such information in a timely manner
on the dates reasonably requested by LPS (which may be earlier than
the dates on
xiii
which FIS
otherwise would be required hereunder to have such information
available) to enable LPS to prepare, print and release all LPS
Public Filings on such dates as LPS will reasonably determine but
in no event later than as required by applicable law. FIS will use
its commercially reasonable efforts to cause FIS’s auditors
to consent to any reference to them as experts in any LPS Public
Filings required under any law, rule or regulation. FIS will
authorize its auditors to make available to LPS and its auditors
both the personnel who performed, or are performing, the annual
audit of FIS and work papers related to the annual audit of FIS, in
all cases within a reasonable time prior to the opinion date of
LPS’s auditors, so that such auditors are able to perform the
procedures they consider necessary within sufficient time to enable
LPS to meet a reasonable timetable for the release of the related
audited financial statements. If and to the extent requested by
LPS, FIS will diligently and promptly review all drafts of such LPS
Public Filings and prepare in a diligent and timely fashion any
portion of such LPS Public Filing pertaining to FIS. Prior to any
printing or public release of any LPS Public Filing, an appropriate
executive officer of FIS will, if requested by LPS, certify on
behalf of FIS that the information relating to FIS or any FIS
Subsidiary in such LPS Public Filing is accurate, true, complete
and correct in all material respects. Prior to the release or
filing thereof, LPS will provide FIS with a draft of any portion of
an LPS Public Filing containing information relating to FIS or any
FIS Subsidiary and will give FIS an opportunity to review such
information and comment thereon; provided that LPS will
determine in its sole and absolute discretion the final form and
content of all LPS Public Filings.
SECTION 4.2.
Restrictions on Disclosure of Information .
(a)
Generally . Without limiting any rights or obligations under
any other existing or future agreement between the Parties and/or
any other members of their respective Groups relating to
confidentiality, until the third anniversary of the Distribution
Date, each Party will, and each Party will cause its respective
Group members and its Representatives to, hold in confidence, with
at least the same degree of care that applies to FIS’s
confidential and proprietary information pursuant to its
confidentiality policies in effect as of the Asset Contribution
Date, all confidential and proprietary information concerning the
other Group that is either in its possession as of the Distribution
Date or furnished by the other Group or its respective
Representatives at any time pursuant to this Agreement, any
Ancillary Agreement or the transactions contemplated hereby or
thereby. Notwithstanding the foregoing, each Party, its respective
Group members and its Representatives may disclose such information
to the extent that such Party can demonstrate that such information
is or was (i) in the public domain other than by the breach of
this Agreement or by breach of any other agreement between or among
the Parties and/or any of their respective Group members relating
to confidentiality, or (ii) lawfully acquired from a third
Person on a non-confidential basis or independently developed by,
or on behalf of, such Party by Persons who do not have access to
any such information. Each Party will maintain, and will cause its
respective Group members and Representatives to maintain, policies
and procedures, and develop such further policies and procedures as
will from time to time become necessary or appropriate, to ensure
compliance with this Section 4.2.
xiv
(b) Disclosure
of Third Person Information . Each Party acknowledges that it
and other members of its Group may have in its or their possession
confidential or proprietary information of third Persons that was
received under a confidentiality or non-disclosure agreement
between such third Person and the other Party. Each Party will, and
will cause its respective Group members and its Representatives to,
hold in strict confidence the confidential and proprietary
information of third Persons to which any member of such
Party’s Group has access, in accordance with the terms of any
agreements entered into between such third Person and the other
Party or a member of the other Party’s Group.
(c) Legally
Required Disclosure of Information . If either Party or any of
its respective Group members or Representatives becomes legally
required to disclose any information (the “ Disclosing
Party ”) that it is otherwise obligated to hold in strict
confidence pursuant to Sections 4.2(a) or 4.2(b), such Party
will promptly notify the other Party (the “ Owning
Party ”) and will use all commercially reasonable efforts
to cooperate with the Owning Party so that the Owning Party may
seek a protective order or other appropriate remedy and/or waive
compliance with this Section 4.2. All expenses reasonably
incurred by the Disclosing Party in seeking a protective order or
other remedy will be borne by the Owning Party. If such protective
order or other remedy is not obtained, or if the Owning Party
waives compliance with this Section 4.2, the Disclosing Party
will (a) disclose only that portion of the information which
its legal counsel advises it is compelled to disclose or otherwise
stand liable for contempt or suffer other similar significant
corporate censure or penalty, (b) use all commercially
reasonable efforts to obtain reliable assurance requested by the
Owning Party that confidential treatment will be accorded such
information, and (c) promptly provide the Owning Party with a
copy of the information so disclosed, in the same form and format
so disclosed, together with a list of all Persons to whom such
information was disclosed.
SECTION
4.3. Record Retention . LPS will, and will cause each LPS
Subsidiary to, adopt and comply with a record retention policy with
respect to information owned by or in the possession of LPS or any
LPS Subsidiary and which is created prior to the Asset Contribution
Date. FIS will, and FIS will cause each of its Subsidiaries to,
comply with the FIS record retention policy with respect to
information owned by or in the possession of FIS or any FIS
Subsidiary and which is created prior to the Asset Contribution
Date. Each Party will, at its sole cost and expense, preserve and
retain all information in its respective possession or control that
the other Party has the right to access pursuant to
Section 4.1, or that it is otherwise required to preserve and
retain, for such period as is required in accordance with such
record retention policy or for any longer period as may be required
by (a) any Government Entity, (b) as a result of or
otherwise relating to any litigation matter, (c) applicable
law, or (d) any agreement relating hereto or executed in
connection with the Agreement (as applicable, the “
Retention Period ”). If either Party wishes to dispose
of any information which it is obligated to retain under this
Section 4.3 prior to the expiration of the Retention Period,
then that Party will first provide 45 days’ written notice to
the other Party, and the other Party will have the right, at its
option and expense, upon prior written notice within such 45-day
period, to take possession of such information within 90 days
after the date of the notice provided by the disposing Party
pursuant to this Section 4.3. Written notice of intent to
dispose of such information will include
xv
a description
of the information in detail sufficient to allow the other Party to
reasonably assess its potential need to retain such
materials.
SECTION
4.4. Production of Witnesses . Each Party will use
commercially reasonable efforts, and will cause each of its
respective Subsidiaries to use commercially reasonable efforts, to
make available to each other, upon written request, its past and
present Representatives as witnesses to the extent that any such
Representatives may reasonably be required in connection with any
legal, administrative or other proceedings in which the requesting
Party may from time to time be involved. Each Party providing
access to witnesses or information to the other Party pursuant to
this Section 4.4 will be entitled to receive from the
receiving Party, upon the presentation of invoices therefor,
payment for all reasonable, out-of-pocket costs and expenses
(excluding allocated compensation and overhead expenses) as may be
reasonably incurred in providing such witnesses or
information.
SECTION
4.5. Other Agreements Regarding Access to Information . The
rights and obligations of the Parties under this Article IV
are subject to any specific limitations, qualifications or
additional provisions on the sharing, exchang
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