Exhibit 10.1
Execution
Version
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BANC OF AMERICA SECURITIES
LLC
BANC OF AMERICA BRIDGE
LLC
BANK OF AMERICA,
N.A.
One Bryant Park
New York, New York
10036
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CREDIT SUISSE SECURITIES (USA)
LLC
CREDIT SUISSE
Eleven Madison
Avenue
New York, New York
10010
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J.P. MORGAN SECURITIES
INC.
JPMORGAN CHASE BANK,
N.A.
270 Park Avenue
New York, New York
10017
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MORGAN STANLEY SENIOR FUNDING,
INC.
1585 Broadway
New York, New York
10036
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BARCLAYS CAPITAL
BARCLAYS BANK PLC
200 Park Avenue
New York, New York
10166
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CITIGROUP GLOBAL MARKETS
INC.
390 Greenwich
Street
New York, New York
10013
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August 24, 2009
Warner Chilcott PLC
Unit 19 Ardee Business Park, Hale
Street
Ardee, Co. Louth, Ireland
Attention: Paul Herendeen, Chief
Financial Officer
Project Seabiscuit
Commitment Letter
Ladies and Gentlemen:
You have advised Bank of America,
N.A. (“ Bank of America ”), Banc of America
Bridge LLC (“ Banc of America Bridge ”), Banc of
America Securities LLC (“ BAS ”), Credit Suisse
(acting through such of its branches or affiliates as it may
designate, “ CS ”), Credit Suisse Securities
(USA) LLC (“ CS Securities ”), JPMorgan Chase
Bank, N.A. (“ JPMCB ”), J.P. Morgan Securities
Inc. (“ JPMSI ”), Morgan Stanley Senior Funding,
Inc. (“ MSSF ”), Barclays Bank PLC (“
Barclays Bank ”), Barclays Capital, the investment
banking division of Barclays Bank PLC, (“ Barclays
Capital ”), Citi (as defined below) (“ Citi
”) and Citigroup Global Markets Inc. (“ CGMI
”) (collectively, the “ Commitment Parties
”, “ us ” or “ we ”)
that you intend to acquire, through one or more of your
wholly-owned subsidiaries, the Pharmaceuticals Business (as defined
in Exhibit A) and consummate the other transactions described on
Exhibit A hereto. Capitalized terms used but not defined herein are
used with the meanings assigned to them on the Exhibits attached
hereto (such Exhibits, together with this letter, collectively, the
“ Commitment Letter ”). For purposes of the
Commitment Letter, “Citi” shall mean Citigroup Global
Markets Inc., Citibank, N.A., Citicorp USA, Inc. Citicorp North
America, Inc. and/or any of their affiliates as Citi shall
determine to be appropriate to provide the services contemplated
herein.
In connection with the Transactions,
(a) each of Bank of America, CS, JPMCB, MSSF, Barclays Bank
and Citi (collectively, the “ Initial Senior Lenders
”) is pleased to advise you of its several, but not joint,
commitment to provide 16 2 / 3
% of the entire aggregate principal
amount of the Senior Secured Facilities and (b) each of Banc
of America Bridge, CS, JPMCB, MSSF, Barclays Bank and Citi
(collectively, the “ Initial Bridge Lenders ”
and together with the Initial Senior Lenders, the “
Initial Lenders ”) is pleased to advise you of its
several, but not joint, commitment to provide 16
2
/ 3 % of the
entire aggregate principal amount of the Bridge Facility, in each
case upon the terms and conditions set forth in this letter and the
Summaries of Terms and Conditions, as applicable, attached as
Exhibits B, C and D hereto (collectively, the “ Term
Sheets ”).
It is agreed that:
(a) (i) BAS and CS Securities
will act as co-lead arrangers and joint bookrunners (acting
collectively in such capacities, the “ Senior Lead
Arrangers ”) and Barclays Capital, CGMI, JPMSI and MSSF
will act as joint bookrunners for the Senior Secured Facilities and
(ii) CS will act as sole administrative agent for the Senior
Secured Facilities; and
(b) (i) JPMSI and MSSF will act
as co-lead arrangers and joint bookrunners (acting collectively in
such capacities, the “ Bridge Lead Arrangers ”
and, together with the Senior Lead Arrangers, the “ Lead
Arrangers ”) and Barclays Capital, BAS, CGMI and CS
Securities will act as joint bookrunners for the Bridge Facility
and (ii) JPMCB will act as sole administrative agent for the
Bridge Facility.
It is further agreed that
(A) BAS will have “left” placement and CS
Securities will have second placement and the other Initial Senior
Lenders (or their affiliates, as applicable) will be listed in
alphabetical order in any marketing materials or other
documentation used in connection with the Senior Secured Facilities
and (B) JPMSI will have “left” placement and MSSF
will have second placement and the other Initial Bridge Lenders (or
their affiliates, as applicable) will be listed in alphabetical
order in any marketing material or other documentation used in
connection with the Bridge Facility. You agree that no other
agents, co-agents or arrangers will be appointed, no other titles
will be awarded and no compensation (other than that expressly
contemplated by the Term Sheets and Fee Letter referred to below)
will be paid in connection with the Credit Facilities unless you
and we shall so reasonably agree (it being understood and agreed
that no other agents, co-agents, arrangers or bookrunners shall be
entitled to greater economics of the Credit Facilities than any of
the Initial Lenders).
We intend to syndicate the Credit
Facilities to a group of lenders identified by us in consultation
with you and reasonably acceptable to you (together with the
Initial Lenders, the “ Lenders ”).
Notwithstanding any other provision of this Commitment Letter to
the contrary, except with respect to syndication or assignments to
Lenders consented to by you (such consent not to be unreasonably
withheld) (a) no Initial Lender shall be relieved or novated
from its obligations hereunder (including its obligation to fund
the Credit Facilities on the Closing Date) in connection with any
syndication, assignment or participation of the Credit Facilities,
including its commitments in respect thereof, until after the
Closing Date, (b) no assignment or novation shall become
effective with respect to all or any portion of any Initial
Lender’s commitments in respect of the Credit Facilities
until the initial funding of the Credit Facilities (except to the
extent Senior Notes are issued or any other financing is provided
in lieu of the Bridge Facility or a portion thereof) on the Closing
Date, and (c) unless you agree in writing, each
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Initial Lender shall retain exclusive control
over all rights and obligations with respect to its commitments in
respect of the Credit Facilities, including all rights with respect
to consents, modifications, supplements and amendments, until the
Closing Date has occurred. To the extent any such assignment is
made, Parent shall be entitled, prior to the Closing Date at the
Parent’s expense, to replace any assignee that has (or is
controlled by any person or entity that has) been deemed insolvent
or become subject to a bankruptcy, insolvency, receivership,
conservatorship or other similar proceeding, or that refuses to
execute, or materially delays in executing, definitive
documentation agreed with the Commitment Parties, with another
financial institution selected by the Parent in consultation with
the Commitment Parties.
The Commitment Parties hereby agree
that, unless the Commitment Parties shall otherwise agree in
writing, during the period commencing on the date hereof and ending
on the 90th day after the Closing Date (or in the case of the
Senior Secured Facilities only, on such earlier date as a
Successful Syndication (as defined in the Fee Letter) shall have
occurred) each Commitment Party shall be provided with a reasonable
opportunity to participate pro rata, on the basis of each
Commitment Party’s commitment on the date hereof (after
giving effect to any previous Sell Down (as defined below)), in any
sale, assignment, participation, syndication of or other transfer
of any kind whatsoever of loans or the commitment of a Commitment
Party hereunder in each case in respect of each Credit Facility (as
defined in Exhibit A hereto) (each a “ Sell Down
”), other than any such Sell Down by a Commitment Party to an
affiliate of such Commitment Party (other than an affiliate that is
an investment fund (including, without limitation, any proprietary
trading group) organized for the purpose of investing in, trading
or managing debt obligations similar to those contemplated by this
Commitment Letter), provided that such affiliate shall in
connection with such Sell Down agree to be bound by the provisions
of this paragraph. You hereby acknowledge that this paragraph is
for the sole and exclusive benefit of the Commitment Parties and
you shall have no right to enforce the provisions hereof. Each of
the parties hereto agrees that notwithstanding anything to the
contrary in this Commitment Letter, this paragraph shall survive
the Closing Date and any termination of this Commitment Letter
until such time as the provisions of the first sentence hereof
shall cease to be operative in accordance with their
terms.
The Commitment Parties intend to
commence syndication efforts promptly, and until the earlier to
occur of (i) a Successful Syndication (as defined in the Fee
Letter) and (ii) ninety (90) days after the Closing Date,
you agree actively to assist (and using your commercially
reasonable efforts to cause the Pharmaceuticals Business to
actively assist) the Commitment Parties in completing a syndication
satisfactory to the Commitment Parties and you. Such assistance
shall include (A) using commercially reasonable efforts to
ensure that the syndication efforts benefit from your existing
banking relationships and the existing banking relationships of
each of Bain Capital Partners, LLC, CCMP Capital Advisors, LLC,
Thomas H. Lee Partners L.P. and their respective affiliates
(collectively, the “ Sponsors ”),
(B) direct contact between your senior management and advisors
and the proposed Lenders (and using your commercially reasonable
efforts to ensure such contact between senior management of the
Pharmaceuticals Business and the proposed Lenders), (C) your
assistance (and using your commercially reasonable efforts to cause
the Pharmaceuticals Business to assist) in the preparation of one
or more confidential information memoranda and other marketing
materials to be used in connection with the syndication,
(D) the hosting, with the Commitment Parties, of one or more
meetings of prospective Lenders at times and locations to be
mutually agreed (and using your commercially reasonable efforts to
cause the officers of the Pharmaceuticals Business to be available
for such meetings), (E) obtaining (x) corporate/corporate
family ratings for the Borrower and (y) ratings for the Credit
Facilities and the Senior Notes, in each case from each of
Moody’s Investors Service, Inc. (“ Moody’s
”) and Standard & Poor’s Ratings Group
(“ S&P ”) prior to the Closing Date, and
(F) there being no competing offering, placement or
arrangement of any debt securities (other than the Senior Notes or
debt securities issued in lieu of the Senior Notes) or bank
financing (other than the Credit Facilities) by or on behalf of the
Pharmaceuticals Business or Parent and its subsidiaries
(collectively, “ Warner Chilcott ”) (other than,
with respect to the Pharmaceuticals Business, indebtedness
expressly contemplated by the Purchase Agreement) that
could
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reasonably be expected to materially impair the
primary syndication of the Credit Facilities or the offering of the
Senior Notes. If you accept this Commitment Letter with respect to
the Bridge Facility, you agree to use commercially reasonable
efforts to provide to us financial statements and other information
customary for the bond marketing process by October 15, 2009.
Notwithstanding anything to the contrary contained in this
Commitment Letter or the Fee Letter, neither the commencement nor
the completion of the primary syndication of the Credit Facilities
shall constitute a condition precedent to the Closing
Date.
The Commitment Parties, in their
capacity as such, will manage, in consultation with you (and
subject to your consent rights set forth in the second preceding
paragraph), all aspects of the syndication, including decisions as
to the selection of institutions to be approached and when they
will be approached, when the Lenders’ commitments will be
accepted, which Lenders will participate, the allocation of the
commitments among the Lenders and the amount and distribution of
fees among the Lenders. You hereby acknowledge and agree that the
Commitment Parties, in such capacity, will have no responsibility
other than to arrange the syndication as set forth herein and in no
event shall be subject to any fiduciary or other implied duties in
connection with the transactions contemplated hereby. To assist the
Commitment Parties in their syndication efforts, you agree promptly
to prepare and provide to the Commitment Parties (and use
commercially reasonable efforts to cause the Pharmaceuticals
Business to provide to the Commitment Parties) all information with
respect to you and your subsidiaries, the Pharmaceuticals Business
and the Acquisition, including all financial information and
Projections (as defined below), as the Commitment Parties may
reasonably request in connection with the arrangement and
syndication of the Credit Facilities (it being understood that the
Commitment Parties may engage in two or more syndication periods
and you and the Sponsors have agreed to assist the Commitment
Parties as set forth in this paragraph in connection with all such
syndication efforts).
At the request of the Commitment
Parties, you agree to assist in the preparation of a version of the
information package and presentation (the “ Public
Information Package ”) consisting exclusively of
information and documentation with respect to Warner Chilcott, the
Pharmaceuticals Business and the Acquisition that is either
publicly available or not material with respect to you, the
Pharmaceuticals Business, your or their respective affiliates, any
of your or their respective securities and the Acquisition for
purposes of United States federal and state securities laws. It is
understood that in connection with your assistance described above,
authorization letters will be included in any information package
and presentation whereby you authorize the distribution of such
information to prospective Lenders, containing a representation by
you to the Commitment Parties that the Public Information Package
does not include material non-public information about the
Borrower, its affiliates or its securities and exculpating you, the
Sponsors, the Borrower and us with respect to any liability related
to the use of the contents of such Public Information Package or
any related marketing material by the recipients thereof. You
acknowledge and agree that the following documents may be
distributed to potential Lenders wishing to receive only the Public
Information Package (unless you promptly notify us otherwise and
provided that you have been given a reasonable opportunity to
review such documents and comply with U.S. Securities and Exchange
Commission disclosure obligations): (a) drafts and final
definitive documentation with respect to the Credit Facilities;
(b) administrative materials prepared by the Commitment
Parties for prospective Lenders (such as a lender meeting
invitation, allocations and funding and closing memoranda); and
(c) notification of changes in the terms of the Credit
Facilities. You also agree to use commercially reasonable efforts
to identify that portion of any other Information or Projections
(the “ Borrower Materials ”) to be distributed
to “public side” lenders (i.e. lenders that do no wish
to receive material non-public information with respect to Warner
Chilcott or the Pharmaceuticals Business), including by clearly and
conspicuously marking such materials “PUBLIC” which, at
a minimum, shall mean that the word “PUBLIC” shall
appear prominently on the first page thereof. By marking Borrower
Materials “PUBLIC”, you shall be deemed to have
authorized the Commitment Parties and the proposed Lenders to treat
such Borrower Materials as not containing any material
non-public
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information with respect to Warner Chilcott or
the Pharmaceuticals Business or their respective securities for the
purpose of United States federal and state securities laws (it
being understood that you shall not be under any obligation to mark
the Borrower Materials “PUBLIC”).
You hereby represent, warrant and
covenant that (with respect to Information and Projections relating
to the Pharmaceuticals Business, to your knowledge) (a) all
written information, other than the Projections and information of
a general economic or industry specific nature (the “
Information ”), that has been or will be made
available to us by you or any of your representatives in connection
with the transactions contemplated hereby, when taken as a whole,
does not or will not, when furnished, contain any untrue statement
of a material fact or omit to state a material fact necessary in
order to make the statements contained therein not materially
misleading in light of the circumstances under which such
statements are made (giving effect to all supplements thereto) and
(b) the financial projections and other forward-looking
information (the “ Projections ”) that have been
or will be made available to us by you or any of your
representatives in connection with the transactions contemplated
hereby have been or will be prepared in good faith based upon
assumptions believed by you to be reasonable at the time furnished
(it being recognized by the Commitment Parties that such
Projections are not to be viewed as facts and that actual results
during the period or periods covered by any such Projections may
differ from the projected results, and such differences may be
material). You agree that if, at any time prior to the Closing
Date, you become aware that any of the representations in the
preceding sentence is incorrect, in any material respect, then you
will (or, with respect to the Information and Projections relating
to the Pharmaceuticals Business, will use commercially reasonable
efforts to) promptly supplement the Information and the Projections
so that (with respect to Information and Projections relating to
the Pharmaceuticals Business, to your knowledge) such
representations are correct, in all material respects, under those
circumstances. You understand that in arranging and syndicating the
Credit Facilities we may use and rely on the Information and
Projections without independent verification thereof.
As consideration for the commitments
and agreements of the Commitment Parties hereunder, you agree to
cause to be paid the nonrefundable fees described in the Fee Letter
dated the date hereof and delivered herewith (together with the Fee
Credit Letter dated the date hereof and delivered herewith, the
“ Fee Letter ”) on the terms and subject to the
conditions set forth therein.
Each Commitment Party’s
commitments and agreements hereunder are subject to the conditions
set forth on Exhibit D and in Exhibit B under the heading
“CERTAIN CONDITIONS – Initial Conditions” and
Exhibit C under the heading “CERTAIN CONDITIONS –
Conditions Precedent” (as applicable). Notwithstanding
anything in this Commitment Letter, the Fee Letter, the Credit
Facilities Documentation (as defined in Exhibit D) or any other
letter agreement or other undertaking concerning the financing of
the transactions contemplated hereby to the contrary, (a) the
only representations relating to Warner Chilcott, the
Pharmaceuticals Business and their respective businesses, the
accuracy of which shall be a condition to availability of the
Credit Facilities on the Closing Date, shall be (i) such of
the representations made by the Seller in the Purchase Agreement as
are material to the interests of the Lenders, but only to the
extent that you have (or your subsidiary has) the right to
terminate your (or its) obligations under the Purchase Agreement as
a result of a breach of such representations in the Purchase
Agreement (the “ Purchase Agreement Representations
”) and (ii) the Specified Representations (as defined
below), and (b) the terms of the Credit Facilities
Documentation shall be in a form such that they do not impair
availability of the Credit Facilities on the Closing Date if the
conditions set forth in this
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Commitment Letter are satisfied (it being
understood that, to the extent any guarantee or collateral
(including the creation or perfection of any security interest)
referred to in the Term Sheets is not or cannot be provided on the
Closing Date (other than (x) any guarantee or pledge by a
person that is organized in the United States (including Puerto
Rico) or by a borrower under, or guarantor of, the Existing Credit
Facility or the existing senior subordinated notes, and
(y) the grant and perfection of security interests (i) in
material assets located in any state of the United States, Puerto
Rico or the District of Columbia, (ii) in other assets therein
with respect to which a lien may be perfected solely by the filing
of a financing statement under the Uniform Commercial Code (“
UCC ”) or (iii) in capital stock with respect to
which a lien may be perfected by the delivery of a stock
certificate) after your use of commercially reasonable efforts to
do so or without undue burden or expense, then the provision of any
such guarantee and/or collateral shall not constitute a condition
precedent to the availability of the Credit Facilities on the
Closing Date, but may instead be provided after the Closing Date
pursuant to arrangements to be mutually agreed). For purposes
hereof, “ Specified Representations ” means the
representations and warranties referred to in the Term Sheets
relating to corporate existence, power and authority, due
authorization, execution and delivery and the enforceability of the
Credit Facilities Documentation, in each case as they relate to the
entering into and performance of the Credit Facilities
Documentation, effectiveness, validity and perfection of first
priority liens under the security documents (subject to the
limitations set forth in the preceding sentence), solvency,
financial statements, litigation (but only to the extent the breach
of such representation would result in a Closing Date Material
Adverse Effect (as defined in Exhibit D hereto)), Federal Reserve
margin regulations, the Investment Company Act and status of the
Credit Facilities and the guaranties thereof as senior debt.
Notwithstanding anything in this Commitment Letter, the Fee Letter,
the Credit Facilities Documentation or any other letter agreement
or other undertaking concerning the financing of the transactions
contemplated hereby to the contrary, the only conditions to
availability of the Credit Facilities on the Closing Date are set
forth in each of the relevant Term Sheets under the heading
“CERTAIN CONDITIONS–Initial Conditions” (in the
case of Exhibit B) or “CERTAIN CONDITIONS” (in the case
of Exhibit C) and in Exhibit D. This paragraph, and the provisions
herein, shall be referred to as the “ Certain Funds
Provision ”.
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7.
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Indemnification and Expenses
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You agree (a) to indemnify and
hold harmless the Commitment Parties, their affiliates and their
respective directors, officers, employees, advisors, agents and
other representatives (each, an “ indemnified person
”) from and against any and all losses, claims, damages and
liabilities to which any such indemnified person may become subject
arising out of or in connection with this Commitment Letter, the
Fee Letter, the Credit Facilities, the use of the proceeds thereof
and the Acquisition and the Transaction or any claim, litigation,
investigation or proceeding (a “ Proceeding ”)
relating to any of the foregoing, regardless of whether any
indemnified person is a party thereto, whether or not such
Proceedings are brought by you, your equity holders, affiliates,
creditors or any other person, and to reimburse each indemnified
person upon demand for any reasonable legal or other out-of-pocket
expenses incurred in connection with investigating or defending any
of the foregoing by one counsel to such indemnified persons taken
as a whole and, in the case of a conflict of interest, one
additional counsel to the affected indemnified persons taken as a
whole (and, if necessary, of one local counsel in any
jurisdiction), provided that the foregoing indemnity will
not, as to any indemnified person, apply to losses, claims,
damages, liabilities or related expenses to the extent they arise
from the willful misconduct or gross negligence of, or material
breach of this Commitment Letter or the Fee Letter by, such
indemnified person and (b) regardless of whether the Closing
Date occurs, to reimburse each Commitment Party and its affiliates
for all reasonable out-of-pocket expenses that have been invoiced
in a reasonable period of time prior to the Closing Date or
following termination or expiration of the commitments hereunder
(including due diligence expenses, syndication expenses, travel
expenses, and reasonable fees, charges and disbursements of one
counsel per Credit Facility to the Commitment Parties (and, if
necessary, of one local counsel and one regulatory counsel in any
jurisdiction)) incurred in
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connection with each of the Credit Facilities
and any related documentation (including this Commitment Letter and
the definitive financing documentation) or the administration,
amendment, modification or waiver thereof. It is further agreed
that each Commitment Party shall only have liability to you (as
opposed to any other person) and that each Commitment Party shall
be liable solely in respect of its own commitment to the Credit
Facilities on a several, and not joint, basis with any other
Lender. No indemnified person shall be liable for any damages
arising from the use by others of Information or other materials
obtained through electronic, telecommunications or other
information transmission systems, except to the extent any such
damages arise from the gross negligence or willful misconduct of,
or material breach of this Commitment Letter or the Fee Letter by,
such indemnified person (or any of its related parties). None of
the indemnified persons or you, the Sponsor, the Pharmaceuticals
Business or any of your or their respective affiliates or the
respective directors, officers, employees, advisors, and agents of
the foregoing shall be liable for any indirect, special, punitive
or consequential damages in connection with this Commitment Letter,
the Fee Letter, the Credit Facilities or the transactions
contemplated hereby. You shall not be liable for any settlement of
any Proceeding effected without your consent (which consent shall
not be unreasonably withheld or delayed), but if settled with your
written consent, or if there is a judgment against an indemnified
person in any such Proceeding, you agree to indemnify and hold
harmless each indemnified person in the manner set forth above. You
shall not, without the prior written consent of an indemnified
person (which consent shall not be unreasonably withheld), effect
any settlement of any pending or threatened Proceeding against an
indemnified person in respect of which indemnity could have been
sought hereunder by such indemnified person unless (i) such
settlement includes an unconditional release of such indemnified
person from all liability or claims that are the subject matter of
such Proceeding and (ii) does not include any statement as to
any admission.
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8.
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Sharing of
Information, Absence of Fiduciary Relationship, Affiliate
Activities
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You acknowledge that each Commitment
Party (or its affiliates) is a full service securities firm and
such person may from time to time effect transactions, for its own
or its affiliates’ account or the account of customers, and
hold positions in loans, securities or options on loans or
securities of you, Pharmaceuticals Business or their respective
affiliates and of other companies that may be the subject of the
transactions contemplated by this Commitment Letter. In addition,
none of the Commitment Parties and none of their respective
affiliates will use confidential information obtained from you or
your affiliates or on your or their behalf by virtue of the
transactions contemplated hereby in connection with the performance
by the Commitment Parties and their respective affiliates of
services for other companies or other persons and none of the
Commitment Parties or their respective affiliates will furnish any
such information to any of their other customers. You also
acknowledge that the Commitment Parties and their respective
affiliates have no obligation to use in connection with the
transactions contemplated hereby, or to furnish to you,
confidential information obtained from other companies or other
persons.
You further acknowledge and agree
that (a) no fiduciary, advisory or agency relationship between
you and the Commitment Parties is intended to be or has been
created in respect of any of the transactions contemplated by this
Commitment Letter, irrespective of whether the Commitment Parties
have advised or are advising you on other matters, (b) the
Commitment Parties, on the one hand, and you, on the other hand,
have an arm’s length business relationship that does not
directly or indirectly give rise to, nor do you rely on, any
fiduciary duty on the part of the Commitment Parties, (c) you
are capable of evaluating and understanding, and you understand and
accept, the terms, risks and conditions of the transactions
contemplated by this Commitment Letter, (d) you have been
advised that the Commitment Parties are engaged in a broad range of
transactions that may involve interests that differ from your
interests and that the Commitment Parties have no obligation to
disclose such interests and transactions to you by virtue of any
fiduciary, advisory or agency relationship, (e) you have
consulted your own legal, accounting, regulatory and tax advisors
to the extent you have deemed appropriate; (f) each Commitment
Party has been, is, and will be acting solely as a principal and,
except as otherwise expressly agreed in writing by
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the relevant parties, has not been, is not, and
will not be acting as an advisor, agent or fiduciary for you, any
of your affiliates or any other person or entity and (g) none
of the Commitment Parties has any obligation to you or your
affiliates with respect to the transactions contemplated hereby
except those obligations expressly set forth herein or in any other
express writing executed and delivered by such Commitment Party and
the Borrower.
This Commitment Letter is delivered
to you on the understanding that neither this Commitment Letter nor
the Fee Letter nor any of their terms or substance shall be
disclosed, directly or indirectly, to any other person except
(a) you and your officers, directors, employees, affiliates,
members, partners, stockholders, attorneys, accountants, agents and
advisors and, on a confidential basis, those of the Seller and the
Seller itself (provided that any disclosure of the Fee Letter or
its terms or substance to the Seller or its officers, directors,
employees, attorneys, accountants, agents or advisors shall be
redacted in respect of the amount of fees set forth in numbered
paragraphs 1 through 6 thereof, unless the Commitment Parties
otherwise agree), (b) in any legal, judicial or administrative
proceeding or as otherwise required by law or regulation or as
requested by a governmental authority (in which case you agree, to
the extent permitted by law, to inform us promptly in advance
thereof), (c) upon notice to the Commitment Parties, this
Commitment Letter and the existence and contents hereof (but not
the Fee Letter or the contents thereof other than the existence
thereof and the contents thereof as part of projections, pro forma
information and a generic disclosure of aggregate sources and uses
to the extent customary in marketing materials and other
disclosures) may be disclosed in any prospectus or offering
memoranda relating to the Senior Notes, in any syndication or other
marketing material in connection with the Credit Facilities or in
connection with any public filing requirement, and (d) the
Term Sheets may be disclosed to potential Lenders and to any rating
agency in connection with the Acquisition; provided that the
foregoing restrictions shall cease to apply in respect to the
existence and contents of this Commitment Letter (but not in
respect of the Fee Letter and its terms and substance) after this
Commitment Letter has been accepted by you.
The Commitment Parties shall use all
nonpublic information received by them in connection with the
Acquisition and the related transactions solely for the purposes of
providing the services that are the subject of this Commitment
Letter and shall treat confidentially all such information;
provided, however, that nothing herein shall prevent any Commitment
Party from disclosing any such information (a) to rating
agencies, (b) to any Lenders or participants or prospective
Lenders or participants, (c) in any legal, judicial,
administrative proceeding or other compulsory process or otherwise
as required by applicable law or regulations (in which case such
Commitment Party shall promptly notify you, in advance, to the
extent permitted by law), (d) upon the request or demand of
any regulatory authority having jurisdiction over such Commitment
Party or its affiliates (in which case such Commitment Party shall,
except with respect to any audit or examination conducted by bank
accountants or any governmental bank regulatory authority
exercising examination or regulatory authority, promptly notify
you, in advance, to the extent lawfully permitted to do so),
(e) to the employees, legal counsel, independent auditors,
professionals and other experts or agents of such Commitment Party
(collectively, “ Representatives ”) who are
informed of the confidential nature of such information and are or
have been advised of their obligation to keep information of this
type confidential, (f) to any of its respective affiliates
(provided that any such affiliate is advised of its obligation to
retain such information as confidential, and such Commitment Party
shall be responsible for its affiliates’ compliance with this
paragraph) solely in connection with the Acquisition and the
related transactions, (g) to the extent any such information
becomes publicly available other than by reason of disclosure by
such Commitment Party, its affiliates or Representatives in breach
of this Commitment Letter and (h) for purposes of establishing
a “ due diligence ” defense; provided that the
disclosure of any such information to any Lenders or prospective
Lenders or participants or prospective participants referred to
above shall be made subject to the acknowledgment and acceptance by
such
8
Lender or prospective Lender or participant or
prospective participant that such information is being disseminated
on a confidential basis (on substantially the terms set forth in
this paragraph or as is otherwise reasonably acceptable to you and
each Commitment Party, including, without limitation, as agreed in
any confidential information memorandum or other marketing
materials) in accordance with the standard syndication processes of
such Commitment Party or customary market standards for
dissemination of such type of information. The provisions of this
paragraph shall automatically terminate two years following the
date of this Commitment Letter.
This Commitment Letter shall not be
assignable by you (except to one or more of your subsidiaries
immediately prior to or otherwise substantially concurrently with
the consummation of the Acquisition) without the prior written
consent of each Commitment Party (and any purported assignment
without such consent shall be null and void), is intended to be
solely for the benefit of the parties hereto and the indemnified
persons and is not intended to and does not confer any benefits
upon, or create any rights in favor of, any person other than the
parties hereto and the indemnified persons to the extent expressly
set forth herein. Subject to Section 3 above, the Commitment
Parties reserve the right to employ the services of their
affiliates in providing services contemplated hereby and to
allocate, in whole or in part, to their affiliates certain fees
payable to the Commitment Parties in such manner as the Commitment
Parties and their affiliates may agree in their sole discretion.
This Commitment Letter may not be amended or waived except by an
instrument in writing signed by you and each Commitment Party. This
Commitment Letter may be executed in any number of counterparts,
each of which shall be an original, and all of which, when taken
together, shall constitute one agreement. Delivery of an executed
signature page of this Commitment Letter by facsimile or electronic
transmission (e.g., “pdf” or “tif”) shall
be effective as delivery of a manually executed counterpart hereof.
This Commitment Letter and the Fee Letter are the only agreements
that have been entered into among us and you with respect to the
Credit Facilities and set forth the entire understanding of the
parties with respect thereto. This Commitment Letter shall be
governed by, and construed and interpreted in accordance with, the
laws of the State of New York.
You and we hereby irrevocably and
unconditionally submit to the exclusive jurisdiction of any state
or Federal court sitting in the Borough of Manhattan in the City of
New York over any suit, action or proceeding arising out of or
relating to the Transactions or the other transactions contemplated
hereby, this Commitment Letter or the Fee Letter or the performance
of services hereunder or thereunder. You and we agree that service
of any process, summons, notice or document by registered mail
addressed to you or us shall be effective service of process for
any suit, action or proceeding brought in any such court. You and
we hereby irrevocably and unconditionally waive any objection to
the laying of venue of any such suit, action or proceeding brought
in any such court and any claim that any such suit, action or
proceeding has been brought in any inconvenient forum. You and we
hereby irrevocably agree to waive trial by jury in any suit,
action, proceeding, claim or counterclaim brought by or on behalf
of any party related to or arising out of the Transactions, this
Commitment Letter or the Fee Letter or the performance of services
hereunder or thereunder.
Each of the Commitment Parties
hereby notifies you that, pursuant to the requirements of the USA
PATRIOT Act, Title III of Pub. L. 107-56 (signed into law on
October 26, 2001) (the “ PATRIOT Act ”), it
is required to obtain, verify and record information that
identifies each Borrower and each Guarantor, which information
includes names, addresses, tax identification numbers and other
information that will allow such Lender to identify each Borrower
and each Guarantor in accordance with the PATRIOT Act. This notice
is given in accordance with the requirements of the PATRIOT Act and
is effective for the Commitment Parties and each Lender.
9
The indemnification, fee, expense,
jurisdiction, syndication and confidentiality provisions contained
herein and in the Fee Letter shall remain in full force and effect
regardless of whether definitive financing documentation shall be
executed and delivered and notwithstanding the termination of this
Commitment Letter or the commitments hereunder; provided that your
obligations under this Commitment Letter (other than your
obligations with respect to (a) assistance to be provided in
connection with the syndication thereof and
(b) confidentiality of the Fee Letter and the contents
thereof) shall automatically terminate and be superseded by the
provisions of the Credit Facilities Documentation upon the initial
funding thereunder, and you shall automatically be released from
all liability in connection therewith at such time. You may
terminate the Initial Lenders’ commitments hereunder at any
time subject to the provisions of the preceding
sentence.
Section headings used herein are for
convenience of reference only and are not to affect the
construction of, or to be taken into consideration in interpreting,
this Commitment Letter. This Commitment Letter may be executed in
any number of counterparts, each of which when executed will be an
original, and all of which, when taken together, will constitute
one agreement. Delivery of an executed counterpart of the signature
page of this Commitment Letter by facsimile transmission or
electronic transmission (in pdf or similar format) will be as
effective as delivery of a manually executed counterpart
hereof.
If the foregoing correctly sets
forth our agreement, please indicate your acceptance of the terms
of this Commitment Letter and the Fee Letter by returning to us
executed counterparts of this Commitment Letter and of the Fee
Letter not later than 5:00 p.m., New York City time, on
August 28, 2009. This offer will automatically expire at such
time if we have not received such executed counterparts in
accordance with the preceding sentence. In the event that the
initial borrowing under the Credit Facilities does not occur on or
before the Expiration Date, then this Commitment Letter and the
commitments hereunder shall automatically terminate unless we
shall, in our discretion, agree to an extension. “
Expiration Date ” means the earliest of
(i) December 31, 2009, (ii) the closing of the
Acquisition (x) in the case of the Senior Secured Facilities,
without the use of the Senior Secured Facilities or (y) in the
case of the Bridge Facility, without the use of the Bridge Facility
and (iii) the termination prior to closing of the Acquisition
of the Purchase Agreement.
BY SIGNING THIS COMMITMENT LETTER,
EACH OF THE PARTIES HERETO HEREBY ACKNOWLEDGES AND AGREES THAT
(A) EACH INITIAL SENIOR LENDER IS OFFERING TO PROVIDE THE
SENIOR SECURED FACILITIES SEPARATE AND APART FROM EACH INITIAL
BRIDGE LENDER’S OFFER TO PROVIDE THE BRIDGE FACILITY AND
(B) EACH INITIAL BRIDGE LENDER IS OFFERING TO PROVIDE THE
BRIDGE FACILITY SEPARATE AND APART FROM THE OFFER BY EACH INITIAL
SENIOR LENDER TO PROVIDE THE SENIOR SECURED FACILITIES. YOU MAY, AT
YOUR OPTION, ELECT TO ACCEPT THIS COMMITMENT LETTER (AND THE
APPLICABLE PROVISIONS OF THE FEE LETTER) WITH RESPECT TO EITHER THE
SENIOR SECURED FACILITIES OR THE BRIDGE FACILITY OR
BOTH.
10
We are pleased to have been given
the opportunity to assist you in connection with this important
financing.
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Very truly
yours,
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BANK OF
AMERICA, N.A.
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By:
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Name:
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Adam
Cady
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Title:
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Managing
Director
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BANC OF AMERICA BRIDGE LLC
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By:
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Name:
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Adam
Cady
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Title:
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Managing
Director
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BANC OF AMERICA
SECURITIES LLC
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By:
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Name:
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Adam
Cady
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Title:
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Managing
Director
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Commitment Letter Signature
Page
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CREDIT SUISSE,
CAYMAN ISLANDS BRANCH
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By:
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Name:
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Judith E.
Smith
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Title:
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Director
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By:
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Name:
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Karim
Blasetti
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Title:
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Vice
President
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CREDIT SUISSE
SECURITIES (USA) LLC
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By:
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Name:
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Sovonna
Day-Goins
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Title:
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Managing
Director
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Commitment Letter Signature
Page
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JPMORGAN CHASE
BANK, N.A.
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By:
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Name:
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Mary E.
Gherty
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Title:
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Managing
Director
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J.P. MORGAN
SECURITIES INC.
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By:
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Name:
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Mark H.
Radin
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Title:
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Executive
Director
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Commitment Letter Signature
Page
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MORGAN STANLEY
SENIOR FUNDING, INC.
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By:
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Name:
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Peter
Zippelius
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Title:
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Authorized
Signatory
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Commitment Letter Signature
Page
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BARCLAYS BANK
PLC
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By:
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Name:
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John A.
Skrobe
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Title:
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Managing
Director
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Commitment Letter Signature
Page
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CITIGROUP
GLOBAL MARKETS INC.
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By:
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Name:
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Stuart G.
Dickson
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Title:
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Director
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Commitment Letter Signature
Page
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The provisions
of this Commitment Letter with respect to the Senior Secured
Facilities are accepted and agreed to as of the date first written
above:
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WARNER CHILCOTT
PLC
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By:
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