Exhibit 10.1
Execution Version
TAX RECEIVABLE PREPAYMENT
AGREEMENT
dated June 26,
2009
between
Wright Express
Corporation
and
Realogy
Corporation
TABLE OF CONTENTS
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Page
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ARTICLE I THE PREPAYMENT
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1
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1.1
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Prepayment
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1
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1.2
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The
Closing.
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2
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ARTICLE II REPRESENTATIONS AND WARRANTIES OF
REALOGY
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2
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2.1
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Organization,
Qualification and Corporate Power
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2
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2.2
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Authorization
of Transaction
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2
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2.3
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Noncontravention
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3
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2.4
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Ownership of
Rights
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3
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2.5
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Contracts
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3
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2.6
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Litigation
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4
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2.7
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Financial
Statements.
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4
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2.8
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No Additional
Representations
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4
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2.9
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Brokers’
Fees
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4
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ARTICLE III REPRESENTATIONS AND WARRANTIES OF
WEX
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4
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3.1
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Organization
and Corporate Power
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4
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3.2
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Authorization
of the Transaction
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5
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3.3
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Noncontravention
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5
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3.4
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[Reserved]
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5
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3.5
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No Additional
Representations
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5
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3.6
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Brokers’
Fees
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5
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ARTICLE IV CERTAIN COVENANTS
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6
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4.1
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Confidentiality
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6
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ARTICLE V [RESERVED]
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6
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ARTICLE VI POST-CLOSING COVENANTS
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6
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6.1
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Press Releases
and Announcements
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6
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6.2
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Private Letter
Ruling Request
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6
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6.3
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IRS
Position
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6
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6.4
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Access to
Information
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6
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ARTICLE VII INDEMNIFICATION
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7
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7.1
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Indemnification
by Realogy
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7
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7.2
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Indemnification
by WEX
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8
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7.3
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Indemnification
Claims.
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9
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7.4
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Survival of
Representations and Warranties
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11
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7.5
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Limitations.
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11
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7.6
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[Reserved]
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11
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7.7
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[Reserved]
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11
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7.8
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Insurance
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11
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- i -
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7.9
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Exclusive
Remedy
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12
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7.10
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Treatment of
Payments
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12
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ARTICLE VIII [RESERVED]
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12
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ARTICLE IX DEFINITIONS
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12
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ARTICLE X MISCELLANEOUS
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15
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10.1
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No Third Party
Beneficiaries
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15
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10.2
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Entire
Agreement
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15
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10.3
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Succession and
Assignment
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15
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10.4
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Counterparts
and Facsimile Signature
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15
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10.5
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Headings
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15
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10.6
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Notices
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15
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10.7
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Governing
Law
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16
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10.8
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Amendments and
Waivers
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16
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10.9
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Expenses
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16
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10.10
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Submission to
Jurisdiction
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16
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10.11
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Specific
Performance
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17
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10.12
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Construction.
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17
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Schedules
Disclosure
Schedule—None
- ii -
TAX RECEIVABLE PREPAYMENT
AGREEMENT
This Tax Receivable Prepayment
Agreement is entered into as of June 26, 2009 by and between
Wright Express Corporation, a Delaware corporation
(“WEX”) and Realogy Corporation, a Delaware corporation
(“Realogy”).
WHEREAS pursuant to the Separation
and Distribution Agreement dated as of July 27, 2006, by and
among Avis Budget Group, Inc. (f/k/a Cendant Corporation)
(“ABG”), Realogy, Wyndham Worldwide Corporation
(“Wyndham”) and Travelport Inc. (the “Separation
Agreement”), and as ratified pursuant to the ABG Agreement
(as defined below), Realogy has acquired from ABG the right to
receive 62.5% of the payments to ABG under the Tax Receivable
Agreement, dated February 22, 2005, among WEX, Cendant
Corporation, and Cendant Mobility Services Corporation (the
“TRA”) and has assumed 62.5% of the liabilities and
obligations of ABG under the TRA;
WHEREAS this Agreement contemplates
a transaction in which WEX will prepay to Realogy contingent
obligations to Realogy under the TRA, as specified in the
Agreement, and Realogy will accept prepayment for such contingent
rights under the TRA and will release WEX from obligations
thereunder, as specified in this Agreement;
WHEREAS the parties to this
Agreement intend to treat all payments by WEX hereunder as part of
the purchase price (and interest thereon under the applicable
provisions of the Code) for the assets transferred by ABG to WEX
upon its conversion into a Delaware corporation on
February 16, 2005;
WHEREAS contemporaneously with the
execution of this Agreement, Apollo Investment Fund VI, L.P.,
Apollo Overseas Partners VI, L.P., Apollo Overseas Partners
(Delaware) VI, L.P., Apollo Overseas Partners (Delaware892) VI,
L.P. and Apollo Overseas Partners (Germany) VI, L.P., have entered
into a guarantee agreement (the “Guarantee
Agreement”);
NOW, THEREFORE, in consideration of
the premises, representations, warranties and covenants herein
contained, the Parties agree as follows:
Capitalized terms used in this
Agreement shall have the meanings ascribed to them in Article
IX.
ARTICLE I
THE PREPAYMENT
1.1 Prepayment . Upon and
subject to the terms and conditions of this Agreement, WEX shall
make the payment set forth in Section 1.2 below to Realogy, as
prepayment in full of its remaining contingent obligations to
Realogy under Article III of the TRA (the
“Prepayment”). Except as specifically set forth in
Article VII of this Agreement, from and after the Closing, WEX
shall have no further obligations under the TRA to ABG, Realogy or
any other person claiming through ABG or Realogy on account of
Realogy’s interest in the TRA (including under Articles III
and VIII thereof), and Realogy hereby releases, remises and forever
discharges WEX, its affiliates, shareholders and employees from any
such obligations, effective as of the
[Signature page to Tax Receivable
Prepayment Agreement]
Closing. Except as specifically set forth in
Article VII of this Agreement, from and after the Closing, Realogy
shall have no further obligations under the TRA (including Articles
III and VIII thereof) to WEX, or any other person claiming on
account of WEX’s interest in the TRA, and WEX hereby
releases, remises and forever discharges Realogy, its affiliates,
shareholders, and employees from any such obligations, effective as
of the Closing.
1.2 The Closing .
(a) The Closing shall take place by
electronic exchange of documents commencing at 9:00 a.m. local
time on the Closing Date. All transactions at the Closing shall be
deemed to take place simultaneously, and no transaction shall be
deemed to have been completed and no documents or certificates
shall be deemed to have been delivered until all other transactions
are completed and all other documents and certificates are
delivered.
(b) At the Closing:
(i) WEX shall make a payment of the
Aggregate Prepayment Amount less the Expenses (other than the PLR
Fees, with respect to which Realogy has put in place a letter of
credit in the amount of $250,000 with WEX as the beneficiary
thereunder) by wire transfer to an account designated by
Realogy;
(ii) Realogy shall have provided
evidence satisfactory to WEX of the release of all Security
Interests in its rights, and in the rights of ABG, if any, in the
TRA being prepaid hereunder; and
(iii) WEX and Realogy shall execute
and deliver to each other a cross-receipt evidencing the
transactions referred to above.
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF
REALOGY
Realogy represents and warrants to
WEX that, except as set forth in the Disclosure Schedule, the
statements contained in this Article II are true and correct
as of the date of this Agreement. The Disclosure Schedule shall be
arranged in sections and subsections corresponding to the numbered
and lettered sections and subsections contained in this Article II.
The disclosures in any section or subsection of the Disclosure
Schedule shall qualify the corresponding section or subsection in
this Article II, except that it shall also qualify any other
section where such disclosure is reasonably apparent.
2.1 Organization, Qualification
and Corporate Power . Realogy is a corporation duly organized,
validly existing and in good standing under the laws of the State
of Delaware. Realogy has all requisite corporate power and
authority to carry on the businesses in which it is engaged and to
own and use the properties owned and used by it in all material
respects.
2.2 Authorization of
Transaction . Realogy has all requisite corporate power and
authority to execute and deliver this Agreement and the ABG
Agreement and to perform its obligations hereunder and thereunder.
The execution and delivery by Realogy of this Agreement
- 2 -
and the ABG Agreement and the performance by
Realogy of this Agreement and the ABG Agreement and the
consummation by Realogy of the transactions contemplated hereby and
thereby have been duly and validly authorized by all necessary
corporate action on the part of Realogy. This Agreement and the ABG
Agreement have been duly and validly executed and delivered by
Realogy and such agreements, together with the TRA and the
Separation Agreement, constitute valid and binding obligations of
Realogy, enforceable against Realogy in accordance with their
terms, except as such enforcement may be limited by general
equitable principles or by applicable bankruptcy, insolvency,
fraudulent transfer, moratorium, or similar laws, legal
requirements and judicial decisions from time to time in effect
which affect creditors’ rights generally.
2.3 Noncontravention .
Neither the execution and delivery by Realogy of this Agreement or
the ABG Agreement, nor the consummation by Realogy of the
transactions contemplated hereby or thereby, will (a) conflict
with or violate any provision of the Certificate of Incorporation
or by-laws of Realogy, (b) require on the part of Realogy any
notice to or filing with, or any permit, authorization, consent or
approval of, any Governmental Entity, (c) conflict with,
result in a breach of, constitute (with or without due notice or
lapse of time or both) a default under, result in the acceleration
of obligations under, create in any party the right to terminate,
modify or cancel, or require any notice, consent or waiver under,
any contract or instrument to which Realogy is a party or by which
Realogy is bound or to which any of its assets is subject, except
for (i) any conflict, breach, default, acceleration,
termination, modification or cancellation which would not be
material or which would not materially adversely affect the
consummation or enforceability of the transactions contemplated
hereby or thereby or (ii) any notice, consent or waiver the
absence of which would not adversely affect the consummation or
enforceability of the transactions contemplated hereby or thereby,
or (d) violate any order, writ, injunction, decree, statute,
rule or regulation applicable to Realogy or any of its properties
or assets.
2.4 Ownership of Rights .
Realogy has the sole and exclusive rights to receive the payments
under the TRA assigned or purported to be assigned to Realogy
pursuant to the ABG Agreement and the Separation Agreement, and to
exercise all of the rights assigned or purported to be assigned to
Realogy pursuant to the ABG Agreement and the provisions of the
Separation Agreement that relate to the matters contained in the
ABG Agreement, and such rights are free and clear of all Security
Interests other than such Security Interests as shall have been
released on or before Closing.
2.5 Contracts . Realogy has
delivered to WEX a complete and accurate copy of the Separation
Agreement and any other agreements to which Realogy is a party or
of which it has knowledge (including written summaries of any oral
agreements) adversely affecting the rights of WEX under this
Agreement. The provisions of the Separation Agreement that relate
to the matters contained in the ABG Agreement are legal, valid,
binding on and enforceable against Realogy and in full force and
effect to the extent not modified by the ABG Agreement and Realogy
is not in material breach or in material violation of, or material
default under, any such provision, and no event has occurred, is
pending or is threatened, which, after the giving of notice, with
lapse of time, or otherwise, would constitute a breach or default
by Realogy or any other party under any such provision of the
Separation Agreement in a manner adverse to WEX.
- 3 -
2.6 Litigation . There is no
Legal Proceeding which is pending or has been threatened in
writing, or judgment, order or decree outstanding, against or
otherwise naming Realogy which in any manner challenges or seeks,
or would if commenced challenge or seek, to prevent, enjoin, alter
or delay the transactions contemplated by this Agreement. To
Realogy’s knowledge, there is no Legal Proceeding which is
pending or has been threatened in writing, or judgment, order or
decree outstanding, against ABG which in any manner challenges or
seeks or would if commenced challenge or seek to prevent, enjoin,
alter or delay the transactions contemplated by this
Agreement.
2.7 Financial Statements
.
(a) Realogy has filed all
registration statements, forms, reports and other documents
required to be filed by Realogy with the United States Securities
and Exchange Commission (the “SEC”) since
January 1, 2008. All such registration statements, forms,
reports and other documents are referred to herein as the
“Realogy SEC Reports.”
(b) The consolidated financial
statements (including, in each case, any related notes and
schedules) contained in the 2008 Form 10-K and 2009 Form 10-Q for
the first quarter of 2009 at the time filed (i) were prepared
in accordance with United States generally accepted accounting
principles (“GAAP”) applied on a consistent basis
throughout the periods involved (except as may be indicated in the
notes to such financial statements or, in the case of unaudited
interim financial statements, as permitted by the SEC on Form 10-Q
under the Exchange Act), and (ii) fairly presented in all
material respects the consolidated financial position of Realogy
and its Subsidiaries as of the dates indicated and the consolidated
results of its operations and cash flows for the periods indicated,
except that the unaudited interim financial statements were subject
to normal and recurring year-end adjustments, none of which are
expected to have a material adverse effect on Realogy.
2.8 No Additional
Representations . Realogy acknowledges that neither WEX nor any
person has made any representation or warranty, express or implied,
as to the accuracy or completeness of any information regarding WEX
furnished or made available to Realogy and its representatives
except as expressly set forth in this Agreement.
2.9 Brokers’ Fees .
Realogy has no liability or obligation to pay any fees or
commissions to any broker, finder or agent with respect to the
transactions contemplated by this Agreement.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF
WEX
WEX represents and warrants to
Realogy that the statements contained in this Article III are true
and correct as of the date of this Agreement and will be true and
correct as of the Closing as though made as of the
Closing.
3.1 Organization and Corporate
Power . WEX is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware. WEX
has all requisite corporate power and authority to carry on the
businesses in which it is engaged and to own and use the properties
owned and used by it.
- 4 -
3.2 Authorization of the
Transaction . WEX has all requisite corporate power and
authority to execute and deliver this Agreement and the ABG
Agreement and to perform its obligations hereunder and thereunder.
The execution and delivery by WEX of this Agreement and the ABG
Agreement, the performance by WEX of this Agreement and the ABG
Agreement and the consummation by WEX of the transactions
contemplated hereby and thereby have been duly and validly
authorized by all necessary corporate action on the part of WEX.
This Agreement and the ABG Agreement have been duly and validly
executed and delivered by WEX and this Agreement, the ABG Agreement
and the TRA constitute valid and binding obligations of WEX,
enforceable against WEX in accordance with their terms, except as
such enforcement may be limited by general equitable principles or
by applicable bankruptcy, insolvency, fraudulent transfer,
moratorium, or similar laws, legal requirements and judicial
decisions from time to time in effect which affect creditors’
rights generally.
3.3 Noncontravention .
Neither the execution and delivery by WEX of this Agreement or the
ABG Agreement, nor the consummation by WEX of the transactions
contemplated hereby or thereby, will (a) conflict with or
violate any provision of the Certificate of Incorporation or
by-laws of WEX, (b) require on the part of WEX any filing
with, or permit, authorization, consent or approval of, any
Governmental Entity, (c) conflict with, result in breach of,
constitute (with or without due notice or lapse of time or both) a
default under, result in the acceleration of obligations under,
create in any party any right to terminate, modify or cancel, or
require any notice, consent or waiver under, any contract or
instrument to which WEX is a party or by which it is bound or to
which any of its assets is subject, except for (i) any
conflict, breach, default, acceleration, termination, modification
or cancellation which is not material or which would not materially
adversely affect the consummation of the transactions contemplated
hereby or (ii) any notice, consent or waiver the absence of
which would not adversely affect the consummation of the
transactions contemplated hereby, or (d) violate any order,
writ, injunction, decree, statute, rule or regulation applicable to
WEX or any of its properties or assets.
3.4 [Reserved]
3.5 No Additional
Representations . WEX acknowledges that neither Realogy nor any
person has made any representation or warranty, express or implied,
as to the accuracy or completeness of any information regarding
Realogy furnished or made available to WEX and its representatives
except as expressly set forth in this Agreement (which includes the
Disclosure Schedule).
3.6 Brokers’ Fees . WEX
has no liability or obligation to pay any fees or commissions to
any broker, finder or agent with respect to the transactions
contemplated by this Agreement.
- 5 -
ARTICLE IV
CERTAIN COVENANTS
4.1 Confidentiality . The
parties contemplate public disclosure of this Agreement (including
to the extent each party deems it necessary to include in its
required public filings or to communicate with its investors) and
will develop in good faith a separate Confidentiality Agreement to
govern the exchange of other confidential information necessary to
implement a request for a Private Letter Ruling or other further
joint activities.
ARTICLE V
[RESERVED]
ARTICLE VI
POST-CLOSING
COVENANTS
6.1 Press Releases and
Announcements . Other than public disclosures contemplated by
Section 4.1, neither Party shall issue any press release or
public announcement relating to the subject matter of this
Agreement without the prior written approval of the other
Party.
6.2 Private Letter Ruling
Request . WEX agrees as soon as practicable following the
Closing to submit a request to the Internal Revenue Service for the
Private Letter Ruling; provi