Execution Copy
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BANC OF AMERICA SECURITIES
LLC
100 Federal Street
Boston, MA 02110
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Stamford, Connecticut 06901
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BANK OF AMERICA, N.A.
750 Walnut Avenue
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September 2, 2005
Ventiv Health,
Inc.
Vantage Court
North
200 Cottontail
Lane
Somerset, NJ
08873
Attention: John Emery
Bank Facilities Commitment
Letter
Ladies and
Gentlemen:
You have advised UBS Loan Finance LLC (“
UBS ”), UBS Securities LLC (“ UBSS
”), Bank of America, N.A. (“ Bank of America
”) and Banc of America Securities LLC (“ BAS
”) and, together with UBS, UBSS and Bank of America “
we ” or “ us ”) that you propose to
acquire (the “ Acquisition ”) inChord
Communications Inc. (the “ Acquired Business ”)
from its existing shareholders (collectively, “ Seller
”). The Acquisition will be effected pursuant to a stock
purchase agreement (the “ Acquisition Agreement
”) between you (“ Borrower ”) and Seller.
All references to “ dollars ” or “
$ ” in this agreement and the attachments hereto
(collectively, this “ Commitment Letter ”) are
references to United States dollars. All references to
“Borrower” or “Borrower and its
subsidiaries” for any period from and after consummation of
the Acquisition shall include the Acquired Business.
We understand that the sources of funds required
to fund the Acquisition consideration, to pay fees, commissions and
expenses of up to $7.5 million in connection with the Transactions
(as defined below) and to provide ongoing working capital
requirements of Borrower and its subsidiaries following the
Transactions will include:
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senior secured
credit facilities consisting of (i) a senior secured term loan
facility to Borrower of $175.0 million (the “ Term Loan B
Facility ”), as described in the Bank Facilities Summary
of Principal Terms and Conditions attached hereto as Annex I
(the “ Term Sheet ”) and (ii) a senior secured
revolving credit facility to Borrower of $50.0 million (the “
Revolving Credit Facility ” and, together with the
Term Loan B Facility, the “ Bank Facilities ” or
the “ Facilities ”), as described in the Term
Sheet; none of the Revolving Credit Facility will be drawn
immediately after giving effect to the Transactions.
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common equity
of the existing management of the Acquired Business exchanged for
not less than $12.5 million of common equity of the Borrower on
terms and conditions reasonably satisfactory to us (the “
Rollover Equity ”).
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No other
financing will be required for the uses described above.
Immediately following the Transactions, neither Borrower nor any of
its subsidiaries will have any indebtedness or preferred equity
other than the Bank Facilities and up to $40.0 million of
capitalized leases. As used herein, the term “
Transactions ” means the Acquisition, the initial
borrowings under the Bank Facilities, the Rollover Equity and the
payments of fees, commissions and expenses in connection with each
of the foregoing.
You have requested that UBS and Bank of America
commit to provide 80% and 20%, respectively, of the Facilities and
that UBSS and BAS agree to structure, arrange and syndicate the
Facilities.
Each of UBS and Bank of America is pleased to
advise you of its several commitment to provide 80% and 20%,
respectively, of the Bank Facilities to Borrower upon the terms and
subject to the conditions set forth or referred to in this
Commitment Letter. The commitment of UBS, Bank of America and each
other Lender (as defined below) hereunder is subject to the
negotiation, execution and delivery of definitive documentation
(the “ Bank Documentation ”) with respect to the
Bank Facilities reasonably satisfactory to UBS, Bank of America and
the other Lenders reflecting, among other things, the terms and
conditions set forth in the Term Sheet, in Annex II hereto
(the “ Conditions Annex ”) and in the letter of
even date herewith addressed to you providing, among other things,
for certain fees relating to the Facilities (the “ Fee
Letter ”). You agree that the closing date of the
Transactions and the concurrent closing of the Facilities (the
“ Closing Date ”) shall be a date mutually
agreed upon between you and us, but in any event shall not occur
until the terms and conditions hereof and in the Term Sheet and the
Conditions Annex (including the conditions to initial funding) have
been satisfied.
It is agreed that UBSS will act as advisor,
joint lead arranger and sole and exclusive bookmanager for the
Facilities, and, in consultation with you and BAS, will exclusively
manage the syndication of the Facilities, and will, in such
capacities, perform the duties and exercise the authority
customarily associated with such roles. It is agreed that BAS will
be given the title of joint lead arranger for the Facilities, and
Bank of America will be given the title of syndication agent. It is
further agreed that no additional advisors, agents, co-agents,
arrangers or bookmanagers will be appointed and no Lender (as
defined below) will receive compensation with respect to any of the
Facilities outside the terms contained herein and in the Fee Letter
in order to obtain its commitment to participate in such
Facilities, in each case unless you and we so agree.
Each of UBS and Bank of America reserves the
right, prior to or after execution of the Bank Documentation, in
consultation with you, to syndicate all or a portion of its
commitment to one or more institutions that will become parties to
the Bank Documentation (UBS, Bank of America and the institutions
becoming parties to the Bank Documentation with respect to all or a
portion of the Bank Facilities, the “ Lenders
”). Upon any such additional Lender issuing its commitment to
provide a portion of any Facility, UBS and Bank of America shall be
released from a portion of their respective commitments in respect
of such Facility in an aggregate amount (80%/20%, respectively)
equal to the commitment of such Lender.
UBSS will exclusively manage all aspects of the
syndication of the Facilities, including selection of additional
Lenders, determination of when UBSS will approach potential
additional Lenders, awarding of any naming rights and the final
allocations of the commitments in respect of the Facilities among
the additional Lenders. You agree to, and to use commercially
reasonable efforts to cause the Acquired Business to (including
with a covenant to such effect in the Acquisition Agreement),
actively assist UBSS in achieving a timely syndication of the
Facilities that is reasonably satisfactory to UBSS, BAS and the
Lenders participating in such Facilities. To assist UBSS in its
syndication efforts, you agree that you will, and will cause your
representatives and advisors to, and will use commercially
reasonable efforts to cause the Acquired Business and its
representatives and advisors to, (a) promptly prepare and provide
all financial and other information as we may reasonably request
with respect to you, Borrower, the Acquired Business, their
respective subsidiaries and the transactions contemplated hereby,
including but not limited to financial projections (the “
Projections ”) relating to the foregoing, (b) provide
copies of any due diligence reports or memoranda prepared at the
direction of Borrower or any of its affiliates by legal,
accounting, tax or other advisors in connection with the
Acquisition (subject to the delivery of customary non-disclosure
agreements reasonably acceptable to UBS), (c) use commercially
reasonable efforts to ensure that such syndication efforts benefit
materially from existing lending relationships of Borrower, the
Acquired Business and their respective subsidiaries, (d) make
available to prospective Lenders senior management and advisors of
the Acquired Business and its subsidiaries, (e) host, with UBSS,
one or more meetings with prospective Lenders under each of the
Facilities, (f) assist UBSS in the preparation of one or more
confidential information memoranda satisfactory to UBSS and other
marketing materials to be used in connection with the syndication
of each of the Facilities and (g) obtain, at your expense,
monitored public ratings of the Facilities from Moody’s
Investors Service (“ Moody’s ”) and
Standard & Poor’s Ratings Group (“ S&P
”) at least 21 days prior to the Closing Date and to
participate actively in the process of securing such ratings,
including having senior management of Borrower and using
commercially reasonable efforts to have senior management of the
Acquired Business meet with such rating agencies.
At our request, you agree to prepare a version
of the information package and presentation and other marketing
materials to be used in connection with the syndication that do not
contain material non-public information concerning Borrower or the
Acquired Business, their respective affiliates or their securities.
In addition, you agree that unless specifically labeled
“Private — Contains Non-Public Information,” no
information, documentation or other data disseminated to
prospective Lenders in connection with the syndication of the
Facilities, whether through an Internet website (including, without
limitation, an IntraLinks workspace), electronically, in
presentations at meetings or otherwise, will contain any material
non-public information concerning Borrower or the Acquired
Business, their respective affiliates or their
securities.
You hereby represent and covenant that (a) all
information (other than the Projections and other general economic
information) that has been or will be made available to us or any
of the Lenders by you, Borrower, the Acquired Business or any of
your or their respective representatives in connection with the
transactions contemplated hereby (the “ Information
”), when taken as a whole, is and will be complete and
correct in all material respects and does not and will not contain
any untrue statement of a material fact or omit to state a material
fact necessary to make the statements contained therein, in light
of the circumstances under which such statements are made, not
misleading and (b) the Projections that have been or will be made
available to us or any of the Lenders by you, the Acquired Business
or any of your or its representatives in connection with the
transactions contemplated hereby have been and will be prepared in
good faith based upon assumptions believed by you to be reasonable
(it being understood that projections by their nature are
inherently uncertain and no assurances are being given that the
results reflected in the Projections will be achieved). You agree
to supplement the Information and the Projections from time to time
and agree to promptly advise us and the Lenders of all developments
materially affecting Borrower, the Acquired Business, any of their
respective subsidiaries or affiliates or the transactions
contemplated hereby or the accuracy of Information and Projections
previously furnished to us or any of the Lenders. You acknowledge
that we may share with any of our affiliates that have a business
reason to receive the information, and such affiliates may share
with us, any information related to Borrower, the Acquired
Business, or any of their respective subsidiaries or affiliates
(including, without limitation, information relating to
creditworthiness) and the transactions contemplated hereby. We will
maintain and cause our affiliates to maintain the confidentiality
of all proprietary and confidential information of Borrower and its
affiliates in accordance with our standard procedures for
confidential information and to the same degree as we protect our
similar information.
As consideration for the commitments of the
Lenders hereunder with respect to the Facilities and the agreement
of UBSS and BAS to structure, arrange and syndicate the Facilities
and, with respect to UBSS only, to provide advisory services in
connection therewith, you agree to pay, or cause to be paid, the
fees set forth in the Term Sheet and the Fee Letter. Once paid,
such fees shall not be refundable under any
circumstances.
The several commitments of UBS and Bank of
America hereunder with respect to each of the Facilities and
UBSS’s and BAS’s agreements to perform the services
described herein may be terminated by UBS or BAS if (i) any
information submitted to UBS or Bank of America by or on behalf of
Borrower, the Acquired Business or any of their respective
subsidiaries or affiliates is inaccurate, incomplete or misleading
in any respect determined by UBS to be material and adverse; (ii)
there shall be any pending or threatened material litigation or
other proceedings (private or governmental) with respect to any of
the transactions contemplated hereby that would reasonably be
expected to restrain, prevent or impose material burdensome
conditions on such transactions; (iii) any change shall occur since
December 31, 2004, or any additional information shall be disclosed
to or discovered by UBS or Bank of America (including, without
limitation, information contained in any review or report required
to be provided to it in connection herewith), which UBS determines
has had, or more likely than not in the foreseeable future would
have, a material adverse effect on the business or the consolidated
financial condition or results of operations of the Acquired
Business and its subsidiaries, taken together as a whole, excluding
any such effect resulting from or arising out of (a) changes or
conditions generally affecting the United States economy or
financial markets or (b) the execution or performance of the
Acquisition Documents or the announcement thereof; and (iv) any
condition set forth in either the Term Sheet or the Conditions
Annex is not satisfied or any covenant or agreement in this
Commitment Letter or the Fee Letter is not complied
with.
From the date of this Commitment Letter until
our completion of a “Successful Syndication” (as
defined in the Fee Letter) of each of the Facilities you will
ensure that no financing for Borrower, the Acquired Business or any
of your or their respective subsidiaries or affiliates is
announced, syndicated or placed without the prior written consent
of UBS if such financing, syndication or placement would have, in
the reasonable judgment of UBS, a detrimental effect upon the
transactions contemplated hereby.
By your
acceptance below, you hereby agree to indemnify and hold harmless
each of us and the other Lenders and our and their respective
affiliates (including, without limitation, controlling persons) and
the directors, officers, employees, advisors and agents of the
foregoing (each, an “ Indemnified Person ”) from
and against any and all losses, claims, costs, expenses, damages or
liabilities (or actions or other proceedings commenced or
threatened in respect thereof) that arise out of or in connection
with this Commitment Letter, the Term Sheet, the Conditions Annex,
the Fee Letter, the Facilities or any of the transactions
contemplated hereby or thereby or the providing or syndication of
the Facilities (or the actual or proposed use of the proceeds
thereof), and to reimburse each Indemnified Person promptly upon
its written demand for any legal or other expenses incurred in
connection with investigating, preparing to defend or defending
against, or participating in, any such loss, claim, cost, expense,
damage, liability or action or other proceeding (whether or not
such Indemnified Person is a party to any action or proceeding);
provided that any such obligation to indemnify, hold
harmless and reimburse an Indemnified Person shall not be
applicable to the extent determined by a final, non-appealable
judgment of a court of competent jurisdiction to have resulted
solely from the gross negligence or willful misconduct of such
Indemnified Person and provided further in no event will the
foregoing indemnification and reimbursement obligations apply to
any losses, claims, costs, expenses, damages or liabilities (or
actions or other proceedings commenced or threatened in respect
thereof) relating to, arising out of or in connection with any
breach of a contractual relationship between UBSS or any of its
affiliates, on the one hand, and the Acquired Business and its
affiliates, on the other hand, or any written confidentiality or
other written obligations or duties (collectively, the “
Existing Obligations ”) among such persons, provided
further however that nothing herein shall limit, reduce or
adversely affect in any way or diminish any rights UBS or any of
its affiliates may have under the Existing Obligations, including
without limitation, any indemnification, expense reimbursement,
hold harmless, exculpation or similar rights that UBS or any of its
affiliates may have been granted by the Acquired Business or any of
its affiliates in contract, by operation of law or otherwise,
including further without limitation, in the case of UBS, pursuant
to the Engagement Letter dated April 1, 2005. In the case of an
investigation, litigation or proceeding to which the indemnity in
this paragraph applies, such indemnity shall be effective whether
or not such investigation, litigation or proceeding is brought by
you, your equity holders or creditors or an Indemnified
Person.
You shall not
be liable for any settlement of any such proceeding effected
without your written consent, but if settled with such consent or
if there shall be a final judgment against an Indemnified Person,
you shall, subject to the proviso in the preceding sentence,
indemnify such Indemnified Person from and against any loss or
liability by reason of such settlement or judgment. You shall not,
without the prior written consent of any Indemnified Person, effect
any settlement of any pending or threatened proceeding in respect
of which such Indemnified Person is or could have been a party and
indemnity could have been sought hereunder by such Indemnified
Person, unless such settlement (i) 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 a statement as to or an admission of fault, culpability, or
a failure to act by or on behalf of such Indemnified Person. None
of us or any other Lender (or any of their respective affiliates)
shall be responsible or liable to Borrower, or (following
completion of the acquisition of the Acquired Business by the
Borrower) the Acquired Business or any of their respective
subsidiaries, affiliates or stockholders or any other person or
entity for any indirect, punitive or consequential damages which
may be alleged as a result of this Commitment Letter, the Term
Sheet, the Conditions Annex, the Fee Letter, the Facilities or the
transactions contemplated hereby or thereby. In addition, you
hereby agree to reimburse us and each of the Lenders from time to
time upon demand for all reasonable out-of-pocket costs and
expenses (including, without limitation, reasonable legal fees and
expenses of UBS, UBSS, Bank of America and BAS, appraisal,
consulting and audit fees, and printing, reproduction, document
delivery, travel, communication and publicity costs) incurred in
connection with the syndication and execution of the Facilities,
and the preparation, review, negotiation, execution and delivery of
this Commitment Letter, the Term Sheet, the Conditions Annex, the
Fee Letter, the Bank Documentation and the administration,
amendment, modification or waiver thereof (or any proposed
amendment, modification or waiver), whether or not the Closing Date
occurs or any Bank Documentation is executed and delivered or any
extensions of credit are made under either of the
Facilities.
This Commitment Letter is furnished for your
benefit, and may not be relied on by any other person or entity.
This Commitment Letter is delivered to you upon the condition that
neither the existence of this Commitment Letter, the Term Sheet,
the Conditions Annex or the Fee Letter nor any of their contents
shall be disclosed by you or any of your affiliates, directly or
indirectly, to any other person, except that such existence and
contents may be disclosed (i) as may be compelled in a judicial or
administrative proceeding or as otherwise required by law and (ii)
to your directors, officers, employees, legal counsel and
accountants, in each case on a confidential and
“need-to-know” basis and only in connection with the
transactions contemplated hereby. In addition, this Commitment
Letter, the Term Sheet and the Conditions Annex (but not the Fee
Letter) may be disclosed to the Acquired Business, Seller and their
respective directors, officers, employees, advisors and agents, in
each case on a confidential and “need-to-know” basis
and only in connection with the transactions contemplated
hereby.
You acknowledge and agree that we and/or our
respective affiliates may be requested to provide additional
services with respect to Borrower, the Acquired Business and/or
their respective affiliates or other matters contemplated hereby.
Any such services will be set out in and governed by a separate
agreement(s) (containing terms relating, without limitation, to
services, fees and indemnification) in form and substance
satisfactory to the parties thereto. Nothing in this Commitment
Letter is intended to obligate or commit us or any of our
respective affiliates to provide any services other than as set out
herein. You acknowledge that UBSS is acting as financial advisor to
the Acquired Business in connection with various matters, including
the Transactions.
You acknowledge and agree that in connection
with all aspects of each transaction contemplated hereby, you and
each of UBS, UBSS, Bank of America and BAS (and any affiliate
through which any of the foregoing may be acting (each, a
“Transaction