|
Exhibit
10.4
EXECUTION COPY
TRANSITIONAL
AGREEMENT
among
CENDANT
CORPORATION,
CENDANT OPERATIONS,
INC.
and
WRIGHT EXPRESS
CORPORATION
Dated as of February 22,
2005
TABLE OF CONTENTS
ARTICLE I
SERVICES
|
|
|
|
|
| Section 1.1 |
|
Provision of
Services |
|
1 |
| Section
1.2 |
|
Additional
Services |
|
1 |
| Section
1.3 |
|
Obligations
as to Additional Services |
|
2 |
| Section
1.4 |
|
Term of
Agreement and Services |
|
2 |
| Section
1.5 |
|
Subcontracting of Services |
|
2 |
| Section
1.6 |
|
Standard of
Service |
|
2 |
| Section
1.7 |
|
Right to
Decline Services |
|
3 |
| Section
1.8 |
|
Compensation
and Other Payments |
|
3 |
| Section
1.9 |
|
Billing and
Payment Terms |
|
3 |
| Section
1.10 |
|
Interruption
of Services |
|
4 |
| Section 1.11 |
|
Supervision
and Compensation |
|
5 |
| Section
1.12 |
|
Staffing of
Personnel |
|
5 |
|
|
|
| |
|
ARTICLE II |
|
|
|
|
|
| |
|
COSTS AND EXPENSES |
|
|
|
|
|
| Section
2.1 |
|
Allocation
of Costs and Expenses Related to the Initial Public
Offering |
|
5 |
|
|
|
| |
|
ARTICLE III |
|
|
|
|
|
| |
|
MUTUAL OBLIGATIONS; COVENANTS |
|
|
|
|
|
| Section
3.1 |
|
Legal
Actions |
|
6 |
| Section
3.2 |
|
Providing
Periodic Reports |
|
6 |
| Section
3.3 |
|
Public
Announcements |
|
6 |
| Section
3.4 |
|
Means of
Providing Services |
|
6 |
| Section
3.5 |
|
Further
Assurances |
|
7 |
|
|
|
| |
|
ARTICLE IV |
|
|
|
|
|
| |
|
TAX MATTERS |
|
|
| Section
4.1 |
|
Service
Taxes |
|
7 |
| Section
4.2 |
|
Limitation
of Damages |
|
7 |
|
|
|
| |
|
ARTICLE V |
|
|
|
|
|
| |
|
ACCESS TO INFORMATION, PERSONNEL AND HISTORICAL
RECORDS |
|
|
|
|
|
| Section
5.1 |
|
Information
and Personnel Shared Historical Records |
|
7 |
i
|
|
|
|
|
| Section 5.2 |
|
Access to
Information |
|
8 |
| Section
5.3 |
|
Litigation
Cooperation |
|
8 |
| Section
5.4 |
|
Attorney
Client Privilege |
|
8 |
|
|
|
| |
|
ARTICLE VI |
|
|
|
|
|
| |
|
CONFIDENTIALITY |
|
|
|
|
|
| Section
6.1 |
|
Confidential
Information |
|
8 |
| Section
6.2 |
|
Exceptions |
|
9 |
| Section
6.3 |
|
Additional
Responsibilities |
|
9 |
|
|
|
| |
|
ARTICLE VII |
|
|
|
|
|
| |
|
DISCLAIMER AND LIMITATION OF LIABILITY |
|
|
|
|
|
| Section
7.1 |
|
Disclaimer
of Warranties |
|
9 |
| Section
7.2 |
|
Limitation
of Consequential Damages |
|
10 |
|
|
|
| |
|
ARTICLE VIII |
|
|
|
|
|
| |
|
BUSINESS AND REGISTRATION STATEMENT INDEMNIFICATION |
|
|
|
|
|
| Section
8.1 |
|
General
Cross Indemnification |
|
10 |
| Section
8.2 |
|
Registration
Statement Indemnification |
|
11 |
| Section
8.3 |
|
Contribution |
|
12 |
| Section
8.4 |
|
Procedure |
|
12 |
| Section
8.5 |
|
Other
Matters |
|
13 |
|
|
|
| |
|
ARTICLE IX |
|
|
|
|
|
| |
|
OTHER PROVISIONS |
|
|
|
|
|
| Section
9.1 |
|
Records |
|
13 |
| Section
9.2 |
|
Inspection
Rights |
|
13 |
| Section
9.3 |
|
Non-Solicitation |
|
14 |
|
|
|
| |
|
ARTICLE X |
|
|
|
|
|
| |
|
TERMINATION |
|
|
|
|
|
| Section 10.1 |
|
Termination |
|
14 |
| Section
10.2 |
|
Termination
Notices |
|
15 |
| Section
10.3 |
|
Consequences
of Termination |
|
15 |
| Section
10.4 |
|
Survival |
|
15 |
ii
ARTICLE XI
MISCELLANEOUS
|
|
|
|
|
| Section 11.1 |
|
Force
Majeure |
|
15 |
| Section
11.2 |
|
Assignment |
|
15 |
| Section
11.3 |
|
Relationship
of the Parties |
|
16 |
| Section
11.4 |
|
Governing
Law and Submission to Jurisdiction |
|
16 |
| Section
11.5 |
|
Entire
Agreement |
|
16 |
| Section
11.6 |
|
Notices |
|
17 |
| Section
11.7 |
|
Negotiation
and Mediation |
|
17 |
| Section
11.8 |
|
Conflicting
Provisions |
|
18 |
| Section
11.9 |
|
Severability |
|
18 |
| Section 11.10 |
|
Interpretation |
|
18 |
| Section
11.11 |
|
Counterparts |
|
19 |
| Section
11.12 |
|
Further
Cooperation |
|
19 |
| Section
11.13 |
|
Amendment
and Waiver |
|
19 |
| Section
11.14 |
|
Duly
Authorized Signatories |
|
19 |
| Section
11.15 |
|
Waiver of
Trial By Jury |
|
19 |
| Section
11.16 |
|
Descriptive
Headings |
|
20 |
| Section
11.17 |
|
No Third
Party Beneficiaries |
|
20 |
| Section
11.18 |
|
Binding
Nature of Agreement |
|
20 |
| Section
11.19 |
|
Certain
Definitions |
|
20 |
|
|
|
| Exhibit
A |
|
|
|
|
| A-1 Human
Resources |
|
|
| A-2 Internal
Audit Services |
|
|
| A-3 Payroll |
|
|
| A-4 Insurance |
|
|
| A-5 Telecommunications |
|
|
| A-6 Information
Technology |
|
|
iii
TRANSITIONAL AGREEMENT (this
“ Agreement “), dated as of February 22, 2005
(the “ Effective Date “), by and among Cendant
Operations, Inc., a Delaware corporation (“ Cendant
Operations “), Cendant Corporation, a Delaware
corporation (together with its Subsidiaries, “ Cendant
”) and Wright Express Corporation, a Delaware corporation
(“ Wright Express “). Each of Cendant
Operations, Cendant and Wright Express is sometimes referred to
herein as a “ Party “ and collectively, as the
“ Parties .”
W I T
N E S S E T H
:
WHEREAS, Cendant is the
indirect owner of all of the issued and outstanding common stock,
par value $0.01 per share (the “ Common Stock
”), and Series A non-voting convertible preferred stock (the
“ Preferred Stock ”) of Wright Express
immediately prior to the date hereof; and
WHEREAS, Cendant Operations
and Wright Express have each determined that it is desirable to
enter into this Agreement, which sets forth the terms of certain
relationships and other agreements among Cendant Operations,
Cendant and Wright Express following the date of the closing (the
“ Closing Date ”) of the Initial Public
Offering.
NOW, THEREFORE, in
contemplation of Wright Express ceasing to be so wholly owned by
Cendant and in consideration of the foregoing and the covenants and
agreements set forth herein, the Parties, intending to be legally
bound hereby, agree as follows:
ARTICLE I
SERVICES
Section 1.1 Provision of
Services . Upon the terms and subject to the conditions set
forth in this Agreement, Cendant Operations agrees to provide to
Wright Express those services described in Exhibit A attached
hereto, each on and pursuant to the terms set forth therein
(together, with the Additional Services (as defined in Section
1.2), the “Services“).
Section 1.2 Additional
Services . From time to time during the Term (as defined in
Section 1.4), Wright Express may find it desirable to request, in
addition to the Services described in Exhibit A, additional
services to be made available to Wright Express by Cendant
Operations (“ Additional Services “). In the
event that Wright Express makes a written request that Cendant
Operations provide Additional Services and Cendant Operations
agrees to provide such Additional Services, the Parties shall
negotiate in good faith and execute amendments to Exhibit A for
such Additional
1
Services that shall set forth, among
other things, (a) the time period during which the Additional
Services shall be provided, (b) a description of the Additional
Services, and (c) and the estimated charge for the Additional
Services. Cendant Operations’s obligations with respect to
providing any such Additional Services shall become effective only
upon an amendment to Exhibit A being duly executed and delivered by
each Party. It is understood that Cendant Operations has no
obligation to provide Additional Services and may reject any
request by Wright Express for Additional Services for any reason or
for no reason.
Section 1.3 Obligations as
to Additional Services . Cendant Operations agrees to enter
into discussions with Wright Express to provide any Additional
Services that (i) Wright Express is unable to obtain from a third
party provider, (ii) are directly dependent upon or inextricably
intertwined with the Services and (iii) were inadvertently and
unintentionally omitted from the list of Services; provided,
however, that Cendant Operations shall not be obligated to provide
such Additional Services if, following good-faith negotiation, the
Parties are unable to reach agreement on such terms.
Section 1.4 Term of
Agreement and Services . The term of each Service identified in
Exhibit A shall commence upon the Effective Date and, unless
earlier terminated by the Parties as provided herein, shall expire
on the date as set forth for each Service in Exhibit A (the
“ Term “).
Section 1.5 Subcontracting
of Services . Wright Express acknowledges that prior to the
Effective Date, Cendant Operations may have subcontracted with
unaffiliated third parties to provide services in connection with
all or any portion of the Services to be provided hereunder.
Cendant Operations reserves the right to subcontract with
unaffiliated third parties to provide the Services or to enter into
new subcontract relationships for any Service provided that the
level of service remains consistent with the level of service
previously provided to Wright Express.
Section 1.6 Standard of
Service . Cendant Operations agrees that in providing (or
causing others to provide) the Services under this Agreement, it
shall (and shall cause each affiliate or advisor and, to the extent
practicable, any or other third-party service provider to): (i)
conduct itself in accordance with (A) standards of quality
consistent with the standards applied by Cendant Operations as of
the Effective Date with respect to the specific matters in
question, and (B) standards of quality consistent with those
applied by Cendant Operations hereafter with respect to the
specific matters in question in its own business; (ii) comply with
all laws, regulations and orders applicable to the conduct of the
activities contemplated hereby in all material respects; (iii)
comply in all material respects with any applicable standards,
procedures, policies, operating guidelines, practices and
instructions set forth in Exhibit A, describing the relevant
Services; and (iv) comply in all material respects with any
commercially reasonable standards, procedures, policies, operating
guidelines, practices and instructions imposed by third-parties in
connection with the Services. Notwithstanding the foregoing, it
shall not be deemed to be a breach of this Agreement if Cendant
Operations fails to meet the standards required under this Section
1.6 because of the failure of Wright Express to cooperate with or
provide information or services to Cendant Operations as required
under this Agreement.
2
(a) In addition to the
provisions of Section 1.6, if Wright Express desires a higher
quality of the Services than Cendant Operations is otherwise
obligated to provide pursuant to Section 1.6 or any of the other
provisions of this Agreement, including Exhibit A , Wright
Express will be entitled to receive such higher level of quality
after giving no less than 30 days’ prior written notice to
Cendant Operations if (i) Wright Express agrees to pay for all
additional Actual Costs associated with such increased level and
(ii) in the sole judgment of Cendant Operations, such increased
level does not impose an additional burden on Cendant
Operations.
(b) Cendant Operations shall
promptly notify Wright Express of any event or circumstance of
which Cendant Operations or any of its representatives has
knowledge that would or would be reasonably likely to cause a
disruption in the Services.
Section 1.7 Right to
Decline Services . Notwithstanding anything contained herein or
in Exhibit A, Cendant Operations may decline to provide all or any
part of any particular Services, if Cendant Operations reasonably
believes that the performance of its obligations relating thereto
would violate any applicable law, regulation, judicial or
administrative ruling or decision, any property right or agreement
or any announcement, policy or standard applicable to its business,
but only (a) to the extent reasonably necessary for Cendant
Operations to ensure compliance therewith, (b) after Cendant
Operations has applied commercially reasonable efforts to reduce
the amount and/or effect of any such restrictions and (c) after
Cendant Operations has delivered written notice to Wright Express
specifying in reasonable detail the nature of the applicable
restrictions and of any proposed resulting modification in Cendant
Operations’s obligations.
Section 1.8 Compensation
and Other Payments. Wright Express agrees to pay Cendant
Operations, in accordance with Section 1.9, an amount equal to the
sum of the following items (collectively, the “ Wright
Express Payables “):
(a) An amount in cash equal
the amounts set forth in Exhibit A ;
(b) If applicable, the Actual
Cost of any Additional Services provided by Cendant Operations
pursuant to Section 1.2; and
(c) If applicable,
incremental increases in the Actual Cost of Services for increased
levels of Services provided by Cendant Operations pursuant to
Section 1.6(a).
Section 1.9 Billing and
Payment Terms.
(a) Wright Express agrees to
pay Cendant Operations in accordance with, and subject to, the
billing and payment terms set forth in Exhibit A for each of
the Services. Amounts not paid in accordance with this Section
1.9(a) within the period due as set forth in Exhibit A shall
accumulate interest at the rate of 10 percent per
3
annum or the maximum lawful rate,
whichever is less (such rate being referred to herein as the
“ Interest Rate “). Upon the termination of the
Services, Cendant Operations will invoice Wright Express for
Services incurred or other applicable charges since the last
invoice in accordance with the terms and conditions set forth
herein and in Exhibit A .
(b) In the event Wright
Express does not pay any sum, or any part thereof, in accordance
with this Section 1.9, Cendant Operations shall, effective 30 days
following the delivery of written notice to Wright Express of such
payment default, have no further obligation pursuant to this
Agreement to provide Services to Wright Express until such unpaid
balance plus all accrued interest at the applicable Interest Rate
shall have been paid; provided that Cendant Operations shall
not be relieved of any of its obligations to provide Services
pursuant to this Agreement if, following the delivery of such
written notice but prior to 30 days following such delivery, Wright
Express delivers written notice to Cendant Operations written
notice setting forth in detail the reasons that such charges are
not due and payable. If Cendant Operations determines in good faith
that such amounts are still due and payable and Wright Express has
not paid such amounts within five (5) Business Days of such notice,
Cendant Operations may suspend all Services under this Agreement
and the disputed invoices shall be referred to resolution under
Section 11.7 hereunder.
(c) Wright Express shall
promptly notify Cendant Operations in writing of any amounts billed
to it that are in dispute. Upon receipt of such notice, Cendant
Operations will research the items in question in a reasonably
prompt manner and cooperate to resolve any differences with Wright
Express. In the event that the Parties mutually agree that any
amount that was paid by Wright Express was not properly owed,
Cendant Operations will refund that amount to Wright Express within
20 days of the delivery of such notice (or, alternatively, Cendant
Operations may deduct the dollar amount from the next invoice
submitted to Wright Express). In the event agreement is not reached
by the Parties within 30 days of delivery of the notice referred to
above, the matter shall be referred to resolution in accordance
with Section 11.7.
Section 1.10 Interruption
of Services . Except as otherwise provided herein, Cendant
Operations will use its commercially reasonable efforts to provide
uninterrupted Services through the Term. In the event, however,
that Cendant Operations or its respective suppliers or
subcontractors are wholly or partially prevented from providing a
Service or Services to Wright Express or if a Service or Services
are interrupted or suspended, in either case by reason of any force
majeure event set forth in Section 11.1, or Cendant Operations
shall deem it reasonably necessary to suspend delivery of a Service
hereunder for purposes of maintenance, repair or replacement of
equipment parts or structures, Cendant Operations shall not be
obligated to deliver such Service during such periods provided that
Cendant Operations: (a) has given, whenever possible, reasonable
written notice of the interruption in accordance with Section 11.6
within a reasonable period of time, explaining the reason, purpose
and likely duration thereof; and (b) use commercially reasonable
efforts to minimize the duration and impact of the interruption. If
such interruption of Services has a significant negative impact on
Wright Express’s business and Cendant Operations cannot
readily reinstate the Service involved, Cendant Operations will use
its commercially reasonable efforts to assist Wright Express in
securing alternative services to minimize such negative impact on
Wright Express.
4
Section 1.11 Supervision
and Compensation . Cendant Operations shall select, employ,
pay, supervise, direct and discharge all the personnel providing
Services hereunder. Subject to Section 1.7, Cendant Operations
shall be solely responsible for the payment of all benefits and any
other direct and indirect compensation for Cendant Operations
personnel assigned to perform services under this Agreement, as
well as such personnel’s worker’s compensation
insurance, employment taxes, and other employer liabilities
relating to such personnel as required by law. Cendant Operations
shall be an independent contractor in connection with the
performance of Services hereunder and the employees performing
Services in connection herewith shall not be deemed to be employees
of Wright Express.
Section 1.12 Staffing of
Personnel . Cendant Operations shall be solely responsible for
assigning personnel to perform the Services, which personnel will
be instructed by Cendant Operations to perform the Services in a
timely, efficient and workmanlike manner.
ARTICLE II
COSTS AND EXPENSES RELATED TO
THE INITIAL PUBLIC OFFERING
Section 2.1 Allocation of
Costs and Expenses . Cendant shall pay for all fees, costs and
expenses incurred by Wright Express directly related to (i) the
Initial Public Offering, including, but not limited to, any and all
fees, costs and expenses related to (a) the preparation and
negotiation of this Agreement and of all of the documentation
related to the Initial Public Offering, (b) the preparation and
execution or filing of any and all further documents, agreements,
forms, applications, contracts or consents associated with the
Initial Public Offering, (c) Wright Express’s organizational
documents, (d) the preparation, printing and filing of the IPO S-1,
including all fees and expenses of complying with applicable
federal, state or foreign securities laws and domestic or foreign
securities exchange rules and regulations, together with fees and
expenses of counsel retained to effect such compliance, (e) the
preparation, printing and distribution of each of the prospectuses
for the Initial Public Offering, (f) the initial listing of the
Common Stock on the New York Stock Exchange and (g) the
preparation, prior to the Closing Date, of the documentation
related to implementing Wright Express’s employee benefit
plans, retirement plans and equity-based plans as a result of the
Initial Public Offering and (ii) the Preferred Stock Placement.
Notwithstanding the foregoing, Cendant shall not be responsible for
the payment of any costs and expenses (including, without
limitation, legal fees) incurred by Wright Express in connection
with any exercise by the underwriters in the Initial Public
Offering of their option to purchase additional shares of Common
Stock, the Debt Financing or separate review by counsel, other than
Skadden, Arps, Slate, Meagher & Flom LLP, of the plans referred
to in (g) above.
5
ARTICLE III
MUTUAL OBLIGATIONS;
COVENANTS
Section 3.1 Legal
Actions.
(a) Within five Business Days
of any Party becoming a party to, or threatened with, or otherwise
receives notice of, any legal or regulatory proceeding or
investigation (including inquiries or complaints from any federal
agency, state attorney general’s office, from a legislator on
behalf of a constituent or from any Better Business Bureau or
similar organization) (in each case, a “ Proceeding
“) arising out of or in connection with the Services provided
hereunder, it is agreed that such Party will promptly provide
written notification of such event to the other Party and, to the
extent reasonably requested or appropriate, the other Party will
cooperate with such Party to defend, settle, compromise or
otherwise resolve such Proceeding; provided that any costs
incurred by the other Party related to its cooperation shall be
borne by the Party against whom the Proceeding has been brought if
it is determined that such Party has been negligent or engaged in
willful misconduct.
(b) No Party shall have the
authority to institute, prosecute or maintain any Proceeding on
behalf of the other Party without the prior written consent of the
other Party.
(c) This Section 3.1 shall
not apply to the extent provided otherwise by the provisions of
Article IV or Article VIII.
Section 3.2 Providing
Periodic Reports . Cendant Operations will provide, upon
reasonable written notice, such periodic reports with respect to
the Services it provides hereunder as are reasonably requested by
Wright Express, including such reports as are specified in Exhibit
A.
Section 3.3 Public
Announcements . Neither Cendant Operations nor Wright Express
shall issue a press release or other public announcement making
reference to the other Party, the other Party’s products or
the Services provided hereunder, other than in the Registration
Statement or Prospectus or otherwise required by law, unless such
Party has received the written approval of the other Party with
respect to the proposed text of such press release or announcement,
which approval shall not be unreasonably withheld or delayed, and
neither Party shall make or publish any statement that is, or may
be reasonably considered to be, disparaging of the other Party or
its affiliates, directors, employees, products or
services.
Section 3.4 Means of
Providing Services . With respect to any particular Service(s)
to be provided hereunder, Cendant Operations shall, unless
otherwise specified in Exhibit A, determine the means and resources
used to provide such Service(s) in accordance with its prudent
business judgment; provided that Cendant Operations shall not take
any action with respect to its provision of such Service(s)
that
6
materially increase the cost to Wright
Express, except as required to provide such Services, or that
significantly disrupt Wright Express operations or materially
increase the scope of its responsibility under this
Agreement.
Section 3.5 Further
Assurances . Each of Cendant Operations and Wright Express
shall execute and deliver such further documents and shall take
such other actions as each of them may reasonably request of the
other as may be necessary to effect or enable the provision of the
Services contemplated hereunder.
ARTICLE IV
TAX MATTERS
Section 4.1 Service
Taxes . Wright Express shall pay or cause to be paid all sales,
service, valued added, use, excise, occupation, and other similar
taxes and duties (together in each case with all interest,
penalties, fines and additions thereto) that are assessed against
either party on the provision of Services as a whole, or any
particular Service (including with respect to amounts paid by
Cendant to third parties), including Additional Services, received
by Wright Express or any of its Subsidiaries from Cendant or any of
its Affiliates pursuant to the terms of this Agreement
(collectively, “Service Taxes”). If required under
applicable law (or, in the case of Service Taxes relating to
amounts paid by Cendant to third parties), Cendant shall invoice
Wright Express for the full amount of all Service Taxes, and Wright
Express shall pay, in addition to the other amounts required to be
paid pursuant to the terms of this Agreement, such Service Taxes to
Cendant.
Section 4.2 Limitation of
Damages . Notwithstanding anything to the contrary contained in
this Agreement, Cendant shall not be liable for any claim in
respect of Services relating to Taxes or Tax Returns of Wright
Express or any of its Subsidiaries (including those Services
provided by Cendant to Wright Express or any of its Subsidiaries
set forth in the relevant Exhibits), except to the extent that such
claim arises from the willful misconduct or gross negligence of
Cendant (except those Services set forth in Exhibit
A-2).
ARTICLE V
ACCESS TO INFORMATION,
PERSONNEL AND HISTORICAL RECORDS
Section 5.1 Information
and Personnel Shared Historical Records . Within 30 days of the
Effective Date, Cendant shall deliver to Wright Express copies of
all historical records, including but not limited to, the books,
records, and such other records, files, information and/or data, or
portions thereof (the “ Records ”), related
primarily to the business of Wright Express. The provision of any
Records shall not be deemed a waiver of any Privilege and the
parties shall use reasonable efforts to maintain and protect such
Privileges with reasonable prior notice and in consultation with
the other parties.
7
Section 5.2 Access to
Information . Subject to the confidentiality provisions set
forth in Article VI below and any other restrictions contained in
this Agreement:
(a) Cendant and Wright
Express shall provide, upon written request, any information within
such Party’s possession that the requesting Party reasonably
needs (i) to comply with requirements imposed on the requesting
Party by a governmental authority; (ii) for use by such requesting
Party in any proceeding or to satisfy audit, accounting, tax or
similar requirements; or (iii) to comply with such requesting
Party’s obligations under this Agreement or any other
agreement executed by Cendant and Wright Express in connection with
this Agreement or the Initial Public Offering.
(b) Wright Express shall
provide to Cendant, at no expense to Cendant, all financial and
other data and information that Cendant determines is necessary and
advisable in the preparation of Cendant’s financial
statements and any reports or filings with any governmental
agency.
Section 5.3 Litigation
Cooperation . The Parties agree to the extent reasonably
necessary to cooperate and consult in the defense and settlement of
any threatened or filed third-party action, claim or dispute which
jointly involves Cendant or Wright Express or any of their
Subsidiaries (“ Third Party Action ”) which
primarily relates to matters, actions, events or occurrences taking
place prior to the Closing Date. In addition, both Cendant and
Wright Express will use their reasonable best efforts to provide
assistance to the other Party with respect to any Third Party
Action, and to make available to the other Party directors,
officers, other employees and agents of such assisting Party as
witnesses in legal, administrative or other proceedings. The Party
providing information, consulting or witness services under this
Section 5.3 shall be entitled to reimbursement from the other Party
for reasonable and documented expenses. This Section 5.3 shall not
apply to the extent provided otherwise by the provisions of Article
IV or Article VIII.
Section 5.4 Attorney
Client Privilege . Neither Cendant nor Wright Express will be
required to provide any information pursuant to this Agreement if
the provision of such information would serve as a waiver of any
Privilege afforded such information.
ARTICLE VI
CONFIDENTIALITY
Section 6.1 Confidential
Information . For purposes of this Agreement,
“Confidential Information“ means any information
disclosed by a Party (the “ Providing Party “)
to the other Party (the “ Receiving Party “)
pursuant to this Agreement relating to the business, finances,
technology or operations of the Providing Party. The Receiving
Party will (a) treat as confidential all Confidential Information
of the Providing
8
Party, (b) not use such Confidential
Information except to exercise its rights and perform its
obligations under this Agreement, and (c) not disclose such
Confidential Information to any third party. Each Party will use at
least the same degree of care (and not less than a reasonable
degree of care) it uses to prevent the disclosure of its own
confidential information of like importance, to prevent the
disclosure of the Providing Party’s Confidential Information
including the execution of confidentiality agreements with its
employees and consultants having access to such Confidential
Information. Each Receiving Party will promptly notify the
Providing Party of any actual or suspected misuse or unauthorized
disclosure of the Providing Party’s Confidential
Information.
Section 6.2 Exceptions
. Confidential Information excludes information that: (a) was in
the public domain at the time it was disclosed or has become in the
public domain through no fault of the Receiving Party; (b) becomes
known to the Receiving Party through lawful means, at the time of
disclosure, and was acquired by such Receiving Party after the
Effective Date as demonstrated by the Receiving Party; (c) was
independently developed by the Receiving Party without any use of
the Confidential Information; or (d) becomes known to the Receiving
Party, without restriction, from a source other than the Providing
Party; provided that such information was provided (i) under the
circumstances of disclosure that the Receiving Party does not have
a duty of non-disclosure owed to such third party, (ii) to the
Receiving Party’s knowledge, the disclosing party’s
disclosure is not violative of a duty of non-disclosure owed to
another, including the Receiving Party, and (iii) the disclosure by
the third party is not otherwise unlawful. In the event that the
Receiving Party, or any of its representatives, becomes legally
compelled by deposition, interrogatory, request for documents,
subpoena, civil investigative demand or similar judicial or
administrative process to disclose any Providing Party’s
Confidential Information, the Receiving Party shall provide prompt
prior written notice of such requirement and cooperate with the
Providing Party to obtain a protective order or similar remedy to
cause the Providing Party’s Confidential Information not to
be disclosed, including interposing all available objections
thereto. In the event that such protective order or other similar
remedy is not obtained, the Receiving Party shall furnish only that
portion of the Providing Party’s Confidential Information
that has been legally compelled and shall exercise commercially
reasonable efforts to obtain assurance that “highly
confidential“ treatment will be accorded such Confidential
Information.
Section 6.3 Additional
Responsibilities . Each Party will inform its employees, agents
and consultants having access to Confidential Information of the
other Party of the confidentiality provisions hereof, and will
diligently enforce such provisions, and will be responsible for
actions of such employees, agents and consultants in this
respect.
ARTICLE VII
DISCLAIMER AND LIMITATION OF
LIABILITY
Section 7.1 Disclaimer of
Warranties . CENDANT OPERATIONS MAKES NO REPRESENTATIONS OR
WARRANTIES WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE
SERVICES TO BE PROVIDED UNDER THIS AGREEMENT.
9
Section 7.2 Limitation of
Consequential Damages . NO PARTY SHALL UNDER ANY CIRCUMSTANCES
BE LIABLE TO ANY OTHER PARTY FOR ANY SPECIAL, INDIRECT, INCIDENTAL,
PUNITIVE OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF PROFITS OR
REVENUE) RESULTING OR ARISING FROM THE SERVICES, ANY PERFORMANCE OR
NONPERFORMANCE OF THE SERVICES OR TERMINATION OF THE SERVICES. THIS
LIMITATION APPLIES REGARDLESS OF WHETHER SUCH DAMAGES OR OTHER
RELIEF ARE SOUGHT BASED ON BREACH OF WARRANTY, BREACH OF CONTRACT,
NEGLIGENCE, STRICT LIABILITY IN TORT, OR ANY OTHER LEGAL OR
EQUITABLE THEORY.
ARTICLE VIII
BUSINESS AND REGISTRATION
STATEMENT INDEMNIFICATION
Section 8.1 General Cross
Indemnification .
(a) Cendant agrees to
indemnify and hold harmless Wright Express and each of the
officers, directors, employees and agents of Wright Express against
any and all costs and expenses arising out of third party claims
(including, without limitation, attorneys’ fees, interest,
penalties and costs of investigation or preparation for defense),
judgments, fines, losses, claims, damages, liabilities, demands,
assessments and amounts paid in settlement (collectively, “
Losses ”), in each case, based on, arising out of,
resulting from or in connection with any claim, action, cause of
action, suit, proceeding or investigation, whether civil, criminal,
administrative, investigative or other (collectively, “
Actions ”), based on, arising out of, pertaining to or
in connection with the operation or conduct of the business of
Cendant, whether before, on or after the date hereof, other than
the business of Wright Express, its Subsidiaries or its
predecessors.
(b) Wright Express agrees to
indemnify and hold the Cendant Group and their officers, directors,
employees and agents against any and all Losses, in each case,
based on, arising out of, resulting from or in connection with any
Actions, based on, arising out of, pertaining to or in connection
with (i) any breach by Wright Express of this Agreement or any
other agreement between Cendant and Wright Express executed in
connection with this Agreement, the Initial Public Offering and the
Preferred Stock Placement, (ii) the ownership or the operation of
the assets or properties, and the operation or conduct of the
business of, including contracts entered into and any activities
engaged in by, Wright Express and its Subsidiaries, whether before,
on or after the date hereof, including with respect to any pending
litigation against the Cendant Group with respect thereto as of the
date, (iii) any acts or omissions arising out of the performance of
this Agreement or any other agreement between the Cendant Group and
Wright Express executed in connection with this Agreement, the
Initial Public Offering and the Preferred
10
Stock Placement, whether in the past or
future and (iv) any guaranty, keepwell or financial condition
maintenance agreement of or by the Cendant Group provided to any
Person with respect to any actual or contingent obligation of
Wright Express or any of its Subsidiaries.
(c) The indemnity agreement
contained in Sections 8.1(a) and (b) shall be applicable whether or
not any Action or the facts or transactions giving rise to such
Action arose prior to, on or subsequent to the date of this
Agreement.
Section 8.2 Registration
Statement Indemnification .
(a) Wright Express agrees to
indemnify and hold harmless Cendant and its officers, directors,
employees and agents (collectively, the “ Registration
Indemnitees ”) from and against any and all Losses
arising out of or based upon any untrue statement or alleged untrue
statement of a material fact contained in any Offering Document, or
arising out of or based upon any omission or alleged omission to
state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except
insofar as such Losses arise out of or are based upon any untrue
statement or omission or alleged untrue statement or omission which
has been made therein or omitted therefrom in reliance upon and in
conformity with (i) information relating to Cendant (other than the
Wright Express business) furnished in writing to Wright Express by
Cendant relating to information specifically about Cendant (other
than the Wright Express business) in any Offering Document
expressly for use in such Offering Document and (ii) information
relating to any underwriter furnished in writing to Wright Express
by or on behalf of such underwriter expressly for use in such
Offering Document.
(b) Cendant agrees to
indemnify and hold harmless Wright Express and its officers,
directors, employees and agents, to the same extent as the
foregoing indemnity from Wright Express to each Registration
Indemnitee, but only with respect to (i) information relating to
Cendant (other than the Wright Express business) furnished in
writing to Wright Express by Cendant relating to information
specifically about Cendant (other than the Wright Express business)
expressly for use in any Offering Document. For purposes of this
Section 8.2(b), any information relating to any underwriter that is
contained in an Offering Document shall not be deemed to be
information relating to a Registration Indemnitee. If any Action
shall be brought against Wright Express, any of its directors,
officers, employees or agents, based on any Offering Document and
in respect of which indemnity may be sought against a Registration
Indemnitee pursuant to this paragraph (b), such Registration
Indemnitee shall have the rights and duties given to Wright Express
by Section 8.4 hereof (except that if Wright Express shall have
assumed the defense thereof such Registration Indemnitee shall not
be required to do so, but may employ separate counsel therein and
participate in the defense thereof, but the fees and expenses of
such counsel shall be at such Registration Indemnitee’s
expense), and Wright Express, its officers, directors, employees
and agents shall have the rights and duties given to such
Registration Indemnitee by Section 8.4 hereof.
11
Section 8.3
Contribution .
(a) If the indemnification
provided for in this Article VIII is unavailable to an indemnified
party under Section 8.2 hereof in respect of any Losses referred to
therein, then an indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable
by such indemnified party as a result of such Losses in such
proportion as is appropriate to reflect the relative fault of
Wright Express on the one hand and the applicable Registration
Indemnitee on the other in connection with the statements or
omissions that resulted in such Losses. The relative fault of
Wright Express on the one hand and the applicable Registration
Indemnitee on the other hand shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by Wright Express on
the one hand or by such Registration Indemnitee on the other hand
and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or
omission.
(b) No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent
misrepresentation.
Section 8.4 Procedure
. If any Action shall be brought against a Registration Indemnitee
or any other person entitled to indemnification pursuant to this
Article VIII (collectively with the Registration Indemnitees, the
“Indemnitees”) in respect of which indemnity may be
sought against Wright Express, such Indemnitee shall promptly
notify Wright Express, and Wright Express shall assume the defense
thereof, including the employment of counsel and payment of all
fees and expenses. Such Indemnitee shall have the right to employ
separate counsel in any such action, suit or proceeding and to
participate in the defense thereof, but the fees and expenses of
such counsel shall be at the expense of such person unless (i)
Wright Express has agreed in writing to pay such fees and expenses,
(ii) Wright Express has failed to assume the defense and employ
counsel, or (iii) the named parties to an Action (including any
impleaded parties) include both an Indemnitee and Wright Express
and such Indemnitee shall have been advised by its counsel that
representation of such indemnified party and Wright Express by the
same counsel would be inappropriate under applicable standards of
professional conduct (whether or not such representation by the
same counsel has been proposed) due to actual or potential
differing interests between them (in which case Wright Express
shall not have the right to assume the defense of such Action on
behalf of such Indemnitee). It is understood, however, that Wright
Express shall, in connection with any one such Action or separate
but substantially similar or related Actions in the same
jurisdiction arising out of the same general allegations or
circumstances, be liable for the reasonable fees and expenses of
only one separate firm of attorneys (in addition to any local
counsel) at any time for all such indemnified persons not having
actual or potential differing interests among themselves, and that
all such fees and expenses shall be reimbursed as they are
incurred. Wright Express shall not be liable for any settlement of
any such Action effected without its written consent, but if
settled with such written consent, or if there be a final judgment
for the plaintiff in any such Action, Wright
12
Express agrees to indemnify and hold
harmless each Indemnitee, to the extent provided in the preceding
paragraph, from and against any Losses by reason of such settlement
or judgment.
Section 8.5 Other
Matters .
(a) No indemnifying party
shall, without the prior written consent of the indemnified party,
effect any settlement of any pending or threatened Action in
respect of which any indemnified party is or could have been a
party and indemnity could have been sought hereunder by such
indemnified party, unless such settlement includes an unconditional
release of such indemnified party from all liability on claims that
are the subject matter of such Action.
(b) Any Losses for which an
indemnified party is entitled to indemnification or contribution
under this Article VIII shall be paid by the indemnifying party to
the indemnified party as such Losses are incurred. The indemnity
and contribution agreements contained in this Article VIII shall
remain operative and in full force and effect, regardless of (i)
any investigation made by or on behalf of any Indemnitee, Wright
Express, its directors, officers, employees or agents and (ii) any
termination of this Agreement.
(c) The parties hereto shall,
and shall cause their respective subsidiaries to, cooperate with
each other in a reasonable manner with respect to access to
unprivileged information and similar matters in connection with any
Action. The provisions of this Article VIII are for the benefit of,
and are intended to create third party beneficiary rights in favor
of, each of the indemnified parties referred to herein.
(d) Wright Express agrees to
reimburse Cendant and its Subsidiaries for all costs associated
with subpoenas for discovery, including e-discovery, in connection
with any suit, proceeding or investigation against Wright Express
and any of its Subsidiaries.
ARTICLE IX
OTHER PROVISIONS
Section 9.1 Records .
Cendant Operations agrees to maintain accurate records arising from
or related to any Services provided hereunder, including accounting
records and documentation produced in connection with the rendering
of any Services. Cendant Operations accounting records shall be
reasonably sufficient to permit the computation and verification of
all payments due hereunder.
Section 9.2 Inspection
Rights . During the Term and for 60 days thereafter, Cendant
Operations shall, upon 20 days’ prior written notice from
Wright Express, permit Wright Express or its authorized
representatives to inspect and audit Cendant Operations records
relating to the Services during regular business hours; provided
that Wright Express shall comply with Cendant Operations reasonable
security and safety procedures as such procedures are
communicated
|