Credit Suisse Investment Banking Pitch Book
CONFIDENTIAL
Preliminary Summary of Transaction Terms (Cont'd)
TERM
Fees and Expenses
Funds Guarantee
SUMMARY DESCRIPTION
▸ Solar shall pay Merger Co's expenses, up to $25 million, if Merger Co terminates due to the
breach of a Solar representation, warranty or covenant
▸
Solar shall pay Merger Co a termination fee of $300 million if
CREDIT FIRST
SUISSE BOSTON
.
.
Merger Co terminates due to the breach of a Solar representation, warranty or covenant, or
either party terminates due to the failure to obtain the required stockholder approval, and (a)
at or prior to the time of termination a competing proposal has been publicly announced that
appears to have been bona fide and (b) no later than 12 months after such termination, Solar
submits to its stockholders, enters into or completes a competing proposal
.
Merger Co terminates due to the occurrence of a Board Termination Act, or Solar terminates
to accept a superior proposal, unless, in either case, such termination is in connection with
the sale of Solar's availability services business, in which case the termination fee shall be
$200 million
▸ Merger Co shall pay Solar a termination fee of $300 million if
Solar terminates due to the breach of a Merger Co representation, warranty or covenant
Solar terminates due to the failure to consummate the Merger by September 15, 2005,
unless the financing marketing period has not ended before August 19, 2005, then by
October 10, 2005, and Merger Co's conditions to close have been satisfied; or
All the conditions to the obligations of Merger Co to close have been satisfied, and the
Merger is not consummated on the last day of the financing marketing period
▸ The Funds affiliated with Merger Co will, on a several basis, provide separate guarantees for the
obligations and liabilities of Merger Co under the Merger Agreement, up to their pro rata share of
$300 million
Source: Based on Shearman and Sterling draft as of March 26, 2005.
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