Company: WHWK
Filing Date: 2025-01-31
Form Type: DEFM14A
Source: 0001193125-25-018470
Chunk: 87

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-31
Form: DEFM14A
Chunk 87
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 On that same day, representatives of McDermott
shared with representatives of Wilson Sonsini a draft of the form of Support Agreement.

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On December 12, 2024, representatives of Wilson Sonsini provided to representatives of McDermott a
revised draft of the Divestiture Agreement and also a draft of the seller disclosure letter under the Divestiture Agreement. Among other things, the revised draft of the Divestiture Agreement proposed a termination fee equal to $2.7 million; an
escrow fund (in an unspecified amount) to satisfy potential claims by Kaken for both indemnification and purchase price adjustments; and a revised closing condition related to the Pre-Closing Restructuring,
making such closing condition subject to certain proposed materiality qualifications to ensure a greater certainty of closing. On that same day, representatives of McDermott delivered to representatives of Wilson Sonsini a draft of the form of
Restricted Covenant Agreement (the “Restricted Covenant Agreement”) proposed to be signed by Aadi and certain of its officers. Also on that same day, representatives of Wilson Sonsini and McDermott met via videoconference to discuss the
most recent Divestiture Agreement draft and related issues. Promptly following such discussion, McDermott communicated to Wilson Sonsini a “package” proposal to resolve outstanding issues under the Divestiture Agreement related to
indemnification and the escrow fund. Under such proposal, among other things, Kaken would procure a RWI policy (the cost of which would be shared 50/50 between Kaken and Aadi); the amount of the escrow fund would be reduced to 7.5% of the base
purchase price (with no separate escrow fund for purchase price adjustments); the duration of the escrow fund would be 12 months, subject to claims; and Aadi’s maximum exposure for breaches of representations and warranties (other than
fundamental representations and warranties) would be 50% of the retention amount under the RWI policy.

On December 12, 2024, representatives of
Bidder B also shared with representatives of Leerink Partners a revised draft of the Bidder B APA. Among other things, the revised draft proposed a termination fee of 4.25% of the base purchase price and a full equity backstop of the purchase price,
and substantially restored the closing conditions requiring amendments and negotiations of third party agreements. Representatives of Leerink Partners subsequently confirmed with representatives of Bidder B that Bidder B had not proposed