Company: PAYX
Filing Date: 2025-01-07
Form Type: 8-K
Source: 0000950103-25-000267
Chunk: 2

Company: PAYCHEX INC
Filing Date: 2025-01-07
Form: 8-K
Item: Item 1.01
Chunk 2
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 contains certain termination
rights for each of Paychex and Paycor, including the right of each party to terminate the Merger Agreement if the Merger has not been
consummated on or before October 7, 2025.

The Merger Agreement contains
customary representations and warranties by each party. The parties have also agreed to various customary covenants and agreements, including,
among others, for Paycor to conduct, subject to certain exceptions, its business in the ordinary course consistent with past practice
during the period between the execution of the Merger Agreement and the Closing. The Merger Agreement also prohibits Paycor’s solicitation
of proposals relating to alternative transactions and restricts Paycor’s ability to furnish information to, or participate in any
discussions or negotiations with, any third party with respect to any such transaction.

In connection with, and concurrently
with the entry into the Merger Agreement, Paychex entered into a commitment letter (the “ Commitment Letter”) with JPMorgan
Chase Bank, N. A. (the “Bank”) pursuant to which the Bank has committed, subject to customary conditions, to provide
Paychex with 100% of the loans under a 364-day unsecured bridge term loan facility in an amount not to exceed $3.5 billion (the “ Bridge
Loan Facility”). The Bridge Loan Facility will be reduced by an equivalent amount of the net cash proceeds of the issuance by
Paychex of debt, equity or equity-linked securities in a public offering or private placement or the disposition of assets prior to the
consummation of the Transactions and upon other specified events, subject to certain exceptions set forth in the Commitment Letter. The
funding of the Bridge Loan Facility is subject to the satisfaction of certain customary conditions.

The foregoing description
of the Merger Agreement does not purport to be complete, and is qualified in its entirety by reference to the full text of the Merger
Agreement, which is attached hereto asExhibit 2.1and is incorporated herein by reference. The Merger Agreement has been attached
to provide investors with information regarding its terms. It is not intended to provide any other factual information about Paychex or
any of the other parties to the Merger Agreement. In particular, the assertions embodied in the representations and warranties contained
in the Merger Agreement are qualified by information in confidential disclosure schedules provided by the parties in connection with the
signing of the Merger Agreement. These confidential