Company: CIO
Filing Date: 2025-09-08
Form Type: DEFM14A
Source: 0001193125-25-198418
Chunk: 53

Company: City Office REIT, Inc.
Filing Date: 2025-09-08
Form: DEFM14A
Chunk 53
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 continuing to work in good faith to
the complete the transaction contemplated by, and on the terms set forth in, the April 22 Letter, which by the terms of the Exclusivity Agreement, automatically extended the exclusivity period under the Exclusivity Agreement by an additional 30
days.

From May 30, 2025 through the signing of the Merger Agreement on July 23, 2025, the Company continued to provide additional customary due
diligence information to Morning Calm and Elliott and their advisors, coordinated due diligence calls and made members of the Company’s senior management available to such parties to address their questions.

On June 2, 2025, Gibson, Dunn & Crutcher LLP (“Gibson Dunn”), Parent’s legal counsel, provided an initial draft of the
proposed Merger Agreement to DLA Piper. The draft Merger Agreement contemplated, among other things, (a) an all-cash Merger, (b) a “no-shop” covenant, with a yet-to-be quantified termination fee if we terminated the Merger Agreement to accept a superior proposal, (c) a yet-to-be quantified reverse termination fee tied to our right to either terminate the Merger Agreement and receive the fee or pursue specific performance, in each instance, assuming that all requisite
conditions were satisfied or waived, (d) a covenant that we would not be permitted to obtain or modify any indebtedness of the Company during the period between signing the Merger Agreement and closing the Merger and (e) a closing
condition whereby the Company would be required to obtain the consent of certain lenders tied to a to-be-provided schedule of property-level loan documents.

On June 7, 2025, the Board held a meeting, which was attended by members of the Company’s senior management. Management provided an update on their
recent discussions with Morning Calm and Elliott, including the status of due diligence and Morning Calm’s and Elliott’s negotiation of a commitment letter for the debt financing, as well as a proposed limited guarantee from Elliott
backstopping the reverse termination fee and an Equity Commitment Letter (as defined herein) from the same parties, and discussed next steps in the process. Management then reviewed the material open points on the draft of the proposed Merger
Agreement, including the requested scope of lender consents as a closing condition, the Company’s proposed non-solicitation requirements, the size of the reverse termination fee and the proposed timing for the closing of the Mer