Company: WHWK
Filing Date: 2025-01-21
Form Type: PREM14A
Source: 0001193125-25-009599
Chunk: 88

Company: Whitehawk Therapeutics, Inc.
Filing Date: 2025-01-21
Form: PREM14A
Chunk 88
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 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 any
increase to the base purchase price.

On December 13, 2024, representatives of Wilson Sonsini, Leerink Partners and Aadi management met to discuss
the “package” proposal received from McDermott to resolve outstanding issues under the Divestiture Agreement related to indemnification and the escrow fund, and Aadi determined such terms would be acceptable if the size of the escrow fund
were reduced to $5 million. Following such discussion, representatives of Wilson Sonsini relayed such determination to McDermott.

On December 13,
2024, representatives of Aadi’s management team further discussed with representatives of Bidder B matters related to Bidder B’s proposed closing conditions requiring amendments and negotiations of third