Document:

exv10w1

 

EXHIBIT 10.1

AGREEMENT TO SET EXCHANGE RATIO

     This AGREEMENT TO SET EXCHANGE RATIO (the “Exchange Ratio Agreement”) is
made and entered on August 18, 2003, by and between Kroll Inc., a Delaware
corporation (“Acquiror”) and Factual Data Corp., a Colorado corporation
(“Target”).

RECITALS

     A.     Acquiror, Target, and Golden Mountain Acquisition Corporation, a
Colorado corporation (“Merger Sub”), entered into an Agreement and Plan of
Reorganization, dated June 23, 2003 (the “Merger Agreement”), pursuant to which
Target and Merger Sub agreed to combine into a single company through the
statutory merger of Merger Sub with and into Target (the “Merger”).

     B.     Pursuant to Section 1.6(c) of the Merger Agreement, upon consummation
of the Merger, each outstanding share of Target Common Stock is to be converted
into the right to receive the Per Share Consideration, consisting of (i) $14.00
in cash and (ii) a fraction of a share of Acquiror Common Stock equal to the
Exchange Ratio. The Exchange Ratio is calculated by dividing $3.50 by the
Average Stock Price (of Acquiror Common Stock), unless the Average Stock Price
is either greater than $29.15 or less than $23.85. The Average Stock Price has
been determined to be $23.3842.

     C.     Because the Average Stock Price is less than $23.85, the Merger
Agreement provides that Target can elect to either set the Exchange Ratio at
0.1467 or to deliver a Target’s Notice to Acquiror pursuant to Section 7.1(j)
of the Merger Agreement at or prior to 5:00 P.M. (Eastern Time) on August 19,
2003.

     D.     Section 7.1(j) of the Merger Agreement further provides that upon
receipt of the Target’s Notice, Acquiror can either (i) elect to let the Merger
Agreement terminate or (ii) agree, via an Acquiror’s Notice delivered to Target
at or prior to 5:00 P.M. (Eastern Time) on August 20, 2003, to set the Exchange
Ratio at or above the number resulting from dividing $3.50 by the Average Stock
Price.

     E.     Neither Acquiror or Target wish to terminate the Merger Agreement.
Both have agreed that pursuant to the mechanism set forth in Section 7.1(j) of
the Merger Agreement, the Exchange Ratio should be calculated by dividing $3.50
by the Average Stock Price, and should equal 0.1497.

     F.     Target and Acquiror intend (i) that by executing this Exchange Ratio
Agreement, each of Target and Acquiror shall be deemed, as of the time of the
Exchange Ratio Agreement’s complete execution, to have simultaneously delivered
to the other the Target’s Notice and the Acquiror’s Notice, and (ii) that the
Acquiror’s Notice shall be deemed to provide that the Exchange Ratio shall be
calculated by dividing $3.50 by the Average Stock Price, and shall equal
0.1497.

     NOW, THEREFORE, in consideration of the covenants and representations set
forth herein, and for other good and valuable consideration, the parties agree
as follows:

 

 

AGREEMENT

     1.     Capitalized terms used in this Exchange Ratio Agreement but not
otherwise defined herein shall have the meanings ascribed thereto in the Merger
Agreement.

     2.     Upon the complete and full execution of this Exchange Ratio Agreement
by both Acquiror and Target, and at the time thereof, the following events
shall be deemed to have simultaneously occurred:

               (a) the Target’s Notice was delivered by Target to Acquiror pursuant to
Section 7.1(j) of the Merger Agreement; and

               (b) the Acquiror’s Notice, indicating that the Exchange Ratio shall be
calculated by dividing $3.50 by the Average Stock Price and shall be set at
0.1497, was delivered by Acquiror to Target pursuant to Section 7.1(j) of the
Merger Agreement.

     3.     Pursuant to this Exchange Ratio Agreement and the Acquiror’s Notice,
the Exchange Ratio shall be calculated by dividing $3.50 by the Average Stock
Price, and shall be set at 0.1497.

     4.     All the provisions of the Merger Agreement are hereby ratified and
confirmed by the parties and shall remain in full force and effect.

     5.     This Exchange Ratio Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
shall constitute one and the same agreement. This Exchange Ratio Agreement
shall not be deemed to be effective or binding on any party until fully
executed by all parties.

     6.     The Shareholder Meeting is scheduled to be held on August 21, 2003 (the
“Meeting Date”). If the Shareholder Meeting does not occur on the Meeting
Date, this Exchange Ratio Agreement shall be vacated and be null, void, and of
no effect.

[Signature Page Follows]

2

 

     IN WITNESS WHEREOF, Target and Acquiror have caused this AGREEMENT TO SET
EXCHANGE RATIO to be executed and delivered by their respective officers
thereunto duly authorized, all on the date first written above.

	 	 	 
	 	 	
TARGET
	 
	

	 	
FACTUAL DATA CORP
	 
	 	 	
By:  /s/ J.H. Donnan

Name:   J.H. Donnan

Title:  Chief Executive Officer
	 
	
	 	 
	 
	
	 	 
	 
	 	 	
ACQUIROR
	 
	 	 	
KROLL INC.
	 
	
	 	 
	 
	
	 	 
	 
	 	 	
By:  /s/ Michael Cherkasky

Name:
	 
	 	 	
Title:

SIGNATURE PAGE TO AGREEMENT TO SET EXCHANGE RATIO

3<PAGE>
                                                                  EXECUTION COPY

                                                                   EXHIBIT 10.72

                                  EFG-II WAIVER

         Reference is made to (1) an Indenture, dated as of June 14, 1999,
between EFG-II, LP ("EFG-II"), as Issuer, and Bank One, National Association
("Bank One") as successor to The First National Bank of Chicago, as Indenture
Trustee and Eligible Lender Trustee; (2) a Master Servicing Agreement, dated as
of June 14, 1999, between EFG-II, as Issuer, Academic Management Services Corp.
("AMS") as successor to EFG Technologies, Inc. ("EFG Technologies"), as Master
Servicer, and Bank One as successor to The First National Bank of Chicago, as
Eligible Lender Trustee; (3) an Insurance Agreement, dated as of June 14, 1999
between MBIA Insurance Corporation ("MBIA"), as Insurer, EFG-II, as Issuer, AMS
as successor to Educational Finance Group, Inc. ("EFG"), as Seller, AMS as
successor to EFG Technologies, as Master Servicer, EFG-II SPC-I, Inc. (the
"General Partner"), as General Partner of the Issuer, and Bank One as successor
to The First National Bank of Chicago, as Indenture Trustee and as Eligible
Lender Trustee; (4) a Purchase and Contribution Agreement, dated as of June 14,
1999, between Bank One as successor to The First National Bank of Chicago, as
EFG Eligible Lender Trustee for the benefit of AMS as successor to EFG, Bank One
as successor to The First National Bank of Chicago, as Eligible Lender Trustee
for the benefit of EFG-II, AMS as successor to EFG, as Seller, and EFG-II, as
Purchaser; and (5) the other transaction documents related thereto
(collectively, items (1) through (5), as the same may be amended or modified
from time to time, the "EFG-II Transaction Documents"). AMS, EFG-II and the
General Partner are referred to collectively as the "AMS Parties". Defined terms
used herein, and not defined herein, shall have the meanings ascribed to such
terms in the EFG-II Transaction Documents.

         Each of Bank One and MBIA hereby agree, for a period of 90 days from
the date hereof, to waive all defaults, amortization events and events of
default based solely on defaults arising prior to the date hereof and resulting
from inaccurate or untimely reporting or any other reporting deficiency by any
AMS Party under any of the EFG-II Transaction Documents; provided, however, that
such inaccurate or untimely reporting or other reporting deficiency shall not
have a material adverse effect on MBIA, Bank One, as Indenture Trustee, or the
trust created under the EFG-II Indenture; provided, further, that Bank One's
waiver hereunder shall be subject to the right of any other party (other than
MBIA) to direct Bank One to exercise any right or remedy in accordance with the
EFG-II Transaction Documents.

         No waiver by Bank One and MBIA provided herein shall remain in effect
after the expiration hereof as provided herein. Upon the expiration of this
Waiver, (i) Bank One and MBIA shall retain all of the rights and remedies
relating to the defaults and events of default (including, without limitation,
the right to pursue their rights and remedies under the EFG-II Transaction
Documents and applicable law) and (ii) all defaults and events of default shall
be reinstated and shall be in full force and effect, unless otherwise cured. It
is expressly agreed by Bank One and MBIA that the AMS Parties and all parties
related thereto shall have the ability to cure any and all defaults, events of
default, amortization events and servicer defaults in existence as of the date
hereof, regardless of whether the applicable cure period has expired.

<PAGE>

         Notwithstanding anything to the contrary herein, neither MBIA nor Bank
One waives, nor does either agree that it will waive or forbear from in the
future, any future default or future event of default.

         This Waiver may not be altered, amended, or rescinded, nor may any of
its provisions be waived, except by an instrument in writing signed by all
parties hereto or, in the case of an asserted waiver, by the party against whom
the waiver is sought to be enforced.

                            [signature page follows]

                                        2

<PAGE>

        THIS WAIVER has been duly executed by the undersigned as of the 24th day
of July, 2003.

                                       MBIA INSURANCE CORPORATION

                                       By: /s/ LISA A. WILSON
                                          -------------------------------------
                                          Name:  Lisa A. Wilson
                                          Title: Assistant Secretary

                                       BANK ONE, NATIONAL ASSOCIATION,
                                         as successor to The First National
                                         Bank of Chicago, not in its individual
                                         capacity but solely as Indenture
                                         Trustee, Eligible Lender Trustee and
                                         EFG Eligible Lender Trustee

                                       By: /s/ SANDRA WHOLER
                                          -------------------------------------
                                          Name:  Sandra Wholer
                                          Title: Vice President

                                       EFG-II, LP

                                       By: EFG-II SPC-I, Inc.,
                                           its General Partner

                                       By: /s/ JOHN M. GOMES
                                          -------------------------------------
                                          Name:  John M. Gomes
                                          Title: President

                                       ACADEMIC MANAGEMENT SERVICES CORP.

                                       By: /s/  GREGORY T. MUTZ
                                          -------------------------------------
                                          Name:  Gregory T. Mutz
                                          Title: Chairman of the Board

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