EX-99.(D)(2)(III) 2 f58088a7exv99wxdyx2yxiiiy.htm EX-(D)(2)(III) exv99wxdyx2yxiiiy
Exhibit (d)(2)(iii)
AMENDMENT NO. 1 TO ROLLOVER AGREEMENT
     This Amendment No. 1 (this “Amendment No. 1”) to that certain Rollover Agreement, dated as of January 18, 2011 (the “Rollover Agreement”), by and between Ray Holding Corporation, a Delaware corporation (the “Company”) and Hsi Family Trust (the “Investor”), is made and entered into as of May 31, 2011 by and between the Company and the Investor. All capitalized terms that are used in this Amendment No. 1 but not defined in this Amendment No. 1 shall have the respective meanings ascribed thereto in the Rollover Agreement.
     A. On May 24, 2011, Parent, Merger Sub and the Company entered into Amendment No. 4 to the Merger Agreement (“Amendment No. 4 to the Merger Agreement”).
     B. On May 25, 2011, Parent and the Chen Family Trust DTD 5/8/2001 entered into Amendment No. 2 to the Rollover Agreement between Parent and the Chen Family Trust DTD 5/8/2001, dated January 18, 2011, as amended by Amendment No. 1 dated May 17, 2011 (the “Chen Trust Rollover Agreement”), and the Chen Family Trust DTD 5/8/2001 and Parent are concurrently herewith entering into Amendment No. 3 to the Chen Trust Rollover Agreement.
     C. Concurrently herewith, the Sponsors are entering into Amendments No. 1 to the Equity Commitment Letters by and between the Sponsors, the Company and Merger Sub (the “ECL Amendments No. 1”).
     D. In connection with Amendment No. 4 to the Merger Agreement, Amendments No. 2 and No. 3 to the Chen Trust Rollover Agreement, and the ECL Amendments No. 1, the Investor and the Company desire to enter into this Amendment No. 1, and the Investor believes it is in its best interests to enter into this Amendment No. 1 and consummate the transactions contemplated hereby, by the Rollover Agreement and by the Merger Agreement.
     Now, Therefore, the parties hereto hereby agree as follows:
     1. Capitalization of the Company.
     Exhibit F to the Rollover Agreement is hereby amended and restated in its entirety and replaced by Exhibit A to this Amendment No. 1.
     2. Rollover Agreement References. The parties hereto hereby agree that all references to the “Agreement” set forth in the Rollover Agreement (including, without limitation, in the representations and warranties of the parties set forth therein) shall be deemed to be references to the Rollover Agreement as amended by this Amendment No. 1.
     3. Full Force and Effect. Except as expressly amended or modified hereby, the Rollover Agreement and the agreements, documents, instruments and certificates among the

 


 

parties hereto as contemplated by, or referred to, in the Rollover Agreement shall remain in full force and effect without any amendment or other modification thereto.
     4. Counterparts. This Amendment No. 1 may be executed in several counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. The exchange of a fully executed Amendment No. 1 (in counterparts or otherwise) by facsimile shall be sufficient to bind the parties to the terms and conditions of this Amendment No. 1.
[Remainder of page intentionally left blank]

 


 

In Witness Whereof, the parties have executed this Amendment No. 1 as of the date first written above.
         
  Ray Holding Corporation
 
 
  By:   /s/ David Baylor    
    Name:   David Baylor   
    Title:   President   
 
  HSI FAMILY TRUST
 
 
  By:   /s/ Peter Hsi    
    Peter Hsi   
       
  By:   /s/ Sandy Hsi    
    Sandy Hsi   
       
Amendment No. 1 Signature Page

 


 

         
Exhibit A
EXHIBIT F
CAPITALIZATION OF COMPANY
         
Investor   Pro Rata Portion  
Vector Capital IV, L.P.
  TBD 1
Vector Capital III, L.P.
  TBD 2
Vector Capital Entrepreneur Fund III, L.P.
  TBD 3
Profit Spring Investments Limited
    9.58 %
Chen Family Trust DTD 5/8/2001
  TBD 4
Hsi Family Trust
  TBD 5
     The following illustrative example assumes the following sources and uses:
         
    Sources and Uses  
    (in millions)  
Purchase Price
  $ 133.34  
Plus: Company Debt At Close
    1.81  
Less: Cash At Close
    (8.94 )
 
     
Enterprise Value
    126.21  
 
       
Plus: Cash on Company Balance Sheet
  $ 5.00  
Plus: Total Fees
    5.65  
Less: Borrowed Debt
    (30.00 )
 
     
Total Outstanding Closing Equity
  $ 106.86  
 
1   To equal the percentage obtained by multiplying (a) the amount obtained by dividing (i) an amount equal to (A) the Total Outstanding Closing Equity plus (B) the product of (x) the Merger Consideration multiplied by (y) the number of Transferable Shares (the sum of (a)(i)(A) and (a)(i)(B) being the “Closing Equity”) minus (C) the product of (x) the aggregate number of Rollover Shares multiplied by (y) the Merger Consideration (the “Rollover Share Value”) minus (D) 9.58% of the Closing Equity (the “PSIL Share Value”), by (ii) the Closing Equity and (b) 49.4%.
 
2   To equal the percentage obtained by multiplying (a) the amount obtained by dividing (i) an amount equal to (A) the Closing Equity minus (B) the Rollover Share Value minus (C) the PSIL Share Value, by (ii) the Closing Equity and (b) 49.4%.
 
3   To equal the percentage obtained by multiplying (a) the amount obtained by dividing (i) an amount equal to (A) the Closing Equity minus (B) the Rollover Share Value minus (C) the PSIL Share Value, by (ii) the Closing Equity and (b) 1.2%.
 
4   To equal the percentage obtained by dividing (a) an amount equal to the product of (i) the Merger Consideration multiplied by (ii) 10,701,525 shares of common stock, by (b) the Closing Equity.
 
5   To equal the percentage obtained by dividing (a) an amount equal to the product of (i) the Merger Consideration multiplied by (ii) 2,691,332 shares of common stock, by (b) the Closing Equity.

 


 

                                                 
                            % CSE   % CSE    
    Preferred   Common   Common   Ownership   Ownership   $ Value of
    ($1,000/share)   ($.01/share)   Equivalents   (w/pool)   (w/o pool)   Investment
 
Vector Capital III, L.P.
    32,596       32,925,359       32,925,359       28.17 %     31.30 %   $ 32,925,359  
Vector Capital IV, L.P.
    32,596       32,925,359       32,925,359       28.17 %     31.30 %   $ 32,925,359  
Vector Entrepreneur Fund III, L.P.
    792       799,806       799,806       0.68 %     0.76 %   $ 799,806  
Profit Spring Investments Limited
    9,975       10,075,905       10,075,905       8.62 %     9.58 %   $ 10,075,905  
 
                                               
Rollover Holders
    29,833       30,133,928       30,133,928       24.37 %     27.07 %   $ 30,133,928  
Management Pool (10%)
            11,873,373       11,873,373       10.00 %                
     
 
                                               
 
    105,792       118,733,730       118,733,730       100.00 %     100.00 %   $ 106,860,357