-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RgMD123XfbOftE5ejgLmXVaYpO/sYZJvvwFzqAMVm2Whya+1aCH4juOCJGE06z/m tfa3b6E6z8rdmzJtBYugbQ== 0001068238-10-000394.txt : 20101110 0001068238-10-000394.hdr.sgml : 20101110 20101110165311 ACCESSION NUMBER: 0001068238-10-000394 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 20101110 DATE AS OF CHANGE: 20101110 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: BAKBONE SOFTWARE INC CENTRAL INDEX KEY: 0000735993 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 000000000 STATE OF INCORPORATION: A6 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-80584 FILM NUMBER: 101180651 BUSINESS ADDRESS: STREET 1: 9540 TOWNE CENTRE DRIVE STREET 2: SUITE 100 CITY: SAN DIEGO STATE: CA ZIP: 92121 BUSINESS PHONE: 858450-9009 MAIL ADDRESS: STREET 1: 9540 TOWNE CENTRE DRIVE STREET 2: SUITE 100 CITY: SAN DIEGO STATE: CA ZIP: 92121 FORMER COMPANY: FORMER CONFORMED NAME: ICAN MINERALS LTD DATE OF NAME CHANGE: 20000802 FORMER COMPANY: FORMER CONFORMED NAME: ICAN RESOURCES LTD DATE OF NAME CHANGE: 19911015 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: VANTAGEPOINT VENTURE PARTNERS IV Q LP CENTRAL INDEX KEY: 0001129585 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 1001 BAYHILL DR STREET 2: STE 100 CITY: SAN BRUNO STATE: CA ZIP: 94066 BUSINESS PHONE: 6508663100 MAIL ADDRESS: STREET 1: 1001 BAY HILL DRIVE 300 CITY: SAN BRUNO STATE: CA ZIP: 94066 SC 13D/A 1 vpvp-bakbone.htm vpvp-bakbone.htm


 
UNITED STATES
 
SECURITIES AND EXCHANGE
 
COMMISSION
 
Washington, D.C. 20549
 
SCHEDULE 13D
 
Under the Securities Exchange Act of 1934
 
(Amendment No. 3)*
 
BakBone Software Incorporated

(Name of Issuer)
 
Common Shares, no par value

(Title of Class of Securities)
 
057101107

(CUSIP Number)
 
Alan E. Salzman
VantagePoint Venture Partners
1001 Bayhill Drive, Suite 300
San Bruno, CA  94066
(650) 866-3100
 
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
 
November   8, 2010

(Date of Event which Requires Filing of this Statement)
 
 
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.  o
 
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits.  See §240.13d-7 for other parties to whom copies are to be sent.
 
* The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
 
The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
 
 
 
Page 1 of 11

 

 
CUSIP No.   057101107
 
 
1.
Names of Reporting Persons.
   
 
VantagePoint Venture Partners IV (Q), L.P.
 
2.
 
Check the Appropriate Box if a Member of a Group (See Instructions)
   
(a)
 
ý
   
(b)
 
o
 
3.
 
SEC Use Only
 
4.
 
Source of Funds (See Instructions)
   
 
OO
 
5.
 
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o
 
6.
 
Citizenship or Place of Organization
   
 
Delaware
 
 
7.
Sole Voting Power
   
 
0
Number of
Shares
Beneficially
Owned by Each
Reporting Person With
8.
 
Shared Voting Power
 
 
16,294,242 (*)
9.
 
Sole Dispositive Power
 
 
0
 
10.
Shared Dispositive Power
 
 
16,294,242 (*)
 
 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
   
 
16,294,242 (*)
 
12.
 
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)o
 
13.
 
Percent of Class Represented by Amount in Row (11)
   
 
16.8%
 
14.
 
Type of Reporting Person (See Instructions)
   
 
PN
 
(*)  Includes (a) 42 shares of the Issuer's Common Stock and (b) 16,294,200 shares of the Issuer's Series A Convertible Preferred Stock, convertible at any time, at the option of the shareholder, and in certain circumstances at the option of the Issuer, into one share of the Issuer's Common Stock.
 
 
 
 
Page 2 of 11

 
 
 
CUSIP No.   057101107
 
 
1.
Names of Reporting Persons.
   
 
VantagePoint Venture Partners IV, L.P.
 
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
   
(a)
 
ý
   
(b)
 
o
 
3.
 
SEC Use Only
 
 
4.
Source of Funds (See Instructions)
   
 
OO
 
5.
 
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o
 
 
6.
Citizenship or Place of Organization
   
 
Delaware
 
 
7.
Sole Voting Power
   
 
0
Number of
Shares
Beneficially
Owned by Each
Reporting
Person With
 
8.
Shared Voting Power
 
 
1,633,237 (*)
9.
 
Sole Dispositive Power
 
 
0
 
10.
Shared Dispositive Power
   
 
1,633,237 (*)
 
 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
   
 
1,633,237 (*)
 
12.
 
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)o
 
 
13.
Percent of Class Represented by Amount in Row (11)
   
 
2.0%
 
 
14.
Type of Reporting Person (See Instructions)
   
 
PN
 
(*)  Includes (a) 37 shares of the Issuer's Common Stock and (b) 1,633,200 shares of the Issuer's Series A Convertible Preferred Stock, convertible at any time, at the option of the shareholder, and in certain circumstances at the option of the Issuer, into one share of the Issuer's Common Stock.
 
 
 
Page 3 of 11

 
 
 
CUSIP No.   057101107
 
 
 
1.
Names of Reporting Persons.
   
 
VantagePoint Venture Partners IV Principals Fund, L.P.
 
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
   
(a)
 
ý
   
(b)
 
o
 
 
3.
SEC Use Only
 
 
4.
Source of Funds (See Instructions)
   
 
OO
 
5.
 
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o
 
 
6.
Citizenship or Place of Organization
   
 
Delaware
 
 
7.
Sole Voting Power
   
 
0
Number of
Shares
Beneficially
Owned by Each
Reporting
Person With
 
8.
Shared Voting Power
 
 
72,600 (*)
 
9.
Sole Dispositive Power
 
 
0
 
10.
Shared Dispositive Power
   
 
72,600 (*)
 
 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
   
 
72,600 (*)
 
 
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)o
 
 
13.
Percent of Class Represented by Amount in Row (11)
   
 
0.1%
 
 
14.
Type of Reporting Person (See Instructions)
   
 
PN
 
(*)  Includes 72,600 shares of the Issuer's Series A Convertible Preferred Stock, convertible at any time, at the option of the shareholder, and in certain circumstances at the option of the Issuer, into one share of the Issuer's Common Stock.
 
 

 
 
 
Page 4 of 11

 
 
 
CUSIP No.   057101107
 
 
 
1.
Names of Reporting Persons.
   
 
VantagePoint Venture Associates IV, L.L.C.
 
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
   
(a)
 
ý
   
(b)
 
o
 
 
3.
SEC Use Only
 
 
4.
Source of Funds (See Instructions)
   
 
OO
 
5.
 
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o
 
 
6.
Citizenship or Place of Organization
   
 
Delaware
 
 
7.
Sole Voting Power
   
 
0
Number of
Shares
Beneficially
Owned by Each
Reporting
Person With
 
8.
Shared Voting Power
 
 
18,000,079 (*)(**)
 
9.
Sole Dispositive Power
 
 
0
 
10.
Shared Dispositive Power
   
 
18,000,079 (*)(**)
 
 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
   
 
18,000,079 (*)(**)
 
 
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)o
 
 
13.
Percent of Class Represented by Amount in Row (11)
   
 
18.3%
 
 
14.
Type of Reporting Person (See Instructions)
   
 
OO
 
(*)  Pursuant to Rule 13d-4 of the Act, the Reporting Person disclaims beneficial ownership of the securities reflected herein except to the extent of its pecuniary interest therein and declares that this Schedule 13D shall not be construed as an admission that such party is the beneficial owner of any securities covered hereby.
 
(**)  Includes (a) 79 shares of the Issuer's Common Stock and (b) 18,000,000 shares of the Issuer's Series A Preferred Stock, convertible at any time, at the option of the shareholder, and in certain circumstances at the option of the Issuer, into one share of the Issuer's Common Stock.
 
 
 
 
Page 5 of 11

 

 
CUSIP No.   057101107
 
 
 
1.
Names of Reporting Persons.
   
 
James D. Marver
 
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
   
(a)
 
ý
   
(b)
 
o
 
 
3.
SEC Use Only
 
 
4.
Source of Funds (See Instructions)
   
 
OO
 
5.
 
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o
 
 
6.
Citizenship or Place of Organization
   
 
United States
 
 
7.
Sole Voting Power
   
 
0
Number of
Shares
Beneficially
Owned by Each
Reporting
Person With
 
8.
Shared Voting Power
 
 
18,000,079 (*)(**)
 
9.
Sole Dispositive Power
 
 
0
 
10.
Shared Dispositive Power
   
 
18,000,079 (*)(**)
 
 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
   
 
18,000,079 (*)(**)
 
 
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)o
 
 
13.
Percent of Class Represented by Amount in Row (11)
   
 
18.3%
 
 
14.
Type of Reporting Person (See Instructions)
   
 
IN
 
(*)  Pursuant to Rule 13d-4 of the Act, the Reporting Person disclaims beneficial ownership of the securities reflected herein except to the extent of his pecuniary interest therein and declares that this Schedule 13D shall not be construed as an admission that such person is the beneficial owner of any securities covered hereby.
 
(**)  Includes (a) 79 shares of the Issuer's Common Stock and (b) 18,000,000 shares of the Issuer's Series A Preferred Stock, convertible at any time, at the option of the shareholder, and in certain circumstances at the option of the Issuer, into one share of the Issuer's Common Stock.
 
 
 
Page 6 of 11

 
 
 
CUSIP No.   057101107
 
 
1.
Names of Reporting Persons.
   
 
Alan E. Salzman
 
 
2.
Check the Appropriate Box if a Member of a Group (See Instructions)
   
(a)
 
ý
   
(b)
 
o
 
 
3.
SEC Use Only
 
 
4.
Source of Funds (See Instructions)
   
 
OO
 
5.
 
Check if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     o
 
 
6.
Citizenship or Place of Organization
   
 
United States
 
 
7.
Sole Voting Power
   
 
0
Number of
Shares
Beneficially
Owned by Each
Reporting
Person With
 
8.
Shared Voting Power
 
 
18,000,079 (*)(**)
 
9.
Sole Dispositive Power
 
 
0
 
10.
Shared Dispositive Power
   
 
18,000,079 (*)(**)
 
 
11.
Aggregate Amount Beneficially Owned by Each Reporting Person
   
 
18,000,079 (*)(**)
 
 
12.
Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)o
 
 
13.
Percent of Class Represented by Amount in Row (11)
   
 
18.3%
 
 
14.
Type of Reporting Person (See Instructions)
   
 
IN
 
(*)  Pursuant to Rule 13d-4 of the Act, the Reporting Person disclaims beneficial ownership of the securities reflected herein except to the extent of his pecuniary interest therein and declares that this Schedule 13D shall not be construed as an admission that such person is the beneficial owner of any securities covered hereby.
 
(**)  Includes (a) 79 shares of the Issuer's Common Stock and (b) 18,000,000 shares of the Issuer's Series A Preferred Stock, convertible at any time, at the option of the shareholder, and in certain circumstances at the option of the Issuer, into one share of the Issuer's Common Stock.

 
 
Page 7 of 11

 
 
 
Item 1.    Security and Issuer
 
This Amendment No. 3 to Schedule 13D (this "Amendment No. 3") amends and supplements the statement on Schedule 13D originally filed on June 9, 2009, as amended by Amendment No. 1 thereto filed on July 27, 2009, and as further amended by Amendment No. 2 thereto filed on September 22, 2009 (the "Original Schedule 13D" and as amended and supplemented by this Amendment No. 3, the "Schedule 13D")), on behalf of (1) VantagePoint Venture Partners IV (Q), L.P., a Delaware limited partnership ("VPVP IV Q"), (2) VantagePoint Venture Partners IV, L.P., a Delaware limited partnership ("VPVP IV"), (3) VantagePoint Venture Partners IV Principals Fund, L.P., a Delaware limited partnership  ("VPVP Principals IV" and together with VPVP IV Q and VPVP IV, the "VantagePoint Funds," and each, a "VantagePoint Fund"), (4) VantagePoint Venture Associates IV, L.L.C., a Delaware limited liability company (together with the VantagePoint Funds, the "VantagePoint Entities"), (5) James D. Marver, and (6) Alan E. Salzman (Messrs. Marver and Salzman, together with the VantagePoint Entities, the "Reporting Persons") relating to the common stock, no par value (the "Comm on Stock"), including shares of Common Stock issuable upon conversion of the Series A Preferred Stock, no par value (the "Series A Preferred Stock"), of BakBone Software Incorporated, a corporation incorporated under the laws of Canada (the "Issuer"), with its principal executive office at 9540 Towne Center Drive, Suite 100, San Diego, CA 92121.
 
Item 4.    Purpose of Transaction
 
Item 4 of the Schedule 13D is hereby supplemented as follows:
 
On November 8, 2010, each VantagePoint Fund entered into a voting and support agreement (each, an "Arrangement Voting Agreement" and collectively, the "Arrangement Voting Agreements") with Quest Software, Inc. ("Quest") and Bolts Acquisition Corporation ("Acquisition Sub"), in connection with the execution of the Arrangement Agreement, dated as of November 8, 2010, by and among Quest, Acquisition Sub and the Issuer (the "Arrangement Agreement"). The Arrangement Agreement contemplates, upon the terms and subject to the conditions specified therein, the acquisition by Quest, through Acquisition Sub, of all the outstanding equity securities of the Issuer pursuant to a "plan of arrangement" (the "Arrangement") under Canadian law.  The two directors elected to the Issuer's board of directors by the VantagePoint Funds abstained from voting on all matters related to the Arrangement Agreement and the Arrangement.

The Arrangement Voting Agreements require each VantagePoint Fund to, among other things, vote all of the Common Stock and Series A Preferred Stock held by such VantagePoint Fund in favor of resolutions to be considered by the Issuer's security holders at a meeting held to approve the Arrangement (the "Arrangement Resolutions").  In addition, pursuant to the Arrangement Voting Agreements, among other things, the VantagePoint Funds may not transfer their shares of Common Stock and Series A Preferred Stock nor may they, from and after the date thereof and for a period of 24 months following the Effective Date (as defined in the Arrangement Agreement), own, purchase or acquire any shares, partnership interests, loans, in debtedness, or any other form of securities (including options) in Quest, Acquisition Sub or certain of their affiliates.

Each Arrangement Voting Agreement automatically terminates on the earliest to occur of the following: (i) the date upon which the Arrangement is completed; (ii) the date upon which the Arrangement Agreement is terminated in accordance with its terms; and (iii) the date upon which Quest, Acquisition Sub and the VantagePoint Fund mutually agree by written instrument to terminate the Arrangement Voting Agreement.

On November 8, 2010, the VantagePoint Funds entered into an agreement (the "Settlement Agreement") with the Issuer, pursuant to which, among other things, the VantagePoint Funds agreed, upon consummation of the Arrangement, to receive cash consideration equal to US $1.291667 per each share of Series A Preferred Stock held by the VantagePoint Funds in lieu of the US $1.49475 (CDN $1.50) per share amount that the VantagePoint Funds otherwise would be entitled to receive with respect to their Series A Preferred Stock upon the consummation of such Arrangement pursuant to the Issuer's charter documents (assuming an exchange rate of CDN $1.002900 to US $1.00, as quoted by WM/Reuters on November 8, 2010). The Settlement Agreement al so provides for mutual general releases between the Issuer and the VantagePoint Funds and other persons associated with them. The Settlement Agreement is terminable by the VantagePoint Funds upon any amendment of the Arrangement Agreement  to alter the amount of any consideration payable thereunder and certain other matters, upon the termination of the settlement agreement and general release of claims dated as of November 8, 2010, among the Issuer, JK&B Capital IV, JK&B Capital IV QIP and Tom Neustaetter, individually and in his capacity as attorney-in-fact for and on behalf of the ColdSpark Shareholders (as defined therein), or automatically upon any termination of the Arrangement Agreement.

Copies of the Arrangement Voting Agreements are filed as Exhibits 99.6, 99.7 and 99.8 hereto and are incorporated herein by reference into this Item 4 as if set out herein in full.  A copy of the Settlement Agreement has been filed by the Issuer with its current report on Form 8-K filed on November 10, 2010 and is incorporated herein by reference into this Item 4 as Exhibit 99.9 as if set out herein in full. The foregoing summaries of the Arrangement Voting Agreements and the Settlement Agreement are qualified by reference to the full text thereof.

Item 5.    Interest in Securities of the Issuer
 
Clauses (a) and (b) of Item 5 of the Schedule 13D are hereby amended and restated to read in their entirety as follows:
 
 
 
 
Page 8 of 11

 
 
 
 
(a) and (b).  According to the Issuer's most recent Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission (the "SEC") on August 5, 2010, there were issued and outstanding 80,534,601 shares of the Issuer's Common Stock as of June 30, 2010.
 
With respect to the amount of Common Stock beneficially owned by each Reporting Person, the nature of such beneficial ownership and the related percentages of the class of Common Stock, the information contained in each of the cover pages, and in Items 1 through 14 thereon, and each of the related footnotes, is incorporated by reference herein.
 
The aggregate number and percentage of the class of securities identified pursuant to Item 1 of this Schedule 13D that are beneficially owned by the Reporting Persons listed in Item 2, or that the Reporting Persons listed in Item 2 may be deemed to beneficially own pursuant to Rule 13d-3 of the Act, are as follows:
 
VPVP IV Q has beneficial ownership of 42 shares of the Issuer's Common Stock and 16,294,200 shares of the Issuer's Series A Preferred Stock, convertible at any time, at the option of the shareholder, and in certain circumstances at the option of the Issuer, into one share of the Issuer's Common Stock, representing approximately 16.8% of the outstanding shares of Common Stock of the Issuer as of August 5, 2010 on an as-converted basis.  (1)
 
VPVP IV has beneficial ownership of 37 shares of the Issuer's Common Stock and 1,633,200 shares of the Issuer's Series A Preferred Stock, convertible at any time, at the option of the shareholder, and in certain circumstances at the option of the Issuer, into one share of the Issuer's Common Stock, representing approximately 2.0% of the outstanding shares of Common Stock of the Issuer as of August 5, 2010 on an as-converted basis.  (2)
 
VPVP Principals IV has beneficial ownership of 72,600 shares of the Issuer's Series A Preferred Stock, convertible at any time, at the option of the shareholder, and in certain circumstances at the option of the Issuer, into one share of the Issuer's Common Stock, representing approximately 0.1% of the outstanding shares of Common Stock of the Issuer as of August 5, 2010 on an as-converted basis.  (3)
 
VantagePoint Venture Associates IV, L.L.C. has beneficial ownership of 79 shares of the Issuer's Common Stock and 18,000,000 shares of the Issuer's Series A Preferred Stock, convertible at any time, at the option of the shareholder, and in certain circumstances at the option of the Issuer, into one share of the Issuer's Common Stock, representing approximately 18.3% of the outstanding shares of Common Stock of the Issuer as of August 5, 2010 on an as-converted basis.
 
James D. Marver has beneficial ownership of 79 shares of the Issuer's Common Stock and 18,000,000 shares of the Issuer's Series A Preferred Stock, convertible at any time, at the option of the shareholder, and in certain circumstances at the option of the Issuer, into one share of the Issuer's Common Stock, representing approximately 18.3% of the outstanding shares of Common Stock of the Issuer as of August 5, 2010 on an as-converted basis.
 
Alan E. Salzman has beneficial ownership of 79 shares of the Issuer's Common Stock and 18,000,000 shares of the Issuer's Series A Preferred Stock, convertible at any time, at the option of the shareholder, and in certain circumstances at the option of the Issuer, into one share of the Issuer's Common Stock, representing approximately 18.3% of the outstanding shares of Common Stock of the Issuer as of August 5, 2010 on an as-converted basis.
 
Each of the Reporting Persons, other than the VantagePoint Funds, expressly disclaims beneficial ownership of the shares of capital stock of the Issuer owned by all other Reporting Persons.
 

 


Footnotes to Item 5:
 
(1) All such shares are directly held and directly beneficially owned by VPVP IV Q.  VantagePoint Venture Associates IV, L.L.C., as the general partner of VPVP IV Q, and Messrs. Marver and Salzman, as the managing members of VantagePoint Venture Associates IV, L.L.C., may be deemed to share voting and investment power with VPVP IV Q with respect to such shares.  With respect to Messrs. Marver and Salzman, this Statement relates only to their indirect beneficial ownership of such shares. 
 
(2) All such shares are directly held and directly beneficially owned by VPVP IV.  VantagePoint Venture Associates IV, L.L.C., as the general partner of VPVP IV, and Messrs. Marver and Salzman, as the managing members of VantagePoint Venture Associates IV, L.L.C, may be deemed to share voting and investment power with VPVP IV with respect to such shares.  With respect to Messrs. Marver and Salzman, this Statement relates only to their indirect beneficial ownership of such shares. 
 
(3) All such shares are directly held and directly beneficially owned by VPVP Principals IV.  VantagePoint Venture Associates IV, L.L.C., as the general partner of VPVP Principals IV, and Messrs. Marver and Salzman, as the managing members of VantagePoint Venture Associates IV, L.L.C., may be deemed to share voting and investment power with VPVP Principals IV with respect to such shares.  With respect to Messrs. Marver and Salzman, this Statement relates only to their indirect beneficial ownership of such shares. 
 

 
 
Page 9 of 11

 

Item 6.   Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer.
Item 6 of the Schedule 13D is hereby supplemented as follows:
 
The disclosure in Item 4 of the Schedule 13D relating to the Voting Agreement is incorporated herein by reference thereto.


Item 7.   Material to be filed as Exhibits
 
Item 7 of the Schedule 13D is hereby amended and supplemented by adding the following in appropriate numerical order at the end of that section:
 
 
Exhibit 99.6
Voting and Support Agreement, by and among Quest Software, Inc., Bolts Acquisition Corporation and VantagePoint Venture Partners IV(Q) L.P., dated as of November 8, 2010.
 
 
Exhibit 99.7
Voting and Support Agreement, by and among Quest Software, Inc., Bolts Acquisition Corporation and VantagePoint Venture Partners Principals Fund IV, L.P., dated as of November 8, 2010.
 
 
Exhibit 99.8
Voting and Support Agreement, by and among Quest Software, Inc., Bolts Acquisition Corporation and VantagePoint Venture Partners IV, L.P., dated as of November 8, 2010.

 
Exhibit 99.9
Agreement, by and among BakBone Software Incorporated, VantagePoint Venture Partners IV(Q) L.P., VantagePoint Venture Partners Principals Fund IV, L.P. and VantagePoint Venture Partners IV, L.P., dated as of November 8, 2010, incorporated by reference herein to the Issuer's current report on Form 8-K filed on November 10, 2010.
 
 

 

 
 
Page 10 of 11

 

SIGNATURE
 
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this Statement is true, complete and correct.
 
Dated:  November 9, 2010
     
 
VantagePoint Venture Partners IV (Q), L.P.
   
 
By:  VantagePoint Venture Associates IV, L.L.C.,
   
 
Its General Partner
   
 
By:
/s/ Alan E. Salzman                                     
 
       
 
Name:
Alan E. Salzman                                     
 
       
 
Title: Managing Member
   
   
   
 
VantagePoint Venture Partners IV, L.P.
   
 
By:  VantagePoint Venture Associates IV, L.L.C.,
   
 
Its General Partner
   
 
By:
/s/ Alan E. Salzman                                      
 
       
 
Name:
Alan E. Salzman                                      
 
       
 
Title: Managing Member
   
   
   
 
VantagePoint Venture Partners IV Principals Fund, L.P.
   
 
By:  VantagePoint Venture Associates IV, L.L.C.,
   
 
Its General Partner
   
 
By:
/s/ Alan E. Salzman                                      
 
       
 
Name:
Alan E. Salzman                                      
 
     
 
Title: Managing Member
   
   
   
 
VantagePoint Venture Associates IV, L.L.C
   
 
By:
/s/ Alan E. Salzman                                      
 
       
 
Name:
Alan E. Salzman                                      
 
   
 
Title:  Managing Member
   
   /s/ James D. Marver           
                                                 
 
James D. Marver
 
     
   /s/ Alan E. Salzman      
   Alan E. Salzman  
 
 
 
 
 
Page 11 of 11
 
 
EX-99.6 2 ex99-6.htm VOTING AND SUPPORT AGREEMENT VPVA IV ex99-6.htm
 
EXHIBIT 99.6
Execution Version
 
VOTING AND SUPPORT AGREEMENT
 
 
THIS AGREEMENT made as of the 8th day of November, 2010 (the “Agreement”).
 
BETWEEN:
VantagePoint Venture Partners IV (Q) L.P. (the “Shareholder”)
 
AND:
QUEST SOFTWARE, INC., a corporation governed by the laws of Delaware (“Parent”)
 
AND:
BOLTS ACQUISITION CORPORATION (“Acquisition Sub”)

 
WHEREAS the Shareholder is the direct or indirect beneficial owner of, or has control or direction over, that number of issued and outstanding common shares (the “Common Shares”) and/or issued and outstanding Series A Preferred Shares (the “Preferred Shares”) of BakBone Software Incorporated (the “Company”) as set forth on Schedule A attached to this Agreement;
 
 
AND WHEREAS Parent, Acquisition Sub and the Company propose to enter into the Arrangement Agreement (as hereinafter defined) providing for the arrangement involving Parent, Acquisition Sub, the Company and the Securityholders (as hereinafter defined) of the Company pursuant to Section 192 of the Canada Business Corporations Act on and subject to the terms of the Arrangement Agreement, the result of which shall be the acquisition of the Company by Parent or Acquisition Sub (which, together with the other transactions contemplated by the Arrangement Agreement, is collectively referred to in this Agreement as the “Arrangement”);
 
 
AND WHEREAS this Agreement sets out the terms and conditions of the agreement of the Shareholder to: (i) support the Arrangement, (ii) vote or cause to be voted all of the Subject Shares (as hereinafter defined) in favour of the Arrangement Resolution (as hereinafter defined); and (iii) comply with the restrictions, obligations and covenants set forth in this Agreement;
 
 
AND WHEREAS the Shareholder acknowledges that: (i) Parent and Acquisition Sub would not enter into the Arrangement Agreement but for the execution and delivery of this Agreement by the Shareholder; and (ii) it is a condition of Parent’s and Acquisition Sub’s obligations under the Arrangement Agreement to consummate the Arrangement that this Agreement shall not have been terminated;
 
 
THIS AGREEMENT WITNESSES THAT, in consideration of Parent and Acquisition Sub entering into the Arrangement Agreement and of the premises and the respective covenants and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the parties hereto, the parties hereto hereby covenant and agree as follows:
 
 
 
 
 
 
 
 

 
 
ARTICLE 1
INTERPRETATION
 
1.1
Definitions
 
 
In this Agreement:
 
(a)
Acquisition Proposal” has the meaning assigned to such term in the Arrangement Agreement;
 
(b)
Affiliate” of a specified Person means a Person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such specified Person. The term “control” (including the terms “controlling,” “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, or otherwise;
 
(c)
Arrangement Agreement” means the arrangement agreement, dated as of the date hereof, among Parent, Acquisition Sub and the Company, as it may be amended from time to time in accordance with its terms;
 
(d)
Arrangement Resolution” means the resolution to be considered and if thought fit, passed, by the Securityholders at the Meeting to approve the Plan of Arrangement to be substantially in the form and content of Annex B to the Arrangement Agreement;
 
(e)
Business Day” means any day on which commercial banks are generally open for business in San Diego, California, and Calgary, Alberta, other than a Saturday or a Sunday;
 
(f)
Company Options” means options to purchase Common Shares from the Company, whether granted by the Company pursuant to the 2000 Stock Option Plan, the 2002 Stock Option Plan or the BakBone Software Incorporated 2003 Equity Incentive Plan or otherwise;
 
(g)
Company Shareholders” means holders of Company Shares, in their capacities as such;
 
(h)
Company Shares” means, collectively, Common Shares and Preferred Shares;
 
(i)
Company Warrants” means warrants to purchase Common Shares from the Company;
 
(j)
Effective Date” has the meaning assigned to such term in the Arrangement Agreement;
 
(k)
Entity” means any corporation (including any non-profit corporation), general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, company (including any company limited by shares, limited liability company or joint
 
 
 
 
 
 
 
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stock company), firm, society or other enterprise, association, organization or entity (including any Governmental Authority);
 
(l)
Final Order” means the final order of the Court approving the Arrangement under the Canada Business Corporations Act as such order may be affirmed, amended or modified by the Court at any time prior to the Effective Date, or, if appealed, then, unless such appeal is withdrawn, abandoned or denied, as affirmed or as amended on appeal;
 
(m)
Information Circular” means the notice of the Meeting and accompanying management proxy circular, including all schedules and exhibits thereto, and documents incorporated therein, to be sent to the Securityholders in connection with the Meeting, as the same may be amended, supplemented or otherwise modified subject to the Arrangement Agreement;
 
(n)
Interim Order” means the interim order of the Court in respect of the Arrangement, as contemplated by Section 2.3 of the Arrangement Agreement, providing for, among other things, the calling and holding of the Meeting, as such order may be amended, modified, supplemented or varied by the Court;
 
(o)
Investment” has the meaning assigned to such term in Section 2.1(h);
 
(p)
Legal Requirement” means all applicable laws (statutory, common or otherwise), statutes, by-laws, rules, regulations, treaties, ordinances, conventions, orders, codes, policies, notices and directions (having the force of law) and judicial, arbitral, administrative, ministerial or departmental judgments, awards, injunctions, decrees, rulings or other requirements of any Governmental Authority, court or other authority having jurisdiction over the applicable party;
 
(q)
Meeting” means the special meeting of the Securityholders, including any adjournment, adjournments, postponement or postponements thereof, to be called in accordance with the Interim Order to consider the Arrangement Resolution;
 
(r)
Per Share Common Purchase Price” has the meaning assigned to such term in the Arrangement Agreement.
 
(s)
Per Share Preferred Purchase Price” has the meaning assigned to such term in the Arrangement Agreement.
 
(t)
Person” means an individual or Entity;
 
(u)
Plan of Arrangement” means the plan of arrangement substantially in the form and content of Annex C to the Arrangement Agreement as amended, varied or supplemented from time to time in accordance with the Plan of Arrangement or Section 9.1 of the Arrangement Agreement or made at the direction of the Court in the Final Order;
 
(v)
Securityholders” at any time means, collectively, the Company Shareholders, holders of Company Options and holders of Company Warrants at such time;
 
 
 
 
 
 
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(w)
Subject Shares” means all the Common Shares, Preferred Shares and Company Options which the Shareholder beneficially owns, directly or indirectly, or over which the Shareholder has control or direction, as set forth on Schedule A attached to this Agreement, together with any additional Common Shares, Preferred Shares, Company Options and any other voting securities of the Company which the Shareholder becomes the beneficial owner, directly or indirectly, or over which the Shareholder obtains control or direction, whether by acquisition after the date of the Agreement or otherwise including, without limitation, any Common Shares issued upon exercise of Company Options, if any;
 
(x)
Subsidiary” of the Company, Parent or any other Person means an Person with respect to which such Person directly or indirectly owns, beneficially or of record, (A) an amount of voting securities or other interests in such Person that is sufficient to enable such Person to elect at least a majority of the members of such Person’s board of directors or comparable governing body, or (B) at least 50% of the outstanding equity interests issued by such Person; and
 
(y)
Superior Proposal” has the meaning assigned to such term in the Arrangement Agreement.
 
1.2
Definitions in Arrangement Agreement
 
 
All terms used in this Agreement that are not defined in Section 1.1 or elsewhere herein and that are defined in the Arrangement Agreement shall have the respective meanings assigned to them in the Arrangement Agreement.
 
 
ARTICLE 2
COVENANTS OF THE SHAREHOLDER
 
2.1
Negative Covenants
 
 
On the terms and subject to the conditions of this Agreement, the Shareholder hereby covenants and agrees in favour of Parent and Acquisition Sub that, from the date hereof until the termination of this Agreement in accordance with Article 4, and except as otherwise provided in this Agreement, the Shareholder will:
 
(a)
not, directly or indirectly, through any officer, director, employee, representative or agent of the Shareholder, (i) solicit, initiate, knowingly facilitate or knowingly encourage (including by way of furnishing information or entering into any form of agreement, arrangement or understanding) the initiation of any inquiries or proposals that constitute, or may reasonably be expected to constitute, an Acquisition Proposal, (ii) participate in any discussions or negotiations with, furnish information relating to the Company or any of its Subsidiaries or offer or provide access to the properties, assets, books or records of the Company or any of its Subsidiaries to, or otherwise cooperate in any way with, any Person (other than Parent and Acquisition Sub) that is seeking to make, or has made, any proposal or offer or any other efforts or attempts that constitute or reasonably may be
 
 
 
 
 
 
 
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expected to lead to, an Acquisition Proposal, or (iii) approve, accept or enter into any contract, understanding or arrangement with any Person (other than Parent and Acquisition Sub) in respect of an Acquisition Proposal;
 
(b)
immediately terminate any existing discussions, solicitations or negotiations with any Person (other than Parent and Acquisition Sub) with respect to any proposal that constitutes, or may reasonably be expected to constitute, an Acquisition Proposal whether or not initiated by the Shareholder;
 
(c)
as soon as practicable and, in any event, within 24 hours following receipt thereof, notify Parent and Acquisition Sub, at first orally and then in writing, of any future Acquisition Proposal or any inquiry or proposal that reasonably may be expected to lead to an Acquisition Proposal being received by the Shareholder or the Company after the date hereof, of which any of its officers, directors, employees, representatives or agents are or become aware, or any amendments or material correspondence in the Shareholder's possession with respect to the foregoing and a description of the material terms and conditions thereof known to the Shareholder (including the identity of the Person making such proposal, inquiry or request) together with a copy of all documentation relating to any such proposed Acquisition Proposal in the Shareholder's possession;
 
(d)
not release or permit the release of any Person from or waive any confidentiality, non-solicitation or standstill agreement to which the Shareholder and any such Person are parties;
 
(e)
not option, sell, transfer, gift, assign, redeem, exercise any right (other than pursuant to Section 2.2(c)) in respect of, pledge, encumber, grant a security interest in, hypothecate or otherwise convey any of the Subject Shares, or any right or interest therein (legal or equitable), whether by actual disposition, derivative transaction, the sale of any direct or indirect holding company or trust of the Shareholder or otherwise, to any Person or group or enter into any agreement, commitment or understanding to do any of the foregoing;
 
(f)
except in accordance with Section 2.2, not grant or agree to grant any proxy, power of attorney or other right to vote, dispose, or exercise control or direction over, the Subject Shares, or enter into any voting trust, vote pooling or other agreement with respect to the right to vote, or grant a proxy on the Subject Shares of any direct or indirect holding company or trust of the Shareholder, call meetings of Securityholders or give consents or approvals of any kind as to the Subject Shares;
 
(g)
not vote or cause to be voted, not tender or deposit or cause to be tendered or deposited, and not exercise or cause to be exercised any rights in respect of any the Subject Shares in connection with any Acquisition Proposal;
 
(h)
from and after the date hereof, and for a period of 24 months following the Effective Date, the Shareholder shall not (i) own, purchase or acquire any shares, partnership interests, loans, indebtedness, or any other form of securities (including options to acquire any of the foregoing) (collectively referred herein as “Investment”) in Parent, Acquisition Sub or any of their Affiliates listed in Exhibit 21.1 of Parent’s most recent
 
 
 
 
 
 
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Form 10-K as filed with the Securities and Exchange Commission, as such list may be amended or supplemented from time to time by Parent and a copy of which shall be delivered to the Shareholder as soon as practicable thereafter, (ii) direct any Affiliate of the Shareholder to own, purchase or acquire an Investment, or (iii) instruct a third party investment or money manager (including a mutual fund or other investment vehicle) to purchase or cause to be purchased an Investment on behalf of the Shareholder or any such Affiliate; provided, however, that the foregoing shall not apply to any Investment made by a third party investment or money manager (including a mutual fund or other investment vehicle) acting on discretionary authority granted to such third party investment or money manager by the Shareholder; and
 
(i)
publicly announce the Shareholder’s intention to do any of the foregoing; provided, however, that this clause shall not restrict the Shareholder's Schedule 13D reporting obligations under Section 13(d) of the Exchange Act.
 
2.2
Support of the Arrangement
 
 
On the terms and subject to the conditions of this Agreement, the Shareholder hereby covenants and agrees in favour of Parent and Acquisition Sub that, from the date hereof until the termination of this Agreement in accordance with Article 4, the Shareholder will:
 
(a)
take all action necessary to vote or cause to be voted (and not withdraw) the Subject Shares in favour of the Arrangement Resolution at the Meeting including in connection with any separate vote of any sub group of Securityholders that may be required to be taken including, without limitation, duly instructing any intermediaries who hold the Subject Shares to so vote the Subject Shares and, in furtherance of the foregoing, the Shareholder will deliver no later than five Business Days prior to the date of the Meeting a duly executed proxy or a duly executed voting instruction form to the intermediary through which the Shareholder holds the Shareholder’s beneficial interest in the Subject Shares (provided that if the Shareholder is a non objecting beneficial owner, such voting instructions shall be delivered directly to the Company), in each case with a copy to Parent and Acquisition Sub concurrently, and di recting the proxyholder or instructing the intermediary, as the case may be, that the Subject Shares be voted at the Meeting in favour of the Arrangement Resolution and any such proxy or voting instructions shall not be revoked without the written consent of Parent and Acquisition Sub; and
 
(b)
take all action necessary to vote or cause the Subject Shares to be voted (and not withdrawn) against any Acquisition Proposal at any meeting of Securityholders called for the purpose of considering same including, without limitation, duly directing proxyholders or instructing any intermediaries who hold the Subject Shares on behalf of the Shareholder to so vote the Subject Shares; and
 
(c)
if the Arrangement Agreement is amended, or superseded by any further agreement, arrangement or understanding, such that the acquisition of control of the Company and its Subsidiaries, or the acquisition of all or substantially all of the assets of the Company, by Parent or Acquisition Sub or any of their Affiliates is provided for by means of an
 
 
 
 
 
 
 
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alternative structure (“Alternative Structure Transaction”), the Shareholder shall, for greater certainty during the term of this Agreement, upon Parent's written request, at no cost to the Shareholder, (i) deposit the Shareholder’s Subject Shares into a take-over bid and not withdraw them, and/or (ii) vote or cause to be voted all of the Subject Shares in favour of, and not dissent from, such Alternative Structure Transaction; provided, however, that the Shareholder’s obligations under this Section 2.2(c) are conditional upon (A) the consideration per Common Share and/or Preferred Share, as the case may be, to be received by the Shareholder under such Alternative Structure Transaction being in the same form as, and being equal to or greater than, the Per Share Common Purchase Price and/or the Per Share Preferred Purchase Price, as the case may be, to be received by the Shareholder pursuant to the Arrangement, and (B) such Alternative Structure Transaction not having any other adverse effect on the Shareholder, including with respect to tax consequences.
 
2.3
Superior Proposal
 
 
If a Superior Proposal is made, the Shareholder hereby agrees, subject to the termination of this Agreement in accordance with Article 4, that it shall continue to comply with its restrictions, obligations and covenants as set forth in this Agreement.
 
2.4
Fiduciary Duties of Shareholder
 
 
Notwithstanding any provision of this Agreement to the contrary, a Shareholder or a shareholder, manager, partner, officer, director or employee of a Shareholder that is a director or officer of the Company shall not be limited or restricted in any way whatsoever in the exercise of his or her fiduciary duties as a director or officer of the Company or any of its Subsidiaries, including without limitation, responding in his or her capacity as a director or officer of the Company or any of its Subsidiaries to a bona fide written Acquisition Proposal and providing information to the Person making such Acquisition Proposal provided that the Company Board has determined in good faith, after receiving the advice of its outside legal counsel and financial advisor, that such Acquisition Proposal received by the Company constitutes or could reasonably be expected to lead to a Superior Proposal and subject to compliance with the Arrangement Agreement.
 
ARTICLE 3
REPRESENTATIONS AND WARRANTIES
 
3.1
Representations and Warranties of the Shareholder
 
 
The Shareholder hereby represents and warrants to Parent and Acquisition Sub as follows, and acknowledges that Parent and Acquisition Sub are relying upon such representations and warranties in entering into this Agreement:
 
 
 
 
 
 
 
 
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(a)
where the Shareholder is not an individual, the Shareholder is existing and organized under the Legal Requirements of Delaware and has the requisite power and authority to own the assets it currently owns and to conduct its business as it is now being conducted;
 
(b)
the Shareholder has the requisite entity power and authority to enter into this Agreement and to perform and carry out its obligations hereunder. Where the Shareholder is not an individual, the execution and delivery of this Agreement by the Shareholder, the performance of the Shareholder’s obligations under this Agreement and the completion by the Shareholder of the transactions contemplated hereby have been duly authorized by the general partner of the Shareholder, and no other proceedings to be completed or consent to be obtained by the Shareholder are or will be necessary for the corporate authorization of this Agreement and the transactions contemplated hereby;
 
(c)
this Agreement has been duly executed and delivered by the Shareholder and, assuming the due execution and delivery of this Agreement by Parent and Acquisition Sub, constitutes a legal, valid and binding obligation of the Shareholder enforceable against the Shareholder in accordance with its terms, except as may be limited by bankruptcy, insolvency and other Legal Requirements affecting the enforcement of creditors’ rights generally and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction;
 
(d)
the execution and delivery of this Agreement and the completion by the Shareholder of the transactions contemplated hereby:
 
 
(i)
will not, where the Shareholder is not an individual, conflict with the articles, by-laws, partnership agreement, declaration of trust or other constating documents of the Shareholder;
 
 
(ii)
will not conflict with, result in the breach of or constitute a default under any agreement, indenture, contract, lease, deed of trust, licence, option, instrument or other commitment, whether written or oral, to which the Shareholder is a party or by which the Shareholder is or may be bound; and
 
 
(iii)
do not and will not constitute a breach of or violation of or default (or an event which with notice or lapse of time or both would become a default) under any Legal Requirement binding upon the Shareholder which could reasonably be expected to adversely affect the Shareholder's ability to perform its obligations under this Agreement;
 
(e)
the only securities of the Company owned directly or indirectly by or controlled by or under the direction of the Shareholder are the securities set forth on Schedule A attached to this Agreement and, in the case of Subject Shares beneficially owned, the Shareholder is the sole beneficial owner of such securities, except that the Shareholder shares "beneficial ownership" (as that term is defined in Rule 13d-3 under the Exchange Act) of the Subject Shares with VantagePoint Venture Associates IV, L.L.C., James D. Marver and Alan E. Salzman. The number and class of such securities that are held through an intermediary are set forth on Schedule A attached to this Agreement. The Shareholder has
 
 
 
 
 
 
 
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the exclusive right to deal with and exercise all voting rights attributable to the Subject Shares as provided in this Agreement. The Shareholder does not own, directly or indirectly, any securities of any of the Company’s Subsidiaries;
 
(f)
the Shareholder is not a party with any Person to any agreement, warrant or option or any right capable of becoming an agreement, warrant or option for the purchase by such Person of any of the Subject Shares or any right or interest therein (legal or equitable);
 
(g)
none of the Subject Shares is subject to any proxy, voting trust, vote pooling or other agreement with respect to the right to vote, call meetings of Securityholders or give consents or approvals of any kind;
 
(h)
there are no claims, actions, suits or proceedings existing or pending, or (to the knowledge of the Shareholder) threatened against or affecting the Shareholder, and there are no investigations (to the knowledge of the Shareholder) existing, pending or threatened against or affecting the Shareholder, whether at law or in equity, before or by, and there are no judgments, decrees, rules or orders of any Governmental Authority which adversely affect, or could reasonably be expected to adversely affect, the ability of the Shareholder to consummate the transactions contemplated hereby;
 
(i)
the Shareholder (i) has not made any payment or loan to, or borrowed any monies from or is otherwise indebted to, the Company or any of its Subsidiaries; or (ii) is not a party to any agreement or understanding with the Company or any of its Subsidiaries or any officer, director or employee of the Company or any of its Subsidiaries (other than the Persons elected by the Shareholder to serve as directors of the Company);
 
(j)
except for filings that the Shareholder is required to make pursuant to the Securities Act and the Exchange Act, no sanction, ruling, consent, order, exemption, permit, declaration, filing, waiver or other approval of any Governmental Authority or other Person is required to be obtained by the Shareholder in connection with the execution and delivery of this Agreement, the performance by the Shareholder of its obligations hereunder and the consummation by the Shareholder of the transactions contemplated hereby which, if not obtained by the Shareholder, could reasonably be expected to adversely affect the Shareholder's ability to perform its obligations under this Agreement; and
 
(k)
neither the Shareholder nor any Affiliate of the Shareholder (other than any portfolio company) own, directly or indirectly, an Investment in Parent, Acquisition Sub or any of their Affiliates listed in Exhibit 21.1 of Parent’s most recent Form 10-K as filed with the Securities and Exchange Commission, as such list may be amended or supplemented from time to time by Parent and a copy of which shall be delivered to the Shareholder as soon as practicable thereafter, provided that no representation or warranty is made by the Shareholder in respect of any Investment made by a third party investment or money manager (including a mutual fund or other investment vehicle) acting on discretionary authority granted to such third party investment or money manager by the Shareholder or any such Affiliate.
 
 
 
 
 
 
 
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3.2
Representations and Warranties of Parent and Acquisition Sub
 
 
Parent and Acquisition Sub hereby jointly and severally represent and warrant to the Shareholder as follows, and acknowledge that the Shareholder is relying upon such representations and warranties in entering into this Agreement:
 
(a)
Parent is existing and organized under the Legal Requirements of Delaware and has the requisite power and authority to own the assets it currently owns and to conduct its business as it is now being conducted. Acquisition Sub is existing and organized under the Legal Requirements of Canada and has the requisite power and authority to own the assets it currently owns and to conduct its business as it is now being conducted;
 
(b)
each of Parent and Acquisition Sub has the requisite power and authority to enter into this Agreement and to perform and carry out its obligations hereunder. The execution and delivery of this Agreement by Parent and Acquisition Sub, the performance of Parent’s and Acquisition Sub’s obligations under this Agreement and the completion by Parent and Acquisition Sub of the transactions contemplated hereby have been duly authorized by the board of directors of Parent and Acquisition Sub, respectively, and no other proceedings to be completed or consent to be obtained by Parent and Acquisition Sub are or will be necessary for the corporate authorization of this Agreement and the transactions contemplated hereby;
 
(c)
this Agreement has been duly executed and delivered by each of Parent and Acquisition Sub and, assuming the due execution and delivery of this Agreement by the Shareholder, constitutes a legal, valid and binding obligation of Parent and Acquisition Sub, enforceable against Parent and Acquisition Sub in accordance with its terms, except as may be limited by bankruptcy, insolvency and other Legal Requirements affecting the enforcement of creditors’ rights generally and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction; and
 
(d)
the execution and delivery of this Agreement and the completion by each of them of the transactions contemplated hereby:
 
 
(i)
will not conflict with Parent’s and Acquisition Sub’s articles and by-laws; and
 
 
(ii)
do not and will not constitute a breach of or violation of or default (or an event which with notice or lapse of time or both would become a default) under any Legal Requirement binding upon Parent or Acquisition Sub.
 
3.3
Survival
 
The representations and warranties of the Shareholder and of Parent and Acquisition Sub set out in Sections 3.1 and 3.2, respectively, shall survive and shall continue in full force and effect for the benefit of the Shareholder and of Parent and Acquisition Sub, respectively, until  the termination of this Agreement in accordance with its terms.
 
 
 
 
 
 
 
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ARTICLE 4
TERMINATION
 
4.1
Termination by Parent and Acquisition Sub
 
 
Parent and Acquisition Sub when not in material default in the performance of their respective obligations under this Agreement, may, without prejudice to any of their respective rights hereunder and in their sole discretion, terminate this Agreement by written notice to the Shareholder if:
 
(a)
any of the representations and warranties of the Shareholder under this Agreement (except for the representations and warranties set forth in Sections 3.1(d)(ii), 3.1(d)(iii) and 3.1(j)) shall not be true and correct in all respects;
 
(b)
any of the representations and warranties of the Shareholder set forth in Sections 3.1(d)(ii), 3.1(d)(iii) or 3.1(j) shall not be true and correct in all material respects; or
 
(c)
the Shareholder shall not have performed in any material respect any covenant required to be performed by it under this Agreement (unless such non-performance, if capable of being remedied, is remedied by the Shareholder within ten (10) days from the date of notice of such non-performance from Parent or unless such non-performance is a direct result of any non-performance by Parent or Acquisition Sub of its obligations under this Agreement).
 
4.2
Automatic Termination
 
 
This Agreement shall automatically terminate, without any action on the part of Parent, Acquisition Sub, the Shareholder or any other Person, on the earliest to occur of the following: (i) the date upon which the Arrangement is completed; (ii) the date upon which the Arrangement Agreement is terminated in accordance with its terms; and (iii) the date upon which Parent, Acquisition Sub and the Shareholder mutually agree by written instrument to terminate this Agreement.
 
4.3
Effect of Termination
 
 
If this Agreement is terminated in accordance with this Article 4, the provisions of this Agreement will become void and no party hereto shall have liability to any other party hereto, except in respect of a breach of this Agreement which occurred prior to such termination and the Shareholder shall be entitled to withdraw any form of proxy or voting instructions in respect of the Arrangement Resolution which the Shareholder may have given. Notwithstanding anything to the contrary contained in this Agreement, the covenants and obligations of the Shareholder set out in Section 2.1(h) shall only survive the termination of this Agreement in the event of the consummation of the Arrangement and shall continue in full force and effect for the benefit of Parent and Acquisition Sub only if such consummation occurs.
 
 
 
 
 
 
 
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ARTICLE 5
GENERAL
 
5.1
Further Assurances
 
 
Each of the Shareholder, Parent and Acquisition Sub will, from time to time prior to completion of the Arrangement, execute and deliver all such further documents and instruments and do all such acts and things as the other parties hereto may reasonably require and at the requesting party’s cost to effectively carry out or better evidence or perfect the full intent and meaning of this Agreement.
 
5.2
Investigation by Parties
 
 
No investigations made by or on behalf of Parent or Acquisition Sub or any of their authorized agents at any time shall have the effect of waiving, diminishing the scope of or otherwise affecting any representation, warranty or covenant made by the Shareholder herein or pursuant hereto.
 
5.3
Additional Securities
 
 
In the event that the Shareholder acquires any additional Common Shares, Preferred Shares, Company Options or any other voting securities of the Company after the date hereof, then the Shareholder shall notify Parent and Acquisition Sub of such event and Parent and Acquisition Sub may prepare and deliver to the Shareholder an updated Schedule A attached to this Agreement whereupon such updated Schedule A shall be deemed to form part of this Agreement.
 
5.4
Assignment
 
 
This Agreement may not be assigned by any party hereto without the express prior written consent of the other parties hereto, provided that Parent and/or Acquisition Sub may assign all or any part of their rights and/or obligations under this Agreement to a direct or indirect wholly owned Subsidiary of Parent or Acquisition Sub, or an Affiliate of Parent or Acquisition Sub, without consent, but, if such assignment takes place, Parent and Acquisition Sub shall continue to be liable jointly and severally with the assignee for any obligations hereunder.
 
5.5
Public Announcements
 
 
Except to the extent required by Legal Requirements, no public announcement or press release concerning the matters referred to in this Agreement may be made by Parent or Acquisition Sub or by the Shareholder without the prior written consent of the other parties hereto, such consent not to be unreasonably withheld. Except to the extent required by Legal
 
 
 
 
 
 
 
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Requirements, no copy of this Agreement may be provided by Parent and Acquisition Sub or by the Shareholder to any other Person, except their respective partners, managers, directors, officers, employees, advisors (including, without limitation, legal counsel) or lenders, without the prior written consent of the other parties hereto, such consent not be unreasonably withheld. The provisions of this Agreement may be summarized in the Information Circular, in any material change report filed by the Company in connection with the public announcement of the Arrangement and in any filing or statement that the Shareholder is required to make with or provide to the U.S. Securities and Exchange Commission.
 
5.6
No Third Party Beneficiaries
 
 
This Agreement shall be binding upon and inure solely to the benefit of each of the parties hereto, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
 
5.7
Waiver
 
 
No waiver, whether by conduct or otherwise, of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provisions (whether or not similar) nor shall such waiver constitute a continuing waiver unless otherwise expressly provided in an instrument duly executed by the parties to be bound thereby.
 
5.8
Time
 
 
Time shall be of the essence of this Agreement.
 
5.9
Governing Law and Venue
 
 
This Agreement shall be governed by and construed in accordance with the domestic Legal Requirements of the Province of Alberta and the federal laws of Canada applicable therein without giving effect to any choice or conflict of law provision or rule (whether of the Province of Alberta or any other jurisdiction) that would cause the application of the Legal Requirements of any jurisdiction other than the Province of Alberta and the laws of Canada applicable therein.  All disputes arising out of or in connection with this Agreement shall be solely and exclusively resolved by a court of competent jurisdiction in the Province of Alberta.  The parties hereby consent to the jurisdiction of the Courts of Alberta and waive any objections or rights as to forum nonconvenience, lack of personal jurisdiction or similar ground s with respect to any dispute relating to this Agreement.
 
 
 
 
 
 
 
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5.10
Entire Agreement
 
This Agreement, including the schedules hereto, constitutes the entire agreement and understanding between and among the parties hereto with respect to the subject matter hereof and supersedes any prior agreement, representation or understanding with respect thereto.
 
5.11
Amendments
 
 
This Agreement may not be modified, amended, altered or supplemented, except upon the execution and delivery of a written agreement executed by all of the parties hereto.
 
5.12
Notices
 
 
Any notice, request, consent, agreement or approval which may or is required to be given pursuant to this Agreement shall be in writing and shall be sufficiently given or made if delivered, or sent by telecopier, in the case of:
 
(a)
Parent or Acquisition Sub, addressed as follows:
 
Quest Software, Inc.      
 5 Polaris Way      
 Aliso Viejo CA  92656      
 United States of America      
       
 Attention:    David Cramer    
 Facsimile No:       (949) 754-8799    
  
with a copy (which shall not constitute notice) to:
 
 
 Latham & Watkins LLP      
 650 Town Center Drive      
 20th Floor      
 Costa Mesa CA  92626-1925      
 United States of America      
       
 Attention:   Charles K. Ruck    
 Facsimile No:  (714) 755-8290    
 
 
and a copy (which shall not constitute notice) to:
 
Stikeman Elliott LLP      
1155 René-Lévesque Blvd. West      
40th Floor      
Montreal QC  H3B 3V2      
       
 Attention:    John W. Leopold    
 Facsimile No:  (514) 397-3422    
 
 
 
 
 
 
 
 
- 14 -

 
 
(b)
the Shareholder, addressed as follows:
 
VantagePoint Venture Partners IV (Q) L.P.
1001 Bayhill Drive
Suite 300
San Bruno, CA 94066
Attention:  General Counsel
Facsimile: (650) 869-6078

with a copies (which shall not constitute notice) to:
 

VantagePoint Venture Partners
1001 Bayhill Drive
Suite 300
San Bruno, CA 94066
Attention:  General Counsel
Facsimile:  (650) 869-6078

 
Cooley LLP
3175 Hanover Street
Palo Alto, CA 94304-1130
Attention:  David A. Lipkin
Facsimile No:  650-849-7400
 
 
and
 
Burnet, Duckworth & Palmer LLP
Suite 1400, 350 7th Ave SW
Calgary, AB T2P 3N9
Attention: Kelsey Clark
Facsimile No: 403-260-0391
 
 
or to such other address as the relevant Person may from time to time advise by notice in writing given pursuant to this Section. The date of receipt of any such notice, request, consent, agreement or approval shall be deemed to be the date of delivery or sending thereof if sent or delivered during normal business hours on a Business Day at the place of receipt and, otherwise, on the next following Business Day.
 
 
 
 
 
 
 
- 15 -

 
 
5.13
Specific Performance and other Equitable Rights
 
 
The Shareholder recognizes and acknowledges that this Agreement is an integral part of the Arrangement, that Parent and Acquisition Sub would not enter into the Arrangement Agreement unless this Agreement was executed, and accordingly acknowledges and agrees that a breach by the Shareholder of any covenants or other commitments contained in this Agreement will cause Parent and Acquisition to sustain injury for which it would not have an adequate remedy at law for money damages. Each of the parties hereto agree that in the event of any breach or threatened breach, the aggrieved or prospective aggrieved party (or parties) shall be entitled to the remedy of specific performance of such covenants or commitments and preliminary and permanent injunctive and other equitable relief in addition to any other remedy to which it may be entitled, at law or in equity.
 
5.14
Expenses
 
 
Each of the parties hereto shall pay its respective legal, financial advisory and accounting costs and expenses incurred in connection with the preparation, execution and delivery of this Agreement and all documents and instruments executed or prepared pursuant hereto and any other costs and expenses whatsoever and howsoever incurred.
 
5.15
Counterparts
 
 
This Agreement may be executed in one or more counterparts which together shall be deemed to constitute one valid and binding agreement, and delivery of the counterparts may be affected by means of telecopier transmission.
 
[Signature Page follows]
 
 
 
 
 
 
 
 
- 16 -

 
 
IN WITNESS WHEREOF the parties have executed this Agreement as of the date first written above.
 
 
QUEST SOFTWARE, INC.
   
   
   
 
By:
/s/ David Cramer  
   
Signature of Authorized Signatory
    David Cramer  
   
Name of Authorized Signatory
    Vice President, General Counsel & Secretary  
   
Title
   
 
 
BOLTS ACQUISITION CORPORATION
   
   
   
 
By:
/s/ David Cramer  
   
Signature of Authorized Signatory
    David Cramer  
   
Name of Authorized Signatory
    Vice President, General Counsel & Secretary  
   
Title
 
   
 
VANTAGEPOINT VENTURE PARTNERS IV (Q) L.P.
 
 
By: VantagePoint Venture Associates IV, L.L.C.,
     Its General Partner
   
   
   
 
By:
/s/ Alan E. Salzman
 
   
Name: Alan E. Salzman,
 
 
 
 
 
Managing Member

 
 
 
 
 
 
- 17 -

 
 
SCHEDULE A

OWNERSHIP OF COMPANY SHARES




Beneficial Owner
Number of Common Shares
Number of Preferred Shares
Number of Company Options
 
Description and Number of other voting securities of the Company, if any
VantagePoint Venture Partners IV (Q) L.P.
 
 
42
16,294,200
0
N/A
 
 
 
 
 

- - 18 -
 

EX-99.7 3 ex99-7.htm VOTING AND SUPPORT AGREEMENT VPVP IV PF ex99-7.htm
EXHIBIT 99.7
Execution Version
 
VOTING AND SUPPORT AGREEMENT
 
 
THIS AGREEMENT made as of the 8th day of November, 2010 (the “Agreement”).
 
BETWEEN:
VantagePoint Venture Partners IV Principals Fund, L.P. (the “Shareholder”)
 
AND:
QUEST SOFTWARE, INC., a corporation governed by the laws of Delaware (“Parent”)
 
AND:
BOLTS ACQUISITION CORPORATION (“Acquisition Sub”)

 
WHEREAS the Shareholder is the direct or indirect beneficial owner of, or has control or direction over, that number of issued and outstanding common shares (the “Common Shares”) and/or issued and outstanding Series A Preferred Shares (the “Preferred Shares”) of BakBone Software Incorporated (the “Company”) as set forth on Schedule A attached to this Agreement;
 
 
AND WHEREAS Parent, Acquisition Sub and the Company propose to enter into the Arrangement Agreement (as hereinafter defined) providing for the arrangement involving Parent, Acquisition Sub, the Company and the Securityholders (as hereinafter defined) of the Company pursuant to Section 192 of the Canada Business Corporations Act on and subject to the terms of the Arrangement Agreement, the result of which shall be the acquisition of the Company by Parent or Acquisition Sub (which, together with the other transactions contemplated by the Arrangement Agreement, is collectively referred to in this Agreement as the “Arrangement”);
 
 
AND WHEREAS this Agreement sets out the terms and conditions of the agreement of the Shareholder to: (i) support the Arrangement, (ii) vote or cause to be voted all of the Subject Shares (as hereinafter defined) in favour of the Arrangement Resolution (as hereinafter defined); and (iii) comply with the restrictions, obligations and covenants set forth in this Agreement;
 
 
AND WHEREAS the Shareholder acknowledges that: (i) Parent and Acquisition Sub would not enter into the Arrangement Agreement but for the execution and delivery of this Agreement by the Shareholder; and (ii) it is a condition of Parent’s and Acquisition Sub’s obligations under the Arrangement Agreement to consummate the Arrangement that this Agreement shall not have been terminated;
 
 
THIS AGREEMENT WITNESSES THAT, in consideration of Parent and Acquisition Sub entering into the Arrangement Agreement and of the premises and the respective covenants and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the parties hereto, the parties hereto hereby covenant and agree as follows:
 
 
 
 
 
 
 
 

 
 
ARTICLE 1
INTERPRETATION
 
1.1
Definitions
 
 
In this Agreement:
 
(a)
Acquisition Proposal” has the meaning assigned to such term in the Arrangement Agreement;
 
(b)
Affiliate” of a specified Person means a Person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such specified Person. The term “control” (including the terms “controlling,” “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, or otherwise;
 
(c)
Arrangement Agreement” means the arrangement agreement, dated as of the date hereof, among Parent, Acquisition Sub and the Company, as it may be amended from time to time in accordance with its terms;
 
(d)
Arrangement Resolution” means the resolution to be considered and if thought fit, passed, by the Securityholders at the Meeting to approve the Plan of Arrangement to be substantially in the form and content of Annex B to the Arrangement Agreement;
 
(e)
Business Day” means any day on which commercial banks are generally open for business in San Diego, California, and Calgary, Alberta, other than a Saturday or a Sunday;
 
(f)
Company Options” means options to purchase Common Shares from the Company, whether granted by the Company pursuant to the 2000 Stock Option Plan, the 2002 Stock Option Plan or the BakBone Software Incorporated 2003 Equity Incentive Plan or otherwise;
 
(g)
Company Shareholders” means holders of Company Shares, in their capacities as such;
 
(h)
Company Shares” means, collectively, Common Shares and Preferred Shares;
 
(i)
Company Warrants” means warrants to purchase Common Shares from the Company;
 
(j)
Effective Date” has the meaning assigned to such term in the Arrangement Agreement;
 
(k)
Entity” means any corporation (including any non-profit corporation), general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, company (including any company limited by shares, limited liability company or joint
 
 
 
 
 
 
 
- 2 -

 
 
stock company), firm, society or other enterprise, association, organization or entity (including any Governmental Authority);
 
(l)
Final Order” means the final order of the Court approving the Arrangement under the Canada Business Corporations Act as such order may be affirmed, amended or modified by the Court at any time prior to the Effective Date, or, if appealed, then, unless such appeal is withdrawn, abandoned or denied, as affirmed or as amended on appeal;
 
(m)
Information Circular” means the notice of the Meeting and accompanying management proxy circular, including all schedules and exhibits thereto, and documents incorporated therein, to be sent to the Securityholders in connection with the Meeting, as the same may be amended, supplemented or otherwise modified subject to the Arrangement Agreement;
 
(n)
Interim Order” means the interim order of the Court in respect of the Arrangement, as contemplated by Section 2.3 of the Arrangement Agreement, providing for, among other things, the calling and holding of the Meeting, as such order may be amended, modified, supplemented or varied by the Court;
 
(o)
Investment” has the meaning assigned to such term in Section 2.1(h);
 
(p)
Legal Requirement” means all applicable laws (statutory, common or otherwise), statutes, by-laws, rules, regulations, treaties, ordinances, conventions, orders, codes, policies, notices and directions (having the force of law) and judicial, arbitral, administrative, ministerial or departmental judgments, awards, injunctions, decrees, rulings or other requirements of any Governmental Authority, court or other authority having jurisdiction over the applicable party;
 
(q)
Meeting” means the special meeting of the Securityholders, including any adjournment, adjournments, postponement or postponements thereof, to be called in accordance with the Interim Order to consider the Arrangement Resolution;
 
(r)
Per Share Common Purchase Price” has the meaning assigned to such term in the Arrangement Agreement.
 
(s)
Per Share Preferred Purchase Price” has the meaning assigned to such term in the Arrangement Agreement.
 
(t)
Person” means an individual or Entity;
 
(u)
Plan of Arrangement” means the plan of arrangement substantially in the form and content of Annex C to the Arrangement Agreement as amended, varied or supplemented from time to time in accordance with the Plan of Arrangement or Section 9.1 of the Arrangement Agreement or made at the direction of the Court in the Final Order;
 
(v)
Securityholders” at any time means, collectively, the Company Shareholders, holders of Company Options and holders of Company Warrants at such time;
 
 
 
 
 
 
- 3 -

 
 
(w)
Subject Shares” means all the Common Shares, Preferred Shares and Company Options which the Shareholder beneficially owns, directly or indirectly, or over which the Shareholder has control or direction, as set forth on Schedule A attached to this Agreement, together with any additional Common Shares, Preferred Shares, Company Options and any other voting securities of the Company which the Shareholder becomes the beneficial owner, directly or indirectly, or over which the Shareholder obtains control or direction, whether by acquisition after the date of the Agreement or otherwise including, without limitation, any Common Shares issued upon exercise of Company Options, if any;
 
(x)
Subsidiary” of the Company, Parent or any other Person means an Person with respect to which such Person directly or indirectly owns, beneficially or of record, (A) an amount of voting securities or other interests in such Person that is sufficient to enable such Person to elect at least a majority of the members of such Person’s board of directors or comparable governing body, or (B) at least 50% of the outstanding equity interests issued by such Person; and
 
(y)
Superior Proposal” has the meaning assigned to such term in the Arrangement Agreement.
 
1.2
Definitions in Arrangement Agreement
 
 
All terms used in this Agreement that are not defined in Section 1.1 or elsewhere herein and that are defined in the Arrangement Agreement shall have the respective meanings assigned to them in the Arrangement Agreement.
 
 
ARTICLE 2
COVENANTS OF THE SHAREHOLDER
 
2.1
Negative Covenants
 
 
On the terms and subject to the conditions of this Agreement, the Shareholder hereby covenants and agrees in favour of Parent and Acquisition Sub that, from the date hereof until the termination of this Agreement in accordance with Article 4, and except as otherwise provided in this Agreement, the Shareholder will:
 
(a)
not, directly or indirectly, through any officer, director, employee, representative or agent of the Shareholder, (i) solicit, initiate, knowingly facilitate or knowingly encourage (including by way of furnishing information or entering into any form of agreement, arrangement or understanding) the initiation of any inquiries or proposals that constitute, or may reasonably be expected to constitute, an Acquisition Proposal, (ii) participate in any discussions or negotiations with, furnish information relating to the Company or any of its Subsidiaries or offer or provide access to the properties, assets, books or records of the Company or any of its Subsidiaries to, or otherwise cooperate in any way with, any Person (other than Parent and Acquisition Sub) that is seeking to make, or has made, any proposal or offer or any other efforts or attempts that constitute or reasonably may be
 
 
 
 
 
 
 
- 4 -

 
 
expected to lead to, an Acquisition Proposal, or (iii) approve, accept or enter into any contract, understanding or arrangement with any Person (other than Parent and Acquisition Sub) in respect of an Acquisition Proposal;
 
(b)
immediately terminate any existing discussions, solicitations or negotiations with any Person (other than Parent and Acquisition Sub) with respect to any proposal that constitutes, or may reasonably be expected to constitute, an Acquisition Proposal whether or not initiated by the Shareholder;
 
(c)
as soon as practicable and, in any event, within 24 hours following receipt thereof, notify Parent and Acquisition Sub, at first orally and then in writing, of any future Acquisition Proposal or any inquiry or proposal that reasonably may be expected to lead to an Acquisition Proposal being received by the Shareholder or the Company after the date hereof, of which any of its officers, directors, employees, representatives or agents are or become aware, or any amendments or material correspondence in the Shareholder's possession with respect to the foregoing and a description of the material terms and conditions thereof known to the Shareholder (including the identity of the Person making such proposal, inquiry or request) together with a copy of all documentation relating to any such proposed Acquisition Proposal in the Shareholder's possession;
 
(d)
not release or permit the release of any Person from or waive any confidentiality, non-solicitation or standstill agreement to which the Shareholder and any such Person are parties;
 
(e)
not option, sell, transfer, gift, assign, redeem, exercise any right (other than pursuant to Section 2.2(c)) in respect of, pledge, encumber, grant a security interest in, hypothecate or otherwise convey any of the Subject Shares, or any right or interest therein (legal or equitable), whether by actual disposition, derivative transaction, the sale of any direct or indirect holding company or trust of the Shareholder or otherwise, to any Person or group or enter into any agreement, commitment or understanding to do any of the foregoing;
 
(f)
except in accordance with Section 2.2, not grant or agree to grant any proxy, power of attorney or other right to vote, dispose, or exercise control or direction over, the Subject Shares, or enter into any voting trust, vote pooling or other agreement with respect to the right to vote, or grant a proxy on the Subject Shares of any direct or indirect holding company or trust of the Shareholder, call meetings of Securityholders or give consents or approvals of any kind as to the Subject Shares;
 
(g)
not vote or cause to be voted, not tender or deposit or cause to be tendered or deposited, and not exercise or cause to be exercised any rights in respect of any the Subject Shares in connection with any Acquisition Proposal;
 
(h)
from and after the date hereof, and for a period of 24 months following the Effective Date, the Shareholder shall not (i) own, purchase or acquire any shares, partnership interests, loans, indebtedness, or any other form of securities (including options to acquire any of the foregoing) (collectively referred herein as “Investment”) in Parent, Acquisition Sub or any of their Affiliates listed in Exhibit 21.1 of Parent’s most recent
 
 
 
 
 
 
- 5 -

 
 
Form 10-K as filed with the Securities and Exchange Commission, as such list may be amended or supplemented from time to time by Parent and a copy of which shall be delivered to the Shareholder as soon as practicable thereafter, (ii) direct any Affiliate of the Shareholder to own, purchase or acquire an Investment, or (iii) instruct a third party investment or money manager (including a mutual fund or other investment vehicle) to purchase or cause to be purchased an Investment on behalf of the Shareholder or any such Affiliate; provided, however, that the foregoing shall not apply to any Investment made by a third party investment or money manager (including a mutual fund or other investment vehicle) acting on discretionary authority granted to such third party investment or money manager by the Shareholder; and
 
(i)
publicly announce the Shareholder’s intention to do any of the foregoing; provided, however, that this clause shall not restrict the Shareholder's Schedule 13D reporting obligations under Section 13(d) of the Exchange Act.
 
2.2
Support of the Arrangement
 
 
On the terms and subject to the conditions of this Agreement, the Shareholder hereby covenants and agrees in favour of Parent and Acquisition Sub that, from the date hereof until the termination of this Agreement in accordance with Article 4, the Shareholder will:
 
(a)
take all action necessary to vote or cause to be voted (and not withdraw) the Subject Shares in favour of the Arrangement Resolution at the Meeting including in connection with any separate vote of any sub group of Securityholders that may be required to be taken including, without limitation, duly instructing any intermediaries who hold the Subject Shares to so vote the Subject Shares and, in furtherance of the foregoing, the Shareholder will deliver no later than five Business Days prior to the date of the Meeting a duly executed proxy or a duly executed voting instruction form to the intermediary through which the Shareholder holds the Shareholder’s beneficial interest in the Subject Shares (provided that if the Shareholder is a non objecting beneficial owner, such voting instructions shall be delivered directly to the Company), in each case with a copy to Parent and Acquisition Sub concurrently, and di recting the proxyholder or instructing the intermediary, as the case may be, that the Subject Shares be voted at the Meeting in favour of the Arrangement Resolution and any such proxy or voting instructions shall not be revoked without the written consent of Parent and Acquisition Sub; and
 
(b)
take all action necessary to vote or cause the Subject Shares to be voted (and not withdrawn) against any Acquisition Proposal at any meeting of Securityholders called for the purpose of considering same including, without limitation, duly directing proxyholders or instructing any intermediaries who hold the Subject Shares on behalf of the Shareholder to so vote the Subject Shares; and
 
(c)
if the Arrangement Agreement is amended, or superseded by any further agreement, arrangement or understanding, such that the acquisition of control of the Company and its Subsidiaries, or the acquisition of all or substantially all of the assets of the Company, by Parent or Acquisition Sub or any of their Affiliates is provided for by means of an
 
 
 
 
 
 
 
- 6 -

 
 
alternative structure (“Alternative Structure Transaction”), the Shareholder shall, for greater certainty during the term of this Agreement, upon Parent's written request, at no cost to the Shareholder, (i) deposit the Shareholder’s Subject Shares into a take-over bid and not withdraw them, and/or (ii) vote or cause to be voted all of the Subject Shares in favour of, and not dissent from, such Alternative Structure Transaction; provided, however, that the Shareholder’s obligations under this Section 2.2(c) are conditional upon (A) the consideration per Common Share and/or Preferred Share, as the case may be, to be received by the Shareholder under such Alternative Structure Transaction being in the same form as, and being equal to or greater than, the Per Share Common Purchase Price and/or the Per Share Preferred Purchase Price, as the case may be, to be received by the Shareholder pursuant to the Arrangement, and (B) such Alternative Structure Transaction not having any other adverse effect on the Shareholder, including with respect to tax consequences.
 
2.3
Superior Proposal
 
 
If a Superior Proposal is made, the Shareholder hereby agrees, subject to the termination of this Agreement in accordance with Article 4, that it shall continue to comply with its restrictions, obligations and covenants as set forth in this Agreement.
 
2.4
Fiduciary Duties of Shareholder
 
 
Notwithstanding any provision of this Agreement to the contrary, a Shareholder or a shareholder, manager, partner, officer, director or employee of a Shareholder that is a director or officer of the Company shall not be limited or restricted in any way whatsoever in the exercise of his or her fiduciary duties as a director or officer of the Company or any of its Subsidiaries, including without limitation, responding in his or her capacity as a director or officer of the Company or any of its Subsidiaries to a bona fide written Acquisition Proposal and providing information to the Person making such Acquisition Proposal provided that the Company Board has determined in good faith, after receiving the advice of its outside legal counsel and financial advisor, that such Acquisition Proposal received by the Company constitutes or could reasonably be expected to lead to a Superior Proposal and subject to compliance with the Arrangement Agreement.
 
ARTICLE 3
REPRESENTATIONS AND WARRANTIES
 
3.1
Representations and Warranties of the Shareholder
 
 
The Shareholder hereby represents and warrants to Parent and Acquisition Sub as follows, and acknowledges that Parent and Acquisition Sub are relying upon such representations and warranties in entering into this Agreement:
 
 
 
 
 
 
 
 
- 7 -

 
 
(a)
where the Shareholder is not an individual, the Shareholder is existing and organized under the Legal Requirements of Delaware and has the requisite power and authority to own the assets it currently owns and to conduct its business as it is now being conducted;
 
(b)
the Shareholder has the requisite entity power and authority to enter into this Agreement and to perform and carry out its obligations hereunder. Where the Shareholder is not an individual, the execution and delivery of this Agreement by the Shareholder, the performance of the Shareholder’s obligations under this Agreement and the completion by the Shareholder of the transactions contemplated hereby have been duly authorized by the general partner of the Shareholder, and no other proceedings to be completed or consent to be obtained by the Shareholder are or will be necessary for the corporate authorization of this Agreement and the transactions contemplated hereby;
 
(c)
this Agreement has been duly executed and delivered by the Shareholder and, assuming the due execution and delivery of this Agreement by Parent and Acquisition Sub, constitutes a legal, valid and binding obligation of the Shareholder enforceable against the Shareholder in accordance with its terms, except as may be limited by bankruptcy, insolvency and other Legal Requirements affecting the enforcement of creditors’ rights generally and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction;
 
(d)
the execution and delivery of this Agreement and the completion by the Shareholder of the transactions contemplated hereby:
 
 
(i)
will not, where the Shareholder is not an individual, conflict with the articles, by-laws, partnership agreement, declaration of trust or other constating documents of the Shareholder;
 
 
(ii)
will not conflict with, result in the breach of or constitute a default under any agreement, indenture, contract, lease, deed of trust, licence, option, instrument or other commitment, whether written or oral, to which the Shareholder is a party or by which the Shareholder is or may be bound; and
 
 
(iii)
do not and will not constitute a breach of or violation of or default (or an event which with notice or lapse of time or both would become a default) under any Legal Requirement binding upon the Shareholder which could reasonably be expected to adversely affect the Shareholder's ability to perform its obligations under this Agreement;
 
(e)
the only securities of the Company owned directly or indirectly by or controlled by or under the direction of the Shareholder are the securities set forth on Schedule A attached to this Agreement and, in the case of Subject Shares beneficially owned, the Shareholder is the sole beneficial owner of such securities, except that the Shareholder shares "beneficial ownership" (as that term is defined in Rule 13d-3 under the Exchange Act) of the Subject Shares with VantagePoint Venture Associates IV, L.L.C., James D. Marver and Alan E. Salzman. The number and class of such securities that are held through an intermediary are set forth on Schedule A attached to this Agreement. The Shareholder has
 
 
 
 
 
 
 
- 8 -

 
 
the exclusive right to deal with and exercise all voting rights attributable to the Subject Shares as provided in this Agreement. The Shareholder does not own, directly or indirectly, any securities of any of the Company’s Subsidiaries;
 
(f)
the Shareholder is not a party with any Person to any agreement, warrant or option or any right capable of becoming an agreement, warrant or option for the purchase by such Person of any of the Subject Shares or any right or interest therein (legal or equitable);
 
(g)
none of the Subject Shares is subject to any proxy, voting trust, vote pooling or other agreement with respect to the right to vote, call meetings of Securityholders or give consents or approvals of any kind;
 
(h)
there are no claims, actions, suits or proceedings existing or pending, or (to the knowledge of the Shareholder) threatened against or affecting the Shareholder, and there are no investigations (to the knowledge of the Shareholder) existing, pending or threatened against or affecting the Shareholder, whether at law or in equity, before or by, and there are no judgments, decrees, rules or orders of any Governmental Authority which adversely affect, or could reasonably be expected to adversely affect, the ability of the Shareholder to consummate the transactions contemplated hereby;
 
(i)
the Shareholder (i) has not made any payment or loan to, or borrowed any monies from or is otherwise indebted to, the Company or any of its Subsidiaries; or (ii) is not a party to any agreement or understanding with the Company or any of its Subsidiaries or any officer, director or employee of the Company or any of its Subsidiaries (other than the Persons elected by the Shareholder to serve as directors of the Company);
 
(j)
except for filings that the Shareholder is required to make pursuant to the Securities Act and the Exchange Act, no sanction, ruling, consent, order, exemption, permit, declaration, filing, waiver or other approval of any Governmental Authority or other Person is required to be obtained by the Shareholder in connection with the execution and delivery of this Agreement, the performance by the Shareholder of its obligations hereunder and the consummation by the Shareholder of the transactions contemplated hereby which, if not obtained by the Shareholder, could reasonably be expected to adversely affect the Shareholder's ability to perform its obligations under this Agreement; and
 
(k)
neither the Shareholder nor any Affiliate of the Shareholder (other than any portfolio company) own, directly or indirectly, an Investment in Parent, Acquisition Sub or any of their Affiliates listed in Exhibit 21.1 of Parent’s most recent Form 10-K as filed with the Securities and Exchange Commission, as such list may be amended or supplemented from time to time by Parent and a copy of which shall be delivered to the Shareholder as soon as practicable thereafter, provided that no representation or warranty is made by the Shareholder in respect of any Investment made by a third party investment or money manager (including a mutual fund or other investment vehicle) acting on discretionary authority granted to such third party investment or money manager by the Shareholder or any such Affiliate.
 
 
 
 
 
 
 
- 9 -

 
 
3.2
Representations and Warranties of Parent and Acquisition Sub
 
 
Parent and Acquisition Sub hereby jointly and severally represent and warrant to the Shareholder as follows, and acknowledge that the Shareholder is relying upon such representations and warranties in entering into this Agreement:
 
(a)
Parent is existing and organized under the Legal Requirements of Delaware and has the requisite power and authority to own the assets it currently owns and to conduct its business as it is now being conducted. Acquisition Sub is existing and organized under the Legal Requirements of Canada and has the requisite power and authority to own the assets it currently owns and to conduct its business as it is now being conducted;
 
(b)
each of Parent and Acquisition Sub has the requisite power and authority to enter into this Agreement and to perform and carry out its obligations hereunder. The execution and delivery of this Agreement by Parent and Acquisition Sub, the performance of Parent’s and Acquisition Sub’s obligations under this Agreement and the completion by Parent and Acquisition Sub of the transactions contemplated hereby have been duly authorized by the board of directors of Parent and Acquisition Sub, respectively, and no other proceedings to be completed or consent to be obtained by Parent and Acquisition Sub are or will be necessary for the corporate authorization of this Agreement and the transactions contemplated hereby;
 
(c)
this Agreement has been duly executed and delivered by each of Parent and Acquisition Sub and, assuming the due execution and delivery of this Agreement by the Shareholder, constitutes a legal, valid and binding obligation of Parent and Acquisition Sub, enforceable against Parent and Acquisition Sub in accordance with its terms, except as may be limited by bankruptcy, insolvency and other Legal Requirements affecting the enforcement of creditors’ rights generally and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction; and
 
(d)
the execution and delivery of this Agreement and the completion by each of them of the transactions contemplated hereby:
 
 
(i)
will not conflict with Parent’s and Acquisition Sub’s articles and by-laws; and
 
 
(ii)
do not and will not constitute a breach of or violation of or default (or an event which with notice or lapse of time or both would become a default) under any Legal Requirement binding upon Parent or Acquisition Sub.
 
3.3
Survival
 
The representations and warranties of the Shareholder and of Parent and Acquisition Sub set out in Sections 3.1 and 3.2, respectively, shall survive and shall continue in full force and effect for the benefit of the Shareholder and of Parent and Acquisition Sub, respectively, until  the termination of this Agreement in accordance with its terms.
 
 
 
 
 
 
 
- 10 -

 

ARTICLE 4
TERMINATION
 
4.1
Termination by Parent and Acquisition Sub
 
 
Parent and Acquisition Sub when not in material default in the performance of their respective obligations under this Agreement, may, without prejudice to any of their respective rights hereunder and in their sole discretion, terminate this Agreement by written notice to the Shareholder if:
 
(a)
any of the representations and warranties of the Shareholder under this Agreement (except for the representations and warranties set forth in Sections 3.1(d)(ii), 3.1(d)(iii) and 3.1(j)) shall not be true and correct in all respects;
 
(b)
any of the representations and warranties of the Shareholder set forth in Sections 3.1(d)(ii), 3.1(d)(iii) or 3.1(j) shall not be true and correct in all material respects; or
 
(c)
the Shareholder shall not have performed in any material respect any covenant required to be performed by it under this Agreement (unless such non-performance, if capable of being remedied, is remedied by the Shareholder within ten (10) days from the date of notice of such non-performance from Parent or unless such non-performance is a direct result of any non-performance by Parent or Acquisition Sub of its obligations under this Agreement).
 
4.2
Automatic Termination
 
 
This Agreement shall automatically terminate, without any action on the part of Parent, Acquisition Sub, the Shareholder or any other Person, on the earliest to occur of the following: (i) the date upon which the Arrangement is completed; (ii) the date upon which the Arrangement Agreement is terminated in accordance with its terms; and (iii) the date upon which Parent, Acquisition Sub and the Shareholder mutually agree by written instrument to terminate this Agreement.
 
4.3
Effect of Termination
 
 
If this Agreement is terminated in accordance with this Article 4, the provisions of this Agreement will become void and no party hereto shall have liability to any other party hereto, except in respect of a breach of this Agreement which occurred prior to such termination and the Shareholder shall be entitled to withdraw any form of proxy or voting instructions in respect of the Arrangement Resolution which the Shareholder may have given. Notwithstanding anything to the contrary contained in this Agreement, the covenants and obligations of the Shareholder set out in Section 2.1(h) shall only survive the termination of this Agreement in the event of the consummation of the Arrangement and shall continue in full force and effect for the benefit of Parent and Acquisition Sub only if such consummation occurs.
 
 
 
 
 
 
 
- 11 -

 
 
ARTICLE 5
GENERAL
 
5.1
Further Assurances
 
 
Each of the Shareholder, Parent and Acquisition Sub will, from time to time prior to completion of the Arrangement, execute and deliver all such further documents and instruments and do all such acts and things as the other parties hereto may reasonably require and at the requesting party’s cost to effectively carry out or better evidence or perfect the full intent and meaning of this Agreement.
 
5.2
Investigation by Parties
 
 
No investigations made by or on behalf of Parent or Acquisition Sub or any of their authorized agents at any time shall have the effect of waiving, diminishing the scope of or otherwise affecting any representation, warranty or covenant made by the Shareholder herein or pursuant hereto.
 
5.3
Additional Securities
 
 
In the event that the Shareholder acquires any additional Common Shares, Preferred Shares, Company Options or any other voting securities of the Company after the date hereof, then the Shareholder shall notify Parent and Acquisition Sub of such event and Parent and Acquisition Sub may prepare and deliver to the Shareholder an updated Schedule A attached to this Agreement whereupon such updated Schedule A shall be deemed to form part of this Agreement.
 
5.4
Assignment
 
 
This Agreement may not be assigned by any party hereto without the express prior written consent of the other parties hereto, provided that Parent and/or Acquisition Sub may assign all or any part of their rights and/or obligations under this Agreement to a direct or indirect wholly owned Subsidiary of Parent or Acquisition Sub, or an Affiliate of Parent or Acquisition Sub, without consent, but, if such assignment takes place, Parent and Acquisition Sub shall continue to be liable jointly and severally with the assignee for any obligations hereunder.
 
5.5
Public Announcements
 
 
Except to the extent required by Legal Requirements, no public announcement or press release concerning the matters referred to in this Agreement may be made by Parent or Acquisition Sub or by the Shareholder without the prior written consent of the other parties hereto, such consent not to be unreasonably withheld. Except to the extent required by Legal
 
 
 
 
 
 
 
- 12 -

 
 
Requirements, no copy of this Agreement may be provided by Parent and Acquisition Sub or by the Shareholder to any other Person, except their respective partners, managers, directors, officers, employees, advisors (including, without limitation, legal counsel) or lenders, without the prior written consent of the other parties hereto, such consent not be unreasonably withheld. The provisions of this Agreement may be summarized in the Information Circular, in any material change report filed by the Company in connection with the public announcement of the Arrangement and in any filing or statement that the Shareholder is required to make with or provide to the U.S. Securities and Exchange Commission.
 
5.6
No Third Party Beneficiaries
 
 
This Agreement shall be binding upon and inure solely to the benefit of each of the parties hereto, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
 
5.7
Waiver
 
 
No waiver, whether by conduct or otherwise, of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provisions (whether or not similar) nor shall such waiver constitute a continuing waiver unless otherwise expressly provided in an instrument duly executed by the parties to be bound thereby.
 
5.8
Time
 
 
Time shall be of the essence of this Agreement.
 
5.9
Governing Law and Venue
 
 
This Agreement shall be governed by and construed in accordance with the domestic Legal Requirements of the Province of Alberta and the federal laws of Canada applicable therein without giving effect to any choice or conflict of law provision or rule (whether of the Province of Alberta or any other jurisdiction) that would cause the application of the Legal Requirements of any jurisdiction other than the Province of Alberta and the laws of Canada applicable therein.  All disputes arising out of or in connection with this Agreement shall be solely and exclusively resolved by a court of competent jurisdiction in the Province of Alberta.  The parties hereby consent to the jurisdiction of the Courts of Alberta and waive any objections or rights as to forum nonconvenience, lack of personal jurisdiction or similar ground s with respect to any dispute relating to this Agreement.
 
 
 
 
 
 
 
- 13 -

 
 
5.10
Entire Agreement
 
This Agreement, including the schedules hereto, constitutes the entire agreement and understanding between and among the parties hereto with respect to the subject matter hereof and supersedes any prior agreement, representation or understanding with respect thereto.
 
5.11
Amendments
 
 
This Agreement may not be modified, amended, altered or supplemented, except upon the execution and delivery of a written agreement executed by all of the parties hereto.
 
5.12
Notices
 
 
Any notice, request, consent, agreement or approval which may or is required to be given pursuant to this Agreement shall be in writing and shall be sufficiently given or made if delivered, or sent by telecopier, in the case of:
 
(a)
Parent or Acquisition Sub, addressed as follows:
Quest Software, Inc.      
 5 Polaris Way      
 Aliso Viejo CA  92656      
 United States of America      
       
 Attention:    David Cramer    
 Facsimile No:       (949) 754-8799    
  
with a copy (which shall not constitute notice) to:
 
 
 Latham & Watkins LLP      
 650 Town Center Drive      
 20th Floor      
 Costa Mesa CA  92626-1925      
 United States of America      
       
 Attention:   Charles K. Ruck    
 Facsimile No:  (714) 755-8290    
 
 
 
and a copy (which shall not constitute notice) to:
 
Stikeman Elliott LLP      
1155 René-Lévesque Blvd. West      
40th Floor      
Montreal QC  H3B 3V2      
       
 Attention:    John W. Leopold    
 Facsimile No:  (514) 397-3422    
 
 
 
 
 
 
 
 
- 14 -

 
 
(b)
the Shareholder, addressed as follows:
 
VantagePoint Venture Partners IV Principals Fund, L.P.
1001 Bayhill Drive
Suite 300
San Bruno, CA 94066
Attention:  General Counsel
Facsimile: (650) 869-6078

with a copies (which shall not constitute notice) to:
 

VantagePoint Venture Partners
1001 Bayhill Drive
Suite 300
San Bruno, CA 94066
Attention:  General Counsel
Facsimile:  (650) 869-6078

 
Cooley LLP
3175 Hanover Street
Palo Alto, CA 94304-1130
Attention:  David A. Lipkin
Facsimile No:  650-849-7400
 
 
and
 
Burnet, Duckworth & Palmer LLP
Suite 1400, 350 7th Ave SW
Calgary, AB T2P 3N9
Attention: Kelsey Clark
Facsimile No: 403-260-0391
 
 
or to such other address as the relevant Person may from time to time advise by notice in writing given pursuant to this Section. The date of receipt of any such notice, request, consent, agreement or approval shall be deemed to be the date of delivery or sending thereof if sent or delivered during normal business hours on a Business Day at the place of receipt and, otherwise, on the next following Business Day.
 
 
 
 
 
 
 
- 15 -

 
 
5.13
Specific Performance and other Equitable Rights
 
 
The Shareholder recognizes and acknowledges that this Agreement is an integral part of the Arrangement, that Parent and Acquisition Sub would not enter into the Arrangement Agreement unless this Agreement was executed, and accordingly acknowledges and agrees that a breach by the Shareholder of any covenants or other commitments contained in this Agreement will cause Parent and Acquisition to sustain injury for which it would not have an adequate remedy at law for money damages. Each of the parties hereto agree that in the event of any breach or threatened breach, the aggrieved or prospective aggrieved party (or parties) shall be entitled to the remedy of specific performance of such covenants or commitments and preliminary and permanent injunctive and other equitable relief in addition to any other remedy to which it may be entitled, at law or in equity.
 
5.14
Expenses
 
 
Each of the parties hereto shall pay its respective legal, financial advisory and accounting costs and expenses incurred in connection with the preparation, execution and delivery of this Agreement and all documents and instruments executed or prepared pursuant hereto and any other costs and expenses whatsoever and howsoever incurred.
 
5.15
Counterparts
 
 
This Agreement may be executed in one or more counterparts which together shall be deemed to constitute one valid and binding agreement, and delivery of the counterparts may be affected by means of telecopier transmission.
 
[Signature Page follows]
 
 
 
 
 
 
 
 
- 16 -

 
 
IN WITNESS WHEREOF the parties have executed this Agreement as of the date first written above.
 
 
QUEST SOFTWARE, INC.
   
   
   
 
By:
/s/ David Cramer  
   
Signature of Authorized Signatory
    David Cramer  
   
Name of Authorized Signatory
    Vice President, General Counsel & Secretary  
   
Title
   
 
 
BOLTS ACQUISITION CORPORATION
   
   
   
 
By:
/s/ David Cramer  
   
Signature of Authorized Signatory
    David Cramer  
   
Name of Authorized Signatory
    Vice President, General Counsel & Secretary  
   
Title
   
   
 
VANTAGEPOINT VENTURE PARTNERS IV PRINCIPALS FUND, L.P.
   
   
 
By: VantagePoint Venture Associates IV, L.L.C., Its General Partner
       
       
       
 
By:
/s/ Alan E. Salzman
 
   
Name: Alan E. Salzman,
     
   
Managing Member

 
 
 
 
 
 
- 17 -

 
 
SCHEDULE A

OWNERSHIP OF COMPANY SHARES




Beneficial Owner
Number of Common Shares
Number of Preferred Shares
Number of Company Options
 
Description and Number of other voting securities of the Company, if any
VantagePoint Venture Partners IV Principals Fund, L.P.
 
 
0 shares
72,600 shares
0
N/A
 
 
 
 
 

- - 18 -
 
 

EX-99.8 4 ex99-8.htm VOTING AND SUPPORT AGREEMENT VPVP IV ex99-8.htm
EXHIBIT 99.8
Execution Version
 
VOTING AND SUPPORT AGREEMENT
 
 
THIS AGREEMENT made as of the 8th day of November, 2010 (the “Agreement”).
 
BETWEEN:
VantagePoint Venture Partners IV L.P. (the “Shareholder”)
 
AND:
QUEST SOFTWARE, INC., a corporation governed by the laws of Delaware (“Parent”)
 
AND:
BOLTS ACQUISITION CORPORATION (“Acquisition Sub”)

 
WHEREAS the Shareholder is the direct or indirect beneficial owner of, or has control or direction over, that number of issued and outstanding common shares (the “Common Shares”) and/or issued and outstanding Series A Preferred Shares (the “Preferred Shares”) of BakBone Software Incorporated (the “Company”) as set forth on Schedule A attached to this Agreement;
 
 
AND WHEREAS Parent, Acquisition Sub and the Company propose to enter into the Arrangement Agreement (as hereinafter defined) providing for the arrangement involving Parent, Acquisition Sub, the Company and the Securityholders (as hereinafter defined) of the Company pursuant to Section 192 of the Canada Business Corporations Act on and subject to the terms of the Arrangement Agreement, the result of which shall be the acquisition of the Company by Parent or Acquisition Sub (which, together with the other transactions contemplated by the Arrangement Agreement, is collectively referred to in this Agreement as the “Arrangement”);
 
 
AND WHEREAS this Agreement sets out the terms and conditions of the agreement of the Shareholder to: (i) support the Arrangement, (ii) vote or cause to be voted all of the Subject Shares (as hereinafter defined) in favour of the Arrangement Resolution (as hereinafter defined); and (iii) comply with the restrictions, obligations and covenants set forth in this Agreement;
 
 
AND WHEREAS the Shareholder acknowledges that: (i) Parent and Acquisition Sub would not enter into the Arrangement Agreement but for the execution and delivery of this Agreement by the Shareholder; and (ii) it is a condition of Parent’s and Acquisition Sub’s obligations under the Arrangement Agreement to consummate the Arrangement that this Agreement shall not have been terminated;
 
 
THIS AGREEMENT WITNESSES THAT, in consideration of Parent and Acquisition Sub entering into the Arrangement Agreement and of the premises and the respective covenants and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each of the parties hereto, the parties hereto hereby covenant and agree as follows:
 
 
 
 
 
 
 
 

 
 
ARTICLE 1
INTERPRETATION
 
1.1
Definitions
 
 
In this Agreement:
 
(a)
Acquisition Proposal” has the meaning assigned to such term in the Arrangement Agreement;
 
(b)
Affiliate” of a specified Person means a Person who, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such specified Person. The term “control” (including the terms “controlling,” “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, or otherwise;
 
(c)
Arrangement Agreement” means the arrangement agreement, dated as of the date hereof, among Parent, Acquisition Sub and the Company, as it may be amended from time to time in accordance with its terms;
 
(d)
Arrangement Resolution” means the resolution to be considered and if thought fit, passed, by the Securityholders at the Meeting to approve the Plan of Arrangement to be substantially in the form and content of Annex B to the Arrangement Agreement;
 
(e)
Business Day” means any day on which commercial banks are generally open for business in San Diego, California, and Calgary, Alberta, other than a Saturday or a Sunday;
 
(f)
Company Options” means options to purchase Common Shares from the Company, whether granted by the Company pursuant to the 2000 Stock Option Plan, the 2002 Stock Option Plan or the BakBone Software Incorporated 2003 Equity Incentive Plan or otherwise;
 
(g)
Company Shareholders” means holders of Company Shares, in their capacities as such;
 
(h)
Company Shares” means, collectively, Common Shares and Preferred Shares;
 
(i)
Company Warrants” means warrants to purchase Common Shares from the Company;
 
(j)
Effective Date” has the meaning assigned to such term in the Arrangement Agreement;
 
(k)
Entity” means any corporation (including any non-profit corporation), general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, company (including any company limited by shares, limited liability company or joint
 
 
 
 
 
 
 
- 2 -

 
 
stock company), firm, society or other enterprise, association, organization or entity (including any Governmental Authority);
 
(l)
Final Order” means the final order of the Court approving the Arrangement under the Canada Business Corporations Act as such order may be affirmed, amended or modified by the Court at any time prior to the Effective Date, or, if appealed, then, unless such appeal is withdrawn, abandoned or denied, as affirmed or as amended on appeal;
 
(m)
Information Circular” means the notice of the Meeting and accompanying management proxy circular, including all schedules and exhibits thereto, and documents incorporated therein, to be sent to the Securityholders in connection with the Meeting, as the same may be amended, supplemented or otherwise modified subject to the Arrangement Agreement;
 
(n)
Interim Order” means the interim order of the Court in respect of the Arrangement, as contemplated by Section 2.3 of the Arrangement Agreement, providing for, among other things, the calling and holding of the Meeting, as such order may be amended, modified, supplemented or varied by the Court;
 
(o)
Investment” has the meaning assigned to such term in Section 2.1(h);
 
(p)
Legal Requirement” means all applicable laws (statutory, common or otherwise), statutes, by-laws, rules, regulations, treaties, ordinances, conventions, orders, codes, policies, notices and directions (having the force of law) and judicial, arbitral, administrative, ministerial or departmental judgments, awards, injunctions, decrees, rulings or other requirements of any Governmental Authority, court or other authority having jurisdiction over the applicable party;
 
(q)
Meeting” means the special meeting of the Securityholders, including any adjournment, adjournments, postponement or postponements thereof, to be called in accordance with the Interim Order to consider the Arrangement Resolution;
 
(r)
Per Share Common Purchase Price” has the meaning assigned to such term in the Arrangement Agreement.
 
(s)
Per Share Preferred Purchase Price” has the meaning assigned to such term in the Arrangement Agreement.
 
(t)
Person” means an individual or Entity;
 
(u)
Plan of Arrangement” means the plan of arrangement substantially in the form and content of Annex C to the Arrangement Agreement as amended, varied or supplemented from time to time in accordance with the Plan of Arrangement or Section 9.1 of the Arrangement Agreement or made at the direction of the Court in the Final Order;
 
(v)
Securityholders” at any time means, collectively, the Company Shareholders, holders of Company Options and holders of Company Warrants at such time;
 
 
 
 
 
 
- 3 -

 
 
(w)
Subject Shares” means all the Common Shares, Preferred Shares and Company Options which the Shareholder beneficially owns, directly or indirectly, or over which the Shareholder has control or direction, as set forth on Schedule A attached to this Agreement, together with any additional Common Shares, Preferred Shares, Company Options and any other voting securities of the Company which the Shareholder becomes the beneficial owner, directly or indirectly, or over which the Shareholder obtains control or direction, whether by acquisition after the date of the Agreement or otherwise including, without limitation, any Common Shares issued upon exercise of Company Options, if any;
 
(x)
Subsidiary” of the Company, Parent or any other Person means an Person with respect to which such Person directly or indirectly owns, beneficially or of record, (A) an amount of voting securities or other interests in such Person that is sufficient to enable such Person to elect at least a majority of the members of such Person’s board of directors or comparable governing body, or (B) at least 50% of the outstanding equity interests issued by such Person; and
 
(y)
Superior Proposal” has the meaning assigned to such term in the Arrangement Agreement.
 
1.2
Definitions in Arrangement Agreement
 
 
All terms used in this Agreement that are not defined in Section 1.1 or elsewhere herein and that are defined in the Arrangement Agreement shall have the respective meanings assigned to them in the Arrangement Agreement.
 
 
ARTICLE 2
COVENANTS OF THE SHAREHOLDER
 
2.1
Negative Covenants
 
 
On the terms and subject to the conditions of this Agreement, the Shareholder hereby covenants and agrees in favour of Parent and Acquisition Sub that, from the date hereof until the termination of this Agreement in accordance with Article 4, and except as otherwise provided in this Agreement, the Shareholder will:
 
(a)
not, directly or indirectly, through any officer, director, employee, representative or agent of the Shareholder, (i) solicit, initiate, knowingly facilitate or knowingly encourage (including by way of furnishing information or entering into any form of agreement, arrangement or understanding) the initiation of any inquiries or proposals that constitute, or may reasonably be expected to constitute, an Acquisition Proposal, (ii) participate in any discussions or negotiations with, furnish information relating to the Company or any of its Subsidiaries or offer or provide access to the properties, assets, books or records of the Company or any of its Subsidiaries to, or otherwise cooperate in any way with, any Person (other than Parent and Acquisition Sub) that is seeking to make, or has made, any proposal or offer or any other efforts or attempts that constitute or reasonably may be
 
 
 
 
 
 
 
- 4 -

 
 
expected to lead to, an Acquisition Proposal, or (iii) approve, accept or enter into any contract, understanding or arrangement with any Person (other than Parent and Acquisition Sub) in respect of an Acquisition Proposal;
 
(b)
immediately terminate any existing discussions, solicitations or negotiations with any Person (other than Parent and Acquisition Sub) with respect to any proposal that constitutes, or may reasonably be expected to constitute, an Acquisition Proposal whether or not initiated by the Shareholder;
 
(c)
as soon as practicable and, in any event, within 24 hours following receipt thereof, notify Parent and Acquisition Sub, at first orally and then in writing, of any future Acquisition Proposal or any inquiry or proposal that reasonably may be expected to lead to an Acquisition Proposal being received by the Shareholder or the Company after the date hereof, of which any of its officers, directors, employees, representatives or agents are or become aware, or any amendments or material correspondence in the Shareholder's possession with respect to the foregoing and a description of the material terms and conditions thereof known to the Shareholder (including the identity of the Person making such proposal, inquiry or request) together with a copy of all documentation relating to any such proposed Acquisition Proposal in the Shareholder's possession;
 
(d)
not release or permit the release of any Person from or waive any confidentiality, non-solicitation or standstill agreement to which the Shareholder and any such Person are parties;
 
(e)
not option, sell, transfer, gift, assign, redeem, exercise any right (other than pursuant to Section 2.2(c)) in respect of, pledge, encumber, grant a security interest in, hypothecate or otherwise convey any of the Subject Shares, or any right or interest therein (legal or equitable), whether by actual disposition, derivative transaction, the sale of any direct or indirect holding company or trust of the Shareholder or otherwise, to any Person or group or enter into any agreement, commitment or understanding to do any of the foregoing;
 
(f)
except in accordance with Section 2.2, not grant or agree to grant any proxy, power of attorney or other right to vote, dispose, or exercise control or direction over, the Subject Shares, or enter into any voting trust, vote pooling or other agreement with respect to the right to vote, or grant a proxy on the Subject Shares of any direct or indirect holding company or trust of the Shareholder, call meetings of Securityholders or give consents or approvals of any kind as to the Subject Shares;
 
(g)
not vote or cause to be voted, not tender or deposit or cause to be tendered or deposited, and not exercise or cause to be exercised any rights in respect of any the Subject Shares in connection with any Acquisition Proposal;
 
(h)
from and after the date hereof, and for a period of 24 months following the Effective Date, the Shareholder shall not (i) own, purchase or acquire any shares, partnership interests, loans, indebtedness, or any other form of securities (including options to acquire any of the foregoing) (collectively referred herein as “Investment”) in Parent, Acquisition Sub or any of their Affiliates listed in Exhibit 21.1 of Parent’s most recent
 
 
 
 
 
 
- 5 -

 
 
Form 10-K as filed with the Securities and Exchange Commission, as such list may be amended or supplemented from time to time by Parent and a copy of which shall be delivered to the Shareholder as soon as practicable thereafter, (ii) direct any Affiliate of the Shareholder to own, purchase or acquire an Investment, or (iii) instruct a third party investment or money manager (including a mutual fund or other investment vehicle) to purchase or cause to be purchased an Investment on behalf of the Shareholder or any such Affiliate; provided, however, that the foregoing shall not apply to any Investment made by a third party investment or money manager (including a mutual fund or other investment vehicle) acting on discretionary authority granted to such third party investment or money manager by the Shareholder; and
 
(i)
publicly announce the Shareholder’s intention to do any of the foregoing; provided, however, that this clause shall not restrict the Shareholder's Schedule 13D reporting obligations under Section 13(d) of the Exchange Act.
 
2.2
Support of the Arrangement
 
 
On the terms and subject to the conditions of this Agreement, the Shareholder hereby covenants and agrees in favour of Parent and Acquisition Sub that, from the date hereof until the termination of this Agreement in accordance with Article 4, the Shareholder will:
 
(a)
take all action necessary to vote or cause to be voted (and not withdraw) the Subject Shares in favour of the Arrangement Resolution at the Meeting including in connection with any separate vote of any sub group of Securityholders that may be required to be taken including, without limitation, duly instructing any intermediaries who hold the Subject Shares to so vote the Subject Shares and, in furtherance of the foregoing, the Shareholder will deliver no later than five Business Days prior to the date of the Meeting a duly executed proxy or a duly executed voting instruction form to the intermediary through which the Shareholder holds the Shareholder’s beneficial interest in the Subject Shares (provided that if the Shareholder is a non objecting beneficial owner, such voting instructions shall be delivered directly to the Company), in each case with a copy to Parent and Acquisition Sub concurrently, and di recting the proxyholder or instructing the intermediary, as the case may be, that the Subject Shares be voted at the Meeting in favour of the Arrangement Resolution and any such proxy or voting instructions shall not be revoked without the written consent of Parent and Acquisition Sub; and
 
(b)
take all action necessary to vote or cause the Subject Shares to be voted (and not withdrawn) against any Acquisition Proposal at any meeting of Securityholders called for the purpose of considering same including, without limitation, duly directing proxyholders or instructing any intermediaries who hold the Subject Shares on behalf of the Shareholder to so vote the Subject Shares; and
 
(c)
if the Arrangement Agreement is amended, or superseded by any further agreement, arrangement or understanding, such that the acquisition of control of the Company and its Subsidiaries, or the acquisition of all or substantially all of the assets of the Company, by Parent or Acquisition Sub or any of their Affiliates is provided for by means of an
 
 
 
 
 
 
 
- 6 -

 
 
alternative structure (“Alternative Structure Transaction”), the Shareholder shall, for greater certainty during the term of this Agreement, upon Parent's written request, at no cost to the Shareholder, (i) deposit the Shareholder’s Subject Shares into a take-over bid and not withdraw them, and/or (ii) vote or cause to be voted all of the Subject Shares in favour of, and not dissent from, such Alternative Structure Transaction; provided, however, that the Shareholder’s obligations under this Section 2.2(c) are conditional upon (A) the consideration per Common Share and/or Preferred Share, as the case may be, to be received by the Shareholder under such Alternative Structure Transaction being in the same form as, and being equal to or greater than, the Per Share Common Purchase Price and/or the Per Share Preferred Purchase Price, as the case may be, to be received by the Shareholder pursuant to the Arrangement, and (B) such Alternative Structure Transaction not having any other adverse effect on the Shareholder, including with respect to tax consequences.
 
2.3
Superior Proposal
 
 
If a Superior Proposal is made, the Shareholder hereby agrees, subject to the termination of this Agreement in accordance with Article 4, that it shall continue to comply with its restrictions, obligations and covenants as set forth in this Agreement.
 
2.4
Fiduciary Duties of Shareholder
 
 
Notwithstanding any provision of this Agreement to the contrary, a Shareholder or a shareholder, manager, partner, officer, director or employee of a Shareholder that is a director or officer of the Company shall not be limited or restricted in any way whatsoever in the exercise of his or her fiduciary duties as a director or officer of the Company or any of its Subsidiaries, including without limitation, responding in his or her capacity as a director or officer of the Company or any of its Subsidiaries to a bona fide written Acquisition Proposal and providing information to the Person making such Acquisition Proposal provided that the Company Board has determined in good faith, after receiving the advice of its outside legal counsel and financial advisor, that such Acquisition Proposal received by the Company constitutes or could reasonably be expected to lead to a Superior Proposal and subject to compliance with the Arrangement Agreement.
 
ARTICLE 3
REPRESENTATIONS AND WARRANTIES
 
3.1
Representations and Warranties of the Shareholder
 
 
The Shareholder hereby represents and warrants to Parent and Acquisition Sub as follows, and acknowledges that Parent and Acquisition Sub are relying upon such representations and warranties in entering into this Agreement:
 
 
 
 
 
 
 
 
- 7 -

 
 
(a)
where the Shareholder is not an individual, the Shareholder is existing and organized under the Legal Requirements of Delaware and has the requisite power and authority to own the assets it currently owns and to conduct its business as it is now being conducted;
 
(b)
the Shareholder has the requisite entity power and authority to enter into this Agreement and to perform and carry out its obligations hereunder. Where the Shareholder is not an individual, the execution and delivery of this Agreement by the Shareholder, the performance of the Shareholder’s obligations under this Agreement and the completion by the Shareholder of the transactions contemplated hereby have been duly authorized by the general partner of the Shareholder, and no other proceedings to be completed or consent to be obtained by the Shareholder are or will be necessary for the corporate authorization of this Agreement and the transactions contemplated hereby;
 
(c)
this Agreement has been duly executed and delivered by the Shareholder and, assuming the due execution and delivery of this Agreement by Parent and Acquisition Sub, constitutes a legal, valid and binding obligation of the Shareholder enforceable against the Shareholder in accordance with its terms, except as may be limited by bankruptcy, insolvency and other Legal Requirements affecting the enforcement of creditors’ rights generally and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction;
 
(d)
the execution and delivery of this Agreement and the completion by the Shareholder of the transactions contemplated hereby:
 
 
(i)
will not, where the Shareholder is not an individual, conflict with the articles, by-laws, partnership agreement, declaration of trust or other constating documents of the Shareholder;
 
 
(ii)
will not conflict with, result in the breach of or constitute a default under any agreement, indenture, contract, lease, deed of trust, licence, option, instrument or other commitment, whether written or oral, to which the Shareholder is a party or by which the Shareholder is or may be bound; and
 
 
(iii)
do not and will not constitute a breach of or violation of or default (or an event which with notice or lapse of time or both would become a default) under any Legal Requirement binding upon the Shareholder which could reasonably be expected to adversely affect the Shareholder's ability to perform its obligations under this Agreement;
 
(e)
the only securities of the Company owned directly or indirectly by or controlled by or under the direction of the Shareholder are the securities set forth on Schedule A attached to this Agreement and, in the case of Subject Shares beneficially owned, the Shareholder is the sole beneficial owner of such securities, except that the Shareholder shares "beneficial ownership" (as that term is defined in Rule 13d-3 under the Exchange Act) of the Subject Shares with VantagePoint Venture Associates IV, L.L.C., James D. Marver and Alan E. Salzman. The number and class of such securities that are held through an intermediary are set forth on Schedule A attached to this Agreement. The Shareholder has
 
 
 
 
 
 
 
- 8 -

 
 
the exclusive right to deal with and exercise all voting rights attributable to the Subject Shares as provided in this Agreement. The Shareholder does not own, directly or indirectly, any securities of any of the Company’s Subsidiaries;
 
(f)
the Shareholder is not a party with any Person to any agreement, warrant or option or any right capable of becoming an agreement, warrant or option for the purchase by such Person of any of the Subject Shares or any right or interest therein (legal or equitable);
 
(g)
none of the Subject Shares is subject to any proxy, voting trust, vote pooling or other agreement with respect to the right to vote, call meetings of Securityholders or give consents or approvals of any kind;
 
(h)
there are no claims, actions, suits or proceedings existing or pending, or (to the knowledge of the Shareholder) threatened against or affecting the Shareholder, and there are no investigations (to the knowledge of the Shareholder) existing, pending or threatened against or affecting the Shareholder, whether at law or in equity, before or by, and there are no judgments, decrees, rules or orders of any Governmental Authority which adversely affect, or could reasonably be expected to adversely affect, the ability of the Shareholder to consummate the transactions contemplated hereby;
 
(i)
the Shareholder (i) has not made any payment or loan to, or borrowed any monies from or is otherwise indebted to, the Company or any of its Subsidiaries; or (ii) is not a party to any agreement or understanding with the Company or any of its Subsidiaries or any officer, director or employee of the Company or any of its Subsidiaries (other than the Persons elected by the Shareholder to serve as directors of the Company);
 
(j)
except for filings that the Shareholder is required to make pursuant to the Securities Act and the Exchange Act, no sanction, ruling, consent, order, exemption, permit, declaration, filing, waiver or other approval of any Governmental Authority or other Person is required to be obtained by the Shareholder in connection with the execution and delivery of this Agreement, the performance by the Shareholder of its obligations hereunder and the consummation by the Shareholder of the transactions contemplated hereby which, if not obtained by the Shareholder, could reasonably be expected to adversely affect the Shareholder's ability to perform its obligations under this Agreement; and
 
(k)
neither the Shareholder nor any Affiliate of the Shareholder (other than any portfolio company) own, directly or indirectly, an Investment in Parent, Acquisition Sub or any of their Affiliates listed in Exhibit 21.1 of Parent’s most recent Form 10-K as filed with the Securities and Exchange Commission, as such list may be amended or supplemented from time to time by Parent and a copy of which shall be delivered to the Shareholder as soon as practicable thereafter, provided that no representation or warranty is made by the Shareholder in respect of any Investment made by a third party investment or money manager (including a mutual fund or other investment vehicle) acting on discretionary authority granted to such third party investment or money manager by the Shareholder or any such Affiliate.
 
 
 
 
 
 
 
- 9 -

 
 
3.2
Representations and Warranties of Parent and Acquisition Sub
 
 
Parent and Acquisition Sub hereby jointly and severally represent and warrant to the Shareholder as follows, and acknowledge that the Shareholder is relying upon such representations and warranties in entering into this Agreement:
 
(a)
Parent is existing and organized under the Legal Requirements of Delaware and has the requisite power and authority to own the assets it currently owns and to conduct its business as it is now being conducted. Acquisition Sub is existing and organized under the Legal Requirements of Canada and has the requisite power and authority to own the assets it currently owns and to conduct its business as it is now being conducted;
 
(b)
each of Parent and Acquisition Sub has the requisite power and authority to enter into this Agreement and to perform and carry out its obligations hereunder. The execution and delivery of this Agreement by Parent and Acquisition Sub, the performance of Parent’s and Acquisition Sub’s obligations under this Agreement and the completion by Parent and Acquisition Sub of the transactions contemplated hereby have been duly authorized by the board of directors of Parent and Acquisition Sub, respectively, and no other proceedings to be completed or consent to be obtained by Parent and Acquisition Sub are or will be necessary for the corporate authorization of this Agreement and the transactions contemplated hereby;
 
(c)
this Agreement has been duly executed and delivered by each of Parent and Acquisition Sub and, assuming the due execution and delivery of this Agreement by the Shareholder, constitutes a legal, valid and binding obligation of Parent and Acquisition Sub, enforceable against Parent and Acquisition Sub in accordance with its terms, except as may be limited by bankruptcy, insolvency and other Legal Requirements affecting the enforcement of creditors’ rights generally and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction; and
 
(d)
the execution and delivery of this Agreement and the completion by each of them of the transactions contemplated hereby:
 
 
(i)
will not conflict with Parent’s and Acquisition Sub’s articles and by-laws; and
 
 
(ii)
do not and will not constitute a breach of or violation of or default (or an event which with notice or lapse of time or both would become a default) under any Legal Requirement binding upon Parent or Acquisition Sub.
 
3.3
Survival
 
The representations and warranties of the Shareholder and of Parent and Acquisition Sub set out in Sections 3.1 and 3.2, respectively, shall survive and shall continue in full force and effect for the benefit of the Shareholder and of Parent and Acquisition Sub, respectively, until  the termination of this Agreement in accordance with its terms.
 
 
 
 
 
 
 
- 10 -

 

ARTICLE 4
TERMINATION
 
4.1
Termination by Parent and Acquisition Sub
 
 
Parent and Acquisition Sub when not in material default in the performance of their respective obligations under this Agreement, may, without prejudice to any of their respective rights hereunder and in their sole discretion, terminate this Agreement by written notice to the Shareholder if:
 
(a)
any of the representations and warranties of the Shareholder under this Agreement (except for the representations and warranties set forth in Sections 3.1(d)(ii), 3.1(d)(iii) and 3.1(j)) shall not be true and correct in all respects;
 
(b)
any of the representations and warranties of the Shareholder set forth in Sections 3.1(d)(ii), 3.1(d)(iii) or 3.1(j) shall not be true and correct in all material respects; or
 
(c)
the Shareholder shall not have performed in any material respect any covenant required to be performed by it under this Agreement (unless such non-performance, if capable of being remedied, is remedied by the Shareholder within ten (10) days from the date of notice of such non-performance from Parent or unless such non-performance is a direct result of any non-performance by Parent or Acquisition Sub of its obligations under this Agreement).
 
4.2
Automatic Termination
 
 
This Agreement shall automatically terminate, without any action on the part of Parent, Acquisition Sub, the Shareholder or any other Person, on the earliest to occur of the following: (i) the date upon which the Arrangement is completed; (ii) the date upon which the Arrangement Agreement is terminated in accordance with its terms; and (iii) the date upon which Parent, Acquisition Sub and the Shareholder mutually agree by written instrument to terminate this Agreement.
 
4.3
Effect of Termination
 
 
If this Agreement is terminated in accordance with this Article 4, the provisions of this Agreement will become void and no party hereto shall have liability to any other party hereto, except in respect of a breach of this Agreement which occurred prior to such termination and the Shareholder shall be entitled to withdraw any form of proxy or voting instructions in respect of the Arrangement Resolution which the Shareholder may have given. Notwithstanding anything to the contrary contained in this Agreement, the covenants and obligations of the Shareholder set out in Section 2.1(h) shall only survive the termination of this Agreement in the event of the consummation of the Arrangement and shall continue in full force and effect for the benefit of Parent and Acquisition Sub only if such consummation occurs.
 
 
 
 
 
 
 
- 11 -

 
 
ARTICLE 5
GENERAL
 
5.1
Further Assurances
 
 
Each of the Shareholder, Parent and Acquisition Sub will, from time to time prior to completion of the Arrangement, execute and deliver all such further documents and instruments and do all such acts and things as the other parties hereto may reasonably require and at the requesting party’s cost to effectively carry out or better evidence or perfect the full intent and meaning of this Agreement.
 
5.2
Investigation by Parties
 
 
No investigations made by or on behalf of Parent or Acquisition Sub or any of their authorized agents at any time shall have the effect of waiving, diminishing the scope of or otherwise affecting any representation, warranty or covenant made by the Shareholder herein or pursuant hereto.
 
5.3
Additional Securities
 
 
In the event that the Shareholder acquires any additional Common Shares, Preferred Shares, Company Options or any other voting securities of the Company after the date hereof, then the Shareholder shall notify Parent and Acquisition Sub of such event and Parent and Acquisition Sub may prepare and deliver to the Shareholder an updated Schedule A attached to this Agreement whereupon such updated Schedule A shall be deemed to form part of this Agreement.
 
5.4
Assignment
 
 
This Agreement may not be assigned by any party hereto without the express prior written consent of the other parties hereto, provided that Parent and/or Acquisition Sub may assign all or any part of their rights and/or obligations under this Agreement to a direct or indirect wholly owned Subsidiary of Parent or Acquisition Sub, or an Affiliate of Parent or Acquisition Sub, without consent, but, if such assignment takes place, Parent and Acquisition Sub shall continue to be liable jointly and severally with the assignee for any obligations hereunder.
 
5.5
Public Announcements
 
 
Except to the extent required by Legal Requirements, no public announcement or press release concerning the matters referred to in this Agreement may be made by Parent or Acquisition Sub or by the Shareholder without the prior written consent of the other parties hereto, such consent not to be unreasonably withheld. Except to the extent required by Legal
 
 
 
 
 
 
 
- 12 -

 
 
Requirements, no copy of this Agreement may be provided by Parent and Acquisition Sub or by the Shareholder to any other Person, except their respective partners, managers, directors, officers, employees, advisors (including, without limitation, legal counsel) or lenders, without the prior written consent of the other parties hereto, such consent not be unreasonably withheld. The provisions of this Agreement may be summarized in the Information Circular, in any material change report filed by the Company in connection with the public announcement of the Arrangement and in any filing or statement that the Shareholder is required to make with or provide to the U.S. Securities and Exchange Commission.
 
5.6
No Third Party Beneficiaries
 
 
This Agreement shall be binding upon and inure solely to the benefit of each of the parties hereto, and nothing in this Agreement, express or implied, is intended to or shall confer upon any other Person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
 
5.7
Waiver
 
 
No waiver, whether by conduct or otherwise, of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provisions (whether or not similar) nor shall such waiver constitute a continuing waiver unless otherwise expressly provided in an instrument duly executed by the parties to be bound thereby.
 
5.8
Time
 
 
Time shall be of the essence of this Agreement.
 
5.9
Governing Law and Venue
 
 
This Agreement shall be governed by and construed in accordance with the domestic Legal Requirements of the Province of Alberta and the federal laws of Canada applicable therein without giving effect to any choice or conflict of law provision or rule (whether of the Province of Alberta or any other jurisdiction) that would cause the application of the Legal Requirements of any jurisdiction other than the Province of Alberta and the laws of Canada applicable therein.  All disputes arising out of or in connection with this Agreement shall be solely and exclusively resolved by a court of competent jurisdiction in the Province of Alberta.  The parties hereby consent to the jurisdiction of the Courts of Alberta and waive any objections or rights as to forum nonconvenience, lack of personal jurisdiction or similar ground s with respect to any dispute relating to this Agreement.
 
 
 
 
 
 
 
- 13 -

 
 
5.10
Entire Agreement
 
This Agreement, including the schedules hereto, constitutes the entire agreement and understanding between and among the parties hereto with respect to the subject matter hereof and supersedes any prior agreement, representation or understanding with respect thereto.
 
5.11
Amendments
 
 
This Agreement may not be modified, amended, altered or supplemented, except upon the execution and delivery of a written agreement executed by all of the parties hereto.
 
5.12
Notices
 
 
Any notice, request, consent, agreement or approval which may or is required to be given pursuant to this Agreement shall be in writing and shall be sufficiently given or made if delivered, or sent by telecopier, in the case of:
 
(a)
Parent or Acquisition Sub, addressed as follows:
 
Quest Software, Inc.      
 5 Polaris Way      
 Aliso Viejo CA  92656      
 United States of America      
       
 Attention:    David Cramer    
 Facsimile No:       (949) 754-8799    
  
with a copy (which shall not constitute notice) to:
 
 
 Latham & Watkins LLP      
 650 Town Center Drive      
 20th Floor      
 Costa Mesa CA  92626-1925      
 United States of America      
       
 Attention:   Charles K. Ruck    
 Facsimile No:  (714) 755-8290    
 
 
and a copy (which shall not constitute notice) to:
 
Stikeman Elliott LLP      
1155 René-Lévesque Blvd. West      
40th Floor      
Montreal QC  H3B 3V2      
       
 Attention:    John W. Leopold    
 Facsimile No:  (514) 397-3422    
 
 
 
 
 
 
- 14 -

 
 
(b)
the Shareholder, addressed as follows:
 
VantagePoint Venture Partners IV
1001 Bayhill Drive
Suite 300
San Bruno, CA 94066
Attention:  General Counsel
Facsimile: (650) 869-6078

with a copies (which shall not constitute notice) to:
 

VantagePoint Venture Partners
1001 Bayhill Drive
Suite 300
San Bruno, CA 94066
Attention:  General Counsel
Facsimile:  (650) 869-6078

 
Cooley LLP
3175 Hanover Street
Palo Alto, CA 94304-1130
Attention:  David A. Lipkin
Facsimile No:  650-849-7400
 
 
and
 
Burnet, Duckworth & Palmer LLP
Suite 1400, 350 7th Ave SW
Calgary, AB T2P 3N9
Attention: Kelsey Clark
Facsimile No: 403-260-0391
 
 
or to such other address as the relevant Person may from time to time advise by notice in writing given pursuant to this Section. The date of receipt of any such notice, request, consent, agreement or approval shall be deemed to be the date of delivery or sending thereof if sent or delivered during normal business hours on a Business Day at the place of receipt and, otherwise, on the next following Business Day.
 
 
 
 
 
 
 
- 15 -

 
 
5.13
Specific Performance and other Equitable Rights
 
 
The Shareholder recognizes and acknowledges that this Agreement is an integral part of the Arrangement, that Parent and Acquisition Sub would not enter into the Arrangement Agreement unless this Agreement was executed, and accordingly acknowledges and agrees that a breach by the Shareholder of any covenants or other commitments contained in this Agreement will cause Parent and Acquisition to sustain injury for which it would not have an adequate remedy at law for money damages. Each of the parties hereto agree that in the event of any breach or threatened breach, the aggrieved or prospective aggrieved party (or parties) shall be entitled to the remedy of specific performance of such covenants or commitments and preliminary and permanent injunctive and other equitable relief in addition to any other remedy to which it may be entitled, at law or in equity.
 
5.14
Expenses
 
 
Each of the parties hereto shall pay its respective legal, financial advisory and accounting costs and expenses incurred in connection with the preparation, execution and delivery of this Agreement and all documents and instruments executed or prepared pursuant hereto and any other costs and expenses whatsoever and howsoever incurred.
 
5.15
Counterparts
 
 
This Agreement may be executed in one or more counterparts which together shall be deemed to constitute one valid and binding agreement, and delivery of the counterparts may be affected by means of telecopier transmission.
 
[Signature Page follows]
 
 
 
 
 
 
 
 
- 16 -

 
 
IN WITNESS WHEREOF the parties have executed this Agreement as of the date first written above.
 
 
QUEST SOFTWARE, INC.
   
   
   
 
By:
/s/ David Cramer  
   
Signature of Authorized Signatory
    David Cramer  
   
Name of Authorized Signatory
    Vice President, General Counsel & Secretary  
   
Title
   
 
 
BOLTS ACQUISITION CORPORATION
   
   
   
 
By:
/s/ David Cramer  
   
Signature of Authorized Signatory
    David Cramer  
   
Name of Authorized Signatory
    Vice President, General Counsel & Secretary  
   
Title
   
   
   
 
VANTAGEPOINT VENTURE PARTNERS IV L.P.
   
   
 
By: VantagePoint Venture Associates IV, L.L.C., Its General Partner
   
   
 
By:
/s/ Alan E. Salzman
 
   
Name: Alan E. Salzman,
     
   
Managing Member

 
 
 
 
 
 
- 17 -

 
 
SCHEDULE A

OWNERSHIP OF COMPANY SHARES




Beneficial Owner
Number of Common Shares
Number of Preferred Shares
Number of Company Options
 
Description and Number of other voting securities of the Company, if any
VantagePoint Venture Partners IV L.P.
 
37 shares
1,633,200 shares
0
N/A
 
 
 
 
 
 
 

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