[sheet: Cover]

[sheet: Cover]
Field | Value
Transaction | Acquisition of Cloudium Technologies plc by Solara Digital Infrastructure Fund VI LP via reverse triangular merger
Deal Value | $6,800,000,000
Matter Number | 1041-00003
Client | Solara Digital Infrastructure LP
Buyer Entity | Solara Digital Infrastructure Fund VI LP
Merger Subsidiary | Stratos Merger Sub Inc.
Target | Cloudium Technologies plc
Buyer's Counsel | Calderwood & Harkness LLP
Target's Counsel | Ridgeway Phelps & Sato LLP
Responsible Partner | Harrison Wexford
Billing Partner | Beatrice Holloway
Lead Associate | Tiffany Rosenthal
Working Associate | Andrew Fitzpatrick
Tax Partner | Leonard Cross
Antitrust Partner | Elaine Forsythe
Signing Date | January 22, 2024
Closing Date | July 9, 2024
Effective Time | 11:59 PM ET, July 9, 2024
Outside Date (per Merger Agreement) | June 30, 2024
Governing Law | State of Delaware (DGCL)
Initial Version Date | December 1, 2023
Last Updated | July 9, 2024
Prepared By | Tiffany Rosenthal / Andrew Fitzpatrick
[sheet: I. Merger Agreement & Ancillari]
Item No. | Document Description | Responsible Party | Counterparty / Recipient | Target Date | Actual Date | Status | Document Location / DMS Ref | Sign-Off Initials | Notes
1.01 | Merger Agreement — Initial Draft | Calderwood & Harkness LLP (T. Rosenthal) | Ridgeway Phelps & Sato LLP (C. Answorth) | 2023-12-01 | 2023-12-01 | Executed (superseded) | DMS-001 | TR | Circulated to target's counsel
1.02 | Merger Agreement — Target's Counsel Mark-Up | Ridgeway Phelps & Sato LLP | Calderwood & Harkness LLP | 2023-12-18 | 2023-12-18 | Executed (superseded) | DMS-002 | TR | C&H annotations attached
1.03 | Merger Agreement — Second Revised Draft | Calderwood & Harkness LLP (T. Rosenthal) | Ridgeway Phelps & Sato LLP | 2024-01-04 | 2024-01-04 | Executed (superseded) | DMS-003 | TR | Updated indemnification and MAE carveouts
1.04 | Merger Agreement — Third Revised Draft (Near-Final) | Calderwood & Harkness LLP | Ridgeway Phelps & Sato LLP | 2024-01-17 | 2024-01-17 | Executed (superseded) | DMS-004 | TR | Post January 15 negotiation session
1.05 | Merger Agreement — Execution Version (Agreement and Plan of Merger among Cloudium Technologies plc, Stratos Merger Sub Inc., and Solara Digital Infrastructure Fund VI LP) | Calderwood & Harkness LLP / Ridgeway Phelps & Sato LLP | All parties | 2024-01-22 | 2024-01-22 | Executed | DMS-005 | HW/TR | $36.92/share; 15% indemnity cap ($1,020,000,000); 8% escrow ($544,000,000); 18-month survival; 3.25% termination fee ($221,000,000); 5.5% reverse termination fee ($374,000,000); MAE carveouts for pandemics, war, changes in law; no-shop with fiduciary-out
1.06 | Schedule of Disclosure Schedules to Merger Agreement (Seller Disclosure Schedules) — C&H Review Comments | Ridgeway Phelps & Sato LLP / Calderwood & Harkness LLP | All parties | 2024-01-22 | 2024-01-22 | Executed | DMS-006 | TR/AF | Compiled by target's counsel; C&H comments attached
1.07 | Exhibit A — Form of Certificate of Merger | Calderwood & Harkness LLP | — | 2024-01-22 | 2024-01-22 | Executed | DMS-007 | AF | Merger of Stratos Merger Sub Inc. with and into Cloudium Technologies plc
1.08 | Exhibit B — Form of Surviving Corporation Certificate of Incorporation | Calderwood & Harkness LLP | — | 2024-01-22 | 2024-01-22 | Executed | DMS-008 | AF
1.09 | Exhibit C — Form of Surviving Corporation Bylaws | Calderwood & Harkness LLP | — | 2024-01-22 | 2024-01-22 | Executed | DMS-009 | AF
1.10 | Exhibit D — Form of Letter of Transmittal | Calderwood & Harkness LLP | Cascade Corporate Services Inc. | 2024-01-22 | 2024-01-22 | Executed | DMS-010 | AF | Exchange agent: Cascade Corporate Services Inc.
1.11 | Exhibit E — Form of Escrow Agreement | Calderwood & Harkness LLP | Cobalt Trust Company | 2024-01-22 | 2024-01-22 | Executed | DMS-011 | TR | $544,000,000 escrow; releases at 12 and 18 months
1.12 | Exhibit F — Form of Rollover Agreement (Jonathan Hargrove) | Calderwood & Harkness LLP | J. Hargrove | 2024-01-22 | 2024-01-22 | Executed | DMS-012 | TR | 50% rollover of 7,736,400 shares (~$142,814,544)
1.13 | Exhibit G — Form of Rollover Agreement (Pinnacle Growth Ventures LLC) | Calderwood & Harkness LLP | Pinnacle Growth Ventures LLC (E. Carmichael) | 2024-01-22 | 2024-01-22 | Executed | DMS-013 | TR | 60% rollover of 21,367,200 shares (~$473,241,408)
1.14 | Exhibit H — Form of Voting / Support Agreement | Calderwood & Harkness LLP | — | 2024-01-22 | 2024-01-22 | Executed | DMS-014 | TR
1.15 | Voting / Support Agreement — Execution Version (Jonathan Hargrove) | Calderwood & Harkness LLP | J. Hargrove | 2024-01-22 | 2024-01-22 | Executed | DMS-015 | TR | 4.2% of outstanding shares (7,736,400 shares)
1.16 | Voting / Support Agreement — Execution Version (Pinnacle Growth Ventures LLC) | Calderwood & Harkness LLP | Pinnacle Growth Ventures LLC | 2024-01-22 | 2024-01-22 | Executed | DMS-016 | TR | 11.6% of outstanding shares (21,367,200 shares)
1.17 | Rollover Agreement — Execution Version (Jonathan Hargrove) | Calderwood & Harkness LLP | J. Hargrove / Fund VI | 2024-01-22 | 2024-01-22 | Executed | DMS-017 | TR | ~$142,814,544 rolled over
1.18 | Rollover Agreement — Execution Version (Pinnacle Growth Ventures LLC) | Calderwood & Harkness LLP | Pinnacle / Fund VI | 2024-01-22 | 2024-01-22 | Executed | DMS-018 | TR | ~$473,241,408 rolled over
1.19 | Escrow Agreement — Execution Version (among Fund VI, Cobalt Trust Company, and Douglas Pemberton as Stockholder Representative) | Calderwood & Harkness LLP | Cobalt Trust Company (L. Ng) / D. Pemberton | 2024-01-22 | 2024-01-22 | Executed | DMS-019 | TR | Effective at closing; $544,000,000 deposit; 50% release at 12 months ($272,000,000 on July 9, 2025), remainder at 18 months (January 9, 2026)
1.20 | Stockholder Representative Agreement — Execution Version (Douglas Pemberton) | Calderwood & Harkness LLP | D. Pemberton | 2024-01-22 | 2024-01-22 | Executed | DMS-020 | TR | Pemberton as Stockholder Representative for indemnification, escrow, and PPA
1.21 | Non-Competition and Non-Solicitation Agreement — Jonathan Hargrove | Calderwood & Harkness LLP | J. Hargrove | 2024-01-22 | 2024-01-22 | Executed | DMS-021 | AF | CEO of Cloudium
1.22 | Non-Competition and Non-Solicitation Agreement — Sienna Whitfield | Calderwood & Harkness LLP | S. Whitfield | 2024-01-22 | 2024-01-22 | Executed | DMS-022 | AF | CFO of Cloudium
1.23 | Transition Services Agreement — Form (Exhibit to Merger Agreement) | Calderwood & Harkness LLP | — | 2024-01-22 | 2024-01-22 | Executed | DMS-023 | AF | Finalized pre-closing; IT, finance, HR, facilities
1.24 | Letter Agreement — Waiver of Certain Pre-Closing Covenants (re: $12M hosting agreement) | Calderwood & Harkness LLP | Cloudium Technologies plc (N. Chowdhury) | 2024-04-29 | 2024-04-29 | Executed | DMS-024 | TR | Waiver under Section 6.1 for interim-period hosting contract
[sheet: II. Financing Documents]
Item No. | Document Description | Responsible Party | Counterparty / Recipient | Target Date | Actual Date | Status | Document Location / DMS Ref | Sign-Off Initials | Notes
2.01 | Debt Commitment Letter — Initial Draft | Calderwood & Harkness LLP (T. Rosenthal) | Meridian Atlantic Bank, N.A. (G. Whitaker) / Ironclad Capital Markets LLC (S. Diaz) | 2023-12-10 | 2023-12-10 | Executed (superseded) | DMS-046 | TR | $3,740,000,000 TLB + $500,000,000 Revolver
2.02 | Debt Commitment Letter — Execution Version ($4,240,000,000) | Calderwood & Harkness LLP / Meridian Atlantic / Ironclad | Solara Digital Infrastructure Fund VI LP | 2024-01-22 | 2024-01-22 | Executed | DMS-047 | HW/TR | TLB: SOFR + 325 bps, 7-yr (maturity July 9, 2031); Revolver: SOFR + 275 bps, 5-yr (maturity July 9, 2029); ticking fee 0.25% p.a. commences April 22, 2024; commitment fee 0.375% p.a.
2.03 | Fee Letter (Debt Financing) — Confidential Side Letter | Meridian Atlantic / Ironclad | Fund VI | 2024-01-22 | 2024-01-22 | Executed | DMS-048 | TR | Confidential; arrangement fees, upfront fees, OID
2.04 | Equity Commitment Letter — Execution Version ($2,832,888,096) | Solara Digital Infrastructure Fund VI LP | Stratos Merger Sub Inc. | 2024-01-22 | 2024-01-22 | Executed | DMS-049 | HW/TR | Cash equity from Fund VI
2.05 | Limited Guarantee — Execution Version ($246,000,000) | Solara Fund VI GP LLC | Cloudium Technologies plc | 2024-01-22 | 2024-01-22 | Executed | DMS-050 | HW/TR | $221,000,000 termination fee + $25,000,000 enforcement costs
2.06 | Credit Agreement — Draft Term Sheet | Winthrop & Hale LLP (C. Novak) / Calderwood & Harkness LLP | Meridian Atlantic / Lenders | 2023-11-28 | 2023-11-28 | Executed (superseded) | DMS-053 | TR | Summary terms: TLB $3.74B, Revolver $500M, Total Net Leverage ≤ 6.50:1.00 stepping to 5.00:1.00
2.07 | Credit Agreement — Initial Draft (Winthrop & Hale) with C&H Comments | Winthrop & Hale LLP / Calderwood & Harkness LLP | Meridian Atlantic / Lenders | 2024-03-20 | 2024-03-20 | Executed (superseded) | DMS-054 | TR | Borrower-favorable covenant comments
2.08 | Credit Agreement — Revised Draft | Calderwood & Harkness LLP / Winthrop & Hale LLP | Meridian Atlantic / Lenders | 2024-04-15 | 2024-04-15 | Executed (superseded) | DMS-055 | TR | Covenant flex, permitted acquisitions, EBITDA add-backs
2.09 | Credit Agreement — Execution Version (Cloudium Technologies plc as Borrower, Meridian Atlantic Bank, N.A. as Admin Agent) | Calderwood & Harkness LLP / Winthrop & Hale LLP | All lender parties | 2024-07-09 | 2024-07-09 | Executed | DMS-056 | HW/TR | Closing date leverage: ~9.24x total; ~6.91x pro forma w/ $110M run-rate synergies; springing financial covenant at 40% revolver utilization (First Lien Net Leverage ≤ 5.00:1.00)
2.10 | Guarantee and Collateral Agreement — Execution Version | Calderwood & Harkness LLP | Meridian Atlantic Bank, N.A. (as collateral agent) | 2024-07-09 | 2024-07-09 | Executed | DMS-057 | AF | Subsidiary guarantees; pledge of equity interests
2.11 | Intercreditor Agreement — Execution Version | Calderwood & Harkness LLP / Winthrop & Hale LLP | Meridian Atlantic / Fund VI / secured parties | 2024-07-09 | 2024-07-09 | Executed | DMS-058 | TR | Lien priority and enforcement rights
2.12 | Solvency Certificate — Delivered at Closing | Calderwood & Harkness LLP (form) | Meridian Atlantic Bank, N.A. | 2024-07-09 | 2024-07-09 | Executed | DMS-059 | AF | Delivered by CFO of surviving entity; certifies solvency after merger, debt draw, and payoff
2.13 | Funds Flow Memorandum — Draft | Calderwood & Harkness LLP (T. Rosenthal / A. Fitzpatrick) | All parties | 2024-07-01 | 2024-07-01 | Final (superseded) | DMS-060 | TR | Sources & uses, wire amounts, sequencing
2.14 | Funds Flow Memorandum — Final Execution Version | Calderwood & Harkness LLP | All parties | 2024-07-08 | 2024-07-08 | Executed | DMS-061 | HW/TR | Confirmed wire instructions; actual closing amounts
2.15 | Co-Investment Agreement — Execution Version (Solara Digital Co-Invest VI-A LP, $425,000,000) | Calderwood & Harkness LLP | Co-Invest VI-A LP / Fund VI | 2024-01-22 | 2024-01-22 | Executed | DMS-062 | TR | Co-invest from Fund VI LPs; subset of equity contribution
[sheet: III. R&W Insurance]
Item No. | Document Description | Responsible Party | Counterparty / Recipient | Target Date | Actual Date | Status | Document Location / DMS Ref | Sign-Off Initials | Notes
3.01 | Broker Engagement Letter — Peregrine Advisory Group LLC | Calderwood & Harkness LLP / Solara | Peregrine Advisory Group LLC (T. Gallagher) | 2024-01-10 | 2024-01-10 | Executed | DMS-064 | AF | Broker fee: $680,000
3.02 | Non-Binding Indication — Northfield Assurance Ltd. | Peregrine Advisory / Northfield Assurance (P. Graves) | Solara / Calderwood & Harkness LLP | 2024-01-14 | 2024-01-14 | Received | DMS-065 | TR | $680,000,000 limit (10% of deal value); $544,000,000 retention (equals escrow); 2.0% rate ($13,600,000 premium); 50% retention drop-down at 12 months
3.03 | Underwriting Call Memorandum | Calderwood & Harkness LLP (A. Fitzpatrick) | Internal | 2024-01-16 | 2024-01-16 | Final | DMS-066 | AF | Diligence presentation to Northfield underwriters
3.04 | Binder Agreement — Northfield Assurance Ltd. (Policy No. NFA-TRI-2024-00487) | Northfield Assurance Ltd. / Peregrine Advisory | Solara | 2024-01-19 | 2024-01-19 | Executed | DMS-067 | TR | Bound 3 days before signing; premium $13,600,000 paid by Solara
3.05 | Final R&W Insurance Policy — Buyer-Side (Northfield Assurance Ltd.) | Northfield Assurance Ltd. | Solara Digital Infrastructure Fund VI LP | 2024-07-09 | 2024-07-09 | Executed | DMS-068 | TR | Policy No. NFA-TRI-2024-00487; covers Article IV seller reps; $680M limit; $544M retention; subrogation waived except for fraud; known-loss exclusion standard
3.06 | No-Claims Declaration — Signed by Solara at Closing | Calderwood & Harkness LLP (form) | Northfield Assurance Ltd. | 2024-07-09 | 2024-07-09 | Executed | DMS-069 | TR | No known breaches of seller reps
[sheet: IV. Regulatory Filings & Approv]
Item No. | Document / Filing Description | Jurisdiction / Agency | Responsible Party | Filing Date | Clearance / Expiry Date | Status | Document Location / DMS Ref | Sign-Off Initials | Notes
4.01 | HSR Act Pre-Merger Notification — Final Submission Package | United States — FTC / DOJ | Calderwood & Harkness LLP (E. Forsythe) | 2024-02-09 | 2024-03-11 | Cleared | DMS-081 | EF | Initial 30-day waiting period expired March 11, 2024; no Second Request issued
4.02 | Voluntary Submission of Additional Market Data to FTC Staff | United States — FTC | Calderwood & Harkness LLP (E. Forsythe) | 2024-02-20 | — | Submitted | DMS-092 | EF | Cloud ERP/CRM competitive landscape data
4.03 | UK CMA Merger Notice — Final Submission (CMA Case No. ME/7184/24) | United Kingdom — CMA | Albright & Kerr LLP (F. McAllister) / Calderwood & Harkness LLP (E. Forsythe) | 2024-02-12 | 2024-04-03 | Cleared | DMS-084 | EF | Phase 1 unconditional clearance granted April 3, 2024
4.04 | CMA Response to Information Request — Overlapping UK Cloud ERP Markets | United Kingdom — CMA | Albright & Kerr LLP / Calderwood & Harkness LLP | 2024-03-01 | — | Submitted | DMS-085 | EF | Supplemental market data
4.05 | CFIUS Voluntary Notice Assessment — Memorandum | United States — CFIUS | Calderwood & Harkness LLP (E. Forsythe) | 2023-11-30 | — | Not Required | DMS-087 | EF | No TID U.S. business; no covered real estate; voluntary notice not submitted
4.06 | EU Merger Regulation Jurisdictional Analysis — Memorandum | European Union | Calderwood & Harkness LLP (E. Forsythe) | 2023-12-03 | — | Not Required | DMS-088 | EF | EU turnover thresholds not met
4.07 | Foreign Subsidies Regulation (FSR) Analysis — Memorandum | European Union | Calderwood & Harkness LLP (E. Forsythe) | 2023-12-03 | — | Not Required | DMS-089 | EF | FSR notification not triggered
4.08 | German FDI Screening (AWV) Analysis — Memorandum | Germany | Calderwood & Harkness LLP (E. Forsythe) | 2023-12-08 | — | Not Required | DMS-090 | EF | Cloudium Solutions GmbH not in sensitive sector
4.09 | Indian FDI / CCI Analysis — Memorandum | India | Calderwood & Harkness LLP (E. Forsythe) | 2023-12-10 | — | Not Required | DMS-091 | EF | CCI filing not required; FDI approval not required for downstream change of control
[sheet: V. Corporate Governance & Entit]
Item No. | Document Description | Responsible Party | Entity | Target Date | Actual Date | Status | Document Location / DMS Ref | Sign-Off Initials | Notes
5.01 | Certificate of Incorporation — Stratos Merger Sub Inc. | Calderwood & Harkness LLP (A. Fitzpatrick) | Stratos Merger Sub Inc. | 2024-01-08 | 2024-01-08 | Filed | DMS-094 | AF | DE File No. 7923841; registered agent: National Registered Agents Inc., 1209 Orange Street, Wilmington, DE 19801
5.02 | Bylaws — Stratos Merger Sub Inc. | Calderwood & Harkness LLP (A. Fitzpatrick) | Stratos Merger Sub Inc. | 2024-01-08 | 2024-01-08 | Adopted | DMS-095 | AF
5.03 | Board Consent of Stratos Merger Sub Inc. — Approving Merger Agreement | Calderwood & Harkness LLP | Stratos Merger Sub Inc. | 2024-01-22 | 2024-01-22 | Executed | DMS-096 | AF | Unanimous written consent of sole director
5.04 | Written Consent of Sole Stockholder (Fund VI) of Stratos Merger Sub Inc. | Calderwood & Harkness LLP | Solara Digital Infrastructure Fund VI LP | 2024-01-22 | 2024-01-22 | Executed | DMS-097 | AF | Approving Merger Agreement
5.05 | Resolutions of Solara Fund VI GP LLC (as GP of Fund VI) | Calderwood & Harkness LLP | Solara Fund VI GP LLC | 2024-01-22 | 2024-01-22 | Executed | DMS-098 | TR | Authorizing Merger Agreement, ECL, Limited Guarantee, and related documents
5.06 | Resolutions of Solara Digital GP LLC (as GP of SDILP) | Calderwood & Harkness LLP | Solara Digital GP LLC | 2023-08-14 | 2023-08-14 | Executed | DMS-099 | TR | Authorizing engagement and pursuit of Cloudium acquisition
5.07 | Good Standing Certificate — Stratos Merger Sub Inc. (Delaware) | Delaware Secretary of State | Stratos Merger Sub Inc. | 2024-07-03 | 2024-07-03 | Received | DMS-100 | AF
5.08 | Good Standing Certificate — Solara Digital Infrastructure Fund VI LP (Delaware) | Delaware Secretary of State | Fund VI | 2024-07-03 | 2024-07-03 | Received | DMS-101 | AF | EIN: 87-4523190