UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

SCHEDULE TO

Tender Offer Statement Pursuant to Section 14(d)(1) or 13(e)(1)

of the Securities Exchange Act of 1934

 

 

COMPUTER TASK GROUP, INCORPORATED

(Name of Subject Company)

CHICAGO MERGER SUB, INC.

(Offeror)

A Wholly Owned Subsidiary of

CEGEKA GROEP NV

(Offeror)

 

 

COMMON STOCK, $0.01 PAR VALUE

(Title of Class of Securities)

205477102

(CUSIP Number of Class of Securities)

 

 

Stephan Daems

Cegeka Groep NV

Chief Financial Officer

Corda3, Kempische Steenweg 307

B-3500 Hasselt

Belgium

+32 475 62 59 70

(Name, address and telephone number of person authorized to receive notices and communications on behalf of filing persons)

 

 

with copies to:

Jonathan Klein

Brian Wohlberg

DLA Piper LLP (US)

1251 6th Ave.

New York, NY 10020

212-335-4902

 

 

 

☐ 

Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.

Check the appropriate boxes below to designate any transactions to which the statement relates:

 

  ☒ 

third-party tender offer subject to Rule 14d-1.

  ☐ 

issuer tender offer subject to Rule 13e-4.

  ☐ 

going-private transaction subject to Rule 13e-3.

  ☐ 

amendment to Schedule 13D under Rule 13d-2.

Check the following box if the filing is a final amendment reporting the results of the tender offer:  ☐

If applicable, check the appropriate box(es) below to designate the appropriate rule provision(s) relied upon:

 

  ☐ 

Rule 13e-4(i) (Cross-Border Issuer Tender Offer)

  ☐ 

Rule 14d-1(d) (Cross-Border Third-Party Tender Offer)

 

 

 


This Tender Offer Statement on Schedule TO (this “Schedule TO”) relates to the tender offer by Chicago Merger Sub, Inc. a New York corporation (“Merger Sub”), a wholly owned subsidiary of Cegeka Groep NV, a Belgian limited liability company (“Parent” or “Cegeka”), for all of the outstanding shares of common stock, par value $0.01 per share (“Shares”), of Computer Task Group, Incorporated, a New York corporation (“CTG”), at a price of $10.50 per Share, net to the seller in cash, without interest and less any applicable withholding taxes, upon the terms and subject to the conditions set forth in the offer to purchase dated August 23, 2023 (the “Offer to Purchase”), a copy of which is attached as Exhibit (a)(1)(A), and in the related letter of transmittal (the “Letter of Transmittal”), a copy of which is attached as Exhibit (a)(1)(B), which, as each may be amended or supplemented from time to time, collectively constitute the “Offer.” This Schedule TO is being filed on behalf of Merger Sub and Parent.

All the information set forth in the Offer to Purchase, including Schedule I thereto, is incorporated by reference herein in response to Items 1 through 9 and Item 11 of this Schedule TO, and is supplemented by the information specifically provided in this Schedule TO.

 

Item 1.

Summary Term Sheet.

Regulation M-A Item 1001

The information set forth in the Offer to Purchase under the caption SUMMARY TERM SHEET is incorporated herein by reference.

 

Item 2.

Subject Company Information.

Regulation M-A Item 1002

(a) Name and Address. The name, address, and telephone number of the subject company’s principal executive offices are as follows:

Computer Task Group, Incorporated

300 Corporate Parkway, Suite 214N

Amherst, New York 14226

(716) 882-8000

(b)-(c) Securities; Trading Market and Price. The information set forth in the Offer to Purchase under the following captions is incorporated herein by reference:

INTRODUCTION

THE TENDER OFFER — Section 6 (“Price Range of Shares; Dividends”)

 

Item 3.

Identity and Background of Filing Person.

Regulation M-A Item 1003

(a)-(c) Name and Address; Business and Background of Entities; and Business and Background of Natural Persons. The information set forth in the Offer to Purchase under the following captions is incorporated herein by reference:

SUMMARY TERM SHEET

THE TENDER OFFER — Section 8 (“Certain Information Concerning Parent and Merger Sub”)

SCHEDULE I — Information Relating to Parent and Merger Sub

 

Item 4.

Terms of the Transaction.

Regulation M-A Item 1004

(a) Material Terms. The information set forth in the Offer to Purchase is incorporated herein by reference.


Item 5.

Past Contacts, Transactions, Negotiations and Agreements.

Regulation M-A Item 1005

(a) Transactions. The information set forth in the Offer to Purchase under the following captions is incorporated herein by reference:

SUMMARY TERM SHEET

THE TENDER OFFER — Section 10 (“Background of the Offer; Past Contacts or Negotiations with CTG”)

(b) Significant Corporate Events. The information set forth in the Offer to Purchase under the following captions is incorporated herein by reference:

SUMMARY TERM SHEET

THE TENDER OFFER — Section 10 (“Background of the Offer; Past Contacts or Negotiations with CTG”)

THE TENDER OFFER — Section 11 (“The Merger Agreement; Other Agreements”)

THE TENDER OFFER — Section 12 (“Purpose of the Offer; Plans for CTG”)

 

Item 6.

Purposes of the Transaction and Plans or Proposals.

Regulation M-A Item 1006

(a) Purposes. The information set forth in the Offer to Purchase under the following caption is incorporated herein by reference:

THE TENDER OFFER — Section 12 (“Purpose of the Offer; Plans for CTG”)

(c) (1)-(7) Plans. The information set forth in the Offer to Purchase under the following captions is incorporated herein by reference:

SUMMARY TERM SHEET

THE TENDER OFFER — Section 9 (“Source and Amount of Funds”)

THE TENDER OFFER — Section 10 (“Background of the Offer; Past Contacts or Negotiations with CTG”) THE TENDER OFFER — Section 11 (“The Merger Agreement; Other Agreements”)

THE TENDER OFFER — Section 12 (“Purpose of the Offer; Plans for CTG”)

THE TENDER OFFER — Section 13 (“Certain Effects of the Offer”)

THE TENDER OFFER — Section 14 (“Dividends and Distributions”)

 

Item 7.

Source and Amount of Funds or Other Consideration.

Regulation M-A Item 1007

(a) Source of Funds. The information set forth in the Offer to Purchase under the following captions is incorporated herein by reference:

SUMMARY TERM SHEET

THE TENDER OFFER — Section 9 (“Source and Amount of Funds”)

(b) Conditions. The information set forth in the Offer to Purchase under the following captions is incorporated herein by reference:

SUMMARY TERM SHEET

THE TENDER OFFER — Section 9 (“Source and Amount of Funds”)

THE TENDER OFFER — Section 10 (“Background of the Offer; Past Contacts or Negotiations with CTG”) THE TENDER OFFER — Section 11 (“The Merger Agreement; Other Agreements”)

THE TENDER OFFER — Section 12 (“Purpose of the Offer; Plans for CTG”)

THE TENDER OFFER — Section 15 (“Conditions of the Offer”)


(d) Borrowed Funds. The information set forth in the Offer to Purchase under the following captions is incorporated herein by reference:

SUMMARY TERM SHEET

THE TENDER OFFER — Section 9 (“Source and Amount of Funds”)

 

Item 8.

Interest in Securities of the Subject Company.

Regulation M-A Item 1008

(a) Securities Ownership. The information set forth in the Offer to Purchase under the following captions is incorporated herein by reference:

INTRODUCTION

THE TENDER OFFER — Section 8 (“Certain Information Concerning Parent and Merger Sub”)

THE TENDER OFFER — Section 11 (“The Merger Agreement; Other Agreements”)

THE TENDER OFFER — Section 12 (“Purpose of the Offer; Plans for CTG”)

SCHEDULE I — Information Relating to Parent and Merger Sub

(b) Securities Transactions. None.

 

Item 9.

Persons/Assets Retained, Employed, Compensated or Used.

Regulation M-A Item 1009

(a) Solicitations or Recommendations. The information set forth in the Offer to Purchase under the following captions is incorporated herein by reference:

SUMMARY TERM SHEET

THE TENDER OFFER — Section 3 (“Procedures for Accepting the Offer and Tendering Shares”)

THE TENDER OFFER — Section 10 (“Background of the Offer; Past Contacts or Negotiations with CTG”)

THE TENDER OFFER — Section 18 (“Fees and Expenses”)

 

Item 10.

Financial Statements.

Regulation M-A Item 1010

(a) Financial Information. Not Applicable.

(b) Pro Forma Information. Not Applicable.

 

Item 11.

Additional Information.

Regulation M-A Item 1011

(a) Agreements, Regulatory Requirements and Legal Proceedings. The information set forth in the Offer to Purchase under the following captions is incorporated herein by reference:

SUMMARY TERM SHEET

THE TENDER OFFER — Section 10 (“Background of the Offer; Past Contacts or Negotiations with CTG”) THE TENDER OFFER — Section 11 (“The Merger Agreement; Other Agreements”)

THE TENDER OFFER — Section 12 (“Purpose of the Offer; Plans for CTG”)

THE TENDER OFFER — Section 13 (“Certain Effects of the Offer”)

THE TENDER OFFER — Section 16 (“Certain Legal Matters; Regulatory Approvals”)

(c) Other Material Information. The information set forth in the Offer to Purchase and the Letter of Transmittal is incorporated herein by reference.


Item 12.

Exhibits.

Regulation M-A Item 1016

 

Exhibit No.

  

Description

(a)(1)(A)*

   Offer to Purchase, dated August 23, 2023.

(a)(1)(B)*

   Letter of Transmittal.

(a)(1)(C)*

   Notice of Guaranteed Delivery.

(a)(1)(D)*

   Letter from the Information Agent to Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.

(a)(1)(E)*

   Letter to Clients for Use by Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.

(a)(1)(F)*

   Summary Advertisement as published in The New York Times on August 23, 2023.

(a)(1)(G)*

   Computer Task Group, Incorporated Amended and Restated Employee Stock Purchase Plan Instruction Form.

(a)(5)(A)

   Joint Press Release issued by Cegeka Groep NV and Computer Task Group, Incorporated on August  9, 2023 (incorporated by reference to Exhibit 99.1 to the Schedule TO-C filed by Chicago Merger Sub, Inc. with the Securities and Exchange Commission on August 9, 2023).

(a)(5)(B)

   Employee Q&A issued by Cegeka Groep NV on August 9, 2023 (incorporated by reference to Exhibit 99.2 to the Schedule TO-C filed by Chicago Merger Sub, Inc. with the Securities and Exchange Commission on August 9, 2023).

(a)(5)(C)

   Email from CEO of Cegeka Groep NV to Employees of Cegeka Groep NV, dated August  9, 2023 (incorporated by reference to Exhibit 99.3 to the Schedule TO-C filed by Chicago Merger Sub, Inc. with the Securities and Exchange Commission on August 9, 2023).

(a)(5)(D)

   Form of Holding Statement, dated August 9, 2023 (incorporated by reference to Exhibit 99.4 to the Schedule TO-C filed by Chicago Merger Sub, Inc. with the Securities and Exchange Commission on August 9, 2023).

(a)(5)(E)

   Social Media Post from August  9, 2023 (incorporated by reference to Exhibit 99.5 to the Schedule TO-C filed by Chicago Merger Sub, Inc. with the Securities and Exchange Commission on August 9, 2023).

(b)(1)*

   Amended and Restated Commitment Letter, dated August 8, 2023, by and among Cegeka Groep NV, KBC Bank NV, Belfius Bank SA/NV and ING Belgium SA/NV

(d)(1)

   Agreement and Plan of Merger, dated as of August  9, 2023, by and among Computer Task Group, Incorporated, Cegeka Groep NV, and Chicago Merger Sub, Inc. (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed by Computer Task Group, Incorporated with the Securities and Exchange Commission on August 9, 2023).

(d)(2)*

   Nondisclosure Agreement, effective November 4, 2022, by and between Computer Task Group, Incorporated and Cegeka Groep NV.

(d)(3)

   Tender and Support Agreement, dated August  9, 2023, by and among Cegeka Groep NV, Chicago Merger Sub, Inc. and each of the persons set forth on Schedule A thereto (incorporated by reference to Exhibit 99.2 to the Current Report on Form 8-K filed by Computer Task Group, Incorporated with the Securities and Exchange Commission on August 9, 2023).

(g)

   Not applicable.

(h)

   Not applicable.

107*

   Filing Fee Table.

 

*

Filed herewith.

 

5


Item 13.

Information Required by Schedule 13E-3.

Not applicable.


SIGNATURES

After due inquiry and to the best of their knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.

Dated: August 23, 2023

 

CEGEKA GROEP NV
By:   /s/ Stijn Bijnens
Name:   Stijn Bijnens
Title:   Legal representative of ID&D NV, Managing Director & CEO

 

By:   /s/ Stephan Daems
Name:   Stephan Daems
Title:   Legal representative of Esdacon BV, Director & CFO

 

CHICAGO MERGER SUB, INC.
By:   /s/ Stijn Bijnens
Name:   Stijn Bijnens
Title:   President


EXHIBIT INDEX

 

Exhibit No.

  

Description

(a)(1)(A)*

   Offer to Purchase, dated August 23, 2023.

(a)(1)(B)*

   Letter of Transmittal.

(a)(1)(C)*

   Notice of Guaranteed Delivery.

(a)(1)(D)*

   Letter from the Information Agent to Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.

(a)(1)(E)*

   Letter to Clients for Use by Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.

(a)(1)(F)*

   Summary Advertisement as published in The New York Times on August 23, 2023.

(a)(1)(G)*

   Computer Task Group, Incorporated Amended and Restated Employee Stock Purchase Plan Instruction Form.

(a)(5)(A)

   Joint Press Release issued by Cegeka Groep NV and Computer Task Group, Incorporated on August  9, 2023 (incorporated by reference to Exhibit 99.1 to the Schedule TO-C filed by Chicago Merger Sub, Inc. with the Securities and Exchange Commission on August 9, 2023).

(a)(5)(B)

   Employee Q&A issued by Cegeka Groep NV on August 9, 2023 (incorporated by reference to Exhibit 99.2 to the Schedule TO-C filed by Chicago Merger Sub, Inc. with the Securities and Exchange Commission on August 9, 2023).

(a)(5)(C)

   Email from CEO of Cegeka Groep NV to Employees of Cegeka Groep NV, dated August  9, 2023 (incorporated by reference to Exhibit 99.3 to the Schedule TO-C filed by Chicago Merger Sub, Inc. with the Securities and Exchange Commission on August 9, 2023).

(a)(5)(D)

   Form of Holding Statement, dated August 9, 2023 (incorporated by reference to Exhibit 99.4 to the Schedule TO-C filed by Chicago Merger Sub, Inc. with the Securities and Exchange Commission on August 9, 2023).

(a)(5)(E)

   Social Media Post from August  9, 2023 (incorporated by reference to Exhibit 99.5 to the Schedule TO-C filed by Chicago Merger Sub, Inc. with the Securities and Exchange Commission on August 9, 2023).

(b)(1)*

   Amended and Restated Commitment Letter, dated August 8, 2023, by and among Cegeka Groep NV, KBC Bank NV, Belfius Bank SA/NV and ING Belgium SA/NV

(d)(1)

   Agreement and Plan of Merger, dated as of August  9, 2023, by and among Computer Task Group, Incorporated, Cegeka Groep NV, and Chicago Merger Sub, Inc. (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed by Computer Task Group, Incorporated with the Securities and Exchange Commission on August 9, 2023).

(d)(2)*

   Nondisclosure Agreement, effective November 4, 2022, by and between Computer Task Group, Incorporated and Cegeka Groep NV.

(d)(3)

   Tender and Support Agreement, dated August  9, 2023, by and among Cegeka Groep NV, Chicago Merger Sub, Inc. and each of the persons set forth on Schedule A thereto (incorporated by reference to Exhibit 99.2 to the Current Report on Form 8-K filed by Computer Task Group, Incorporated with the Securities and Exchange Commission on August 9, 2023).

(g)

   Not applicable.

(h)

   Not applicable.

107*

   Filing Fee Table.

 

*

Filed herewith.

Exhibit (a)(1)(A)

Offer to Purchase for Cash

All Outstanding Shares of Common Stock

of

COMPUTER TASK GROUP, INCORPORATED

at

$10.50 Per Share

by

CHICAGO MERGER SUB, INC.

a wholly owned subsidiary of

CEGEKA GROEP NV

 

THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT THE END OF THE DAY, ONE MINUTE AFTER 11:59 P.M. EASTERN TIME, ON SEPTEMBER 20, 2023, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED.

Chicago Merger Sub, Inc., a New York corporation (which we refer to as “Merger Sub”) and a wholly owned subsidiary of Cegeka Groep NV, a Belgian limited liability company (which we refer to as “Parent” or “Cegeka”), is offering to purchase all outstanding shares of common stock, par value $0.01 per share (the “Shares”), of Computer Task Group, Incorporated, a New York corporation (which we refer to as “CTG” or the “Company”), at a price of $10.50 per Share, net to the seller in cash (the “Offer Price”), without interest and less any applicable withholding taxes, upon the terms and subject to the conditions set forth in this Offer to Purchase (the “Offer to Purchase”) and in the related Letter of Transmittal (the “Letter of Transmittal” which, together with this Offer to Purchase and other related materials, as each may be amended or supplemented from time to time, constitutes the “Offer”).

The Offer is being made pursuant to the Agreement and Plan of Merger, dated as of August 9, 2023 (as it may be amended from time to time, the “Merger Agreement”), by and among Parent, Merger Sub and CTG. The Merger Agreement provides, among other things, that following the consummation of the Offer and subject to the satisfaction or waiver of certain conditions, Merger Sub will be merged with and into CTG (the “Merger”) as soon as practicable without a vote of the shareholders of CTG in accordance with Section 905(a) of the New York Business Corporation Law (“NYBCL”), with CTG continuing as the surviving corporation (which we refer to as the “Surviving Corporation”) in the Merger and thereby becoming a wholly owned subsidiary of Parent. In the Merger, each Share outstanding immediately prior to the effective time of the Merger (the “Effective Time”) (other than Shares held (i) in the treasury of CTG or by Parent, Merger Sub or any of Parent’s other subsidiaries, which Shares will be cancelled and will cease to exist or (ii) by shareholders who validly exercise appraisal rights under New York law with respect to such Shares) will be automatically cancelled and converted into the right to receive the Offer Price, net to the seller in cash, without interest and less any applicable withholding taxes. As a result of the Merger, CTG will cease to be a publicly traded company and will become wholly owned by Cegeka. Under no circumstances will interest be paid on the Offer Price, regardless of any extension of the Offer or any delay in making payment for Shares.

The Offer is conditioned upon, among other things, (a) the absence of a termination of the Merger Agreement in accordance with its terms (the “Termination Condition”) and (b) the satisfaction of:

 

   

the Minimum Condition (as described below);

 

   

the Regulatory Condition (as described below);

 

   

the Governmental Impediment Condition (as described below); and

 

   

the CFIUS Approval Condition (as described below).


The Offer is not subject to a financing condition. The Minimum Condition requires that the number of Shares validly tendered in accordance with the terms of the Offer and not validly withdrawn on or prior to the end of the day, one minute after 11:59 P.M., on September 20, 2023 (the “Expiration Date”, unless Merger Sub shall have extended the period during which the Offer is open in accordance with the Merger Agreement, in which event “Expiration Date” shall mean the latest time and date at which the Offer, as so extended by Merger Sub, will expire), together with all other Shares (if any) beneficially owned by Parent and its affiliates, equals one Share more than 66 2/3% of the sum of (i) the total number of Shares outstanding at the time of the expiration of the Offer, plus (ii) the total number of Shares that the Company is required to issue upon conversion, settlement, exchange or exercise of all options, warrants, rights or securities for which the holder has, by the time of the expiration of the Offer, elected to convert, settle, exchange or exercise or for which the conversion, settlement, exchange or exercise date has already occurred (but without duplication).

The Regulatory Condition requires that (i) any waiting period (or any extension thereof) applicable to the Offer under the HSR Act has expired or been terminated, and (ii) the applicable governmental bodies of competent jurisdiction in Belgium and Luxembourg have granted merger control or other applicable regulatory clearance, or failed to render a decision within the applicable waiting period under relevant law and such failure is considered under such law to be a grant of all requisite approvals, consents or clearances under such law to effectuate the Transactions, or provided confirmation that a merger control filing obligation is not triggered as a result of the Transactions.

The Governmental Impediment Condition requires that there has not been any judgment, order, injunction, decree or ruling, which remains in effect, by any governmental body, restraining, enjoining or otherwise preventing the acquisition of or payment for Shares pursuant to the Offer or the execution and delivery of the Merger Agreement, which includes as an annex the Tender and Support Agreement, dated as of August 9, 2023, among Parent, Merger Sub and the CTG shareholders party thereto (the “Support Agreement”), and all of the transactions contemplated by the Merger Agreement, including the Offer, the Merger and the Top-Up Option (the “Transactions”), nor has there been any law promulgated, enacted, issued or deemed applicable to any of the Transactions by any governmental body which prohibits or makes illegal the acquisition of or payment for Shares pursuant to the Offer or the consummation of the Merger.

The CFIUS Approval Condition requires that (i) the parties shall have received written notice from the Committee on Foreign Investment in the United States and each member agency thereof, acting in such capacity (“CFIUS”), that review or investigation under the Defense Production Act of 1950, as amended and codified at 50 U.S.C. § 4565, including all implementing regulations thereof (the “DPA”), of the Transactions has been concluded, and CFIUS shall have determined that there are no unresolved national security concerns with respect to the Transactions, and advised that action under the DPA, and any investigation related thereto, has been concluded with respect to the Transactions; (ii) CFIUS shall have concluded that the Transactions are not a covered transaction and not subject to review under the DPA; or (iii) CFIUS has sent a report to the President of the United States requesting the President’s decision on the joint voluntary notice with respect to the Transactions prepared by the parties and submitted to CFIUS in accordance with the requirements of the DPA (the “CFIUS Notice”) and either (a) the period under the DPA during which the President may announce his decision to take action to suspend or prohibit the Transactions shall have elapsed without any such action being announced or taken, or (b) the President shall have announced a decision to take no action to suspend or prohibit the Transactions; provided, that Parent and Merger Sub will promptly waive the CFIUS Approval Condition if (a) all of the other conditions set forth in the Merger Agreement are satisfied or waived by Parent or Merger Sub, to the extent waivable by Parent or Merger Sub and (b) such waiver of the CFIUS Approval Condition would not adversely affect, or would reasonably be expected to adversely affect, Parent or any of its subsidiaries, including the Surviving Corporation following the Effective Time, as determined by Parent in its reasonable judgment. See Section 15 — “Conditions to the Offer.”

Under the Merger Agreement, CTG has granted Merger Sub an irrevocable option (the “Top-Up Option”) for so long as the Merger Agreement has not been terminated pursuant to the provisions therein, which Merger Sub may exercise in certain circumstances following the consummation of the Offer, to purchase from CTG such number of authorized and unissued Shares (the “Top-Up Shares”) equal to the lesser of (i) the lowest number of


Shares that, when added to the number of Shares owned by Parent, Merger Sub and any of their respective subsidiaries at the time of exercise of the Top-Up Option, shall constitute one Share more than 90% of the outstanding Shares immediately after the issuance of the Top-Up Shares on a fully-diluted basis (which assumes conversion or exercise of all derivative securities regardless of the conversion or exercise price, the vesting schedule or other terms and conditions thereof) and (ii) the aggregate number of authorized but unissued and unreserved Shares (including as authorized and unissued Shares, for purposes hereof, any Shares held in the treasury of the Company). If Merger Sub acquires at least 90% of the Shares in the Offer (including pursuant to the Top-Up Option), Merger Sub shall consummate the Merger under Section 905(a) of the NYBCL without a shareholders meeting and without action by the Company’s shareholders. See Section 11 — “The Merger Agreement; Other Agreements — Merger Agreement — Top-Up Option.”

The board of directors of CTG (which we refer to as the “CTG Board”), among other things, has (i) determined that the Merger Agreement and transactions contemplated thereby are fair to and in the best interest of CTG and its shareholders, (ii) declared it advisable to enter into the Merger Agreement, (iii) approved the execution, delivery and performance by CTG of the Merger Agreement and the consummation of the transactions contemplated thereby, including the Offer and the Merger, (iv) resolved that the Merger be effected under Section 905 of the NYBCL and (v) resolved to recommend that the shareholders of CTG accept the Offer and tender their Shares to Merger Sub pursuant to the Offer.

A summary of the principal terms of the Offer appears under the heading “Summary Term Sheet.” You should read this entire Offer to Purchase carefully before deciding whether to tender your Shares pursuant to the Offer.

August 23, 2023


IMPORTANT

If you desire to tender all or any portion of your Shares to Merger Sub pursuant to the Offer, you should either (a) complete and sign the Letter of Transmittal for the Offer, which is enclosed with this Offer to Purchase, in accordance with the instructions contained in the Letter of Transmittal, and mail or deliver the Letter of Transmittal (or a manually executed facsimile thereof) and any other required documents to Computershare Trust Company, N.A., in its capacity as depositary and paying agent for the Offer (which we refer to as the “Depositary”), and either deliver the certificates for your Shares to the Depositary along with the Letter of Transmittal (or a manually executed facsimile thereof) or tender your Shares by book-entry transfer by following the procedures described in Section 3 — “Procedures for Accepting the Offer and Tendering Shares,” in each case prior to the Expiration Date, or (b) request that your broker, dealer, commercial bank, trust company or other nominee effect the transaction for you. If you hold Shares registered in the name of a broker, dealer, commercial bank, trust company or other nominee, you must contact that institution in order to tender your Shares to Merger Sub pursuant to the Offer. If you are a record holder but your stock certificate is not available or you cannot deliver it to the Depositary before the Offer expires, you may be able to tender your Shares using the enclosed Notice of Guaranteed Delivery (See Section 3 — “Procedures for Accepting the Offer and Tendering Shares” for further details).

* * * * *

Questions and requests for assistance should be directed to the Information Agent (as described herein) at its address and telephone numbers set forth below and on the back cover of this Offer to Purchase. Additional copies of this Offer to Purchase, the related Letter of Transmittal and other materials related to the Offer may also be obtained for free from the Information Agent. Additionally, copies of this Offer to Purchase, the related Letter of Transmittal and any other material related to the Offer may be obtained at the website maintained by the Securities and Exchange Commission (the “SEC”) at www.sec.gov. You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance.

This Offer to Purchase and the related Letter of Transmittal contain important information and you should read both carefully and in their entirety before making a decision with respect to the Offer.

The Offer has not been approved or disapproved by the SEC or any state securities commission, nor has the SEC or any state securities commission passed upon the fairness or merits of or upon the accuracy or adequacy of the information contained in this Offer to Purchase. Any representation to the contrary is unlawful.

The Information Agent for the Offer is:

 

 

LOGO

1290 Avenue of the Americas, 9th Floor

New York, New York 10104

Shareholders, Banks and Brokers may call toll free: 1-866-431-2096

August 23, 2023


TABLE OF CONTENTS

 

SUMMARY TERM SHEET

     1  

INTRODUCTION

     11  

THE TENDER OFFER

     15  

1. Terms of the Offer

     15  

2. Acceptance for Payment and Payment for Shares

     16  

3. Procedures for Accepting the Offer and Tendering Shares

     17  

4. Withdrawal Rights

     20  

5. Certain U.S. Federal Income Tax Considerations

     20  

6. Price Range of Shares; Dividends

     23  

7. Certain Information Concerning CTG

     24  

8. Certain Information Concerning Parent and Merger Sub

     25  

9. Source and Amount of Funds

     26  

10. Background of the Offer; Past Contacts or Negotiations with CTG

     28  

11. The Merger Agreement; Other Agreements

     32  

12. Purpose of the Offer; Plans for CTG

     56  

13. Certain Effects of the Offer

     57  

14. Dividends and Distributions

     57  

15. Conditions to the Offer

     58  

16. Certain Legal Matters; Regulatory Approvals

     60  

17. Appraisal Rights

     63  

18. Fees and Expenses

     64  

19. Miscellaneous

     64  

SCHEDULE I — INFORMATION RELATING TO PARENT AND MERGER SUB

     65  


SUMMARY TERM SHEET

The information contained in this summary term sheet is a summary only and is not meant to be a substitute for the more detailed description and information contained in the Offer to Purchase, the Letter of Transmittal and other related materials. You are urged to read carefully the Offer to Purchase, the Letter of Transmittal and other related materials in their entirety. Parent and Merger Sub have included cross-references in this summary term sheet to other sections of the Offer to Purchase where you will find more complete descriptions of the topics mentioned below. The information concerning CTG contained herein and elsewhere in the Offer to Purchase has been provided to Parent and Merger Sub by CTG or has been taken from or is based upon publicly available documents or records of CTG on file with the United States Securities and Exchange Commission (“SEC”) (or other public sources at the time of the Offer). Parent and Merger Sub have not independently verified the accuracy and completeness of such information.

 

Securities Sought

All issued and outstanding shares of common stock, par value $0.01 per share, of Computer Task Group, Incorporated (the “Shares”). See Section 1 — “Terms of the Offer.”

 

Price Offered Per Share

$10.50 per Share, net to the seller in cash (the “Offer Price”), without interest and less any applicable withholding taxes. As a result of the Merger, CTG will cease to be a publicly traded company and will become a wholly owned subsidiary of Parent. Under no circumstances will interest be paid on the Offer Price, regardless of any extension of the Offer or any delay in making payment for Shares. See Section 1 — “Terms of the Offer.”

 

Scheduled Expiration of Offer

End of the day, one minute after 11:59 P.M., Eastern Time, on September 20, 2023, unless the offer is extended or terminated. See Section 1 — “Terms of the Offer.”

 

Merger Sub

Chicago Merger Sub, Inc., a New York corporation and a wholly owned subsidiary of Cegeka Groep NV, a Belgian limited liability company. See the “Introduction” and Section 8 — “Certain Information Concerning Parent and Merger Sub.”

 

Top-Up Option

Under the Merger Agreement, CTG has granted Merger Sub an irrevocable option (the “Top-Up Option”) for so long as the Merger Agreement has not been terminated pursuant to the provisions therein, which Merger Sub may exercise in certain circumstances following the consummation of the Offer, to purchase from CTG such number of authorized and unissued Shares (the “Top-Up Shares”) equal to the lesser of (i) the lowest number of Shares that, when added to the number of Shares owned by Parent, Merger Sub and any of their respective subsidiaries at the time of exercise of the Top-Up Option, shall constitute one Share more than 90% of the outstanding Shares immediately after the issuance of the Top-Up Shares on a fully-diluted basis (which assumes conversion or exercise of all derivative securities regardless of the conversion or exercise price, the vesting schedule or other terms and conditions thereof) and (ii) the aggregate number of authorized but unissued and unreserved Shares (including as authorized and unissued Shares, for purposes hereof, any Shares held in the treasury of the Company). See Section 1 — “Terms of the Offer.”

 

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Who is offering to purchase my shares?

Chicago Merger Sub, Inc., or “Merger Sub”, a wholly owned subsidiary of Cegeka Groep NV, or “Parent”, is offering to purchase for cash all of the issued and outstanding Shares. Merger Sub is a New York corporation that was formed for the sole purpose of making the Offer and completing the process by which Merger Sub will be merged with and into CTG. See the “Introduction” and Section 8 — “Certain Information Concerning Parent and Merger Sub.”

Unless the context indicates otherwise, in this Offer to Purchase, we use the terms “us”, “we” and “our” to refer to Merger Sub and, where appropriate, Parent. We use the term “Parent” to refer to Cegeka Groep NV alone, the term “Merger Sub” to refer to Chicago Merger Sub, Inc. alone and the terms “CTG” and the “Company” to refer to Computer Task Group, Incorporated alone.

What are the classes and amounts of securities sought in the Offer?

We are offering to purchase all of the outstanding Shares of CTG on the terms and subject to the conditions set forth in this Offer to Purchase. Unless the context otherwise requires, in this Offer to Purchase we use the term “Offer” to refer to this offer and the term “Shares” to refer to Shares of CTG common stock.

See the “Introduction” to this Offer to Purchase and Section 1 — “Terms of the Offer.”

Why are you making the Offer?

We are making the Offer because we want to acquire the entire equity interest in CTG. If the Offer is consummated, pursuant to the Merger Agreement (as defined below), Parent intends immediately thereafter to cause Merger Sub to consummate the Merger (as described below). Upon consummation of the Merger, CTG would cease to be a publicly traded company and would be a wholly owned subsidiary of Parent.

How much are you offering to pay and what is the form of payment? Will I have to pay any fees or commissions?

We are offering to pay $10.50 per Share net to the seller in cash, without interest and less any applicable withholding taxes. If you are the record owner of your Shares and you tender your Shares to us in the Offer, you will not have to pay brokerage fees, commissions or similar expenses. If you own your Shares through a broker or other nominee and your broker or other nominee tenders your Shares on your behalf, your broker or nominee may charge you a fee for doing so. You should consult your broker or nominee to determine whether any charges will apply.

See the “Introduction,” Section 1 — “Terms of the Offer” and Section 2 — “Acceptance for Payment and Payment for Shares.”

Is there an agreement governing the Offer?

Yes. Parent, Merger Sub and CTG have entered into an Agreement and Plan of Merger, dated as of August 9, 2023 (as it may be amended from time to time, the “Merger Agreement”). The Merger Agreement provides, among other things, for the terms and conditions to the Offer and the subsequent merger of Merger Sub with and into CTG (the “Merger”). If the Minimum Condition (as defined below) is satisfied and we consummate the Offer, we intend to effect the Merger as promptly as practicable without any vote by the shareholders of CTG pursuant to Section 905(a) of the New York Business Corporation Law (the “NYBCL”).

See Section 11 — “The Merger Agreement; Other Agreements” and Section 15 — “Conditions to the Offer.”

 

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Will you have the financial resources to make payment?

Yes. Consummation of the Offer is not subject to any financing condition. The total amount of funds required by Parent and Merger Sub to consummate the Offer and purchase all outstanding Shares in the Offer, provide funding for the Merger, provide funding for the payment in respect of outstanding In The Money Options (as defined below), Company RSUs (as defined below) and Company PSUs (as defined below), and repay existing indebtedness of CTG is approximately $180,000,000, plus related fees and expenses. Parent anticipates funding such cash requirements from (i) its cash on hand, (ii) borrowings under additional credit facilities to be obtained pursuant to a commitment letter dated August 8, 2023, with KBC Bank NV, Belfius Bank SA/NV and ING Belgium SA/NV or (iii) a combination of the foregoing.

See Section 9 — “Source and Amount of Funds.”

Is your financial condition relevant to my decision to tender my Shares in the Offer?

No. We do not think our or Merger Sub’s financial condition is relevant to your decision whether to tender Shares and accept the Offer because:

 

   

the Offer is not subject to any financing condition;

 

   

if Merger Sub consummates the Offer, it will acquire all remaining Shares for the same consideration in the Merger;

 

   

the Offer is being made for all outstanding Shares solely for cash; and

 

   

Parent and/or one or more of its affiliates has, and will arrange for Merger Sub to have, sufficient funds available to pay the Offer Price in respect of all Shares validly tendered in the Offer, and not properly withdrawn, prior to the Expiration Date (as defined below) and to acquire the remaining outstanding Shares in the Merger.

How long do I have to decide whether to tender my Shares in the Offer?

You will have until the end of the day, one minute after 11:59 P.M., Eastern Time, on September 20, 2023, unless we extend the Offer pursuant to the terms of the Merger Agreement (such date and time, as it may be extended in accordance with the terms of the Merger Agreement, the “Expiration Date”) or the Offer is earlier terminated. If you cannot deliver everything required to make a valid tender to the Depositary (as described below) prior to such time, you may be able to use a guaranteed delivery procedure, which is described in Section 3 — “Procedures for Accepting the Offer and Tendering Shares.” Please give your broker, dealer, commercial bank, trust company or other nominee instructions with sufficient time to permit such nominee to tender your Shares by the Expiration Date.

Acceptance and payment for Shares pursuant to and subject to the conditions to the Offer is referred to as the “Offer Closing,” and the date and time at which such Offer Closing occurs is referred to as the “Offer Acceptance Time.” The date and time at which the Merger becomes effective is referred to as the “Effective Time.”

See Section 1 — “Terms of the Offer” and Section 3 — “Procedures for Accepting the Offer and Tendering Shares.”

Can the Offer be extended and under what circumstances?

Yes, the Offer can be extended. In certain circumstances, we are required to extend the Offer beyond the initial Expiration Date, but we will not be (i) required to extend the Offer beyond the earliest to occur of (A) the valid termination of the Merger Agreement and (B) February 9, 2024 (which date may be extended by up to ninety days under certain circumstances, the “Extension Deadline”) or (ii) permitted to extend the Offer beyond the Extension Deadline without the Company’s prior written consent.

 

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We have agreed in the Merger Agreement that, subject to our rights to terminate the Merger Agreement in accordance with its terms, (i) if, as of the then-scheduled Expiration Date, any Offer Condition (as defined below) has not been satisfied or waived (to the extent waivable by Merger Sub or Parent), Merger Sub or Parent may, in their sole discretion, extend the Offer on one or more occasions, for an additional period of up to ten (10) business days per extension, in order to permit the satisfaction of such Offer Condition; (ii) Merger Sub will, and Parent will cause Merger Sub to, extend the Offer for: (A) any period required by applicable securities law, rule or regulation, any interpretation or position of the SEC or its staff or The NASDAQ Stock Market LLC (“NASDAQ”) applicable to the Offer; and (B) periods of not more than ten (10) business days per extension, until any waiting period (and any extension thereof) applicable to the consummation of the Offer under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder (the “HSR Act”) and any foreign antitrust or competition-related law has expired or been terminated; and (iii) if, as of the then-scheduled Expiration Date, any Offer Condition has not been satisfied or waived, at the request of CTG, Merger Sub will, and Parent will cause Merger Sub to, extend the Offer for an additional period of not more than ten (10) business days per extension, in order to permit the satisfaction of such Offer Condition. However, Parent or Merger Sub is not required to extend the Offer beyond the Extension Deadline and may not extend the Offer beyond the Extension Deadline without CTG’s consent. If we extend the Offer, such extension will extend the time that you will have to tender (or withdraw) your Shares.

See Section 1 — “Terms of the Offer” of this Offer to Purchase for more details on our obligation and ability to extend the Offer.

How will I be notified if the Offer is extended?

If we extend the Offer, we will inform Computershare Trust Company, N.A., which is the depositary and paying agent for the Offer (the “Depositary”), of any extension and will issue a press release announcing the extension not later than 9:00 A.M., Eastern Time, on the next business day after the previously scheduled Expiration Date.

See Section 1 — “Terms of the Offer.”

Will there be a subsequent offering period?

No. The Merger Agreement does not contemplate a subsequent offering period for the Offer and we expect the Merger to occur as promptly as practicable after the consummation of the Offer and we acquire at least 90% of the Shares in the Offer (including pursuant to the Top-Up Option), without a subsequent offering period.

What are the conditions to the Offer?

The Offer is conditioned upon the satisfaction or waiver of the following conditions (the “Offer Conditions”):

 

   

the number of Shares validly tendered in accordance with the terms of the Offer and not validly withdrawn on or prior to one minute after 11:59 P.M., Eastern Time on the Expiration Date, together with all other Shares (if any) beneficially owned by Parent and its affiliates, equals one Share more than 66 2/3% of the sum of (i) the total number of Shares outstanding at the time of the expiration of the Offer, plus (ii) the total number of Shares that the Company is required to issue upon conversion, settlement, exchange or exercise of all options, warrants, rights or securities for which the holder has, at the time of the expiration of the Offer, elected to convert, settle, exchange or exercise or for which the conversion, settlement, exchange or exercise date has already occurred (but without duplication) (the “Minimum Condition”);

 

   

(i) any waiting period (or any extension thereof) applicable to the Offer under the HSR Act has expired or been terminated, and (ii) the applicable governmental bodies of competent jurisdiction in Belgium

 

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and Luxembourg have granted merger control or other applicable regulatory clearance, or failed to render a decision within the applicable waiting period under relevant law and such failure is considered under such law to be a grant of all requisite approvals, consents or clearances under such law to effectuate the Transactions, or provided confirmation that a merger control filing obligation is not triggered as a result of the Transactions ((i) and (ii), together, the “Regulatory Condition”);

 

   

there has not been any judgment, temporary restraining order, preliminary or permanent injunction or other order, decree or ruling, which remains in effect, by any governmental body of competent jurisdiction restraining, enjoining or otherwise preventing the acquisition of or payment for Shares pursuant to the Offer or the consummation of any of the execution and delivery of the Merger Agreement, which includes as an annex the Support Agreement (as defined below), and all of the transactions contemplated by the Merger Agreement, the Support Agreement, including the Offer, the Top-Up Option and the Merger (the “Transactions”), nor has there been any law promulgated, enacted, issued or deemed applicable to any of the Transactions by any governmental body which prohibits or makes illegal the acquisition of or payment for Shares pursuant to the Offer or the consummation of the Merger (the “Governmental Impediment Condition”);

 

   

the Merger Agreement has not been terminated in accordance with its terms (the “Termination Condition”);

 

   

the accuracy of the representations and warranties made by CTG in the Merger Agreement, subject to the materiality and other qualifications set forth in the Merger Agreement (the “Representations Condition”);

 

   

the performance or compliance of CTG in all material respects with all of the obligations, agreements and covenants required to be performed or complied with by it under the Merger Agreement (the “Covenants Condition”);

 

   

since the date of the Merger Agreement, there has not occurred any event, occurrence, circumstance, change or effect which, individually or in the aggregate, has had, or would reasonably be expected to have, a Material Adverse Effect (as described below) (the “Material Adverse Effect Condition”);

 

   

the parties shall have received written notice from the Committee on Foreign Investment in the United States and each member agency thereof, acting in such capacity (“CFIUS”), that review or investigation under the Defense Production Act of 1950, as amended and codified at 50 U.S.C. § 4565, including all implementing regulations thereof (the “DPA”), of the Transactions has been concluded, and CFIUS shall have determined that there are no unresolved national security concerns with respect to the Transactions, and advised that action under the DPA, and any investigation related thereto, has been concluded with respect to the Transactions; (ii) CFIUS shall have concluded that the Transactions are not a covered transaction and not subject to review under the DPA; or (iii) CFIUS has sent a report to the President of the United States requesting the President’s decision on the joint voluntary notice with respect to the Transactions prepared by the parties and submitted to CFIUS in accordance with the requirements of the DPA (the “CFIUS Notice”) and either (a) the period under the DPA during which the President may announce his decision to take action to suspend or prohibit the Transactions shall have elapsed without any such action being announced or taken, or (b) the President shall have announced a decision to take no action to suspend or prohibit the Transactions (the “CFIUS Approval Condition”); provided, that Parent and Merger Sub will promptly waive the CFIUS Approval Condition if (a) all of the other conditions set forth in the Merger Agreement are satisfied or waived by Parent or Merger Sub, to the extent waivable by Parent or Merger Sub and (b) such waiver of the CFIUS Approval Condition would not adversely affect, or would reasonably be expected to adversely affect, Parent or any of its subsidiaries, including the Surviving Corporation following the Effective Time, as determined by Parent in its reasonable judgment; and

 

   

Parent and Merger Sub have received a certificate executed on behalf of the Company by the chief executive officer and the chief financial officer of the Company confirming that the Representations Condition, the Covenants Condition and the Material Adverse Effect Condition have been satisfied.

 

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Merger Sub expressly reserves the right to (i) increase the Offer Price, (ii) waive any Offer Condition, (iii) make any other changes in the terms and conditions to the Offer that are not inconsistent with the terms of the Merger Agreement and (iv) terminate the Offer if the conditions to the Offer are not satisfied and the Merger Agreement is terminated. However, without the prior written consent of CTG, Parent and Merger Sub are not permitted to (i) decrease the Offer Price, (ii) change the form of consideration payable in the Offer, (iii) decrease the maximum number of Shares sought to be purchased in the Offer, (iv) impose conditions on or requirements to the Offer in addition to the Offer Conditions, (v) amend, modify or waive the Minimum Condition, Termination Condition, the Regulatory Condition or the Government Impediment Condition, (vi) otherwise amend or modify any other term of the Offer in a manner that adversely affects, or would reasonably be expected to adversely affect, any holder of Shares, (vii) terminate the Offer or accelerate, extend or otherwise change the Expiration Date, in each case, except as provided in the Merger Agreement or (viii) provide any “subsequent offering period” (or any extension thereof) within the meaning of Rule 14d-11 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Offer may not be withdrawn prior to the Expiration Date of the Offer unless the Merger Agreement is terminated in accordance with its terms.

See Section 15 — “Conditions to the Offer.”

Have any CTG shareholders entered into agreements with Parent, Merger Sub or their affiliates requiring them to tender their Shares pursuant to the Offer?

Yes. In connection with the execution of the Merger Agreement, the directors and certain executive officers of CTG (the “Supporting Shareholders”) entered into the Support Agreement. Subject to the terms and conditions of the Support Agreement, each of the Supporting Shareholders agreed, among other things, subject to certain exceptions, to tender his or her Shares (including any Shares acquired upon the exercise of Company Options (as defined below)), pursuant to the Offer, which Shares represent in the aggregate approximately 8.8% of CTG’s total outstanding Shares as of August 8, 2023, and, subject to certain exceptions, not to transfer any of the Shares that are subject to the Support Agreement. See Section 11 — “The Merger Agreement; Other Agreements” in this Offer to Purchase for a description of the Support Agreement.

How do I tender my Shares?

If you hold your Shares directly as the registered owner, you can (i) tender your Shares in the Offer by delivering the certificates representing your Shares, together with a completed and signed Letter of Transmittal and any other documents required by the Letter of Transmittal, to the Depositary or (ii) tender your Shares by following the procedure for book-entry transfer set forth in Section 3 of this Offer to Purchase, no later than the Expiration Date. If you are the registered owner but your stock certificate is not available or you cannot deliver it to the Depositary before the Offer expires, you may have a limited amount of additional time by having a broker, a bank or other fiduciary that is an eligible institution guarantee that the missing items will be received by the Depositary within two (2) NASDAQ trading days. For the tender to be valid, however, the Depositary must receive the missing items within that two (2) trading-day period. See Section 3 — “Procedures for Accepting the Offer and Tendering Shares” for further details. The Letter of Transmittal is enclosed with this Offer to Purchase.

If you hold your Shares in street name through a broker, dealer, commercial bank, trust company or other nominee, you must contact the institution that holds your Shares and give instructions that your Shares be tendered. You should contact the institution that holds your Shares for more details.

If you hold Shares within the Computer Task Group, Incorporated Amended and Restated First Employee Stock Purchase Plan (the “CTG ESPP”), you must follow the procedures described in the separate instructions that you will receive from Computershare Trust Company, N.A, the trustee under the CTG ESPP, and accept the Offer within the time period specified in the instructions.

See Section 3 — “Procedures for Accepting the Offer and Tendering Shares.”

 

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Until what time may I withdraw previously tendered Shares?

You may withdraw your previously tendered Shares at any time until the Expiration Date. In addition, pursuant to Section 14(d)(5) of the Exchange Act, Shares may be withdrawn at any time after October 23, 2023, which is the first business day following the 60th day after the date of the commencement of the Offer, unless prior to that date Merger Sub has accepted for payment the Shares validly tendered in the Offer.

See Section 4 — “Withdrawal Rights.”

How do I withdraw previously tendered Shares?

To withdraw previously tendered Shares, you must deliver a written notice of withdrawal, or a facsimile of one, with the required information to the Depositary while you still have the right to withdraw Shares. If you tendered Shares by giving instructions to a broker, dealer, commercial bank, trust company or other nominee, you must instruct the broker, dealer, commercial bank, trust company or other nominee to arrange for the withdrawal of your Shares.

See Section 4 — “Withdrawal Rights.”

What does the CTG board of directors think of the Offer?

The board of directors of CTG (which we refer to as the “CTG Board”), among other things, has (i) determined that the Merger Agreement and transactions contemplated thereby are fair to and in the best interest of CTG and its shareholders, (ii) declared it advisable to enter into the Merger Agreement, (iii) approved the execution, delivery and performance by CTG of the Merger Agreement and the consummation of the Transactions, including the Offer and the Merger, (iv) resolved that the Merger be effected under Section 905 of the NYBCL and (v) resolved to recommend that the shareholders of CTG accept the Offer and tender their Shares to Merger Sub pursuant to the Offer.

See the “Introduction” and Section 10 — “Background of the Offer; Past Contacts or Negotiations with CTG.” A more complete description of the reasons for the CTG Board’s approval of the Offer and the Merger is set forth in a Solicitation/Recommendation Statement on Schedule 14D-9 that is being mailed to all CTG shareholders together with this Offer to Purchase.

If the Offer is completed, will CTG continue as a public company?

No. Immediately following consummation of the Offer, we expect to complete the Merger pursuant to applicable provisions of New York law, after which the Surviving Corporation will be a wholly owned subsidiary of Parent and the Shares will no longer be publicly traded.

See Section 13 — “Certain Effects of the Offer.”

Will the Offer be followed by the Merger if all of the Shares are not tendered in the Offer?

Pursuant to the Merger Agreement, if the Minimum Condition is not satisfied, we are not required (nor are we permitted) to accept the Shares for purchase in the Offer, nor will we consummate the Merger. If the Minimum Condition is satisfied and we have acquired more than 90% of outstanding Shares, then, in accordance with the terms of the Merger Agreement, we will complete the Merger without a vote of the shareholders of CTG pursuant to Section 905(a) of the NYBCL. If the Minimum Condition is satisfied but we have not acquired more than 90% of outstanding Shares, then CTG has granted Merger Sub an irrevocable option (the “Top-Up Option”) which Merger Sub may exercise in certain circumstances to purchase from CTG such number of authorized and unissued Shares equal to the lesser of (i) the lowest number of Shares that, when added to the number of Shares

 

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owned by Parent, Merger Sub and any of their respective subsidiaries at the time of exercise of the Top-Up Option, shall constitute one Share more than 90% of the outstanding Shares immediately after the issuance of the Top-Up Shares on a fully-diluted basis, or (ii) the aggregate number of authorized but unissued and unreserved Shares (including as authorized and unissued Shares, for purposes hereof, any Shares held in the treasury of the Company). If Merger Sub acquires at least 90% of the Shares in the Offer (including pursuant to the Top-Up Option), Merger Sub shall consummate the Merger under Section 905(a) of the NYBCL without a shareholders meeting and without action by the Company’s shareholders.

Under the applicable provisions of the Merger Agreement, the Offer and the NYBCL, shareholders of CTG (i) will not be required to vote on the Merger, (ii) will be entitled to appraisal rights under New York law in connection with the Merger with respect to any Shares not tendered in the Offer and (iii) will, if they do not validly exercise appraisal rights under New York law, receive the same Offer Price, without interest and less any applicable withholding taxes, for their Shares as was payable in the Offer (the “Merger Consideration”).

See Section 11 — “The Merger Agreement; Other Agreements,” Section 12 — “Purpose of the Offer; Plans for CTG — Merger Without a Shareholder Vote” and Section 17 — “Appraisal Rights.”

What is the Top-Up Option and when can it be exercised?

Under the Merger Agreement, CTG has granted Merger Sub the Top-Up Option, which Merger Sub may exercise in certain circumstances following the consummation of the Offer, to purchase Top-Up Shares that, when added to the number of Shares owned by Parent, Merger Sub and any of their respective subsidiaries at the time of exercise of the Top-Up Option, constitutes one Share more than 90% of the outstanding Shares on a fully diluted basis after giving effect to the issuance of the Top-Up Shares. If Merger Sub acquires at least 90% of the issued and outstanding Shares in the Offer (including pursuant to the Top-Up Option), Merger Sub will consummate the Merger under Section 905(a) of the NYBCL without a shareholders meeting and without action by the Company’s shareholders. See Section 11 — “The Merger Agreement; Other Agreements — Merger Agreement — Top-Up Option.”

Without the prior written consent of CTG, the Top-Up Option will be exercisable only once, in whole but not in part, at any time following the Offer Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of the Merger Agreement in accordance with its terms, provided that the Top-Up Option is not exercisable to the extent that: (i) the number of Top-Up Shares issuable upon exercise of the Top-Up Option would exceed the number of authorized but unissued and unreserved Shares (including as authorized and unissued Shares, for purposes hereof, any Shares held in the treasury of the Company); or (ii) any provision of applicable law prohibits the exercise of the Top-Up Option or the delivery of the Top-Up Shares.

The aggregate purchase price payable for the Top-Up Shares that would be purchased by Merger Sub pursuant to the Top-Up Option is determined by multiplying the number of such Top-Up Shares then-subject to the Top-Up Option by the Offer Price. Such purchase price will be paid by Parent or Merger Sub, by (i) paying in cash an amount equal to not less than the aggregate par value of the Top-Up Shares and by (ii) executing and delivering to CTG a promissory note having a principal amount equal to the aggregate purchase price pursuant to the Top-Up Option less the amount paid in cash pursuant to the preceding clause (i).

What is the market value of my Shares as of a recent date?

On August 8, 2023, the trading day before the public announcement of the execution of the Merger Agreement, the reported closing sales price of the Shares on NASDAQ was $8.00. On August 22, 2023, the last full trading day before the commencement of the Offer, the reported closing sales price of the Shares on NASDAQ was $10.25. The Offer Price represents an approximately 31.25% premium over the closing price of the Shares on August 8, 2023, the last full trading day before the announcement of the Merger Agreement, and a 44.8% premium to the trailing 90-day volume weighted average stock price as of August 7, 2023.

 

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See Section 6 — “Price Range of Shares; Dividends.”

Will I be paid a dividend on my Shares during the pendency of the Offer?

No. The Merger Agreement provides that from the date of the Merger Agreement to the Effective Time, without the prior written consent of Parent, CTG will not establish a record date for, declare, set aside or pay any dividend or make any other distributions (whether in cash, stock or property) on any shares of any CTG securities (including the Shares).

See Section 6 — “Price Range of Shares; Dividends.”

Will I have appraisal rights in connection with the Offer or the Merger?

No appraisal rights will be available with respect to Shares tendered and accepted for purchase in the Offer or the Merger. However, if the Merger is consummated, shareholders who do not tender their Shares in the Offer will have certain rights under Section 910 of the NYBCL to demand exercise of appraisal rights, and to receive payment in cash of the fair value of, their Shares. Such appraisal rights, if the statutory procedures are met, could lead to a judicial determination of the fair value of the Shares, as of the close of business on the day prior to the shareholders’ authorization date, required to be paid in cash to such holders asserting appraisal rights for their Shares.

See Section 17 — “Appraisal Rights.”

What will happen to my stock options in the Offer?

Pursuant to the Merger Agreement, at the Effective Time, each stock option to purchase Shares (“Company Option”) that is outstanding and unexercised, whether or not vested and which has a per share exercise price that is less than the Offer Price (each, an “In The Money Option”) will be cancelled and converted into the right to receive a cash payment equal to (i) the excess, if any, of (x) the Offer Price over (y) the exercise price payable per Share under such In the Money Option, (ii) multiplied by the total number of Shares subject to such In the Money Option immediately prior to the Effective Time (without regard to vesting), subject to any applicable withholding or other taxes required by applicable law.

Each Company Option other than an In the Money Option that is outstanding and unexercised at the Effective Time, whether or not vested (each, an “Out of the Money Option”) will be cancelled without payment of consideration and all rights with respect to such Out of the Money Option will terminate as of the Effective Time.

Each of the restricted stock units with respect to Shares that is outstanding at the Effective Time, which are not Company PSUs (as defined below) (each, a “Company RSU”) whether or not vested, will be canceled and the holder thereof will be entitled to receive (a) a cash payment equal to the product of (i) the Offer Price and (ii) the number of Shares subject to such Company RSU.

Each of the then outstanding performance vesting restricted stock units with respect to Shares that is outstanding at the Effective Time (each, a “Company PSU”) whether or not vested, will be canceled and the holder thereof will be entitled to receive (a) a cash payment equal to the product of (i) the Offer Price and (ii) the number of Shares subject to such Company PSU immediately prior to the Effective Time (determined at the target level of performance).

See Section 11 — “The Merger Agreement; Other Agreements — Merger Agreement — Treatment of Equity Awards.”

 

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What are the United States federal income tax consequences of the Offer and the Merger?

The receipt of cash in exchange for Shares pursuant to the Offer or the Merger will be a taxable transaction for U.S. federal income tax purposes.

We urge you to consult your own tax advisor as to the particular tax consequences to you of the receipt of cash in exchange for Shares pursuant to the Offer or the Merger.

See Section 5 — “Certain U.S. Federal Income Tax Considerations” for a more detailed discussion of the tax consequences of the Offer and the Merger.

Who should I call if I have questions about the Offer?

You may call Georgeson at 1-866-431-2096. Georgeson is acting as the information agent (the “Information Agent”) for our tender offer. See the back cover of this Offer to Purchase for additional contact information.

 

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INTRODUCTION

To the Holders of Shares of Common Stock of Computer Task Group, Incorporated:

Chicago Merger Sub, Inc., a New York corporation (“Merger Sub”) and a wholly owned subsidiary of Cegeka Groep NV, a Belgian limited liability company (“Parent”), is offering to purchase all of the outstanding shares of common stock, par value $0.01 per share (the “Shares”), of Computer Task Group, Incorporated, a New York corporation (the “Company” or “CTG”), upon the terms and subject to the conditions set forth in this Offer to Purchase (the “Offer to Purchase”) and in the related Letter of Transmittal (the “Letter of Transmittal” which, together with this Offer to Purchase and other related materials, as each may be amended or supplemented from time to time, constitutes the “Offer”).

The Offer is being made pursuant to the Agreement and Plan of Merger, dated as of August 9, 2023 (as it may be amended from time to time, the “Merger Agreement”), by and among Parent, Merger Sub and CTG. The Merger Agreement provides, among other things, that following the consummation of the Offer and subject to the satisfaction or waiver of certain conditions, Merger Sub will be merged with and into CTG (the “Merger”) as soon as practicable without a vote of the shareholders of CTG in accordance with Section 905(a) of the New York Business Corporation Law, with CTG continuing as the surviving corporation (the “Surviving Corporation”) in the Merger and thereby becoming a wholly owned subsidiary of Parent. In the Merger, each Share outstanding immediately prior to the effective time of the Merger (“Effective Time”) (other than Shares held by CTG as treasury stock or by Parent, Merger Sub or any other direct or indirect wholly owned subsidiary of Parent, which Shares will be cancelled and retired and will cease to exist, and other than Shares held by a holder who validly exercises appraisal rights in accordance with New York law with respect to the Shares) will be automatically converted into the right to receive (a) $10.50 per Share, net to the seller in cash (the “Offer Price”), without interest and less any applicable withholding taxes. As a result of the Merger, CTG will cease to be a publicly traded company and will become a wholly owned subsidiary of Parent. Under no circumstances will interest be paid on the Offer Price, regardless of any extension of the Offer or any delay in making payment for Shares. The Merger Agreement is more fully described in Section 11 — “The Merger Agreement; Other Agreements,” which also contains a discussion of the treatment of CTG stock options in the Merger.

Tendering shareholders who are record owners of their Shares and who tender directly to Computershare Trust Company, N.A., the depositary and paying agent for the Offer (the “Depositary”), will not be obligated to pay brokerage fees or commissions or, except as otherwise provided in Instruction 6 of the Letter of Transmittal, stock transfer taxes with respect to the purchase of Shares by Merger Sub pursuant to the Offer. Shareholders who hold their Shares through a broker, dealer, commercial bank, trust company or other nominee should consult such institution as to whether it charges any service fees or commissions.

The Offer is conditioned upon, among other things, the satisfaction of (a) the absence of a termination of the Merger Agreement in accordance with its terms (the “Termination Condition”), (b) the Minimum Condition (as described below), (c) the Regulatory Condition (as described below), (d) the Governmental Impediment Condition (as described below), and (e) the CFIUS Approval Condition (as described below). The Minimum Condition requires that the number of Shares validly tendered in accordance with the terms of the Offer and not validly withdrawn on or prior to the end of the day, one minute after 11:59 P.M., Eastern Time, on the Expiration Date, together with all other Shares (if any) beneficially owned by Parent and its affiliates, equals one Share more than 66 2/3% of the sum of (i) the total number of Shares outstanding at the time of the expiration of the Offer, plus (ii) the total number of Shares that the Company is required to issue upon conversion, settlement, exchange or exercise of all options, warrants, rights or securities for which the holder has, by the time of the expiration of the Offer, elected to convert, settle, exchange or exercise (whether then outstanding or for which the conversion, settlement, exchange or exercise date has already occurred, (but without duplication).

The Regulatory Condition requires that (i) any waiting period (or any extension thereof) applicable to the Offer under the HSR Act has expired or been terminated, and (ii) the applicable governmental bodies of

 

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competent jurisdiction in Belgium and Luxembourg have granted merger control or other applicable regulatory clearance, or failed to render a decision within the applicable waiting period under relevant law and such failure is considered under such law to be a grant of all requisite approvals, consents or clearances under such law to effectuate the Transactions, or provided confirmation that a merger control filing obligation is not triggered as a result of the Transactions. The requirements of the HSR Act do not apply to either the acquisition of Shares in the Offer or to the Merger because the acquisition of the Company’s non-US entities and assets is exempt and Parent has determined, in good faith, that the fair market value of the Company’s U.S. entities and assets is below the applicable reportability threshold.

The Governmental Impediment Condition requires that, other than the application of the waiting period provisions of the HSR Act and any foreign antitrust or competition-related requirements under applicable law to the Offer or the Merger and the condition that the applicable governmental bodies of competent jurisdiction in Belgium and Luxembourg grant merger control clearance or other applicable regulatory clearance or provide confirmation that a merger control filing or other regulatory filing is not triggered as a result of the Transactions, there has not been any judgment, order, injunction, decree or ruling, which remains in effect, by any governmental body, restraining, enjoining or otherwise preventing the acquisition of or payment for Shares pursuant to the consummation of any of the Transactions and there has not been any law promulgated, enacted, issued or deemed applicable to any of the Transactions by any governmental body which prohibits or makes illegal the acquisition of or payment for Shares pursuant to the Offer or consummation of the Merger.

The CFIUS Approval Condition requires that (i) the parties shall have received written notice from the Committee on Foreign Investment in the United States and each member agency thereof, acting in such capacity (“CFIUS”), that review or investigation under the Defense Production Act of 1950, as amended and codified at 50 U.S.C. § 4565, including all implementing regulations thereof (the “DPA”), of the Transactions has been concluded, and CFIUS shall have determined that there are no unresolved national security concerns with respect to the Transactions, and advised that action under the DPA, and any investigation related thereto, has been concluded with respect to the Transactions; (ii) CFIUS shall have concluded that the Transactions are not a covered transaction and not subject to review under the DPA; or (iii) CFIUS has sent a report to the President of the United States requesting the President’s decision on the joint voluntary notice with respect to the Transactions prepared by the parties and submitted to CFIUS in accordance with the requirements of the DPA (the “CFIUS Notice”) and either (a) the period under the DPA during which the President may announce his decision to take action to suspend or prohibit the Transactions shall have elapsed without any such action being announced or taken, or (b) the President shall have announced a decision to take no action to suspend or prohibit the Transactions (the foregoing (i)-(iii), “CFIUS Approval”); provided, that Parent and Merger Sub will promptly waive the CFIUS Approval Condition if (a) all of the other conditions set forth in the Merger Agreement are satisfied or waived by Parent or Merger Sub, to the extent waivable by Parent or Merger Sub and (b) such waiver of the CFIUS Approval Condition would not adversely affect, or would reasonably be expected to adversely affect, Parent or any of its subsidiaries, including the Surviving Corporation following the Effective Time, as determined by Parent in its reasonable judgment.

The Offer is also subject to other conditions as described in this Offer to Purchase. See Section 15 — “Conditions to the Offer.” The Offer is not subject to any financing condition.

The CTG Board, among other things, has (i) determined that the Merger Agreement and transactions contemplated thereby are fair to and in the best interest of CTG and its shareholders, (ii) declared it advisable to enter into the Merger Agreement, (iii) approved the execution, delivery and performance by CTG of the Merger Agreement and the consummation of the transactions contemplated thereby, including the Offer and the Merger, (iv) resolved that the Merger be effected under Section 905 of the NYBCL and (v) resolved to recommend that the shareholders of CTG accept the Offer and tender their Shares to Merger Sub pursuant to the Offer.

A more complete description of the CTG Board’s reasons for authorizing and approving the Merger Agreement and the transactions contemplated thereby, including the Offer and the Merger, is set forth in the

 

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Solicitation/Recommendation Statement on Schedule 14D-9 of CTG (together with any exhibits and annexes attached thereto, the “Schedule 14D-9”), that is being furnished to shareholders in connection with the Offer, together with this Offer to Purchase. Shareholders should carefully read the information set forth in the Schedule 14D-9, including the information to be set forth under the sub-heading “Background and Reasons for the Company Board’s Recommendation.”

CTG has advised Parent that, as of August 2, 2023, (i) 16,044,813.5554 Shares were issued and outstanding, (ii) 1,332,068 Shares were subject to issuance pursuant to all options to purchase Shares (“Company Options”) granted and outstanding under the Computer Task Group Incorporated 2020 Equity Award Plan, 2010 Equity Award Plan and 2000 Equity Award Plan (collectively, the “Company Equity Plans”), (iii) 1,155,349 Shares were subject to issuance pursuant to Company RSUs and Company PSUs granted and outstanding under the Company Equity Plans, (iv) 443,843 Shares were reserved for future issuance under the Company Equity Plans, and (v) 118,648 Shares were reserved for future issuance under the Computer Task Group, Incorporated Amended and Restated First Employee Stock Purchase Plan (the “CTG ESPP”). Based upon the foregoing and assuming (i) no additional Shares or Company Options are issued after August 2, 2023, (ii) all Company Options are exercised in full prior to the Expiration Time, and (iii) an estimated 10,710 Shares will be issued under CTG’s Non-Employee Director Deferred Compensation Plan between August 9, 2023 and prior to the expiration of the Offer based on information from CTG, the minimum number of Shares that Merger Sub must acquire in the Offer in order to exercise the Top-Up Option and consummate the Merger under Section 905(a) of the NYBCL is 11,591,729 Shares validly tendered and not validly withdrawn prior to the expiration of the Offer.

In connection with the execution of the Merger Agreement, the Supporting Shareholders have entered into a Tender and Support Agreement, dated as of August 9, 2023, with Parent and Merger Sub (the “Support Agreement”). Subject to the terms and conditions of the Support Agreement, each of the Supporting Shareholders agrees, among other things, subject to certain exceptions, to tender his or her Shares (including any Shares acquired upon the exercise of Company Options), pursuant to the Offer, which Shares represent in the aggregate approximately 8.8% of CTG’s total outstanding Shares as of August 8, 2023, and, subject to certain exceptions, not to transfer any of the Shares that are subject to the Support Agreement.

Under the Merger Agreement, the board of directors and officers of the Surviving Corporation as of the Effective Time will be the members of the board of directors and officers, respectively, of Merger Sub as of immediately prior to the Effective Time, until their respective successors have been duly elected and qualified, or until their earlier death, resignation or removal.

This Offer to Purchase does not constitute a solicitation of proxies, and Merger Sub is not soliciting proxies in connection with the Offer or the Merger. If the Minimum Condition is satisfied but we have not acquired more than 90% of outstanding Shares, then CTG has granted Merger Sub the Top-Up Option by which Merger Sub may exercise in certain circumstances to purchase from CTG such number of authorized and unissued Shares equal to the lesser of (i) the lowest number of Shares that, when added to the number of Shares owned by Parent, Merger Sub and any of their respective subsidiaries at the time of exercise of the Top-Up Option, shall constitute one Share more than 90% of the outstanding Shares immediately after the issuance of the Top-Up Shares on a fully-diluted basis, or (ii) the aggregate number of authorized but unissued and unreserved Shares (including as authorized and unissued Shares, for purposes hereof, any Shares held in the treasury of the Company). If Merger Sub acquires at least 90% of the Shares in the Offer (including pursuant to the Top-Up Option), Merger Sub shall consummate the Merger under Section 905(a) of the NYBCL without a shareholders meeting and without action by the Company’s shareholders.

Certain U.S. federal income tax considerations of the exchange of Shares for cash pursuant to the Offer or the Merger are described in Section 5 — “Certain U.S. Federal Income Tax Considerations.”

Under the applicable provisions of the Merger Agreement, the Offer and the NYBCL, shareholders of CTG will be entitled to appraisal rights under New York law in connection with the Merger with respect to any Shares

 

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not tendered in the Offer, subject to and in accordance with the NYBCL. Shareholders must properly perfect their right to seek appraisal under New York law in connection with the Merger in order to exercise appraisal rights. See Section 17 — “Appraisal Rights.”

This Offer to Purchase and the related Letter of Transmittal contain important information that should be read carefully before any decision is made with respect to the Offer.

 

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THE TENDER OFFER

1. Terms of the Offer.

Upon the terms and subject to the conditions to the Offer (including, if the Offer is extended or amended, the terms and conditions of such extension or amendment), we will accept for payment and promptly pay for all Shares validly tendered prior to the Expiration Date and not properly withdrawn as permitted under Section 4 —“Withdrawal Rights.”

Acceptance and payment for Shares pursuant to and subject to the conditions to the Offer will occur on September 21, 2023 (the “Offer Closing”), unless we extend the Offer pursuant to the terms of the Merger Agreement. The date and time at which such Offer Closing occurs is referred to as the “Offer Acceptance Time”.

The Offer is conditioned upon, among other things, the absence of a termination of the Merger Agreement in accordance with its terms and the satisfaction of the Minimum Condition, the Regulatory Condition, the Governmental Impediment Condition and the other conditions described in Section 15 — “Conditions to the Offer.”

We have agreed in the Merger Agreement that, subject to our rights to terminate the Merger Agreement in accordance with its terms, Merger Sub must (and Parent must cause Merger Sub to) extend the Offer (i) for any period required by applicable securities law, rule or regulation, any interpretation or position of the SEC or its staff or The NASDAQ Stock Market LLC (“NASDAQ”) applicable to the Offer, (ii) for periods of up to ten (10) business days each until any waiting period (and extension thereof) applicable to consummation of the Offer under the HSR Act and any foreign antitrust or competition-related law has expired or been terminated and (iii) for additional periods of up to ten (10) business days per extension at the request of CTG if, as of the then scheduled Expiration Date, any Offer Condition has not been satisfied or waived, in order to permit the satisfaction of such Offer Condition. Additionally, Merger Sub may, in its discretion, extend the Offer on one or more occasions, if, as of the then scheduled Expiration Date, any Offer Condition has not been satisfied or waived, to the extent waivable by Merger Sub or Parent for an additional period of up to ten (10) business days per extension, in order to permit the satisfaction of such Offer Condition.

If we extend the Offer, such extension will extend the time that you will have to tender (or withdraw) your Shares. Merger Sub will not be required, or permitted without the Company’s consent, to extend the Offer beyond February 9, 2024 (which date may be extended by up to ninety days under certain circumstances, the “End Date”). Except in the case of the valid termination of the Merger Agreement, Merger Sub may not terminate the Offer, or permit the Offer to expire, prior to the Extension Deadline without the prior written consent of CTG.

Merger Sub expressly reserves the right to (i) increase the Offer Price, (ii) waive any Offer Condition, (iii) make any other changes in the terms and conditions to the Offer that are not inconsistent with the terms of the Merger Agreement and (iv) terminate the Offer if the conditions to the Offer are not satisfied and the Merger Agreement is terminated. However, without the consent of CTG, Parent and Merger Sub may not (i) decrease the Offer Price, (ii) change the form of consideration payable in the Offer, (iii) decrease the maximum number of Shares sought to be purchased in the Offer, (iv) impose conditions or requirements to the Offer in addition to the Offer Conditions, (v) amend, modify or waive the Minimum Condition, the Termination Condition, the Regulatory Condition or the Governmental Impediment Condition, (vi) otherwise amend or modify any of the other terms of the Offer in a manner that adversely affects any holder of Shares in its capacity as such, (vii) terminate the Offer or accelerate, extend or otherwise change the Expiration Date except as provided in the Merger Agreement or (viii) provide any “subsequent offering period” (or any extension thereof) within the meaning of Rule 14d-11 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Any extension, delay, termination or amendment of the Offer will be followed as promptly by a public announcement in accordance with Rules 14d-3(b)(1), 14d-4(d)(1) and 14e-1(d) under the Exchange Act. Such

 

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announcement in the case of an extension will be made no later than 9:00 A.M., Eastern Time, on the next business day after the previously scheduled Expiration Date.

If we extend the Offer, are delayed in our acceptance for payment of or payment for Shares (whether before or after our acceptance for payment for Shares) or are unable to accept Shares for payment pursuant to the Offer for any reason, then, without prejudice to our rights under the Offer and the Merger Agreement, the Depositary may retain tendered Shares on our behalf, and such Shares may not be withdrawn except to the extent that tendering shareholders are entitled to withdrawal rights as described herein under Section 4 — “Withdrawal Rights.” However, our ability to delay the payment for Shares that we have accepted for payment is limited by Rule 14e-1(c) under the Exchange Act, which requires us to pay the consideration offered or return the securities deposited by or on behalf of shareholders promptly after the termination or withdrawal of the Offer.

If we make a material change in the terms of the Offer or the information concerning the Offer or if we waive a material condition of the Offer, we will disseminate additional tender offer materials and extend the Offer if and to the extent required by Rules 14d-4(d)(1), 14d-6(c) and 14e-1 under the Exchange Act. The minimum period during which an offer must remain open following material changes in the terms of such offer or information concerning such offer, other than a change in price or a change in percentage of securities sought, will depend upon the facts and circumstances, including the relative materiality of the terms or information changes. We understand that in the SEC’s view, an offer should remain open for a minimum of five (5) business days from the date the material change is first published, sent or given to shareholders, and with respect to a change in price or a change in percentage of securities sought, a minimum ten (10) business day period generally is required to allow for adequate dissemination to shareholders and investor response.

If, on or before the Expiration Date, we increase the consideration being paid for Shares accepted for payment in the Offer, such increased consideration will be paid to all shareholders whose Shares are purchased in the Offer, whether or not such Shares were tendered before the announcement of the increase in consideration.

We expressly reserve the right, in our sole discretion, subject to the terms and conditions of the Merger Agreement and the applicable rules and regulations of the SEC, not to accept for payment any Shares if, at the Expiration Date, any of the Offer Conditions have not been satisfied. See Section 15 — “Conditions to the Offer.” Under certain circumstances, we may terminate the Merger Agreement and the Offer. See Section 11 — “The Merger Agreement; Other Agreements — Merger Agreement — Termination.”

As soon as practicable after we acquire at least 90% of the Shares in the Offer (including pursuant to the Top-Up Option), we will complete the Merger without a vote of the shareholders of CTG pursuant to Section 905(a) of the NYBCL.

CTG has provided us with its shareholder list and security position listings for the purpose of disseminating this Offer to Purchase, the related Letter of Transmittal and other related materials to holders of Shares. This Offer to Purchase and the related Letter of Transmittal will be mailed to record holders of Shares whose names appear on the shareholder list of CTG and will be furnished, for subsequent transmittal to beneficial owners of Shares, to brokers, dealers, commercial banks, trust companies and similar persons whose names, or the names of whose nominees, appear on the shareholder list or, if applicable, who are listed as participants in a clearing agency’s security position listing for subsequent transmittal to beneficial owners of Shares.

2. Acceptance for Payment and Payment for Shares.

Subject to the satisfaction or waiver of all the conditions to the Offer set forth in Section 15 — “Conditions to the Offer,” we will accept for payment and promptly pay for Shares validly tendered and not properly withdrawn pursuant to the Offer on or after the Expiration Date. Subject to compliance with Rule 14e-1(c) under the Exchange Act, we expressly reserve the right to delay payment for Shares in order to comply in whole or in part with any applicable law. See Section 16 — “Certain Legal Matters; Regulatory Approvals.”

 

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In all cases, we will pay for Shares tendered and accepted for payment pursuant to the Offer only after timely receipt by the Depositary of (i) the certificates evidencing such Shares (the “Share Certificates”) or confirmation of a book-entry transfer of such Shares (a “Book-Entry Confirmation”) into the Depositary’s account at The Depository Trust Company (“DTC”) pursuant to the procedures set forth in Section 3 — “Procedures for Accepting the Offer and Tendering Shares,” (ii) the Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, with any required signature guarantees or, in the case of a book-entry transfer, an Agent’s Message (as defined below) in lieu of the Letter of Transmittal and (iii) any other documents required by the Letter of Transmittal. Accordingly, tendering shareholders may be paid at different times depending upon when Share Certificates or Book-Entry Confirmations with respect to Shares are actually received by the Depositary.

The term “Agent’s Message” means a message, transmitted by DTC to and received by the Depositary and forming a part of a Book-Entry Confirmation, that states that DTC has received an express acknowledgment from the participant in DTC tendering the Shares that are the subject of such Book-Entry Confirmation, that such participant has received and agrees to be bound by the terms of the Letter of Transmittal and that Merger Sub may enforce such agreement against such participant.

On the terms of and subject to the Offer conditions and the Merger Agreement, Merger Sub shall, and Parent shall cause Merger Sub to, accept for payment all Shares validly tendered and not withdrawn pursuant to the Offer promptly after the Expiration Date, and to pay for such Shares promptly after the Offer Acceptance Time. For purposes of the Offer, we will be deemed to have accepted for payment, and thereby purchased, Shares validly tendered and not properly withdrawn, if and when we give oral or written notice to the Depositary of our acceptance for payment of such Shares pursuant to the Offer. Upon the terms and subject to the conditions to the Offer, payment for Shares accepted for payment pursuant to the Offer will be made by deposit of the aggregate Merger Consideration for such Shares with the Depositary, which will act as paying agent for tendering shareholders for the purpose of receiving payments from us and transmitting such payments to tendering shareholders whose Shares have been accepted for payment. If we extend the Offer, are delayed in our acceptance for payment of Shares or are unable to accept Shares for payment pursuant to the Offer for any reason, then, without prejudice to our rights under the Offer and the Merger Agreement, the Depositary may retain tendered Shares on our behalf, and such Shares may not be withdrawn except to the extent that tendering shareholders are entitled to withdrawal rights as described herein under Section 4 — “Withdrawal Rights” and as otherwise required by Rule 14e-1(c) under the Exchange Act. Under no circumstances will we pay interest on the Offer Price, regardless of any extension of the Offer or any delay in making payment for Shares.

If any tendered Shares are not accepted for payment for any reason pursuant to the terms and conditions to the Offer, or if Share Certificates are submitted evidencing more Shares than are tendered, Share Certificates evidencing unpurchased Shares will be returned, without expense to the tendering shareholder (or, in the case of Shares tendered by book-entry transfer into the Depositary’s account at DTC pursuant to the procedure set forth in Section 3 — “Procedures for Accepting the Offer and Tendering Shares,” such Shares will be credited to an account maintained at DTC), promptly following the expiration or termination of the Offer.

3. Procedures for Accepting the Offer and Tendering Shares.

Valid Tenders. In order for a shareholder to validly tender Shares pursuant to the Offer, the Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, together with any required signature guarantees (or, in the case of a book-entry transfer, an Agent’s Message in lieu of the Letter of Transmittal) and any other documents required by the Letter of Transmittal must be received by the Depositary at one of its addresses set forth on the back cover of this Offer to Purchase and either (a) the Share Certificates evidencing tendered Shares must be received by the Depositary at such address or (b) such Shares must be tendered pursuant to the procedure for book-entry transfer described below and a Book-Entry Confirmation must be received by the Depositary, in each case prior to the Expiration Date.

 

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Book-Entry Transfer. The Depositary will establish an account with respect to the Shares at DTC for purposes of the Offer after the date of this Offer to Purchase. Any financial institution that is a participant in the system of DTC may make a book-entry delivery of Shares by causing DTC to transfer such Shares into the Depositary’s account at DTC in accordance with DTC’s procedures for such transfer. However, although delivery of Shares may be effected through book-entry transfer at DTC, either the Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, together with any required signature guarantees, or an Agent’s Message in lieu of the Letter of Transmittal, and any other required documents, must, in any case, be received by the Depositary at one of its addresses set forth on the back cover of this Offer to Purchase prior to the Expiration Date. Delivery of documents to DTC does not constitute delivery to the Depositary.

Guaranteed Delivery. If you wish to tender Shares pursuant to the Offer and cannot deliver such Shares and all other required documents to the Depositary by the Expiration Date or cannot complete the procedure for delivery by book-entry transfer on a timely basis, you may nevertheless tender such Shares if all of the following conditions are met:

 

   

such tender is made by or through an Eligible Institution (as defined below);

 

   

a properly completed and duly executed Notice of Guaranteed Delivery in the form provided by us with this Offer to Purchase is received by the Depositary (as provided below) by the Expiration Date; and

 

   

the certificates for all such validly tendered Shares (or a confirmation of a book-entry transfer of such Shares into the Depositary’s account at the Book-Entry Transfer Facility), together with a properly completed and duly executed Letter of Transmittal together with any required signature guarantee (or an Agent’s Message) and any other required documents, are received by the Depositary within two (2) NASDAQ trading days after the date of execution of the Notice of Guaranteed Delivery.

The Notice of Guaranteed Delivery may be transmitted by overnight courier or mail to the Depositary and must include a guarantee by an Eligible Institution (as defined below) in the form set forth in such Notice. Shares tendered by a Notice of Guaranteed Delivery will not be deemed validly tendered for purposes of satisfying the Minimum Condition unless and until Shares underlying such Notice of Guaranteed Delivery are delivered to the Depositary prior to the Expiration Date.

Guarantee of Signatures. No signature guarantee is required on the Letter of Transmittal if (i) the Letter of Transmittal is signed by the registered holder(s) (which term, for purposes of this Section 3, includes any participant in DTC’s systems whose name appears on a security position listing as the owner of the Shares) of the Shares tendered therewith, unless such registered holder has completed either the box entitled “Special Payment Instructions” or the box entitled “Special Delivery Instructions” on the Letter of Transmittal or (ii) the Shares are tendered for the account of a financial institution (including most commercial banks, savings and loan associations and brokerage houses) that is a member in good standing of the Securities Transfer Agents Medallion Program or any other “eligible guarantor institution” as such term is defined in Rule 17Ad-15 of the Exchange Act (each, an “Eligible Institution” and, collectively, “Eligible Institutions”). In all other cases, all signatures on a Letter of Transmittal must be guaranteed by an Eligible Institution. See Instruction 1 of the Letter of Transmittal. If a Share Certificate is registered in the name of a person or persons other than the signer of the Letter of Transmittal, or if payment is to be made or delivered to, or a Share Certificate not accepted for payment or not tendered is to be issued in, the name of a person other than the registered holder, then the Share Certificate must be endorsed or accompanied by duly executed stock powers, in either case signed exactly as the name of the registered holder appears on the Share Certificate, with the signature on such Share Certificate or stock powers guaranteed by an Eligible Institution as provided in the Letter of Transmittal. See Instructions 1 and 5 of the Letter of Transmittal.

Notwithstanding any other provision of this Offer, payment for Shares accepted pursuant to the Offer will in all cases only be made after timely receipt by the Depositary of (i) Share Certificates evidencing such Shares or a

 

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Book-Entry Confirmation of a book-entry transfer of such Shares into the Depositary’s account at DTC pursuant to the procedures set forth in this Section 3, (ii) the Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, with any required signature guarantees or, in the case of a book-entry transfer, an Agent’s Message in lieu of the Letter of Transmittal and (iii) any other documents required by the Letter of Transmittal. Accordingly, tendering shareholders may be paid at different times depending upon when Share Certificates or Book-Entry Confirmations with respect to Shares are actually received by the Depositary.

The method of delivery of Share Certificates, the Letter of Transmittal and all other required documents, including delivery through DTC, is at the option and risk of the tendering shareholder, and the delivery of all such documents will be deemed made (and the risk of loss and the title of Share Certificates will pass) only when actually received by the Depositary (including, in the case of a book-entry transfer, receipt of a Book-Entry Confirmation). If delivery is by mail, registered mail with return receipt requested, properly insured, is recommended. In all cases, sufficient time should be allowed to ensure timely delivery prior to the Expiration Date.

Irregularities. The tender of Shares pursuant to any one of the procedures described above will constitute the tendering shareholder’s acceptance of the Offer, as well as the tendering shareholder’s representation and warranty that such shareholder has the full power and authority to tender and assign the Shares tendered, as specified in the Letter of Transmittal. Our acceptance for payment of Shares tendered pursuant to the Offer will constitute a binding agreement between the tendering shareholder and us upon the terms and subject to the conditions to the Offer (and if the Offer is extended or amended, the terms of or the conditions to any such extension or amendment).

Determination of Validity. All questions as to the validity, form, eligibility (including time of receipt) and acceptance for payment of any tender of Shares will be determined by us, in our sole discretion. We reserve the absolute right to reject any and all tenders determined by us not to be in proper form or the acceptance for payment of which may, in the opinion of our counsel, be unlawful. We also reserve the absolute right to waive any defect or irregularity in the tender of any Shares of any particular shareholder, whether or not similar defects or irregularities are waived in the case of other shareholders. No tender of Shares will be deemed to have been validly made until all defects and irregularities have been waived or cured within such time as Merger Sub shall determine. None of Parent, Merger Sub, the Depositary, the Information Agent or any other person will be under any duty to give notice of any defects or irregularities in tenders or incur any liability for failure to give any such notice. Interpretation of the terms and conditions to the Offer (including the Letter of Transmittal and the instructions thereto) will be determined by us in our sole discretion.

Appointment. By executing the Letter of Transmittal as set forth above, the tendering shareholder will irrevocably appoint designees of Merger Sub as such shareholder’s attorneys-in-fact and proxies in the manner set forth in the Letter of Transmittal, each with full power of substitution, to the full extent of such shareholder’s rights with respect to the Shares tendered by such shareholder and accepted for payment by Merger Sub and with respect to any and all other Shares or other securities or rights issued or issuable in respect of such Shares. All such powers of attorney and proxies will be considered irrevocable and coupled with an interest in the tendered Shares. Such appointment will be effective when, and only to the extent that, we accept for payment Shares tendered by such shareholder as provided herein. Upon such appointment, all prior powers of attorney, proxies and consents given by such shareholder with respect to such Shares or other securities or rights will, without further action, be revoked and no subsequent powers of attorney, proxies, consents or revocations may be given by such shareholder (and, if given, will not be deemed effective). The designees of Merger Sub will thereby be empowered to exercise all voting and other rights with respect to such Shares and other securities or rights, including, without limitation, in respect of any annual, special or adjourned meeting of the Company’s shareholders, actions by written consent in lieu of any such meeting or otherwise, as they in their sole discretion deem proper. We reserve the right to require that, in order for Shares to be deemed validly tendered, immediately upon our acceptance for payment of such Shares, Merger Sub or its designees must be able to exercise full voting, consent and other rights with respect to such Shares and other related securities or rights, including voting at any meeting of the Company’s shareholders.

 

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Information Reporting and Backup Withholding. Payments made to a shareholder upon such shareholder’s exchange of Shares pursuant to the Offer or the Merger may be subject to information reporting, and the Merger Consideration paid to a holder of Shares may be subject to backup withholding (currently at the rate of 24%).

A U.S. Holder (as defined below in Section 5 — “U.S. Federal Income Tax Considerations”) will not be subject to backup withholding if the U.S. Holder (A) furnishes a correct TIN and complies with certain certification procedures (generally, by providing a properly completed and executed a U.S. Internal Revenue Service (“IRS”) Form W-9, which will be included with the applicable Letter(s) of Transmittal to be returned to the Depositary); or (B) otherwise establishes to the satisfaction of the Depositary that such U.S. Holder is exempt from backup withholding tax.

A non-U.S. Holder (as defined below in Section 5 — “U.S. Federal Income Tax Considerations”) will generally not be subject to backup withholding if the non-U.S. Holder certifies to the applicable withholding agent its exempt status by providing a properly executed IRS Form W-8 BEN-E or W-8 BEN (or other applicable IRS Form W-8) or otherwise establishes an exemption. Non-U.S. Holders should consult their own tax advisors to determine which Form W-8 is appropriate.

Backup withholding is not an additional tax, and any amounts withheld under the backup withholding rules from a payment to a shareholder generally will be allowed as a refund or credit against such holder’s U.S. federal income tax liability, provided that such shareholder timely and properly furnishes the required information to the IRS.

4. Withdrawal Rights.

Shares tendered pursuant to the Offer may be withdrawn at any time prior to the end of the day, one minute after 11:59 P.M., Eastern Time, on the Expiration Date and, unless theretofore accepted for payment by Merger Sub pursuant to the Offer, may also be withdrawn at any time after October 23, 2023, which is the first business day following the 60th day after the date of the commencement of the Offer.

For a withdrawal to be effective, a written notice of withdrawal must be timely received by the Depositary at one of its addresses set forth on the back cover page of this Offer to Purchase. Any such notice of withdrawal must specify the name of the person who tendered the Shares to be withdrawn, the number of Shares to be withdrawn and the name of the registered holder of such Shares, if different from that of the person who tendered such Shares. If Share Certificates evidencing Shares to be withdrawn have been delivered or otherwise identified to the Depositary, then, prior to the physical release of such Share Certificates, the serial numbers shown on such Share Certificates must be submitted to the Depositary and the signature(s) on the notice of withdrawal must be guaranteed by an Eligible Institution, unless such Shares have been tendered for the account of an Eligible Institution. If Shares have been tendered pursuant to the procedure for book-entry transfer as set forth in Section 3 — “Procedures for Accepting the Offer and Tendering Shares,” any notice of withdrawal must also specify the name and number of the account at DTC to be credited with the withdrawn Shares.

Withdrawals of Shares may not be rescinded. Any Shares properly withdrawn will thereafter be deemed not to have been validly tendered for purposes of the Offer. However, withdrawn Shares may be re-tendered by again following one of the procedures described in Section 3 — “Procedures for Accepting the Offer and Tendering Shares” at any time prior to the Expiration Date.

We will determine, in our sole discretion, all questions as to the form and validity (including time of receipt) of any notice of withdrawal and our determination will be final and binding, subject to the rights of the tendering holders of Shares to challenge our determination in a court of competent jurisdiction.

5. Certain U.S. Federal Income Tax Considerations.

The following is a summary of certain U.S. federal income tax considerations relating to the Offer and the Merger that may be relevant to shareholders whose Shares are exchanged for cash in the Offer or the Merger.

 

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This summary is for general information only and is not tax advice. This summary is based on the U.S. Internal Revenue Code of 1986, as amended (the “Code”), U.S. Treasury regulations promulgated or proposed thereunder and administrative and judicial interpretations thereof, all as in effect on the date hereof, and all of which are subject to differing interpretation and to change, possibly with retroactive effect. This summary assumes that a Holder (as defined below) holds its Shares as capital assets within the meaning of Section 1221 of the Code (generally, property held for investment). This summary does not address all of the U.S. federal income tax considerations that may be relevant to specific Holders in light of their particular circumstances or to Holders subject to special treatment under U.S. federal income tax law (such as banks or other financial institutions, insurance companies, dealers in securities or other Holders that generally mark their securities to market for U.S. federal income tax purposes, tax-exempt entities (including private foundations), retirement plans, regulated investment companies, real estate investment trusts, subchapter S corporations, partnerships or other pass-through entities for U.S. federal income tax purposes and persons who hold Shares through such partnerships or other pass-through entities, controlled foreign corporations, passive foreign investment companies, certain former citizens or residents of the United States, Holders that hold Shares as part of a hedge, straddle, constructive sale, conversion or other integrated transaction, persons that own (or are deemed to own) 5% or more of the outstanding Shares, Holders of Shares that exercise appraisal rights, U.S. Holders that have a “functional currency” other than the U.S. dollar or persons who acquired their Shares pursuant to or in connection with options or other compensation arrangements). This summary does not address any U.S. state or local or non-U.S. tax considerations or any U.S. federal estate, gift or alternative minimum tax considerations or any tax consequences arising under the Medicare contribution tax on net investment income.

As used in this summary, the term “U.S. Holder” means a beneficial owner of Shares that, for U.S. federal income tax purposes, is (i) a citizen or individual resident of the United States, (ii) a corporation created or organized in or under the laws of the United States, any state thereof or the District of Columbia, (iii) an estate the income of which is subject to U.S. federal income tax regardless of its source or (iv) a trust (x) with respect to which a court within the United States is able to exercise primary supervision over its administration and one or more U.S. persons have the authority to control all of its substantial decisions or (y) that has in effect a valid election under applicable U.S. Treasury regulations to be treated as a U.S. person.

As used in this summary, the term “Non-U.S. Holder” means a beneficial owner of Shares that is neither a U.S. Holder nor a partnership for U.S. federal income tax purposes, and the term “Holder” means a U.S. Holder or a Non-U.S. Holder.

If an entity treated as a partnership for U.S. federal income tax purposes holds Shares, the U.S. federal income tax considerations relating to the Offer and Merger generally will depend upon the status and activities of such entity and the particular partner. Any such entity should consult their own tax advisors regarding the U.S. federal income tax considerations applicable to it and its partners relating to the Offer and Merger.

No ruling has been or will be sought from the IRS with respect to any of the U.S. federal income tax considerations discussed below, and no assurance can be given that the IRS will not take a position contrary to the discussion below, or that a court will not sustain any challenge by the IRS in the event of litigation.

U.S. Holders

Receipt of Cash. The receipt of cash by a U.S. Holder in exchange for Shares pursuant to the Offer or the Merger will be a taxable transaction for U.S. federal income tax purposes. For U.S. federal income tax purposes, the sale of Shares will generally give rise to capital gain or loss in an amount equal to the difference between the Offer Price and the holder’s adjusted tax basis in the Shares sold. If the Shares have a holding period of more than one year as of the date of the sale, such gain or loss generally will be long-term capital gain or loss. Long-term capital gains of certain non-corporate U.S. Holders, including individuals, are generally subject to U.S. federal income tax at preferential rates. If the Shares have a holding period of one year or less, the gain or loss will be short-term capital gain or loss taxable at ordinary income rates. The amount and character of gain or

 

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loss with respect to the Shares must be calculated separately for different blocks of Shares sold pursuant to the Offer. The deductibility of capital losses is subject to limitations.

Non-U.S. Holders

Any gain realized by a Non-U.S. Holder upon the tender of Shares pursuant to the Offer or the exchange of Shares pursuant to the Merger, as the case may be, generally will not be subject to U.S. federal income tax unless:

 

   

the gain is effectively connected with a U.S. trade or business of such Non-U.S. Holder (and, if an applicable treaty so provides, is also attributable to a permanent establishment maintained by such Non-U.S. Holder in the United States), in which case the Non-U.S. Holder generally will be taxed in the same manner as a U.S. Holder (as described above under “U.S. Holders”), except that if the Non-U.S. Holder is a foreign corporation, an additional branch profits tax may apply at a rate of 30% (or a lower applicable treaty rate); or

 

   

the Non-U.S. Holder is a nonresident alien individual who is present in the United States for 183 days or more in the taxable year of the closing of the Offer or the Effective Time of the Merger, as the case may be, and certain other conditions are met, in which case the Non-U.S. Holder may be subject to a 30% U.S. federal income tax (or a tax at a reduced rate under an applicable income tax treaty) on such gain (net of certain U.S. source losses).

FATCA. In certain circumstances, the Foreign Account Tax Compliance Act provisions of the Code, related U.S. Treasury guidance and related intergovernmental agreements (“FATCA”) imposes a withholding tax of 30% on certain U.S.-source interest and other income unless certain non-U.S. financial institutions (including investment funds) (i) enter into, and comply with, an agreement with the IRS to perform certain due diligence on account holders, and report to the U.S. authorities, on an annual basis, information with respect to interests in, and accounts maintained by, the institution that are owned by certain U.S. persons or by certain non-U.S. entities that are wholly or partially owned by U.S. persons, or (ii) utilize an intergovernmental agreement (if available) between the United States and an applicable foreign country, to perform modified due diligence on account holders and report certain account holder information either directly to the U.S. authorities or to its local tax authority, which will exchange such information with the U.S. authorities. Accordingly, the entity through which Shares are held will affect the determination of whether Merger Sub or another applicable withholding agent will be required to withhold tax at a rate of 30% on any portion of payments made pursuant to the Offer or the Merger that are treated as imputed interest. Such withholding tax will generally be in lieu of, rather than in addition to, the 30% withholding tax described in the preceding paragraph. Similarly, certain U.S. source interest and other income payable held by an investor that is a non-financial non-U.S. entity that does not qualify under certain exemptions generally will be subject to withholding at a rate of 30%, unless such entity either (i) certifies that such entity does not have any “substantial United States owners” or (ii) provides certain information regarding the entity’s “substantial United States owners,” which Merger Sub generally will be required to provide to the IRS. A Non-U.S. Holder may be able to claim a credit or refund of the amount withheld under certain circumstances. Each Non-U.S. Holder should consult its own tax advisor regarding the application of FATCA to the receipt of payments pursuant to the Offer or the Merger.

Information Reporting and Backup Withholding.

Information reporting generally will apply to payments to a Holder pursuant to the Offer or the Merger, unless such Holder is an entity that is exempt from information reporting and, when required, properly demonstrates its eligibility for exemption. Any payment to a U.S. Holder that is subject to information reporting generally will also be subject to backup withholding, unless such U.S. Holder provides the appropriate documentation (generally, IRS Form W-9) to the applicable withholding agent certifying that, among other things, its taxpayer identification number is correct, or otherwise establishes an exemption.

 

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The information reporting and backup withholding rules that apply to payments to a Holder pursuant to the Offer and Merger generally will not apply to payments to a Non-U.S. Holder if such Non-U.S. Holder certifies under penalties of perjury that it is not a U.S. person (generally by providing an IRS Form W-8BEN or W-8BEN-E or other applicable IRS Form W-8) or otherwise establishes an exemption. Non-U.S. Holders should consult their own tax advisors to determine which Form W-8 is appropriate.

Certain shareholders (including corporations) generally are not subject to backup withholding. Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules generally will be allowed as a refund or a credit against a U.S. Holder’s U.S. federal income tax liability if the required information is properly and timely furnished by such U.S. Holder to the IRS.

THE FOREGOING SUMMARY DOES NOT PURPORT TO BE A COMPLETE DISCUSSION OF THE POTENTIAL TAX CONSEQUENCES OF THE OFFER OR THE MERGER. EACH HOLDER SHOULD CONSULT ITS OWN TAX ADVISOR REGARDING THE U.S. FEDERAL, STATE AND LOCAL AND NON-U.S. INCOME, ESTATE AND OTHER TAX CONSIDERATIONS RELATING TO THE OFFER AND MERGER IN LIGHT OF ITS PARTICULAR CIRCUMSTANCES. NOTHING IN THIS SUMMARY IS INTENDED TO BE, OR SHOULD BE CONSTRUED AS, TAX ADVICE.

6. Price Range of Shares; Dividends.

The Shares currently trade on NASDAQ under the symbol “CTG.” CTG has advised Parent that, as of August 2, 2023, (i) 16,044,813.5554 Shares were issued and outstanding, (ii) 1,332,068 Shares were subject to issuance pursuant to all Company Options granted and outstanding under the Company Equity Plans, (iii) 1,155,349 Shares were subject to issuance pursuant to Company RSUs and Company PSUs granted and outstanding under the Company Equity Plans, (iv) 443,843 Shares were reserved for future issuance under the Company Equity Plans, (v) 118,648 Shares were reserved for future issuance under the CTG ESPP. Based upon the foregoing and assuming (i) no additional Shares or Company Options are issued after August 2, 2023, (ii) all Company Options are exercised in full prior to the Expiration Time, and (iii) an estimated 10,710 Shares will be issued under CTG’s Non-Employee Director Deferred Compensation Plan between August 9, 2023 and prior to the expiration of the Offer based on information from CTG, the minimum number of Shares that Merger Sub must acquire in the Offer in order to exercise the Top-Up Option and consummate the Merger under Section 905(a) of the NYBCL is 11,591,729 Shares validly tendered and not validly withdrawn prior to the expiration of the Offer.

The following table sets forth, for the periods indicated, the high and low closing prices per Share for each quarterly period, as reported on NASDAQ. CTG did not declare any cash dividends on its Shares in 2021, 2022 or 2023.

 

     High      Low  

Year Ended December 31, 2021

     

First Quarter

   $ 9.90      $ 6.34  

Second Quarter

     11.57        9.46  

Third Quarter

     9.65        7.86  

Fourth Quarter

     9.97        7.73  

Year Ended December 31, 2022

     

First Quarter

   $ 9.92      $ 8.20  

Second Quarter

     10.05        8.35  

Third Quarter

     8.84        6.54  

Fourth Quarter

     8.05        6.76  

Year Ended December 31, 2023

     

First Quarter

   $ 7.89        6.90  

Second Quarter

     7.63        6.21  

Third Quarter (through August 22, 2023)

     10.25        7.35  

 

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On August 8, 2023, the trading day before the public announcement of the execution of the Merger Agreement, the reported closing sales price of the Shares on NASDAQ was $8.00. On August 22, 2023, the last full trading day before the commencement of the offer, the reported closing sales price of the Shares on NASDAQ was $10.25. The Offer Price represents an approximately 31.25% premium over the closing price of the Shares on August 8, 2023, the last full trading day before the announcement of the Merger Agreement, and a 44.8% premium to the trailing 90-day volume weighted average stock price as of August 7, 2023.

The Merger Agreement provides that from the date of the Merger Agreement to the Effective Time, without the prior written consent of Parent, CTG will not declare, set aside, make or pay any dividend or distribution (whether in cash, stock or property) on any shares of any securities of CTG or certain of its subsidiaries specified in the Merger Agreement (CTG and each such subsidiary, an “Acquired Company” and collectively, the “Acquired Companies”) (including the Shares) or set a record date therefor.

7. Certain Information Concerning CTG.

Except as specifically set forth herein, the information concerning CTG contained in this Offer to Purchase has been taken from or is based upon information furnished by CTG or its representatives or upon publicly available documents and records on file with the SEC and other public sources. The summary information set forth below is qualified in its entirety by reference to CTG’s public filings with the SEC (which may be obtained and inspected as described below) and should be considered in conjunction with the more comprehensive financial and other information in such reports and other publicly available information.

The following description of CTG and its business has been taken from CTG’s annual report on Form 10-K filed with the SEC for the fiscal year ended December 31, 2022, and is qualified in its entirety by reference to such Form 10-K.

CTG was incorporated in Buffalo, New York on March 11, 1966. CTG’s common stock trades on the Nasdaq Global Select Market under the symbol “CTG”. CTG’s headquarters are located at 300 Corporate Parkway, Suite 214N, Amherst, New York 14226, and its telephone number is (716) 882-8000. CTG’s internet address is www.ctg.com.

CTG is a leading provider of IT solutions and related services to its clients. These services include information and technology-related solutions, including staffing as a solution. With solution services, the Company generally takes responsibility for the deliverables and some level of project and staff management, and services may include high-end advisory or business-related consulting. When providing staffing services, including managed staffing, staff augmentation, and volume staffing, personnel are provided to clients, who then, in turn, take their direction from the clients’ managers.

Available Information. The Shares are registered under the Exchange Act. Accordingly, CTG is subject to the information reporting requirements of the Exchange Act and, in accordance therewith, is required to file periodic reports, proxy statements and other information with the SEC relating to its business, financial condition and other matters. Information as of particular dates concerning CTG’s directors and officers, their remuneration, stock options granted to them, the principal holders of CTG’s securities, any material interests of such persons in transactions with CTG and other matters is required to be disclosed in proxy statements, the most recent one having been filed with the SEC on August 17, 2022. Such reports, proxy statements and other information are available for inspection at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. Copies of such information may be obtainable by mail, upon payment of the SEC’s customary charges, by writing to the SEC at the address above. The SEC also maintains a website on the Internet at www.sec.gov that contains reports, proxy statements and other information regarding registrants, including CTG, that file electronically with the SEC.

 

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8. Certain Information Concerning Parent and Merger Sub.

Parent is a limited liability company formed in 1992 in Belgium. Parent’s principal executive offices are located at Corda 3 Kempische Steenweg 307, 3500 Hasselt, Belgium. The telephone number of Parent is +32 11 24 02 34.

Parent is a leading IT solutions provider which offers integrated end-to-end solutions in the fields of Data, Applications, and Infrastructure to over 2,500 customers. A family-owned company since its inception, Parent has over 6,000 employees with locations in Belgium, Luxembourg, the Netherlands, Germany, Austria, Romania, Moldova, Italy, the Czech Republic, Slovakia, Sweden, the United States, and Greece, and had a consolidated turnover of €871 million in 2022.

Merger Sub is a New York corporation formed on August 3, 2023, solely for the purpose of effecting the Offer and the Merger and has conducted no business activities other than those related to the structuring and negotiation of the Offer and the Merger. Merger Sub has no assets or liabilities other than the contractual rights and obligations related to the Merger Agreement. Upon the completion of the Merger, Merger Sub’s separate corporate existence will cease and CTG will continue as the Surviving Corporation. Until immediately prior to the time Merger Sub purchases Shares pursuant to the Offer, it is not anticipated that Merger Sub will have any assets or liabilities or engage in activities other than those incidental to its formation and capitalization and the transactions contemplated by the Offer and the Merger. Merger Sub is a wholly owned subsidiary of Parent. Merger Sub’s principal executive offices are located at Corda 3 Kempische Steenweg 307, 3500 Hasselt, Belgium. The telephone number of Merger Sub is +32 11 24 02 34.

The name, citizenship, business address, present principal occupation or employment and five-year employment history of each of the directors and executive officers of Parent and Merger Sub are listed in Schedule I to this Offer to Purchase.

During the last five (5) years, none of Parent or Merger Sub or, to the best knowledge of Parent and Merger Sub, any of the persons listed in Schedule I to this Offer to Purchase (i) has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) was a party to any judicial or administrative proceeding (except for matters that were dismissed without sanction or settlement) that resulted in a judgment, decree or final order enjoining such person from future violations of, or prohibiting activities subject to, federal or state securities laws, or a finding of any violation of such laws.

Except as provided in the Merger Agreement, the Support Agreement or as otherwise described in this Offer to Purchase, (i) none of Parent or Merger Sub or, to the best knowledge of Parent and Merger Sub, any of the persons listed in Schedule I to this Offer to Purchase or any associate or majority-owned subsidiary of Parent or Merger Sub, or any of the persons so listed beneficially owns or has any right to acquire, directly or indirectly, any Shares and (ii) none of Parent or Merger Sub or, to the best knowledge of Parent Merger Sub, any of the persons or entities referred to in Schedule I hereto nor any director, executive officer or subsidiary of any of the foregoing has effected any transaction in respect of any Shares during the past 60 days. Except as provided in the Merger Agreement, the Support Agreement or as otherwise described in this Offer to Purchase, none of Parent or Merger Sub or, to the best knowledge of Parent and Merger Sub, any of the persons listed in Schedule I to this Offer to Purchase, has any contract, arrangement, understanding or relationship with any other person with respect to any securities of CTG (including, but not limited to, any contract, arrangement, understanding or relationship concerning the transfer or the voting of any such securities, joint ventures, loan or option arrangements, puts or calls, guaranties of loans, guaranties against loss, or the giving or withholding of proxies, consents or authorizations).

Except as set forth in this Offer to Purchase, none of Parent or Merger Sub or, to the best knowledge of Parent and Merger Sub, any of the persons listed in Schedule I hereto, has had any business relationship or transaction with CTG or any of its executive officers, directors or affiliates that is required to be reported under

 

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the rules and regulations of the SEC applicable to the Offer. Except as set forth in this Offer to Purchase, there have been no contacts, negotiations or transactions between Parent or Merger Sub or any of their subsidiaries, or, to the best knowledge of Parent and Merger Sub, any of the persons listed in Schedule I to this Offer to Purchase, on the one hand, and CTG or its affiliates, on the other hand, concerning a merger, consolidation or acquisition, tender offer or other acquisition of securities, an election of directors or a sale or other transfer of a material amount of assets during the past two (2) years.

Available Information. Pursuant to Rule 14d-3 under the Exchange Act, we have filed with the SEC a Tender Offer Statement on Schedule TO (the “Schedule TO”), of which this Offer to Purchase forms a part, and exhibits to the Schedule TO. The Schedule TO and the exhibits thereto, as well as other information filed by Parent and Merger Sub with the SEC, are available at the SEC’s website on the Internet at www.sec.gov that contains the Schedule TO and the exhibits thereto and other information that Merger Sub has filed electronically with the SEC.

9. Source and Amount of Funds.

Parent estimates that it will need approximately $180,000,000 to purchase all of the Shares pursuant to the Offer, make payments in respect of outstanding In the Money Options, Company RSUs and Company PSUs, repay existing indebtedness of CTG, pay the Merger Consideration and consummate the Merger and pay related fees and expenses. Parent will provide Merger Sub with sufficient funds to purchase all Shares properly tendered in the Offer and to provide funding for the Merger Consideration and the other payments contemplated by the Merger Agreement, all in accordance with the terms and conditions of the Merger Agreement. The Offer is not conditioned upon Parent’s or Merger Sub’s ability to finance the purchase of Shares pursuant to the Offer or the Merger.

Parent expects to obtain the necessary funds for the acquisition of Shares in the Offer, the Merger Consideration and the other payments contemplated by the Merger Agreement through (i) its cash on hand, (ii) borrowings under the credit facilities to be provided pursuant to the Debt Commitment Letter and described below or (iii) a combination of the foregoing. To the extent borrowings are made by Parent to fund Merger Sub’s purchase of Shares, such funds will be provided to Merger Sub through intercompany borrowings. Aside from its existing credit facilities, Parent does not have any other alternative financing plans or arrangements.

Debt Financing

Parent has received a Commitment Letter dated August 8, 2023 (the “Debt Commitment Letter”), pursuant to which KBC Bank NV, Belfius Bank SA/NV and ING Belgium SA/NV (together, the “Commitment Parties”) have committed to provide, subject to the terms and conditions of the Debt Commitment Letter, to Parent senior secured credit facilities in the aggregate amount of up to €135 million plus $35 million. The proceeds of the new credit facilities, in addition to a portion of Parent’s existing cash on hand, would be used to pay the Merger Consideration, refinance the Company’s existing indebtedness and pay any fees and expenses in connection with any of the foregoing (such committed debt financing, collectively, the “Debt Financing”). The Debt Financing is expected to consist of a €100 million acquisition bridge facility, a €35 million acquisition term loan facility and a $35 million acquisition term loan facility.

It is anticipated that the acquisition bridge facility will mature on the date which is three months after the signing of the new credit facilities, subject to a three month extension option, and the acquisition term loan facilities will mature on the fifth anniversary of the signing of the Parent’s existing credit facility, or July 19, 2027. The acquisition bridge facility will have to be repaid in full on the termination date in respect of the acquisition bridge facility as set forth in the Debt Commitment Letter. The acquisition term facilities will call for amortization payments as set forth in the Debt Commitment Letter.

The applicable interest rate on the acquisition bridge facility is anticipated to be based on EURIBOR and a margin of 1.55% per annum (from the signing date of the new credit facilities to the date falling 3 months after

 

26


that signing date) and 2.05% per annum (subject to the extension option being exercised, from the date falling 3 months after the signing date of the new credit facilities to (but excluding) the termination date in respect of the acquisition bridge facility). The applicable interest rate in respect of the EUR acquisition term facility is anticipated to be based on the Parent’s existing credit facilities with rates based on EURIBOR and a margin ranging between 0.85 % and 1.60 % per annum (depending on the applicable leverage ratio and where such margin shall be increased with 0.40 % per annum in case of, and during, a permitted overleveraged period). The applicable interest rate in respect of the USD acquisition term facility is anticipated to be based on Term SOFR, the Bloomberg Credit Adjustment Spread (being 0.11448% p.a. (for interest periods of one month), 0.26161 % p.a. (for interest periods of three months) and 0.42826% p.a. (for interest periods of six months) and a margin ranging between 0.85 % and 1.60 % per annum ( in, each case, increased with 25bps and depending on the applicable leverage ratio and where such margin shall be increased with 0.40% per annum in case of, and during, a permitted overleveraged period).

It is anticipated that voluntary prepayments of the new credit facilities will be permitted at any time without premium or penalty (but subject to breakage costs if the prepayment does not occur at the end of an interest period) in the minimum amounts equal to €5 million or $5 million, as applicable. It is further anticipated that the acquisition bridge facility will be subject to mandatory prepayment with net cash proceeds from a disposal by a subsidiary of the Cegeka Holding NV as further described in the Debt Commitment Letter.

The obligations under the new credit facilities are or will be secured by (i) the Shares held by Parent or Merger Sub on the Closing Date and (ii) shares issued by any subsidiaries of CTG in the United States, England, Luxembourg, Belgium and France, as well as substantially all of the assets of CTG and such subsidiaries (subject to customary exceptions consistent with the Parent’s existing credit facilities). Parent will also guarantee the acquisition bridge facility.

The documentation governing the new credit facilities has not been finalized. Accordingly, the terms thereof are subject to change.

The funding of the Debt Financing, is subject to the following conditions:

 

   

execution and delivery of definitive financing documentation for the Debt Financing by Parent and each of the other parties party thereto;

 

   

the Merger shall have been consummated or will be consummated substantially concurrently with the funding of the Debt Financing, on substantially the terms set forth in the Merger Agreement (subject to certain potential modifications deemed not materially adverse to the interests of the lenders as set forth in the Debt Commitment Letter or approved by the Commitment Parties or any changes required by the SEC or in connection with increasing the time the Tender Offer shall remain outstanding);

 

   

the material accuracy of certain specified representations to the extent required by the limited conditionality provisions set forth in the Debt Commitment Letter (or if qualified by materiality or material adverse effect, the accuracy thereof);

 

   

the provision of applicable documentation under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the Patriot Act and completion of all required “know your customer” or similar identification procedures in respect of the borrowers;

 

   

the payment, or arrangement for such payment substantially contemporaneously with the initial funding of the Debt Financing, of all fees and expenses required to be paid to by the Parent;

 

   

all documents and instruments required to create and (if required by the relevant security agreement) perfect the security agent’s security interest required to be provided on the Closing Date (as described in the Debt Commitment Letter) shall have been executed and delivered to the facility agent and, if applicable, be in proper form for filing;

 

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a Material Adverse Effect (as defined in the Merger Agreement) has not occurred since the date of the Merger Agreement; and

 

   

the refinancing of the Company’s existing debt associated with the Transactions shall have been consummated or will be consummated substantially concurrently with the closing of the Debt Financing.

The foregoing summary of certain provisions of the Debt Commitment Letter is qualified by reference to the Debt Commitment Letter itself, which is incorporated herein by reference. We have filed a copy of the Debt Commitment Letter as Exhibit (b)(1) to the Schedule TO.

10. Background of the Offer; Past Contacts or Negotiations with CTG.

The information set forth below regarding CTG not involving Parent or Merger Sub was provided by CTG, and none of Parent, Merger Sub or any of their affiliates or representatives takes any responsibility for the accuracy or completeness of any information regarding meetings or discussions in which none of Merger Sub, Parent or any of their affiliates or representatives participated.

Background of the Offer and the Merger

The following is a description of material contacts between representatives of Parent, Merger Sub and representatives of CTG that resulted in the execution of the Merger Agreement. For a review of CTG’s additional activities, please refer to CTG’s Schedule 14D-9 that will be filed with the SEC and mailed to all CTG shareholders.

The board of directors of Parent (the “Parent Board”), together with Parent’s senior management, regularly evaluates and considers strategic opportunities, including investments in and acquisitions of third party companies and technologies, and other business initiatives intended to create or enhance shareholder value. These reviews included, at times, consideration of a potential strategic transaction with CTG.

On March 3, 2022, Parent’s CEO, Stijn Bijnens, reached out to CTG’s CEO, Filip Gydé, to request an introductory call.

On March 15, 2022, Mr. Bijnens and Mr. Gydé held an introductory call via video conference.

On September 20, 2022, Mr. Bijnens and Parent’s Chairman André Knaepen had lunch with Mr. Gydé during which Mr. Knaepen informed Mr. Gydé that Parent may have an interest in a strategic transaction with CTG.

On October 7, 2022, Mr. Bijnens emailed Mr. Gydé a non-binding proposal to acquire CTG at a price range of $9.00 to $9.40 per Share, subject to customary conditions.

On November 4, 2022, Parent and CTG entered into a confidentiality agreement in customary form for a public company.

On November 22, 2022, Messrs. Bijnens, Knaepen, Stephan Daems (Parent’s CFO), Pieter Verstraeten (Parent’s Chief Strategy Officer) and Rickert Iwema (then Parent’s Head of M&A) met via video conference with Messrs. Gydé and Laubacker for an information strategy to discuss CTG’s business and strategy.

On December 22, 2022, Messrs. Bijnens and Knaepen had dinner with Mr. Gydé and provided an update on the status of their diligence.

 

 

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On December 30, 2022, CTG’s stock price closed at $7.56 per Share, reflecting the headwinds experienced in implementing CTG’s digital transformation strategy as a stand-alone company in 2022.

On February 6, 2023, representatives of CTG’s investment banker, Raymond James & Associates, Inc. (“Raymond James”) had an introductory call with representatives of Stifel Financial Corp. (“Stifel”), Parent’s investment banker, who reiterated Parent’s interest in pursuing a transaction. Representatives of Raymond James relayed the CTG Board’s message that Parent’s current offer price was inadequate.

On March 10, 2023, Jay Helvey, Chair of the CTG Board, and Mr. Gydé had lunch with Mr. Knaepen and certain of his colleagues in Brussels, Belgium. On March 16, 2023, Mr. Helvey spoke by telephone with Mr. Knaepen to discuss Parent’s interest in CTG, and Mr. Knaepen offered to increase the proposed purchase price to $10.50 per Share, subject to further diligence. CTG’s stock price closed that day at $7.65 per Share.

On March 19, 2023, the Parent Board unanimously authorized and approved the negotiation, execution, delivery and performance of the Transactions and authorized management of Parent to proceed with the Transactions, including the financing required to consummate the Transactions.

On March 22, 2023, Mr. Helvey contacted Mr. Knaepen to acknowledge Parent’s improved offer and stated that he would discuss the proposal with the CTG Board. On March 29, 2023, Mr. Helvey again contacted Mr. Knaepen to inform him that the CTG Board was meeting to discuss Parent’s proposal.

On April 3, 2023, representatives of Raymond James had a telephone call with representatives of Stifel to discuss Parent’s improved proposal. Representatives of Stifel expressed that Parent had meaningfully increased its offer price and would move on if CTG was not interested in pursuing a transaction.

On April 4, 2023, Mr. Helvey spoke by telephone with Mr. Knaepen to discuss Parent’s proposal.

On April 21, 2023, Mr. Gydé had a video conference with Mr. Bijnens of Parent where Mr. Bijnens provided an update of Parent’s diligence to date.

On May 3, 2023, representatives of Raymond James had a telephone conversation with representatives of Stifel and informed them that the CTG Board had instructed Raymond James to run a targeted sale process.

On May 11, 2023, representatives of Raymond James had a telephone conversation with representatives of Stifel to outline the deal timing and process. Representatives of Stifel requested meetings with CTG management and higher priority diligence items prior to the end of May.

On June 1, 2023, Parent received access to the virtual data room and received a Phase I process letter from representatives of Raymond James.

On June 12, 2023, Messrs. Gydé and Laubacker had a video conference with Messrs. Bijnens, Daems, Verstraeten and Ruben Gofflo (Parent’s M&A specialist) along with representatives of each of Stifel and Raymond James to discuss CTG’s business and strategy.

On June 22, 2023, Parent submitted a non-binding proposal to acquire CTG. Parent proposed a purchase price of $10.50 per Share in cash. CTG’s stock price closed at $7.35 per Share that day.

On June 27, 2023, representatives of Raymond James spoke by telephone with representatives of Stifel and expressed the CTG Board’s disappointment that Parent did not raise its offer price from the March proposal. Representatives of Stifel pointed out that CTG’s earnings had declined since March, but that Parent did not reduce its proposed price. Representatives of Raymond James notified representatives of Stifel that a small

 

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number of parties were moving to the next round of the process and would be invited to management meetings to discuss CTG’s business, financial performance and operations.

During the next two weeks, representatives of Raymond James had numerous calls with Stifel addressing diligence and process topics.

On June 30, 2023, representatives of Raymond James provided a Phase II process letter and draft merger agreement to Parent.

From June 30, 2023 and onwards, Parent, with the assistance of DLA Piper, negotiated the terms of the Debt Commitment Letter.

On July 10, 2023, Messrs. Gydé and Laubacker along with other members of the CTG management team had dinner with Mrs. Nouwen (Director of Parent) and Messrs. Knaepen, Bijnens, Verstraeten and Gofflo along with representatives of Raymond James and Stifel. The next day, the same parties had an in person meeting where CTG management made a presentation regarding CTG’s business and strategy. This meeting was followed by several virtual meetings and calls from July 12, 2023, to July 26, 2023, among representatives of each of CTG, Parent, Raymond James, Stifel, Baker McKenzie (CTG’s legal counsel) and DLA Piper (Parent’s legal counsel) for due diligence purposes.

On July 19, 2023, Parent was provided with preliminary earnings results for the second quarter.

On July 20, 2023, Parent provided its revised draft of the merger agreement to CTG for its consideration when evaluating the forthcoming offer as provided in the Phase II process letter.

On July 26, 2023, representatives of Raymond James, sent Parent a revised draft of the merger agreement prepared by Baker McKenzie reflecting CTG’s views on the various deal points, including the need for deal closing certainty, a reasonable break fee in the event of a superior proposal and a rejection of expense reimbursement to Parent in the event that the tender offer is not successful.

On July 28, 2023, representatives of Raymond James had a telephone conversation with representatives of Stifel to discuss the status of Parent’s diligence and Parent’s plans to submit a final proposal along with a revised merger agreement by the July 31, 2023, deadline.

On July 30, 2023, Parent provided a revised draft of the merger agreement. Representatives of Raymond James and Stifel spoke by telephone during which representatives of Raymond James emphasized that the CTG Board was focused on price and certainty of closing and that Parent should try to eliminate all issues that could add uncertainty to closing. Representatives of Stifel noted that Parent was struggling with further degradation in earnings that had occurred during the process and the related impact to offer price as well as the desire for a short exclusivity period if Parent submitted the best proposal.

On July 31, 2023, Parent submitted its “best and final” offer along with copies of a debt commitment letter and a revised mark-up of the merger agreement. Parent’s proposal maintained an offer price of $10.50 per Share with committed financing. Parent’s offer price represented a 49.1% premium to the trailing 90-day volume weighted average price as of July 28, 2023 and its revised draft of the merger agreement conceded several deal points with the only remaining issues being the amount of the break fee in the event of termination by CTG due to a superior proposal or intervening event and the conditions to closing. Parent also requested a meeting with CTG executive management in New York City to discuss views on the combined company and to understand their personal ambitions. Parent requested a seven day exclusivity period to finalize negotiations on the merger agreement.

On August 1, 2023, representatives of Raymond James had a telephone conference with representatives of Stifel during which representatives of Stifel confirmed that all diligence had been completed except that Parent

 

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desired to have meetings with CTG executive management prior to signing a definitive agreement to discuss their post-closing operational roles in the combined company.

On August 2, 2023, Mr. Helvey spoke by telephone with Mr. Knaepen to discuss the requested meeting with CTG executive management to discuss Parent’s intentions with respect to their operational roles post-closing.

Later on August 2, 2023, representatives of Raymond James had a telephone conference with representatives of Stifel during which they communicated that the CTG Board, while another bidder remained with a very competitive offer, was inclined to grant Parent a seven day exclusivity period if Parent increased its offer price to $10.75 per Share. Later that day, representatives of Stifel called representatives of Raymond James and reported that $10.50 per Share was Parent’s best and final offer and that the final offer was conditioned on meetings with CTG executive management and a seven day exclusivity period. Also on such day, Baker McKenzie sent DLA Piper a revised draft of the merger agreement.

On August 3, 2023, Mr. Helvey spoke by telephone with Mr. Knaepen regarding Parent’s request for exclusivity. Later that day, CTG and Parent entered into an exclusivity agreement to expire at 11:59 p.m., Eastern time, on August 8, 2023.

On August 4, 2023, with the permission of the CTG Board, Messrs. Knaepen, T. Knaepen (Parent board member), Verstraeten and Gofflo had meetings in New York City with Messrs. Gydé and Laubacker along with other members of the CTG executive management team, as a group and individually, to discuss Parent’s preliminary plans regarding roles for the executives in the combined company. The parties did not discuss post-closing compensation. Later that day, DLA Piper sent Baker McKenzie a revised draft of the merger agreement.

From August 4, 2023, to August 8, 2023, the parties negotiated the final deal points in the merger agreement along with the disclosure letter. The parties agreed to a break fee of 4.25% of the deal value in the event the merger agreement was terminated due to a superior proposal or intervening event or in certain other circumstances and resolved other deal points.

On August 8, 2023, the board of directors of Merger Sub executed a unanimous written consent which (i) determined that the terms of the Merger Agreement and the Support Agreement, and the transactions contemplated thereby, including the Offer and the Merger, were fair to and in the best interest of Merger Sub and its sole shareholder, (ii) approved, adopted and declared advisable the Merger Agreement and the Support Agreement, and the transactions contemplated thereby, including the Offer and the Merger, and (iii) recommended that the sole shareholder of Merger Sub approve, adopt and declare advisable the Merger Agreement and the Support Agreement, and the transactions contemplated thereby, including the Offer and the Merger.

On August 8, 2023, CTG’s stock price closed at $8.00 per Share. Later on August 8, 2023, Parent entered into the Debt Commitment Letter. CTG and Parent worked through the night to finalize the merger agreement, disclosure letter and related transaction documents.

After consultation with their respective works councils in Belgium in the morning of August 9, 2023, the parties signed the Merger Agreement prior to the opening of trading on NASDAQ and issued a press release announcing the execution of the Merger Agreement.

On August 23, 2023, Merger Sub and Parent commenced the Offer and filed the Schedule TO.

For more information on the Merger Agreement and the other agreements related to the Offer and the Merger, see Section 8 — “Certain Information Concerning Parent and Merger Sub,” Section 9 — “Source and Amount of Funds” and Section 11 — “The Merger Agreement; Other Agreements.”

 

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11. The Merger Agreement; Other Agreements.

Merger Agreement

The following summary of certain provisions of the Merger Agreement and all other provisions of the Merger Agreement discussed herein are qualified by reference to the Merger Agreement itself, which is incorporated herein by reference. We have filed a copy of the Merger Agreement as Exhibit (d)(1) to the Schedule TO. The Merger Agreement may be examined and copies may be obtained at the places and in the manner set forth in Section 8 — “Certain Information Concerning Parent and Merger Sub.” Shareholders and other interested parties should read the Merger Agreement for a more complete description of the provisions summarized below. Capitalized terms used herein and not otherwise defined have the respective meanings set forth in the Merger Agreement.

The Merger Agreement has been filed with the SEC and incorporated by reference herein to provide investors and shareholders with information regarding its terms of the Offer and the Merger. It is not intended to provide any other factual information about Parent, Merger Sub or CTG. The representations, warranties and covenants contained in the Merger Agreement were made only as of specified dates for the purposes of such agreement, were (except as expressly set forth therein) solely for the benefit of the parties to such agreement and may be subject to qualifications and limitations agreed upon by such parties. In particular, in reviewing the representations, warranties and covenants contained in the Merger Agreement and any description thereof contained or incorporated by reference herein, it is important to bear in mind that such representations, warranties and covenants were negotiated with the principal purpose of allocating risk among the parties, rather than establishing matters as facts. Such representations, warranties and covenants may also be subject to a contractual standard of materiality different from those generally applicable to shareholders and reports and documents filed with the SEC, and in some cases were qualified by disclosures set forth in a confidential disclosure letter that was provided by CTG to Parent and Merger Sub but is not filed with the SEC as part of the Merger Agreement. Investors and shareholders are not third-party beneficiaries under the Merger Agreement, except with respect to their right to receive the Offer Price following the Offer Acceptance Time or to receive the Merger Consideration (as defined below). Accordingly, investors and shareholders should not rely on such representations, warranties and covenants as characterizations of the actual state of facts or circumstances described therein. Information concerning the subject matter of such representations, warranties and covenants, which do not purport to be accurate as of the date of this Offer to Purchase, may have changed since the date of the Merger Agreement, which subsequent information may or may not be fully reflected in the parties’ public disclosures.

The Offer. The Merger Agreement provides that Merger Sub will commence the Offer no later than August 23, 2023. Merger Sub’s obligation to accept for payment and pay for Shares validly tendered in the Offer is subject to the satisfaction of the Minimum Condition and the other Offer Conditions that are described in Section 15 — “Conditions to the Offer.” Subject to the satisfaction of the Minimum Condition and the other Offer Conditions that are described in Section 15 — “Conditions to the Offer,” the Merger Agreement provides that Merger Sub will, and Parent will cause Merger Sub to, accept for payment and pay for all Shares validly tendered and not validly withdrawn pursuant to the Offer promptly after the applicable Expiration Date, as it may be extended pursuant to the terms of the Merger Agreement. Acceptance and payment for Shares pursuant to and subject to the conditions to the Offer shall occur on September 21, 2023, unless we extend the Offer pursuant to the terms of the Merger Agreement.

Merger Sub expressly reserves the right to (i) increase the Offer Price, (ii) waive any Offer Condition, (iii) make any other changes in the terms and conditions to the Offer that are not inconsistent with the terms of the Merger Agreement and (iv) terminate the Offer if the conditions to the Offer are not satisfied and the Merger Agreement is terminated, except that CTG’s prior written approval is required for Parent or Merger Sub to:

 

   

decrease the Offer Price;

 

   

change the form of consideration payable in the Offer;

 

   

decrease the maximum number of Shares sought to be purchased in the Offer;

 

32


   

impose conditions or requirements on the Offer in addition to the Offer Conditions;

 

   

amend, modify or waive the Minimum Condition, the Termination Condition, the Regulatory Condition or the Governmental Impediment Condition;

 

   

otherwise amend any other term of the Offer in a manner that adversely affects, or would reasonably be expected to adversely affect, any holder of Shares in its capacity as such;

 

   

terminate the Offer or accelerate, extend or otherwise change the Expiration Date except as required or permitted by the terms of the Merger Agreement; or

 

   

provide any “subsequent offering period” (or any extension thereof) within the meaning of Rule 14d-11 promulgated under the Exchange Act.

The Merger Agreement contains provisions to govern the circumstances under which Merger Sub is required or permitted to extend the Offer and under which Parent is required to cause Merger Sub to extend the Offer. Specifically, the Merger Agreement provides that:

 

   

if, as of the then-scheduled Expiration Date, any Offer Condition has not been satisfied or waived, to the extent waivable by Merger Sub or Parent, Merger Sub or Parent may, in their sole discretion, extend the Offer on one or more occasions, for an additional period of up to ten (10) business days per extension, to permit such Offer Condition to be satisfied;

 

   

Merger Sub shall (and Parent shall cause Merger Sub to) extend the Offer for any period required by applicable securities law, rule or regulation, any interpretation or position of the SEC or its staff or NASDAQ applicable to the Offer;

 

   

Merger Sub shall (and Parent shall cause Merger Sub to) extend the Offer for periods of up to ten (10) business days per extension, until any waiting period (and any extension thereof) applicable to the consummation of the Offer under the HSR Act and any foreign antitrust or competition-related law has expired or been terminated; and

 

   

if, as of the then-scheduled Expiration Date, any Offer Condition has not been satisfied or waived, at the request of CTG, Merger Sub shall (and Parent shall cause Merger Sub to) extend the Offer for an additional period of up to ten (10) business days per extension, to permit such Offer Condition to be satisfied.

However, Merger Sub is not required to extend the Offer beyond the earlier to occur of the valid termination of the Merger Agreement in compliance with its terms and the End Date (such earlier occurrence, the “Extension Deadline”) and may not extend the Offer beyond the Extension Deadline without CTG’s consent. Except in the case of the valid termination of the Merger Agreement, Merger Sub may not terminate the Offer, or permit the Offer to expire, prior to the Extension Deadline without the prior written consent of CTG.

Merger Sub has agreed that it will terminate the Offer immediately upon any termination of the Merger Agreement.

Top-Up Option. Under the Merger Agreement, the Company has granted Merger Sub an irrevocable option (the “Top-Up Option”) to purchase at a price per share equal to the Offer Price that number of newly issued, fully paid and nonassessable Shares (the “Top-Up Shares”) equal to the lesser of (i) the lowest number of Shares that, when added to the number of Shares owned by Parent, Offeror and any of their respective subsidiaries at the time of exercise of the Top-Up Option, shall constitute one share more than 90% of the outstanding Shares immediately after the issuance of the Top-Up Shares on a fully-diluted basis (which assumes conversion or exercise of all derivative securities regardless of the conversion or exercise price, the vesting schedule or other terms and conditions thereof) and (ii) the aggregate number of authorized but unissued and unreserved Shares (including as authorized and unissued Shares, for purposes hereof, any Shares held in the treasury of the Company). The Top-Up Option will be exercisable only once, in whole but not in part, at any time following the

 

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Offer Acceptance Time and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of the Merger Agreement in accordance with its terms.

In the event the Minimum Tender Condition is satisfied and exercise of the Top-Up Option would result in Merger Sub and Parent collectively owning one share more than 90% of the total Shares on a fully diluted basis (assuming conversion or exercise of all derivative securities regardless of the conversion or exercise price, the vesting schedule or other terms and conditions thereof) then outstanding, then Merger Sub will be obligated to exercise the Top-Up Option and will do so on the same day on which Merger Sub accepts for payment Shares tendered pursuant to the Offer; provided that in no event shall the Top-Up Option be exercised (i) for a number of Shares in excess of the number of authorized but unissued and unreserved Shares (including as authorized and unissued Shares, for purposes hereof, any Shares held in the treasury of the Company) or (ii) if any provision of applicable law shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Shares. At the closing of the purchase of Top-Up Shares, which shall take place simultaneously with the Offer Acceptance Time, the aggregate purchase price owed by Merger Sub to CTG for the Top-Up Shares will be paid to CTG by (A) paying in cash by wire transfer of same-day funds an amount equal to not less than the aggregate par value of the Top-Up Shares and (B) issuing to the Company a promissory note having a principal amount equal to the aggregate purchase price pursuant to the Top-Up Option less the amount paid in cash pursuant to the preceding clause (A). Such promissory note (i) shall bear simple interest at a rate of three percent (3%) per annum, payable in arrears at maturity, (ii) shall mature on the first anniversary of the date of execution of such promissory note, (iii) shall be full recourse to Merger Sub, (iv) may be prepaid, at any time, in whole or in part, without premium or penalty and (v) shall have no other material terms.

Any impact on the value of the Shares as a result of the issuance of the Top-Up Option Shares will not be taken into account in any determination of the fair value of any Dissenting Shares (as defined below) pursuant to Sections 910 and 623 of the NYBCL

Board of Directors and Officers. Under the Merger Agreement, the board of directors and officers of the Surviving Corporation as of the Effective Time will be the members of the board of directors and officers, respectively, of Merger Sub immediately prior to the Effective Time, until their respective successors have been duly elected and qualified, or until their earlier death, resignation or removal.

The Merger. The Merger Agreement provides that, following completion of the Offer and subject to the terms and conditions of the Merger Agreement, and in accordance with the NYBCL, at the Effective Time, Merger Sub will be merged with and into CTG, the separate existence of Merger Sub will cease, and CTG will continue as the Surviving Corporation in the Merger. The Merger will be effected under Section 905(a) of the NYBCL. Accordingly, Parent, Merger Sub and CTG have agreed to take all necessary action to cause the Merger to become effective as soon as practicable following the Offer Acceptance Time, and in any event on the same date as the Offer Acceptance Time, without a vote of CTG’s shareholders in accordance with Section 905(a) of the NYBCL.

As of the Effective Time, the certificate of incorporation of CTG will, by virtue of the Merger and without any further action, be amended and restated in its entirety as set forth on Annex II to the Merger Agreement and, as so amended and restated, will be the certificate of incorporation of the Surviving Corporation.

The bylaws of Merger Sub immediately prior to the Effective Time will be the bylaws of the Surviving Corporation at and immediately after the Effective Time, except that references to the name of Merger Sub will be replaced by references to the name of the Surviving Corporation.

The obligations of CTG, Parent and Merger Sub to complete the Merger are subject to the satisfaction or waiver by each of the parties of the following conditions:

 

   

Merger Sub (or Parent on Merger Sub’s behalf) must have accepted for payment all Shares validly tendered and not validly withdrawn pursuant to the Offer; and

 

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there shall be no temporary restraining order, preliminary or permanent injunction or other order, decree or ruling by any governmental body in effect restraining, enjoining or otherwise preventing the consummation of the Merger, and no governmental body shall have promulgated, enacted, issued or deemed applicable to the Merger any law which prohibits or makes illegal the consummation of the Merger.

Conversion of Capital Stock at the Effective Time. Shares outstanding immediately prior to the Effective Time (other than Shares held by CTG as treasury stock or Shares held by Parent, Merger Sub or any other subsidiary of Parent, which will be cancelled and retired and cease to exist without consideration or payment; and Shares held by a holder who exercises appraisal rights in accordance with New York law with respect to such Shares) will be converted at the Effective Time into the right to receive the Offer Price, without interest and less any applicable withholding taxes (the “Merger Consideration”).

Each share of Merger Sub’s common stock outstanding immediately prior to the Effective Time shall be converted into one share of common stock of the Surviving Corporation.

The holders of certificates or book-entry shares, which immediately prior to the Effective Time represented Shares, shall cease to have any rights with respect to such Shares other than (a) the right to receive, upon surrender of such certificates or book-entry shares in accordance with the procedures set forth in the Merger Agreement, the Merger Consideration; (b) rights provided with respect to Shares of a holder who exercises appraisal rights in accordance with New York law, such consideration as determined pursuant to Sections 910 and 623 of the NYBCL; or (c) rights provided with respect to Shares under any other applicable law.

Treatment of Equity Awards. Pursuant to the Merger Agreement, each Company Option that is outstanding and unexercised at the Effective Time, whether or not vested and which has a per share exercise price that is less than the Offer Price (each, an “In the Money Option”) will be cancelled and converted into the right to receive a cash payment equal to (i) the excess, if any, of the (x) Offer Price over (y) exercise price payable per Share under such In the Money Option, multiplied by (ii) the total number of Shares subject to such In the Money Option immediately prior to the Effective Time (without regard to vesting), subject to any applicable withholding or other taxes required by applicable law.

Each Company Option other than an In the Money Option that is outstanding and unexercised at the Effective Time, whether or not vested (each, an “Out of the Money Option”) will be cancelled at the Effective Time without any consideration payable therefor.

Each of the restricted stock units with respect to Shares that is outstanding at the Effective Time, which are not Company PSUs (as defined below) (each, a “Company RSU”) whether or not vested, will be canceled and the holder thereof will be entitled to receive a cash payment equal to the product of (i) the Offer Price and (ii) the number of Shares subject to such Company RSU.

Each of the then outstanding performance vesting restricted stock units with respect to Shares that is outstanding at the Effective Time (each, a “Company PSU”) whether or not vested, will be canceled and the holder thereof will be entitled to receive a cash payment equal to the product of (i) the Offer Price and (ii) the number of Shares subject to such Company PSU immediately prior to the Effective Time (determined at the target level of performance).

Representations and Warranties. This summary of the Merger Agreement has been included to provide investors with information regarding its terms. It is not intended to provide any other factual information about Parent, Merger Sub or CTG, their respective businesses, or the actual conduct of their respective businesses during the period prior to the consummation of the Offer or the Merger. The Merger Agreement contains representations and warranties that are the product of negotiations among the parties thereto and made to, and solely for the benefit of, each other as of specified dates. The assertions embodied in those representations and

 

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warranties are subject to qualifications and limitations agreed to by the respective parties and are also qualified in important part by a confidential disclosure letter delivered by CTG to Parent in connection with the Merger Agreement. The representations and warranties were negotiated with the principal purpose of allocating risk among the parties to the agreements instead of establishing these matters as facts, and may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors.

In the Merger Agreement, CTG has made representations and warranties to Parent and Merger Sub with respect to, among other things:

 

   

corporate matters, such as organization, organizational documents, standing, qualification, power and authority;

 

   

capitalization;

 

   

authority relative to the Merger Agreement;

 

   

financial statements and SEC filings;

 

   

disclosure controls and internal controls over financial reporting;

 

   

accuracy of information supplied for purposes of the Offer documents and the Schedule 14D-9;

 

   

absence of certain changes since January 1, 2023;

 

   

since January 1, 2023, the absence of a Material Adverse Effect (as defined below);

 

   

title to assets;

 

   

real property matters;

 

   

intellectual property;

 

   

material contracts;

 

   

absence of undisclosed liabilities;

 

   

legal and regulatory compliance;

 

   

privacy and data security;

 

   

compliance with anti-corruption, anti-bribery, sanctions and trade control laws;

 

   

permits and licenses and compliance with laws;

 

   

taxes;

 

   

employees and employee benefit plans, including ERISA and certain related matters;

 

   

environmental matters;

 

   

insurance;

 

   

absence of litigation;

 

   

state takeover statutes;

 

   

required consents and approvals, and no violations of organizational documents, contracts or applicable law as a result of the Offer or Merger;

 

   

related party transactions;

 

   

opinion of its financial advisors; and

 

   

brokers’ fees and expenses.

 

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Some of the representations and warranties in the Merger Agreement made by CTG are qualified as to “materiality” or “Material Adverse Effect.” For purposes of the Merger Agreement, a “Material Adverse Effect” means any event, occurrence, circumstance, change or effect which, individually or in the aggregate, has had or would reasonably be expected to have a material adverse effect on (a) the ability of CTG to consummate the Transactions on or before the End Date or (b) the business, assets, condition (financial or otherwise) liabilities (contingent or otherwise), operations or results of operations of the Acquired Companies, taken as a whole. Clause (b) of the definition of “Material Adverse Effect” excludes the following from constituting or being taken into account in determining whether there has been a Material Adverse Effect:

 

  (i)

any change in the market price or trading volume of CTG’s stock or change in CTG’s credit ratings; provided that the underlying causes of any such change may be considered in determining whether a Material Adverse Effect has occurred or would reasonably be expected to occur to the extent not otherwise excluded by another exception;

 

  (ii)

any event, occurrence, circumstance, change or effect resulting from the announcement, pendency or performance of the Transactions (subject to specified exceptions);

 

  (iii)

any event, occurrence, circumstance, change or effect generally affecting the industry in which the Acquired Companies operate or in the economy generally or other general business, financial or market conditions;

 

  (iv)

any event, occurrence, circumstance, change or effect arising from fluctuations in the value of any currency or interest rates;

 

  (v)

any event, occurrence, circumstance, change or effect arising from any act of terrorism, war, national or international calamity, pandemic, hurricane, tornado, flood, earthquake, natural disaster, outbreaks of illness or other public health-related events or any other similar event, and any actions taken by any governmental body with respect thereto;

 

  (vi)

the failure of CTG to meet internal or analysts’ expectations or projections; provided that the underlying causes of such failure may be considered in determining whether a Material Adverse Effect has occurred or would reasonably be expected to occur to the extent not otherwise excluded by another exception;

 

  (vii)

any adverse effect arising directly from or otherwise directly relating to any action taken by CTG at the express written direction of Parent or any action specifically required to be taken by CTG, or the failure of CTG to take any action that CTG is specifically prohibited by the terms of the Merger Agreement from taking to the extent Parent fails to give its consent thereto after a written request therefor;

 

  (viii)

any event, occurrence, circumstance, change or effect arising from or otherwise relating to any change in, or any compliance with or action taken for the purpose of complying with any change in, any legal requirement or GAAP; and

 

  (ix)

any reduction, termination or failure to renew any customer contract within the CTG’s Non-Strategic Technology Services segment; provided that any event, occurrence, circumstance, change or effect referred to in the foregoing clauses (iii), (iv), (v) and (viii) may be deemed to constitute or be taken into account in determining whether there is, or would be reasonably expected to be, a Material Adverse Effect to the extent such event, occurrence, circumstance, change or effect disproportionately affects the Acquired Companies relative to other participants in the industries in which the Acquired Companies operate.

In the Merger Agreement, Parent and Merger Sub have made representations and warranties to CTG with respect to:

 

   

corporate matters, such as organization, standing, power and authority;

 

   

authority relative to the Merger Agreement;

 

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required consents and approvals, and no violations of laws, governance documents or agreements;

 

   

accuracy of information supplied for purposes of the Offer documents and the Schedule 14D-9;

 

   

absence of litigation;

 

   

sufficiency of funds and debt financing to consummate the Offer and the Merger;

 

   

ownership of securities of CTG;

 

   

independent investigation regarding CTG; and

 

   

brokers’ fees and expenses.

Some of the representations and warranties in the Merger Agreement made by Parent and Merger Sub are qualified as to “materiality” or the ability to consummate the transactions contemplated by the Merger Agreement.

None of the representations and warranties of the parties to the Merger Agreement contained in the Merger Agreement or in any schedule, instrument or other document delivered pursuant to the Merger Agreement will survive the Effective Time.

Conduct of Business Pending the Merger. CTG has agreed that, from the date of the Merger Agreement until the earlier of the Effective Time and the termination of the Merger Agreement pursuant to its terms, except as expressly required or permitted by the Merger Agreement or required by applicable law, as consented to in writing by Parent (which consent may not be unreasonably withheld, conditioned or delayed) or as disclosed prior to execution of the Merger Agreement in CTG’s confidential disclosure letter, CTG will, and will cause each other Acquired Company to, (i) conduct its business in the ordinary course consistent with past practice, and (ii) use its commercially reasonable efforts to preserve intact its material business organizations and relationships with material third parties.

CTG has further agreed that, from the date of the Merger Agreement until the earlier of the Effective Time and the termination of the Merger Agreement pursuant to its terms, except as expressly required or permitted by the Merger Agreement or required by applicable law, as consented to in writing by Parent (which consent may not be unreasonably withheld, conditioned or delayed) or as disclosed prior to execution of the Merger Agreement in CTG’s confidential disclosure letter, CTG will not, and will cause the Acquired Companies not to, among other things and subject to specified exceptions (including specified ordinary course exceptions):

 

   

establish a record date for, declare, set aside, make or pay any dividend or distribution in respect of any securities of an Acquired Company (including the Shares);

 

   

repurchase, redeem or otherwise reacquire any capital stock or ordinary shares, including the Shares, or any rights, warrants or options to acquire any of such capital stock, ordinary shares or the Shares;

 

   

split, combine, subdivide or reclassify any Shares or other equity interests;

 

   

sell, issue, grant, deliver, pledge, transfer, encumber or authorize any of the foregoing for any capital stock, equity interest or other security, other than Shares issuable upon exercise of the Company Options, Company RSUs or Company PSUs outstanding on the date of the Merger Agreement and in accordance with their respective terms;

 

   

establish, adopt, terminate or amend any employee benefit plan, including any employment, consulting, severance or similar arrangement;

 

   

amend or waive any of CTG’s material rights under, or accelerate the vesting under, any provision of any employee benefit plan;

 

   

grant any current or former employee, director or other service provider any loan or forgiveness of loan, or any increase in compensation, bonuses or other benefits;

 

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amend or permit the adoption of any amendment to its certificate of incorporation or bylaws or other charter or organizational documents;

 

   

form any subsidiary, acquire any equity interest in any other entity or enter into any material joint venture, partnership or similar arrangement;

 

   

make or authorize any capital expenditure, except capital expenditures that do not exceed $250,000 individually or $500,000 in the aggregate;

 

   

acquire (including by merger, consolidation or acquisition of stock or assets or otherwise) any corporation, partnership, limited liability company, joint venture, other business organization, business or assets constituting a business or any portion of a business for consideration in excess of $500,000 in the aggregate;

 

   

lease, license, sublicense, pledge, mortgage or otherwise dispose of, divest or spin-off, abandon, waive, relinquish or permit to lapse (other than any patent expiring at the end of its statutory term or abandonment of any application for registration of any intellectual property right in the ordinary course of business consistent with past practice), transfer or assign any material right or other material asset or property;

 

   

lend money or make capital contributions or advances to, or make investments in, any person;

 

   

incur or guarantee any indebtedness other than between CTG and a wholly owned Acquired Company or between wholly owned Acquired Companies;

 

   

enter into, amend or modify in any material respect, waive, renew (other than automatic renewals in accordance with an applicable material contract in effect as of the Effective Time) any material rights under or voluntarily terminate any material contract or any contract that would constitute a material contract if it had been in effect on the Effective Time;

 

   

except as required by applicable law or United States generally accepted accounting principles (or interpretations thereof), (i) make any material change to any accounting method or accounting period used for tax purposes that has a material effect on taxes; (ii) rescind or change any material tax election; (iii) file a material amended tax return; (iv) enter into a closing agreement with any governmental body regarding any material tax liability or assessment; (v) settle, compromise or consent to any material tax claim or assessment or surrender a right to a material tax refund; (vi) waive or extend the statute of limitations with respect to any material tax or material tax return; (vii) fail to file any material tax return on or before its due date; or (viii) fail to pay any material tax as it becomes due;

 

   

settle, release, waive or compromise any legal proceeding or other claim (or threatened legal proceeding or other claim) against any Acquired Company, other than any settlement, release, waiver or compromise that (A) results solely in monetary obligations by the Acquired Companies of not more than $350,000 in the aggregate (excluding monetary obligations that are funded by an indemnity obligation to, or an insurance policy of, any Acquired Companies), or (B) results in no monetary or other material non-monetary obligation of any Acquired Company;

 

   

enter into any collective bargaining agreement or other agreement with any labor organization;

 

   

adopt or implement any shareholder rights plan or similar arrangement;

 

   

adopt a plan or agreement of complete or partial liquidation or dissolution, merger, consolidation, restructuring, recapitalization or other reorganization of any of the Acquired Companies;

 

   

other than in the ordinary course of business consistent with past practice, hire or terminate (without cause) any employee or contingent worker, or enter into, amend, modify or terminate any employment, severance, bonus, retention, change in control or similar agreement with any current or former employee or contingent worker of the Company or its subsidiaries, in each case (i) with an annual base

 

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salary and target bonuses or other incentive compensation that, in aggregate, exceeds $350,000; (ii) where such employee or contingent worker is or would be entitled by agreement, policy or practice to any severance payments or benefits or any bonus or accelerated vesting in connection with the transactions contemplated hereby, in each case, other than pursuant to applicable legal requirements (other than any obligations arising under any contract); or (iii) where any such terminations would constitute an “employment loss” under the WARN Act;

 

   

enter into any new line of business;

 

   

fail to maintain in full force and effect insurance policies covering the Acquired Companies and their material properties, business, assets and operations in a form and amount consistent with past practice in all material respects; or

 

   

authorize, agree or commit to take any of the foregoing actions.

Access to Information. From the date of the Merger Agreement until the earlier of the Effective Time and the termination of the Merger Agreement, pursuant to its terms, (i) upon reasonable advance notice, the Acquired Companies have agreed to provide Parent and Parent’s officers, directors, employees, attorneys, accountants, investment bankers, consultants, agents, financing sources, financial advisors and other advisors and representatives (collectively, “Representatives”) reasonable access during CTG’s normal business hours to CTG’s designated Representatives and assets, and to all existing books, records, documents and information relating to the Acquired Companies, as Parent may reasonably request for any reasonable business purpose related to the Transactions, and to promptly provide all reasonably requested information regarding the Acquired Companies’ business, subject to customary exceptions and limitations.

Notice of Certain Events. CTG, Parent and Merger Sub have agreed to promptly notify the other of (i) any notice or communication received from any governmental body in connection with the Transactions or from any person alleging that the consent of such person may be required in connection with the Transactions; (ii) any legal proceeding relating to the Transactions; or (iii) the occurrence or impending occurrence of a Material Adverse Event, with respect to CTG, or any effect, change, event or occurrence that would or would reasonably be likely to, individually or in the aggregate, materially impair, prevent or materially delay or impede Merger Sub’s ability to consummate the Transactions in a timely manner.

Directors’ and Officers’ Indemnification and Insurance. The Merger Agreement provides for indemnification, advancement of expenses, exculpation from liabilities and insurance rights in favor of the current and former directors and officers of each Acquired Company, whom we refer to as “Indemnitees,” with respect to acts or omissions occurring at or prior to the Effective Time (whether asserted or claimed prior to, at or after the Effective Time). Specifically, Parent has agreed that all rights to indemnification, exculpation and advancement of expenses in favor of Indemnitees as provided in CTG’s certificate of incorporation or bylaws or under any agreement made available by CTG to Parent (in the case of current directors and officers of CTG) with respect to all matters occurring prior to or at the Effective Time will continue in full force and effect in accordance with their respective terms for a period of six (6) years from the Effective Time.

In addition, Parent has agreed that it will cause the Surviving Corporation and its subsidiaries to (and the Surviving Corporation has agreed that it will) indemnify and hold harmless each individual who is as of the date of the Merger Agreement, or who becomes prior to the Effective Time, a director or officer of any Acquired Company or who is as of the date of the Merger Agreement, or who thereafter commences prior to the Effective Time, serving at the request of any Acquired Company as a director or officer of another person (the “Indemnified Persons”), against all claims, losses, liabilities, damages, judgments, inquiries, fines and reasonable fees, costs and expenses, including attorneys’ fees and disbursements, incurred in connection with any claim, action, suit or proceeding, whether civil, criminal, administrative or investigative (including with respect to matters existing or occurring at or prior to the Effective Time), arising out of the fact that the Indemnified Person is or was a director or officer of any Acquired Company or is or was serving at the request of any

 

40


Acquired Company as a director or officer of another person, to the fullest extent permitted under applicable law. The Merger Agreement provides that each Indemnified Person will be entitled to advancement of expenses incurred in the defense of any such claim, action, suit or proceeding from the Surviving Corporation or its subsidiaries, as applicable, in accordance with the organizational documents and any indemnification agreements of the Surviving Corporation or its subsidiaries, as applicable, as in effect on the date of the Merger Agreement. If it is ultimately determined by final adjudication that any Indemnified Person to whom expenses are advanced is required to provide an undertaking, if and only to the extent required by the NYBCL or the Surviving Corporation’s or its Subsidiaries’ certificate of incorporation or bylaws or any such indemnification or other similar agreements, to repay such advances, such Indemnified Person is not entitled to indemnification. Further, the Surviving Corporation and its subsidiaries, as applicable, will reasonably cooperate in the defense of any such matter.

For a period of six (6) years from and after the Effective Time, Parent and the Surviving Corporation will either cause to be maintained in effect the current policies of directors’ and officers’, employment practices and fiduciary liability insurance maintained by or for the benefit of the Acquired Companies or provide substitute policies for the Acquired Companies and their current and former directors and officers who are currently covered by the directors’ and officers’, employment practices and fiduciary liability insurance coverage currently maintained by or for the benefit of the Acquired Companies, in either case, of not less than the existing coverage and having other terms not less favorable in the aggregate to the insured persons than the directors’ and officers’, employment practices and fiduciary liability insurance coverage currently maintained by or for the benefit of the Acquired Companies with respect to claims arising from facts or events that occurred at or before the Effective Time (with insurance carriers having at least an “A” rating by A.M. Best with respect to directors’ and officers’, employment practices and fiduciary liability insurance). In addition, Parent or the Surviving Corporation will be required to pay with respect to such insurance policies no more than 300% of the aggregate annual premium most recently paid by the Acquired Companies prior to the date of the Merger Agreement (the “Maximum Amount,”) and if the Surviving Corporation is unable to obtain the insurance required herein, it will obtain as much comparable insurance as possible for the years within such six (6)-year period for a premium equal to the Maximum Amount. In lieu of such insurance, prior to the date on which the consummation of the Merger occurs (the “Closing Date”), CTG may, at its option, purchase a “tail” director’s and officer’s, employment practices and fiduciary liability insurance policy for the Acquired Companies and their current and former directors and officers who are currently covered by the director’s and officer’s, employment practices and fiduciary liability insurance coverage then maintained by or for the benefit of the Acquired Companies. Such “tail” insurance policy will provide coverage in an amount not less than that of the Acquired Companies’ policies existing on the date of the Merger Agreement and will have other terms no less favorable to the insured persons; however, neither Parent nor the Surviving Corporation will be required to pay with respect to such insurance policies, more than the Maximum Amount.

Reasonable Best Efforts. Each of CTG, Parent and Merger Sub has agreed to use its respective reasonable best efforts to take, or cause to be taken, all actions necessary to consummate the Offer and the Merger and make effective the other Transactions. In particular, each party has agreed to use reasonable best efforts to (i) make all filings (if any) and give all notices (if any) required to be made and given pursuant to any material contract in connection with the Offer and the Merger and the other Transactions, (ii) seek each consent (if any) required to be obtained pursuant to any material contract in connection with the Transactions to the extent requested in writing by Parent and (iii) seek to lift any restraint, injunction or other legal bar to the Offer or the Merger brought by any third person (other than a governmental body under the antitrust laws) against such party.

CFIUS. Each of CTG, Parent and Merger Sub has agreed to use its respective reasonable best efforts to obtain CFIUS Approval prior to the initial End Date, including using their respective reasonable best efforts to: (i) as soon as practicable, and not later than fifteen (15) business days after the date of the Merger Agreement, file a draft CFIUS Notice in connection with the CFIUS Approval in accordance with the DPA, (ii) promptly (and not later than five (5) business days) file a final CFIUS Notice in accordance with the DPA after receipt of comments from CFIUS to the draft CFIUS Notice or confirmation by CFIUS that it has no comments to the draft

 

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CFIUS Notice, (iii) promptly and, in all events consistent with any deadline imposed by CFIUS or pursuant to other applicable law, comply with any request received by it from any governmental body for any certification, additional information, documents or other materials in respect of such CFIUS Notice, (iv) undertake reasonable efforts to cooperate in all respects with each other in connection with the drafting and filing of the draft and final CFIUS Notice and in providing any information requested by CFIUS or any other agency or branch of the U.S. government in connection with the CFIUS review or investigation of the Transactions within the timeframes set forth in the DPA; (v) promptly inform each other of any material communication with CFIUS; and (vi) permit each other to review any communication by the other, and consult with the other in advance of any planned meeting or conference, with CFIUS, and, to the extent permitted by CFIUS, grant each other the opportunity to attend and participate in any such planned meeting or conference, except that neither Parent nor CTG shall be obligated to disclose to the other any communication to CFIUS that Parent or CTG considers to be proprietary or confidential or that would violate any applicable laws. Parent and CTG will use their respective reasonable best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with each other in doing, all commercially reasonable actions necessary, proper, or advisable to obtain CFIUS Approval. The exercising of “reasonable best efforts” will in no event require the parties, as a condition to obtaining CFIUS Approval, to take any action that may limit Parent’s freedom of action with respect to CTG, or to sell, divest or hold separate or take any other action with respect to any assets, businesses, or interests in any assets or businesses of the parties (or to consent to any sale, divestiture or holding separate, or agreement to sell, divest or hold separate by the parties of any of their assets, businesses or interests in any of their assets or businesses). Parent is responsible for 100% of the CFIUS filing fee required.

Antitrust Laws. Each of CTG, Parent and Merger Sub has agreed to use its reasonable best efforts to take promptly any and all steps necessary to avoid or eliminate each and every impediment under any antitrust laws that may be asserted by any governmental body or any other party, so as to enable the closing to occur as promptly as practicable, but in no case later than the End Date, including responding as promptly as reasonably practicable to all requests for information by any governmental body pursuant to its evaluation of the Transactions under the HSR Act or other applicable antitrust laws. Nothing in the Merger Agreement obligates Parent or any of its subsidiaries or affiliates (i) to proffer, negotiate, accept, or implement (A) the divestiture, sale, license, or other disposition of any assets, entities, businesses, or operations of Parent, CTG, or any of their respective subsidiaries or affiliates, or (B) the imposition of any constraints, restraints, or other obligations or conditions upon the operation of any assets, entities, businesses, or operations of Parent, CTG, or any of their respective subsidiaries or affiliates; or (ii) to defend through litigation, arbitration, or other dispute resolution process, on the merits or otherwise, any claim asserted by any party under any antitrust laws, or to have vacated or terminated, any decree, order or judgment (whether temporary, preliminary or permanent). With respect to any efforts described in this paragraph, each party will bear its own attorney fees and costs.

Each of CTG, Parent and Merger Sub will, if applicable, (and will cause their respective affiliates, if applicable, to): (i) promptly, but in no event later than five (5) business days after the date of the Merger Agreement, make an appropriate filing of a notification and report form as required by the HSR Act with respect to the Transactions and (ii) cooperate with each other in determining whether, and promptly preparing and making, any other filings, notifications or other consents are required to be made with, or obtained from, any other governmental bodies in connection with the Transactions. However, the requirements of the HSR Act do not apply to either the acquisition of Shares in the Offer or to the Merger because the acquisition of the Company’s non-US entities and assets is exempt and Parent has determined, in good faith, that the fair market value of the Company’s U.S. entities and assets is below the applicable reportability threshold.

In addition CTG, Parent and Merger Sub have also agreed, until the Effective Time or the termination of the Merger Agreement pursuant to its terms, to: (i) promptly notify the other parties of the making or commencement of any request, inquiry, investigation, action or legal proceeding brought by a governmental body or brought by a third party before any governmental body, in each case, with respect to the Transactions under antitrust laws, (ii) keep the other parties reasonably informed as to the status of any such request, inquiry, investigation, action or legal proceeding, (iii) promptly inform the other parties of, and wherever practicable, give the other party

 

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reasonable advance notice of, and the opportunity to participate in, any communication to or from the FTC, DOJ or any other governmental body in connection with any such request, inquiry, investigation, action or legal proceeding, (iv) promptly furnish to the other party, subject to an appropriate confidentiality agreement to limit disclosure to counsel and outside consultants, with copies of documents provided to or received from any governmental body in connection with any such request, inquiry, investigation, action or legal proceeding (other than “4(c) documents” as that term is used in the rules and regulations under the HSR Act, that contain valuation information (which can be redacted)), (v) subject to an appropriate confidentiality agreement to limit disclosure to counsel and outside consultants, and to the extent reasonably practicable, consult and cooperate with the other parties and consider in good faith the views of the other parties in connection with any analysis, appearance, presentation, memorandum, brief, argument, opinion or proposal made or submitted in connection with any such request, inquiry, investigation, action or legal proceeding, and (vi) except as may be prohibited by any governmental body or by any law, in connection with any such request, inquiry, investigation, action or legal proceeding in respect of the Transactions, give the other party reasonable advance written notice of, and permit authorized Representatives of the other parties to be present at each meeting or conference relating to such request, inquiry, investigation, action or legal proceeding and to have access to and be consulted in connection with any argument, opinion or proposal made or submitted to any governmental body in connection with such request, inquiry, investigation, action or legal proceeding. Any notification, submission, or correspondence to any governmental body is subject to prior approval by both parties, with such approval not to be unreasonably withheld or delayed.

Employee Matters. Parent has agreed that, for a period of one (1) year following the Effective Time, it will provide, or it will cause to be provided, to each employee of CTG or its subsidiaries who is employed by CTG or its subsidiaries as of immediately prior to the Effective Time and who continues to be employed by the Surviving Corporation (or any affiliate thereof) during such one (1) year period (the “Continuing Employees”) with (i) a base salary or wage rate that is no less than that provided to such Continuing Employee by any Acquired Company immediately prior to the Effective Time, (ii) cash incentive compensation opportunities (excluding equity or equity-based compensation and any retention or other special or non-recurring bonus or incentive awards) that are no less favorable, in the aggregate, than those provided to such Continuing Employee by any Acquired Company immediately prior to the Effective Time and (iii) other compensation and employee benefits (excluding equity or equity-based compensation and any retention or other special or non-recurring bonus or incentive awards) that in the aggregate are no less favorable than those provided to such Continuing Employee by any Acquired Company immediately prior to the Effective Time.

Parent has also agreed that, for a period of one (1) year following the Effective Time, all Continuing Employees shall be eligible to continue to participate in the Surviving Corporation’s health and welfare benefit plans (to the same extent such Continuing Employees were eligible to participate under CTG’s health and welfare benefit plans immediately prior to the Effective Time). However, Parent or the Surviving Corporation may amend or terminate any such health or welfare benefit plan at any time, and, if Parent or the Surviving Corporation amends or terminates such plans, the Continuing Employees shall be eligible to participate in the Surviving Corporation’s health and welfare benefit plans.

To the extent service is relevant for eligibility or vesting under any employee benefit plans of Parent and/or the Surviving Corporation, Continuing Employees will receive service credit for purposes of eligibility and vesting (but not for the purposes of benefit accrual) under such employee benefit plans of Parent and/or the Surviving Corporation for service prior to the Effective Time with CTG, its affiliates or their respective predecessors to the same extent that such service was recognized under a corresponding CTG health and welfare benefit plan prior to the Effective Time. In addition, Parent and/or the Surviving Corporation shall credit each Continuing Employee with paid time off equal to the accrued and unused paid time off such Continuing Employees had with CTG as of the Effective Time. To the extent that service is relevant for benefit levels, including paid time off accruals, following the Effective Time, Parent has agreed to ensure that any employee plan of Parent and/or the Surviving Corporation will credit Continuing Employees for service prior to the Effective Time with CTG to the same extent that such service was recognized prior to the Effective Time.

 

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Following the Effective Time, Parent or an affiliate of Parent will (i) waive any preexisting condition limitations otherwise applicable to Continuing Employees and their eligible dependents under any plan of Parent or an affiliate that provides health benefits in which Continuing Employees are eligible to participate following the Effective Time, other than any limitations that were in effect with respect to such employees immediately prior to the Effective Time under the corresponding employee benefit plan (including any employment, consulting, severance or similar agreement or arrangement) that is sponsored by CTG or its affiliates and for which CTG or such affiliate is a party to and subject to liability (an “Employee Plan”), (ii) honor any deductible, co-payment and out-of-pocket maximums incurred by the Continuing Employees and their eligible covered dependents under the health plans in which they participated immediately prior to transitioning into a plan of Parent or an affiliate during the portion of the plan year prior to such transition in satisfying any deductibles, co-payments or out-of-pocket maximums under health plans of Parent or an affiliate and (iii) waive any waiting period limitation or evidence of insurability requirement that would otherwise be applicable to a Continuing Employee and his or her eligible covered dependents on or after the Effective Time, in each case, to the extent such Continuing Employee or eligible covered dependent had satisfied any similar limitation or requirement under an analogous Employee Plan prior to the Effective Time.

With respect to CTG’s 2023 fiscal year, CTG may, prior to the Offer Acceptance Time, pay annual bonuses with respect to such fiscal year at the level determined by the CTG Board in accordance with the terms of the applicable Employee Plan and as would otherwise be determined in the ordinary course of business and consistent with past practice, provided that any such annual bonuses shall be (i) no greater than those made with respect to the Company’s 2022 fiscal year, and (ii) calculated based on the Company’s reasonable estimate of the extent to which it projects that the performance targets otherwise applicable to such 2023 fiscal year bonus under such Employee Plan would have been achieved, and prorated based on the number of days elapsed in the applicable performance period as of the Closing Date, unless agreed to by Parent in advance in writing. If the consummation of the Merger has not occurred prior to January 1, 2024, the CTG Board will be permitted to establish annual bonus targets and metrics with respect to the 2024 fiscal year in accordance with the terms of the applicable Employee Plan and as would otherwise be determined in the ordinary course of business and consistent with past practice.

Parent will provide, or will cause its affiliates to provide for a period of one (1) year following the Effective Time, each Continuing Employee who experiences a termination of employment from Parent or any of its affiliates with severance benefits that are no less favorable, in the aggregate, than those that would have been provided to such Continuing Employee by any Acquired Company under the applicable severance policies set forth on the Company’s Disclosure Schedule and solely to the extent that any such severance policies condition receipt of severance payments in excess of laws, if any, upon provision a release of claims in favor of Parent.

Following the date of the Merger Agreement and prior to the Offer Acceptance Time, CTG, Parent and Merger Sub and their affiliates shall cooperate and use good faith efforts in carrying out requisite notifications to, and consultations, discussions or negotiations with, applicable unions, works councils, labor organizations or other employee representative groups in connection with the Transactions.

CTG, Parent and Merger Sub acknowledge and agree that the provisions relating to employment matters are included for the sole benefit of the respective parties to the Merger Agreement and shall not (i) create any third-party beneficiary or other rights in any current or former employee, manager, officer, director or independent contractor of the Company or any subsidiary to enforce the above provisions, (ii) be construed as an amendment, waiver or creation of any Employee Plan or other employee benefit plan of the Company, any subsidiary, Parent, or any of their respective affiliates, (iii) limit in any way the right of the Company, any subsidiary, Parent, or any of their respective affiliates to amend or terminate any Employee Plan at any time, or (iv) create any right to employment or service, continued employment or service or any term or condition of employment or service with any of the Company, any subsidiary, Parent, or any of their respective affiliates.

 

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CTG ESPP. CTG will take all actions necessary pursuant to the terms of the CTG ESPP to provide that (a) no new offering period will be commenced following the date hereof under the CTG ESPP, (b) each purchase right issued pursuant to the CTG ESPP will be fully exercised not later than five (5) business days prior to the Effective Time and (c) the CTG ESPP will terminate immediately prior to the Offer Acceptance Time and no further rights shall be granted or exercised under the CTG ESPP thereafter.

Security Holder Litigation. CTG will give Parent the right to review and comment on all material filings or responses to be made by CTG in connection with (and will give reasonable consideration to Parent’s comments and other advice in connection with), and the opportunity to participate in, any litigation against CTG and/or its directors or officers relating to the Transactions or the Merger Agreement, and the right to consult on any settlement with respect to such litigation, and no such settlement will be agreed to without Parent’s prior written consent, which will not be unreasonably withheld. CTG will promptly notify Parent of any such litigation and will keep Parent reasonably and promptly informed with respect to the status thereof.

Takeover Laws. If any “moratorium,” “control share acquisition,” “fair price,” “supermajority,” “affiliate transactions,” or “business combination statute or regulation” or other similar state anti-takeover laws and regulations (including Section 912 of the NYBCL) (each, a “Takeover Law”) may become, or may purport to be, applicable to the Transactions, Parent and CTG have agreed to use their respective reasonable best efforts to grant such approvals and take such actions as are necessary so that the Transactions may be consummated as promptly as practicable on the terms and conditions contemplated by the Merger Agreement and otherwise act to lawfully eliminate the effect of any Takeover Law on any of the Transactions.

Section 16 Matters. CTG and the CTG Board will, to the extent necessary, take appropriate action, prior to or as of the Offer Acceptance Time, to approve, for the purposes of Section 16(b) of the Exchange Act, the disposition and cancellation (or deemed disposition and cancellation) of Shares, Company Options, Company RSUs and Company PSUs in the Merger by applicable individuals and to cause such dispositions and/or cancellations to be exempt under Rule 16b-3 promulgated under the Exchange Act.

Stock Exchange Delisting and Deregistration. Prior to the Closing Date, CTG has agreed to cooperate with Parent and to use its reasonable best efforts to take, or cause to be taken, all actions, and do or cause to be done all things, reasonably necessary, proper or advisable under applicable laws and rules and policies of NASDAQ to enable delisting by the Surviving Corporation of the Shares from NASDAQ and the deregistration of the Shares under the Exchange Act as promptly as practicable after the Effective Time.

Director Resignations. CTG will use its reasonable best efforts to obtain and provide to Parent, on or prior to the Closing Date, to the extent requested in writing by Parent at least ten (10) business days prior to the Closing Date, resignation letters, effective as of and contingent upon the Effective Time, from each of the directors and corporate officers or equivalents of each of the Acquired Companies as requested by Parent, resigning from such position as a director and/or corporate officer.

Payoff. CTG will, and shall will the other Acquired Companies to, deliver (or cause to be delivered) all notices and take all other reasonable actions to facilitate the termination at the Effective Time of all commitments in respect of CTG’s existing credit agreement with Bank of America N.A.(the “Existing Credit Agreement”), the repayment in full on the Closing Date of all obligations in respect of the indebtedness thereunder, and the release on the Closing Date of any encumbrances securing such indebtedness and guarantees in connection therewith, in each case, which may be conditioned upon the consummation of the Closing and other transactions contemplated under the Merger Agreement. CTG and the other Acquired Companies will use reasonable best efforts to deliver to Parent prior to the Closing an executed payoff letter with respect to the Existing Credit Agreement from the applicable agent on behalf of the persons to whom such indebtedness is owed, which payoff letter together with any related release documentation will, among other things, include the payoff amount and provide that encumbrances (and guarantees), if any, granted in connection with the Existing Credit Agreement relating to the assets, rights and properties of CTG and the other Acquired Companies securing or relating to such indebtedness,

 

45


shall, upon the payment of the amount set forth in such payoff letter at or prior to the Effective Time, be released and terminated.

Cooperation with Debt Financing. Subject to certain exceptions, CTG will use reasonable best efforts to, and will cause the other Acquired Companies and their respective representatives to use reasonable best efforts to, reasonably cooperate with and reasonably assist Parent, at Parent’s sole cost and expense, in connection with Parent’s arranging, obtaining and syndicating its debt financing and causing the conditions in the definitive documents related to the debt financing and any commitment letters entered into in connection with such debt financing to be satisfied, including using reasonable best efforts in (i) assisting with, and furnishing information for the purposes of, the preparation of customary prospectuses (including any pro forma financial information and any information required under Article 18(2) of Commission Delegated Regulation (EU) 2019/980), offering documents, syndication documents and materials, including bank information memoranda and private placement memoranda, lender and investor presentations, rating agency materials and presentations and other customary marketing materials in connection with such debt financing, (ii) furnishing to Parent as promptly as reasonably practicable financial statements and operational information (including consolidated financial statements for interim periods up until the Closing Date) that can be prepared without undue burden with respect to CTG and the other Acquired Companies as is reasonably requested by Parent; provided that the Company shall not be required to provide, and Parent and Merger Sub shall be responsible for, any post-Closing or pro forma cost savings, synergies, capitalization, ownership or other post-Closing pro forma adjustments desired to be incorporated into any information used in connection with the debt financing, (iii) assisting in the preparation of schedules to collateral agreements by providing information of the Acquired Companies required to be made available on such schedules for purposes of the arrangement or consummation of the debt financing, (iv) subject to any contractual agreement in effect, facilitating the pledging of collateral for the debt financing, which shall not be required to be delivered or effective until at or promptly following the Effective Time, (v) subject to any contractual agreement in effect, obtaining the payoff letter of the Existing Credit Agreement, and the related lien releases, and instruments of termination or discharge, as applicable, and (vi) furnishing Parent as promptly as reasonably practical, and in any event not less than four (4) business days prior to the Closing Date, with all documentation and other information related to CTG and the other Acquired Companies required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act, that has been reasonably requested in writing with at least ten (10) Business Days’ prior notice by Parent or its financing sources. CTG also consented to the use of its and the other Acquired Companies’ logos in connection with the debt financing so long as such logos are used solely (i) in a manner that is not intended to or that is not reasonably likely to harm or disparage CTG or the other Acquired Companies or the reputation or goodwill of CTG or the other Acquired Companies and (ii) solely in connection with a description of CTG, its business and products or the Merger.

Parent and Merger Sub will indemnify, defend, and hold harmless CTG, its subsidiaries and their respective representatives from and against any and all losses suffered or incurred by them in connection with (i) the debt financing, (ii) any action taken by them at the request of Parent or Merger Sub in connection with the arrangement of the debt financing or (iii) any information utilized in connection therewith (other than any losses suffered or incurred (x) as a result of fraud, willful misconduct or gross negligence of CTG, its subsidiaries or their respective representatives or (y) as a direct result of the breach of any of the material obligations of CTG, its subsidiaries or their respective representatives under the Merger Agreement, in each case as determined by a final and non-appealable judgment of a court of competent jurisdiction). If any amount previously paid to or on behalf of CTG, its subsidiaries and their respective representatives pursuant to the immediately preceding sentence is subsequently determined to be ineligible for indemnification as a result of a final, non-appealable judgment of a court of competent jurisdiction, such person must promptly reimburse such amount to Parent. Parent or Merger Sub shall promptly, upon request by CTG, reimburse CTG for all reasonable documented out-of-pocket costs and expenses (including reasonable documented attorneys’ fees) incurred by CTG or any of its subsidiaries or their respective affiliates in connection with the cooperation of CTG and the subsidiaries in connection with the arrangement of the debt financing.

 

46


Each of Parent and Merger Sub will use its reasonable best efforts to complete, and shall cause their subsidiaries to use commercially reasonable best efforts to, obtain and consummate the debt financing on the terms and conditions described in or contemplated by the Debt Commitment Letter on or before the Closing, including using reasonable best efforts to (i) comply with the terms and conditions of, and maintain in effect, the Debt Commitment Letter; (ii) negotiate and enter into definitive agreements at or prior to the Closing with respect to the debt financing on the terms and conditions contained in the Debt Commitment Letter; (iii) satisfy on a timely basis all conditions applicable to such debt financing in such definitive agreements; and (iv) if all conditions to the debt financing are, or upon funding of the debt financing will be, satisfied, cause the other parties to the Debt Commitment Letter and such definitive agreements to comply with their obligations under the Debt Commitment Letter and such definitive agreements and to fund at or prior to the Closing, the debt financing required to consummate the Offer at the Offer Acceptance Time, the Merger at the Closing and the other Transactions.

Without the prior written consent of CTG, which consent shall not be unreasonably delayed, conditioned or withheld, Parent and Merger Sub shall not permit any amendment or modification to be made to, or any waiver of any provision or remedy under, or replace, the Debt Commitment Letter if such amendment, modification, waiver or replacement would reasonably be expected to (i) delay or prevent or adversely affect the Offer or the Closing, (ii) modify the conditions contained in the Debt Commitment Letter or create any new condition to the debt financing, (iii) reduce the net cash proceeds of the debt financing, including any reduction in the aggregate principal amount of the debt financing except that no such prior written consent shall be required in connection with a reduction in the aggregate principal amount of the debt financing if the aggregate principal amount of the debt financing after such reduction, together with cash on hand of Parent and its subsidiaries, is equal to or exceeds the sum of (A) the aggregate Offer Price and Merger Consideration payable pursuant to the terms of the Merger Agreement and (B) the aggregate of all amounts payable with respect to CTG’s equity awards, and (C) all related fees and expenses of Parent, Merger Sub and their respective affiliates and representatives and all other payments required by the Merger Agreement and / or in connection with the debt financing, (iv) change the date for termination and/or expiration of the Debt Commitment Letter (or any commitment thereunder) to an earlier date or modify any terms relating to termination right of any party thereunder, (v) waive the prohibitions with respect to assignment by the financing sources of their commitments under the Debt Commitment Letter, or (vi) adversely impact the ability of Parent or Merger Sub to enforce their rights against other parties to the Debt Commitment Letter prior to the Closing. Without the prior written consent of CTG, Parent and Merger Sub will not consent to any assignment of rights or obligations under the Debt Commitment Letter except that that the financing sources may syndicate the debt financing so long as the financing sources retain and remain obligated to fund their commitments under the debt financing until the debt financing is fully funded by the designated assignees and the syndicated sources of funding for the debt financing. Parent or Merger Sub shall promptly provide CTG written notice of any amendment or modification relating to the Debt Commitment Letter that does not require consent.

In the event that all or any portion of the debt financing becomes unavailable and such portion is reasonably required to consummate the Offer, the Merger and the other Transactions, each of Parent and Merger Sub shall use reasonable best efforts to arrange and timely obtain substitute financing (on terms and conditions that are not materially less favorable to Parent, taken as a whole, than the terms and conditions set forth in the Debt Commitment Letter relating to the debt financing to be replaced) from the same or alternative sources in an amount sufficient to consummate Offer, the Merger and the other Transactions.

Parent or Merger Sub shall give CTG prompt written notice: (i) of any material breach or default under the Debt Commitment Letter by any party thereto, (ii) of the receipt of any written notice from any party to the Debt Commitment Letter with respect to any actual or threatened material breach, default, withdrawal, termination or repudiation of any provisions of any Debt Commitment Letter by such party, and (iii) if for any reason Parent or Merger Sub believes in good faith that Parent will not be able to timely obtain all or any portion of the debt financing on the terms, in the manner or from the sources contemplated by the Debt Commitment Letter.

 

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No Solicitation. Except as described below, until the earlier of the Effective Time or the valid termination of the Merger Agreement pursuant to its terms, CTG has agreed not to, and to cause its directors, officers and employees not to, and to direct and use its reasonable best efforts to cause its other Representatives not to, directly or indirectly:

 

  (i)

continue any solicitation, knowing encouragement, discussions or negotiations with any persons that may be ongoing with respect to any Acquisition Proposal (as defined below);

 

  (ii)

solicit, initiate or knowingly facilitate or encourage (including by way of furnishing information) any inquiries regarding, or the making of any proposal or offer that constitutes, or could reasonably be expected to lead to, any Acquisition Proposal;

 

  (iii)

engage in, continue or otherwise participate in any discussions or negotiations regarding, or furnish to any other person any information in connection with, or for the purpose of soliciting or knowingly encouraging or facilitating, any Acquisition Proposal or any inquiry, proposal or offer that could reasonably be expected to lead to any Acquisition Proposal;

 

  (iv)

approve, adopt, endorse or recommend or enter into any letter of intent, acquisition agreement, agreement in principle or similar agreement with respect to any Acquisition Proposal or any proposal or offer that could reasonably be expected to lead to any Acquisition Proposal;

 

  (v)

take any action to grant any waiver, amendment or release under any Takeover Laws;

 

  (vi)

waive or release any person from, forebear in the enforcement of, or amend any confidentiality, standstill or similar contract or any standstill provisions of any other contract unless, solely in the case of this paragraph (vi), the CTG Board determines in good faith, after consultation with outside legal counsel, that the failure to do so would be inconsistent with the fiduciary duties of the CTG Board to CTG’s shareholders under applicable law, in which event the Acquired Companies may take the preceding actions described in this clause (iv) solely to the extent necessary to permit a third party to make, on a confidential basis, to the CTG Board, an Acquisition Proposal; or

 

  (vii)

resolve to do or agree or announce an intention to do any of the foregoing under the preceding clauses (iv) through (vi).

CTG agreed to request, as promptly as reasonably practicable (and in any event within three (3) business days) following the date of the Merger Agreement, the discontinuation of access to any electronic or physical data room and prompt return or destruction of all non-public information previously furnished to any person (other than Parent and its affiliates) that had made or indicated an intention to make any Acquisition Proposal within the two (2) year period prior to the date of the Merger Agreement.

Notwithstanding the above limitations, if CTG receives after the date of the Merger Agreement and prior to the Offer Acceptance Time a bona fide written Acquisition Proposal that did not result from a breach of the non-solicitation provisions of the Merger Agreement, any Acquired Company and their representatives may contact such person or groups of persons solely to clarify and understand the terms and conditions of such Acquisition Proposal solely to determine whether such Acquisition Proposal constitutes or would reasonably be expected to lead to a Superior Offer (as defined below). If the CTG Board determines in good faith, after consultation with financial advisors and outside legal counsel, that such an Acquisition Proposal constitutes or would reasonably be expected to lead to a Superior Offer and that the failure to take such action (as described below) would be inconsistent with its fiduciary duties under applicable law, CTG and its representatives may take the following actions:

 

  (x)

furnish, pursuant to an Acceptable Confidentiality Agreement (as defined below), information (including non-public information) with respect to the Acquired Companies to the person or groups of persons who have made such Acquisition Proposal (provided, that substantially concurrently therewith (and in any event no later than twenty-four (24) hours), CTG provides any such non-public information to Parent to the extent access to such information was not previously provided to Parent or its representatives); and

 

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  (y)

engage or otherwise participate in discussions or negotiations with the person or group of persons making such Acquisition Proposal.

In the case of each of clauses (x) and (y) above, at or prior to the first time CTG furnishes such information or participates in any such discussions or negotiations, CTG must provide written notice to Parent of the required determination of the CTG Board as described above, together with the identity of the person or group making such Acquisition Proposal. Under the Merger Agreement, “Acceptable Confidentiality Agreement” means any customary confidentiality agreement that (i) contains provisions that are not less favorable in the aggregate to CTG than those contained in the Confidentiality Agreement effective November 4, 2022, between CTG and Parent and (ii) does not prohibit CTG from providing any of the information described above to Parent.

CTG is required to notify Parent promptly (but in any event within twenty-four (24) hours) of the receipt by any Acquired Company or any representative thereof of any inquiry, proposal or offer with respect to, or that would reasonably be expected to lead to, an Acquisition Proposal. CTG is further required to (i) provide Parent a copy of any written Acquisition Proposal and a summary of any material unwritten terms and conditions thereof, (ii) identify the person making such inquiry, proposal or offer, and (iii) keep Parent reasonably informed of any material developments, discussions or negotiations regarding any Acquisition Proposal on a prompt basis (and in any event within twenty-four (24) hours of such material development, discussion or negotiation).

Acquisition Proposal” means any proposal or offer from any Person (other than Parent and its Affiliates) or “group”, within the meaning of Section 13(d) of the Exchange Act, including any amendment or modification to any existing proposal or offer, relating to, in a single transaction or series of related transactions, any (A) acquisition, purchase or license, directly or indirectly, of assets of the Acquired Companies equal to 20% or more of the Acquired Companies’ consolidated assets or to which 20% or more of the Acquired Companies’ revenues or earnings on a consolidated basis are attributable, (B) issuance, purchase or acquisition, directly or indirectly, of 20% or more of the outstanding Company Common Stock or any other equity interests of any Acquired Company (whose business constitutes 20% or more of the net revenues, net income, EBITDA or assets of the Company and its Subsidiaries, taken as a whole), (C) recapitalization, tender offer or exchange offer that if consummated would result in any Person or group beneficially owning 20% or more of the outstanding Company Common Stock or any other equity interests of any Acquired Company (whose business constitutes 20% or more of the net revenues, net income, EBITDA or assets of the Company and its Subsidiaries, taken as a whole), or (D) merger, consolidation, amalgamation, share exchange, business combination, recapitalization, liquidation, dissolution or similar transaction involving any Acquired Company that if consummated would result in any Person or group beneficially owning 20% or more of the outstanding Company Common Stock or any other equity interests of any Acquired Company (whose business constitutes 20% or more of the net revenues, net income, EBITDA or assets of the Company and its Subsidiaries, taken as a whole), in each case other than the Transaction.

Superior Offer” means an unsolicited bona fide written Acquisition Proposal that the CTG Board determines, in its good faith judgment, after consultation with outside legal counsel and its financial advisors, (A) is reasonably likely to be consummated in accordance with its terms, taking into account all legal, regulatory, financial and financing aspects (including certainty of closing) of such Acquisition Proposal and the person making such Acquisition Proposal and other aspects of such Acquisition Proposal that the CTG Board deems relevant in accordance with its good faith judgment, and (B) if consummated, would result in a transaction more favorable to CTG’s shareholders (solely in their capacity as such) from a financial point of view than the Transactions (including any changes to the terms of the Merger Agreement and the agreements contemplated by the Merger Agreement proposed by Parent pursuant to the terms thereof); provided, that for the purposes of the definition of “Superior Offer”, the references to 20% in the definitions of “Acquisition Proposal” shall be deemed to be references to 50%.

Nothing in the Merger Agreement prohibits CTG from (i) taking and disclosing to CTG’s shareholders a position contemplated by Rule 14e-2(a), Rule 14d-9 or Item 1012(a) of Regulation M-A promulgated under the Exchange Act, including any “stop, look and listen” communication pursuant to Rule 14d-9(f) promulgated

 

49


under the Exchange Act, provided that any such position or disclosure will not be deemed to permit the CTG Board to make a Company Adverse Change Recommendation (as defined below), except to the extent permitted by the Merger Agreement or (ii) making any disclosure to the shareholders of CTG if the CTG Board determines in its good faith judgment, after consulting with outside legal counsel, that a failure to make such disclosure would be inconsistent with the CTG Board’s fiduciary duties to CTG or its shareholders under applicable laws.

Recommendation Change. As described above, and subject to the provisions described below, the CTG Board has determined to recommend that the shareholders of CTG accept the Offer and tender their Shares to Merger Sub in the Offer. The foregoing recommendation is referred to herein as the “Company Board Recommendation.” The CTG Board also agreed to include the Company Board Recommendation with respect to the Offer in the Schedule 14D-9 and has permitted Merger Sub to refer to such recommendation in this Offer to Purchase and documents related to the Offer.

Except as described below, prior to the Effective Time or the termination of the Merger Agreement pursuant to its terms, neither the CTG Board nor any committee thereof may:

 

  (i)

withdraw, withhold or qualify (or modify in a manner adverse to Parent or Merger Sub) or publicly propose an intention to do any of the foregoing with respect to the Company Board Recommendation;

 

  (ii)

adopt, approve, endorse, recommend or declare advisable any Acquisition Proposal or publicly propose to take any of the foregoing actions;

 

  (iii)

after public announcement of an Acquisition Proposal (other than a tender offer or exchange offer), fail to publicly affirm the Company Board Recommendation within three (3) business days after a written request by Parent to do so (or, if earlier, by the close of business on the business day immediately preceding the scheduled date of the Offer Acceptance Time);

 

  (iv)

following the commencement of a tender offer or exchange offer relating to the Shares by a person unaffiliated with Parent, fail to affirm the Company Board Recommendation and recommend that CTG’s shareholders reject such tender offer or exchange offer within ten (10) business days after the commencement of such tender offer or exchange offer pursuant to Rule 14d-9(f) promulgated under the Exchange Act (or, if earlier, by the close of business on the business day immediately preceding the scheduled date of the Offer Acceptance Time); or

 

  (v)

fail to include the Company Board Recommendation in the Schedule 14D-9 when filed with the SEC or disseminated to CTG’s shareholders (any action described in the foregoing paragraphs (i) through (iv) is referred to as a “Company Adverse Change Recommendation”).

The Merger Agreement further provides that the CTG Board will not approve, adopt, endorse, recommend or declare advisable, or propose to approve, adopt, endorse, recommend or declare advisable, or allow CTG to execute or enter into any contract, letter of intent, agreement in principle, acquisition agreement or other contract with respect to, or that is intended to or would reasonably be expected to lead to, any Acquisition Proposal, or requiring, or reasonably expected to cause, CTG to abandon, terminate, delay or fail to consummate, or that would otherwise materially impede, interfere with or be inconsistent with, the Transactions (other than an Acceptable Confidentiality Agreement) entered into in compliance with the Merger Agreement.

At any time prior to the Offer Acceptance Time, the CTG Board may make a Company Adverse Change Recommendation in response to a Superior Offer or terminate the Merger Agreement in order to enter into an agreement with respect to such Superior Offer (provided that such Acquisition Proposal did not arise out of a breach of the non-solicitation provisions of the Merger Agreement). However, such action may only be taken if:

 

  (i)

the CTG Board determines in good faith (after consultation with its outside legal counsel) that the applicable Acquisition Proposal constitutes a Superior Offer;

 

  (ii)

the CTG Board determines in good faith (after consultation with its outside legal counsel) that the failure to take such action would be reasonably likely to be inconsistent with its fiduciary duties under applicable law;

 

50


  (iii)

CTG has given Parent prior written notice of its intention to consider making a Company Adverse Change Recommendation or terminating the Merger Agreement at least three (3) business days prior to making any such Company Adverse Change Recommendation or effecting such termination (a “Determination Notice”) and, if desired by Parent, during such three (3)-business day period has negotiated in good faith with respect to any revisions to the terms of the Merger Agreement or another proposal to the extent proposed by Parent so that such Acquisition Proposal would cease to constitute a Superior Offer; and

 

  (iv)

CTG (A) has provided, and has caused its representatives to provide, to Parent information with respect to such Acquisition Proposal, including the proposed definitive agreements (and any related agreements) among any Acquired Company and any person or group of persons making such Acquisition Proposal, (B) has given Parent the three (3)-business day period after the Determination Notice to propose revisions to the terms of the Merger Agreement or make another proposal, and (C) no earlier than the end of such three (3)-business day period, after giving effect to the proposals made by Parent during such period, if any, after consultation with financial advisers of nationally recognized reputation and outside legal counsel, the CTG Board has determined, in good faith, that such Acquisition Proposal remains a Superior Offer and that the failure to make the Company Adverse Change Recommendation in response to such Superior Offer or terminate the Merger Agreement would be reasonably likely to be inconsistent with its fiduciary duties under applicable law.

The foregoing paragraphs (i) through (iv) also apply to any change to any of the financial terms (including the form and amount of payment of consideration) or other material amendment to any Acquisition Proposal and require a new Determination Notice, except that the references to three (3) business days in the foregoing paragraphs (i) through (iv) shall be deemed to be two (2) business days.

Additionally, at any time prior to the Offer Acceptance Time, the CTG Board may, subject to compliance with the other provisions summarized under this “ — Recommendation Change” heading, effect a Company Adverse Change Recommendation in response to an Intervening Event (as defined below). However, such action may be taken only if:

 

  (i)

the action is made in response to a material fact or circumstance that was not known to the CTG Board on the date of the Merger Agreement, which fact or circumstance, or the consequence or magnitude thereof, if unknown on such date, becomes known to the CTG Board prior to the Offer Acceptance Time (an “Intervening Event”); provided that the following, individually or in the aggregate, will never constitute an Intervening Event: (a) any Acquisition Proposal or any inquiry, offer or proposal that constitutes or would reasonably be expected to lead to an Acquisition Proposal; (b) any change in the market price or trading volume of CTG’s stock or change in CTG’s credit ratings (provided that the underlying causes of any such change in price, volume or credit rating may constitute an Intervening Event to the extent not otherwise excluded by this definition); (c) CTG meeting or exceeding internal or analysts’ expectations or projections (provided that the underlying causes thereof may constitute an Intervening Event to the extent not otherwise excluded by this definition); or (d) any fact or circumstance related to the Merger Agreement or any of the Transactions;

 

  (ii)

the CTG Board determines in good faith (after consultation with its outside legal counsel) that the failure to take such action would be reasonably likely to be inconsistent with its fiduciary duties under applicable law;

 

  (iii)

CTG has given Parent a determination notice at least three (3) business days prior to making any such Company Adverse Change Recommendation, and, if desired by Parent, during such three (3)-business day period has negotiated in good faith with respect to any revisions to the terms of the Merger Agreement or another proposal to the extent proposed by Parent; and

 

  (iv)

CTG (A) has specified in reasonable detail the facts and circumstances relating to such Intervening Event that render such Company Adverse Change Recommendation necessary, (B) has given Parent

 

51


  the three (3)-business day period after such determination notice to propose revisions to the terms of the Merger Agreement or make another proposal, and (C) no earlier than the end of such three (3)-business day period, after giving effect to the proposals made by Parent during such period, if any, after consultation with outside legal counsel, the CTG Board has determined, in good faith, that the failure to make the Company Adverse Change Recommendation in response to such Intervening Event would nonetheless be reasonably be likely to be inconsistent with the fiduciary duties of the CTG Board to CTG’s shareholders under applicable law.

The foregoing paragraphs (ii) through (iv) also apply to any material change to the facts and circumstances specified in clause (iv)(A) above and require a new determination notice under clause (iv)(A) above, except that the references to three (3) business days in connection therewith above in paragraphs (ii) through (iv) shall be deemed to be two (2) business days.

Termination. The Merger Agreement may be terminated as follows:

 

  (i)

by mutual written consent of Parent and CTG at any time prior to the Offer Acceptance Time;

 

  (ii)

by either Parent or CTG, at any time prior to the Offer Acceptance Time, if the consummation of the Merger has not occurred on or prior to midnight, Eastern Time on the End Date (i.e., February 9, 2024); provided, that if on the End Date all of the Offer Conditions are satisfied or waived (other than the clearances required under the HSR Act and the applicable governmental bodies of Belgium and Luxembourg or the receipt of CFIUS Approval), then the End Date will be automatically extended by a period of ninety (90 days) and this termination right will not be available to any party whose material breach of the Merger Agreement has caused or resulted in the Offer not being consummated by such date (such termination, an “End Date Termination”);

 

  (iii)

by either Parent or CTG if a governmental body of competent jurisdiction has issued an order, injunction, decree or ruling, or taken any other action, having the effect of permanently restraining, enjoining or otherwise prohibiting the acceptance for payment of Shares pursuant to the Offer or the Merger or making the consummation of the Transactions illegal, which order, decree, ruling or other action is final and nonappealable; provided, that this termination right will not be available to any party whose material breach of the Merger Agreement has caused or resulted in the issuance of such final and nonappealable order, injunction, decree, ruling or other action;

 

  (iv)

by Parent at any time prior to the Offer Acceptance Time, in the event that any of the following has occurred: (i) the CTG Board’s failure to include the Company Board Recommendation in the Schedule 14D-9 when filed with the SEC or disseminated to CTG’s shareholders; (ii) the CTG Board has effected a Company Adverse Change Recommendation; or (iii) a tender or exchange offer, other than the Offer, relating to securities of CTG has been commenced and the CTG Board fails to recommend, in a Solicitation/Recommendation Statement on Schedule 14D-9 as promptly as practicable after (but in any event within ten (10) business days of) the commencement of such tender or exchange offer, rejection of such tender or exchange offer; or (iv) the failure of the CTG Board to publicly reaffirm the Company Board Recommendation as promptly as practicable (but in any event within three (3) business days, or, with respect to a tender offer or exchange offer subject to the preceding clause (iii), ten (10) business days) after Parent so requests in writing;

 

  (v)

by CTG, at any time prior to the Offer Acceptance Time, in order to accept, subject to compliance with the provisions summarized under “ — No Solicitation” and “ — Recommendation Change” above, a Superior Offer and substantially concurrently entered into a binding written definitive acquisition agreement providing for the consummation of a transaction which the CTG Board has determined, in good faith, constitutes a Superior Offer; provided, that this termination will only be available to CTG if (x) CTG and any Acquired Company has not committed a breach under any of the provisions summarized under “ — No Solicitation” and “ — Recommendation Change” above, and (y) CTG has paid the Termination Fee (as defined below) (such termination, a “Superior Offer Termination”);

 

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  (vi)

by Parent, at any time prior to the Offer Acceptance Time (so long as neither Parent nor Merger Sub is in material breach of any representation, warranty, covenant or obligation), if CTG has breached any of its representations or warranties or has failed to perform any of its covenants or obligations pursuant to the Merger Agreement, such that the following conditions would not be satisfied and could not be cured by CTG by the End Date, or if capable of being cured, have not been cured within thirty (30) days of receiving written notice from Parent of such breach or failure to perform (such termination, a “CTG Breach Termination”):

(A) the representations and warranties of CTG regarding corporate matters (such as organization, organizational documents, standing, qualification, power and authority), authority relative to the Merger Agreement, certain capitalization matters, takeover laws, opinion of financial advisors and brokers’ fees and expenses shall be true and accurate in all material respects (disregarding for this purpose all “Material Adverse Effect” and “materiality” qualifications contained in the foregoing representations and warranties) at and as of the date of the Merger Agreement and as of the Offer Acceptance Time as if made at and as of the Offer Acceptance Time;

(B) the representations and warranties of CTG regarding certain capitalization matters shall be true and accurate in all respects except for any de minimis inaccuracies at and as of the date of the Merger Agreement and as of the Offer Acceptance Time;

(C) the representations and warranties of CTG regarding an absence of a “Material Adverse Effect”, and non-contravention of governance documents shall be true and accurate in all respects at and as of the date of the Merger Agreement and as of the Offer Acceptance Time as if made at and as of the Offer Acceptance Time;

(D) the representations and warranties of CTG other than those set forth in paragraphs (A) through (C) above shall be true and accurate at and as of the date of the Merger Agreement and as of the Offer Acceptance Time as if made at and as of the Offer Acceptance Time, except where the failure of such representations and warranties to be so true and accurate has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; and

(E) CTG shall have complied with or performed in all material respects the obligations, covenants and agreements it is required to comply with or perform at or prior to the Offer Acceptance Time.

 

  (vii)

by CTG at any time prior to the Offer Acceptance Time (so long as CTG is not in material breach of any representation, warranty, covenant or obligation), if Parent or Merger Sub has breached any of their respective representations or warranties or has failed to perform any of their respective covenants or obligations, if such breach or failure would reasonably be expected to prevent Parent or Merger Sub from consummating the Offer and the Merger by the End Date and such breach or failure could not be cured by Parent or Merger Sub, as applicable, by the End Date, or, if capable of being cured, has not been cured within thirty (30) days receiving written notice from CTG of such breach or failure to perform;

 

  (viii)

by Parent, at any time prior to the Offer Acceptance Time in the event of any material breach of the provisions summarized under “ — No Solicitation” (such termination, a “No Solicitation Termination”);

 

  (ix)

by either Parent or CTG if the Offer has expired or has been terminated in a circumstance in which all of the Offer Conditions are satisfied or have been waived (other than the Minimum Condition and conditions which by their nature are to be satisfied at the expiration of the Offer) and where neither Merger Sub or Parent has any obligation to extend the Offer; provided, that this termination right will not be available to any party whose breach of the Merger Agreement has caused or resulted in the Offer having expired or been terminated in such manner; or

 

  (x)

by CTG if following the expiration of the Offer, Merger Sub shall have failed to accept for payment all Shares validly tendered (and not validly withdrawn) pursuant to the Offer within the period specified by the Merger Agreement after the satisfaction, or to the extent waivable by Merger Sub or Parent, waiver by Merger Sub or Parent, of each of the Offer Conditions.

 

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Effect of Termination. If the Merger Agreement is terminated pursuant to its terms, the Merger Agreement shall be of no further force or effect and there shall be no liability on the part of any party (or any of their respective former, current or future officers, directors, partners, shareholders, managers, members or affiliates) following any such termination, except that (i) certain specified provisions of the Merger Agreement will survive, including those described in “ — CTG Termination Fee” below, (ii) the Confidentiality Agreement shall survive and remain in full force and effect in accordance with its terms and (iii) termination will not relieve any party from liability for fraud or willful and material breach of the Merger Agreement.

CTG Termination Fee. CTG has agreed to pay Parent a termination fee of $7,225,000 in cash (the “Termination Fee”) if:

 

  (i)

the Merger Agreement is terminated by CTG pursuant to a Superior Offer Termination;

 

  (ii)

the Merger Agreement is terminated by Parent, at any time prior to the Offer Acceptance Time, if (a) the CTG Board has failed to include the Company Board Recommendation in the Schedule 14D-9 when filed with the SEC or disseminated to CTG’s shareholders, or shall have made a Company Adverse Change Recommendation, (b) in the case of a tender offer or exchange offer subject to Regulation 14D under the Exchange Act, other than the Offer, the CTG Board fails to recommend, in a Solicitation/Recommendation Statement on Schedule 14D-9, rejection of such tender offer or exchange offer as promptly as practicable after (but in any event within ten (10) business days of) the commencement of such tender offer or exchange offer; or (c) the CTG Board fails to publicly reaffirm the Company Board Recommendation as promptly as practicable (but in any event within three (3) business days, or, with respect to a tender offer or exchange offer subject to the preceding clause (b), ten (10) business days) after Parent so requests in writing;

 

  (iii)

(a) after the date of the Merger Agreement, an Acquisition Proposal has been become publicly known (and not withdrawn), (b) thereafter, the Merger Agreement is terminated (1) by Parent or CTG pursuant to an End Date Termination, or (2) by Parent pursuant to a CTG Breach Termination and (c) within twelve (12) months after such termination, CTG enters into a definitive agreement with respect to or consummated such Acquisition Proposal. However, for purposes of determining if the Termination Fee is payable, the term “Acquisition Proposal” has the meaning described in “ — No Solicitation” above, except that all references to “20%” are deemed to be references to “50%”; or

 

  (iv)

the Merger Agreement is terminated by Parent pursuant to a No Solicitation Termination.

In the event Parent receives the Termination Fee, such receipt will be deemed to be liquidated damages for any and all losses or damages suffered or incurred by Parent, Merger Sub, any of their respective affiliates or any other person in connection with the Merger Agreement (and the termination thereof), the Transactions (and the abandonment thereof) or any matter forming the basis for such termination, and none of Parent, Merger Sub or any of their respective affiliates will be entitled to bring or maintain any claim, action or proceeding against CTG or any of its affiliates arising out of or in connection with the Merger Agreement, any of the Transactions or any matters forming the basis for such termination, except in the case of fraud or willful and material breach of the Merger Agreement. In no event will CTG be required to pay the Termination Fee on more than one occasion.

Specific Performance. The parties have agreed that irreparable damage would occur in the event that any of the provisions of the Merger Agreement were not performed in accordance with their specific terms or were otherwise breached. The parties further agreed that the parties will be entitled to an injunction or injunctions, specific performance or other equitable relief to prevent breaches of the Merger Agreement and to enforce specifically the terms and provisions of the Merger Agreement, without proof of damages or otherwise, in addition to any other remedy to which they are entitled under the Merger Agreement.

Expenses. Except as otherwise provided in the Merger Agreement, all fees and expenses incurred by the parties in connection with the Merger Agreement and the Transactions will be paid by the party incurring such expenses, whether or not the Offer and Merger are consummated.

 

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Waiver of Claims Against Financing Sources. The parties have agreed that none of the debt financing sources will have any liability to CTG or any of its affiliates, and neither CTG nor any of its affiliates will have any rights or claims against any of the debt financing sources, in each case, relating to or arising out of the Merger Agreement, the debt financing or otherwise, whether at law, or equity, in contract, in tort or otherwise.

Offer Conditions. The Offer Conditions are described in Section 15 — “Conditions to the Offer.”

Support Agreement

In connection with entering into the Merger Agreement, Parent and Merger Sub entered into the Support Agreement with certain holders of Shares, Company Options, Company RSUs and Company PSUs (the “Supporting Shareholders”), all of which collectively own approximately 8.8% of the outstanding Shares as of August 8, 2023.

Pursuant to the Support Agreement, each Supporting Shareholder has agreed to tender in the Offer all Shares beneficially owned by such Supporting Shareholder and any and all Shares acquired by such Supporting Shareholder after the date of the Support Agreement (including any Shares acquired upon the exercise of Company Options) (collectively, the “Subject Shares”). In addition, the Supporting Shareholders have agreed, if necessary, to vote his, her or its Subject Shares:

 

   

for the adoption of the Merger Agreement, in the event any vote or consent of the shareholders of CTG is required to adopt the Merger Agreement, approve the Merger or otherwise approve any of the Transactions;

 

   

against any action or agreement that is intended or would reasonably be expected to result in a breach of any covenant, representation or warranty or any other obligation or agreement of CTG contained in the Merger Agreement, or of any Supporting Shareholder contained in the Support Agreement, or would result in any of the conditions to the Offer or Merger not being timely satisfied;

 

   

against any change in the CTG Board;

 

   

against any other acquisition proposal;

 

   

against any extraordinary corporate transaction, such as a merger, consolidation or other business combination involving CTG (other than the Merger);

 

   

against any sale, lease, license or transfer of a material amount of the business or assets (including intellectual property rights and capital stock of the subsidiaries of CTG) of any Acquired Company or any reorganization, recapitalization or liquidation of any Acquired Company;

 

   

against any change in the present authorized capitalization of CTG or any amendment or other change to CTG’s certificate of incorporation, bylaws and any other charter and organizational documents, including any amendment that would authorize any additional shares or classes of shares of capital stock or change in any manner the rights and privileges, including voting rights, of any class of CTG’s capital stock;

 

   

against any other plan, proposal, arrangement, action, agreement or transaction involving any Acquired Company that is intended, or would reasonably be expected, to impede, interfere with, delay, postpone, adversely affect or prevent the consummation of the Offer, the Merger or the other Transactions; and

 

   

against any commitment or agreement to take any action inconsistent with any of the preceding clauses herein.

Each Supporting Shareholder also granted Parent an irrevocable proxy with respect to the foregoing.

The Supporting Shareholders further agreed to certain restrictions with respect to their Subject Shares, including restrictions on transfer.

 

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The Support Agreement will terminate with respect to a particular Supporting Shareholder upon the first to occur of (i) the valid termination of the Merger Agreement in accordance with its terms, (ii) the Effective Time, (iii) the termination of the Support Agreement by written notice from Parent to the Supporting Shareholders, (iv) the mutual written consent of Parent and the Supporting Shareholder, or (v) an amendment, waiver or modification of the Merger Agreement resulting in (A) a decrease in the face value or a change in the form of the Offer Price, (B) an extension of the End Date (other than in accordance with the Merger Agreement) or (C) the imposition of conditions to the Offer other than those set forth in the Merger Agreement.

The foregoing description of the Support Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Support Agreement which is filed as Exhibit (d)(4) of the Schedule TO.

Nondisclosure Agreement

Effective as of November 4, 2022, CTG and Parent entered into a customary nondisclosure agreement in connection with a possible transaction involving CTG. Under the nondisclosure agreement, Parent agreed, subject to certain exceptions, to keep confidential any confidential information concerning CTG furnished by CTG to Parent or its representatives. The foregoing description of the nondisclosure agreement does not purport to be complete and is qualified in its entirety by reference to the full text nondisclosure agreement filed as Exhibit (d)(3) of the Schedule TO.

12. Purpose of the Offer; Plans for CTG.

Purpose of the Offer. The purpose of the Offer is for Merger Sub to acquire control of, and the entire equity interest in, CTG. The Offer, as the first step in the acquisition of CTG, is intended to facilitate the acquisition of all outstanding Shares. The purpose of the Top-Up Option is to facilitate the Merger. The purpose of the Merger is to acquire all outstanding Shares not tendered and purchased pursuant to the Offer. If the Offer is successful, Merger Sub intends to consummate the Merger as promptly as practicable in accordance with Section 905(a) of the NYBCL.

If you sell your Shares in the Offer, you will cease to have any equity interest in CTG or any right to participate in its earnings and future growth. If you do not tender your Shares, but the Merger is consummated, you also will no longer have an equity interest in CTG. Similarly, after selling your Shares in the Offer or the subsequent Merger, you will not bear the risk of any decrease in the value of CTG.

Merger Without a Shareholder Vote. If the Offer is consummated and we acquire at least 90% of the Shares in the Offer (including pursuant to the Top-Up Option, see Section 1 — “Terms of the Offer”), we will not seek the approval of the remaining public shareholders of CTG before effecting the Merger under Section 905(a) of the NYBCL without a shareholders meeting and without action by the Company’s shareholders.

Plans for CTG. As soon as practicable after the consummation of the Merger, Parent will integrate the business, operations and assets of CTG with Parent’s existing business. The common stock of CTG will be delisted and will no longer be quoted on NASDAQ.

To the best knowledge of Parent, except as set forth below and other agreements between CTG and its executive officers and directors described in this Schedule TO and the Schedule 14D-9, there were, as of the date hereof, no employment, equity contribution or other agreements, arrangements or understandings between any executive officer or director of CTG, on the one hand, and Parent, Merger Sub, any of their affiliates or CTG, on the other hand, and neither the Offer nor the Merger is conditioned upon any executive officer or director of CTG entering into any such agreement, arrangement or understanding.

 

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13. Certain Effects of the Offer.

If, as a result of the Offer (including through the exercise of the Top-Up Option), Merger Sub and Parent collectively own Shares representing at least one Share more than 90% of the then outstanding Shares, Parent, Merger Sub and CTG will, subject to the satisfaction or waiver of the remaining conditions set forth in the Merger Agreement, consummate the Merger under the provisions of Section 905(a) of the NYBCL without prior notice to, or any action by, any other shareholder of CTG as soon as practicable following (but in any event on the same date as) the Offer Acceptance Time except if the conditions to the Merger set forth in the Merger Agreement are not satisfied or, to the extent permissible by applicable laws, waived as of such date, in which case on the first business day on which all conditions to the Merger set forth in the Merger Agreement are satisfied or, to the extent permissible by applicable laws, waived.

Market for the Shares. If the Offer is successful, there will be no market for the Shares because Merger Sub intends to consummate the Merger as promptly as practicable following the Offer Closing.

Stock Quotation. The Shares are currently listed on NASDAQ. Immediately following the consummation of the Merger (which is expected to occur as soon as practicable following (but in any event on the same date as) the Offer Acceptance Time), the Shares will no longer meet the requirements for continued listing on NASDAQ because there will only be one shareholder of the Surviving Corporation. NASDAQ requires, among other things, that any listed shares of common stock have at least 400 total shareholders. Immediately following the consummation of the Merger, we intend and will cause CTG to delist the Shares from NASDAQ.

Margin Regulations. The Shares are currently “margin securities” under the Regulations of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), which has the effect, among other things, of allowing brokers to extend credit on the collateral of the Shares. Depending upon factors similar to those described above regarding the market for the Shares and stock quotations, it is possible that, following the Offer, the Shares would no longer constitute “margin securities” for the purposes of the margin regulations of the Federal Reserve Board and, therefore, could no longer be used as collateral for loans made by brokers.

Exchange Act Registration. The Shares are currently registered under the Exchange Act. Such registration may be terminated upon application of CTG to the SEC if the Shares are neither listed on a national securities exchange nor held by 300 or more holders of record. Termination of registration of the Shares under the Exchange Act would substantially reduce the information required to be furnished by CTG to its shareholders and to the SEC and would make certain provisions of the Exchange Act no longer applicable to CTG, such as the short-swing profit recovery provisions of Section 16(b) of the Exchange Act, the requirement of furnishing a proxy statement pursuant to Section 14(a) of the Exchange Act in connection with shareholders’ meetings and the related requirement of furnishing an annual report to shareholders and the requirements of Rule 13e-3 under the Exchange Act with respect to “going private” transactions. Furthermore, the ability of “affiliates” of CTG and persons holding “restricted securities” of CTG to dispose of such securities pursuant to Rule 144 promulgated under the Securities Act of 1933, as amended, may be impaired or eliminated. We intend and will cause CTG to terminate the registration of the Shares under the Exchange Act as soon after consummation of the Offer as the requirements for termination of registration are met. If registration of the Shares is not terminated prior to the Merger, the registration of the Shares under the Exchange Act will be terminated following the consummation of the Merger.

14. Dividends and Distributions.

The Merger Agreement provides that from the date of the Merger Agreement to the Effective Time, without the prior written consent of Parent, CTG will not declare, set aside or pay any dividend or make any other distribution in respect of any shares of its capital stock or ordinary shares (including the Shares) or set a record date therefor.

 

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15. Conditions to the Offer.

The obligation of Merger Sub to accept for payment and pay for Shares validly tendered (and not validly withdrawn) pursuant to the Offer is subject to the satisfaction of the conditions set forth in clauses (a) through (l) below. Notwithstanding any other provisions of the Offer or the Merger Agreement to the contrary and subject to any applicable rules and regulations of the SEC including Rule 14e-1(c) of the Exchange Act, Merger Sub is not required to accept for payment or pay for, and may delay the acceptance for payment of, or the payment for, any tendered Shares, and, to the extent permitted by the Merger Agreement, may terminate the Offer (i) upon termination of the Merger Agreement; and (ii) at any scheduled Expiration Date (subject to any extensions of the Offer), if: (A) the Minimum Condition (described in clause (a) below), the Termination Condition (described in clause (l) below), the Regulatory Condition (described in clause (h) below), the Governmental Impediment Condition (described in clause (j) below) and the conditions described in clause (k) below shall not be satisfied at one minute after 11:59 P.M., Eastern Time on the Expiration Date; or (B) any of the additional conditions described below has not been satisfied or waived in writing by Parent at or prior to the expiration of the Offer (except for conditions relating to governmental regulatory approvals):

 

  a.

the number of Shares validly tendered in accordance with the terms of the Offer and not validly withdrawn on or prior to one minute after 11:59 P.M., Eastern Time on the Expiration Date, together with all other Shares (if any) beneficially owned by Parent and its affiliates, equals one Share more than 66 2/3% of the sum of (i) the total number of Shares outstanding at the time of the expiration of the Offer, plus (ii) the total number of Shares that the Company is required to issue upon conversion, settlement, exchange or exercise of all options, warrants, rights or securities for which the holder has, by the time of the expiration of the Offer, elected to convert, settle, exchange or exercise or for which the conversion, settlement, exchange or exercise date has already occurred (but without duplication);

 

  b.

the representations and warranties of CTG set forth in Sections 3.1 (Due Organization; Subsidiaries, Etc.), 3.2 (Certificate of Incorporation and Bylaws), 3.3(b) and 3.3(e) (Capitalization, Etc.), 3.20 (Authority; Binding Nature of Agreement), 3.21 (Takeover Laws), 3.24 (Opinion of Financial Advisors) and 3.25 (Brokers and Other Advisors) of the Merger Agreement are true and accurate in all respects (in each case, disregarding for this purpose all “Material Adverse Effect” and “materiality” qualifications contained in such representations and warranties) as of the date of the Merger Agreement and at and as of the Offer Acceptance Time (except to the extent any such representation or warranty expressly relates to an earlier date or period, in which case as of such date or period);

 

  c.

the representations and warranties of the Company set forth in Sections 3.3(a), 3.3(c), and 3.3(d) (Capitalization, Etc.) of the Merger Agreement are true and accurate in all respects except for any de minimis inaccuracies at and as of the date of the Merger Agreement and at and as of the Offer Acceptance Time as if made on and as of the Offer Acceptance Time (except to the extent any such representation or warranty expressly relates to an earlier date or period, in which case as of such date or period);

 

  d.

the representations and warranties of the Company set forth in Section 3.5(b) (Absence of Changes; No Material Adverse Effect) and 3.22(a)(i) (Non-Contravention; Consents) of the Merger Agreement are true and accurate in all respects at and as of the date of the Merger Agreement and at and as of the Offer Acceptance Time as if made on and as of the Offer Acceptance Time (except to the extent any such representation or warranty expressly relates to an earlier date or period, in which case as of such date or period);

 

  e.

the representations and warranties of the Company set forth in the Merger Agreement (other than those referred to in clauses (b), (c) and (d) above) are true and accurate (disregarding for this purpose all “Material Adverse Effect” and “materiality” qualifications contained in such representations and warranties) as of the date of the Merger Agreement and at and as of the Offer Acceptance Time as if made on and as of the Offer Acceptance Time (except to the extent any such representation or warranty expressly relates to an earlier date or period, in which case as of such date or period), except where the failure of such representations and warranties to be so true and accurate has not had, and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

 

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  f.

CTG has performed or complied with in all material respects the obligations, agreements or covenants it is required to perform or comply with under the Merger Agreement on or prior to the Offer Acceptance Time;

 

  g.

since the date of the Merger Agreement, there has not occurred any event, occurrence, circumstance, change or effect which, individually or in the aggregate, has had, or would reasonably be expected to have, a Material Adverse Effect;

 

  h.

(i) any waiting period (or any extension thereof) applicable to the Offer under the HSR Act shall have expired or been terminated and (ii) the applicable governmental bodies of competent jurisdiction in Belgium and Luxembourg have granted merger control or other applicable regulatory clearance, or failed to render a decision within the applicable waiting period under relevant law and such failure is considered under such law to be a grant of all requisite approvals, consents or clearances under such law to effectuate the Transactions, or provided confirmation that a merger control filing obligation is not triggered as a result of the Transactions;

 

  i.

Parent and Merger Sub have received a certificate executed on behalf of the Company by the chief executive officer and the chief financial officer of the Company confirming that the conditions set forth in paragraphs (b) through (g) above have been satisfied;

 

  j.

there has not been issued any judgment, temporary restraining order, preliminary or permanent injunction or other order, decree or ruling, which remains in effect, by any governmental body of competent jurisdiction restraining, enjoining or otherwise preventing the acquisition of or payment for Shares pursuant to the Offer or the consummation of the Transactions nor shall any laws have been promulgated, enacted, issued or deemed applicable to any of the Transactions and there has been no action taken or any law promulgated, enacted, enforced, issued or deemed applicable to any of the Transactions by any governmental body which prohibits or makes illegal the acquisition of or payment for Shares pursuant to the Offer or the consummation of the Merger;

 

  k.

the Merger Agreement has not been terminated in accordance with its terms; and

 

  l.

CFIUS Approval shall have been received.

The foregoing conditions are for the sole benefit of Parent and Merger Sub, and, subject to the terms of the Merger Agreement and the applicable rules and regulations of the SEC, may be asserted by Parent or Merger Sub regardless of the circumstances giving rise to any such conditions, and (except for the Minimum Condition and the Termination Condition) may be waived by Parent or Merger Sub, in whole or in part, in their sole discretion at any time and from time to time prior to the expiration of the Offer; provided that Parent and Merger Sub will promptly waive the condition set forth above in clause (l) if (a) all of the other conditions set forth above are satisfied or waived by Parent or Merger Sub, to the extent waivable by Parent or Merger Sub (other than conditions that by their nature are to be satisfied at the Offer Acceptance Time, each of which is then capable of being satisfied) and (b) such waiver of the condition in clause (l) above would not adversely affect, or would reasonably be expected to adversely affect, Parent or any of its subsidiaries, including the Surviving Corporation following the Effective Time, as determined by Parent in its reasonable judgment. The failure by Parent or Merger Sub at any time to exercise any of the foregoing rights will not be deemed a waiver of any such right and each such right will be deemed an ongoing right which may be asserted at any time and from time to time (except for conditions relating to governmental regulatory approvals).

Merger Sub expressly reserves the right to (i) increase the Offer Price, (ii) waive any Offer Condition, (iii) make any other changes in the terms and conditions to the Offer that are not inconsistent with the terms of the Merger Agreement and (iv) terminate the Offer if the conditions to the Offer are not satisfied and the Merger Agreement is terminated. However, without the prior written consent of CTG, Parent and Merger Sub may not (i) decrease the Offer Price, (ii) change the form of consideration payable in the Offer, (iii) decrease the maximum number of Shares sought to be purchased in the Offer, (iv) impose conditions or requirements to the Offer in addition to the Offer Conditions, (v) amend, modify or waive the Minimum Condition, the Termination

 

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Condition, the Regulatory Condition or the Governmental Impediment Condition, (vi) otherwise amend or modify any of the other terms of the Offer in a manner that adversely affects, or would reasonably be expected to adversely affect, any holder of Shares in its capacity as such, (vii) terminate the Offer or accelerate, extend or otherwise change the Expiration Date except as provided in the Merger Agreement or (viii) provide any “subsequent offering period” (or any extension thereof) within the meaning of Rule 14d-11 promulgated under the Exchange Act.

16. Certain Legal Matters; Regulatory Approvals.

General. Except as described in this Section 16, based on our examination of publicly available information filed by CTG with the SEC and other information concerning CTG, we are not aware of any governmental license or regulatory permit that appears to be material to CTG’s business that might be adversely affected by our acquisition of Shares as contemplated herein or of any approval or other action by any governmental, administrative or regulatory authority or agency, domestic or foreign, that would be required for the acquisition or ownership of Shares by Merger Sub or Parent as contemplated herein. Should any such approval or other action be required, we currently contemplate that, except as described below under “State Takeover Laws,” such approval or other action will be sought. While we do not currently intend to delay acceptance for payment of Shares tendered pursuant to the Offer pending the outcome of any such matter, there can be no assurance that any such approval or other action, if needed, would be obtained or would be obtained without substantial conditions or that if such approvals were not obtained or such other actions were not taken, adverse consequences might not result to CTG’s business, any of which under certain conditions specified in the Merger Agreement, could cause us to elect to terminate the Offer without the purchase of Shares thereunder under certain conditions. See Section 15 — “Conditions to the Offer.”

Compliance with the HSR Act. Under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), and the related rules and regulations promulgated thereunder, certain transactions may not be consummated until specified information and documentary material have been furnished to the Federal Trade Commission and the Antitrust Division of the U.S. Department of Justice, and certain waiting period requirements have been satisfied. The requirements of the HSR Act do not apply to either the acquisition of Shares in the Offer or to the Merger because the acquisition of the Company’s non-US entities and assets is exempt and Parent has determined, in good faith, that the fair market value of the Company’s U.S. entities and assets is below the applicable reportability threshold.

Compliance with CFIUS.

Each of CTG, Parent and Merger Sub has agreed to use its respective reasonable best efforts to obtain CFIUS Approval prior to the initial End Date, including using their respective reasonable best efforts to: (i) as soon as practicable, and not later than fifteen (15) business days after the date of the Merger Agreement, file a draft CFIUS Notice in connection with CFIUS Approval in accordance with the DPA, (ii) promptly (and not later than five (5) business days) file a final CFIUS Notice in accordance with the DPA after receipt of comments from CFIUS to the draft CFIUS Notice or confirmation by CFIUS that it has no comments to the draft CFIUS Notice, (iii) promptly and, in all events consistent with any deadline imposed by CFIUS or pursuant to other applicable law, comply with any request received by it from any governmental body for any certification, additional information, documents or other materials in respect of such CFIUS Notice, (iv) undertake reasonable efforts to cooperate in all respects with each other in connection with the drafting and filing of the draft and final CFIUS Notice and in providing any information requested by CFIUS or any other agency or branch of the U.S. government in connection with the CFIUS review or investigation of the Transactions within the timeframes set forth in the DPA; (v) promptly inform each other of any material communication with CFIUS; and (vi) permit each other to review any communication by the other, and consult with the other in advance of any planned meeting or conference, with CFIUS, and, to the extent permitted by CFIUS, grant each other the opportunity to attend and participate in any such planned meeting or conference, except that neither Parent nor CTG shall be

 

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obligated to disclose to the other any communication to CFIUS that Parent or CTG considers to be proprietary or confidential or that would violate any applicable laws. Parent and CTG will use their respective reasonable best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with each other in doing, all commercially reasonable actions necessary, proper, or advisable to obtain CFIUS Approval. The exercising of “reasonable best efforts” will in no event require the parties, as a condition to obtaining CFIUS Approval, to take any action that may limit Parent’s freedom of action with respect to CTG, or to sell, divest or hold separate or take any other action with respect to any assets, businesses, or interests in any assets or businesses of the parties (or to consent to any sale, divestiture or holding separate, or agreement to sell, divest or hold separate by the parties of any of their assets, businesses or interests in any of their assets or businesses). Parent is responsible for 100% of the CFIUS filing fee required.

Foreign Regulatory Filings in Luxembourg and Belgium

Luxembourg Supervision Commission of the Financial Sector. The acquisition of Shares pursuant to the Offer is subject to the approval of the Luxembourg Supervision Commission of the Financial Sector (the “CSSF”). One of CTG’s subsidiaries, Computer Task Group Luxembourg PSF S.A., a public limited liability company (société anonyme) with registered address at 10A, Zone Industrielle de Bourmicht, L — 8070 Bertrange, Grand Duchy of Luxembourg and registered with the Register of Commerce and Companies under number B 56109, is registered with the CSSF as a Support PFS (support professional of the financial sector) under number I00000022 and is thus a regulated entity under the Law of 5 April 1993 on the financial sector, as amended (the “Financial Sector Law”). According to the Financial Sector Law, any proposed acquirer who has decided to either: (i) acquire, directly or indirectly a qualifying holding (i.e. an undertaking which represents 10% or more of the capital or of the voting rights) in a Support PFS, or (ii) to further increase, directly or indirectly such qualifying holding as a result of which the proportion of the voting rights or of the capital held would reach or exceed 20%, 33 1/3% or 50% or so that the Support PFS would become such person’s subsidiary, is required to first notify in writing such decision to the CSSF and is required to indicate the size of the intended holding and relevant information required by the CSSF under the Financial Sector Law. The CSSF has a maximum of three (3) months from the date of receipt of the completed notification, including its annexes, to carry out the assessment and oppose to the envisaged acquisition.

Belgian Competition Authority. The acquisition of Shares pursuant to the Offer is subject to the approval of the Belgian Competition Authority (the “BCA”) as the parties’ turnover in Belgium exceeds the relevant turnover thresholds in accordance with the Belgian Act on Economic Law (Book IV) (“Act”). According to this Act, any proposed acquisition of control over another company must be notified to the BCA if the relevant turnover thresholds are exceeded (i.e., when the parties have achieved in Belgium, in the previous financial year, a turnover of at least EUR 40 million individually and EUR 100 million combined). The procedure is suspensory in nature and the transaction can thus not be implemented until approval has been obtained from the BCA. From formal notification, the BCA has a review period of 15 working days in case of a simplified procedure, and 40 working days in case of a standard procedure. This review period can be extended by the BCA.

New York Short-Form Merger Statute. Assuming completion of the Offer and subject to the terms of the Merger Agreement, the Merger will be completed under the NYBCL. It is intended that the Merger will be effected pursuant to the short-form merger provisions contained in Section 905(a) of the NYBCL. Under Section 905(a) of the NYBCL, a domestic parent corporation owning 90% or more of the outstanding shares of each class of a subsidiary corporation may merge itself with the subsidiary corporation without the approval of the subsidiary’s shareholders, subject to compliance with New York law. If, following the completion of the Offer, any exercise of the Top-Up Option, or any other acquisition of Shares, Merger Sub obtains ownership of more than 90% of the outstanding Shares (other than treasury shares or Shares in trust accounts, managed accounts and the like, or otherwise held in a fiduciary or agency capacity for the benefit of its customers or clients), as the owner of 90% or more of the outstanding Shares and thereby as the “parent corporation” of CTG, expects to merge with and into CTG pursuant to Section 905(a) of the NYBCL. A merger that is completed in accordance with the requirements of Section 905(a) does not require approval of the board of directors or

 

61


shareholders of the subsidiary (in this case, CTG). Accordingly, the approval of the CTG shareholders to the Merger would not be required in that context. Assuming Merger Sub owns sufficient Shares, to utilize Section 905(a) of the NYBCL, Merger Sub intends to file the Certificate of Merger with the Department in accordance with New York law after the Offeror becomes the owner of 90% or more of the outstanding Shares and expects that the Effective Time will occur immediately upon the filing of the Certificate of Merger with the Department.

State Takeover Laws. A number of states (including New York, where CTG is incorporated) have adopted takeover laws and regulations which purport, to varying degrees, to be applicable to attempts to acquire securities of corporations which are incorporated in such states or which have substantial assets, stockholders, principal executive offices or principal places of business therein.

In general, Section 912 of the NYBCL prevents a New York corporation from engaging in a “business combination” (defined to include mergers and certain other actions) with an “interested shareholder” (including a person who owns or has the right to acquire 20% or more of a corporation’s outstanding voting stock) for a period of five years following the time such person became an “interested shareholder” unless, among other things, the “business combination” is approved by the board of directors of such corporation before such person became an “interested shareholder.” The Company Board has approved the Merger Agreement, the Tender and Support Agreement and the transactions contemplated thereby, including the Offer and the Merger, for purposes of Section 912 of the NYBCL.

Additionally, Section 1602(a) of the NYBCL provides that no offeror shall make a takeover bid unless as soon as practicable on the date of commencement of the takeover bid it files with the attorney general of New York and delivers to the target company a registration statement containing the information required by Section 1603 of the NYBCL. “Takeover bid” means the acquisition of or offer to acquire by an offeror from an offeree, pursuant to a tender offer or request or invitation for tenders, any equity security of a target company, if after acquisition thereof the offeror would, directly or indirectly, be a beneficial owner of more than five percent of any class of the issued and outstanding equity securities of such target company.

Except as set forth in this Offer to Purchase, neither Merger Sub nor Parent has present plans or proposals that would relate to or result in any material impact on the residents of New York state. See Section 12 — “Purpose of the Offer; Plans for CTG.” Merger Sub is a newly formed entity with no employees or employee benefit programs and no history of labor relations, earnings growth or charitable or civic activities in New York or elsewhere. Given the foregoing and the disclosure throughout the Offer to Purchase, we believe that this Offer to Purchase complies with the requirements of Section 1603 of the NYBCL.

CTG conducts business in a number of states throughout the United States, some of which have enacted takeover laws. We do not know whether any of these laws will, by their terms, apply to the Offer or the Merger and have not attempted to comply with any such laws. Should any person seek to apply any state takeover law, we will take such action as then appears desirable, which may include challenging the validity or applicability of any such statute in appropriate court proceedings. In the event any person asserts that the takeover laws of any state are applicable to the Offer or the Merger, and an appropriate court does not determine that it is inapplicable or invalid as applied to the Offer or the Merger, we may be required to file certain information with, or receive approvals from, the relevant state authorities. In addition, if enjoined, we may be unable to accept for payment any Shares tendered pursuant to the Offer, or be delayed in continuing or consummating the Offer and the Merger. In such case, we may not be obligated to accept for payment any Shares tendered in the Offer. See Section 15 — “Conditions to the Offer.”

Going Private Transactions. The SEC has adopted Rule 13e-3 under the Exchange Act, which is applicable to certain “going private” transactions, and which may under certain circumstances be applicable to the Merger or other business combination following the purchase of Shares pursuant to the Offer in which we seek to acquire the remaining Shares not then held by us. We believe that Rule 13e-3 under the Exchange Act will not be

 

62


applicable to the Merger because we were not, at the time the Merger Agreement was executed, and are not, an affiliate of CTG (for purposes of the Exchange Act); it is anticipated that the Merger will be effected as soon as practicable after the consummation of the Offer; and, in the Merger, shareholders will receive the same price per Share as the Offer Price.

Shareholder Approval Not Required. Sections 905(a) of the NYBCL provides that shareholder approval of a merger is not required if certain requirements are met, including that (1) the acquiring company consummates a tender offer for any and all of the outstanding common stock of the company to be acquired that, absent Section 905(a) of the NYBCL, would be entitled to vote on the merger, and (2) following the consummation of such tender offer, the acquiring company owns at least such percentage of the stock of the company to be acquired that, absent Section 905(a) of the NYBCL, would be required to adopt the merger. If the Minimum Condition is satisfied and we accept Shares for payment pursuant to the Offer, we will hold a sufficient number of Shares to ensure that CTG will not be required to submit the adoption of the Merger Agreement to a vote of the shareholders of CTG. Following the consummation of the Offer and subject to the satisfaction of the remaining conditions set forth in the Merger Agreement, Parent, Merger Sub and CTG will take all necessary and appropriate action to effect the Merger as promptly as practicable without a vote of shareholders of CTG in accordance with Section 905(a) of the NYBCL.

17. Appraisal Rights.

No appraisal rights are available with respect to Shares tendered and accepted for purchase in the Offer or the Merger. However, if the Merger is consummated, shareholders who do not tender their Shares in the Offer will have certain rights under Section 910 of the NYBCL to demand exercise of appraisal rights, and to receive payment in cash of the fair value of, their Shares. Such appraisal rights, if the statutory procedures are met, could lead to a judicial determination of the fair value of the Shares, as of the close of business on the day prior to the shareholders’ authorization date, required to be paid in cash to such holders asserting appraisal rights for their Shares. In addition, such shareholder asserting appraisal rights could be entitled to receive payment of interest on the amount determined to be the fair value of their Shares. In fixing the fair value of the shares, the New York court will consider the nature of the transaction giving rise to the shareholder’s right to receive payment for shares and its effects on the corporation and its shareholders, the concepts and methods then customary in the relevant securities and financial markets for determining fair value of shares of a corporation engaging in a similar transaction under comparable circumstances and all other relevant factors. Accordingly, such determination could be based upon considerations other than, or in addition to, the market value of the Shares, including, among other things, asset values, investment value and earning capacity. Therefore, the value so determined in any appraisal proceeding could be the same as, or more or less than, the Offer Price.

If any holder of Shares who is entitled to appraisal rights under New York law demands exercise of appraisal rights but fails to perfect, or effectively withdraws or loses his, her or its rights to appraisal as provided under New York law, each Share of such shareholder will be converted in the Merger into the right to receive the Offer Price. A shareholder may withdraw his, her or its demand for exercise of appraisal rights by delivering to CTG a written withdrawal of his, her or its demand for exercise of appraisal rights and acceptance of the Merger.

If you sell your Shares in the Offer, you will not be entitled to exercise appraisal rights with respect to your Shares but, rather, will receive the Offer Price for each of your Shares.

Failure to follow the steps required by Sections 910 and 623 of the NYBCL for perfecting appraisal rights may result in the loss of any such rights. Any references in this Offer to Purchase to appraisal rights of a shareholder of the Company do not purport to be a complete statement of, and are qualified in their entirety by reference to, Sections 623 and 910 of the NYBCL.

 

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18. Fees and Expenses

Parent has retained Georgeson to be the Information Agent and Computershare Trust Company, N.A. to be the Depositary in connection with the Offer. The Information Agent may contact holders of Shares by mail, telephone, telecopy, telegraph and personal interview and may request banks, brokers, dealers and other nominees to forward materials relating to the Offer to beneficial owners of Shares.

The Information Agent and the Depositary each will receive reasonable and customary compensation for their respective services in connection with the Offer, will be reimbursed for reasonable out-of-pocket expenses and will be indemnified against certain liabilities and expenses in connection therewith, including certain liabilities under federal securities laws.

Neither Parent nor Merger Sub will pay any fees or commissions to any broker or dealer or to any other person (other than to the Depositary and the Information Agent) in connection with the solicitation of tenders of Shares pursuant to the Offer. Brokers, dealers, commercial banks and trust companies will, upon request, be reimbursed by Merger Sub for customary mailing and handling expenses incurred by them in forwarding offering materials to their customers. In those jurisdictions where applicable laws require the Offer to be made by a licensed broker or dealer, the Offer shall be deemed to be made on behalf of Merger Sub by one or more registered brokers or dealers licensed under the laws of such jurisdiction to be designated by Merger Sub.

19. Miscellaneous

The Offer is being made to all holders of Shares. We are not aware of any jurisdiction in which the making of the Offer or the acceptance thereof would be prohibited by securities, “blue sky” or other valid laws of such jurisdiction. If we become aware of any U.S. state in which the making of the Offer or the acceptance of Shares pursuant thereto would not be in compliance with an administrative or judicial action taken pursuant to a U.S. state statute, we will make a good faith effort to comply with any such law. If, after such good faith effort, we cannot comply with any such law, the Offer will not be made to (nor will tenders be accepted from or on behalf of) the holders of Shares in such state. In any jurisdictions where applicable laws require the Offer to be made by a licensed broker or dealer, the Offer shall be deemed to be made on behalf of Merger Sub by one or more registered brokers or dealers licensed under the laws of such jurisdiction to be designated by Merger Sub.

No person has been authorized to give any information or to make any representation on behalf of Parent or Merger Sub not contained herein or in the Letter of Transmittal, and, if given or made, such information or representation must not be relied upon as having been authorized. No broker, dealer, bank, trust company, fiduciary or other person shall be deemed to be the agent of Merger Sub, the Depositary or the Information Agent for the purpose of the Offer.

Merger Sub has filed with the SEC a Tender Offer Statement on Schedule TO pursuant to Rule 14d-3 of the General Rules and Regulations under the Exchange Act, together with exhibits furnishing certain additional information with respect to the Offer, and may file amendments thereto. CTG has advised Merger Sub that it will file with the SEC on the date on which Parent and Merger Sub file documents with respect to the Offer its Solicitation/Recommendation Statement on Schedule 14D-9 setting forth the recommendation of the CTG Board with respect to the Offer and the reasons for such recommendation and furnishing certain additional related information. A copy of such documents, and any amendments thereto, may, when filed, be examined at, and copies may be obtained from, the SEC in the manner set forth under Section 7 — “Certain Information Concerning CTG” above.

Chicago Merger Sub, Inc.

August 23, 2023

 

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SCHEDULE I — INFORMATION RELATING TO PARENT AND MERGER SUB

Parent

The following table sets forth information about Parent’s directors and executive officers as of August 23, 2023. The current business address of each person is Cegeka Groep NV, Corda3, Kempische Steenweg 307 B-3500 Hasselt, Belgium, and the business telephone number is +32 11 24 02 34.

 

Name    Present Principal Occupation or Employment;
Material Positions Held During the Last Five Years;
Citizenship (if not United States)
André Knaepen, permanent representative of Sofin BV1    Mr. Knaepen is the Founder and Chairman of the Board of Cegeka, a role he has served in for the previous five years. Mr. Knaepen is a citizen of Belgium.
Harm Laitem, permanent representative of Hafin Consult BV2    Mr. Laitem is a Non-Executive Director of Cegeka. He also currently serves as an independent financial advisor and as a member of the Supervisory Board at In2Action Capital. From February 2020 to February 2021, he served as the Head of Private Banking Flanders at Degroof Petercam. Mr. Laitem is a citizen of Belgium.
Jacques Purnode, permanent representative of Cepholli NV3    Mr. Purnode is a Non-Executive Director of Cegeka and the Chairman of the Audit Committee. From July 2013 to March 2019, he served as the CFO of Ontex NV. Mr. Purnode is a citizen of Belgium.
Nick Medaer    Mr. Medaer is a Non-Executive Director of Cegeka. He currently serves as a Partner, Smart Industries, at GIMV, for which he serves as a board member for multiple portfolio companies. Mr. Medaer is a citizen of Belgium.
Sam Wuytens, permanent representative of Cegeka Holding NV4    Mr. Wuytens is an Executive Director of Cegeka as well as an Account Manager, where he has served since April 2022. He previously served as Account Manager Outsourcing at Cegeka from January 20219 to April 2020. He currently also serves on the board of directors of Smartschool and Secundair Onderwijs Sint-Quintinus. Mr. Wuytens is a citizen of Belgium.

 

1 

Sofin BV, a company incorporated in Belgium, is a director of Cegeka. André Knaepen, a Belgian citizen, is the permanent representative of Sofin BV on the board of directors of Cegeka.

2 

Hafin Consult BV, a company incorporated in Belgium, is a director of Cegeka. Harm Laitem, a Belgian citizen, is the permanent representative of Hafin Consult BV on the board of directors of Cegeka.

3 

Cepholli NV, a company incorporated in Belgium, is a director of Cegeka. Jacques Purnode, a Belgian citizen, is the permanent representative of Cepholli NV on the board of directors of Cegeka.

4 

Cegeka Holding NV, a company incorporated in Belgium, is a director of Cegeka. Sam Wuytens, a Belgian citizen, is the permanent representative of Cegeka Holding NV on the board of directors of Cegeka.

 

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Sonja Nouwen, permanent representative of ANSA NV5    Ms. Nouwen is a Non-Executive Director of Cegeka, a position she has held for the past five years. Ms. Nouwen is a citizen of Belgium.
Stephan Daems, permanent representative of Esdacon BV6    Mr. Daems is an Executive Director and the CFO of Cegeka. He has served as the CFO of Cegeka since 1997. Mr. Daems is a citizen of Belgium.
Stijn Bijnens, permanent representative of ID&D NV7    Mr. Bijnens is an Executive Director and the CEO of Cegeka. He has served as the CEO of Cegeka since 2019. From December 2007 to December 2019, he served as the CEO of LRM NV. Mr. Bijnens is a citizen of Belgium.
Tom Knaepen, permanent representative of Tovi BV8    Mr. Knaepen is an Executive Director and the Global VP of Applications of Cegeka, a role he has been serving in since January 2019. He previously served as COO of Applications with Cegeka. Mr. Knaepen is a citizen of Belgium.
Tom Van de Voorde    Mr. Van de Voorde is a Non-Executive Director and has served in this capacity since October 2017. He serves as the Managing Partner, Smart Industries, at GIMV and as the Managing Director of L II Capital. He also serves as a board member for several other companies. Mr. Van de Voorde is a citizen of Belgium.
Wendy Knaepen, permanent representative of WKC BV9    Ms. Knaepen is an Executive Director, serving in this capacity since May 2017. She previously served as Business Development Smart Cities, Brand Director and Director of Business Development with Cegeka. Ms. Knaepen is a citizen of Belgium.
Geert Rottier    Mr. Rottier is the Chief Marketing Officer of Cegeka since January 2023. He previously served as Director of Enterprise Segments and Director of Corporate Market at Proximus. Mr. Rottier is a citizen of Belgium.

 

5 

ANSA NV, a company incorporated in Belgium, is a director of Cegeka. Sonja Nouwen, a Belgian citizen, is the permanent representative of ANSA NV on the board of directors of Cegeka.

6 

Esdacon BV, a company incorporated in Belgium, is a director of Cegeka. Stephan Daems, a Belgian citizen, is the permanent representative of Esdacon BV on the board of directors of Cegeka.

7 

ID&D NV, a company incorporated in Belgium, is a director of Cegeka. Stijn Bijnens, a Belgian citizen, is the permanent representative of ID&D NV on the board of directors of Cegeka.

8 

Tovi BV, a company incorporated in Belgium, is a director of Cegeka. Tom Knaepen, a Belgian citizen, is the permanent representative of Tovi BV on the board of directors of Cegeka.

9 

WKC BV, a company incorporated in Belgium, is a director of Cegeka. Wendy Knaepen, a Belgian citizen, is the permanent representative of WKC BV on the board of directors of Cegeka.

 

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Anik Stalmans    Ms. Stalmans is the Chief HR and ESG Officer of Cegeka since July 2022. She previously served as Chief HRO of Cegeka from February 2018 to February 2023. Ms. Stalmans is a citizen of Belgium.
Pieter Verstraeten    Mr. Verstraeten is the Chief Strategy Officer of Cegeka, serving in this role since February 2023. He was previously the Strategy, Transformation & Operational Excellence Officer at Cegeka. Before he joined Cegeka, he was a Strategic Advisor at Proximus. Mr. Verstraeten is a citizen of Belgium.
Bart Watteeuw    Mr. Watteeuw is the Global VP of Infrastructure of Cegeka, serving in this capacity since April 2021. He previously served as Director ICT Benelux/Telindus at Proximus, where he held positions as board member for several organizations. Mr. Watteeuw is a citizen of Belgium.
Kristel Demotte    Ms. Demotte is the VP of Data Solution of Cegeka, serving in this capacity since 2020. She was previously Cegeka’s Data Intelligence Unit Manager. Ms. Demotte is a citizen of Belgium.

Merger Sub

The following table sets forth information about Merger Sub’s directors and executive officers as of August 23, 2023. The current business address of each person is Cegeka Groep NV, Corda3, Kempische Steenweg 307 B-3500 Hasselt, Belgium, and the business telephone number is +32 11 24 02 34.

 

Name    Present Principal Occupation or Employment;
Material Positions Held During the Last Five Years;
Citizenship (if not United States)
Stijn Bijnens    Mr. Bijnens is a Director and the President of Merger Sub. He has also served as the CEO of Cegeka since 2019. From December 2007 to December 2019, he served as the CEO of LRM NV. Mr. Bijnens is a citizen of Belgium.
Stephan Daems    Mr. Daems is a Director and the Treasurer and Secretary of Merger Sub. He has also served as the CFO of Cegeka since 1997. Mr. Daems is a citizen of Belgium.

 

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The Depositary for the Offer is:

 

 

LOGO

 

If delivering by mail:    By overnight delivery:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
P.O. Box 43011
Providence, RI 02940-3011
   Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
150 Royall Street, Suite V
Canton, MA 02021

Questions and requests for assistance may be directed to the Information Agent at its address and telephone numbers set forth below. Requests for copies of the Offer to Purchase and the related Letter of Transmittal and Notice of Guaranteed Delivery may be directed to the Information Agent. Such copies will be furnished promptly at Merger Sub’s expense. Shareholders may also contact brokers, dealers, commercial banks or trust companies for assistance concerning the Offer. Merger Sub will not pay any fees or commissions to any broker or dealer or any other person (other than the Information Agent or the Depositary) for soliciting tenders of Shares pursuant to the Offer.

The Information Agent for the Offer is:

 

 

LOGO

1290 Avenue of the Americas, 9th Floor

New York, New York 10104

Shareholders, Banks and Brokers may call toll free: 1-866-431-2096

Exhibit (a)(1)(B)

LETTER OF TRANSMITTAL

To Tender Shares of Common Stock

of

COMPUTER TASK GROUP, INCORPORATED

a New York corporation

at

$10.50 Per Share

Pursuant to the Offer to Purchase

dated August 23, 2023

by

CHICAGO MERGER SUB, INC.

a wholly owned subsidiary of

CEGEKA GROEP NV

 

THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT THE END OF THE DAY, ONE MINUTE AFTER 11:59 P.M. EASTERN TIME, ON SEPTEMBER 20, 2023 UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “EXPIRATION DATE”).

The Depositary for the Offer is:

 

 

LOGO

 

If delivering by mail:    By overnight delivery:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
P.O. Box 43011
Providence, RI 02940-3011
   Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
150 Royall Street, Suite V
Canton, MA 02021

Delivery of this Letter of Transmittal to an address other than as set forth above will not constitute a valid delivery to the Depositary (as defined below). You must sign this Letter of Transmittal in the appropriate space provided therefor below, with signature guaranteed, if required, and complete the IRS Form W-9 or the appropriate IRS Form W-8 included in this Letter of Transmittal (or, if another IRS Form W-8 is applicable, available from the IRS website at http://www.irs.gov), if required. The instructions set forth in this Letter of Transmittal should be read carefully before you tender any of your Shares (as defined below) into the Offer (as defined below).


DESCRIPTION OF SHARES TENDERED

 

Name(s) and Address(es) of Registered Holder(s)
(Please fill in, if blank, exactly as name(s)
appear(s) on certificate(s))

(Attach additional signed list if necessary)

  Shares Tendered
    Certificate

Number(s)(*)

  Total Number of
Shares
Represented by
Certificate(s)(**)
  Total Number of
Shares
Tendered(**)
    Total Shares        

 

(*)

Certificate numbers are not required if tender is being made by book-entry transfer.

(**)

Unless a lower number of Shares to be tendered is otherwise indicated, it will be assumed that all Shares described above are being tendered. See Instruction 4.

The Offer is not being made to (and no tenders will be accepted from or on behalf of) holders of Shares (as defined below) in any jurisdiction in which the making of the Offer or acceptance thereof would not be in compliance with the securities, “blue sky” or other laws of such jurisdiction.

This Letter of Transmittal is to be used by shareholders of Computer Task Group, Incorporated (“CTG”), if certificates (the “Share Certificates”) for shares of common stock, par value $0.01 per share, of CTG (the “Shares”) are to be forwarded herewith or, unless an Agent’s Message (as defined in Section 2 of the Offer to Purchase) is utilized, if delivery of Shares is to be made by book-entry transfer to an account maintained by Computershare Trust Company, N.A. (the “Depositary”) at The Depository Trust Company (“DTC”) (as described in Section 2 of the Offer to Purchase and pursuant to the procedures set forth in Section 3 thereof).

Shareholders whose Share Certificates are not immediately available, or who cannot complete the procedure for book-entry transfer on a timely basis, or who cannot deliver all other required documents to the Depositary prior to the Expiration Date, must tender their Shares according to the guaranteed delivery procedure set forth in Section 3 of the Offer to Purchase in order to participate in the Offer. Shares tendered by the Notice of Guaranteed Delivery (as defined below) will be excluded from the calculation of the Minimum Condition (as defined in the Offer to Purchase), unless such Shares and other required documents are received by the Depositary by the Expiration Date. See Instruction 2. Delivery of documents to DTC does not constitute delivery to the Depositary.

Additional Information if Share Certificates Have Been Lost, Destroyed or Stolen, Are Being Delivered By Book-Entry Transfer, or Are Being Delivered Pursuant to a Previous Notice of Guaranteed Delivery

If Share Certificates you are tendering with this Letter of Transmittal have been lost, stolen, destroyed or mutilated, you should contact Computershare Trust Company, N.A. as transfer agent (the “Transfer Agent”), at 1-877-373-6374, regarding the requirements for replacement. You may be required to post a bond to secure against the risk that the Share Certificates may be subsequently recirculated. You are urged to contact the Transfer Agent immediately in order to receive further instructions, for a determination of whether you will need to post a bond and to permit timely processing of this documentation. See Instruction 11.


CHECK HERE IF TENDERED SHARES ARE BEING DELIVERED HEREWITH.

 

CHECK HERE IF TENDERED SHARES ARE BEING DELIVERED BY BOOK-ENTRY TRANSFER MADE TO AN ACCOUNT MAINTAINED BY THE DEPOSITARY WITH DTC AND COMPLETE THE FOLLOWING (NOTE THAT ONLY FINANCIAL INSTITUTIONS THAT ARE PARTICIPANTS IN THE SYSTEM OF DTC MAY DELIVER SHARES BY BOOK-ENTRY TRANSFER):

 

 

Name of Tendering Institution: 

   

    

 

DTC Account Number:

   
 

Transaction Code Number:

   

 

CHECK HERE IF TENDERED SHARES ARE BEING DELIVERED PURSUANT TO A NOTICE OF GUARANTEED DELIVERY PREVIOUSLY SENT TO THE DEPOSITARY AND COMPLETE THE FOLLOWING:

 

    

 

Name(s) of Tendering Shareholder(s):

   
 

Window Ticket Number (if any):

   
 

Date of Execution of Notice of Guaranteed Delivery:

   
 

Name of Eligible Institution that Guaranteed Delivery: 

   


NOTE: SIGNATURES MUST BE PROVIDED BELOW.

PLEASE READ ACCOMPANYING INSTRUCTIONS CAREFULLY

Ladies and Gentlemen:

The undersigned hereby tenders to Chicago Merger Sub, Inc., a New York corporation (“Merger Sub”), the above described shares of common stock, par value $0.01 per share (the “Shares”), of Computer Task Group, Incorporated, a New York corporation (“CTG”), pursuant to Merger Sub’s offer to purchase, subject to certain conditions, including the satisfaction of the Minimum Condition (as defined in the Offer to Purchase (as defined below)), all of the outstanding Shares, at a price of $10.50 per Share, net to the seller in cash, without interest and less any applicable withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated August 23, 2023 (the “Offer to Purchase”), and in this Letter of Transmittal (the “Letter of Transmittal” which, together with the Offer to Purchase, as each may be amended and supplemented from time to time, collectively constitute the “Offer”), receipt of which is hereby acknowledged.

Upon the terms and subject to the conditions of the Offer (and if the Offer is extended or amended, the terms of any such extension or amendment), and effective upon acceptance for payment of the Shares validly tendered herewith and not properly withdrawn prior to the Expiration Date (as defined in the Summary Term Sheet to the Offer to Purchase) in accordance with the terms of the Offer, the undersigned hereby sells, assigns and transfers to or upon the order of Merger Sub all right, title and interest in and to all of the Shares that are being tendered hereby (and any and all dividends, distributions, rights, other Shares or other securities issued or issuable in respect thereof on or after the date hereof (collectively, “Distributions”)) and irrevocably constitutes and appoints the Merger Sub the true and lawful agent and attorney-in-fact of the undersigned with respect to such Shares (and any and all Distributions), with full power of substitution (such power of attorney being deemed to be an irrevocable power coupled with an interest in the Shares tendered by this Letter of Transmittal), to (i) deliver Share Certificates for such Shares (and any and all Distributions) or transfer ownership of such Shares (and any and all Distributions) on the account books maintained by DTC, together, in any such case, with all accompanying evidences of transfer and authenticity, to or upon the order of Merger Sub, (ii) present such Shares (and any and all Distributions) for transfer on the books of CTG and (iii) receive all benefits and otherwise exercise all rights of beneficial ownership of such Shares (and any and all Distributions), all in accordance with the terms and subject to the conditions of the Offer.

By executing this Letter of Transmittal (or taking action resulting in the delivery of an Agent’s Message (as defined below)), the undersigned hereby irrevocably appoints each of the designees of Merger Sub the attorneys-in-fact and proxies of the undersigned, each with full power of substitution, (i) to vote at any annual or special meeting of CTG’s shareholders or any adjournment or postponement thereof or otherwise in such manner as each such attorney-in-fact and proxy or its, his or her substitute shall in its, his or her sole discretion deem proper with respect to, (ii) to execute any written consent concerning any matter as each such attorney-in-fact and proxy or its, his or her substitute shall in its, his or her sole discretion deem proper with respect to and (iii) to otherwise act as each such attorney-in-fact and proxy or its, his or her substitute shall in its, his or her sole discretion deem proper with respect to, all of the Shares (and any and all Distributions) tendered hereby and accepted for payment by Merger Sub. This appointment will be effective if and when, and only to the extent that, Merger Sub accepts such Shares for payment pursuant to the Offer. This power of attorney and proxy are irrevocable and are granted in consideration of the acceptance for payment of such Shares in accordance with the terms of the Offer. Such acceptance for payment shall, without further action, revoke any prior powers of attorney and proxies granted by the undersigned at any time with respect to such Shares (and any and all Distributions), and no subsequent powers of attorney, proxies, consents or revocations may be given by the undersigned with respect thereto (and, if given, will not be deemed effective). Merger Sub reserves the right to require that, in order for the Shares to be deemed validly tendered, immediately upon Merger Sub’s acceptance for payment of such Shares, Merger Sub or its designees must be able to exercise full voting, consent and other rights with respect to such Shares (and any and all Distributions), including voting at any meeting of CTG’s shareholders.


The undersigned hereby represents and warrants that the undersigned has full power and authority to tender, sell, assign and transfer any and all of the Shares tendered hereby (and any and all Distributions) and that, when the same are accepted for payment by Merger Sub, Merger Sub will acquire good, marketable and unencumbered title to such Shares (and such Distributions), free and clear of all liens, restrictions, charges and encumbrances and the same will not be subject to any adverse claims. The undersigned hereby represents and warrants that the undersigned is the registered owner of the Shares, or the Share Certificate(s) have been endorsed to the undersigned in blank, or the undersigned is a participant in DTC whose name appears on a security position listing as the owner of the Shares. The undersigned will, upon request, execute and deliver any additional documents deemed by the Depositary or Merger Sub to be necessary or desirable to complete the sale, assignment and transfer of the Shares tendered hereby (and any and all Distributions). In addition, the undersigned shall remit and transfer promptly to the Depositary for the account of Merger Sub all Distributions in respect of any and all of the Shares tendered hereby, accompanied by appropriate documentation of transfer, and, pending such remittance and transfer or appropriate assurance thereof, Merger Sub shall be entitled to all rights and privileges as owner of each such Distribution and may withhold the entire purchase price of the Shares tendered hereby or deduct from such purchase price the amount or value of such Distribution as determined by Merger Sub in its sole discretion.

All authority herein conferred or agreed to be conferred shall not be affected by, and shall survive the death or incapacity of the undersigned, and any obligation of the undersigned hereunder shall be binding upon the heirs, executors, administrators, personal representatives, trustees in bankruptcy, successors and assigns of the undersigned. Except as stated in the Offer to Purchase, this tender is irrevocable.

The undersigned hereby acknowledges that delivery of any Share Certificate shall be effected, and risk of loss and title to such Share Certificate shall pass, only upon the proper delivery of such Share Certificate to the Depositary.

The undersigned understands that the valid tender of Shares pursuant to any of the procedures described in the Offer to Purchase and in the Instructions hereto will constitute the undersigned’s acceptance of the terms and conditions of the Offer. Merger Sub’s acceptance of such Shares for payment will constitute a binding agreement between the undersigned and Merger Sub upon the terms and subject to the conditions of the Offer (and if the Offer is extended or amended, the terms and conditions of such extension or amendment). The undersigned recognizes that under certain circumstances set forth in the Offer, Merger Sub may not be required to accept for exchange any Shares tendered hereby.

Unless otherwise indicated under “Special Payment Instructions,” please issue a check for the purchase price of all Shares purchased and, if appropriate, return Share Certificates not tendered or accepted for payment in the name(s) of the registered holder(s) appearing above under “Description of Shares Tendered.” Similarly, unless otherwise indicated under “Special Delivery Instructions,” please mail the check for the purchase price of all Shares purchased and, if appropriate, return any Share Certificates not tendered or not accepted for payment (and any accompanying documents, as appropriate) to the address(es) of the registered holder(s) appearing above under “Description of Shares Tendered.” In the event that the boxes entitled “Special Payment Instructions” and “Special Delivery Instructions” are both completed, please issue the check for the purchase price of all Shares purchased and, if appropriate, return any Share Certificates not tendered or not accepted for payment (and any accompanying documents, as appropriate) in the name(s) of, and deliver such check and, if appropriate, return any Share Certificates (and any accompanying documents, as appropriate) to, the person(s) so indicated. Unless otherwise indicated herein in the box entitled “Special Payment Instructions,” please credit any Shares tendered herewith by book-entry transfer that are not accepted for payment by crediting the account at DTC designated above. The undersigned recognizes that Merger Sub has no obligation, pursuant to the “Special Payment Instructions,” to transfer any Shares from the name of the registered holder thereof if Merger Sub does not accept for payment any of the Shares so tendered. The undersigned recognizes that Merger Sub has no obligation, pursuant to the Special Payment Instructions, to transfer any Shares from the name(s) of the registered holder(s) thereof if Merger Sub does not accept for payment any of the Shares so tendered.


SPECIAL PAYMENT INSTRUCTIONS

(See Instructions 1, 5, 6 and 7)

To be completed ONLY if the check for the purchase price of Shares accepted for payment and/or Share Certificates not tendered or not accepted for payment are to be issued in the name of someone other than the undersigned.

Issue check and/or certificates to:

 

Name:

    
     (Please Print)

Address: 

    
  
 
   (Include Zip Code)
 

(Taxpayer Identification or Social Security No.)

(Also Complete, as appropriate, Form W-9 Included Below)

SPECIAL DELIVERY INSTRUCTIONS

(See Instructions 1, 5, 6 and 7)

To be completed ONLY if the check for the purchase price of Shares accepted for payment and/or Share Certificates evidencing Shares not tendered or not accepted are to be mailed to someone other than the undersigned or to the undersigned at an address other than that shown above.

Mail check and/or Share Certificates to:

 

Name:

    
     (Please Print)

Address: 

    
  
 
   (Include Zip Code)


IMPORTANT

SHAREHOLDER: SIGN BELOW

(U.S. Holders: Please complete and return the IRS Form W-9 included below)

(Non-U.S. Holders: Please complete and return appropriate IRS Form W-8)

 

        

(Signature(s) of Holder(s) of Shares)

 

Dated: 

 

Name(s): 

   
     
(Please Print)

(Signature(s) of Holder(s) of Shares)

 

 

Dated: 

 

Name(s): 

   
(Please Print)
Capacity (full title) (See Instruction 5):     
Address:     
 
(Include Zip Code)
Area Code and Telephone No.:     
Tax Identification or Social Security No. (See Form W-9 included below):     

(Must be signed by registered holder(s) exactly as name(s) appear(s) on stock certificate(s) or on a security position listing or by person(s) authorized to become registered holder(s) by certificates and documents transmitted herewith. If signature is by a trustee, executor, administrator, guardian, attorney-in-fact, agent, officer of a corporation or other person acting in a fiduciary or representative capacity, please set forth full title and see Instruction 5.)


INSTRUCTIONS

FORMING PART OF THE TERMS AND CONDITIONS OF THE OFFER

1. Guarantee of Signatures. No signature guarantee is required on this Letter of Transmittal (a) if this Letter of Transmittal is signed by the registered holder(s) (which term, for purposes of this Instruction, includes any participant in DTC’s systems whose name appears on a security position listing as the owner of the Shares) of Shares tendered herewith, unless such registered holder has completed either the box entitled “Special Payment Instructions” or the box entitled “Special Delivery Instructions” on this Letter of Transmittal or (b) if such Shares are tendered for the account of a financial institution (including most commercial banks, savings and loan associations and brokerage houses) that is a member in good standing of the Securities Transfer Agents Medallion Program or any other “eligible guarantor institution,” as such term is defined in Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended (each, an “Eligible Institution”). In all other cases, all signatures on this Letter of Transmittal must be guaranteed by an Eligible Institution. See Instruction 5.

2. Requirements of Tender. No alternative, conditional or contingent tenders will be accepted. In order for Shares to be validly tendered pursuant to the Offer, one of the following procedures must be followed:

For Shares held as physical certificates, the Share Certificates representing tendered Shares, a properly completed and duly executed Letter of Transmittal, together with any required signature guarantees, and any other documents required by this Letter of Transmittal, must be received by the Depositary at the appropriate address set forth on the front page of this Letter of Transmittal before the Expiration Date (unless the tender is made during a subsequent offering period, if one is provided, in which case the Share Certificates representing Shares, this Letter of Transmittal and other documents must be received before the expiration of the subsequent offering period).

For Shares held in book-entry form, either a properly completed and duly executed Letter of Transmittal, together with any required signature guarantees, or an Agent’s Message in lieu of this Letter of Transmittal, and any other required documents, must be received by the Depositary at one of its addresses set forth on the front page of this Letter of Transmittal, and such Shares must be delivered according to the book-entry transfer procedures (as set forth in Section 3 of the Offer to Purchase) and a timely confirmation of a book-entry transfer of Shares into the Depositary’s account at DTC (a “Book-Entry Confirmation”) must be received by the Depositary, in each case before the Expiration Date (unless the tender is made during a subsequent offering period, if one is provided, in which case this Letter of Transmittal or an Agent’s Message in lieu of this Letter of Transmittal, and other documents must be received before the expiration of the subsequent offering period).

Shareholders whose Share Certificates are not immediately available, or who cannot complete the procedure for delivery by book-entry transfer prior to the Expiration Date or who cannot deliver all other required documents to the Depositary prior to the Expiration Date, may tender their Shares by properly completing and duly executing a notice of guaranteed delivery (a “Notice of Guaranteed Delivery”) pursuant to the guaranteed delivery procedure set forth in Section 3 of the Offer to Purchase. Pursuant to such procedure: (i) such tender must be made by or through an Eligible Institution, (ii) a properly completed and duly executed Notice of Guaranteed Delivery, substantially in the form made available by Merger Sub, must be received by the Depositary prior to the Expiration Date and (iii) Share Certificates (or a Book-Entry Confirmation) evidencing all tendered Shares, in proper form for transfer, in each case together with this Letter of Transmittal, properly completed and duly executed, together with any required signature guarantees (or, in the case of book-entry transfer of Shares, either this Letter of Transmittal or an Agent’s Message in lieu of this Letter of Transmittal), and any other documents required by this Letter of Transmittal, must be received by the Depositary within two NASDAQ Stock Market trading days after the date of execution of such Notice of Guaranteed Delivery. A Notice of Guaranteed Delivery may be delivered by overnight courier or mailed to the Depositary and must include a guarantee by an Eligible Institution in the form set forth in the form of Notice of Guaranteed Delivery made available by Merger Sub. In the case of Shares held through DTC, the Notice of Guaranteed Delivery must be delivered to the Depositary by a participant by means of the confirmation system of DTC. Shares tendered by the Notice of Guaranteed Delivery will be excluded from the calculation of the Minimum Condition (as such term is defined in the Offer to Purchase), unless such Shares and other required documents are received by the Depositary by the Expiration Date.


The term “Agent’s Message” means a message transmitted by DTC to, and received by, the Depositary and forming part of a Book-Entry Confirmation that states that DTC has received an express acknowledgment from the participant in DTC tendering the Shares that are the subject of such Book-Entry Confirmation that such participant has received and agrees to be bound by the terms of this Letter of Transmittal and that Merger Sub may enforce such agreement against the participant.

The method of delivery of Shares, this Letter of Transmittal and all other required documents, including delivery through DTC, is at the election and risk of the tendering shareholder. Shares will be deemed delivered (and the risk of loss of Share Certificates will pass) only when actually received by the Depositary (including, in the case of a book-entry transfer, by Book-Entry Confirmation). If delivery is by mail, then registered mail with return receipt requested, properly insured, is recommended. In all cases, sufficient time should be allowed to ensure timely delivery.

No fractional Shares will be purchased. By executing this Letter of Transmittal, the tendering shareholder waives any right to receive any notice of the acceptance for payment of Shares.

3. Inadequate Space. If the space provided herein is inadequate, Share Certificate numbers, the number of Shares represented by such Share Certificates and/or the number of Shares tendered should be listed on a separate signed schedule attached hereto.

4. Partial Tenders (Not Applicable to Shareholders who Tender by Book-Entry Transfer). If fewer than all the Shares represented by any Share Certificate delivered to the Depositary are to be tendered, fill in the number of Shares which are to be tendered in the box entitled “Total Number of Shares Tendered”. In such case, a new Share Certificate for the remainder of the Shares represented by the old Share Certificate will be sent to the person(s) signing this Letter of Transmittal, unless otherwise provided in the appropriate box on this Letter of Transmittal, as promptly as practicable following the expiration or termination of the Offer. All Shares represented by Share Certificates delivered to the Depositary will be deemed to have been tendered unless otherwise indicated.

5. Signatures on Letter of Transmittal; Stock Powers and Endorsements.

(a) Exact Signatures. If this Letter of Transmittal is signed by the registered holder(s) of the Shares tendered hereby, the signature(s) must correspond with the name(s) as written on the face of the Share Certificates without alteration, enlargement or any change whatsoever.

(b) Joint Holders. If any of the Shares tendered hereby are held of record by two or more persons, all such persons must sign this Letter of Transmittal.

(c) Different Names on Certificates. If any of the Shares tendered hereby are registered in different names on different Share Certificates, it will be necessary to complete, sign and submit as many separate Letters of Transmittal as there are different registrations of Share Certificates.

(d) Endorsements. If this Letter of Transmittal is signed by the registered holder(s) of the Shares tendered hereby, no endorsements of Share Certificates or separate stock powers are required unless payment of the purchase price is to be made, or Shares not tendered or not purchased are to be returned, in the name of any person other than the registered holder(s). Signatures on any such Share Certificates or stock powers must be guaranteed by an Eligible Institution.

(e) Stock Powers. If this Letter of Transmittal is signed by a person other than the registered holder(s) of the Shares tendered hereby, Share Certificates must be endorsed or accompanied by appropriate stock powers, in either case, signed exactly as the name(s) of the registered holder(s) appear(s) on the Share Certificates for such Shares. Signature(s) on any such Share Certificates or stock powers must be guaranteed by an Eligible Institution. See Instruction 1.

(f) Evidence of Fiduciary or Representative Capacity. If this Letter of Transmittal or any Share Certificate or stock power is signed by a trustee, executor, administrator, guardian, attorney-in-fact, officer of a corporation or


other legal entity or other person acting in a fiduciary or representative capacity, such person should so indicate when signing, and proper evidence satisfactory to the Depositary of the authority of such person so to act must be submitted. Proper evidence of authority includes a power of attorney, a letter of testamentary or a letter of appointment.

6. Stock Transfer Taxes. Except as otherwise provided in this Instruction 6, Merger Sub or any successor entity thereto will pay all stock transfer taxes with respect to the transfer and sale of any Shares to Merger Sub pursuant to the Offer (for the avoidance of doubt, transfer taxes do not include U.S. federal income taxes or backup withholding). If, however, payment of the purchase price is to be made to, or if Share Certificate(s) for Shares not tendered or not accepted for payment are to be registered in the name of, any person(s) other than the registered holder(s), or if tendered Share Certificate(s) are registered in the name of any person(s) other than the person(s) signing this Letter of Transmittal, it shall be a condition of payment that any stock transfer taxes or other taxes required by reason of the payment to a person other than the registered holder of such Shares (whether imposed on the registered holder(s) or such other person(s)) payable on account of the transfer to such other person(s) shall have been paid unless evidence satisfactory to Merger Sub of the payment of such taxes, or the inapplicability of such taxes, is submitted.

Except as provided in this Instruction 6, it will not be necessary for transfer tax stamps to be affixed to the Share Certificate(s) evidencing the Shares tendered hereby.

7. Special Payment and Delivery Instructions. If a check is to be issued for the purchase price of any Shares tendered by this Letter of Transmittal in the name of, and, if appropriate, Share Certificates for Shares not tendered or not accepted for payment are to be issued or returned to, any person(s) other than the signer of this Letter of Transmittal or if a check and, if appropriate, such Share Certificates are to be returned to any person(s) other than the person(s) signing this Letter of Transmittal or to an address other than that shown in this Letter of Transmittal, the appropriate boxes on this Letter of Transmittal must be completed.

8. IRS Form W-9 and Applicable IRS Form W-8. Payments made to a tendering shareholder that is a U.S. person for U.S. federal income tax purposes may be subject to backup withholding, unless such shareholder provides the appropriate documentation to the Depositary certifying that, among other things, its taxpayer identification number (“TIN”) is correct and is not subject to backup withholding, or otherwise establishes an exemption from backup withholding. Such shareholder should use the Internal Revenue Service (“IRS”) Form W-9 provided in this Letter of Transmittal for this purpose and should (i) enter its name, U.S. federal tax classification, address and TIN on the face of the IRS Form W-9, (ii) if such shareholder is a corporation or other entity that is exempt from backup withholding, or if such shareholder is exempt from FATCA reporting, provide its “Exempt payee code” or “Exemption from FATCA reporting code” and (iii) sign and date the IRS Form W-9 and return it to the Depositary. If such shareholder does not provide its correct TIN and other required information or an adequate basis for exemption, payments made to such shareholder will be subject to backup withholding at a rate of 24% and such shareholder may be subject to a penalty imposed by the IRS. If the Shares being tendered by such shareholder are in more than one name or are not in the name of their actual owner, such shareholder should consult the instructions accompanying the IRS Form W-9 (the “W-9 Instructions”) for information on which TIN to report. If such shareholder has not been issued a TIN, such shareholder should consult the W-9 Instructions, and the Depositary will withhold 24% on payments to such shareholder if the Depositary is not provided with a TIN by the time any such payment is made.

Exempt shareholders (including, among others, all corporations) are not subject to these information reporting and backup withholding requirements, provided that, if required, they properly demonstrate their eligibility for exemption. See the W-9 Instructions for additional instructions.

In order for a shareholder that is not a U.S. person for U.S. federal income tax purposes to avoid backup withholding, such shareholder should submit the version of IRS Form W-8 applicable to such holder, available from the IRS website at http://www.irs.gov), signed under penalty of perjury, attesting to such shareholder’s foreign status. The failure of such a shareholder to provide the appropriate IRS Form W-8 may result in backup withholding at a rate of 24% on some or all of the payments made to such shareholder pursuant to the Tender Offer or Merger.


Backup withholding is not an additional tax. Rather, the federal income tax liability of persons subject to backup withholding will be reduced by the amount of tax withheld. If backup withholding results in an overpayment of taxes, a refund or credit may be obtained from the IRS if eligibility is established and appropriate procedure is followed.

9. Irregularities. All questions as to the validity, form, eligibility (including time of receipt) and acceptance for payment of any tender of Shares will be determined by Merger Sub, in its sole discretion, which determination shall be final and binding on all parties. However, shareholders may challenge Merger Sub’s determinations in a court of competent jurisdiction. Merger Sub reserves the absolute right to reject any and all tenders determined by it not to be in proper form or the acceptance for payment of which may, in the opinion of its counsel, be unlawful. Merger Sub also reserves the absolute right to waive any defect or irregularity in the tender of any Shares of any particular shareholder, whether or not similar defects or irregularities are waived in the case of other shareholders. No tender of Shares will be deemed to have been validly made until all defects and irregularities have been waived or cured within such time as Merger Sub shall determine. None of Merger Sub, the Depositary, the Information Agent or any other person will be under any duty to give notice of any defects or irregularities in tenders or incur any liability for failure to give any such notice. Merger Sub’s interpretation of the terms and conditions of the Offer (including the Letter of Transmittal and the instructions thereto) will be final and binding.

10. Questions and Requests for Additional Copies. The Information Agent may be contacted at the address and telephone number set forth on the last page of this Letter of Transmittal for questions and/or requests for additional copies of the Offer to Purchase, this Letter of Transmittal, the Notice of Guaranteed Delivery and other tender offer materials. You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance. Such copies will be furnished promptly at Merger Sub’s expense.

11. Lost, Stolen Destroyed or Mutilated Certificates. If any Share Certificate has been lost, stolen, destroyed or mutilated, the shareholder should promptly notify the Transfer Agent at 1-877-373-6374. The shareholder will then be instructed as to the steps that must be taken in order to replace such Share Certificates. You may be required to post a bond to secure against the risk that the Share Certificates(s) may be subsequently recirculated. This Letter of Transmittal and related documents cannot be processed until the procedures for replacing lost, destroyed or stolen certificates have been followed. You are urged to contact the Transfer Agent immediately in order to receive further instructions and for a determination of whether you will need to post a bond and to permit timely processing of this documentation. This Letter of Transmittal and related documents cannot be processed until the procedures for replacing lost, destroyed, mutilated or stolen Share Certificates have been followed.

Share Certificates evidencing tendered Shares, or a Book-Entry Confirmation into the Depositary’s account at DTC, as well as this Letter of Transmittal, properly completed and duly executed, with any required signature guarantees, or an Agent’s Message (if utilized in lieu of this Letter of Transmittal in connection with a book-entry transfer), and any other documents required by this Letter of Transmittal, must be received before the Expiration Date, or the tendering shareholder must comply with the procedures for guaranteed delivery.


   

Form  W-9

 

(Rev. October 2018)

Department of the Treasury

Internal Revenue Service

 

Request for Taxpayer

Identification Number and Certification

 

u Go to www.irs.gov/FormW9 for instructions and the latest information.

 

Give Form to the

requester. Do not

send to the IRS.

 

Print or type

See

Specific Instructions

on page 3.

 

 

 

 1  Name (as shown on your income tax return). Name is required on this line; do not leave this line blank.

 

    
 

 

 2  Business name/disregarded entity name, if different from above

 

                        
 

 3  Check appropriate box for federal tax classification of the person whose name is entered on line 1. Check only one of the
following seven boxes.

 

     

Exemptions (codes apply only to
certain entities, not individuals; see
instructions on page 3):

 

Exempt payee code (if any) 

 

Exemption from FATCA reporting

code (if any) 

 

(Applies to accounts maintained outside the U.S.)

 

    Individual/sole proprietor or
       single-member LLC    

 

    C Corporation         S Corporation         Partnership         Trust/estate        
 

Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=Partnership) u   

 

Note: Check the appropriate box in the line above for the tax classification of the single-member owner. Do not check LLC
if the LLC is classified as a single-member LLC that is disregarded from the owner unless the owner of the LLC is another
LLC that is not disregarded from the owner for U.S. federal tax purposes. Otherwise, a single-member LLC that is
disregarded from the owner should check the appropriate box for the tax classification of its owner.

 

Other (see instructions) u

 

 

   
 

 

 5  Address (number, street, and apt. or suite no.) See instructions.

 

      

 

  Requester’s name and address (optional)

 

 

 6  City, state, and ZIP code

 

         
    

 

 7  List account number(s) here (optional)

 

                    

 

 

Part I

    

 

 

Taxpayer Identification Number (TIN)

Enter your TIN in the appropriate box. The TIN provided must match the name given on line 1 to avoid backup withholding. For individuals, this is generally your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the instructions for Part I, later. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN, later.

 

 

    

 

 

 

Social security number

 

                     
             

-  

          -                  
  or
Note: If the account is in more than one name, see the instructions for line 1. Also see What Name and Number To Give the Requester for guidelines on whose number to enter.    

 

Employer identification number

 
             -                                
Part II      Certification

Under penalties of perjury, I certify that:

 

1.   The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and

 

2.   I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding; and

 

3.   I am a U.S. citizen or other U.S. person (defined below); and

 

4.   The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct.

Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions for Part II, later.

 

Sign
Here
      Signature of
    U.S. person  
u
     Date   u

General Instructions

Section references are to the Internal Revenue Code unless otherwise noted.

Future developments. For the latest information about developments related to Form W-9 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/FormW9.

Purpose of Form

An individual or entity (Form W-9 requester) who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) which may be your social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN), to report on an information return the amount paid to you, or other amount reportable on an information return. Examples of information returns include, but are not limited to, the following.

• Form 1099-INT (interest earned or paid)

• Form 1099-DIV (dividends, including those from stocks or mutual funds)

• Form 1099-MISC (various types of income, prizes, awards, or gross proceeds)

• Form 1099-B (stock or mutual fund sales and certain other transactions by brokers)

• Form 1099-S (proceeds from real estate transactions)

 

     
           Cat. No. 10231X  

Form W-9 (Rev. 10-2018)

 

 


Form W-9 (Rev. 10-2018)    Page 2

 

 

• Form 1099-K (merchant card and third party network transactions)

• Form 1098 (home mortgage interest), 1098-E (student loan interest), 1098-T (tuition)

• Form 1099-C (canceled debt)

• Form 1099-A (acquisition or abandonment of secured property)

Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN.

If you do not return Form W-9 to the requester with a TIN, you might be subject to backup withholding. See What is backup withholding, later

By signing the filled-out form, you:

1. Certify that the TIN you are giving is correct (or you are waiting for a number to be issued),

2. Certify that you are not subject to backup withholding, or

3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S. person, your allocable share of any partnership income from a U.S. trade or business is not subject to the withholding tax on foreign partners’ share of effectively connected income, and

4. Certify that FATCA code(s) entered on this form (if any) indicating that you are exempt from the FATCA reporting, is correct. See What is FATCA reporting, later, for further information.

Note: If you are a U.S. person and a requester gives you a form other than Form W-9 to request your TIN, you must use the requester’s form if it is substantially similar to this Form W-9.

Definition of a U.S. person. For federal tax purposes, you are considered a U.S. person if you are:

• An individual who is a U.S. citizen or U.S. resident alien;

• A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States;

• An estate (other than a foreign estate); or

• A domestic trust (as defined in Regulations section 301.7701-7).

Special rules for partnerships. Partnerships that conduct a trade or business in the United States are generally required to pay a withholding tax under section 1446 on any foreign partners’ share of effectively connected taxable income from such business. Further, in certain cases where a Form W-9 has not been received, the rules under section 1446 require a partnership to presume that a partner is a foreign person, and pay the section 1446 withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the United States, provide Form W-9 to the partnership to establish your U.S. status and avoid section 1446 withholding on your share of partnership income.

In the cases below, the following person must give Form W-9 to the partnership for purposes of establishing its U.S. status and avoiding withholding on its allocable share of net income from the partnership conducting a trade or business in the United States.

• In the case of a disregarded entity with a U.S. owner, the U.S. owner of the disregarded entity and not the entity;

• In the case of a grantor trust with a U.S. grantor or other U.S. owner, generally, the U.S. grantor or other U.S. owner of the grantor trust and not the trust; and

• In the case of a U.S. trust (other than a grantor trust), the U.S. trust (other than a grantor trust) and not the beneficiaries of the trust.

Foreign person. If you are a foreign person or the U.S. branch of a foreign bank that has elected to be treated as a U.S. person, do not use Form W-9. Instead, use the appropriate Form W-8 or Form 8233 (see Pub. 515, Withholding of Tax on Nonresident Aliens and Foreign Entities).

Nonresident alien who becomes a resident alien. Generally, only a nonresident alien individual may use the terms of a tax treaty to reduce or eliminate U.S. tax on certain types of income. However, most tax treaties contain a provision known as a “saving clause.” Exceptions specified in the saving clause may permit an exemption from tax to continue for certain types of income even after the payee has otherwise become a U.S. resident alien for tax purposes.

If you are a U.S. resident alien who is relying on an exception contained in the saving clause of a tax treaty to claim an exemption from U.S. tax on certain types of income, you must attach a statement to Form W-9 that specifies the following five items.

1. The treaty country. Generally, this must be the same treaty under which you claimed exemption from tax as a nonresident alien.

2. The treaty article addressing the income.

3. The article number (or location) in the tax treaty that contains the saving clause and its exceptions.

4. The type and amount of income that qualifies for the exemption from tax.

5. Sufficient facts to justify the exemption from tax under the terms of the treaty article.

Example. Article 20 of the U.S.-China income tax treaty allows an exemption from tax for scholarship income received by a Chinese student temporarily present in the United States. Under U.S. law, this student will become a resident alien for tax purposes if his or her stay in the United States exceeds 5 calendar years. However, paragraph 2 of the first Protocol to the U.S.-China treaty (dated April 30, 1984) allows the provisions of Article 20 to continue to apply even after the Chinese student becomes a resident alien of the United States. A Chinese student who qualifies for this exception (under paragraph 2 of the first protocol) and is relying on this exception to claim an exemption from tax on his or her scholarship or fellowship income would attach to Form W-9 a statement that includes the information described above to support that exemption.

If you are a nonresident alien or a foreign entity, give the requester the appropriate completed Form W-8 or Form 8233.

Backup Withholding

What is backup withholding? Persons making certain payments to you must under certain conditions withhold and pay to the IRS 24% of such payments. This is called “backup withholding.” Payments that may be subject to backup withholding include interest, tax-exempt interest, dividends, broker and barter exchange transactions, rents, royalties, nonemployee pay, payments made in settlement of payment card and third party network transactions, and certain payments from fishing boat operators. Real estate transactions are not subject to backup withholding.

You will not be subject to backup withholding on payments you receive if you give the requester your correct TIN, make the proper certifications, and report all your taxable interest and dividends on your tax return.

Payments you receive will be subject to backup withholding if:

1. You do not furnish your TIN to the requester,


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2. You do not certify your TIN when required (see the instructions for Part II for details),

3. The IRS tells the requester that you furnished an incorrect TIN,

4. The IRS tells you that you are subject to backup withholding because you did not report all your interest and dividends on your tax return (for reportable interest and dividends only), or

5. You do not certify to the requester that you are not subject to backup withholding under 4 above (for reportable interest and dividend accounts opened after 1983 only).

Certain payees and payments are exempt from backup withholding. See Exempt payee code, later, and the separate Instructions for the Requester of Form W-9 for more information.

Also see Special rules for partnerships, earlier.

What is FATCA Reporting?

The Foreign Account Tax Compliance Act (FATCA) requires a participating foreign financial institution to report all United States account holders that are specified United States persons. Certain payees are exempt from FATCA reporting. See Exemption from FATCA reporting code, later, and the Instructions for the Requester of Form W-9 for more information.

Updating Your Information

You must provide updated information to any person to whom you claimed to be an exempt payee if you are no longer an exempt payee and anticipate receiving reportable payments in the future from this person. For example, you may need to provide updated information if you are a C corporation that elects to be an S corporation, or if you no longer are tax exempt. In addition, you must furnish a new Form W-9 if the name or TIN changes for the account; for example, if the grantor of a grantor trust dies.

Penalties

Failure to furnish TIN. If you fail to furnish your correct TIN to a requester, you are subject to a penalty of $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect.

Civil penalty for false information with respect to withholding. If you make a false statement with no reasonable basis that results in no backup withholding, you are subject to a $500 penalty.

Criminal penalty for falsifying information. Willfully falsifying certifications or affirmations may subject you to criminal penalties including fines and/or imprisonment.

Misuse of TINs. If the requester discloses or uses TINs in violation of federal law, the requester may be subject to civil and criminal penalties.

Specific Instructions

Line 1

You must enter one of the following on this line; do not leave this line blank. The name should match the name on your tax return.

If this Form W-9 is for a joint account (other than an account maintained by a foreign financial institution (FFI)), list first, and then circle, the name of the person or entity whose number you entered in Part I of Form W-9. If you are providing Form W-9 to an FFI to document a joint account, each holder of the account that is a U.S. person must provide a Form W-9.

a. Individual. Generally, enter the name shown on your tax return. If you have changed your last name without informing the Social Security Administration (SSA) of the name change, enter your first name, the last name as shown on your social security card, and your new last name.

Note: ITIN applicant: Enter your individual name as it was entered on your Form W-7 application, line 1a. This should also be the same as the name you entered on the Form 1040/1040A/1040EZ you filed with your application.

b. Sole proprietor or single-member LLC. Enter your individual name as shown on your 1040/1040A/1040EZ on line 1. You may enter your business, trade, or “doing business as” (DBA) name on line 2.

c. Partnership, LLC that is not a single-member LLC, C corporation, or S corporation. Enter the entity’s name as shown on the entity’s tax return on line 1 and any business, trade, or DBA name on line 2.

d. Other entities. Enter your name as shown on required U.S. federal tax documents on line 1. This name should match the name shown on the charter or other legal document creating the entity. You may enter any business, trade, or DBA name on line 2.

e. Disregarded entity. For U.S. federal tax purposes, an entity that is disregarded as an entity separate from its owner is treated as a “disregarded entity.” See Regulations section 301.7701-2(c)(2)(iii). Enter the owner’s name on line 1. The name of the entity entered on line 1 should never be a disregarded entity. The name on line 1 should be the name shown on the income tax return on which the income should be reported. For example, if a foreign LLC that is treated as a disregarded entity for U.S. federal tax purposes has a single owner that is a U.S. person, the U.S. owner’s name is required to be provided on line 1. If the direct owner of the entity is also a disregarded entity, enter the first owner that is not disregarded for federal tax purposes. Enter the disregarded entity’s name on line 2, “Business name/disregarded entity name.” If the owner of the disregarded entity is a foreign person, the owner must complete an appropriate Form W-8 instead of a Form W-9. This is the case even if the foreign person has a U.S. TIN.

Line 2

If you have a business name, trade name, DBA name, or disregarded entity name, you may enter it on line 2.


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Line 3

Check the appropriate box on line 3 for the U.S. federal tax classification of the person whose name is entered on line 1. Check only one box on line 3.

 

    IF the entity/person on line 1 is a(n) . . .   THEN check the box for . . .
  • Corporation   Corporation
 

• Individual

 

• Sole proprietorship, or

 

• Single-member limited liability company (LLC) owned by an individual and disregarded for U.S. federal tax purposes.

  Individual/sole proprietor or single-member LLC
 

• LLC treated as a partnership for U.S. federal tax purposes,

 

• LLC that has filed Form 8832 or 2553 to be taxed as a corporation, or

 

• LLC that is disregarded as an entity separate from its owner but the owner is another LLC that is not disregarded for U.S. federal tax purposes.

  Limited liability company and enter the appropriate tax classification.
(P= Partnership; C= C corporation; or S= S corporation)
  • Partnership   Partnership
  • Trust/estate   Trust/estate

Line 4, Exemptions

If you are exempt from backup withholding and/or FATCA reporting, enter in the appropriate space on line 4 any code(s) that may apply to you.

Exempt payee code.

•   Generally, individuals (including sole proprietors) are not exempt from backup withholding.

•   Except as provided below, corporations are exempt from backup withholding for certain payments, including interest and dividends.

•   Corporations are not exempt from backup withholding for payments made in settlement of payment card or third party network transactions.

•   Corporations are not exempt from backup withholding with respect to attorneys’ fees or gross proceeds paid to attorneys, and corporations that provide medical or health care services are not exempt with respect to payments reportable on Form 1099-MISC.

The following codes identify payees that are exempt from backup withholding. Enter the appropriate code in the space in line 4.

1 – An organization exempt from tax under section 501(a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401(f)(2)

2 – The United States or any of its agencies or instrumentalities

3 – A state, the District of Columbia, a U.S. commonwealth or possession, or any of their political subdivisions or instrumentalities

4 – A foreign government or any of its political subdivisions, agencies, or instrumentalities

5 – A corporation

6 – A dealer in securities or commodities required to register in the United States, the District of Columbia, or a U.S. commonwealth or possession

7 – A futures commission merchant registered with the Commodity Futures Trading Commission

8 – A real estate investment trust

9 – An entity registered at all times during the tax year under the Investment Company Act of 1940

10 – A common trust fund operated by a bank under section 584(a)

11 – A financial institution

12 – A middleman known in the investment community as a nominee or custodian

13 – A trust exempt from tax under section 664 or described in section 4947

The following chart shows types of payments that may be exempt from backup withholding. The chart applies to the exempt payees listed above, 1 through 13.

 

IF the payment is for . . .   THEN the payment is exempt for . . .
Interest and dividend payments   All exempt payees except for 7
Broker transactions   Exempt payees 1 through 4 and 6 through 11 and all C corporations. S corporations must not enter an exempt payee code because they are exempt only for sales of noncovered securities acquired prior to 2012.
Barter exchange transactions and patronage dividends   Exempt payees 1 through 4
Payments over $600 required to be reported and direct sales over $5,0001   Generally, exempt payees 1 through 52
Payments made in settlement of payment card or third party network transactions   Exempt payees 1 through 4
1 

See Form 1099-MISC, Miscellaneous Income, and its instructions.

2 

However, the following payments made to a corporation and reportable on Form 1099-MISC are not exempt from backup withholding: medical and health care payments, attorneys’ fees, gross proceeds paid to an attorney reportable under section 6045(f), and payments for services paid by a federal executive agency.

Exemption from FATCA reporting code. The following codes identify payees that are exempt from reporting under FATCA. These codes apply to persons submitting this form for accounts maintained outside of the United States by certain foreign financial institutions. Therefore, if you are only


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submitting this form for an account you hold in the United States, you may leave this field blank. Consult with the person requesting this form if you are uncertain if the financial institution is subject to these requirements. A requester may indicate that a code is not required by providing you with a Form W-9 with “Not Applicable” (or any similar indication) written or printed on the line for a FATCA exemption code.

A – An organization exempt from tax under section 501(a) or any individual retirement plan as defined in section 7701(a)(37)

B – The United States or any of its agencies or instrumentalities

C – A state, the District of Columbia, a U.S. commonwealth or possession, or any of their political subdivisions or instrumentalities

D – A corporation the stock of which is regularly traded on one or more established securities markets, as described in Regulations section 1.1472-1(c)(1)(i)

E – A corporation that is a member of the same expanded affiliated group as a corporation described in Regulations section 1.1472-1(c)(1)(i)

F – A dealer in securities, commodities, or derivative financial instruments (including notional principal contracts, futures, forwards, and options) that is registered as such under the laws of the United States or any state

G – A real estate investment trust

H – A regulated investment company as defined in section 851 or an entity registered at all times during the tax year under the Investment Company Act of 1940

I – A common trust fund as defined in section 584(a)

J – A bank as defined in section 581

K – A broker

L – A trust exempt from tax under section 664 or described in section 4947(a)(1)

M – A tax exempt trust under a section 403(b) plan or section 457(g) plan

Note: You may wish to consult with the financial institution requesting this form to determine whether the FATCA code and/or exempt payee code should be completed.

Line 5

Enter your address (number, street, and apartment or suite number). This is where the requester of this Form W-9 will mail your information returns. If this address differs from the one the requester already has on file, write NEW at the top. If a new address is provided, there is still a chance the old address will be used until the payor changes your address in their records.

Line 6

Enter your city, state, and ZIP code.

Part I. Taxpayer Identification Number (TIN)

Enter your TIN in the appropriate box. If you are a resident alien and you do not have and are not eligible to get an SSN, your TIN is your IRS individual taxpayer identification number (ITIN). Enter it in the social security number box. If you do not have an ITIN, see How to get a TIN below.

If you are a sole proprietor and you have an EIN, you may enter either your SSN or EIN.

If you are a single-member LLC that is disregarded as an entity separate from its owner, enter the owner’s SSN (or EIN, if the owner has one). Do not enter the disregarded entity’s EIN. If the LLC is classified as a corporation or partnership, enter the entity’s EIN.

Note: See What Name and Number To Give the Requester, later, for further clarification of name and TIN combinations.

How to get a TIN. If you do not have a TIN, apply for one immediately. To apply for an SSN, get Form SS-5, Application for a Social Security Card, from your local SSA office or get this form online at www.SSA.gov. You may also get this form by calling 1-800-772-1213. Use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN, or Form SS-4, Application for Employer Identification Number, to apply for an EIN. You can apply for an EIN online by accessing the IRS website at www.irs.gov/Businesses and clicking on Employer Identification Number (EIN) under Starting a Business. Go to www.irs.gov/Forms to view, download, or print Form W-7 and/or Form SS-4. Or, you can go to www.irs.gov/OrderForms to place an order and have Form W-7 and/or SS-4 mailed to you within 10 business days.

If you are asked to complete Form W-9 but do not have a TIN, apply for a TIN and write “Applied For” in the space for the TIN, sign and date the form, and give it to the requester. For interest and dividend payments, and certain payments made with respect to readily tradable instruments, generally you will have 60 days to get a TIN and give it to the requester before you are subject to backup withholding on payments. The 60-day rule does not apply to other types of payments. You will be subject to backup withholding on all such payments until you provide your TIN to the requester.

Note: Entering “Applied For” means that you have already applied for a TIN or that you intend to apply for one soon.

Caution: A disregarded U.S. entity that has a foreign owner must use the appropriate Form W-8.

Part II. Certification

To establish to the withholding agent that you are a U.S. person, or resident alien, sign Form W-9. You may be requested to sign by the withholding agent even if item 1, 4, or 5 below indicates otherwise.

For a joint account, only the person whose TIN is shown in Part I should sign (when required). In the case of a disregarded entity, the person identified on line 1 must sign. Exempt payees, see Exempt payee code, earlier.

Signature requirements. Complete the certification as indicated in items 1 through 5 below.

1. Interest, dividend, and barter exchange accounts opened before 1984 and broker accounts considered active during 1983. You must give your correct TIN, but you do not have to sign the certification.

2. Interest, dividend, broker, and barter exchange accounts opened after 1983 and broker accounts considered inactive during 1983. You must sign the certification or backup withholding will apply. If you are subject to backup withholding and you are merely providing your correct TIN to the requester, you must cross out item 2 in the certification before signing the form.

3. Real estate transactions. You must sign the certification. You may cross out item 2 of the certification.

4. Other payments. You must give your correct TIN, but you do not have to sign the certification unless you have been notified that you have previously given an incorrect TIN. “Other payments” include payments made in the course of the requester’s trade or business for rents, royalties, goods (other than bills


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for merchandise), medical and health care services (including payments to corporations), payments to a nonemployee for services, payments made in settlement of payment card and third party network transactions, payments to certain fishing boat crew members and fishermen, and gross proceeds paid to attorneys (including payments to corporations).

5. Mortgage interest paid by you, acquisition or abandonment of secured property, cancellation of debt, qualified tuition program payments (under section 529), ABLE accounts (under section 529A), IRA, Coverdell ESA, Archer MSA or HSA contributions or distributions, and pension distributions. You must give your correct TIN, but you do not have to sign the certification.

What Name and Number To Give the Requester

 

 

   
For this type of account:   Give name and SSN of:
  1.     Individual   The individual
 
  2.     Two or more individuals (joint account) other than an account maintained by an FFI   The actual owner of the account or, if combined funds, the first individual on the account1
 
  3.     Two or more U.S. persons (joint account maintained by an FFI)   Each holder of the account
 
  4.     Custodial account of a minor (Uniform Gift to Minors Act)   The minor2
 
  5.     a. The usual revocable savings trust (grantor is also trustee)   The grantor-trustee1
  b. So-called trust account that is not a legal or valid trust under state law   The actual owner1
 
  6.     Sole proprietorship or disregarded entity owned by an individual   The owner3
 
  7.     Grantor trust filing under Optional Form 1099 Filing Method 1 (see Regulations section 1.671-4(b)(2)(i)(A))   The grantor*
   
For this type of account:   Give name and EIN of:
  8.     Disregarded entity not owned by an individual   The owner
 
  9.     A valid trust, estate, or pension trust   Legal entity4
 
  10.     Corporation or LLC electing corporate status on Form 8832 or Form 2553   The corporation
 
  11.     Association, club, religious, charitable, educational, or other tax-exempt organization   The organization
 
  12.     Partnership or multi-member LLC   The partnership
 
  13.     A broker or registered nominee   The broker or nominee
 
  14.     Account with the Department of Agriculture in the name of a public entity (such as a state or local government, school district, or prison) that receives agricultural program payments   The public entity
 
  15.     Grantor trust filing under the Form 1041 Filing Method or the Optional Form 1099 Filing Method 2 (see Regulations section 1.671-4(b)(2)(i)(B))   The trust

1 List first and circle the name of the person whose number you furnish. If only one person on a joint account has an SSN, that person’s number must be furnished.

2 Circle the minor’s name and furnish the minor’s SSN.

3 You must show your individual name and you may also enter your business or DBA name on the “Business name/disregarded entity” name line. You may use either your SSN or EIN (if you have one), but the IRS encourages you to use your SSN.

4 List first and circle the name of the trust, estate, or pension trust. (Do not furnish the TIN of the personal representative or trustee unless the legal entity itself is not designated in the account title.) Also see Special rules for partnerships, earlier.

*Note: The grantor also must provide a Form W-9 to trustee of trust.

Note: If no name is circled when more than one name is listed, the number will be considered to be that of the first name listed.

Secure Your Tax Records From Identity Theft

Identity theft occurs when someone uses your personal information such as your name, SSN, or other identifying information, without your permission, to commit fraud or other crimes. An identity thief may use your SSN to get a job or may file a tax return using your SSN to receive a refund.

To reduce your risk:

• Protect your SSN,

• Ensure your employer is protecting your SSN, and

• Be careful when choosing a tax preparer.

If your tax records are affected by identity theft and you receive a notice from the IRS, respond right away to the name and phone number printed on the IRS notice or letter.

If your tax records are not currently affected by identity theft but you think you are at risk due to a lost or stolen purse or wallet, questionable credit card activity or credit report, contact the IRS Identity Theft Hotline at 1-800-908-4490 or submit Form 14039.

For more information, see Pub. 5027, Identity Theft Information for Taxpayers.

Victims of identity theft who are experiencing economic harm or a systemic problem, or are seeking help in resolving tax problems that have not been resolved through normal channels, may be eligible for Taxpayer Advocate Service (TAS) assistance. You can reach TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059.

Protect yourself from suspicious emails or phishing schemes. Phishing is the creation and use of email and websites designed to mimic legitimate business emails and websites. The most common act is sending an email to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft.

The IRS does not initiate contacts with taxpayers via emails. Also, the IRS does not request personal detailed information through email or ask taxpayers for the PIN numbers, passwords, or similar secret access information for their credit card, bank, or other financial accounts.

 


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If you receive an unsolicited email claiming to be from the IRS, forward this message to phishing@irs.gov. You may also report misuse of the IRS name, logo, or other IRS property to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484. You can forward suspicious emails to the Federal Trade Commission at spam@uce.gov or report them at www.ftc.gov/complaint. You can contact the FTC at www.ftc.gov/idtheft or 877-IDTHEFT (877-438-4338). If you have been the victim of identity theft, see www.IdentityTheft.gov and Pub. 5027.

Visit www.irs.gov/IdentityTheft to learn more about identity theft and how to reduce your risk.

Privacy Act Notice

Section 6109 of the Internal Revenue Code requires you to provide your correct TIN to persons (including federal agencies) who are required to file information returns with the IRS to report interest, dividends, or certain other income paid to you; mortgage interest you paid; the acquisition or abandonment of secured property; the cancellation of debt; or contributions you made to an IRA, Archer MSA, or HSA. The person collecting this form uses the information on the form to file information returns with the IRS, reporting the above information. Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation and to cities, states, the District of Columbia, and U.S. commonwealths and possessions for use in administering their laws. The information also may be disclosed to other countries under a treaty, to federal and state agencies to enforce civil and criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. You must provide your TIN whether or not you are required to file a tax return. Under section 3406, payers must generally withhold a percentage of taxable interest, dividend, and certain other payments to a payee who does not give a TIN to the payer. Certain penalties may also apply for providing false or fraudulent information.


The Depositary for the Offer is:

 

 

LOGO

 

If delivering by mail:    By overnight delivery:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
P.O. Box 43011
Providence, RI 02940-3011
   Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
150 Royall Street, Suite V
Canton, MA 02021

The Information Agent may be contacted at the address and telephone number listed below for questions and/or requests for additional copies of the Offer to Purchase, this Letter of Transmittal, the notice of guaranteed delivery and other tender offer materials. You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance. Such copies will be furnished promptly at Merger Sub’s expense.

 

 

LOGO

1290 Avenue of the Americas, 9th Floor

New York, New York 10104

Shareholders, Banks and Brokers may call toll free: 1-866-431-2096

Exhibit (a)(1)(C)

NOTICE OF GUARANTEED DELIVERY

For Tender of Shares of Common Stock

of

COMPUTER TASK GROUP, INCORPORATED

a New York corporation

at

$10.50 Per Share

Pursuant to the Offer to Purchase

Dated August 23, 2023

by

CHICAGO MERGER SUB, INC.

a wholly owned subsidiary of

CEGEKA GROEP NV

 

THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT THE END OF THE DAY, ONE MINUTE AFTER 11:59 P.M. EASTERN TIME, ON SEPTEMBER 20, 2023, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “EXPIRATION DATE”).

This Notice of Guaranteed Delivery, or one substantially in the form hereof, must be used to accept the Offer (as defined below) if (i) certificates representing shares of common stock, par value $0.01 per share (the “Shares”), of Computer Task Group, Incorporated, a New York corporation (“CTG”), are not immediately available, (ii) the procedure for book-entry transfer cannot be completed prior to the Expiration Date or (iii) time will not permit all required documents to reach Computershare Trust Company, N.A. (the “Depositary”) prior to the Expiration Date. This Notice of Guaranteed Delivery may be delivered by overnight courier or mailed to the Depositary. See Section 3 of the Offer to Purchase (as defined below).

 

 

LOGO

 

If delivering by mail:    By overnight delivery:
Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
P.O. Box 43011
Providence, RI 02940-3011
   Computershare Trust Company, N.A.
c/o Voluntary Corporate Actions
150 Royall Street, Suite V
Canton, MA 02021

DELIVERY OF THIS NOTICE OF GUARANTEED DELIVERY TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE WILL NOT CONSTITUTE A VALID DELIVERY.

THIS NOTICE OF GUARANTEED DELIVERY IS NOT TO BE USED TO GUARANTEE SIGNATURES. IF A SIGNATURE ON A LETTER OF TRANSMITTAL IS REQUIRED TO BE GUARANTEED BY AN ELIGIBLE INSTITUTION (AS DEFINED IN SECTION 3 OF THE OFFER TO PURCHASE) UNDER THE INSTRUCTIONS THERETO, SUCH SIGNATURE GUARANTEE MUST APPEAR IN THE APPLICABLE SPACE PROVIDED IN THE SIGNATURE BOX ON THE APPROPRIATE LETTER OF TRANSMITTAL.

The Eligible Institution that completes this Notice of Guaranteed Delivery must communicate the guarantee to the Depositary and must deliver the Letter of Transmittal (as defined below) or an Agent’s Message (as defined in Section 2 of the Offer to Purchase) and certificates for Shares (or Book-Entry Confirmation, as defined in Section 2 of the Offer to Purchase) to the Depositary within the time period shown herein. Failure to do so could result in a financial loss to such Eligible Institution.


Ladies and Gentlemen:

The undersigned hereby tenders to Chicago Merger Sub, Inc., a New York corporation and a wholly owned subsidiary of Cegeka Groep NV, a Belgian limited liability company, upon the terms and subject to the conditions set forth in the offer to purchase, dated August 23, 2023 (as it may be amended or supplemented from time to time, the “Offer to Purchase”), and the related letter of transmittal (as it may be amended or supplemented from time to time, the “Letter of Transmittal” and, together with the Offer to Purchase, the “Offer”), receipt of which is hereby acknowledged, the number of Shares of CTG specified below, pursuant to the guaranteed delivery procedure set forth in Section 3 of the Offer to Purchase. Shares tendered by the Notice of Guaranteed Delivery will be excluded from the calculation of the Minimum Condition (as defined in the Offer to Purchase) unless such Shares and other required documents are received by the Depositary by the Expiration Date.

 

Number of Shares and Certificate No(s)

(if available)

 
 

☐   Check here if Shares will be tendered by book-entry transfer.

Name of Tendering Institution:

    

DTC Account Number:

    

Dated:

    

Name(s) of Record Holder(s):

 
(Please type or print)
Address(es):     
   (Zip Code)
Area Code and Tel. No.     
   (Daytime telephone number)
Signature(s):     
  

 

2


Notice of Guaranteed Delivery

GUARANTEE

(Not to be used for signature guarantee)

The undersigned, an Eligible Institution, hereby (i) represents that the tender of Shares effected hereby complies with Rule 14e-4 under the U.S. Securities Exchange Act of 1934, as amended, and (ii) within two NASDAQ Stock Market trading days of the date hereof, (A) guarantees delivery to the Depositary, at one of its addresses set forth above, of certificates representing the Shares tendered hereby, in proper form for transfer, together with a properly completed and duly executed Letter of Transmittal and any other documents required by the Letter of Transmittal or (B) guarantees a Book-Entry Confirmation of the Shares tendered hereby into the Depositary’s account at The Depository Trust Company (pursuant to the procedures set forth in Section 3 of the Offer to Purchase), together with a properly completed and duly executed Letter of Transmittal, or an Agent’s Message (defined in Section 2 of the Offer to Purchase) in lieu of such Letter of Transmittal, and any other documents required by the Letter of Transmittal. Participants should notify the Depositary prior to covering through the submission of a physical security directly to the Depositary based on a guaranteed delivery that was submitted via DTC’s PTOP platform.

 

Name of Firm:
 
Address:
 
 
(Zip Code)
Area Code and Telephone No.:
 
 
(Authorized Signature)
Name:
 
(Please type or print)
Title:
 
Date:
 

 

NOTE:

DO NOT SEND CERTIFICATES REPRESENTING TENDERED SHARES WITH THIS NOTICE. CERTIFICATES REPRESENTING TENDERED SHARES SHOULD BE SENT WITH YOUR LETTER OF TRANSMITTAL.

 

3

Exhibit (a)(1)(D)

Offer To Purchase For Cash

All Outstanding Shares of Common Stock

of

COMPUTER TASK GROUP, INCORPORATED

a New York corporation

at

$10.50 Per Share

Pursuant to the Offer to Purchase

dated August 23, 2023

by

CHICAGO MERGER SUB, INC.

a wholly owned subsidiary of

CEGEKA GROEP NV

 

THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT THE END OF THE DAY, ONE MINUTE AFTER 11:59 P.M. EASTERN TIME, ON SEPTEMBER 20, 2023, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “EXPIRATION DATE”).

August 23, 2023

To Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees:

We have been engaged by Chicago Merger Sub, Inc., a New York corporation (which we refer to as “Merger Sub”), a wholly owned subsidiary of Cegeka Groep NV, a Belgian limited liability company (which we refer to as “Parent”), to act as Information Agent in connection with Merger Sub’s offer to purchase, subject to certain conditions, including the satisfaction of the Minimum Condition, as defined in the Offer to Purchase (as defined below), any and all of the outstanding shares of common stock, par value $0.01 per share (which we refer to as “Shares”), of Computer Task Group, Incorporated, a New York corporation (which we refer to as “CTG”), at a price of $10.50 per Share, net to the seller in cash, without interest and less any applicable withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated August 20, 2023 (the “Offer to Purchase”), and the related Letter of Transmittal (what we refer to as the “Letter of Transmittal” and what, together with the Offer to Purchase, each as may be amended or supplemented from time to time, we refer to as the “Offer”) enclosed herewith. Please furnish copies of the enclosed materials to those of your clients for whom you hold Shares registered in your name or in the name of your nominee.

The Offer is not subject to any financing condition. The conditions to the Offer are described in Section 15 of the Offer to Purchase.

For your information and for forwarding to your clients for whom you hold Shares registered in your name or in the name of your nominee, we are enclosing the following documents:

1. The Offer to Purchase;

2. The Letter of Transmittal for your use in accepting the Offer and tendering Shares and for the information of your clients, together with the included Internal Revenue Service Form W-9;


3. A notice of guaranteed delivery to be used to accept the Offer if Shares and all other required documents cannot be delivered to Computershare Trust Company, N.A. (the “Depositary”) by the Expiration Date or if the procedure for book-entry transfer cannot be completed by the Expiration Date (the “Notice of Guaranteed Delivery”); and

4. A form of letter which may be sent to your clients for whose accounts you hold Shares registered in your name or in the name of your nominee, with space provided for obtaining such clients’ instructions with regard to the Offer.

We urge you to contact your clients as promptly as possible. Please note that the Offer and withdrawal rights will expire at the end of the day, one minute after 11:59 P.M. Eastern Time on September 20, 2023, unless the Offer is extended or earlier terminated.

The Offer is being made pursuant to the Agreement and Plan of Merger, dated as of August 9, 2023 (the “Merger Agreement”), by and among Parent, Merger Sub and CTG. The Merger Agreement provides, among other things, that, as soon as practicable following the consummation of the Offer and subject to the satisfaction or waiver of the remaining conditions set forth in the Merger Agreement, Merger Sub will be merged with and into CTG (the “Merger”) without a vote of the shareholders of CTG, with CTG continuing after the Merger as the surviving corporation and a wholly owned subsidiary of Parent.

For Shares to be properly tendered pursuant to the Offer, (a) the share certificates or confirmation of receipt of such Shares under the procedure for book-entry transfer, together with a properly completed and duly executed Letter of Transmittal, including any required signature guarantees, or, in the case of book-entry transfer, either such Letter of Transmittal or an Agent’s Message (as defined in Section 2 of the Offer to Purchase) in lieu of such Letter of Transmittal, and any other documents required in the Letter of Transmittal, must be timely received by the Depositary or (b) the tendering shareholder must comply with the guaranteed delivery procedures, all in accordance with the Offer to Purchase and the Letter of Transmittal. You may gain some additional time by making use of the Notice of Guaranteed Delivery. Shares tendered by the Notice of Guaranteed Delivery will be excluded from the calculation of the Minimum Condition (as defined in the Offer to Purchase), unless such Shares and other required documents are received by the Depositary by the Expiration Date.

Except as set forth in the Offer to Purchase, Merger Sub will not pay any fees or commissions to any broker or dealer or other person for soliciting tenders of Shares pursuant to the Offer. Merger Sub will, however, upon request, reimburse brokers, dealers, commercial banks, trust companies and other nominees for customary mailing and handling expenses incurred by them in forwarding the offering material to their customers. Merger Sub will pay all stock transfer taxes applicable to its purchase of Shares pursuant to the Offer, subject to Instruction 6 of the Letter of Transmittal.

Any inquiries you may have with respect to the Offer should be addressed to, and additional copies of the enclosed materials may be obtained from, the undersigned at the address and telephone numbers set forth below.

Very truly yours,

Georgeson Inc.


Nothing contained herein or in the enclosed documents shall render you the agent of Merger Sub, the Information Agent or the Depositary or any affiliate of any of them or authorize you or any other person to use any document or make any statement on behalf of any of them in connection with the Offer other than the enclosed documents and the statements contained therein.

The Information Agent for the Offer is:

 

 

LOGO

1290 Avenue of the Americas, 9th Floor

New York, New York 10104

Shareholders, Banks and Brokers may call toll free: 1-866-431-2096

Exhibit (a)(1)(E)

Offer To Purchase For Cash

All Outstanding Shares of Common Stock

of

COMPUTER TASK GROUP, INCORPORATED

a New York corporation

at

$10.50 Per Share

Pursuant to the Offer to Purchase

dated August 23, 2023

by

CHICAGO MERGER SUB, INC.

a wholly owned subsidiary of

CEGEKA GROEP NV

 

THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT THE END OF THE DAY, ONE MINUTE AFTER 11:59 P.M. EASTERN TIME, ON SEPTEMBER 23, 2023, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “EXPIRATION DATE”).

August 23, 2023

To Our Clients:

Enclosed for your consideration are the Offer to Purchase, dated August 23, 2023 (what we refer to as the “Offer to Purchase”), and the related Letter of Transmittal (what we refer to as the “Letter of Transmittal” and what, together with the Offer to Purchase, as each may be amended or supplemented from time to time, we refer to as the “Offer”) in connection with the offer by Chicago Merger Sub, Inc., a New York corporation (which we refer to as “Merger Sub”), a wholly owned subsidiary of Cegeka Groep NV, a Belgian limited liability company (which we refer to as “Parent”), to purchase, subject to certain conditions, including satisfaction of the Minimum Condition, as defined in the Offer to Purchase, any and all of the outstanding shares of common stock, par value $0.01 per share (which we refer to as “Shares”), of Computer Task Group, Incorporated, a New York corporation (which we refer to as “CTG”), at a price of $10.50 per Share, net to the seller in cash, without interest and less any applicable withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase.

We or our nominees are the holder of record of Shares held for your account. A tender of such Shares can be made only by us as the holder of record and pursuant to your instructions. The Letter of Transmittal

accompanying this letter is furnished to you for your information only and cannot be used by you to tender Shares held by us for your account.

We request instructions as to whether you wish us to tender any or all of the Shares held by us for your account, upon the terms and subject to the conditions set forth in the enclosed Offer to Purchase and the Letter of Transmittal.


Please note carefully the following:

1. The offer price for the Offer is $10.50 per Share, net to the seller in cash, without interest and less any applicable withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase.

2. The Offer is being made for all outstanding Shares.

3. The Offer is being made in connection with the Agreement and Plan of Merger, dated as of August 9, 2023 (together with any amendments or supplements thereto, what we refer to as the “Merger Agreement”), among Parent, Merger Sub and CTG, pursuant to which, after the completion of the Offer and the satisfaction or waiver of the conditions set forth therein, Merger Sub will be merged with and into CTG (which we refer to as the “Merger”) without a vote of the shareholders of CTG in accordance with Section 905(a) of the New York Business Corporation Law, with CTG continuing as the surviving corporation and a wholly owned subsidiary of Parent.

4. The Offer and withdrawal rights will expire at the end of the day, one minute after 11:59 P.M. Eastern Time on September 20, 2023, unless the Offer is extended or earlier terminated.

5. The Offer is not subject to any financing condition. The Offer is subject to the conditions described in Section 15 of the Offer to Purchase.

6. Tendering shareholders who are record owners of their Shares and who tender directly to Computershare Trust Company, N.A. (the “Depositary”) will not be obligated to pay brokerage fees, commissions or similar expenses or, except as otherwise provided in Instruction 6 of the Letter of Transmittal, stock transfer taxes with respect to the purchase of Shares by Merger Sub pursuant to the Offer.

If you wish to have us tender any or all of your Shares, then please so instruct us by completing, executing, detaching and returning to us the Instruction Form on the detachable part hereof. An envelope to return your instructions to us is enclosed. If you authorize tender of your Shares, then all such Shares will be tendered unless otherwise specified on the Instruction Form.

Your prompt action is requested. Your Instruction Form should be forwarded to us in ample time to permit us to submit the tender on your behalf before the Expiration Date.

The Offer is not being made to, nor will tenders be accepted from or on behalf of, holders of Shares in any jurisdiction in which the making of the Offer or acceptance thereof would not be in compliance with the securities, “blue sky” or other laws of such jurisdiction. In those jurisdictions where applicable laws require the Offer to be made by a licensed broker or dealer, the Offer shall be deemed to be made on behalf of Merger Sub by one or more registered brokers or dealers licensed under the laws of such jurisdiction to be designated by Merger Sub.


INSTRUCTION FORM

With Respect to the Offer to Purchase for Cash

All Outstanding Shares of Common Stock

of

COMPUTER TASK GROUP, INCORPORATED

a New York corporation

at

$10.50 Per Share

Pursuant to the Offer to Purchase

dated August 23, 2023

by

CHICAGO MERGER SUB, INC.

a wholly owned subsidiary of

CEGEKA GROEP NV

The undersigned acknowledge(s) receipt of your letter and the enclosed Offer to Purchase, dated August 23, 2023 (what we refer to as the “Offer to Purchase”), and the related Letter of Transmittal (what we refer to as the “Letter of Transmittal” and what, together with the Offer to Purchase, as each may be amended or supplemented from time to time, we refer to as the “Offer”), in connection with the offer by Chicago Merger Sub, Inc., a New York corporation (which we refer to as “Merger Sub”), a wholly owned subsidiary of Cegeka Groep NV, a Belgian limited liability company, to purchase, subject to certain conditions, including the satisfaction of the Minimum Condition, as defined in the Offer to Purchase, any and all of the outstanding shares of common stock, par value $0.01 per share (which we refer to as “Shares”), of Computer Task Group, Incorporated, a New York corporation, at a purchase price of $10.50 per Share, net to the seller in cash, without interest and less any applicable withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase.

The undersigned hereby instruct(s) you to tender to Merger Sub the number of Shares indicated below or, if no number is indicated, all Shares held by you for the account of the undersigned, upon the terms and subject to the conditions set forth in the Offer. The undersigned understands and acknowledges that all questions as to validity, form and eligibility of the surrender of any certificate representing Shares submitted on my behalf will be determined by Merger Sub and such determination shall be final and binding.

 

ACCOUNT

NUMBER:

   

NUMBER OF SHARES BEING TENDERED HEREBY: SHARES*

 

*

Unless otherwise indicated, it will be assumed that all Shares held by us for your account are to be tendered.


The method of delivery of this document is at the election and risk of the tendering shareholder. If delivery is by mail, then registered mail with return receipt requested, properly insured, is recommended. In all cases, sufficient time should be allowed to ensure timely delivery prior to the Expiration Date (as defined in the Offer to Purchase).

 

Dated:            
                Signature(s)
        
       Please Print Name(s)
Address:      
(Include Zip Code)
Area code and Telephone no.      
Tax Identification or Social Security No.     

Exhibit (a)(1)(F)

This announcement is neither an offer to purchase nor a solicitation of an offer to sell Shares (as defined below), and the provisions herein are subject in their entirety to the provisions of the Offer (as defined below). The Offer is made solely by the Offer to Purchase, dated August 23, 2023, and the related Letter of Transmittal and any amendments or supplements thereto, and is being made to all holders of Shares. The Offer is not being made to (nor will tenders be accepted from or on behalf of) holders of Shares in any jurisdiction in which the making of the Offer or the acceptance thereof would not be in compliance with the securities, “blue sky” or other laws of such jurisdiction. In those jurisdictions where applicable laws require the Offer to be made by a licensed broker or dealer, the Offer will be deemed to be made on behalf of Merger Sub (as defined below) by one or more registered brokers or dealers licensed under the laws of such jurisdiction to be designated by Merger Sub.

Notice of Offer to Purchase for Cash

All Outstanding Shares of Common Stock

of

COMPUTER TASK GROUP, INCORPORATED

at

$10.50 Per Share

pursuant to the Offer to Purchase

dated August 23, 2023

by

CHICAGO MERGER SUB, INC.

a wholly owned subsidiary of

CEGEKA GROEP NV

Chicago Merger Sub, Inc., a New York corporation (“Merger Sub”) and a wholly owned subsidiary of Cegeka Groep NV, a Belgian limited liability company (“Parent”), is offering to purchase all outstanding shares of common stock, par value $0.01 per share (the “Shares”), of Computer Task Group, Incorporated, a New York corporation (“CTG”), at a price of $10.50 per Share, net to the seller in cash (the “Offer Price”), without interest and less any applicable withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated August 23, 2023 (the “Offer to Purchase”), and in the related Letter of Transmittal (the “Letter of Transmittal” which, together with the Offer to Purchase and other related materials, as each may be amended or supplemented from time to time, constitutes the “Offer”).

Shareholders of record who tender directly to Computershare Trust Company, N.A. (the “Depositary”) will not be obligated to pay brokerage fees, commissions or similar expenses or, except as otherwise provided in the Letter of Transmittal, stock transfer taxes with respect to the purchase of Shares by Merger Sub pursuant to the Offer. Shareholders who hold their Shares through a broker, dealer, commercial bank, trust company or other nominee should consult with such institution as to whether it charges any service fees or commissions.

THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT THE END OF THE DAY, ONE MINUTE AFTER 11:59 P.M., EASTERN TIME, ON SEPTEMBER 20, 2023, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED.


The Offer is being made pursuant to the Agreement and Plan of Merger, dated as of August 9, 2023 (as it may be amended from time to time, the “Merger Agreement”), by and among Parent, Merger Sub and CTG. The Merger Agreement provides, among other things, that following the consummation of the Offer and subject to the satisfaction or waiver of certain conditions, Merger Sub will be merged with and into CTG (the “Merger”) as soon as practicable without a vote of the shareholders of CTG in accordance with Section 905(a) of the New York Business Corporation Law (“NYBCL”), with CTG continuing as the surviving corporation (which we refer to as the “Surviving Corporation”) in the Merger and a wholly owned subsidiary of Parent. In the Merger, each Share outstanding immediately prior to the effective time of the Merger (the “Effective Time”) (other than Shares held (i) in the treasury of CTG or by Parent, Merger Sub or any of Parent’s other subsidiaries, which Shares will be cancelled and will cease to exist or (ii) by shareholders who validly exercise appraisal rights under New York law with respect to such Shares) will be automatically cancelled and converted into the right to receive the Offer Price, without interest and less any applicable withholding taxes. As a result of the Merger, CTG will cease to be a publicly traded company and will become wholly owned by Cegeka. Under no circumstances will interest be paid on the Offer Price, regardless of any extension of the Offer or any delay in making payment for Shares. The Merger Agreement is more fully described in the Offer to Purchase.

The Offer is conditioned upon, among other things, (a) the absence of a termination of the Merger Agreement in accordance with its terms (the “Termination Condition”) and (b) the satisfaction of:

(i) the Minimum Condition (as described below);

(ii) the Regulatory Condition (as described below);

(iii) the Governmental Impediment Condition (as described below); and

(iv) the CFIUS Approval Condition (as described below).

The Offer is not subject to a financing condition. The Minimum Condition requires that the number of Shares validly tendered in accordance with the terms of the Offer and not validly withdrawn on or prior to the end of the day, one minute after 11:59 P.M., on September 20, 2023 (the “Expiration Date”, unless Merger Sub shall have extended the period during which the Offer is open in accordance with the Merger Agreement, in which event “Expiration Date” shall mean the latest time and date at which the Offer, as so extended by Merger Sub, will expire), together with all other Shares (if any) beneficially owned by Parent and its affiliates, equals one Share more than 66 2/3% of the sum of (i) the total number of Shares outstanding at the time of the expiration of the Offer, plus (ii) the total number of Shares that CTG is required to issue upon conversion, settlement, exchange or exercise of all options, warrants, rights or securities for which the holder has, by the time of the expiration of the Offer, elected to convert, settle, exchange or exercise or for which the conversion, settlement, exchange or exercise date has already occurred (but without duplication).

The Regulatory Condition requires that (i) any waiting period (or any extension thereof) applicable to the Offer under the HSR Act has expired or been terminated, and (ii) the applicable governmental bodies of competent jurisdiction in Belgium and Luxembourg have granted merger control or other applicable regulatory clearance, or failed to render a decision within the applicable waiting period under relevant law and such failure is considered under such law to be a grant of all requisite approvals, consents or clearances under such law to effectuate the Transactions, or provided confirmation that a merger control filing obligation is not triggered as a result of the Transactions. However, the requirements of the HSR Act do not apply to either the acquisition of Shares in the Offer or to the Merger because the acquisition of CTG’s non-US entities and assets is exempt and Parent has determined, in good faith, that the fair market value of CTG’s U.S. entities and assets is below the applicable reportability threshold.

The Governmental Impediment Condition requires that there has not been any judgment, order, injunction, decree or ruling, which remains in effect, by any governmental body, restraining, enjoining or otherwise preventing the acquisition of or payment for Shares pursuant to the Offer or the execution and delivery of the Merger Agreement, which includes as an annex the Tender and Support Agreement, dated as of August 9, 2023, among Parent, Merger Sub and the CTG shareholders party thereto (the “Support Agreement”), and all of the transactions contemplated by the Merger Agreement, including the Offer, the Merger and the Top-Up Option (the “Transactions”), nor has there


been any law promulgated, enacted, issued or deemed applicable to any of the Transactions by any governmental body which prohibits or makes illegal the acquisition of or payment for Shares pursuant to the Offer or the consummation of the Merger.

The CFIUS Approval Condition requires that (i) the parties shall have received written notice from the Committee on Foreign Investment in the United States and each member agency thereof, acting in such capacity (“CFIUS”), that review or investigation under the Defense Production Act of 1950, as amended and codified at 50 U.S.C. § 4565, including all implementing regulations thereof (the “DPA”), of the Transactions has been concluded, and CFIUS shall have determined that there are no unresolved national security concerns with respect to the Transactions, and advised that action under the DPA, and any investigation related thereto, has been concluded with respect to the Transactions; (ii) CFIUS shall have concluded that the Transactions are not a covered transaction and not subject to review under the DPA; or (iii) CFIUS has sent a report to the President of the United States requesting the President’s decision on the joint voluntary notice with respect to the Transactions prepared by the parties and submitted to CFIUS in accordance with the requirements of the DPA and either (a) the period under the DPA during which the President may announce his decision to take action to suspend or prohibit the Transactions shall have elapsed without any such action being announced or taken, or (b) the President shall have announced a decision to take no action to suspend or prohibit the Transactions; provided, that Parent and Merger Sub will promptly waive the CFIUS Approval Condition if (a) all of the other conditions set forth in the Merger Agreement are satisfied or waived by Parent or Merger Sub, to the extent waivable by Parent or Merger Sub and (b) such waiver of the CFIUS Approval Condition would not adversely affect, or would reasonably be expected to adversely affect, Parent or any of its subsidiaries, including the Surviving Corporation following the Effective Time, as determined by Parent in its reasonable judgment. The conditions to the Offer (the “Offer Conditions”) are more fully described in Section 15 — “Conditions to the Offer” of the Offer to Purchase.

The board of directors of CTG, among other things, has (i) determined that the Merger Agreement and transactions contemplated thereby are fair to and in the best interest of CTG and its shareholders, (ii) declared it advisable to enter into the Merger Agreement, (iii) approved the execution, delivery and performance by CTG of the Merger Agreement and the consummation of the transactions contemplated thereby, including the Offer and the Merger, (iv) resolved that the Merger be effected under Section 905 of the NYBCL and (v) resolved to recommend that the shareholders of CTG accept the Offer and tender their Shares to Merger Sub pursuant to the Offer.

The Merger Agreement contains provisions to govern the circumstances under which Merger Sub is required or permitted to extend the Offer and under which Parent is required to cause Merger Sub to extend the Offer. Specifically, the Merger Agreement provides that:

 

   

if, as of the then-scheduled Expiration Date, any Offer Condition has not been satisfied or waived, to the extent waivable by Merger Sub or Parent, Merger Sub or Parent may, in their sole discretion, extend the Offer on one or more occasions, for an additional period of up to ten (10) business days per extension, to permit such Offer Condition to be satisfied;

 

   

Merger Sub shall (and Parent shall cause Merger Sub to) extend the Offer for any period required by applicable securities law, rule or regulation, any interpretation or position of the SEC or its staff or NASDAQ applicable to the Offer;

 

   

Merger Sub shall (and Parent shall cause Merger Sub to) extend the Offer for periods of up to ten (10) business days per extension, until any waiting period (and any extension thereof) applicable to the consummation of the Offer under the HSR Act and any foreign antitrust or competition-related law has expired or been terminated; and

 

   

if, as of the then-scheduled Expiration Date, any Offer Condition has not been satisfied or waived, at the request of CTG, Merger Sub shall (and Parent shall cause Merger Sub to) extend the Offer for an additional period of up to ten (10) business days per extension, to permit such Offer Condition to be satisfied.


However, Merger Sub is not required to extend the Offer beyond the earlier to occur of the valid termination of the Merger Agreement in compliance with its terms and February 9, 2024 (which date may be extended by up to ninety days under certain circumstances) (such earlier occurrence, the “Extension Deadline”) and may not extend the Offer beyond the Extension Deadline without CTG’s consent. Except in the case of the valid termination of the Merger Agreement, Merger Sub may not terminate the Offer, or permit the Offer to expire, prior to the Extension Deadline without the prior written consent of CTG. Merger Sub has agreed that it will terminate the Offer immediately upon any termination of the Merger Agreement.

Under the Merger Agreement, CTG has granted Merger Sub an irrevocable option (the “Top-Up Option”) to purchase at a price per share equal to the Offer Price that number of newly issued, fully paid and nonassessable Shares (the “Top-Up Shares”) equal to the lesser of (i) the lowest number of Shares that, when added to the number of Shares owned by Parent, Merger Sub and any of their respective subsidiaries at the time of exercise of the Top-Up Option, shall constitute one share more than 90% of the outstanding Shares immediately after the issuance of the Top-Up Shares on a fully-diluted basis (which assumes conversion or exercise of all derivative securities regardless of the conversion or exercise price, the vesting schedule or other terms and conditions thereof) and (ii) the aggregate number of authorized but unissued and unreserved Shares (including as authorized and unissued Shares, for purposes hereof, any Shares held in the treasury of CTG). The Top-Up Option will be exercisable only once, in whole but not in part, at any time following the Offer Acceptance Time (as defined below) and prior to the earlier to occur of (i) the Effective Time and (ii) the termination of the Merger Agreement in accordance with its terms.

In the event the Minimum Condition is satisfied and exercise of the Top-Up Option would result in Merger Sub and Parent collectively owning one share more than 90% of the total Shares on a fully diluted basis (assuming conversion or exercise of all derivative securities regardless of the conversion or exercise price, the vesting schedule or other terms and conditions thereof) then outstanding, then Merger Sub will be obligated to exercise the Top-Up Option and will do so on the same day on which Merger Sub accepts for payment Shares tendered pursuant to the Offer; provided that in no event shall the Top-Up Option be exercised (i) for a number of Shares in excess of the number of authorized but unissued and unreserved Shares (including as authorized and unissued Shares, for purposes hereof, any Shares held in the treasury of CTG) or (ii) if any provision of applicable law shall prohibit the exercise of the Top-Up Option or the delivery of the Top-Up Shares.

Subject to the terms and conditions of the Merger Agreement and applicable law, Merger Sub expressly reserves the right to (i) increase the Offer Price, (ii) waive any Offer Condition and (iii) make any other changes in the terms and conditions of the Offer that are not inconsistent with the Merger Agreement. However, without the consent of CTG, Parent and Merger Sub are not permitted to (i) decrease the Offer Price, (ii) change the form of consideration payable in the Offer, (iii) decrease the maximum number of Shares sought to be purchased in the Offer, (iv) impose conditions or requirements to the Offer in addition to the Offer Conditions, (v) amend, modify or waive the Minimum Condition, the Termination Condition, the Regulatory Condition, the Governmental Impediment Condition, or the CFIUS Approval Condition, (vi) otherwise amend or modify any of the other terms of the Offer in a manner that adversely affects, or would reasonably be expected to adversely affect, any holder of Shares in its capacity as such, (vii) terminate the Offer or accelerate, extend or otherwise change the Expiration Date except as provided in the Merger Agreement, or (viii) provide any “subsequent offering period” (or any extension thereof) within the meaning of Rule 14d-11 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Any extension, delay, termination or amendment of the Offer will be followed as promptly as practicable by public announcement thereof, and such announcement in the case of an extension will be made no later than 9:00 a.m., Eastern Time, on the next business day after the previously scheduled Expiration Date. Without limiting the manner in which Merger Sub may choose to make any public announcement, it currently intends to make announcements regarding the Offer by issuing a press release and making any appropriate filing with the SEC.

Acceptance and payment for Shares pursuant to and subject to the conditions of the Offer will occur on September 21, 2023 (the “Offer Closing”), unless we extend the Offer pursuant to the terms of the Merger Agreement. The date and time at which such Offer Closing occurs is referred to as the “Offer Acceptance Time”.

Because the Merger will be governed by Section 905(a) of the NYBCL, Merger Sub does not expect there to be a significant period of time between the Offer Closing and the consummation of the Merger.


On the terms of and subject to the Offer Conditions and the Merger Agreement, Merger Sub shall, and Parent shall cause Merger Sub to, accept for payment all Shares validly tendered and not withdrawn pursuant to the Offer promptly after the Expiration Date, and to pay for such Shares promptly after the Offer Acceptance Time. For purposes of the Offer, Merger Sub will be deemed to have accepted for payment, and thereby purchased, Shares validly tendered and not properly withdrawn as, if and when Merger Sub gives oral or written notice to the Depositary of its acceptance for payment of such Shares pursuant to the Offer. Upon the terms and subject to the conditions of the Offer, payment for Shares accepted for payment pursuant to the Offer will be made by deposit of the aggregate consideration for such Shares with the Depositary, which will act as paying agent for tendering shareholders for the purpose of receiving payments from Merger Sub and transmitting such payments to tendering shareholders whose Shares have been accepted for payment. If Merger Sub extends the Offer, is delayed in its acceptance for payment of Shares or is unable to accept Shares for payment pursuant to the Offer for any reason, then, without prejudice to Merger Sub’s rights under the Offer and the Merger Agreement, the Depositary may retain tendered Shares on Merger Sub’s behalf, and such Shares may not be withdrawn except to the extent that tendering shareholders are entitled to withdrawal rights as described in the Offer to Purchase and as otherwise required by Rule 14e-1(c) under the Exchange Act. Under no circumstances will Parent or Merger Sub pay interest on the Offer Price by reason of any extension of the Offer or any delay in making such payment for Shares.

No alternative, conditional or contingent tenders will be accepted. In all cases, payment for Shares accepted for payment pursuant to the Offer will only be made after timely receipt by the Depositary of (i) certificates evidencing such Shares (the “Share Certificates”) or confirmation of a book-entry transfer of such Shares (a “Book-Entry Confirmation”) into the Depositary’s account at The Depository Trust Company (“DTC”) pursuant to the procedures set forth in the Offer to Purchase, (ii) the Letter of Transmittal (or a manually signed facsimile thereof), properly completed and duly executed, with any required signature guarantees or, in the case of a book-entry transfer, an Agent’s Message (as described in the Offer to Purchase) in lieu of the Letter of Transmittal and (iii) any other documents required by the Letter of Transmittal. Accordingly, tendering shareholders may be paid at different times depending upon when Share Certificates or Book-Entry Confirmations with respect to Shares are actually received by the Depositary.

Shares tendered pursuant to the Offer may be withdrawn at any time prior to the Expiration Date and, unless theretofore accepted for payment by Merger Sub pursuant to the Offer, may also be withdrawn at any time after October 23, 2023, which is the first business day following the 60th day after the date of the commencement of the Offer.

For a withdrawal to be proper and effective, a written notice of withdrawal must be timely received by the Depositary at one of its addresses set forth on the back cover page of the Offer to Purchase. Any such notice of withdrawal must specify the name of the person who tendered the Shares to be withdrawn, the number of Shares to be withdrawn and the name in which the Share Certificates are registered if different from that of the person who tendered such Shares. If Share Certificates evidencing Shares to be withdrawn have been delivered or otherwise identified to the Depositary, then, prior to the physical release of such Share Certificates, the serial numbers shown on such Share Certificates must be submitted to the Depositary and the signature(s) on the notice of withdrawal must be guaranteed by an Eligible Institution (as described in the Offer to Purchase), unless such Shares have been tendered for the account of an Eligible Institution. If Shares have been tendered pursuant to the procedure for book-entry transfer as set forth in the Offer to Purchase, any notice of withdrawal must also specify the name and number of the account at DTC to be credited with the withdrawn Shares.

Withdrawals of Shares may not be rescinded. Any Shares properly withdrawn will thereafter be deemed not to have been validly tendered for purposes of the Offer. However, withdrawn Shares may be re-tendered by again following one of the procedures described in the Offer to Purchase at any time prior to the Expiration Date.

Merger Sub will determine, in its sole discretion, all questions as to the form and validity (including time of receipt) of any notice of withdrawal and Merger Sub’s determination will be final and binding. None of Parent, Merger Sub, the Depositary, the Information Agent or any other person will be under any duty to give notice of any defects or irregularities in any notice of withdrawal or incur any liability for failure to give any such notification.


The information required to be disclosed by paragraph (d)(1) of Rule 14d-6 of the General Rules and Regulations under the Exchange Act is contained in the Offer to Purchase and is incorporated herein by reference.

CTG has provided Merger Sub with CTG’s shareholder list and security position listings for the purpose of disseminating the Offer to Purchase, the related Letter of Transmittal and other related materials to holders of Shares. The Offer to Purchase and related Letter of Transmittal will be mailed to record holders of Shares whose names appear on CTG’s shareholder list and will be furnished to brokers, dealers, commercial banks, trust companies and similar persons whose names, or the names of whose nominees, appear on the shareholder list or, if applicable, who are listed as participants in a clearing agency’s security position listing for subsequent transmittal to beneficial owners of Shares.

The receipt of cash in exchange for Shares pursuant to the Offer or the Merger will be a taxable transaction for U.S. federal income tax purposes. See Section 5 — “Certain U.S. Federal Income Tax Considerations” of the Offer to Purchase for a more detailed discussion of the tax consequences of the Offer and the Merger.

The Offer to Purchase and the related Letter of Transmittal contain important information. Holders of Shares should carefully read both documents in their entirety before any decision is made with respect to the Offer.

Questions and requests for assistance may be directed to the Information Agent at its address and telephone numbers set forth below. Requests for copies of the Offer to Purchase, the Letter of Transmittal, the notice of guaranteed delivery and other tender offer materials may be directed to the Information Agent. Such copies will be furnished promptly at Merger Sub’s expense. Shareholders may also contact brokers, dealers, commercial banks or trust companies for assistance concerning the Offer. Except as set forth in the Offer to Purchase, neither Merger Sub nor Parent will pay any fees or commissions to any broker or dealer or any other person for soliciting tenders of Shares pursuant to the Offer. Brokers, dealers, commercial banks, trust companies or other nominees will, upon request, be reimbursed by Merger Sub for customary mailing and handling expenses incurred by them in forwarding the Offer materials to their customers.

The Information Agent for the Offer is:

 

 

LOGO

1290 Avenue of the Americas, 9th Floor

New York, New York 10104

Shareholders, Banks and Brokers may call toll free: 1-866-431-2096

August 23, 2023

 

5

Exhibit (a)(1)(G)

INSTRUCTION FORM

COMPUTER TASK GROUP, INCORPORATED AMENDED AND RESTATED FIRST EMPLOYEE

STOCK PURCHASE PLAN

With Respect to the

Offer to Purchase for Cash

All Outstanding Shares of Common Stock

of

COMPUTER TASK GROUP, INCORPORATED

at

$10.50 Per Share

by

CHICAGO MERGER SUB, INC.

a wholly owned subsidiary of

CEGEKA GROEP NV

BEFORE SUBMITTING THIS INSTRUCTION FORM TO COMPUTERSHARE TRUST COMPANY, N.A., THE PLAN ADMINISTRATOR (THE “PLAN ADMINISTRATOR”) FOR THE COMPUTER TASK GROUP, INCORPORATED AMENDED AND RESTATED FIRST EMPLOYEE STOCK PURCHASE PLAN (THE “PLAN”), YOU SHOULD CAREFULLY READ THE ACCOMPANYING OFFER DOCUMENTS AND ALL ENCLOSED MATERIALS. CAPITALIZED TERMS USED AND NOT DEFINED HEREIN SHALL HAVE THE MEANINGS ASCRIBED TO SUCH TERMS IN THE OFFER TO PURCHASE, DATED AUGUST 23, 2023 (THE “OFFER TO PURCHASE”), AND IN THE RELATED LETTER OF TRANSMITTAL (THE “LETTER OF TRANSMITTAL” AND, TOGETHER WITH THE OFFER TO PURCHASE, AS EACH MAY BE AMENDED FROM TIME TO TIME, THE “OFFER”).

Your prompt action is requested. Although the Offer will expire one minute after 11:59 p.m., New York City time, on Wednesday, September 20, 2023, we must receive your Instruction Form by no later than 5:00 p.m., New York City time, on Monday, September 18, 2023 (the “Instruction Deadline”), in order to permit us to tender Shares allocated to your account on your behalf before the Offer expires.

THE PLAN ADMINISTRATOR MAKES NO RECOMMENDATION AS TO YOUR DECISION TO TENDER OR NOT TENDER SHARES ALLOCATED TO YOUR ACCOUNT.

If you wish to tender all or some of your Shares, please check the appropriate boxes below, and sign and return this Instruction Form in the envelope provided, or at the addresses shown on the reverse by the Instruction Deadline.

 

   YES, TENDER all of the Shares allocated to my account.
   YES, TENDER only the number of Shares allocated to my account, as indicated below:
   Number of Shares to be tendered

If you do not wish to tender your Shares, you do not have to return this form.

 

 

Name(s) and Address(es) of Registered Holders

(Please fill in, if blank, exactly as names(s) appear(s) on certificate(s)) (Attach additional signed list if necessary)

 


As a participant in the Plan, I acknowledge receipt of the Offer to Purchase and the Letter of Transmittal.

I hereby direct the Plan Administrator to tender or not to tender the Shares allocated to my account under the Plan as indicated above.

I understand that if I sign, date and return this Instruction Form but do not provide the Plan Administrator with direction, the Plan Administrator will treat this action as an instruction by me not to tender the Shares allocated to my account.

 

 

    

 

Signature               Date

 

    
Daytime Telephone #     

Your instructions may be changed or revoked at any time up until the Instruction Deadline by delivering a new Instruction Form to the Plan Administrator.

You may return your Instruction Form in the enclosed envelope:

By First Class Mail:

COMPUTERSHARE TRUST CO. N.A.

c/o Voluntary Corporate Actions

P.O. Box 43011

Providence, RI 02940-3011

By Registered or Certified or Overnight Delivery:

COMPUTERSHARE TRUST CO. N.A.

c/o Voluntary Corporate Actions Suite V

150 Royall Street, Suite V, Canton, MA 02021

Exhibit (b)(1)

EXECUTION COPY

 

KBC BANK NV

Havenlaan 2, 1080 Brussels

Belgium

  

BELFIUS BANK SA/NV

Karel Rogierplein 11, 1210 Sint-Joost-ten-Node

Belgium

  

ING BELGIUM SA/NV

Marnixlaan 24, 1000

Brussels

Belgium

CONFIDENTIAL

August 8, 2023

Cegeka Groep NV

Kempische Steenweg 307

3500 Hasselt

Belgium

Project Chicago

Amended and Restated Commitment Letter

Ladies and Gentlemen:

Reference is hereby made to the Commitment Letter, dated as of July 28, 2023 (the “Original Commitment Letter”) by and among you and us (each as defined below). The Original Commitment Letter is hereby amended and restated and superseded in its entirety as follows:

You have advised each of KBC BANK NV (“KBC”), BELFIUS BANK SA/NV (“Belfius”) and ING BELGIUM SA/NV (“ING” and together with KBC and Belfius, “we,” “us” or the “Commitment Parties”) that Cegeka Groep NV (the “Company” or “you”), directly or indirectly, itself or through a wholly-owned subsidiary (if any, “MergerSub”), intends to (i) acquire (the “Acquisition”) 100% of the issued and outstanding equity interests in and (if applicable) merge into and with the entity previously identified to the Commitment Parties by the Company as “Chicago” (“Target”; and together with its subsidiaries, the “Acquired Business”), (ii) refinance certain existing indebtedness of the Acquired Business, and (iii) consummate certain other transactions, in each case as described in the transaction description attached hereto as Exhibit A (the “Transaction Description”). Capitalized terms used but not defined herein shall have the respective meanings assigned to them in the Transaction Description or the Term Sheet (this commitment letter, the Transaction Description, the Term Sheet attached hereto as Exhibit B (the “Term Sheet”) and the Conditions Precedent attached hereto as Exhibit C (the “Conditions Annex”), and any other attachments or annexes to any of the foregoing, collectively, the “Commitment Letter”). All references in this Commitment Letter and the Fee Letters (as defined below) to (i) “dollars” or “$” are references to United States dollars and (ii) “euros” or “” are references to the single currency of the applicable member states of the European Union.

 

1.

Commitments.

In connection with the Transactions, each of KBC, Belfius and ING (each a “Lender” and, collectively, the “Lenders”) is pleased to advise you of its commitment to provide, severally and not jointly, that portion of the aggregate principal amount of each Credit Facility (together the “Credit Facilities”) set forth opposite its name on Schedule I hereto, subject only to the satisfaction (or waiver by the Mandated Lead Arrangers (as defined below)) of the conditions set forth in Section 5 hereof and in the Conditions Annex.


2.

Titles and Roles.

It is agreed that (i) KBC will act as exclusive coordinator for all of the Credit Facilities (in such capacity, the “Coordinator”), (ii) KBC, Belfius and ING will act as exclusive joint arrangers for each of the Credit Facilities (in such capacities, each a “Mandated Lead Arranger” and, collectively, the “Mandated Lead Arrangers”), and (ii) KBC will act as facility agent (in such capacity, the “Facility Agent”) and security agent (in such capacity, the “Security Agent”) for all of the Credit Facilities. It is further agreed that, to the extent practicable, each of KBC, ING and Belfius shall appear together under a centered title in the same order as in the Commitment Letter at the top of all offering or marketing materials in respect of the Credit Facilities, and will perform the duties and exercise the authority customarily performed and exercised by joint arrangers in such roles with such respective placement. You agree that no other agents, co-agents, arrangers or coordinators will be appointed and no other titles will be awarded unless you and the Coordinator shall so agree.

 

3.

Information.

You hereby represent and warrant to the Commitment Parties that, (a) all written information and written data (other than the Projections), that has been or will be made available to any Commitment Party by you or by any of your representatives on your behalf in connection with the transactions contemplated hereby (the “Information”), when taken as a whole, is or will be, when furnished, correct in all material respects and does not or will not, when furnished, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made (provided that, with respect to the Acquired Business and its assets and businesses, such representation and warranty is made to the best of your knowledge), and (b) all financial estimates, forecasts and other forward-looking information that have been or will be made available to any Commitment Party by you or by any of your representatives on your behalf in connection with the transactions contemplated hereby (the “Projections”) have been, or will be, prepared in good faith based upon assumptions that are believed by you to be reasonable at the time prepared and at the time the related Projections are so furnished; it being understood that the Projections are as to future events and are not to be viewed as facts, the Projections are subject to significant uncertainties and contingencies, many of which are beyond your control, that no assurance can be given that any particular Projections will be realized and that actual results during the period or periods covered by any such Projections may differ significantly from the projected results and such differences may be material. You agree that, if at any time prior to the date of the consummation of the Acquisition and the initial funding of the Credit Facilities (the “Closing Date”), you become aware that any of the representations and warranties in the preceding sentence would be incorrect in any material respect or if the Information and the Projections were being furnished, and such representations were being made, at such time, then you will (with respect to the Acquired Business and its subsidiaries, will use commercially reasonable efforts to) promptly supplement the Information and the Projections such that (with respect to the Information relating to the Acquired Business and its subsidiaries, to the best of your knowledge) such representations and warranties are correct in all material respects under those circumstances. In arranging and syndicating the Credit Facilities, each of the Commitment Parties (i) will be entitled to use and rely primarily on the Information and the Projections without responsibility for independent verification thereof and (ii) does not assume responsibility for the accuracy or completeness of the Information or the Projections.

 

4.

Fees.

As consideration for (i) the commitments of the Lenders hereunder and (ii) the agreements of the Coordinator, Security Agent, Facility Agent, Mandated Lead Arrangers and the Lenders to perform the services described herein, you agree to pay (or cause to be paid) the fees set forth in the Term Sheet and/or Fee Letters dated the date hereof and delivered herewith with respect to the Credit Facilities (the “Fee Letters”), if and to the extent payable. Once paid, such fees shall not be refundable under any circumstances except as otherwise expressly agreed in writing by us and you or set forth herein or therein.

 

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5.

Conditions.

The Lenders’ commitments hereunder to fund the Credit Facilities on the Closing Date are subject solely to the conditions expressly set forth in the Conditions Annex, and upon the satisfaction (or waiver by the Mandated Lead Arrangers) of such conditions, the initial funding of the Credit Facilities shall occur. There are no conditions (implied or otherwise) to the commitments hereunder, and there will be no conditions (implied or otherwise) under the Facilities Agreement to the funding of the Credit Facilities on the Closing Date, including compliance with the terms of this Commitment Letter, the Fee Letters and the Facilities Agreement or any other agreement, other than the satisfaction (or waiver by the Mandated Lead Arrangers) of the conditions expressly set forth in the Conditions Annex.

Notwithstanding anything in this Commitment Letter, the Fee Letters, the Facilities Agreement or any other letter agreement or other undertaking concerning the financing of the Transactions to the contrary, (a) the only representations and warranties the accuracy of which shall be a condition to the funding of the Credit Facilities on the Closing Date shall be (i) such of the representations and warranties made by the Acquired Business with respect to the Acquired Business in the Acquisition Agreement as are material to the interests of the Lenders, but only to the extent that you (or any of your affiliates) have the right (taking into account any applicable cure provisions) to terminate your (or any of your affiliates’) obligations under the Acquisition Agreement or decline to consummate the Acquisition (in each case, in accordance with the terms of the Acquisition Agreement) as a result of a breach of such representations and warranties in the Acquisition Agreement (the “Specified Acquisition Agreement Representations”) and (ii) the Specified Representations (as defined below), and (b) the terms of the Facilities Agreement shall be in a form such that they do not impair availability of the Credit Facilities on the Closing Date if the applicable conditions set forth in the Conditions Annex are satisfied or waived by the Mandated Lead Arrangers (it being understood that to the extent any guarantee or Transaction Security (including the creation or perfection thereof) (other than to the extent that a lien on such Transaction Security may be perfected by (i) the filing of a financing statement under the Uniform Commercial Code or (ii) the delivery of stock or other equity certificates of a material domestic wholly-owned restricted subsidiary of the Borrowers (if any) that is part of the Transaction Security to be provided on the Closing Date under the Term Sheet to the extent such stock or other equity certificates of such subsidiary of the Borrowers (if any) have been received from the Acquired Business after your use of commercially reasonable efforts) is not or cannot be provided or perfected on the Closing Date after your use of commercially reasonable efforts to do so, or without undue burden or expense, the delivery of such guarantee and/or Transaction Security (and creation or perfection thereof), as applicable, shall not constitute a condition precedent to the availability of the Credit Facilities on the Closing Date but shall instead be required to be delivered or provided within 60 days after the Closing Date (or such later date as may be reasonably agreed by the Borrower and the Facility Agent) pursuant to arrangements to be mutually agreed by the Borrower and the Facility Agent). For purposes hereof, “Specified Representations” means the representations and warranties made by the Borrowers and the Guarantors (the “Closing Date Obligors”) set forth in the Facilities Agreement relating to: organizational existence of the Closing Date Obligors; organizational power and authority of the Closing Date Obligors, and due authorization, execution and delivery by the Closing Date Obligors, in each case, as they relate to their entry into and performance of the Facilities Agreement; the choice of governing law of the Facilities Agreement being recognized and enforced in the Closing Date Obligors’ Relevant Jurisdiction; enforceability of the Facilities Agreement against the Closing Date Obligors; no conflicts with the organizational documents of the Closing Date Obligors as it relates to their entry into and performance of the Facilities Agreement; solvency of the Company and its subsidiaries on a consolidated basis on the Closing Date after giving effect to the Transactions (with

 

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solvency being determined in a manner consistent with Annex I to the Conditions Annex); subject to the immediately preceding sentence and the limitations set forth in the Term Sheet, creation and perfection of security interests in the Transaction Security; Federal Reserve margin regulations; the use of proceeds of borrowings under the Credit Facilities on the Closing Date not violating Sanctions (as defined in the Existing Agreement), OFAC sanctions, FCPA and any other similar sanctions or money laundering and anti-bribery legislation in any applicable jurisdiction; and the Investment Company Act. Notwithstanding anything to the contrary contained herein, to the extent any of the Specified Acquisition Agreement Representations or the Specified Representations are qualified or subject to “material adverse effect,” the definition thereof shall be “Material Adverse Effect” as defined in the Acquisition Agreement for purposes of any representations and warranties made or to be made on, or as of, the Closing Date. The provisions of this paragraph are referred to as the “Certain Funds Provisions”.

 

6.

Indemnity.

To induce the Commitment Parties to enter into this Commitment Letter and the Fee Letters and to proceed with the documentation of the Credit Facilities, you agree (a) to indemnify and hold harmless each Commitment Party, their respective affiliates and their respective officers, directors, employees, members, agents, advisors, representatives and controlling persons (each, a “Related Parties”), it being understood that in no event will this indemnity apply to any Commitment Party or its affiliates in their capacity as (x) financial advisors to you or the Acquired Business in connection with the Acquisition or any other potential acquisition of the Acquired Business or (y) as a co-investor in the Transactions or any potential acquisition of the Acquired Business (collectively, the “Indemnified Persons” and each individually, an “Indemnified Person”) from and against any losses, claims, damages and liabilities and expenses, joint or several, actually incurred or suffered by such Indemnified Person may become subject to the extent arising out of, resulting from or in connection with any claim, litigation, investigation or proceeding resulting from this Commitment Letter (including the Term Sheet), the Fee Letters, the Acquisition Agreement, the Transactions, the Credit Facilities or any use of the proceeds thereof (any of the foregoing, a “Proceeding”), regardless of whether any such Indemnified Person is a party thereto, whether or not such Proceedings are brought by you, your equity holders, affiliates, creditors, the Acquired Business or any other third person, and to reimburse each such Indemnified Person within 30 days after receipt of a written request (together with reasonably detailed backup documentation supporting such reimbursement request) for the reasonable and documented out-of-pocket fees and for any reasonable and documented out-of-pocket expenses of one primary counsel for all Indemnified Persons taken as a whole (and, solely in the case of an actual or perceived conflict of interest, one additional counsel as necessary to the Indemnified Persons actually affected by such conflict taken as a whole) and to the extent reasonably necessary, one local counsel for all Indemnified Persons (taken as a whole) in each relevant material jurisdiction, but no other third-party advisors without your prior consent, and other reasonable and documented out-of-pocket fees and expenses incurred in connection with investigating or defending any of the foregoing (in each case, excluding costs of in-house counsel); provided that the foregoing indemnity will not, as to any Indemnified Person, apply to losses, claims, damages, liabilities or related expenses to the extent that they have resulted from (i) the willful misconduct, bad faith or gross negligence of such Indemnified Person or any of its controlled or controlling affiliates or their respective Related Parties (as determined by a court of competent jurisdiction in a final and non-appealable decision), (ii) any material breach of the obligations of such Indemnified Person or any of its controlled or controlling affiliates or their respective Related Parties under this Commitment Letter or the Fee Letters (as determined by a court of competent jurisdiction in a final and non-appealable decision) or (iii) any Proceeding that does not involve an act or omission by you or any of your affiliates and that is brought by an Indemnified Person against any other Indemnified Person (other than any claims against any Commitment Party in its capacity or in fulfilling its role as Facility Agent, Security Agent, Coordinator or Mandated Lead Arranger or any similar role under the Credit Facilities), and (b) to reimburse each Commitment Party, whether or not the Closing Date occurs,

 

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upon presentation of a summary statement, for all reasonable and documented or invoiced out-of-pocket expenses, travel expenses and reasonable fees, disbursements and other charges of counsel to the Commitment Parties, the Coordinator, the Facility Agent and the Security Agent identified in the Term Sheet and of a single local counsel to the Commitment Parties in each appropriate material jurisdiction (which may include a single special counsel acting in multiple jurisdictions) including, without limitation, Belgium, New York, Germany, The Netherlands and Romania and of such other counsel retained with your prior written consent (such consent not to be unreasonably withheld or delayed), in each case incurred in connection with the Credit Facilities and the preparation, negotiation and enforcement of this Commitment Letter, the Fee Letters, the Facilities Agreement and any security arrangements in connection therewith (collectively, the “Expenses”). If any amount previously paid to or on behalf of an Indemnified Person pursuant to this paragraph is subsequently determined to be ineligible for indemnification as a result of a final, non-appealable judgment of a court of competent jurisdiction, such Indemnified Person shall promptly reimburse such amount to you. The foregoing provisions in this paragraph shall be superseded in each case, to the extent covered thereby, by the applicable provisions contained in the Facilities Agreement upon execution thereof and thereafter shall have no further force and effect.

You shall not, without the prior written consent of any Indemnified Person (which consent shall not be unreasonably withheld, delayed or conditioned), effect any settlement of any pending or threatened Proceedings in respect of which indemnity could have been sought hereunder by such Indemnified Person unless such settlement (i) includes an unconditional release of such Indemnified Person in form and substance reasonably satisfactory to such Indemnified Person from all liability or claims that are the subject matter of such Proceedings and (ii) does not include any statement as to or any admission of fault, culpability, wrongdoing or a failure to act by or on behalf of any Indemnified Person.

You shall not be liable for any settlement of any Proceedings (or any expenses related thereto) effected without your prior written consent (which consent shall not be unreasonably withheld or delayed), but if settled with your prior written consent or if there is a final non-appealable judgment in any such Proceedings, you agree to indemnify and hold harmless each Indemnified Person from and against any and all losses, claims, damages, liabilities and expenses by reason of such settlement or judgment in accordance with the other provisions of this Section 6.

Notwithstanding any other provision of this Commitment Letter, no party hereto shall be liable for (i) any damages arising from the use by others of information or other materials obtained through internet, electronic, telecommunications or other information transmission systems, except to the extent that such damages have resulted from the willful misconduct, bad faith, gross negligence or material breach of such party or any of its affiliates or Related Parties of this Commitment Letter, Fee Letters or the Facilities Agreement (as determined by a court of competent jurisdiction in a final and non-appealable decision) or (ii) any special, indirect, consequential or punitive damages arising out of or in connection with this Commitment Letter or the Fee Letters (provided that this clause (ii) shall not limit your indemnity or reimbursement obligations to the extent set forth above in the second preceding paragraph in respect of any actual losses, claims, damages, liabilities and expenses incurred or paid by an Indemnified Person to a third party unaffiliated with the Commitment Parties that are otherwise required to be indemnified in accordance with this Section 6); provided that none of the foregoing shall be construed to limit any of the Borrowers’ or the Guarantors’ representations and warranties or any of the conditions, in any such case, set forth in this Commitment Letter or the Facilities Agreement.

You acknowledge that certain of the Commitment Parties may receive a benefit, including without limitation, a discount, credit or other accommodation, from any of such counsel based on the fees such counsel may receive on account of their relationship with us including, without limitation, fees paid pursuant hereto.

 

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7.

Sharing of Information, Absence of Fiduciary Relationships, Affiliate Activities.

You acknowledge that the Coordinator, the Mandated Lead Arrangers, the Lenders and their respective affiliates may be providing debt financing, equity capital or other services (including, without limitation, financial advisory services) to other companies in respect of which you or the Acquired Business may have conflicting interests. None of the Commitment Parties or their respective affiliates will use information obtained from you, the Acquired Business or any of your or their respective affiliates by virtue of the transactions contemplated by this Commitment Letter or any of their other respective relationships with you, the Acquired Business or any of your or their respective affiliates in connection with the performance by them and their respective affiliates of services for other persons or entities, and none of the Commitment Parties or their respective affiliates will furnish any such information to such other persons or entities. You also acknowledge that none of the Commitment Parties or their respective affiliates has any obligation to use in connection with the transactions contemplated by this Commitment Letter, or to furnish to you, the Acquired Business or your or their respective subsidiaries, confidential information obtained by the Commitment Parties and their respective affiliates from other persons or entities.

As you know, certain of the Commitment Parties (or any affiliate thereof) may be full service securities firms engaged, either directly or through their affiliates, in various activities, including securities trading, commodities trading, investment management, financing and brokerage activities and financial planning and benefits counseling for both companies and individuals. In the ordinary course of these activities, certain of the Commitment Parties and their respective affiliates may actively engage in commodities trading or trade the debt and equity securities (or related derivative securities) and financial instruments (including bank loans and other obligations) of you and other companies with which you may have commercial or other relationships with and which may be the subject of the arrangements contemplated by this Commitment Letter for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities. Certain of the Commitment Parties or their affiliates may also co-invest with, make direct investments in, and invest or co-invest client monies in or with funds or other investment vehicles managed by other parties, and such funds or other investment vehicles may trade or make investments in securities of you, the Acquired Business or other companies which may be the subject of the arrangements contemplated by this Commitment Letter or engage in commodities trading with any thereof.

You agree that the Commitment Parties will act under this letter as independent contractors and that nothing in this Commitment Letter or the Fee Letters will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between the Commitment Parties (in any of their respective capacities in connection herewith) and you or any of your subsidiaries or equity holders or any of your and their respective affiliates. You acknowledge and agree that (i) the transactions contemplated by this Commitment Letter and the Fee Letters are arm’s-length commercial transactions between the Commitment Parties and their affiliates, on the one hand, and you, on the other, (ii) in connection therewith and with the process leading to such transaction each Commitment Party and its applicable affiliates (as the case may be) is acting solely as a principal and not as agents or fiduciaries of you or any of your subsidiaries or your and their respective management, stockholders, creditors or affiliates, (iii) by entering into this Commitment Letter and the Fee Letters, the Commitment Parties and their applicable affiliates (as the case may be) have not assumed an advisory or fiduciary responsibility or any other obligation in favor of you or your affiliates with respect to the transactions contemplated hereby or the process leading thereto except the obligations expressly set forth in this Commitment Letter and the Fee Letters and (iv) you have consulted your own legal and financial advisors to the extent you deemed appropriate. You further acknowledge and agree that neither we nor any of our affiliates are advising you as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction and you are responsible for making your own independent judgment with respect to the transactions contemplated

 

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hereby and the process leading thereto. You agree that you will not claim that the Commitment Parties or their applicable affiliates, as the case may be, have rendered advisory services in connection with the services provided pursuant to this Commitment Letter, or owe a fiduciary or similar duty to you or your affiliates, in connection with this Commitment Letter. You agree that you will not assert any claims against us or our affiliates (in our respective capacities hereunder) for breach of fiduciary duty or alleged breach of fiduciary duty arising out of this Commitment Letter and agree that we and our affiliates shall have no liability (whether direct or indirect) to you in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of you, including your stockholders, employees or creditors.

 

8.

Confidentiality.

You agree that you will not disclose the Fee Letters and the contents thereof or this Commitment Letter (including the Term Sheet, the other exhibits and attachments) hereto and the contents of each thereof to any person or entity without prior written approval of the Mandated Lead Arrangers (such approval not to be unreasonably withheld, conditioned or delayed), except (a) to MergerSub, and to your and any of MergerSub’s officers, directors, agents, employees, attorneys, accountants, advisors, controlling persons or (other than in the case of MergerSub) equity holders and to actual and potential co-investors who are informed of the confidential nature hereof (and, in each case, each of their attorneys) on a confidential and need-to-know basis, (b) if the Commitment Parties consent in writing to such proposed disclosure or (c) pursuant to the order of any court or administrative agency in any pending legal, judicial or administrative proceeding, or otherwise as required by applicable law or legal process or to the extent requested or required by governmental and/or regulatory authorities, in each case based on the reasonable advice of your legal counsel (in which case you agree, to the extent practicable and not prohibited by applicable law, to inform us promptly thereof prior to disclosure); provided that (i) you may disclose this Commitment Letter (but not the Fee Letters, the disclosure of which is governed by clause (v) below) and the contents hereof to the Acquired Business and its subsidiaries and their respective officers, directors, agents, employees, attorneys, accountants, advisors, controlling persons or equity holders (and each of their attorneys), on a confidential and need to know basis, (ii) you may disclose the Commitment Letter and its contents (but not the Fee Letters) in connection with any public release or filing relating to the Transactions, (iii) you may disclose the aggregate fee amounts contained in the Fee Letters as part of the Projections, pro forma information or a generic disclosure of aggregate sources and uses related to fee amounts related to the Transactions to the extent customary or required in offering and marketing materials for the Credit Facilities, (iv) you may disclose this Commitment Letter, the Fee Letters and the contents hereof and thereof to the extent they become publicly available other than by result of a breach of this Commitment Letter or the Fee Letters by you, the Acquired Business or your or their respective affiliates, and (v) to the extent portions thereof have been redacted in a manner to be reasonably agreed by us (including the portions thereof addressing fees payable to the Commitment Parties and/or the Lenders and economic terms), you may disclose the Fee Letters and the contents thereof to the Acquired Business and their subsidiaries and any of their respective officers, directors, agents, employees, attorneys, accountants, advisors, controlling persons or equity holders (and each of their attorneys), on a confidential and need-to-know basis.

The Commitment Parties and their affiliates will use all information provided to them or such affiliates by or on behalf of you hereunder or in connection with the Acquisition and the related Transactions solely for the purpose of providing the services which are the subject of this Commitment Letter and shall treat confidentially all such information and shall not publish, disclose or otherwise divulge, such information; provided that nothing herein shall prevent the Commitment Parties and their affiliates from disclosing any such information (a) pursuant to the order of any court, arbitration tribunal or administrative agency or in any pending legal, judicial or administrative proceeding, or otherwise as required by applicable law or compulsory legal process based on the advice of counsel (in which case the

 

-7-


Commitment Parties agree (except with respect to any audit or examination conducted by bank accountants or any governmental bank regulatory authority exercising examination or regulatory authority), to the extent practicable and not prohibited by applicable law, to inform you promptly thereof prior to disclosure), (b) upon the request or demand of any regulatory authority having jurisdiction over the Commitment Parties or any of their respective affiliates (in which case the Commitment Parties agree, to the extent practicable and not prohibited by applicable law, to inform you promptly thereof prior to disclosure (except with respect to any audit or examination conducted by bank accountants or any governmental bank regulatory authority exercising examination or regulatory authority)), (c) to the extent that such information becomes publicly available other than by reason of improper disclosure by the Commitment Parties or any of their affiliates or any of their respective members, partners, officers, directors, employees, legal counsel, independent auditors, professionals and other experts or agents, advisors, controlling persons and other representatives (the “related parties”) thereto in violation of any confidentiality obligations owing to you, MergerSub or any of your or their respective affiliates (including those set forth in this paragraph), (d) to the extent that such information is received by the Commitment Parties from a third party that is not, to the Commitment Parties’ knowledge, subject to contractual or fiduciary confidentiality obligations owing to you, MergerSub or any of your or their respective affiliates or related parties, (e) to the extent that such information is independently developed by the Commitment Parties, (f) to the Commitment Parties’ affiliates and to its and their respective officers, directors, employees, legal counsel, independent auditors, professionals and other experts or agents (collectively, the “Representatives”) who need to know such information in connection with the Transactions and who are informed of the confidential nature of such information and are or have been advised of their obligation to keep information of this type confidential (provided that such Commitment Party shall be responsible for the compliance of its controlled affiliates and Representatives with the provisions of this paragraph), (g) for purposes of enforcing their rights under this Commitment Letter and/or the Fee Letters or (h) to the extent you shall have consented to such disclosure in writing. The Commitment Parties’ and their affiliates’, if any, obligations under this paragraph shall terminate automatically and be superseded by any equivalent confidentiality provisions in the Facilities Agreement upon the initial funding thereunder. Notwithstanding anything to the contrary in this paragraph 8, (a) such paragraph shall automatically terminate on the third anniversary hereof and (b) the Commitment Parties may, with your prior written consent, place customary advertisements in financial and other newspapers and periodicals or on a home page or similar place for dissemination of customary information on the Internet or worldwide web as they may choose, and circulate case studies or similar promotional materials, in each case, only after the closing of the Transactions and the public disclosure thereof, in the form of a “tombstone” or otherwise describing the names of you and your subsidiaries (or any of them), and the amount, type and closing date of the transactions contemplated hereby.

 

9.

Additional Covenants.

Immediately prior to the initial borrowings under the Credit Facilities, the Company shall deliver to the Mandated Lead Arrangers a certificate signed by two (2) directors of the Company, that shall include calculations showing on the Closing Date the Leverage of the Company (as calculated pursuant to the Existing Agreement) after giving pro-forma effect to the Acquisition. For the avoidance of doubt, compliance by the Company with this Section 9 shall not be a condition to the availability of the Credit Facilities on the Closing Date.

The Company shall (a) from time to time and subject to confidentiality provisions and regulations, keep the Mandated Lead Arrangers informed about any material changes in the status and progress of the Acquisition and the CFIUS approval process, and (b) except with the prior written consent of the Mandated Lead Arrangers (not to be unreasonably withheld, delayed or conditioned, and which consent shall be deemed to have been given if no reply to the contrary is received by the Company within five business days of such request for consent), not issue any press release or make any statement or announcement which makes reference to any Credit Facility.

 

-8-


10.

Patriot Act.

We hereby notify you that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “Patriot Act”)) and the requirements of 31 C.F.R. §1010.230 (the “Beneficial Ownership Regulation”) , each of us and each of the Lenders may be required to obtain, verify and record information that identifies the Borrower and each other Obligor, which information may include its name and address and other information that will allow each of us and the Lenders to identify the Borrower and each other Obligor in accordance with the Patriot Act and the Beneficial Ownership Regulation. This notice is given in accordance with the requirements of the Patriot Act and the Beneficial Ownership Regulation and is effective for each of us and the Lenders.

 

11.

Miscellaneous.

This Commitment Letter and the commitments hereunder shall not be assignable by any party hereto, other than (i) any assignment occurring as a matter of law pursuant to, or otherwise substantially simultaneously with, the Acquisition on the Closing Date, in each case to the Acquired Business, or (ii) by you to a newly formed shell entity (which may be MergerSub) organized and existing under the laws of a state of the United States or another jurisdiction to be agreed between you and us, which is and will be wholly owned and controlled, directly or indirectly, by you and after giving effect to the Transactions shall directly, or through a wholly owned subsidiary, wholly own the Acquired Business or be the successor to the Acquired Business; provided that at the time of such assignment each requesting Commitment Party has completed, and is satisfied (acting reasonably) with the results of, its applicable required “know your customer” or similar identification procedures in respect of such entity, in each case, without the prior written consent of (but with prompt written notice to) each other party hereto. This Commitment Letter and the commitments hereunder are, and are intended to be, solely for the benefit of the parties hereto (and Indemnified Persons) and do not, and are not intended to, confer any benefits upon, or create any rights in favor of, any person other than the parties hereto (and Indemnified Persons to the extent expressly set forth herein). The Commitment Parties reserve the right to employ the services of their affiliates or branches in providing services contemplated hereby and to allocate, in whole or in part, to their affiliates or branches certain fees payable to the Commitment Parties in such manner as the Commitment Parties and their affiliates or branches may agree in their sole discretion and, to the extent so employed, such affiliates and branches shall be entitled to the benefits and protections afforded to, and subject to the provisions governing the conduct of the Commitment Parties hereunder; provided that no Commitment Party shall be relieved, released or novated from its obligations hereunder (including its obligation to fund the Credit Facilities on the Closing Date). This Commitment Letter may not be amended or any provision hereof waived or modified except by an instrument in writing signed by each of the Commitment Parties and you. This Commitment Letter may be executed in any number of counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one agreement. Delivery of an executed counterpart of a signature page of this Commitment Letter by facsimile transmission or other electronic transmission (e.g., a “pdf” or “tiff”) shall be effective as delivery of a manually executed counterpart hereof. This Commitment Letter (including the exhibits hereto), together with the Fee Letters and any other letter agreements relating to the transactions contemplated hereby, (i) are the only agreements that have been entered into among the parties hereto with respect to the Credit Facilities and (ii) supersede all prior understandings, whether written or oral, among us with respect to the Credit Facilities and set forth the entire understanding of the parties hereto with respect thereto. THIS COMMITMENT LETTER AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS COMMITMENT LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

-9-


Each of the parties hereto agrees that this Commitment Letter is a binding and enforceable agreement with respect to the subject matter contained herein, including an agreement to negotiate in good faith the Facilities Agreement by the parties hereto promptly after the date of your acceptance of this Commitment Letter and in a manner consistent with this Commitment Letter and the Fee Letters, it being acknowledged and agreed that the funding of the Credit Facilities and the commitment provided hereunder is subject only to the satisfaction (or waiver by the Mandated Lead Arrangers) of the conditions set forth on the Conditions Annex, subject to the Certain Funds Provisions.

EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS COMMITMENT LETTER OR THE FEE LETTERS OR THE PERFORMANCE OF SERVICES HEREUNDER OR THEREUNDER.

Each of the parties hereto hereby irrevocably and unconditionally (a) submits, for itself and its property, to the exclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in New York County, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Commitment Letter, the Fee Letters or the transactions contemplated hereby or thereby, or for recognition or enforcement of any judgment, and agrees that all claims in respect of any such action or proceeding shall be heard and determined only in such New York State court or, to the extent permitted by law, in such Federal court, (b) waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Commitment Letter, the Fee Letters or the transactions contemplated hereby or thereby in any New York State court or in any such Federal court, (c) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court and (d) agrees that a final judgment in any such suit, action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Each of the parties hereto agrees that service of process, summons, notice or document by registered mail addressed to you or us at the addresses set forth above shall be effective service of process for any suit, action or proceeding brought in any such court. In addition, you agree (x) to appoint, on or promptly following the date hereof, an agent for service of process in the U.S., and (y) to notify, on or promptly following the appointment of such agent, the Commitment Parties of the identity of such agent, and (z) that service of any process, summons, notice or document by hand delivery or registered mail upon such agent shall be effective service of process against you for any suit, action or proceeding brought in any such court.

Notwithstanding any other term of this Commitment Letter, the Fee Letters or any other agreements, arrangements, or understanding between us and you, you acknowledge, accept and agree to be bound by:

 

  (a)

the effect of the exercise of Bail-in Powers by the Relevant Resolution Authority in relation to any BRRD Liability of us to you under this Commitment Letter, that (without limitation) may include and result in any of the following, or some combination thereof:

 

  (i)

the reduction of all, or a portion, of the BRRD Liability or outstanding amounts due thereon;

 

-10-


  (ii)

the conversion of all, or a portion, of the BRRD Liability into shares, other securities or other obligations of us or another person (and the issue to or conferral on you of such shares, securities or obligations);

 

  (iii)

the cancellation of the BRRD Liability; or

 

  (iv)

the amendment or alteration of any interest, if applicable, thereon, the maturity or dates on which any payments are due, including by suspending payment for a temporary period; or

 

  (b)

the variation of the terms of this Commitment Letter or the Fee Letters, as deemed necessary by the Relevant Resolution Authority, to give effect to the exercise of Bail-in Powers by the Relevant Resolution Authority.

For purposes of this Commitment Letter, the following terms shall be defined as follows:

Bail-in Legislation” means in relation to a member state of the European Economic Area which has implemented, or which at any time implements, the BRRD, the relevant implementing law, regulation, rule or requirement as described in the EU Bail-in Legislation Schedule from time to time.

Bail-in Powers” means any Write-down and Conversion Powers as defined in relation to the relevant Bail-in Legislation.

BRRD” means Directive 2014/59/EU establishing a framework for the recovery and resolution of credit institutions and investment firms.

EU Bail-in Legislation Schedule” means the document described as such, then in effect, and published by the Loan Market Association (or any successor person) from time to time at http://www.lma.eu.com.

Relevant Resolution Authority” means the resolution authority with the ability to exercise any Bail-in Powers in relation to us.

The indemnification, compensation (if applicable), reimbursement (if applicable), jurisdiction, governing law, venue, waiver of jury trial, absence of fiduciary relationships and confidentiality provisions contained herein and in the Fee Letters shall remain in full force and effect regardless of whether the Facilities Agreement shall be executed and delivered and notwithstanding the termination or expiration of this Commitment Letter or the Lenders’ commitments hereunder; provided that your obligations under this Commitment Letter (other than your obligations with respect to confidentiality of the Fee Letters and the contents thereof) shall automatically terminate and be superseded by the provisions of the Facilities Agreement upon the initial funding thereunder, and you shall automatically be released from all liability in connection therewith at such time. You may terminate this Commitment Letter and/or, the applicable Lenders’ commitments with respect to any of the Credit Facilities (or any portion, tranche or component thereof) hereunder on a pro rata basis (as to such respective commitments of such applicable Lenders) at any time subject to the provisions of the preceding sentence.

Section headings used herein are for convenience of reference only and are not to affect the construction of, or to be taken into consideration in interpreting, this Commitment Letter.

 

-11-


Please indicate your acceptance of the terms hereof and of the Fee Letters by signing in the appropriate space below and in the Fee Letters and returning to the Commitment Parties the enclosed duplicate originals (or facsimiles or electronic copies) of this Commitment Letter and the Fee Letters, in each case not later than 11:59 p.m., New York City time, on August 17, 2023, failing which the Lenders’ commitments hereunder will expire at such time. In the event that (a) the initial borrowing under the Credit Facilities does not occur on or before 11:59 p.m., New York City time, on the date falling on the earlier of (i) the last settlement date provided in the Acquisition Agreement for completion of the Acquisition, or (ii) the End Date (as defined in the Acquisition Agreement), (b) the Acquisition closes with or without the use of any of the Credit Facilities (in each case, solely as to such Credit Facility), (c) the Acquisition Agreement is not executed by the parties thereto on or prior to the 20th day after the date on which this Commitment Letter has been signed by the Mandated Lead Arrangers, (d) the Acquisition Agreement is validly terminated by you or with your written consent or (e) in case of a two-step merger, the Tender Offer is withdrawn, terminated or lapsed prior to the closing of the Acquisition, in each case of this clause (e), in accordance with the terms of the Merger Agreement and subject to any extensions of the Expiration Date (as defined in the Merger Agreement) in accordance with the terms of the Merger Agreement, then this Commitment Letter and the commitments hereunder shall automatically terminate unless we shall, in our sole discretion, agree to an extension. The termination of any commitment shall not prejudice your rights and remedies in respect of any breach of this Commitment Letter or the Fee Letters.

[Signature pages follow.]

 

-12-


We are pleased to have been given the opportunity to assist you in connection with the financing for the Transactions.

 

Very truly yours,
THE MANDATED LEAD ARRANGERS
KBC BANK NV
By:   /s/ Anja Goris
  Name: Anja Goris
  Title: Senior Banker
By:   /s/ Koen Collier
  Name: Koen Collier
  Title: Origination Manager

 

-1-


BELFIUS BANK SA/NV
By:   /s/ Piet Cordonnier
  Name:   Piet Cordonnier
  Title:   Company lawyer
By:  

/s/ Erik De Witte

  Name:  

Erik De Witte

  Title:  

Manager specialized corporate lending

 

-1-


ING BELGIUM SA/NV

By:  

/s/ Stephanie Sluyts

  Name:  

Stephanie Sluyts

  Title:  

Head of Business Banking Sales East

By:  

/s/ Steven Notaert

  Name:  

Steven Notaert

  Title:  

Head of Capital Structuring & Advisory Belux

 

-1-


Accepted and Agreed,

as of the date first above written:

THE COMPANY

CEGEKA GROEP NV

 

By:   /s/ Stijn Bijnens
  Name:   ID&D NV, permanently represented by Stijn Bijnens
  Title:   Managing Director

 

By:   /s/ Stephan Daems
  Name:   Esdacon BV, permanently represented by Stephan Daems
  Title:   Director

[Project Chicago - Commitment Letter]


Schedule I

 

Lender

   Credit Facilities  
   Acquisition Bridge
Facility
     EUR Acquisition Term Loan
Facility
     USD Acquisition Term Loan
Facility
 

KBC

   33,333,334      11,666,668      $ 11,666,668  

Belfius

   33,333,333      11,666,666      $ 11,666,666  

ING

   33,333,333      11,666,666      $ 11,666,666  

Total

   100,000,000      35,000,000      $ 35,000,000  


EXHIBIT A

Project Chicago

Transaction Description1

It is intended that:

(a) One or more Borrowers will obtain senior secured credit facilities (the “Credit Facilities”) from the Lenders consisting of (i) a €100,000,000 bridge facility (the “Acquisition Bridge Facility”), (ii) a €35,000,000 acquisition facility (the “EUR Acquisition Term Loan Facility”), and (iii) a $35,000,000 acquisition facility (the “USD Acquisition Term Loan Facility”) , in each case as described on the Term Sheet.

(b) You will, directly or indirectly through one or more wholly-owned subsidiaries, consummate the Acquisition pursuant to the Acquisition Agreement (together with all exhibits and schedules thereto, collectively, the “Acquisition Agreement”), dated as of the date hereof, by and among you, MergerSub and the other parties thereto.

(c) All outstanding indebtedness for borrowed money of the Acquired Business under that certain Credit Agreement, dated as of May 19, 2021 (as amended), among the Target, as borrower and certain other related entities as borrowers and guarantors, the lenders party thereto and Bank of America N.A., as collateral agent and administrative agent, will be refinanced, repaid, redeemed, cancelled, discharged or defeased and any security in relation thereto will be released simultaneously with or immediately after the occurrence of the Closing Date (the “Refinancing”).

(d) The proceeds of the Credit Facilities (to the extent borrowed on the Closing Date) will be applied (together with any balance sheet cash or equity proceeds of the Company or its subsidiaries that the Company elects, in its sole discretion, to apply) (i) for the financing of the Acquisition, (ii) for the Refinancing, and (iii) to pay the fees and costs related to the Tender Offer, the Acquisition or the Finance Documents.

The transactions described above are collectively referred to herein as the “Transactions.”

 

1 

Capitalized terms used in this Exhibit A shall have the meanings set forth in the Commitment Letter to which this Exhibit A is attached and the other Exhibits attached to the Commitment Letter. In the case of any such capitalized term that is subject to multiple and differing definitions, the appropriate meaning thereof in this Exhibit A shall be determined by reference to the context in which it is used.

 

A-1


EXHIBIT B

Project Chicago

Term Sheet

Execution version

TERM SHEET

UP TO EUR 135,000,000 and USD 35,000,000 INCREASED SYNDICATED FACILITIES

 

CEGEKA GROEP NV

 

Project Chicago

August 8, 2023

PARTIES

 

Company:    Cegeka Groep NV.
Borrowers:    As per the Existing Agreement, subject to the Credit Facilities being only available to the Company.
Guarantors:    MergerSub (as defined below), any holding company wholly-owned by the Company which may own all of the equity in MergerSub (any such company, a “Holdco”). Other Guarantors as per the Existing Agreement.
Lenders:    KBC Bank NV, ING Belgium NV/SA and Belfius Bank NV/SA.
Coordinator:    KBC Bank NV.
Facility Agent:    KBC Bank NV.
Security Agent:    KBC Bank NV.
Subsidiary:    As per the Existing Agreement.
Group:    As per the Existing Agreement.
Relevant Group:    As per the Existing Agreement.
Material Company:    As per the Existing Agreement.
Small Company:    As per the Existing Agreement.
Parent:    As per the Existing Agreement.

 

B-1


LOGO

 

PROJECT CHICAGO RELATED DEFINITIONS AND TERMS1

 

Target:    Computer Task Group, Incorporated.
Acquisition:    The acquisition by the Company directly or indirectly, itself or through a newly formed wholly owned subsidiary (“Merger Sub”) which shall use the proceeds of the Credit Facilities (as defined below) on-lent to it by the Company, of all of the outstanding shares in the Target (the “Target Outstanding Shares”). The Acquisition may be structured as (i) a single-step statutory merger or (ii) a two-step merger comprising the Tender Offer and the Squeeze Out. The Acquisition Agreement currently contemplates the Acquisition will be structured as a two-step merger comprising the Tender Offer and the Squeeze Out.
Acquisition Agreement:    The definitive written agreement among the Company, Merger Sub, the Target and certain of their affiliates providing for the Acquisition.
Tender Offer:    A voluntary tender offer for the Target Outstanding Shares subject to the Tender Offer Conditions.
Tender Offer Conditions:   

Following conditions to the Tender Offer:

 

(a)   satisfaction of the Minimum Acceptance Level to the extent required by clause (a) of Annex I to the Acquisition Agreement and the Certain Funds Provisions;

 

(b)   competition clearance w.r.t. the Acquisition to the extent required by clause (e) of Annex I to the Acquisition Agreement and the Certain Funds Provisions;

 

(c)   accuracy of the Target’s representations and warranties as of the date of the Acquisition Agreement and as of the closing of the Tender Offer to the extent required by clause (b) of Annex I to the Acquisition Agreement and the Certain Funds Provisions;

 

(d)   the Target has performed or complied with in all material respects its obligations under the Acquisition Agreement to the extent required by clause (c) of Annex I to the Acquisition Agreement and the Certain Funds Provisions;

 

(e)   there has not occurred a Material Adverse Effect (as defined in the Acquisition Agreement) to the extent required by clause (d) of Annex I to the Acquisition Agreement and the Certain Funds Provisions;

 

(f)   delivery of a closing certificate confirming the foregoing conditions in clauses (c), (d) and (e) have been satisfied;

 

1 

To be updated to reflect the final acquisition agreement terms.

 

B-2


LOGO

 

  

(g)   any waiting period (or any extension thereof) applicable to the Tender Offer under the HSR Act has been terminated or expired to the extent required by clause (e) of Annex I to the Acquisition Agreement and the Certain Funds Provisions;

 

(h)   no temporary restraining order, preliminary or permanent injunction or other order, by any governmental body of competent jurisdiction restraining, enjoining or otherwise preventing the Tender Offer or Merger to the extent required by clause (g) of Annex I to the Acquisition Agreement and the Certain Funds Provisions;

 

(i) the Acquisition Agreement has not been terminated; and

 

(j) CFIUS approval has been received or waived by the Company (subject to what is set out below) to the extent required by clause (i) of Annex I to the Acquisition Agreement and the Certain Funds Provisions.

 

Notwithstanding the foregoing, any waiver of or amendment to the Tender Offer Conditions that are material and adverse to the Lenders or the Arrangers will be subject to all Lenders’ consent, provided that (i) any waiver of the CFIUS approval condition by the Company is only made with the prior written consent of the Lenders (not to be unreasonably withheld, delayed or conditioned) and (ii) any changes required by the SEC or in connection with increasing the time the Tender Offer shall remain outstanding will not require Lender consent.

Top-Up Option:   

In the event the Minimum Acceptance Level is satisfied but less than 90% of shares have tendered, Merger Sub will exercise a Top-Up Option, pursuant to which it will purchase at a price per share equal to the Offer Price, the number of shares required to achieve one share more than 90% of the Target’s outstanding shares.

 

To fund the acquisition, the Merger Sub will issue to the Target a promissory note with principal amount equal to the aggregate purchase price pursuant to the Top-Up Option, which will be extinguished upon consummation of the Merger.

 

The parties would use best efforts to cause the closing of the Top-Up Option to occur on the same day that Merger Sub accepts tendered shares for payment and as soon as practicable thereafter, consummate the Squeeze Out Merger.

Squeeze Out Merger:    A short-form statutory merger pursuant to the New York Business Corporation Law whereby Merger Sub will merge with and into the Target and any Target shareholders who did not tender their shares in the Tender Offer receive cash in consideration for their shares.

 

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LOGO

 

Minimum Acceptance Level:   

The aggregate number of shares in the Target:

 

(a)   tendered under the Tender Offer;

 

(b)   held by the Company, Merger Sub or their respective affiliates

 

representing not less than 66.2/3rd% of the outstanding Target shares.

Commitment Letter:    Commitment Letter between the Lenders and the Company dated on or about the date of this Term Sheet.
Commitment Date:    The date of signing of the Commitment Letter by all parties thereto.
Signing Date:    The date of signing of the Facilities Agreement (which shall be after the signing date of the Acquisition Agreement and Commitment Letter).
Closing Date:    The date of first utilisation of the Credit Facilities.
Credit Facilities:    The Acquisition Bridge Facility, the EUR Acquisition Term Loan Facility and the USD Acquisition Term Loan Facility.

EUR 100,000,000 BRIDGE FACILITY (the “Acquisition Bridge Facility”)

 

Facility:    Term loan facility to be utilised by way of loans.
Amount:    EUR 100,000,000.
Currency:    EUR2
Termination Date:    Subject to the Extension Option, the date falling three months after the Signing Date.
Purpose:   

To finance or refinance directly or to on-lend to Merger Sub in order to finance or to refinance:

 

(a)   the Acquisition;

 

(b)   the transaction fees and costs related to the Tender Offer, the Acquisition or the Finance Documents; and

 

(c)   certain existing indebtedness of the Target.

Availability Period:    From the Signing Date until the end of the Certain Funds Period. The undrawn portion of the Acquisition Bridge Facility will be cancelled at the end of the Availability Period.
Limitation on Utilisation:    A Loan may only be made on or following the first payment date in respect of the shares tendered under Tender Offer (“First Payment Date”).

 

 

2 

Currency hedging requirement to be determined.

 

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Certain Funds Period:   

The period commencing on the Commitment Date until the earliest to occur of:

 

(a)   11.59 p.m. (in NY time) on the date falling 20 Business Days after the Commitment Date, if the Company and Merger Sub have not entered into the Acquisition Agreement

 

(b)   11.59 p.m. (NY time) on the last settlement date provided in the Acquisition Agreement for completion of the Acquisition;

 

(c)   the date on which the Acquisition Agreement is terminated;

 

(d)   in the case of a two-step merger, the date on which the Tender Offer has been withdrawn, terminated or lapsed; or

 

(e)   the End Date (as defined in the Acquisition Agreement).

 

or,   in each case, such later date as agreed by all the Lenders.

Conditions to Availability:    The only conditions to funding in relation to any and all of the Credit Facilities will be those set forth in Section 5 of and Exhibit C to the Commitment Letter.
Minimum Amount of each Loan:    EUR 10,000,000.
Maximum Number of Loans:    No more than 2 Loans may be outstanding.
Repayment:    Bullet repayment on the Termination Date.
Voluntary Prepayment:   

Loans may be prepaid in whole or in part on 5 Business Days’ prior notice (but, if in part, by a minimum of EUR 5,000,000. Any prepayment shall be made with accrued interest on the amount prepaid and, subject to breakage costs (if the prepayment does not occur at the end of an Interest Period), without premium or penalty.

 

Any amount prepaid may not be redrawn.

Extension Option:   

The Company may in its absolute discretion extend the Termination Date for a further period of three months by giving notice to the Facility Agent not less than 15 Business Days prior to the date falling 3 months after the Signing Date (the “Extension”), provided that

 

(a)   no Default has occurred and is then continuing or would occur as a result of such extension;

 

(b)   the Repeating Representations to be made by the Obligors are correct in all material respects on the date of the relevant extension request and the Termination Date without giving effect to the Extension; and

 

(c)   the Extension Fee has been paid on or before the date of the relevant extension request.

 

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EUR 35,000,000 ACQUISITION FACILITY (the “EUR Acquisition Term Loan Facility”)

 

Facility:    Term loan facility to be utilised by way of term loans.
Amount:    EUR 35,000,000.
Currency:    EUR
Termination Date:    The date falling 5 years after the date of the signing of the Existing Agreement.
Purpose:    As per the Acquisition Bridge Facility.
Availability Period:    From the Signing Date until the end of the Certain Funds Period. The undrawn portion of the EUR Acquisition Term Loan Facility will be cancelled at the end of the Availability Period.
Conditions to Availability:    Only those set forth under “Conditions to Availability” in the section “Acquisition Bridge Facility” above.
Limitation on Utilisation:    A Loan may only be made on or following the First Payment Date provided that the Acquisition Bridge Facility has been utilised (or cancelled) in full.
Minimum Amount of each Loan:    EUR 10,000,000.
Maximum Number of Loans:    No more than 2 Loans may be outstanding.
Repayment:    Half-year repayment instalments starting 6 months after the Closing Date in amounts corresponding to 6.8 per cent. of the Amount of the Facility.
Voluntary Prepayment:   

Loans may be prepaid in whole or in part on 5 Business Days’ prior notice (but, if in part, by a minimum of EUR 5,000,000). Any prepayment shall be made with accrued interest on the amount prepaid and, subject to breakage costs (if the prepayment does not occur at the end of an Interest Period), without premium or penalty.

 

Any amount prepaid may not be redrawn.

USD 35,000,000 ACQUISITION FACILITY (the “USD Acquisition Term Loan Facility”)

 

Facility:    Term loan facility to be utilised by way of term loans.
Amount:    USD 35,000,000.
Currency:    USD (the “Optional Currency”).

 

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Termination Date:    The date falling 5 years after the date of the signing of the Existing Agreement.
Purpose:    As per the Acquisition Bridge Facility.
Availability Period:    From the Signing Date until the end of the Certain Funds Period. The undrawn portion of the USD Acquisition Term Loan Facility will be cancelled at the end of the Availability Period.
Conditions to Availability:    Only those set forth under “Conditions to Availability” in the section “Acquisition Bridge Facility” above.
Limitation on Utilisation:    A Loan may only be made on or following the First Payment Date provided that the Acquisition Bridge Facility has been utilised (or cancelled) in full.
Minimum Amount of each Loan:    USD 10,000,000.
Maximum Number of Loans:    No more than 2 Loans may be outstanding.
Repayment:    Half-yearly repayment instalments starting 6 months after the Closing Date in amounts corresponding to 6.8 per cent. of the Amount of the Facility.
Voluntary Prepayment:   

Loans may be prepaid in whole or in part on 5 Business Days’ prior notice (but, if in part, by a minimum of USD 5,000,000). Any prepayment shall be made with accrued interest on the amount prepaid and, subject to breakage costs (if the prepayment does not occur at the end of an Interest Period), without premium or penalty.

 

Any amount prepaid may not be redrawn.

PRICING

 

Upfront Fee:    As set out in a separate fee letter.
Extension Fee:    15 bps on the Acquisition Bridge Commitments being extended.
Coordination Fee:    As set out in a separate fee letter.
Facility & Security Agency Fee:    As set out in a separate fee letter.
Ticking Fee:    As set out in a separate fee letter.
Margin:   

(A)  In respect of the Acquisition Bridge Facility:

 

The rate per annum determined in accordance with the following table:

 

    

Period

  

Margin for Loans in
EUR (% p.a.)

  

From the Signing Date to the date falling 3 months after the Signing Date

   1.55
  

Subject to the Extension Option being exercised, from the date falling 3 months after the Signing Date to (but excluding) the Termination Date

   2.05

 

 

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Whilst an Event of Default is continuing, the Margin for each Loan shall be the highest percentage per annum set out above

 

(B)  In respect of the EUR Acquisition Term Loan Facility and the USD Term Loan Facility: As per Facility A under the Existing Agreement provided that on Closing Date the Margin in respect of all Term Loan Facilities3 shall be determined based on the Leverage for the Relevant Period (each as defined in the Existing Agreement) ending on last day of the Month preceding the Closing Date pro forma adjusted to take into account the Acquisition as set out in a certificate to be signed by two directors of the Company.

 

The Margin applicable to Loans in the Optional Currency shall be increased with 25 bps.

Interest Period:   

(a)   in respect of the Acquisition Bridge Facility: one or three months; and

 

(b)   in respect of the Acquisition Term Loan Facility: three or six months (as per the Existing Agreement).

Interest Rate:   

As per the Existing Agreement

 

For Loans in the Optional Currency: the aggregate of the applicable:

 

(a)   Margin for Loans in USD;

 

(b)   Term SOFR; and

 

(c)   Bloomberg Credit Adjustment Spread, being

 

 

   

Length of Interest Period

  

Credit Adjustment Spread

 

One Month

   0.11448 % p.a.
 

Three Months

   0.26161 % p.a.
 

Six Months

   0.42826 % p.a.

 

   and if the aggregate of (b) and (c) is less than zero, it shall be deemed to be zero.

 

 

3 

For the avoidance of doubt, including Term Loan A1 and Term Loan A2. As per the commercial rationale.

 

B-8


LOGO

 

OTHER TERMS

 

Documentation:

  

The Credit Facilities will be made available under an amended and restated facilities agreement (together with the related amendment and restatement agreement, the “Facilities Agreement”) substantially based on the existing facilities agreement originally dated 19 July 2022 between amongst others Cegeka Groep NV as the Company and KBC Bank NV as the facility & security agent, as amended and restated from time to time (the “Existing Agreement”), updated to reflect (i) the Commitment Letter, this Term Sheet and the inclusion of the Credit Facilities, (ii) the current recommended form of the LMA syndicated facility agreement, (iii) changes in local law (iv) customary provisions to account either for the inclusion of the Target and or customary US provisions for similar transactions of this type and (v) in any event in form and substance satisfactory to the Lenders and the Company.

 

The financing documentation will not contain any conditions to availability of the Credit Facilities other than as expressly set forth in Section 5 of, and Exhibit C to, the Commitment Letter.

 

Other documentation will consist of, subject to the Certain Funds Provisions (as defined in the Commitment Letter): Transaction Security Documents, fee letters and an amended Hedging Letter4.

Transaction Security:

  

(a)   As per the Existing Agreement, subject to security confirmation and / or increase or amendment as required;

 

(b)   On the Closing Date and subject to the Certain Funds Provisions, first ranking security over all shares held by the Company or MergerSub (or to be acquired following the Acquisition) in the Target;

 

(c)   On the Closing Date, first ranking security over all equity interests held by the Company in any Holdco;

 

(d)   On the Closing Date, an unconditional and irrevocable guarantee by the Parent in relation to the Acquisition Bridge Facility;

 

(e)   On or before 60 days following the Closing Date, first ranking security over all shares issued by any Subsidiaries of the Target that are organized in the United States, England, Luxembourg, Belgium and France and first ranking security on substantially all of the assets (business, movable assets, receivables and bank accounts, but excluding real estate property) of the Target and such Subsidiaries of the Target, subject to mutually agreed customary carve-outs and security principles consistent with the Existing Agreement.

 

4 

Any FX-hedging in relation to the Acquisition or the utilisation of the Credit Facilities is to be done with the Lenders.

 

B-9


LOGO

 

Prepayment and Cancellation:    As per the Existing Agreement, subject to any amendments as listed under limbs (a) to (c) below
  

(a)   Mandatory Prepayment – Cegeka Real Estate disposal proceeds

 

The part of the aggregate amount of net cash proceeds of the disposal or series of disposals by Cegeka Business Solutions Holding B.V. (which is a subsidiary of Cegeka Holding NV) of any shares in Cegeka Real Estate Solutions B.V. shall as soon as practical and in each case as soon as possible following the [Closing Date]/[closing of the Acquisition] be applied in repayment of the Parent Group Loans up to at least all amounts then due and outstanding under the Acquisition Bridge Facility (a “Bridge Repayment Proceeds”), until the Acquisition Bridge Facility is repaid and/or cancelled in full. The Company shall immediately upon receipt of any Bridge Repayment Proceeds apply these amounts in prepayment of the Acquisition Bridge Facility.

 

(b)   Mandatory Prepayment – Parent Group Repayment

 

Any repayment of Parent Group Loans, other than in accordance with Cegeka Real Estate disposal proceeds, shall promptly upon receipt be applied by the Company in prepayment and/or cancellation of the Acquisition Bridge Facility.

 

(c)   Application of Prepayment Proceeds

 

Mandatory prepayment and voluntary prepayment proceeds will be applied to first prepay the Acquisition Bridge Facility and only afterwards (i.e. after full prepayment of the Acquisition Bridge Facility) the remaining Facilities as per the Existing Agreement. Amounts prepaid are not available for re-borrowing.

Representations:    Subject to the Certain Funds Provisions (as defined in the Commitment Letter), as per the Existing Agreement, subject to any amendments or additions (applicable to the Company and, where relevant, to each member of the Group, Relevant Group and/or the Target), to the extent necessary or usual for transactions of the nature of the Acquisition and/or customary US provisions for similar transactions of this type. To be defined later on and to be agreed between the Lenders and the Company.

 

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LOGO

 

Information Undertakings5:    As per the Existing Agreement, subject to any amendments or additions (applicable to the Company and, where relevant, to each member of the Group, Relevant Group and/or the Target), to the extent necessary or usual for transactions of the nature of the Acquisition and/or customary US provisions for similar transactions of this type. To be defined later on and to be agreed between the Lenders and the Company.
Financial covenants:    As per the Existing Agreement.
General Undertakings6:    As per the Existing Agreement, subject to any amendments or additions (applicable to the Company and, where relevant, to each member of the Group, Relevant Group and/or the Target), to the extent necessary or usual for transactions of the nature of the Acquisition. To be defined later on and to be agreed between the Lenders and the Company.
Events of Default:   

As per the Existing Agreement, subject to any amendments or additions (applicable to the Company and, where relevant, to each member of the Group and/or the Target), necessary or usual for transactions of the nature of the Acquisition and/or customary US provisions for similar transactions of this type. To be defined later on and to be agreed between the Lenders and the Company.

 

Without limiting the foregoing, the Events of Default will include customary provisions for similar transactions involving US businesses, including an ERISA EOD and automatic acceleration upon bankruptcy under U.S. Bankruptcy Law of a subsidiary that is organized in the United States of America or has a place of business or property in the United States of America.

Initial Conditions Precedent:    The financing documentation will not contain any conditions to availability of the Credit Facilities other than as expressly set forth in Section 5 of, and Exhibit C to, the Commitment Letter.
Material Adverse Effect:    As per the Existing Agreement, except that with respect to any condition to utilisation of the Credit Facilities a Material Adverse Effect will mean a Material Adverse Effect as defined under the Acquisition Agreement.

 

5 

To avoid potential concerns regarding Material Non-Public Information upon enforcement, provisions will be included so that (i) the Company is contractually prohibited from providing to Lenders any non-public information regarding Target, or (ii) any Target information provided by Company to Lenders be available only to designated “private side” representatives of the Lenders.

6 

Permitted Commercial Finance: new limb (e) any commercial finance programme to be entered into by the Target or a Subsidiary of the Target with any Affiliate of a Lender.

 

B-11


LOGO

 

Assignments and Transfers by Lenders:    As per the Existing Agreement
Costs and Expenses:    The Company shall on demand reimburse the Facility Agent and other Finance Parties for all costs and expenses (including legal fees) reasonably incurred in the preparation, negotiation, of the Finance Documents as well as amendment costs (if applicable) whether or not the Acquisition closes.
Governing Law:    As per the Existing Agreement, save for the Transaction Security documents.
Jurisdiction:    As per the Existing Agreement.
Lenders’ Counsel:    Allen & Overy (Belgium) LLP.
Company’s Counsel:    DLA Piper LLP.
Definitions:    Terms defined in the Existing Agreement have the same meaning in this Term Sheet unless given a different meaning in this Term Sheet.

 

B-12


EXHIBIT C

Project Chicago

Conditions Precedent2

The initial borrowings under the Credit Facilities shall be subject solely to the following conditions:

1. The Mandated Lead Arrangers shall have received an executed copy of the Acquisition Agreement which shall not contain any material amendments or modifications adverse to the interests of the Mandated Lead Arrangers from the draft Acquisition Agreement delivered to the Mandated Lead Arrangers via e-mail on August 8, 2023. The Acquisition shall have been consummated, or substantially simultaneously with the initial borrowing under the Credit Facilities, shall be consummated, in all material respects in accordance with the terms of the Acquisition Agreement, without giving effect to any modifications, amendments, consents or waivers thereto that are material and adverse to the Lenders or the Mandated Lead Arrangers without the consent of the Mandated Lead Arrangers (such consent not to be unreasonably withheld, delayed or conditioned), except for any changes required by the SEC or in connection with increasing the time the Tender Offer shall remain outstanding.

2. Since the date of the Acquisition Agreement, there shall not have occurred any change, event, circumstance, development or effect that has had, individually or in the aggregate, a Material Adverse Effect (as defined in the Acquisition Agreement).

3. The Refinancing shall have been, or will be substantially concurrently with the initial funding under the Credit Facilities, consummated in all material respects.

4. The Tender Offer Conditions and any conditions provided for in the Acquisition Agreement having been satisfied or waived.

5. Subject in all respects to the Certain Funds Provisions, (a) the Facilities Agreement (which shall be in accordance with the terms of the Commitment Letter and the Term Sheet) and the Fee Letters shall have been executed and delivered by the Borrowers and the Guarantors, as applicable, (b) all documents and instruments required to create and (if required by the relevant security agreement) perfect the Security Agent’s security interest in the Transaction Security required to be provided on the Closing Date (as described in the Term Sheet) shall have been executed and delivered to the Facility Agent and, if applicable, be in proper form for filing, and (c) customary legal opinions (including, amongst others, a customary enforceability opinion from the Company’s counsel with respect to any New York law governed security and pledge agreements), (d) customary evidence of corporate authorization, (e) customary company’s certificates (including constitutional documents and relevant specimen signatures) and a solvency certificate in substantially the form of Annex I to this Exhibit C, in each case shall have been delivered to the Mandated Lead Arrangers, (f) a borrowing notice; and (g) authorization of the Acquisition by a special general management meeting of the Company.

 

2 

Capitalized terms used in this Exhibit C shall have the meanings set forth in the Commitment Letter to which this Exhibit C is attached and the other Exhibits attached to the Commitment Letter. In the case of any such capitalized term that is subject to multiple and differing definitions, the appropriate meaning thereof in this Exhibit C shall be determined by reference to the context in which it is used.

 

C-1


6. The Lenders shall have (x) received, at least three business days prior to the Closing Date, all documentation and other information about the Obligors as has been reasonably requested in writing at least ten business days prior to the Closing Date by such Lenders that they reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act and the Beneficial Ownership Regulation and (y) solely with respect to the Borrowers, completed all required “know your customer” or similar identification procedures (it being agreed that the Lenders will use their commercially reasonable efforts to complete such procedures at least three business days prior to the Closing Date).

7. All fees required to be paid on the Closing Date pursuant to the Term Sheet and Fee Letters and all out-of-pocket Expenses reimbursable under the Commitment Letter, to the extent invoiced (in reasonable detail) at least three business days prior to the Closing Date shall, upon the initial borrowing under the Credit Facilities, have been paid (which amounts may be offset against the proceeds of the Credit Facilities).

8. Subject to the Certain Funds Provisions, the Specified Acquisition Agreement Representations and the Specified Representations shall be true and correct in all material respects (or, if already qualified by materiality, in all respects).

 

C-2


ANNEX I to

EXHIBIT C

SOLVENCY CERTIFICATE

To the Facility Agent and each of the Lenders party to the Credit Agreement referred to below:

This certificate is furnished to the Facility Agent and the Lenders pursuant to Section __ of the Credit Agreement, dated as of ____________, among _________ (the “Credit Agreement”). Unless otherwise defined herein, capitalized terms used in this certificate shall have the meanings set forth in the Credit Agreement.

I, the undersigned chief financial officer of Cegeka Groep NV (the “Company”), in that capacity only and not in my individual capacity (and without personal liability), do hereby certify as of the date hereof, and based upon facts and circumstances as they exist as of the date hereof (and disclaiming any responsibility for changes in such facts and circumstances after the date hereof), that:

As of the date hereof, on a pro forma basis after giving effect to the consummation of the Transactions on the date hereof:

(a) the fair value of the assets (on a going concern basis) of the Company and its Subsidiaries, on a consolidated basis, exceeds, on a consolidated basis, their debts and liabilities, subordinated, contingent or otherwise;

(b) the present fair saleable value of the property (on a going concern basis) of the Company and its Subsidiaries, on a consolidated basis, is greater than the amount that will be required to pay the probable liability, on a consolidated basis, of their debts and other liabilities, subordinated, contingent or otherwise, as such debts and other liabilities become absolute and matured in the ordinary course of business;

(c) the Company and its Subsidiaries, on a consolidated basis, are able to pay their debts and liabilities, subordinated, contingent or otherwise, as such liabilities become absolute and matured in the ordinary course of business; and

(d) the Company and its Subsidiaries, on a consolidated basis, are not engaged in, and are not about to engage in, business contemplated as of the date hereof for which they have unreasonably small capital.

For purposes of this Solvency Certificate, the amount of any contingent liability at any time shall be computed as the amount that would reasonably be expected to become an actual and matured liability in the ordinary course of business.

The undersigned is familiar with the business and financial position of the Company and its Subsidiaries (taken as a whole). In reaching the conclusions set forth in this Solvency Certificate, the undersigned has made such other investigations and inquiries as the undersigned has deemed appropriate, having taken into account the nature of the particular business anticipated to be conducted by the Company and its Subsidiaries (taken as a whole) after consummation of the transactions contemplated by the Credit Agreement to be effected on the Closing Date.

* * *


IN WITNESS WHEREOF, the Company has caused this certificate to be executed on its behalf by chief financial officer as of the date first written above.

 

[                    ]
By:    
  Name:
  Title:

Exhibit (d)(2)

 

LOGO   

300 Corporate Parkway

Suite 214N

Amherst, NY 14226

+1 716 882 8000

www.ctg.com

STRICTLY PRIVATE AND CONFIDENTIAL

November 4, 2022

Cegeka Groep NV

Kempische Steenweg 307

B-3500 Hasselt

Belgium

Attention:        Stijn Bijnens

Chief Executive Officer

CONFIDENTIALITY AGREEMENT

Ladies and Gentlemen:

You have requested that, in connection with a review of a potential negotiated transaction, Computer Task Group, Incorporated, a New York corporation (collectively with its subsidiaries, as used herein, the “Company”), make available to you certain confidential and proprietary information relating to the Company which is not available to the general public. All such information, whether written, oral or electronic, furnished after the date of this letter agreement by the Company, its Representatives (as defined below) or otherwise, and regardless of the manner or form in which it is furnished, is collectively referred to in this letter agreement as “Evaluation Material.” The term “Evaluation Material” also includes all notes, summaries, analyses, compilations, studies or other documents or media prepared by you or your Representatives which contain, reflect or are based upon, in whole or in part, the information furnished to you or your Representatives pursuant to this letter agreement. The term Evaluation Material does not include, however, information which (a) is or becomes generally available to the public other than as a result of direct or indirect disclosure by you or your Representatives in violation of the terms of this letter agreement, (b) prior to its disclosure to you by the Company or its Representatives, is known or available to you on a non-confidential basis from a source (other than the Company or any of its Representatives) which is not, to your actual knowledge, prohibited from disclosing such information to you by a legal, contractual or fiduciary obligation to the Company or any other Person or (c) is developed independently by or for you without reference to the Evaluation Material. The term “Representatives” means, as to any Person, its directors, officers, employees, agents or advisors (including, without limitation, attorneys, accountants, consultants, financial advisors and your potential sources of financing). The term “Person” as used in this letter agreement is broadly interpreted to include any corporation, company, partnership or other legal or business entity or any individual.

Accordingly, as a condition to, and in consideration of, the Evaluation Material being furnished to you, you agree that:

1. Except as required by Law (and only after compliance with paragraph 2 below), unless otherwise agreed to in writing by the Company in its sole discretion, you will (a) not use, duplicate or disclose, or permit the use, duplication or disclosure of, any of the Evaluation Material in any manner whatsoever, other than for the sole purpose of evaluating or pursuing a possible negotiated transaction between the parties hereto, (b) keep the Evaluation Material confidential and (c) not disclose to any other Person the fact the Evaluation Material exists or has been made available, that you are considering a transaction between the parties hereto, or that discussions or negotiations are taking place concerning or


involving the Company or any of the terms, conditions, or other facts with respect thereto (including, without limitation, the status thereof or the existence of this letter agreement); provided, however, that such information may be disclosed to your Representatives who are actively and directly participating in your evaluation of a possible negotiated transaction between the parties hereto or who otherwise need to know such information for the sole purpose of evaluating or pursuing such a possible transaction and who are informed by you of the confidential nature of the information and expressly agree to maintain such confidentiality. Without limiting the generality of the foregoing, you further agree that you will not, directly or indirectly, share the Evaluation Material with or enter into any agreement, arrangement or understanding, or have any discussions which would reasonably be expected to lead to such an agreement, arrangement or understanding with any other person (other than your Representatives), including other potential bidders, regarding a possible transaction involving the Company without the prior written consent of the Company, which consent may be given, withheld or conditioned in its sole discretion, and only upon such person executing a confidentiality agreement in favor of the Company with terms and conditions consistent with this letter agreement. Except for existing credit facilities in place with financing sources that may be drawn in connection with a possible negotiated transaction, you hereby represent that you are not party to any such agreement, arrangement or understanding with any other person, as described in the foregoing sentence. You will cause your Representatives to observe the terms of this letter agreement and you will be responsible for any breach of this letter agreement by your Representatives. The term “Law” means any applicable law or regulation (including, without limitation, any rule, regulation or policy statement of any organized securities exchange, market or automated quotation system on which any of your securities are listed or quoted) or by valid legal process.

2. If you or any of your Representatives are requested pursuant to, or required in connection with any legal proceedings, government investigations or any compulsory legal process to disclose any Evaluation Material or other information concerning the Company or a possible transaction between the parties, prior to any such disclosure, you will, to the extent reasonably practicable and not legally prohibited, notify the Company promptly of any such request or requirement so that the Company may, at its sole cost and expense, seek a protective order or other appropriate remedy, or, in the Company’s sole discretion, waive compliance with the terms of this letter agreement. If no such protective order or other remedy is obtained or the Company waives compliance with the terms of this letter agreement, you or your Representatives will disclose only that portion of the Evaluation Material or other information which you are advised in writing by your legal counsel is legally required or advisable to be disclosed and will use reasonable efforts to ensure any such information so disclosed will be accorded confidential treatment in, and will not be used for any other purpose than, the legal proceeding, investigation or legal process in which it is produced.

3. If you determine not to proceed with a possible transaction between the parties, you will promptly inform the Company of that decision. In that case, or at any time upon the request of the Company for any reason in its sole discretion, you will promptly (and in any case, within 10 days of the Company’s request) (a) either deliver to the Company or destroy all Evaluation Material furnished to you or your Representatives by or on behalf of the Company (and all copies thereof whether received from the Company or made by you or your Representatives) and (b) either deliver to the Company or destroy all materials prepared by you or your Representatives which constitute Evaluation Material without retaining a copy of any such material, with any such destruction certified to the Company in writing by your authorized officer supervising such destruction, in each case other than any back-up electronic copy of such Evaluation Material that is automatically generated or any copy of such Evaluation Material that you are required to retain solely for legal, regulatory or audit purposes. Notwithstanding the return or destruction of the Evaluation Material, you and your Representatives will continue to be bound by your obligations of confidentiality and all other obligations under this letter agreement.

 

2


4. You acknowledge that, except as may be set forth in any definitive agreements entered into in connection with a possible negotiated transaction (and subject to the terms and conditions as may be contained therein), (a) neither the Company, nor any of its Representatives nor any of their respective directors, officers, employees, or agents makes any express or implied representation or warranty as to the accuracy or completeness of any Evaluation Material, (b) none of such Persons will have any liability to you or to any of your Representatives, relating to or resulting from the use of any Evaluation Material or for any errors therein or omissions therefrom, and (c) you also agree that you are not entitled to rely on the accuracy or completeness of any Evaluation Material and that you may only rely on those representations and warranties that may be contained in any definitive agreement executed and delivered by you and the Company and any other necessary parties, subject to the terms and conditions as may be contained therein.

5. For a period of one year from the date of this letter agreement, neither you nor any of your directors, officers or employees will, directly or indirectly, solicit for employment or employ any current officer or senior management employee of the Company who you obtain actual knowledge of in connection with the parties’ discussion of a possible transaction without obtaining the prior written consent of the Company; provided, however, that you will not be prohibited from making general employment solicitations not directed at such employees of the Company or hiring any individuals who respond to such solicitations.

6. You acknowledge that you are aware and that your Representatives have been advised that the United States securities Laws prohibit any Person having material, non-public information about an issuer from trading the securities of that company or from communicating such information to other Persons.

7. For a period of one year from the date of this letter agreement, neither you nor any of your Representatives or respective affiliates will in any manner, directly or indirectly, without the prior written invitation of the Company’s Chief Executive Officer or its Board of Directors (or a duly authorized committee thereof):

(a) acquire or seek, propose or offer to the Board of Directors of the Company, announce an intention to acquire, or agree to acquire or cause to be acquired, directly or indirectly, by purchase or otherwise, any (i) securities or direct or indirect rights (including, but not limited to, any voting right or beneficial ownership as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of the Company or any of its subsidiaries, (ii) option, forward contract, swap or other position (A) conveying the right, direct or indirect, to acquire or vote securities of the Company or any of its subsidiaries or (B) with a value derived from securities of the Company or any of its subsidiaries or (iii) any assets, indebtedness or businesses of the Company or of any of its divisions or subsidiaries, other than in each case acquisitions of common stock of the Company held for investment purposes that do not constitute more than 1% of the outstanding common stock of the Company (references to the Company in this paragraph 7(a) are deemed to include any successor to or Person in control of the Company);

(b) make, or in any way participate, directly or indirectly, in any, “solicitation” of “proxies” (as such terms are used in the rules of the United States Securities and Exchange Commission), or advise or seek to influence any Person with respect to the voting of any voting securities of the Company;

(c) make any public announcement with respect to, or submit a proposal (whether public or otherwise) for, or offer of (with or without conditions) any tender or exchange offer, merger, recapitalization, reorganization, business combination, restructuring, extraordinary dividend or distribution, liquidation, dissolution or other extraordinary transaction involving the Company or any of its securities or assets;

 

3


(d) act, alone or in concert with others (including, without limitation, by providing financing to another party), to seek or offer to control or influence the management, board of directors, policies or affairs of the Company, or nominate any person as a director of the Company, or propose any matter to be voted upon by the stockholders of the Company;

(e) arrange, or in any way participate in, any financing for the purchase of any voting securities or securities convertible or exchangeable into or exercisable for any voting securities or assets of the Company;

(f) take any action which might cause or require the Company to make a public announcement regarding any of the types of matters set forth in this paragraph 7;

(g) form, join or in any way communicate or associate with other holders of securities of the Company or in any way participate in a “group” as defined in Section 13(d)(3) of the Exchange Act in connection with any of the foregoing;

(h) announce any intention to effect, cause or participate in, or advise, assist or encourage any other Persons in connection with any of the foregoing; or

(i) request the Company or any of its Representatives, directly or indirectly, to amend or waive any provision of this paragraph 7, except that you may make a confidential request to the Company for a waiver of paragraph 7(a) and paragraph 7(c) to make a confidential proposal to the Board of Directors of the Company.

8. John Laubacker will coordinate the due diligence process. All (a) communications between the parties, (b) requests for additional information, facility tours, management meetings and other management contacts and (c) discussions or questions regarding procedures with respect to due diligence must be first submitted or directed to Mr. Laubacker, or his designee, and may not be submitted or directed to any person except as authorized by Mr. Laubacker.

9. You will inform yourself and your Representatives about and observe all applicable data protection, export control and/or privacy requirements in all jurisdictions in which the Company conducts business or owns assets and any other relevant jurisdictions with respect to Evaluation Material received.

10. No contract or agreement providing for any transaction involving you and the Company will be deemed to exist between you and the Company unless and until a definitive agreement has been executed and delivered by you and the Company and any other necessary parties. Unless and until a definitive agreement has been entered into between you and the Company regarding a transaction between you and the Company, neither the Company nor you will be under any legal obligation or have any liability to the other party or any other Person of any kind whatsoever with respect to such a transaction by virtue of this letter agreement, except for the matters specifically agreed to in this letter agreement. Except for a breach of this letter agreement, neither the Company nor any of its Representatives shall have any liability to you or any of your Representatives or shareholders on any basis (including, without limitation, in contract, tort, under federal or state securities laws or otherwise), and neither you nor your Representatives will make any claims whatsoever against such persons with respect to or arising out of a possible transaction, as a result of this letter agreement or any other written or oral expression with respect to a possible transaction, the participation of such party and its representatives in evaluating a possible transaction, the review of or use or content of the Evaluation Material or any errors therein or omissions

 

4


therefrom, or any action taken or any inaction occurring in reliance on the Evaluation Material, except as may be included in any definitive agreement with respect to any transaction. You also acknowledge and agree that (a) the Company and its Representatives will conduct the process (which process may or may not result in a transaction with the Company) in such manner as the Company, in its sole discretion, may determine (including, without limitation, negotiating and entering into a definitive agreement with any third party without notice to you) and (b) the Company reserves the right to change, in its sole discretion, at any time and without notice to you, the procedures relating to our and your consideration of a possible transaction between the parties (including, without limitation, terminating all further discussions with you and requesting that you return or destroy the Evaluation Material as described in paragraph 3 above).

11. You acknowledge that the Company may be entitled to the protections of the attorney work-product doctrine, attorney-client privilege or similar protections or privileges with respect to portions of the Evaluation Material. The Company is not waiving, and will not be deemed to have waived or diminished, any of its attorney work-product protections, attorney-client privileges or similar protections or privileges as a result of the disclosure of such Confidential Information pursuant to this Agreement. The parties to this letter agreement (a) share a common legal and commercial interest in such Evaluation Material, (b) are or may become joint defendants in proceedings to which such Evaluation Material relates and (c) intend that such protections and privileges remain intact should either party to this letter agreement become subject to any actual or threatened proceeding to which such Evaluation Material relates. In furtherance of the foregoing, neither party to this letter agreement will claim or contend, in proceedings involving the other party, that the Company waived the protections of the attorney work-product doctrine, attorney-client privilege or similar protections or privileges as a result of the disclosure of Evaluation Material pursuant to this letter agreement.

12. It is understood and agreed that money damages may be an insufficient remedy for any breach of this letter agreement by you or your Representatives and that, without prejudice to the rights and remedies otherwise available to the Company, the Company is entitled to seek equitable relief by way of injunction, specific performance or otherwise if you or any of your Representatives breach or threaten to breach any of the provisions of this letter agreement without the necessity to prove actual damages or post any bond.

13. It is further understood and agreed that no failure or delay by the Company in exercising any right, power or privilege under this letter agreement, and no course of dealing between the parties, will operate as a waiver thereof, nor will any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power or privilege under this letter agreement.

14. This letter agreement and all disputes and controversies arising hereunder or related hereto, will be governed and construed in accordance with the Laws of the State of New York without regard to principles of conflicts of law that would apply any other law.

15. Any action or proceeding arising out of or relating to this letter agreement or the transactions contemplated hereby may be brought in the courts of the State of New York, County of New York, or, if it has or can acquire jurisdiction, in the United States District Court for the Southern District of New York. Each of the parties knowingly, voluntarily and irrevocably submits to the exclusive jurisdiction of each such court in any such action or proceeding and waives any objection it may now or hereafter have to venue or to convenience of forum. You further agree that service of any process, summons, notice or document by United States certified mail to your address set forth above will be effective service of process for any action or proceeding brought against you in any such court.

16. Any assignment of this letter agreement by you without the Company’s prior written consent is void.

 

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17. If any provision of this letter agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, in whole or in part, the remaining provisions of this letter agreement will remain in full force and effect to the fullest extent permitted by applicable law.

18. This letter agreement contains the entire agreement between you and the Company concerning confidentiality of the Evaluation Material. No modification of this letter agreement or waiver of the terms and conditions hereof will be binding upon you or the Company, unless approved in writing by each of you and the Company.

19. This letter agreement may be executed in any number of counterparts, including by electronic transmission in portable document format or “tiff” format, and each of such counterparts shall for all purposes be deemed original, and all such counterparts shall together constitute one and the same instrument.

[Signature page follows.]

 

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Please confirm your agreement with the foregoing by signing and returning one copy of this letter agreement to the undersigned, whereupon this letter agreement will become a binding agreement between you and the Company.

 

Very truly yours,

COMPUTER TASK GROUP, INCORPORATED

By:

  /s/ Filip Gydé
 

Filip Gydé

 

President and Chief Executive Officer

Agreed and accepted as of the date first written above:

CEGEKA GROEP NV

 

By:                                                                                                 
Name:    Escadon bv, legally represented by Stephan Daems    ID&D nv, legally represented by Stijn Bijnens
Title:    Director    Director
   LOGO    LOGO

Exhibit 107

Calculation of Filing Fee Tables

Schedule TO

COMPUTER TASK GROUP, INCORPORATED

(Name of Subject Company (issuer))

CHICAGO MERGER SUB, INC.

(Offeror)

a wholly owned subsidiary of

CEGEKA GROEP NV

(Parent of Offeror)

(Names of Filing Persons (identifying status as offeror, issuer or other person))

Table 1-Transaction Valuation

 

       
     Transaction
Valuation*
 

Fee

rate

  Amount of
Filing Fee**
       

Fees to Be Paid

  $195,834,224.83    0.00011020    $21,580.93
       

Fees Previously Paid

  $                       0      $              0
       

Total Transaction Valuation

  $195,834,224.83       
       

Total Fees Due for Filing

      $21,580.93
       

Total Fees Previously Paid

      $              0
       

Total Fee Offsets

      $              0
       

Net Fee Due

          $21,580.93

 

*

Estimated solely for purposes of calculating the amount of the filing fee only. The transaction valuation was calculated by adding (a) 16,044,813.5554, the number of shares of common stock, par value $0.01 per share (each such share, a “Share”) of Computer Task Group, Incorporated (“CTG”), multiplied by $10.50 (the “Offer Price”), (b) 1,332,068, the number of Shares issuable pursuant to outstanding options, multiplied by the Offer Price, (c) 1,155,349, the number of Shares issuable pursuant to outstanding restricted stock units, multiplied by the Offer Price, and (d) 118,648, the number of Shares reserved for future issuance under the Computer Task Group Incorporated Employee Stock Purchase Plan, multiplied by the Offer Price. The calculation of the filing fee is based on information provided by CTG as of August 2, 2023.

**

The amount of the filing fee was calculated in accordance with Rule 0-11 of the Securities Exchange Act of 1934, as amended, and Fee Rate Advisory #1 for fiscal year 2023 beginning on October 1, 2022, issued August 26, 2022, by multiplying the transaction value by 0.00011020.


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