REIS, INC. -...
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE TO (Rule 14d-100) TENDER OFFER STATEMENT UNDER SECTION 14(D)(1) OR 13(E)(1) OF THE SECURITIES EXCHANGE ACT OF 1934 REIS, INC. (Name of Subject Company (Issuer)) MOODY’S ANALYTICS MARYLAND CORP. A wholly owned subsidiary of MOODY’S CORPORATION (Names of Filing Persons (Offerors)) Common Stock, Par Value $0.02 Per Share (Title of Class of Securities) 75936P105 (CUSIP Number of Class of Securities) John J. Goggins Executive Vice President and General Counsel Moody’s Corporation 7 World Trade Center at 250 Greenwich Street, New York, N.Y. 10007 (212) 553-0300 (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications on Behalf of Filing Persons) Copy to: Marie Gibson Skadden, Arps, Slate, Meagher & Flom LLP 4 Times Square New York, NY 10036 (212) 735-3000 CALCULATION OF FILING FEE Transaction Valuation* Amount of Filing Fee** $277,981,972.00 $34,608.76 * Estimated for purposes of calculating the filing fee only. The transaction valuation was calculated as the sum of (i) 11,569,699 shares of common stock, par value $0.02 per share (the “Shares”), of Reis, Inc. (“Reis”) outstanding (which excludes 2,557,456 Shares that are wholly-owned by subsidiaries of Reis, and that will not be tendered in the Offer (as defined below)) multiplied by $23.00, (ii) 245,000 Shares issuable pursuant to outstanding options with an exercise price less than the price of $23.00 per share, multiplied by $14.12 (which is the price of $23.00 minus the weighted average exercise price for such options of $8.88 per share) and (iii) 366,065 Shares subject to issuance pursuant to outstanding Reis restricted stock units multiplied by $23.00. The calculation of the filing fee is based on information provided by Reis as of August 24, 2018. ** The filing fee was calculated in accordance with Rule 0-11 under the Securities Exchange Act of 1934, as amended, and Fee Rate Advisory No. 1 for Fiscal Year 2018, effective October 1, 2017, by multiplying the transaction value by 0.0001245. ☐ Check box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. Amount Previously Paid: None Filing Party: Not applicable Form or Registration No.: Not applicable Date Filed: Not applicable ☐ 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. ☐
Transcript of REIS, INC. -...
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE TO(Rule 14d-100)
TENDER OFFER STATEMENT UNDER SECTION 14(D)(1)OR 13(E)(1) OF THE SECURITIES EXCHANGE ACT OF 1934
REIS, INC.(Name of Subject Company (Issuer))
MOODY’S ANALYTICS MARYLAND CORP.A wholly owned subsidiary of
MOODY’S CORPORATION(Names of Filing Persons (Offerors))
Common Stock, Par Value $0.02 Per Share(Title of Class of Securities)
75936P105(CUSIP Number of Class of Securities)
John J. GogginsExecutive Vice President and General Counsel
Moody’s Corporation7 World Trade Center at
250 Greenwich Street, New York, N.Y. 10007(212) 553-0300
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications on Behalf of Filing Persons)
Copy to:Marie Gibson
Skadden, Arps, Slate, Meagher & Flom LLP4 Times Square
New York, NY 10036(212) 735-3000
CALCULATION OF FILING FEE
Transaction Valuation* Amount of Filing Fee**$277,981,972.00 $34,608.76
* Estimatedforpurposesofcalculatingthefilingfeeonly.Thetransactionvaluationwascalculatedasthesumof(i)11,569,699sharesofcommonstock,parvalue$0.02pershare(the“Shares”),ofReis,Inc.(“Reis”)outstanding(whichexcludes2,557,456Sharesthatarewholly-ownedbysubsidiariesofReis,andthatwillnotbetenderedintheOffer(asdefinedbelow))multipliedby$23.00,(ii)245,000Sharesissuablepursuanttooutstandingoptionswithanexercisepricelessthanthepriceof$23.00pershare,multipliedby$14.12(whichisthepriceof$23.00minustheweightedaverageexercisepriceforsuchoptionsof$8.88pershare)and(iii)366,065SharessubjecttoissuancepursuanttooutstandingReisrestrictedstockunitsmultipliedby$23.00.ThecalculationofthefilingfeeisbasedoninformationprovidedbyReisasofAugust24,2018.
** ThefilingfeewascalculatedinaccordancewithRule0-11undertheSecuritiesExchangeActof1934,asamended,andFeeRateAdvisoryNo.1forFiscalYear2018,effectiveOctober1,2017,bymultiplyingthetransactionvalueby0.0001245.
☐ CheckboxifanypartofthefeeisoffsetasprovidedbyRule0-11(a)(2)andidentifythefilingwithwhichtheoffsettingfeewaspreviouslypaid.Identifythe
previousfilingbyregistrationstatementnumber,ortheFormorScheduleandthedateofitsfiling.AmountPreviouslyPaid: None FilingParty: Notapplicable
FormorRegistrationNo.: Notapplicable DateFiled: Notapplicable
☐ Checktheboxifthefilingrelatessolelytopreliminarycommunicationsmadebeforethecommencementofatenderoffer.
Checktheappropriateboxesbelowtodesignateanytransactionstowhichthestatementrelates:☒ third-partytenderoffersubjecttoRule14d-1.☐ issuertenderoffersubjecttoRule13e-4.☐ going-privatetransactionsubjecttoRule13e-3.☐ amendmenttoSchedule13DunderRule13d-2.
Checkthefollowingboxifthefilingisafinalamendmentreportingtheresultsofthetenderoffer.☐
ThisTenderOfferStatementonScheduleTO(this“ScheduleTO”)relatestothetenderofferbyMoody’sAnalyticsMarylandCorp.,aMarylandcorporation(“Purchaser”)andawholly-ownedsubsidiaryofMoody’sCorporation,aDelawarecorporation(“Parent”),topurchasealloftheissuedandoutstandingsharesofcommonstock,parvalue$0.02pershare,ofReis,Inc.,aMarylandcorporation(“Reis”),atapriceof$23.00pershare,nettothesellerincash,withoutinterestandlessanyapplicablewithholdingtaxes,uponthetermsandsubjecttotheconditionsdescribedintheOffertoPurchasedatedSeptember13,2018(togetherwithanyamendmentsorsupplementsthereto,the“OffertoPurchase”)andintheaccompanyingLetterofTransmittal(togetherwithanyamendmentsorsupplementstheretoandwiththeOffertoPurchase,the“Offer”),whichareannexedtoandfiledwiththisScheduleTOasExhibits(a)(1)(A)and(a)(1)(B),respectively.ThisScheduleTOisbeingfiledonbehalfofParentandPurchaser.Unlessotherwiseindicated,referencestosectionsinthisScheduleTOarereferencestosectionsoftheOffertoPurchase.Acopyof:(i)theAgreementandPlanofMerger,datedasofAugust29,2018,byandamongParent,PurchaserandReis;(ii)theTenderandSupportAgreement,datedAugust29,2018,byandamongLloydLynford,LloydN.Lynford2016QualifiedAnnuityTrust,LloydN.Lynford2017QualifiedAnnuityTrust,PurchaserandParent;(iii)theTenderandSupportAgreement,datedAugust29,2018,byandamongJonathanGarfield,JonathanT.Garfield2016QualifiedAnnuityTrust,JonathanGarfieldFamilyTrust,PurchaserandParent;(iv)theConfidentialityAgreement,datedMay25,2018,byandbetweenParentandReis;and(v)theExclusivityAgreement,datedAugust24,2018,byandbetweenParentandReisareincorporatedator,ifapplicable,attachedas,Exhibit(d)(1),Exhibit(d)(2),Exhibit(d)(3),Exhibit(d)(4)andExhibit(d)(5),respectively,heretoandincorporatedhereinbyreferencewithrespecttoItems4through11ofthisScheduleTO.
ITEM 1. SUMMARY TERM SHEET.
TheinformationsetforthinthesectionoftheOffertoPurchasetitled“SummaryTermSheet”isincorporatedhereinbyreference.
ITEM 2. SUBJECT COMPANY INFORMATION.
(a)ThesubjectcompanyandtheissuerofthesecuritiessubjecttotheOfferisReis.Itsprincipalexecutiveofficeislocatedat1185AvenueoftheAmericas,NewYork,NY10036,anditstelephonenumberis(212)921-1122.
(b)ThisScheduleTOrelatestoReis’sShares.AccordingtoReis,asofAugust24,2018,therewere11,569,699Sharesissuedandoutstanding(excludinganySharesownedbyanyofReis’swholly-ownedsubsidiariesorbyParentoranyofitssubsidiaries(includingPurchaser)).
(c)Theinformationconcerningtheprincipalmarket,ifany,inwhichtheSharesaretradedandcertainhighandlowsalespricesfortheSharesintheprincipalmarketinwhichtheSharesaretradedsetforthinSection6—“PriceRangeofShares;Dividends”oftheOffertoPurchaseisincorporatedhereinbyreference.
ITEM 3. IDENTITY AND BACKGROUND OF FILING PERSON.
ThefilingcompaniesofthisScheduleTOare(i)Purchaserand(ii)Parent.EachofPurchaser’sandParent’sprincipalexecutiveofficeislocatedatc/oMoody’sCorporation,7WorldTradeCenterat250GreenwichStreet,NewYork,NY10007,andthetelephonenumberofeachis(212)553-0300.TheinformationregardingPurchaserandParentsetforthinSection9—“CertainInformationConcerningPurchaserandParent”oftheOffertoPurchaseandScheduleAoftheOffertoPurchaseisincorporatedhereinbyreference.
ITEM 4. TERMS OF THE TRANSACTION.
TheinformationsetforthintheOffertoPurchaseisincorporatedhereinbyreference.
ITEM 5. PAST CONTACTS, TRANSACTIONS, NEGOTIATIONS AND AGREEMENTS.
TheinformationsetforthinSection8—“CertainInformationConcerningReis”,Section9—“CertainInformationConcerningPurchaserandParent”,Section10—“BackgroundoftheOffer;ContactswithReis”andSection11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements”oftheOffertoPurchaseisincorporatedhereinbyreference.
ITEM 6. PURPOSES OF THE TRANSACTION AND PLANS OR PROPOSALS.
TheinformationsetforthinthesectionsoftheOffertoPurchasetitled“SummaryTermSheet”and“Introduction”andSection7—“PossibleEffectsoftheOfferontheMarketfortheShares;NASDAQListing;ExchangeActRegistrationandMarginRegulations”andSection11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements”oftheOffertoPurchaseisincorporatedhereinbyreference.
ITEM 7. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
TheinformationsetforthinthesectionsoftheOffertoPurchasetitled“SummaryTermSheet”andSection12—“SourceandAmountofFunds”isincorporatedhereinbyreference.
ITEM 8. INTEREST IN SECURITIES OF THE SUBJECT COMPANY.
TheinformationsetforthinSection9—“CertainInformationConcerningPurchaserandParent”andSection11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements”oftheOffertoPurchaseisincorporatedhereinbyreference.
ITEM 9. PERSONS/ASSETS RETAINED, EMPLOYED, COMPENSATED OR USED.
TheinformationsetforthinSection3—“ProceduresforTenderingShares,”Section16—“FeesandExpenses”andSection10—“BackgroundoftheOffer;ContactswithReis”oftheOffertoPurchaseisincorporatedhereinbyreference.
ITEM 10. FINANCIAL STATEMENTS.
NotApplicable.
ITEM 11.ADDITIONAL INFORMATION.
(a)(1)TheinformationsetforthinthesectionoftheOffertoPurchasetitled“SummaryTermSheet”andinSection10—“BackgroundoftheOffer;ContactswithReis,”Section11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements”andSection15—“CertainLegalMatters;RegulatoryApprovals”oftheOffertoPurchaseareincorporatedhereinbyreference.
(a)(2)TheinformationsetforthinSection15—“CertainLegalMatters;RegulatoryApprovals”oftheOffertoPurchaseisincorporatedhereinbyreference.
(a)(3)TheinformationsetforthinSection15—“CertainLegalMatters;RegulatoryApprovals”oftheOffertoPurchaseisincorporatedhereinbyreference.
(a)(4)TheinformationsetforthinSection7—“PossibleEffectsoftheOfferontheMarketfortheShares;NASDAQListing;ExchangeActRegistrationandMarginRegulations”oftheOffertoPurchaseisincorporatedbyreference.
(a)(5)TheinformationsetforthinSection15—“CertainLegalMatters;RegulatoryApprovals”oftheOffertoPurchaseisincorporatedhereinbyreference.
(c)TheinformationsetforthintheOffertoPurchaseisincorporatedhereinbyreference.
ITEM 12. EXHIBITS.
(a)(1)(A) OffertoPurchase,datedSeptember13,2018
(a)(1)(B) FormofLetterofTransmittal(includingFormW-9)
(a)(1)(C) FormofNoticeofGuaranteedDelivery
(a)(1)(D) FormofLettertoBrokers,Dealers,CommercialBanks,TrustCompaniesandOtherNominees
(a)(1)(E) FormofLettertoClientsforUsebyBrokers,Dealers,CommercialBanks,TrustCompaniesandOtherNominees
(a)(1)(F) FormofSummaryAdvertisement,publishedSeptember13,2018inTheNewYorkTimes
(a)(2) Notapplicable
(a)(3) Notapplicable
(a)(4) Notapplicable
(a)(5)(A)
JointPressReleaseofParentandReis,datedAugust30,2018(incorporatedbyreferencetoExhibit99.1totheScheduleTO-CfiledbyPurchaserandParentwiththeSEConAugust30,2018)
(a)(5)(B) NoticeofMergerissuedbyPurchaserandParentonSeptember13,2018
(a)(5)(C) PressReleaseissuedbyParent,datedSeptember13,2018,announcingcommencementoftheOffer
(b)
FormofCommercialPaperDealerAgreementbetweenParent,asIssuer,andtheDealerPartythereto(incorporatedbyreferencetoExhibit10.1ofParent’sCurrentReportonForm8-KfiledwiththeSEConAugust3,2016).
(c) Notapplicable
(d)(1)
AgreementandPlanofMerger,datedAugust29,2018,byandamongPurchaser,ParentandReis(incorporatedbyreferencetoExhibit2.1ofReis’sCurrentReportonForm8-KfiledwiththeSEConAugust30,2018).
(d)(2)
TenderandSupportAgreement,datedAugust29,2018,byandamongLloydLynford,LloydN.Lynford2016QualifiedAnnuityTrust,LloydN.Lynford2017QualifiedAnnuityTrust,PurchaserandParent(incorporatedbyreferencetoExhibit99.1ofReis’sCurrentReportonForm8-KfiledwiththeSEConAugust30,2018).
(d)(3)
TenderandSupportAgreement,datedAugust29,2018,byandamongJonathanGarfield,JonathanT.Garfield2016QualifiedAnnuityTrust,JonathanGarfieldFamilyTrust,PurchaserandParent(incorporatedbyreferencetoExhibit99.2ofReis’sCurrentReportonForm8-KfiledwiththeSEConAugust30,2018).
(d)(4) ConfidentialityAgreement,datedMay25,2018,byandbetweenParentandReis
(d)(5) ExclusivityAgreement,datedAugust24,2018,byandbetweenParentandReis
(e) Notapplicable
(f) Notapplicable
(g) Notapplicable
(h) Notapplicable
ITEM 13. INFORMATION REQUIRED BY SCHEDULE 13E-3.
Notapplicable.
SIGNATURE
Afterdueinquiryandtothebestofmyknowledgeandbelief,Icertifythattheinformationsetforthinthisstatementistrue,completeandcorrect.
Dated:September13,2018
MOODY’S ANALYTICS MARYLAND CORP.
By: /s/MarkAlmeidaName: MarkAlmeidaTitle: ChairmanoftheBoardandChiefExecutiveOfficer
MOODY’S CORPORATION
By: /s/JohnJ.GogginsName: JohnJ.GogginsTitle: ExecutiveVicePresidentandGeneralCounsel
EXHIBIT INDEX(a)(1)(A) OffertoPurchase,datedSeptember13,2018
(a)(1)(B) FormofLetterofTransmittal(includingFormW-9)
(a)(1)(C) FormofNoticeofGuaranteedDelivery
(a)(1)(D) FormofLettertoBrokers,Dealers,CommercialBanks,TrustCompaniesandOtherNominees
(a)(1)(E) FormofLettertoClientsforUsebyBrokers,Dealers,CommercialBanks,TrustCompaniesandOtherNominees
(a)(1)(F) FormofSummaryAdvertisement,publishedSeptember13,2018inTheNewYorkTimes
(a)(2) Notapplicable
(a)(3) Notapplicable
(a)(4) Notapplicable
(a)(5)(A)
JointPressReleaseofParentandReis,datedAugust30,2018(incorporatedbyreferencetoExhibit99.1totheScheduleTO-CfiledbyPurchaserandParentwiththeSEConAugust30,2018)
(a)(5)(B) NoticeofMergerissuedbyPurchaserandParentonSeptember13,2018
(a)(5)(C) PressReleaseissuedbyParent,datedSeptember13,2018,announcingcommencementofOffer
(b)
FormofCommercialPaperDealerAgreementbetweenParent,asIssuer,andtheDealerPartythereto(incorporatedbyreferencetoExhibit10.1ofParent’sCurrentReportonForm8-KfiledwiththeSEConAugust3,2016).
(c) Notapplicable
(d)(1)
AgreementandPlanofMerger,datedAugust29,2018,byandamongPurchaser,ParentandReis(incorporatedbyreferencetoExhibit2.1ofReis’sCurrentReportonForm8-KfiledwiththeSEConAugust30,2018).
(d)(2)
TenderandSupportAgreement,datedAugust29,2018,byandamongLloydLynford,LloydN.Lynford2016QualifiedAnnuityTrust,LloydN.Lynford2017QualifiedAnnuityTrust,PurchaserandParent(incorporatedbyreferencetoExhibit99.1ofReis’sCurrentReportonForm8-KfiledwiththeSEConAugust30,2018).
(d)(3)
TenderandSupportAgreement,datedAugust29,2018,byandamongJonathanGarfield,JonathanT.Garfield2016QualifiedAnnuityTrust,JonathanGarfieldFamilyTrust,PurchaserandParent(incorporatedbyreferencetoExhibit99.2ofReis’sCurrentReportonForm8-KfiledwiththeSEConAugust30,2018).
(d)(4) ConfidentialityAgreement,datedMay25,2018,byandbetweenParentandReis
(d)(5) ExclusivityAgreement,datedAugust24,2018,byandbetweenParentandReis
(e) Notapplicable
(f) Notapplicable
(g) Notapplicable
(h) Notapplicable
Table of Contents
Exhibit (a)(1)(A)Offer to Purchase
All Outstanding Shares of Common Stockof
REIS, INC.at
$23.00 Net Per Share in Cashby
MOODY’S ANALYTICS MARYLAND CORP.a wholly-owned subsidiary of
MOODY’S CORPORATION
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT11:59 P.M., EASTERN TIME, ON OCTOBER 12, 2018,
UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED.
Moody’sAnalyticsMarylandCorp.,aMarylandcorporation(“Purchaser”)andadirectwholly-ownedsubsidiaryofMoody’sCorporation,aDelawarecorporation(“Parent”)isofferingtopurchase(the“Offer”)alloutstandingsharesofcommonstock,parvalue$0.02pershare(“Shares”),ofReis,Inc.,aMarylandcorporation(“Reis”),atapriceperShareof$23.00,nettotheholderincash,withoutinterest,lessanyapplicablewithholdingtaxes(the“OfferPrice”)uponthetermsandsubjecttotheconditionsdescribedinthisOffertoPurchase(togetherwithanyamendmentsorsupplementshereto,this“OffertoPurchase”)andintherelatedLetterofTransmittal(togetherwithanyamendmentsorsupplementsthereto,the“LetterofTransmittal”).TheOfferisbeingmadeinconnectionwiththeAgreementandPlanofMerger,datedasofAugust29,2018(togetherwithanyamendmentsorsupplementsthereto,the“MergerAgreement”),amongReis,ParentandPurchaser,pursuanttowhich,afterthecompletionoftheOfferandthesatisfactionorwaiverofcertainconditions,PurchaserwillbemergedwithandintoReis,withoutameetingoftheReisstockholdersinaccordancewithSection3-106.1oftheGeneralCorporationLawoftheStateofMaryland(the“MGCL”),andReiswillbethesurvivingcorporationandawholly-ownedsubsidiaryofParent(suchcorporation,the“SurvivingCorporation”andsuchmerger,the“Merger”).AttheeffectivetimeoftheMerger:eachthenoutstandingShare(otherthanConvertedShares(asdefinedbelow)),willbeconvertedintotherighttoreceiveconsiderationequaltotheOfferPrice,withoutinterest,lessanyapplicablewithholdingtaxes.EachShareownedbyanyofReis’swholly-ownedsubsidiariesorbyParentoranyofitssubsidiaries(includingPurchaser)(the“ConvertedShares”)shallnotbetenderedintheOfferbutshallinsteadbeconvertedattheEffectiveTimeintoone(1)fullypaidandnon-assessableshareofcommonstock,parvalue$0.01pershare,oftheSurvivingCorporation.
After careful consideration, the Reis board of directors has unanimously: (i) approved and declared advisable the Merger Agreement, theOffer, the Merger and the other transactions contemplated by the Merger Agreement (the “Transactions”), (ii) determined that it is in the bestinterests of Reis and its stockholders that Reis enter into the Merger Agreement and consummate the Transactions on the terms and subject to theconditions set forth in the Merger Agreement, (iii) resolved that the Merger shall be effected under Section 3-106.1 of the MGCL and (iv) resolvedto recommend that the stockholders of Reis accept the Offer and tender their Shares to Purchaser pursuant to the Offer.
There is no financing condition to the Offer. The Offer is subject to various conditions. See Section 13—“Conditions of the Offer.” Asummary of the principal terms of the Offer appears on pages 11 through 12 of this Offer to Purchase. You should read this entire documentcarefully before deciding whether to tender your Shares.
September13,2018
Table of Contents
IMPORTANT
IfyoudesiretotenderalloranyportionofyourSharestouspursuanttotheOffer,youshouldeither(i)ifyouholdyourSharesdirectlyastheregisteredowner,completeandsigntheLetterofTransmittalfortheOffer,whichisenclosedwiththisOffertoPurchase,inaccordancewiththeinstructionscontainedintheLetterofTransmittal,mailordelivertheLetterofTransmittalandanyotherrequireddocumentstoAmericanStockTransfer&TrustCompany,LLC(the“Depositary”),andeitherdeliverthecertificatesforyourSharestotheDepositaryalongwiththeLetterofTransmittalortenderyourSharesbybook-entrytransferbyfollowingtheproceduresdescribedinSection3—“ProceduresforTenderingShares”ofthisOffertoPurchase,ineachcasepriortotheexpirationoftheOffer,or(ii)ifyouholdyourSharesinstreetname,requestthatyourbroker,dealer,commercialbank,trustcompanyorothernomineeeffectthetransactionforyou.IfyouholdSharesregisteredinthenameofabroker,dealer,commercialbank,trustcompanyorothernomineeyoumustcontactthatinstitutioninordertotenderyourSharestouspursuanttotheOffer.
IfyoudesiretotenderyourSharestouspursuanttotheOfferandthecertificatesrepresentingyourSharesarenotimmediatelyavailable,oryoucannotcomplyinatimelymannerwiththeproceduresfortenderingyourSharesbybook-entrytransfer,oryoucannotdeliverallrequireddocumentstotheDepositarypriortotheexpirationoftheOffer,youmaytenderyourSharestouspursuanttotheOfferbyfollowingtheproceduresforguaranteeddeliverydescribedinSection3—“ProceduresforTenderingShares”ofthisOffertoPurchase.
***
QuestionsandrequestsforassistancemaybedirectedtoD.F.King&Co.,Inc.(the“InformationAgent”)atitsaddressandtelephonenumbers,assetforthonthebackcoverofthisOffertoPurchase.RequestsforadditionalcopiesofthisOffertoPurchase,theLetterofTransmittal,thenoticeofguaranteeddeliveryandothertenderoffermaterialsmaybedirectedtotheInformationAgent.Youmayalsocontactyourbroker,dealer,commercialbank,trustcompanyorothernomineeforassistance.
ThisOffertoPurchaseandtheLetterofTransmittalcontainimportantinformation,andyoushouldreadbothcarefullyandintheirentiretybeforemakinganydecisionwithrespecttotheOffer.
Table of Contents
TABLE OF CONTENTS Page
SUMMARYTERMSHEET 1
INTRODUCTION 8
THETENDEROFFER 11
1. TermsoftheOffer 11
2. AcceptanceforPaymentandPaymentforShares 13
3. ProceduresforTenderingShares 13
4. WithdrawalRights 16
5. U.S.FederalIncomeTaxConsequencesoftheOfferandtheMerger 17
6. PriceRangeofShares;Dividends 18
7. PossibleEffectsoftheOfferontheMarketfortheShares;NASDAQListing;ExchangeActRegistrationandMarginRegulations 19
8. CertainInformationConcerningReis 20
9. CertainInformationConcerningPurchaserandParent 21
10. BackgroundoftheOffer;ContactswithReis 22
11. PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements 26
12. SourceandAmountofFunds 45
13. ConditionsoftheOffer 46
14. DividendsandDistributions 47
15. CertainLegalMatters;RegulatoryApprovals 48
16. FeesandExpenses 50
17. Miscellaneous 50
SCHEDULEA 52
Table of Contents
SUMMARY TERM SHEET
Moody’sAnalyticsMarylandCorp.,arecentlyformedMarylandcorporation(“Purchaser”)andadirectwholly-ownedsubsidiaryofMoody’sCorporation,aDelawarecorporation(“Parent”),isofferingtopurchasealloutstandingsharesofcommonstock,parvalue$0.02pershare,ofReis,Inc.,aMarylandcorporation(“Reis”),atapricepershareof$23.00,nettotheholderincash,withoutinterest,lessanyapplicablewithholdingtaxes,upontermsandsubjecttotheconditionssetforthinthisOffertoPurchaseandintherelatedLetterofTransmittal.EachShareownedbyanyofReis’swholly-ownedsubsidiariesorbyParentoranyofitssubsidiaries(includingPurchaser)(the“ConvertedShares”)shallnotbetenderedintheOfferbutshallinsteadbeconvertedattheEffectiveTimeintoone(1)fullypaidandnon-assessableshareofcommonstock,parvalue$0.01pershare,oftheSurvivingCorporation.Thefollowingaresomequestionsyou,asastockholderofReis,mayhaveandanswerstothosequestions.ThisSummaryTermSheethighlightsselectedinformationfromthisOffertoPurchase,andmaynotcontainalloftheinformationthatisimportanttoyouandisqualifiedinitsentiretybythemoredetaileddescriptionsandexplanationscontainedinthisOffertoPurchaseandtherelatedLetterofTransmittal.TobetterunderstandtheOfferandforacompletedescriptionofthelegaltermsoftheOffer,youshouldreadthisOffertoPurchaseandtherelatedLetterofTransmittalcarefullyandintheirentirety.QuestionsorrequestsforassistancemaybedirectedtotheInformationAgentatitsaddressandtelephonenumbers,assetforthonthebackcoverofthisOffertoPurchase.UnlessotherwiseindicatedinthisOffertoPurchaseorthecontextotherwiserequires,allreferencesinthisOffertoPurchaseto“we,”“our,”or“us”refertoPurchaserorParent,asthecontextrequires.
WHO IS OFFERING TO BUY MY SECURITIES?
• TheOfferisbyPurchaser.PurchaserhasbeenorganizedinconnectionwiththisOfferandhasnotcarriedonanyactivitiesotherthanentering
intotheMergerAgreementandtheTenderandSupportAgreementsrelatingto,andotheractivitiesinconnectionwith,theOffer.SeeSection9—“CertainInformationConcerningPurchaserandParent.”
• Parentisaproviderof(i)creditratings;(ii)credit,capitalmarketsandeconomicresearch,data,analyticaltoolsandrelatedprofessionalservices;(iii)softwaresolutionsthatsupportfinancialriskmanagementactivities;(iv)financialservicestrainingandcertificationservices;(v)offshorefinancialresearchandanalyticalservices;and(vi)companyinformationandbusinessintelligenceproducts.SeeSection9—“CertainInformationConcerningPurchaserandParent.”
• ParenthasagreedpursuanttotheMergerAgreementtocausePurchaserto,uponthetermsandsubjecttotheconditionsinthisOffertoPurchaseandtherelatedLetterofTransmittal,acceptandpayforsharestenderedandnotvalidlywithdrawnintheOffer.
WHAT ARE THE CLASSES AND AMOUNTS OF SECURITIES SOUGHT IN THE OFFER?
• Purchaserisseekingtopurchasealloftheissuedandoutstandingsharesofcommonstock,parvalue$0.02pershare(the“Shares”),ofReis.SeetheIntroductionandSection1—“TermsoftheOffer.”
HOW MUCH ARE YOU OFFERING TO PAY AND WHAT IS THE FORM OF PAYMENT? WILL I HAVE TO PAY ANY FEES ORCOMMISSIONS?
• Purchaserisofferingtopay$23.00perSharenettoyouincash,withoutinterest,lessanyapplicablewithholdingtaxes,uponthetermsandsubjecttotheconditionscontainedinthisOffertoPurchaseandintherelatedLetterofTransmittal.
• IfyourSharesareregisteredinyournameandyoutenderyourShares,youwillnotbeobligatedtopaybrokeragefeesorcommissionsorsimilarexpenses.IfyouholdyourSharesthroughabroker,dealer,commercialbank,trustcompanyorothernomineeandyourbroker,dealer,commercialbank,trustcompanyorothernomineetendersyourSharesonyourbehalf,yourbroker,dealer,commercialbank,trustcompanyorothernomineemaychargeafeefordoingso.Youshouldconsultyourbroker,dealer,commercialbank,trustcompanyorothernomineetodeterminewhetheranychargeswillapply.
Table of Contents
WHY IS PURCHASER MAKING THE OFFER?
• PurchaserismakingtheOfferbecausePurchaserandParentwanttoacquireReis.SeeSection1—“TermsoftheOffer”andSection11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements.”
WHAT ARE THE MOST SIGNIFICANT CONDITIONS OF THE OFFER?
• TheOfferissubjectto,amongothers,thefollowingconditions:
• thereshallhavebeenvalidlytenderedandnotwithdrawnpriortotheexpirationoftheOfferthatnumberofShares(excludinganySharestenderedpursuanttoguaranteeddeliveryproceduresthathavenotyetbeenreceived)whichwouldrepresentatleastamajorityoftheissuedandoutstandingShares(excluding,forpurposesofdeterminingsuchmajority,thetotalnumberofSharesownedbyanyofReis’swholly-ownedsubsidiaries)(the“MinimumTenderCondition”);
• thewaitingperiod(andanyextensionthereof)applicabletotheconsummationoftheOfferandtheMergerundertheHart-Scott-RodinoAntitrustImprovementsActof1976,asamended(the“HSRAct”)shallhaveexpiredorbeenterminated(the“HSRCondition”);
• thereshallnothavebeen(i)enacted,issued,promulgatedorenteredbyanygovernmentalbodyofcompetentjurisdictionandremainingineffectanylaw,commonlaw,statute,ordinance,code,regulation,ruleorotherrequirementor(ii)issuedbyanygovernmentalbodyofcompetentjurisdictionandremainingineffectanyorder,decision,judgment,writ,injunction,decree,awardorotherdetermination,ineachcase,thatenjoinsorotherwiseprohibitstheconsummationoftheOfferortheMerger(the“GovernmentalImpedimentCondition”);
• thereshallnothaveoccurred,sincethedateoftheMergerAgreement,anyevent,condition,change,occurrenceordevelopmentofa
stateofcircumstancesorfactsthat,individuallyorintheaggregate,whichhashad,orwouldreasonablybeexpectedtohaveaMaterialAdverseEffect(asdefinedbelow);and
• theMergerAgreementshallnothavebeenterminatedinaccordancewithitsterms(the“TerminationCondition”).
• PurchaserandParenthavetherighttowaivecertainoftheconditionstotheOfferintheirsolediscretion;providedthatPurchaserandParent
maynotwaivetheMinimumTenderCondition,theHSRCondition,theGovernmentalImpedimentConditionortheTerminationConditionwithouttheconsentofReis.
• TheOfferissubjecttootherconditionsinadditiontothosesetforthabove.AmoredetaileddiscussionoftheconditionstoconsummationoftheOfferiscontainedintheIntroduction,Section1—“TermsoftheOffer”andSection13—“ConditionsoftheOffer.”
IS THERE AN AGREEMENT GOVERNING THE OFFER?
• Yes.Reis,ParentandPurchaserhaveenteredintotheMergerAgreement.TheMergerAgreementprovides,amongotherthings,fortheterms
andconditionsoftheOfferand,followingconsummationoftheOffer,theMerger.SeeSection11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements.”
DO YOU HAVE FINANCIAL RESOURCES TO MAKE PAYMENTS IN THE OFFER?
• Yes.Parentisapubliclytradedcompanywithanequitymarketcapitalizationofapproximately$34.33billion(basedupontheclosingpriceof
ParentsharesontheNewYorkStockExchange(“NYSE”)onSeptember12,2018)andhassufficientfundstopurchasetheSharesintheOffer.The
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Offerisnotconditioneduponenteringintoanyfinancingarrangements.SeeSection11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements”andSection12—“SourceandAmountofFunds.”
SHOULD PURCHASER’S FINANCIAL CONDITION BE RELEVANT TO MY DECISION TO TENDER IN THE OFFER?
• No.PurchaserwillreceivefundsfromParenttopayforallSharestenderedandacceptedforpaymentintheOfferandtoprovidefundingfor
theMergerthatisexpectedtofollowtheOffer.ParentexpectstofundtheOfferandtheMergeroutofavailablecashonhandandborrowingsatprevailingeffectiveratesunderParent’scommercialpaperprogram.SeeSection12—“SourceandAmountofFunds.”
• PurchaserhasbeenorganizedsolelyinconnectionwiththeMergerAgreementandthisOfferandhasnotcarriedonanyactivitiesotherthaninconnectionwiththeMergerAgreementandthisOffer.BecausetheformofpaymentconsistssolelyofcashthatwillbeprovidedtoPurchaserbyParentandbecauseofthelackofanyrelevanthistoricalinformationconcerningPurchaser,Purchaser’sfinancialconditionisnotrelevanttoyourdecisiontotenderintheOffer.SeeSection12—“SourceandAmountofFunds.”
HOW LONG DO I HAVE TO DECIDE WHETHER TO TENDER IN THE OFFER?
• Youwillhaveuntil11:59p.m.,EasternTime,onOctober12,2018,totenderyourSharesintheOffer,unlessPurchaserextendstheOffer,inwhicheventyouwillhaveuntiltheexpirationdateoftheOfferassoextended.Ifyoucannotdelivereverythingthatisrequiredinordertomakeavalidtenderbythattime,youmaybeabletouseaguaranteeddeliveryprocedurewhichisdescribedinSection3—“ProceduresforTenderingShares.”SeealsoSection1—“TermsoftheOffer.”
CAN THE OFFER BE EXTENDED, AND UNDER WHAT CIRCUMSTANCES?
• Ifonorpriortoanythen-scheduledexpirationdateoftheOfferanyoftheconditionstotheOffer(includingtheMinimumTenderConditionortheotherconditionssetforthinSection13—“ConditionsoftheOffer”)havenotbeensatisfiedorwaivedbyParentorPurchaser,Purchaserhasagreedto,andParenthasagreedtocausePurchaserto,extendtheOfferforadditionalperiodsofuptotenbusinessdaysperextension(orlongerifagreed)topermitsuchconditiontotheOffertobesatisfied,untiltheearlierof(i)theterminationoftheMergerAgreementinaccordancewithitstermsor(ii)theOutsideDate(definedintheMergerAgreementasJanuary29,2019).Inaddition,PurchaserhasagreedtoextendtheOfferfortheminimumperiodrequiredbyanyrule,regulation,interpretationorpositionoftheUnitedStatesSecuritiesExchangeCommission(the“SEC”)orthestaffthereofapplicabletotheOfferuntiltheearlierof(i)theterminationoftheMergerAgreementinaccordancewithitstermsor(ii)theOutsideDate.
HOW WILL I BE NOTIFIED IF THE OFFER IS EXTENDED?
• IfPurchaserextendstheOffer,wewillinformAmericanStockTransfer&TrustCompany,LLC,theDepositaryforthisOffer,ofthatfactand
willissueapressreleasegivingthenewexpirationdatenolaterthan9:00a.m.,EasternTime,onthenextbusinessdayafterthedayonwhichtheOfferwaspreviouslyscheduledtoexpire.SeeSection1—“TermsoftheOffer.”
HOW DO I TENDER MY SHARES?
• IfyouholdyourSharesdirectlyastheregisteredowner,youcan(i)tenderyourSharesintheOfferbydeliveringthecertificatesrepresentingyourShares,togetherwithacompletedLetterofTransmittal
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andanyotherdocumentsrequiredbytheLetterofTransmittal,toAmericanStockTransfer&TrustCompany,LLC,theDepositaryfortheOfferor(ii)tenderyourSharesbyfollowingtheprocedureforbook-entrysetforthinSection3—“ProceduresforTenderingShares,”notlaterthantheexpirationoftheOffer.IfyouareunabletodeliveranyrequireddocumentorinstrumenttotheDepositarybytheexpirationoftheOffer,youmaygainsomeextratimebyhavingabroker,abankorotherfiduciarythatisaneligibleguarantorinstitutionguaranteethatthemissingitemswillbereceivedbytheDepositarybyusingtheenclosedNoticeofGuaranteedDelivery.Forthetendertobevalid,however,theDepositarymustreceivethemissingitemswithintwotradingdaysafterthedateofexecutionofsuchNoticeofGuaranteedDelivery.SeeSection3—“ProceduresforTenderingShares.”TheLetterofTransmittalisenclosedwiththisOffertoPurchase.
• IfyouholdyourSharesinstreetname(i.e.,throughabroker,dealer,commercialbank,trustcompanyorothernominee),youmustcontactthe
institutionthatholdsyourSharesandgiveinstructionsthatyourSharesbetendered.YoushouldcontacttheinstitutionthatholdsyourSharesformoredetails.
• Inallcases,paymentfortenderedShareswillbemadeonlyaftertimelyreceiptbytheDepositaryofcertificatesforsuchShares(orofaconfirmationofabook-entrytransferofsuchSharesasdescribedinSection3—“ProceduresforTenderingShares”)andaproperlycompletedanddulyexecutedLetterofTransmittalandanyotherrequireddocumentsforsuchShares.SeealsoSection2—“AcceptanceforPaymentandPaymentforShares.”
HAVE ANY STOCKHOLDERS ALREADY AGREED TO TENDER THEIR SHARES IN THE OFFER?
• Yes.InconnectionwiththeexecutionoftheMergerAgreement,LloydLynford,theChiefExecutiveOfficerandPresidentofReis,andJonathanGarfield,theExecutiveVicePresidentofReis,andcertainoftheirrespectiveaffiliatedtrustentitieshaveenteredintoTenderandSupportAgreementspursuanttowhichtheyhaveagreedtotender1,224,412and861,357,respectivelyoftheirSharesintheOffer.SeeSection11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements.”
UNTIL WHAT TIME CAN I WITHDRAW PREVIOUSLY TENDERED SHARES?
• YoumaywithdrawpreviouslytenderedSharesanytimepriorto11:59p.m.,EasternTime,onOctober12,2018,unlessPurchaserextendstheOffer.SeeSection4—“WithdrawalRights.”Inaddition,pursuanttoSection14(d)(5)oftheSecuritiesExchangeActof1934(the“ExchangeAct”),asamended,SharesmaybewithdrawnatanytimeafterNovember11,2018,whichisthe60thdayafterthedateofthecommencementoftheOffer,unlesspriortothatdatePurchaserhasacceptedforpaymenttheSharesvalidlytenderedintheOffer.
HOW DO I WITHDRAW PREVIOUSLY TENDERED SHARES?
• TowithdrawpreviouslytenderedShares,youmustdeliverawrittenorfacsimilenoticeofwithdrawalwiththerequiredinformationtotheDepositarywhileyoustillhavetherighttowithdraw.IfyoutenderedSharesbygivinginstructionstoabroker,dealer,commercialbank,trustcompanyorothernominee,youmustinstructthebroker,dealer,commercialbank,trustcompanyorothernomineetoarrangeforthewithdrawalofyourShares.SeeSection4—“WithdrawalRights.”
WHAT DOES REIS’S BOARD OF DIRECTORS THINK OF THE OFFER?
• Reis’sboardofdirectors(the“ReisBoard”)hasunanimouslyrecommendedthatyouaccepttheOffer.Reis’sfullstatementontheOfferisset
forthinitsSchedule14D-9,whichitintendstofilewiththeSECconcurrentlywiththefilingofourScheduleTOdatedSeptember13,2018(the“ScheduleTO”).SeealsotheIntroduction.
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WILL THE TENDER OFFER BE FOLLOWED BY A MERGER IF ALL THE SHARES ARE NOT TENDERED?
• IfweacceptSharesforpaymentpursuanttotheOffer,wewillholdasufficientnumberofSharestoensureanyrequisiteadoptionoftheMergerAgreementbyReisstockholdersundertheMGCLtocompletetheMerger.IftheMergeroccurs,Reiswillbecomeawholly-ownedsubsidiaryofParentandeachissuedandthenoutstandingShare(otherthanConvertedShares)willbecanceledandconvertedautomaticallyintotherighttoreceive$23.00perShare,incash,withoutinterest,lessanyapplicablewithholdingtaxes.SeetheIntroduction.
• BecausetheMergerwillbegovernedbySection3-106.1oftheMGCL,nostockholdervotewillberequiredtoconsummatetheMerger.SubjecttothesatisfactionoftheremainingconditionssetforthintheMergerAgreement,Purchaser,ParentandReisarerequiredtoeffecttheMergerpursuanttoSection3-106.1oftheMGCLaspromptlyaspossible(andinnoeventlaterthan9:00a.m.,EasternTime,onthefirstbusinessdayfollowingthedateonwhichSharesarefirstacceptedforpurchaseundertheOffer).SeeSection11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements.”
IF THE OFFER IS COMPLETED, WILL REIS CONTINUE AS A PUBLIC COMPANY?
• No.AssumingallconditionstotheMergeraresatisfiedorwaived(totheextentpermittedbyapplicablelaw),wewilleffecttheMergeraspromptlyaspossible(andinnoeventlaterthan9:00a.m.,EasternTime,onthefirstbusinessdayfollowingthedateonwhichSharesarefirstacceptedforpurchaseundertheOffer)pursuanttoapplicableprovisionsoftheMGCL,afterwhichtheSurvivingCorporationwillbeawholly-ownedsubsidiaryofParentandtheShareswillnolongerbepubliclytraded.EveniftheMergerdoesnotoccurbecausetheconditionstotheMergerarenotsatisfied,ifPurchaserpurchasesallSharesthathavebeentendered,theremaybesofewremainingstockholdersandpubliclyheldSharesthattheSharesmaynolongerbeeligibletobetradedthroughNASDAQoranyothersecuritiesmarket,theremaynotbeapublictradingmarketfortheShares,andReismayceasetomakefilingswiththeSECorotherwiseceasetoberequiredtocomplywiththeSEC’srulesrelatingtopubliclyheldcompanies.SeeSection7—“PossibleEffectsoftheOfferontheMarketfortheShares;NASDAQListing;ExchangeActRegistrationandMarginRegulations.”
IF I DECIDE NOT TO TENDER, HOW WILL THE OFFER AFFECT MY SHARES?
• IfyoudecidenottotenderyourSharesintheOfferandtheMergeroccursasdescribedabove,youwillreceiveintheMergertherighttoreceivethesameamountofcashperShareasifyouhadtenderedyourSharesintheOffer.
• IfyoudecidenottotenderyourSharesintheOffer,andPurchaserpurchasesShareswhichhavebeentenderedintheOffer,buttheMergerdoesnotoccurthereafterbecausetheconditionstotheMergerarenotsatisfied,youwillremainastockholderofReis,buttheremaybesofewremainingstockholdersandpubliclyheldSharesthattheShareswillnolongerbeeligibletobetradedthroughNASDAQoranyothersecuritiesmarket,theremaynotbeapublictradingmarketfortheShares,andReismayceasemakingfilingswiththeSECorotherwiseceasebeingrequiredtocomplywiththeSECrulesrelatingtopubliclyheldcompanies.Subjecttolimitedconditions,ifwepurchaseSharesintheOffer,weareobligatedundertheMergerAgreementtocausetheMergertooccur.SeeSection7—“PossibleEffectsoftheOfferontheMarketfortheShares;NASDAQListing;ExchangeActRegistrationandMarginRegulations.”
• FollowingtheOffer,theSharesmaynolongerconstitute“marginsecurities”forpurposesofthemarginregulationsoftheFederalReserve
Board,inwhichcaseyourSharesmaynolongerbeusedascollateralforloansmadebybrokers.Section7—“PossibleEffectsoftheOfferontheMarketfortheShares;NASDAQListing;ExchangeActRegistrationandMarginRegulations.”
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WHAT IS THE MARKET VALUE OF MY SHARES AS OF A RECENT DATE?
• OnAugust29,2018,thelastfulltradingdaybeforeweannouncedourintentiontomakeanOfferforalloftheoutstandingShares,thelastreportedclosingpriceperSharereportedonNASDAQwas$17.40.SeeSection6—“PriceRangeofShares;Dividends.”
• OnSeptember12,2018,thelastfulltradingdaybeforewecommencedtheOffer,thelastreportedclosingpriceperSharereportedonNASDAQwas$22.90.SeeSection6—“PriceRangeofShares;Dividends.”
IF I ACCEPT THE OFFER, WHEN AND HOW WILL I GET PAID?
• IftheconditionstotheOfferassetforthintheIntroductionandSection13—“ConditionsoftheOffer”aresatisfiedorwaivedandPurchaserconsummatestheOfferandacceptsyourShares(otherthanConvertedShares)forpayment(thetimeofsuchacceptance,the“AcceptanceTime”),wewillpayyouadollaramountequaltothenumberofSharesyouvalidlytenderedmultipliedby$23.00incash,withoutinterest,lessanyapplicablewithholdingtaxes,assoonasreasonablypracticableandnomorethanonebusinessdayaftertheAcceptanceTime.SeeSection1—“TermsoftheOffer”andSection2—“AcceptanceforPaymentandPaymentforShares.”
IF I AM AN EMPLOYEE OF REIS, HOW WILL MY OUTSTANDING EQUITY AWARDS BE TREATED IN THE OFFER AND THEMERGER?
• PursuanttotheMergerAgreement,attheEffectiveTime(asdefinedbelow),eachoptiontoacquireReisSharesoutstandingimmediatelybeforetheEffectiveTime(whetherornotthenexercisableorvested)(each,a“ReisOption”)willbecanceled,andeachReisOptionwithanexercisepricethatislessthantheOfferPricewillbeconvertedintotherighttoreceiveacashpayment,withoutinterest,lessanyapplicablewithholdingtaxes,equalto(i)theexcessof(x)theOfferPriceover(y)theper-shareexerciseorpurchasepriceofsuchReisOption,multipliedby(ii)thetotalnumberofsharessubjecttosuchthatmaybeacquireduponexerciseofsuchReisOption,whetherornotthenexercisableorvested,immediatelybeforetheEffectiveTime.
• AttheEffectiveTime,eachReisrestrictedstockunitinrespectofSharesoutstandingimmediatelybeforetheEffectiveTime(each,a“ReisRSU”)willbe,totheextentnotalreadyvested,vestedandcanceledandconvertedintotherighttoreceiveacashpayment,withoutinterest,lessanyapplicablewithholdingtaxes,equaltotheproductoftheOfferPricemultipliedbythetotalnumberofSharesunderlyingsuchReisRSUimmediatelybeforetheEffectiveTime.
WHAT ARE THE U.S. FEDERAL INCOME TAX CONSEQUENCES OF THE OFFER AND THE MERGER?
• Generally,ifyouareaU.S.Holder(asdefinedinSection5—“U.S.FederalIncomeTaxConsequencesoftheOfferandtheMerger”),thereceiptofcashinexchangeforyourSharespursuanttotheOfferortheMergerwillbeataxabletransactionforU.S.federalincometaxpurposes.WeurgeyoutoconsultyourowntaxadvisorastotheparticulartaxconsequencestoyouoftheOfferandtheMerger.SeeSection5—“U.S.FederalIncomeTaxConsequencesoftheOfferandtheMerger”foramoredetaileddiscussionofthetaxconsequencesoftheOfferandtheMerger.
WILL I HAVE THE RIGHT TO HAVE MY SHARES APPRAISED?
• Nodissenters’orappraisalrightsorrightsofanobjectingstockholdershallbeavailablewithrespecttotheMergerortheothertransactionscontemplatedthereby.
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WITH WHOM MAY I TALK IF I HAVE QUESTIONS ABOUT THE OFFER?
• YoucancallD.F.King&Co.,Inc.,theInformationAgent,toll-freeat(877)732-3617.SeethebackcoverofthisOffertoPurchase.
ExceptasotherwisesetforthinthisOffertoPurchase,referencesto“dollars”and“$”shallbetoUnitedStatesdollars.
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To All Holders of Shares ofReis, Inc.
INTRODUCTION
Moody’sAnalyticsMarylandCorp.,aMarylandcorporation(“Purchaser”)andadirectwholly-ownedsubsidiaryofMoody’sCorporation,aDelawarecorporation(“Parent”),isofferingtopurchase(the“Offer”)alloutstandingsharesofcommonstock,parvalue$0.02pershare(the“Shares”),ofReis,Inc.,aMarylandcorporation(“Reis”),atapriceperShareof$23.00,nettotheholderincash,withoutinterest,lessanyapplicablewithholdingtaxes(the“OfferPrice”),uponthetermsandsubjecttotheconditionsdescribedinthisOffertoPurchase(togetherwithanyamendmentsorsupplementshereto,this“OffertoPurchase”)andintherelatedLetterofTransmittal(togetherwithanyamendmentsorsupplementsthereto,the“LetterofTransmittal”).EachShareownedbyanyofReis’swholly-ownedsubsidiariesorbyParentoranyofitssubsidiaries(includingPurchaser)(the“ConvertedShares”)shallnotbetenderedintheOfferbutshallinsteadbeconvertedattheEffectiveTimeintoone(1)fullypaidandnon-assessableshareofcommonstock,parvalue$0.01pershare,oftheSurvivingCorporation.
TheOfferisbeingmadeinconnectionwiththeAgreementandPlanofMerger,datedasofAugust29,2018(togetherwithanyamendmentsorsupplementsthereto,the“MergerAgreement”),amongReis,ParentandPurchaser,pursuanttowhich,afterthecompletionoftheOfferandthesatisfactionorwaiverofcertainconditions,PurchaserwillbemergedwithandintoReis,andReiswillbethesurvivingcorporationandawholly-ownedsubsidiaryofParent(suchcorporation,the“SurvivingCorporation”andsuchmerger,the“Merger”).
IfyourSharesareregisteredinyournameandyoutenderdirectlytoAmericanStockTransfer&TrustCompany,LLC,thedepositaryfortheOffer(the“Depositary”)youwillnotbeobligatedtopaybrokeragefeesorcommissionsor,exceptasotherwiseprovidedinInstruction6oftheLetterofTransmittal,transfertaxesonthepurchaseofSharesbyPurchaserpursuanttotheOffer.IfyouholdyourSharesthroughabroker,dealer,commercialbank,trustcompanyorothernomineeyoushouldcheckwithsuchinstitutionastowhethertheychargeanyservicefeesorcommissions.
Inaddition,ifyoudonotcompleteandsigntheIRSFormW-9thatisprovidedwiththeLetterofTransmittal,oranIRSFormW-8BEN,W-8BEN-EorotherIRSFormW-8,asapplicable,youmaybesubjecttoU.S.federalbackupwithholdingtax(atarateof24%)onthegrossproceedspayabletoyoupursuanttotheOfferortheMerger.BackupwithholdingisnotanadditionaltaxandanyamountswithheldunderthebackupwithholdingrulesmayberefundedorcreditedagainstyourU.S.federalincometaxliabilityprovidedcertaininformationistimelyprovidedtotheInternalRevenueService(“IRS”).AllstockholdersshouldreviewthediscussioninSection3—“ProceduresforTenderingShares”andSection5—“U.S.FederalIncomeTaxConsequencesoftheOfferandtheMerger.”
WewillpayallchargesandexpensesoftheDepositaryandD.F.King&Co.,Inc.,theinformationagentfortheOffer(the“InformationAgent”).HoldersmayberequiredtopayacustomaryfeerelatingtolostSharecertificates.
The Offer is not subject to any financing condition. The Offer is subject to the conditions, among others, that:
1. thereshallhavebeenvalidlytenderedandnotwithdrawnpriortotheexpirationoftheOfferthatnumberofShares(excludinganySharestenderedpursuanttoguaranteeddeliveryproceduresthathavenotyetbeenreceived)whichwouldrepresentatleastamajorityoftheissuedandoutstandingShares(excluding,forpurposesofdeterminingsuchmajority,thetotalnumberofSharesownedbyanyofReis’swholly-ownedsubsidiaries)(the“MinimumTenderCondition”);
2. thewaitingperiod(oranyextensionthereof)applicabletotheconsummationoftheOfferandtheMergerundertheHart-Scott-RodinoAntitrustImprovementsActof1976,asamended(the“HSRAct”)shallhaveexpiredorbeenterminated(the“HSRCondition”);
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3. thereshallnothavebeen(i)enacted,issued,promulgatedorenteredbyanygovernmentalbodyofcompetentjurisdictionandremainingineffectanylaw,commonlaw,statute,ordinance,code,regulation,ruleorotherrequirementor(ii)issuedbyanygovernmentalbodyofcompetentjurisdictionandremainingineffectanyorder,decision,judgment,writ,injunction,decree,awardorotherdetermination,ineachcase,thatenjoinsorotherwiseprohibitstheconsummationoftheOfferortheMerger(the“GovernmentalImpedimentCondition”);
4. thereshallnothaveoccurred,sincethedateoftheMergerAgreement,anyevent,condition,change,occurrenceordevelopmentofastateof
circumstancesorfactsthat,individuallyorintheaggregate,hashad,orwouldreasonablybeexpectedtohaveaMaterialAdverseEffect(asdefinedbelow);and
5. theMergerAgreementshallnothavebeenterminatedinaccordancewithitsterms(the“TerminationCondition”).
Purchaser and Parent have the right to waive certain of the conditions to the Offer in their sole discretion; provided that Purchaser andParent may not waive the Minimum Tender Condition, the HSR Condition, the Governmental Impediment Condition or the TerminationCondition without the consent of Reis. See Section 13—“Conditions of the Offer.”
The Offer will expire at 11:59 p.m., Eastern Time, on October 12, 2018, unless the Offer is extended. See Section 1—“Terms of the Offer”,Section 13—“Conditions of the Offer” and Section 15—“Certain Legal Matters; Regulatory Approvals.”
After careful consideration, the Reis board of directors (the “Reis Board”) has unanimously: (i) approved and declared advisable the MergerAgreement, the Offer, the Merger and the other transactions contemplated by the Merger Agreement (the “Transactions”), (ii) determined that itis in the best interests of Reis and its stockholders that Reis enter into the Merger Agreement and consummate the Transactions on the terms andsubject to the conditions set forth in the Merger Agreement, (iii) resolved that the Merger shall be effected under Section 3-106.1 of the MGCL and(iv) resolved to recommend that the stockholders of Reis accept the Offer and tender their Shares to Purchaser pursuant to the Offer.
ForfactorsconsideredbytheReisBoard,seeReis’sSolicitation/RecommendationStatementonSchedule14D-9(the“Schedule14D-9”)filedwiththeSECinconnectionwiththeOffer,acopyofwhich(withoutcertainexhibits)isbeingfurnishedtostockholdersconcurrentlyherewith.
TheOfferisbeingmadeinconnectionwiththeMergerAgreement,pursuanttowhich,aftertheconsummationoftheOfferandthesatisfactionorwaiverofcertainconditions,theMergerwillbeeffected.TheMergershallbecomeeffectivewhenarticlesofmergerarefiledwiththeStateDepartmentofAssessmentsandTaxationofMaryland(the“Department”)andsucharticlesofmergerareacceptedforrecordbytheDepartment,oratsuchothersubsequentdateortimeasParentandReismayagreeandspecifyinthearticlesofmergerinaccordancewiththeMGCL(the“EffectiveTime”).AttheEffectiveTime,eachShareissuedandoutstandingimmediatelypriortotheEffectiveTime(otherthan(i)SharesheldbyReisoranyofitswholly-ownedsubsidiariesand(ii)SharesheldbyParent,PurchaseroranyothersubsidiaryofParentimmediatelypriortotheEffectiveTime)willbecanceledandwillbeconvertedautomaticallyintotherighttoreceiveconsiderationequaltotheOfferPrice(the“MergerConsideration”)payable,withoutanyinterestthereonandsubjecttoanywithholdingtaxes,totheholderofsuchShare,uponsurrenderofthecertificatethatformerlyevidencedsuchShareor,withrespecttouncertificatedShares,uponthereceiptbytheDepositaryofanAgent’sMessage(asdefinedbelow)relatingtosuchShares.TheMergerAgreementismorefullydescribedinSection11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements,”whichalsocontainsadiscussionofthetreatmentofReisstockoptionsandrestrictedstockunitsintheMerger.Section5—“U.S.FederalIncomeTaxConsequencesoftheOfferandtheMerger”belowdescribestheU.S.federalincometaxconsequencesgenerallyapplicabletotheU.S.Holders(asdefinedbelow)whoseSharesaretenderedandacceptedforpurchasepursuanttotheOfferorwhoseSharesareconvertedintotherighttoreceivecashintheMerger.
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BecausetheMergerwillbeconsummatedinaccordancewithSection3-106.1oftheMGCL,approvaloftheMergerwillnotrequireavoteofReis’sstockholders.Section3-106.1oftheMGCLprovidesthatstockholderapprovalofamergerisnotrequiredifcertainrequirementsaremet,includingthat(i)theacquiringcompanyconsummatesatenderofferforanyandalloftheoutstandingstockofthecompanytobeacquiredthat,absentSection3-106.1oftheMGCL,wouldbeentitledtovoteonthemerger,(ii)followingtheconsummationofsuchtenderoffer,theacquiringcompanyownsatleastsuchpercentageofthestockofthecompanytobeacquiredthat,absentSection3-106.1oftheMGCL,wouldberequiredtoapprovethemergerand(iii)noticethatsatisfiesrequirementsofSection3-106.1(e)(1)oftheMGCLhasbeengiventoallReisstockholdersatleast30dayspriortothemerger.ANoticeoftheMergerpursuanttoSection3-106(e)(1)isbeingmailedonSeptember13,2018toReisstockholdersofrecordasofsuchdate,therebyconstitutingthenoticeofmergerreferredtointhisparagraph.Accordingly,iftheMinimumTenderConditionissatisfiedandweacceptSharesforpaymentpursuanttotheOffer,wewillholdasufficientnumberofSharestoensurethatReiswillnotberequiredtosubmittheadoptionoftheMergerAgreementtoavoteofitsstockholders.AsaresultoftheMerger,Reiswillceasetobeapublicly-tradedcompanyandwillbecomeawholly-ownedsubsidiaryofParent.SeeSection11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements.”
This Offer to Purchase and the related Letter of Transmittal contain important information and both documents should be read carefullyand in their entirety before any decision is made with respect to the Offer.
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THE TENDER OFFER
1. Terms of the Offer .
UponthetermsandsubjecttothepriorsatisfactionorwaiveroftheconditionsoftheOffer(including,iftheOfferisextendedoramended,thetermsandconditionsofanyextensionoramendment),wewillacceptforpayment,purchaseandpayforallSharesvalidlytenderedpriortotheexpirationoftheOffer,andnotproperlywithdrawninaccordancewiththeproceduressetforthinSection4—“WithdrawalRights.”Theofferwillexpireat11:59p.m.,EasternTime,onOctober12,2018(the“ExpirationDate”),unlesswehaveextendedtheOfferinaccordancewiththetermsoftheMergerAgreement,inwhicheventtheterm“ExpirationDate”willmeanthedatetowhichtheinitialexpirationdateoftheOfferissoextended.
The Offer is conditioned upon the satisfaction of the Minimum Tender Condition and the other conditions described in Section 13—“Conditions of the Offer.” We may terminate the Offer without purchasing any Shares if certain events described in Section 11—“Purpose ofthe Offer and Plans for Reis; Summary of the Merger Agreement and Certain Other Agreements—Summary of the Merger Agreement—Termination” occur.
TotheextentpermittedbyapplicablelawandtheMergerAgreement,weexpresslyreservetherighttoincreasetheamountofcashconstitutingtheOfferPrice,towaivecertainconditionstotheOffer,tomakeanyotherchangesinthetermsandconditionsoftheOffernotinconsistentwiththetermsoftheMergerAgreementandtoterminatetheOfferiftheconditionstotheOfferarenotsatisfiedandtheMergerAgreementisterminated.However,pursuanttotheMergerAgreement,wehaveagreedthatwewillnot,withoutthepriorwrittenconsentofReis:
1. reducethenumberofSharessubjecttotheOffer;
2. reducetheOfferPrice(exceptasprovidedintheMergerAgreement);
3. change,modifyorwaivetheMinimumTenderCondition;
4. imposeanyconditiontotheOfferinadditiontotheconditionssetforthinSection13—“ConditionsoftheOffer;”
5. extendorotherwisechangetheexpirationdateoftheOffer(exceptasprovidedintheMergerAgreement);
6. changetheformofconsiderationpayableintheOffer;or
7. otherwiseamend,modifyorsupplementanyoftheothertermsoftheOfferinanymanneradversetoReisortheholdersofShares.
UponthetermsandsubjecttothesatisfactionorwaiveroftheconditionsoftheOfferandtheMergerAgreement,wewill(i)immediatelyaftertheExpirationDateirrevocablyacceptforpaymentallSharesvalidlytendered(andnotvalidlywithdrawn)pursuanttotheOffer(the“AcceptanceTime”)and(ii)assoonasreasonablypracticableandnomorethanonebusinessdayaftertheAcceptanceTimepayforallsuchshares.
If,onorbeforetheExpirationDate,weincreasetheconsiderationbeingpaidforSharesacceptedforpaymentintheOffer,suchincreasedconsiderationwillbepaidtoallstockholderswhoseSharesarepurchasedintheOffer,whetherornotsuchSharesweretenderedbeforetheannouncementoftheincreaseinconsideration.WealsoexpresslyreservetherighttomodifythetermsoftheOffer,subjecttocompliancewiththeSecuritiesExchangeActof1934,asamended(the“ExchangeAct”),theMergerAgreementandtherestrictionsidentifiedinparagraphs(1)through(7)above.
TheMergerAgreementprovidesthat(i)ifatanythen-scheduledExpirationDateanyconditiontotheOfferisnotsatisfiedandhasnotbeenwaivedbyus(totheextentwaivable),Purchaserhasagreedtoextendtheoffer
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foradditionalperiodsofuptotenbusinessdaysperextension(orlongerifagreed)inordertopermitsuchconditiontobesatisfied,and(ii)PurchaserhasagreedtoextendtheOfferforanyperiodrequiredbyanyapplicablelegalrequirement,oranyinterpretationorpositionoftheSECorNASDAQapplicabletotheOffer,ineachcaseuntiltheearlierof(x)terminationoftheMergerAgreementinaccordancewithitstermsor(y)the“OutsideDate”(definedintheMergerAgreementasJanuary29,2019).SeeSection11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements.”
Exceptassetforthabove,therecanbenoassurancethatwewillberequiredundertheMergerAgreementtoextendtheOffer.Duringanyextensionoftheinitialofferingperiodpursuanttotheparagraphsabove,allSharespreviouslytenderedandnotwithdrawnwillremainsubjecttotheOfferandsubjecttowithdrawalrights.SeeSection4—“WithdrawalRights.”
NosubsequentofferingperiodwillbeavailablefollowingtheexpirationoftheOffer(asitmaybeextendedpursuanttothetermsoftheMergerAgreement).
If,subjecttothetermsoftheMergerAgreement,wemakeamaterialchangeinthetermsoftheOfferortheinformationconcerningtheOffer,orifwewaiveamaterialconditionoftheOffer,wewilldisseminateadditionaltenderoffermaterialsandextendtheOfferifandtotheextentrequiredbyRules14d-3(b)(1),14d-4(d),14d-6(c)andl4e-1undertheExchangeActorotherwise.Theminimumperiodduringwhichatenderoffermustremainopenfollowingmaterialchangesinthetermsofthetenderofferortheinformationconcerningthetenderoffer,otherthanachangeintheconsiderationofferedorachangeinthepercentageofsecuritiessought,willdependuponthefactsandcircumstances,includingtherelativematerialityofthetermsorinformationchanges.Withrespecttoachangeintheconsiderationofferedorachangeinthepercentageofsecuritiessought,atenderoffergenerallymustremainopenforaminimumoftenbusinessdaysfollowingsuchchangetoallowforadequatedisclosuretostockholders.
Weexpresslyreservetheright,inoursolediscretion,subjecttothetermsandupontheconditionsoftheMergerAgreementandtheapplicablerulesandregulationsoftheSEC,tonotacceptforpaymentanySharesif,attheexpirationoftheOffer,anyoftheconditionstotheOffersetforthinSection13—“ConditionsoftheOffer”havenotbeensatisfied.Undercertaincircumstances,ParentandPurchasermayterminatetheMergerAgreementandtheOffer.
Anyextension,waiveroramendmentoftheOfferorterminationoftheOfferwillbefollowed,aspromptlyaspracticable,bypublicannouncementthereof,suchannouncementinthecaseofanextensiontobeissuednotlaterthan9:00a.m.,EasternTime,onthenextbusinessdayaftertheExpirationDateinaccordancewiththepublicannouncementrequirementsofRules14d-3(b)(1),14d-4(d),14d-6(c)andl4e-1(d)undertheExchangeAct.Withoutlimitingourobligationundersuchruleorthemannerinwhichwemaychoosetomakeanypublicannouncement,wecurrentlyintendtomakeannouncementsbyissuingapressreleasetoBusinesswireforgeneraldissemination(orsuchothernationalmediaoutletoroutletswedeemprudent)andmakinganyappropriatefilingwiththeSEC.
SubjecttothesatisfactionoftheremainingconditionssetforthintheMergerAgreement,Purchaser,ParentandReisarerequiredtoeffecttheMergerpursuanttoSection3-106.1oftheMGCLaspromptlyaspossible(andinnoeventlaterthan9:00a.m.,EasternTime,onthefirstbusinessdayfollowingthedateonwhichSharesarefirstacceptedforpurchaseundertheOffer).
TheacquisitionofReiswillbeaccountedforbyParentasabusinesscombinationinaccordancewithFASBAccountingStandardsCodificationTopic805,BusinessCombinations.
ReishasagreedtoprovideuswithitslistofstockholdersandsecuritypositionlistingsforthepurposeofdisseminatingtheOffertoholdersofShares.ThisOffertoPurchaseandtherelatedLetterofTransmittalwillbemailedtorecordholdersofShareswhosenamesappearonReis’sstockholderlistandwillbefurnishedtobrokers,dealers,commercialbanks,trustcompaniesandsimilarpersonswhosenames,orthenamesofwhosenominees,appearonthestockholderlistor,ifapplicable,whoarelistedasparticipantsinaclearingagency’ssecuritypositionlisting,forsubsequenttransmittaltobeneficialownersofShares.
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2. Acceptance for Payment and Payment for Shares .
UponthetermsandsubjecttothesatisfactionorwaiveroftheconditionsoftheOfferandtheMergerAgreement,wewill(i)immediatelyaftertheExpirationDateirrevocablyacceptforpaymentallSharesvalidlytendered(andnotvalidlywithdrawn)pursuanttotheOffer(the“AcceptanceTime”)and(ii)assoonasreasonablypracticableandnomorethanonebusinessdayaftertheAcceptanceTimepayforallsuchshares.
Inallcases,paymentforSharestenderedandacceptedforpaymentpursuanttotheOfferwillbemadeonlyaftertimelyreceiptbytheDepositaryof(i)certificatesrepresentingsuchSharesorconfirmationofthebook-entrytransferofsuchSharesintotheDepositary’saccountatTheDepositoryTrustCompany(“DTC”)pursuanttotheproceduressetforthinSection3—“ProceduresforTenderingShares,”(ii)aLetterofTransmittal,properlycompletedanddulyexecuted,withanyrequiredsignatureguarantees(or,inthecaseofabook-entrytransfer,anAgent’sMessage(asdefinedbelow)inlieuoftheLetterofTransmittal),and(iii)anyotherdocumentsrequiredbytheLetterofTransmittaloranyothercustomarydocumentsrequiredbyDepositary.SeeSection3—“ProceduresforTenderingShares.”
ForpurposesoftheOffer,ifandwhenPurchasergivesoralorwrittennoticetotheDepositaryofitsacceptanceforpaymentofsuchSharespursuanttotheOffer,thenPurchaserhasacceptedforpaymentandtherebypurchasedSharesvalidlytenderedandnotvalidlywithdrawnpursuanttotheOffer.UponthetermsandsubjecttotheconditionsoftheOffer,paymentforSharesacceptedforpaymentpursuanttotheOfferwillbemadebydepositofthepurchasepricethereforwiththeDepositary,whichwillactasagentforthetenderingstockholdersforpurposesofreceivingpaymentsfromusandtransmittingsuchpaymentstothetenderingstockholders.Under no circumstances will interest be paid on the Offer Price for Shares, regardless of any extension of theOffer or any delay in payment for Shares.
IfanytenderedSharesarenotacceptedforpaymentpursuanttothetermsandconditionsoftheOfferforanyreason,orifcertificatesaresubmittedformoreSharesthanaretendered,certificatesforsuchunpurchasedShareswillbereturned(ornewcertificatesfortheSharesnottenderedwillbesent),withoutexpensetothetenderingstockholder(or,inthecaseofSharestenderedbybook-entrytransferintotheDepositary’saccountatDTCpursuanttotheproceduressetforthinSection3—“ProceduresforTenderingShares,”suchShareswillbecreditedtoanaccountmaintainedwithDTC)promptlyfollowingexpirationorterminationoftheOffer.
3. Procedures for Tendering Shares .
Valid Tender of Shares .Exceptassetforthbelow,tovalidlytenderSharespursuanttotheOffer,(i)aproperlycompletedanddulyexecutedLetterofTransmittalinaccordancewiththeinstructionsoftheLetterofTransmittal,withanyrequiredsignatureguarantees,oranAgent’sMessage(asdefinedbelow)inconnectionwithabook-entrydeliveryofShares,andanyotherdocumentsrequiredbytheLetterofTransmittalandanyothercustomarydocumentsrequiredbytheDepositary,mustbereceivedbytheDepositaryatoneofitsaddressessetforthonthebackcoverofthisOffertoPurchasepriortotheexpirationoftheOfferandeither(a)certificatesrepresentingSharestenderedmustbedeliveredtotheDepositaryor(b)suchSharesmustbeproperlydeliveredpursuanttotheproceduresforbook-entrytransferdescribedbelowandaconfirmationofsuchdeliveryreceivedbytheDepositary(whichconfirmationmustincludeanAgent’sMessageifthetenderingstockholderhasnotdeliveredaLetterofTransmittal),ineachcase,priortotheExpirationDateor(ii)thetenderingstockholdermustcomplywiththeguaranteeddeliveryproceduressetforthbelow.Theterm“Agent’sMessage”meansamessage,transmittedbyDTCto,andreceivedby,theDepositaryandformingapartofaBook-EntryConfirmation(asdefinedbelow),whichstatesthatDTChasreceivedanexpressacknowledgmentfromtheparticipantinDTCtenderingtheShareswhicharethesubjectofsuchBook-EntryConfirmationthatsuchparticipanthasreceivedandagreestobeboundbythetermsoftheLetterofTransmittalandthatPurchasermayenforcesuchagreementagainsttheparticipant.
Book-Entry Transfer .TheDepositarywilltakestepstoestablishandmaintainanaccountwithrespecttotheSharesatDTCforpurposesoftheOffer.AnyfinancialinstitutionthatisaparticipantinDTC’ssystemsmaymakeabook-entrytransferofSharesbycausingDTCtotransfersuchSharesintotheDepositary’saccountin
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accordancewithDTC’sproceduresforsuchtransfer.However,althoughdeliveryofSharesmaybeeffectedthroughbook-entrytransfer,eithertheLetterofTransmittal,properlycompletedanddulyexecuted,togetherwithanyrequiredsignatureguarantees,oranAgent’sMessageinlieuoftheLetterofTransmittal,andanyotherrequireddocuments,must,inanycase,betransmittedtoandreceivedbytheDepositaryatoneofitsaddressessetforthonthebackcoverofthisOffertoPurchasepriortotheExpirationDateorthetenderingstockholdermustcomplywiththeguaranteeddeliveryproceduresdescribedbelow.Theconfirmationofabook-entrytransferofSharesintotheDepositary’saccountatDTCasdescribedaboveisreferredtohereinasa“Book-EntryConfirmation.”
Delivery of documents to DTC in accordance with DTC’s procedures does not constitute delivery to the Depositary.
Signature Guarantees and Stock Powers .Exceptasotherwiseprovidedbelow,allsignaturesonaLetterofTransmittalmustbeguaranteedbyafinancialinstitution(includingmostcommercialbanks,savingsandloanassociationsandbrokeragehouses)thatisamemberingoodstandingofarecognizedMedallionProgramapprovedbytheSecuritiesTransferAssociation,Inc.,includingtheSecurityTransferAgentsMedallionProgram,theNewYorkStockExchangeMedallionSignatureProgramandtheStockExchangesMedallionProgram(each,an“EligibleInstitution”).SignaturesonaLetterofTransmittalneednotbeguaranteed(i)iftheLetterofTransmittalissignedbytheregisteredowner(s)(whichterm,forpurposesofthissection,includesanyparticipantinanyofDTC’ssystemswhosenameappearsonasecuritypositionlistingastheowneroftheShares)ofSharestenderedtherewithandsuchregisteredownerhasnotcompletedtheboxentitled“SpecialPaymentInstructions”ortheboxentitled“SpecialDeliveryInstructions”ontheLetterofTransmittalor(ii)ifsuchSharesaretenderedfortheaccountofanEligibleInstitution.SeeInstructions1and5oftheLetterofTransmittal.IfthecertificatesforSharesareregisteredinthenameofapersonotherthanthesigneroftheLetterofTransmittal,orifpaymentistobemadeorcertificatesforSharesnottenderedornotacceptedforpaymentaretobereturnedtoapersonotherthantheregisteredownerofthecertificatessurrendered,thenthetenderedcertificatesmustberegisteredoraccompaniedbyappropriatestockpowers,ineithercase,signedexactlyasthenameornamesoftheregisteredowner(s)orholder(s)appearonthecertificates,withthesignaturesonthecertificatesorstockpowersguaranteedasdescribedabove.SeeInstructions1and5oftheLetterofTransmittal.
IfcertificatesrepresentingSharesareforwardedseparatelytotheDepositary,aproperlycompletedanddulyexecutedLetterofTransmittalmustaccompanyeachdeliveryofcertificates.
Guaranteed Delivery .AstockholderwhodesirestotenderSharespursuanttotheOfferandwhosecertificatesforSharesarenotimmediatelyavailableandcannotbedeliveredtotheDepositarypriortotheexpirationoftheOffer,orwhocannotcompletetheprocedureforbook-entrytransferpriortotheexpirationoftheOffer,orwhocannotdeliverallrequireddocumentstotheDepositarypriortotheexpirationoftheOffer,maytendersuchSharesbysatisfyingalloftherequirementssetforthbelow:
• suchtenderismadebyorthroughanEligibleInstitution;
• aproperlycompletedanddulyexecutedNoticeofGuaranteedDelivery,substantiallyintheformprovidedbyPurchaser,isreceivedbytheDepositary(asprovidedbelow)priortotheExpirationDate;and
• thecertificatesforalltenderedShares,inproperformfortransfer(oraBook-EntryConfirmationwithrespecttoallsuchShares),togetherwithaproperlycompletedanddulyexecutedLetterofTransmittal,withanyrequiredsignatureguarantees(or,inthecaseofabook-entrytransfer,anAgent’sMessageinlieuoftheLetterofTransmittal),andanyotherrequireddocuments,arereceivedbytheDepositarywithintwotradingdaysafterthedateofexecutionofsuchNoticeofGuaranteedDelivery.A“tradingday”isanydayonwhichNASDAQisopenforbusiness.
TheNoticeofGuaranteedDeliverymaybedeliveredbyovernightcouriertotheDepositaryormailedtotheDepositaryandmustincludeaguaranteebyanEligibleInstitutionintheformsetforthinsuchNoticeofGuaranteedDelivery.SharestenderedbyaNoticeofGuaranteedDeliverywillnotbedeemedvalidlytendered
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forpurposesofsatisfyingtheMinimumTenderConditionunlessanduntilSharesunderlyingsuchNoticeofGuaranteedDeliveryaredeliveredtotheDepositarypriortotheexpirationoftheOffer.
THE METHOD OF DELIVERY OF SHARES, THE LETTER OF TRANSMITTAL AND ALL OTHER REQUIRED DOCUMENTS,INCLUDING DELIVERY THROUGH DTC, IS AT THE ELECTION AND RISK OF THE TENDERING STOCKHOLDER. DELIVERY OFALL SUCH DOCUMENTS WILL BE DEEMED MADE ONLY WHEN ACTUALLY RECEIVED BY THE DEPOSITARY (INCLUDING, INTHE CASE OF A BOOK-ENTRY TRANSFER, BY BOOK-ENTRY CONFIRMATION). IF SUCH DELIVERY IS BY MAIL, IT ISRECOMMENDED THAT ALL SUCH DOCUMENTS BE SENT BY PROPERLY INSURED REGISTERED MAIL WITH RETURN RECEIPTREQUESTED. IN ALL CASES, SUFFICIENT TIME SHOULD BE ALLOWED TO ENSURE TIMELY DELIVERY.
Other Requirements .NotwithstandinganyprovisionoftheMergerAgreement,PurchaserwillpayforSharestendered(andnotvalidlywithdrawn)pursuanttotheOfferonlyaftertimelyreceiptbytheDepositaryof(i)certificatesfor(oratimelyBook-EntryConfirmationwithrespectto)suchShares,(ii)aLetterofTransmittal,properlycompletedanddulyexecuted,withanyrequiredsignatureguarantees(or,inthecaseofabook-entrytransfer,anAgent’sMessageinlieuoftheLetterofTransmittal),and(iii)anyotherdocumentsrequiredbytheLetterofTransmittaloranyothercustomarydocumentsrequiredbytheDepositary.Accordingly,tenderingstockholdersmaybepaidatdifferenttimesdependinguponwhencertificatesforSharesorBook-EntryConfirmationswithrespecttoSharesareactuallyreceivedbytheDepositary.Under no circumstances will Purchaser pay interest on the purchase priceof Shares, regardless of any extension of the Offer or any delay in making such payment .IfyourSharesareheldinstreetname(i.e.,throughabroker,dealer,commercialbank,trustcompanyorothernominee),yourSharescanbetenderedbyyournomineebybook-entrytransferthroughtheDepositary.IfyouareunabletodeliveranyrequireddocumentorinstrumenttotheDepositarybytheexpirationoftheOffer,youmaygainsomeextratimebyhavingabroker,abankorotherfiduciarythatisaneligibleguarantorinstitutionguaranteethatthemissingitemswillbereceivedbytheDepositarybyusingtheenclosedNoticeofGuaranteedDelivery.Forthetendertobevalid,however,theDepositarymustreceivethemissingitemstogetherwiththeShareswithintwoNASDAQtradingdaysafterthedateofexecutionoftheNoticeofGuaranteedDelivery.
Binding Agreement .OuracceptanceforpaymentofSharestenderedpursuanttooneoftheproceduresdescribedabovewillconstituteabindingagreementbetweenthetenderingstockholderandusuponthetermsandsubjecttotheconditionsoftheOffer.
Appointment as Proxy .ByexecutinganddeliveringaLetterofTransmittalassetforthabove(or,inthecaseofabook-entrytransfer,bydeliveryofanAgent’sMessageinlieuofaLetterofTransmittal),thetenderingstockholderirrevocablyappointsPurchaser’sdesigneesassuchstockholder’sproxies,eachwithfullpowerofsubstitution,tothefullextentofsuchstockholder’srightswithrespecttotheSharestenderedbysuchstockholderandacceptedforpaymentbyusandwithrespecttoanyandallotherSharesorothersecuritiesissuedorissuableinrespectofsuchSharesonorafterthedateoftheMergerAgreement.AllsuchproxiesandpowersofattorneywillbeconsideredcoupledwithaninterestinthetenderedShares.Suchappointmentiseffectivewhen,andonlytotheextentthat,weacceptforpaymentSharestenderedbysuchstockholderasprovidedherein.Upontheeffectivenessofsuchappointment,allpriorpowersofattorney,proxiesandconsentsgivenbysuchstockholderwillberevoked,andnosubsequentpowersofattorney,proxiesandconsentsmaybegiven(and,ifgiven,willnotbedeemedeffective).Ourdesigneeswill,withrespecttotheSharesorothersecuritiesandrightsforwhichtheappointmentiseffective,beempoweredtoexerciseallvotingandotherrightsofsuchstockholderasthey,intheirsolediscretion,maydeemproperatanyannual,special,adjournedorpostponedmeetingofthestockholdersofReis,bywrittenconsentinlieuofanysuchmeetingorotherwise.Wereservetherighttorequirethat,inorderforSharestobedeemedvalidlytendered,immediatelyuponourpaymentforsuchShareswemustbeabletoexercisefullvoting,consentandotherrightstotheextentpermittedunderapplicablelawwithrespecttosuchSharesandothersecurities,includingvotingatanymeetingofstockholdersorexecutingawrittenconsentconcerninganymatter.
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Determination of Validity .Allquestionsastothevalidity,form,eligibility(includingtimeofreceipt)andacceptanceofanytenderofShareswillbedeterminedbyusinoursoleandabsolutediscretion,whichdeterminationwillbefinalandbinding,subjecttotherightsofthetenderingholdersofSharestochallengeourdeterminationinacourtofcompetentjurisdiction.Purchaserreservestheabsoluterighttorejectanyandalltendersdeterminedbyusnottobeinproperformortheacceptanceforpaymentoforpaymentforwhichmay,inouropinion,beunlawful.PurchaseralsoreservestheabsoluterighttowaiveanydefectorirregularityinthetenderofanySharesofanyparticularstockholderwhetherornotsimilardefectsorirregularitiesarewaivedinthecaseofanyotherstockholder.NotenderofShareswillbedeemedtohavebeenvalidlymadeuntilalldefectsandirregularitiesrelatingtheretohavebeencuredorwaived.NoneofParent,Purchaseroranyoftheirrespectiveaffiliatesorassigns,theDepositary,theInformationAgent,oranyotherpersonwillbeunderanydutytogivenotificationofanydefectsorirregularitiesintendersorincuranyliabilityforfailuretogiveanysuchnotification.Purchaser’sinterpretationofthetermsandconditionsoftheOffer(includingtheLetterofTransmittalandtheInstructionstheretoandanyotherdocumentsrelatedtotheOffer)willbefinalandbinding,subjecttotherightsofthetenderingholdersofSharestochallengeourdeterminationinacourtofcompetentjurisdiction.
Backup Withholding .UndercurrentU.S.federalincometaxlaw,astockholderwhotendersSharesthatareacceptedforexchangeorwhoseSharesareconvertedintotherighttoreceivecashintheMergermaybesubjecttobackupwithholding.Toavoidsuchbackupwithholding,astockholderthatisa“U.S.person”(asdefinedintheinstructionstotheIRSFormW-9providedwiththeLetterofTransmittal)whosurrendersSharesforcashpursuanttotheOfferorwhoseSharesareconvertedintotherighttoreceivecashintheMergermust,unlessanexemptionapplies,providetheDepositarywithsuchstockholder’scorrecttaxpayeridentificationnumber(“TIN”)onanIRSFormW-9,certifyunderpenaltiesofperjurythatsuchTINiscorrectandprovidecertainothercertifications.Ifastockholderdoesnotprovidesuchstockholder’scorrectTINorfailstoprovidetherequiredcertifications,theIRSmayimposepenaltiesonsuchstockholder,andthegrossproceedspayabletosuchstockholderpursuanttotheOfferortheMergermaybesubjecttobackupwithholdingatarateof24%.AllstockholdersthatareU.S.personssurrenderingSharespursuanttotheOfferorwhoseSharesareconvertedintotherighttoreceivecashintheMergershouldcompleteandsigntheIRSFormW-9includedaspartoftheLetterofTransmittaltoprovidetheinformationandcertificationsrequiredtoavoidbackupwithholding(unlessanapplicableexemptionexistsandisestablishedinamannersatisfactorytotheDepositary).
Certainstockholders(including,amongothers,allcorporationsandcertainforeignindividualsandentities)arenotsubjecttobackupwithholding.ForeignstockholdersshouldcompleteandsignanIRSFormW-8BEN,IRSFormW-8BEN-E,orotherappropriateIRSFormW-8(insteadofanIRSFormW-9)toavoidbackupwithholding.AnappropriateIRSFormW-8maybeobtainedfromtheDepositaryorattheIRSwebsite(www.irs.gov).SeeInstruction8totheLetterofTransmittal.
InformationreportingtotheIRSmayalsoapplytothereceiptofcashpursuanttotheOfferortheMerger.
4. Withdrawal Rights .
ExceptasotherwiseprovidedinthisSection4,tendersofSharespursuanttotheOfferareirrevocable.However,astockholderhaswithdrawalrightsthatareexercisableuntiltheexpirationoftheOffer(i.e.,atanytimepriorto11:59p.m.,EasternTime,onOctober12,2018),orintheeventtheOfferisextended,onsuchdateandtimetowhichtheOfferisextended.Inaddition,SharesmaybewithdrawnatanytimeafterNovember11,2018,whichisthe60thdayafterthedateofthecommencementoftheOffer,unlesspriortothatdatePurchaserhasacceptedforpaymenttheSharesvalidlytenderedintheOffer.
ForawithdrawalofSharestobeeffective,awrittenorfacsimiletransmissionnoticeofwithdrawalmustbetimelyreceivedbytheDepositaryatoneofitsaddressessetforthonthebackcoverofthisOffertoPurchase.AnynoticeofwithdrawalmustspecifythenameofthepersonhavingtenderedtheSharestobewithdrawn,thenumberofSharestobewithdrawnandthenameoftherecordholderoftheSharestobewithdrawn,ifdifferent
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fromthatofthepersonwhotenderedsuchShares.Thesignature(s)onthenoticeofwithdrawalmustbeguaranteedbyanEligibleInstitution,unlesssuchShareshavebeentenderedfortheaccountofanyEligibleInstitution.IfShareshavebeentenderedpursuanttotheproceduresforbook-entrytransferassetforthinSection3—“ProceduresforTenderingShares,”anynoticeofwithdrawalmustspecifythenameandnumberoftheaccountatDTCtobecreditedwiththewithdrawnShares.IfcertificatesrepresentingtheShareshavebeendeliveredorotherwiseidentifiedtotheDepositary,thenameoftheregisteredownerandtheserialnumbersshownonsuchcertificatesmustalsobefurnishedtotheDepositarypriortothephysicalreleaseofsuchcertificates.
Allquestionsastotheformandvalidity(includingtimeofreceipt)ofanynoticeofwithdrawalwillbedeterminedbyus,inoursolediscretion,whichdeterminationwillbefinalandbinding,subjecttotherightsofthetenderingholdersofSharestochallengeourdeterminationinacourtofcompetentjurisdiction.NowithdrawalofShareswillbedeemedtohavebeenproperlymadeuntilalldefectsandirregularitieshavebeencuredorwaived.NoneofParent,Purchaseroranyoftheirrespectiveaffiliatesorassigns,theDepositary,theInformationAgent,oranyotherpersonwillbeunderanydutytogivenotificationofanydefectsorirregularitiesinanynoticeofwithdrawalorincuranyliabilityforfailuretogivesuchnotification.WithdrawalsoftendersofSharesmaynotberescinded,andanySharesproperlywithdrawnwillbedeemednottohavebeenvalidlytenderedforpurposesoftheOffer.However,withdrawnSharesmaybere-tenderedbyfollowingoneoftheproceduresfortenderingSharesdescribedinSection3—“ProceduresforTenderingShares”atanytimepriortotheexpirationoftheOffer.
IfPurchaserextendstheOffer,delaysitsacceptanceforpaymentofShares,orisunabletoacceptforpaymentSharespursuanttotheOffer,foranyreason,then,withoutprejudicetoPurchaser’srightsundertheOffer,theDepositarymaynevertheless,onPurchaser’sbehalf,retaintenderedShares,andsuchSharesmaynotbewithdrawnexcepttotheextentthattenderingstockholdersexercisewithdrawalrightsasdescribedinthisSection4.
5. U.S. Federal Income Tax Consequences of the Offer and the Merger .
ThefollowingsummarydescribestheU.S.federalincometaxconsequencesgenerallyapplicabletoU.S.Holders(asdefinedbelow)whoseSharesaretenderedandacceptedforpurchasepursuanttotheOfferorwhoseSharesareconvertedintotherighttoreceivecashintheMerger.ThissummaryisbasedontheInternalRevenueCodeof1986,asamended(the“Code”),TreasuryRegulationspromulgatedundertheCode,publishedrulings,administrativepronouncements,andjudicialdecisions,allasineffectonthedatehereofandallofwhicharesubjecttochangeordifferinginterpretations,possiblywithretroactiveeffect.ThissummaryaddressesonlystockholderswhoholdtheirSharesascapitalassetswithinthemeaningofSection1221oftheCode(generallypropertyheldforinvestment)anddoesnotaddressallofthetaxconsequencesthatmayberelevanttostockholdersinlightoftheirparticularcircumstancesortocertaintypesofstockholderssubjecttospecialtreatmentundertheCode,includingpass-throughentities(includingpartnershipsandScorporationsforU.S.federalincometaxpurposes)andinvestorsinsuchentities,certainfinancialinstitutions,brokers,dealersortradersinsecurities,insurancecompanies,expatriates,mutualfunds,realestateinvestmenttrusts,cooperatives,tax-exemptorganizations,personswhoaresubjecttothealternativeminimumtax,personswhoholdtheirSharesaspartofastraddle,hedge,conversion,constructivesale,syntheticsecurity,integratedinvestment,orotherrisk-reductiontransactionforU.S.federalincometaxpurposes,stockholdersthathaveafunctionalcurrencyotherthantheU.S.dollar,andpersonswhoacquiredtheirSharesupontheexerciseofstockoptionsorotherwiseascompensation.ThissummarydoesnotaddressanyU.S.federalestate,gift,orothernon-incometaxconsequences,theeffectsoftheMedicarecontributiontaxonnetinvestmentincome,oranystate,local,orforeigntaxconsequences.
Forpurposesofthisdiscussion,a“U.S.Holder”isabeneficialownerofSharesthat,forU.S.federalincometaxpurposes,is(i)acitizenorindividualresidentoftheUnitedStates,(ii)acorporation,orotherentitytreatedasacorporationforU.S.federalincometaxpurposes,thatiscreatedororganizedinorunderthelawsoftheUnited
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StatesoranyStateortheDistrictofColumbia,(iii)anestate,theincomeofwhichissubjecttoU.S.federalincometaxationregardlessofitssource,or(iv)atrustifit(A)issubjecttotheprimarysupervisionofacourtwithintheUnitedStatesandoneormoreU.S.personshavetheauthoritytocontrolallsubstantialdecisionsofthetrustor(B)hasavalidelectionineffectunderapplicableTreasuryRegulationstobetreatedasaU.S.person.
Ifapartnership(includinganyentitytreatedasapartnershipforU.S.federalincometaxpurposes)exchangesSharesforcashpursuanttotheOfferortheMerger,thetaxtreatmentofapartnerinthepartnershipwillgenerallydependuponthestatusofthepartnerandtheactivitiesofthepartnership.ApartnerinapartnershipholdingSharesshouldconsultitstaxadvisorregardingthetaxconsequencesofexchangingSharesforcashpursuanttotheOfferortheMerger.
Stockholders are urged to consult their tax advisors to determine the tax consequences to them of exchanging Shares for cash pursuant to theOffer or the Merger in light of their particular circumstances.
TheexchangeofSharesforcashpursuanttotheOfferortheMergerwillbeataxabletransactiontoU.S.HoldersforU.S.federalincometaxpurposes.Ingeneral,aU.S.HolderwhoexchangesSharesforcashpursuanttotheOfferortheMergerwillrecognizecapitalgainorlossinanamountequaltothedifference,ifany,betweentheamountofcashreceivedandtheU.S.Holder’sadjustedtaxbasisintheSharesexchanged.Suchgainorlosswillgenerallybelong-termcapitalgainorlossif,asofthedateoftheexchange,aU.S.Holder’sholdingperiodintheSharesexchangedismorethanoneyear.
Long-termcapitalgainrecognizedbyindividualsandcertainothernon-corporateholders,includingindividuals,iscurrentlysubjecttotaxatpreferentialrates.ThedeductibilityofcapitallossesissubjecttolimitationsundertheCode.
IfaU.S.HolderacquireddifferentblocksofSharesatdifferenttimesoratdifferentprices,suchU.S.HoldergenerallymustdetermineitsadjustedtaxbasisandholdingperiodseparatelywithrespecttoeachsuchblockofShares.
6. Price Range of Shares; Dividends .
AccordingtoReis’sAnnualReportonForm10-KforthefiscalyearendedDecember31,2017,theSharesaretradedontheNASDAQGlobalSelectMarketunderthesymbol“REIS.”ReishasadvisedParentthat,asofAugust24,2018,11,569,699Shareswereoutstanding(excludingSharesheldbywhollyownedSubsidiariesofReis).Thefollowingtablesetsforth,forthefiscalquartersindicated,thehighandlowsalespricesperShareonNASDAQwithrespecttothefiscalyearsendedDecember31,2016andDecember31,2017and,withrespecttothefiscalyearendedDecember31,2018,throughSeptember12,2018,usingSharedatareportedbyNASDAQ.
Fiscal Year Ended December 31, 2016: High Low FirstQuarter $24.78 $20.06SecondQuarter 26.59 21.78ThirdQuarter 26.57 18.16FourthQuarter 23.63 18.43
Fiscal Year Ended December 31, 2017: High Low FirstQuarter $23.00 $16.90SecondQuarter 21.60 17.50ThirdQuarter 21.85 15.95FourthQuarter 22.22 16.83
Current Fiscal Year: High Low FirstQuarter $22.35 $16.74SecondQuarter 22.80 19.05ThirdQuarter(throughSeptember12,2018) 24.00 17.30
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OnAugust29,2018,thetradingdaybeforethepublicannouncementoftheexecutionoftheMergerAgreement,thereportedclosingsalepriceoftheSharesonNASDAQwas$17.40.BetweenAugust30,2018,thefirstfulltradingdayafterthepublicannouncementoftheMergerAgreement,andSeptember12,2018,thereportedclosingsalepriceperShareonNASDAQrangedbetween$22.90and$23.10.OnSeptember12,2018,thelastfulltradingdaypriortothecommencementoftheOffer,thereportedclosingsalepriceperShareonNASDAQduringnormaltradinghourswas$22.90perShare.
Reiscommencedaquarterlydividendprograminthesecondquarterof2014.InReis’sAnnualReportonForm10-KforthefiscalyearendedDecember31,2017,Reisindicatedthatitanticipatedtocontinuepayingaquarterlydividendthereafter.UnderthetermsoftheMergerAgreement,Reisisnotpermittedto,andwillcauseitssubsidiariesnotto,authorize,make,declare,setasideorpayanydividendsordistributionsinrespectofanysharesofitscapitalstockotherthandividendsanddistributionstoReisbyitswhollyownedsubsidiaries,andotherthanregularquarterlycashdividendsinrespectofthesharesofcommonstocknottoexceed$0.19pershareandwithrecorddatesandpaymentdatesforsuchdividendsconsistentwithpastpractice,subjecttocompliancewithapplicablelaw.SeeSection14—“DividendsandDistributions.”Stockholders are urged to obtain a current market quotation forthe Shares.
7. Possible Effects of the Offer on the Market for the Shares; NASDAQ Listing; Exchange Act Registration and Margin Regulations .
Possible Effects of the Offer on the Market for the Shares .ThepurchaseofSharespursuanttotheOfferwillreducethenumberofSharesthatmightotherwisetradepubliclyandcouldadverselyaffecttheliquidityandmarketvalueoftheremainingSharesheldbythepublic.ThepurchaseofSharespursuanttotheOffercanalsobeexpectedtoreducethenumberofholdersofShares.WecannotpredictwhetherthereductioninthenumberofSharesthatmightotherwisetradepubliclywouldhaveanadverseorbeneficialeffectonthemarketpriceormarketabilityoftheSharesorwhetheritwouldcausefuturemarketpricestobegreaterorlessthantheOfferPrice.
NASDAQ Listing .DependinguponthenumberofSharespurchasedpursuanttotheOffer,theSharesmaynolongermeettherequirementsforcontinuedlistingontheNASDAQGlobalSelectMarket.AccordingtothepublishedguidelinesofTheNASDAQStockMarket,LLC,NASDAQwouldconsiderdisqualifyingtheSharesforlistingonTheNASDAQGlobalSelectMarketif,amongotherpossiblegrounds,(a)thetotalnumberofholdersofrecordandholdersofbeneficialinterest,takentogether,intheSharesfallsbelow300,(b)thebidpriceforaShareovera30consecutivebusinessdayperiodislessthan$1.00,(c)(i)Reishasstockholders’equityoflessthan$10million,thenumberofpubliclyheldSharesfallsbelow750,000,themarketvalueofpubliclyheldSharesovera30consecutivebusinessdayperiodislessthan$5millionortherearefewerthantwoactiveandregisteredmarketmakersintheSharesoveratenconsecutivebusinessdayperiod,(ii)thenumberofpubliclyheldSharesfallsbelow1,100,000,themarketvalueofpubliclyheldSharesovera30consecutivebusinessdayperiodislessthan$15million,therearefewerthanfouractiveandregisteredmarketmakersintheSharesoveratenconsecutivebusinessdayperiod,orthemarketvalueofReis’slistedsecuritiesislessthan$50millionoveratenconsecutivebusinessdayperiodor(iii)thenumberofpubliclyheldsharesfallsbelow1,100,000,themarketvalueofpubliclyheldSharesovera30consecutivebusinessdayperiodislessthan$15million,therearefewerthanfouractiveandregisteredmarketmakersintheSharesoveratenconsecutivebusinessdayperiod,orReis’stotalassetsandtotalrevenueislessthan$50millioneachforthemostrecentlycompletedfiscalyear(orintwoofthelastthreefiscalyears).SharesheldbyofficersordirectorsofReis,orbyanybeneficialownerofmorethan10percentoftheShares,willnotbeconsideredasbeingpubliclyheldforthispurpose.AccordingtoReis,therewere,asofAugust24,2018,11,569,699Sharesissuedandoutstanding(excludingSharesheldbywhollyownedSubsidiariesofReis).If,asaresultofthepurchaseofSharespursuanttotheOfferorotherwise,theSharesaredelistedfromNASDAQ,themarketforShareswillbeadverselyaffected.
IfNASDAQweretodelisttheShares,itispossiblethattheShareswouldcontinuetotradeonothersecuritiesexchangesorintheover-the-countermarketandthatpriceorotherquotationsfortheShareswouldbe
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reportedbyothersources.TheextentofthepublicmarketforsuchSharesandtheavailabilityofsuchquotationswoulddepend,however,uponsuchfactorsasthenumberofstockholdersandtheaggregatemarketvalueofsuchsecuritiesremainingatsuchtime,theinterestinmaintainingamarketintheSharesonthepartofsecuritiesfirms,thepossibleterminationofregistrationundertheExchangeActasdescribedbelow,andotherfactors.WecannotpredictwhetherthereductioninthenumberofSharesthatmightotherwisetradepubliclywouldhaveanadverseorbeneficialeffectonthemarketpriceforormarketabilityoftheSharesorwhetheritwouldcausefuturemarketpricestobegreaterorlessthantheOfferPrice.
TradingintheShareswillceaseuponconsummationoftheMergeriftradinghasnotceasedearlierasdiscussedabove.
Exchange Act Registration .TheSharescurrentlyareregisteredundertheExchangeAct.ThepurchaseoftheSharespursuanttotheOffermayresultintheSharesbecomingeligibleforderegistrationundertheExchangeAct.RegistrationoftheSharesmaybeterminatedbyReisuponapplicationtotheSECiftheoutstandingSharesarenotlistedona“nationalsecuritiesexchange”andiftherearefewerthan300holdersofrecordofShares.
WeintendtoseektocauseReistoapplyforterminationofregistrationoftheSharesassoonaspossibleafterconsummationoftheOfferiftherequirementsforterminationofregistrationaremet.TerminationofregistrationoftheSharesundertheExchangeActwouldreducetheinformationrequiredtobefurnishedbyReistoitsstockholdersandtotheSECandwouldmakecertainprovisionsoftheExchangeAct(suchastheshort-swingprofitrecoveryprovisionsofSection16(b),therequirementoffurnishingaproxystatementorinformationstatementinconnectionwithstockholders’meetingsoractionsinlieuofastockholders’meetingpursuanttoSections14(a)and14(c)undertheExchangeActandtherelatedrequirementoffurnishinganannualreporttostockholders)nolongerapplicablewithrespecttotheShares.Inaddition,iftheSharesarenolongerregisteredundertheExchangeAct,therequirementsofRule13e-3undertheExchangeActwithrespectto“goingprivate”transactionswouldnolongerbeapplicabletoReis.Furthermore,theabilityof“affiliates”ofReisandpersonsholding“restrictedsecurities”ofReistodisposeofsuchsecuritiespursuanttoRule144undertheSecuritiesActof1933,asamended,maybeimpairedoreliminated.IfregistrationoftheSharesundertheExchangeActwereterminated,theShareswouldnolongerbeeligibleforcontinuedinclusionontheBoardofGovernors’oftheFederalReserveSystem(the“FederalReserveBoard’s”)listof“marginsecurities”oreligibleforstockexchangelisting.
IfregistrationoftheSharesisnotterminatedpriortotheMerger,thentheregistrationoftheSharesundertheExchangeActwillbeterminatedfollowingcompletionoftheMerger.
Margin Regulations .TheSharesarecurrently“marginsecurities”undertheregulationsoftheFederalReserveBoard,whichhastheeffect,amongotherthings,ofallowingbrokerstoextendcreditusingsuchSharesascollateral.Dependinguponfactorssimilartothosedescribedaboveregardinglistingandmarketquotations,followingtheOffer,theSharesmaynolongerconstitute“marginsecurities”forthepurposesofthemarginregulationsoftheFederalReserveBoard,inwhicheventtheShareswouldbeineligibleascollateralformarginloansmadebybrokers.
8. Certain Information Concerning Reis .
ThefollowingdescriptionofReisanditsbusinesswastakenfromReis’sAnnualReportonForm10-KforthefiscalyearendedDecember31,2017,andisqualifiedinitsentiretybyreferencetosuchreport.
Reisprovidescommercialrealestatemarketinformationandanalyticaltoolstorealestateprofessionals.ReismaintainsaproprietarydatabaseofinformationonallcommercialpropertiesinmetropolitanmarketsandneighborhoodsthroughouttheU.S.Thisinformationisusedbyinvestors,lendersandotherprofessionalstomakeinformedbuying,sellingandfinancingdecisions.Inaddition,Reisdataisusedbydebtandequityinvestorstoassess,quantifyandmanagetherisksofdefaultandlossassociatedwithindividualmortgages,
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properties,portfoliosandrealestatebackedsecurities.Reiscurrentlyprovidesitsinformationservicestomanyofthenation’sleadinglendinginstitutions,equityinvestors,brokersandappraisers.
ReisisaMarylandcorporationfoundedin1980.Reis’scorporateheadquartersarelocatedat1185AvenueoftheAmericas,NewYork,NY10036.Reis’stelephonenumberatsuchcorporateheadquartersis(212)921-1122.
Available Information .ReisissubjecttotheinformationandreportingrequirementsoftheExchangeActandinaccordancetherewithisobligatedtofilereportsandotherinformationwiththeSECrelatingtoitsbusiness,financialconditionandothermatters.Certaininformation,asofparticulardates,concerningReis’sbusiness,principalphysicalproperties,capitalstructure,materialpendinglitigation,operatingresults,financialcondition,directorsandofficers(includingtheirremunerationandstockoptionsgrantedtothem),theprincipalholdersofReis’ssecurities,anymaterialinterestsofsuchpersonsintransactionswithReis,andothermattersisrequiredtobedisclosedinproxystatementsandperiodicreportsdistributedtoReis’sstockholdersandfiledwiththeSEC.Suchreports,proxystatementsandotherinformationshouldbeavailableforinspectionatthepublicreferenceroomattheSEC’sofficeat100FStreet,NE,Washington,DC20549.Copiesmaybeobtainedbymail,uponpaymentoftheSEC’scustomarycharges,bywritingtoitsprincipalofficeat100FStreet,NE,Washington,DC20549.FurtherinformationontheoperationoftheSEC’sPublicReferenceRoominWashington,DCcanbeobtainedbycallingtheSECat1-800-SEC-0330.TheSECalsomaintainsanInternetwebsitethatcontainsreports,proxystatementsandotherinformationaboutissuers,suchasReis,whofileelectronicallywiththeSEC.Theaddressofthatsiteishttp://www.sec.gov.ReisalsomaintainsanInternetwebsiteathttps://www.reis.com/.Theinformationcontainedin,accessiblefromorconnectedtoReis’swebsiteisnotincorporatedinto,orotherwiseapartof,thisOffertoPurchaseoranyofReis’sfilingswiththeSEC.Thewebsiteaddressesreferredtointhisparagraphareinactivetextreferencesandarenotintendedtobeactuallinkstothewebsites.
Sources of Information .Exceptasotherwisesetforthherein,theinformationconcerningReiscontainedinthisOffertoPurchasehasbeenbaseduponpubliclyavailabledocumentsandrecordsonfilewiththeSEC,otherpublicsourcesandinformationprovidedbyReis.Althoughwehavenoknowledgethatanysuchinformationcontainsanymisstatementsoromissions,noneofParent,Purchaseroranyoftheirrespectiveaffiliatesorassigns,theInformationAgentortheDepositaryassumesresponsibilityfortheaccuracyorcompletenessoftheinformationconcerningReiscontainedinsuchdocumentsandrecordsorforanyfailurebyReistodiscloseeventswhichmayhaveoccurredormayaffectthesignificanceoraccuracyofanysuchinformation.
9. Certain Information Concerning Purchaser and Parent .
General .PurchaserisaMarylandcorporationwithitsprincipalofficeslocatedatc/oMoody’sCorporation,7WorldTradeCenterat250GreenwichStreet,NewYork,NY10007.ThetelephonenumberofPurchaseris(212)553-0300.Purchaserisadirectwholly-ownedsubsidiaryofParent.PurchaserwasformedforthepurposeofmakingatenderofferforalloftheSharesofReisandhasnotengaged,anddoesnotexpecttoengage,inanybusinessotherthaninconnectionwiththeOfferandtheMerger.
ParentisaDelawarecorporationwithitsprincipalofficeslocatedat7WorldTradeCenterat250GreenwichStreet,NewYork,NY10007.ThetelephonenumberofMoody’sCorporationis(212)553-0300.Parentisaproviderof(i)creditratings;(ii)credit,capitalmarketsandeconomicresearch,data,analyticaltoolsandrelatedprofessionalservices;(iii)softwaresolutionsthatsupportfinancialriskmanagementactivities;(iv)financialservicestrainingandcertificationservices;(v)offshorefinancialresearchandanalyticalservices;and(vi)companyinformationandbusinessintelligenceproducts.SeeSection9—“CertainInformationConcerningPurchaserandParent.”
Thename,citizenship,businessaddress,businessphonenumber,presentprincipaloccupationoremploymentandpastmaterialoccupation,positions,officesoremploymentforatleastthelastfiveyearsforeachdirectorandeachoftheexecutiveofficersofPurchaserandParentandcertainotherinformationaresetforthinScheduleAhereto.
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Duringthelastfiveyears,noneofPurchaserorParentor,tothebestknowledgeofPurchaserandParent,anyofthepersonslistedinScheduleAhereto(i)hasbeenconvictedinacriminalproceeding(excludingtrafficviolationsorotherminoroffences)or(ii)wasapartytoanyjudicialoradministrativeproceeding(exceptformattersthatweredismissedwithoutsanctionorsettlement)thatresultedinajudgment,decreeorfinalorderenjoiningthepersonfromfutureviolationsof,orprohibitingactivitiessubjectto,federalorstatesecuritieslaws,orafindingofanyviolationofsuchlaws.
ExceptasotherwisedescribedinthisOffertoPurchase,(i)noneofPurchaser,Parent,anymajority-ownedsubsidiaryofPurchaserorParentor,tothebestknowledgeofPurchaserandParent,anyofthepersonslistedinScheduleAheretooranyassociateoranyofthepersonssolistedbeneficiallyownsorhasanyrighttoacquire,directlyorindirectly,anySharesand(ii)noneofPurchaser,Parentor,tothebestknowledgeofPurchaserandParent,anyofthepersonsorentitiesreferredtoabovenoranydirector,executiveofficerorsubsidiaryofanyoftheforegoinghaseffectedanytransactionintheSharesduringthepast60days.
ExceptasotherwisedescribedinthisOffertoPurchase,noneofPurchaser,Parentor,tothebestknowledgeofPurchaserandParent,anyofthepersonslistedinScheduleAhereto,hasanycontract,arrangement,orunderstandingwithanyotherpersonwithrespecttoanysecuritiesofReis,including,butnotlimitedto,anycontract,arrangement,understandingorrelationshipconcerningthetransferorvotingofsuchsecurities,finder’sfees,jointventures,loanoroptionarrangements,putsorcalls,guaranteesofloans,guaranteesagainstloss,guaranteesofprofits,divisionofprofitsorlossorthegivingorwithholdingofproxies.
ExceptassetforthinthisOffertoPurchase,noneofPurchaser,Parentor,tothebestknowledgeofPurchaserandParent,anyofthepersonslistedonScheduleAhereto,hashadanybusinessrelationshiportransactionwithReisoranyofitsexecutiveofficers,directorsoraffiliatesthatisrequiredtobereportedundertherulesandregulationsoftheSECapplicabletotheOffer.ExceptassetforthinthisOffertoPurchase,therehavebeennocontacts,negotiationsortransactionsbetweenParentoranyofitssubsidiariesor,tothebestknowledgeofParent,anyofthepersonslistedinScheduleAhereto,ontheonehand,andReisoritsaffiliates,ontheotherhand,concerningamerger,consolidationoracquisition,tenderofferorotheracquisitionofsecurities,anelectionofdirectorsorasaleorothertransferofamaterialamountofassetsduringthepasttwoyears.
Available Information .PursuanttoRule14d-3undertheExchangeAct,PurchaserandParentfiledwiththeSECaTenderOfferStatementonScheduleTO(the“ScheduleTO”),ofwhichthisOffertoPurchaseformsapart,andexhibitstotheScheduleTO.TheScheduleTOandtheexhibitsthereto,andsuchreportsandotherinformation,canbeinspectedandcopiedatthepublicreferencefacilitiesmaintainedbytheSECat100FStreet,N.E.,Washington,D.C.20549-0213.InformationregardingthepublicreferencefacilitiesmaybeobtainedfromtheSECbytelephoning1-800-SEC-0330.ParentfilingsarealsoavailabletothepublicontheSEC’sinternetwebsite(http://www.sec.gov).CopiesofsuchmaterialsmayalsobeobtainedbymailfromthePublicReferenceSectionoftheSECat100FStreet,N.E.,Washington,D.C.20549-0213atprescribedrates.
10. Background of the Offer; Contacts with Reis .
Background of the Offer and the Merger; Past Contacts or Negotiations between Parent and Reis .ThefollowingisadescriptionofcontactsbetweenrepresentativesofParentorPurchaserwithrepresentativesofReisthatresultedintheexecutionoftheMergerAgreementandtheagreementsrelatedtotheOffer.ForareviewofReis’sactivitiesrelatingtothesecontacts,pleaserefertoReis’sSchedule14D-9beingmailedtostockholderswiththisOffertoPurchase.
Background of the Offer and the Merger
ThefollowingcontainsadescriptionofmaterialcontactsbetweenrepresentativesofParentorPurchaserandrepresentativesofReisthatresultedintheexecutionoftheMergerAgreementandtheagreementsrelatedtotheOffer.Thediscussionbelowcoversonlythematerialcontactsanddoesnotattempttodescribeevery
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communicationbetweenrepresentativesofParentorPurchaserandrepresentativesofReis.ForareviewofReis’sactivitiesrelatingtothesecontacts,pleaserefertoReis’sSchedule14D-9thatwillbefiledwiththeSECandmailedtoallReisstockholderswiththisOffertoPurchase.
Parent’smanagementandParent’sboardofdirectors(the“Parent’sBoard”)regularlyconsiderandevaluateopportunitiesthatalignwithParent’sbusinesses,strategicdirectionandongoingbusinessdevelopmentplans.Parentalsomeetswithpotentialpartnersandacquisitiontargetsonaregularbasistounderstandthesecompanies’businessesandevaluatethepotentialopportunities.
Parenthasbeeninterestedinthecommercialrealestatedataandanalyticsmarketandmadetworelatedinvestmentsin2017.AfterReisannounceditwasexploringstrategicalternativesonMarch8,2018,ParentreferencedReis’sSECfilingsandotherinformationavailableinthepublicdomaintoevaluateapotentialacquisitionofReis.
OnMay24,2018,DavidPlatt,ManagingDirectorandHeadofCorporateDevelopmentforParent,calledMarkCantaluppi,VicePresident&ChiefFinancialOfficerofReis,toexpressinterestinlearningmoreaboutReisanditsstrategicalternativesreviewprocess.Mr.CantaluppiadvisedMr.PlattthathewouldregisterParent’sinterestwithReis’sfinancialadviser,CanaccordGenuity(“Canaccord”)andthattheywouldcontactParentandprovideguidanceonpotentialnextsteps.
OnMay24,2018,Mr.PlattreceivedacallfromrepresentativesofCanaccordandreiteratedParent’sinterestinobtainingmoreinformationaboutReis.RepresentativesfromCanaccordindicatedthatotherpotentialbidderswerefurtheralongintheduediligenceprocessbutwouldprovideParentwithaConfidentialInformationPresentation(“CIP”)toevaluateReisfollowingtheexecutionofaconfidentialityagreementwithReis.
OnMay25,2018,ParententeredintoaconfidentialityagreementwithReis.OnMay26,2018,CanaccordprovidedParentwiththeCIP,aswellasaccesstoseveralvideopresentationsaboutReisanditsproductsandservices.CanaccordalsoprovidedParentwithaprocessletteroutliningtheanticipatedtimingforapotentialtransactionandrequestingthatParentsubmitapreliminarynon-bindingindicationofinterestbyJune1,2018.
OnMay29andMay30,2018,Mr.PlatthadcommunicationswithrepresentativesofCanaccordtodiscusstheReistransactionprocess.Mr.PlattindicatedthatParentwouldnotbeabletomeetthenon-bindingproposalsubmissiondeadlineofJune1because(i)Parentneededtimetoperformadditionalfinancialanalysisand(ii)Parentmanagementneedtoobtaincertaininternalapprovalspriortosubmittingthenon-bindingproposal.
OnJune11,2018,ParentsubmittedtoReisanon-bindingproposal,inwhichParentexpressedaninterestinacquiringReisfor$22.86pershareinanall-cashtransaction.Theproposalindicatedthatthetransactionwasnotconditionalonfinancingandwassubjecttoadditionaldiligenceamongothermatters.
OnJune15,2018,representativesofCanaccordcommunicatedtoMr.PlattthatParent’s$22.86pershareproposalwaslowerthanoffersfromotherpotentialbiddersinthetransactionprocess.TheynotedthattheReisBoardbelievedParentcouldbeagoodfitforReisandaskedParenttoconsiderrevisingthe$22.86pershareproposal.Mr.PlattindicatedParentwouldlikeaccesstomorecomprehensiveduediligencematerialsandtohaveameetingwiththeReismanagementteaminordertoconsiderupdatingitsfinancialanalysisandpotentiallythepershareofferprice.RepresentativesofCanaccordindicatedthattheywouldcoordinatethemanagementmeetingandaccesstoavirtualdataroomcontainingduediligencematerials.
OnJune17,2018,ReisprovidedParentwithaccesstoavirtualdataroomwhichprovidedlimitedadditionalinformationregardingReis’sbusinessanddraftsetoftransactiondocuments,includinganagreementandplanofmergerandaformoftenderandsupportagreement.
OnJune19,2018,membersofseniormanagementofReisincludingLloydLynford,ChiefExecutiveOfficer,JonathanGarfield,ExecutiveVicePresident,MarkCantaluppi,ChiefFinancialOfficer,andWilliam
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Sander,ChiefOperatingOfficer,metwithKeithBerry,ExecutiveDirectorandHeadofEmergingBusinessUnit,andmembersofParent’sinternalduediligenceteamtodiscussReis’sproducts,databaseandoperations,salesandmarketingandfinancials.
OnJune21,2018,Mr.PlattcommunicatedtorepresentativesofCanaccordthatParent’sproposalremainedthesameat$22.86pershare.RepresentativesofCanaccordinformedMr.PlattthatParentcouldexpecttoreceiveReis’sviewofpotentialnextstepsbyJune25,2018.
OnJune25,2018,representativesfromCanaccordcommunicatedtoMr.PlattthattheyneededtoconvenewiththeReisBoardbeforeprovidingParentwitharesponse.
OnJune26,2018,representativesofCanaccordcommunicatedtoMr.PlattthatReishadagreedtoallowParentaccesstothefullduediligencematerialssoitcouldproceedwithitsevaluationofReis.
OnJune27,2018,ReisprovidedParentwithaccesstoamorecomprehensivevirtualdataroom,whichprovidedmanyadditionalmaterialsregardingReis’sbusiness.
BetweenJune29,2018andAugust1,2018,anumberoflengthymanagementduediligencemeetingswereheldbothinpersonandbyconferencecallamongvariousrepresentativesofParentandReisandtheirrespectiveexternaladvisers,duringwhichin-depthduediligencewasconductedonvariousareassuchasproductdevelopment,sales,finance,humanresources,informationtechnology,legal,realestate,treasury,tax,insuranceandcompliance.
OnJuly11,2018,representativesofCanaccordcontactedMr.PlattandcommunicatedthatReiswouldexpectafinalacquisitionproposalinlateJulyorearlyAugust.
OnJuly18,2018,Mr.BerrymetwithMr.Lynfordtodiscussthebusiness,customerrelationshipsandorganizationalstructureofReis.
OnJuly19,2018,Mr.PlattcommunicatedtorepresentativesofCanaccordthatduediligencewasproceedingasplanned.
OnJuly25,2018,representativesofCanaccordhadacallwithMr.Plattandmembersofhisteam.Duringthiscall,Mr.PlattindicatedthatParenthadtheinformationnecessarytodiscussapotentialtransactionatmeetingswithMarkAlmeida,PresidentofMoody’sAnalytics,scheduledforJuly30,2018andwithRaymondMcDaniel,Parent’sChiefExecutiveOfficer,scheduledforJuly31,2018.
OnAugust1,2018,representativesofCanaccordheldacallwithMr.PlatttodiscusstheresultofMr.Platt’smeetingswithbothMr.AlmeidaandMr.McDaniel.Mr.PlattinformedCanaccordthatthemeetingswentwell,thatbothweresupportiveofbringingaproposedtransactionwithReistoParent’sBoard.
AlsoonAugust1,2018,Parent,itsoutsidelegaladvisorSkadden,Arps,Slate,Meagher&FlomLLP(“Skadden”),andReis’soutsidelegaladvisorFried,Frank,Harris,Shriver&JacobsonLLP(“FriedFrank”)discussedbyconferencecallthestatus,findingsandoutstandingitemsoftheongoingduediligenceinvestigation,aswellasthetimingofprovidingcommentstothetransactiondocuments.
OnAugust2,2018,representativesofSkaddendeliveredtorepresentativesofFriedFrankreviseddraftsofthetransactiondocuments.
OnAugust3,2018,Mr.AlmeidametwithMr.Lynfordtodiscussthestatusofthetransaction,certainintellectualpropertymattersandanticipatednextsteps.
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OnAugust7,2018,representativesofFriedFrankdeliveredtorepresentativesofSkaddenreviseddraftsofthetransactiondocuments.
OnAugust9,2018,SkaddenandFriedFrankconductednegotiationsregardingthetransactiondocuments.
OnAugust10,2018,SkaddenandFriedFrankfurthernegotiatedthetransactiondocumentswithrespecttocertaintaxmatters.
OnAugust13,2018,Mr.PlattcontactedrepresentativesofCanaccordandindicatedParenthadreceivedboardapprovaltosubmittheirfinalproposalandduringthatcallhighlightedParent’sfinalproposedpricepersharetoacquireReis.Laterthatevening,Mr.PlattsubmittedParent’srevisednon-bindingproposaltoReisinwhichParentexpressedaninterestinacquiringReisforareducedpriceof$21.25pershareinanall-cashtransaction.Theproposalindicatedthatthetransactionwasnotconditionalonfinancingbutwasstillsubjecttoreviewofcertainremainingoutstandingduediligence.
OnAugust17,2018,Mr.LynfordhadacallwithMarkAlmeida,PresidentofMoody’sAnalytics,inwhichMr.LynfordconveyedtheReisBoard’sviewthatParent’s$21.25pershareproposalwasinadequateandlowerthancompetingoffers.
OnAugust18,2018,Mr.AlmeidacommunicatedtoMr.Lynfordthatinlightoftheirdiscussionthepreviousday,Parentwouldexplorehowitcouldreviseitsproposal.
OnAugust19,2018,Mr.AlmeidainformedMr.LynfordthatParent’smanagementwasworkingonarevisedacquisitionproposalandofferedtomeethimthenextdaywithRaymondMcDaniel,Parent’sChiefExecutiveOfficer.
OnAugust20,2018,Mr.McDanielandMr.AlmeidametwithMr.Lynfordandfurtherdiscussedapotentialtransaction,includingthepriceatwhichMr.LynfordwouldrecommendthetransactiontoReis’sBoard.
OnAugust21,2018,Mr.McDanielsentMr.LynfordaletterindicatingthatParent’smanagementwouldrecommendtoParent’sBoardthatitapproveanincreasedproposaltoacquireReisfor$23.00pershare,andonthatbasisrequestedthatReisgrantParentalimitedperiodofexclusivity,withinwhichtocompleteduediligenceandnegotiatethetransactiondocuments.
OnAugust22,2018,Mr.LynfordcommunicatedwithMr.McDanielthathehadsharedParent’sAugust21,2018letterwiththeReisBoard,whohadaproductivediscussionregardingapotentialacquisitionbyParent,andanticipatedhearingabouttheoutcomeofdiscussionswithParent’sBoard.Mr.LynfordfurtherindicatedthatReiswasfocusedonmovingswiftlyandannouncingatransactionbythemiddleofthefollowingweek.
LaterinthedayonAugust22,2018,Mr.McDanielandMr.AlmeidaspokewithMr.LynfordandindicatedthatParentwouldbesendingacrossanewproposaltoacquireReisfor$23.00pershareandemphasizedthatParentwouldmovequicklyaimingtosignthedefinitivedocumentationbythemiddleofthefollowingweek.Mr.LynfordindicatedheneededtoconvenewiththeReisBoardthatnightorthefollowingmorning.
LaterthateveningonAugust22,2018,Mr.McDanielsentMr.LynfordParent’srevisednon-bindingproposaltoacquireReisfor$23.00pershareinanall-cashtransaction.Parent’srevisedproposalincludedarequestforexclusivityuntilSeptember4,2018andnotedthatParentwouldbewillingtoworkexpeditiouslytowardscompletingitsdiligence,negotiatingdefinitiveagreementsandannouncingatransactiononorbeforeSeptember4,2018.
AlsoonAugust22,2018,representativesofSkaddenandrepresentativesofFriedFrankconductednegotiationsofthetransactiondocumentswithrespecttocertainintellectualpropertymattersbyconferencecall.
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OnAugust23,2018,representativesofSkaddendeliveredtorepresentativesofFriedFrankreviseddraftsofthetransactiondocuments.
OnAugust24,2018,Mr.LynfordreportedtoMr.McDanielandMr.AlmeidathattheReisBoardhadauthorizedhimtocommunicatethatReiswaspreparedtoproceedwithParentattheincreasedofferpriceof$23.00pershare.Mr.LynfordalsoindicatedthatReiswaswillingtograntParentalimitedexclusivityperiodthroughAugust29,2018,andwouldinstructhiscounseltofinalizeanexclusivityagreement.Laterthatday,ParentandReisenteredintoanexclusivityagreementthatprohibitedReis,subjecttocertainexceptions,fromsolicitingalternativeacquisitionproposalsorengagingindiscussionswithotherpartiesthroughAugust29,2018.
AlsoonAugust24,2018,Mr.LynfordcalledMr.Almeidatodiscussthetransaction,includingthetimelineandunresolvedmattersinthetransactiondocuments.
OnAugust25,2018,representativesofSkaddenandrepresentativesofFriedFrankdiscussedoutstandingduediligencemattersbyconferencecall.
AlsoonAugust25,2018,representativesofFriedFrankdeliveredtorepresentativesofSkaddenreviseddraftsofthetransactiondocumentsandancillarydisclosureschedules.
OnAugust26,2018,Mr.AlmeidacommunicatedtoMr.Lynfordthatprogresswasbeingmadeonduediligenceandnegotiatingofthetransactiondocuments.
FromAugust26toAugust28,2018,representativesofeachofParentandReisandtheirrespectivelegalcounselcontinuedtonegotiateandrevisetheprovisionsofthetransactiondocumentsandrelateddisclosureschedules,andbegandiscussionsregardingthecontentofajointpressannouncement.
OnAugust28,2018,Mr.AlmeidainformedMr.LynfordthatParentcontinuedtomakeprogressonfinaloutstandingduediligencerequestsandthetransactiondocuments,andprovidedanupdateontiming.Theyalsodiscussedthecontentoftheparties’draftjointpressannouncementregardingthetransaction.
OnAugust29,2018,representativesofeachofParentandReisandtheirrespectivelegalcounselcontinuedtodiscussthetransactiondocuments,thejointpressreleaseandthecommunicationsplan.Mr.AlmeidaandMr.Lynfordalsodiscussedapost-announcementvisitbycertainParentrepresentativestoReis’sofficestomeetwithcertainkeyReisemployees.
AlsoonAugust29,2018,Reis,ParentandPurchaserexecutedthetransactiondocuments.Mr.LynfordandMr.GarfieldeachalsoexecutedaTenderandSupportAgreementwithParentandPurchaser.
BeforetheopeningoftradingontheNASDAQStockMarketonAugust30,2018,ParentandReisissuedajointpressreleaseannouncingtheexecutionoftheMergerAgreementandtheforthcomingcommencementofatenderofferbyParenttoacquirealltheoutstandingSharesofReisatapriceof$23.00perShareincash.
OnSeptember13,2018,PurchasercommencedtheOfferandfiledthisScheduleTO-T.
11. Purpose of the Offer and Plans for Reis; Summary of the Merger Agreement and Certain Other Agreements .
Purpose of the Offer and Plans for Reis.
Purpose of the Offer .ThepurposeoftheOfferandtheMergerisforParentanditsaffiliates,throughPurchaser,toacquirecontrolof,andtheentireequityinterestin,Reis.PursuanttotheMerger,ParentwillacquireallofthestockofReisnotpurchasedpursuanttotheOfferorotherwise.StockholdersofReiswhoselltheirSharesintheOfferwillceasetohaveanyequityinterestinReisoranyrighttoparticipateinitsearningsandfuturegrowth.
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Merger Without a Stockholder Vote .IftheOfferisconsummated,wedonotanticipateseekingtheapprovalofReis’sremainingpublicstockholdersbeforeeffectingtheMerger.Section3-106.1oftheMGCLprovidesthatstockholderapprovalofamergerisnotrequiredifcertainrequirementsaremet,includingthat(i)theacquiringcompanyconsummatesatenderofferforanyandalloftheoutstandingstockofthecompanytobeacquiredthat,absentSection3-106.1oftheMGCL,wouldbeentitledtovoteonthemerger,(ii)followingtheconsummationofsuchtenderoffer,theacquiringcompanyownsatleastsuchpercentageofthestockofthecompanytobeacquiredthat,absentSection3-106.1oftheMGCL,wouldberequiredtoapprovethemergerand(iii)noticethatsatisfiesrequirementsofSection3-106.1(e)(1)oftheMGCLhasbeengiventoallReisstockholder’satleast30dayspriortothemerger.ANoticeoftheMergerpursuanttoSection3-106(e)(1)isbeingmailedonSeptember13,2018toReisstockholdersofrecordasofsuchdate,therebyconstitutingthenoticeofmergerreferredtointhisparagraph.Accordingly,ifweconsummatetheOffer,weintendtoeffecttheclosingoftheMerger(the“Closing”)withoutavoteofthestockholdersofReisinaccordancewithSection3-106.1oftheMGCLaspromptlyaspracticableaftertheconsummationoftheOffer.Accordingly,wedonotexpecttheretobeasignificantperiodoftimebetweentheconsummationoftheOfferandtheconsummationoftheMerger.
Plans for Reis .AttheEffectiveTime,thearticlesofincorporationandthebylawsofReiswillbeamendedandrestatedtoconformtothearticlesofincorporationandthebylawsofPurchaserineffectimmediatelypriortotheEffectiveTime,exceptthatreferencestothenameofPurchaserwillbereplacedbyreferencestothenameofReis.Purchaser’sdirectorsandofficersimmediatelypriortotheEffectiveTimewillbetheinitialdirectorsandofficersoftheSurvivingCorporationuntiltheirrespectivesuccessorsaredulyelectedandqualified,ortheirearlierdeath,resignationorremoval.See“SummaryoftheMergerAgreement—BoardofDirectorsandOfficers”below.
ParentandPurchaserareconductingadetailedreviewofReisanditsassets,corporatestructure,capitalization,operations,properties,policies,managementandpersonnel,andwillconsiderwhichchangeswouldbedesirableinlightofthecircumstancesthatexistuponcompletionoftheOfferandtheMerger.ParentandPurchaserwillcontinuetoevaluatethebusinessandoperationsofReisduringthependencyoftheOfferandaftertheconsummationoftheOfferandtheMergerandwilltakesuchactionsastheydeemappropriateunderthecircumstancesthenexisting.Thereafter,ParentintendstoreviewsuchinformationaspartofacomprehensivereviewofReis’sbusiness,operations,capitalizationandmanagementwithaviewtooptimizingdevelopmentofReis’spotentialinconjunctionwithReis’sorParent’sexistingbusinesses.PossiblechangescouldincludechangesinReis’sbusiness,corporatestructure,certificateofincorporation,bylaws,capitalization,boardofdirectorsandmanagement.PlansmaychangebasedonfurtheranalysisandParent,Purchaserand,aftercompletionoftheOfferandtheMerger,thereconstitutedReisboardofdirectorsreservestherighttochangetheirplansandintentionsatanytime,asdeemedappropriate.
ExceptasdisclosedinthisOffertoPurchase,ParentandPurchaserdonothaveanypresentplanorproposalthatwouldresultintheacquisitionbyanypersonofadditionalsecuritiesofReis,thedispositionofsecuritiesofReis,anextraordinarycorporatetransaction,suchasamerger,reorganizationorliquidation,involvingReisoritssubsidiariesorthesaleortransferofamaterialamountofassetsofReisoritssubsidiaries.
Summary of the Merger Agreement.
MergerAgreement
ThefollowingsummaryofcertainprovisionsoftheMergerAgreementandallotherprovisionsoftheMergerAgreementdiscussedhereinarequalifiedbyreferencetotheMergerAgreementitself,whichisincorporatedhereinbyreference.WehavefiledacopyoftheMergerAgreementasExhibit(d)(1)totheScheduleTO.TheMergerAgreementmaybeexaminedandcopiesmaybeobtainedattheplacesandinthemannersetforthinSection9—“CertainInformationConcerningPurchaserandParent.”StockholdersandotherinterestedpartiesshouldreadtheMergerAgreementforamorecompletedescriptionoftheprovisions
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summarizedbelow.CapitalizedtermsusedhereinandnototherwisedefinedhavetherespectivemeaningssetforthintheMergerAgreement.
TheMergerAgreementhasbeenfiledwiththeSECandincorporatedbyreferencehereintoprovideinvestorsandstockholderswithinformationregardingthetermsoftheOfferandtheMerger.ItisnotintendedtoprovideanyotherfactualinformationaboutParent,PurchaserorReis.Therepresentations,warrantiesandcovenantscontainedintheMergerAgreementweremadeonlyasofspecifieddatesforthepurposesofsuchagreement,were(exceptasexpresslysetforththerein)solelyforthebenefitofthepartiestosuchagreementandmaybesubjecttoqualificationsandlimitationsagreeduponbysuchparties.Inparticular,inreviewingtherepresentations,warrantiesandcovenantscontainedintheMergerAgreementandanydescriptionthereofcontainedorincorporatedbyreferenceherein,itisimportanttobearinmindthatsuchrepresentations,warrantiesandcovenantswerenegotiatedwiththeprincipalpurposeofallocatingriskamongtheparties,ratherthanestablishingmattersasfacts.Suchrepresentations,warrantiesandcovenantsmayalsobesubjecttoacontractualstandardofmaterialitydifferentfromthosegenerallyapplicabletostockholdersandreportsanddocumentsfiledwiththeSEC,andinsomecaseswerequalifiedbydisclosuressetforthinaconfidentialdisclosureletterthatwasprovidedbyReistoParentandPurchaserbutisnotfiledwiththeSECaspartoftheMergerAgreement.Investorsandstockholdersarenotthird-partybeneficiariesundertheMergerAgreement,exceptwithrespecttotheirrighttoreceivetheOfferPricefollowingtheOfferAcceptanceTimeortoreceivetheMergerConsideration(asdefinedbelow).Accordingly,investorsandstockholdersshouldnotrelyonsuchrepresentations,warrantiesandcovenantsascharacterizationsoftheactualstateoffactsorcircumstancesdescribedtherein.Informationconcerningthesubjectmatterofsuchrepresentations,warrantiesandcovenants,whichdonotpurporttobeaccurateasofthedateofthisOffertoPurchase,mayhavechangedsincethedateoftheMergerAgreement,whichsubsequentinformationmayormaynotbefullyreflectedintheparties’publicdisclosures.
TheOffer.TheMergerAgreementprovidesthatPurchaserwillcommencetheOffernolaterthanSeptember13,2017.Purchaser’sobligationtoacceptforpaymentandpayforSharesvalidlytenderedintheOfferissubjecttothesatisfactionoftheMinimumTenderConditionandtheotherOfferConditionsthataredescribedinSection13—“ConditionsoftheOffer.”SubjecttothesatisfactionoftheMinimumTenderConditionandtheotherOfferConditionsthataredescribedinSection13—“ConditionsoftheOffer,”theMergerAgreementprovidesthatPurchasershall,andParentshallcausePurchaserto,immediatelyaftertheapplicableExpirationDate,asitmaybeextendedpursuanttothetermsoftheMergerAgreement,irrevocablyacceptforpaymentallSharesvalidlytenderedandnotvalidlywithdrawnpursuanttotheOfferand,assoonasreasonablypracticable,andnomorethanonebusinessdayaftertheAcceptanceTime,payforsuchShares.TheOfferwillexpireat11:59p.m.,EasternTime,onOctober12,2018,unlessweextendtheOfferpursuanttothetermsoftheMergerAgreement.
Purchaserexpresslyreservestherighttowaive(totheextentpermittedunderapplicablelegalrequirements)anyOfferCondition,toincreasetheamountofcashconstitutingtheOfferPrice,tomakeanyotherchangesinthetermsandconditionsoftheOfferthatarenotinconsistentwiththetermsoftheMergerAgreementandtoterminatetheOfferiftheconditionstotheOfferarenotsatisfiedandtheMergerAgreementisterminated,exceptthatReis’spriorwrittenapprovalisrequiredforParentorPurchaserto:
• reducethenumberofSharessubjecttotheOffer;
• reducetheOfferPrice(exceptasprovidedintheMergerAgreement);
• change,modifyorwaivetheMinimumTenderCondition;
• imposeanyconditiontotheOfferinadditiontotheconditionssetforthinSection13—“ConditionsoftheOffer;”
• extendorotherwisechangetheexpirationdateoftheOffer(exceptasprovidedintheMergerAgreement);
• changetheformofconsiderationpayableintheOffer;or
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• otherwiseamend,modifyorsupplementanyoftheothertermsoftheOfferinanymanneradversetoReisortheholdersofShares.
Inaddition,PurchaserandParentmaynotwaivetheHSRCondition,theGovernmentalImpedimentConditionortheTerminationConditionwithouttheconsentofReis.
TheMergerAgreementcontainsprovisionstogovernthecircumstancesunderwhichPurchaserisrequiredto,andParentisrequiredtocausePurchaserto,extendtheOffer.Specifically,theMergerAgreementprovidesthat:
• if,asofthethenscheduledExpirationDate,anyOfferConditionhasnotbeensatisfiedorwaived,totheextentwaivable,Purchaserhasagreed
to(andParenthasagreedtocausePurchaserto)extendtheOfferforadditionalperiodsofuptoten(10)businessdaysperextension(orlongerifagreed),topermitsuchOfferConditiontobesatisfied;and
• Purchaserhasagreedto(andParenthasagreedtocausePurchaserto)extendtheOfferfortheminimumperiodrequiredbyanylaw,interpretationorpositionoftheSECoritsstaffapplicabletotheOffer.
However,PurchaserisnotrequiredtoextendtheOfferbeyondtheearliertooccurofthevalidterminationoftheMergerAgreementinaccordancewithitstermsandtheOutsideDate.
Purchaserhasagreedthatitwill(andParentwillcausePurchaserto)promptly,irrevocablyandunconditionallyterminatetheOfferuponanyterminationoftheMergerAgreement,andPurchaserwillpromptlyreturn,andwillcauseanydepositoryactingonbehalfofPurchasertoreturn,alltenderedSharestotheregisteredholdersthereof.
TheMerger.TheMergerAgreementprovidesthat,followingcompletionoftheOfferandsubjecttothetermsandconditionsoftheMergerAgreement,andinaccordancewiththeMGCL,attheEffectiveTime,PurchaserwillbemergedwithandintoReis,theseparateexistenceofPurchaserwillcease,andReiswillcontinueastheSurvivingCorporationintheMerger.TheMergerwillbeeffectedunderSection3-106.1oftheMGCLwhichprovidesthatstockholderapprovalofamergerisnotrequiredifcertainrequirementsaremet,includingthat(i)theacquiringcompanyconsummatesatenderofferforanyandalloftheoutstandingstockofthecompanytobeacquiredthat,absentSection3-106.1oftheMGCL,wouldbeentitledtovoteonthemerger,(ii)followingtheconsummationofsuchtenderoffer,theacquiringcompanyownsatleastsuchpercentageofthestockofthecompanytobeacquiredthat,absentSection3-106.1oftheMGCL,wouldberequiredtoapprovethemergerand(iii)noticethatsatisfiesrequirementsofSection3-106.1(e)(1)oftheMGCLhasbeengiventoallReisstockholder’satleast30dayspriortothemerger.ANoticeoftheMergerpursuanttoSection3-106(e)(1)isbeingmailedonSeptember13,2018toReisstockholdersofrecordasofsuchdate,therebyconstitutingthenoticeofmergerreferredtointhisparagraph.SubjecttothesatisfactionoftheremainingconditionssetforthintheMergerAgreement,Purchaser,ParentandReisarerequiredtoeffecttheMergerpursuanttoSection3-106.1oftheMGCLaspromptlyaspossible(andinnoeventlaterthan9:00a.m.EasternTimeonthefirstbusinessdayfollowingthedateonwhichSharesarefirstacceptedforpurchaseundertheOffer).
AsoftheEffectiveTime,thearticlesofincorporationofReiswillbeamendedandrestatedtoconformtothearticlesofincorporationofPurchaserineffectimmediatelybeforetheEffectiveTime(otherthantheuseofthenameofReisratherthanthenameofPurchaser)and,assoamendedandrestated,willbethearticlesofincorporationoftheSurvivingCorporation.
AsoftheEffectiveTime,thebylawsofReiswillbeamendedandrestatedtoconformtothebylawsofPurchaserineffectimmediatelybeforetheEffectiveTime(otherthantheuseofthenameofReisratherthanthenameofPurchaser)and,assoamendedandrestated,willbethebylawsoftheSurvivingCorporation.
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TheobligationsofReis,ParentandPurchasertocompletetheMergeraresubjecttothesatisfactionorwaiverbyeachofthepartiesofthefollowingconditions:
• PurchaserwillhavepreviouslyirrevocablyacceptedforpurchaseandpaymentallSharesvalidlytenderedandnotvalidlywithdrawnpursuanttotheOffer;
• nogovernmentalbodyofcompetentjurisdictionwillhave(i)enacted,issued,promulgated,enforcedorenteredanylaw,commonlaw,statute,
ordinance,code,regulation,ruleorotherrequirementor(ii)issuedanyorder,decision,judgment,writ,injunction,decree,awardorotherdetermination,ineachcase,thatisineffectandenjoinsorotherwiseprohibitstheconsummationoftheMerger;and
• noticethatsatisfiesrequirementsofSection3-106.1(e)(1)oftheMGCLwillhavebeengiventoallReisstockholder’satleast30dayspriortotheMerger.
BoardofDirectorsandOfficers.AsoftheEffectiveTime,theboardofdirectorsandofficersoftheSurvivingCorporationwillbethemembersoftheboardofdirectorsandofficers,respectively,ofPurchaserimmediatelypriortotheEffectiveTime,untiltheirrespectivesuccessorshavebeendulyelectedandqualified,oruntiltheirearlierdeath,resignationorremoval.ReiswillcausetobedeliveredtoParentresignationsexecutedbyeachdirectorofReisinofficeasofimmediatelypriortotheEffectiveTimeandeffectiveupontheEffectiveTime.
ConversionofCapitalStockattheEffectiveTime.SharesoutstandingimmediatelypriortotheEffectiveTime(otherthan(i)SharesheldbyReisoranyofitswholly-ownedsubsidiariesand(ii)SharesheldbyParent,PurchaseroranyothersubsidiaryofParent)willbeconvertedattheEffectiveTimeintotherighttoreceive$23.00perShare,nettothesellerincash,ineachcase,withoutinterest,lessanyapplicablewithholdingtaxes(collectively,the“MergerConsideration”).
EachshareofPurchaser’scommonstockoutstandingimmediatelypriortotheEffectiveTimeshallbeconvertedintooneshareofcommonstockoftheSurvivingCorporation.
OnorpriortotheEffectiveTime,ParentwilldepositorcausetobedepositedwithAmericanStockTransfer&TrustCompany,LLC(the“PayingAgent”)cashsufficienttopaytheaggregateMergerConsiderationpayableuponsurrenderoftheShares.
TreatmentofEquityAwards.PursuanttotheMergerAgreement,attheEffectiveTime,eachoptiontoacquireReisSharesoutstandingimmediatelybeforetheEffectiveTime(whetherornotthenexercisableorvested)(each,a“ReisOption”)willbecanceled,andeachReisOptionwithanexercisepricethatislessthantheOfferPricewillbeconvertedintotherighttoreceiveacashpayment,withoutinterest,lessanyapplicablewithholdingtaxes,equalto(i)theexcessof(x)theOfferPriceover(y)theper-shareexerciseorpurchasepriceofsuchReisOption,multipliedby(ii)thetotalnumberofsharessubjecttosuchthatmaybeacquireduponexerciseofsuchReisOption,whetherornotthenexercisableorvested,immediatelybeforetheEffectiveTime.
AttheEffectiveTime,eachReisrestrictedstockunitinrespectofSharesoutstandingimmediatelybeforetheEffectiveTime(each,a“ReisRSU”)willbe,totheextentnotalreadyvested,vestedandcanceledandconvertedintotherighttoreceiveacashpayment,withoutinterest,lessanyapplicablewithholdingtaxes,equaltotheproductoftheOfferPricemultipliedbythetotalnumberofSharesunderlyingsuchReisRSUimmediatelybeforetheEffectiveTime.
RepresentationsandWarranties.ThissummaryoftheMergerAgreementhasbeenincludedtoprovideinvestorswithinformationregardingitsterms.ItisnotintendedtoprovideanyotherfactualinformationaboutParent,PurchaserorReis,theirrespectivebusinesses,ortheactualconductoftheirrespectivebusinessesduringtheperiodpriortotheconsummationoftheOfferortheMerger.TheMergerAgreementcontainsrepresentationsandwarrantiesthataretheproductofnegotiationsamongthepartiestheretoandmadeto,andsolelyforthe
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benefitof,eachotherasofspecifieddates.TheassertionsembodiedinthoserepresentationsandwarrantiesaresubjecttoqualificationsandlimitationsagreedtobytherespectivepartiesandarealsoqualifiedinimportantpartbyaconfidentialdisclosureletterdeliveredbyReistoParentinconnectionwiththeMergerAgreement.Therepresentationsandwarrantieswerenegotiatedwiththeprincipalpurposeofallocatingriskamongthepartiestotheagreementsinsteadofestablishingthesemattersasfacts,andmaybesubjecttostandardsofmaterialityapplicabletothecontractingpartiesthatdifferfromthoseapplicabletoinvestors.
IntheMergerAgreement,ReishasmaderepresentationsandwarrantiestoParentandPurchaserwithrespectto,amongotherthings:
• corporatematters,suchasorganization,organizationaldocuments,standing,qualification,powerandauthority;
• authorityandenforceabilityrelativetotheMergerAgreement;
• subsidiaries;
• requiredconsentsandapprovals,andnoviolationsoforganizationaldocuments,contractsorapplicablelawasaresultoftheOfferorMerger;
• capitalization;
• financialstatementsandSECfilings;
• disclosurecontrolsandinternalcontrolsoverfinancialreporting;
• absenceofundisclosedliabilities;
• absenceofcertainchangessinceReis’sfinancialstatementsfortheperiodendingDecember31,2017;
• absenceoflitigation;
• materialandgovernmentcontracts;
• employeesandemployeebenefitplans,includingERISA,laborrelationsandcertainrelatedmatters;
• taxes;
• environmentalmatters;
• intellectualproperty;
• realpropertymatters;
• permitsandlegalandregulatorycompliance;
• compliancewithanti-corruptionandanti-briberylaws;
• affiliatedtransactions;
• opinionofitsfinancialadvisor;
• absenceofarequirementforshareholderstovoteonthetransactions;
• statetakeoverstatutes;
• insurance;and
• brokers’feesandexpenses.
SomeoftherepresentationsandwarrantiesintheMergerAgreementmadebyReisarequalifiedasto“materiality”or“MaterialAdverseEffect.”ForpurposesoftheMergerAgreement,a“MaterialAdverseEffect”meansanyevent,condition,change,occurrenceordevelopmentofastateofcircumstancesorfactsthat,individuallyorwhentakentogetherwithallotherrelevantevents,conditions,changes,occurrencesor
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developmentsofastateofcircumstancesorfacts,(a)hasorwouldreasonablybeexpectedtohaveamaterialadverseeffectonthebusiness,assets,liabilities,resultsofoperationsorfinancialconditionofReisanditssubsidiaries,takenasawhole,or(b)wouldprevent,impairormateriallydelaytheconsummationoftheOfferortheMerger.Thedefinitionof“MaterialAdverseEffect”excludesthefollowingfromconstitutingorbeingtakenintoaccountindeterminingwhethertherehasbeen,orwouldreasonablybeexpectedtobeaMaterialAdverseEffect:
(i) anynational,international,foreign,domesticorregionaleconomic,financial,socialorpoliticalconditions(includingchangestherein)ingeneral;
(ii) changesinanyfinancial,debt,credit,capitalorbankingmarketsorconditions(includinganydisruptionthereof);
(iii) changesininterest,currencyorexchangeratesorthepriceofanysecurityormarketindex;
(iv) changesorproposedchangesinlegalorregulatoryconditions,includingchangesinlaw,generallyacceptedaccountingprinciplesorotheraccountingprinciplesorrequirements,orstandards,interpretationsorenforcementthereof;
(v) changesintheindustryinwhichReisoranyofitssubsidiariesoperates(oranysegmentorsub-segmentthereof);
(vi) changesinanycommoditymarketsorconditions(includinganychangesinpriceoravailabilityorotherdisruptionsofanysuchmarketsorconditions);
(vii) anychangeinthemarketpriceortradingvolumeofanysecuritiesofReisoranyofitssubsidiaries,orthechangein,orfailureofReistomeet,orthepublicationofanyreportregarding,anyinternalorpublicprojections,forecasts,budgetsorestimatesoforrelatingtoReisoranyofitssubsidiariesforanyperiod,includingwithrespecttorevenue,margins,profit,earnings,cashfloworcashposition(itbeingunderstoodthattheunderlyingcausesofsuchchangeorfailuremay,iftheyarenototherwiseexcludedfromthedefinitionofMaterialAdverseEffect,betakenintoaccountindeterminingwhetheraMaterialAdverseEffecthasoccurred);
(viii) theoccurrence,escalation,outbreakorworseningofanyhostilities,war,policeaction,actsofterrorismormilitaryconflicts,whetherornotpursuanttothedeclarationofanemergencyorwar;
(ix) theexistence,occurrenceorcontinuationofanyforcemajeureevents,includinganyearthquakes,floods,hurricanes,tropicalstorms,firesor
othernaturalormanmadedisasters,anyepidemic,pandemicorothersimilaroutbreak(includinganynon-humanepidemic,pandemicorothersimilaroutbreak)oranyothernational,internationalorregionalcalamity;
(x) theexecution,announcement,performanceorexistenceoftheMergerAgreement,theidentityofParent,thetakingornottakingofanyactiontotheextentrequiredbytheMergerAgreementorthependencyorcontemplatedconsummationofthetransactionscontemplatedthereby,includinganyactualorpotentiallossorimpairmentofanycontractoranycustomer,supplier,partner,employeeorotherbusinessrelationduetoanyoftheforegoing;
(xi) compliancebyReisanditssubsidiarieswiththetermsoftheMergerAgreement,includingthefailuretotakeanyactionexplicitlyrestrictedbytheMergerAgreement;
(xii) anyactiontaken,ornottaken,withtheexpresspriorwrittenconsentofParent;
(xiii) certainlimitedmattersdisclosedtoParentwhicharepermittedasexceptionstotheinterimoperatingcovenants;or
(xiv) anyactiontakenbyParent,itsAffiliatesoranyoftheirrespectiverepresentativesafterthedatehereof.
However,theexceptionssetforthinsubclauses(i),(ii),(iii),(iv),(v),(viii)or(ix)abovewillnotapplytotheextentthatsuchevent,condition,change,occurrenceordevelopmentofastateofcircumstancesorfactshas
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amateriallydisproportionateeffectonReisanditssubsidiaries,takenasawhole,comparedtoothersimilarlysituatedparticipantsintheindustryinwhichReisoranyofitssubsidiariesoperates.
IntheMergerAgreement,ParentandPurchaserhavemaderepresentationsandwarrantiestoReiswithrespectto:
• corporatematters,suchasorganization,standing,powerandauthority;
• authorityandenforceabilityrelativetotheMergerAgreement;
• requiredconsentsandapprovals,andnoviolationsoflawsoragreements;
• capitalizationandinterimoperationsofPurchaser;
• sufficiencyoffundstoconsummatetheOfferandtheMerger;
• absenceoflitigation;
• broker’sfeesandexpenses;and
• independentinvestigationregardingReis.
SomeoftherepresentationsandwarrantiesintheMergerAgreementmadebyParentandPurchaserarequalifiedasto“materiality”or“ParentMaterialAdverseEffect.”“ParentMaterialAdverseEffect”meansanyevent,condition,change,occurrenceordevelopmentofastateofcircumstancesorfactsthat,individuallyorwhentakentogetherwithallotherevents,conditions,changes,occurrencesordevelopmentsofastateofcircumstancesorfacts,wouldprevent,impairormateriallydelayParentfromconsummatingtheMergerandtheothertransactionscontemplatedbytheMergerAgreement.
NoneoftherepresentationsandwarrantiesofthepartiestotheMergerAgreementcontainedintheMergerAgreementorinanyschedule,instrumentorotherdocumentdeliveredpursuanttotheMergerAgreementwillsurvivetheEffectiveTime.
AccesstoInformation.Subjecttocertainlimitedexceptions,fromthedateoftheMergerAgreement,Reiswill,andwillcauseitssubsidiariesto,provideParentandParent’sdirectors,officers,employees,consultants,accountants,legalcounsel,investmentbankersorotherfinancialadvisors,agentsorotherrepresentatives(collectively,“Representatives”)accessatreasonabletimesuponpriorwrittennoticetotheofficers,employees,properties,booksandrecordsofReisanditssubsidiariesandfurnishpromptlysuchinformationconcerningReisanditssubsidiariesasParentmayreasonablyrequest.
NoticeofCertainEvents.ReisandParenthaveagreedtopromptlynotifytheotherof(i)anynoticeorothercommunicationreceivedfromanypersonallegingthattheconsentofsuchpersonisormayberequiredinconnectionwiththeTransactions;(ii)anynoticeorothercommunicationfromanygovernmentalbodyinconnectionwiththeTransactions,(iii)anylegalproceedingrelatingtotheTransactions;(iv)thematerialfailureofanypartytocomplywithorsatisfyanycovenantoragreementintheMergerAgreement,ineachcasesuchthattheconditionssetforthintheMergerAgreementwouldnotbesatisfiedorwouldgiverisetoarightatermination;or(v)anychangeoreventthathashadorwouldreasonablybeexpectedtohaveaMaterialAdverseEffectorParentMaterialAdverseEffect,asapplicable,orwouldreasonablybelikelytoresultinthefailureofanyoftheconditionssetforthintheMergerAgreement.
ConductofBusinessPendingtheMerger.Reishasagreedthat,fromthedateoftheMergerAgreementuntiltheearlieroftheEffectiveTimeandtheterminationoftheMergerAgreementpursuanttoitsterms,exceptasrequiredbytheMergerAgreementorrequiredbyapplicablelegalrequirements,asconsentedtoinwritingbyParent(whichconsentmaynotbeunreasonablywithheld,conditionedordelayed)orasdisclosedpriortoexecutionoftheMergerAgreementinReis’sconfidentialdisclosureletter,itwill,andwillcauseeachofitssubsidiariesto,(i)conductitsoperationsinallmaterialrespectsintheordinarycourseofbusinessconsistentwith
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pastpractice,(ii)usecommerciallyreasonableeffortstopreserveintactitsmaterialassets,properties,contracts,licensesandbusinessorganizationandtopreservesatisfactorybusinessrelationshipswithcustomers,suppliers,vendors,employeesandothershavingmaterialbusinessdealingswithReisand(iii)managecashintheordinarycourseofbusinessconsistentwithpastpractice.Inaddition,Reisanditssubsidiarieswillnot,amongotherthingsandsubjecttospecifiedexceptions(includingspecifiedordinarycourseexceptions):
• amend,modify,waive,rescindorotherwisechangeanyoftheReisorganizationaldocumentsoranycharter,bylaws,limitedliabilitycompanyagreement,partnershipagreementorequivalentorganizationaldocumentsofanysubsidiaryofReis;
• authorize,make,declare,setasideorpayanydividendordistributiononanysharesofitscapitalstockotherthandividendsanddistributionsto
ReisbywhollyownedsubsidiariesofReis,andotherthanregularquarterlycashdividendsinrespectoftheSharesnottoexceed$0.19perShareandwithrecorddatesandpaymentdatesforsuchdividendsconsistentwithpastpractice,subjecttocompliancewithapplicablelaw;
• adjust,split,combineorreclassifyanySharesorotherequityinterests;
• redeem,purchaseorotherwiseacquireanySharesoranysecuritiesconvertibleorexchangeableintoorexercisableforanyShares;
• grantanypersonanyright,warrantoroptiontoacquireanyShares;
• issue,grant,transfer,deliversell,subjecttoanylienordisposeofanyadditionalSharesoranysecuritiesconvertibleorexchangeableintoorexercisableforanyShares(otherthanpursuanttothetermsofexistingcompanyequityawards);
• increasethecompensation(includingbonusopportunities)orbenefitspayableortobecomepayabletoanyofitsdirectors,officersor
employees,exceptforincreasesforemployeesotherthanexecutiveofficersinsalaryandhourlywagerates,annualbonustargetsorbenefitsofsuchemployeesintheordinarycourseofbusiness;
• establish,adopt,enterintoormateriallyamend,reneworterminateanycollectivebargainingagreement,companybenefitplanoranyemployeebenefitplan;
• grantanyseveranceorterminationpay,unlessotherwiserequiredpursuanttoanycompanybenefitplan;
• executeanyemployment,deferredcompensationorothersimilaragreement(oranymaterialamendmenttoanysuchexistingagreement)withanydirector,officeroremployee;
• provideanynewmaterialbenefittoanyofthedirectors,officersoremployees;
• hireorengage,oroffertohireorengage,anyemployees,independentcontractors,orconsultantsexceptintheordinarycourseofbusiness;
• terminateanyemployeesinapositionofVice-Presidentorhigherotherthanforcause(whichshallinclude,fortheavoidanceofdoubt,poorperformance);
• adoptaplanoragreementof,orresolutionsprovidingfororauthorizing,completeorpartialliquidation,dissolution,merger,consolidation,restructuring,recapitalizationorotherreorganization
• acquireanybusiness,assetsorcapitalstock,exceptforanysuchtransactionthatisbetweenReisandanyofitswhollyownedsubsidiariesorbetweenanysuchwhollyownedsubsidiariesorintheordinarycourseofbusiness;
• acquireanyownershipinterestinanyrealpropertyorterminate(otherthaninaccordancewithitsterms)orenterintoanyassignment,transfer,lease,sublease,license,purchaseandsaleoroptionagreementoranyotheragreementforrealproperty;
• sell,assign,lease,license,transfer,pledge,encumber,grant,disposeoforsubjecttoalienanymaterialReisassets;
• waive,abandon,allowtolapseorfailtorenewanyintellectualproperty;
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• includeanyopensourcesoftwareordatainanyproductsorservicesofReisoritssubsidiaries(exceptpursuanttoopensourcelicenseswith
broadlypermissivetermsthatimposenosubstantiveobligationsonthelicensee,suchastheApache2.0licenseagreement),orsubjectinganyintellectualpropertytoopensourcelicenseterms;
• makeanysubstantiveadversechangestocybersecurityandprivacypolicies,practicesandmeasures;
• incur,assumeorguaranteeanyindebtedness;
• makeanyloansoradvances;
• makeorrevokeanymaterialtaxelection,fileanymaterialamendedtaxreturn,surrenderanyrighttoclaimamaterialrefundoftaxes,orenter
intoanysettlement,compromiseorclosingagreementwithrespecttoanymaterialtaxliability,ineachcase,otherthanintheordinarycourseofbusinessorasrequiredbyGAAPorapplicablelaw;
• changeanymaterialaccountingpoliciesorproceduresofReisexceptforsuchchangesthatarerequiredbyGAAPorapplicablelaw;
• settleorcompromiseanylegalactionorotherclaimassertedbyathirdparty,otherthansettlementsorcompromisesthatresultsolelyin
monetaryobligationspursuanttowhichthemonetarypaymentsrequiredtobemadethatarenotcoveredbyReis’sinsurancepoliciesdonotexceed$2millionintheaggregate;
• commencecertainmateriallegalactions;
• amendormodifyinanymaterialrespect,waiveanymaterialrightsunder,terminate,replaceorrelease,settleorcompromiseanymaterialclaimorliabilityorobligationunder,anymaterialcontractorleaseorenterintoanymaterialcontract;
• amendormodifyinanymaterialrespect,waiveanymaterialrightsunder,terminate,replaceorrelease,settleorcompromiseanymaterialclaimorliabilityorobligationunder,anyaffiliatedpartycontractorenterintoanyaffiliatedpartycontract;
• makeorauthorizecapitalexpendituresinexcessofthetotalaggregateamountssetforthinReis’scapitalexpensebudgetmadeavailabletoParentpriortothedateoftheMergerAgreement,exceptfor(i)capitalexpendituresthatdonotexceed$50,000intheaggregateduringanyfiscalquarteror(ii)capitalexpendituresfortherepairorreplacementofassetssubjecttoacasualtyorcondemnationeventortotheextentsuchcapitalexpenditureismadewith,orsubsequentlyreimbursedoutof,insuranceofotherproceedsrelatingtoanycasualtyorcondemnationevent;
• failtorenewormaintainmaterialexistinginsurancepoliciesormaterialcomparablereplacementpolicies;or
• authorize,agreeorcommittodoanyoftheforegoing.
AntitrustLaws.EachofReis,ParentandPurchaserhasagreedtousereasonablebesteffortstoaspromptlyaspracticable,(i)obtainanyconsents,approvalsorotherauthorizations,andmakeanyfilingsandnotifications,requiredinconnectionwiththeTransactions,and(ii)makeanyothersubmissionseitherrequiredorreasonablydeemedappropriatebyParentorReisinconnectionwiththeTransactions,undertheSecuritiesAct,theExchangeAct,theHSRAct,theMGCL,theNasdaqStockMarketrulesandregulationsandanyotherapplicablelaw.ParentandReisshallcooperateandconsultwitheachotherinconnectionwiththemakingofallsuchfilingsandnotifications,includingbyprovidingcopiesofallrelevantdocuments(excepttotheextentcontainingconfidentialinformationofsuchparty)tothenon-filingpartyanditsRepresentativesbeforefiling.
EachofReisandParenthasagreedtoaspromptlyaspracticable,butinanyeventwithinten(10)businessdaysfollowingtheexecutionanddeliveryoftheMergerAgreement,fileorcausetobefiledwiththeUnitedStatesFederalTradeCommission(the“FTC”)andtheUnitedStatesDepartmentofJustice(the“DOJ”)thenotification
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andreportformsrequiredfortheTransactions(whichsuchfilingsshallrequestearlyterminationoftheapplicablewaitingperiodundertheHSRAct)andpromptlyfileorcausetobefiledanysupplementalinformationrequestedinconnectiontherewithpursuanttotheHSRAct.EachofReisandParentwillaccordinglymakethefilingsreferencedintheforegoingsentenceonthedatehereof.ParentandReiswillfurnishtotheothersuchnecessaryinformationandreasonableassistanceastheothermayrequestinconnectionwithitspreparationofanyfilingthatisnecessaryundertheHSRAct.
Parent,followingconsultationwithReisandaftergivingdueconsiderationtoitsviewsandactingreasonablyandingoodfaith,willhavetherighttodirectallmatterswithrespecttoanygovernmentalbodyinconnectionwithobtaininganynecessaryconsents,clearancesorapprovalsunderantitrustlaws(includingtheHSRAct)consistentwithitsobligationshereunder,andwillhavetheprincipalresponsibilityfordevisingandimplementingthestrategyfor,obtaininganyconsents,clearancesorapprovalsunderantitrustlaws(includingtheHSRAct),andwilltaketheleadinallmeetingsandcommunicationswithanygovernmentalbodyinconnectionwithobtaininganynecessaryconsents,clearancesorapprovalsunderantitrustlaws(includingtheHSRAct).
Withoutlimitingthegeneralityoftheforegoing,Parentshalltakestepsnecessaryto(i)resolve,avoid,oreliminateimpedimentsorobjections,ifany,thatmaybeassertedwithrespecttotheTransactionsbyanyGovernmentalAuthority(asdefinedbelow),and(ii)vigorouslycontest(includingbymeansoflitigation)(x)anylegalactions,arbitrations,charges,complaints,grievances,audits,investigations,litigations,suitsorothercivilorcriminalproceedingsorinvestigationbrought,orthreatenedtobebrought,byanyGovernmentalAuthorityoranyotherPerson(asdefinedbelow)seekingtoenjoin,restrain,prevent,prohibitormakeillegaltheconsummationofanyoftheTransactionsorseekingdamagesortoimposeanytermsorconditionsinconnectionwiththeTransactions,and(y)anyorder,decision,judgment,writ,injunction,decree,orawardthatenjoins,restrains,prevents,prohibitsormakesillegaltheconsummationofanyoftheTransactionsorimposesanydamages,termsorconditionsinconnectionwiththeTransactions.Parentshall,andshallcauseitssubsidiariesandAffiliatesto,(A)propose,negotiate,committoandeffect,byconsentdecree,holdseparateordersorotherwise,thesale,divesture,disposition,licenseofanyassets,properties,businesses,products,productlines,rights,orservicesofParentanditssubsidiariesandaffiliates,orReisanditssubsidiariesoranyinterestorintereststherein,and(B)otherwisetakeorcommittotakeactionsthataftertheClosingwouldlimitParent’soritssubsidiaries’oraffiliates’freedomofactionwithrespectto,oritsortheirabilitytoretain,oneormoreoftheassets,properties,businesses,productlines,relationshipsorservicesofParentanditssubsidiariesandaffiliates,Reisanditssubsidiariesoranyinterestorintereststherein,ineachcaseof(A)and(B)toobtainanyclearancerequiredundertheHSRActoranyotherapproval,consentorauthorizationnecessaryunderapplicableLawfortheconsummationoftheTransactions;provided,however,thatanysuchactionineachcaseof(A)and(B),(i)shallbeconditionedupontheconsummationoftheTransactionsand(ii)wouldnot,orwouldnotreasonablybeexpectedto,individuallyorintheaggregate,(x)haveamaterialadverseeffectonReisanditssubsidiaries,takenasawhole,orParentanditssubsidiaries,takenasawhole(withmaterialitybeingmeasuredbasedonthesizeofReisanditssubsidiaries,takenasawhole)or(y)materiallyimpairtheoverallbenefitsreasonablyexpectedtoberealizedbyParentfromtheconsummationoftheTransactions,takingintoaccount,amongotherthings,effectsontheassets,businessandoperationsandrelationshipsofbothParentanditssubsidiariesandofReisanditssubsidiaries(withmaterialitybeingmeasuredbasedonthesizeofReisanditssubsidiaries).
Further,Parentshallnot,andshallcauseitsaffiliatesnotto,acquireoragreetoacquirebymergingorconsolidatingwith,orbypurchasingasubstantialportionoftheassetsoforequityin,anyPerson,orotherwiseacquireoragreetoacquireanyassets,iftheenteringintoofadefinitiveagreementrelatingtoortheconsummationofsuchacquisition,mergerorconsolidationwouldreasonablybeexpectedto(i)imposeanymaterialdelayintheobtainingof,ormateriallyincreasetheriskofnotobtaining,anyauthorizations,consents,orders,declarationsorapprovalsofanyGovernmentalAuthoritynecessarytoconsummatetheTransactionsortheexpirationorterminationofanyapplicablewaitingperiod,(ii)materiallyincreasetheriskofanyGovernmentalAuthorityenteringanorderprohibitingtheconsummationoftheTransactions,or(iii)materiallydelaytheconsummationoftheTransactions.
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EmployeeMatters.Parenthasagreedthat,foraperiodcommencingattheEffectiveTimeandendingontheoneyearanniversaryoftheEffectiveTime,itwill,orwillcausetheSurvivingCorporationoranyoftheirrespectiveaffiliatesto,providetoeachindividualwho,immediatelybeforetheEffectiveTimeisanemployeeofReisoranyofitssubsidiaries(each,a“ContinuingEmployee”)with(i)atleastthesamesalaryorhourlywagerateprovidedtosuchContinuingEmployeeimmediatelybeforetheEffectiveTime,(ii)atleastthesameshort-term(annualormorefrequent)cashbonusopportunityprovidedtosuchContinuingEmployeeimmediatelybeforetheEffectiveTime,providedthat,exceptasdescribedbelow,theperformancemetricsandothertermsandconditionsapplicabletothecashbonusesmaybemodified,(iii)tosubstantiallyallContinuingEmployees,atleastthesamecommissionopportunityprovidedtosuchContinuingEmployeesimmediatelybeforetheEffectiveTime,providedthatthestructureofthecommissionarrangementsmaybemodified,and(iv)othercompensationandbenefitsthatarenotmateriallylessfavorableintheaggregatethanthoseprovidedtosuchContinuingEmployeeasofthedateoftheMergerAgreement.
Parenthasalsoagreedthatitwill,orwillcausetheSurvivingCorporationoranyofParent’sortheSurvivingCorporation’srespectiveaffiliates,tohonorallseverance,changeofcontrolandsimilaragreementsdisclosedtoParentinaccordancewiththeirtermsasineffectasofthedateoftheMergerAgreement.UnderthetermsoftheMergerAgreement,withrespecttoReis’sannualcashincentivecompensationplan(the“AIP”)forthe2018performanceyear,ParenthasagreedtopaybonusestothoseContinuingEmployeeswhoparticipateintheAIPimmediatelypriortotheEffectiveTimeinaccordancewiththetermsoftheAIPandtomakedeterminationsofperformanceachievementandbonuspaymentamountsforthe2018performanceyearinamannerconsistentwiththeCompany’spastpractices.TheAIPbonuspaymentsforthe2018performanceyear,ifany,willbemadetothoseeligibleContinuingEmployeesatthetimeReishashistoricallypaidannualbonuses,providedthatifaneligibleContinuingEmployeeisterminatedwithoutcausefollowingtheclosingoftheMergerbutpriortothetimetheAIPbonuspaymentsforthe2018performanceyeararemade,suchContinuingEmployeewillcontinuetobeeligibleforaproratedAIPbonuspaymentforthe2018performanceyear,basedontheamountoftimesuchContinuingEmployeewasemployedin2018,payableatthesametimeastheAIPbonusesarepaidtoothereligibleemployeesinrespectofthe2018performanceyear.
WithrespecttoanyemployeebenefitplanorarrangementofParent,theSurvivingCorporationandtheirrespectiveaffiliates,includingseveranceandvacationorotherpaid-timeoffbenefitsmadeavailabletoanyContinuingEmployeeaftertheEffectiveTime(otherthananydefinedbenefitpensionplanandanyequityplan)(the“NewPlans),Parentwillprovidethat(i)eachContinuingEmployeeshallreceivecreditforsuchContinuingEmployee’syearsofservicewithReisanditssubsidiariesbeforetheEffectiveTimeforpurposesofeligibilitytoparticipateinandvestingthereunder(butnotbenefitaccrual)(excepttotheextentsuchcreditwouldresultinaduplicationofaccrualofbenefitsorwithrespecttoNewPlanscreatedaftertheEffectiveTimeforwhichsimilarlysituatedemployeesofParentortheapplicableaffiliatedonotreceivepastservicecredit),(ii)totheextentcommerciallypracticable,attheEffectiveTime,anywaitingtimelimitationinanyNewPlaniswaivedtotheextentsuchwaitingtimewassatisfiedunderthesimilarorcomparablecompanybenefitplaninwhichsuchContinuingEmployeeparticipatedimmediatelybeforetheEffectiveTime(suchplans,collectively,the“OldPlans),and(iii)totheextentcommerciallypracticable,allpre-existingconditionexclusionsorlimitationsandactively-at-workrequirementsofeachNewPlanbewaivedorsatisfiedforsuchContinuingEmployeeandhisorhercovereddependentstotheextentwaivedorsatisfiedundertheanalogousOldPlanasoftheEffectiveTime.
PriortotheEffectiveTime,Reiswilltakesuchcorporateactionsasarenecessarytoterminateanycompanybenefitplanwhichisaqualifiedretirementplanwitha401(k)deferralfeature,effectiveasofimmediatelypriortotheEffectiveTimeandcontingentupontheEffectiveTimeoccurring,andsuchterminationshallbepursuanttoboardresolutionsandotheractionsrequiredorappropriateunderthetermsofsuchcompanybenefitplan.
Directors’andOfficers’IndemnificationandInsurance.TheMergerAgreementprovidesforindemnification,advancementofexpensesandexculpationfromliabilitiesinfavorofthecurrentandformerdirectors,officersandemployeesofReisoranyofitssubsidiaries(the“IndemnifiedParties”).Parenthasagreedthatallrightstoindemnification,exculpationandadvancementofexpensesasprovidedinReis’sorganizational
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documentsoragreementsofReisoritssubsidiariesandcertainindemnifiedpartieswillcontinueinfullforceandeffectforaperiodofnotlessthansix(6)years(plusninety(90)daysaftertheEffectiveTime(the“IndemnityPeriod”),or,iflonger,forsuchperiodasissetforthinanyapplicableagreement.
Inaddition,ParenthasagreedthatduringtheIndemnityPeriodParentandtheSurvivingCorporationwillindemnifyallIndemnifiedPartiestothefullestextentpermittedbyapplicableLawwithrespecttoallactsandomissionsarisingoutoforrelatingtotheirservicesasdirectors,officersoremployeesofReis,itsSubsidiariesoranotherPerson,ifsuchIndemnifiedPartyisorwasservingasadirector,officeroremployeeofsuchotherPersonattherequestofReis,whetherassertedorclaimedbefore,atorafter,oroccurringbeforeorat,theEffectiveTime.IfanyIndemnifiedPartyisorbecomesinvolvedinanyLegalActioninconnectionwithanymattersubjecttoindemnification,thenParentshallcausetheSurvivingCorporationtoadvanceasincurredanycostsorexpenses(includinglegalfeesanddisbursements),judgments,fines,losses,claims,damagesorLiabilities(“Damages”)arisingoutoforincurredinconnectionwithsuchLegalAction,subjecttotheSurvivingCorporation’sreceiptofanundertakingbyoronbehalfofsuchIndemnifiedParty,ifrequiredbytheMGCL,torepaysuchDamagesifitisultimatelydeterminedunderapplicableLawthatsuchIndemnifiedPartyisnotentitledtobeindemnified.IntheeventofanysuchLegalAction,(i)eachofParentandtheSurvivingCorporationshallcooperatewiththeIndemnifiedPartyinthedefenseofanysuchLegalActionand(ii)neitherParentnortheSurvivingCorporationshallsettle,compromiseorconsenttotheentryofanyjudgment,ineachcaseonbehalfofanIndemnifiedParty,inanyLegalActionpendingorthreatenedinwritingtowhichanIndemnifiedPartyisaparty(andinrespectofwhichindemnificationcouldbesoughtbysuchIndemnifiedPartyhereunder),unlesssuchsettlement,compromiseorconsentincludesanunconditionalreleaseofsuchIndemnifiedPartyfromallliabilityarisingoutofsuchLegalAction
FortheIndemnityPeriod,ParentandtheSurvivingCorporationhaveagreedtomaintainthecurrentpoliciesofdirectors’andofficers’liabilityinsurancemaintainedbyReisorpoliciesofatleastthesamecoverageandamountscontainingtermsandconditionsthatarenolessadvantageouswithrespecttoclaimsarisingoutoforrelatingtoeventswhichoccurredbeforeorattheEffectiveTime(includinginconnectionwiththenegotiationandexecutionoftheMergerAgreementandtheconsummationoftheTransactionsorotherwise)solongasParentandtheSurvivingCorporationarenotrequiredtopayanannualpremiuminexcessof350%ofthelastannualpremiumpaidbyReisforsuchinsurancebeforethedateofthisAgreement(such350%amountbeingthe“MaximumPremium).IfParentortheSurvivingCorporationareunabletoobtaintheinsurancedescribedinthepriorsentenceforanamountlessthanorequaltotheMaximumPremium,thenParentandtheSurvivingCorporationwill,jointlyandseverally,insteadobtainasmuchcomparableinsuranceaspossibleforanannualpremiumequaltotheMaximumPremium.Notwithstandingtheforegoing,inlieuofsucharrangements,beforetheEffectiveTime,Reiswillbeentitledtopurchasea“tail”directors’andofficers’liabilityinsurancepolicycoveringthemattersdescribedaboveand,ifReiselectstopurchasesuchapolicybeforetheEffectiveTime,thenParentandtheSurvivingCorporation’sobligationswillbesatisfiedsolongasParentandtheSurvivingCorporationcausesuchpolicytobemaintainedineffectforaperiodofsix(6)yearsfollowingtheEffectiveTime;provided,thatReiswilluseitsreasonablebesteffortstoapplyanyreturnedpremiumreceivedbyReisinconnectionwithReis’scurrentpoliciesofdirectors’andofficers’liabilityinsuranceasaresultoftheTransactionscontemplatedbytheMergerAgreementtothecostofsuch“tail”policy.
ReasonableBestEfforts.EachofReis,PurchaserandParenthasagreedto,andtocausetheirrespectiveaffiliatesto,usereasonablebesteffortstotake,orcausetobetaken,allactionsandtodo,orcausetobedone,allthingsnecessary,properoradvisabletoensurethattheconditionssetforthintheMergerAgreement,includingtheOfferConditions,aresatisfiedandtoconsummatetheTransactionsaspromptlyaspracticable.
StockholderLitigation.ReiswillkeepParentreasonablyinformedwithrespecttothedefenseorsettlementofanylitigationbroughtbystockholdersofReisagainstReis,itsdirectorsand/oritsofficersrelatingtotheTransactionsandReisandwillnotsettleanysuchlitigationorconsenttothesamewithoutthepriorwrittenconsentofParent(suchconsentnottobeunreasonablywithheld,delayedorconditioned).
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Section16Matters.PriortotheOfferAcceptanceTime,Reiswill(andwillbepermittedto)takesuchstepsasmaybereasonablyrequiredtocausedispositionsofReis’sequitysecurities(includingderivativesecurities)pursuanttotheTransactionsbyeachindividualwhoisadirectororofficerofReistobeexemptunderRule16b-3promulgatedundertheExchangeAct.
StockExchangeDelistingandDeregistration.PriortotheEffectiveTime,ReiswillcooperatewithParentanduseitsreasonablebesteffortstotake,orcausetobetaken,allactions,anddo,orcausetobedone,allthingsreasonablynecessaryonitspartunderapplicablelawsandrulesandpoliciesoftheNasdaqStockMarkettoenablethede-listingbytheSurvivingCorporationoftheSharesfromtheNasdaqStockMarketandthederegistrationoftheSharesundertheExchangeAct,aspromptlyaspracticableaftertheEffectiveTime,andinanyeventnomorethanten(10)daysthereafter.
Financing.ParentshallkeepReisinformedonareasonablycurrentbasisofthestatusoftheobtainingoffundsnecessarytoconsummatetheTransactions,includingforthepaymentoftheaggregateamountoftheOfferPrice,otheramountspayablepursuanttotheMergerAgreement,anyfeesandexpensesoforpayablebyParent,PurchaserortheSurvivingCorporationinconnectionwiththeTransactionsandanyotheramounts,includingindebtednessofReisanditssubsidiaries,requiredtobepaidinconnectionwith,orasaresultof,theconsummationoftheTransactions.ParentandPurchaseracknowledgeandagreethattheobtainingofsuchfundsisnot,andshallnotbedeemedtobe,aconditiontotheclosingoftheMerger.
NoSolicitation.Exceptasdescribedbelow,Reiswillnot,andwillcauseitssubsidiariesnotto,andReiswilldirectitsRepresentativesnotto,directlyorindirectly:
(i) solicit,initiate,knowinglyfacilitateorknowinglyencouragethemakingofanyproposalorofferthatconstitutes,orwouldreasonablybeexpectedtoleadto,aTakeoverProposal(asdefinedbelow)oranypotentialTakeoverProposal;
(ii) enterintoorparticipateinanydiscussionswithanyPerson(asdefinedbelow)regarding,orforthepurposeofsolicitingorknowingly
encouragingorfacilitating,aTakeoverProposaloranyproposalthatwouldreasonablybeexpectedtoleadtoaTakeoverProposal(otherthantostatethatReisisnotpermittedtohavediscussionsexceptinaccordancewiththetermsoftheMergerAgreement);
(iii) approve,recommend,executeorenterintoanyletterofintent,agreementinprincipleoranyContractprovidingforaTakeoverProposal,orthatwouldreasonablybeexpectedtoleadtoaTakeoverProposal(otherthananAcceptableConfidentialityAgreement(asdefinedbelow));or
(iv) furnishtoanyPersonanynon-publicinformationregardingReisoranyofitsSubsidiariesinconnectionwithanyTakeoverProposaloranypotentialTakeoverProposal.
Reiswill,andwillcauseeachofitssubsidiariesto,andReisshalldirecttheRepresentativesofReisanditssubsidiariesto,immediatelyceaseandterminateanyexistingsolicitation,discussionornegotiationheretoforeconductedbyReis,anyofitssubsidiariesortheirrespectiveRepresentativeswithanyperson(otherthanParentanditsaffiliates)withrespecttoanyTakeoverProposal,oranyproposalthatwouldreasonablybeexpectedtoleadtoaTakeoverProposal.
Reiswill,(i)aspromptlyasreasonablypracticable(andinanyeventwithintwo(2)businessdays)followingthedateoftheMergerAgreement,requestthepromptreturnordestruction(totheextentprovidedforbytheapplicableconfidentialityagreement)ofallinformationordocumentspreviouslyfurnishedtoanyperson(otherthantoParent,itsaffiliatesandtheirrespectiveRepresentatives)thathasmadeorhasexploredaTakeoverProposaltotheextentsuchrequestwasnotmadebyReispriortothedatehereof,and(ii)notreleaseanypersonfrom,orterminate,waive,amendormodifyanyprovisionof,orgrantpermissionunder,anyconfidentialityorstandstillprovisioninanyagreementtowhichReisoranyofitssubsidiariesispartyandusereasonablebesteffortstoenforcetheprovisionsofanysuchagreements,exceptasexpresslypermittedbelow.
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Notwithstandingtheabovelimitations,ifReisreceivesafterthedateoftheMergerAgreementandpriortotheOfferAcceptanceTimeabonafidewrittenTakeoverProposalthatdidnotresultfromabreachofthenon-solicitationprovisionsoftheMergerAgreementandtheReisBoarddetermines,afterconsultationwithitsfinancialadvisorandoutsidelegalcounsel,thatsuchanTakeoverProposalconstitutesorcouldreasonablybeexpectedtoleadto,aSuperiorProposal(asdefinedbelow)andthatthefailuretotakesuchactionwouldbeinconsistentwithitsfiduciarydutiesunderapplicablelaw,Reismaytakethefollowingactions:
(x) furnishaccessandnon-publicinformationwithrespecttoReisandanyofitssubsidiariestothepersonwhohasmadesuchTakeoverProposal(andtheirpotentialsourcesoffunding)pursuanttoanAcceptableConfidentialityAgreement,providedthatanywrittenmaterialnon-publicinformationprovidedunderthisclause(x)shallhavepreviouslybeenprovidedtoParentorshallbeprovidedtoParentsubstantiallyconcurrently(andinanyeventwithintwenty-four(24)hours)withthetimeitisprovidedtosuchperson(oranyoftheirpotentialsourcesoffunding);and
(y) participateorengageindiscussionsandnegotiationsregardingsuchTakeoverProposal.
FromandafterthedateoftheMergerAgreement,Reiswillpromptly(butinanyeventwithintheearlierofone(1)businessdayandforty-eight(48)hours)notifyParentinwritingof(i)thereceiptofanyTakeoverProposal,specifyingthematerialtermsandconditionsthereof(andincludingacopythereof,ifsuchproposalisinwriting)andtheidentityofthepartymakingtheproposal,and(ii)anymaterialmodificationstothefinancialorothermaterialtermsandconditionsofsuchTakeoverProposal.
“TakeoverProposal”meansanyproposaloroffer(includinganyamendmentormodificationtoanyexistingproposaloroffer)fromanyPersonor“group”(asdefinedinSection13(d)oftheExchangeAct),otherthanParentoranyofitsaffiliates,for(i)amerger,consolidationorbusinesscombinationrepresenting20%ormoreoftheconsolidatedassetsofReisanditssubsidiaries,takenasawhole,(ii)asale,lease,exchange,transferorotherdisposition,inasingletransactionorseriesofrelatedtransactions,of20%ormoreoftheconsolidatedassetsofReisanditssubsidiaries,takenasawhole,or(iii)apurchaseorsaleofsharesofcapitalstockorothersecurities,inasingletransactionorseriesofrelatedtransactions,representing20%ormoreofthevotingpowerofthecapitalstockofReis,includingbywayofatenderofferorexchangeoffer.
“SuperiorProposal”meansabonafidewrittenTakeoverProposalwhichisreceivedbyReisafterthedatehereofotherthanastheresultofaviolationofthenon-solicitationprovisionsoftheMergerAgreementandwhichtheReisBoarddeterminesingoodfaith,afterconsultationwithitslegalandfinancialadvisorsandtakingintoaccountallfinancial,legal,regulatoryandanyotheraspectsoftheTakeoverProposal,thepersonmakingtheproposalandotheraspectsoftheTakeoverProposalthattheReisBoarddeemsrelevant,ismorefavorable,fromafinancialpointofview,tothestockholdersofReisthantheTransactions(includinganyamendmentstotheMergerAgreementproposedinwritingbyParent);providedthatforpurposesofthedefinitionof“SuperiorProposal”thereferencesto“20%”inthedefinitionofTakeoverProposalshallbedeemedtobereferencesto“50%.”
“AcceptableConfidentialityAgreement”meansaconfidentialityagreementbetweenReisandaPersonmakingaTakeoverProposal(and/oritsaffiliates)enteredintopriortothedatehereof,orifenteredintoonorafterthedatehereof,enteredintoonlyincompliancewiththeapplicableprovisionsoftheMergerAgreementandontermsnotmateriallylessfavorableintheaggregatetoReisthanthosecontainedintheconfidentialityagreement(exceptthatsuchconfidentialityagreement(i)neednotincludeastandstillorsimilarprovisionsand(ii)maycontainadditionalprovisionsthatexpresslypermitReistocomplywiththeapplicableprovisionsoftheMergerAgreement).
“Person”meansanynaturalperson,corporation,company,partnership,association,limitedliabilitycompany,limitedpartnership,limitedliabilitypartnership,trustorotherlegalentityororganization,includingaGovernmentalAuthority.
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“GovernmentalAuthority”means:(i)anyfederal,state,local,municipal,foreignorinternationalgovernmentorgovernmentalauthority,quasi-governmentalentityofanykind,regulatoryoradministrativeagency,governmentalcommission,department,board,bureau,agencyorinstrumentality,court,tribunal,arbitratororarbitralbody(publicorprivate)oranybodyexercisingorentitledtoexerciseanyadministrative,executive,judicial,legislative,police,regulatory,ortaxingauthorityorpowerofanynature,or(ii)anyself-regulatoryorganization.
NothingintheMergerAgreementshallprohibitReisfromcomplyingwithRules14d-9,14e-2andItem1012(a)ofRegulationM-ApromulgatedundertheExchangeAct,orfromissuinga“stop,lookandlisten”statementpendingdisclosureofitspositionthereunder,providedthattheReisBoardshallnoteffectanAdverseRecommendationChangeexceptassetforthbelow.
RecommendationChange.Asdescribedabove,andsubjecttotheprovisionsdescribedbelow,theReisBoardhasdeterminedtorecommendthatthestockholdersofReisaccepttheOfferandtendertheirSharestoPurchaserintheOffer.Theforegoingrecommendationisreferredtohereinasthe“CompanyBoardRecommendation.”TheReisBoardalsoagreedtoincludetheCompanyBoardRecommendationwithrespecttotheOfferintheSchedule14D-9andhaspermittedParenttorefertosuchrecommendationinthisOffertoPurchaseanddocumentsrelatedtotheOffer.
Exceptasdescribedbelow,priortotheEffectiveTimeortheterminationoftheMergerAgreementpursuanttoitsterms,neithertheReisBoardnoranycommitteethereofmay:
(i) withdraw,qualify,modifyoramend(orpubliclyproposetowithdraw,qualify,modifyoramend)theCompanyBoardRecommendationinanymanneradversetoParent;
(ii) adopt,approve,endorse,recommendordeclareadvisable(orpubliclyproposetoadopt,approve,endorse,recommendordeclareadvisable)aTakeoverProposal;
(iii) approve,recommendorallowReistoenterintoaletterofintentorcontractforaTakeoverProposal(otherthananAcceptableConfidentialityAgreemententeredintofollowingcompliancewiththenon-solicitationprovisionsoftheMergerAgreement;
(iv) failtoincludetheCompanyBoardRecommendationintheSchedule14D-9;
(v) afterpublicannouncementofaTakeoverProposal,failtopubliclyaffirmtheCompanyBoardRecommendationwithinthree(3)businessdaysafterawrittenrequestbyParenttodoso(provided,thatParentmaymakesuchrequestnomorethanone(1)timewithrespecttoanyTakeoverProposal,exceptthatParentmaymakeadditionalrequestsintheeventthatthereisamaterialchangeinthetermsof,oruponthepublicannouncementofthesatisfactionorfulfillmentofamaterialconditionto,suchTakeoverProposal);or
(vi) failtorecommendagainstanyTakeoverProposalthatisatenderofferorexchangeoffersubjecttoRegulation14DundertheExchangeAct
withinten(10)BusinessDaysafterthecommencementofsuchtenderofferorexchangeoffer(anyoftheforegoing,an“AdverseRecommendationChange”).
Notwithstandingtheforegoing,ifReisortheReisBoardreceives,atanytimepriortotheOfferAcceptanceTime,abonafidewrittenTakeoverProposalthatdidnotresultfromabreachoftheprovisionssummarizedhere,andReis’sBoarddeterminesingoodfaith(i)afterconsultationwithReis’soutsidelegalandfinancialadvisorsthatsuchTakeoverProposalconstitutesaSuperiorProposaland(ii)afterconsultationwithReis’soutsidelegalcounsel,thatinlightofsuchTakeoverProposal,afailuretotakesuchactionswouldbeinconsistentwiththedutiesofReis’sDirectorsunderapplicableLaw,Reis’sBoardmayterminatethisAgreementtoenterintoaContractwithrespecttosuchSuperiorProposalormakeanAdverseRecommendationChange,butonlyif:
(i) ReishasfirstgivenwrittennoticetoParentatleastfour(4)businessdayspriortoanysuchproposedterminationthatitispreparedtoterminate
theMergerAgreementtoenterintoacontractwithrespecttoaSuperiorProposal,whichnoticewillincludethematerialtermsandconditionsofthetransaction
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thatconstitutessuchSuperiorProposalandtheidentityofthepartymakingsuchSuperiorProposal,andwill,ifrequestedbyParent,havenegotiatedwithParentingoodfaithduringsuchfour(4)businessdayperiodregardingmodificationsofthetermsandconditionsoftheMergerAgreementproposedbyParentsothatsuchSuperiorProposalisnolongeraSuperiorProposal;and
(ii) Parentdoesnotmake,withinfour(4)businessdaysafterthereceiptofsuchnotice(itbeingunderstoodandagreedthatanymaterialchangetothefinancialorothermaterialtermsandconditionsofsuchSuperiorProposalshallrequireanadditionalnoticetoParentandanewtwo(2)businessdayperiod),abindingandirrevocablewrittenandcompleteproposalthattheReisBoarddetermines,afterconsultationwithitsfinancialadvisorandoutsidelegalcounsel,causestheTakeoverProposalthatconstitutedaSuperiorProposaltonolongerconstituteaSuperiorProposal.
Additionally,atanytimepriortotheOfferAcceptanceTime,theReisBoardmaymakeanAdverseChangeRecommendationif,inresponsetoanInterveningEvent(asdefinedbelow):
(i) theReisBoardhasconcluded,followingconsultationwithitsoutsidelegalcounsel,thatitsfailuretomakesuchAdverseRecommendationChangewouldbeinconsistentwiththedutiesoftheReisDirectorsunderapplicablelaw;and
(ii) atleastfour(4)businessdayspriortosuchAdverseRecommendationChange,ReiswillhaveprovidedtoParentnoticestatingthatanInterveningEventhasoccurredanddescribingsuchInterveningEventand,ifrequestedbyParent,negotiatedingoodfaithwithParentduringsuchfour(4)businessdayperiodregardingamodificationofthetermsandconditionsofthisAgreementsothattheTransactionsmaybeeffected.
“InterveningEvent”meansanymaterialevent,fact,developmentoroccurrencethatarisesafterthedateoftheMergerAgreementandmateriallyaffectsthebusiness,assetsoroperationsofReis(otherthananyevent,fact,developmentoroccurrenceresultingfromabreachoftheMergerAgreementbyReis)that(x)wasnotknownto,orreasonablyforeseeableby,theReisBoardasoforpriortothedatehereof,and(y)becomesknowntotheReisBoardpriortotheOfferAcceptanceTime,otherthan(a)changesintheShareprice,(b)anyTakeoverProposalor(c)thefactthatReisexceedsanyinternalorpublishedprojections,estimatesorexpectationsofReis’srevenue,earningsorotherfinancialperformanceorresultsofoperationforanyperiod.
Termination.TheMergerAgreementmaybeterminatedasfollows:
(i) atanytimebeforetheEffectiveTime,bymutualwrittenconsentofParentandReis;
(ii) byeitherParentorReis,iftheOfferAcceptanceTimehasnotoccurredbyJanuary29,2019(the“OutsideDate”);provided,thatthis
terminationrightwillnotbeavailabletoanypartywhosebreachofanycovenantoragreementofthisAgreementhasmateriallycontributedto,orresultedin,thefailureoftheOfferAcceptanceTimetohaveoccurredbysuchdate(suchtermination,an“OutsideDateTermination”);
(iii) byeitherParentorReisifanyorder,decision,judgment,writ,injunction,decree,orawardofanyfederalorstatecourtoftheUnitedStatesof
AmericaoranystatethereofpermanentlyenjoinsorotherwiseprohibitstheconsummationoftheOfferortheMerger,andsuchorderhasbecomefinalandnonappealable;
(iv) byeitherParentorReisifthewaitingperiod(andanyextensionthereof)applicabletotheconsummationoftheOfferandtheMergerundertheHSRActshallhaveexpiredorbeenterminated,andanyGovernmentalAuthorityofcompetentjurisdictionshallnothaveenacted,issued,promulgatedorenteredanyLawthatrestrains,enjoinsorotherwiseprohibits,norissuedanyorderwhichenjoinsorprohibitstheconsummationoftheOfferortheMerger,buttheMinimumTenderConditionshallnothavebeensatisfiedbyDecember29,2018;provided,thatnotwithstandingtheforegoing,therighttoterminatethisAgreementunderthissectionshallnotbeavailabletoanypartytotheMerger
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Agreement(andinthecaseofParent,Purchaser)whoatsuchtimeistheninmaterialbreachoftheirrespectiverepresentations,warranties,covenantsoragreementscontainedintheMergerAgreement;
(v) byParentfollowinganyAdverseRecommendationChange(an“AdverseRecommendationTermination”);
(vi) byReis,ifReisortheReisBoardreceives,afterthedateofMergerAgreementandatanytimepriortotheAcceptanceTime,abonafidewrittenTakeoverProposalthatdidnotresultfromabreachoftheprovisionsdescribedherein,andtheReisBoarddeterminesingoodfaith(i)afterconsultationwithReis’soutsidelegalandfinancialadvisorsthatsuchTakeoverProposalconstitutesaSuperiorProposaland(ii)afterconsultationwithReis’soutsidelegalcounsel,thatinlightofsuchTakeoverProposal,afailuretotakesuchactionswouldbeinconsistentwiththedutiesofReis’sDirectorsunderapplicableLaw,subjecttothetermsandconditionssummarizedunder“—RecommendationChange”above;
(vii) byParent(solongasneitherParentnorPurchaserisinmaterialbreachofanyrepresentation,warranty,covenantoragreementundertheMergerAgreement),ifReishasbreachedanyofitsrepresentations,warranties,covenantsoragreementscontainedintheMergerAgreement,whichbreach(i)wouldgiverisetothefailureofanyofthefollowingconditionsinclauses(A)—(E)belowand(ii)isnotcuredwithintwenty(20)businessdaysofreceivingwrittennoticefromParentofsuchbreach(suchtermination,a“ReisBreachTermination”):
(A) therepresentationsandwarrantiesofReisshallbetrueandcorrectinallrespects,otherthanthosein(B)—(D)assetforthbelow,withoutregardtoany“materiality,”“MaterialAdverseEffect”orsimilarqualificationscontainedinthem,atandasofthedateoftheMergerAgreementandatandasoftheOfferAcceptanceTimeasifmadeonandasoftheexpirationoftheOffer(exceptforrepresentationsandwarrantiesmadeasofaspecifieddate,theaccuracyofwhichshallbedeterminedasofthatdate),withonlysuchexceptionsaswouldnotindividuallyorintheaggregatereasonablybeexpectedtohaveaMaterialAdverseEffect;
(B) certainrepresentationsandwarrantiesofReisregardingitspowerandauthoritytoown,leaseandoperatetheassetsandpropertiesthatitpurportstoown,leaseandoperateandtocarryonitsbusinessasnowconducted,whichshallbetrueandcorrectinallmaterialrespectsasofthedateoftheMergerAgreementandatandasoftheexpirationoftheOffer,asthoughmadeonandasoftheexpirationoftheOffer;
(C) certainrepresentationsandwarrantiesofReisthat(i)itisdulyincorporated,validlyexistingandingoodstandingundertheLawsofitsjurisdictionofincorporation,(ii)thateachofReis’ssubsidiariesisdulyorganized,validlyexistingandingoodstandingundertheLawsofitsjurisdictionoforganizationandhastherequisitepowerandauthoritytoown,leaseandoperatetheassetsandpropertiesthatitpurportstoown,leaseandoperateandtocarryonitsbusinessasnowconducted,(iii)thatReishasallnecessarycorporatepowerandauthoritytoenterinto,executeanddelivertheMergerAgreementandtoperformitsobligationsundertheMergerAgreementandtoconsummatetheTransactions,and(iv)thattheMergerAgreementhasbeendulyexecutedanddeliveredbyReisand,assumingthedueauthorization,executionanddeliveryoftheMergerAgreement,isalegal,validandbindingagreementofReis,enforceableagainstReisinaccordancewithitsterms,whichallshallbetrueandcorrectinallrespectsasofthedateoftheMergerAgreementandasoftheexpirationoftheOfferasifmadeatandasoftheexpirationoftheOffer;and
(D) therepresentationsandwarrantiesofReisregardingitscapitalizationshallbetrueandcorrect(subjecttodeminimisexceptions)asofthedateoftheMergerAgreementandasoftheexpirationoftheOfferasifmadeonandasoftheexpirationoftheOffer;or
(E) ReisshallhaveperformedinallmaterialrespectsitsobligationsrequiredtobeperformedbyitundertheMergerAgreementatorbytheexpirationoftheOffer;
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(vii) byReis(solongasReisisnotinmaterialbreachofitsrepresentations,warranties,covenantsoragreementsundertheMergerAgreement),if(a)ParentorPurchaserhasbreachedanyoftheirrespectiverepresentations,warranties,covenantsoragreementsundertheMergerAgreement,whichbreach(i)wouldreasonablybeexpectedtoresultinaParentMaterialAdverseEffectand(ii)hasnotbeencuredwithintwenty(20)businessdaysafterParent’sreceiptofwrittennoticeofsuchbreachfromReis.
EffectofTermination.IftheMergerAgreementisterminatedpursuanttoitsterms,theMergerAgreementwillbecomevoidandofnofurtherforceandeffect,withnoliabilityonthepartofanypartytothisAgreement(oranystockholderorRepresentativeofsuchparty)followinganysuchtermination,exceptthat(i)certainspecifiedprovisionsoftheMergerAgreementwillsurvive,includingthosedescribedin“—ReisTerminationFee”below,(ii)theConfidentialityAgreementwillsurviveandremaininfullforceandeffectinaccordancewithitstermsand(iii)exceptassetforthintheMergerAgreement,terminationwillnotrelieveanypartyfromliabilityforfraudorwillfulandmaterialbreachoftheMergerAgreementpriortosuchtermination.
ReisTerminationFee.ReishasagreedtopayParentaterminationfeeof$8,339,446incash(the“TerminationFee”)if:
(i) theMergerAgreementisterminatedbyReisifReisorReis’sBoardreceives,afterthedateoftheMergerAgreementandatanytimepriortotheAcceptanceTime,abonafidewrittenTakeoverProposal,andReis’sBoarddeterminesingoodfaith(i)afterconsultationwithReis’soutsidelegalandfinancialadvisorsthatsuchTakeoverProposalconstitutesaSuperiorProposaland(ii)afterconsultationwithReis’soutsidelegalcounsel,thatinlightofsuchTakeoverProposal,afailuretotakesuchactionswouldbeinconsistentwiththedutiesofReis’sDirectorsunderapplicablelaw,Reis’sBoardmayterminatetheMergerAgreementtoenterintoacontractwithrespecttosuchSuperiorProposalormakeanAdverseRecommendationChange,inwhichcasepaymentshallbemadeconcurrentlywithsuchtermination;
(ii) theMergerAgreementisterminatedbyParentpursuanttoanAdverseRecommendationTermination,inwhichcasepaymentshallbemadewithinfive(5)businessdaysfollowingsuchtermination;or
(iii) if(x)aTakeoverProposalmadeafterthedateoftheMergerAgreementshallhavebeenpubliclymadeorpubliclyproposedtoReisorotherwisepubliclyannouncedpriortotheOfferAcceptanceTimeandnotsubsequentlypubliclywithdrawn,(y)theMergerAgreementisterminatedbyReisorParentpursuanttoanOutsideDateTerminationorbyParentpursuanttoaReisBreachTerminationand(z)withintwelve(12)monthsfollowingthedateofsuchtermination,ReisentersintoadefinitivecontractwithrespecttoaTakeoverProposalandanysuchTakeoverProposalisconsummatedorReisconsummatesanyTakeoverProposal,inwhichcasepaymentshallbemadewithinfive(5)businessdaysfollowingthedateonwhichReisconsummatessuchTakeoverProposal.Forpurposesoftheforegoingclauses(x)and(z)only,referencesinthedefinitionofthetermTakeoverProposaltothefigure“20%”shallbedeemedtobereplacedby“50%.”
Parent’srighttoreceivetheTerminationFeewillbethesoleandexclusiveremedy(whetheratlaw,inequity,incontract,tortorotherwise)ofParentanditsaffiliates,asapplicable,for(x)anyDamagessufferedasaresultofthefailureoftheOfferortheMergertobeconsummatedand(y)anyotherDamagessufferedasaresultoforundertheMergerAgreementandtheTransactions,anduponpaymentoftheTerminationFee,neitherReisnoranyofitsstockholders,directors,officers,agentsorotherRepresentativeswillhaveanyfurtherliabilityorobligationrelatingtoorarisingoutoftheMergerAgreementortheTransactions;providedthattheforegoingwillnotimpairtherightsofParentandPurchaser,ifany,toobtainaninjunction,specificperformanceorotherequitablereliefpriortoanyterminationoftheMergerAgreement.
SpecificPerformance.ThepartieshaveagreedthatirreparabledamagewouldoccurifanyoftheprovisionsoftheMergerAgreementwerenotperformedinaccordancewiththeirspecifictermsorwereotherwisebreached.Ithasbeenaccordinglyagreedthatthepartieswillbeentitledtoaninjunctionorinjunctionstoprevent
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breachesorthreatenedbreachesoftheMergerAgreementandtoenforcespecificallythetermsandprovisionsoftheMergerAgreementinastateorfederalcourtlocatedinBaltimoreCity,Maryland,thisbeinginadditiontoanyotherremedyatlaworinequity,andthepartiestotheMergerAgreementhavewaivedanyrequirementforthepostingofanybondorsimilarcollateralinconnectiontherewith.Eachpartyhasagreedthatitwillnotopposethegrantingofaninjunction,specificperformanceandotherequitablereliefonthebasisthatorotherwiseassertthat(a)theotherpartyhasanadequateremedyatlawor(b)anawardofspecificperformanceisnotanappropriateremedyforanyreasonatlaworequity.
Expenses.ExceptasotherwiseprovidedintheMergerAgreement,whetherornottheTransactionsareconsummated,allexpensesincurredbyanypartytotheMergerAgreementoronitsbehalfinconnectionwiththeMergerAgreementandtheTransactionswillbepaidbythepartyincurringsuchexpenses;provided,however,thatParentwillpayanyapplicablefilingfeesundertheHSRActinconnectionwiththeTransactions.
OfferConditions.TheOfferConditionsaredescribedinSection13—“ConditionsoftheOffer.”
Summary of the Tender and Support Agreements
OnAugust29,2018,LloydLynford,theChiefExecutiveOfficerandPresidentofReis,andJonathanGarfield,theExecutiveVicePresidentofReis,andcertainoftheirrespectiveaffiliatedtrustentitiesenteredintoTenderandSupportAgreementswithParentandPurchaser,pursuanttowhicheachsuchpersonintheircapacityasastockholderagreedtovalidlytenderorcausetobetenderedtheirSharespromptlyfollowing,andinanyeventnolaterthan,thetenthbusinessdayfollowingthecommencementoftheOffer.ThestockholdersthatarepartytotheTenderandSupportAgreementshaveagreedtotenderatotalof2,085,769Sharespursuanttosuchagreements.TheforegoingsummaryofcertainprovisionsoftheTenderandSupportAgreementsandallotherprovisionsoftheTenderandSupportAgreementsdiscussedhereinisqualifiedbyreferencetothecompletetextoftheTenderandSupportAgreementsthemselves,whicharefiledasExhibitsd(2)andd(3)andareincorporatedbyreferenceherein.
Summary of the Confidentiality Agreement
OnMay25,2018,ReisandParententeredintoanon-disclosureagreementthatprovidedReiswithcertainprotectionsinconnectionwiththedisclosureofconfidentialinformationforpurposesofevaluatingapossiblenegotiatedtransaction(the“ConfidentialityAgreement”).AsaconditiontobeingfurnishedEvaluationMaterial(asdefinedintheConfidentialityAgreement)ofReis,Parentagreed,amongotherthings,tokeepsuchEvaluationMaterialconfidentialandtousesuchEvaluationMaterialsolelyforthepurposeofevaluatingthepossibletransaction.TheforegoingsummaryofcertainprovisionsoftheConfidentialityAgreementandallotherprovisionsoftheConfidentialityAgreementdiscussedhereinisqualifiedbyreferencetothecompletetextoftheConfidentialityAgreementitself,whicharefiledasExhibitd(4)andareincorporatedbyreferenceherein.
Summary of the Exclusivity Agreement
ReisandParententeredintoanexclusivityagreement,datedAugust24,2018(the“ExclusivityAgreement”),inconnectionwiththeconsiderationofapossibleacquisitionbyParentof100%oftheShares.UndertheExclusivityAgreement,Reisagreednottoinitiate,encourage,orsolicitanyinquirieswithrespecttoanyindividual,corporation,limitedliabilitycompany,partnership,association,trustoranyotherentityororganization,amongothers,topurchaseoracquirebeneficialownershipoffivepercent(5%)ormoreofanyclassofequitysecuritiesofReis,subjecttocertainexceptions,until5:00p.m.NewYorkCitytimeonAugust29,2018.TheforegoingsummaryofcertainprovisionsoftheExclusivityAgreementandallotherprovisionsoftheExclusivityAgreementdiscussedhereinisqualifiedbyreferencetothecompletetextoftheExclusivityAgreementitself,whicharefiledasExhibitd(5)andareincorporatedbyreferenceherein.
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Effects of Inability to Consummate the Merger
If,followingtheconsummationoftheOffer,theMergerisnotconsummatedforanyreason(see“ConditionstotheOffer”below),Parent,whichowns100%ofthecommonstockofthePurchaser,willindirectlycontrolthenumberofSharesacquiredbythePurchaserpursuanttotheOffer,aswellasanyotherSharesheldbyParentoritssubsidiaries.AsaresultofitsownershipofsuchSharesandrighttodesignatenomineesforelectiontotheReisBoard(assumingnowaiveroftheMinimumTenderCondition),ParentindirectlywillbeabletocontroldecisionoftheReisBoardandthedecisionsofthePurchaserasastockholderofReis.ThisconcentrationofcontrolinonestockholdermayadverselyaffectthemarketvalueoftheShares.
12. Source and Amount of Funds.
TheOfferisnotconditioneduponParent’sorPurchaser’sabilitytofinancethepurchaseofSharespursuanttotheOffer.ParentandPurchaserestimatethatthetotalamountoffundsrequiredtopurchasealltheSharesthatarevalidlytenderedintotheOffer,tomakethepaymentsforoptions,restrictedstockunitsandotherpaymentsreferredtointheMergerAgreement,topayrelatedfeesandexpensesandtoconsummatetheMergerandpaytheMergerConsiderationwillbeapproximately$280million.PurchaserwillreceivefundsfromParentsufficienttosatisfytheseobligations.ParentexpectsthatitwillobtainthesefundsthroughacombinationofavailablecashonhandandborrowingsatprevailingeffectiveratesunderParent’scommercialpaperprogram.However,thespecificformandterms,andprecisetimingofParent’sborrowingsunderParent’scommercialpaperprogramhavenotyetbeenmadeexceptasnotedbelow.Accordingly,specificplanswithrespecttorepaymentofanyamountsborrowedhavenotyetbeenmade,exceptasnotedbelow.
IfParentelectstouseitscommercialpaperprogramtoprovidefinancingfortheOfferandtheMerger,Parentwillissuecommercialpapertoonlyqualifiedinstitutionalbuyers.AmountsavailableunderParent’scommercialpaperprogrammaybeborrowed,repaidandre-borrowedfromtimetotime,withtheaggregatefaceorprincipalamountofthenotesoutstandingundertheprogramatanytimenottoexceed$1,000,000,000.Thenotesundertheprogramwillhavematuritiesofupto397daysfromthedateofissue.ThenoteswillrankatleastparipassuwithallofParent’sotherunsecuredandunsubordinatedindebtedness.Parentalsohasarevolvingcreditfacilityasaliquiditybackstopforitsborrowingsunderthecommercialpaperprogram.Parentexpectssuchcommercialpapertobeissuedatadiscounttoprincipalamountresultinginaneffectiveyielddeterminedbythemarketforcommercialpaperatthetimeofeachsuchissuance,thematuritiesofsuchcommercialpaperandParent’scommercialpaperrating,whichindicativeyieldwouldbeapproximately2.26%for30dayscommercialpaperasofSeptember12,2018.
AsofSeptember12,2018,Parenthasnocommercialpaperborrowingsoutstandingunderitsprogramleavingtheentire$1,000,000,000availableforborrowingundertheprogram.
AcopyoftheformdealeragreementpursuanttowhichParent’scommercialpaperisanticipatedtobeissuedisincorporatedatExhibit(b)totheScheduleTO,whichisincorporatedhereinbyreference,andtheforegoingsummaryofParent’scommercialpaperisqualifiedbyreferencetosuchcommercialpaperdealeragreement.
WedonotbelieveourfinancialconditionisrelevanttoyourdecisionwhethertotenderyourSharesandaccepttheOfferbecause(i)theOfferisbeingmadeforalloutstandingSharessolelyforcash,(ii)theOfferisnotsubjecttoanyfinancingcondition,(iii)ifweconsummatetheOffer,wewillacquireallremainingSharesotherthanConvertedSharesforthesamepriceintheMerger,and(iv)Parentand/oroneormoreofitsaffiliateshas,andwillarrangeforustohave,sufficientfundstopurchaseallSharesvalidlytenderedintheOffer,andnotproperlywithdrawn,toacquiretheremainingoutstandingSharesintheMergeronthetermssetforthinthisOffertoPurchase.
13. Conditions of the Offer.
TheobligationofPurchasertoacceptforpaymentandpayforSharesvalidlytenderedandnotvalidlywithdrawnpursuanttotheOfferissubjecttothesatisfactionoftheconditionssetforthinclauses(a)through
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(d)below.NotwithstandinganyotherprovisionsoftheOfferortheMergerAgreementtothecontraryandsubjecttoanyapplicablerulesandregulationsoftheSECincludingRule14e-1(c)oftheExchangeAct,Purchaserisnotrequiredtoacceptforpaymentorpayfor,anytenderedSharesif:
a. thereshallnothavebeenvalidlytenderedandnotwithdrawnpriortotheexpirationoftheOfferthatnumberofShares(excludinganySharestenderedpursuanttoguaranteeddeliveryproceduresthathavenotyetbeenreceived)whichwouldrepresentatleastamajorityoftheissuedandoutstandingShares(excluding,forpurposesofdeterminingsuchmajority,thetotalnumberofSharesownedbyanyofReis’swhollyownedsubsidiaries);
b. thewaitingperiod(andanyextensionthereof)applicabletotheconsummationoftheOfferandtheMergerundertheHSRActshallnothaveexpiredorbeenterminated;
c. thefollowingconditionsshallexistatthetimeofexpirationoftheOfferorimmediatelypriortosuchpayment:
(i) anygovernmentalbodyofcompetentjurisdictionshallhaveenacted,issued,promulgatedorenteredanylaw,commonlaw,statute,ordinance,code,regulation,ruleorotherrequirementthatisineffectandrestrains,enjoinsorotherwiseprohibits,orissuedanyorder,decision,judgment,writ,injunction,decree,awardorotherdeterminationwhichisthenineffectthatenjoinsorotherwiseprohibits,theconsummationoftheOfferortheMerger;
(ii) sincethedateoftheMergerAgreement,thereshallhaveoccurredaMaterialAdverseEffect;
(iii) (A)therepresentationsandwarrantiesofReissetforthintheMergerAgreementshallnotbetrueandcorrectinallrespects,otherthanthosein(B)—(D)assetforthbelow,withoutregardtoany“materiality,”“MaterialAdverseEffect”orsimilarqualificationscontainedinthem,atandasofthedateoftheMergerAgreementandatandasoftheexpirationoftheOfferasifmadeonandasoftheexpirationoftheOffer(exceptforrepresentationsandwarrantiesmadeasofaspecifieddate,theaccuracyofwhichshallbedeterminedasofthatdate),withonlysuchexceptionsaswouldnotindividuallyorintheaggregatereasonablybeexpectedtohaveaMaterialAdverseEffect;(B)certainrepresentationsandwarrantiesofReisregardingitspowerandauthoritytoown,leaseandoperatetheassetsandpropertiesthatitpurportstoown,leaseandoperateandtocarryonitsbusinessasnowconducted,shallnotbetrueandcorrectinallmaterialrespectsasofthedateoftheMergerAgreementandatandasoftheexpirationoftheOffer,asthoughmadeonandasoftheexpirationoftheOffer;(C)certainrepresentationsandwarrantiesofReisthat(i)itisdulyincorporated,validlyexistingandingoodstandingundertheLawsofitsjurisdictionofincorporation,(ii)thateachofReis’ssubsidiariesisdulyorganized,validlyexistingandingoodstandingundertheLawsofitsjurisdictionoforganizationandhastherequisitepowerandauthoritytoown,leaseandoperatetheassetsandpropertiesthatitpurportstoown,leaseandoperateandtocarryonitsbusinessasnowconducted,(iii)thatReishasallnecessarycorporatepowerandauthoritytoenterinto,executeanddelivertheMergerAgreementandtoperformitsobligationsundertheMergerAgreementandtoconsummatetheTransactions,and(iv)thattheMergerAgreementhasbeendulyexecutedanddeliveredbyReisand,assumingthedueauthorization,executionanddeliveryoftheMergerAgreement,isalegal,validandbindingagreementofReis,enforceableagainstReisinaccordancewithitsterms,shallnotbetrueandcorrectinallrespectsasofthedateoftheMergerAgreementandasoftheexpirationoftheOfferasifmadeatandasoftheexpirationoftheOffer;and(D)therepresentationsandwarrantiesofReisregardingitscapitalizationshallnotbetrueandcorrect(subjecttodeminimusexceptions)asofthedateoftheMergerAgreementandasoftheexpirationoftheOfferasifmadeonandasoftheexpirationoftheOffer;
(iv) ReisshallhavefailedtoperforminanymaterialrespectitsobligationsrequiredtobeperformedbyitundertheMergerAgreementatorbeforesuchtime;or
(v) TheMergerAgreementshallhavebeenterminatedinaccordancewithitsterms;or
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d. immediatelypriortotheexpirationoftheOffer,ReisshallnothavedeliveredtoParentacertificate,signedbyanexecutiveofficerofReis,
certifyingthatnoneoftheconditionssetforthinclauses(ii),(iii)or(iv)oftheforegoingclause(c)shallbecontinuingasoftheexpirationoftheOffer.
Theforegoingconditionssetforthinclause(c)(ii),(c)(iii),(c)(iv)andclause(d)areforthesolebenefitofParentandPurchaserandmaybewaivedbyParentorPurchaserinwholeorinpartatanytimeandfromtimetotimeandinthesolediscretionofParentorPurchaser,subjectineachcasetothetermsoftheMergerAgreementandapplicablelaw.Anyreferencetoaconditionorrequirementbeingsatisfiedshallbedeemedmetifsuchconditionorrequirementissowaived.Theforegoingconditionsshallbeinadditionto,andnotalimitationof,therightsofParentandPurchasertoextend,terminateand/ormodifytheOfferpursuanttothetermsandconditionsoftheMergerAgreement.ThefailurebyParent,PurchaseroranyotheraffiliateofParentatanytimetoexerciseanyoftheforegoingrightsshallnotbedeemedawaiverofanysuchright,thewaiverofanysuchrightwithrespecttoparticularfactsandcircumstancesshallnotbedeemedawaiverwithrespecttoanyotherfactsandcircumstancesandeachsuchrightshallbedeemedanongoingrightthatmaybeassertedatanytimeandfromtimetotime.
14. Dividends and Distributions.
UnderthetermsoftheMergerAgreement,Reisisnotpermittedto,andwillcauseitssubsidiariesnotto,authorize,make,declare,setasideorpayanydividendsordistributionsinrespectofanysharesofitscapitalstockotherthandividendsanddistributionstoReisbyitswhollyownedsubsidiaries,andotherthanregularquarterlycashdividendsinrespectofthesharesofcommonstocknottoexceed$0.19pershareandwithrecorddatesandpaymentdatesforsuchdividendsconsistentwithpastpractice,subjecttocompliancewithapplicablelaw.SeeSection11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements—SummaryoftheMergerAgreement—ConductofBusinessPendingtheMerger.”
15. Certain Legal Matters; Regulatory Approvals.
General .ExceptasotherwisesetforthinthisOffertoPurchase,basedonParent’sandPurchaser’sreviewofpubliclyavailablefilingsbyReiswiththeSECandotherinformationregardingReis,ParentandPurchaserarenotawareofanylicensesorotherregulatorypermitswhichappeartobematerialtothebusinessofReisandwhichmightbeadverselyaffectedbytheacquisitionofSharesbyPurchaserorParentpursuanttotheOfferorofanyapprovalorotheractionbyanygovernmental,administrativeorregulatoryagencyorauthoritywhichwouldberequiredfortheacquisitionorownershipofSharesbyPurchaserorParentpursuanttotheOffer.Inaddition,exceptassetforthbelow,ParentandPurchaserarenotawareofanyfilings,approvalsorotheractionsbyorwithanygovernmentalbodyoradministrativeorregulatoryagencythatwouldberequiredforParent’sandPurchaser’sacquisitionorownershipoftheShares.Shouldanysuchapprovalorotheractionberequired,ParentandPurchasercurrentlyexpectthatsuchapprovaloraction,exceptasdescribedbelowunder“StateTakeoverLaws,”wouldbesoughtortaken.Therecanbenoassurancethatanysuchapprovaloraction,ifneeded,wouldbeobtainedor,ifobtained,thatitwillbeobtainedwithoutsubstantialconditions;andtherecanbenoassurancethat,intheeventthatsuchapprovalswerenotobtainedorsuchotheractionswerenottaken,adverseconsequencesmightnotresulttoReis’sorParent’sbusinessorthatcertainpartsofReis’sorParent’sbusinessmightnothavetobedisposedoforheldseparate.Insuchanevent,wemaynotberequiredtopurchaseanySharesintheOffer.SeeSection13—“ConditionsoftheOffer.”
Antitrust .UndertheHSRAct,andtherulesandregulationspromulgatedthereunderbytheU.S.FederalTradeCommission(the“FTC”),certaintransactionsmaynotbeconsummateduntilcertaininformationanddocumentarymaterialshavebeenfurnishedforreviewtotheFTCandtheAntitrustDivisionoftheU.S.DepartmentofJustice(the“AntitrustDivision”)andcertainwaitingperiodrequirementshavebeensatisfied.TheserequirementsapplytoParentbyvirtueofPurchaser’sacquisitionoftheSharesintheOffer(andtheMerger).
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UndertheHSRAct,thepurchaseofSharesintheOffermaynotbecompleteduntiltheexpirationofa15-calendar-daywaitingperiodfollowingthefilingofcertainrequiredinformationanddocumentarymaterialconcerningtheOffer(andtheMerger)withtheFTCandtheAntitrustDivision,unlessthewaitingperiodisearlierterminatedbytheFTCandtheAntitrustDivision.ThepartiesagreedintheMergerAgreementtofilesuchPremergerNotificationandReportFormsundertheHSRActwiththeFTCandtheAntitrustDivisioninconnectionwiththepurchaseofSharesintheOfferandtheMergeraspromptlyaspracticable,butinanyeventwithinten(10)businessdaysfollowingtheexecutionanddeliveryoftheMergerAgreement.Thepartieswillaccordinglymakethefilingsreferencedintheforegoingsentenceonthedatehereof.UndertheHSRAct,therequiredwaitingperiodwillexpireat11:59pm,EasternTime,onthe15thcalendardayafterthefilingbyParent,unlessearlierterminatedbytheFTCandtheAntitrustDivisionorParentreceivesarequestforadditionalinformationordocumentarymaterial(“SecondRequest”)fromeithertheFTCortheAntitrustDivisionpriortothattime.IfaSecondRequestissues,thewaitingperiodwithrespecttotheOffer(andtheMerger)wouldbeextendedforanadditionalperiodoftencalendardaysfollowingthedateofParent’ssubstantialcompliancewiththatrequest.Ifeitherthe15-dayorten-daywaitingperiodexpiresonaSaturday,Sundayorfederalholiday,thentheperiodisextendeduntil11:59p.m.ofthenextdaythatisnotaSaturday,Sundayorfederalholiday.OnlyoneextensionofthewaitingperiodpursuanttoaSecondRequestisauthorizedbytheHSRActrules.Afterthattime,thewaitingperiodcouldbeextendedonlybycourtorderorwithParent’sconsent.TheFTCortheAntitrustDivisionmayterminatetheadditionalten-daywaitingperiodbeforeitsexpiration.ComplyingwithaSecondRequestcantakeasignificantperiodoftime.AlthoughReisisalsorequiredtofilecertaininformationanddocumentarymaterialwiththeFTCandtheAntitrustDivisioninconnectionwiththeOffer,neitherReis’sfailuretomakeitsfilingnorfailuretocomplywithitsownSecondRequestinatimelymannerwillextendthewaitingperiodwithrespecttothepurchaseofSharesintheOffer(andtheMerger).
TheFTCandtheAntitrustDivisionfrequentlyscrutinizethelegalityundertheU.S.antitrustlawsoftransactions,suchasPurchaser’sacquisitionofSharesintheOffer(andtheMerger).AtanytimebeforeorafterPurchaser’spurchaseofSharesintheOffer(andtheMerger),theFTCortheAntitrustDivisioncouldtakeanyactionundertheantitrustlawsthatiteitherconsidersnecessaryordesirableinthepublicinterest,includingseekingtoenjointhepurchaseofSharesintheOffer(andtheMerger),thedivestitureofSharespurchasedintheOfferandMergerorthedivestitureofsubstantialassetsofParent,Reisoranyoftheirrespectivesubsidiariesoraffiliates.Privateparties,aswellasstateattorneysgeneral,alsomaybringlegalactionsundertheantitrustlawsundercertaincircumstances.SeeSection13—“ConditionsoftheOffer.”
ParentandReisalsoconductbusinessoutsideoftheUnitedStates.However,basedonareviewoftheinformationcurrentlyavailablerelatingtothecountriesandbusinessesinwhichParentandReisareengaged,ParentandPurchaserbelievethatnomandatoryantitrustpremergernotificationfilingisrequiredoutsidetheUnitedStatesandapprovalofanynon-U.S.antitrustauthorityisnotaconditiontotheconsummationoftheOfferortheMerger.
BaseduponanexaminationofpubliclyavailableandotherinformationrelatingtothebusinessesinwhichReisisengaged,ParentandPurchaserbelievethattheacquisitionofSharesintheOffer(andtheMerger)shouldnotviolateapplicableantitrustlaws.Nevertheless,ParentandPurchasercannotbecertainthatachallengetotheOffer(andtheMerger)onantitrustgroundswillnotbemade,or,ifsuchchallengeismade,whattheresultwillbe.SeeSection13—“ConditionsoftheOffer.”
Stockholder Approval Not Required .ReishasrepresentedintheMergerAgreementthatexecution,deliveryandperformanceoftheMergerAgreementbyReisandtheconsummationbyReisoftheOfferandtheMergerhavebeendulyandvalidlyauthorizedbyallnecessarycorporateactiononthepartofReis,andnoothercorporateproceedingsonthepartofReisarenecessarytoauthorizetheMergerAgreementortoconsummatetheOfferandtheMerger.Section3-106.1oftheMGCLprovidesthatstockholderapprovalofamergerisnotrequiredifcertainrequirementsaremet,includingthat(i)theacquiringcompanyconsummatesatenderofferforanyandalloftheoutstandingstockofthecompanytobeacquiredthat,absentSection3-106.1oftheMGCL,wouldbeentitledtovoteonthemergerand(ii)followingtheconsummationofsuchtenderoffer,theacquiring
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companyownsatleastsuchpercentageofthestockofthecompanytobeacquiredthat,absentSection3-106.1oftheMGCL,wouldberequiredtoapprovethemerger.IftheMinimumTenderConditionissatisfiedandweacceptSharesforpaymentpursuanttotheOffer,wewillholdasufficientnumberofSharestoensurethatReiswillnotberequiredtosubmittheadoptionoftheMergerAgreementtoavoteofitsstockholders.SubjecttothesatisfactionoftheremainingconditionssetforthintheMergerAgreement,Purchaser,ParentandReisarerequiredtoeffecttheMergerpursuanttoSection3-106.1oftheMGCLaspromptlyaspossible(andinnoeventlaterthan9:00a.m.EasternTimeonthefirstbusinessdayfollowingthedateonwhichSharesarefirstacceptedforpurchaseundertheOffer).SeeSection11—“PurposeoftheOfferandPlansforReis;SummaryoftheMergerAgreementandCertainOtherAgreements.”
State Takeover Laws .Anumberofstates(includingMaryland,whereReisisincorporated)haveadoptedtakeoverlawsandregulationswhichpurport,tovaryingdegrees,tobeapplicabletoattemptstoacquiresecuritiesofcorporationswhichareincorporatedinsuchstatesorwhichhavesubstantialassets,stockholders,principalexecutiveofficesorprincipalplacesofbusinesstherein.
AsaMarylandcorporation,ReishasnotoptedoutofSections3-601and3-602oftheMGCL.Ingeneral,underSection3-602oftheMGCL,acorporationmaynotengageinanybusinesscombinationwithanyinterestedstockholderoranyaffiliateoftheinterestedstockholderforaperiodof5yearsfollowingthemostrecentdateonwhichtheinterestedstockholderbecameaninterestedstockholderunlesscertainexemptionsspecifiedunderSection3-603(c),(d),or(e)apply
ReishasrepresentedtousintheMergerAgreementthatno“fairprice”,“moratorium”,“controlshareacquisition”,“businesscombination”orothersimilaranti-takeoverstatuteorregulation(includingSection3-601and3-602oftheMGCL)enactedunderapplicablelawisapplicabletotheMergerAgreementorthetransactionscontemplatedbytheMergerAgreement.PurchaserhasnotattemptedtocomplywithanyotherstatetakeoverstatutesinconnectionwiththeOfferortheMerger.PurchaserreservestherighttochallengethevalidityorapplicabilityofanystatelawallegedlyapplicabletotheOffer,Merger,theMergerAgreementorthetransactionscontemplatedthereby,andnothinginthisOffertoPurchaseoranyactiontakeninconnectionherewithisintendedasawaiverofthatright.IntheeventthatitisassertedthatoneormoretakeoverstatutesapplytotheOfferortheMerger,anditisnotdeterminedbyanappropriatecourtthatsuchstatuteorstatutesdonotapplyorareinvalidasappliedtotheOffer,Merger,ortheMergerAgreement,asapplicable,Purchasermayberequiredtofilecertaindocumentswith,orreceiveapprovalsfrom,therelevantstateauthorities,andPurchasermightbeunabletoacceptforpaymentorpurchaseSharestenderedpursuanttotheOfferorbedelayedincontinuingorconsummatingtheOffer.Insuchcase,Purchasermaynotbeobligatedtoacceptforpurchase,orpayfor,anySharestendered.SeeSection13—“ConditionsoftheOffer.”
Appraisal Rights .PursuanttoMGCL3-202,noappraisalrightsareavailabletotheholdersofSharesinconnectionwiththeOffer.
“Going Private” Transactions .Rule13e-3undertheExchangeActisapplicabletocertain“goingprivate”transactionsandmayundercertaincircumstancesbeapplicabletotheMerger.However,Rule13e-3willbeinapplicableif(i)theSharesarederegisteredundertheExchangeActpriortotheMergeroranotherbusinesscombinationor(ii)theMergerorotherbusinesscombinationisconsummatedwithinoneyearafterthepurchaseoftheSharespursuanttotheOfferandtheamountpaidperShareintheMergerorotherbusinesscombinationisatleastequaltotheamountpaidperShareintheOffer.NeitherParentnorPurchaserbelievesthatRule13e-3willbeapplicabletotheMerger.
Legal Proceedings Relating to the Tender Offer .None.
16. Fees and Expenses.
ParenthasretainedtheDepositaryandtheInformationAgentinconnectionwiththeOffer.TheDepositaryandtheInformationAgentwillreceivecustomarycompensation,reimbursementforreasonableout-of-pocket
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expensesandindemnificationagainstcertainliabilitiesinconnectionwiththeOffer,includingcertainliabilitiesunderthefederalsecuritieslaws.
Aspartoftheservicesincludedinsuchretention,theInformationAgentmaycontactholdersofSharesbypersonalinterview,mail,electronicmail,telephone,telex,telegraphandothermethodsofelectroniccommunicationandmayrequestbrokers,dealers,commercialbanks,trustcompaniesandothernomineestoforwardtheOffermaterialstobeneficialholdersofShares.
Exceptassetforthabove,neitherParentnorPurchaserwillpayanyfeesorcommissionstoanybrokerordealerorotherpersonforsolicitingtendersofSharespursuanttotheOffer.Brokers,dealers,commercialbanksandtrustcompanieswilluponrequestbereimbursedbyusforcustomarymailingandhandlingexpensesincurredbytheminforwardingtheofferingmaterialtotheircustomers.
17. Miscellaneous.
TheOfferisbeingmadetoallholdersoftheShares.WearenotawareofanyjurisdictioninwhichthemakingoftheOfferortheacceptancethereofwouldbeprohibitedbysecurities,“bluesky”orothervalidlawsofsuchjurisdiction.IfwebecomeawareofanyU.S.stateinwhichthemakingoftheOfferortheacceptanceofSharespursuanttheretowouldnotbeincompliancewithanadministrativeorjudicialactiontakenpursuanttoaU.S.statestatute,wewillmakeagoodfaithefforttocomplywithanysuchlaw.If,aftersuchgoodfaitheffort,wecannotcomplywithanysuchlaw,theOfferwillnotbemadeto(norwilltendersbeacceptedfromoronbehalfof)theholdersofSharesinsuchstate.InanyjurisdictionswhereapplicablelawsrequiretheOffertobemadebyalicensedbrokerordealer,theOffershallbedeemedtobemadeonbehalfofPurchaserbyoneormoreregisteredbrokersordealerslicensedunderthelawsofsuchjurisdictiontobedesignatedbyPurchaser.
ParentandPurchaserhavefiledwiththeSECtheScheduleTO(includingexhibits)inaccordancewiththeExchangeAct,furnishingcertainadditionalinformationwithrespecttotheOffer,andmayfileamendmentsthereto.TheScheduleTOandanyamendmentsthereto,includingexhibits,maybeexaminedandcopiesmaybeobtainedfromtheSECinthemannersetforthinSection8—“CertainInformationConcerningReis”under“AvailableInformation.”
TheOfferdoesnotconstituteasolicitationofproxiesforanymeetingofReis’sstockholders.AnysolicitationofproxieswhichPurchaseroranyofitsaffiliatesmightseekwouldbemadeonlypursuanttoseparateproxymaterialscomplyingwiththerequirementsofSection14(a)oftheExchangeAct.
No person has been authorized to give any information or make any representation on behalf of Parent or Purchaser not contained in thisOffer to Purchase or in the Letter of Transmittal and, if given or made, such information or representation must not be relied upon as having beenauthorized. No broker, dealer, bank, trust company, fiduciary or other person shall be deemed to be an agent of Purchaser, the Depositary or theInformation Agent for the purpose of the Offer. NeitherdeliveryofthisOffertoPurchasenoranypurchasepursuanttotheOfferwill,underanycircumstances,createanyimplicationthattherehasbeennochangeintheaffairsofParent,Purchaser,ReisoranyoftheirrespectivesubsidiariessincethedateasofwhichinformationisfurnishedorthedateofthisOffertoPurchase.
Moody’sCorporation
Moody’sAnalyticsMarylandCorp.
September13,2018
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SCHEDULE A
INFORMATION CONCERNING MEMBERS OF THE BOARDS OF DIRECTORS ANDTHE EXECUTIVE OFFICERS OF PURCHASER AND PARENT
1. Directors and Executive Officers of Purchaser.
DirectorsandExecutiveOfficersofPurchaser.ThefollowingtablesetsforthastoeachofthedirectorsandexecutiveofficersofPurchaserasofSeptember5,2018:(i)hisorhername;(ii)citizenship;(iii)presentprincipaloccupationoremployment,alongwiththename,principalbusinessandaddressofanycorporationorotherorganizationinwhichsuchemploymentisconducted;and(iv)materialoccupations,positions,officesoremploymentduringthepastfiveyears.Unlessotherwiseindicated:(i)thecurrentbusinessaddressofeachpersonis7WorldTradeCenterat250GreenwichStreet,NewYork,NY10007;(ii)thecurrentbusinesstelephonenumberofeachpersonis(212)553-0300;and(iii)theprincipalemployerofeachsuchindividualisMoody’sCorporation,Moody’sAnalytics,Inc.orMoody’sSharedServices,Inc.,thebusinessaddressofwhichis7WorldTradeCenterat250GreenwichStreet,NewYork,NY10007.Name, Country of Citizenship, Position
Present Principal Occupation or Employment; Material Positions Held During the Past Five Years; Certain Other Information
Mark Almeida UnitedStatesofAmericaDirector,ChairmanoftheBoardandChiefExecutiveOfficer
AlmeidaservesasdirectorofMoody’sAnalyticsMarylandCorp.andhasbeenPresidentofMoody’sAnalyticssinceJanuary2008.Priortothisposition,Mr.AlmeidawasSeniorVicePresidentofMoody’sCorporationfromAugust2007toJanuary2008,SeniorManagingDirectoroftheInvestorServicesGroupatMoody’sInvestorsService,Inc.fromDecember2004toJanuary2008andwasGroupManagingDirectoroftheInvestorServicesGroupatMoody’sInvestorsService,Inc.fromJune2000toDecember2004.Mr.AlmeidajoinedMoody’sInvestorsService,Inc.inApril1988andhasheldavarietyofpositionswiththecompanyinboththeU.S.andoverseas.
Keith Berry UnitedKingdom;UnitedStatesPermanentResidentDirectorandPresident
KeithBerryservesasdirectorofMoody’sAnalyticsMarylandCorp.andistheExecutiveDirectorresponsibleforMoody’sAnalyticsEmergingBusinessUnit,basedinNewYork.TheEmergingBusinessUnitaimstoidentify,research,anddevelopnewbusinessopportunitiesforMoody’sAnalyticsthatareenabledbytechnologyinnovation.Priortohiscurrentrole,Mr.BerryhasservedasHeadofCreditAssessmentandOriginationfortheEnterpriseRiskSolutionsdivisionbasedinHongKong,HeadofProfessionalServicesfortheEnterpriseRiskSolutionsDivisionbasedinParis,andHeadofSoftwareEngineeringfortheEnterpriseRiskSolutionsDivisionbasedinSanFrancisco.Mr.BerryjoinedMoody’sAnalyticsin2008fromBarclaysGlobalInvestorswherehespent10yearsinLondonandSanFranciscoinavarietyofrolesrangingfromsoftwaredevelopertoHeadofEnterpriseArchitecture.
Sallilyn Schwartz UnitedStatesofAmericaVicePresident,Treasurer
SallilynSchwartzservesastheVicePresident,TreasurerofMoody’sAnalyticsMarylandCorp.andhasservedastheVicePresident,TreasurerofMoody’sCorporationsinceOctober2017.Priortothisrole,sheservedastheVicePresident,InvestorRelationsofMoody’sCorporationfromJanuary2013toOctober2017.
Thomas Fezza UnitedStatesofAmericaVicePresident,GlobalTax
ThomasFezzaservesasVicePresident,GlobalTaxofMoody’sAnalyticsMarylandCorp.andhasservedastheVicePresident—GlobalTaxforthepastfiveyearsforMoody’sCorporation.
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Name, Country of Citizenship, Position Present Principal Occupation or Employment; Material Positions
Held During the Past Five Years; Certain Other InformationElizabeth M. McCarroll UnitedStatesofAmericaCorporateSecretary
ElizabethM.McCarrollwasnamedCorporateSecretaryofMoody’sAnalyticsMarylandCorp.asofAugust2018.ShehasservedasMoody’sCorporation’sCorporateSecretaryandAssociateGeneralCounselsinceJuly2018,asAssociateGeneralCounselandAssistantSecretarysinceJune2015andpriortothat,asAssistantGeneralCounselandAssistantSecretary.
2. Directors and Executive Officers of Parent.
DirectorsandExecutiveOfficersofParent.ThefollowingtablesetsforthastoeachofthedirectorsandexecutiveofficersofParentasofSeptember5,2018:(i)hisorhername;(ii)citizenship;(iii)presentprincipaloccupationoremployment,alongwiththename,principalbusinessandaddressofanycorporationorotherorganizationinwhichsuchemploymentisconducted;and(iv)materialoccupations,positions,officesoremploymentduringthepastfiveyears.Unlessotherwiseindicated:(i)thecurrentbusinessaddressofeachpersonis7WorldTradeCenterat250GreenwichStreet,NewYork,NY10007;(ii)thecurrentbusinesstelephonenumberofeachpersonis(212)553-0300;and(iii)theprincipalemployerofeachsuchindividualisMoody’sCorporation,Moody’sAnalytics,Inc.orMoody’sSharedServices,Inc.,thebusinessaddressofwhichis7WorldTradeCenterat250GreenwichStreet,NewYork,NY10007.Name, Country of Citizenship, Position
Present Principal Occupation or Employment; Material Positions Held During the Past Five Years; Certain Other Information
Mark Almeida UnitedStatesofAmericaPresident—Moody’sAnalytics
MarkAlmeidahasbeenPresidentofMoody’sAnalyticssinceJanuary2008.Priortothisposition,Mr.AlmeidawasSeniorVicePresidentofMoody’sCorporationfromAugust2007toJanuary2008,SeniorManagingDirectoroftheInvestorServicesGroupatMoody’sInvestorsService,Inc.fromDecember2004toJanuary2008andwasGroupManagingDirectoroftheInvestorServicesGroupatMoody’sInvestorsService,Inc.fromJune2000toDecember2004.Mr.AlmeidajoinedMoody’sInvestorsService,Inc.inApril1988andhasheldavarietyofpositionswiththecompanyinboththeU.S.andoverseas.
Basil L. Anderson UnitedStatesofAmericaDirector
BasilL.AndersonisChairmanoftheGovernance&NominatingCommitteeandisamemberoftheExecutive,AuditandCompensation&HumanResourcesCommitteesoftheBoardofDirectorsofParent.Mr.AndersonservedasViceChairmanofStaples,Inc.,anofficeproductscompany,fromSeptember2001untilhisretirementinMarch2006.PriortojoiningStaples,Mr.AndersonservedasExecutiveVicePresidentandChiefFinancialOfficerofCampbellSoupCompanyfromApril1996toFebruary2001.PriortojoiningCampbellSoup,Mr.AndersonwaswithScottPaperCompany,whereheservedinavarietyofcapacitiesbeginningin1975,includingVicePresidentandChiefFinancialOfficerfromDecember1993toDecember1995.HeservedasadirectorofStaples,Inc.from1997until2016,Hasbro,Inc.from2002untilMay2017andBectonDickinsonfrom2004to2018.
Jorge A. Bermudez UnitedStatesofAmericaDirector
JorgeA.BermudezisamemberoftheAudit,Governance&NominatingandCompensation&HumanResourcesCommitteesoftheBoardofDirectorsofParent.HeservedasChiefRiskOfficerofCitigroup,Inc.,aglobalfinancialservicescompany,fromNovember
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Name, Country of Citizenship, Position Present Principal Occupation or Employment; Material Positions
Held During the Past Five Years; Certain Other Information
2007toMarch2008.BeforeservingasChiefRiskOfficer,Mr.BermudezwasChiefExecutiveOfficerofCitigroup’sCommercialBusinessGroupinNorthAmericaandCitibankTexasfrom2005to2007.HeservedasSeniorAdvisor,CitigroupInternationalfrom2004to2006,asChiefExecutiveOfficerofCitigroupLatinAmericafrom2002to2004,ChiefExecutiveOfficer,eBusiness,GlobalCashManagementandTradefrom1998to2002andHeadofCitibankCorporateandInvestmentBank,SouthAmericafrom1996to1998.Mr.BermudezjoinedCitigroupin1975andheldleadershippositionsinotherdivisions,includingequityinvestments,creditpolicyandcorporatebankingfrom1984to1996.Mr.BermudezcurrentlyisChairmanoftheTexasA&MFoundationBoardofTrustees(2014-present)andChairmanoftheSmartGridCenterBoardatTexasA&MUniversity.HeservedasadirectorofCitibankN.A.from2005to2008,HoustonBranchfrom2009to2011,theFederalReserveBankofDallasfrom2011to2017,theAssociationofFormerStudents,TexasA&MUniversityfrom2005to2012,theAmericanInstituteofArchitectsfortheentiretyof2015,theElectricReliabilityCouncilofTexasfrom2010to2016andasChairmanoftheCommunityFoundationofBrazosValleyfromJuly2013toJuly2014andpresentlychairstheInvestmentCommittee.
Richard Cantor UnitedStatesofAmericaChiefRiskOfficer—Moody’sCorporationandChiefCreditOfficer—Moody’sInvestorsService
RichardCantorhasservedasChiefRiskOfficerforMoody’sCorporationsinceDecember2008andChiefCreditOfficerforMoody’sInvestorsServicesinceNovember2008.FromJuly2008toNovember2008,Mr.CantorservedasActingChiefCreditOfficer.Priorthereto,Mr.CantorwasManagingDirectorofMoody’sCreditPolicyResearchGroupfromJune2001toJuly2008,afterservingasSeniorVicePresidentintheFinancialGuarantorsRatingGroup.Mr.CantorjoinedMoody’sin1997fromtheFederalReserveBankofNewYork,whereheservedasAssistantVicePresidentintheResearchGroupandwasStaffDirectorattheDiscountWindow.PriortotheFederalReserve,Mr.CantortaughtEconomicsatUCLAandOhioStateandhastaughtonanadjunctbasisatthebusinessschoolsofColumbiaUniversityandNewYorkUniversity.
Robert Fauber UnitedStatesofAmericaPresident—Moody’sInvestorsService
RobertFauberbecamePresident—Moody’sInvestorsServiceeffective,June1,2016.HeservedasSeniorVicePresident—Corporate&CommercialDevelopmentofMoody’sCorporationfromApril2014toMay31,2016andwasHeadoftheMoody’sInvestorsService’sCommercialGroupfromJanuary2013toMay31,2016.FromApril2009throughApril2014,heservedasSeniorVicePresident—CorporateDevelopmentofMoody’sCorporation.Mr.FauberservedasVicePresident-CorporateDevelopmentfromSeptember2005toApril2009.PriortojoiningMoody’s,Mr.FauberservedinseveralrolesatCitigroupanditsinvestmentbankingsubsidiarySalomonSmithBarneyfrom1999to2005.From1992-1996,Mr.FauberworkedatNationsBank(nowBankofAmerica)inthemiddlemarketcommercialbankinggroup.
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Name, Country of Citizenship, Position Present Principal Occupation or Employment; Material Positions
Held During the Past Five Years; Certain Other InformationVincent A. Forlenza UnitedStatesofAmericaDirector
VincentA.ForlenzaisamemberoftheAudit,Governance&NominatingandCompensation&HumanResourcesCommitteesoftheBoardofDirectorsofParent.HehasservedasadirectorofBecton,DickinsonandCompany(“BectonDickinson”)aglobalmedicaltechnologycompany,locatedat1BectonDrive,FranklinLanes,NewJersey07417,since2011andbecameChairmanofitsboardin2012.Mr.ForlenzahasservedasBectonDickinson’sChiefExecutiveOfficersince2011andPresidentfrom2009toApril2017.Priortothat,Mr.ForlenzaservedasChiefOperatingOfficerfromJuly2010toOctober2011.Mr.ForlenzajoinedBectonDickinsonin1980andservedinanumberofdifferentcapacities,includingstrategicplanning,businessdevelopment,researchanddevelopment,andgeneralmanagementineachofBectonDickinson’ssegmentsandinoverseasroles.Mr.ForlenzaisamemberoftheboardofdirectorsandformerchairmanoftheAdvancedMedicalTechnologyAssociation(AdvaMed),aninternationalmedicaltechnologytradeorganization.HeisamemberoftheBoardofTrusteesofTheValleyHealthSystemandamemberoftheBoardofDirectorsoftheQuestAutismFoundation.HepreviouslyservedasamemberoftheBoardofTrusteesofLehighUniversityfrom2011to2017.
John J. Goggins UnitedStatesofAmericaExecutiveVicePresidentandGeneralCounsel
JohnJ.GogginshasservedasExecutiveVicePresidentandGeneralCounselofParentsinceApril2011andasSeniorVicePresidentandGeneralCounselofParentfromOctober2000untilApril2011.Mr.GogginsjoinedMoody’sInvestorsService,Inc.inFebruary1999asVicePresidentandAssociateGeneralCounsel.
Kathryn M. Hill UnitedStatesofAmericaDirector
KathrynM.HillisChairmanoftheCompensation&HumanResourcesCommitteeandisamemberoftheExecutive,AuditandGovernance&NominatingCommitteesoftheBoardofDirectorsofParent.MsHillhasover30yearsofexperienceinbusinessmanagementandleadingengineeringandoperationsorganizations.MsHillservedinanumberofpositionsatCiscoSystems,Inc.from1997to2013,including,amongothers,ExecutiveAdvisorfrom2011to2013,SeniorVicePresident,DevelopmentStrategyandOperationsfrom2009to2011,SeniorVicePresident,AccessNetworkingandServicesGroupfrom2008to2009andSeniorVicePresident,EthernetSystemsandWirelessTechnologyGroupfrom2005to2008.Ciscodesigns,manufacturesandsellsInternetProtocol(IP)-basednetworkingandotherproductsrelatedtothecommunicationsandinformationtechnologyindustryandprovidesservicesassociatedwiththeseproducts.PriortoCisco,MsHillhadanumberofengineeringrolesatvarioustechnologycompanies.MsHillcurrentlyservesasadirectorofNetApp,Inc.(2013-present)andCelaneseCorporation(July2015-present).
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Name, Country of Citizenship, Position Present Principal Occupation or Employment; Material Positions
Held During the Past Five Years; Certain Other InformationMelanie Hughes UnitedStatesofAmericaandtheUnitedKingdomSeniorVicePresidentandChiefHumanResourcesOfficer
MelanieHugheshasservedasSeniorVicePresidentandChiefHumanResourcesOfficerofParentsinceSeptember2017.PriortojoiningParent,Ms.HugheswasChiefHumanResourceOfficer&ExecutiveVicePresidentHumanResourcesatAmericanEagleOutfittersfromJuly2016toSeptember2017andservedasExecutiveVicePresident,HumanResourcesatTribuneMediafromMay2013toJune2016.ShehasheldseveralseniormanagementrolesformanydifferentcompaniessuchasCoach,GiltGroup,DoubleClickandUBSWarburg.
Mark Kaye UnitedStatesofAmericaSeniorVicePresidentandChiefFinancialOfficer
MarkKayehasservedasSeniorVicePresidentandChiefFinancialOfficerofParentsinceAugust2018.BeforejoiningMoody’s,Mr.KayewasSeniorVicePresidentandHeadofFinancialPlanning&AnalysisforMassMutualGroupfromMarch2016toAugust2018andChiefFinancialOfficerforMassMutualU.S.,thecompany’sdomesticinsuranceandretirementplanoperationfromJuly2015toAugust2018.PriortojoiningMassMutualin2015,Mr.KayeheldarangeofseniorfinancialleadershiprolesatVoyaFinancial(formerlyINGU.S.)fromFebruary2010throughJuly2015.Mr.KayebeganhiscareerintheinvestmentbankingdivisionofCreditSuisseFirstBoston.
Raymond W. McDaniel, Jr. UnitedStatesofAmericaDirector,PresidentandChiefExecutiveOfficer
RaymondW.McDaniel,Jr.hasservedasthePresidentandChiefExecutiveOfficerofParentsinceApril2012,andservedastheChairmanandChiefExecutiveOfficerfromApril2005untilApril2012.HecurrentlyservesontheExecutiveCommitteeoftheBoardofDirectors.Mr.McDanielservedasParent’sPresidentfromOctober2004untilApril2005andParent’sChiefOperatingOfficerfromJanuary2004untilApril2005.HehasservedasChiefExecutiveOfficerofMoody’sInvestorsService,Inc.,asubsidiaryofParent,sinceOctober2007.HeheldtheadditionaltitlesofPresidentfromNovember2001toAugust2007andDecember2008toNovember2010andChairmanfromOctober2007untilJune2015.Mr.McDanielservedasParent’sExecutiveVicePresidentfromApril2003toJanuary2004,andasSeniorVicePresident,GlobalRatingsandResearchfromNovember2000untilApril2003.HeservedasSeniorManagingDirector,GlobalRatingsandResearch,ofMoody’sInvestorsServicefromNovember2000untilNovember2001andasManagingDirector,Internationalfrom1996toNovember2000.Mr.McDanielcurrentlyisadirectorofJohnWiley&Sons,Inc.(2005-present)andamemberoftheBoardofTrusteesofMuhlenbergCollege(2015-present).
Henry A. McKinnell, Jr., Ph.D. UnitedStatesofAmericaDirector,ChairmanoftheBoard
HenryA.McKinnell,Jr.isChairmanoftheBoardofDirectorsandChairmanoftheExecutiveCommitteeandservesasamemberoftheAudit,Governance&NominatingandCompensation&HumanResourcesCommitteesoftheBoardofDirectorsofParent.Dr.McKinnellservedastheChiefExecutiveOfficerofOptimerPharmaceuticals,Inc.fromFebruary2013untilOctober31,2013.HeservedasChairmanoftheBoardofPfizerInc.,apharmaceuticalcompany,fromMay2001untilhisretirementinDecember2006and
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Name, Country of Citizenship, Position Present Principal Occupation or Employment; Material Positions
Held During the Past Five Years; Certain Other Information
ChiefExecutiveOfficerfromJanuary2001toJuly2006.HeservedasPresidentofPfizerInc.fromMay1999toMay2001,andasPresidentofPfizerPharmaceuticalsGroupfromJanuary1997toApril2001.Dr.McKinnellservedasChiefOperatingOfficerofPfizerInc.fromMay1999toDecember2000andasExecutiveVicePresidentfrom1992to1999.HeservedastheChairmanoftheAccordiaGlobalHealthFoundation,isChairmanEmeritusoftheConnecticutScienceCenterandisLifeDirectoroftheJapanSociety.HecurrentlyservesasadirectorofViewRay,Inc.,FederalStreetAcquisitionCorp.andChemoCentryx,Inc.HeservedasChairmanofOptimerPharmaceuticals,Inc.until2013andEmmausLifeSciencesuntil2015.HeservedasadirectorofAngiotechPharmaceuticals,Inc.until2011,PfizerInc.andExxonMobilCorporationuntil2007andJohnWiley&Sonsuntil2005.
Leslie F. Seidman UnitedStatesofAmericaDirector
LeslieF.SeidmanisChairmanoftheAuditCommitteeandisamemberoftheExecutive,Governance&NominatingandCompensation&HumanResourcesCommitteesoftheBoardofDirectorsofParent.MsSeidmanhasover30yearsofexperienceintheaccountingprofession,servingasamemberoftheFinancialAccountingStandardsBoard(FASB)from2003-2013,andasChairmanforapproximatelythelastthreeyearsofherterm.Duringhertenure,theFASBestablishednumerousaccountingstandardsrelatingtofinancialinstruments,includingsecuritizations,derivativesandcreditlossesandworkedwithregulatorsandpolicymakersintheU.S.,andinothermajorcapitalmarketstodevelopconsistentaccountingstandards.Previously,MsSeidmanwasthefounderandmanagingmemberofafinancialreportingconsultingfirmthatservedglobalfinancialinstitutions,lawfirmsandaccountingfirms.From1987to1996,MsSeidmanservedasVicePresident,AccountingPolicyandinotherrolesatJ.P.Morgan&Company,Inc.(nowJPMorganChase&Co.)andfrom1984to1987,MsSeidmanservedasanauditorforArthurYoung&Co.(nowErnst&Young,LLP).MsSeidmancurrentlyservesasadirectorofGeneralElectric(2018-present)andaPublicGovernoroftheFinancialIndustryRegulatoryAuthority(2014-present).SheisalsoanadvisortoIdaciti,Inc.,astart-upfintechcompany(2017-present).
Bruce Van Saun UnitedStatesofAmericaDirector
BruceVanSaunisamemberoftheAudit,Governance&NominatingandCompensation&HumanResourcesCommitteesoftheBoardofDirectorsofParent.HehasservedasChairmanandChiefExecutiveOfficerofCitizensFinancialGroup,Inc.,alargeregionalbank,locatedatOneCitizensPlaza,Providence,RhodeIsland02903,sinceOctober2013.HejoinedCitizensfromtheRoyalBankofScotlandGroup,Plc,aglobalbankingandfinancialservicesgroup.HeledCitizenstoasuccessfulinitialpublicofferinginSeptember2014,andfullindependencefromRBSinOctober2015.AtRBS,Mr.VanSaunservedasGroupFinanceDirectorandasanexecutivedirectorontheRBSboardfrom2009to2013.Priortothat,Mr.VanSaunheldanumberofseniorpositionswithBankofNewYorkandlaterBankof
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Name, Country of Citizenship, Position Present Principal Occupation or Employment; Material Positions
Held During the Past Five Years; Certain Other Information
NewYorkMellonoveran11-yearperiod.AsViceChairmanandChiefFinancialOfficer,hewasactivelyinvolvedinthestrategictransformationofBankofNewYorkfromadiversifiedregionalbankintoafocusedglobalsecuritiesservicerandassetmanager.Earlierinhismorethan30-yearfinancialservicescareer,heheldseniorpositionswithDeutscheBank,WassersteinPerellaGroupandKidderPeabody&Co.Mr.VanSaunhasservedonanumberofboardsinboththeU.S.andtheU.K.HecurrentlysitsontheFederalAdvisoryCouncilandisamemberofTheClearingHouseSupervisoryBoard.HealsoservesontheboardsoftheNationalConstitutionCenter,thePartnershipforRhodeIslandandJobsforMassachusetts.HehaspreviouslyservedontheboardsofTheRoyalBankofScotlandGroupplcandNationalWestminsterBank,Plc,eachanRBSaffiliate,fromOctober2009toOctober2013.HealsoservedontheboardsofConvergExInc.fromMay2007toOctober2013,DirectLineInsuranceGroupplcfromApril2012toOctober2013andWorldPay(ShipMidcoLimited)fromJuly2011toSeptember2013,andonthefranchiseboardofLloyd’sofLondonfromSeptember2012toMay2016.
Blair L. Worrall UnitedStatesofAmericaSeniorVicePresident—RatingsDeliveryandData
BlairL.WorrallhasservedasSeniorVicePresident–RatingsDeliveryandDataofParentinFebruary2013andHeadofMoody’sInvestorsServiceOperations,Data&ControlssinceFebruary2016.HeservedasHeadofMoody’sInvestorsServiceOperationsRatingsTransactionServicesfromJanuary2014toFebruary2016.Mr.WorrallservedasSeniorVicePresident-InternalAuditfromApril2011toFebruary2013andasVicePresident-InternalAuditfromSeptember2007toApril2011.HeservedastheControllerforMoody’sInvestorsServiceOperationsfromNovember2004untilSeptember2007.PriortojoiningtheParent,Mr.WorrallwasVicePresident,AccountingforRCNCorporationfrom2002to2004andheldvariousfinancepositionsatDowJones&Company,Inc.from1979to2001.
Gerrit Zalm TheNetherlandsDirector
GerritZalmisamemberoftheAudit,Governance&NominatingandCompensation&HumanResourcesCommitteesoftheBoardofDirectorsofParent.HeservedasChairmanandChiefExecutiveOfficerofABNAMROfrom2009to2016.In2008,Mr.ZalmservedasChiefFinancialOfficerofDSBBankN.V.andasitsChiefEconomistfrom2007to2008.From2007to2010,Mr.ZalmservedastheChairmanoftheTrusteesoftheInternationalAccountingStandardsBoard.Mr.ZalmwasMinisterofFinanceoftheNetherlandsfrom2003to2007and1994to2002andservedintheNetherlandsHouseofRepresentativesastheParliamentaryLeaderoftheVVDPartyfrom2002to2003.Priorto1994,Mr.ZalmwasheadoftheNetherlandsBureauforEconomicPolicyAnalysis,heldvariouspositionsattheNetherlandsMinistryofFinanceandMinistryofEconomicAffairsandwasaprofessoratVrijeUniversiteitAmsterdam.Mr.ZalmhasservedasadirectorofRoyalDutchShellsince2013.
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TheLetterofTransmittal,certificatesforSharesandanyotherrequireddocumentsshouldbesentbyeachstockholderofReisorsuchstockholder’sbroker,dealer,commercialbank,trustcompanyorothernomineetotheDepositaryasfollows:
TheDepositaryfortheOfferis:
By Mail:
AmericanStockTransfer&TrustCompany,LLCOperationsCenter
Attn:ReorganizationDepartment620115thAvenue
Brooklyn,NewYork11219
By Overnight Courier: AmericanStockTransfer&TrustCompany,LLC
OperationsCenterAttn:ReorganizationDepartment
620115thAvenueBrooklyn,NewYork11219
AnyquestionsorrequestsforassistancemaybedirectedtotheInformationAgentatitstelephonenumberandlocationlistedbelow.RequestsforadditionalcopiesofthisOffertoPurchaseandtheLetterofTransmittalmaybedirectedtotheInformationAgentatitstelephonenumberandlocationlistedbelow.Youmayalsocontactyourbroker,dealer,commercialbankortrustcompanyorothernomineeforassistanceconcerningtheOffer.
TheInformationAgentfortheOfferis:
D.F.King&Co.,Inc.48WallStreet,22ndFloorNewYork,NewYork10005
BanksandBrokers,CallCollect:(212)269-5550AllOthersCallTollFree:(877)732-3617
Email:[email protected]
Exhibit (a)(1)(B)Letter of Transmittal to Tender Shares of Common Stock
ofREIS, INC.
at $23.00 Net Per Share in Cash Pursuant to the Offer to Purchase dated September 13, 2018by MOODY’S ANALYTICS MARYLAND CORP.,
a wholly-owned subsidiary of MOODY’S CORPORATION.
The undersigned represents that I (we) have full authority to surrender without restriction the certificate(s) listed below. You are hereby authorized andinstructed to deliver to the address indicated below (unless otherwise instructed in the boxes in the following page) a check representing a cash paymentfor shares of common stock, par value $0.02 per share, of Reis, Inc. (“Reis”) (collectively, the “Shares”) tendered pursuant to this Letter of Transmittal,at a price of $23.00 per share, net to the seller in cash, without interest and less any applicable withholding taxes, upon the terms and subject to theconditions set forth in the Offer to Purchase, dated September 13, 2018 (as it may be amended or supplemented from time to time, the “Offer toPurchase” and, together with this Letter of Transmittal, as it may be amended or supplemented from time to time, the “Offer”). Each Share owned byany of Reis’s wholly-owned subsidiaries or by Parent or any of its subsidiaries (including Purchaser) shall not be tendered in the Offer but shall insteadbe converted at the effective time of the Merger into one (1) fully paid and non-assessable share of common stock, par value $0.01 per share, of theSurviving Corporation.
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 11:59 P.M., EASTERN TIME, ON OCTOBER 12, 2018, UNLESS THEOFFER IS EXTENDED OR EARLIER TERMINATED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED THE “EXPIRATION TIME”).
Methodofdeliveryofthecertificate(s)isattheoptionandriskoftheownerthereof.SeeInstruction2.
MailordeliverthisLetterofTransmittal,togetherwiththecertificate(s)representingyourshares,to:
Ifdeliveringbyhand,expressmail,courier,
orotherexpeditedservice: Bymail:
AmericanStockTransfer&TrustCompany,LLCOperationsCenter
Attn:ReorganizationDepartment620115thAvenue
Brooklyn,NewYork11219
AmericanStockTransfer&TrustCompany,LLCOperationsCenter
Attn:ReorganizationDepartment620115thAvenue
Brooklyn,NewYork11219
DELIVERY OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE WILL NOTCONSTITUTE A VALID DELIVERY. YOU MUST SIGN THIS LETTER OF TRANSMITTAL WHERE INDICATED BELOW AND, IF YOUARE A U.S. HOLDER, COMPLETE THE IRS FORM W-9 ENCLOSED WITH THIS LETTER OF TRANSMITTAL. IF YOU ARE ANON-U.S.-HOLDER, YOU MUST OBTAIN AND COMPLETE AN IRS FORM W-8BEN OR OTHER IRS FORM W-8, AS APPLICABLE.
PursuanttotheofferofMoody’sAnalyticsMarylandCorp.(“Purchaser”)topurchasealloutstandingSharesofReis,Inc.,theundersignedenclosesherewithandsurrendersthefollowingcertificate(s)representingSharesofReis,Inc.:
DESCRIPTIONOFSHARESSURRENDERED
Name(s)andAddress(es)ofRegisteredOwner(s)(Ifblank,pleasefillinexactlyasname(s)appear(s)onsharecertificate(s))
SharesSurrendered(attachedadditionallistifnecessary)
CertificatedShares**
CertificateNumber(s)*
TotalNumberofShares
RepresentedbyCertificate(s)*
NumberofSharesSurrendered**
BookEntryShares
Surrendered
TotalShares
* Neednotbecompletedbybook-entrystockholders.** Unlessotherwiseindicated,itwillbeassumedthatallsharesof
commonstockrepresentedbycertificatesdescribedabovearebeingsurrenderedhereby.
2
PLEASE READ THE INSTRUCTIONS ACCOMPANYING THIS LETTER OF TRANSMITTAL CAREFULLY BEFORE COMPLETINGTHIS LETTER OF TRANSMITTAL.
IF YOU WOULD LIKE ADDITIONAL COPIES OF THIS LETTER OF TRANSMITTAL OR ANY OF THE OTHER OFFERINGDOCUMENTS, YOU SHOULD CONTACT THE INFORMATION AGENT, D.F. KING AT (877) 732-3617.
YouhavereceivedthisLetterofTransmittalinconnectionwiththeofferofMoody’sAnalyticsMarylandCorp.,aMarylandcorporation(the“Purchaser”)andawholly-ownedsubsidiaryofMoody’sCorporation,aDelawarecorporation(the“Parent”),topurchasealloutstandingsharesofcommonstock,parvalue$0.02pershare(the“Shares”),ofReis,Inc.,aMarylandcorporation(“Reis”),atapriceof$23.00perShare,nettothesellerincash,withoutinterestandlessanyapplicablewithholdingtaxes,onthetermsandsubjecttotheconditionssetforthintheOffertoPurchase,datedSeptember13,2018(the“OffertoPurchase”and,togetherwiththisLetterofTransmittal,aseachmaybeamendedorsupplementedfromtimetotime,the“Offer”).EachShareownedbyanyofReis’swholly-ownedsubsidiariesorbyParentoranyofitssubsidiaries(includingPurchaser)shallnotbetenderedintheOfferbutshallinsteadbeconvertedattheEffectiveTimeintoone(1)fullypaidandnon-assessableshareofcommonstock,parvalue$0.01pershare,oftheSurvivingCorporation(asdefinedintheOffertoPurchase).
YoushouldusethisLetterofTransmittaltodelivertoAmericanStockTransfer&TrustCompany(the“Depositary”)Sharesrepresentedbystockcertificates,orheldinbook-entryformonthebooksofReis,fortender.IfyouaredeliveringyourSharesbybook-entrytransfertoanaccountmaintainedbytheDepositaryatTheDepositoryTrustCompany(“DTC”),youmustuseanAgent’sMessage(asdefinedinInstruction2below).InthisLetterofTransmittal,stockholderswhodelivercertificatesrepresentingtheirSharesarereferredtoas“CertificateStockholders,”andstockholderswhodelivertheirSharesthroughbook-entrytransferarereferredtoas“Book-EntryStockholders.”
IfcertificatesforyourSharesarenotimmediatelyavailableoryoucannotdeliveryourcertificatesandallotherrequireddocumentstotheDepositarypriortotheExpirationTimeoryoucannotcompletethebook-entrytransferprocedurespriortotheExpirationTime,youmayneverthelesstenderyourSharesaccordingtotheguaranteeddeliveryproceduressetforthinSection3oftheOffertoPurchase.SharestenderedbytheNoticeofGuaranteedDeliverywillbeexcludedfromthecalculationoftheMinimumTenderCondition(asdefinedintheOffertoPurchase),unlesssuchSharesandotherrequireddocumentsarereceivedbytheDepositarybytheExpirationTime.SeeInstruction2below.Delivery of documents to DTC will not constitutedelivery to the Depositary.
Additional Information if Certificates Have Been Lost, Destroyed or Stolen, Are Being Delivered By Book-Entry Transfer, or Are BeingDelivered Pursuant to a Previous Notice of Guaranteed Delivery
Ifanycertificate(s)forSharesyouaretenderingwiththisLetterofTransmittalhasbeenlost,stolen,destroyedormutilated,thenyoushouldcontactComputershareInvestorServices,theCompany’stransferagent(the“TransferAgent”),tollfreeat(877)373-6374,orinternationalat(781)575-2879regardingtherequirementsforreplacement.Youmayberequiredtoexecuteanddeliveracustomaryindemnityagreementtoprovideindemnityagainsttheriskthatthecertificate(s)forSharesmaybesubsequentlyrecirculated.You are urged to contact the Transfer Agent immediately in order to receivefurther instructions for a determination of whether you will need to post a bond and to permit timely processing of this documentation. SeeInstruction 10.
3
☐ CHECK HERE IF TENDERED SHARES ARE BEING DELIVERED BY BOOK-ENTRY TRANSFER TO THE ACCOUNTMAINTAINED BY THE DEPOSITARY WITH DTC AND COMPLETE THE FOLLOWING (ONLY FINANCIAL INSTITUTIONS THATARE PARTICIPANTS IN DTC MAY DELIVER SHARES BY BOOK-ENTRY TRANSFER):
NameofTendering Institution:
DTCParticipant Number:
TransactionCode 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 (PLEASE ENCLOSE A PHOTOCOPY OF SUCHNOTICE OF GUARANTEED DELIVERY):
Name(s)ofRegisteredOwner(s):
WindowTicketNumber(ifany)orDTCParticipantNumber:
DateofExecutionofNoticeofGuaranteedDelivery:
NameofInstitutionwhichGuaranteedDelivery:
NOTE: SIGNATURES MUST BE PROVIDED BELOW.PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY.
4
LadiesandGentlemen:
TheundersignedherebytenderstoMoody’sAnalyticsMarylandCorp.,aMarylandcorporation(“Purchaser”)andawholly-ownedsubsidiaryofMoody’sCorporation,aDelawarecorporation(“Parent”),theabove-describedsharesofcommonstock,parvalue$0.02pershare(the“Shares”),ofReis,Inc.,aMarylandcorporation(“Reis”),atapriceof$23.00perShare,nettothesellerincash,withoutinterestandlessanyapplicablewithholdingtaxes,onthetermsandsubjecttotheconditionssetforthintheOffertoPurchase,receiptofwhichisherebyacknowledged,andthisLetterofTransmittal(asitmaybeamendedorsupplementedfromtimetotime,this“LetterofTransmittal”and,togetherwiththeOffertoPurchase,asitmaybeamendedorsupplementedfromtimetotime,the“Offer”).TheundersignedunderstandsthatPurchaserreservestherighttotransferorassign,fromtimetotime,inwholeorinpart,tooneormoreofitsaffiliates,therighttopurchasetheSharestenderedherewith.
OnthetermsandsubjecttotheconditionsoftheOffer(including,iftheOfferisextendedoramended,thetermsandconditionsofsuchextensionoramendment),subjectto,andeffectiveupon,acceptanceforpaymentandpaymentfortheSharesvalidlytenderedherewith,andnotproperlywithdrawn,priortotheExpirationTime(unlessthetenderismadeduringasubsequentofferingperiod,ifoneisprovided,inwhichcasetheShares,theLetterofTransmittalandotherdocumentsmustbeacceptedforpaymentandpaymentvalidlytendered,andnotproperlywithdrawn,priortotheexpirationofthesubsequentofferingperiod)andinaccordancewiththetermsoftheOffer,theundersignedherebysells,assignsandtransfersto,orupontheorderof,Purchaser,allright,titleandinterestinandtoalloftheSharesbeingtenderedherebyandanyandallcashdividends,distributions,rights,otherSharesorothersecuritiesissuedorissuableinrespectofsuchSharesonorafterthedatehereof(collectively,“Distributions”).Inaddition,theundersignedherebyirrevocablyappointsAmericanStockTransfer&TrustCompany,LLC(the“Depositary”)thetrueandlawfulagentandattorney-in-factandproxyoftheundersignedwithrespecttosuchSharesandanyDistributionswithfullpowerofsubstitution(suchproxiesandpowerofattorneybeingdeemedtobeanirrevocablepowercoupledwithaninterestinthetenderedshares)tothefullextentofsuchstockholder’srightswithrespecttosuchSharesandanyDistributions(a)todelivercertificatesrepresentingShares(the“ShareCertificates”)andanyDistributions,ortransferofownershipofsuchSharesandanyDistributionsontheaccountbooksmaintainedbyTheDepositoryTrustCompany(“DTC”),together,ineithersuchcase,withallaccompanyingevidenceoftransferandauthenticity,toorupontheorderofPurchaser,(b)topresentsuchSharesandanyDistributionsfortransferonthebooksofReis,and(c)toreceiveallbenefitsandotherwiseexerciseallrightsofbeneficialownershipofsuchSharesandanyDistributions,allinaccordancewiththetermsandsubjecttotheconditionsoftheOffer.
ByexecutingthisLetterofTransmittal(ortakingactionresultinginthedeliveryofanAgent’sMessage),theundersignedherebyirrevocablyappointseachofthedesigneesofPurchasertheattorneys-in-factandproxiesoftheundersigned,eachwithfullpowerofsubstitution,tothefullextentofsuchstockholder’srightswithrespecttotheSharestenderedherebywhichhavebeenacceptedforpaymentandwithrespecttoanyDistributions.ThedesigneesofPurchaserwill,withrespecttotheSharesandanyassociatedDistributionsforwhichtheappointmentiseffective,beempoweredtoexerciseallvotingandanyotherrightsofsuchstockholder,asthey,intheirsolediscretion,maydeemproperatanyannual,special,adjournedorpostponedmeetingofReis’sstockholders,bywrittenconsentinlieuofanysuchmeetingorotherwise.ThisproxyandpowerofattorneyshallbeirrevocableandcoupledwithaninterestinthetenderedShares.Suchappointmentiseffectivewhen,andonlytotheextentthat,PurchaseracceptstheSharestenderedwiththisLetterofTransmittalforpaymentpursuanttotheOffer.Upontheeffectivenessofsuchappointment,withoutfurtheraction,allpriorpowersofattorney,proxiesandconsentsgivenbytheundersignedwithrespecttosuchSharesandanyassociatedDistributionswillberevokedandnosubsequentpowersofattorney,proxies,consentsorrevocationsmaybegiven(and,ifgiven,willnotbedeemedeffective).Purchaserreservestherighttorequirethat,inorderforSharestobedeemedvalidlytendered,immediatelyuponPurchaser’sacceptanceforpaymentofsuchShares,Purchasermustbeabletoexercisefullvoting,consentandotherrights,totheextentpermittedunderapplicablelaw,withrespecttosuchSharesandanyassociatedDistributions,includingvotingatanymeetingofstockholdersorexecutingawrittenconsentconcerninganymatter.
Theundersignedherebyrepresentsandwarrantsthattheundersignedhasfullpowerandauthoritytotender,sell,assignandtransfertheSharesandanyDistributionstenderedherebyand,whenthesameareacceptedforpaymentbyPurchaser,Purchaserwillacquiregood,marketableandunencumberedtitlethereto,freeandclearofallliens,restrictions,chargesandencumbrancesandthesamewillnotbesubjecttoanyadverseclaim.Theundersignedherebyrepresentsandwarrantsthat
5
theundersignedistheregisteredowneroftheShares,ortheShareCertificate(s)havebeenendorsedtotheundersignedinblank,ortheundersignedisaparticipantinDTCwhosenameappearsonasecuritypositionlistingastheowneroftheShares.Theundersignedwill,uponrequest,executeanddeliveranyadditionaldocumentsdeemedbytheDepositaryorPurchasertobenecessaryordesirabletocompletethesale,assignmentandtransferoftheSharesandanyDistributionstenderedhereby.Inaddition,theundersignedshallpromptlyremitandtransfertotheDepositaryfortheaccountofPurchaseranyandallDistributionsinrespectoftheSharestenderedhereby,accompaniedbyappropriatedocumentationoftransferand,pendingsuchremittanceorappropriateassurancethereof,PurchasershallbeentitledtoallrightsandprivilegesasownerofanysuchDistributionsandmaywithholdtheentirepurchasepriceordeductfromthepurchasepricetheamountorvaluethereof,asdeterminedbyPurchaserinitssolediscretion.
ItisunderstoodthattheundersignedwillnotreceivepaymentfortheSharesunlessanduntiltheSharesareacceptedforpaymentanduntiltheShareCertificate(s)ownedbytheundersignedarereceivedbytheDepositaryattheaddresssetforthabove,togetherwithsuchadditionaldocumentsastheDepositarymayrequire,or,inthecaseofSharesheldinbook-entryform,ownershipofSharesisvalidlytransferredontheaccountbooksmaintainedbyDTC,anduntilthesameareprocessedforpaymentbytheDepositary.
IT IS UNDERSTOOD THAT THE METHOD OF DELIVERY OF THE SHARES, THE SHARE CERTIFICATE(S) AND ALL OTHERREQUIRED DOCUMENTS (INCLUDING DELIVERY THROUGH DTC) IS AT THE OPTION AND RISK OF THE UNDERSIGNED ANDTHAT THE RISK OF LOSS OF SUCH SHARES, SHARE CERTIFICATE(S) AND OTHER DOCUMENTS SHALL PASS ONLY AFTER THEDEPOSITARY HAS ACTUALLY RECEIVED THE SHARES OR SHARE CERTIFICATE(S) (INCLUDING, IN THE CASE OF A BOOK-ENTRY TRANSFER, BY BOOK-ENTRY CONFIRMATION (AS DEFINED BELOW)). IF DELIVERY IS BY MAIL, IT IS RECOMMENDEDTHAT ALL SUCH DOCUMENTS BE SENT BY PROPERLY INSURED REGISTERED MAIL WITH RETURN RECEIPT REQUESTED. INALL CASES, SUFFICIENT TIME SHOULD BE ALLOWED TO ENSURE TIMELY DELIVERY.
AllauthorityconferredoragreedtobeconferredpursuanttothisLetterofTransmittalshallnotbeaffectedby,andshallsurvive,thedeathorincapacityoftheundersignedandanyobligationoftheundersignedhereundershallbebindingupontheheirs,executors,administrators,trusteesinbankruptcy,personalrepresentatives,successorsandassignsoftheundersigned.ExceptasstatedintheOffertoPurchase,thistenderisirrevocable.
TheundersignedunderstandsthattheacceptanceforpaymentbyPurchaserofSharestenderedpursuanttooneoftheproceduresdescribedinSection3oftheOffertoPurchaseandintheinstructionsheretowillconstituteabindingagreementbetweentheundersignedandPurchaseruponthetermsandsubjecttotheconditionsoftheOffer.
Unlessotherwiseindicatedhereinunder“SpecialPaymentInstructions,”pleaseissuethecheckforthepurchasepriceinthename(s)of,and/orreturnanyShareCertificatesrepresentingSharesnottenderedoracceptedforpaymentto,theregisteredowner(s)appearingunder“DescriptionofSharesTendered.”Similarly,unlessotherwiseindicatedunder“SpecialDeliveryInstructions,”pleasemailthecheckforthepurchasepriceand/orreturnanyShareCertificatesrepresentingSharesnottenderedoracceptedforpayment(andaccompanyingdocuments,asappropriate)totheaddress(es)oftheregisteredowner(s)appearingunder“DescriptionofSharesTendered.”IntheeventthatboththeSpecialDeliveryInstructionsandtheSpecialPaymentInstructionsarecompleted,pleaseissuethecheckforthepurchasepriceand/orissueanyShareCertificatesrepresentingSharesnottenderedoracceptedforpayment(andanyaccompanyingdocuments,asappropriate)inthenameof,anddeliversuchcheckand/orreturnsuchShareCertificates(andanyaccompanyingdocuments,asappropriate)to,thepersonorpersonssoindicated.Unlessotherwiseindicatedhereinintheboxtitled“SpecialPaymentInstructions,”pleasecreditanySharestenderedherebyorbyanAgent’sMessageanddeliveredbybook-entrytransfer,butwhicharenotpurchased,bycreditingtheaccountatDTCdesignatedabove.TheundersignedrecognizesthatPurchaserhasnoobligationpursuanttotheSpecialPaymentInstructionstotransferanySharesfromthenameoftheregisteredownerthereofifPurchaserdoesnotacceptforpaymentanyoftheSharessotendered.
6
SPECIAL PAYMENT INSTRUCTIONS(See Instructions 1, 4, 5 and 7)
TobecompletedONLYifShareCertificate(s)nottenderedornotacceptedforpaymentand/orthecheckforthepurchasepriceinconsiderationofSharesacceptedforpaymentaretobeissuedinthenameofsomeoneotherthantheundersignedorifSharestenderedbybook-entrytransferwhicharenotacceptedforpaymentaretobereturnedbycredittoanaccountmaintainedatDTCotherthanthatdesignatedabove.
Issue:☐Checkand/or☐ShareCertificatesto:Name:
(Please Print)
Address:
(Include Zip Code)
(Tax Identification or Social Security Number)
☐ Credit Shares tendered by book-entry transfer that are not accepted for payment to the DTC account set forth below.
(DTC Account Number)
SPECIAL DELIVERY INSTRUCTIONS(See Instructions 1, 4, 5 and 7)
TobecompletedONLYifShareCertificate(s)nottenderedornotacceptedforpaymentand/orthecheckforthepurchasepriceofSharesacceptedforpaymentaretobesenttosomeoneotherthantheundersignedortotheundersignedatanaddressotherthanthatshownintheboxtitled“DescriptionofSharesTendered”above.
Deliver:☐Check(s)and/or☐ShareCertificatesto:Name:
(Please Print)
Address:
(Include Zip Code)
7
IMPORTANT—SIGN HERE(U.S. Holders Please Also Complete the Enclosed IRS Form W-9)
(Non-U.S. Holders Please Obtain and Complete IRS Form W-8BEN or Other Applicable IRS Form W-8)
(Signature(s) of Stockholder(s))
Dated:,2018
(Mustbesignedbyregisteredowner(s)exactlyasname(s)appear(s)onShareCertificate(s)oronasecuritypositionlistingorbyperson(s)authorizedtobecomeregisteredowner(s)bycertificatesanddocumentstransmittedherewith.Ifsignatureisbytrustees,executors,administrators,guardians,attorneys-in-fact,officersofcorporationsorothersactinginafiduciaryorrepresentativecapacity,pleasesetforthfulltitleandseeInstruction5.Forinformationconcerningsignatureguarantees,seeInstruction1.)Name(s):
(Please Print)Capacity(fulltitle): Address:
(Include Zip Code)
AreaCodeandTelephoneNumber: TaxIdentificationorSocialSecurityNo.:
GUARANTEE OF SIGNATURE(S)(For use by Eligible Institutions only;
see Instructions 1 and 5)NameofFirm:
(Include Zip Code)
AuthorizedSignature: Name:
(Please Type or Print)
AreaCodeandTelephoneNumber:
Dated:,2018 Place medallion guarantee in space below:
8
INSTRUCTIONSForming Part of the Terms and Conditions of the Offer
1.Guarantee of Signatures. Exceptasotherwiseprovidedbelow,allsignaturesonthisLetterofTransmittalmustbeguaranteedbyafinancialinstitution(includingmostcommercialbanks,savingsandloanassociationsandbrokeragehouses)thatisamemberingoodstandingofarecognizedMedallionProgramapprovedbytheSecuritiesTransferAssociation,Inc.,includingtheSecurityTransferAgentsMedallionProgram,theNewYorkStockExchangeMedallionSignatureProgramandtheStockExchangesMedallionProgram(each,an“EligibleInstitution”).SignaturesonthisLetterofTransmittalneednotbeguaranteed(a)ifthisLetterofTransmittalissignedbytheregisteredowner(s)(whichterm,forpurposesofthisdocument,includesanyparticipantinanyofDTC’ssystemswhosenameappearsonasecuritypositionlistingastheowneroftheShares)ofSharestenderedherewithandsuchregisteredownerhasnotcompletedtheboxtitled“SpecialPaymentInstructions”ortheboxtitled“SpecialDeliveryInstructions”onthisLetterofTransmittalor(b)ifsuchSharesaretenderedfortheaccountofanEligibleInstitution.SeeInstruction5.
2.Delivery of Letter of Transmittal and Certificates or Book-Entry Confirmations. ThisLetterofTransmittalistobecompletedbystockholdersifShareCertificatesaretobeforwardedherewith.Iftendersaretobemadepursuanttotheproceduresfortenderbybook-entrytransfersetforthinSection3oftheOffertoPurchase,anAgent’sMessagemustbeutilized.Amanuallyexecutedfacsimileofthisdocumentmaybeusedinlieuoftheoriginal.ShareCertificatesrepresentingallphysicallytenderedShares,orconfirmationofanybook-entrytransferintotheDepositary’saccountatDTCofSharestenderedbybook-entrytransfer(“BookEntryConfirmation”),aswellasthisLetterofTransmittalproperlycompletedanddulyexecutedwithanyrequiredsignatureguarantees,oranAgent’sMessageinthecaseofabook-entrytransfer,andanyotherdocumentsrequiredbythisLetterofTransmittal,mustbereceivedbytheDepositaryatitsaddresssetforthhereinpriortotheExpirationTime(unlessthetenderismadeduringasubsequentofferingperiod,ifoneisprovided,inwhichtheShares,theLetterofTransmittalandotherdocumentsmustbereceivedpriortotheexpirationofthesubsequentofferingperiod.PleasedonotsendyourShareCertificatesdirectlytoPurchaser,Parent,orReis.
StockholderswhoseShareCertificatesarenotimmediatelyavailableorwhocannotdeliverallotherrequireddocumentstotheDepositarypriortotheExpirationTimeorwhocannotcompletetheproceduresforbook-entrytransferpriortotheExpirationTimemayneverthelesstendertheirSharesbyproperlycompletinganddulyexecutingaNoticeofGuaranteedDeliverypursuanttotheguaranteeddeliveryproceduresetforthinSection3oftheOffertoPurchase.Pursuanttosuchprocedure:(a)suchtendermustbemadebyorthroughanEligibleInstitution,(b)aproperlycompletedanddulyexecutedNoticeofGuaranteedDeliverysubstantiallyintheformprovidedbyPurchasermustbereceivedbytheDepositarypriortotheExpirationTime(orpriortotheexpirationofthesubsequentofferingperiod,asapplicable),and(c)ShareCertificatesrepresentingalltenderedShares,inproperformfortransfer(oraBookEntryConfirmationwithrespecttosuchShares),thisLetterofTransmittal(orfacsimilethereof),properlycompletedanddulyexecutedwithanyrequiredsignatureguarantees(or,inthecaseofabook-entrytransfer,anAgent’sMessage),andallotherdocumentsrequiredbythisLetterofTransmittal,ifany,mustbereceivedbytheDepositarywithintwoNASDAQStockMarkettradingdaysafterthedateofexecutionofsuchNoticeofGuaranteedDelivery.Forpurposesoftheforegoing,atradingdayisanydayonwhichtheNASDAQStockMarketisopenforbusiness.SharestenderedbyNoticeofGuaranteedDeliverywillbeexcludedfromthecalculationoftheMinimumTenderCondition(assuchtermisdefinedintheOffertoPurchase),unlesssuchSharesandotherrequireddocumentsarereceivedbytheDepositarybytheExpirationTime.
AproperlycompletedanddulyexecutedLetterofTransmittal(orfacsimilethereof)mustaccompanyeachsuchdeliveryofShareCertificatestotheDepositary.
Theterm“Agent’sMessage”meansamessage,transmittedthroughelectronicmeansbyDTCto,andreceivedby,theDepositaryandformingpartofaBook-EntryConfirmation,whichstatesthatDTChasreceivedanexpressacknowledgmentfromtheparticipantinDTCtenderingtheShareswhicharethesubjectofsuchBook-EntryConfirmationthatsuchparticipanthasreceivedandagreestobeboundbythetermsofthisLetterofTransmittalandthatPurchasermayenforcesuchagreementagainsttheparticipant.Theterm“Agent’sMessage”alsoincludesanyhardcopyprintoutevidencingsuchmessagegeneratedbyacomputerterminalmaintainedattheDepositary’soffice.ForSharestobevalidlytenderedduringanysubsequentofferingperiod,thetenderingstockholdermustcomplywiththeforegoingprocedures,exceptthatthe
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requireddocumentsandcertificatesmustbereceivedbeforetheexpirationofthesubsequentofferingperiodandnoguaranteeddeliveryprocedurewillbeavailableduringasubsequentofferingperiod.
THE METHOD OF DELIVERY OF THE SHARES, THIS LETTER OF TRANSMITTAL AND ALL OTHER REQUIRED DOCUMENTS,INCLUDING DELIVERY THROUGH DTC, IS AT THE ELECTION AND RISK OF THE TENDERING STOCKHOLDER. DELIVERY OFALL SUCH DOCUMENTS WILL BE DEEMED MADE AND RISK OF LOSS OF THE SHARE CERTIFICATES SHALL PASS ONLY WHENACTUALLY RECEIVED BY THE DEPOSITARY (INCLUDING, IN THE CASE OF A BOOK-ENTRY TRANSFER, BY BOOK-ENTRYCONFIRMATION). IF SUCH DELIVERY IS BY MAIL, IT IS RECOMMENDED THAT ALL SUCH DOCUMENTS BE SENT BY PROPERLYINSURED REGISTERED MAIL WITH RETURN RECEIPT REQUESTED. IN ALL CASES, SUFFICIENT TIME SHOULD BE ALLOWEDTO ENSURE TIMELY DELIVERY.
Noalternative,conditionalorcontingenttenderswillbeacceptedandnofractionalShareswillbepurchased.Alltenderingstockholders,byexecutionofthisLetterofTransmittal(orfacsimilethereof),waiveanyrighttoreceiveanynoticeoftheacceptanceoftheirSharesforpayment.
Allquestionsastovalidity,formandeligibility(includingtimeofreceipt)ofthesurrenderofanyShareCertificatehereunder,includingquestionsastothepropercompletionorexecutionofanyLetterofTransmittal,NoticeofGuaranteedDeliveryorotherrequireddocumentsandastotheproperformfortransferofanycertificateofShares,willbedeterminedbyPurchaserinitssoleandabsolutediscretion(whichmaydelegatepowerinwholeorinparttotheDepositary)whichdeterminationwillbefinalandbinding.Purchaserreservestheabsoluterighttorejectanyandalltendersdeterminedbyitnottobeinproperformortheacceptanceforpaymentoforpaymentforwhichmaybeunlawful.PurchaseralsoreservestheabsoluterighttowaiveanydefectorirregularityinthesurrenderofanySharesorShareCertificate(s)whetherornotsimilardefectsorirregularitiesarewaivedinthecaseofanyotherstockholder.Asurrenderwillnotbedeemedtohavebeenvalidlymadeuntilalldefectsandirregularitieshavebeencuredorwaived.PurchaserandtheDepositaryshallmakereasonableeffortstonotifyanypersonofanydefectinanyLetterofTransmittalsubmittedtotheDepositary.
3.Inadequate Space. Ifthespaceprovidedhereinisinadequate,thecertificatenumbersand/orthenumberofSharesshouldbelistedonaseparatescheduleattachedheretoandseparatelysignedoneachpagethereofinthesamemannerasthisLetterofTransmittalissigned.
4.Partial Tenders (Applicable to Certificate Stockholders Only ). IffewerthanalltheSharesevidencedbyanyShareCertificatedeliveredtotheDepositaryaretobetendered,fillinthenumberofShareswhicharetobetenderedinthecolumntitled“NumberofSharesTendered”intheboxtitled“DescriptionofSharesTendered.”Insuchcases,newcertificate(s)fortheremainderoftheSharesthatwereevidencedbytheoldcertificate(s)butnottenderedwillbesenttotheregisteredowner,unlessotherwiseprovidedintheappropriateboxonthisLetterofTransmittal,assoonaspracticableaftertheExpirationTime.AllSharesrepresentedbyShareCertificatesdeliveredtotheDepositarywillbedeemedtohavebeentenderedunlessotherwiseindicated.
5.Signatures on Letter of Transmittal; Stock Powers and Endorsements. IfthisLetterofTransmittalissignedbytheregisteredowner(s)oftheSharestenderedhereby,thesignature(s)mustcorrespondwiththename(s)aswrittenonthefaceoftheShareCertificate(s)withoutalterationoranyotherchangewhatsoever.
IfanySharestenderedherebyareownedofrecordbytwoormorejointowners,allsuchownersmustsignthisLetterofTransmittal.
IfanytenderedSharesareregisteredinthenamesofdifferentholder(s),itwillbenecessarytocomplete,signandsubmitasmanyseparateLettersofTransmittal(orfacsimilesthereof)astherearedifferentregistrationsofsuchShares.
IfthisLetterofTransmittaloranycertificatesorstockpowersaresignedbytrustees,executors,administrators,guardians,attorneys-in-fact,officersofcorporationsorothersactinginafiduciaryorrepresentativecapacity,suchpersonsshouldsoindicatewhensigning,andproperevidencesatisfactorytoPurchaseroftheirauthoritysotoactmustbesubmitted.
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IfthisLetterofTransmittalissignedbytheregisteredowner(s)oftheShareslistedandtransmittedhereby,noendorsementsofShareCertificatesorseparatestockpowersarerequiredunlesspaymentistobemadeto,orShareCertificatesrepresentingSharesnottenderedoracceptedforpaymentaretobeissuedinthenameof,apersonotherthantheregisteredowner(s),inwhichcasetheShareCertificatesrepresentingtheSharestenderedbythisLetterofTransmittalmustbeendorsedoraccompaniedbyappropriatestockpowers,ineithercase,signedexactlyasthename(s)oftheregisteredowner(s)orholder(s)appear(s)ontheShareCertificates.SignaturesonsuchShareCertificatesorstockpowersmustbeguaranteedbyanEligibleInstitution.
IfthisLetterofTransmittalissignedbyapersonotherthantheregisteredowner(s)oftheShare(s)listed,theShareCertificate(s)mustbeendorsedoraccompaniedbytheappropriatestockpowers,ineithercase,signedexactlyasthenameornamesoftheregisteredowner(s)orholder(s)appear(s)ontheShareCertificate(s).SignaturesonsuchShareCertificatesorstockpowersmustbeguaranteedbyanEligibleInstitution.
6.Transfer Taxes. PurchaseroranysuccessorentitytheretowillpayanytransfertaxeswithrespecttothetransferandsaleofSharestoitortoitsorderpursuanttotheOffer(fortheavoidanceofdoubt,transfertaxesdonotincludeUnitedStatesfederalwithholdingtaxes).If,however,paymentofthepurchasepriceistobemadeto,or(inthecircumstancespermittedhereby)ifShareCertificatesnottenderedoracceptedforpaymentaretoberegisteredinthenameof,anypersonotherthantheregisteredowner(s),oriftenderedShareCertificatesareregisteredinthenameofanypersonotherthanthepersonsigningthisLetterofTransmittal,theamountofanytransfertaxes(whetherimposedontheregisteredowner(s)orsuchperson)payableonaccountofthetransfertosuchpersonwillbedeductedfromthepurchasepriceunlesssatisfactoryevidenceofthepaymentofsuchtaxes,orexemptiontherefrom,issubmitted.
Except as provided in this Instruction 6, it will not be necessary for transfer tax stamps to be affixed to the Share Certificates listed in thisLetter of Transmittal.
7.Special Payment and Delivery Instructions. Ifacheckforthepurchasepriceistobeissued,and/orShareCertificatesrepresentingSharesnottenderedoracceptedforpaymentaretobeissuedorreturnedto,apersonotherthanthesigner(s)ofthisLetterofTransmittalortoanaddressotherthanthatshownintheboxtitled“DescriptionofSharesTendered”above,theappropriateboxesonthisLetterofTransmittalshouldbecompleted.StockholdersdeliveringSharestenderedherebyorbyAgent’sMessagebybook-entrytransfermayrequestthatSharesnotpurchasedbecreditedtoanaccountmaintainedatDTCassuchstockholdermaydesignateintheboxtitled“SpecialPaymentInstructions”herein.Ifnosuchinstructionsaregiven,allsuchSharesnotpurchasedwillbereturnedbycreditingthesameaccountatDTCastheaccountfromwhichsuchSharesweredelivered.
8.Requests for Assistance or Additional Copies. QuestionsorrequestsforassistancemaybedirectedtotheInformationAgentatitsaddressandtelephonenumbersetforthonthebackcoverortoyourbroker,dealer,commercialbankortrustcompany.AdditionalcopiesoftheOffertoPurchase,thisLetterofTransmittal,theNoticeofGuaranteedDeliveryandothertenderoffermaterialsmaybeobtainedfromtheInformationAgentassetforthonthebackcover,andwillbefurnishedatPurchaser’sexpense.
9.Backup Withholding. UnderU.S.federalincometaxlaws,theDepositarywillberequiredtowithholdaportionoftheamountofanypaymentsmadetocertainstockholderspursuanttotheOfferortheMerger(asdefinedintheOffertoPurchase),asapplicable.Toavoidsuchbackupwithholding,eachtenderingstockholderorpayeethatisaUnitedStatesperson(forU.S.federalincometaxpurposes),mustprovidetheDepositarywithsuchstockholder’sorpayee’scorrecttaxpayeridentificationnumber(“TIN”)andcertifythatsuchstockholderorpayeeisnotsubjecttosuchbackupwithholdingbycompletingtheattachedFormW-9.Certainstockholdersorpayees(including,amongothers,corporations,non-residentforeignindividualsandforeignentities)arenotsubjecttothesebackupwithholdingandreportingrequirements,butsuchstockholdersorpayeesshouldcertifytheirexemptionbycompletingtheapplicableFormW-9orW-8.Atenderingstockholderwhoisaforeignindividualoraforeignentityshouldcomplete,sign,andsubmittotheDepositarytheappropriateFormW-8.AFormW-8BENorW-8BEN-EmaybeobtainedfromtheDepositaryordownloadedfromtheInternalRevenueService’swebsiteatthefollowingaddress:http://www.irs.gov.FailuretocompletetheFormW-9orapplicableFormW-8willnot,byitself,causeSharestobedeemedinvalidlytendered,butmayrequiretheDepositarytowithholdaportionoftheamountofanypaymentsmadeoftheOfferPricepursuanttotheOfferortheMerger,asapplicable.
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Ifbackupwithholdingapplies,theDepositaryisrequiredtowithhold24%ofanypaymentsofthepurchasepricemadetothestockholder.Backupwithholdingisnotanadditionaltax.Rather,thetaxliabilityofpersonssubjecttobackupwithholdingwillbereducedbytheamountoftaxwithheld.Ifwithholdingresultsinanoverpaymentoftaxes,arefundorcreditmaybeobtainedfromtheIRSprovidedthattherequiredinformationisfurnishedtotheIRS.
PleaseconsultyouraccountantortaxadvisorforfurtherguidanceregardingthecompletionoftheappropriateIRSFormW-9orIRSFormW-8,asapplicable,toclaimexemptionfrombackupwithholdingorcontacttheDepositary.
NOTE: FAILURE TO COMPLETE AND RETURN THE FORM W-9 OR FORM W-8 MAY RESULT IN BACKUP WITHHOLDING OFA PORTION OF ANY PAYMENTS MADE TO YOU PURSUANT TO THE OFFER. PLEASE REVIEW THE “IMPORTANT TAXINFORMATION” SECTION BELOW.
10.Lost, Destroyed, Mutilated or Stolen Share Certificates. IfanyShareCertificatehasbeenlost,destroyed,mutilatedorstolen,thestockholdershouldpromptlynotifyReis’sstocktransferagent,ComputershareInvestorServices,attollfreeat(877)373-6374orinternationalat(781)575-2879.ThestockholderwillthenbeinstructedastothestepsthatmustbetakeninordertoreplacetheShareCertificate.ThisLetterofTransmittalandrelateddocumentscannotbeprocesseduntiltheproceduresforreplacinglost,mutilated,destroyedorstolenShareCertificateshavebeenfollowed.
11.Waiver of Conditions. SubjecttothetermsandconditionsoftheMergerAgreement(asdefinedintheOffertoPurchase)andtheapplicablerulesandregulationsoftheSecuritiesandExchangeCommission,theconditionsoftheOffermaybewaivedbythePurchaserorParentinwholeorinpartatanytimeandfromtimetotime.
IMPORTANT: THIS LETTER OF TRANSMITTAL (OR A MANUALLY EXECUTED FACSIMILE COPY THEREOF) OR ANAGENT’S MESSAGE, TOGETHER WITH SHARE CERTIFICATE(S) OR BOOK-ENTRY CONFIRMATION OR A PROPERLYCOMPLETED AND DULY EXECUTED NOTICE OF GUARANTEED DELIVERY AND ALL OTHER REQUIRED DOCUMENTS, MUST BERECEIVED BY THE DEPOSITARY PRIOR TO THE EXPIRATION TIME.
IMPORTANT TAX INFORMATION
UndercurrentU.S.federalincometaxlaw,aStockholderwhotendersReisstockcertificatesthatareacceptedforexchangemaybesubjecttobackupwithholding.Inordertoavoidsuchbackupwithholding,aStockholderwhoisaUnitedStatesperson(asdefinedforUnitedStatesfederalincometaxpurposes)mustprovidetheExchangeAgentwithsuchStockholder’scorrecttaxpayeridentificationnumberandcertifythatsuchStockholderisnotsubjecttosuchbackupwithholdingbycompletingtheFormW-9providedherewith.Ingeneral,ifaStockholderisanindividual,thetaxpayeridentificationnumberistheSocialSecuritynumberofsuchindividual.IftheExchangeAgentisnotprovidedwiththecorrecttaxpayeridentificationnumber,theStockholdermaybesubjecttoapenaltyimposedbytheInternalRevenueService.ForfurtherinformationconcerningbackupwithholdingandinstructionsforcompletingtheFormW-9(includinghowtoobtainataxpayeridentificationnumberifyoudonothaveoneandhowtocompletetheFormW-9iftheReisstockcertificatesareheldinmorethanonename),consulttheenclosedFormW-9andtheinstructionsthereto.
CertainStockholders(including,amongothers,allcorporationsandcertainforeignindividuals)arenotsubjecttothesebackupwithholdingandreportingrequirements.InordertosatisfytheExchangeAgentthataforeignStockholderqualifiesasanexemptrecipient,suchStockholdermustsubmitastatement,signedunderpenaltiesofperjury,attestingtothatStockholder’sexemptstatus,onaproperlycompletedapplicableFormW-8,orsuccessorform.SuchstatementscanbeobtainedfromtheExchangeAgent.
FailuretocompletetheFormW-9orapplicableFormW-8willnot,byitself,causetheReisstockcertificatestobedeemedinvalidlytendered,butmayrequiretheExchangeAgenttowithholdaportionoftheamountofanypaymentsmadepursuanttotheOfferortheMerger,asapplicable.Backupwithholdingisnotanadditionalfederalincometax.Rather,the
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federalincometaxliabilityofapersonsubjecttobackupwithholdingwillbereducedbytheamountoftaxwithheld.Ifwithholdingresultsinanoverpaymentoftaxes,arefundmaybeobtainedprovidedthattherequiredinformationisfurnishedtotheInternalRevenueService.
NOTE:FAILURETOCOMPLETEANDRETURNTHEFORMW-9(ORANAPPLICABLEFORMW-8)MAYRESULTINBACKUPWITHHOLDINGOFAPORTIONOFANYPAYMENTSMADETOYOUPURSUANTTOTHEOFFERORTHEMERGER,ASAPPLICABLE.PLEASEREVIEWTHEENCLOSEDFORMW-9ANDTHEINSTRUCTIONSTHERETOFORADDITIONALDETAILS.
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FormW-9
(Rev.November2017)DepartmentoftheTreasuryInternalRevenueService
Request for TaxpayerIdentification Number and Certification
uGo to www.irs.gov/FormW9 for instructions and the latest information.
Give Form to therequester. Do notsend to the IRS.
Print ortypeSee
SpecificInstructionsonpage3.
1 Name(asshownonyourincometaxreturn).Nameisrequiredonthisline;donotleavethislineblank.
2 Businessname/disregardedentityname,ifdifferentfromabove
3 Checkappropriateboxforfederaltaxclassificationofthepersonwhosenameisenteredonline1.Checkonlyone ofthefollowingsevenboxes.
4 Exemptions(codesapplyonlytocertainentities,notindividuals;seeinstructionsonpage3):
Exemptpayeecode(ifany)
ExemptionfromFATCAreportingcode(ifany)
(AppliestoaccountsmaintainedoutsidetheU.S.)
☐ Individual/soleproprietororsingle-memberLLC
☐
CCorporation
☐
SCorporation
☐
Partnership
☐
Trust/estate
☐Limitedliabilitycompany.Enterthetaxclassification(C=Ccorporation,S=Scorporation,P=Partnership)u
Note: Checktheappropriateboxinthelineaboveforthetaxclassificationofthesingle-memberowner.DonotcheckLLCiftheLLCisclassifiedasasingle-memberLLCthatisdisregardedfromtheownerunlesstheowneroftheLLCisanotherLLCthatisnot disregardedfromtheownerforU.S.federaltaxpurposes.Otherwise,asingle-memberLLCthatisdisregardedfromtheownershouldchecktheappropriateboxforthetaxclassificationofitsowner.
☐Other(seeinstructions)u
5 Address(number,street,andapt.orsuiteno.)Seeinstructions.
Requester’snameandaddress(optional)
6 City,state,andZIPcode
7 Listaccountnumber(s)here(optional)
Part I
Taxpayer Identification Number (TIN)EnteryourTINintheappropriatebox.TheTINprovidedmustmatchthenamegivenonline1toavoidbackupwithholding.Forindividuals,thisisgenerallyyoursocialsecuritynumber(SSN).However,foraresidentalien,soleproprietor,ordisregardedentity,seetheinstructionsforPartI,later.Forotherentities,itisyouremployeridentificationnumber(EIN).Ifyoudonothaveanumber,seeHowtogetaTIN,later.
Social security number
- - or
Note: Iftheaccountisinmorethanonename,seetheinstructionsforline1.AlsoseeWhatNameandNumberToGivetheRequesterforguidelinesonwhosenumbertoenter.
Employer identification number
- Part II CertificationUnderpenaltiesofperjury,Icertifythat:
1. Thenumbershownonthisformismycorrecttaxpayeridentificationnumber(orIamwaitingforanumbertobeissuedtome);and
2. Iamnotsubjecttobackupwithholdingbecause:(a)Iamexemptfrombackupwithholding,or(b)IhavenotbeennotifiedbytheInternalRevenueService(IRS)thatIamsubjecttobackupwithholdingasaresultofafailuretoreportallinterestordividends,or(c)theIRShasnotifiedmethatIamnolongersubjecttobackupwithholding;and
3. IamaU.S.citizenorotherU.S.person(definedbelow);and
4. TheFATCAcode(s)enteredonthisform(ifany)indicatingthatIamexemptfromFATCAreportingiscorrect.Certification instructions. Youmustcrossoutitem2aboveifyouhavebeennotifiedbytheIRSthatyouarecurrentlysubjecttobackupwithholdingbecauseyouhavefailedtoreportallinterestanddividendsonyourtaxreturn.Forrealestatetransactions,item2doesnotapply.Formortgageinterestpaid,acquisitionorabandonmentofsecuredproperty,cancellationofdebt,contributionstoanindividualretirementarrangement(IRA),andgenerally,paymentsotherthaninterestanddividends,youarenotrequiredtosignthecertification,butyoumustprovideyourcorrectTIN.SeetheinstructionsforPartII,later.
Sign Here
Signature of U.S. person u Date u
Cat.No.10231X
FormW-9 (Rev.11-2017)
General InstructionsSectionreferencesaretotheInternalRevenueCodeunlessotherwisenoted.Future developments .ForthelatestinformationaboutdevelopmentsrelatedtoFormW-9anditsinstructions,suchaslegislationenactedaftertheywerepublished,gotowww.irs.gov/FormW9.
Purpose of FormAnindividualorentity(FormW-9requester)whoisrequiredtofileaninformationreturnwiththeIRSmustobtainyourcorrecttaxpayeridentificationnumber(TIN)whichmaybeyoursocialsecuritynumber(SSN),individualtaxpayeridentificationnumber(ITIN),adoptiontaxpayeridentificationnumber(ATIN),oremployeridentificationnumber(EIN),toreportonaninformationreturntheamountpaidtoyou,orotheramountreportableonaninformationreturn.Examplesofinformationreturnsinclude,butarenotlimitedto,thefollowing.•Form1099-INT(interestearnedorpaid)
•Form1099-DIV(dividends,includingthosefromstocksormutualfunds)•Form1099-MISC(varioustypesofincome,prizes,awards,orgrossproceeds)•Form1099-B(stockormutualfundsalesandcertainothertransactionsbybrokers)•Form1099-S(proceedsfromrealestatetransactions)•Form1099-K(merchantcardandthirdpartynetworktransactions)•Form1098(homemortgageinterest),1098-E(studentloaninterest),1098-T(tuition)•Form1099-C(canceleddebt)•Form1099-A(acquisitionorabandonmentofsecuredproperty)UseFormW-9onlyifyouareaU.S.person(includingaresidentalien),toprovide
yourcorrectTIN.IfyoudonotreturnFormW-9totherequesterwithaTIN,youmightbesubjectto
backupwithholding.SeeWhatisbackupwithholding,later.
FormW-9(Rev.11-2017) Page2
Bysigningthefilled-outform,you:1.CertifythattheTINyouaregivingiscorrect(oryouarewaitingforanumbertobeissued),2.Certifythatyouarenotsubjecttobackupwithholding,or3.ClaimexemptionfrombackupwithholdingifyouareaU.S.exemptpayee.Ifapplicable,youarealsocertifyingthatasaU.S.person,yourallocableshareofanypartnershipincomefromaU.S.tradeorbusinessisnotsubjecttothewithholdingtaxonforeignpartners’shareofeffectivelyconnectedincome,and4.CertifythatFATCAcode(s)enteredonthisform(ifany)indicatingthatyouareexemptfromtheFATCAreporting,iscorrect.SeeWhatisFATCAreporting,later,forfurtherinformation.Note: IfyouareaU.S.personandarequestergivesyouaformotherthanFormW-9torequestyourTIN,youmustusetherequester’sformifitissubstantiallysimilartothisFormW-9.Definition of a U.S. person. Forfederaltaxpurposes,youareconsideredaU.S.personifyouare:•AnindividualwhoisaU.S.citizenorU.S.residentalien;•Apartnership,corporation,company,orassociationcreatedororganizedintheUnitedStatesorunderthelawsoftheUnitedStates;•Anestate(otherthanaforeignestate);or•Adomestictrust(asdefinedinRegulationssection301.7701-7).Special rules for partnerships .PartnershipsthatconductatradeorbusinessintheUnitedStatesaregenerallyrequiredtopayawithholdingtaxundersection1446onanyforeignpartners’shareofeffectivelyconnectedtaxableincomefromsuchbusiness.Further,incertaincaseswhereaFormW-9hasnotbeenreceived,therulesundersection1446requireapartnershiptopresumethatapartnerisaforeignperson,andpaythesection1446withholdingtax.Therefore,ifyouareaU.S.personthatisapartnerinapartnershipconductingatradeorbusinessintheUnitedStates,provideFormW-9tothepartnershiptoestablishyourU.S.statusandavoidsection1446withholdingonyourshareofpartnershipincome.Inthecasesbelow,thefollowingpersonmustgiveFormW-9tothepartnershipforpurposesofestablishingitsU.S.statusandavoidingwithholdingonitsallocableshareofnetincomefromthepartnershipconductingatradeorbusinessintheUnitedStates.•InthecaseofadisregardedentitywithaU.S.owner,theU.S.ownerofthedisregardedentityandnottheentity;•InthecaseofagrantortrustwithaU.S.grantororotherU.S.owner,generally,theU.S.grantororotherU.S.ownerofthegrantortrustandnotthetrust;and•InthecaseofaU.S.trust(otherthanagrantortrust),theU.S.trust(otherthanagrantortrust)andnotthebeneficiariesofthetrust.Foreign person. IfyouareaforeignpersonortheU.S.branchofaforeignbankthathaselectedtobetreatedasaU.S.person,donotuseFormW-9.Instead,usetheappropriateFormW-8orForm8233(seePub.515,WithholdingofTaxonNonresidentAliensandForeignEntities).Nonresident alien who becomes a resident alien. Generally,onlyanonresidentalienindividualmayusethetermsofataxtreatytoreduceoreliminateU.S.taxoncertaintypesofincome.However,mosttaxtreatiescontainaprovisionknownasa“savingclause.”ExceptionsspecifiedinthesavingclausemaypermitanexemptionfromtaxtocontinueforcertaintypesofincomeevenafterthepayeehasotherwisebecomeaU.S.residentalienfortaxpurposes.IfyouareaU.S.residentalienwhoisrelyingonanexceptioncontainedinthesavingclauseofataxtreatytoclaimanexemptionfromU.S.taxoncertaintypesofincome,youmustattachastatementtoFormW-9thatspecifiesthefollowingfiveitems.1.Thetreatycountry.Generally,thismustbethesametreatyunderwhichyouclaimedexemptionfromtaxasanonresidentalien.2.Thetreatyarticleaddressingtheincome.3.Thearticlenumber(orlocation)inthetaxtreatythatcontainsthesavingclauseanditsexceptions.4.Thetypeandamountofincomethatqualifiesfortheexemptionfromtax.5.Sufficientfactstojustifytheexemptionfromtaxunderthetermsofthetreatyarticle.Example. Article20oftheU.S.-ChinaincometaxtreatyallowsanexemptionfromtaxforscholarshipincomereceivedbyaChinesestudenttemporarilypresentintheUnitedStates.UnderU.S.law,thisstudentwillbecomearesidentalienfortaxpurposesifhisorherstayinthe
UnitedStatesexceeds5calendaryears.However,paragraph2ofthefirstProtocoltotheU.S.-Chinatreaty(datedApril30,1984)allowstheprovisionsofArticle20tocontinuetoapplyevenaftertheChinesestudentbecomesaresidentalienoftheUnitedStates.AChinesestudentwhoqualifiesforthisexception(underparagraph2ofthefirstprotocol)andisrelyingonthisexceptiontoclaimanexemptionfromtaxonhisorherscholarshiporfellowshipincomewouldattachtoFormW-9astatementthatincludestheinformationdescribedabovetosupportthatexemption.Ifyouareanonresidentalienoraforeignentity,givetherequestertheappropriatecompletedFormW-8orForm8233.
Backup WithholdingWhat is backup withholding? PersonsmakingcertainpaymentstoyoumustundercertainconditionswithholdandpaytotheIRS28%ofsuchpayments.Thisiscalled“backupwithholding.”Paymentsthatmaybesubjecttobackupwithholdingincludeinterest,tax-exemptinterest,dividends,brokerandbarterexchangetransactions,rents,royalties,nonemployeepay,paymentsmadeinsettlementofpaymentcardandthirdpartynetworktransactions,andcertainpaymentsfromfishingboatoperators.Realestatetransactionsarenotsubjecttobackupwithholding.YouwillnotbesubjecttobackupwithholdingonpaymentsyoureceiveifyougivetherequesteryourcorrectTIN,makethepropercertifications,andreportallyourtaxableinterestanddividendsonyourtaxreturn.Payments you receive will be subject to backup withholding if:1.YoudonotfurnishyourTINtotherequester,2.YoudonotcertifyyourTINwhenrequired(seetheinstructionsforPartIIfordetails),3.TheIRStellstherequesterthatyoufurnishedanincorrectTIN,4.TheIRStellsyouthatyouaresubjecttobackupwithholdingbecauseyoudidnotreportallyourinterestanddividendsonyourtaxreturn(forreportableinterestanddividendsonly),or5.Youdonotcertifytotherequesterthatyouarenotsubjecttobackupwithholdingunder4above(forreportableinterestanddividendaccountsopenedafter1983only).Certainpayeesandpaymentsareexemptfrombackupwithholding.SeeExemptpayeecode,later,andtheseparateInstructionsfortheRequesterofFormW-9formoreinformation.AlsoseeSpecialrulesforpartnerships,earlier.
What is FATCA Reporting?TheForeignAccountTaxComplianceAct(FATCA)requiresaparticipatingforeignfinancialinstitutiontoreportallUnitedStatesaccountholdersthatarespecifiedUnitedStatespersons.CertainpayeesareexemptfromFATCAreporting.SeeExemptionfromFATCAreportingcode,later,andtheInstructionsfortheRequesterofFormW-9formoreinformation.
Updating Your InformationYoumustprovideupdatedinformationtoanypersontowhomyouclaimedtobeanexemptpayeeifyouarenolongeranexemptpayeeandanticipatereceivingreportablepaymentsinthefuturefromthisperson.Forexample,youmayneedtoprovideupdatedinformationifyouareaCcorporationthatelectstobeanScorporation,orifyounolongeraretaxexempt.Inaddition,youmustfurnishanewFormW-9ifthenameorTINchangesfortheaccount;forexample,ifthegrantorofagrantortrustdies.
PenaltiesFailure to furnish TIN. IfyoufailtofurnishyourcorrectTINtoarequester,youaresubjecttoapenaltyof$50foreachsuchfailureunlessyourfailureisduetoreasonablecauseandnottowillfulneglect.Civil penalty for false information with respect to withholding. Ifyoumakeafalsestatementwithnoreasonablebasisthatresultsinnobackupwithholding,youaresubjecttoa$500penalty.Criminal penalty for falsifying information. Willfullyfalsifyingcertificationsoraffirmationsmaysubjectyoutocriminalpenaltiesincludingfinesand/orimprisonment.Misuse of TINs. IftherequesterdisclosesorusesTINsinviolationoffederallaw,therequestermaybesubjecttocivilandcriminalpenalties.
FormW-9(Rev.11-2017) Page3
Specific InstructionsLine 1Youmustenteroneofthefollowingonthisline;do not leavethislineblank.Thenameshouldmatchthenameonyourtaxreturn.IfthisFormW-9isforajointaccount(otherthananaccountmaintainedbyaforeignfinancialinstitution(FFI)),listfirst,andthencircle,thenameofthepersonorentitywhosenumberyouenteredinPartIofFormW-9.IfyouareprovidingFormW-9toanFFItodocumentajointaccount,eachholderoftheaccountthatisaU.S.personmustprovideaFormW-9.a.Individual. Generally,enterthenameshownonyourtaxreturn.IfyouhavechangedyourlastnamewithoutinformingtheSocialSecurityAdministration(SSA)ofthenamechange,enteryourfirstname,thelastnameasshownonyoursocialsecuritycard,andyournewlastname.Note: ITIN applicant: EnteryourindividualnameasitwasenteredonyourFormW-7application,line1a.ThisshouldalsobethesameasthenameyouenteredontheForm1040/1040A/1040EZyoufiledwithyourapplication.b.Sole proprietor or single-member LLC. Enteryourindividualnameasshownonyour1040/1040A/1040EZonline1.Youmayenteryourbusiness,trade,or“doingbusinessas”(DBA)nameonline2.c.Partnership, LLC that is not a single-member LLC, C corporation, or S
corporation. Entertheentity’snameasshownontheentity’staxreturnonline1andanybusiness,trade,orDBAnameonline2.d.Other entities. EnteryournameasshownonrequiredU.S.federaltaxdocumentsonline1.Thisnameshouldmatchthenameshownonthecharterorotherlegaldocumentcreatingtheentity.Youmayenteranybusiness,trade,orDBAnameonline2.e.Disregarded entity. ForU.S.federaltaxpurposes,anentitythatisdisregardedasanentityseparatefromitsowneristreatedasa“disregardedentity.”SeeRegulationssection301.7701-2(c)(2)(iii).Entertheowner’snameonline1.Thenameoftheentityenteredonline1shouldneverbeadisregardedentity.Thenameonline1shouldbethenameshownontheincometaxreturnonwhichtheincomeshouldbereported.Forexample,ifaforeignLLCthatistreatedasadisregardedentityforU.S.federaltaxpurposeshasasingleownerthatisaU.S.person,theU.S.owner'snameisrequiredtobeprovidedonline1.Ifthedirectowneroftheentityisalsoadisregardedentity,enterthefirstownerthatisnotdisregardedforfederaltaxpurposes.Enterthedisregardedentity'snameonline2,“Businessname/disregardedentityname.”Iftheownerofthedisregardedentityisaforeignperson,theownermustcompleteanappropriateFormW-8insteadofaFormW-9.ThisisthecaseeveniftheforeignpersonhasaU.S.TIN.
Line 2Ifyouhaveabusinessname,tradename,DBAname,ordisregardedentityname,youmayenteritonline2.
Line 3Checktheappropriateboxonline3fortheU.S.federaltaxclassificationofthepersonwhosenameisenteredonline1.Checkonlyoneboxonline3.
IF the entity/person on line 1 isa(n) . . .
THEN check the box for . . .
•Corporation Corporation
•Individual
•Soleproprietorship,or
•Single-memberlimitedliabilitycompany(LLC)ownedbyanindividualanddisregardedforU.S.federaltaxpurposes.
Individual/soleproprietororsingle-memberLLC
•LLCtreatedasapartnershipforU.S.federaltaxpurposes,
•LLCthathasfiledForm8832or2553tobetaxedasacorporation,or
•LLCthatisdisregardedasanentityseparatefromitsownerbuttheownerisanotherLLCthatisnotdisregardedforU.S.federaltaxpurposes.
Limitedliabilitycompanyandentertheappropriatetaxclassification.(P=Partnership;C=Ccorporation;orS=Scorporation)
•Partnership Partnership•Trust/estate Trust/estate
Line 4, ExemptionsIfyouareexemptfrombackupwithholdingand/orFATCAreporting,enterintheappropriatespaceonline4anycode(s)thatmayapplytoyou.Exempt payee code.•Generally,individuals(includingsoleproprietors)arenotexemptfrombackupwithholding.•Exceptasprovidedbelow,corporationsareexemptfrombackupwithholdingforcertainpayments,includinginterestanddividends.•Corporationsarenotexemptfrombackupwithholdingforpaymentsmadeinsettlementofpaymentcardorthirdpartynetworktransactions.•Corporationsarenotexemptfrombackupwithholdingwithrespecttoattorneys’feesorgrossproceedspaidtoattorneys,andcorporationsthatprovidemedicalorhealthcareservicesarenotexemptwithrespecttopaymentsreportableonForm1099-MISC.Thefollowingcodesidentifypayeesthatareexemptfrombackupwithholding.Entertheappropriatecodeinthespaceinline4.1—Anorganizationexemptfromtaxundersection501(a),anyIRA,oracustodialaccountundersection403(b)(7)iftheaccountsatisfiestherequirementsofsection401(f)(2)2—TheUnitedStatesoranyofitsagenciesorinstrumentalities3—Astate,theDistrictofColumbia,aU.S.commonwealthorpossession,oranyoftheirpoliticalsubdivisionsorinstrumentalities4—Aforeigngovernmentoranyofitspoliticalsubdivisions,agencies,orinstrumentalities5—Acorporation6—AdealerinsecuritiesorcommoditiesrequiredtoregisterintheUnitedStates,theDistrictofColumbia,oraU.S.commonwealthorpossession7—AfuturescommissionmerchantregisteredwiththeCommodityFuturesTradingCommission8—Arealestateinvestmenttrust9—AnentityregisteredatalltimesduringthetaxyearundertheInvestmentCompanyActof194010—Acommontrustfundoperatedbyabankundersection584(a)11—Afinancialinstitution12—Amiddlemanknownintheinvestmentcommunityasanomineeorcustodian13—Atrustexemptfromtaxundersection664ordescribedinsection4947
Thefollowingchartshowstypesofpaymentsthatmaybeexemptfrombackupwithholding.Thechartappliestotheexemptpayeeslistedabove,1through13.IF the payment is for . . .
THEN the payment is exempt for . . .
Interestanddividendpayments Allexemptpayeesexceptfor7Brokertransactions
Exemptpayees1through4and6through11andallCcorporations.Scorporationsmustnotenteranexemptpayeecodebecausetheyareexemptonlyforsalesofnoncoveredsecuritiesacquiredpriorto2012.
Barterexchangetransactionsandpatronagedividends
Exemptpayees1through4
Paymentsover$600requiredtobereportedanddirectsalesover$5,0001
Generally,exemptpayees1through52
Paymentsmadeinsettlementofpaymentcardorthirdpartynetworktransactions
Exemptpayees1through4
1SeeForm1099-MISC,MiscellaneousIncome,anditsinstructions.
2However,thefollowingpaymentsmadetoacorporationandreportableonForm1099-MISCarenotexemptfrombackupwithholding:medicalandhealthcarepayments,attorneys’fees,grossproceedspaidtoanattorneyreportableundersection6045(f),andpaymentsforservicespaidbyafederalexecutiveagency.
FormW-9(Rev.11-2017) Page4
Exemption from FATCA reporting code. ThefollowingcodesidentifypayeesthatareexemptfromreportingunderFATCA.ThesecodesapplytopersonssubmittingthisformforaccountsmaintainedoutsideoftheUnitedStatesbycertainforeignfinancialinstitutions.Therefore,ifyouareonlysubmittingthisformforanaccountyouholdintheUnitedStates,youmayleavethisfieldblank.Consultwiththepersonrequestingthisformifyouareuncertainifthefinancialinstitutionissubjecttotheserequirements.ArequestermayindicatethatacodeisnotrequiredbyprovidingyouwithaFormW-9with“NotApplicable”(oranysimilarindication)writtenorprintedonthelineforaFATCAexemptioncode.A—Anorganizationexemptfromtaxundersection501(a)oranyindividualretirementplanasdefinedinsection7701(a)(37)B—TheUnitedStatesoranyofitsagenciesorinstrumentalitiesC—Astate,theDistrictofColumbia,aU.S.commonwealthorpossession,oranyoftheirpoliticalsubdivisionsorinstrumentalitiesD—Acorporationthestockofwhichisregularlytradedononeormoreestablishedsecuritiesmarkets,asdescribedinRegulationssection1.1472-1(c)(1)(i)E—AcorporationthatisamemberofthesameexpandedaffiliatedgroupasacorporationdescribedinRegulationssection1.1472-1(c)(1)(i)F—Adealerinsecurities,commodities,orderivativefinancialinstruments(includingnotionalprincipalcontracts,futures,forwards,andoptions)thatisregisteredassuchunderthelawsoftheUnitedStatesoranystateG—ArealestateinvestmenttrustH—Aregulatedinvestmentcompanyasdefinedinsection851oranentityregisteredatalltimesduringthetaxyearundertheInvestmentCompanyActof1940I—Acommontrustfundasdefinedinsection584(a)J—Abankasdefinedinsection581K—AbrokerL—Atrustexemptfromtaxundersection664ordescribedinsection4947(a)(1)M—Ataxexempttrustunderasection403(b)planorsection457(g)plan
Note: YoumaywishtoconsultwiththefinancialinstitutionrequestingthisformtodeterminewhethertheFATCAcodeand/orexemptpayeecodeshouldbecompleted.
Line 5Enteryouraddress(number,street,andapartmentorsuitenumber).ThisiswheretherequesterofthisFormW-9willmailyourinformationreturns.Ifthisaddressdiffersfromtheonetherequesteralreadyhasonfile,writeNEWatthetop.Ifanewaddressisprovided,thereisstillachancetheoldaddresswillbeuseduntilthepayorchangesyouraddressintheirrecords.
Line 6Enteryourcity,state,andZIPcode.
Part I. Taxpayer Identification Number (TIN)Enter your TIN in the appropriate box. IfyouarearesidentalienandyoudonothaveandarenoteligibletogetanSSN,yourTINisyourIRSindividualtaxpayeridentificationnumber(ITIN).Enteritinthesocialsecuritynumberbox.IfyoudonothaveanITIN,seeHowtogetaTINbelow.IfyouareasoleproprietorandyouhaveanEIN,youmayentereitheryourSSNorEIN.Ifyouareasingle-memberLLCthatisdisregardedasanentityseparatefromitsowner,entertheowner’sSSN(orEIN,iftheownerhasone).Donotenterthedisregardedentity’sEIN.IftheLLCisclassifiedasacorporationorpartnership,entertheentity’sEIN.Note: SeeWhatNameandNumberToGivetheRequester,later,forfurtherclarificationofnameandTINcombinations.How to get a TIN. IfyoudonothaveaTIN,applyforoneimmediately.ToapplyforanSSN,getFormSS-5,ApplicationforaSocialSecurityCard,fromyourlocalSSAofficeorgetthisformonlineatwww.SSA.gov.Youmayalsogetthisformbycalling1-800-772-1213.UseFormW-7,ApplicationforIRSIndividualTaxpayerIdentificationNumber,toapplyforanITIN,orFormSS-4,ApplicationforEmployerIdentificationNumber,toapplyforanEIN.YoucanapplyforanEINonlinebyaccessingtheIRSwebsiteatwww.irs.gov/BusinessesandclickingonEmployerIdentificationNumber(EIN)underStartingaBusiness.Goto
www.irs.gov/Formstoview,download,orprintFormW-7and/orFormSS-4.Or,youcangotowww.irs.gov/OrderFormstoplaceanorderandhaveFormW-7and/orSS-4mailedtoyouwithin10businessdays.IfyouareaskedtocompleteFormW-9butdonothaveaTIN,applyforaTINandwrite“AppliedFor”inthespacefortheTIN,signanddatetheform,andgiveittotherequester.Forinterestanddividendpayments,andcertainpaymentsmadewithrespecttoreadilytradableinstruments,generallyyouwillhave60daystogetaTINandgiveittotherequesterbeforeyouaresubjecttobackupwithholdingonpayments.The60-dayruledoesnotapplytoothertypesofpayments.YouwillbesubjecttobackupwithholdingonallsuchpaymentsuntilyouprovideyourTINtotherequester.Note: Entering“AppliedFor”meansthatyouhavealreadyappliedforaTINorthatyouintendtoapplyforonesoon.Caution: AdisregardedU.S.entitythathasaforeignownermustusetheappropriateFormW-8.
Part II. CertificationToestablishtothewithholdingagentthatyouareaU.S.person,orresidentalien,signFormW-9.Youmayberequestedtosignbythewithholdingagentevenifitem1,4,or5belowindicatesotherwise.Forajointaccount,onlythepersonwhoseTINisshowninPartIshouldsign(whenrequired).Inthecaseofadisregardedentity,thepersonidentifiedonline1mustsign.Exemptpayees,seeExemptpayeecode,earlier.Signature requirements. Completethecertificationasindicatedinitems1through5below.1. Interest, dividend, and barter exchange accounts opened before 1984 and broker
accounts considered active during 1983. YoumustgiveyourcorrectTIN,butyoudonothavetosignthecertification.2. Interest, dividend, broker, and barter exchange accounts opened after 1983 and
broker accounts considered inactive during 1983. Youmustsignthecertificationorbackupwithholdingwillapply.IfyouaresubjecttobackupwithholdingandyouaremerelyprovidingyourcorrectTINtotherequester,youmustcrossoutitem2inthecertificationbeforesigningtheform.3. Real estate transactions. Youmustsignthecertification.Youmaycrossoutitem2ofthecertification.4. Other payments. YoumustgiveyourcorrectTIN,butyoudonothavetosignthecertificationunlessyouhavebeennotifiedthatyouhavepreviouslygivenanincorrectTIN.“Otherpayments”includepaymentsmadeinthecourseoftherequester’stradeorbusinessforrents,royalties,goods(otherthanbillsformerchandise),medicalandhealthcareservices(includingpaymentstocorporations),paymentstoanonemployeeforservices,paymentsmadeinsettlementofpaymentcardandthirdpartynetworktransactions,paymentstocertainfishingboatcrewmembersandfishermen,andgrossproceedspaidtoattorneys(includingpaymentstocorporations).5. Mortgage interest paid by you, acquisition or abandonment of secured property,
cancellation of debt, qualified tuition program payments (under section 529), ABLEaccounts (under section 529A), IRA, Coverdell ESA, Archer MSA or HSAcontributions or distributions, and pension distributions. YoumustgiveyourcorrectTIN,butyoudonothavetosignthecertification.
What Name and Number To Give the Requester
For this type of account: Give name and SSN of: 1. Individual Theindividual 2.
Twoormoreindividuals(jointaccount)otherthananaccountmaintainedbyanFFI
Theactualowneroftheaccountor,ifcombinedfunds,thefirstindividualontheaccount1
3.TwoormoreU.S.persons(jointaccountmaintainedbyanFFI)
Eachholderoftheaccount
4.Custodialaccountofaminor(UniformGifttoMinorsAct)
Theminor2
5.a.Theusualrevocablesavingstrust(grantorisalsotrustee)
Thegrantor-trustee1
b.So-calledtrustaccountthatisnotalegalorvalidtrustunderstatelaw
Theactualowner1
6.Soleproprietorshipordisregardedentityownedbyanindividual
Theowner3
FormW-9(Rev.11-2017) Page5
For this type of account: Give name and SSN of: 7.
GrantortrustfilingunderOptionalForm1099FilingMethod1(seeRegulationssection1.671-4(b)(2)(i)(A))
Thegrantor*
For this type of account: Give name and EIN of: 8. Disregardedentitynotownedbyanindividual Theowner 9. Avalidtrust,estate,orpensiontrust Legalentity4
10.CorporationorLLCelectingcorporatestatusonForm8832orForm2553
Thecorporation
11.Association,club,religious,charitable,educational,orothertax-exemptorganization
Theorganization
12. Partnershipormulti-memberLLC Thepartnership 13. Abrokerorregisterednominee Thebrokerornominee 14.
AccountwiththeDepartmentofAgricultureinthenameofapublicentity(suchasastateorlocalgovernment,schooldistrict,orprison)thatreceivesagriculturalprogrampayments
Thepublicentity
15.
GrantortrustfilingundertheForm1041FilingMethodortheOptionalForm1099FilingMethod2(seeRegulationssection1.671-4(b)(2)(i)(B))
Thetrust
1Listfirstandcirclethenameofthepersonwhosenumberyoufurnish.IfonlyonepersononajointaccounthasanSSN,thatperson’snumbermustbefurnished.2Circletheminor’snameandfurnishtheminor’sSSN.3YoumustshowyourindividualnameandyoumayalsoenteryourbusinessorDBAnameonthe“Businessname/disregardedentity”nameline.YoumayuseeitheryourSSNorEIN(ifyouhaveone),buttheIRSencouragesyoutouseyourSSN.4Listfirstandcirclethenameofthetrust,estate,orpensiontrust.(DonotfurnishtheTINofthepersonalrepresentativeortrusteeunlessthelegalentityitselfisnotdesignatedintheaccounttitle.)AlsoseeSpecialrulesforpartnerships,earlier.*Note: ThegrantoralsomustprovideaFormW-9totrusteeoftrust.Note: Ifnonameiscircledwhenmorethanonenameislisted,thenumberwillbeconsideredtobethatofthefirstnamelisted.
Secure Your Tax Records From Identity TheftIdentitytheftoccurswhensomeoneusesyourpersonalinformationsuchasyourname,SSN,orotheridentifyinginformation,withoutyourpermission,tocommitfraudorothercrimes.AnidentitythiefmayuseyourSSNtogetajobormayfileataxreturnusingyourSSNtoreceivearefund.Toreduceyourrisk:•ProtectyourSSN,•EnsureyouremployerisprotectingyourSSN,and•Becarefulwhenchoosingataxpreparer.
IfyourtaxrecordsareaffectedbyidentitytheftandyoureceiveanoticefromtheIRS,respondrightawaytothenameandphonenumberprintedontheIRSnoticeorletter.
Ifyourtaxrecordsarenotcurrentlyaffectedbyidentitytheftbutyouthinkyouareatriskduetoalostorstolenpurseorwallet,questionablecreditcardactivityorcreditreport,contacttheIRSIdentityTheftHotlineat1-800-908-4490orsubmitForm14039.
Formoreinformation,seePub.5027,IdentityTheftInformationforTaxpayers.
Victimsofidentitytheftwhoareexperiencingeconomicharmorasystemicproblem,orareseekinghelpinresolvingtaxproblemsthathavenotbeenresolvedthroughnormalchannels,maybeeligibleforTaxpayerAdvocateService(TAS)assistance.YoucanreachTASbycallingtheTAStoll-freecaseintakelineat1-877-777-4778orTTY/TDD1-800-829-4059.Protect yourself from suspicious emails or phishing schemes. Phishingisthecreationanduseofemailandwebsitesdesignedtomimiclegitimatebusinessemailsandwebsites.Themostcommonactissendinganemailtoauserfalselyclaimingtobeanestablishedlegitimateenterpriseinanattempttoscamtheuserintosurrenderingprivateinformationthatwillbeusedforidentitytheft.TheIRSdoesnotinitiatecontactswithtaxpayersviaemails.Also,theIRSdoesnotrequestpersonaldetailedinformationthroughemailorasktaxpayersforthePINnumbers,passwords,orsimilarsecretaccessinformationfortheircreditcard,bank,orotherfinancialaccounts.IfyoureceiveanunsolicitedemailclaimingtobefromtheIRS,forwardthismessagetophishing@irs.gov.YoumayalsoreportmisuseoftheIRSname,logo,orotherIRSpropertytotheTreasuryInspectorGeneralforTaxAdministration(TIGTA)at1-800-366-4484.YoucanforwardsuspiciousemailstotheFederalTradeCommissionatspam@uce.govorreportthematwww.ftc.gov/complaint.YoucancontacttheFTCatwww.ftc.gov/idtheftor877-IDTHEFT(877-438-4338).Ifyouhavebeenthevictimofidentitytheft,seewww.IdentityTheft.govandPub.5027.Visitwww.irs.gov/IdentityThefttolearnmoreaboutidentitytheftandhowtoreduceyourrisk.
Privacy Act NoticeSection6109oftheInternalRevenueCoderequiresyoutoprovideyourcorrectTINtopersons(includingfederalagencies)whoarerequiredtofileinformationreturnswiththeIRStoreportinterest,dividends,orcertainotherincomepaidtoyou;mortgageinterestyoupaid;theacquisitionorabandonmentofsecuredproperty;thecancellationofdebt;orcontributionsyoumadetoanIRA,ArcherMSA,orHSA.ThepersoncollectingthisformusestheinformationontheformtofileinformationreturnswiththeIRS,reportingtheaboveinformation.RoutineusesofthisinformationincludegivingittotheDepartmentofJusticeforcivilandcriminallitigationandtocities,states,theDistrictofColumbia,andU.S.commonwealthsandpossessionsforuseinadministeringtheirlaws.Theinformationalsomaybedisclosedtoothercountriesunderatreaty,tofederalandstateagenciestoenforcecivilandcriminallaws,ortofederallawenforcementandintelligenceagenciestocombatterrorism.YoumustprovideyourTINwhetherornotyouarerequiredtofileataxreturn.Undersection3406,payersmustgenerallywithholdapercentageoftaxableinterest,dividend,andcertainotherpaymentstoapayeewhodoesnotgiveaTINtothepayer.Certainpenaltiesmayalsoapplyforprovidingfalseorfraudulentinformation.
TheDepositaryfortheOffertoPurchaseis:
Ifdeliveringbyhand,expressmail,courier,
orotherexpeditedservice:
AmericanStockTransfer&TrustCompany,LLCOperationsCenter
Attn:ReorganizationDepartment620115thAvenue
Brooklyn,NewYork11219
Bymail:
AmericanStockTransfer&TrustCompany,LLC
OperationsCenterAttn:ReorganizationDepartment
620115thAvenueBrooklyn,NewYork11219
DELIVERY OF THIS LETTER OF TRANSMITTAL TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE WILL NOT CONSTITUTEA VALID DELIVERY TO THE DEPOSITARY.
AnyquestionsorrequestsforassistancemaybedirectedtotheInformationAgentatitstelephonenumberandlocationlistedbelow.RequestsforadditionalcopiesofthisOffertoPurchaseandtheLetterofTransmittalmaybedirectedtotheInformationAgentatitstelephonenumberandlocationlistedbelow.Youmayalsocontactyourbroker,dealer,commercialbankortrustcompanyorothernomineeforassistanceconcerningtheOffer.
TheInformationAgentfortheOfferis:
D.F.King&Co.,Inc.48WallStreet,22ndFloorNewYork,NY10005
BanksandBrokers,CallCollect:(212)269-5550AllOthersCallTollFree:(877)732-3617
Email:[email protected]
Exhibit (a)(1)(C)Notice of Guaranteed Delivery
To Tender Shares of Common Stockof
Reis, Inc.a Maryland corporation
at$23.00 Net Per Share
Pursuant to the Offer to PurchaseDated September 13, 2018
by
Moody’s Analytics Maryland Corp.a wholly-owned subsidiary of
Moody’s Corporation
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 11:59 P.M., EASTERN TIME, ON OCTOBER 12, 2018, UNLESS THEOFFER IS EXTENDED OR EARLIER TERMINATED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “EXPIRATION
DATE”).
ThisNoticeofGuaranteedDelivery,oronesubstantiallyintheformhereof,mustbeusedtoaccepttheOffer(asdefinedbelow)if(i)certificatesrepresentingsharesofcommonstock,parvalue$0.02pershare(the“Shares”),ofReis,Inc.,aMarylandcorporation(“Reis”),arenotimmediatelyavailable,(ii)theprocedureforbook-entrytransfercannotbecompletedpriortotheExpirationDateor(iii)timewillnotpermitallrequireddocumentstoreachAmericanStockTransfer&TrustCompany,LLC(the“Depositary”)priortotheExpirationDate.ThisNoticeofGuaranteedDeliverymaybedeliveredbyovernightcourier,mailedorfaxedtotheDepositary.SeeSection3oftheOffertoPurchase(asdefinedbelow).
TheDepositaryfortheOfferis:
Ifdeliveringbyovernightcourier: Ifdeliveringbymail:
AmericanStockTransfer&TrustCompany,LLCOperationsCenter
Attn:ReorganizationDepartment620115thAvenue
Brooklyn,NewYork11219
AmericanStockTransfer&TrustCompany,LLC
OperationsCenterAttn:ReorganizationDepartment
620115thAvenueBrooklyn,NewYork11219
FACSIMILE:718-234-5001
Theabovenumberisforfacsimilesonly.DoNOTcallthisnumberforquestionsontheOffer.AllquestionsontheOffershouldbedirectedtotheInformationAgentlistedintheOffertoPurchase.
DELIVERYOFTHISNOTICEOFGUARANTEEDDELIVERYTOANADDRESSOTHERTHANASSETFORTHABOVE,ORTRANSMISSIONOFTHISNOTICEOFGUARANTEEDDELIVERYVIAFACSIMILETOANUMBEROTHERTHANASSETFORTHABOVE,WILLNOTCONSTITUTEAVALIDDELIVERY.
THISNOTICEOFGUARANTEEDDELIVERYISNOTTOBEUSEDTOGUARANTEESIGNATURES.IFASIGNATUREONALETTEROFTRANSMITTALISREQUIREDTOBEGUARANTEEDBYANELIGIBLEINSTITUTION(ASDEFINEDINSECTION3OFTHEOFFERTOPURCHASE)UNDERTHEINSTRUCTIONSTHERETO,SUCHSIGNATUREGUARANTEEMUSTAPPEARINTHEAPPLICABLESPACEPROVIDEDINTHESIGNATUREBOXONTHEAPPROPRIATELETTEROFTRANSMITTAL.
TheEligibleInstitutionthatcompletesthisNoticeofGuaranteedDeliverymustcommunicatetheguaranteetotheDepositaryandmustdelivertheLetterofTransmittal(asdefinedbelow)oranAgent’sMessage(asdefinedinSection3oftheOffertoPurchase)andcertificatesforShares(orBook-EntryConfirmation,asdefinedinSection3oftheOffertoPurchase)totheDepositarywithinthetimeperiodshownherein.FailuretodosocouldresultinafinanciallosstosuchEligibleInstitution.ANoticeofGuaranteedDeliveryforphysicalsharepresentationbyabrokerorDTCparticipantmustbedeliveredorfaxedtotheDepositarybeforeitiscovered.
LadiesandGentlemen:
TheundersignedherebytenderstoMoody’sAnalyticsMarylandCorp.,aMarylandcorporationandawholly-ownedsubsidiaryofMoody’sCorporation,aDelawarecorporation,uponthetermsandsubjecttotheconditionssetforthintheOffertoPurchase,datedSeptember13,2018(asitmaybeamendedorsupplementedfromtimetotime,the“OffertoPurchase”),andtherelatedLetterofTransmittal(the“LetterofTransmittal”and,togetherwiththeOffertoPurchaseandotherrelatedmaterials,aseachmaybeamendedorsupplementedfromtimetotime,the“Offer”),receiptofwhichisherebyacknowledged,thenumberofSharesofReis,Inc.specifiedbelow,pursuanttotheguaranteeddeliveryproceduresetforthinSection3oftheOffertoPurchase.SharestenderedbytheNoticeofGuaranteedDeliverywillbeexcludedfromthecalculationoftheMinimumTenderCondition(asdefinedintheOffertoPurchase),unlesssuchSharesandotherrequireddocumentsarereceivedbytheDepositarypriortotheExpirationDate.
NumberofSharesandCertificateNo(s)(ifavailable)
☐CheckhereifShareswillbetenderedbybook-entrytransfer.
NameofTenderingInstitution:
DTCAccountNumber:
Dated:
Name(s)ofRecordHolder(s):
(Please type or print)
Address(es):
(Include Zip Code)
AreaCodeandTelephoneNo.: (Daytime telephone number)
Signature(s): Notice of Guaranteed Delivery
GUARANTEE(Nottobeusedforsignatureguarantee)
Theundersigned,anEligibleInstitution,hereby(i)representsthatthetenderofShareseffectedherebycomplieswithRule14e-4undertheU.S.SecuritiesExchangeActof1934,asamended,and(ii)withintwoNASDAQStockMarkettradingdaysofthedatehereof,(A)guaranteesdeliverytotheDepositary,atoneofitsaddressessetforthabove,ofcertificatesrepresentingtheSharestenderedhereby,inproperformfortransfer,togetherwithaproperlycompletedanddulyexecutedLetterofTransmittalandanyotherdocumentsrequiredbytheLetterofTransmittalor(B)guaranteesaBook-EntryConfirmationoftheSharestenderedherebyintotheDepositary’saccountatTheDepositoryTrustCompany(pursuanttotheproceduressetforthinSection3oftheOffertoPurchase),togetherwithaproperlycompletedanddulyexecutedLetterofTransmittal,oranAgent’sMessage(definedinSection3oftheOffertoPurchase)inlieuofsuchLetterofTransmittal,andanyotherdocumentsrequiredbytheLetterofTransmittal.Forpurposesoftheforegoing,aNASDAQStockMarkettradingdayisanydayonwhichtheNASDAQStockMarketisopenforbusiness.
NameofFirm:
Address: (Include Zip Code)
AreaCodeandTelephoneNo.: (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.
Exhibit (a)(1)(D)Letter to Brokers and Dealers with Respect to
Offer to Purchase for CashAll Outstanding Shares of Common Stock
of
Reis, Inc.a Maryland corporation
at$23.00 Net Per Share
Pursuant to the Offer to PurchaseDated September 13, 2018
by
Moody’s Analytics Maryland Corp.a wholly-owned subsidiary of
Moody’s Corporation
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 11:59 P.M., EASTERN TIME, ON OCTOBER 12, 2018, UNLESS THEOFFER IS EXTENDED OR EARLIER TERMINATED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “EXPIRATION
DATE”).
September 13, 2018
ToBrokers,Dealers,CommercialBanks,TrustCompaniesandOtherNominees:
WehavebeenengagedbyMoody’sAnalyticsMarylandCorp.,aMarylandcorporation(“Purchaser”)andawholly-ownedsubsidiaryofMoody’sCorporation,aDelawarecorporation(“Parent”),toactasInformationAgentinconnectionwithPurchaser’soffertopurchase,subjecttocertainconditions,includingthesatisfactionoftheMinimumTenderCondition,asdefinedintheOffertoPurchase,alloftheoutstandingsharesofcommonstock,parvalue$0.02pershare(the“Shares”),ofReis,Inc.,aMarylandcorporation(“Reis”),atapriceof$23.00perShare,nettotheholderincash,withoutinterest(the“OfferPrice”)andsubjecttoanywithholdingtaxes,uponthetermsandsubjecttotheconditionssetforthintheOffertoPurchase,datedSeptember13,2018(the“OffertoPurchase”),andtherelatedLetterofTransmittal(the“LetterofTransmittal”and,togetherwiththeOffertoPurchaseandotherrelatedmaterials,aseachmaybeamendedorsupplementedfromtimetotime,the“Offer”)enclosedherewith.PleasefurnishcopiesoftheenclosedmaterialstothoseofyourclientsforwhomyouholdSharesregisteredinyournameorinthenameofyournominee.EachShareownedbyanyofReis’swholly-ownedsubsidiariesorbyParentoranyofitssubsidiaries(includingPurchaser)(the“ConvertedShares”)shallnotbetenderedintheOfferbutshallinsteadbeconvertedattheeffectivetimeoftheMerger(asdefinedbelow)intoone(1)fullypaidandnon-assessableshareofcommonstock,parvalue$0.01pershare,oftheSurvivingCorporation(asdefinedbelow).
THE BOARD OF DIRECTORS OF REIS HAS UNANIMOUSLY RECOMMENDED THAT SHAREHOLDERS TENDER ALL OF THEIRSHARES TO PURCHASER PURSUANT TO THE OFFER.
The Offer is not subject to any financing condition. The conditions to the Offer are described in Section 13 of the Offer to Purchase.
ForyourinformationandforforwardingtoyourclientsforwhomyouholdSharesregisteredinyournameorinthenameofyournominee,weareenclosingthefollowingdocuments:
1.TheOffertoPurchase;
2.TheLetterofTransmittalforyouruseinacceptingtheOfferandtenderingSharesandfortheinformationofyourclients,togetherwiththeincludedInternalRevenueServiceFormW-9;
3.ANoticeofGuaranteedDeliverytobeusedtoaccepttheOfferifcertificatesfortheSharesandallotherrequireddocumentscannotbedeliveredtoAmericanStockTransfer&TrustCompany,LLC(the“Depositary”)priortotheExpirationDateoriftheprocedureforbook-entrytransfercannotbecompletedbytheExpirationDate(the“NoticeofGuaranteedDelivery”);and
4.AformofletterwhichmaybesenttoyourclientsforwhoseaccountsyouholdSharesregisteredinyournameorinthenameofyournominee,withspaceprovidedforobtainingsuchclients’instructionswithregardtotheOffer.
5.AlettertostockholdersofReisfromtheChiefExecutiveOfficerofReis,accompaniedbyReis’sSolicitation/RecommendationStatementonSchedule14D-9.
We urge you to contact your clients as promptly as possible. Please note that the Offer and withdrawal rights will expire at 11:59 p.m.,Eastern Time, on October 12, 2018, unless the Offer is extended or earlier terminated.
TheOfferisbeingmadepursuanttotheAgreementandPlanofMerger,datedasofAugust29,2018(asmaybeamendedfromtimetotime,the“MergerAgreement”),byandamongParent,PurchaserandReis.TheMergerAgreementprovides,amongotherthings,that,followingtheconsummationoftheOffer,aspromptlyaspossibleandsubjecttothesatisfactionof,ortotheextentwaivablebyPurchaser,waiverbyPurchaserofcertainconditions,PurchaserwillbemergedwithandintoReis(the“Merger”)withoutanyvoteorotheractionbytheshareholdersofReispursuanttoSection3-106.1oftheGeneralCorporationLawoftheStateofMaryland,asamended,withReiscontinuingasthesurvivingcorporationintheMergerandtherebybecomingawholly-ownedsubsidiaryofParentasaresultoftheMerger(the“SurvivingCorporation”).AttheeffectivetimeoftheMerger,allthenoutstandingShares(otherthantheConvertedShares)willbeconvertedintotherighttoreceiveconsiderationequaltotheOfferPrice,withoutinterest,lessanyapplicablewithholdingtaxes.
TheReisboardofdirectorshasunanimously:(i)approvedanddeclaredadvisabletheMergerAgreement,theOffer,theMergerandtheothertransactionscontemplatedbytheMergerAgreement(the“Transactions”),(ii)determinedthatitisinthebestinterestsofReisanditsstockholdersthatReisenterintotheMergerAgreementandconsummatetheTransactionsonthetermsandsubjecttotheconditionssetforthintheMergerAgreement,(iii)resolvedthattheMergershallbeeffectedunderSection3-106.1oftheMGCLand(iv)resolvedtorecommendthatthestockholdersofReisaccepttheOfferandtendertheirSharestoPurchaserpursuanttotheOffer.Inaddition,LloydLynford,thePresidentandChiefExecutiveofReisandJonathanGarfield,theExecutiveVicePresidentofReis,andcertainoftheirrespectiveaffiliatedtrustentitieshaveenteredintoagreementspursuanttowhichtheyhaveagreedtotender1,224,412and861,357,respectively,oftheirSharesintheOffer.
ForSharestobeproperlytenderedpursuanttotheOffer,(a)thesharecertificatesorconfirmationofreceiptofsuchSharesundertheprocedureforbook-entrytransfer,togetherwithaproperlycompletedanddulyexecutedLetterofTransmittal,includinganyrequiredsignatureguarantees,or,inthecaseofbook-entrytransfer,eithersuchLetterofTransmittaloranAgent’sMessage(asdefinedinSection3oftheOffertoPurchase)inlieuofsuchLetterofTransmittal,andanyotherdocumentsrequiredbytheLetterofTransmittaloranyothercustomarydocumentsrequiredbytheDepositary,mustbetimelyreceivedbytheDepositaryor(b)thetenderingshareholdermustcomplywiththeguaranteeddeliveryprocedures,allinaccordancewiththeOffertoPurchaseandtheLetterofTransmittal.YoumaygainsomeadditionaltimebymakinguseoftheNoticeofGuaranteedDelivery.Shares tendered by theNotice of Guaranteed Delivery will be excluded from the calculation of the Minimum Tender Condition, unless such Shares and other requireddocuments are received by the Depositary prior to the Expiration Time.
ExceptassetforthintheOffertoPurchase,Purchaserwillnotpayanyfeesorcommissionstoanybrokerordealerorotherperson,otherthantous,astheinformationagentandAmericanStockTransfer&TrustCompany,LLC,asthedepositaryandpayingagent,forsolicitingtendersofSharespursuanttotheOffer.Purchaserwill,however,uponrequest,reimbursebrokers,dealers,commercialbanks,trustcompaniesandothernomineesforcustomarymailingandhandlingexpensesincurredbytheminforwardingtheofferingmaterialtotheircustomers.PurchaserwillpayallstocktransfertaxesapplicabletoitspurchaseofSharespursuanttotheOffer,subjecttoInstruction6oftheLetterofTransmittal.
AnyinquiriesyoumayhavewithrespecttotheOffershouldbeaddressedto,andadditionalcopiesoftheenclosedmaterialsmaybeobtainedfrom,theundersignedattheaddressandtelephonenumberssetforthbelow.
Verytrulyyours,
D.F. KING & CO., INC.
Nothing contained herein or in the enclosed documents shall render you the agent of Parent, Purchaser, the Information Agent or the Depositaryor 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 inconnection with the Offer other than the enclosed documents and the statements contained therein.
The Information Agent for the Offer is:
D.F. King & Co., Inc.48 Wall Street, 22 nd Floor
New York, NY 10005Banks and Brokers, Call Collect: (212) 269-5550
All Others Call Toll Free: (877) 732-3617Email: [email protected]
Exhibit (a)(1)(E)Letter to Clients with Respect to
Offer to Purchase for CashAll Outstanding Shares of Common Stock
ofReis, Inc.
a Maryland corporationat
$23.00 Net Per SharePursuant to the Offer to Purchase
Dated September 13, 2018by
Moody’s Analytics Maryland Corp.a wholly-owned subsidiary of
Moody’s Corporation
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 11:59 P.M., EASTERN TIME, ON OCTOBER 12, 2018, UNLESS THEOFFER IS EXTENDED OR EARLIER TERMINATED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “EXPIRATION
DATE”).
September 13, 2018
ToOurClients:
EnclosedforyourconsiderationaretheOffertoPurchase,datedSeptember13,2018(the“OffertoPurchase”),andtherelatedLetterofTransmittal(the“LetterofTransmittal”and,togetherwiththeOffertoPurchaseandtheotherrelatedmaterials,aseachmaybeamendedorsupplementedfromtimetotime,the“Offer”)inconnectionwiththeofferbyMoody’sAnalyticsMarylandCorp.,aMarylandcorporation(“Purchaser”)andawholly-ownedsubsidiaryofMoody’sCorporation,aDelawarecorporation(“Parent”),topurchase,subjecttocertainconditions,includingthesatisfactionoftheMinimumTenderCondition,asdefinedintheOffertoPurchase,alloftheoutstandingsharesofcommonstock,parvalue$0.02pershare(the“Shares”),ofReis,Inc.,aMarylandcorporation(“Reis”),atapriceof$23.00perShare,nettotheholderincash,withoutinterest(the“OfferPrice”)andsubjecttoanywithholdingtaxes,uponthetermsandsubjecttotheconditionssetforthintheOffer.EachShareownedbyanyofReis’swholly-ownedsubsidiariesorbyParentoranyofitssubsidiaries(includingPurchaser)(the“ConvertedShares”)shallnotbetenderedintheOfferbutshallinsteadbeconvertedattheeffectivetimeoftheMerger(asdefinedbelow)intoone(1)fullypaidandnon-assessableshareofcommonstock,parvalue$0.01pershare,oftheSurvivingCorporation(asdefinedbelow).
THE BOARD OF DIRECTORS OF REIS HAS UNANIMOUSLY RECOMMENDED THAT SHAREHOLDERS OF REIS ACCEPT THEOFFER AND TENDER THEIR SHARES TO PURCHASER PURSUANT TO THE OFFER.
AlsoenclosedisalettertothestockholdersofReisfromtheChiefExecutiveOfficerofReis,accompaniedbyReis’sSolicitation/RecommendationStatementonSchedule14D-9.
WeorournomineesaretheholderofrecordofSharesheldforyouraccount.AtenderofsuchSharescanbemadeonlybyusastheholderofrecordandpursuanttoyourinstructions.TheLetterofTransmittalaccompanyingthisletterisfurnishedtoyouforyourinformationonlyandcannotbeusedbyyoutotenderSharesheldbyusforyouraccount.
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 theconditions set forth in the enclosed Offer to Purchase and the Letter of Transmittal.
Pleasenotecarefullythefollowing:
1.TheofferpricefortheOfferis$23.00perSharenettotheholderincash,withoutinterestandsubjecttoanywithholdingtaxes.
2.TheOfferisbeingmadeforalloutstandingShares.EachConvertedShareshallnotbetenderedintheOfferbutshallinsteadbeconvertedattheeffectivetimeoftheMergerintoone(1)fullypaidandnon-assessableshareofcommonstock,parvalue$0.01pershare,oftheSurvivingCorporation.
3.TheOfferisbeingmadeinconnectionwiththeAgreementandPlanofMerger,datedasofAugust29,2018(asitmaybeamendedfromtimetotime,the“MergerAgreement”),byandamongParent,PurchaserandReis,pursuanttowhich,followingtheconsummationoftheOffer,aspromptlyaspossibleandsubjecttothesatisfactionof,ortotheextentwaivablebyPurchaser,waiverbyPurchaserofcertainconditions,PurchaserwillbemergedwithandintoReis(the“Merger”)withoutanyvoteorotheractionbytheshareholdersofReisinaccordancewithSection3-106.1oftheGeneralCorporationLawoftheStateofMaryland,withReiscontinuingasthesurvivingcorporationandtherebybecomingawholly-ownedsubsidiaryofParentasaresultoftheMerger(the“SurvivingCorporation”).AttheeffectivetimeoftheMerger,allthenoutstandingShares(otherthantheConvertedShares)willbeconvertedintotherighttoreceiveconsiderationequaltotheOfferPrice,withoutinterest,lessanyapplicablewithholdingtaxes.
TheReisboardofdirectorshasunanimously:(i)approvedanddeclaredadvisabletheMergerAgreement,theOffer,theMergerandtheothertransactionscontemplatedbytheMergerAgreement(the“Transactions”),(ii)determinedthatitisinthebestinterestsofReisanditsstockholdersthatReisenterintotheMergerAgreementandconsummatetheTransactionsonthetermsandsubjecttotheconditionssetforthintheMergerAgreement,(iii)resolvedthattheMergershallbeeffectedunderSection3-106.1oftheMGCLand(iv)resolvedtorecommendthatthestockholdersofReisaccepttheOfferandtendertheirSharestoPurchaserpursuanttotheOffer.Inaddition,LloydLynford,thePresidentandChiefExecutiveofReisandJonathanGarfield,theExecutiveVicePresidentofReis,andcertainoftheirrespectiveaffiliatedtrustentitieshaveenteredintoagreementspursuanttowhichtheyhaveagreedtotender1,224,412and861,357,respectively,oftheirSharesintheOffer.
4.TheOfferandwithdrawalrightswillexpireat11:59p.m.EasternTimeonOctober12,2018,unlesstheOfferisextendedbyPurchaserorearlierterminated.
5.TheOfferisnotsubjecttoanyfinancingcondition.TheOfferissubjecttotheconditionsdescribedinSection13oftheOffertoPurchase.
6.TenderingshareholderswhoarerecordownersoftheirSharesandwhotenderdirectlytoAmericanStockTransfer&TrustCompany,LLC(the“Depositary”)willnotbeobligatedtopaybrokeragefeesorcommissionsor,exceptasotherwiseprovidedinInstruction6oftheLetterofTransmittal,stocktransfertaxeswithrespecttothepurchaseofSharesbyPurchaserpursuanttotheOffer.
IfyouwishtohaveustenderanyorallofyourShares,thenpleasesoinstructusbycompleting,executing,detachingandreturningtoustheInstructionFormonthedetachableparthereof.Anenvelopetoreturnyourinstructionstousisenclosed.IfyouauthorizetenderofyourShares,thenallsuchShareswillbetenderedunlessotherwisespecifiedontheInstructionForm.
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 behalfbefore the Expiration Date.
TheOfferisnotbeingmadeto(norwilltendersbeacceptedfromoronbehalfof)holdersofSharesinanyjurisdictioninwhichthemakingoftheOfferoracceptancethereofwouldnotbeincompliancewiththesecurities,“bluesky”orotherlawsofsuchjurisdiction.InthosejurisdictionswhereapplicablelawsrequiretheOffertobemadebyalicensedbrokerordealer,theOfferwillbedeemedtobemadeonbehalfofPurchaserbyoneormoreregisteredbrokersordealerslicensedunderthelawsofsuchjurisdictiontobedesignatedbyPurchaser.
INSTRUCTION FORMWith Respect to the Offer to Purchase for Cash
All Outstanding Shares of Common Stockof
Reis, Inc.a Maryland corporation
at$23.00 Net Per Share
Pursuant to the Offer to PurchaseDated September 13, 2018
by
Moody’s Analytics Maryland Corp.a wholly-owned subsidiary of
Moody’s CorporationTheundersignedacknowledge(s)receiptofyourletterandtheenclosedOffertoPurchase,datedSeptember13,2018(the“OffertoPurchase”),andtherelatedLetterofTransmittal(the“LetterofTransmittal”and,togetherwiththeOffertoPurchaseandtheotherrelatedmaterials,aseachmaybeamendedorsupplementedfromtimetotime,the“Offer”),inconnectionwiththeofferbyMoody’sAnalyticsMarylandCorp.,aMarylandcorporation(“Purchaser”)andawholly-ownedsubsidiaryofMoody’sCorporation,aDelawarecorporation(“Parent”),topurchase,subjecttocertainconditions,includingthesatisfactionoftheMinimumTenderCondition,asdefinedintheOffertoPurchase,alloftheoutstandingsharesofcommonstock,parvalue$0.02pershare(the“Shares”),ofReis,Inc.,aMarylandcorporation,atapriceof$23.00perShare,nettotheholderincash,withoutinterestandsubjecttoanywithholdingtaxes,uponthetermsandsubjecttotheconditionssetforthintheOffer.EachShareownedbyanyofReis’swholly-ownedsubsidiariesorbyParentoranyofitssubsidiaries(includingPurchaser)shallnotbetenderedintheOfferbutshallinsteadbeconvertedattheeffectivetimeoftheMergerintoone(1)fullypaidandnon-assessableshareofcommonstock,parvalue$0.01pershare,oftheSurvivingCorporation.
Theundersignedherebyinstruct(s)youtotendertoPurchaserthenumberofSharesindicatedbelowor,ifnonumberisindicated,allSharesheldbyyoufortheaccountoftheundersigned,uponthetermsandsubjecttotheconditionssetforthintheOffer.Theundersignedunderstandsandacknowledgesthatallquestionsastovalidity,formandeligibilityofthesurrenderofanycertificaterepresentingSharessubmittedonmybehalfwillbedeterminedbyPurchaserandsuchdeterminationshallbefinalandbinding.
ACCOUNT NUMBER:
NUMBER OF SHARES BEING TENDERED HEREBY: SHARES*
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 withreturn receipt requested, properly insured, is recommended. In all cases, sufficient time should be allowed to ensure timely delivery prior to theExpiration Date (as defined in the Offer to Purchase).Dated:
Signature(s)
Capacity**:
PleasePrintName(s)
Address
(IncludeZipCode)AreacodeandTelephoneno.
TaxIdentificationorSocialSecurityNo.
* Unlessotherwiseindicated,itwillbeassumedthatallSharesheldbyusforyouraccountaretobetendered.** Pleaseprovideifsignatureisbyanattorney-in-fact,executor,administrator,trustee,guardian,officerofacorporationorotherpersonactingina
fiduciaryorrepresentativecapacity.
Exhibit (a)(1)(F)
ThisannouncementisneitheranoffertopurchasenorasolicitationofanoffertosellShares(asdefinedbelow).TheOffer(asdefinedbelow)ismadesolelypursuanttotheOffertoPurchaseandtherelatedLetterofTransmittal(eachasdefinedbelow),andanyamendmentsorsupplementstosuchOffertoPurchaseorLetterofTransmittal.Purchaser(asdefinedbelow)isnotawareofanyjurisdictioninwhichthemakingoftheOfferortheacceptancethereofwouldbeprohibitedbysecurities,“bluesky”orothervalidlawsofsuchjurisdiction.IfPurchaserbecomesawareofanyU.S.stateinwhichthemakingoftheOfferortheacceptanceofSharespursuanttheretowouldnotbeincompliancewithanadministrativeorjudicialactiontakenpursuanttoaU.S.statestatute,Purchaserwillmakeagoodfaithefforttocomplywithanysuchlaw.If,aftersuchgoodfaitheffort,Purchasercannotcomplywithanysuchlaw,theOfferwillnotbemadeto(norwilltendersbeacceptedfromoronbehalfof)theholdersofSharesinsuchstate.InanyjurisdictionswhereapplicablelawsrequiretheOffertobemadebyalicensedbrokerordealer,theOffershallbedeemedtobemadeonbehalfofPurchaserbyoneormoreregistered
brokersordealerslicensedunderthelawsofsuchjurisdictiontobedesignatedbyPurchaser.
Notice of Offer to Purchase
All Outstanding Shares of Common Stockof
REIS, INC.at
$23.00 Net Per Share in Cashby
MOODY’S ANALYTICS MARYLAND CORP.a wholly-owned subsidiary of
MOODY’S CORPORATIONMoody’sAnalyticsMarylandCorp.,aMarylandcorporation(“Purchaser”),andadirectwholly-ownedsubsidiaryofMoody’sCorporation,a
Delawarecorporation(“Parent”),isofferingtopurchase(the“Offer”)alloutstandingsharesofcommonstock,parvalue$0.02pershare(“Shares”),ofReis,Inc.,aMarylandcorporation(“Reis”),atapriceperShareof$23.00,nettotheholderincash,withoutinterest,lessanyapplicablewithholdingtaxes(the“OfferPrice”)uponthetermsandsubjecttotheconditionsdescribedintheOffertoPurchase,datedSeptember13,2018(togetherwithanyamendmentsorsupplementsthereto,the“OffertoPurchase”),andintherelatedLetterofTransmittal(togetherwithanyamendmentsorsupplementsthereto,the“LetterofTransmittal”).TheOfferisbeingmadeforalloutstandingShares.EachShareownedbyanyofReis’swholly-ownedsubsidiariesorbyParentoranyofitssubsidiaries(includingPurchaser)(the“ConvertedShares”)shallnotbetenderedintheOfferbutshallinsteadbeconvertedattheeffectivetimeoftheMergerintoone(1)fullypaidandnon-assessableshareofcommonstock,parvalue$0.01pershare,oftheSurvivingCorporation(asdefinedbelow).
TheOfferisbeingmadeinconnectionwiththeAgreementandPlanofMerger,datedasofAugust29,2018(togetherwithanyamendmentsorsupplementsthereto,the“MergerAgreement”),amongReis,ParentandPurchaser,pursuanttowhich,aftertheconsummationoftheOfferandthesatisfactionorwaiverofcertainconditions,PurchaserwillbemergedwithandintoReis,andReiswillbethesurvivingcorporationandawholly-ownedsubsidiaryofParent(suchcorporation,the“SurvivingCorporation”andsuchmerger,the“Merger”).AttheeffectivetimeoftheMerger,eachthenoutstandingShare(otherthanConvertedShares),willbeconvertedintotherighttoreceiveconsiderationequaltotheOfferPrice.AsaresultoftheMerger,Reiswillceasetobeapublicly-tradedcompanyandwillbecomeawholly-ownedsubsidiaryofParent.UndernocircumstanceswillinterestbepaidontheOfferPriceforShares,regardlessofanyextensionoftheOfferoranydelayin
paymentforShares.ThepartiestotheMergerAgreementhaveagreedthat,uponthetermsandsubjecttotheconditionsspecifiedintheMergerAgreement,theMergerwillbecomeeffectiveaspromptlyaspossible(andinnoeventlaterthan9:00a.m.EasternTimeonthefirstbusinessdayfollowingthedateonwhichSharesarefirstacceptedforpurchaseundertheOffer)withoutameetingofReis’sstockholderstoadopttheMergerAgreement,inaccordancewithSection3-106.1oftheGeneralCorporationLawoftheStateofMaryland(the“MGCL”).Accordingly,iftheOfferisconsummated,PurchaserdoesnotanticipateseekingtheapprovalofReis’sremainingpublicstockholdersbeforeeffectingtheMerger.TheMergerAgreementismorefullydescribedintheOffertoPurchase.
TenderingstockholderswhohaveSharesregisteredintheirnamesandwhotenderdirectlytoAmericanStockTransfer&TrustCompany,LLC,thedepositaryfortheOffer(the“Depositary”)willnotbeobligatedtopaybrokeragefeesorcommissionsor,exceptasotherwiseprovidedintheLetterofTransmittal,transfertaxesonthepurchaseofSharesbyPurchaserpursuanttotheOffer.StockholderswhoholdtheirSharesthroughabroker,dealer,commercialbank,trustcompanyorothernomineeshouldcheckwithsuchinstitutionastowhetheritchargesanyservicefeesorcommissions.
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 11:59 P.M., EASTERN TIME, ON OCTOBER 12, 2018 (THE“EXPIRATION DATE”), UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED IN ACCORDANCE WITH THE TERMS OFTHE MERGER AGREEMENT, IN WHICH EVENT THE TERM “EXPIRATION DATE” WILL MEAN THE DATE TO WHICH THEINITIAL EXPIRATION DATE OF THE OFFER IS SO EXTENDED.
TheOfferissubjectto,amongothers,thefollowingconditions:
(i)theMinimumTenderCondition(asdescribedbelow);
(ii)theHSRCondition(asdescribedbelow);
(iii)theGovernmentalImpedimentCondition(asdescribedbelow);
(iv)theMergerAgreementshallnothavebeenterminatedinaccordancewithitsterms(the“TerminationCondition”);and
(v)sincethedateoftheMergerAgreement,thereshallnothaveoccurredanyevent,condition,change,occurrenceordevelopmentofastateofcircumstancesorfactsthat,individuallyorintheaggregate,hashad,orwouldreasonablybeexpectedtohaveamaterialadverseeffectonReisanditssubsidiariestakenasawhole.
TheOfferisnotsubjecttoafinancingcondition.TheMinimumTenderConditionrequiresthatthereshallhavebeenvalidlytenderedandnotwithdrawnpriortotheexpirationoftheOfferthatnumberofShares(excludinganySharestenderedpursuanttoguaranteeddeliveryproceduresthathavenotyetbeenreceived)whichwouldrepresentatleastamajorityoftheissuedandoutstandingShares(excluding,forpurposesofdeterminingsuchmajority,thetotalnumberofSharesownedbyanyofReis’swholly-ownedsubsidiaries).TheHSRConditionrequiresthatthewaitingperiod(andanyextensionthereof)applicabletotheconsummationoftheOfferandtheMergerundertheHart-Scott-RodinoAntitrustImprovementsActof1976,asamended(the“HSRAct”)shallhaveexpiredorbeenterminated.UndertheMergerAgreement,thepartieshaveeachagreedtofileaspromptlyaspracticablebutinanyeventbySeptember13,2018aPremergerNotificationandReportFormundertheHSRActwiththeFederalTradeCommission(the“FTC”)andtheAntitrustDivisionoftheU.S.DepartmentofJustice(the“AntitrustDivision”)inconnectionwiththepurchaseofSharesintheOfferandtheMerger.Thepartieswillaccordinglymakethefilingsreferencedintheforegoingsentenceonthedatehereof.TheOffermaynotbecompleteduntiltheexpirationofafifteen(15)daywaitingperiodfollowingthefiling,unlesssuchwaitingperiodisearlierterminatedbytheFTCandtheAntitrustDivision.Ifasecondrequestisissued,thewaitingperiodwithrespecttotheOffer(andtheMerger)wouldbeextendedforanadditionalperiodoften(10)calendardaysfollowingthedateofParent’ssubstantialcompliancewithsuchsecondrequest.Ifthefifteen(15)dayoradditionalten(10)daywaitingperiodexpiresonaSaturday,Sunday,orlegalpublicholiday,thewaitingperiodisextendeduntil11:59p.m.ofthenextdaythatisnotaSaturday,Sundayorfederalholiday.TheGovernmentalImpedimentConditionrequiresthatthereshallnothavebeen(i)enacted,issued,promulgatedorenteredbyanygovernmentalbodyofcompetentjurisdictionandremainingineffectanylaw,commonlaw,statute,ordinance,code,regulation,ruleorotherrequirementor(ii)issuedbyanygovernmentalbodyofcompetentjurisdictionand
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remainingineffectanyorder,decision,judgment,writ,injunction,decree,awardorotherdetermination,ineachcase,thatenjoinsorotherwiseprohibitstheconsummationoftheOfferortheMerger.TheOfferisalsosubjecttootherconditionsasdescribedintheOffertoPurchase(collectivelywiththeconditionsdescribedabove,the“OfferConditions”).SeeSection13—“ConditionsoftheOffer”oftheOffertoPurchase.
After careful consideration, the Reis board of directors has unanimously: (i) approved and declared advisable the Merger Agreement, theOffer, the Merger and the other transactions contemplated by the Merger Agreement (the “Transactions”), (ii) determined that it is in the bestinterests of Reis and its stockholders that Reis enter into the Merger Agreement and consummate the Transactions on the terms and subject to theconditions set forth in the Merger Agreement, (iii) resolved that the Merger shall be effected under Section 3-106.1 of the MGCL and (iv) resolvedto recommend that the stockholders of Reis accept the Offer and tender their Shares to Purchaser pursuant to the Offer.
TheMergerAgreementcontainsprovisionstogovernthecircumstancesunderwhichPurchaserisrequiredto,andParentisrequiredtocausePurchaserto,extendtheOffer.Specifically,theMergerAgreementprovidesthatif,asofthethenscheduledExpirationDate,anyOfferConditionhasnotbeensatisfiedorwaived,totheextentwaivable,Purchaserhasagreedto(andParenthasagreedtocausePurchaserto)extendtheOfferforadditionalperiodsofuptoten(10)businessdaysperextension(orlongerifagreed),topermitsuchOfferConditiontobesatisfied;andPurchaserhasagreedto(andParenthasagreedtocausePurchaserto)extendtheOfferfortheminimumperiodrequiredbyanylaw,interpretationorpositionoftheSECoritsstaffapplicabletotheOffer.However,PurchaserisnotrequiredtoextendtheOfferbeyondtheearliertooccurofthevalidterminationoftheMergerAgreementinaccordancewithitstermsandJanuary29,2019(the“OutsideDate”).NosubsequentofferingperiodwillbeavailablefollowingtheexpirationoftheOffer(asitmaybeextendedpursuanttothetermsoftheMergerAgreement).ParentandReishavetherighttoterminatetheMergerAgreementincertaincircumstancesincluding,subjecttocertainexceptions,intheeventtheHSRConditionandtheGovernmentalImpedimentConditionarebothsatisfied,buttheMinimumTenderConditionshallnothavebeensatisfiedbyDecember29,2018.
ThepurposeoftheOfferandtheMergerisforParentanditsaffiliates,throughPurchaser,toacquirecontrolof,andtheentireequityinterestin,Reis.FollowingtheconsummationoftheOffer,subjecttothesatisfactionorwaiveroftheremainingconditionssetforthintheMergerAgreement,Purchaser,ParentandReisarerequiredtoeffecttheMergerpursuanttoSection3-106.1oftheMGCLaspromptlyaspossible(andinnoeventlaterthan9:00a.m.EasternTimeonthefirstbusinessdayfollowingthedateonwhichSharesarefirstacceptedforpurchaseundertheOffer).NoappraisalrightsareavailabletoholdersofSharesinconnectionwiththeOffer.
OnthetermsandsubjecttotheconditionsoftheMergerAgreementPurchaserexpresslyreservestherighttowaive(totheextentpermittedunderapplicablelegalrequirements)anyOfferCondition,toincreasetheamountofcashconstitutingtheOfferPrice,tomakeanyotherchangesinthetermsandconditionsoftheOfferthatarenotinconsistentwiththetermsoftheMergerAgreementandtoterminatetheOfferiftheconditionstotheOfferarenotsatisfiedandtheMergerAgreementisterminated,exceptthatReis’spriorwrittenapprovalisrequiredforParentorPurchaserto(i)reducethenumberofSharessubjecttotheOffer;(ii)reducetheOfferPrice(exceptasprovidedintheMergerAgreement);(iii)change,modifyorwaivetheMinimumTenderCondition;(iv)imposeanyconditiontotheOfferinadditiontotheconditionssetforthintheOffertoPurchase;(v)extendorotherwisechangetheexpirationdateoftheOffer(exceptasprovidedintheMergerAgreement);(vi)changetheformofconsiderationpayableintheOffer;or(vii)otherwiseamend,modifyorsupplementanyoftheothertermsoftheOfferinanymanneradversetoReisortheholdersofShares.Inaddition,PurchaserandParentmaynotwaivetheHSRCondition,theGovernmentalImpedimentConditionortheTerminationConditionwithouttheconsentofReis.
Anyextension,waiveroramendmentoftheOffer,ordelayinacceptanceforpaymentorpayment,orterminationoftheOfferwillbefollowed,aspromptlyaspracticable,bypublicannouncementthereof,suchannouncementinthecaseofanextensiontobeissuednotlaterthan9:00a.m.,EasternTime,onthenextbusinessdayafterthepreviouslyscheduledExpirationDate.
TheacquisitionofReiswillbeaccountedforbyParentasabusinesscombinationinaccordancewithFASBAccountingStandardsCodificationTopic805,BusinessCombinations.
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ForpurposesoftheOffer,ifandwhenPurchasergivesoralorwrittennoticetotheDepositaryofitsacceptanceforpaymentofsuchSharespursuanttotheOffer,thenPurchaserhasacceptedforpaymentandtherebypurchasedSharesvalidlytenderedandnotvalidlywithdrawnpursuanttotheOffer.UponthetermsandsubjecttotheconditionsoftheOffer,paymentforSharesacceptedforpaymentpursuanttotheOfferwillbemadebydepositofthepurchasepricethereforwiththeDepositary,whichwillactasagentforthetenderingstockholdersforpurposesofreceivingpaymentsandtransmittingsuchpaymentstothetenderingstockholders.Under no circumstances will interest be paid on the Offer Price for Shares, regardless of any extension of theOffer or any delay in payment for Shares.
Inallcases,paymentforSharestenderedandacceptedforpaymentpursuanttotheOfferwillbemadeonlyaftertimelyreceiptbytheDepositaryof(i)certificatesrepresentingsuchSharesorconfirmationofthebook-entrytransferofsuchSharesintotheDepositary’saccountatTheDepositoryTrustCompany(“DTC”)pursuanttotheproceduressetforthintheOffertoPurchase,(ii)aLetterofTransmittal,properlycompletedanddulyexecuted,withanyrequiredsignatureguarantees(or,inthecaseofabook-entrytransfer,anAgent’sMessage(asdefinedbelow)inlieuoftheLetterofTransmittal),and(iii)anyotherdocumentsrequiredbytheLetterofTransmittaloranyothercustomarydocumentsrequiredbyDepositary.Accordingly,tenderingstockholdersmaybepaidatdifferenttimesdependinguponwhencertificatesforSharesorBook-EntryConfirmationswithrespecttoSharesareactuallyreceivedbytheDepositary.
SharestenderedpursuanttotheOffermaybewithdrawnatanytimepriortotheexpirationoftheOffer(i.e.,atanytimepriorto11:59p.m.,EasternTimeonOctober12,2018),orintheeventtheOfferisextended,onsuchdateandtimetowhichtheOfferisextended.Inaddition,SharesmaybewithdrawnatanytimeafterNovember11,2018,whichisthe60thdayafterthedateofthecommencementoftheOffer,unlesspriortothatdatePurchaserhasacceptedforpaymenttheSharesvalidlytenderedintheOffer.
ForawithdrawalofSharestobeeffective,awrittenorfacsimiletransmissionnoticeofwithdrawalmustbetimelyreceivedbytheDepositaryatoneofitsaddressessetforthonthebackcoverofthisOffertoPurchase.AnynoticeofwithdrawalmustspecifythenameofthepersonhavingtenderedtheSharestobewithdrawn,thenumberofSharestobewithdrawnandthenameoftherecordholderoftheSharestobewithdrawn,ifdifferentfromthatofthepersonwhotenderedsuchShares.Thesignature(s)onthenoticeofwithdrawalmustbeguaranteedbyanEligibleInstitution,unlesssuchShareshavebeentenderedfortheaccountofanyEligibleInstitution.IfShareshavebeentenderedpursuanttotheproceduresforbook-entrytransferassetforthintheOffertoPurchase,anynoticeofwithdrawalmustspecifythenameandnumberoftheaccountatDTCtobecreditedwiththewithdrawnShares.IfcertificatesrepresentingtheShareshavebeendeliveredorotherwiseidentifiedtotheDepositary,thenameoftheregisteredownerandtheserialnumbersshownonsuchcertificatesmustalsobefurnishedtotheDepositarypriortothephysicalreleaseofsuchcertificates.
Allquestionsastotheformandvalidity(includingtimeofreceipt)ofanynoticeofwithdrawalwillbedeterminedbyPurchaser,initssolediscretion,whichdeterminationwillbefinalandbinding,subjecttotherightsofthetenderingholdersofSharestochallengePurchaser’sdeterminationinacourtofcompetentjurisdiction.NowithdrawalofShareswillbedeemedtohavebeenproperlymadeuntilalldefectsandirregularitieshavebeencuredorwaived.NoneofParent,Purchaseroranyoftheirrespectiveaffiliatesorassigns,theDepositary,theInformationAgent,oranyotherpersonwillbeunderanydutytogivenotificationofanydefectsorirregularitiesinanynoticeofwithdrawalorincuranyliabilityforfailuretogivesuchnotification.WithdrawalsoftendersofSharesmaynotberescinded,andanySharesproperlywithdrawnwillbedeemednottohavebeenvalidlytenderedforpurposesoftheOffer.However,withdrawnSharesmaybere-tenderedbyfollowingoneoftheproceduresfortenderingSharesdescribedintheOffertoPurchaseatanytimepriortotheexpirationoftheOffer.
Theinformationrequiredtobedisclosedbyparagraph(d)(1)ofRule14d-6undertheSecuritiesandExchangeActof1934,asamended,iscontainedintheOffertoPurchaseandisincorporatedhereinbyreference.
ReishasprovidedPurchaserwithitslistofstockholdersandsecuritypositionlistingsforthepurposeofdisseminatingtheOffertoholdersofShares.TheOffertoPurchaseandtherelatedLetterofTransmittalwillbemailedtorecordholdersofShareswhosenamesappearonReis’sstockholderlistandwillbefurnishedtobrokers,dealers,commercialbanks,trustcompaniesandsimilarpersonswhosenames,orthenamesofwhosenominees,appearonthestockholderlistor,if
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applicable,whoarelistedasparticipantsinaclearingagency’ssecuritypositionlistingforsubsequenttransmittaltobeneficialownersofShares.
TheexchangeofSharesforcashpursuanttotheOfferortheMergerwillbeataxabletransactiontoU.S.HoldersforU.S.federalincometaxpurposes.ItisrecommendedthatstockholdersconsultwiththeirtaxadvisorstodeterminethetaxconsequencestothemofexchangingSharesforcashpursuanttotheOfferortheMerger.ForamorecompletedescriptionofU.S.federalincometaxconsequencesoftheOfferandtheMerger,seetheOffertoPurchase.
The Offer to Purchase, the related Letter of Transmittal and Reis’s Solicitation/Recommendation Statement on Schedule 14D-9 (whichcontains the recommendation of the Reis Board and the reasons therefor) contain important information and should be read carefully and in theirentirety before any decision is made with respect to the Offer.
QuestionsandrequestsforassistancemaybedirectedtoD.F.King&Co.,Inc.(the“InformationAgent”)atitsaddressandtelephonenumberssetforthbelow.RequestsforcopiesoftheOffertoPurchase,theLetterofTransmittalandothertenderoffermaterialsmaybedirectedtotheInformationAgent.SuchcopieswillbefurnishedpromptlyatPurchaser’sexpense.Stockholdersmayalsocontactbrokers,dealers,commercialbanks,trustcompaniesorothernomineesforassistanceconcerningtheOffer.ExceptassetforthintheOffertoPurchase,neitherParentnorPurchaserwillpayanyfeesorcommissionstoanybrokerordealerorotherpersonforsolicitingtendersofSharespursuanttotheOffer.Brokers,dealers,commercialbanksandtrustcompanieswilluponrequestbereimbursedbyusforcustomarymailingandhandlingexpensesincurredbytheminforwardingtheofferingmaterialtotheircustomers.
The Information Agent for the Offer is:
D.F. King & Co., Inc.48WallStreet,22ndFloorNewYork,NewYork10005
BanksandBrokers,CallCollect:(212)269-5550AllOthersCallTollFree:(877)732-3617
Email:[email protected]
September13,2018
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Exhibit (a)(5)(B)
NOTICE OF MERGEROF REIS, INC.
AND MOODY’S CORPORATIONPURSUANT TO SECTION 3-106.1(e)
OF THE MARYLAND GENERAL CORPORATION LAW
Dear Stockholder of Reis, Inc.:
Aspreviouslyannounced,onAugust29,2018,Reis,Inc.,aMarylandcorporation(“Reis”),enteredintoanAgreementandPlanofMerger(the“MergerAgreement”)withMoody’sCorporation,aDelawarecorporation(“Moody’s”),andMoody’sAnalyticsMarylandCorp.,aMarylandcorporationandwhollyownedsubsidiaryofMoody’s(the“MergerSub”).PursuanttotheMergerAgreement,theMergerSubwillcommenceatenderoffer(the“Offer”)toacquirealloftheissuedandoutstandingsharesofcommonstock,parvalue$0.02pershare,ofReis(the“CommonStock”),subjecttothetermsandconditionsoftheMergerAgreement,atapurchasepriceof$23.00pershare,nettothesellingstockholdersincash,withoutinterest(the“OfferPrice”),subjecttoanywithholdingoftaxesrequiredbyapplicablelaw.FollowingtheconsummationoftheOfferandsubjecttothetermsandconditionssetforthintheMergerAgreement,theMergerSubwillmergewithandintoReis,withReissurvivingasawhollyownedsubsidiaryofMoody’s(the“Merger”).AsaresultoftheMerger,eachissuedandoutstandingshareofCommonStock(subjecttocertainexceptionssetforthintheMergerAgreement)thatisnotvalidlytenderedandacceptedpursuanttotheOfferwillbecanceledandconvertedintotherighttoreceive,incashandwithoutinterest,anamountequaltotheOfferPrice.
InaccordancewithSection3-106.1(e)oftheMarylandGeneralCorporationLaw(the“MGCL”),noticeoftheOfferandtheMergerandtheothertransactionscontemplatedbytheMergerAgreementisherebygivenbytheMergerSub.ArticlesofMerger,pursuanttowhichtheMergerwillbecomeeffective,willbefiledwiththeStateDepartmentofAssessmentsandTaxationofMaryland(the“SDAT”)notearlierthan30daysafterthedateofthisNoticeofMerger.
TheMergerisconditionedupon,amongotherthings,theownershipbytheMergerSubofatleastamajorityoftheissuedandoutstandingsharesofCommonStock(excludingforpurposesofdeterminingsuchmajority,thetotalnumberofsharesofCommonStockownedbyanyofReis’swhollyownedsubsidiaries).ThisNoticeofMergerisgivenpursuanttoSection3-106.1(e)oftheMGCLtoeachstockholderofrecordofReisasofthedateofthismailing.InaccordancewithSection3-202(c)oftheMGCL,holdersofsharesofCommonStockarenotentitledtoexerciseappraisalrightsinconnectionwiththeMerger.
OnSeptember13,2018,MergerSubandMoody’swillfilewiththeSecuritiesandExchangeCommissionandwillsubsequentlymailtoeachstockholderofrecordofReismaterialsrelatingtotheOffer,includingaTenderOfferStatementoftheMergerSubonScheduleTOandarelatedletteroftransmittal,asummaryadvertisementandthisNoticeofMerger.IfyouhavequestionsaboutthisNoticeofMerger,theOfferortheMerger,youcancallD.F.King&Co.,Inc.,theinformationagentfortheOffer,at1-877-732-3617.
MOODY’SANALYTICSMARYLANDCORP.
By:
MarkAlmeidaChairmanoftheBoard&ChiefExecutiveOfficerSeptember13,2018
ADDITIONAL INFORMATION AND WHERE TO FIND IT
Thisnoticeisnotanoffertobuyorthesolicitationofanoffertosellanysecurities.ThesolicitationandtheoffertopurchasesharesofCommonStockhasbeenmadepursuanttoatenderofferstatementonScheduleTO,containinganoffertopurchaseandrelatedmaterials,filedbyMoody’sandtheMergerSubwiththeU.S.SecuritiesandExchangeCommission(the“SEC”)onSeptember13,2018.Reisfiledasolicitation/recommendationstatementonSchedule14D-9withtheSEConSeptember13,2018.
INVESTORSANDSECURITYHOLDERSAREURGEDTOREADBOTHTHETENDEROFFERMATERIALS(INCLUDINGTHEOFFERTOPURCHASE,ARELATEDLETTEROFTRANSMITTALANDCERTAINOTHERTENDEROFFERDOCUMENTS)ANDTHESOLICITATION/RECOMMENDATIONSTATEMENTONSCHEDULE14D-9REGARDINGTHEOFFER,INEACHCASE,ASTHEYMAYBEAMENDEDFROMTIMETOTIME,WHENTHEYBECOMEAVAILABLEBECAUSETHEYWILLCONTAINIMPORTANTINFORMATIONWHICHSHOULDBEREADCAREFULLYBEFOREANYDECISIONISMADEWITHRESPECTTOTHEOFFER.
Investorsandsecurityholdersmayobtainafreecopyofthesestatements(whenavailable)andotherdocumentsfiledwiththeSECatthewebsitemaintainedbytheSECatwww.sec.govorbydirectingsuchrequeststotheinformationagentfortheOffer,whichwillbenamedinthetenderofferstatementonScheduleTO.
FORWARD-LOOKING STATEMENTS
Certainstatementscontainedinthisnoticeareforward-lookingstatementsandarebasedonfutureexpectations,plansandprospectsforMoody’sbusinessandoperationsthatinvolveanumberofrisksanduncertainties.Theforward-lookingstatementsandotherinformationinthisreleasearemadeasofthedatehereof(exceptwherenotedotherwise),andMoody’sundertakesnoobligation(nordoesitintend)topubliclysupplement,updateorrevisesuchstatementsonagoing-forwardbasis,whetherasaresultofsubsequentdevelopments,changedexpectationsorotherwise.Moody’sisidentifyingcertainfactors,risksanduncertaintiesthatcouldcauseactualresultstodiffer,perhapsmaterially,fromthoseindicatedbytheseforward-lookingstatements.Thosefactors,risksanduncertaintiesinclude,butarenotlimitedto,creditmarketdisruptionsoreconomicslowdowns,whichcouldaffectthevolumeofdebtandothersecuritiesissuedindomesticand/orglobalcapitalmarkets;othermattersthatcouldaffectthevolumeofdebtandothersecuritiesissuedindomesticand/orglobalcapitalmarkets,includingregulation,creditqualityconcerns,changesininterestratesandothervolatilityinthefinancialmarketssuchasthatduetotheU.K.’sreferendumvotewherebytheU.K.citizensvotedtowithdrawfromtheEU;thelevelofmergerandacquisitionactivityintheU.S.andabroad;theuncertaineffectivenessandpossiblecollateralconsequencesofU.S.andforeigngovernmentactionsaffectingworld-widecreditmarkets,internationaltradeandeconomicpolicy;concernsinthemarketplaceaffectingourcredibilityorotherwiseaffectingmarketperceptionsoftheintegrityorutilityofindependentcreditagencyratings;theintroductionofcompetingproductsortechnologiesbyothercompanies;pricingpressurefromcompetitorsand/orcustomers;thelevelofsuccessofnewproductdevelopmentandglobalexpansion;theimpactofregulationasanNRSRO,thepotentialfornewU.S.,stateandlocallegislationandregulations,includingprovisionsintheFinancialReformActandregulationsresultingfromthatAct;thepotentialforincreasedcompetitionandregulationintheEUandotherforeignjurisdictions;exposuretolitigationrelatedtoourratingopinions,aswellasanyotherlitigation,governmentandregulatoryproceedings,investigationsandinquirestowhichMoody’smaybesubjectfromtimetotime;provisionsintheFinancialReformActlegislationmodifyingthepleadingstandards,andEUregulationsmodifyingtheliabilitystandards,applicabletocreditratingagenciesinamanneradversetocreditratingagencies;provisionsofEUregulationsimposingadditionalproceduralandsubstantiverequirementsonthepricingofservicesandtheexpansionofsupervisoryremittoincludenon-EUratingsusedforregulatorypurposes;thepossiblelossofkeyemployees;failuresormalfunctionsofouroperationsandinfrastructure;anyvulnerabilitiestocyberthreatsorothercybersecurityconcerns;theoutcomeofanyreviewbycontrollingtaxauthoritiesofMoody’sglobaltaxplanninginitiatives;exposuretopotentialcriminalsanctionsorcivilremediesifMoody’sfailstocomplywithforeignandU.S.lawsandregulationsthatareapplicableinthejurisdictionsinwhichMoody’soperates,includingdataprotectionandprivacylaws,sanctionslaws,anti-corruptionlaws,andlocallawsprohibitingcorruptpaymentstogovernmentofficials;theimpactofmergers,acquisitionsorother
businesscombinationsandtheabilityofMoody’stosuccessfullyintegrateacquiredbusinesses;currencyandforeignexchangevolatility;theleveloffuturecashflows;thelevelsofcapitalinvestments;andadeclineinthedemandforcreditriskmanagementtoolsbyfinancialinstitutions.Otherfactors,risksanduncertaintiesrelatingtoouracquisitionofReiscouldcauseouractualresultstodiffermateriallyfromthoseindicatedbytheseforward-lookingstatements,includinguncertaintiesastohowmanyofReis’sstockholderswilltendertheirsharesintheOffer;thepossibilitythatcompetingofferswillbemade;risksrelatingtofilingsandapprovalsrelatingtotheacquisition;theexpectedtimingofthecompletionoftheacquisition;theabilitytocompletetheacquisitionconsideringthevariousclosingconditions;difficultiesorunanticipatedexpensesinconnectionwithintegratingReis’soperations,productsandemployeesintoMoody’sandthepossibilitythatanticipatedsynergiesandotherbenefitsoftheacquisitionwillnotberealizedintheamountsanticipatedorwillnotberealizedwithintheexpectedtimeframe;risksthattheacquisitioncouldhaveanadverseeffectonthebusinessofReisoritsprospects,including,withoutlimitation,onrelationshipswithvendors,suppliersorcustomers;claimsmade,fromtimetotime,byvendors,suppliersorcustomers;changesintheglobalmarketplacethathaveanadverseeffectonthebusinessofReis;andtheaccuracyofanyassumptionsunderlyinganyoftheforegoing.Thesefactors,risksanduncertaintiesaswellasotherrisksanduncertaintiesthatcouldcauseMoody’sactualresultstodiffermateriallyfromthosecontemplated,expressed,projected,anticipatedorimpliedintheforward-lookingstatementsaredescribedingreaterdetailunder“RiskFactors”inPartI,Item1AoftheMoody’sannualreportonForm10-KfortheyearendedDecember31,2017,thetenderofferdocumentstobefiledwiththeSECbyMoody’sandtheMergerSubandthesolicitation/recommendationstatementonSchedule14D-9tobefiledbyReisandotherfilingsmadebyMoody’sfromtimetotimewiththeSECormaterialsincorporatedhereinortherein.Stockholdersandinvestorsarecautionedthattheoccurrenceofanyofthesefactors,risksanduncertaintiesmaycauseMoody’sactualresultstodiffermateriallyfromthosecontemplated,expressed,projected,anticipatedorimpliedintheforward-lookingstatements,whichcouldhaveamaterialandadverseeffectonMoody’sbusiness,resultsofoperationsandfinancialcondition.Newfactorsmayemergefromtimetotime,anditisnotpossibleforMoody’stopredictnewfactors,norcanMoody’sassessthepotentialeffectofanynewfactorsonit.
Exhibit (a)(5)(C)
ViaBusinessWire–Global
Moody’s Commences Cash Tender Offer for All Shares of Reis
NEW YORK, September 13, 2018 —Moody’sCorporation(NYSE:MCO)announcedtodaythatitswholly-ownedsubsidiary,Moody’sAnalyticsMarylandCorp.,hascommencedthepreviouslyannouncedplannedtenderoffertoacquirealloutstandingsharesofcommonstockofReis,Inc.(NASDAQ:REIS)atapriceof$23.00pershare,nettothesellerincash,withoutinterestandlessanyapplicablewithholdingtaxes.
ThetenderofferfollowsanannouncementonAugust30,2018thatMoody’sandReishadenteredintoadefinitivemergeragreementforMoody’stoacquirealloutstandingsharesofReisinanall-cashtransactionvaluedatapproximately$278million.ThetransactionhasbeenapprovedbytheBoardsofDirectorsofbothcompanies.
Thetenderofferperiodisscheduledtoexpireat11:59PM,EasternTime,onOctober12,2018,unlessextendedorterminatedearlier.
Thetransactionissubjecttocustomaryclosingconditionsandregulatoryapprovals,includingthetenderofamajorityoftheissuedandoutstandingsharesofReiscommonstock(otherthansharesownedbyReis’swholly-ownedsubsidiaries)andclearanceundertheHart-Scott-RodinoAntitrustImprovementsAct.
Moody’shasenteredintotenderandsupportagreementswithcertainReismanagementstockholdersunderwhichtheyhavecommittedtoacceptthetenderofferandtotenderalloftheirReisshares,whichrepresentapproximately18%ofReis’sissuedandoutstandingsharesofcommonstock(excludingforthesepurposesanysharesownedbyReis’swholly-ownedsubsidiaries).
CompletetermsandconditionsofthetenderoffercanbefoundintheOffertoPurchase,therelatedLetterofTransmittalandcertainothermaterialsfiledwiththeU.S.SecuritiesandExchangeCommission(SEC)onSeptember13,2018,andavailableatwww.sec.gov.Inaddition,onSeptember13,2018,ReisfiledaSolicitation/RecommendationStatementonSchedule14D-9withtheSECrelatingtothetenderoffer.
Followingcompletionofthetenderoffer,Moody’swillacquireallremainingsharesofcommonstockofReis(otherthansharesownedbyanyofReis’swholly-ownedsubsidiariesorbyMoody’soranyofitssubsidiaries)atthesamepriceof$23.00pershare,nettotheholderincash,withoutinterestandlessanyapplicablewithholdingtaxes,throughasecond-stepmergerwherebyReiswillbecomeawholly-ownedsubsidiaryofMoody’s.Uponconsummationofthemerger,sharesofReis’scommonstockownedbyanyofReis’swholly-ownedsubsidiariesorbyMoody’soranyofitssubsidiariesshallbeconvertedintofullypaidandnon-assessablesharesofcommonstock,parvalue$0.01pershare,ofthesurvivingcorporation.
CopiesoftheOffertoPurchase,therelatedLetterofTransmittalandothermaterialsrelatedtothetenderoffermaybeobtainedforfreefromtheinformationagent,D.F.King&Co.,Inc.,toll-freeat877-732-3617.Banksandbrokersmaycalltheinformationagentcollectat212-269-5550.ThedepositaryforthetenderofferisAmericanStockTransfer&TrustCo.,LLC.
ABOUT MOODY’S CORPORATION
Moody’sisanessentialcomponentoftheglobalcapitalmarkets,providingcreditratings,research,toolsandanalysisthatcontributetotransparentandintegratedfinancialmarkets.Moody’sCorporation(NYSE:MCO)istheparentcompanyofMoody’sInvestorsService,whichprovidescreditratingsandresearchcoveringdebtinstrumentsandsecurities,andMoody’sAnalytics,whichoffersleading-edgesoftware,advisoryservicesandresearchforcreditandeconomicanalysisandfinancialriskmanagement.Thecorporation,whichreportedrevenueof$4.2billionin2017,employsapproximately12,300peopleworldwideandmaintainsapresencein42countries.Furtherinformationisavailableatwww.moodys.com.
Additional Information and Where to Find It
ThiscommunicationisforinformationalpurposesonlyandisneitheranoffertopurchasenorasolicitationofanoffertosellanysharesofReisoranyothersecurities.ATenderOfferStatementonScheduleTO,includinganOffertoPurchase,therelatedLetterofTransmittalandcertainothermaterials,hasbeenfiledwiththeSECbyMoody’sanditsmergersubsidiary,Moody’sAnalyticsMarylandCorp.,andaSolicitation/RecommendationStatementonSchedule14D-9hasbeenfiledwiththeSECbyReis.ThetenderofferwillonlybemadepursuanttotheOffertoPurchase,therelatedLetterofTransmittalandtheotherdocumentsfiledasapartoftheScheduleTO.
INVESTORSANDSECURITYHOLDERSAREURGEDTOREADBOTHTHETENDEROFFERMATERIALS(INCLUDINGTHEOFFERTOPURCHASE,THERELATEDLETTEROFTRANSMITTALANDTHEOTHERTENDEROFFERMATERIALS)ANDTHESOLICITATION/RECOMMENDATIONSTATEMENTONSCHEDULE14D-9FILEDBYREISREGARDINGTHEOFFER,INEACHCASE,ASTHEYMAYBEAMENDEDFROMTIMETOTIME,BECAUSETHEYCONTAINIMPORTANTINFORMATIONWHICHSHOULDBEREADCAREFULLYBEFOREANYDECISIONISMADEWITHRESPECTTOTHETENDEROFFER.INVESTORSANDSECURITYHOLDERSMAYOBTAINAFREECOPYOFTHESESTATEMENTSANDOTHERDOCUMENTSFILEDWITHTHESECATTHEWEBSITEMAINTAINEDBYTHESECATWWW.SEC.GOVORBYDIRECTINGSUCHREQUESTSTOTHEINFORMATIONAGENTFORTHETENDEROFFER.
Forward-Looking Statements
Certainstatementscontainedinthisreleaseareforward-lookingstatementsandarebasedonfutureexpectations,plansandprospectsforMoody’sbusinessandoperationsthatinvolveanumberofrisksanduncertainties.Theforward-lookingstatementsandotherinformationinthisreleasearemadeasofthedatehereof(exceptwherenotedotherwise),andMoody’sundertakesnoobligation(nordoesitintend)topubliclysupplement,updateorrevisesuchstatementsonagoing-forwardbasis,whetherasaresultofsubsequentdevelopments,changedexpectationsorotherwise.Moody’sisidentifyingcertainfactors,risksanduncertaintiesthatcouldcauseactualresultstodiffer,perhapsmaterially,fromthoseindicatedbytheseforward-lookingstatements.Thosefactors,risksanduncertaintiesinclude,butarenotlimitedto,creditmarketdisruptionsoreconomicslowdowns,whichcouldaffectthevolumeofdebtandothersecuritiesissuedindomesticand/orglobalcapitalmarkets;othermattersthatcouldaffectthevolumeofdebtandothersecuritiesissuedindomesticand/orglobalcapitalmarkets,includingregulation,creditqualityconcerns,changesininterestratesandothervolatilityinthefinancialmarketssuchasthatduetotheU.K.’sreferendumvotewherebytheU.K.citizensvotedtowithdrawfromtheEU;thelevelofmergerandacquisitionactivityintheU.S.andabroad;theuncertaineffectivenessandpossiblecollateralconsequencesofU.S.andforeigngovernmentactionsaffectingworld-widecreditmarkets,internationaltradeandeconomicpolicy;concernsinthemarketplaceaffectingourcredibilityorotherwiseaffectingmarketperceptionsoftheintegrityorutilityofindependentcreditagencyratings;theintroductionofcompetingproductsortechnologiesbyothercompanies;pricingpressurefromcompetitorsand/orcustomers;thelevelofsuccessofnewproductdevelopmentandglobalexpansion;theimpactofregulationasanNRSRO,thepotentialfornewU.S.,stateandlocallegislationandregulations,includingprovisionsintheFinancialReformActandregulationsresultingfromthatAct;thepotentialforincreasedcompetitionandregulationintheEUandotherforeignjurisdictions;exposuretolitigationrelatedtoourratingopinions,aswellasanyotherlitigation,governmentandregulatoryproceedings,investigationsandinquirestowhichMoody’smaybesubjectfromtimetotime;provisionsintheFinancialReformActlegislationmodifyingthepleadingstandards,andEUregulationsmodifyingtheliabilitystandards,applicabletocreditratingagenciesinamanneradversetocreditratingagencies;provisionsofEUregulationsimposingadditionalproceduralandsubstantiverequirementsonthepricingofservicesandtheexpansionofsupervisoryremittoincludenon-EUratingsusedforregulatorypurposes;thepossiblelossofkeyemployees;failuresormalfunctionsofouroperationsandinfrastructure;anyvulnerabilitiestocyberthreatsorothercybersecurityconcerns;theoutcomeofanyreviewbycontrollingtaxauthoritiesofMoody’sglobaltaxplanninginitiatives;exposuretopotentialcriminalsanctionsorcivilremediesifMoody’sfailstocomplywithforeignandU.S.lawsandregulationsthatareapplicableinthejurisdictionsinwhichMoody’soperates,includingdataprotectionandprivacylaws,sanctionslaws,anti-corruptionlaws,andlocallawsprohibitingcorruptpaymentstogovernmentofficials;theimpactofmergers,acquisitionsorotherbusinesscombinationsandtheabilityofMoody’stosuccessfullyintegrateacquiredbusinesses;currencyandforeignexchangevolatility;theleveloffuturecashflows;thelevelsofcapitalinvestments;andadeclineinthedemandforcreditriskmanagementtoolsbyfinancialinstitutions.Otherfactors,risksanduncertaintiesrelatingtoouracquisitionofReiscouldcauseouractualresultstodiffermateriallyfromthoseindicatedbytheseforward-lookingstatements,includinguncertaintiesastohowmanyofReis’sstockholderswilltendertheirsharesintheoffer;thepossibilitythatcompetingofferswillbemade;risksrelatingtofilingsandapprovalsrelatingtotheacquisition;theexpectedtimingofthecompletionoftheacquisition;theabilitytocompletetheacquisitionconsideringthevariousclosingconditions;difficultiesorunanticipatedexpensesinconnectionwithintegratingReis’soperations,productsandemployeesintoMoody’sandthepossibilitythatanticipatedsynergiesandotherbenefitsoftheacquisitionwillnotberealizedintheamountsanticipatedorwillnotberealizedwithintheexpectedtimeframe;risksthattheacquisitioncouldhaveanadverseeffectonthebusinessofReisoritsprospects,including,withoutlimitation,onrelationshipswithvendors,suppliersorcustomers;claims
made,fromtimetotime,byvendors,suppliersorcustomers;changesintheglobalmarketplacethathaveanadverseeffectonthebusinessofReis;andtheaccuracyofanyassumptionsunderlyinganyoftheforegoing.Thesefactors,risksanduncertaintiesaswellasotherrisksanduncertaintiesthatcouldcauseMoody’sactualresultstodiffermateriallyfromthosecontemplated,expressed,projected,anticipatedorimpliedintheforward-lookingstatementsaredescribedingreaterdetailunder“RiskFactors”inPartI,Item1AoftheMoody’sannualreportonForm10-KfortheyearendedDecember31,2017,thetenderofferdocumentstobefiledwiththeSECbyMoody’sanditsacquisitionsubsidiaryandthesolicitation/recommendationstatementonSchedule14D-9tobefiledbyReisandotherfilingsmadebyMoody’sfromtimetotimewiththeSECormaterialsincorporatedhereinortherein.Stockholdersandinvestorsarecautionedthattheoccurrenceofanyofthesefactors,risksanduncertaintiesmaycauseMoody’sactualresultstodiffermateriallyfromthosecontemplated,expressed,projected,anticipatedorimpliedintheforward-lookingstatements,whichcouldhaveamaterialandadverseeffectonMoody’sbusiness,resultsofoperationsandfinancialcondition.Newfactorsmayemergefromtimetotime,anditisnotpossibleforMoody’stopredictnewfactors,norcanMoody’sassessthepotentialeffectofanynewfactorsonit.
Source:Moody’sCorporationInvestorRelations
CONTACTSStephenMaire,+1.212.553.7424GlobalHeadofInvestorRelationsandCommunicationsstephen.maire@moodys.com
CONTACTSMichaelAdler,+1.212.553.4667SeniorVicePresident,[email protected]
###
Exhibit (d)(4)
Reis, Inc.
May25,2018
Moody’sCorporation7WorldTradeCenter250GreenwichStreetNewYork,NewYork10007UnitedStatesofAmericaAttention:DavidPlatt
LadiesandGentlemen:
Inconnectionwithyourconsiderationofapossiblenegotiatedtransaction(the“Transaction”)betweenReis,Inc.(the“Company”)andMoody’sCorporation(“you”)oranyofyouraffiliates(asdefinedinRule12b-2undertheSecuritiesExchangeActof1934,asamended(the“ExchangeAct”)),theCompanymaymakeavailabletoyoucertainnon-public,confidentialorproprietaryinformationconcerningtheCompanyand/oritssubsidiaries.Theexecutionanddeliverybyyouofthisletterisaprerequisitetoanysuchinformationbeingfurnishedtoyou.1. Definitions.
1.1Theterm“ApprovedEquitySource”meansanyofyourpotentialsourcesofequityfinancing(includingco-bidders)asshallbeapprovedinwritingbytheCompanyoritsRepresentativesonitsbehalf.
1.2Theterm“EvaluationMaterial”meansallconfidential,proprietaryornonpublicinformation(whetherwritten,verbal,electronic,visualorotherwise)concerningtheCompanyoritsaffiliatesoritsortheirbusinesses,financialcondition,operations,assetsand/orliabilities(whetherpreparedbytheCompany,itsRepresentativesorotherwise)thathasbeenorwillbefurnishedtoyouoranyofyourRepresentativesbyoronbehalfoftheCompanyoranyofitsRepresentatives,andincludesalldata,reports,interpretations,forecasts,businessplansandrecords,financialorotherwise,concerningtheCompanyoritsaffiliatesthattheCompanyoranyofitsRepresentativeshaveprovidedorwillprovidetoyouoranyofyourRepresentativesaswellastherelevantpartsofanynotes,analyses,compilations,studies,interpretationsorotherdocumentspreparedbyyouoryourRepresentativestotheextentthattheycontain,reflectorarebasedupon,inwholeorinpart,theinformationprovidedtoyouoryourRepresentativesinconnectionwiththeexplorationofapossiblenegotiatedTransaction.Theterm“EvaluationMaterial”shallalsobedeemedtoincludeTransactionInformation(asdefinedbelow)exceptwhereotherwiseexpresslyprovided.Theterm“EvaluationMaterial”doesnotincludeinformationthat(i)isorbecomesgenerallyavailabletothepublic(otherthanasaresultofadisclosurebyyouoryourRepresentativesinviolationofthisletteragreement),(ii)waswithinyouroryourRepresentativespossession(ascanbedemonstratedbyyouoryourRepresentatives)priortoitbeingfurnishedtoyoubyoronbehalfoftheCompanyoranyofitsRepresentatives,providedthatsuchinformationwasnotknownbyyouoryourRepresentativestobesubjecttoaconfidentialityagreementwith,orothercontractual,legalorfiduciaryobligationofconfidentialityto,theCompanyoranyotherparty,(iii)becomesavailabletoyou
onanon-confidentialbasisfromasourceotherthantheCompanyoritsRepresentatives,providedthattoyourknowledgesuchsourceisnotboundbyaconfidentialityagreementwith,orothercontractual,legalorfiduciaryobligationofconfidentialityto,theCompanyoranyotherpartywithrespecttosuchinformation,or(iv)hasbeenotherwiseindependentlydevelopedbyyouoryourRepresentatives(ascanbedemonstratedbyyouoryourRepresentatives)withoutuseorreferencetoanyEvaluationMaterialoranyinformationfromasourceboundbyaconfidentialityagreementwith,orothercontractual,legalorfiduciaryobligationofconfidentialityto,theCompanyoranyotherpartywithrespecttosuchinformation.
1.3Theterm“person”shallbebroadlyinterpretedtoincludeanyindividual,corporation,partnership,limitedliabilitycompany,jointventure,group,governmentalentity,orotherentity.
1.4Theterm“Representatives”means,withrespecttoanyperson,theperson’saffiliatesanditsandtheirrespectivedirectors,officers,employees,advisors(includingfinancialadvisors,counselandaccountants)andotherrepresentatives.Withrespecttoyou,theterm“Representatives”shallnotincludeanypotentialsourceofequityfinancing(includinganyco-bidder)unlesssuchsourceisyouraffiliateoranApprovedEquitySource.
1.5Theterm“TransactionInformation”meansanyandallinformation(i)thatthisletteragreementexists,(ii)thatyouandtheCompanyareconsideringaTransaction,(iii)thatanyinvestigations,discussionsornegotiationsinvolvingyouaretakingplaceconcerningapossibleTransaction,(iv)thatyouhaverequestedorreceivedanyEvaluationMaterial,or(v)thatincludesanyoftheterms,conditionsorothernon-publicfactsorconfidentialinformationwithrespecttoapossibleTransactionorsuchinvestigations,discussions,ornegotiations,includingthestatusthereoforanyopinionorviewwithrespecttotheCompanyortheEvaluationMaterialinthecontextofapossibleTransaction.
2. NondisclosureandUseofEvaluationMaterial.
2.1NondisclosureandUseofEvaluationMaterial.Youagreethatyoushall,andyoushallcauseyourRepresentatives,to:(i)usetheEvaluationMaterialsolelyforthepurposeofevaluatingyourpossibleparticipationinapossiblenegotiatedTransaction,(ii)keeptheEvaluationMaterialconfidential,and(iii)notdiscloseanyoftheEvaluationMaterialtoanypersoninanymannerwhatsoever;provided,that(a)youmaymakeanydisclosureofsuchinformationtowhichtheCompanyoroneofitsauthorizedRepresentativesgivesitspriorwrittenconsent;(b)anyofsuchinformationmaybedisclosedtoyourRepresentativeswhoneedtoknowsuchinformationforthesolepurposeofevaluatingyourpossibleparticipationinapossiblenegotiatedTransaction,andwhoareadvisedoftheconfidentialityobligationsthatattachtotheEvaluationMaterial(itbeingagreedthatyouwillberesponsibleforanyviolationsoftheprovisionsofthisSection2byanyofyourRepresentatives);(c)youmaydiscloseTransactionInformation(butonlysuchTransactionInformation)that,ontheadviceofyourcounsel,isrequiredtobedisclosedbylawortherulesofanyexchangetowhichyouaresubject;provided,that,priortomakinganysuchdisclosure,younotifyandprovidetheCompanywithacopyoftheproposeddisclosureand,totheextentpracticableunderthecircumstances,providetheCompanywithanopportunitytocommentonsuchdisclosure;and(d)youoryourRepresentativesmaydiscloseEvaluationMaterialtotheextentrequiredpursuanttoanydecreeororderofanyjudicial,administrative,legislative,orregulatorybody(an“Order”),butinthecaseofthissubparagraph(d)onlyinaccordancewiththespecificationsdelineatedinParagraph2.3below.
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2.2AgreementswithThirdParties.InconsideringapossiblenegotiatedTransactionandreviewingtheEvaluationMaterial,yourepresentandwarrantthatyouandyourRepresentativesareactingsolelyonyourownbehalfandnotaspartofagroupwithanythirdparties(otherthanpotentiallyyourwholly-ownedsubsidiaries).Youwillnot,directlyorindirectly,withouttheCompany’soroneofitsauthorizedRepresentative’sconsent,enterintoanyagreement,arrangementorunderstanding,oranydiscussionsthatmayleadtothesamewithanyperson(otherthanyourRepresentatives)regardingapossiblenegotiatedTransactioninvolvingtheCompanyandyourepresentandwarrantthatneitheryounoranyofyourRepresentativeshaveenteredintoanysuchagreement,arrangement,understandingordiscussionspriortothedateofthisletteragreement.Youagree,withouttheCompany’soroneofitsauthorizedRepresentative’spriorwrittenconsent,nottoapproach,orhavediscussionswith,anyotherpersonregardingthepossibilityofjoininginacombinedproposalforapossiblenegotiatedTransactioninvolvingtheCompany.Youalsoagree,withouttheCompany’soroneofitsauthorizedRepresentative’spriorwrittenconsent,notto,directlyorindirectly,enterintoanyoralorwrittenagreement,arrangementorunderstandingregardingtheengagementofanypotentialsourceofdebtorequityfinancing(includingco-bidders)inconnectionwithapotentialTransactiononanexclusivebasisorinsuchamannerthatwouldotherwiseprohibitorimpedeanyotherpersonfromobtainingdebtorequityfinancingfromsuchpotentialsourceofdebtorequityfinancing(includingco-bidders).
2.3CompulsoryDisclosure.IntheeventthatyouoryourRepresentativesarerequiredbyanyOrdertodiscloseanyoftheEvaluationMaterial(otherthanTransactionInformationinacircumstancecoveredbyParagraph2.1(c)above),totheextentnotprohibitedbysuchOrderyoushall,totheextentreasonablypracticableandlegallypermissible,providetheCompanywithpromptwrittennoticeofanysuchrequirementsothattheCompanymayseekaprotectiveorderorotherappropriateremedyand/orwaivecompliancewiththeprovisionsofthisletteragreement.If,intheabsenceofaprotectiveorderorotherremedyorthereceiptofawaiverbytheCompany,youoranyofyourRepresentativesarenonetheless,ontheadviceofyourcounsel,requiredbyanyOrdertodiscloseEvaluationMaterial,youoryourRepresentativemay,withoutliabilityhereunder,disclosetotheapplicabletribunalonlythatportionoftheEvaluationMaterialwhichsuchcounseladvisesyouislegallyrequiredtobedisclosed,providedthatyouexerciseyourreasonablebesteffortstopreservetheconfidentialityoftheEvaluationMaterial,including,withoutlimitationtotheextentnotprohibitedbysuchOrder,bycooperatingwiththeCompanytoobtainanappropriateprotectiveorderorotherreliableassurancethattheconfidentialtreatmentwillbeaccordedtheEvaluationMaterial.
2.4ReturnandDestructionofEvaluationMaterial.IfyouoryourRepresentativesdecidethatyoudonotwishtoparticipateintheTransaction,youwillpromptlyinformtheCompanyoritsRepresentativesofthatdecision.Inthatcase,oratanytimeuponthewrittenrequestoftheCompanyforanyreason,youwillpromptlydelivertotheCompanyalldocumentsfurnishedtoyouoryourRepresentativesbyoronbehalfoftheCompanypursuantheretowithoutkeepinganycopies,inwholeorpart,thereof.Intheeventofsuchadecisionorrequest,allotherEvaluationMaterialpreparedbyyouoryourRepresentativesshallbedestroyedandno
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copythereofshallberetainedandyoushallcauseoneofyourauthorizedofficerstodelivertotheCompanyanoticestatingthatyouhavecompliedwithalloftherequirementsofthisParagraph2.4,excepttotheextentthatretentionofEvaluationMaterialisrequiredbyanyOrderorapplicablelaw,rule,regulationorlegalprocess,orforuseinactualoranticipatedlitigationandregulatorycompliance.Notwithstandingtheforegoing,(i)youshallnotberequiredtodestroyordeleteEvaluationMaterialinanyelectronicbackupsystems,providedthatsuchretainedEvaluationMaterialshallonlybeaccessiblebymembersofyourinformationtechnologyteamandshallnotbeaccessedorusedforanypurposesexceptaspermittedunderthisletteragreement,andinanyevent,shallremainsubjecttotheobligationsofconfidentialityhereundersolongassuchEvaluationMaterialissoretained,(ii)yourRepresentativesthatareaccountingfirms,regulatedfinancialinstitutionsorcounselmayretaincopiesoftheEvaluationMaterialinaccordancewithpoliciesandproceduresimplementedbysuchpersonsinordertocomplywithapplicablelaw,regulation,professionalstandardsorreasonablebusinesspractice,and(iii)youmayretaininyourlegaldepartment’sfilesonecopyoftheEvaluationMaterialtoensureyourcompliancewiththetermssetforintheprovisionsofthisSection2.4,providedthatsuchretainedEvaluationMaterialshallonlybeaccessiblebymembersofyourlegaldepartmentandshallnotbeaccessedorusedforanypurposesexceptaspermittedunderthisletteragreement,andinanyevent,shallremainsubjecttotheobligationsofconfidentialityhereundersolongassuchEvaluationMaterialissoretained.NotwithstandingthereturnorthedestructionoftheEvaluationMaterial,youandyourRepresentativeswillcontinuetobeboundbyyourobligationsofconfidentialityandotherobligationshereunder.
2.5OwnershipoftheEvaluationMaterial.YouagreethatasbetweenyouandtheCompany,theCompanyistheexclusiveowneroftheEvaluationMaterialandallintellectualpropertyrightsthereinandthereto.TheCompanydoesnotgrantyouoryourRepresentativesanylicenseofthoserights.
2.6Highly-ConfidentialMaterial.YouagreeandacknowledgethatcertainhighlyconfidentialEvaluationMaterialidentifiedbytheCompanymaybeprovidedforreviewonlybyalimitednumberofyourRepresentativeswho(x)areexpresslyapprovedbytheChiefExecutiveOfficerorChiefFinancialOfficeroftheCompanyand(y)executeanindividualconfidentialityagreementwiththeCompany.
3.Non-Solicitation.Youagreethat,foraperiodofeighteen(18)monthsafterthedateofthisletteragreement,neitheryounoryouraffiliateswill,directlyorindirectly,solicitforemploymentoremployanyoftheofficersoremployeesoftheCompanyoranyofitssubsidiarieswithwhomyouoryourRepresentativeshavehadcontact,directlyorindirectly,orwhowerespecificallyidentifiedtoyouoryourRepresentativesduringtheperiodofyourinvestigationoftheCompanyinconnectionwiththeexplorationofapossiblenegotiatedTransaction,withoutobtainingthepriorwrittenconsentoftheCompany.Notwithstandingtheforegoing,nothinghereinshallrestrictorprecludeyourrighttomakegeneralizedsearchesforemployeesintheordinarycourseofbusinessbytheuseofadvertisementsinanymediumortoengagefirmstoconductsuchsearches,solongassuchsearchfirmsdonottargetorfocusontheCompanyoritsaffiliates,andtoemploysuchpersonsidentifiedthroughsuchgeneralizedsearchesortohireanyonewhootherwisecontactsyouonhisorherowninitiative,withnootheractionbyyouoryourRepresentativesinviolationoftheprovisionssetforthinthisSection3.
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4.AccuracyofEvaluationMaterial.YouacknowledgethatneithertheCompanynoranyofitsRepresentativesismakinganyrepresentationorwarranty,expressorimplied,astotheaccuracyorcompletenessoftheEvaluationMaterial,andtheCompanyanditsRepresentativesexpresslydisclaimsanyandallliabilitytoyouoryourRepresentativesandanyotherpersonthatmaybebaseduponorrelateto(i)theuseoftheEvaluationMaterialbyyouoryourRepresentativesor(ii)anyerrorsthereinoromissionstherefrom.YoufurtheragreethatyouarenotentitledtorelyontheaccuracyandcompletenessoftheEvaluationMaterialandthatyouwillbeentitledtorelysolelyonthoseparticularrepresentationsandwarranties,ifany,thataremadetoyouinadefinitiveagreementrelatingtoapossiblenegotiatedTransactionwhen,as,andifitisexecuted,andsubjecttothoselimitationsandrestrictionsasmaybespecifiedinthatdefinitiveagreement.YoufurtheragreethattheCompanyshallalsohavenoliabilityforanyfailure,orallegedfailure,toprovideinformationtoyouoryourRepresentatives.
5.InformationRequestProcedures.YoufurtheragreethatallcommunicationsregardingapossiblenegotiatedTransaction,requestsforadditionalinformation,anddiscussionsorquestionsregardingprocedures,willbesubmittedordirectedonlytoAndrewPojani,JasonPartenzaorDavidIstockofCanaccordGenuity,Inc.,andundernocircumstanceswillyoucontact,communicatewithorsubmitinformationrequeststoanyoneattheCompanyortoanyofitsotherRepresentativeswithouttheexpresswrittenconsentoftheChiefExecutiveOfficerorChiefFinancialOfficeroftheCompany.
6.Standstill.InconsiderationoftheEvaluationMaterialbeingfurnishedtoyou,youagreethat,foraperiodofeighteen(18)monthsfromthedateofthisletteragreement,neitheryou,noranyofyouraffiliates,will(andneitheryounoranyofyouraffiliateswillassist,facilitate,provideorarrangefinancingtoothers,orencourageothersto),directlyorindirectly,actingaloneorinconcertwithotherswithrespecttotheCompanyoritssecurities,withoutthepriorwrittenconsentoftheCompany:(i)acquire,oragree,offer,seekorproposetoacquire,ownership(including,butnotlimitedto,beneficialownership(asdefinedinRule13d-3undertheExchangeAct))ofanysecuritiesoftheCompany,oranyrightsoroptionstoacquiresuchsecurities,orsecuritiesexchangeablefororconvertibleintoanysuchsecurities(collectively,“Securities”);(ii)offer,propose,makeanypublicannouncementwithrespectto,oroffertoenterinto,anymerger,businesscombination,recapitalization,consolidation,orothersimilarextraordinarytransactioninvolvingtheCompanyoranyofitssubsidiariesoranySecurities;(iii)make,orinanywayparticipatein,any“solicitation”of“proxies”(assuchtermsaredefinedunderRegulation14AoftheExchangeAct)tovote,orseektoadviseorinfluenceanypersonorentitywithrespecttothevotingof,anySecuritiesoftheCompany,orotherwiseseekorpropose,aloneorinconcertwithothers,toinfluenceorcontrolthemanagementorpoliciesoftheCompany;(iv)form,joinorinanywayparticipateina“group”(withinthemeaningofSection13(d)(3)oftheExchangeAct)withrespecttoanySecurities;(v)enterintoanydiscussions,negotiations,arrangementsorunderstandingswithanythirdpersonwithrespecttoanyofthematterssetforthintheprovisionsofthisParagraph6;(vi)seekorrequestpermissiontodoanyoftheforegoingormakeanypublicannouncementregardinganyofthematterssetforthintheprovisionsofthisParagraph6;or(vii)discloseanyintention,planorarrangementinconsistentwithanyoftheforegoing.NotwithstandingtheforegoingprovisionsofthisSection6,intheeventthattheCompanypubliclyannouncesthatit(oritsboardofdirectors)hasapprovedorenteredintoadefinitiveagreementwithrespecttoatenderofferorexchangeoffer,abusinesscombination,mergerorsimilarextraordinarytransactioninrespectoftheCompanywhichprovidesfortheacquisitionofmorethan50%ofthevotingsecuritiesorassetsoftheCompany,thenineachsuchcaseyouandyouraffiliatesshallnotbeprohibitedthereafterfromproposingtotheCompany’sboardofdirectorsonaconfidentialbasisabusinesscombination,mergerorpurchaseofsubstantiallyalloftheassetsoftheCompany.
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7.SecuritiesLawObligations.Youunderstandandagreethatyouareaware,andthatyouwilladviseyourRepresentatives,that,undercertaincircumstances,thefederalandstatesecuritieslawsprohibitanypersonwhohasmaterial,non-publicinformationaboutacompanyfrompurchasingorsellingsecuritiesofsuchacompanyorfromcommunicatingsuchinformationtoanyotherpersonundercircumstancesinwhichitisreasonablyforeseeablethatthepersonislikelytopurchaseorsellthosesecurities.Youherebyrepresentandwarrantthat,asofthedatehereof,neitheryounoranyofyouraffiliatesbeneficiallyownsanysharesofcommonstockoftheCompany(otherthansharesthatmaybeheldbyanaffiliaterepresentingintotallessthan0.5%oftheoutstandingsharesofthecommonstockoftheCompany).
8. Miscellaneous.
8.1EffectofAgreement.Youagreethat,unlessanduntilafinaldefinitiveagreementprovidingforanegotiatedTransactionhasbeenexecutedanddeliveredbytheCompanyandyou,neithertheCompanynoryouwillbeunderanylegalobligationofanykindwhatsoever,andhavenolegalliability,(including,withoutlimitation,anyfiduciaryobligations)withrespecttoapossiblenegotiatedTransactionbyvirtueofthisletteragreementexceptforthemattersspecificallyagreedtoherein.YoufurtheracknowledgeandagreethattheCompanyreservestheright,initssolediscretion,tobothrejectanyandallproposalsmadebyyouoryourRepresentativeswithregardtoapossiblenegotiatedTransaction,andtoterminatediscussionsandnegotiationswithyouoryourRepresentativesatanytimeforanyreasonornoreasonandwithorwithoutnoticetoyou.Youalsounderstandandagreethatthisletteragreement(a)doesnotlimittheCompanyoritsRepresentativesfromenteringintonegotiationsanddiscussionswithanotherpartyforapossiblenegotiatedtransactioninlieuofaTransactionwithyouandenteringintoadefinitiveagreementwithrespecttheretowithoutpriornoticetoyouoryourRepresentatives,(b)doesnotlimittheCompanyoritsRepresentativesfromchanginginanywayitsprocessforconsideringtheTransactionoranytransactioninlieuoftheTransactionwithoutpriornoticetoyouoryourRepresentatives,and(c)doesnotobligatetheCompanyoritsRepresentativestoprovideyouwithanyEvaluationMaterial.
8.2Waiver;Amendments.ItisunderstoodandagreedthatnofailureordelaybytheCompanyinexercisinganyright,powerorprivilegehereundershalloperateasawaiverthereof,norshallanysingleorpartialexercisethereofprecludeanyotherorfurtherexercisethereofortheexerciseofanyotherright,powerorprivilegehereunder.ThisagreementmaybemodifiedorwaivedonlybyaseparatewritingbytheCompanyandyouexpresslysomodifyingorwaivingthisagreement.
8.3Severability;EntireAgreement.Theinvalidityorunenforceabilityofanyprovisionofthisletteragreementshallnotaffectthevalidityorenforceabilityofanyotherprovisionsofthisletteragreement,whichshallremaininfullforceandeffect.ThislettercontainstheentireagreementbetweentheCompanyandyouconcerningthesubjectmatterhereofandsupersedesallpreviousagreements,writtenororal,relatingtothesubjectmatterhereof.
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8.4Remedies.ItisfurtherunderstoodandagreedthatmoneydamageswillnotbeasufficientremedyforanybreachofthisletteragreementbyyouoranyofyourRepresentativesand,inadditiontoallotherremediesthattheCompanyoritsRepresentativesmayhave,theCompanyanditsRepresentativesshallbeentitledtoequitablerelief,includinginjunctionandspecificperformance,asaremedyforanysuchbreachandyouherebywaiveanyrequirementforthesecuringorpostingofanybondinconnectionwithsuchremedy.SuchremediesshallnotbedeemedtobetheexclusiveremediesforabreachbyyouofthisletteragreementbutshallbeinadditiontoallotherremediesavailableatlaworequitytotheCompany.
8.5GoverningLaw.ThisletteragreementandallcontroversiesarisingfromorrelatingtoperformanceunderthisletteragreementshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofNewYork.Inconnectionwithanydisputearisingoutofthisletteragreement,youirrevocablyandunconditionally(a)consenttosubmittotheexclusivejurisdictionofthecourtsoftheStateofNewYorkandoftheUnitedStatesofAmerica,ineachcaselocatedintheCityofNewYork,(b)agreenottobringanyclaimregardingsuchadisputeinanyothercourt,and(c)waiveunconditionallyanyobjectiontothelayingofvenueinsuchforum,includinganyclaimofinconvenientforum.Youfurtheragreethatserviceofanyprocess,summons,noticeordocumentbyU.S.registeredmailtoyouattheaddressabove(attn.GeneralCounsel)shallbeeffectiveserviceofprocessforanyaction,suitorproceedingbroughtagainstyouinanysuchcourt.Youagreethatafinaljudgmentinanysuchdisputeshallbeconclusiveandmaybeenforcedinotherjurisdictionsbysuitsonthejudgmentorinanyothermannerprovidedbylaw.
8.6BindingEffect.Thisletteragreementshallbebindinguponyouandyourrespectivesuccessorsandassignsandshallinuretothebenefitof,andbeenforceableby,theCompanyanditsrespectivesuccessorsandassigns.
8.7Counterparts.Thisletteragreementmaybeexecutedinoneormorecounterparts,eachofwhichshallbedeemedtobeanoriginalbutallofwhichtogethershallconstituteoneandthesameinstrument.Thisletteragreementoranycounterpartmaybeexecutedanddeliveredbyfacsimilecopies,eachofwhichshallbedeemedtobeanoriginal.
8.8Term.Thisletteragreementwillterminatetwo(2)yearsfromthedatehereof,providedthattheconfidentialityandnon-useobligationsofyouandyourRepresentativesshallsurvivethereafterwithrespecttoanyEvaluationMaterialsthatareretainedbyyouroranyofyourRepresentativesforsolongastheyareretained.
(Signaturepagefollows)
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Pleaseconfirmyouragreementwiththeforegoingbysigningandreturningonecopyofthisletteragreementtotheundersigned,whereuponthisletteragreementshallbecomeabindingagreementbetweenyouandtheCompany.
Verytrulyyours,
Reis, Inc.
By: /s/MarkP.CantaluppiName:MarkP.CantaluppiTitle:VicePresident,CFO
Acceptedandagreedasofthedatefirstwrittenabove:Moody’s Corporation
By: /s/DavidB.PlattName: DavidB.Platt
Title:
ManagingDirector–HeadofCorporateDevelopment
Exhibit (d)(5)
Moody’sCorporation7WorldTradeCenter250GreenwichStreet
NewYork,NewYork10007UnitedStatesofAmerica
PRIVATE AND CONFIDENTIAL
August24,2018
Reis,Inc.1185AvenueoftheAmericasNewYork,NewYork10036
Attention:LloydLynford
DearLloyd:
Reis,Inc.,aMarylandcorporation(the“Company”),hasadvisedMoody’sCorporation,aDelawarecorporation(“Moody’s”,andtogetherwiththeCompany,the“Parties”)thatitwishestocontinuediscussionswithMoody’sregardingapossibleacquisitionbyMoody’sof100%oftheissuedandoutstandingsharesofcapitalstockoftheCompanyonthetermssetforthintheletterdatedAugust22,2018submittedbyMoody’stotheCompany(anacquisitiononsuchterms,the“PossibleTransaction”).Inconsiderationfor,amongotherthings,thewillingnessofMoody’stodevotesuchtime,effortandresourcesinconnectionwiththepursuitofthePossibleTransaction,theParties,intendingtobelegallybound,herebyagreeasfollows(this“Agreement”):
1.(a) DuringtheperiodcommencingonthedateofthisAgreementandendingontheearliertooccurof(i)5:00p.m.NewYorkCitytimeonAugust29,2018(orsuchlaterdateasmutuallyagreedinwritingbyMoody’sandtheCompany),or(ii)thedateofexecutionanddeliveryofadefinitivewrittenagreementwithrespecttothePossibleTransaction(the“ExclusivityPeriod”),theCompanyandMoody’sintendtonegotiateregardingthePossibleTransaction,andtheCompanyshallnot,andshallnotpermitanyofitssubsidiariesanditsandtheirrespectiveofficers,directors,employees,investmentbankers,attorneys,accountants,professionaladvisors,agentsandotherrepresentatives(collectively,the“Representatives”)to,directlyorindirectly:
(i) initiate,encourage,orsolicitanyinquirieswithrespecttoanyAlternativeTransactionProposal(asdefinedbelow)orthemakingofanyAlternativeTransactionProposal;
(ii) participateinanydiscussionsornegotiations,orprovideanynonpublicinformationtoanypersonrelatingtoorinconnectionwithanAlternativeTransactionProposal;
(iii) approveorrecommend,orpubliclyannounceanintentiontoapproveorrecommend,anyAlternativeTransactionProposal;or
(iv) enterintoanyletterofintent,agreementinprinciple,acquisitionagreementoragreement(otherthanaconfidentialityagreement)relatingtoanyAlternativeTransactionProposal.
(b) AsusedinthisAgreement,“AlternativeTransactionProposal”meansanyinquiry,proposaloroffermadebyanyindividual,corporation,limitedliabilitycompany,partnership,association,trustoranyotherentityororganization,includingagovernmentalauthority(“Person”)orgroupofPersons(otherthanMoody’soranyaffiliatethereof)topurchaseorotherwiseacquire,directlyorindirectly,inonetransactionoraseriesoftransactions(includinganymerger,consolidation,tenderoffer,exchangeoffer,stockorcashacquisition,assetacquisition,bindingshareexchange,businesscombination,recapitalization,liquidation,dissolution,jointventureorsimilartransaction),(i)beneficialownership(asdefinedinSection13(d)oftheSecuritiesExchangeActof1934,asamended)offivepercent(5%)ormoreofanyclassofequitysecuritiesoftheCompany(otherthanequitysecuritiesoftheCompanyissuedpursuanttoanyCompanyemployeebenefitorincentiveplanineffectonthedatehereof)or(ii)anyassetsoftheCompanyoritssubsidiariesthatconstitutefivepercent(5%)ormoreoftherevenuesorassetsoftheCompanyanditssubsidiaries,takenaswhole(exceptsuchsalesofassetsmadeintheordinarycourseofbusinessinaccordancewiththepastpracticesoftheCompany).
2. ImmediatelyupontheexecutionofthisAgreement,theCompanyshall,andshallcauseeachofitsRepresentativesto,discontinueanyongoingdiscussionsornegotiationsrelatingtoapossibleAlternativeTransactionProposal.
3.(a) Intheeventthat,duringtheExclusivityPeriod,abonafideAlternativeTransactionProposalisreceivedbyanyoftheCompanyanditsRepresentativesafterthedatehereofotherthaninbreachofSection1(a)(i)hereof(an“UnsolicitedProposal”),andtheboardofdirectorsoftheCompanydeterminesafterconsultationwiththeCompany’soutsidelegalandfinancialadvisors,(x)thatsuchUnsolicitedProposalconstitutes,orisreasonablylikelytoresultin,aSuperiorProposal,and(y)toengageorparticipateinnegotiationsordiscussionswith,andprovidenonpublicinformationto,thePerson(s)orentitiesrelatingtosuchUnsolicitedProposalinaccordancewithSection3(b)hereof,theCompanyshallpromptly(andinnoeventmorethan24hoursaftersuchdeterminationbytheCompanytoengageorparticipateinsuchnegotiationsordiscussions)notifyMoody’softhematerialtermsofsuchUnsolicitedProposalwhichinformationshallbeprovidedandheldconfidentialbyMoody’spursuanttothetermsoftheConfidentialityAgreement(asdefinedbelow).
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(b) NotwithstandinganythingtothecontraryinthisAgreement,thePartiesagreethattheCompanymay,andmaypermititsRepresentativesto,directlyorindirectly,engageorparticipateinnegotiationsordiscussionswith,andprovidenonpublicinformationto,anyPerson(s)orentitiesrelatingtoanyUnsolicitedProposalthattheboardofdirectorsoftheCompanydetermines,afterconsultationwiththeCompany’soutsidelegalandfinancialadvisorsconstitutes,orisreasonablylikelytoresultin,aSuperiorProposal(asdefinedbelow).“SuperiorProposal”meansanUnsolicitedProposalontermsthattheboardofdirectorsoftheCompanydeterminesingoodfaith(afterconsultationwithitslegalcounselandfinancialadvisorsandtakingintoaccountallfinancial,legal,regulatoryandanyotheraspectsoftheUnsolicitedProposalthattheboardofdirectorsoftheCompanydeemsrelevant),aremorefavorable,fromafinancialpointofview,tothestockholdersoftheCompanythantheproposal(includinganyproposalmadesubsequenttothedatehereof)madebyMoody’sand/oranyofitsAffiliates;provided,thatforpurposesofthedefinitionof“SuperiorProposal”,thereferencesto“5%”inthedefinitionof“AlternativeTransactionProposal”shallbedeemedtobereferencesto“50%”.
4. Moody’sherebyagreesingoodfaithtonotifytheCompanyaspromptlyaspracticable(andinnoeventmorethan24hours)followingitsdeterminationnottopursuethePossibleTransaction,and,uponsuchnoticebyMoody’s,theCompanyshallhavetherighttoimmediatelyterminatethisAgreement.
5. UnlessanduntilawrittendefinitivewrittenagreementbetweenMoody’sandtheCompanywithrespecttothePossibleTransactionhasbeenexecutedanddelivered,neitherMoody’snortheCompanywillbeunderanylegalobligationtocontinuediscussionsabout,toenterintodefinitivewrittenagreementsfor,ortoconsummatethePossibleTransactionoranyothertransactionbyvirtueofthisAgreementoranyotherwrittenororalexpressionwithrespectthereto.NeitherPartyshallhaveanyobligationtoauthorizethePossibleTransactionoranyothertransactionwiththeotherParty.ThisAgreementshallbeheldconfidentialinaccordancewiththeprovisionsofthatcertainConfidentialityAgreement,datedMay25,2018byandbetweentheCompanyandMoody’s(the“ConfidentialityAgreement”),exceptthatthisAgreementmaybedisclosedinanyproxystatement,registrationstatementorotherfilingrequiredunderUnitedStatessecuritieslawsrelatingtothePossibleTransaction.
6. ThisAgreementshallbebindinguponandinuresolelytothebenefitofthepartieshereto,andnothinginthisAgreement,expressorimplied,isintendedtoconferuponanyotherPersonanyrightsorremediesofanynaturewhatsoeverunderorbyreasonofthisAgreement.
7. ThisAgreementmaybeamendedonlypursuanttoawritteninstrumentsignedbythepartieshereto.NofailureordelaybyanyPartyinexercisinganyofitsrightshereundershalloperateasawaiverthereof,norshallanysingleorpartialexercisethereofprecludeanyotherorfurtherexercisethereof.IfanyprovisionofthisAgreementisheldtobeinvalid,voidorunenforceable,theremainderoftheprovisionsofthisAgreementwillremaininfullforceandeffect.
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8. ThisAgreement,andanydispute,claim,legalaction,suit,proceedingorcontroversyrisingoutoforrelatinghereto,shallbegovernedby,andconstruedinaccordancewith,theLawoftheStateofMaryland,withoutregardtoconflictoflawprinciplesthereof.EachParty(a)irrevocablyandunconditionallysubmitstothepersonaljurisdictionoftheChosenCourts(asdefinedbelow),(b)agreesthatitwillnotattempttodenyordefeatsuchpersonaljurisdictionbymotionorotherrequestforleavefromanysuchcourt,(c)agreesthatanyactionorproceedingarisingoutoforrelatingtothisAgreementshallbebrought,triedanddeterminedonlyinastateorfederalcourtlocatedinBaltimoreCity,Maryland(the“ChosenCourts”),(d)waivesanyclaimofimpropervenueoranyclaimthattheChosenCourtsareaninconvenientforum,and(e)agreesthatitwillnotbringanyactionarisingoutoforrelatingtothisAgreementinanycourtotherthantheChosenCourts.
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Eachpartyherebyconfirmsthatithasallrequisitepowerandauthority,includinganynecessaryapprovalbyitsgoverningbody,toexecuteanddeliverthisAgreementandtoperformitsobligationshereunder.ThisAgreementmaybeexecutedincounterparts,eachofwhichshallbedeemedanoriginal,andallofwhichshallconstituteoneandthesamedocument.Iftheforegoingaccuratelysetsforthouragreement,pleaseexecutethisAgreementwhereindicatedandreturnacopytous.
Verytrulyyours,
Moody’s Corporation
By: /s/DavidPlatt Name:DavidPlatt Title:ManagingDirector,Headof CorporateDevelopment
Address for Notice:
Moody’sCorporation
7WorldTradeCenter250GreenwichStreetNewYork,NewYork10007
Attn:RichardSteele Email:[email protected]
AGREEDANDACKNOWLEDGED(asofthedatefirstindicatedabove):
Reis,Inc.
By: /s/LloydLynfordName:LloydLynfordTitle:PresidentandChiefExecutiveOfficer
Address for Notice:
Reis,Inc.1185AvenueoftheAmericasNewYork,NewYork10036
Attn:LloydLynfordE-mail:[email protected]
