HVT Flashcards
What are the risks of having different sets of carve-outs for a global cap for the 3 related SPAs?
On the issue of having 2 different sets of carve-outs (i.e. we don’t mention in the 4-Line the carve-outs agreed to by Cymi for the 2-Line), there is the risk that any uncapped claims under the 2-Line will exhaust the 14% cap under the 4-Line, leaving no further recourse under the 4-Line (as explained, this is a timing issue, as there would be no problem if claims were bought first under the 4-Line, followed by claims under the 2-Line). There would similarly be a problem if all the claims for the 4-Line and 2-Line were brought simultaneously. I have not added back the carve outs for the 2-Line into the 4-Line for now, pending your negotiations with Cobra.
