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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 20, 1998
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FIDELITY NATIONAL FINANCIAL, INC.
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(Exact name of Registrant as specified in charter)
Delaware 01-9396 86-0498599
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
17911 Von Karman, Suite 300, Irvine, California 92614
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (949) 622-5000
-----------------------------
Not Applicable
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(Former name or former address, if changed, since last report.)
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Item 5. Other Events.
Matrix Capital Corporation
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On August 31, 1998, Fidelity National Financial, Inc. (the "Company") and
Matrix Capital Corporation ("Matrix") jointly announced their mutual agreement
to terminate the Agreement and Plan of Merger, dated as of March 25, 1998 (the
"Merger Agreement"). The Merger Agreement provided for the Company's acquisition
of Matrix by means of a merger (the "Merger") of a wholly-owned subsidiary of
the Company with and into Matrix, with Matrix surviving the Merger as a
wholly-owned subsidiary of the Company and each outstanding share of Matrix
Common Stock being converted into the right to receive 0.80 shares (subject to
adjustment) of the Company's Common Stock.
The Company and Matrix have also agreed that, subject to regulatory
approvals and certain conditions, the Company will maintain $250 million in
deposits at Matrix Capital Bank, a wholly-owned subsidiary of Matrix. Matrix
also agreed, subject to regulatory approvals and certain conditions, including
the negotiation of definitive agreements, to issue to the Company warrants to
purchase 150,000 shares of Matrix common stock at an exercise price equal to
115% of the average of the closing bid and asked prices of the Matrix common
stock, as reported on Nasdaq, on August 27, 1998.
Alamo Title Holding Company
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On August 20, 1998, the Company completed the acquisition of Alamo Title
Holding Company ("Alamo"). Alamo, through its subsidiaries, is a regional
underwriter of title insurance policies and performs other title-related
services. The acquisition was effected by means of a merger of a wholly-owned
subsidiary of the Company with and into Alamo, with Alamo surviving the merger
as a wholly-owned subsidiary of the Company. As a result of the merger, each of
the 1,356,638 shares of Alamo's common stock were converted into 1.491 shares of
the Company's Common Stock, plus cash in lieu of fractional shares. Alamo had
total assets of $74.3 million at June 30, 1998 and generated total revenues and
net income of $99.9 million and $4.2 million for the year ended December 31,
1997 and $57.7 million and $4.7 million, respectively, for the six months ended
June 30, 1998. The merger is intended to be treated as a pooling of interests
for accounting purposes.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99.1 Merger Termination Agreement, dated as of August 28, 1998, by and
among Fidelity National Financial, Inc., MCC Merger, Inc. and
Matrix Capital Corporation.
99.2 Joint Press Release of Fidelity National Financial, Inc. and Matrix
Capital Corporation dated August 31, 1998.
99.3 Press Release of Fidelity National Financial, Inc. dated August 24,
1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
FIDELITY NATIONAL FINANCIAL, INC.
Dated: September 4, 1998 By: /s/ M'LISS JONES KANE
---------------------------------
M'Liss Jones Kane
Senior Vice President
and General Counsel
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------ -----------
<C> <S>
99.1 Merger Termination Agreement, dated as of August 28, 1998, by and
among Fidelity National Financial, Inc., MCC Merger, Inc. and
Matrix Capital Corporation.
99.2 Joint Press Release of Fidelity National Financial, Inc. and Matrix
Capital Corporation dated August 31, 1998.
99.3 Press Release of Fidelity National Financial, Inc. dated August 24,
1998.
</TABLE>
<PAGE> 1
EXHIBIT 99.1
Merger Termination Agreement
This Merger Termination Agreement (the "Agreement") is entered into as
of this 28th day of August 1998, between Matrix Capital Corporation ("Matrix"),
Fidelity National Financial, Inc. ("Fidelity") and MCC Merger, Inc. ("MCC
Merger").
WHEREAS, the parties hereto have previously entered into an Agreement
and Plan of Merger, dated as of March 25, 1998 ("the Merger Agreement") and
mutually desire to terminate the Merger Agreement and to seek to engage to the
extent permissible in certain other transactions and relationships; and
WHEREAS, Matrix and Fidelity each may file with the Securities and
Exchange Commission on their respective filings on Form 8-K a copy of the press
release attached hereto as Appendix A (the "Press Release").
NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth below, the parties hereby agree as follows.
ARTICLE I
TERMINATION OF THE MERGER AGREEMENT
1.1 Matrix, Fidelity and MCC Merger hereby agree to the mutual
termination of the Merger Agreement in accordance with Section 9.1(i) of the
Merger Agreement.
1.2 Matrix and Fidelity shall as soon as practicable following the
execution of this Agreement issue the Press Release.
1.3 Matrix on one hand and Fidelity and MCC Merger on the other hand
shall as soon as practicable following the execution of this Agreement execute
mutual releases of the other party and its current, former and future officers,
directors, employees, agents, shareholders, affiliates, predecessors and
successors from any and all legal and equitable claims or causes of action,
whether known or unknown or suspected to exist as of the date of the execution
of such releases with respect to all matters relating to the Merger Agreement or
the termination thereof, except that such releases shall not apply to a breach
of any agreements entered into between the parties and/or their affiliates as
contemplated by this Agreement, or for any liability relating to any securities
class action lawsuit or shareholder derivative lawsuit against Matrix or its
current, former and future officers, directors, employees, agents, shareholders,
affiliates, predecessors and successors concerning the Merger Agreement or the
termination thereof or administrative investigations or proceedings concerning
the proposed merger or its termination,
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provided that the exclusion of such matters from the release shall terminate if
Matrix or its officers, directors, employees, agents, or other persons acting in
concert therewith suggest, sponsor or otherwise encourage such securities class
action lawsuit or shareholder derivative lawsuit.
1.4. Each of the parties hereto agree to take all necessary steps to
further the termination of the Merger Agreement effected by this Agreement,
including without limitation, withdrawing from any proceedings concerning the
Merger Agreement before any regulatory authorities.
ARTICLE II
DEPOSIT AGREEMENT PROVISIONS
2.1 Subject to the receipt of all required approvals (which shall
include, where applicable, statements of non-objection by a regulatory
authority) from applicable regulatory authorities, including, but not limited
to, state departments of insurance in applicable states and the Office of Thrift
Supervision or any successor agency thereto ("OTS"), and compliance with
applicable law and regulations, Fidelity agrees that it shall maintain or cause
to be maintained at the Matrix Capital Bank (the "Bank") in terms of average
daily closing balances, at least $250 million in deposits, subject to a
limitation of 33 percent of the collected balances of Fidelity's underwriters
and underwritten title companies as provided for in Section 2.6 (the "33%
Limitation"), and subject to the phase-in period and limitations described in
Section 2.2 of this Agreement for a period to extend for no longer than five and
one-half years (the "Initial Term") from the date on which the first deposits
are placed at the Bank, subject to extension pursuant to Section 2.6, and
subject to the other terms and conditions set forth in Sections 2.1, 2.2, 2.3,
2.4, 2.5 and 2.6 of this Agreement. Not less than $200 million of such deposits
shall be comprised of title escrows of Fidelity's underwriters and underwritten
title companies (the "Title Deposits") and the remainder may be comprised of
escrows from Section 1031 exchange transactions by Fidelity customers (the "1031
Deposits") except as otherwise provided in Section 2.3 hereof. Together the
Title Deposits, the Section 1031 Deposits and any other deposits by Fidelity are
referred to as the "Deposits."
2.2 Subject in all respects to the satisfaction of the conditions set
forth in Section 2.1 of this Agreement, the minimum amount of $250 million of
deposits referred to in Section 2.1 of this Agreement will be in place by
December 31, 1998, with at least one quarter of the total amount of such
deposits to be placed at the Bank as of the end of the three month-end dates
preceding December 31, 1998. Subject to the satisfaction of the conditions and
limitations set forth in Section 2.1 of this Agreement, at least $62.5 million
of such deposits shall be in place by September 30, 1998, an additional $62.5
million of such deposits shall be in place by October 31, 1998 and an additional
$62.5 million shall be in place by November 30, 1998. The obligation of Fidelity
to make or cause to be made such increasing levels of deposits shall be subject
to the Bank's ability to provide service to Fidelity with respect to the
Deposits comparable to the level
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of service that Fidelity is currently receiving from other depository
institutions. The parties acknowledge that the service obligations set forth on
Appendix B constitute a standard that: (i) equals or exceeds in all material
respects the service levels considered as of the date of this Agreement to be
acceptable in the title and escrow industry, (ii) Fidelity is currently
receiving from other depository institutions, and (iii) if satisfied by the
Bank, would initially result in there being no material deficiencies in the
level of service provided by the Bank. Matrix acknowledges that a high level of
services in regard to the Deposits is critical to Fidelity's business. Matrix
further acknowledges that the level of service required in regard to the
Deposits may change from time to time due to, among other things, competitive
factors and regulatory requirements. Fidelity shall promptly notify the Bank in
writing of any material deficiencies in the level of service provided by the
Bank. The Bank shall seek to correct such deficiencies within 15 days from the
date such notice is given prior to December 31, 1998 and during this period any
obligation by Fidelity to make additional deposits shall be suspended until such
time as Fidelity and the Bank agree that the deficiencies are corrected. In the
event of a disagreement as to whether deficiencies have been corrected, the
parties shall agree on the selection of an independent industry expert, who
shall determine whether the service provided by the Bank is equivalent to or
exceeds in all material respects the service levels considered to be acceptable
in the title and escrow industry. In the event the independent industry expert
determines in a written report provided to both parties that the Bank's service
levels meet these standards, the obligations of Fidelity shall recommence as if
it were the date on which the notice of deficiency had been given. The Bank
shall provide Fidelity with periodic financial statements as such statements
become available to the public and shall, except as prohibited by law or
regulation, promptly notify Fidelity if the Bank becomes subject to the
provisions of OTS' Prompt Corrective Action regulations set forth at 12 C.F.R.
Part 565 as a result of the capital category to which the Bank is assigned.
2.3 The Bank will pay to Rocky Mountain Support Services, Inc. ("Rocky
Mountain"), for services rendered by Rocky Mountain to the Bank pursuant to a
contract to be executed in a form similar to the Data Processing Services
Agreement dated April 27, 1998 between Rocky Mountain and the Bank, a fee not to
exceed the sum of (i) the amount equal to the 90-day U.S. Treasury rate (the
"Base Rate") less 100 basis points on the Title Deposits and (ii) the amount
equal to the 30-day LIBOR rate (the "LIBOR Rate") less 8 basis points on the
1031 Deposits, provided, however, that if the Warrants (as defined in Section
3.3 hereof) shall not have been issued and delivered to Fidelity on or before
the Rate Change Date (as hereinafter defined), the Base Rate shall thereafter,
commencing on the Rate Change Date, be increased by 20 basis points above the
rate that would otherwise prevail. "Rate Change Date" means the earliest to
occur of that date (a) that is ten (10) days after the date on which notice of
all required regulatory approvals (which shall include, where applicable,
statements of non-objection by a regulatory authority) from applicable
regulatory authorities is received, (b) on which notice of any regulatory
disapproval is received, or (c) that is ninety (90) days from the date hereof in
the event no notice of regulatory approval or disapproval is received. In order
to satisfy the provisions of Section 2.1 of this Agreement relating to the
amount of Title Deposits,
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Fidelity may choose in its discretion to substitute 1031 Deposits at the same
rate provided for Title Deposits in this Section 2.3. Fidelity shall pay the
Bank's standard fees, including wire fees other than as provided in Sections 6
and 7 of Appendix B hereto, maintenance fees, and other charges and fees
relating to the Deposits. Such fees and charges shall be netted against the
amounts payable to Rocky Mountain set forth above.
2.4 Upon the occurrence of the following events, the term specified in
Section 2.1 of this Agreement, Fidelity shall, at its sole option, be entitled
to remove the Deposits from the Bank in their entirety, as specified further
herein, and Fidelity's obligations under Sections 2.1, 2.2, 2.5 and 2.6 of this
Agreement shall terminate if:
(1) either Fidelity notifies the Bank in writing of any material
deficiencies in the level of service provided by the Bank and such
deficiencies remain uncured for at least 30 days following notice to
the Bank of such deficiencies. In the event of a disagreement as to
whether such deficiencies exist or have been corrected, the parties
shall agree on the selection of an independent industry expert who
shall determine whether the service provided by the Bank equals or
exceeds in all material respects the service levels considered to be
acceptable in the title and escrow industry. In the event that the
independent industry expert determines in a written report provided to
both the Bank and Fidelity that service levels do not meet these
standards, the Bank shall have 30 days to correct the deficiencies
identified in the written report. If following that time the
deficiencies are not corrected in the written determination of the
independent industry expert, which shall be required to make such
written determination within 15 days after the close of such 30-day
period, Fidelity shall be entitled to withdraw its Deposits in total
over a 120 day period beginning on the day after the second
determination of the independent industry expert has been received by
Fidelity and the Bank ("Deposit Determination Day"). Fidelity shall not
withdraw an amount which exceeds more than 30 percent of its total
Deposits as of the Deposit Determination Day in any 30 day period
commencing on the Deposit Determination Day; or in the event the
service levels set forth in Appendix B shall cease to equal in all
material respects the service levels considered acceptable in the title
and escrow industry, and Fidelity so notifies Matrix, then Matrix shall
have 30 days to upgrade its service level to the level considered
acceptable in the title and escrow industry. If within 15 days of the
close of such 30-day period the service levels are not improved so as
to equal or exceed the level considered acceptable in the title and
escrow industry, Fidelity shall have the right to withdraw its Deposits
on the same basis as provided in this Section 2.4(1); or
(2) the Bank shall report in a filing with the OTS that it does not
meet any of the minimum regulatory capital requirements applicable to
it, or the Bank becomes subject to the provisions of OTS' Prompt
Corrective Action regulations set forth at 12 C.F.R. Part 565 as a
result of the capital category to which the Bank is assigned.
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2.5 If Fidelity fails to maintain or cause to be maintained the minimum
amount of deposits ("Specified Deposit Level") required under Sections 2.1 and
2.2 of this Agreement (a "Shortfall"), as determined on an average level on a
quarterly basis, Fidelity shall pay Matrix, as liquidated damages, an amount in
cash equal to the annualized spread of 200 basis points times the Shortfall for
each such quarter (based on daily averages for the quarter); such payment shall
be made by Fidelity within 10 days following the date on which Matrix notifies
Fidelity in writing of such deficiency; provided, however, Fidelity shall not be
required to make such payment if Fidelity agrees in writing within 10 days of
receipt of the deficiency notice to maintain, and then maintains, Deposits in an
amount sufficiently in excess of the Specified Deposit Level for the quarter
following a quarter in which a Shortfall has occurred so as to equal or exceed
the Shortfall for the preceding quarter, or Fidelity provides evidence to Matrix
that such Shortfall results from the 33% Limitation.
2.6 Notwithstanding any contrary provision of this Agreement, Fidelity
shall at no time be obligated to maintain or to cause to be maintained Title
Deposits at the Bank in excess of 33% of Title Deposits (the "33% Limitation").
At all times during which the 33% Limitation serves to limit the Title Deposits
at the Bank, the Specified Deposit Level shall be not less than the sum of (i)
33% of Title Deposits and (ii) $50 million of 1031 Deposits. If, for any
measured quarter, the 33% Limitation causes a Shortfall, the provisions of
Section 2.5 shall not apply, but instead the Initial Term of this Agreement will
be extended (the "Additional Term") in accordance with the provisions of this
Section 2.6. The Additional Term shall be equal to that number of quarters,
rounded to the next whole number, which is equal to the Aggregate 33% Limitation
Shortfalls divided by $250 million. The Aggregate 33% Limitation Shortfalls
means the aggregate amount of all Shortfalls during the Initial Term caused by
the 33% Limitation. During any Additional Term, the Deposits shall be maintained
at the minimum amount required by Section 2.1, taking into consideration the 33%
Limitation.
ARTICLE III
OTHER AGREEMENTS
3.1 Subject to the receipt of all required approvals (which shall
include, where applicable, statements of non-objection by a regulatory
authority) from applicable regulatory authorities, including, but not limited
to, state departments of insurance in applicable states and the OTS, and
compliance with applicable law and regulations, United Financial, an affiliate
of Matrix will market Fidelity products and services through its network on
terms and conditions and for a period of time satisfactory to both parties.
3.2 Matrix and Fidelity will in good faith mutually investigate other
strategic alliance opportunities.
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3.3 Subject to the receipt of all approvals (which shall include, where
applicable, statements of non-objection by a regulatory authority) from
applicable regulatory authorities, including the OTS, and compliance with
applicable law and regulations, Matrix agrees to issue warrants exerciseable for
the purchase of 150,000 shares of common stock, par value $.01 per share of
Matrix (the "Warrants") at a price of 115 percent of the average of the closing
bid and asked prices of Matrix's common stock on NASDAQ on the last trading day
prior to the execution of this Agreement, such Warrants to be transferable and
to be subject to customary terms and conditions, including Fidelity's right to
one demand registration on terms customary in such registration and piggy-back
registration rights provisions. With respect to the Warrants, Fidelity shall not
be required to take any action that would cause Fidelity to be required to file
an application with the OTS or any other regulatory agency to acquire control of
Matrix or to rebut a presumption of control of Matrix. The issuance of the
Warrants shall be subject to the execution of a definitive agreement. The
parties shall negotiate in good faith to reach mutually agreeable definitive
agreements with respect to the Warrants. The Warrants shall have a vesting
schedule granting Fidelity the right to exercise the Warrants on or after the
date of this Agreement, provided however, that if on any date (the "Alternate
Date") prior to the fourth anniversary of the date of this Agreement, Fidelity
fails in accordance with the terms of this Agreement to maintain or cause to be
maintained the Deposits or ceases to maintain or cause to be maintained the
Deposits either because all required approvals (which shall include, where
applicable, statements of non-objection by a regulatory authority) from
applicable regulatory authorities have not been received or pursuant to Section
2.4 of this Agreement, then the last date on which the Warrants may be exercised
will be the sixtieth day after the Alternative Date, after which date the
Warrants shall be automatically canceled.
ARTICLE IV
OTHER PROVISIONS
4.1 No provision of this Agreement shall require any party to this
Agreement to take any action that would cause the party or any of its officers,
directors, or employees to be subject to a claim that such party or such other
persons are in violation of any applicable law, regulation or order. The parties
agree that no provision of this Agreement shall require Fidelity to take any
action nor shall any officer, director or employee have any obligation to change
in any way any ownership interests with respect to Fidelity held by such
officer, director or employee or any other party that is attributed to such
officer, director or employee or to change in any respect such officer's,
director's or employee's roles in regard to the board of directors or management
of Fidelity, or to seek a modification or termination of any order applicable to
such party, officer, director or employee. The parties acknowledge that they
will mutually consult with the OTS or any other applicable regulatory agency
with respect to the relationships identified in Articles II or III with Matrix
or any entity that is wholly or partially owned by Matrix. The parties to this
Agreement agree that if Fidelity is unable to engage in any of the relationships
or
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transactions identified in Articles II or III due to such consultations with
regulatory authorities, including the OTS, or if the parties are unable to
obtain all required approvals (which shall include, where applicable, statements
of non-objection by a regulatory authority) from applicable regulatory
authorities, including, but not limited to, state departments of insurance in
applicable states and the OTS, or to conduct such relationships or transactions,
or if the parties are unable to conduct such relationships or transactions in
compliance with applicable law and regulations, none of the parties to this
Agreement shall be deemed on the basis of any of the foregoing to be in breach
of their obligations under this Agreement.
4.2. Subject to Sections 3.3 and 4.1 of this Agreement, if this
Agreement, any agreement contemplated by this Agreement, or the consummation of
any transaction contemplated by this Agreement or such other agreement requires
the approval (which shall include, where applicable, statements of non-objection
by a regulatory authority) of any regulatory authorities, including, but not
limited to, state departments of insurance in applicable states and the OTS, the
parties to this Agreement shall cooperate with each other and with such
regulatory authorities in good faith and shall use commercially reasonable
efforts to obtain any and all such approvals promptly after execution of this
Agreement.
4.3 Each party hereby represents and warrants to the other parties as
follows:
(1) this Agreement has been duly executed on behalf of such party; all
corporate action on the part of such party has been taken in order to
duly execute, and deliver this Agreement and this Agreement is
enforceable against such party in accordance with its terms;
(2) other than any regulatory approvals (which shall include, where
applicable, statements of non-objection by a regulatory authority) no
consents or approval of any person or entity are necessary in
connection with the execution, delivery and performance of this
Agreement by such party and consummation by such party of the
transactions contemplated by this Agreement; and
(3) to the knowledge of such party, no regulatory approvals other than
approvals which may be required from the OTS (which shall include,
where applicable, statements of non-objection by a regulatory
authority) are necessary in connection with the execution and delivery
of this Agreement by such party and the maintaining of a depository
relationship.
4.4 This Agreement shall be construed in accordance with and governed
by the internal laws of the State of Delaware, without giving effect to the
principles of conflicts of laws thereof.
4.5 All notices, requests and other communications to any party
hereunder shall be in writing (including telecopy or similar writing) and shall
be given,
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if to Fidelity or MCC Merger, to:
Fidelity National Financial, Inc.
3916 State Street, Suite 300
Santa Barbara, California 93105
Telecopy: (805) 898-7191
Attn: Frank P. Willey, President
with a copy to:
Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, California 92660-6441
Telecopy: (714) 725-4100
Attn: C. Craig Carlson, Esq.
if to Matrix, to:
Matrix Capital Corporation
1380 Lawrence Street, Suite 1410
Denver, Colorado 80204
Telecopy: (303) 390-0952
Attn: Guy A. Gibson, President
with a copy to:
Jenkens & Gilchrist, P.C.
1445 Ross, Suite 3200
Dallas, Texas 75202
Telecopy: (214) 955-4300
Attn: Ronald J. Frappier, Esq.
4.6 All costs and expenses incurred in connection with this Agreement
shall be paid by the party incurring such cost or expense.
4.7 Any provision of this Agreement may be amended or waived if such
amendment or waiver is in writing and signed, in the case of an amendment by
Fidelity, MCC Merger and Matrix or in the case of a waiver, by the party against
whom the waiver is to be effective. No failure or delay by any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof of any other right,
power or privilege.
4.8 The provisions of this Agreement shall be binding and shall inure
to the benefit of the parties hereto and their respective successors and
assigns. Except as
8
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expressly set forth herein nothing in this Agreement, express or implied, is
intended to or shall confer upon any person not a party hereto any right,
benefit or remedy of any nature whatsoever under or by reason of this Agreement,
including to confer third party beneficiary rights.
4.9 If any term, provision, or restriction of this Agreement is held by
a court of competent jurisdiction to be invalid, void or unenforceable, the
remainder of the terms, provisions and restrictions of the Agreement shall
remain in full force and effect and shall in no way be impaired or invalidated,
and the parties shall negotiate in good faith to modify this Agreement to
preserve each party's anticipated benefits under the Agreement.
4.10 This Agreement may be signed in any number of counterparts, each
of which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instruments. The Agreement shall become effective
when each party hereto shall have received counterparts hereto signed by all of
the other parties hereto. The headings contained in this Agreement are for
reference purposes only and shall not in any way alter the meaning or
interpretation of this Agreement.
4.11 All disputes between the parties hereto relating to this Agreement
shall be determined solely and exclusively by arbitration in accordance with the
rules then in effect of the American Arbitration Association pertaining to
commercial arbitrations, or any successors thereto ("AAA") in Phoenix, Arizona,
unless the parties otherwise agree in writing. The parties shall jointly select
an arbitrator. In the event that the parties fail to agree upon an arbitrator
within ten (10) days, then each party shall select an arbitrator and such
arbitrators shall select a third arbitrator to serve as the sole arbitrator;
provided, that if either party, in such event, fails to select an arbitrator
within seven days, such arbitrator shall be selected by the AAA upon application
of either party. Judgment upon the award of the agreed upon arbitrator or the so
chosen third arbitrator, as the case may be, shall be binding on the parties and
shall be entered by any court of competent jurisdiction.
4.12 Each party shall treat this Agreement as confidential proprietary
information and shall not make this Agreement available to third parties or file
it separately or as part of any document that is or may be made available to the
public unless required by law, in which instance such party shall use its best
efforts to obtain confidential treatment for this Agreement.
4.13 This Agreement constitutes the entire agreement of the parties and
supersedes all prior agreements and understandings, written or oral between the
parties hereto with respect to the subject matter hereof.
The parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the day and year first above written.
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FIDELITY NATIONAL FINANCIAL, INC. MATRIX CAPITAL CORPORATION
By: /s/ FRANK P. WILLEY By: /s/ GUY A. GIBSON
------------------------------- ------------------------------
Name: Frank P. Willey Name: Guy A. Gibson
Title: President Title: President
MCC MERGER, INC.
By: /s/ FRANK P. WILLEY
-------------------------------
Name: Frank P. Willey
Title: President
10
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EXHIBIT 99.2
Monday August 31, 8:54 am Eastern Time
Company Press Release
SOURCE: Matrix Capital Corporation
MATRIX CAPITAL AND FIDELITY NATIONAL ANNOUNCE INTENTION TO ENTER INTO DEPOSIT
AGREEMENT AND TERMINATION OF AGREEMENT TO MERGE
IRVINE, Calif., and DENVER, Aug. 31 /PRNewswire/ -- Fidelity National Financial,
Inc. (NYSE: FNF - news), a leading provider of title insurance and real estate
services, and Matrix Capital Corporation (Nasdaq: MTXC - news), a unitary thrift
holding company that, through its subsidiaries, focuses on traditional banking,
mortgage banking and th e administration of self-directed trust accounts, today
announced that they have mutually agreed to terminate the merger agreement
pursuant to which Matrix was to merge with a newly formed subsidiary of
Fidelity. As indicated previously, the proposed merger was subject to a number
of conditions, including approval of Fidelity as a unitary thrift holding
company. The companies determined that the requirements for regulatory approval
for the merger were burdensome and raised serious questions as to the feasi
bility of the merger and the likelihood of obtaining the requisite approval.
Fidelity and Matrix have today entered into a funds deposit agreement, subject
to regulatory approvals, pursuant to which Fidelity will maintain at least $250
million, subject to certain conditions, in deposits at Matrix's depository
institution subsidiary Matrix Capital Bank. Assuming regulatory approval is
obtained in sufficient time, and certain other conditions are met, the full $250
million in deposits could be in place at Matrix Capital Bank by December 31,
1998. Matrix has also agreed, subject to certain regulatory conditions and
approvals and the negotiation and execution of a definitive agreement, to issue
warrants to Fidelity to purchase up to 150,000 shares of Matrix's common stock
at a price of 115 percent of the average of the closing bid and asked prices of
Matrix common stock on NASDAQ on August 27, 1998.
Guy A. Gibson, President and CEO of Matrix, stated, "We are excited that
Fidelity has chosen to work with us and provide a significant enhancement to our
deposit base. We expect to deploy such low cost deposits to continue our
strategy of investing in single family residential mortgages and servicing
rights within our identified niches."
Frank P. Willey, President of Fidelity, added, "We are disappointed that the
proposed merger will not be consummated, however, because we believe in Matrix
and its business strategy, we are pleased to explore strategic opportunities to
work together in the future and to take advantage of our respective strengths.
We remain committed, again subject to regulatory approval, to the prospect of
selling our products and services to Matrix's network of customers to the mutual
benefit of both companies."
Certain statements in this press release that are not historical facts,
including but not limited to, statements that can be identified by the use of
forward-looking terminology such as "may,"
<PAGE> 2
"will," "expect," "anticipate," "estimate" or "continue" or the negative thereof
or other variations thereon or comparable terminology, are forward-looking
statements, within the meaning of the Private Securities Litigation Reform Act
of 1995, and involve a number of risks and uncertainties. The actual results of
future events described in such forward-looking statements in this press release
could differ materially from those stated in such statements. Among the factors
that could cause actual results to differ materially are: interest rate
fluctuations, level of delinquencies, defaults and prepayments, general economic
conditions, competition, government regulation and possible future litigation,
as well as the risks and uncertainties discussed in Matrix's current report on
Form 8-K, filed March 25, 1 998, and the uncertainties set forth in Matrix's
periodic reports, filings and other public statements from time to time.
<PAGE> 1
EXHIBIT 99.3
Monday August 24, 9:01 am Eastern Time
Company Press Release
SOURCE: Fidelity National Financial, Inc.
Fidelity National Financial, Inc. and Alamo Title Holding Company Announce
Successful Merger
IRVINE, Calif., Aug. 24 /PRNewswire/ -- Fidelity National Financial, Inc. (NYSE:
FNF - news) announced that Alamo Title and Fidelity have successfully completed
the merger initially announced on May 7, 1998.
Pursuant to the merger, Fidelity will issue 2.1 million shares for 100% of Alamo
Title's shares. The merger results in Fidelity becoming the second largest
underwriter in Texas based on combined company premiums written in 1997 of $128
million, which equals 18.6% of the overall Texas market. Alamo Title,
established in 1922, in San Antonio, Texas, is the city's largest title company.
Patrick F. Stone, Chief Operating Officer of Fidelity, said, "We are very
excited to expand our direct and agency operations in the state of Texas as a
result of this acquisition. Alamo Title will afford tremendous opportunities to
sell our various real estate products and services in the second-largest title
insurance market in the U.S. Our two underwriting companies will maintain
individual direct and agency operations in Texas and New Mexico in order to
maximize market share and provide the highest level of service to its customers
and agents. Fidelity will continue to utilize the Alamo Title name in selected
operations, in Austin, Houston, and Dallas."
Darryl J. Tyson will manage the five-state region comprising Texas, Oklahoma,
New Mexico, Louisiana, and Georgia for Fidelity and Alamo Title from a regional
headquarters in San Antonio, Texas. Alex H. Halff, formerly Senior Chairman of
the Board of Alamo Title Holding Company, became Chairman Emeritus of Alamo
Title. Mr. Halff and Donald Still will remain actively involved in the affairs
of Alamo Title.
Headquartered in Irvine, California, Fidelity is a specialty finance company
engaged in doing business in 49 states, the District of Columbia, Puerto Rico,
the Bahamas, and the U.S. Virgin Islands. Fidelity, through its principal
subsidiaries, performs specialty finance functions such as originating, funding,
purchasing, selling, securitizing and servicing equipment leases for a broad
range of businesses. Fidelity is also engaged in the business of issuing title
insurance and performs other title-related services including escrow, collection
and trust activities, real estate information and tax reporting services,
trustee sales guarantees, foreclosure publishing and posting services, exchange
intermediary services, credit reviews, flood certifications, appraisals and
courier services.
Safe Harbor Statements under the Private Securities Litigation Reform Act of
1995: Statements which are not historical facts contained in this release are
forward-looking statements that involve risks and uncertainties, and results
could vary materially from the descriptions contained herein and other risks as
may be detailed in the Company's Securities and Exchange Commission filings.
