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EXHIBIT 10.20
XXXXXXXX.XXX INCORPORATED
SUPPORT AGREEMENT
This Support Agreement (this "Agreement") is entered into as of October
20, 1999, by and between Xxxxxxxx.xxx Incorporated, a New York corporation
("Parent"), and the Xxxxxxx X. X'Xxxxx Stock Trust ("Seller").
RECITALS
A. Concurrently with the execution and delivery of this Agreement,
Parent, XxxxxxxXxxx.xxx Incorporated, a Delaware corporation and a wholly-owned
subsidiary of Parent ("Merger Sub"), Student Success, Inc., a Wisconsin
corporation ("Company"), Xxxxxxxx X. Xxxxx, Xxxxxxx X. X'Xxxxx and the Xxxxxxx
X. X'Xxxxx Stock Trust are entering into an Agreement and Plan of Merger of even
date herewith ("Merger Agreement"), pursuant to which Parent agrees to acquire
all outstanding shares of common stock, without par value, of the Company
("Shares"), pursuant to a statutory merger of Company with and into the Merger
Sub (the "Merger"). Capitalized terms used but not defined herein shall have the
meanings set forth in the Merger Agreement.
B. As of the date hereof, Seller beneficially owns directly 150 Shares
("Owned Shares").
Now, therefore, in consideration of the covenants, promises and
representations herein and in the Merger Agreement, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:
1. AGREEMENT TO VOTE.
1.1 Voting. Seller hereby agrees that, during the time this
Agreement is in effect, at any meeting of the shareholders of the Company,
however called, or any action by written consent of the shareholders of the
Company, Seller shall (a) vote the Owned Shares in favor of the Merger; (b) vote
the owned Shares against any action or agreement that would result in a breach
of any covenant, representation, or warranty or any other obligation or
agreement of the Company under the Merger Agreement; and (c) vote the Owned
Shares against any action or agreement (other than the Merger Agreement or the
transactions contemplated thereby) that would impede, interfere with, delay,
postpone or attempt to discourage the Merger, including, but not limited to: (i)
any extraordinary corporation transaction, such as a merger, consolidation or
other business combination involving the Company or any of its subsidiaries;
(ii) a sale or transfer of a material amount of assets of the Company or any of
its subsidiaries or a reorganization, recapitalization or liquidation of the
Company and its subsidiaries; (iii) any
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change in the management or Board of Directors of the Company, except as
otherwise agreed to in writing by Parent; (iv) any material change in the
present capitalization or dividend policy of the Company; or (v) any other
material change in the Company's corporate structure or business.
1.2 Grant of Irrevocable Proxy; Appointment of Proxy.
(a) Seller hereby irrevocably grants to, and appoints
Xxxxxxx X. Xxxxxx and Xxxxx X. High, or either of them, in their respective
capacities as officers of the Parent, and any individual who shall hereafter
succeed to any such office of Parent, and each of them individually, Seller's
proxy and attorney-in-fact (with full power of substitution), for and in the
name, place and stead of Seller, to vote the Owned Shares in favor of the Merger
and otherwise as contemplated by Section 1.1
(b) Seller represents that any proxies heretofore
given in respect of the Owned Shares are not irrevocable, and that any such
proxies are hereby revoked.
(c) Seller understands and acknowledges that Parent
is entering into the Merger Agreement in reliance, among other things, upon
Seller's execution and delivery of this Agreement. Seller hereby affirms that
the irrevocable proxy set forth in this Section 1.2 is given in connections with
the execution of the Merger Agreement, and that such irrevocable proxy is given
to secure the performance of the duties of the Seller under this Agreement.
Seller hereby further affirms that the irrevocable proxy is coupled with an
interest and may under no circumstances be revoked. Seller hereby ratifies and
confirms all that such proxies and attorneys-in-fact may lawfully do or cause to
be done by virtue hereof. Such irrevocable proxy is executed and intended to be
irrevocable in accordance with the applicable provisions of the Wisconsin
Business Corporation Law.
1.3 No Inconsistent Arrangements. Seller hereby covenants and
agrees that, except as contemplated by this Agreement and the Merger Agreement,
he shall not:
(a) transfer (which term shall include, without
limitation, any sale, gift, pledge or other disposition), or consent to any
transfer of, any or all of the Owned Shares or any interest therein; provided,
however, that Seller may transfer (i) the Owned Shares by will or intestacy, and
(ii) up to ten percent (10%) of the Owned Shares as a bona fide gift or gifts,
provided that prior to any such permitted transfer, each transferee shall agree
in writing (in a form satisfactory to the Parent) that such transferee will
receive and hold such Owned Shares subject to the provisions of this Agreement;
(b) enter into any contract, option or other
agreement or understanding with respect to any transfer of any or all of the
Owned Shares or any interest therein;
(c) grant any proxy, power-of-attorney or other
authorization in or with respect to any or all of the Owned Shares;
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(d) deposit the Owned Shares into a voting trust or
enter into a voting agreement or arrangement with respect to the Owned Shares;
or
(e) take any other action that would make any
representation or warranty of Seller hereunder untrue or incorrect.
1.4 Waiver of Appraisal Rights. Seller hereby waives any
rights of appraisal or rights to dissent from the Merger that he may have under
applicable law.
2. EXPIRATION. This Agreement and the proxy granted pursuant to Section
1 hereof shall terminate on the termination of the Merger Agreement in
accordance with its terms.
3. REPRESENTATIONS AND WARRANTIES. Seller hereby represents and
warrants to Parent as follows:
3.1 Title. Seller has good and valid title to the Owned
Shares, free and clear of any lien, pledge, charge, encumbrance or claim of
whatever nature and, upon consummation of the Merger, Seller will deliver good
and valid title to the Owned Shares, free and clear of any lien, charge,
encumbrance or claim of whatever nature.
3.2 Ownership of Shares. On the date hereof, the Owned Shares
are owned of record or beneficially by Seller and, on the date hereof, the Owned
Shares constitute all of the Shares owned of record or beneficially by Seller.
Seller has sole voting power and sole power of disposition with respect to all
of the Owned Shares, with no restrictions, subject to applicable federal
securities laws, on Seller's rights of disposition pertaining thereto.
3.3 Power; Binding Agreement. Seller has the legal capacity,
power and authority to enter into and perform all of his obligations under this
Agreement. The execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby have been duly authorized by all necessary
trust action on the part of the Seller. The execution, delivery and performance
of this Agreement by Seller will not violate any other agreement to which Seller
is a party including, without limitation, any voting agreement, stockholders'
agreement or voting trust. This Agreement has been duly and validly executed and
delivered by Seller and constitutes a valid and binding agreement of Seller,
enforceable against Seller in accordance with its terms.
3.4 No Conflicts. No authorization, consent or approval of, or
filing with, any court or any public body or authority is necessary for the
consummation by Seller of the transactions contemplated by this Agreement. The
execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby will not:
(a) constitute a material breach, violation or
default (or any event which, with notice or lapse of time or both, would
constitute a default) under any material note,
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bond, mortgage, indenture, deed of trust, license, lease, agreement or other
instrument to which Seller is a party or by which his properties or assets are
bound; or
(b) result in the termination of, or accelerate the
performance required by, or result in a right of termination or acceleration
under any material note, bond, mortgage, indenture, deed of trust, license,
lease, agreement or other instrument to which Seller is a party or by which his
properties or assets are bound; or
(c) result in the creation of any lien, encumbrance,
pledge, charge or claim upon any of the properties or assets of Seller under any
material note, bond, mortgage, indenture, deed of trust, license, lease,
agreement or other instrument to which Seller is a party or by which his
properties or assets are bound.
4. ADDITIONAL SHARES. Seller hereby agrees, while this Agreement is in
effect, to promptly notify Parent of the number of Shares acquired by the Seller
after the date hereof.
5. FURTHER ASSURANCES. From time to time, at Parent's request and
without further consideration, Seller shall execute and deliver such additional
documents and take all such further action as may be reasonably necessary or
desirable to consummate and make effective the transactions contemplated by
Section 1 of this Agreement.
6. MISCELLANEOUS.
6.1 Non-Survival. The representations and warranties made
herein shall terminate upon Seller's sale of the Owned Shares to Parent in the
Merger, other than Seller's representation and warranty in Section 3.1, which
shall survive the sale of the Owned Shares and the termination of this Agreement
following such sale.
6.2 Entire Agreement; Assignment. This Agreement (a)
constitutes the entire agreement between the parties with respect to the subject
matter hereof and supersedes all other prior agreements and understandings, both
written and oral, between the parties with respect to the subject matter hereof
and (b) shall not be assigned by operation of law or otherwise, provided that
Parent may assign its rights and obligations hereunder to any direct or indirect
wholly-owned subsidiary of Parent, but no such assignment shall relieve Parent
of its obligations hereunder if such assignee does not perform such obligations.
6.3 Amendments. This Agreement may not be modified, amended,
altered or supplemented, except upon the execution and delivery of a written
agreement executed by the parties hereto.
6.4 Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given by hand delivery
or telecopy or by other courier service, such as Federal Express, providing
proof of delivery. All
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communications hereunder shall be delivered to the respective parties at the
following addresses:
if to Seller:
The Xxxxxxx X. X'Xxxxx Trust
c/o Student Success, Inc.
000 Xxxxx Xxxxxxx
Xxxxx 000
Xxxxxxxxxx, XX 00000-0000
with a copy to:
Xxxxxxx, Muething & Xxxxxxx, P.L.L.
1400 Provident Tower
Xxx Xxxx Xxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
Attn: Xxxx X. Xxxxxxxx, Esq.
if to Parent:
Xxxxxxxx.xxx Incorporated
00 Xxxxxxxxxx Xxx
Xxxxxxx, XX 00000
Attn: Xxxxxxx X. Xxxxxx, Chairman of the Board of Directors
with a copy to:
Xxxxx, Xxxx & Xxxxx LLP
Xxx Xxxx Xxxxxx Xxxxxx
Xxxxxx, XX 00000
Attn: Xxxxxx X. Xxxxxxxx, Esq.
or to such other address as the person to whom notice is given may have
previously furnished to the others in writing in the manner set forth above.
6.5 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, regardless of
the laws that might otherwise govern under applicable principles of conflicts of
laws thereof.
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6.6 Specific Performance. Seller recognizes and acknowledges
that a breach by him of any covenants, promises or agreements contained in this
Agreement will cause the Parent to sustain damages for which it would not have
an adequate remedy at law for money damages, and therefore Seller agrees that in
the event of any such breach Parent shall be entitled to the remedy of specific
performance of such covenants and agreements and injunctive and other equitable
relief in addition to any other remedy to which it may be entitled, at law or in
equity.
6.7 Counterparts. This Agreement may be executed in
counterparts, each of which shall be deemed to be an original, but both of which
shall constitute one and the same Agreement.
6.8 Descriptive Headings. The descriptive headings used herein
are inserted for convenience of reference only and are not intended to be part
of or to affect the meaning or interpretation of this Agreement.
6.9 Severability. In the event that any part of this Agreement
is declared by any court or other judicial or administrative body to be null,
void or unenforceable, said provision shall survive to the extent it is not so
declared, and all of the other provisions of this Agreement shall remain in full
force and effect.
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IN WITNESS WHEREOF, the parties hereto have caused this Support
Agreement to be duly executed as an instrument under seal as of the date first
written above.
XXXXXXXX.XXX INCORPORATED
By: /s/ Xxxxxxx X. Xxxxxx
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Name:
Title:
XXXXXXX X. X'XXXXX STOCK TRUST
/s/ Xxxxxxx X. Xxxxxxx, Xx.
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Xxxxxxx X. Xxxxxxx, Xx.
Trustee
