EXTENSION AGREEMENT
BY AND AMONG
KONINKLIJKE AHOLD N.V.,
AHOLD ACQUISITION, INC.
AND
THE STOCKHOLDERS LISTED ON EXHIBIT 1 HERETO
Dated as of May 19, 1999
EXTENSION AGREEMENT
EXTENSION AGREEMENT (this "Agreement") dated as of May 19, 1999, among
KONINKLIJKE AHOLD N.V., a company organized under the laws of The Netherlands
("Parent"), AHOLD ACQUISITION, INC., a company organized under the laws of
Delaware and an indirect wholly owned subsidiary of Parent ("Sub") and the other
parties signatory hereto (individually, a "Stockholder" and, collectively, the
"Stockholders"). Terms used but not otherwise defined herein shall have the
meanings ascribed to them in the Merger Agreement (as defined below).
W I T N E S S E T H :
WHEREAS, Parent, Sub and SMG-II Holdings Corporation, a company
organized under the laws of Delaware (the "Company"), entered into an Agreement
and Plan of Merger, dated as of March 9, 1999 (the "Merger Agreement"), pursuant
to which the parties thereto agreed to merge Sub with and into the Company (the
"Merger");
WHEREAS, as an inducement and a condition to entering into the Merger
Agreement, the Stockholders entered into a Stockholders Agreement, dated as of
March 9, 1999 (the "Stockholders Agreement") with Parent and Sub;
WHEREAS, there is now pending an action in the Court of Chancery of
the State of Delaware, styled Xxxxxx Xxxxxxx v. Supermarkets General Holdings
Corporation, et al., C.A. No. 17047 (the "Action");
WHEREAS, the Action was filed by plaintiff ("Plaintiff") as a putative
class action against Supermarkets General Holdings Corporation, a company
organized under the laws of Delaware ("SMGH"), the Company, Sub, and certain
individual defendants (the "Director Defendants"), seeking, inter alia,
injunctive and declaratory relief and/or monetary relief with respect to the
Tender Offer;
WHEREAS, SMGH, the Company, Sub, the Director Defendants and Plaintiff
have agreed to settle the Lawsuit pursuant to the Memorandum of Understanding,
dated May 19, 1999, and related settlement agreements (the "Settlement");
NOW, THEREFORE, in consideration of the foregoing and the mutual
premises, representations, warranties, covenants and agreements contained
herein, the parties hereto, intending to be legally bound, hereby agree as
follows:
1. Extension of Termination Date. Parent, Sub and the Stockholders
hereby agree that notwithstanding clause (ii) of Section 9 of the Stockholders
Agreement, in the event that either Sub or the Company elect to extend the
termination date set forth in Section 8.1(c) of the Merger Agreement pursuant to
the Settlement (the "Extended Merger Termination Date"), the date set forth in
clause (ii) of Section 9 of the Stockholders Agreement shall be deemed to be
extended to a date that is two (2) months after the Extended Merger Termination
Date.
2. Miscellaneous.
(a) Further Assurances. From time to time, at the other party's
request and without further consideration, each party hereto shall execute and
deliver such additional documents and take all such further lawful action as may
be necessary or desirable to consummate and make effective, in the most
expeditious manner practicable, the transactions contemplated by this Agreement.
(b) No Third Party Beneficiaries. This Agreement is not intended to be
for the benefit of, and shall not be enforceable by, any person or entity who or
which is not a party hereto.
(c) Counterparts. This Agreement may be executed in two or more
counterparts, and by the different parties hereto in separate counterparts, each
of which when executed shall be deemed to be an original but all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Agreement by telecopier shall be
effective as delivery of a manually executed counterpart of this Agreement.
IN WITNESS WHEREOF, Parent, Sub and each Stockholder have caused this
Agreement to be duly executed as of the day and year first above written.
KONINKLIJKE AHOLD N.V.
By: /s/ C.H. van der Hoeven
-------------------------------------
Name: C.H. van der Hoeven
Title: President
AHOLD ACQUISITION, INC.
By: /s/ Xxxxxx X. Xxxxx
-------------------------------------
Name: Xxxxxx X. Xxxxx
Title: President
XXXXXXX XXXXX CAPITAL APPRECIATION
PARTNERSHIP NO. IX, L.P.
By XXXXXXX XXXXX LBO PARTNERS
NO. II, L.P., as General Partner
By XXXXXXX XXXXX CAPITAL PARTNERS,
INC., as General Partner
By /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
ML OFFSHORE LBO PARTNERSHIP NO. IX
By XXXXXXX XXXXX LBO PARTNERS NO. II,
L.P., as Investment General Partner
By XXXXXXX XXXXX CAPITAL PARTNERS,
INC., as General Partner
By /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
ML EMPLOYEES LBO PARTNERSHIP
NO. I, L.P.
By ML EMPLOYEES LBO MANAGERS, INC.,
as General Partner
By /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
ML IBK POSITIONS, INC.
By /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
MERCHANT BANKING L.P. NO. 1
By XXXXXXX XXXXX MBP INC., as
General Partner
By /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
XXXXXXX XXXXX KECALP L.P. 1987
By KECALP INC., as General Partner
By /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
XXXXXXX XXXXX CAPITAL APPRECIATION
PARTNERSHIP NO. B-X, L.P.
By XXXXXXX XXXXX LBO PARTNERS NO. B-II,
L.P., as General Partner
By XXXXXXX XXXXX CAPITAL PARTNERS,
INC., as General Partner
By /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
ML OFFSHORE LBO PARTNERSHIP NO. B-X
By XXXXXXX XXXXX LBO PARTNERS NO. B-II,
L.P., as Investment General Partner
By XXXXXXX XXXXX CAPITAL PARTNERS,
INC., as General Partner
By /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
MLCP ASSOCIATES L.P. NO. II
By XXXXXXX XXXXX CAPITAL PARTNERS,
INC., as General Partner
By /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
MERCHANT BANKING L.P. NO. IV
By XXXXXXX XXXXX MBP, INC., as General
Partner
By /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
XXXXXXX XXXXX KECALP L.P. 1989
By KECALP INC., as General Partner
By /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
XXXXXXX XXXXX KECALP L.P. 1991
By KECALP INC., as General Partner
By /s/ Xxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
THE EQUITABLE LIFE ASSURANCE SOCIETY OF
THE UNITED STATES
By /s/ U. Xxxxx X. Xxxxxxxx
-------------------------------------
Name: U. Xxxxx X. Xxxxxxxx
Title: Investment Officer
EQUITABLE DEAL FLOW FUND, L.P.
By EQUITABLE MANAGED ASSETS, L.P., as
General Partner
By THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES, as General
Partner
By /s/ U. Xxxxx X. Xxxxxxxx
-------------------------------------
Name: U. Xxxxx X. Xxxxxxxx
Title: Investment Officer
XXXXX X. XXXXXX, INDIVIDUAL STOCKHOLDER
/s/ Xxxxx X. Xxxxxx
---------------------------------------
Xxxxx X. Xxxxxx
Name of Stockholder Class of Company Stock Stockholder
--------------------------------------------------------------------------------
Xxxxxxx Xxxxx Capital Appreciation
Partnership No. IX, L.P. Class A Common Stock 488,704.8
--------------------------------------------------------------------------------
ML Offshore LBO Partnership No. IX Class A Common Stock 12,424.7
--------------------------------------------------------------------------------
ML Employees LBO Partnership No. I,
L.P. Class A Common Stock 12,148.6
--------------------------------------------------------------------------------
ML IBK Positions, Inc. Class A Common Stock 21,258.9
--------------------------------------------------------------------------------
Merchant Banking L.P. No. 1 Class A Common Stock 8,119
--------------------------------------------------------------------------------
Xxxxxxx Xxxxx KECALP L.P. 1987 Class A Common Stock 7,344
--------------------------------------------------------------------------------
The Equitable Life Assurance
Society of the United States Class B Common Stock 150,000
--------------------------------------------------------------------------------
Equitable Deal Flow Fund, L.P. Class B Common Stock 150,000
--------------------------------------------------------------------------------
Xxxxxxx Xxxxx Capital Appreciation
Partnership No. B-X, L.P. Series A Preferred Stock 133,043
--------------------------------------------------------------------------------
ML Offshore LBO Partnership No. B-X Series A Preferred Stock 40,950
--------------------------------------------------------------------------------
MLCP Associates L.P. No. II Series A Preferred Stock 1,740
--------------------------------------------------------------------------------
ML IBK Positions, Inc. Series A Preferred Stock 46,344.5
--------------------------------------------------------------------------------
Merchant Bank L.P. No. IV Series A Preferred Stock 3,779
--------------------------------------------------------------------------------
Xxxxxxx Xxxxx KECALP, L.P. 1989 Series A Preferred Stock 7,000
--------------------------------------------------------------------------------
Xxxxxxx Xxxxx KECALP, L.P. 1991 Series A Preferred Stock 3,874.5
--------------------------------------------------------------------------------
The Equitable Life Assurance
Society of the United States Series B Preferred Stock 84,134
--------------------------------------------------------------------------------
Equitable Deal Flow Fund, L.P. Series B Preferred Stock 84,135
--------------------------------------------------------------------------------
Xxxxx Xxxxxx Series C Preferred Stock 8,520
--------------------------------------------------------------------------------
