WRITTEN CONSENT AND VOTING AGREEMENT
Exhibit 99.1
WRITTEN CONSENT AND VOTING AGREEMENT
WRITTEN CONSENT AND VOTING AGREEMENT, dated as of June 22, 2011 (this “Agreement”), by
and among Xxxxxxx Chemical Company, a Delaware corporation (“Parent”), Resurgence Asset
Management, L.L.C., its Affiliates, and its and its Affiliates’ managed funds and accounts, each a
“Stockholder” and collectively, the “Stockholders”).
RECITALS
A. The respective Boards of Directors of Parent and Sterling Chemicals, Inc. (the
“Company”) have approved the merger (the “Merger”) of Xxxxxxx XX, Inc., a Delaware
corporation and a wholly owned subsidiary of Parent (“Sub”) with and into the Company on
the terms and subject to the conditions set forth in the Merger Agreement, whereby each issued
share of common stock, par value $0.01 per share (the “Company Common Stock”) and Series A
convertible preferred stock, par value $0.01 per share, of the Company (the “Preferred
Stock”) not owned by Parent, Sub or the Company will be converted into the right to receive the
Merger Consideration specified therein.
B. As of the date hereof, each Stockholders’ respective Existing Shares (as defined below) are
Beneficially Owned and owned of record by each such Stockholder, as reflected on Schedule 1
attached hereto.
C. The Board of Directors of the Company (the “Company Board”) by resolution adopted
in accordance with applicable Law, has appointed a special committee of independent members of the
Company Board (the “Special Committee”), which has determined that the Merger and the
Merger Agreement are fair to, and in the best interests of, the holders of Company Common Stock
(other than Resurgence), and has recommended that the Company Board approve the Merger Agreement;
D. The Company Board, having received the recommendation of the Special Committee, has
approved the Merger Agreement and determined that the terms of the Merger Agreement are advisable;
and
E. As a condition and inducement to willingness of Parent to enter into the Merger Agreement,
Resurgence is entering into this Agreement with Parent with respect to the shares of Company Common
Stock and the shares of Preferred Stock owned by Resurgence pursuant to which, among other things,
Resurgence has agreed, subject to the terms hereof and thereof, to execute and deliver to the
Company and Parent a written consent, substantially in the form attached hereto as Exhibit A,
pursuant to which Resurgence will adopt the Merger Agreement in accordance with Section 228 and
Section 251(c) of the General Corporation Law of the State of Delaware (the “DGCL”).
NOW, THEREFORE, the parties hereto agree as follows:
ARTICLE I
GENERAL
1.1 Defined Terms. The following capitalized terms, as used in this
Agreement, will have the meanings set forth below. Capitalized and other defined terms used but
not otherwise defined herein will have the meanings ascribed thereto in the Merger Agreement.
“Affiliate” means, with respect to any Person, any other Person that directly, or
indirectly through one or more intermediaries, controls, is controlled by or is under common
control with, such specified Person; provided that the Company will not be deemed an
Affiliate of any Stockholder.
“Beneficial Ownership” has the meaning ascribed to such term in Rule 13d-3 under the
Securities Exchange Act of 1934, as amended. The terms “Beneficially Own”,
“Beneficially Owned” and “Beneficial Owner” will each have a correlative meaning.
“Control” (including the terms “controlled by” and “under common control
with”), with respect to the relationship between or among two or more Persons, means the
possession, directly or indirectly, of the power to direct or cause the direction of the affairs or
management of a Person, whether through the ownership of voting securities, as trustee or executor,
by contract or any other means.
“Covered Shares” of a Stockholder (and each Stockholder’s “Covered Shares”)
means the specified Stockholder’s Existing Shares, together with any shares of Company Common Stock
or Preferred Stock and any shares of the Company Common Stock or Preferred Stock issuable upon the
conversion, exercise or exchange of securities that are as of the relevant date securities
convertible into or exercisable or exchangeable for shares of Company Common Stock or Preferred
Stock, in each case that such specified Stockholder has or acquires Beneficial Ownership of on or
after the date hereof.
“Encumbrance” means any security interest, pledge, mortgage, lien (statutory or
other), charge, option to purchase, lease or other right to acquire any interest or any claim,
restriction, covenant, title defect, hypothecation, assignment, deposit arrangement or other
encumbrance of any kind or any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including any conditional sale or other title
retention agreement). The term “Encumber” will have a correlative meaning.
“Existing Shares” of a Stockholder (and a Stockholder’s “Existing Shares”)
means the shares of Company Common Stock and Preferred Stock that are Beneficially Owned and owned
by the specified Stockholder as of the date hereof, as set forth opposite such Stockholder’s name
on Schedule 1 hereto.
“Expiration Date” means any date upon which the Merger Agreement is terminated in
accordance with its terms.
“Merger Agreement” means the Agreement and Plan of Merger, dated as of the date hereof
and as such may be amended, supplemented, restated or otherwise modified from time to time in any
manner approved in writing by the Stockholders.
“Permitted Transfer” means a Transfer of Covered Shares by a Stockholder to an
Affiliate of such Stockholder, provided that, (i) such Affiliate will remain an Affiliate of such
Stockholder at all times following such Transfer, (ii) prior to the effectiveness of such Transfer,
such transferee executes and delivers to Parent a written agreement, in form and substance
reasonably acceptable to Parent, to assume all of such Stockholder’s obligations hereunder in
respect of the securities subject to such Transfer and to be bound by the terms of this Agreement,
with respect to the securities subject to such Transfer, to the same extent as such Stockholder is
bound hereunder and to make each of the representations and warranties hereunder in respect of the
securities transferred as such Stockholder will have made hereunder.
“Person” means any individual, corporation, limited liability company, limited or
general partnership, joint venture, association, joint-stock company, trust, unincorporated
organization, government or any agency or political subdivision thereof or any other entity, or any
group comprised of two or more of the foregoing.
“Representatives” means the officers, directors, employees, agents, advisors and
Affiliates of a Person.
“SEC” means the Securities and Exchange Commission.
“Subsidiary” means, with respect to any Person, any corporation or other entity,
whether incorporated or unincorporated, (i) of which such Person or any other Subsidiary of such
Person is a general partner, or (ii) at least a majority of the securities or other interests of
which having by their terms ordinary voting power to elect a majority of the board of directors or
others performing similar functions with respect to such corporation or other entity is directly or
indirectly owned or controlled by such Person or by any one or more of its Subsidiaries, or by such
Person and one or more of its Subsidiaries; provided that the Company will in no event be
deemed a Subsidiary of a Stockholder.
“Transfer” means, directly or indirectly, to sell, transfer, assign, pledge, Encumber,
hypothecate or similarly dispose of (by merger (including by conversion into securities or other
consideration, but excluding the Merger)), by tendering into any tender or exchange offer, by
operation of law or otherwise), or to enter into any contract, option or other arrangement or
understanding with respect to the voting of or sale, transfer, assignment, pledge, Encumbrance,
hypothecation or similar disposition of (by merger, by tendering into any tender or exchange offer,
by testamentary disposition, by operation of law or otherwise).
ARTICLE II
VOTING
2.1 Agreement to Vote.
(a) Each Stockholder hereby agrees that, immediately following the execution and
delivery of this Agreement and the Merger Agreement, such Stockholder will execute and deliver to
the Company a written consent in the form of Exhibit A hereto (a “Written
Consent”). The Written Consent will be coupled with an interest and will be irrevocable,
except as provided in Section 5.1, below.
(b) Each Stockholder hereby agrees that from and after the date hereof until the
Expiration Date, at any meeting of the stockholders of the Company, however called, including any
adjournment or postponement thereof, and in connection with any action proposed to be taken by
written consent of the stockholders of the Company, such Stockholder will, in each case to the
fullest extent that the Covered Shares of such Stockholder are entitled to vote thereon or consent
thereto:
(i) appear at each such meeting or otherwise cause the Covered Shares to be counted
as present thereat for purposes of calculating a quorum; and
(ii) vote (or cause to be voted), in person or by proxy, or deliver (or cause to be
delivered) a written consent (if then permitted under the Company Bylaws) covering, all of such
Covered Shares (a) in favor of the adoption and approval of the Merger Agreement and approval of
the Merger and other transactions contemplated by the Merger Agreement and any action reasonably
requested by the Parent in furtherance of the foregoing, including, without limiting any of the
foregoing obligations, in favor of any proposal to adjourn or postpone any meeting of the
stockholders of the Company at which any of the foregoing matters are submitted for consideration
and vote of the stockholders of the Company to a later date if there are not sufficient votes for
approval of such matters on the date on which the meeting is held to vote upon any of the foregoing
matters; and (b) against any Acquisition Proposal and against any other action, agreement or
transaction involving the Company or any of its Subsidiaries that is intended, or would reasonably
be expected to, materially impede, interfere with, delay,
postpone or prevent the consummation of the Merger or the other transactions contemplated by
the Merger Agreement.
(c) The obligations of such Stockholder specified in Section 2.1(a) and
(b) will apply prior to the Expiration Date whether or not the Merger or any action
described above is recommended by the Board of Directors of the Company (or any committee thereof).
(d) Nothing in this Agreement, including this Section 2.1, will limit or
restrict any Affiliate or designee of any Stockholder who serves as a member of the Board of
Directors of the Company in acting in his or her capacity as a director of the Company and
exercising his or her fiduciary duties and responsibilities including, without limitation, taking
any action in compliance with Section 5.02 of the Merger Agreement.
2.2 No Inconsistent Agreements. Each Stockholder hereby covenants and
agrees that, except for this Agreement and the Written Consent, such Stockholder (a) has not
entered into, and will not enter into at any time prior to the Expiration Time, any voting
agreement or voting trust with respect to the Covered Shares of such Stockholder with respect to
the matters covered by Section 2.1(b)(ii), (b) has not granted, and will not grant at any
time prior to the Expiration Date, a proxy (except pursuant to Section 2.3), consent or
power of attorney with respect to the Covered Shares of such Stockholder with respect to the
matters covered by Section 2.1(b)(ii), and (c) has not taken and will not knowingly take
any action that would make any representation or warranty of such Stockholder contained herein
untrue or incorrect in any material respect or have the effect of preventing or disabling such
Stockholder from performing any of its material obligations under this Agreement. Such Stockholder
hereby represents that all proxies or powers of attorney given by such Stockholder prior to the
execution of this Agreement in respect of the voting of such Stockholder’s Covered Shares with
respect to the matters covered by Section 2.1(b)(ii), if any, are not irrevocable and the
Stockholder hereby revokes (and will cause to be revoked) any and all previous proxies or powers of
attorney with respect to such Stockholder’s Covered Shares with respect to the matters covered by
Section 2.1(b)(ii).
2.3 Proxy. Each Stockholder hereby irrevocably appoints as its proxy and
attorney-in-fact, Xxxxx Xxxxxxxxxx, Vice President and Assistant General Counsel of Parent, and
Xxxxx Xxxxxx, Associate General Counsel and Secretary of Parent, and any individual who will
hereafter succeed any such persons, and any other Person designated in writing by Parent, each of
them individually, with full power of substitution and resubstitution, to vote or execute written
consents with respect to the Covered Shares of such Stockholder in accordance with Section
2.1(b) prior to the Expiration Date at any annual or special meetings of stockholders of the
Company (or adjournments thereof) at which any of the matters described in Section 2.1(b)
is to be considered; provided however, in the exercise of any such vote or other
action pursuant to the grant of such proxy contemplated by this Section 2.3, no holder of
such proxy shall in any event have the right (and such proxy shall not confer the right) to vote
against the Merger, to vote to reduce the Merger Consideration, or otherwise modify or amend the
Merger Agreement to reduce the rights or benefits of the stockholders of the Company (including the
Stockholders, both individually or in the aggregate) under the Merger Agreement or to reduce the
obligations of the Parent thereunder; provided further, however that such Stockholder’s
grant of the proxy contemplated by this Section 2.3 will be effective if, and only if, such
Stockholder has not delivered to the Secretary of the Company, at least two business days prior to
the meeting at which any of the matters described in Section 2.1(b) is to be considered, a
duly executed irrevocable proxy card directing that the Covered Shares of such Stockholder be voted
in accordance with Section 2.1(b). This proxy, if it becomes effective, is coupled with an
interest, is given as an additional inducement of Parent to enter into the Merger Agreement and
will be irrevocable prior to the Expiration Date, at which time any such proxy will automatically
terminate without any further action by the parties hereto. Each Stockholder (solely in its
capacity as such) will take such further action or execute such other instruments as may be
necessary to effectuate the intent of this proxy. Parent may terminate this proxy with respect to
such Stockholder at any time at its sole election by written notice provided to such Stockholder.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
3.1 Representations and Warranties of Each Stockholder. Each Stockholder
hereby represents and warrants to Parent as follows:
(a) Authorization; Validity of Agreement; Necessary Action. Such
Stockholder is a limited liability company, a limited liability partnership, a trust, or other
business entity, duly formed or organized, validly existing and in good standing (with respect to
jurisdictions that recognize such concept) under the laws of its jurisdiction of organization or
formation. Such Stockholder has the requisite capacity and authority to execute and deliver this
Agreement, to perform its obligations hereunder and to consummate the transactions contemplated
hereby. This Agreement has been duly executed and delivered by such Stockholder and, assuming this
Agreement constitutes a valid and binding obligation of Parent, constitutes a legal, valid and
binding obligation of such Stockholder, enforceable against such Stockholder in accordance with its
terms, subject to bankruptcy, insolvency, fraudulent transfer, moratorium, reorganization or
similar laws affecting the rights of creditors generally and the availability of equitable remedies
(regardless of whether such enforceability is considered in a proceeding in equity or at law).
(b) Ownership. Such Stockholder’s Existing Shares are, and any additional
Covered Shares acquired by such Stockholder from the date hereof through and on the Expiration Date
will be, Beneficially Owned and owned of record by such Stockholder. Such Stockholder has good and
valid title to such Stockholder’s Existing Shares, free and clear of any Encumbrances other than
pursuant to this Agreement, the Merger Agreement, as may be disclosed in public filings made by
such Stockholder with the Securities and Exchange Commission with respect to such Existing Shares,
under applicable federal or state securities laws or pursuant to any written policies of the
Company only with respect to restrictions upon the trading of securities under applicable
securities laws. As of the date hereof, such Stockholder’s Existing Shares constitute all of the
shares of Company Common Stock and Preferred Stock Beneficially Owned and owned of record by such
Stockholder. Such Stockholder has and (except as contemplated by this Agreement) will have at all
times through the Expiration Date the sole power to control the vote and consent as contemplated
herein, sole power of disposition, sole power to issue instructions with respect to the matters set
forth in Article II, and sole power to agree to all of the matters set forth in this
Agreement, in each case with respect to all of such Stockholder’s Existing Shares and with respect
to any additional Covered Shares acquired by such Stockholder from the date hereof through the
Expiration Date.
(c) No Violation. The execution and delivery of this Agreement by such
Stockholder does not, and the performance by such Stockholder of its obligations under this
Agreement will not, (i) conflict with or violate any Law applicable to such Stockholder or by which
any of its assets or properties is bound or any organizational documents of such Stockholder, or
(ii) conflict with, result in any breach of or constitute a default (or an event that with notice
or lapse of time or both would become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, or result in the creation of any
Encumbrance on the properties or assets of such Stockholder pursuant to, any note, bond, mortgage,
indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation
to which the Stockholder is a party or by which such Stockholder and/or any of its assets or
properties is bound, except for any of the foregoing as would not impair the ability of such
Stockholder to perform its material obligations hereunder or to consummate the transactions
contemplated hereby on a timely basis.
(d) Consents and Approvals. The execution and delivery of this Agreement by
such Stockholder does not, and the performance by such Stockholder of its obligations under this
Agreement and the consummation by it of the transactions contemplated hereby will not, require such
Stockholder to obtain any consent, approval, authorization or permit of, or to make any filing with
or notification to, any Governmental Authority, other than the filings of any reports with the SEC.
(e) Absence of Litigation. As of the date hereof, there is no Action
pending or, to the knowledge of such Stockholder, threatened against or affecting such Stockholder
and/or any of its Affiliates before or by any Governmental Entity that would reasonably be expected
to impair the ability of such Stockholder to perform its material obligations hereunder or to
consummate the transactions contemplated hereby on a timely basis.
(f) Finder’s Fees. No investment banker, broker, finder or other
intermediary is entitled to a fee or commission from Parent, Merger Sub or the Company in respect
of this Agreement based upon any arrangement or agreement made by or on behalf of such Stockholder.
(g) Reliance by Parent. Such Stockholder understands and acknowledges that
Parent is entering into the Merger Agreement in reliance upon the execution and delivery of this
Agreement by such Stockholder and the representations and warranties of such Stockholder contained
herein.
3.2 Representations and Warranties of Parent. Parent hereby represents and
warrants to each Stockholder that it has the requisite capacity and authority to execute and
deliver this Agreement, to perform its obligations hereunder and to consummate the transactions
contemplated hereby. This Agreement has been duly executed and delivered by Parent, constitutes a
legal, valid and binding obligation of Parent, enforceable against it in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent conveyance, moratorium, reorganization or similar
laws affecting the rights of creditors generally and the availability of equitable remedies
(regardless of whether such enforceability is considered in a proceeding in equity or at law).
ARTICLE IV
OTHER COVENANTS
4.1 Prohibition on Transfers; Other Actions. Until the Expiration Date,
each Stockholder agrees that it will not (a) Transfer any of such Stockholder’s Covered Shares,
Beneficial Ownership thereof or any other interest therein; or (b) enter into any agreement,
arrangement or understanding with any Person with respect to any Transfer of such Stockholder’s
Covered Shares, unless in either of the foregoing (a) or (b), such Transfer is a Permitted
Transfer. Any Transfer in violation of this provision will be void ab initio. Each Stockholder
agrees that it will not request that the Company or its transfer agent register the transfer
(book-entry or otherwise) of any certificate or uncertificated interest representing any of such
Stockholder’s Covered Shares and hereby consents to the entry of stop transfer instructions by the
Company of any transfer of such Stockholder’s Covered Shares (and any other shares that are
Beneficially Owned by such Stockholder), unless such transfer is made in compliance with this
Agreement.
4.2 Stock Dividends, etc. In the event of a stock split, stock dividend or
distribution, or any change in the Company Common Stock or Preferred Stock by reason of any
split-up, reverse stock split, recapitalization, combination, reclassification, reincorporation,
exchange of shares or the like, the terms “Existing Shares” and “Covered Shares” will be deemed to
refer to and include such shares as well as all such stock dividends and distributions and any
securities into which or for which any or all of such shares may be changed or exchanged or which
are received in such transaction.
4.3 No Solicitation; Support of Acquisition Proposals.
(a) Except as set forth in this Section 4.3, each Stockholder will, and will
direct its respective Affiliates and Representatives to, cease any discussions or negotiations with
any Persons that may be ongoing as of the date of this Agreement with respect to an Acquisition
Proposal. From the date of this Agreement until the Expiration Date, except as permitted by
Section 4.3(b), each Stockholder agrees that it will not, and will not authorize its
respective Affiliates and Representatives to, (i) solicit, initiate or knowingly facilitate or
knowingly encourage (including by way of furnishing non-public information or providing access to
the properties, books, records or personnel of the Company or any of its Subsidiaries) any
inquiries regarding, or the making of any proposal or offer that constitutes an Acquisition
Proposal, or (ii) have any discussions (other than to state that the Stockholder is not permitted
to have discussions) or participate in any negotiations regarding an Acquisition Proposal, or
execute or enter into any Contract with respect to an Acquisition Proposal or any proposal that
could reasonably be expected to lead to an Acquisition Proposal, or approve or recommend an
Acquisition Proposal or any proposal that could reasonably be expected to lead to an Acquisition
Proposal or any Contract, letter of intent or agreement in principle with respect to an Acquisition
Proposal or any proposal that could reasonably be expected to lead to an Acquisition Proposal.
(b) Notwithstanding anything to the contrary in this Agreement, at any time the
Company is permitted to take the actions set forth in Section 5.02(b) of the Merger
Agreement with respect to an Acquisition Proposal, each Stockholder and its Affiliates and
Representatives will be free to participate in any discussions or
negotiations regarding such Acquisition Proposal with the Person making such Acquisition
Proposal, provided that such Stockholder has not breached this Section 4.3.
(c) For the purposes of this Section 4.3, the Company will be deemed not to
be an Affiliate or Subsidiary of any Stockholder, and any officer, director, employee, agent or
advisor of the Company (in each case, in their capacities as such) will be deemed not to be a
Representative of any Stockholder.
4.4 Notice of Acquisitions. Each Stockholder agrees to notify Parent as
promptly as practicable (and in any event within 24 hours after receipt) orally and in writing of
the number of any additional shares of Company Common Stock or Preferred Stock or other securities
of the Company of which such Stockholder acquires Beneficial Ownership on or after the date hereof.
4.5 Disclosure. Subject to reasonable prior notice and approval (not to be
unreasonably withheld or delayed) of the Stockholders, each Stockholder hereby authorizes the
Company and Parent to publish and disclose in any announcement or disclosure required by the SEC
and in the Information Statement the Stockholder’s identity and ownership of such Stockholder’s
Covered Shares and the nature of the Stockholder’s obligations under this Agreement.
ARTICLE V
MISCELLANEOUS
5.1 Termination. This Agreement will automatically terminate without any
action on the part of any party hereto, upon the earliest to occur of (a) the Expiration Date; or
(b) November 30, 2011. Notwithstanding the foregoing, the provisions of this Section 5.1
and of Section 5.2 and Sections 5.4 through 5.12 will survive any
termination of this Agreement without regard to any temporal limitation. Subject to the last
sentence of Section 5.9, neither the provisions of this Section 5.1 nor the
termination of this Agreement will relieve any party hereto from any liability to any other party
hereto arising out of or in connection with a breach of this Agreement by such party incurred prior
to such termination. For the avoidance of doubt, in the event the Merger Agreement is terminated
prior to the Effective Time, this Agreement and any consent executed pursuant hereto shall be
deemed null and void and have no further effect.
5.2 No Ownership Interest. Nothing contained in this Agreement will be
deemed to vest in Parent any direct or indirect ownership or incidence of ownership of or with
respect to such Stockholder’s Covered Shares. All rights and all ownership and economic benefits
of and relating to a Stockholder’s Covered Shares will remain vested in and belong to such
Stockholder, and nothing herein will, or will be construed to, grant Parent any power, sole or
shared, to direct or control the voting or disposition of any of such Covered Shares. Without
limiting the generality of the previous sentence, each Stockholder will be entitled to receive any
cash dividend paid by the Company with respect to such Stockholder’s Covered Shares during the term
of this Agreement. Nothing in this Agreement will be interpreted as obligating any Stockholder to
exercise or convert any warrants, options or convertible securities or otherwise to acquire Company
Common Stock.
5.3 Notices. All notices, requests, claims, demands and other
communications under this Agreement will be in writing and will be deemed given upon receipt by the
parties at the following addresses (or at such other address for a party as will be specified by
like notice):
If to Parent, to:
Xxxxxxx Chemical Company
X.X. Xxx 000
Xxxxxxxxx, XX 00000-0000
Attn: Xxxxx Xxxxxxxxxx
Fax: (000) 000-0000
X.X. Xxx 000
Xxxxxxxxx, XX 00000-0000
Attn: Xxxxx Xxxxxxxxxx
Fax: (000) 000-0000
with a copy (which will not constitute notice) to:
Xxxxx Day
0000 Xxxxxxxxx Xxxxxx, X.X.
Xxxxxxx, XX 00000-0000
Attn: Xxxxxxxx X. Xxxxxxxxx, Xx.
Fax: (000) 000-0000
0000 Xxxxxxxxx Xxxxxx, X.X.
Xxxxxxx, XX 00000-0000
Attn: Xxxxxxxx X. Xxxxxxxxx, Xx.
Fax: (000) 000-0000
If to Resurgence, to:
c/o M.D. Sass Investors Services, Inc.
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxx Xxxxx
Fax: (000) 000-0000
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxx Xxxxx
Fax: (000) 000-0000
with a copy (which will not constitute notice) to:
Xxxxxxxxx & Xxxxxxxx LLP
0000 Xxxxxx xx xxx Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxxxx X. Xxxx
Fax: (000) 000-0000
0000 Xxxxxx xx xxx Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxxxx X. Xxxx
Fax: (000) 000-0000
5.4 Interpretation. When a reference is made in this Agreement to a
Section, such reference will be to a Section of this Agreement unless otherwise indicated. The
headings contained in this Agreement are for reference purposes only and will not affect in any way
the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or
“including” are used in this Agreement, they will be deemed to be followed by the words “without
limitation.” Each party hereto has participated in the drafting of this Agreement, which each
party acknowledges and agrees is the result of extensive negotiations among the parties.
5.5 Counterparts. This Agreement may be executed in one or more
counterparts, all of which will be considered one and the same agreement and will become effective
when one or more counterparts have been signed by each of the parties and delivered to the other
parties.
5.6 Entire Agreement. This Agreement and, to the extent referenced herein,
the Merger Agreement, together with the several agreements and other documents and instruments
referred to herein or therein or attached hereto or thereto, constitute the entire agreement, and
supersede all prior agreements and understandings, both written and oral, among the parties with
respect to the transactions contemplated hereby.
5.7 Governing Law. This Agreement will be governed by, and construed in
accordance with, the internal Laws of the State of Delaware applicable to agreements made and to be
performed wholly within such state.
5.8 Specific Performance; Enforcement. The parties agree that irreparable
damage would occur in the event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. It is accordingly agreed that the
parties will be entitled to an injunction or injunctions to prevent breaches of this Agreement and
to enforce specifically the terms and provisions of this Agreement in any Delaware state court or
any federal court located in the State of Delaware, this being in addition to any other remedy to
which they are entitled at Law or in equity. In addition, each of the parties hereto (a) consents
to submit itself to the personal jurisdiction of any Delaware state court or any federal court
located in the State of Delaware in the event any dispute arises out of this Agreement, (b) agrees
that it will not attempt to deny or defeat such personal jurisdiction by motion or other request
for leave from any such court, (c) agrees that it will not bring any action relating to this
Agreement in any court other than any Delaware state court or any federal court sitting in the
State of Delaware, and (d) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY ACTION RELATED TO
OR ARISING OUT OF THIS AGREEMENT.
5.9 Amendment; Waiver. This Agreement may not be amended except by an
instrument in writing signed by Parent and each Stockholder. Each party may waive any right of
such party hereunder by an instrument in writing signed by such party and delivered to the other
parties.
5.10 Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule or Law, or public policy, all other
conditions and provisions of this Agreement will nevertheless remain in full force and effect so
long as the economic or legal substance of the transactions contemplated hereby is not affected in
any manner materially adverse to any party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto will negotiate in
good faith to modify this Agreement so as to effect the original intent of the parties as closely
as possible in an acceptable manner to the end that the transactions contemplated hereby are
fulfilled to the extent possible.
5.11 Assignment; Third Party Beneficiaries. Neither this Agreement nor any
of the rights, interests or obligations under this Agreement will be assigned, in whole or in part,
by operation of Law or otherwise by any of the parties without the prior written consent of the
other parties. This Agreement will be binding upon, inure to the benefit of, and be enforceable
by, the parties and their respective successors and assigns. The Company will be an express third
party beneficiary of the first sentence of Section 2.1(a) of this Agreement. This
Agreement is not intended to and does not confer upon any stockholder, employee, director, officer
or other Person, other than the parties hereto and, solely with respect to the first sentence of
Section 2.1(a), the Company, any rights or remedies.
5.12 Action by Stockholder Capacity Only. Parent acknowledges that each
Stockholder has entered into this Agreement solely in its capacity as the record and/or beneficial
owner of such Stockholder’s Covered Shares (and not in any other capacity, including without
limitation, any capacity as a director or officer of the Company). Nothing herein will limit or
affect any actions taken by such Stockholder or its Affiliate or designee, or require such
Stockholder or its Affiliate or designee to take any action, in each case, in its or his capacity
as a director or officer of the Company, and any actions taken, or failure to take any actions, by
it or him in such capacity as a director or officer of the Company will not be deemed to constitute
a breach of this Agreement.
[Remainder
of this page intentionally left blank]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed (where
applicable, by their respective officers or other authorized Person thereunto duly authorized) as
of the date first written above.
STOCKHOLDERS:
Corporate Resurgence Partners, L.L.C.
Corporate Resurgence Partners II, L.L.C.
M.D. Sass Corporate Resurgence Partners III, L.P.
Corporate Resurgence Partners II, L.L.C.
M.D. Sass Corporate Resurgence Partners III, L.P.
By: Resurgence Asset Management, L.L.C.
Each of its: Manager
Each of its: Manager
By: | /s/ Xxxxxx X. Xxxxx | |||
Name: | Xxxxxx X. Xxxxx | |||
Title: | Senior VP and Secretary | |||
Resurgence Asset Management, L.L.C. Employee
Retirement Plan
Retirement Plan
By: | /s/ Xxxxxx X. Xxxx | |||
Name: | Xxxxxx X. Xxxx | |||
Title: | Trustee | |||
Corporate Resurgence, Ltd.
By: Resurgence Asset Management International,
L.L.C.
Its: Manager
By: | /s/ Xxxxxx X. Xxxxx | |||
Name: | Xxxxxx X. Xxxxx | |||
Title: | Senior VP and Secretary | |||
Trust “O” For a Portion of the Assets of the Kodak
Retirement Income Plan
Retirement Income Plan
Kodak Pension Plan
By: Re/Enterprise Asset Management, L.L.C.
Each of its: Investment Manager
By: | /s/ Xxxxxx X. Xxxxx | |||
Name: | Xxxxxx X. Xxxxx | |||
Title: | Senior VP and Secretary | |||
M.D. Sass Re/Enterprise Portfolio Company, L.P.
M.D. Sass Re/Enterprise II, L.P.
By: Re/Enterprise Asset Management, L.L.C.
Each of its: General Partner
By: | /s/ Xxxxxx X. Xxxxx | |||
Name: | Xxxxxx X. Xxxxx | |||
Title: | Senior VP and Secretary |
M.D. Sass Associates, Inc. Employee Profit Sharing
Plan
Plan
By: | /s/ Xxxxxx X. Xxxx | |||
Name: | Xxxxxx X. Xxxx | |||
Title: | Trustee | |||
M.D. Sass Investors Services, Inc.
By: | /s/ Xxxxxx X. Xxxxx | |||
Name: | Xxxxxx X. Xxxxx | |||
Title: | Senior VP and Secretary | |||
Resurgence Parallel Fund, L.L.C.
By: | /s/ Xxxxxx X. Xxxx | |||
Name: | Xxxxxx X. Xxxx | |||
Title: | Authorized Member | |||
Resurgence Parallel Fund II, L.L.C.
By: | /s/ Xxxxxx X. Xxxx | |||
Name: | Xxxxxx X. Xxxx | |||
Title: | Authorized Member | |||
Resurgence Parallel Fund III, L.L.C.
By: | /s/ Xxxxxx X. Xxxx | |||
Name: | Xxxxxx X. Xxxx | |||
Title: | Authorized Member | |||
PARENT:
XXXXXXX CHEMICAL COMPANY
XXXXXXX CHEMICAL COMPANY
By: | /s/ Xxxxx X. Xxxxxxxxxx | |||
Name: | Xxxxx X. Xxxxxxxxxx | |||
Title: | Vice President, Assistant General Counsel and Assistant Secretary | |||
SCHEDULE 1
OWNERSHIP OF EXISTING SHARES
Preferred Ownership | Common | |||||||
Beneficial Owner | (as converted basis) | Ownership | ||||||
Corporate Resurgence Partners, L.L.C. |
2,226,190 | 444,589 | ||||||
Corporate Resurgence Partners II, L.L.C. |
685,322 | 134,816 | ||||||
M.D. Sass Corporate Resurgence Partners III, L.P. |
1,306,164 | 257,703 | ||||||
Resurgence Asset Management, L.L.C. Employee
Retirement Plan |
2,296 | 454 | ||||||
Corporate Resurgence, Ltd. |
1,141,944 | 228,057 | ||||||
Trust “O” For a Portion of the Assets of the Kodak
Retirement Income Plan |
1,376,229 | 274,965 | ||||||
Kodak Pension Plan |
422,747 | 84,168 | ||||||
M.D. Sass Associates, Inc. Employee Profit Sharing Plan |
16,867 | 3,385 | ||||||
M.D. Sass Re/Enterprise Portfolio Company, L.P. |
553,426 | 111,730 | ||||||
M.D. Sass Re/Enterprise II, L.P. |
114,734 | 22,964 | ||||||
M.D. Sass Investors Services, Inc. |
37,303 | 7,424 | ||||||
Resurgence Parallel Fund, L.L.C. |
77,849 | 15,544 | ||||||
Resurgence Parallel Fund II, L.L.C. |
12,012 | 2,361 | ||||||
Resurgence Parallel Fund III, L.L.C. |
7,003 | 1,382 |
EXHIBIT A
WRITTEN CONSENT OF STOCKHOLDERS
OF STERLING CHEMICALS, INC.
The undersigned, being stockholders of Sterling Chemicals, Inc., a Delaware corporation (the
“Company”), acting pursuant to Section 228 of the Delaware General Corporation Law
(“DGCL”), hereby adopt the following recitals and resolution by written consent in lieu of
a meeting:
WHEREAS, there has been submitted to the undersigned stockholders of the Company an Agreement
and Plan of Merger (the “Merger Agreement”) by and among Xxxxxxx Chemical Company, a
Delaware corporation, Xxxxxxx XX, Inc., a Delaware corporation (“Merger Sub”), and the
Company, which Merger Agreement provides for the merger of Merger Sub with and into the Company,
with the Company as the surviving corporation after such merger (the “Merger”);
WHEREAS, pursuant to the terms and conditions of the Merger Agreement, the stockholders of the
Company (the “Stockholders”) will be entitled to receive the Merger Consideration (as
defined in the Merger Agreement) for each share of common stock, par value $0.01 per share (the
“Common Stock”), and Series A convertible preferred stock, par value $0.01 per share (the
“Preferred Stock”), of the Company held by them at the effective time of the Merger;
WHEREAS, the board of directors of the Company has approved the Merger Agreement and the
Merger and has resolved to recommend that the Stockholders adopt the Merger Agreement;
WHEREAS, the affirmative vote in favor of the adoption of the Merger Agreement by a majority
of the votes entitled to be cast thereon by the stockholders of the Company is required pursuant to
Section 251 of the DGCL;
WHEREAS, the Company Charter (as defined in the Merger Agreement) requires the affirmative
vote in favor of the adoption of the Merger Agreement by (i) a majority of the voting power of the
Common Stock and Preferred Stock, voting or consenting together as a class, and (ii) a majority of
the voting power of the Preferred Stock, voting separately; and
WHEREAS, the undersigned Stockholders own, collectively, 1,589,542 shares of Common Stock and
7,980,086 shares of Preferred Stock (on an as converted basis), which represents over 88% of the
voting power of the Common Stock and Preferred Stock (on a fully diluted basis), voting or
consenting together as a class, and 100% of the Preferred Stock, voting separately.
NOW, THEREFORE, BE IT RESOLVED, that the undersigned Stockholders, in their capacity as
Stockholders, consenting (i) as holders of Common Stock and Preferred Stock, as a class and (ii) as
holders of Preferred Stock, separately, in each case hereby adopt the Merger Agreement and approve
the transactions contemplated by the Merger Agreement, including, without limitation, the Merger;
and
FURTHER RESOLVED, that the Merger Agreement and the Merger be, and hereby are, consented to,
approved and adopted in all respects without a meeting, without prior notice and without a vote;
and
FURTHER RESOLVED, that this written consent may be signed in one or more counterparts, each of
which will be deemed an original, and all of which will constitute one instrument and that this
written consent will be filed with the minutes of the proceedings of the stockholders of the
Company.
This written consent is coupled with an interest and is irrevocable, except to the extent
provided in Section 5.1 of the Written Consent and Voting Agreement entered into on [___________],
2011 by and among Parent and the Stockholders. For the avoidance of doubt, in the event the Merger
Agreement is terminated prior to the Effective Time (as defined in the Merger Agreement), this
consent shall be deemed null and void and have no further effect.
* * * * *
IN WITNESS WHEREOF, each of the undersigned has executed this written consent on the date
set forth below.
STOCKHOLDERS: Corporate Resurgence Partners, L.L.C. Corporate Resurgence Partners II, L.L.C. M.D. Sass Corporate Resurgence Partners III, L.P. |
||||
By: | Resurgence Asset Management, L.L.C. Each of its: Manager |
By: | ||||
Name: | ||||
Title: |
DATED: ____________, 2011 | ||||
Resurgence Asset Management, L.L.C. Employee Retirement Plan |
||||
By: | Resurgence Asset Management, L.L.C. Its: Manager |
By: | ||||
Name: | ||||
Title: |
DATED: ____________, 2011 |
||||
Corporate Resurgence, Ltd. |
||||
By: | Resurgence Asset Management International,L.L.C. Its: Manager |
By: | ||||
Name: | ||||
Title: |
DATED: ____________, 2011 |
A-1
Trust “O” For a Portion of the Assets of the Kodak Retirement Income Plan Kodak Pension Plan |
||||
By: | Re/Enterprise Asset Management, L.L.C. Each of its: Investment Manager |
By: | ||||
Name: | ||||
Title: |
DATED: ____________, 2011 | ||||
M.D. Sass Re/Enterprise Portfolio Company, L.P. M.D. Sass Re/Enterprise II, L.P. |
||||
By: | Re/Enterprise Asset Management, L.L.C. Each of its: General Partner |
By: | ||||
Name: | ||||
Title: |
DATED: ____________, 2011 | ||||
M.D. Sass Associates, Inc. Employee Profit Sharing Plan |
||||
By: | ||||
Name: | ||||
Title: |
DATED: ____________, 2011 | ||||
M.D. Sass Investors Services, Inc. |
||||
By: | ||||
Name: | ||||
Title: |
DATED: ____________, 2011 |
A-2
Resurgence Parallel Fund, L.L.C. |
||||
By: | ||||
Name: | ||||
Title: |
DATED: ____________, 2011 |
||||
Resurgence Parallel Fund II, L.L.C. |
||||
By: | ||||
Name: | ||||
Title: |
DATED: ____________, 2011 |
||||
Resurgence Parallel Fund III, L.L.C. |
||||
By: | ||||
Name: | ||||
Title: |
DATED: ____________, 2011 |
||||
A-3