December 17, 2007 STRICTLY CONFIDENTIAL Marlin HoldCo LP Marlin MidCo Inc. c/o Macquarie Securities (USA) Inc.
Exhibit
7.02
December
17, 2007
STRICTLY
CONFIDENTIAL
Xxxxxx
HoldCo XX
Xxxxxx
MidCo Inc.
c/o
Macquarie Securities (USA) Inc.
000
Xxxx
00xx Xxxxxx, 0xx Xxxxx
Xxx
Xxxx,
XX 00000
Gentlemen:
Reference
is made to that certain Agreement and Plan of Merger, dated as of the date
hereof (the “Merger Agreement”; capitalized terms used but not defined
herein shall have the meanings given to such terms in the Merger Agreement),
by
and among Xxxxxx HoldCo LP (“Parent”), Xxxxxx MergeCo Inc. (“Merger
Sub”) and Waste Industries USA, Inc. (the “Company”).
The
undersigned (the “Investor”) hereby commits, subject to the conditions
set forth herein, to purchase, and/or cause to be purchased by certain
additional co-investment entities affiliated with the Investor, equity interests
of Parent (the “Equity Securities”) for an aggregate purchase price equal
to the amount set forth next to the Investor’s name on Schedule A hereto
(such amount, the “Equity Funding Amount”), solely for the purpose of
funding a portion of the consideration payable by Parent in accordance with
the
Merger Agreement and related expenses.
In
addition to the Equity Funding Amount, the Investor hereby commits, subject
to
the conditions set forth herein, to purchase, and/or cause to be purchased
by
certain additional co-investment entities affiliated with such Investor, senior
subordinated mezzanine loan notes (the “Notes”) issued by the
wholly-owned subsidiary of Parent and the direct parent of Merger Sub
(“Midco”) on the terms described herein and on Exhibit A hereto
(the “Term Sheet”) for an aggregate purchase price equal to the amount
set forth on Schedule B hereto (such amount, the “Note Funding
Amount”), the proceeds of which shall be used solely for the purpose of
funding a portion of the consideration payable by Parent in accordance with
the
Merger Agreement and related expenses. The foregoing obligation of
the Investor to purchase the Equity Securities and the Notes are subject to
the
satisfaction or proper waiver in accordance with the provisions of the Interim
Investors Agreement, dated as of the date hereof, by and among Parent, Merger
Sub and the other parties appearing on the signature pages thereto of the
conditions set forth in Article VI of the Merger Agreement and the substantially
contemporaneous funding of the financing contemplated by the Debt Commitment
Letters and the consummation of the merger (the “Merger”) in accordance
with the terms of the Merger Agreement. Under no circumstances shall
the Investor be obligated to (i) contribute to Parent more than the Investor’s
Equity Funding Amount and (ii) purchase Notes from Midco in an amount greater
than the Investor’s Note Funding Amount.
The
obligations of the Investor hereunder will terminate automatically and
immediately upon the earliest to occur of (a) the Closing, (b) the termination
of the Merger Agreement and (c) the Company or any of its affiliates asserting
a
claim against the Investor or any affiliate thereof in connection with the
Merger Agreement or any of the transactions contemplated thereby (the earliest
date on which any such event occurs, being the “Commitment Termination
Date”).
No
(a)
direct or indirect holder of any equity interests or securities of any party
hereto (whether such holder is a partner (limited or general), member,
stockholder, or otherwise), (b) Affiliate of any party hereto, or (c) director,
officer, partner (limited or general), member, stockholder, employee,
representative or agent of any party hereto, any of such party’s respective
Affiliates or any such direct or indirect holder of any equity interests or
securities of any such party (collectively, the “Party Affiliates”) shall
have any liability or obligation of any nature whatsoever in connection with
or
under this letter or the transactions contemplated hereby, and each party hereto
hereby waives and releases all claims against such Party Affiliates related
to
any such liability or obligation.
This
letter shall be binding on the undersigned solely for the benefit of the parties
hereto, and nothing set forth in this letter shall be construed to confer upon
or give to any Person other than the parties hereto any benefits, rights or
remedies under or by reason of, or any rights to enforce or cause Parent to
enforce, the Investor’s obligation to fund its Equity Funding Amount, Note
Funding Amount or any provisions of this letter. Parent’s creditors
shall have no right to enforce this letter or cause Parent to enforce this
letter.
No
modification of this letter shall be binding upon or enforceable against any
party hereto without the written approval of such party.
The
Investor may assign any of its rights and obligations, in whole or in part,
to
any Affiliate of the Investor or any fund managed by an Affiliate of the
Investor. Parent may not assign any of its rights and obligations
hereunder to any Person without the prior consent of the Investor, and any
attempted assignment in violation of the foregoing shall be null and
void.
This
letter, and all claims or causes of action (whether at law, in equity, in
contract, in tort or otherwise) that may be based upon, arise out of or relate
to this letter or the negotiation, execution or performance hereof, shall be
governed by and construed in accordance with the laws of the State of Delaware,
without giving effect to any choice or conflict of law provision or rule
(whether of the State of Delaware or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of
Delaware. Each of the parties hereto irrevocably agrees that any
legal action or proceeding that may be based upon, arise out of or relate to
this letter or the negotiation, execution or performance hereof (whether at
law,
in equity, in contract, in tort or otherwise), shall be brought and determined
exclusively in the Chancery Court of the State of Delaware (or other appropriate
state court in the State of Delaware), or in the event (but only in the event)
that such court does not have subject matter jurisdiction over such action
or
proceeding, in any federal court sitting in the State of
Delaware. Each of the parties hereto hereby irrevocably submits with
regard to any such action or proceeding for itself and in respect of its
property, generally and unconditionally, to the exclusive personal jurisdiction
of the aforesaid courts and agrees that it will not bring any such action in
any
court other than the aforesaid courts.
IN
NO
EVENT SHALL PARENT BE ENTITLED TO SPECIFIC PERFORMANCE AGAINST THE INVESTOR
WITH
RESPECT TO ITS OBLIGATIONS HEREUNDER. EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING
THAT MAY BE BASED UPON, ARISE OUT OF OR RELATE TO THIS LETTER OR THE
NEGOTIATION, EXECUTION OR PERFORMANCE HEREOF.
[SIGNATURE
PAGES FOLLOW]
Very
truly yours,
MIP WASTE HOLDINGS, L.P., by its General Partner, MIP Waste GP LLC | ||
By:
|
/s/ Xxxxxxxxxxx Xxxxxx | |
Name: Xxxxxxxxxxx Xxxxxx | ||
Title: President | ||
By:
|
/s/ Xxxx Xxxx | |
Name: Xxxx Xxxx | ||
Title: Treasurer | ||
Accepted
and agreed as of
the
date
first above written:
XXXXXX HOLDCO LP, by its General Partner, Xxxxxx HoldCo GP, LLC | ||
By:
|
/s/ Xxx X. Xxxxx | |
Name: Xxx X. Xxxxx | ||
Title: Vice President | ||
XXXXXX MIDCO INC. | ||
By:
|
/s/ Xxx X. Xxxxx | |
Name: Xxx X. Xxxxx | ||
Title: Vice President | ||
SCHEDULE
A
Equity
Funding Amount
Investor
|
Equity
Funding Amount
|
MIP
WASTE HOLDINGS, L.P.
|
$96,001,944.12
|
SCHEDULE
B
Note
Funding Amount
Investor
|
Note
Funding Amount
|
MIP
WASTE HOLDINGS, L.P.
|
$71,383,324.56
|