SUPPORT AGREEMENT
Exhibit 10.1
EXECUTION VERSION
This SUPPORT AGREEMENT, dated as of March 13, 2011 (this “Agreement”), is by and among
Xxxxx Corporation, a Nevada corporation (“Parent”), KSP Holding Sub, LLC, a Delaware
limited liability company and direct wholly owned subsidiary of Parent (“Holding Sub”), KSP
LP Sub, LLC, a Delaware limited liability company and direct wholly owned subsidiary of Parent
(“LP Sub”), KSP Merger Sub, LLC, a Delaware limited liability company wholly owned by
Holding Sub and LP Sub (“Merger Sub,” and together with Parent, Holding Sub and LP Sub, the
“Parent Parties”), and KA First Reserve, LLC a Delaware limited liability company (the
“Covenanting Unitholder”).
RECITALS:
WHEREAS, concurrently with the execution of this Agreement, the Parent Parties and K-Sea
Transportation Partners L.P. (among others) are entering into an Agreement and Plan of Merger,
dated as of the date hereof (as amended, supplemented, restated or otherwise modified from time to
time, the “Merger Agreement”), pursuant to which, among other things, Merger Sub will merge
with and into the Company (the “Merger”), with the Company as the surviving entity, and
each Company Equity Interest (as defined in the Merger Agreement) will be converted into the right
to receive the merger consideration specified therein; and
WHEREAS, as of the date hereof, the Covenanting Unitholder is the record owner in the
aggregate of, and has the right to vote and dispose of, the number of Preferred Units and/or
Common Units set forth opposite such Covenanting Unitholder’s name on Schedule I hereto;
and
WHEREAS, as a material inducement to the Parent Parties to enter into the Merger Agreement,
the Parent Parties have required that the Covenanting Unitholder agree, and the Covenanting
Unitholder has agreed, to enter into this agreement and abide by the covenants and obligations with
respect to the Covered Units (as hereinafter defined) set forth herein.
NOW THEREFORE, in consideration of the foregoing and the mutual representations, warranties,
covenants and agreements herein contained, and intending to be legally bound hereby, the parties
hereto agree as follows:
ARTICLE 1
GENERAL
Section 1.1 Defined Terms. The following capitalized terms, as used in this
Agreement, shall have the meanings set forth below. Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed thereto in the Merger Agreement.
“Covered Units” means, with respect to the Covenanting Unitholder, the Covenanting
Unitholder’s Existing Units, together with any Units or other Company Equity Interests with the
right to consent to, vote upon or approve any matter with regard to the Company that the
Covenanting Unitholder acquires, either beneficially or of record, on or after the date hereof,
including any Company Equity Interests received as dividends (including pay-in-kind dividends) or
as a result of a split, reverse split, combination, merger, consolidation, reorganization,
reclassification, recapitalization or similar transaction.
“Existing Units” means the Units or other Company Equity Interests owned, either
beneficially or of record, by the Covenanting Unitholder on the date of this Agreement.
“Permitted Transfer” means a Transfer by the Covenanting Unitholder (or an Affiliate
thereof) to an Affiliate of such Covenanting Unitholder, provided that such transferee Affiliate
agrees in writing to assume all of such transferring Covenanting Unitholder’s obligations hereunder
in respect of the Covered Units subject to such Transfer and to be bound by, and comply with, the
terms of this Agreement, with respect to the Covered Units subject to such Transfer, to the same
extent as such Covenanting Unitholder is bound hereunder.
“Transfer” means, directly or indirectly, to sell, transfer, assign or similarly
dispose of (by merger (including by conversion into securities or other consideration), by
tendering into any tender or exchange offer, by testamentary disposition, by operation of law or
otherwise), either voluntarily or involuntarily, or to enter into any contract, option or other
arrangement or understanding with respect to the voting of or sale, transfer, conversion,
assignment or similar disposition of (by merger, by tendering into any tender or exchange offer, by
testamentary disposition, by operation of law or otherwise).
ARTICLE 2
VOTING
Section 2.1 Agreement to Vote Covered Units. The Covenanting Unitholder hereby
irrevocably and unconditionally agrees that during the term of this Agreement, at any meeting of
the Unitholders, however called, including any adjournment or postponement thereof, and in
connection with any written consent of the Unitholders (or any class or subdivision thereof), the
Covenanting Unitholder shall, in each case to the fullest extent that the Covered Units are
entitled to vote thereon or consent thereto:
(a) appear at each such meeting or otherwise cause its Covered Units to be counted as
present thereat for purposes of calculating a quorum; and
(b) vote (or cause to be voted), in person or by proxy, or deliver (or cause to be
delivered) a written consent covering, all of the Covered Units:
(i) in favor of the approval or adoption of, or consent to, the Merger
Agreement, any transactions contemplated by the Merger Agreement and any other
action reasonably requested by Parent in furtherance thereof submitted for the vote
or written consent of Unitholders;
(ii) against the approval or adoption of (A) any Acquisition Proposal or any
other action, agreement, transaction or proposal made in opposition to the approval
of the Merger Agreement or inconsistent with the Merger and the other transactions
contemplated by the Merger Agreement, or (B) any action, agreement, transaction or
proposal that is intended, or would reasonably be expected, to result in a material
breach of any covenant, agreement, representation, warranty or any other obligation
of the Company Parties contained in the Merger Agreement or of the Covenanting
Unitholder contained in this Agreement; and
(iii) against any action, agreement, transaction or proposal that is intended,
would reasonably be expected, or the result of which would reasonably be expected,
to materially impede, interfere with, delay, postpone, discourage, frustrate the
purposes of or adversely affect the Merger or the other transactions contemplated by
the Merger Agreement, including but not limited to the following actions (other than
the Merger and the other transactions contemplated by the Merger Agreement and
actions requested or
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expressly permitted by Parent): (A) any extraordinary corporate transaction,
such as a merger, consolidation or other business combination involving a Company
Entity; (B) a sale, lease or transfer of a material amount of assets of a Company
Entity, or a reorganization, recapitalization, dissolution, liquidation or winding
up of a Company Entity; (C) (1) any change in a majority of persons who constitute
the Company Board as of the date hereof, except for changes requested or expressly
permitted by Parent, (2) any change in the present capitalization of the Company or
any amendment to a Company Entity Charter Document, or (3) any other material change
in a Company Entity’s organizational structure or business.
Section 2.2 No Inconsistent Agreements. The Covenanting Unitholder hereby represents,
covenants and agrees that, except for this Agreement, the Covenanting Unitholder (a) has not
entered into, and shall not enter into at any time while this Agreement remains in effect, any
voting agreement or voting trust with respect to its Covered Units, (b) has not granted, and shall
not grant at any time while this Agreement remains in effect, a proxy, consent or power of attorney
with respect to its Covered Units (except pursuant to Section 2.3 hereof) and (c) has not
taken and shall not take any action that would make any representation or warranty of the
Covenanting Unitholder contained herein untrue or incorrect in any material respect or have the
effect of preventing or disabling the Covenanting Unitholder from performing in any material
respect any of its obligations under this Agreement.
Section 2.3 Proxy. In order to secure the obligations set forth herein, the
Covenanting Unitholder hereby irrevocably appoints Parent, or any nominee thereof, with full power
of substitution and resubstitution, as its true and lawful proxy and attorney-in-fact, to vote or
execute written consents with respect to the Covered Units in accordance with Section 2.1
hereof and with respect to any proposed postponements or adjournments of any meeting of the
Unitholders at which any of the matters described in Section 2.1 are to be considered. The
Covenanting Unitholder hereby affirms that this proxy is coupled with an interest and shall be
irrevocable, except upon termination of this Agreement, and the Covenanting Unitholder will take
such further action or execute such other instruments as may be necessary to effectuate the intent
of this proxy and hereby revokes any proxy previously granted by the Covenanting Unitholder with
respect to the Covered Units. Parent may terminate this proxy with respect to the Covenanting
Unitholder at any time at its sole election by written notice provided to the Covenanting
Unitholder.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES
Section 3.1 Representations and Warranties of the Covenanting Unitholder. The
Covenanting Unitholder (except to the extent otherwise provided herein) hereby represents and
warrants to the Parent Parties as follows:
(a) Organization; Authorization; Validity of Agreement; Necessary Action. The
Covenanting Unitholder has the requisite power and authority and/or capacity to execute and
deliver this Agreement and to carry out its obligations hereunder. The execution and
delivery by the Covenanting Unitholder of this Agreement and the performance by it of the
obligations hereunder have been duly and validly authorized by the Covenanting Unitholder
and no other actions or proceedings are required on the part of the Covenanting Unitholder
to authorize the execution and delivery of this Agreement or the performance by the
Covenanting Unitholder of the obligations hereunder. This Agreement has been duly executed
and delivered by the Covenanting Unitholder and, assuming the due authorization, execution
and delivery of this Agreement by the Parent Parties, constitutes a legal, valid and binding
agreement of the
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Covenanting Unitholder, enforceable against it in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general equitable
principles.
(b) Ownership. The Covenanting Unitholder is the record and beneficial owner
of, and has good title to, the Existing Units, free and clear of any Liens, except as may be
provided for in this Agreement. All of the Covered Units owned by the Covenanting
Unitholder from the date hereof through and on the Closing Date will be beneficially or
legally owned by the Covenanting Unitholder, except in the case of a Permitted Transfer.
Except as provided for in this Agreement, the Covenanting Unitholder has and will have at
all times through the Closing Date sole voting power (including the right to control such
vote as contemplated herein), sole power of disposition, sole power to issue instructions
with respect to the matters set forth in Article 2 hereof, and sole power to agree
to all of the matters set forth in this Agreement, in each case with respect to all of the
Covenanting Unitholder’s Existing Units and with respect to all of the Covered Units owned
by the Covenanting Unitholder at any time through the Closing Date, except in the case of a
Permitted Transfer. Except for the Existing Units and the right to receive Units as
pay-in-kind dividends with respect to such Existing Units (collectively, the “PIK
Units”), the Covenanting Unitholder does not, directly or indirectly, legally or
beneficially own or have any option (other than its option to acquire securities of IDR
Holdings), warrant or other right to acquire any securities of a Company Entity that are or
may by their terms become entitled to vote or any securities that are convertible or
exchangeable into or exercisable for any securities of a Company Entity that are or may by
their terms become entitled to vote, nor is the Covenanting Unitholder subject to any
Contract or relationship, other than this Agreement, that obligates the Covenanting
Unitholder to vote, acquire or dispose of any securities of a Company Entity.
(c) No Violation. Neither the execution and delivery of this Agreement by the
Covenanting Unitholder nor the performance by the Covenanting Unitholder of its obligations
under this Agreement will (i) result in a violation or breach of, or conflict with any
provisions of, or constitute a default (or an event which, with notice or lapse of time or
both, would constitute a default) under, or result in the termination or cancellation of, or
give rise to a right of purchase under, or result in the creation of any Lien (other than
under this Agreement) upon any of the properties, rights or assets (including but not
limited to the Existing Units) owned by the Covenanting Unitholder under, any of the terms,
conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license,
contract, lease, agreement or other instrument or obligation of any kind to which the
Covenanting Unitholder is a party or by which the Covenanting Unitholder or any of its
respective properties, rights or assets may be bound, (ii) violate any Orders or Laws
applicable to the Covenanting Unitholder or any of its properties, rights or assets, or
(iii) result in a violation or breach of or conflict with its organizational and governing
documents, except in the case of clause (i) as would not reasonably be expected to prevent
or materially delay the ability of the Covenanting Unitholder to perform its obligations
hereunder.
(d) Consents and Approvals. No consent, approval, Order or authorization of,
or registration, declaration or filing with, any Governmental Entity is necessary to be
obtained or made by the Covenanting Unitholder in connection with the Covenanting
Unitholder’s execution, delivery and performance of this Agreement, except for any reports
under Sections 13(d) and 16 of the Exchange Act as may be required in connection with this
Agreement and the transactions contemplated hereby.
(e) Reliance by Parent. The Covenanting Unitholder understands and
acknowledges that the Parent Parties are entering into the Merger Agreement in reliance upon
the Covenanting
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Unitholder’s execution and delivery of this Agreement and the representations,
warranties, covenants and obligations of the Covenanting Unitholder contained herein.
(f) Adequate Information. The Covenanting Unitholder acknowledges that it is a
sophisticated party with respect to the Covered Units and has adequate information
concerning the business and financial condition of the Company to make an informed decision
regarding the transactions contemplated by this Agreement and has, independently and without
reliance upon any of the Parent Parties and based on such information as the Covenanting
Unitholder has deemed appropriate, made its own analysis and decision to enter into this
Agreement. The Covenanting Unitholder acknowledges that no Parent Party has made or is
making any representation or warranty, whether express or implied, of any kind or character
except as expressly set forth in this Agreement.
Section 3.2 Representations and Warranties of Parent. Parent hereby represents and
warrants to the Covenanting Unitholder that the execution and delivery of this Agreement by Parent
and the consummation of the transactions contemplated hereby have been duly authorized by all
necessary action on the part of the board of directors of Parent. The Parent Parties acknowledge
that the Covenanting Unitholder has not made and is not making any representation or warranty of
any kind except as expressly set forth in this Agreement.
ARTICLE 4
OTHER COVENANTS
Section 4.1 Prohibition on Transfers, Other Actions.
(a) The Covenanting Unitholder hereby agrees, except for a Permitted Transfer, not to
(i) Transfer any of the Covered Units, beneficial ownership thereof or any other interest
therein, (ii) enter into any agreement, arrangement or understanding, or take any other
action, that violates or conflicts with, or would reasonably be expected to violate or
conflict with, or would reasonably be expected to result in or give rise to a violation of
or conflict with, the Covenanting Unitholder’s representations, warranties, covenants and
obligations under this Agreement, (iii) take any action that would restrict or otherwise
affect the Covenanting Unitholder’s legal power, authority and right to comply with and
perform its covenants and obligations under this Agreement, (iv) convert any of the Existing
Units or any PIK Units into Common Units, or (v) discuss, negotiate, make an offer or enter
into a Contract, commitment or other arrangement with respect to any matter related to this
Agreement, except, in the case of clause (v) as would not reasonably be expected to prevent
or materially delay the ability of the Covenanting Unitholder to perform its obligations
hereunder. Any Transfer in violation of this provision shall be null and void.
(b) The Covenanting Unitholder agrees that if it attempts to Transfer (other than a
Permitted Transfer), vote or provide any other Person with the authority to vote any of the
Covered Units other than in compliance with this Agreement, the Covenanting Unitholder
shall unconditionally and irrevocably (during the term of this Agreement) instruct the
Company to not, (i) permit any such Transfer on its books and records, (ii) issue a
Book-Entry Interest or a new certificate representing any of the Covered Units, or (iii)
record such vote unless and until the Covenanting Unitholder has complied in all respects
with the terms of this Agreement.
(c) The Covenanting Unitholder agrees that it shall not, and shall cause each of its
controlled Affiliates to not, become a member of a “group” (as that term is used in Section
13(d)
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of the Exchange Act) that the Covenanting Unitholder or such Affiliate is not currently
a part of and that has not been disclosed in a filing with the SEC prior to the date hereof
(other than as a result of entering into this Agreement) for the purpose of opposing or
competing with the transactions contemplated by the Merger Agreement.
(d) The Covenanting Unitholder agrees not to knowingly take any action that would make
any representation or warranty of the Covenanting Unitholder contained herein untrue or
incorrect in any material respect or would reasonably be expected to have the effect of
preventing, impeding or interfering with or adversely affecting in any material respect the
performance by the Covenanting Unitholder of its obligations under or contemplated by this
Agreement.
(e) The Covenanting Unitholder shall and does hereby authorize the Company or its
counsel to notify the Company’s transfer agent that there is a stop transfer order with
respect to the Existing Units (and that this Agreement places limits on the voting and
transfer of such Existing Units).
Section 4.2 Adjustments.
(a) In the event (i) of any dividend, split, recapitalization, reclassification,
combination or exchange of Company Equity Interests or other Company securities on, of or
affecting the Covered Units or the like or any other action that would have the effect of
changing the Covenanting Unitholder’s ownership of any Covered Units or other Company Equity
Interests or other Company securities or (ii) the Covenanting Unitholder becomes the
beneficial or record owner of any additional Company Equity Interests or other Company
securities during the period commencing with the execution and delivery of this Agreement
through the termination of this Agreement pursuant to Section 6.1, then the terms of
this Agreement will apply to such Company Equity Interests or other Company securities held
by the Covenanting Unitholder immediately following the effectiveness of the events
described in clause (i) or the Covenanting Unitholder becoming the beneficial owner thereof,
as described in clause (ii), as though they were Existing Units hereunder.
(b) The Covenanting Unitholder hereby agrees, while this Agreement is in effect, to
promptly notify Parent in writing of the number of any new Company Equity Interests or other
securities of the Company acquired by the Covenanting Unitholder after the date hereof.
Section 4.3 Further Assurances. From time to time, at Parent’s request and without
further consideration, the Covenanting Unitholder shall execute and deliver such additional
documents and take all such further action as may be reasonably necessary to effect the actions
contemplated from the Covenanting Unitholder by this Agreement.
ARTICLE 5
NO SOLICITATION
Section 5.1 No Solicitation. Prior to the termination of this Agreement, the
Covenanting Unitholder, in its capacity as a Unitholder of the Company, shall not, and shall cause
its Representatives not to, directly or indirectly (a) solicit or initiate, or knowingly encourage,
any Acquisition Proposal or any inquiries regarding the submission of any Acquisition Proposal, (b)
participate in any discussions or negotiations regarding, or furnish any Third Party any
confidential information with respect to or in connection with, or knowingly facilitate or
otherwise cooperate with, any Acquisition Proposal or any
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inquiry that may reasonably be expected to lead to an Acquisition Proposal, or (c) enter into
any agreement with respect to any Acquisition Proposal or approve or resolve to approve any
Acquisition Proposal. The Covenanting Unitholder shall, and shall cause its Representatives to,
immediately cease and cause to be terminated all existing discussions or negotiations with any
Third Party conducted prior to the date of this Agreement with respect to any Acquisition Proposal.
Section 5.2 Notification. From and after the date hereof until the later of the
Effective Time and the termination of this Agreement, the Covenanting Unitholder shall promptly
advise Parent orally (and in any event within 24 hours) and as promptly as practicable in writing
of (a) any Acquisition Proposal, (b) the receipt of any request for non-public information related
to a Company Entity, and (c) the receipt of any request for information or any inquiries or
proposals (whether or not written) relating to an Acquisition Proposal or indication or inquiry
(including, if applicable, copies of any written requests, proposals or offers, including proposed
agreements), in each case received by it in its capacity as Unitholder. The Covenanting Unitholder
shall keep Parent informed on a current basis of the status and terms of any such Acquisition
Proposal or indication or inquiry (including, if applicable, any revised copies of written
requests, proposals and offers) and the status of any such discussions or negotiations.
ARTICLE 6
MISCELLANEOUS
Section 6.1 Termination. This Agreement shall remain in effect until the earliest to
occur of (a) the Effective Time, (b) the valid termination of the Merger Agreement in accordance
with its terms (including after any extension thereof), (c) the date of any modification, amendment
or waiver of the Merger Agreement as in effect on the date hereof that adversely affects the
Covenanting Unitholder, (d) a Change in Recommendation, and (e) the written agreement of the
Covenanting Unitholder and Parent to terminate this Agreement. After the occurrence of such
applicable event, this Agreement shall terminate and be of no further force or effect. Nothing in
this Section 6.1 and no termination of this Agreement shall relieve or otherwise limit any
party of liability for any breach of this Agreement occurring prior to such termination.
Section 6.2 No Ownership Interest. Nothing contained in this Agreement shall be
deemed to vest in Parent any direct or indirect ownership or incidence of ownership of or with
respect to any Covered Units. All rights, ownership and economic benefit relating to the Covered
Units shall remain vested in and belong to the Covenanting Unitholder, and Parent shall have no
authority to direct the Covenanting Unitholder in the voting or disposition of any of the Covered
Units, except as otherwise provided herein.
Section 6.3 Publicity. The Covenanting Unitholder hereby permits Parent and the
Company to include and disclose in the Proxy Statement/Prospectus, and in such other schedules,
certificates, applications, agreements or documents as such entities reasonably determine to be
necessary or appropriate in connection with the consummation of the Merger and the transactions
contemplated by the Merger Agreement the Covenanting Unitholder’s identity and ownership of the
Covered Units and the nature of the Covenanting Unitholder’s commitments, arrangements and
understandings pursuant to this Agreement; provided that the Covenanting Unitholder shall have a
reasonable opportunity to review and approve any such disclosure in advance, such approval not to
be unreasonably withheld. Parent and the Company hereby permit the Covenanting Unitholder to
disclose this Agreement and the transactions contemplated by the Merger Agreement in any reports
required under Sections 13(d) and 16 of the Exchange Act.
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Section 6.4 Unitholder Capacity. Notwithstanding anything contained in this Agreement
to the contrary, the representations, warranties, covenants and agreements made herein by the
Covenanting Unitholder are made solely with respect to such Covenanting Unitholder and the Covered
Units. The Covenanting Unitholder is entering into this Agreement solely in its capacity as the
owner of such Covered Units and nothing herein shall (a) limit or affect any actions or omissions
by the Covenanting Unitholder in any other capacity, (b) be construed to prohibit, limit or
restrict any actions or omissions by any Affiliate or direct or indirect owner of the Covenanting
Unitholder, or any of their respective officers, directors, managers, or employees, in each case
not acting as such on behalf of the Covenanting Unitholder, including exercising rights under the
Merger Agreement or (c) be construed to prohibit, limit or restrict the Covenanting Unitholder or
any of its direct or indirect owners or Affiliates, or any of their respective officers, directors,
managers, or employees, from exercising its fiduciary duties to the limited partners of the Company
under applicable Law. Without limiting the generality of the foregoing, Parent acknowledges that
certain members of the Company Board are also affiliated with the Covenanting Unitholder and its
Affiliates, and that such persons in his or her capacity as a member of the Company Board may, in
the exercise of his or her fiduciary duties to the limited partners of the Company under applicable
Law, take actions that would violate this Agreement if such actions were taken by the Covenanting
Unitholder.
Section 6.5 Survival. All of the Covenanting Unitholder’s representations and
warranties contained herein will survive for twelve months after the termination of this Agreement.
The covenants and agreements made herein will survive in accordance with their respective terms.
Section 6.6 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed given when delivered personally or by telecopy (upon telephonic
confirmation of receipt) or on the first Business Day following the date of dispatch if delivered
by a recognized next day courier service. All notices hereunder shall be delivered as set forth
below or pursuant to such other instructions as may be designated in writing by the party to
receive such notice:
| If to Parent or Merger Sub, to: |
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| Xxxxx Corporation 00 Xxxxx Xxxxx, Xxxxx 0000 Xxxxxxx, Xxxxx 00000 Attention: Xxx X. Xxxxxx, Esq. Telecopier No.: (000) 000-0000 |
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| with a copy (which shall not constitute notice) to: |
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| Fulbright & Xxxxxxxx, L.L.P. 0000 Xxxx Xxxxxx, Xxxxx 0000 Xxxxxx, Xxxxx 00000 Attention: Xxxxxx X. Xxxxx, Esq. and Xxxx X. Xxxxxxxxxx, Esq. Telecopier No.: (000) 000-0000 |
||
| If to the Covenanting Unitholder, to: |
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| First Reserve Corporation Xxx Xxxxxxxxx Xxxxx Xxxxxxxxx, Xxxxxxxxxxx 00000 Attention: Xxxx X. Xxxxxxxx Telecopier No.: (000) 000-0000 |
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| with a copy (which shall not constitute notice) to: |
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| First Reserve Corporation 000 Xxxxxx Xxxxxx, Xxxxx 0000 Xxxxxxx, Xxxxx 00000 Attention: Xxxx Xxxxxx Telecopier No.: (000) 000-0000 |
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| with a copy (which shall not constitute notice) to: |
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| Xxxxx Xxxxxxxx Capital Advisors, L.P. 000 Xxxxx Xxxxxx, Xxxxx 0000 Xxxxxxx, Xxxxx 00000 Attention: Xxxxx X. Xxxxx Telecopier No.: (000) 000-0000 |
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| with a copy (which shall not constitute notice) to: |
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| Xxxxxxx Xxxxxxx & Xxxxxxxx LLP 000 Xxxxxxxxx Xxxxxx Xxx Xxxx, Xxx Xxxx 00000 Attention: Xxxxxxx X. Xxxxxxxx, Esq. Telecopier No.: (000) 000-0000 |
Section 6.7 Interpretation. The words “hereof,” “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Section references are to this Agreement unless
otherwise specified. Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation.” The meanings
given to terms defined herein shall be equally applicable to both the singular and plural forms of
such terms. The headings contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement. This Agreement is the product
of negotiation by the parties having the assistance of counsel and other advisers. It is the
intention of the parties that this Agreement not be construed more strictly with regard to one
party than with regard to the others.
Section 6.8 Counterparts. This Agreement may be executed by facsimile and in
counterparts, all of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each of the parties and delivered to the other
parties, it being understood that all parties need not sign the same counterpart.
Section 6.9 Entire Agreement. This Agreement and, solely to the extent of the defined
terms referenced herein, the Merger Agreement, together with the schedule annexed hereto, embody
the complete agreement and understanding among the parties hereto with respect to the subject
matter hereof and supersede and preempt any prior understandings, agreements or representations by
or among the parties, written and oral, that may have related to the subject matter hereof in any
way.
Section 6.10 Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.
(a) THIS AGREEMENT AND THE AGREEMENTS, INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY
AND ALL DISPUTES BETWEEN THE PARTIES UNDER OR RELATING TO THIS AGREEMENT OR THE FACTS AND
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CIRCUMSTANCES LEADING TO ITS EXECUTION, WHETHER IN CONTRACT, TORT OR OTHERWISE, SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE (WITHOUT
REFERENCE TO SUCH STATE’S PRINCIPLES OF CONFLICTS OF LAW). THE DELAWARE COURT OF CHANCERY
(AND IF THE DELAWARE COURT OF CHANCERY SHALL BE UNAVAILABLE, ANY DELAWARE STATE COURT AND
THE FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN THE STATE OF DELAWARE) WILL
HAVE EXCLUSIVE JURISDICTION OVER ANY AND ALL DISPUTES BETWEEN THE PARTIES HERETO, WHETHER IN
LAW OR EQUITY, BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE AGREEMENTS,
INSTRUMENTS AND DOCUMENTS CONTEMPLATED HEREBY OR THE FACTS AND CIRCUMSTANCES LEADING TO ITS
EXECUTION, WHETHER IN CONTRACT, TORT OR OTHERWISE. EACH OF THE PARTIES IRREVOCABLY CONSENTS
TO AND AGREES TO SUBMIT TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH DISPUTE,
IRREVOCABLY CONSENTS TO THE SERVICE OF THE SUMMONS AND COMPLAINT AND ANY OTHER PROCESS IN
ANY OTHER ACTION OR PROCEEDING RELATING TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT,
ON BEHALF OF ITSELF OR ITS PROPERTY, BY DELIVERY IN ANY METHOD CONTEMPLATED BY SECTION
6.6 HEREOF OR IN ANY OTHER MANNER AUTHORIZED BY LAW, AND HEREBY WAIVES, AND AGREES NOT
TO ASSERT IN ANY SUCH DISPUTE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY CLAIM
THAT (i) SUCH PARTY IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS, (ii) SUCH
PARTY AND SUCH PARTY’S PROPERTY IS IMMUNE FROM ANY LEGAL PROCESS ISSUED BY SUCH COURTS OR
(iii) ANY LITIGATION COMMENCED IN SUCH COURTS IS BROUGHT IN AN INCONVENIENT FORUM.
(b) THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT WHICH
ANY PARTY MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY PROCEEDING, LITIGATION OR COUNTERCLAIM
BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY.
IF THE SUBJECT MATTER OF ANY LAWSUIT IS ONE IN WHICH THE WAIVER OF JURY TRIAL IS PROHIBITED,
NO PARTY TO THIS AGREEMENT SHALL PRESENT AS A NON-COMPULSORY COUNTERCLAIM IN ANY SUCH
LAWSUIT ANY CLAIM BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.
FURTHERMORE, NO PARTY TO THIS AGREEMENT SHALL SEEK TO CONSOLIDATE ANY SUCH ACTION IN WHICH A
JURY TRIAL CANNOT BE WAIVED.
Section 6.11 Amendment; Waiver. This Agreement may not be amended except by an
instrument in writing signed by the parties hereto. Each party may waive any right of such party
hereunder by an instrument in writing signed by such party and delivered to Parent and the
Covenanting Unitholder. Notwithstanding the foregoing, no amendment or waiver shall be permitted or
effective without the prior written consent of the Company.
Section 6.12 Remedies. The parties hereto agree that money damages would not be a
sufficient remedy for any breach of this Agreement and 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 hereby agreed that, prior to the valid
termination of this Agreement pursuant to Section 6.1, the parties hereto shall be entitled
to specific performance and injunctive or other equitable relief as a remedy for any such breach,
to prevent breaches of this Agreement, and to
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specifically enforce compliance with this Agreement. In connection with any request for
specific performance or equitable relief, each of the parties hereto hereby waives any requirement
for the security or posting of any bond in connection with such remedy. Such remedy shall not be
deemed to be the exclusive remedy for breach of this Agreement but shall be in addition to all
other remedies available at law or equity to such party. The parties further agree that, by
seeking the remedies provided for in this Section 6.12, no party hereto shall in any
respect waive their right to seek any other form of relief that may be available to them under this
Agreement, including monetary damages in the event that this Agreement has been terminated or in
the event that the remedies provided for in this Section 6.12 are not available or
otherwise are not granted.
Section 6.13 Severability. Any term or provision of this Agreement, or the
application thereof, that is invalid or unenforceable in any situation in any jurisdiction shall
not affect the validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other situation or in any
other jurisdiction. If the final judgment of a Court of competent jurisdiction declares that any
term or provision hereof is illegal, void, invalid or unenforceable, the parties hereto agree that
the Court making such determination shall have the power to limit the term or provision, to delete
specific words or phrases, or to replace any illegal, void, invalid or unenforceable term or
provision with a term or provision that is legal, valid and enforceable and that comes closest to
expressing the intention of the illegal, void, invalid or unenforceable term or provision, and this
Agreement shall be enforceable as so modified. In the event such Court does not exercise the power
granted to it in the prior sentence, the parties hereto shall replace such invalid or unenforceable
term or provision with a valid and enforceable term or provision that will achieve, to the extent
possible, the original economic, business and other purposes of such invalid or unenforceable term
as closely as possible in an acceptable manner in order that the transactions contemplated hereby
be consummated as originally contemplated to the fullest extent possible.
Section 6.14 Expenses. Except as otherwise expressly provided herein or in the Merger
Agreement, all costs and expenses incurred in connection with this Agreement and the actions
contemplated hereby shall be paid by the party incurring such expenses, whether or not the Merger
is consummated.
Section 6.15 Successors and Assigns; Third Party Beneficiaries.
(a) Except in connection with a Permitted Transfer, neither this Agreement nor any of
the rights, interests or obligations hereunder shall be assigned by any of the parties
hereto (whether by operation of Law or otherwise) without the prior written consent of the
other parties; provided, however, that Parent and Merger Sub may transfer or
assign their rights and obligations under this Agreement, in whole or in part or from time
to time in part, to one or more of their Affiliates at any time, provided
further, that such transfer or assignment shall not relieve Parent or Merger Sub of
any of their obligations hereunder. Any assignment in violation of the foregoing shall be
null and void. Subject to the preceding two sentences, this Agreement will be binding upon,
inure to the benefit of and be enforceable by the parties and their respective successors
and assigns.
(b) Other than the Company with respect to Section 6.11 hereof, this Agreement is not
intended to and shall not confer upon any Person (other than the parties hereto) any rights
or remedies hereunder.
[Signature pages follow.]
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IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as of
the date first written above by their respective officers thereunto duly authorized.
| KA FIRST RESERVE, LLC By: KA Fund Advisors, LLC, its manager |
||||
| By: | /s/ Xxxxx X. Xxxxx | |||
| Xxxxx X. Xxxxx, Senior Managing Director | ||||
[Signature page follows.]
[Signature Page 1 of 2 to Support Agreement]
| XXXXX CORPORATION |
||||
| By: | /s/ Xxxxxx X. Xxxx | |||
| Xxxxxx X. Xxxx, Chairman of the Board, | ||||
| President and Chief Executive Officer | ||||
| KSP MERGER SUB, LLC |
||||
| By: | /s/ Xxxxxx X. Xxxx | |||
| Xxxxxx X. Xxxx, President | ||||
| KSP HOLDING SUB, LLC |
||||
| By: | /s/ Xxxxxx X. Xxxx | |||
| Xxxxxx X. Xxxx, President | ||||
| KSP LP SUB, LLC |
||||
| By: | /s/ Xxxxxx X. Xxxx | |||
| Xxxxxx X. Xxxx, President | ||||
[Signature Page 2 of 2 to Support Agreement]
Schedule I
KA First Reserve, LLC
|
19,178,120 Series A Preferred Units |
[Schedule I]
