MUTUAL SUPPORT AGREEMENT
Exhibit 99.3
This
MUTUAL SUPPORT AGREEMENT (the “Agreement”), dated as of August 25, 2008 (the
“Effective Date”) is entered into by and among Newcastle Partners, L.P.
(“Newcastle”), Xxxxxx Xxxx (“Xxxx”), Lorex Investments AG (“Lorex”), Xxxx
Xxxxxxxx (“Xxxxxxxx”) and the Xxxxxxxx Family Investments, L.P. (“Xxxxxxxx
X.X.”) (each of Xxxx, Lorex, Xxxxxxxx and the Xxxxxxxx X.X., a “Selling Party”
and, collectively, the “Selling Parties”).
WHEREAS,
concurrently with the execution and delivery of this Agreement, the Selling
Parties, together with New Century Equity Holdings Corp. (including any
successor thereto, “New Century”), Xxxxxxxxxx International, Ltd. (“Xxxxxxxxxx
International”) and certain persons and entities affiliated with New Century and
Xxxxxxxxxx International, are entering into an agreement (the “Purchase
Agreement”), which Purchase Agreement provides, among other things, for the
merger of Xxxxxxxxxx International with a subsidiary of New Century and the sale
of the outstanding equity and/or membership interests of entities affiliated
with Xxxxxxxxxx International to New Century;
WHEREAS,
as of the date hereof, Newcastle is the beneficial owner of such number of
shares of common stock of New Century, par value $.01 (the “NCEH Common Stock”),
opposite Newcastle’s name set forth on Exhibit I hereto (shares of NCEH Common
Stock beneficially owned by Newcastle, the “Newcastle NCEH
Shares”);
WHEREAS,
pursuant to the terms of the Purchase Agreement, upon the Closing (as defined in
the Purchase Agreement) the Selling Parties will be beneficial owners of shares
of NCEH Common Stock (shares of Common Stock beneficially owned by the Selling
Parties and any of their Affiliates at any time following the Closing, the
“Seller NCEH Shares”);
WHEREAS,
as a material inducement and condition to their respective willingness to enter
into the Purchase Agreement and/or this Agreement, the Selling Parties and
Newcastle have required that certain matters be agreed and set forth herein;
and
WHEREAS,
capitalized terms used but not otherwise defined herein shall have the
respective meanings attributed to them in the Purchase Agreement.
NOW,
THEREFORE, in consideration of the foregoing and the agreements set forth below,
the parties hereto agree as follows:
I.
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Board
Nominations.
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A.
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Newcastle
and each of the Selling Parties agree to use their commercially reasonable
efforts to cause their representatives on the Board of Directors of New
Century to vote to nominate and recommend the election of the following
persons to be members of the Board of Directors at each meeting of New
Century’s Board of Directors, and at any adjournment or adjournments
thereof, or pursuant to any consent in lieu of a meeting, relating to the
nomination of directors:
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1.
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Three
NP Representatives. An “NP Representative” means (i) Xxxx X.
Xxxxxxx (“Xxxxxxx”), (ii) any then current employee of Newcastle,
Newcastle Capital Management, L.P. or their affiliated investment funds or
management companies (the individuals described in this clause
(ii), combined with Xxxxxxx, the “Newcastle Employee Representatives”) and
(iii) any other individual designated in writing by Newcastle as an “NP
Representative”.
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2.
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One
Xxxx Representative. The “Xxxx Representative” means (i) with
respect to an individual to be elected at the annual meeting, an
individual (who may be Xxxx) designated in writing by Xxxx or (ii) with
respect to an individual to be appointed to fill any vacancy on the Board
of Directors caused by the removal of the Xxxx Representative, an
individual (who may be Xxxx) designated in writing by Xxxx;
and
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3.
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One
Xxxxxxxx Representative. The “Xxxxxxxx Representative” means
(i) with respect to an individual to be elected at the annual meeting, (a)
an individual (who may be Xxxxxxxx) designated in writing by Xxxxxxxx or
(b) if no such designation was made, Xxxxx Xxxxx, or (ii) with respect to
an individual to be appointed to fill any vacancy on the Board of
Directors caused by the removal of the Xxxxxxxx Representative, an
individual (who may be Xxxxxxxx) designated in writing by
Xxxxxxxx. The “Seller Representative” shall mean either the
Xxxx Representative or the Xxxxxxxx Representative and the “Seller
Representatives” shall mean both the Xxxxxxxx Representative and the Xxxx
Representative.
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B.
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In
the event that New Century’s Board of Directors will name persons to its
Board of Directors without stockholder approval, Newcastle and each of the
Selling Parties agree to use their commercially reasonable efforts to
cause their representatives on the Board of Directors of New Century to
vote to name directors such that the composition of the Board of Directors
includes the persons provided for in Section
IA. In the event of a vacancy on New Century’s Board of
Directors caused by the death, incapacity, resignation or removal of an
individual designated pursuant to Section IA and which the Board of
Directors will fill, Newcastle and each of the Selling Parties agree to
use their commercially reasonable efforts to cause their representatives
on the Board of Directors of New Century to vote to appoint a director
designated by the relevant party who would be entitled to select the
nominee pursuant to Section IA.
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C.
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Each
party designating a nominee to New Century’s Board of Directors pursuant
to Section IA shall provide written notice to New Century of its
designation at least ten (10) days prior to the date the New Century Board
of Directors is scheduled to make such
nominations.
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D.
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For
a period of three (3) years after the Effective Date, the parties hereto
agree that they will vote to, and that they will use their commercially
reasonable efforts to cause their representatives to the New Century Board
of Directors to, vote to maintain the size of its Board of Directors at no
more than nine (9) persons, unless the NP Representatives, the Xxxx
Representatives and the Xxxxxxxx Representatives agree that the Board of
Directors can be expanded in excess of nine (9). The parties
understand and agree that the size of the New Century Board of Directors
as of the closing of the transactions under the Purchase Agreement shall
be seven (7) or eight (8) (as determined by New
Century).
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E.
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The
provisions of this Section I shall become effective only upon the
occurrence of the Closing
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II.
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Voting of Newcastle
NCEH Shares for Stockholder
Approvals.
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A.
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Newcastle
hereby agrees to vote (or cause to be voted) at any meeting of the
stockholders of New Century, and at any adjournment or adjournments
thereof, or pursuant to any consent in lieu of a meeting, all of the
Newcastle NCEH Shares which Newcastle and its affiliates have the right to
so vote in favor of the Stockholder Approvals (as defined in the Purchase
Agreement) and any actions required in furtherance
thereof.
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B.
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In
addition, from the Effective Date hereof and until the termination of this
Agreement pursuant to Section X, Newcastle hereby agrees to vote (or cause
to be voted) at any meeting of the stockholders of New Century, and at any
adjournment or adjournments thereof, or pursuant to any action by written
consent in lieu of a meeting, all of the Newcastle NCEH Shares which
Newcastle and its affiliates have the right to so vote against, and agrees
to cause the NP Representatives to vote against, any action or agreement
that could reasonably be expected to result in a breach in any material
respect of any covenant, representation or warranty or any other
obligation of New Century under the Purchase Agreement or any other
material binding agreement entered into in connection
therewith.
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C.
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In
furtherance of Newcastle’s agreement above, Newcastle hereby irrevocably
(until the Closing Date) grants to, and appoints, Xxxxx Xxxxx (agent for
the Selling Parties) and any designee of the Selling Parties, as
Newcastle’s attorney, agent and proxy, with full power of substitution, to
vote and otherwise act with respect to all of Newcastle’s Newcastle NCEH
Shares at any meeting of the stockholders of New Century (whether annual
or special and whether or not an adjourned or postponed meeting), and in
any action by written consent of the stockholders of New Century, on the
matters and in the manner specified in Section II-A and Section II-B
above. THE
FOREGOING PROXY AND POWER OF ATTORNEY ARE IRREVOCABLE (UNTIL THE CLOSING
DATE) AND COUPLED WITH AN INTEREST SUFFICIENT IN LAW TO SUPPORT AN
IRREVOCABLE PROXY. If the transactions under the
Purchase Agreement are consummated, the proxy set forth in this Section
II-C shall be revoked and shall terminate as of the Closing Date; provided
that the foregoing shall not affect the obligations set forth in Section
II-B above. The obligations set forth in Section II-A shall
terminate as of the Closing Date.
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D.
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Notwithstanding
anything to the contrary, nothing contained in this Agreement shall limit
the rights and obligations of any officer of Newcastle in his capacity as
a director of New Century from taking any action in his capacity as a
director of New Century that the New Century’s Board of Directors is
expressly permitted to take pursuant to the terms of the Purchase
Agreement, and no such action taken by an officer of Newcastle in any such
capacity shall be deemed to constitute a breach of any provision of this
Agreement.
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III.
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Voting of Sellers’
NCEH Shares Consistent with Article
I-A.
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A.
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At
any vote of the stockholders of New Century (whether at any meeting, or at
any adjournment or adjournments thereof, or pursuant to any action by
written consent in lieu of a meeting) pursuant to which New Century
directors are to be elected, each Selling Party agrees to vote (or cause
to be voted) all Seller NCEH Shares which such Selling Party has the right
to vote in favor of the required number of NP Representatives, Xxxx
Representatives and Xxxxxxxx Representatives pursuant to Article I-A or,
if the entire Board is not then up for election, in favor of the
applicable individual(s) such that the composition of the Board of
Directors would include the required number of NP
Representatives, Xxxx Representatives and Xxxxxxxx Representatives
pursuant to Article I-A.
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B.
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Selling
Parties shall vote, and shall use commercially reasonable efforts to cause
the Seller Representatives and any other representative thereof to so
vote, in favor of (a) the nomination and/or appointment of individuals to
the Board of Directors in a manner consistent with the provisions of
Section I-A above and (b) if Newcastle so requests in writing to the
Selling Parties, the calling of a meeting or other action to effect the
removal of such NP Representative(s) requested by Newcastle, in any New
Century Board of Directors meeting in which any Selling Party, the Seller
Representative or any other representative of Selling Party has a
vote.
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C.
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Removal;
Amendments:
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1.
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At
any vote of the stockholders of New Century (whether at any annual,
special or other stockholder meeting, or at any adjournment or
adjournments thereof, or pursuant to any consent in lieu of a meeting)
pursuant to which a NP Representative is to be removed, each Selling Party
agrees to vote all Seller NCEH Shares which such Selling Party has the
right to so vote in favor of the removal of such individual, if Newcastle
votes its Newcastle NCEH Shares in favor of such
removal.
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2.
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The
Selling Parties shall not propose, and shall use their respective
commercially reasonable efforts not to permit (and shall vote all Seller
NCEH Shares against), any amendment to New Century’s Certificate of
Incorporation or By-laws or the adoption of any other corporate measure,
which frustrates or circumvents the purpose or intent of the foregoing
provisions of this Section III, including but not limited to any amendment
that conflicts with or otherwise restricts any provisions of this Section
III. The Selling Parties further agree not to seek to advise, encourage or
influence (or form, join or in any way participate in any “group” or act
in concert with) any other Person with respect to the voting of any New
Century voting securities in a manner that frustrates or circumvents the
purpose or intent of this Section
III.
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D.
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Any
vote required to be cast or consent required to be executed pursuant to
this Section III shall be cast or executed in accordance with the
applicable procedures relating thereto so as to ensure that it is duly
counted for purposes of determining that a quorum is present (if
applicable) and for purposes of recording the results of that vote or
action by written consent.
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E.
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The
provisions of this Section III shall be effective only upon the occurrence
of the Closing.
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IV.
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Voting of Newcastle
NCEH Shares Consistent with Article
I-A.
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A.
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At
any vote of the stockholders of New Century (whether at any meeting, or at
any adjournment or adjournments thereof, or pursuant to any consent in
lieu of a meeting) pursuant to which New Century directors are to be
elected, Newcastle agrees to vote (or cause to be voted) all Newcastle
NCEH Shares which Newcastle has the right to so vote (i) in favor of the
required number of NP Representatives, Xxxx Representatives and Xxxxxxxx
Representatives pursuant to Article I-A or, if the entire Board is not
then up for election, in favor of the applicable individual(s) such that
the composition of the Board of Directors would include the required
number of NP Representatives, Xxxx Representatives and Xxxxxxxx
Representatives pursuant to Article
I-A.
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B.
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Newcastle
shall vote, and shall use commercially reasonable efforts to cause the NP
Representatives and any other representative thereof to so vote, in favor
of (a) the nomination and/or appointment of individuals to the Board of
Directors in a manner consistent with the provisions of Section I-A above
and (b) if a Selling Party so requests in writing to Newcastle, the
calling of a meeting or other action to effect the removal of the
representative of such Selling Party requested by such Selling Party, in
any New Century Board of Directors meeting in which Newcastle, the NP
Representatives or any other representative of Newcastle has a
vote.
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C.
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Removal;
Amendments
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1.
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At
any vote of the stockholders of New Century (whether at any annual,
special or other stockholder meeting, or at any adjournment or
adjournments thereof, or pursuant to any consent in lieu of a meeting)
pursuant to which any individual that was an Xxxx Representative or a
Xxxxxxxx Representative at the time of his election to the Board of
Directors is to be removed, Newcastle agrees to vote all Newcastle NCEH
Shares which Newcastle has the right to so vote in favor of the removal of
such individual, if Xxxx or Xxxxxxxx, as applicable, votes in favor of
such removal.
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2.
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Newcastle
shall not propose, and shall use its respective commercially reasonable
efforts not to permit (and shall vote all Newcastle NCEH Shares against),
any amendment to New Century’s Certificate of Incorporation or By-laws or
the adoption of any other corporate measure, which frustrates or
circumvents the purpose or intent of the foregoing provisions of this
Section IV, including but not limited to any amendment that conflicts with
or otherwise restricts any provisions of this Section
IV. Newcastle further agree not to seek to advise, encourage or
influence (or form, join or in any way participate in any “group” with or
act in concert with) any other Person with respect to the voting of any
New Century voting securities in a manner that frustrates or circumvents
the purpose or intent of this Section
IV.
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D.
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Any
vote required to be cast or consent required to be executed pursuant
hereto shall be cast or executed in accordance with the applicable
procedures relating thereto so as to ensure that it is duly counted for
purposes of determining that a quorum is present (if applicable) and for
purposes of recording the results of that vote or
consent.
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E.
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The
provisions of this Section IV shall be effective only upon the occurrence
of the Closing.
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V.
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Representations and
Warranties of Newcastle. Newcastle represents and
warrants to the Selling Parties as
follows:
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A.
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Binding
Agreement. Newcastle is a limited partnership duly
formed, validly existing and in good standing under the laws of the State
of Texas. Newcastle has the capacity to execute and deliver
this Agreement and to consummate the transactions contemplated
hereby. The execution and delivery of this Agreement by
Newcastle and the consummation by Newcastle of the transactions
contemplated hereby have been duly and validly authorized by all necessary
action of Newcastle, and no other action or proceedings are necessary to
authorize the execution, delivery and performance of this Agreement by
Newcastle and the consummation by Newcastle of the transactions
contemplated hereby. Newcastle has duly and validly executed
and delivered this Agreement and this Agreement constitutes a legal, valid
and binding obligation of Newcastle, enforceable against Newcastle in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization or other similar laws
affecting creditors’ rights generally and by general equitable
principles.
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B.
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No
Conflict. Neither the execution and delivery of this
Agreement by Newcastle, the consummation by Newcastle of the transactions
contemplated hereby, the performance by Newcastle of its obligations
hereunder nor the compliance by Newcastle with any provisions hereof, will
(i) result in a violation or breach of, or constitute (with or without due
notice or lapse of time or both) a default under (A) its partnership or
limited liability company agreement or other organizational documents or
(B) any material contract, agreement, instrument, commitment,
arrangement or understanding to which Newcastle is a party, or result in
the creation of any Lien with respect to Newcastle’s Newcastle NCEH
Shares, (ii) violate or conflict with any law, rule, regulation, writ,
judgment, injunction or decree applicable to Newcastle or the
Newcastle NCEH Shares or (iii) require any consent, authorization or
approval with respect to Newcastle of any Person, including any
Governmental Authority, except in the case of clause (i)(B), (ii) or (iii)
for violations, breaches or defaults that would not in the aggregate
materially impair the ability of Newcastle to perform its obligations
hereunder.
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C.
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Ownership of
Shares. Newcastle is the “beneficial owner” (as defined
in Rule 13d-3 under the Exchange Act, which meaning will apply for all
purposes of this Agreement) of the Newcastle NCEH Shares listed opposite
Newcastle’s name on Exhibit I hereto, free and clear of any Liens
(including any restriction on the right to vote, sell or otherwise dispose
of such Newcastle NCEH Shares), except as may exist by reason of this
Agreement or pursuant to applicable law. Except as provided for
or disclosed in this Agreement, the Purchase Agreement and the
transactions and other agreements contemplated hereby and thereby, there
are no outstanding options or other rights to acquire from Newcastle, or
obligations of Newcastle to sell or to dispose of, any Newcastle NCEH
Shares held by Newcastle or other equity interests of any kind in New
Century. As of the date of this Agreement, the number of shares
set forth opposite Newcastle’s name on Exhibit I hereto represents all of
the shares of capital stock of New Century beneficially owned by
Newcastle.
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D.
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The
representations and warranties of New Century in the Purchase Agreement
are true and correct in all material respects as of the date
hereof.
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VI.
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Representations and
Warranties of the Selling Parties. Each Selling Party
represents and warrants to Newcastle as
follows:
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A.
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Binding
Agreement. Such Selling Party, if it is not a natural
person, is a limited partnership, limited liability company or other
business entity duly formed, validly existing and in good standing under
the laws of the State or territory of its formation. Such
Selling Party has the capacity to execute and deliver this Agreement and
to consummate the transactions contemplated hereby. The
execution and delivery of this Agreement by such Selling Party and the
consummation by such Selling Party of the transactions contemplated hereby
have been duly and validly authorized by all necessary action of such
Selling Party, and no other action or proceedings are necessary to
authorize the execution, delivery and performance of this Agreement by
such Selling Party and the consummation by such Selling Party of the
transactions contemplated hereby. Such Selling Party has duly
and validly executed and delivered this Agreement and this Agreement
constitutes a legal, valid and binding obligation of such Selling Party,
enforceable against such Selling Party in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization or other similar laws affecting creditors’
rights generally and by general equitable
principles.
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B.
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No
Conflict. Neither the execution and delivery of this
Agreement by such Selling Party, the consummation by such Selling Party of
the transactions contemplated hereby, the performance by such Selling
Party of its obligations hereunder nor the compliance by such Selling
Party with any provisions hereof, will (i) result in a violation or breach
of, or constitute (with or without due notice or lapse of time or both) a
default under (A) its partnership or limited liability company agreement
or other organizational documents (if such Selling Party is not a natural
person) or (B) any material contract, agreement, instrument,
commitment, arrangement or understanding to which such Selling Party is a
party, or result in the creation of any Lien with respect to such Selling
Party’s Shares, (ii) violate or conflict with any law, rule, regulation,
writ, judgment, injunction or decree applicable to such Selling
Party or such Selling Party’s Shares or (iii) require any consent,
authorization or approval with respect to such Selling Party of any
Person, including any Governmental Authority, except in the case of clause
(i)(B), (ii) or (iii) for violations, breaches or defaults that would not
in the aggregate materially impair the ability of such Selling Party to
perform its or his obligations
hereunder.
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VII.
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Transfer and Other
Restrictions.
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A.
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Prohibited Transfers by
Newcastle Prior to Closing. Prior to the Closing,
Newcastle agrees not to sell, sell short, transfer (including gift),
pledge, encumber, assign or otherwise dispose (whether by sale,
liquidation, dissolution, dividend, distribution or otherwise) of, or
enter into any contract, option or other arrangement or understanding with
respect to the sale, transfer, pledge, encumbrance, assignment or other
disposition of, any Newcastle NCEH Shares or any interest contained
therein (each a “Transfer”) other than pursuant to this Agreement, unless
the Person to which such Newcastle NCEH Shares are to be Transferred
expressly agrees to be bound by this Agreement in a written instrument in
form and substance reasonably satisfactory to the Selling
Parties.
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B.
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Other Prohibited Transfers by
Newcastle. At any time this Agreement remains in effect,
Newcastle agrees not to:
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1.
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grant
any proxies or power of attorney or enter into a voting agreement or other
arrangement relating to the matters covered by Section II or Section IV,
with respect to any Newcastle NCEH Shares other than this
Agreement;
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2.
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deposit
any Newcastle NCEH Shares into a voting trust;
or
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3.
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knowingly,
directly or indirectly, take or cause the taking of any other action that
would restrict, limit or interfere with the performance of Newcastle’s
obligations hereunder or the transactions contemplated hereby, excluding
any bankruptcy filing.
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C.
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Certain Prohibited Transfers
by Selling Parties. At any time this Agreement remains
in effect, each Selling Party agrees not
to:
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1.
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grant
any proxies or power of attorney or enter into a voting agreement or other
arrangement relating to the matters covered by Section III hereof, with
respect to any Seller NCEH Shares other than this
Agreement;
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2.
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deposit
any Seller NCEH Shares into a voting trust;
or
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3.
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knowingly,
directly or indirectly, take or cause the taking of any other action that
would restrict, limit or interfere with the performance of such Selling
Party’s obligations hereunder or the transactions contemplated hereby,
excluding any bankruptcy filing.
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D.
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Additional
Shares. In the event (i) of any stock dividend, stock
split, recapitalization, reclassification, combination or exchange of
shares of capital stock of New Century on, of or affecting any parties’
shares of New Century or (ii) any party hereto shall become the beneficial
owner or record owner of any additional shares of capital stock of New
Century, or other securities entitling the holder thereof to vote or give
consent with respect to the matters set forth in Sections I-IV, then the
terms of this Agreement shall apply to the shares of capital stock or
other securities of New Century held by the applicable party immediately
following the effectiveness of the events described in clause (i), or such
party becoming the beneficial or record owner thereof, as described in
clause (ii), as the case may be. Newcastle and each Selling
Party hereby agree to promptly notify the other of any new New Century
shares acquired by such party after the date
hereof.
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E.
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Tag-Along
Right
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1.
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If,
following the Closing Date and until the first registration statement
containing Registrable Securities (as that term is defined the
Registration Rights Agreement, by and among New Century and the Selling
Parties, dated the date hereof) is declared effective (the “Registration
Trigger Date”), Newcastle or any of its affiliates desires to transfer,
directly or indirectly, any Newcastle NCEH Shares to a third-party
purchaser in a transaction or series of related transactions involving the
transfer of NCEH Shares owned by Newcastle or its affiliates
representing in the aggregate at least twenty percent (20%) of the shares
held by Newcastle at such time, Newcastle shall first give not less than
twenty (20) calendar days prior written notice to each of the Selling
Parties (the “Co-Sale Members”). Such notice (the “Co-Sale
Notice”) shall set forth the terms and conditions of such proposed
transfer, including the name of the proposed transferee, the number of
shares proposed to be sold (the “Co- Sale Shares”), the purchase price per
share proposed to be paid therefor and the payment terms and type of
transfer to be effectuated.
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2.
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Within
ten (10) calendar days of delivery of the Co-Sale Notice by Newcastle,
each Co-Sale Member shall, by written notice to Newcastle, have the
opportunity and right to sell to the proposed transferee in such proposed
transfer (upon the same terms and conditions as Newcastle, subject to
Section 7-E(1)) up to that number of shares of NCEH Common Stock owned by
such Co-Sale Member as shall equal the product of (x) a fraction, the
numerator of which is the number of Co-Sale Shares and the denominator of
which is the aggregate number of shares of NCEH Common Stock owned of
record by Newcastle as of the date of the Co-Sale Notice, multiplied by
(y) the number of shares of NCEH Common Stock owned of record by such
Co-Sale Member as of the date of the Co-Sale Notice. Such
written notice shall state the aggregate number of shares of NCEH Common
Stock that such Co-Sale Member proposes to include in such
Transfer.
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3.
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If
any Co-Sale Member exercises its rights pursuant to this Section 7-E, then
Newcastle will attempt to obtain the same agreements and commitments from
the proposed transferee for the benefit of any such Co-Sale Member as
Newcastle obtained from the proposed transferee in respect of its transfer
of shares. To the extent Newcastle cannot obtain such
agreements and commitments from such proposed transferee, Newcastle and
the Co-Sale Members shall reduce the number of shares being sold by
Newcastle and Co-Sale Members such that Newcastle and the Co-Sale Members
sell a number of shares as is determined by multiplying (x) a fraction,
the numerator of which is equal to the number of shares each applicable
person (whether Newcastle or a Co-Sale Member) owns and the denominator of
which is the aggregate of the number of NCEH shares owned by Newcastle and
any Co-Sale Members that elected to participate in such Co-Sale times (y)
the total number of shares that such proposed transferee is in fact
acquiring from Newcastle and Co-Sale
Members.
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4.
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The
rights under this Section 7-E shall terminate on the Registration Trigger
Date.
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VIII.
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Public
Announcements.
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The
parties shall not issue, or cause the publication of, any press release or other
public announcement with respect to the terms of this Agreement without the
prior approval of the other parties hereto, except to the extent required by law
or by any listing agreement with, or the policies of, a national securities
exchange and, in any such event, after reasonable prior notice to the other
party hereto.
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IX.
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Specific
Enforcement.
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The
parties hereto agree that irreparable damage would occur in the event that any
of the provisions of this Agreement were not performed in accordance with the
terms hereof or were otherwise breached and that each party shall be entitled to
specific performance of the terms hereof in addition to any other remedy which
may be available at law or in equity. The prevailing party in any
legal proceeding based upon this Agreement shall be entitled to reasonable
attorneys’ fees and court costs, in addition to any other recoveries allowed by
law.
X.
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Termination.
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A.
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This
Agreement shall terminate (the “Termination Date”) on the earlier to occur
of (i) the date that a termination occurs pursuant to any two of the
following three sections: XIB(i), XIB(ii) and XIB(iii), (ii)
upon the written agreement of the Selling Parties and Newcastle to
terminate this Agreement or (iii) termination of the Purchase
Agreement.
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B.
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The
rights and obligations of the parties hereto under Sections
I, III and IV shall terminate to the extent provided in the
following clauses: (i) with respect to the rights and obligations of (or
with respect to) Xxxx, Lorex and the Xxxx Representative (including but
not limited Xxxx’x right to designate the Xxxx Representative pursuant to
Article I-A and any requirements of the other parties to vote for, or
cause their representatives or designees to vote for, the nomination or
election of any representative of Xxxx to New Century’s Board of Directors
pursuant to Articles III and IV), on the date that Xxxx and his Affiliates
own, in the aggregate, less than 5% of the outstanding shares of NCEH
Common Stock, (ii) with respect to the rights and obligations of (or with
respect to) Xxxxxxxx, the Xxxxxxxx X.X. and the Xxxxxxxx Representative
(including but not limited Xxxxxxxx’x right to designate the Xxxxxxxx
Representative pursuant to Article I-A and any requirements of the other
parties to vote for, or cause their representatives or designees to vote
for, the nomination or election of any representative of Xxxxxxxx to New
Century’s Board of Directors pursuant to Articles III and IV), on the date
that Xxxxxxxx and his Affiliates own, in the aggregate, less than 5% of
the outstanding shares of NCEH Common Stock, and (iii) with respect to the
rights and obligations of (or with respect to) Newcastle and the NP
Representatives, the date Newcastle and its Affiliates own less than 5% of
the outstanding shares of NCEH Common Stock (including but not limited
Newcastle’s right to designate the NP Representatives pursuant to Article
I-A and any requirements of the other parties to vote for, or cause their
representatives or designees to vote for, the nomination or election of
any representative of Newcastle to New Century’s Board of Directors
pursuant to Articles III and IV).
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C.
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Notwithstanding
the foregoing, no termination of this Agreement (or obligations hereunder)
in accordance with this Section X shall relieve any party from liability
for any intentional or material breach of its obligations hereunder
committed prior to such
termination.
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11
XI.
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Notices.
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All
notices, requests, demands, waivers and other communications required or
permitted to be given under this Agreement to any party hereunder shall be in
writing and deemed given if addressed as provided below (or at such other
address as the addressee shall have specified by notice actually received by the
addressor) and if either (a) actually delivered in fully legible form, to such
address, (b) in the case of any nationally recognized express mail service, one
(1) day shall have elapsed after the same shall have been deposited with such
service, or (c) if by fax, on the day on which such fax was sent, provided that
a copy is sent the same day by overnight courier or express mail
service.
If to any
of the Selling Parties, to the applicable Selling Party at the address set forth
on Exhibit
A:
with a
copy to:
Loeb
& Loeb LLP
000 Xxxx
Xxx
Xxx Xxxx,
Xxx Xxxx 00000
Telephone:
(000) 000-0000
Facsimile:
(000) 000-0000
Attn:
Xxxxx X. Xxxxxxxxxx
And a
copy to:
Xxxxxxxxxxxx
XxXxxxx Xxxxxxx & Xxxxxx
Four
Gateway Center, Suite 2200
000
Xxxxxxx Xxxxxx
Xxxxxxxxxx,
XX 00000
Attn: H.
Yale Gutnick
If to
Newcastle:
000
Xxxxxxxx Xxxxx, Xxxxx 0000
Xxxxxx,
Xxxxx 00000
Attention:
Xxxx Xxxxx, Esq.
Tel:
000.000.0000
Fax:
000.000.0000
with a
copy to:
Xxxxxx
Xxxxxxxx Frome Xxxxxxxxxx & Xxxxxxx LLP
Park
Avenue Tower
00 Xxxx
00xx Xxxxxx
Xxx Xxxx,
XX 00000
Attention:
Xxxxx Xxxxxxx, Esq.
Tel:
000.000.0000
Fax:
212.451-2222
12
XII.
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Affiliates.
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To the
extent any Affiliates of any of the parties hereto own shares of NCEH Common
Stock, such persons shall be deemed to be required to vote such shares of NCEH
Common Stock in the same manner as its Affiliate that is a party to this
Agreement.
XIII.
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Transfers.
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For the
avoidance of doubt, nothing in this Agreement will prevent any party from
transferring its NCEH Common Stock after the Closing.
XIV.
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Entire
Agreement.
|
This
Agreement (including the documents and instruments referred to herein)
constitutes the entire agreement and supersedes all other prior agreements and
understandings, both written and oral, among the parties, or any of them, with
respect to the subject matter hereof.
XV.
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Amendments.
|
This
Agreement may not be modified, amended, altered or supplemented except upon the
execution and delivery of a written agreement executed by the parties
hereto.
XVI.
|
Successors and
Assigns.
|
This
Agreement shall not be assigned by operation of law or otherwise without the
prior written consent of the other parties hereto, except that Newcastle may
assign its rights under this Agreement to any Affiliate of
Newcastle. This Agreement will be binding upon, inure to the benefit
of and be enforceable by each party and such party’s respective heirs,
beneficiaries, executors, representatives and permitted assigns.
XVII.
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Counterparts.
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This
Agreement may be executed by facsimile and in two or more counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument.
XVIII.
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Governing
Law.
|
This
Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware (regardless of the laws that might otherwise govern under
applicable principles of conflicts of laws thereof).
XIX.
|
Severability.
|
Any term
or provision of this Agreement which is invalid or unenforceable in any
jurisdiction shall, as to that jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without rendering invalid or unenforceable
the remaining terms and provisions of this Agreement or affecting the validity
or enforceability of any of the terms or provisions of this Agreement in any
other jurisdiction. If any provision of this Agreement is so broad as
to be unenforceable, the provision shall be interpreted to be only so broad as
is enforceable.
13
XX.
|
Headings.
|
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.
XXI.
|
Further
Assurances.
|
Each
party shall, upon request of the other parties hereto, execute and deliver any
additional documents and take such actions as may reasonably be necessary to
carry out the provisions hereof.
XXII.
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Time of the
Essence.
|
With
regard to all dates and time periods set forth or referred to in this Agreement,
time is of the essence.
XXIII.
|
Remedies
Cumulative.
|
All
rights and remedies under this Agreement are cumulative, not exclusive, and
shall be in addition to all rights and remedies available to any party at law or
in equity.
14
IN
WITNESS WHEREOF, this Agreement has been duly executed and delivered by the
undersigned on the day and year first written above.
NEWCASTLE
PARTNERS, L.P.
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|||
By:
|
/s/ Xxxx Xxxxxxx | ||
Name:
|
Xxxx Xxxxxxx | ||
Title:
|
Chief
Executive Officer, Newcastle Capital Management, L.P.,
its General Partner
|
/s/ Xxxxxx Xxxx | |
Name: Xxxxxx
Xxxx
|
LOREX
INVESTMENTS AG
|
|||
By:
|
/s/ Xxxxx Xxxxx | ||
Name:
|
Xxxxx Xxxxx | ||
Title:
|
Board of Directors |
/s/ Xxxx Xxxxxxxx | |
Name: Xxxx
Xxxxxxxx
|
XXXXXXXX
FAMILY INVESTMENTS, L.P.
|
|||
By:
|
/s/ Xxxx Xxxxxxxx | ||
Name:
|
Xxxx Xxxxxxxx | ||
Title:
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General Partner |
15
Exhibit I to the Mutual
Support Agreement
Shareholder
|
Shares
of Common Stock
|
Newcastle
Partners, L.P.
|
19,381,000
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