Document:

exh1072_021511.htm

 

Exhibit 10.72

 

BUNGE AGREEMENT - EQUITY MATTERS

THIS AGREEMENT is executed this 26th day of August, 2009 by Southwest Iowa Renewable Energy, LLC, an Iowa limited liability company (“SIRE”), for the benefit of Bunge N.A. Holdings, Inc., a Delaware corporation (“Bunge N.A.”), for and in consideration of Bunge N.A.’s agreement to extend credit to SIRE pursuant to that certain Term Loan Note in the principal amount of Twenty-Seven Million One Hundred Six Thousand Seventy Eight Dollars and Fifty-Five Cents ($27,106,078.55) of even date herewith (the “Term Loan Note”).

NOW, THEREFORE, SIRE hereby agrees as follows:

1.            Proceeds from Equity Offerings.  During such time as Bunge N.A., or any affiliate of Bunge N.A., owns Series U Units of SIRE, or holds any right to acquire Series U Units pursuant to the terms of the Term Loan Note, SIRE shall not sell or otherwise issue any membership interests or other equity interests in SIRE without (a) giving Bunge N.A. (or its affiliate, as applicable) at least thirty (30) days prior written notice thereof (“Offer Notice”), and (b) obtaining the consent and approval of SIRE’s Directors and Members (in each case to the extent required by SIRE’s Amended and Restated Operating Agreement dated July 17, 2009, as such may be amended, supplemented or restated hereafter) to, and SIRE committing in writing in favor of Bunge N.A. (or its affiliate, as applicable) to, apply seventy-six percent (76%) of the proceeds received by SIRE from each such sale or issuance of such membership interests or other equity interests to repurchase Series U Units from Bunge N.A. (or any applicable affiliate) at a price no less than $3,000 per Series U Unit.  SIRE acknowledges that its obligations to repurchase Series U Units pursuant to this section apply to all Series U Units held by Bunge N.A., or an affiliate of Bunge N.A., as of the date of the Offer Notice and any Series U Units which may be acquired by Bunge N.A. or its affiliates after the date of the Offer Notice upon exercise of the rights granted under the Term Loan Note.

2.           Preemptive Right to Purchase Units.  Bunge N.A. shall have the right to purchase its Pro Rata Share of any Units (other than any Series C Units issued to ICM, Inc. pursuant to that certain Series C Unit Issuance Agreement, as amended by a First Amendment dated March 7, 2007 and a Second Amendment dated August 1, 2009, and as may be further amended, restated or supplemented from time to time) that SIRE may from time to time issue after the date of this Agreement.  Bunge N.A.’s “Pro Rata Share” for purposes of this right is the ratio of (a) the number of Series B Units, Series U Units and any other Units of SIRE then owned by Bunge N.A. or any of its affiliates, and (b) the total number of Units of SIRE then outstanding.  If SIRE proposes to issue any Units, it shall give Bunge N.A. written notice of its intention to issue such Units (a “Unit Notice”), describing the purchase price and the general terms upon which SIRE proposes to issue such Units.  Bunge N.A. shall have ten (10) business days from the date of actual receipt of any such Unit Notice to agree in writing to purchase up to its Pro Rata Share of Units upon the terms contained in the Notice.  Bunge N.A. shall exercise such right by giving written notice to SIRE and stating therein the quantity of Units to be purchased (not to exceed Bunge N.A.’s Pro Rata Share).  If Bunge N.A. fails to so agree in writing within such ten (10) day period to purchase Bunge N.A.’s full Pro Rata Share of any Units, then Bunge N.A. shall forfeit the right hereunder to purchase that part of its Pro Rata Share of such new Units that Bunge N.A. did not so agree to purchase.  The foregoing shall not preclude Bunge N.A. from purchasing more than its Pro Rata Share of Units to the extent offered by SIRE.

3.           Assignment.  Bunge N.A., or any successor holder hereof, may assign this Agreement to any affiliate who owns Series U Units of SIRE, or holds any right to acquire Series U Units pursuant to the terms of the Term Loan Note.

 

  

  

  

4.           Governing Law.  This Agreement shall be governed by and construed in accordance with the substantive laws of the State of Missouri (without reference to conflict of law principles).

SOUTHWEST IOWA RENEWABLE

ENERGY, LLC

By:  /s/ Karol King                                                                

Name:  Karol King                                                                

Title:  Chairman                                                                

                                                                  

  

2Exhibit 4.1

 

 

AMENDMENT TO AMENDED AND RESTATED

RIGHTS AGREEMENT

AMENDMENT (this “Amendment”) dated as of February 23, 2011 to the AMENDED AND RESTATED RIGHTS AGREEMENT dated as of December 20, 2005 (the “Rights Agreement”) by and between QUICKSILVER RESOURCES INC., a Delaware corporation (the “Corporation”), and MELLON INVESTOR SERVICES LLC, a New Jersey limited liability company (the “Rights Agent”).

 

WHEREAS, the Corporation may from time to time supplement or amend the Rights Agreement pursuant to Section 27 thereof; and

 

WHEREAS, the Corporation desires to amend the Rights Agreement as set forth herein;

 

NOW, THEREFORE, the parties hereto hereby agree as follows:

 

Section 1. Amendments. (a)  The following new Section 35 is hereby inserted immediately after Section 34 of the Rights Agreement:

 

“Section 35.  Limited Waivers.  Notwithstanding anything to the contrary in this Agreement, none of (x) Quicksilver Energy L.P., SPO Partners II, L.P. or any of their respective Affiliates or (y) any Other Potential Equity Investor (as defined in the Limited Waivers referred to in clauses (i) and (ii) below) shall become an Acquiring Person solely by reason of any communications expressly permitted by, and conducted in accordance with the terms of, (i) that certain Limited Waiver dated as of February 23, 2011 between the Corporation and Quicksilver Energy L.P. (as it may be amended from time to time with the consent of the Transaction Committee of the Board of Directors of the Corporation) and (ii) that certain Limited Waiver dated as of February 23, 2011 between the Corporation and SPO Partners II, L.P. (as it may be amended from time to time with the consent of the Transaction Committee of the Board of Directors of the Corporation).”

 

(b) Exhibit B to the Rights Agreement is hereby amended by changing the signature guarantee references therein from: “Signatures must be guaranteed by a bank, trust company, broker, dealer or other eligible institution participating in a recognized signature guarantee medallion program.” to the following:

 

“Signatures must be guaranteed by a participant in a Medallion Signature Guarantee Program at a guarantee level acceptable to the Company’s transfer agent.”

 

  

  

  

 

Section 2.  Effect of Amendment.  Except as expressly amended hereby, the Rights Agreement shall remain in full force and effect in accordance with the provisions thereof.  From and after the date hereof, any reference to the Rights Agreement shall mean the Rights Agreement as amended hereby.

 

Section 3.  Governing Law.  This Amendment shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts made and to be performed entirely within such State; except that all provisions regarding the rights, duties and obligations of the Rights Agent shall be governed by and construed in accordance with the law of the State of New York applicable to contracts made and to be performed entirely within such state.

 

Section 4.  Counterparts.  This Amendment may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers, all as of the day and year first written above. 

 

	 	
QUICKSILVER RESOURCES INC.

	 
	 	 	 	 	 
	
 

	
By: 

	
/s/ John C. Cirone

	 
	 	 	Name:   	
John C. Cirone

	 
	 	 	Title:   	Senior Vice President — General Counsel	 
	 	 	 	 	 
	 	 	 	 	 
	 	MELLON INVESTOR SERVICES LLC	 
	 	 	 	 	 
	 	
By:

	/s/ Janis Mason	 
	 	 	
Name:  

	Janis Mason	 
	 	 	
Title:  

	Vice President, Relationship ManagerExhibit 10.1

 

LIMITED WAIVER

LIMITED WAIVER (this “Waiver”) dated as of February 23, 2011 of certain provisions of that certain letter agreement dated as of October 24, 2010 (the “Confidentiality Agreement”) by and between Quicksilver Resources Inc. (the “Company”) and Quicksilver Energy L.P. (“Quicksilver Energy”).

 

WHEREAS, upon the terms and subject to the conditions set forth herein, the Company, acting at the direction of the Transaction Committee of the Company’s Board of Directors (the “Transaction Committee”), desires to waive certain provisions of the Confidentiality Agreement as set forth herein.

 

NOW, THEREFORE, the parties hereto hereby agree as follows:

 

Section 1. Waiver.  Notwithstanding anything to the contrary in the Confidentiality Agreement, until the Waiver Expiration (as defined below), (x) Quicksilver Energy and its Representatives (as defined in the Confidentiality Agreement) and (y) prospective sources of equity financing for Quicksilver Energy previously approved by the Transaction Committee (“Other Potential Equity Investors”) may engage in communications with SPO Partners II, L.P. (“SPO”) and its Representatives solely upon the following terms and subject to the following conditions:

 

(a) The sole purpose of such communications shall be to facilitate the submission to the Transaction Committee by Quicksilver Energy and SPO (and, if applicable, one or more Other Potential Equity Investors) of a non-binding indication of interest (which may be written or oral) regarding a potential acquisition of the Company (a “Transaction Proposal”).

 

(b) The sole permissible topic of such communications shall be the formulation of a Transaction Proposal (which may include, to the extent necessary in connection therewith, communications with respect to (i) the Company’s corporate governance arrangements following the consummation of an acquisition of the Company and (ii) valuation models and the Company’s business).

 

(c) In no event shall Quicksilver Energy and SPO or any of their respective affiliates enter into any binding agreement, arrangement or understanding (whether written or oral) relating to the acquisition, holding, voting or disposing of any securities of the Company or any other matter relating to the Company.

 

(d) All such communications shall terminate at 5:00 p.m. Central Time on the twenty-first calendar day following the date upon which this Waiver is executed (the “Waiver Expiration”).

 

  

  

  

 

Section 2.  Limited Scope of Waiver.  Quicksilver Energy acknowledges and agrees that (a) the waiver contained in Section 1 hereof is expressly conditioned upon Quicksilver Energy’s compliance with the requirements set forth in Sections 1(a) through (c) above and (b) without limiting the generality of paragraph 13 of the Confidentiality Agreement, none of the Company, its Board of Directors or the Transaction Committee thereof shall be under any legal obligation of any kind whatsoever with respect to any Transaction Proposal.

 

Section 3.  Effect of Waiver.  Except as expressly waived hereby, the Confidentiality Agreement shall remain in full force and effect in accordance with the provisions thereof.

 

Section 4.  Governing Law.  This Waiver shall be governed by, and construed in accordance with, the laws of the State of New York without regard to its conflict of law provisions.

 

Section 5.  Counterparts.  This Waiver may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be duly executed by their respective authorized officers, all as of the day and year first written above. 

 

	 	
QUICKSILVER RESOURCES INC.

	 
	 	 	 	 	 
	
 

	
By: 

	
/s/ John C. Cirone

	 
	 	 	Name:   	
John C. Cirone

	 
	 	 	Title:   	Senior Vice President — General Counsel	 
	 	 	 	 	 
	 	 	 	 	 
	 	QUICKSILVER ENERGY L.P.	 
	 	
 

	 
	 	By:	
Pennsylvania Management, LLC,

its general partner

	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	
By:

	/s/ Glenn Darden	 
	 	 	
Name:  

	Glenn Darden	 
	 	 	
Title:  

	Manager

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