Document:

ex10-1.htm

 

Exhibit 10.1

Agreement

This Agreement (“Agreement”) is entered into effective October 10, 2011 by and between Sapinda UK Ltd. (“Sapinda”) and ActiveCare, Inc., a Utah corporation (the “Company”).

WHEREAS, the Company desires to retain the services of Sapinda to provide general financial advisory services to the Company in regards to assist the Company in raising a gross amount of up to a  $10,000,000 equity line of credit for the Company (the “Financial Transaction”); and

WHEREAS, Sapinda is willing and able to accept such retention on the terms contained in this Agreement and subject to the Company’s achievement of certain accomplishments (“Milestones”) as defined in this Agreement.

Now therefore, in consideration of the covenants and promises contained herein, the parties agree as follows:

1.           Effect of Agreement.  This Agreement replaces and supersedes all previous agreements both written and verbal between the Company and Sapinda.  This is the entire Agreement and there are no verbal or other agreements between Company and Sapinda other than this Agreement.

2.           Retention.  The Company retains Sapinda as its financial advisor to provide general financial advisory services, and Sapinda accepts such retention on the terms and conditions set forth in this Agreement.  In such capacity, Sapinda shall; (i) familiarize itself, to the extent appropriate and feasible, with the business, operations, properties, financial condition, management and prospects of the Company, (ii) advise the Company on matters relating to its capitalization; (iii) evaluate alternative
financing structures and arrangements; (iv) review the Company’s presentation and marketing materials and other materials used to present the Company to the investment community; (v) coordinate with the Company in marketing non-deal road shows with existing and potential investors, and (vi) provide such other financial advisory services upon which the parties may mutually agree (hereafter collectively referred to as the “Advisory Services”).  It is expressly understood and agreed that Sapinda shall be required to perform only those Advisory Services (i) as may be necessary or desirable in connection with its engagement hereunder and therefore may not perform all of the tasks enumerated above during the Term of the Agreement and (ii) which do not require any banking, broker-dealer, financial
adviser, or financial services license in the United States, Germany, United Kingdom or elsewhere.  Moreover, it is understood that Sapinda’s tasks may not be limited to those enumerated in this paragraph, and that any additional services requested will be contemplated under a separate agreement. In no event shall Sapinda be obligated to offer, place or distribute any securities in the United States or to United States’ persons. Nothing in this Agreement is intended to be or shall constitute a commitment or obligation by Sapinda or any of its affiliates to provide any financing or debt or equity capital to the Company.

3.           Milestones.    Sapinda has the right to name up to two non-executive directors as nominees to the Company’s board of directors (the “Sapinda Nominees”) and the Company’s board of directors agrees to appoint the Sapinda Nominees to the Company’s board of directors with immediate effect upon Sapinda naming one and/or both Sapinda Nominees.

  

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4.           Terms and Conditions

The equity line of credit will be available until September 30, 2014 (the “Term”) and will allow the Company to issue Draw Down Notices to the Investor from time to time as outlined below.  The Company controls the timing and amount of any draw down, subject to the following conditions.

(a)           The Term comprises two phases of the Company’s development.  During each phase, the maximum draw-down amount shall be specified as follows.  The Company may not tap into the draw-down amount of the subsequent phase unless the targeted membership numbers defined for the previous phase have been accomplished.  During each phase, the use of funding proceeds shall be restricted to the “Investments” outlined below:

 

 

	 	 	Phase 1	 	 	Phase 2	 	 	Total	 
	 	 	 	 	 	 	 	 	 	 
	Gross Funding Amount	 	$	5,000,000	 	 	$	5,000,000	 	 	$	10,000,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Membership	 	 	25,000	 	 	 	50,000	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Investments	 	Management	 	 	IR/PR	 	 	 	 	 
	 	 	Sales and Marketing	 	 	Additional Sales and marketing	 	 	 	 	 
	 	 	CareCenter infrastructure	 	 	CareCenter staffing	 	 	 	 	 
	 	 	Finance/Billing resources	 	 	Redundant Care Center	 	 	 	 	 
	 	 	IT/technical Support	 	 	IT/Technical	 	 	 	 	 
	 	 	Operations Excellence	 	 	Operations Staffing	 	 	 	 	 

 

(b)           The funding of up to $5,000,000 for Phase 1 shall be completed by November 15th, 2011.  Under this Agreement, smaller fractions of these $5,000,000 can be funded at any time prior to November 15th, 2011.  The Company acknowledges that at the date of this Agreement it has already received funding proceeds of $900,000 which shall be fully credited against the funding of $5,000,000 for Phase
1.

(c)           After completion of Phase 1, budget submission to Sapinda and approval of these budgets by Sapinda shall be a condition precedent for the subsequent funding rounds.  Approval of such budgets by Sapinda shall not be withheld unreasonably.

(d)           At any time during the Term, the Company in its sole discretion may issue a Draw Down Notice which will commence a Pricing Period of sixty (60) consecutive trading days following the Draw Down Notice Date.  The Company shall specify in the Draw Down Notice the number of shares it requests Investor to purchase, consistent with the conditions set forth below.  Each Draw Down Notice will specify a “Safety Net Price” below which no issuance of new shares shall occur.

(e)           Only one Draw Down Notice shall be allowed in each Pricing Period.  Each closing shall occur on the first trading day following the end of the Pricing Period, or as soon thereafter as permitted by regulation (each a “Closing Date”).

(f)           The Investor agrees to honor Draw Down requests from the Company based upon a per share purchase price equal to seventy percent (70%) of the volume weighted average price (“VWAP”), as reported by Bloomberg, during the Pricing Period (“Subscription Price”).  However, in no case shall the Company have any obligation to issue shares at a Subscription Price lower than $.50 per share.

  

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(g)           If the Subscription Price is below the Safety Net Price established in the Draw Down Notice, then the Company has the right to cancel the Draw Down request.

(h)           The securities issued to the Investor will be restricted common stock of the Company and will have the following legend on all certificates:

“The securities represented hereby have not been registered under the securities act of 1933, as amended, or any state securities laws and neither the securities nor any interest therein may be offered, sold, transferred, pledged or otherwise disposed of except pursuant to an effective registration under such act or such laws or an exemption from registration under such act and such laws which, in the opinion of counsel for this corporation, is available.”

5           Information.

 

 

(a)           In connection with Sapinda’s rendering the Advisory Services hereunder, the Company will cooperate with Sapinda and furnish Sapinda upon request with all information regarding the business, operations, properties, financial condition, management and prospects of the Company (all such information so furnished being the “Information”) which Sapinda deems appropriate and will provide Sapinda with access to the Company’s officers, directors, employees, independent accountants and legal counsel.

(b)           The Company represents and warrants to Sapinda that all Information made available to Sapinda hereunder will be complete and correct in all material respects and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading in light of the circumstances under which such statements are or will be made.  The Company further represents and warrants that any projections and other forward-looking information provided by it to Sapinda will have been prepared in good faith and will be based upon assumptions which, in light of the
circumstances under which they are made, are reasonable.  The Company recognizes and confirms that Sapinda; (i) will use and rely primarily on the Information and on information available from generally recognized public sources in performing the Advisory Services contemplated by this Agreement without having independently verified (ii) does not assume responsibility for the accuracy or completeness of the Information and such other information; and (iii) will not make an appraisal of any assets of the Company.

(c)           Any advice rendered by Sapinda pursuant to this Agreement may not be disclosed publicly without Sapinda’s prior written consent.  Sapinda hereby acknowledges that certain of the Information received by Sapinda may be confidential and/or proprietary, including Information with respect to the Company’s technologies, products, business plans, marketing, and other Information which must be maintained by Sapinda as confidential.  Sapinda agrees that it will not disclose such confidential and/or proprietary Information to any other companies in the industry in which the Company is involved and which
have been identified by the Company to Sapinda in writing.  Sapinda will not make any representations regarding the Company that are not contained in the Information provided by the Company.  Sapinda will not disclose to any third party any information it receives from the Company that is deemed by the Company to contain material non-public information.

(d)           Within 30 days after the termination of this Agreement, Company may request that Sapinda shall destroy all documents or copies (including all copies thereof, regardless of the form thereof, whether paper, electronic or otherwise) of documents that Company provided to Sapinda and, subject to Section (e), below, all work papers, reports or other documents Sapinda prepared during the Term of this Agreement.  Notwithstanding the forgoing, Sapinda will have the right to retain a copy of
Sapinda’s reports and work papers for internal use.

  

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(e)           Upon full payment of all amounts due to Sapinda in connection with this Agreement, all right, title and interest in any deliverables Sapinda provides to Company will become Company’s sole and exclusive property, except as set forth below.  Sapinda will retain sole and exclusive ownership of all right, title and interest in its work papers, proprietary information, processes, methodologies and know how, including such information as existed prior to the delivery of the Advisory Services and, to the extent such information is of general application, anything which Sapinda may
discover, create or develop during the provision of the Advisory Services.

6.           Indemnification.

(a)           Company agrees that Sapinda and its affiliated entities, including but not limited to Sapinda Deutschland GmbH and Sapinda Holding B.V., (together “Indemnified Entities”) and the Indemnified Persons (as such term is defined below) will not have any liability to Company or any other person in connection with, related to or arising out of, this Agreement, including the Advisory Services to be provided hereunder, except (i) in connection with any
willful breach by Sapinda or any Indemnified Person of its obligations under Sections 4(a) through 4(d), or 10 hereof or (ii) in connection with any loss, claim, damage or liability to Company, and any action in respect thereof, that results from or arises as a result of any gross negligence, fraud, bad faith or willful misfeasance of Sapinda or any Indemnified Person or any affiliate thereof.  To the fullest extent permitted by applicable law, Company shall indemnify and hold harmless the Indemnified Entities and its advisors, managing principals, principals, directors, employees, affiliates, and each of their respective members, managers, directors, officers, employees, counsel, agents, representatives, contractors and affiliates (each such individual or entity to be referred to hereinafter as an
“Indemnified Person”), from and against any loss, claim, damage or liability, joint or several, and any action in respect thereof, whether or not involving a third party, to which an Indemnified Person may be subject, insofar as such loss, claim, damage, liability or action relates to, arises out of or results from any Covered Event (as such term is defined below) or alleged Covered Event, and will reimburse such Indemnified Person upon request for all expenses (including, without limitation, reasonable attorneys' fees and disbursements) incurred by such Indemnified Person in connection with investigating, defending or preparing to defend against any such loss, claim, damage, liability or action, as such expenses are incurred or paid; provided, however, that Company shall not be obligated to indemnify or hold harmless the Indemnified Entities or any Indemnified Person for
any loss, claim, damage, liability or action that results from or arises as a result of any gross negligence, fraud, bad faith or willful misfeasance of the Indemnified Entities or any Indemnified Person or any affiliate thereof.  The term “Covered Event” shall mean (a) any action taken, or services performed, by an Indemnified Person, related to or consistent with the Advisory Services or the terms of this Agreement, or (b) any action taken, or omitted to be taken, by Company or any of its managers, directors, officers, employees or agents, in connection with any matter in which an Indemnified Person has been involved pursuant to this Agreement.

(b)           Limitation of Liability. In no event shall the Indemnified Entities be liable to Company for any indirect, special, incidental, consequential, punitive or exemplary damages, even if Sapinda has been advised of the possibility of such damages.

  

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7.        Compensation.   As compensation for the Advisory Services and administration of the Equity Line of Credit, the Company agrees to pay to Sapinda with respect to any completed portion of the Financing Transaction (“Completed Financing”) entered into by the Company with any Investor(s) and upon each closing thereof, a
financial advisory fee (“Financial Advisory Fee”) equal to twenty percent (20%) of the up to $10,000,000 of cash gross proceeds received by the Company from any Investor(s) for that portion of a Completed Financing received during the Term of this Agreement.  The Company confirms the receipt of $900,000 equity in August 2011 under this Agreement.  The Financial Advisory Fees shall be due and payable with respect to any investment in the Company by any Investor(s) (up to the total Financing
Transaction).

 

 8.        Expenses.  The Company shall reimburse Sapinda all reasonable out-of-pocket expenses (including without limitation, fees and disbursements of counsel and all travel and out of pocket expenses) incurred by Sapinda in connection with the Advisory Services, provided that Sapinda will obtain Company’s prior written approval for any expense or combination of expenses in excess of $2,500.  Pre-approval of expense
may be authorized by the Chief Executive Officer.  Each party is responsible for the payment of its own legal counsel in connection with the negotiation and preparation of this Agreement. Sapinda is responsible for the payment of its employees, consultants and other professionals or affiliates providing Advisory Services under this Agreement. Nothing in this Agreement shall be construed to create any contractual relationship between Company and any subcontractor or consultant of Sapinda, nor any obligation on the part of Company to pay or to see to the payment of any money due any subcontractor or consultant as may otherwise be required by law.

 

 9.        Future
Rights.  To the extent the Financial Transaction shall be fully consummated during the Term of this Agreement, the following shall apply in addition to the compensation provided for in Section 6.  As additional consideration for its services hereunder and as an inducement to cause Sapinda to enter into this Agreement, if at any time during the Term of the Agreement or within two
years from the Termination Date of this Agreement, the Company proposes to engage a third party to provide financial advisory services substantially similar to the Advisory Services to be provided under this Agreement or advisory services relating to a merger or corporate take-over transaction (a “Financial Advisory Engagement”), the Company shall first offer in writing to retain Sapinda as its exclusive advisor in connection with such Financial Advisory Engagement upon the terms
proposed to be granted to the third party or more favorable terms Sapinda shall notify the Company within 30 days of its receipt of the written offer contemplated above as to whether or not it agrees to accept such retention.  If Sapinda should decline such retention, the Company shall have no further obligations to Sapinda, except as specifically provided for herein.  This Section 9 shall not apply to proposed acquisitions of minority or non-controlling interests or investments in the Company, whether by merger or otherwise, by strategic partners of the Company.

 

10.       Non-Solicitation.  During the Term of this Agreement and for a period of twenty-four (24) months after the Termination Date, each party will not, without prior written consent of the other party, hire or attempt to

 hire any current or former employee of the other party or its subsidiaries or affiliates, who is or was involved in the performance of the Advisory Services hereunder.

11.       Publicity.  Each party agrees not to use the name of the other party or any of its affiliated companies in any sales or marketing publication or advertisement or make any public disclosure except as may be legally required, relating to this Agreement or the other party or any of its affiliated companies, without obtaining the prior written consent of the other party.  Specifically, Company
shall not release or publish any news release, advertising or other public announcement relating to this Agreement or to the transactions contemplated herein without Sapinda’s prior review and written approval.  In addition, Company shall not use Sapinda’s corporate name, logos, trademarks or service marks without Sapinda’s prior written authorization.  Company agrees that it shall not, and shall cause its subsidiaries to not, engage in any conduct that could reasonably be expected to bring Sapinda into public disrepute, contempt, scandal or ridicule, or which might tend to reflect unfavorably on Sapinda or Sapinda’s personnel.  Sapinda agrees that it shall not, and shall cause its affiliates to not, engage in any conduct that could reasonably be expected to bring the Company into public disrepute, contempt, scandal or ridicule, or
which might tend to reflect unfavorably on the Company, its affiliates and personnel, or its business.

 

  

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           12.           Termination; Survival of Provisions.  Either Sapinda or the Company may terminate this Agreement in the event of a breach by the other party by observing a notice period of fifteen (15) days to the end of a calendar month (the
“Termination Date”).  In the event of such termination prior to the completion of the Term, the Company shall pay and deliver to Sapinda all authorized out-of-pocket expenses of Sapinda in connection with the Advisory Services hereunder, as provided in Section 8 incurred prior to and through the Termination Date.  Sapinda shall be paid its Financial Advisory Fees payable pursuant to Section 7 to the extent the same have been earned prior to and through the Termination Date. Moreover,
irrespective of when this Agreement is terminated, the compensation pursuant to Section 7 shall also be payable to Sapinda in the event that Sapinda would have earned the right to receive any compensation pursuant to Section 7 within a period of twelve (12) months following the termination date had such termination not occurred. Notwithstanding an actual or purported termination of this Agreement, the terms and provisions of Section 7, 8, 9, 10, 11, 12, 13, 14, 15, and 16 shall survive the termination of this Agreement.

           13.           Notices.  All notices provided hereunder shall be given in writing and either delivered personally or by overnight courier service or sent by certified mail, return receipt requested, or by facsimile transmission, if to Sapinda, to:

Sapinda Deutschland GmbH

Attn.: Mr. Lars Windhorst

 Friedrichstrasse 9510117 Berlin

Germany

And if to the Company, to:

ActiveCare, Inc.

Attn.: Mr. Jim Dalton, Chairman

5095 West 2100 South,

Salt Lake City, Utah, 84120

USA

Any notice delivered personally or by fax shall be deemed given upon receipt (with confirmation of receipt required in the case of fax transmissions); any notice given by overnight courier shall be deemed given on the next business day after delivery to the overnight courier, and any notice given by certified mail shall be deemed given upon the second business day after certification thereof.

  

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           14.           Governing Law; Jurisdiction; Waiver of Jury Trial.    This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made and to be fully performed therein, without regard to conflicts of law principles.  The Company irrevocably submits to the exclusive jurisdiction of any court of the State of New York or the United
States District Court for the Southern District of the State of New York for the purpose of any suit, action or other proceeding arising out of this Agreement, or any of the agreements or transactions contemplated hereby, which is brought by or against the Company, and agrees that service of process in connection with any such suit, action or proceeding may be made upon the Company in accordance with Section 12 hereof.  THE PARTIES HEREBY EXPRESSLY WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING UNDER THE AGREEMENT.

           15            Amendments.   This Agreement may not be modified or amended except in writing duly executed by the parties hereto.

           16.           Headings.   The section headings in the Agreement have been inserted as a matter of reference and are not part of the Agreement.

           17.           Successors and Assigns.   The benefits of this Agreement shall inure to the parties hereto, their respective successors and assigns and to the indemnified parties hereunder and their respective successors and assigns, and the obligations and liabilities assumed in this Agreement shall be binding upon the parties hereto and their respective successors and assigns.  Notwithstanding anything contained herein
to the contrary, neither Sapinda nor the Company shall assign any of its obligations hereunder without the prior written consent of the other party, provided however that Sapinda shall be entitled to transfer its right and duties under this Agreement to any other legal entity.

 

           18.           No Third Party Beneficiaries.  This Agreement does not create, and shall not be construed as creating, any right enforceable by any person or entity not a party hereto, except those entitled to the benefits of the Indemnification Provisions.  Without limiting the foregoing, the Company acknowledges and agrees that Sapinda is not being engaged as, and shall not be deemed to be an agent or fiduciary of the
Company’s stockholders or creditors or any other person by virtue of this Agreement or the retention of Sapinda hereunder, all of which are hereby expressly waived.

           19.           Waiver.  Any waiver or any breach of any of the terms or conditions of this Agreement shall not operate as a waiver of any other breach of such terms or conditions or of any other term or condition, nor shall any failure to insist upon strict performance or to enforce any provision hereof on any one occasion operate as a waiver of such provision or of any other provision hereof or a waiver of the right to insist upon
strict performance or to enforce such provision or any other provision on any subsequent occasion.  Any waiver must be in writing.

           20.           Counterparts. This Agreement may be executed in any number of counterparts and by facsimile transmission, each of which shall be deemed to be an original instrument, but all of which taken together shall constitute one and the same agreement.  Facsimile signatures shall be deemed to be original signatures for all purposes.

[SIGNATURES APPEAR ON THE FOLLOWING PAGE.]

  

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THE parties acknowledge their acceptance and agreement of this Agreement by their execution this 10th day of October 2011, effective October 10, 2011, as indicated above.

 

SAPINDA UK LIMITED

By:___________________________________

Name and Title: Lars Windhorst, Geschäftsführer - Managing Director

 

 

 

ACTIVECARE, INC.

By: ______________________________________

Name and Title:  Mr. Jim Dalton , Chairman

 

8Exhibit 10.1

 

EXECUTION COPY

 

VOTING AGREEMENT

 

This VOTING AGREEMENT (this “Agreement”), is dated as of October 16, 2011, by and among El Paso Corporation  (the “Company”) and the stockholders of Kinder Morgan Inc. (“Buyer”) listed on the signature pages hereto (each a “Stockholder” and collectively, the “Stockholders”).

 

W I T N E S S E T H:

 

WHEREAS, the Company, Sherpa Merger Sub, Inc., a Delaware corporation, Sherpa Acquisition, LLC, a Delaware limited liability company, Sirius Merger Corporation, a Delaware corporation, Sirius Holdings Merger Corporation, a Delaware corporation, and Buyer entered into an Agreement and Plan of Merger, dated as of October 16, 2011 (the “Merger Agreement”), providing for, among other things, the acquisition of the Company by Kinder Morgan through the consummation of the Transactions (as defined in the Merger Agreement), the result of which will include the Company being a wholly owned subsidiary of Buyer (capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement as of the date hereof); and

 

WHEREAS, as of the date hereof, each Stockholder is the record and beneficial owner of the number of shares of Parent Class A Stock of Buyer set forth on Exhibit A hereto (together with such additional shares of such class or of Parent Class P Stock as become beneficially owned by such Stockholder, whether upon the exercise of options, conversion of convertible securities or otherwise, and any other voting securities of Buyer (whether acquired heretofore or hereafter) but excluding any shares sold or transferred on or after the date hereof in compliance with Section 4.1, the “Owned Shares”), which shares collectively represent at least 75% of the voting power of the outstanding capital stock of Buyer (as calculated with respect to the vote that is necessary to obtain the Parent Stockholder Approval); and

 

WHEREAS, as a condition to the Company’s willingness to enter into and perform its obligations under the Merger Agreement, the Company has required that each Stockholder agree, and each Stockholder has agreed, subject to the terms of this Agreement, (i) to vote all of such Stockholder’s Owned Shares in favor of (a) the issuance of the Parent Class P Stock to the Company’s shareholders in connection with the consummation of the Merger (including shares of Parent Class P Stock to be issued upon the exercise of any Parent Class P Warrants) and the Parent Class P Warrants (the “Stock Issuance”) and (b) any other matters submitted to the shareholders of Buyer in furtherance of the Merger or the other transactions contemplated by the Merger Agreement and (ii) to take the other actions described herein; and

 

WHEREAS, each Stockholder desires to express its support for the Merger Agreement and the transactions contemplated thereby, including the Stock Issuance.

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration given to each party hereto, the receipt of which is hereby acknowledged, the parties agree as follows:

 

 

1.             Agreement to Vote; Irrevocable Proxy.

 

1.1           Agreement to Vote.  Each Stockholder hereby agrees that, from the date hereof until the earlier of (i) the time that the Parent Stockholder Approval has been obtained and no other vote by the Buyer’s shareholders is required to consummate the transactions contemplated by the Merger Agreement and (ii) termination of this Agreement in accordance with Section 5.1, at any meeting of the stockholders of Buyer at which the approval of the Stock Issuance or any other matter requiring a vote of Buyer’s shareholders necessary to consummate the transactions contemplated by the Merger Agreement is to be voted upon, however called, or any adjournment or postponement thereof, such Stockholder shall be present (in person or by proxy) and vote (or cause to be voted) all of its Owned Shares at such time (a) in favor of approval of the Stock Issuance and (b) against any Parent Alternative Transaction and against any action or agreement that would reasonably be expected to materially impair the ability of the Buyer, Merger Sub or the Company to complete the Merger, or that would otherwise reasonably be expected to prevent or materially impede or materially delay the consummation of the transactions contemplated by the Merger Agreement.

 

1.2           Irrevocable Proxy.  Each Stockholder hereby irrevocably appoints the Company as its attorney-in-fact and proxy with full power of substitution and resubstitution, to the full extent of such Stockholder’s voting rights with respect to such Stockholder’s Owned Shares (which proxy is irrevocable and which appointment is coupled with an interest, including for purposes of Section 212 of the Delaware General Corporation Law, but for the avoidance of doubt shall be deemed terminated and released with respect to any shares sold or transferred on or after the date hereof in compliance with Section 4.1 or Section 4.7) to vote all such Stockholder’s Owned Shares in favor of the Stock Issuance or any other matter requiring a vote of Buyer’s shareholders necessary to consummate the transactions contemplated by the Merger Agreement.  Upon the Company’s reasonable request, each Stockholder agrees to execute any further agreement or form reasonably necessary or appropriate to confirm and effectuate the grant of the proxy contained herein.  The proxy granted by each Stockholder in this Section 1.2 shall remain valid until the earlier of (i) the time that the Parent Stockholder Approval has been obtained or (ii) the termination of this Agreement in accordance with Section 5.1, in the case of clause (i) or (ii), immediately upon which each such proxy shall automatically terminate without any further action required by any person.

 

2.             Representations and Warranties of Stockholders.  Each Stockholder hereby represents and warrants to the Company as follows:

 

2.1           Due Organization.  Such Stockholder, if a corporation, partnership or other entity, has been duly organized, is validly existing and is in good standing under the laws of the state of its formation or organization.

 

2.2           Power; Due Authorization; Binding Agreement.  Such Stockholder has full legal capacity, power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement and the consummation by such Stockholder of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate, partnership or other applicable action on the part of such Stockholder, and no other proceedings on the part of such Stockholder are necessary to authorize this Agreement or to consummate the transactions contemplated hereby.  This Agreement has been duly and validly executed and

 

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delivered by such Stockholder and, assuming the due and valid authorization, execution and delivery hereof by the other parties hereto, constitutes a valid and binding agreement of such Stockholder, enforceable against such Stockholder in accordance with its terms.

 

2.3           Ownership of Shares.  On the date hereof, the Owned Shares set forth opposite such Stockholder’s name on Exhibit A hereto are owned beneficially by such Stockholder, free and clear of any claims, liens, encumbrances and security interests other than any restrictions existing under Buyer’s certificate of incorporation or by-laws or the Buyer Shareholders Agreement (as defined below) (the “Buyer Governance Agreements”).  Other than proxies and restrictions in favor of the Company pursuant to this Agreement and except for such transfer restrictions of general applicability as may be provided under the Securities Act of 1933, as amended, the “blue sky” laws of the various states of the United States, as of the date hereof, and any restrictions contained in the Buyer Governance Agreements, such Stockholder has, and at any stockholder meeting of Buyer in connection with the Merger Agreement and the transactions contemplated by the Merger Agreement, including approval of the Stock Issuance, such Stockholder will have (except as otherwise permitted by this Agreement, including in connection with the permitted Transfer of any Owned Shares), sole voting power and sole dispositive power with respect to all of the Owned Shares of such Stockholder. As of the date hereof, the Stockholders collectively own and on every date through the date that the Parent Stockholder Approval has been obtained (including the date of any meeting or any adjournment or postponements thereof of the stockholders of the Buyer at which Parent Stockholder Approval is sought and the date of any record date for determining the stockholders entitled to vote at any such meeting of the stockholders of Buyer), the Stockholders will own an amount of shares of Buyer’s capital stock sufficient to obtain the Parent Stockholder Approval.

 

2.4           No Conflicts. The execution and delivery of this Agreement by such Stockholder does not, and the performance of the terms of this Agreement by such Stockholder will not, (a) require such Stockholder to obtain the consent or approval of, or make any filing with or notification to, any governmental or regulatory authority, domestic or foreign other than any filings required under U.S. federal or state securities laws, (b) require the consent or approval of any other person pursuant to any agreement, obligation or instrument binding on such Stockholder or its properties and assets, (c) conflict with or violate any organizational document or law, rule, regulation, order, judgment or decree applicable to such Stockholder or pursuant to which any of its or its affiliates’ respective properties or assets are bound or (d) violate any other agreement to which such Stockholder or any of its affiliates is a party including, without limitation, the Buyer’s certificate of incorporation or by-laws or the Shareholders Agreement, dated as of February 10, 2011, among Buyer and the persons set forth on the signature pages thereto (the “Buyer Shareholders Agreement”) or any other voting agreement, stockholders agreement, irrevocable proxy or voting trust applicable to such Stockholder.  Other than the Buyer Shareholders Agreement, the Owned Shares of such Stockholder are not, with respect to the voting or transfer thereof, subject to any other agreement, including any voting agreement, stockholders agreement, irrevocable proxy or voting trust.

 

2.5           Acknowledgment.  Such Stockholder understands and acknowledges that the Company is entering into the Merger Agreement in reliance upon such Stockholder’s execution, delivery and performance of this Agreement.

 

3.             Representations and Warranties of the Company.  The Company hereby represents and warrants to the Stockholders as follows:

 

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3.1           Due Organization.  The Company is duly organized, validly existing and in good standing under the laws of the State of Delaware.

 

3.2           Power; Due Authorization; Binding Agreement.  The Company has full corporate power and authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement and the consummation by the Company of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action on the part of the Company, and no other proceedings on the part of the Company are necessary to authorize this Agreement or to consummate the transactions contemplated hereby.  This Agreement has been duly and validly executed and delivered by the Company and, assuming the due and valid authorization, execution and delivery hereof by the other parties hereto, constitutes a valid and binding agreement of the Company.

 

4.             Certain Covenants of the Stockholders.

 

4.1           Restriction on Transfer, Proxies and Non-Interference.  Each Stockholder hereby agrees, except as permitted by Section 4.7, from the date hereof until the earlier of, (i) the termination of this Agreement in accordance with Section 5.1 and (ii) the time that the Parent Stockholder Approval has been obtained, not to (a) sell, transfer, pledge, encumber, assign or otherwise dispose 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, or limitation on the voting rights of, any of the Owned Shares (any such action, a “Transfer”) that would result in the Stockholders, collectively, owning shares of Buyer’s capital stock less than such number of shares necessary to obtain the Parent Stockholder Approval, (b) grant any proxies or powers of attorney with respect to the Owned Shares, deposit any Owned Shares into a voting trust or enter into a voting agreement with respect to any Owned Shares, in each case with respect to any vote on the approval of the Stock Issuance or any other matters set forth in this Agreement including, without limitation, Article I (other than a proxy to the Company as set forth in Section 1.2), (c) take any action that would cause any representation or warranty of such Stockholder contained herein to become untrue or incorrect or have the effect of preventing or disabling such Stockholder from performing its obligations under this Agreement, or (d) commit or agree to take any of the foregoing actions.  Any action taken in violation of the foregoing sentence shall be null and void and each Stockholder agrees that any such prohibited action may and should be enjoined. If any involuntary Transfer of any of the Owned Shares shall occur (including, but not limited to, a sale by a Stockholder’s trustee in any bankruptcy, or a sale to a purchaser at any creditor’s or court sale), the transferee (which term, as used herein, shall include any and all transferees and subsequent transferees of the initial transferee) shall take and hold such Owned Shares subject to all of the restrictions, liabilities and rights under this Agreement, which shall continue in full force and effect until valid termination of this Agreement.

 

4.2           No Limitations on Actions.  The parties hereto acknowledge that each Stockholder is entering into this Agreement solely in its capacity as the beneficial owner of the applicable Owned Shares and this Agreement shall not limit or otherwise affect the actions or fiduciary duties of such Stockholder, or any affiliate, employee or designee of such Stockholder or any of its affiliates in its capacity, if applicable, as an officer or director of Buyer.

 

4.3           Directors.               Each Stockholder agrees that, to the extent it is a Stockholder at the time of the first annual shareholders meeting of Buyer following the

 

4

 

consummation of the Merger (the “First Post-Closing Meeting”), it will vote all of its Owned Shares in favor of the election of the nominees designated by the Company pursuant to Section 5.15 of the Merger Agreement to the board of directors of Buyer at such shareholders meeting.

 

4.4           No Solicitation.  Each Stockholder agrees that it shall not, without the Company’s written consent, directly or indirectly solicit, initiate, knowingly facilitate, knowingly encourage (including by way of furnishing information) or knowingly induce or take any other action designed to lead to any inquiries or proposals that constitute, or would reasonably be expected to lead to, the submission of a Parent Alternative Proposal.  Notwithstanding the foregoing, nothing in this Agreement shall be deemed to prevent the Stockholders from Transferring any equity securities of Buyer or taking any action in connection with any Transfer or proposed Transfer of equity securities of Buyer that is not in violation of the Transfer restrictions set forth in Section 4.1 to the extent that such Transfer does not involve a merger, consolidation, share exchange, business combination, recapitalization, liquidation or similar transaction involving Parent or an exchange offer or tender offer for Buyer’s equity securities.

 

4.5           Amendment to Buyers Shareholders Agreement.  Each Stockholder agrees to execute the amendment to the Buyer Shareholders Agreement to give effect to the matters set forth in Section 5.15 of the Merger Agreement on the date hereof.

 

4.6           Further Assurances.  From time to time, at the request of the Company and without further consideration, each Stockholder shall execute and deliver such additional documents and take all such further action as may be reasonably necessary or desirable to consummate and make effective the transactions contemplated by this Agreement.

 

4.7           Affiliate Transfers.  Any Stockholder that Transfers any Owned Shares (a) to Permitted Transferees (as such term is used and defined in the Buyers Shareholders Agreement) and Affiliates (as such term is used and defined in the Buyers Shareholders Agreement) of such Stockholder and (b) in the case of Richard D. Kinder, to a Kinder Foundation (collectively together with such Permitted Transferees and Affiliates, “Potential Transferees”) shall cause each such Potential Transferee to (i) execute a signature page to this Agreement pursuant to which such Potential Transferee agrees to be a “Stockholder” pursuant to this Agreement with respect to such Transferred Owned Shares and (ii) provide the requisite contact information for such Potential Transferee as contemplated by Exhibit B.  Transfers of Owned Shares to Potential Transferees made pursuant to this Section 4.7 shall not be a breach of this Agreement.

 

5.             Miscellaneous.

 

5.1           Termination of this Agreement.  This Agreement, and all terms and conditions contained herein, shall terminate upon the earlier to occur of (i) the termination of the Merger Agreement in accordance with its terms and (ii) the Effective Time; provided, that if the Closing occurs, Section 4.3 of this Agreement shall terminate immediately following the First Post-Closing Meeting.

 

5

 

5.2           Effect of Termination.  In the event of termination of this Agreement pursuant to Section 5.1, this Agreement shall become void and of no effect with no liability on the part of any party hereto; provided, however, no such termination shall relieve any party hereto from any liability for any breach of this Agreement occurring prior to such termination.

 

5.3           Entire Agreement; Assignment.  This Agreement constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all other prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof.  Nothing in this Agreement, express or implied, is intended to or shall confer upon any other person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement; provided, that Buyer shall be an express third party beneficiary of this Agreement solely for the purpose of being permitted, with a Supermajority Board Vote (as such term is used and defined in the bylaws of Buyer on the date hereof) to enforce Section 1.1 in a manner (pursuant and subject to the provisions of Section 1.1) to cause each Stockholder to vote to approve the Stock Issuance and any other matter requiring a vote of Buyer’s shareholders necessary to consummate the transactions contemplated by the Merger Agreement, solely to the extent that the Company refuses, in writing upon request of the Buyer, to enforce such provision against the Stockholders.  This Agreement shall not be assigned by operation of law or otherwise and, subject only to the immediately preceding sentence, shall be binding upon and inure solely to the benefit of each party hereto.

 

5.4           Amendments.  This Agreement may not be modified, amended, altered or supplemented, except upon the execution and delivery of a written agreement executed by each of the parties hereto.

 

5.5           Notices.  All notices and other communications hereunder shall be in writing and shall be deemed given if delivered personally (notice deemed given upon receipt), telecopied (notice deemed given upon confirmation of receipt), by email (notice deemed given upon sending), or sent by a nationally recognized overnight courier service, such as Federal Express (notice deemed given upon receipt of proof of delivery), to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

 

If to a Stockholder, to the address and facsimile set forth opposite such Stockholder’s name on Exhibit B attached hereto

 

with copies in any case to:

 

Kinder Morgan, Inc.

500 Dallas Street, Suite 1000

Houston, Texas 77002

Attn:  General Counsel

Facsimile:  (713) 369-9410

 

-and-

 

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, NY 10153

Attn:  Thomas A. Roberts and R. Jay Tabor

 

6

 

Facsimile: (212) 310-6717

 

If to the Company :

 

El Paso Corporation

1001 Louisiana Street

Houston, Texas 77002

Attn.:  General Counsel

Facsimile:  (713) 420-5043

 

with a copy to:

 

Wachtell, Lipton, Rosen & Katz
 51 West 52nd Street
 New York, New York  10019
 Attn.:   David A. Katz
 Facsimile:  (212) 403-2000

 

5.6           Governing Law; Venue.

 

(a)           This Agreement and all claims or causes of action (whether at Law, in contract, in tort or otherwise) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance hereof shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to conflicts of laws principles (whether of the State of Delaware or any other jurisdiction) that would result in the application of the Law of any other state.

 

(b)           Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the Delaware Court of Chancery, or, if (and only if) such court lacks subject matter jurisdiction, the Federal court of the United States of America sitting in the State of Delaware, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or the agreements delivered in connection herewith or the transactions contemplated hereby or thereby or for recognition or enforcement of any judgment relating thereto, and each of the parties hereby irrevocably and unconditionally (i) agrees not to commence any such action or proceeding except in the Delaware Court of Chancery, or, if (and only if) such court lacks subject matter jurisdiction, the Federal court of the United States of America sitting in the State of Delaware, and any appellate court from any thereof, (ii) agrees that any claim in respect of any such action or proceeding shall be heard and determined in the Delaware Court of Chancery, or, if (and only if) such court lacks subject matter jurisdiction, the federal court of the United States of America sitting in the State of Delaware, and any appellate court from any thereof, (iii) waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any such action or proceeding in the Delaware Court of Chancery, or, if (and only if) such court lacks subject matter jurisdiction, the federal court of the United States of America sitting in State of Delaware, and any appellate court from any thereof, (iv) waives, to the fullest extent permitted by Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in the Delaware Court of Chancery, or, if (and only if) such court lacks subject matter jurisdiction, the federal court of the United States of America sitting in the State of Delaware, and any appellate court from any thereof, (v) waives, to the fullest extent permitted by

 

7

 

Law, any claim that it is not personally subject to the jurisdiction of the Delaware Court of Chancery, or, if (and only if) such court lacks subject matter jurisdiction, the federal court of the United States of America sitting in Delaware, and any appellate court from any thereof for any reason other than the failure to serve in accordance with this Agreement, (vi) waives, to the fullest extent permitted by Law, any claim that it or its property is exempt or immune from jurisdiction of the Delaware Court of Chancery, or, if (and only if) such court lacks subject matter jurisdiction, the Federal court of the United States of America sitting in the State of Delaware or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and (vii) waives, to the fullest extent permitted by Law, any claim that this Agreement, or the subject mater hereof, may not be enforced in or by such courts.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law.  Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in Section 5.5.  Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by Law.

 

(c)           EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF ANY PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT.

 

5.7           Specific Performance.  Each Stockholder agrees that, in the event of any breach or threatened breach by such Stockholder of any covenant or obligation contained in this Agreement, the Company would be irreparably harmed and that money damages would not provide an adequate remedy.  Accordingly, each Stockholder agrees that Buyer shall be entitled (in addition to any other remedy to which the Company is entitled at law or in equity) to seek and obtain (a) a decree or order of specific performance to enforce the observance and performance of such covenant or obligation, and (b) an injunction restraining such breach or threatened breach.  Each Stockholder further agrees that neither the Company nor any other Person shall be required to obtain, furnish or post any bond or similar instrument in connection with or as a condition to obtaining any remedy referred to in this Section 5.7, and each Stockholder irrevocably waives any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument.

 

5.8           Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties hereto and delivered to the other parties, it being understood that all parties need not sign the same counterpart.  This Agreement may be executed and delivered by facsimile transmission.

 

5.9           Descriptive Headings.  The descriptive headings used herein are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Agreement.

 

8

 

5.10         Severability.  Any term or provision of this Agreement 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 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 invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the 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 agree to replace such invalid or unenforceable term or provision with a valid and enforceable term or provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid or unenforceable term.

 

5.11         Non-Recourse.

 

(a)  No past, present or future director, officer, employee, incorporator, member, partner, stockholder, agent, attorney, representative or affiliate of any party hereto or of any of their respective affiliates shall have any liability (whether in contract or in tort) for any obligations or liabilities of such party arising under, in connection with or related to this Agreement or for any claim based on, in respect of, or by reason of, the transactions contemplated hereby; provided, however, that nothing in this Section 5.11 shall limit any liability of the parties hereto for breaches of the terms and conditions of this Agreement.

 

(b) Each party to this Agreement enters into this Agreement solely on its on behalf, each such party shall solely by severally liable for any breaches of this Agreement by such party and in no event shall any party be liable for breaches of this Agreement by any other party hereto.

 

[remainder of page intentionally blank]

 

9

 

IN WITNESS WHEREOF, the parties hereto have caused this Voting Agreement to be duly executed as of the day and year first above written.

 

	
 
    	
EL   PASO CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Douglas L. Foshee
    
	
 
    	
 
    	
Name:   Douglas L. Foshee
    
	
 
    	
 
    	
Title:   Chairman, President and Chief Executive   Officer
    

 

 

SIGNATURE PAGE TO VOTING AGREEMENT

 

 

	
 
    	
STOCKHOLDERS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Richard D. Kinder
    
	
 
    	
Richard   D. Kinder
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GS   CAPITAL PARTNERS V FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:    GSCP V Advisors, L.L.C.
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:     Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GSCP   V OFFSHORE KNIGHT HOLDINGS, L.P.
    
	
 
    	
 
    
	
 
    	
By:    GS Capital Partners V Offshore Fund,   L.P.
    
	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
By:    GSCP V Offshore Advisors, L.L.C.
    
	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:     Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GSCP   V GERMANY KNIGHT HOLDINGS, L.P.
    
	
 
    	
 
    
	
 
    	
By:   GSCP V GmbH Knight Holdings
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:     Vice President
    

 

 

SIGNATURE PAGE TO VOTING AGREEMENT

 

 

	
 
    	
GS   CAPITAL PARTNERS V INSTITUTIONAL, L.P.
    
	
 
    	
 
    
	
 
    	
By:    GS Advisors V, L.L.C.
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:     Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GS   CAPITAL PARTNERS VI FUND, L.P.
    
	
 
    	
 
    
	
 
    	
By:    GSCP VI Advisors, L.L.C.
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GSCP   VI OFFSHORE KNIGHT HOLDINGS, L.P.
    
	
 
    	
 
    
	
 
    	
By:    GS Capital Partners VI Offshore Fund,   L.P.
    
	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
By:    GSCP VI Offshore Advisors, L.L.C.
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:   Vice President
    

 

 

SIGNATURE PAGE TO VOTING AGREEMENT

 

 

	
 
    	
GSCP   VI GERMANY KNIGHT HOLDINGS, L.P.
    
	
 
    	
 
    
	
 
    	
By:    GSCP VI GmbH Knight Holdings
    
	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:     Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GS   CAPITAL PARTNERS VI PARALLEL, L.P.
    
	
 
    	
 
    
	
 
    	
By:    GS Advisors VI, L.L.C.
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:   Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GOLDMAN   SACHS KMI INVESTORS, L.P.
    
	
 
    	
 
    
	
 
    	
By:    GS KMI Advisors, L.L.C.
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:     Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GSCP   KMI INVESTORS, L.P.
    
	
 
    	
 
    
	
 
    	
By:    GSCP KMI Advisors, L.L.C.
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:     Vice President
    

 

 

SIGNATURE PAGE TO VOTING AGREEMENT

 

 

	
 
    	
GSCP   KMI INVESTORS OFFSHORE, L.P.
    
	
 
    	
 
    
	
 
    	
By:    GSCP KMI Offshore Advisors, Inc.
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:     Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GS   INFRASTRUCTURE KNIGHT HOLDINGS, L.P.
    
	
 
    	
 
    
	
 
    	
By:    GS International Infrastructure   Partners I, L.P.
    
	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
By:    GS Infrastructure Advisors 2006, L.L.C.
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:     Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GS   INSTITUTIONAL INFRASTRUCTURE PARTNERS I, L.P.
    
	
 
    	
 
    
	
 
    	
By:    GS Infrastructure Advisors 2006,   L.L.C.
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:     Vice President
    

 

 

SIGNATURE PAGE TO VOTING AGREEMENT

 

 

	
 
    	
GS   GLOBAL INFRASTRUCTURE PARTNERS I, L.P.
    
	
 
    	
 
    
	
 
    	
By:    GS Infrastructure Advisors 2006,   L.L.C.
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Name:   Kenneth A. Pontarelli
    
	
 
    	
 
    	
Title:   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HIGHSTAR   II KNIGHT ACQUISITION SUB, L.P.
    
	
 
    	
 
    
	
 
    	
By: Highstar   Capital GP II, L.P., its General Partner
    
	
 
    	
 
    
	
 
    	
By: Highstar   Management II, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
By: Highstar   Capital LP, its attorney-in-fact
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael J. Miller
    
	
 
    	
 
    	
Name:   Michael J. Miller
    
	
 
    	
 
    	
Title:     Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HIGHSTAR   III KNIGHT ACQUISITION SUB, L.P.
    
	
 
    	
 
    
	
 
    	
By: Highstar   GP III Prism Fund, L.P., its General Partner
    
	
 
    	
 
    
	
 
    	
By: Highstar   Management III, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
By: Highstar   Capital LP, its attorney-in-fact
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael J. Miller
    
	
 
    	
 
    	
Name:   Michael J. Miller
    
	
 
    	
 
    	
Title:     Partner
    

 

 

SIGNATURE PAGE TO VOTING AGREEMENT

 

 

	
 
    	
HIGHSTAR   KNIGHT PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By: Highstar   Knight Co-Investment GP, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
By: Highstar   Capital LP, its attorney-in-fact
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael J. Miller
    
	
 
    	
 
    	
Name:   Michael J. Miller
    
	
 
    	
 
    	
Title:   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HIGHSTAR   KMI BLOCKER LLC
    
	
 
    	
 
    
	
 
    	
By:   Highstar III Knight Acquisition Sub, L.P., its managing member
    
	
 
    	
 
    
	
 
    	
By:   Highstar GP III Prism Fund, L.P., its General Partner
    
	
 
    	
 
    
	
 
    	
By:   Highstar Management III, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
By:   Highstar Capital LP, its attorney-in-fact
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael J. Miller
    
	
 
    	
 
    	
Name:   Michael J. Miller
    
	
 
    	
 
    	
Title:     Partner
    

 

 

SIGNATURE PAGE TO VOTING AGREEMENT

 

 

	
 
    	
CARLYLE   PARTNERS IV KNIGHT, L.P.
    
	
 
    	
 
    
	
 
    	
By:   TC Group IV, L.P., its general partner
    
	
 
    	
 
    
	
 
    	
By:   TC Group IV Managing GP, L.L.C., its general partner
    
	
 
    	
 
    
	
 
    	
By:   TC Group, L.L.C., its sole member
    
	
 
    	
 
    
	
 
    	
By:   TCG Holdings L.L.C., its managing member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel A. D’Aniello
    
	
 
    	
 
    	
Name:   Daniel A. D’Aniello
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CP IV   COINVESTMENT, L.P.
    
	
 
    	
 
    
	
 
    	
By:   TC Group IV, L.P., its general partner
    
	
 
    	
 
    
	
 
    	
By:   TC Group IV Managing GP, L.L.C., its general partner
    
	
 
    	
 
    
	
 
    	
By:   TC Group, L.L.C., its sole member
    
	
 
    	
 
    
	
 
    	
By:   TCG Holdings L.L.C., its managing member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel A. D’Aniello
    
	
 
    	
 
    	
Name:   Daniel A. D’Aniello
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CARLYLE   ENERGY COINVESTMENT III, L.P.
    
	
 
    	
 
    
	
 
    	
By:    Carlyle Energy Coinvestment III GP,   L.L.C.,
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel A. D’Aniello
    
	
 
    	
 
    	
Name:   Daniel A. D’Aniello
    
	
 
    	
 
    	
Title:
    

 

 

SIGNATURE PAGE TO VOTING AGREEMENT

 

 

	
 
    	
CARLYLE/RIVERSTONE   KNIGHT INVESTMENT PARTNERSHIP, L.P.
    
	
 
    	
 
    
	
 
    	
By:    Carlyle/Riverstone Energy Partners   III, L.P.,
    
	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
By:    C/R Energy GP III, LLC,
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Pierre Lapeyle
    
	
 
    	
 
    	
Name:   Pierre Lapeyle
    
	
 
    	
 
    	
Title:   Authorized Person
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
C/R   KNIGHT PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By:    Carlyle/Riverstone Energy Partners   III, L.P.,
    
	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
By:    C/R Energy GP III, LLC,
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Pierre Lapeyle
    
	
 
    	
 
    	
Name:   Pierre Lapeyle
    
	
 
    	
 
    	
Title:     Authorized Person
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
C/R   ENERGY III KNIGHT NON-U.S. PARTNERSHIP, L.P.
    
	
 
    	
 
    
	
 
    	
By:    Carlyle/Riverstone Energy Partners   III, L.P.,
    
	
 
    	
its General Partner
    
	
 
    	
 
    
	
 
    	
By:    C/R Energy GP III, LLC,
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Pierre Lapeyle
    
	
 
    	
 
    	
Name:   Pierre Lapeyle
    
	
 
    	
 
    	
Title:     Authorized Person
    

 

 

SIGNATURE PAGE TO VOTING AGREEMENT

 

 

	
 
    	
RIVERSTONE   ENERGY COINVESTMENT III, L.P.
    
	
 
    	
 
    
	
 
    	
By:    Riverstone Coinvestment GP LLC,
    
	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Pierre Lapeyle
    
	
 
    	
 
    	
Name:   Pierre Lapeyle
    
	
 
    	
 
    	
Title:   Authorized Person
    

 

 

SIGNATURE PAGE TO VOTING AGREEMENT

 

 

EXHIBIT A

 

BUYER STOCK OWNERSHIP

 

	
 
    	
 
    	
Number of
   Shares
    	
 
    
	
Stockholder
    	
 
    	
Class A Shares
    	
 
    
	
RICHARD D. KINDER
    	
 
    	
216,492,170
    	
 
    
	
GS CAPITAL PARTNERS   V FUND, L.P.
    	
 
    	
16,227,644
    	
 
    
	
GSCP V OFFSHORE   KNIGHT HOLDINGS, L.P.
    	
 
    	
8,382,523
    	
 
    
	
GSCP V GERMANY   KNIGHT HOLDINGS, L.P.
    	
 
    	
643,371
    	
 
    
	
GS CAPITAL PARTNERS   V INSTITUTIONAL, L.P.
    	
 
    	
5,564,682
    	
 
    
	
GS CAPITAL PARTNERS   VI FUND, L.P.
    	
 
    	
15,764,854
    	
 
    
	
GSCP VI OFFSHORE   KNIGHT HOLDINGS, L.P.
    	
 
    	
13,112,651
    	
 
    
	
GSCP VI GERMANY   KNIGHT HOLDINGS, L.P.
    	
 
    	
560,283
    	
 
    
	
GS CAPITAL PARTNERS VI PARALLEL, L.P.
    	
 
    	
4,335,066
    	
 
    
	
GOLDMAN SACHS KMI INVESTORS, L.P.
    	
 
    	
16,886,427
    	
 
    
	
GSCP KMI INVESTORS,   L.P. 
    	
 
    	
23,245,978
    	
 
    
	
GSCP KMI INVESTORS   OFFSHORE, L.P. 
    	
 
    	
3,365,816
    	
 
    
	
GS INFRASTRUCTURE   KNIGHT HOLDINGS, L.P.
    	
 
    	
19,227,228
    	
 
    
	
GS INSTITUTIONAL   INFRASTRUCTURE PARTNERS I, L.P.
    	
 
    	
724,828
    	
 
    
	
GS GLOBAL   INFRASTRUCTURE PARTNERS I, L.P.
    	
 
    	
6,784,786
    	
 
    
	
HIGHSTAR II KNIGHT   ACQUISITION SUB, L.P.
    	
 
    	
3,156,297
    	
 
    
	
HIGHSTAR III KNIGHT   ACQUISITION SUB, L.P.
    	
 
    	
20,743,460
    	
 
    
	
HIGHSTAR KNIGHT   PARTNERS, L.P.
    	
 
    	
20,239,484
    	
 
    
	
HIGHSTAR KMI   BLOCKER LLC
    	
 
    	
41,131,509
    	
 
    
	
CARLYLE PARTNERS IV   KNIGHT, L.P.
    	
 
    	
54,536,189
    	
 
    
	
CP IV COINVESTMENT,   L.P.
    	
 
    	
5,011,383
    	
 
    
	
CARLYLE ENERGY   COINVESTMENT III, L.P.
    	
 
    	
176,040
    	
 
    
	
CARLYLE/RIVERSTONE   KNIGHT INVESTMENT PARTNERSHIP, L.P.
    	
 
    	
20,123,490
    	
 
    
	
C/R KNIGHT   PARTNERS, L.P.
    	
 
    	
29,773,786
    	
 
    
	
C/R ENERGY III   KNIGHT NON-U.S. PARTNERSHIP, L.P.
    	
 
    	
8,647,642
    	
 
    
	
RIVERSTONE ENERGY   COINVESTMENT III, L.P.
    	
 
    	
826,614
    	
 
    

 

 

EXHIBIT B

 

STOCKHOLDERS’ CONTACT INFORMATION

 

See attached.

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