Document:

Exhibit 10.7

 

EXECUTION COPY

 

ED&F MAN HOLDINGS LIMITED

Cottons Centre

Hay’s Lane

London SE1 2QE

England

 

May 26, 2009

 

Shermen WSC Acquisition Corp.,

Terminal Merger Sub LLC and

Feed Merger Sub LLC

c/o Shermen WSC Acquisition Corp.

230 Park Avenue

Suite 1000

New York, NY 10169

Attention:  Chief Executive Officer

Facsimile:  (212) 332-2475

 

Westway Holdings Corporation,

Westway Terminal Company Inc. and

Westway Feed Products, Inc.

Cottons Centre

Hay’s Lane

London SE1 2QE

England

Attention:
Philip Howell

Facsimile: +44
207 089 8112

 

Ladies and Gentlemen:

 

Reference is made to the Transaction Agreement, dated as of November 25,
2008, as amended and restated as of May 1, 2009 (as so amended and
restated, the “Transaction Agreement”),
by and among Shermen WSC Acquisition Corp., Terminal Merger Sub LLC, Feed Merger Sub LLC, ED&F Man
Holdings Limited, Westway Holdings Corporation, Westway Terminal Company Inc.
and Westway Feed Products, Inc.  Defined terms used herein and not otherwise
defined herein have the meaning ascribed to them in the Transaction
Agreement.  The undersigned hereby agree
as follows:

 

1.             Estimated
Closing Statements.

 

Pursuant to Section 2.9(b)(i) and
Section 3.2(b)(i) of the Transaction Agreement, ED&F is required
to deliver the Estimated Merger Closing Statement and the Estimated

 

 

Stock Sale Closing Statement, respectively,
to Parent at least ten days prior to the Closing Date (the “Ten Day
Requirement”).  Notwithstanding Section 2.9(b)(i) and
Section 3.2(b)(i) of the Transaction Agreement, the Ten Day
Requirement will be satisfied, and ED&F will be deemed to have complied in
all respects with the Ten Day Requirement, so long as it delivers the Estimated
Merger Closing Statement and the Estimated Stock Sale Closing Statement to
Parent at least five days prior to the Closing Date.

 

2.             Purchases of
Parent Common Stock by Parent.

 

Section 7.2
of the Transaction Agreement among other things restricts the ability of Parent
to undertake certain actions prior to the Closing without the consent or approval
of ED&F.  Pursuant to Section 7.2
of the Transaction Agreement, ED&F hereby consents to and approves of the
purchase by Parent of up to 2,514,369 shares of Parent Common Stock in
privately negotiated transactions at a purchase price per share not to exceed
$6.00, which purchases shall be consummated contingent upon the Closing and the
purchase price for which shall be paid either on the Closing Date or within two
Business Days after the Closing (the “Repurchases”).  In addition, Holdings agrees that, upon
execution and delivery of the Stockholder’s Agreement, it will be deemed to
have consented to the consummation of the Repurchases as required under Section 3.1(j) of
the Stockholders’ Agreement.

 

3.             Amendment to Certain Definitions.

 

The definition
of “Common Stock Merger Consideration” in the Transaction Agreement is hereby
amended and restated in its entirety as follows:

 

“Common Stock Merger Consideration” means
24,323,614 shares of Parent Common Stock; provided, however, that if, upon the
issuance of such Parent Common Stock at the Closing and taking into account (a) any
shares of Parent Common Stock converted into cash from the Trust Account
pursuant to Parent’s amended and restated certificate of incorporation, (b) any
shares of Parent Common Stock which Parent agreed to repurchase contingent upon
the Closing with the consent of ED&F, (c) any shares forfeited or
returned or to be forfeited or returned to the Company for cancellation by
Parent Founder in connection with the Closing pursuant to an agreement among
the parties hereto and Parent Founder, dated as of May 26, 2009, and (d) any
shares of Parent Common Stock owned by any ED&F Party immediately prior to
the Closing, the ED&F Parties and their Affiliates would beneficially own
more than 49.5% of the issued and outstanding shares of Parent Common Stock,
such number of shares of Parent Common Stock shall be reduced to that number of
shares that would result in the ED&F Parties and their Affiliates upon the

 

 

Closing beneficially owning 49.5% of the issued and outstanding shares
of Parent Common Stock. For the avoidance of doubt, for purposes of this
definition, “Affiliates” of the ED&F Parties shall not include the Employee
Trust or any Designated Employee.

 

4.             Certain
Employees.

 

Pursuant to Section 7.8(p) of
the Transaction Agreement, ED&F is required to take all actions necessary
in accordance with all applicable Law to provide that the employees listed in Section 7.8(p) of
the Disclosure Schedule cease to be employees of any Transferred Companies
prior to the Effective Time (the “Employee Transfer Requirement”).  Notwithstanding Section 7.8(p) of
the Transaction Agreement, the Employee Transfer Requirement will be satisfied,
and ED&F will be deemed to have complied in all respects with the Employee
Transfer Requirement, with respect to the employees listed in Annex A to this
letter agreement (the “Covered Employees”), so long as it takes all
actions necessary in accordance with all applicable Law to provide that the
Covered Employees cease to be employees of any Transferred Companies as soon as
practicable after ED&F’s new Canadian subsidiary has in place the payroll
and other services necessary to employ the Covered Employees (which may be
after the Effective Time).

 

5.             Guarantee, Indemnity and Letter
Agreement.

 

At the Closing, Parent shall execute and deliver to ED&F (a) the
guarantee in favor of Forth Ports plc in the form attached as Annex B to this
letter agreement, (b) the deed of indemnity between ED&F and Parent in
the form attached as Annex C to this letter agreement, and (c) the letter
agreement between ED&F Man Treasury Management plc and Westway Group, Inc.
in the form attached as Annex D to this letter agreement, and Parent’s
execution and delivery of such guarantee, deed of indemnity and letter
agreement will be a condition to the obligations of the ED&F Parties to
consummate the transactions contemplated by the Transaction Agreement.

 

6.             Delivery of
Certificates Representing Capital Stock

 

Pursuant to Section 4.2(a)(i) of
the Transaction Agreement, ED&F is required to deliver or cause to be
delivered to Parent and the Merger Subs certificates representing (or similar
evidence of ownership of) the shares of capital stock (or other ownership
interests) of the Purchased Companies, duly endorsed in blank or accompanied by
powers duly executed in blank and any necessary Foreign Transfer Agreements
(the “Share Certificate Requirement”). 
Notwithstanding Section 4.2(a)(i) of the Transaction
Agreement, the Share Certificate Requirement will be satisfied, and ED&F
will be deemed to have complied in all respects with the Share Certificate
Requirement with respect to each Purchased Company listed on Annex E to this
Letter Agreement (“Non-Certificate Companies”), so long as it delivers
to Parent and the Merger Subs copies or,

 

 

to the extent available, originals of those
documents listed on Annex E opposite such Purchased Company’s name.

 

7.             Series A
Preferred Stock.

 

In the event that Parent purchases shares of Parent Common Stock as
described in paragraph 2 above, the number of authorized shares of Series A
Preferred Stock in Section 4.1.1 of the Post-Closing Amended and Restated
Certificate of Incorporation included in Exhibit B to the Transaction
Agreement shall be amended by replacing “30,000,000” with “33,000,000.”

 

8.             Forfeiture of Parent Common
Stock.

 

Parent Founder, by its signature below, hereby agrees to return to
Parent for cancellation at the Closing or, if not then permitted to be released
pursuant to the terms of the IPO Stock Escrow Agreement, agrees to provide as
soon as possible after the date hereof, an irrevocable instruction to the
escrow agent under the IPO Stock Escrow Agreement, in form and substance
acceptable to ED&F, to return to Parent for cancellation upon their release
under the IPO Stock Escrow Agreement, 3,266,608 shares of Parent Common Stock,
of which 1,875,000 shares shall be returned to Parent by the Escrow Agent for
cancellation immediately upon their release pursuant to the Stock Escrow
Agreement in the manner specified in Paragraph 9.  It is the intent of the parties that, upon
the Closing and after giving effect to the transactions contemplated hereby,
the greatest number of shares of common stock of Parent that Parent Founder
will have the right to receive is 1,540,000, of which 1,000,000 shares may be
released to Parent Founder only in accordance with the Stock Escrow
Agreement.  If the returns of the numbers
of shares specified in the first sentence of this Paragraph 8 would not result
in such purpose and intent being given effect, the parties shall adjust such
numbers of shares (and such numbers of shares shall be deemed adjusted) to the
extent necessary to give effect to such purpose and intent.

 

9.             Amendments Relating to the Stock
Escrow Agreement.

 

In connection with the forfeiture of 1,875,000 of the shares of Parent
Common Stock described above in paragraph 8, the parties hereto agree that the
number of shares of Parent Common Stock beneficially owned by Parent Founder
remaining in escrow for release to Parent Founder upon the achievement of
certain milestones described in the Stock Escrow Agreement shall be reduced by
1,875,000 shares.  This reduction in the
number of shares of Parent Common Stock that may be released to Parent Founder
pursuant to the Stock Escrow Agreement shall be effected by causing the Escrow
Agent to deliver to Parent for cancellation the number of shares that would
otherwise have been released to Parent Founder under Section 5(c)(ii) of
the Stock Escrow Agreement, until the number of shares to have been so released
to Parent Founder is reduced to zero, and then by causing the Escrow Agent to
deliver to Parent for cancellation the number of shares that otherwise would
have been released to Parent Founder under Section 5(b)(ii) of the Stock
Escrow Agreement.  Parent, Holdings and
Parent Founder shall cause the

 

 

Stock Escrow Agreement to be
amended and restated as soon as possible after the Closing, and shall take any
other actions necessary, to give effect to the purpose and intent of Paragraph
8 and this Paragraph 9.

 

10.           Certain Closing Deliveries and
Conditions; Amendment in Respect of Trust Account; Special Dividend Record
Date.

 

(a)           Notwithstanding the
last recital of the Transaction Agreement and Sections 4.2(b)(vi) and
4.2(b)(ix) of the Transaction Agreement, Parent and Merger Subs shall not
be required to deliver the Stock Exchange Agreement and the Proxy Agreement at
or prior to the Closing, the Stock Exchange Agreement and the Proxy Agreement
will not be executed at Closing and the transactions contemplated thereby will
not be consummated and it shall not be a condition to the Closing that the
Stock Exchange Agreement and the Proxy Agreement be executed and delivered.

 

(b)           Sections 7.19 and
8.3(f) of the Transaction Agreement are hereby amended by replacing the
references therein to the amount of $137,900,000 with references to the amount
of $137,850,000.

 

(c)           Section 7.15 of
the Transaction Agreement among other things requires Parent to cause its board
of directors to declare the special dividend described therein with a record
date (the “Record Date”) that is no fewer than three nor more than five
calendar days after the Closing Date (the Record Date Timing Requirement”).  Notwithstanding such Section 7.l5, the
Record Date Timing Requirement will be satisfied, and Parent will be deemed to
have complied in all respects with the Record Date Timing Requirement, so long
as the Record Date specified in Parent’s board of directors’ declaration of
such special dividend is no later than June 8, 2009.

 

11.           Miscellaneous.

 

This letter
agreement shall be governed by, and construed in accordance with, the laws of
the State of New York without giving effect to its principles or rules of
conflict of laws to the extent such principles or rules would require or
permit the application of the laws of another jurisdiction.  This letter agreement may be executed in
counterparts (including via facsimile or other electronic transmission), each
of which shall be deemed an original, and all of which together shall
constitute one and the same instrument.

 

[remainder of page intentionally
left blank]

 

 

Please confirm that the foregoing is in accordance with your
understanding by signing and returning to us an executed duplicate of this
letter agreement.

 

 

	
   

  	
   

  	
   

  	
  ED&F MAN HOLDINGS LIMITED

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Philip A. Howell

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Philip A. Howell

  
	
   

  	
   

  	
   

  	
   

  	
  Title:  
  Chief Operating Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  Acknowledged
  and agreed as of the date first above written:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WESTWAY HOLDINGS CORPORATION

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Wayne N. Driggers

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Wayne N. Driggers

  	
   

  	
   

  	
   

  
	
   

  	
  Title:  
  Executive Vice President

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WESTWAY TERMINAL COMPANY INC.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Wayne N. Driggers

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Wayne N. Driggers

  	
   

  	
   

  	
   

  
	
   

  	
  Title:  
  President

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WESTWAY FEED PRODUCTS, INC.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Anthony R. Watts

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Anthony R. Watts

  	
   

  	
   

  	
   

  
	
   

  	
  Title:  
  Director/Secretary

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SHERMEN WSC ACQUISITION CORP.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Francis P. Jenkins, Jr.

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Francis P. Jenkins, Jr.

  	
   

  	
   

  	
   

  
	
   

  	
  Title:  
  Chairman and Chief Executive Officer

  	
   

  	
   

  	
   

  

 

 

	
  TERMINAL MERGER SUB LLC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Francis P. Jenkins, Jr.

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Francis P. Jenkins, Jr.

  	
   

  	
   

  	
   

  
	
   

  	
  Title: President

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  FEED MERGER SUB LLC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Francis P. Jenkins, Jr.

  	
   

  	
   

  	
   

  
	
   

  	
  Name: Francis P. Jenkins, Jr.

  	
   

  	
   

  	
   

  
	
   

  	
  Title: President

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Solely as to Paragraphs 8, 9 and 11 above:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SHERMEN WSC HOLDING LLC

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Francis P. Jenkins, Jr.

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  

 

 

Cc:

 

Cottons Centre

Hay’s Lane

London SE1 2QE

England

Attention:
Philip Howell

Facsimile: +44
207 089 8112

 

Dewey &
LeBoeuf LLP

1301 Avenue of
the Americas

New York, NY
10019

Attention: Alexander M. Dye, Esq.

Facsimile:
(212) 259-6333

 

Dechert LLP

Cira Centre

2929 Arch Street

Philadelphia, PA  19104

Attention:  Craig L. Godshall, Esq.

Facsimile:  (215) 994-2222

 

 

ANNEX A

 

COVERED EMPLOYEES

 

 

ANNEX B

 

FORM OF 

GUARANTEE

 

 

ANNEX C

 

FORM OF

DEED OF INDEMNITY

 

 

ANNEX D

 

FORM OF

LETTER AGREEMENT

 

 

ANNEX E

 

	
  Purchased
  Company

  	
   

  	
  Document(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ED&F Man
  Korea Ltd.

  	
   

  	
  ·     Stock Transfer
  Agreement 

   

  ·     Original Company
  Registry 

   

  ·     Copy of the
  Shareholder Ledger 

   

  ·     Copy of Foreign
  Invested Enterprise Certificate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Westway Terminals Nederland B.V.

  	
   

  	
  ·     Stock Transfer
  Agreement 

   

  ·     Certified Articles
  of Association and English translation 

   

  ·     Original Extract
  from the Chamber of Commerce

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Westway Terminals Esbjerg ApS

  	
   

  	
  ·     Stock Transfer
  Agreement

   

  ·     Legal Confirmation
  executed by Rasmus Mehl dated May 26, 2009 

   

  ·     Original Extract
  from Danish Registry

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Westway Terminals
  Poland sp. zo.o

  	
   

  	
  ·     Stock Transfer
  Agreement 

   

  ·     Original Notarial
  Deed 

   

  ·     As soon as
  reasonably practicable following Closing a copy and an original of the
  extract from the Polish RegistryExhibit 10.8

 

$100,000,000

 

FACILITY
AGREEMENT

 

dated 28
May 2009

 

for

 

WESTWAY
GROUP, INC.

WESTWAY HOLDINGS NETHERLANDS BV

as borrowers

 

WESTWAY
GROUP, INC.

as guarantor

 

with

 

E D &
F MAN TREASURY MANAGEMENT PLC

as lender

 

 

INTERIM FACILITY AGREEMENT

 

 

 

THIS AGREEMENT is made on 28 May 2009

 

BETWEEN

 

(1)                          WESTWAY GROUP, INC. as borrower (the “Company”);

 

(2)                          WESTWAY HOLDINGS NETHERLANDS BV as borrower (“Westway Netherlands”,
together with the Company as borrower, the “Borrowers”);

 

(3)                          WESTWAY GROUP, INC. as guarantor in respect of the obligations of Westway Netherlands
(the “Guarantor”); and

 

(4)                          E D & F MAN TREASURY MANAGEMENT
PLC as lender (the “Lender”).

 

IT IS AGREED as follows:

 

1.                               DEFINITIONS -

 

1.1                         In this Agreement:

 

“Applicable Rate”
means:

 

(a)                          in relation to any amount in the Base Currency or an Optional
Currency in respect of which LIBOR exists, LIBOR; and

 

(b)                         in relation to any amount in any other Optional Currency in respect
of which LIBOR does not exist, the rate nominated by the Lender representing
the average cost to the Lender of funding that amount in that Optional Currency
from whatever source it may reasonably select.

 

“Available Facility” means the amount of the
Facility minus (a) the amount of any outstanding Loans; and (b) in relation
to any proposed utilisation, the amount of any Loans that are due to be made on
or before the proposed utilisation date.

 

“Availability Period” means the period from
and including the date of this Agreement to and including the date falling 30
days after the date of this Agreement (or if that date is not a Business Day,
the next Business Day).

 

“Base Rate” means dollars.

 

“Base Currency Amount” means, in relation to a Loan, the
amount specified in the utilisation request delivered by a Borrower for that
Loan (or, if the amount requested is not denominated in the Base Currency, that
amount converted into the Base Currency at an exchange rate nominated by the
Lender on the date which is three Business Days before the utilisation date or,
if later, on the date the Lender receives the utilisation request).

 

“Business Day” means a day (other than a
Saturday or Sunday) on which banks are open for general business in London,
Amsterdam and New York.

 

“Facility” means the loan facility in an
aggregate amount of $100,000,000 made available under this Agreement to the
extent not cancelled or reduced under this Agreement.

 

“Finance Document” means this Agreement and
any other document designated as a “Finance Document” by the Lender and the
Company.

 

“Group” means the Guarantor and its
Subsidiaries for the time being.

 

“Increased Costs” means:

 

(a)                         a reduction in the rate of return from the Facility or on Lender’s
(or its affiliate’s) overall capital;

 

(b)                        an additional or increased cost; or

 

(c)                         a reduction of any amount due and payable under any Finance
Document,

 

which
is incurred or suffered by the Lender or any of its affiliates to the extent
that it is attributable to the Lender having entered into a commitment or
funding or performing its obligations under any Finance Document.

 

1

 

“LIBOR”
means, in
relation to any amount in a relevant currency on which interest for a given
period is to accrue,  the applicable screen rate as at 11.00 a.m.
on a relevant calculation date for the offering of deposits of that amount in that
currency for one month and the “screen rate”
means the British Bankers’ Association Interest Settlement Rate for that
currency for one month displayed on pages “LIBOR01” and “LIBOR02” of the
Reuters screen.

 

“Loan” means a loan made or to be made under
the Facility or the principal amount outstanding for the time being of that
loan.

 

“Margin” means 3.50 per cent. per annum.

 

“Obligor” means a Borrower or the Guarantor.

 

“Optional Currency”  means any currency
other than the Base Currency as agreed by the Lender.

 

“Party” means a party to this Agreement.

 

“Permanent Facility Agreement” means a
$100,000,000 facility agreement which will be entered into by the Parties to
replace this Agreement incorporating arm’s length financing terms typically
seen in the London market for corporate loans to obligors such as the Obligors.

 

“Subsidiary” means a subsidiary within the
meaning of section 1159 of the Companies Act 2006 of England and Wales.

 

“Tax” means any tax, levy, impost, duty or
other charge or withholding of a similar nature (including any penalty or
interest payable in connection with any failure to pay or any delay in paying
any of the same).

 

2.                               LOANS

 

2.1                         A Borrower may utilise the Facility by delivering a written request
to the Lender no later than 1 p.m. (London time) on the third Business Day
prior to the proposed utilisation date, or in such other form and with such
lesser notice as the Lender may agree. The currency of a loan specified in a
request shall be the Base Currency, unless the Lender agrees otherwise.

 

2.2                         On receipt of a valid Borrower’s request pursuant to Clause 2.1, the
Lender agrees, subject to the maximum aggregate amount of the Facility, that it
shall make the requested Loan to the relevant Borrower at the time and in the
amount specified in such request provided that no demand for repayment has been
made by the Lender prior to such Loan being made.

 

2.3                         Each Borrower shall apply all amounts borrowed by it under the
Facility towards its general corporate purpose.

 

3.                               INTEREST

 

3.1                         Interest shall be payable on the date of repayment of each Loan on
the amount of that Loan outstanding at the rate per annum which is the sum of
the Margin and the Applicable Rate and shall be calculated on the basis of the
number of days elapsed and a 360 day year or, in any case where the practice in
the relevant interbank market (as nominated by the Lender for the purpose of
calculating the Applicable Rate) differs, in accordance with that market
practice.

 

2

 

3.2                         If an Obligor fails to pay any amount payable by it under a Finance
Document on its due date, interest shall accrue on the overdue amount from the
due date up to the date of actual payment (both before and after judgment) at a
rate which is one per cent. higher than the rate referred to in Clause 3.1
above.

 

4.                               REPAYMENT

 

Each
Borrower which has drawn a Loan shall repay that Loan (together with all
interest accrued thereon) upon the earlier of: (i) the date falling 30
days after the making of that Loan (or if that day is not a Business Day, the
next Business Day); (ii) the end of the Availability Period; and (iii) a
Lender’s demand for repayment at any time, or as otherwise agreed between that
Borrower and the Lender. The Borrowers shall have no right to prepay any Loan
without the prior consent of the Lender.

 

5.                               FEES

 

5.1                         Commitment Fees - The
Borrowers shall pay to the Lender a fee in the Base Currency computed at the
rate of 1.4 per cent per annum on the Available Facility for the Availability
Period and shall be jointly and severally liable for this fee.  The accrued commitment fee is payable on the
last day of each successive period of one month which ends during the
Availability Period, on the last day of the Availability Period and upon any
repayment following a Lender’s demand pursuant to Clause 4(iii).

 

5.2                         Up-front fee - The
Borrowers shall pay to the Lender a fee in the Base Currency computed at the
rate of 1.5 per cent of the uncancelled amount of the Facility on the day
falling 180 days after the date of this Agreement and shall be jointly and
severally liable for this fee.

 

6.                               GUARANTEE

 

6.1                         Guarantee and indemnity - In consideration for the Lender agreeing to make Loans in accordance
with this Agreement, the Guarantor irrevocably and unconditionally:

 

6.1.1                           guarantees to the Lender punctual performance by Westway Netherlands
of all its obligations under the Finance Documents;

 

6.1.2                           undertakes with the Lender that whenever Westway Netherlands does
not pay any amount when due under or in connection with any Finance Document,
the Guarantor shall immediately on demand pay that amount as if it was the
principal obligor; and

 

6.1.3                           indemnifies the Lender immediately on demand against any cost, loss
or liability suffered by the Lender if any obligation guaranteed by it is or
becomes unenforceable, invalid or illegal. 
The amount of the cost, loss or liability shall be equal to the amount
which the Lender would otherwise have been entitled to recover.

 

6.2                         Continuing guarantee - This guarantee is a continuing guarantee and will extend to the
ultimate balance of sums payable by Westway Netherlands under the Finance
Documents, regardless of any intermediate payment or discharge in whole or in
part.

 

6.3                         Reinstatement - If any payment by any Obligor or any discharge given by the Lender
(whether in respect of the obligations of any Borrower or any security for
those obligations or otherwise) is avoided or reduced as a result of insolvency
or any similar event:

 

6.3.1                           the liability of each Borrower shall continue as if the payment,
discharge, avoidance or reduction had not occurred; and

 

6.3.2                           the Lender shall be entitled to recover the value or amount of that
security or

 

3

 

payment from each Borrower, as if the
payment, discharge, avoidance or reduction had not occurred.

 

6.4                         Waiver of defences - The obligations of the Guarantor under this Clause 6 will not be
affected by any act, omission, matter or thing which, but for this Clause,
would reduce, release or prejudice any of its obligations under this Clause 6
(without limitation and whether or not known to it or the Lender) including:

 

6.4.1                          any time, waiver or consent granted to, or composition with, any Obligor
or other person;

 

6.4.2                          the release of any other Obligor or any other person under the terms
of any composition or arrangement with any creditor of any member of the Group;

 

6.4.3                          the taking, variation, compromise, exchange, renewal or release of,
or refusal or neglect to perfect, take up or enforce, any rights against, or
security over assets of, any Obligor or other person or any non-presentation or
non-observance of any formality or other requirement in respect of any
instrument or any failure to realise the full value of any security;

 

6.4.4                          any incapacity or lack of power, authority or legal personality of
or dissolution or change in the members or status of an Obligor or any other
person;

 

6.4.5                          any amendment, novation, supplement, extension (whether of maturity
or otherwise) or restatement (in each case however fundamental and of whatever
nature, and whether or not more onerous) or replacement of a Finance Document
or any other document or security;

 

6.4.6                          any unenforceability, illegality or invalidity of any obligation of
any person under any Finance Document or any other document or security; or

 

6.4.7                          any insolvency or similar proceedings.

 

6.5                         Guarantor Intent - Without prejudice to the generality of Clause 6.4 (Waiver of Defences), the Guarantor
expressly confirms that it intends that this guarantee shall extend from time
to time to any (however fundamental and of whatsoever nature and whether or not
more onerous) variation, increase, extension or addition of or to any of the
Finance Documents and/or any facility or amount made available under any of the
Finance Documents for the purposes of or in connection with any of the
following: business acquisitions of any nature; increasing working capital;
enabling investor distributions to be made; carrying out restructurings;
refinancing existing facilities; refinancing any other indebtedness; making
facilities available to new borrowers; any other variation or extension of the
purposes for which any such facility or amount might be made available from
time to time; and any fees, costs and/or expenses associated with any of the
foregoing.

 

6.6                         Immediate recourse - The Guarantor waives any right it may have of first requiring the
Lender (or any trustee or agent on its behalf) to proceed against or enforce
any

 

4

 

other
rights or security or claim payment from any person before claiming from the
Guarantor under this Clause 6.  This
waiver applies irrespective of any law or any provision of a Finance Document
to the contrary.

 

6.7                         Appropriations - Until all amounts which may be or become payable by the Obligors
under or in connection with the Finance Documents have been irrevocably paid in
full, the Lender (or any trustee or agent on its behalf) may:

 

6.7.1                          refrain from applying or enforcing any other moneys, security or
rights held or received by the Lender (or any trustee or agent on its behalf)
in respect of those amounts, or apply and enforce the same in such manner and
order as it sees fit (whether against those amounts or otherwise) and the
Guarantor shall not be entitled to the benefit of the same; and

 

6.7.2                          hold in an interest-bearing suspense account any moneys received
from the Guarantor or on account of the Guarantor’s liability under this Clause
6.

 

6.8                           Deferral of Guarantor’s rights - Until all amounts which may be or become payable by the Obligors
under or in connection with the Finance Documents have been irrevocably paid in
full and unless the Lender otherwise directs, the Guarantor will not exercise
any rights which it may have by reason of performance by it of its obligations
under the Finance Documents:

 

6.8.1                          to be indemnified by a Borrower;

 

6.8.2                          to claim any contribution from any other guarantor of any Obligor’s
obligations under the Finance Documents; and/or

 

6.8.3                          to take the benefit (in whole or in part and whether by way of
subrogation or otherwise) of any rights of the Lender under the Finance
Documents or of any other guarantee or security taken pursuant to, or in
connection with, the Finance Documents by the Lender.

 

If the
Guarantor receives any benefit, payment or distribution in relation to such
rights it shall hold that benefit, payment or distribution to the extent
necessary to enable all amounts which may be or become payable to the Lender by
the Obligors under or in connection with the Finance Documents to be repaid in
full on trust for the Lender and shall promptly pay or transfer the same to the
Lender.

 

6.9                         Additional security - This guarantee is in addition to and is not in any way prejudiced by
any other guarantee or security now or subsequently held by the Lender.

 

7.                               INDEMNITIES

 

7.1                         The Borrowers shall, on a joint and several basis, within three
Business Days of a demand by the Lender pay for the account of the Lender:

 

7.1.1                           an amount equal to the loss, liability or cost which the Lender
determines will be or has been (directly or indirectly) suffered for or on
account of Tax by the

 

5

 

Lender in respect of a Finance Document or the
transactions occurring under such Finance Document;

 

7.1.2                           the amount of any Increased Costs incurred by the Lender of any of
its affiliates as a result of (i) the introduction of or any change in (or
in the interpretation, administration or application of) any law or regulation
or (ii) compliance with any law or regulation made after the date of this
Agreement; and

 

7.1.3                           the amount of all documented out of pocket costs and expenses
(including, but not limited to, legal fees) reasonably incurred by the Lender
in connection with:

 

(a)                   the negotiation, preparation, printing and execution of this
Agreement and any other documents referred to in this Agreement and any other
Finance Documents executed after the date of this Agreement;

 

(b)                  responding to, evaluating, negotiating or completing with any
Borrower’s request to amend, waive or consent to any conditions to, this
Agreement; and

 

(c)                   the enforcement of, or the preservation of any rights under, any
Finance Document.

 

7.2                           The Borrowers shall, on a joint and several basis, within three
Business Days of a demand by the Lender indemnify the Lender against any cost,
loss or liability incurred by the Lender as a result of:

 

7.2.1                          a failure by an Obligor to pay any amount due under a Finance
Document on its due date;

 

7.2.2                          funding, or making arrangements to fund, a Loan requested by a
Borrower in a utilisation request but not made by reason of the operation of
any one or more of the provisions of this Agreement (other than by reason of
default or negligence by the Lender);

 

7.2.3                          investigating any event which is reasonably believes is a default;

 

7.2.4                          acting or relying on any notice, request or instruction which it
reasonably believes to be genuine, correct and appropriately authorised; and

 

7.2.5                          any reasonable steps taken by the Lender (in consultation with the
Company) to mitigate any circumstances which arise and which would result in
any amount becoming payable under or pursuant to, or cancelled pursuant to, the
Finance Documents.

 

7.3                           If any sum due from an Obligor under the Finance Documents (a “Sum”), or any order, judgment or award given or made in
relation to a Sum, has to be converted from the currency (the “First Currency”) in which the Sum is payable into another
currency (the “Second Currency”) for the purpose
of:

 

7.3.1        making
or filing a claim or proof against that Obligor; or

 

7.3.2        obtaining or
enforcing an order, judgment or award in relation to any litigation or
arbitration proceedings,

 

the Obligors
shall as an independent obligation, within three Business Days of demand,
jointly and severally indemnify the Lender against any cost, loss or liability
arising out of or as a result of the conversion including any discrepancy
between (A) the rate of exchange used to convert the Sum from the First
Currency into the Second Currency and (B) the rate or rates of exchange
available to the Lender at the time of its receipt of that Sum.

 

7.4                           Each Obligor waives any right it may have in any jurisdiction to pay
any amount under the Finance Documents in a currency or currency unit other
than that in which it is expressed to be payable.

 

8.                                 CURRENCY

 

8.1                           Subject to Clause 8.2 to 8.5 below, the Base Currency is the
currency of account and payment for any sum due from an Obligor under any
Finance Document.

 

8.2                           A repayment of any amount due under any Finance Document shall be
made in the currency in which that amount is denominated on its due date.

 

8.3                           Each payment of interest shall be made in the currency in which the
sum in respect of which the interest is payable was denominated when that
interest accrued.

 

8.4                           Each payment in respect of costs, expenses, liability or Taxes shall
be made in the currency in which the costs, expenses, liability or Taxes are
incurred.

 

8.5                           Any amount expressed to be payable in a currency other than the Base
Currency shall be paid in that other currency.

 

6

 

9.                               PAYMENTS

 

9.1                         Unless required by law and unless the Obligors and the Lender agree
otherwise, all payments made by an Obligor hereunder shall be made free and
clear of and without any deduction for or on account of any tax, set-off or
counterclaim.

 

9.2                         If a deduction is required by law to be made by an Obligor from a
payment under a Finance Document, the amount of the payment due from that
Obligor shall be increased to an amount which (after making such deduction)
leaves an amount equal to the payment which would have been due if no such
deduction has been required.

 

10.                         MISCELLANEOUS

 

10.1                   No Party may assign any of its rights or transfer any of its rights
or obligations under the Finance Documents.

 

10.2                   Any term of the Finance Documents may be amended or waived only in
writing with the consent of the Lender and each of the Obligors.

 

10.3                   A party who is not a Party has no right under the Contracts (Rights
of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of
this Agreement.

 

10.4                   Each Finance Document may be executed in any number of counterparts,
and this has the same effect as if the signatures on the counterparts were on a
single copy of the Finance Document.

 

10.5                   The Lender hereby notifies each Obligor that pursuant to the
requirements of the USA Patriot Act, the Lender is required to obtain, verify
and record information that identifies such Obligor, which information includes
the name and address of such Obligor and other information that will allow the
Lender to identify such Obligor in accordance with the USA Patriot Act.

 

10.                         GOVERNING LAW AND JURISDICTION

 

10.1                   This Agreement shall be governed by English law and the courts of
England have exclusive jurisdiction to settle any dispute arising out of or in
connection with this Agreement (including a dispute relating to the existence,
validity or termination of this Agreement or the consequences of its nullity)
(a “Dispute”).

 

10.2                   The Parties agree that the courts of England are the most
appropriate and convenient courts to settle Disputes and accordingly no Party
will argue to the contrary.

 

11.                         PERMANENT FACILITY AGREEMENT

 

11.1                   Each Party hereby agrees and acknowledges that this Agreement is
being entered into on the common understanding that an English law governed
Permanent Facility Agreement will replace it as soon as reasonably
practicable.  To this end, each of the
Parties hereby agrees that it will:

 

11.1.1                    continue to expeditiously negotiate the Permanent Facility Agreement
in good faith with a view to agreeing its terms and conditions, which will
include, inter alia, normal representations, warranties, covenants, events of
default; and other terms consistent with normal practice in the London market
for corporate loans to obligors such as the Obligors; and

 

7

 

11.1.2                    execute the Permanent Facility Agreement in full replacement of this
Agreement as soon as reasonably practicable once it has been agreed and in any
case, prior to the date falling 30 days from the date of this Agreement,
provided that the Lender will not be obliged to enter into the Permanent
Facility Agreement if any of the Obligors are in default of this Agreement.

 

AS WITNESS the hands of
the duly authorised representatives of the parties hereto the day and year
first before written.

 

8

 

The Company as Borrower

 

WESTWAY GROUP, INC.

 

	
  By:

  	
  /s/ Thomas A. Masilla, Jr.

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  365 Canal Street, Suite 2900, New Orleans, LA
  70130, USA

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  (504)
  522-1638

  	
   

  

 

 

Westway Netherlands as
Borrower

 

WESTWAY HOLDINGS
NETHERLANDS BV

	
   

  	
   

  
	
  By:

  	
  /s/ Francis P. Jenkins III

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
   

  

 

 

The Guarantor

 

WESTWAY GROUP, INC.

 

	
  By:

  	
  /s/ Peter J.M. Harding

  	
   

  
	
   

  	
   

  	
   

  
	
  Address:

  	
  365 Canal Street, Suite 2900, New Orleans, LA
  70130, USA

  	
   

  
	
   

  	
   

  	
   

  
	
  Fax:

  	
  (504)
  522-1638

  	
   

  

 

 

The Lender

 

E D & F MAN TREASURY MANAGEMENT PLC

 

	
  By:

  	
  /s/ Molly W. Harvey

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  Cottons Centre, Hay’s Lane, London SE1 2QE, U.K.

  
	
   

  	
   

  
	
  Fax:

  	
  0044-207-089-8430

  

 

9

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