Document:

ex10-1.htm

Exhibit 10.1

 

 

VOTING AGREEMENT

 

THIS VOTING AGREEMENT, dated as of June 10, 2014 (this “Agreement”), is entered into by and among BioFuel Energy Corp., a Delaware corporation (“Company”), and the stockholders of the Company listed on Schedule A hereto (each, a “Stockholder” and collectively, the “Stockholders”). Capitalized terms used herein but not defined shall have the meanings given to them in the Transaction Agreement (as defined below).

 

RECITALS:

 

WHEREAS, the Company and the other parties named therein are concurrently herewith entering into a Transaction Agreement (as may be amended, supplemented or otherwise modified, the “Transaction Agreement”);

 

WHEREAS, as of the date hereof, each Stockholder Beneficially Owns the Stockholder Existing Shares (each such term as hereinafter defined); and

 

WHEREAS, as a condition to the willingness of and material inducement to the Company to enter into the Transaction Agreement and to consummate the Transactions, each Stockholder has agreed to enter into this Agreement, pursuant to which such Stockholder is agreeing, among other things, to vote or cause to be voted all of the Securities (as hereinafter defined) it Beneficially Owns in accordance with the terms of this Agreement;

 

NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties, covenants and agreements contained herein, and intending to be legally bound hereby, the parties hereto hereby agree as follows:

 

Section 1.               Certain Definitions. For purposes of this Agreement:

 

(a)           “Beneficially Own” or “Beneficial Ownership” with respect to any securities means having “beneficial ownership” of such securities as determined pursuant to Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

(b)           “Company Shares” means, collectively, the shares of common stock, par value $0.01 per share, of the Company and the Class B common stock, par value $0.01 per share, of the Company.

 

(c)           “Securities” means the Stockholder Existing Shares together with any Company Shares and other securities of the Company which the Stockholder and/or any of its controlled Affiliates acquires Beneficial Ownership of after the date hereof and prior to the termination of this Agreement whether upon the exercise of options, warrants or rights, the conversion or exchange of convertible or exchangeable securities, or by means of purchase, dividend, distribution, split-up, recapitalization, combination, exchange of shares or the like, gift, bequest, inheritance or as a successor in interest in any capacity or otherwise.

 

(d)           “Stockholder Existing Shares” means the Company Shares as set forth on Schedule A hereto. In the event of a stock dividend or distribution, or any change in the Company Shares by reason of any stock dividend, split-up, recapitalization, combination, exchange of shares or the like, the term “Stockholder Existing Shares” will be deemed to refer to and include all such stock dividends and distributions and any shares into which or for which any or all of the Stockholder Existing Shares may be changed or exchanged as well as the Stockholder Existing Shares that remain.

 

 

 

  

  

  

 

 

 

Section 2.              Representations and Warranties of Stockholder. Each Stockholder, severally and not jointly and severally, hereby represents and warrants to the Company as follows:

 

(a)           Ownership of Company Shares. As of the date hereof and at all times prior to the termination of this Agreement, such Stockholder Beneficially Owns (and will Beneficially Own, unless any Stockholder Existing Shares are transferred pursuant to Section 6(a) hereof) the Stockholder Existing Shares set forth opposite such Stockholder’s name on Schedule A. Such Stockholder’s investment manager, has and will have at all times through the termination of this Agreement, voting power, power of disposition, power to issue instructions with respect to the matters set forth in Section 7 hereof, and power to agree to all of the matters set forth in this Agreement, in each case with respect to the Stockholder Existing Shares set forth opposite such Stockholder’s name on Schedule A, with no limitations, qualifications or restrictions on such power, subject to applicable securities laws and the terms of this Agreement. As of the date hereof, neither such Stockholder nor any of its Affiliates Beneficially Owns any Securities other than the Company Shares listed on Schedule A.  None of the Stockholder Existing Shares of such Stockholder is the subject of any commitment, undertaking or agreement, contingent or otherwise, the terms of which relate to or could give rise to the transfer of any Stockholder Existing Shares or would affect in any way the ability of such Stockholder to perform its obligations as set out in this Agreement. Such Stockholder has not appointed or granted any proxy inconsistent with this Agreement with respect to the Securities Beneficially Owned by such Stockholder.

 

(b)           Authority. Such Stockholder’s investment manager has the requisite power to agree to all of the matters set forth in this Agreement with respect to the Securities such Stockholder Beneficially Owns and the full authority to vote, transfer and hold all the Securities such Stockholder Beneficially Owns, subject to applicable securities laws and the terms of this Agreement.

 

(c)           Power; Binding Agreement. Such Stockholder has the legal capacity and authority to enter into this Agreement and to perform all of such Stockholder’s obligations under this Agreement. This Agreement has been duly and validly executed and delivered by such Stockholder and constitutes a valid and binding agreement of such Stockholder, enforceable against such Stockholder in accordance with its terms, subject to the Bankruptcy and Equity Exception.

 

(d)           No Conflicts. None of the execution and delivery of this Agreement by such Stockholder, the consummation by such Stockholder of any of the transactions contemplated hereby or compliance by such Stockholder with any of the provisions hereof (i) conflicts with, or results in any breach of, any provision of the certificate of incorporation and the bylaws or comparable organizational documents of such Stockholder, (ii) violates any order, writ, injunction, decree, judgment, or Law applicable to such Stockholder or any of such Stockholder’s properties or assets, (iii) results in or constitutes (with or without notice or lapse of time or both) any breach of or default under, or results in the creation of any Lien (as defined below) on, such Stockholder or any of the Securities of such Stockholder, including pursuant to any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation to which such Stockholder is a party or by which the Securities of such Stockholder are bound or (iv) except for the requirements of the Exchange Act, requires any filing with, or permit, authorization, consent or approval of, any Governmental Authority. There is no beneficiary, trustee or holder of a voting trust certificate or other interest in such Stockholder whose consent is required for the execution and delivery of this Agreement or the performance by such Stockholder of the obligations hereunder.

 

 

 

  

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(e)           No Liens. Except as permitted by this Agreement, such Stockholder Existing Shares are now and at all times during the term hereof will be, and the Securities will be, held by such Stockholder, free and clear of all liens, proxies, powers of attorney, voting trusts and voting agreements and arrangements (collectively, “Liens”), except for any such Liens arising hereunder, under applicable federal and state securities Laws and/or any Liens that are not material to the performance of any of such Stockholder’s obligations under this Agreement by such Stockholder.

 

(f)           No Litigation. There is no Action outstanding, pending or, to the knowledge of such Stockholder, threatened against or affecting such Stockholder or the Securities of such Stockholder at law or in equity before or by any Governmental Authority or any other person that could reasonably be expected to impair the ability of such Stockholder to perform its obligations hereunder on a timely basis.

 

Section 3.              Representations and Warranties of the Company. The Company hereby represents to each Stockholder as follows:

 

(a)           Power; Binding Agreement. The Company has the corporate power and authority to enter into and perform all of its obligations under this Agreement. This Agreement has been duly and validly executed and delivered by the Company and constitutes a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, subject to the Bankruptcy and Equity Exception.

 

(b)           No Conflicts. None of the execution and delivery of this Agreement by the Company, the consummation by the Company of any of the transactions contemplated hereby or compliance by the Company with any of the provisions hereof (i) conflicts with, or results in any breach of, any provision of the certificate of incorporation or by-laws of the Company, (ii) violates any order, writ, injunction, decree, judgment, or Law applicable to the Company, any of its subsidiaries or any of their respective properties or assets or (iii) except for the requirements of the Exchange Act, requires any filing with, or permit, authorization, consent or approval of, any Governmental Authority, except in the case of clauses (ii) and (iii) where such violations or failures to make or obtain any filing with, or permit, authorization, consent or approval of, any Governmental Authority would not, individually or in the aggregate, materially impair the ability of the Company to perform this Agreement.

 

 

 

  

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Section 4.              Disclosure. Each Stockholder (a) consents to and authorizes the publication and disclosure by the Company of such Stockholder’s identity and ownership of the Securities and the existence and terms of this Agreement (including, for the avoidance of doubt, the disclosure of this Agreement) and any other information, in each case, in any press release, any Current Report on Form 8-K, the Proxy Statement, the Registration Statement and any other disclosure document in connection with the Transaction Agreement and any filings with or notices to any Governmental Authority in connection with the Transaction Agreement (or the transactions contemplated thereby); provided, that the Company shall provide the Stockholders with the opportunity to review and comment upon such publication or disclosure prior to its release and (b) agrees promptly to give to the Company any information about such Stockholder it may reasonably request for the preparation of any such documents. The Company hereby consents to and authorizes the publication and disclosure by the Stockholders of the existence and terms of this Agreement (including, for the avoidance of doubt, the disclosure of this Agreement) and any other information, in each case, that any Stockholder reasonably determines in its good faith judgment is required to be disclosed by Law, including in any Schedule 13D/A filing or any filing pursuant to the HSR Act.

 

Section 5.              Additional Securities. Each Stockholder hereby agrees that, during the period commencing on the date hereof and continuing until the earlier of the Closing or the date the Transaction Agreement is terminated in accordance with its terms, such Stockholder shall not acquire, directly or indirectly, any additional Securities other than in connection with the Rights Offering (solely for up to its pro rata share of the Common Stock), the Common Stock Issuance or the LLC Unit Conversion (including pursuant to Section 9(b) hereof).

 

Section 6.              Transfer and Other Restrictions. Prior to the termination of this Agreement, each Stockholder, severally and not jointly and severally, hereby irrevocably and unconditionally agrees not to, and to cause each of its controlled Affiliates not to, directly or indirectly:

 

(a)           offer for sale, sell, transfer, tender, pledge, encumber, assign or otherwise dispose of, or enter into any contract, option or other arrangement or understanding with respect to, or consent to the offer for sale, sale, transfer, tender, pledge, encumbrance, assignment or other disposition of (including by merger or otherwise by operation of law), or enter into a loan of (collectively, “transfer”), any or all of the Securities it Beneficially Owns or any interest therein, except (i) as provided in Section 2(e) hereof or (ii) transfers of Securities it Beneficially Owns to an Affiliate; provided that such Affiliate shall have: (A) executed a counterpart of this Agreement and (B) agreed in writing to hold such Securities (or interest in such Securities) subject to all of the terms and provisions of this Agreement;

 

(b)           grant any proxy or power of attorney with respect to any of the Securities it Beneficially Owns, or deposit any of the Securities it Beneficially Owns into a voting trust or enter into a voting agreement or arrangement with respect to any such Securities except as provided in this Agreement or any proxy or power of attorney granted in favor of its investment manager on terms not inconsistent with the terms of this Agreement; or

 

(c)           take any other action that would prevent or materially impair the Stockholder from performing any of its obligations under this Agreement or that would make any representation or warranty of such Stockholder hereunder untrue or have the effect of preventing or materially impairing the performance by the Stockholder of any of its obligations under this Agreement.

 

 

 

  

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Any purported transfer in violation of this Section 6 shall be null and void.

 

Section 7.              Voting of the Company Shares. Each Stockholder hereby irrevocably and unconditionally agrees that, during the period commencing on the date hereof and continuing until termination of this Agreement in accordance with its terms, at any meeting (whether annual or special and whether or not an adjourned or postponed meeting) of the holders of the Company Shares, however called, each Stockholder and each of its controlled Affiliates that acquires Beneficial Ownership of any Securities will appear at such meeting or otherwise cause the Securities to be counted as present thereat for purposes of establishing a quorum, and will vote (or cause to be voted) the Securities (a) in favor of (i) the approval of the Transaction Agreement, the Transactions and the various elements thereof, the Charter Amendment, and any other action required in furtherance thereof or necessary for the consummation of the Transactions and (ii) any proposal or recommendation by the Buyer Board or the Special Committee to adjourn or postpone the meeting for any reason, including to solicit additional votes and (b) against any action or agreement that would (i) result in a breach of any covenant, representation or warranty or any other obligation of the Company contained in the Transaction Agreement or (ii) be reasonably likely to impede, interfere with, materially delay, frustrate the purposes of or prevent the Transactions.

 

Section 8.              Proxy Card. Each Stockholder hereby IRREVOCABLY appoints the Company and any designee thereof as its proxy and attorney-in-fact (with full power of substitution), to vote or cause to be voted (including by proxy or written consent, if applicable) the Securities in accordance with Section 7 at any annual or special meeting of the stockholders of the Company, however called, including any adjournment or postponement thereof, at which any of the matters described in Section 7 is to be considered. Each Stockholder hereby represents that all proxies, powers of attorney, instructions or other requests given by such Stockholder prior to the execution of this Agreement in respect of the voting of such Stockholder’s Securities, if any, are not irrevocable and such Stockholder hereby revokes (or causes to be revoked) any and all previous proxies, powers of attorney, instructions or other requests with respect to such Stockholder’s Securities. Each Stockholder shall take such further action or execute such other instruments as may be necessary to effectuate the intent of this proxy. THE PROXY AND POWER OF ATTORNEY SET FORTH IN THIS SECTION 8 ARE IRREVOCABLE AND COUPLED WITH AN INTEREST.  The proxy and power of attorney set forth in this Section 8 shall automatically terminate upon the termination of this Agreement.

 

Section 9.              Rights Offering; LLC Unit Conversion.

 

(a)          Each Stockholder acknowledges that the Company intends to conduct a rights offering for shares of its Common Stock in connection with the Acquisition (the “Rights Offering”) and that the LLC does not intend to conduct an economically equivalent offering, private placement or similar transaction with respect to LLC Units. Subject to the terms hereof, including the obligations of the Company pursuant to Section 9(b), each Stockholder hereby waives any right or claim it may have as a beneficial owner of LLC Units to participate in the Rights Offering with respect to such LLC Units and agrees that neither the Company nor the LLC shall have any liability (whether direct or indirect) to it in respect of any dilution it may experience as a beneficial owner of LLC Units as a result of the Rights Offering.  Notwithstanding the foregoing, nothing in this Agreement shall prevent any Stockholder from participating in the Rights Offering with respect to Common Stock Beneficially Owned by such Stockholder including Common Stock Beneficially Owned by such Stockholder as a result of the conversion of LLC Units into Common Stock after the date hereof but on or prior to the record date for the Rights Offering.

 

 

 

  

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(b)           Each Stockholder hereby agrees and commits to participate in the Rights Offering for its full pro rata share of Common Stock Beneficially Owned as of the record date for the Rights Offering (subject to the terms and conditions of a commitment letter to be entered into between the Company and each Stockholder on terms substantially similar to the Backstop Agreement).  In addition, the Company and each Stockholder hereby agree and commit, to the extent such Stockholder does not convert its LLC Units into Common Stock on or prior to the record date for the Rights Offering, the Company shall sell to such Stockholder and such Stockholder shall purchase from the Company, simultaneously with the consummation of the Rights Offering and at a per share purchase price in cash equal to the per share purchase price in the Rights Offering, the number of shares of Common Stock equivalent to the number of shares of Common Stock it would have purchased pursuant to the Rights Offering had it (i) converted all of its LLC Units on or prior to the record date for the Rights Offering, (ii) acquired subscription rights in the Rights Offering on the shares of Common Stock resulting from such conversion and (iii) exercised all of such subscription rights.  The purchase and sale of the Common Stock contemplated by the foregoing structure shall be subject to the terms and conditions of a commitment letter to be entered into between the Company and each Stockholder on terms substantially similar to the Backstop Agreement.  Notwithstanding the foregoing, each Stockholder’s obligation to purchase shares of Common Stock pursuant to this Section 9(b) shall be limited so that Greenlight collectively will not own more than 49.9% of the issued and outstanding Common Stock after the consummation of the Acquisition, the LLC Unit Conversion, the Rights Offering and the transactions contemplated by the Backstop Agreements.

 

(c)           Each Stockholder hereby agrees and commits to convert all LLC Units it Beneficially Owns into Common Stock on the Closing Date and nothing in this Agreement shall prevent any Stockholder from doing so at any time up to (and including) the Closing Date.

 

(d)           Each Stockholder hereby agrees to not take any action (other than those actions contemplated by the Transaction Documents) prior to the earlier of the termination of the Transaction Agreement and the Closing that would cause the Company’s NOLs or other tax attributes (as described in Section 4.13 of the Transaction Agreement) to become subject to limitation under Section 382 of the Code or otherwise.

 

(e)           Each Stockholder hereby agrees to use its reasonable best efforts to obtain commitments from a sufficient number of investors to backstop the full amount of the Rights Offering and to execute a Backstop Agreement in substantially the form attached as Exhibit C to the Transaction Agreement as soon as reasonably practicable but in no event later than the date of filing of the Registration Statement.

 

 

 

  

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Section 10.            Termination. This Agreement shall terminate on the earliest to occur of: (a) termination of the Transaction Agreement in accordance with its terms; (b) delivery of a written notice of the Company to terminate this Agreement; and (c) the Closing; provided, that the provisions set forth in Section 5 and Section 9 shall survive the termination of this Agreement until the earlier of (x) termination of the Transaction Agreement in accordance with its terms and (y) the Closing, and the provisions set forth in Section 4 and Section 10 11 shall survive the termination of this Agreement indefinitely; provided, further, that any liability incurred by any party hereto as a result of a breach of a term or condition of this Agreement prior to such termination shall survive the termination of this Agreement.

 

Section 11.            Miscellaneous.

 

(a)           Entire Agreement. This Agreement (including the documents and instruments referred to herein) constitutes the entire agreement among the parties hereto 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.

 

(b)           Successors and Assigns. This Agreement shall not be assigned by operation of Law or otherwise without the prior written consent of the other parties hereto. This Agreement shall be binding upon, inure to the benefit of and be enforceable by each party, and each party’s respective heirs, beneficiaries, executors, representatives, successors and permitted assigns.

 

(c)           Amendment; Modification and Waiver. This Agreement may not be amended, altered, supplemented or otherwise modified or terminated except upon the execution and delivery of a written agreement executed by (i) each Stockholder and (ii) the Company, but only upon approval of the Special Committee.

 

(d)           No Ownership Interest. Nothing contained in this Agreement shall be deemed to vest in the Company any direct or indirect ownership or incident of ownership of or with respect to any Securities. All rights, ownership and economic benefits of and relating to the Securities shall remain vested in and belong to each Stockholder and its respective Affiliates, if any.

 

(e)           Interpretation. When a reference is made in this Agreement to sections or subsections, such reference shall be to a section or subsection of this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The words “herein,” “hereof,” “hereunder” and words of similar import shall be deemed to refer to this Agreement as a whole, including any schedules and exhibits hereto, and not to any particular provision of this Agreement. Any pronoun shall include the corresponding masculine, feminine and neuter forms. References to “party” or “parties” in this Agreement means each Stockholder and the Company. References to “US dollar,” “dollars,” “US$” or “$” in this Agreement are to the lawful currency of the United States of America.

 

 

 

  

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(f)           Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing (in the English language) and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by facsimile, by registered or certified mail (postage prepaid, return receipt requested) or by electronic email transmission (so long as a receipt of such e-mail is requested and received) to the respective parties at the following addresses (or at such other address for a party as shall be specified by like notice):

 

	 	
(i)

	
if to a Stockholder, to:

 

	 	  	
Greenlight Capital, Inc.

2 Grand Central Tower

140 East 45 Street, Floor 24

New York, NY 10017

	 	  	
Attention:

	
Andy Weinfeld

Harry Brandler

	 	  	
Facsimile:

Email:

	
(212) 973 – 9219

aweinfeld@GreenlightCapital.com

hbrandler@GreenlightCapital.com

 

	 	  	
with a copy (which shall not constitute notice) to:

 

	 	  	
Akin Gump Strauss Hauer and Feld LLP

One Bryant Park

New York, NY 10036

	 	  	
Attention:

	
Kerry Berchem

	 	  	
Facsimile:

Email:

	
(212) 872 – 1002

kberchem@akingump.com

	 	  	  	  
	 	
(ii)

	
if to the Company, to:

 

	 	  	
Biofuel Energy Corp.

1600 Broadway, Suite 1740

Denver, CO 80202

	 	  	
Attention:

	
Mark Zoeller

	 	  	
Facsimile:

Email:

	
(303) 592 – 8117

mzoeller@bfenergy.com

 

  

 

 

  

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with a copy (which shall not constitute notice) to:

 

	 	  	
Cravath, Swaine & Moore LLP

Worldwide Plaza

825 Eighth Avenue

New York, NY 10019

	 	  	
Attention:

	
Eric L. Schiele

Craig F. Arcella

	 	  	
Facsimile:

Email:

	
(212) 474 – 3700

eschiele@cravath.com

carcella@cravath.com

 

(g)           Severability. In the event that any provision of this Agreement or the application thereof, becomes or is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Agreement will continue in full force and effect and the application of such provision to other persons or circumstances will be interpreted so as reasonably to effect the intent of the parties hereto. The parties further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the economic, business and other purposes of such void or unenforceable provision.

 

(h)           Other Remedies; Specific Performance. Except as otherwise provided herein, any and all remedies herein expressly conferred upon a party will be deemed cumulative with and not exclusive of any other remedy conferred hereby, or by Law or equity upon such party, and the exercise by a party of any one remedy will not preclude the exercise of any other remedy. No failure or delay on the part of any party hereto in the exercise of any right hereunder will impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor will any single or partial exercise of any such right preclude other or further exercise thereof or of any other right. The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached or threatened to be breached. Accordingly, each of the parties shall be entitled to specific performance of the terms hereof, including an injunction or injunctions to prevent breaches or threatened breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in the Chancery Court of the State of Delaware (or if jurisdiction is not then available in the Chancery Court of the State of Delaware, then any state or United States Federal court within the State of Delaware), this being in addition to any other remedy to which such party is entitled at Law or in equity. Each party hereby waives (i) any defense in any action for specific performance that a remedy at Law would be adequate, and (ii) any requirement under any Law to post security as a prerequisite to obtaining equitable relief to which they are entitled at Law or in equity.

 

(i)            No Survival. None of the representations, warranties, covenants and agreements made in this Agreement shall survive the termination of the Agreement in accordance with its terms, except for the agreements in Section 4 and this Section 11 which shall survive the termination of this Agreement indefinitely, and except for the agreements in Section 5 and Section 9 which shall survive the termination of this Agreement until the earlier of (x) termination of the Transaction Agreement in accordance with its terms and (y) the Closing.

 

 

 

  

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(j)            No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to or shall confer upon any Person other than the parties hereto and their respective successors and permitted assigns any legal or equitable right, benefit or remedy of any nature under or by reason of this Agreement, except as specifically set forth in this Agreement.

 

(k)           Governing Law. This Agreement shall be governed and construed in accordance with the Laws of the State of Delaware, without regard to any applicable conflicts of law principles.

 

(l)            Jurisdiction. Each of the parties hereto hereby agrees that: (i) all Actions arising out of or relating to this Agreement shall be heard and determined exclusively in the Chancery Court of the State of Delaware (or if jurisdiction is not then available in the Chancery Court of the State of Delaware, then any state or United States Federal court within the State of Delaware); (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court; and (iii) a final judgment in any Action 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 hereto irrevocably consents to the service of process outside the territorial jurisdiction of the courts referred to in this Section 11(l) in any such Action by mailing copies thereof by registered or certified United States mail, postage prepaid, return receipt requested, to its address as specified in or pursuant to this Section 11.  However, the foregoing shall not limit the right of a party to effect service of process on any  other party by any other legally available method.

 

(m)          WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION BETWEEN THE PARTIES HERETO ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

(n)           Expenses. All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses.

 

(o)           Counterparts. This Agreement may be executed in one or more counterparts, and by facsimile or .pdf format, all of which shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each of the parties and delivered to the other party, it being understood that all parties need not sign the same counterpart; provided, however, that if any Stockholder fails for any reason to execute, or perform such Stockholder’s obligations under, this Agreement, this Agreement shall remain effective as to all parties executing this Agreement.

 

(p)           Capacity as a Stockholder. The Stockholders make their agreements and understandings herein solely in their capacities as record holders and Beneficial Owners of the Company Shares and, notwithstanding anything to the contrary herein, nothing herein shall limit or affect any actions taken by a representative of any Stockholder solely in his capacity as a director of the Company.

 

 

 

 

[Signature pages follow]

 

 

 

  

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IN WITNESS WHEREOF, the parties hereto have signed or have caused this Agreement to be signed by their respective officers or other authorized persons thereunto duly authorized as of the date first written above.

 

	 	
GREENLIGHT CAPITAL QUALIFIED, L.P.

By: Greenlight Capital, Inc., its investment manager

 

	 
	 	 	 	 
	
 

	
By: 

	/s/ Daniel Roitman / Harry Brandler	 
	 	Name: 	Daniel Roitman / Harry Brandler	 
	 	Title: 	Chief Operating Officer / Chief Financial Officer	 
	 	 	 	 

 

 

 

	 	
GREENLIGHT CAPITAL, L.P.

By: Greenlight Capital, Inc., its investment manager

 

	 
	 	 	 	 
	
  

	
By: 

	/s/ Daniel Roitman / Harry Brandler	 
	 	Name: 	Daniel Roitman / Harry Brandler	 
	 	Title: 	Chief Operating Officer / Chief Financial Officer	 
	 

 

 

 

	 	

GREENLIGHT CAPITAL OFFSHORE PARTNERS

By: Greenlight Capital, Inc., its investment manager

 

	 
	 	 	 	 
	
  

	
By: 

	/s/ Daniel Roitman / Harry Brandler	 
	 	Name: 	Daniel Roitman / Harry Brandler	 
	 	Title: 	Chief Operating Officer / Chief Financial Officer	 
	 

 

 

 

	 	

GREENLIGHT REINSURANCE, LTD.

By: DME ADVISORS, L.P., its investment manager

 

	 
	 	 	 	 
	
  

	
By: 

	/s/ Daniel Roitman / Harry Brandler	 
	 	Name: 	Daniel Roitman / Harry Brandler	 
	 	Title: 	Chief Operating Officer / Chief Financial Officer	 
	 

 

 

 

 

 

  

[Signature page to Voting Agreement]

  

 

 

 

	 	

GREENLIGHT CAPITAL (GOLD), LP

By: DME CAPITAL MANAGEMENT, LP, its investment manager

 

	 
	 	 	 	 
	
  

	
By: 

	/s/ Daniel Roitman / Harry Brandler	 
	 	Name: 	Daniel Roitman / Harry Brandler	 
	 	Title: 	Chief Operating Officer / Chief Financial Officer	 
	 

 

 

 

	 	

GREENLIGHT CAPITAL OFFSHORE MASTER (GOLD), LTD.

By: DME CAPITAL MANAGEMENT, LP, its investment manager

 

	 
	 	 	 	 
	
  

	
By: 

	/s/ Daniel Roitman / Harry Brandler	 
	 	Name: 	Daniel Roitman / Harry Brandler	 
	 	Title: 	Chief Operating Officer / Chief Financial Officer	 
	 

 

 

 

 

 

 

 

  

[Signature page to Voting Agreement]

  

 

 

 

	 	

BIOFUEL ENERGY CORP.

 

	 
	 	 	 	 
	
  

	
By: 

	/s/ Scott H. Pearce	 
	 	Name: 	Scott H. Pearce	 
	 	Title: 	President & CEO	 
	 

 

 

 

 

 

 

 

  

[Signature page to Voting Agreement]

  

 

 

SCHEDULE A

 

	
Stockholder

	 	
Common Stock

	 	 	
Class B Common Stock

	 
	
Greenlight Capital Qualified, L.P.

	 	 	96,388	 	 	 	553,968	 
	
Greenlight Capital, L.P.

	 	 	18,400	 	 	 	149,932	 
	
Greenlight Capital Offshore Partners

	 	 	967,239	 	 	 	---	 
	
Greenlight Reinsurance, Ltd.

	 	 	266,236	 	 	 	---	 
	
Greenlight Capital (Gold), LP

	 	 	30,434	 	 	 	77,055	 
	
Greenlight Capital Offshore Master (Gold), Ltd.

	 	 	52,378	 	 	 	---Unassociated Document

Exhibit 10.2

 

 

 

 

CONFIDENTIAL

June 10, 2014

 

BioFuel Energy Corp.

1600 Broadway, Suite 2200

Denver, Colorado 80202

Attention:  General Counsel

BioFuel Energy Corp.

$150,000,000 Term Loan Facility

Commitment Letter

 

Ladies and Gentlemen:

 

You have advised one or more funds and accounts managed by Greenlight Capital, Inc. and its affiliates (collectively, “Greenlight” or the “Initial Lender”) that you intend to acquire (the “Acquisition”) the equity interests of the entities on Schedule I hereto and their direct and indirect subsidiaries (collectively, “JBGL”) from persons previously disclosed to us (the “Sellers”), and to consummate the other Transactions (such term and each other capitalized term used but not defined herein having the meaning assigned to such term in the Summary of Principal Terms and Conditions attached hereto as Exhibit A (the “Term Sheet”)).

 

You have further advised us that, in connection therewith, subject to the conditions set forth herein, BioFuel Energy Corp. (“the Borrower”) will obtain a secured term loan (the “Facility”) described in the Term Sheet, in an aggregate principal amount of up to $150,000,000 (subject to increase as described in the Term Sheet).

 

1.           Commitment.

 

In connection with the foregoing, Greenlight is pleased to advise you of its commitment to provide 100% of the principal amount of the Facility, upon the terms and subject to the conditions set forth in this commitment letter (including the Term Sheet and other attachments hereto, this “Commitment Letter”).  Notwithstanding any other provision of this Commitment Letter to the contrary and notwithstanding any assignment by Greenlight pursuant to Section 4 of this Commitment Letter, (i) Greenlight shall not be relieved or novated from its obligations under this Commitment Letter (including its obligation to fund the Facility on the Closing Date on the terms and conditions hereof pursuant to this Section 1) in connection with any assignment or participation of the Facility until the initial funding of the Facility on the Closing Date and (ii) Greenlight shall retain exclusive control over all rights and obligations with respect to its commitment in respect of the Facility, including all rights with respect to consents, modifications, supplements and amendments, until the Closing Date has occurred.

 

 

 

  

  

BioFuel Energy Corp.

June 10, 2014

Page 2

 

 

2.           Conditions Precedent.

 

The Initial Lender’s commitment hereunder is subject to (a) the negotiation, execution and delivery of definitive documentation with respect to the Facility consistent herewith, consistent with the description of such definitive documentation in the “Definitive Documentation” section of the Term Sheet and otherwise reasonably satisfactory to each of us and you, (b) the consummation of the Acquisition simultaneously or substantively simultaneously with the closing under the Facility in accordance with applicable law and on the terms described in the Term Sheet and the Transaction Agreement, (c) the consummation of the Rights Offering (together with the proceeds from any Incremental Financing) in at least an amount specified in the Transaction Agreement, and (d) the condition that, after giving effect to the Transactions, the Borrower and its subsidiaries shall have outstanding no indebtedness, liens securing indebtedness or preferred stock, other than (i) the loans and other extensions of credit under the Facility, (ii) the indebtedness and liens of JBGL and its subsidiaries listed on Section 2.15(a)(iii) of the disclosure schedules to the Transaction Agreement, (iii) indebtedness and liens of JBGL and its subsidiaries expressly permitted to be incurred after the date hereof under the Transaction Agreement and any other indebtedness and liens of JBGL and its subsidiaries existing on the date of the Transaction Agreement not in excess of $250,000 individually and (iv) other limited indebtedness and liens to be agreed upon.  Each of the parties hereto agrees that the foregoing conditions and those set forth in the “Conditions Precedent to Borrowing” section of the Term Sheet are the only conditions to the Initial Lender’s commitment to fund the Facility on the Closing Date on the terms and conditions hereof.

 

Notwithstanding any other provision of this Commitment Letter, it is understood and agreed that (A) other than with respect to any UCC Filing Collateral or Possessory Collateral (each as defined below), to the extent that any Collateral cannot be delivered, or a security interest therein cannot be perfected, on the Closing Date after your use of commercially reasonable efforts to do so, the delivery of, or perfection of a security interest in, such Collateral shall not constitute a condition precedent to the availability of the Facility on the Closing Date, but such Collateral shall instead be required to be delivered, or a security interest therein perfected, after the Closing Date pursuant to arrangements and timing to be mutually agreed by the parties hereto acting reasonably, (B) with respect to perfection of security interests in UCC Filing Collateral, your sole obligation shall be to deliver, or cause to be delivered, necessary UCC financing statements to the Agent and to irrevocably authorize and to cause the applicable Guarantor to irrevocably authorize the Agent to file such UCC financing statements and (C) with respect to perfection of security interests in Possessory Collateral, your sole obligation shall be to deliver to the Agent Possessory Collateral together with undated powers executed in blank (which obligation, in the case of Possessory Collateral representing capital stock of any of the entities on Schedule I hereto or any of their direct and indirect subsidiaries, shall be limited to only such Possessory Collateral delivered to you by JBGL prior to the Closing Date).  For purposes hereof, (1) “UCC Filing Collateral” means Collateral consisting of assets of the Borrower, the entities listed on Schedule I hereto and their respective subsidiaries for which a security interest can be perfected by filing a Uniform Commercial Code financing statement and (2) “Possessory Collateral” means Collateral consisting of the stock certificates representing capital stock of the subsidiaries of the Borrower and of the entities on Schedule I hereto and their direct and indirect subsidiaries, in each case, required to be delivered as Collateral pursuant to the Term Sheet. This paragraph and the provisions herein shall be referred to as the “Certain Funds Provisions”.

 

 

 

  

  

BioFuel Energy Corp.

June 10, 2014

Page 3

 

 

3.           Expenses.

 

You agree, if the Closing Date occurs,  to reimburse the Initial Lender from time to time, upon presentation of a reasonably detailed summary statement, for all reasonable documented fees, disbursements and other charges of one outside counsel (and if reasonably necessary, of one local counsel in any relevant jurisdiction)) in an amount not to exceed $500,000, in each case, incurred in connection with the Facility and the preparation, negotiation and enforcement of this Commitment Letter, the definitive documentation for the Facility and any ancillary documents or security arrangements in connection therewith.

 

4.           Assignments; Amendments; Governing Law, Etc.

 

This Commitment Letter shall not be assignable by you without the prior written consent of each other party hereto (and any attempted assignment without such consent shall be null and void), is intended to be solely for the benefit of the parties hereto, and is not intended to confer any benefits upon, or create any rights in favor of, any person other than the parties hereto.  The Initial Lender may assign its commitment hereunder (subject to the provisions set forth in this Commitment Letter) to one or more prospective lenders.  This Commitment Letter may not be amended or any provision hereof waived or modified except by an instrument in writing signed by each of us and you.  This Commitment Letter may be executed in any number of counterparts, each of which shall be an original and all of which, when taken together, shall constitute one agreement.  Delivery of an executed counterpart of a signature page of this Commitment Letter by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.  Section headings used herein are for convenience of reference only, are not part of this Commitment Letter and are not to affect the construction of, or to be taken into consideration in interpreting, this Commitment Letter.  This Commitment Letter supersedes all prior understandings, whether written or oral, between us with respect to the Facility.  THIS COMMITMENT LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

Please note that the Initial Lender and its affiliates do not provide tax, accounting or legal advice.  Notwithstanding any other provision herein, this Commitment Letter does not limit the disclosure of any tax strategies.

 

5.           Jurisdiction.

 

Each of the parties hereto hereby irrevocably and unconditionally (a) submits, for itself and its property, to the exclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in the County of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Commitment Letter or the transactions contemplated hereby, and agrees that all claims in respect of any such action or proceeding may be heard and determined only in such New York State court or, to the extent permitted by law, in such Federal court, (b) waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Commitment Letter or the transactions contemplated hereby in any New York State court or in any such Federal court, (c) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court, and (d) 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. You and we agree that service of any process, summons, notice or document by registered mail addressed to you or us shall be effective service of process for any suit, action or proceeding brought in any such court.

 

 

 

  

  

BioFuel Energy Corp.

June 10, 2014

Page 4

 

 

6.           Waiver of Jury Trial.

 

EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS COMMITMENT LETTER OR THE PERFORMANCE OF SERVICES HEREUNDER.

 

7.           Surviving Provisions.

 

The reimbursement, jurisdiction, governing law, service of process, venue and waiver of jury trial provisions contained herein shall remain in full force and effect regardless of whether definitive financing documentation shall be executed and delivered and notwithstanding the termination of this Commitment Letter or the Initial Lender’s commitment hereunder.

 

8.           PATRIOT Act Notification.

 

We hereby notify you that pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “PATRIOT Act”), each lender is required to obtain, verify and record information that identifies the Borrower and the Guarantors, which information includes the name, address, tax identification number and other information regarding the Borrower and the Guarantors that will allow such lender to identify the Borrower and the Guarantors in accordance with the PATRIOT Act.  This notice is given in accordance with the requirements of the PATRIOT Act and is effective as to each lender under the Facility.

 

 

 

  

  

BioFuel Energy Corp.

June 10, 2014

Page 5

 

 

9.           Acceptance and Termination.

 

If the foregoing correctly sets forth our agreement with you, please indicate your acceptance of the terms of this Commitment Letter by returning to us executed counterparts hereof.  The Initial Lender’s commitment hereunder will expire automatically and without further action or notice and without further obligation to you at such time in the event that we have not received such executed counterparts in accordance with the immediately preceding sentence.  In the event that (i) the Closing Date does not occur on or before November 4, 2014, (ii) the Transaction Agreement is validly terminated without the consummation of the Acquisition having occurred or (iii) the closing of the Acquisition occurs without the use of the Facility, then this Commitment Letter and the Initial Lender’s commitment hereunder shall automatically terminate without further action or notice and without further obligation to you unless each of us shall, in our discretion, agree to an extension.

 

 

 

 

 

 

 

 

[Remainder of this page intentionally left blank]

 

 

  

  

  

 

 

We are pleased to have been given the opportunity to assist you in connection with the financing for the Transactions.

 

 

	 	
Very truly yours,

 

Greenlight Capital, Inc.,

 

on behalf of its affiliated funds and managed 

accounts

	 
	 	 	 	 
	
 

	
By: 

	/s/ Daniel Roitman / Harry Brandler	 
	 	 	Name: Daniel Roitman / Harry Brandler	 
	 	 	Title:   COO / CFO	 
	 	 	 	 

 

 

 

 

 

 

 

  

[Signature Page To Commitment Letter]

  

 

 

 

	
Accepted and agreed to as of

the date first above written:

	
 

BIOFUEL ENERGY CORP.

 

	By: 	/s/ Scott H. Pearce	 
	 	Name: Scott H. Pearce
	 	Title:   President & CEO

 

 

  

[Signature Page To Commitment Letter]

  

 

 

Schedule I

 

JBGL Entities To Be Acquired

 

JBGL Exchange, LLC

 

JBGL Willow Crest, LLC

 

JBGL Hawthorne, LLC

 

JBGL Inwood, LLC

 

JBGL Chateau, LLC

 

JBGL Castle Pines, LP

 

JBGL Castle Pines Management, LLC

 

JBGL Lakeside, LLC

 

JBGL Mustang, LLC

 

JBGL Kittyhawk, LLC

 

JBGL Builder Finance, LLC

 

 

 

  

Schedule I-1

  

 

 

EXHIBIT A

 

BioFuel Energy Corp.

$150,000,000 Term Loan Facility

Summary of Principal Terms and Conditions

 

 

	
Borrower:

	
BioFuel Energy Corp. (the “Company” or the “Borrower”).  As a result of the Transaction described below, the Company will own, directly or indirectly, 100% of the equity interests of the entities on Schedule I to the Commitment Letter and their direct and indirect subsidiaries (collectively, “JBGL”).

	
Transactions:

	
The Company intends to acquire (the “Acquisition”) equity interests of JBGL pursuant to a Transaction Agreement (including all exhibits and schedules thereto, the “Transaction Agreement”). In connection with the Acquisition, (a) prior to and contingent upon the closing of the Acquisition, the Company will consummate the Rights Offering (as defined in the Transaction Agreement) (the “Rights Offering”), (b) as part of the Acquisition, the Company will issue shares of common stock (the “Equity Issuance”) to the Sellers as the Equity Consideration (as defined in the Transaction Agreement), (c) the Company will obtain the Facility (as defined below) and (d) fees and expenses incurred in connection with the foregoing (collectively, the “Transaction Costs”) will be paid.  The transactions described in this paragraph are collectively referred to herein as the “Transactions”.

	
Initial Lender:

	
One or more funds and accounts managed by Greenlight Capital, Inc. (“Greenlight” or the “Initial Lender”)

	
Agent:

	
A Greenlight affiliate will act as sole administrative agent and collateral agent (collectively, in such capacities, the “Agent”), and will perform the duties customarily associated with such roles.

	
Definitive Documentation:

	
The definitive documentation for the term loan facility described herein (the “Facility”) shall be based upon the Loan Agreement, dated September 24, 2010, by and among the Company, the lenders listed as lenders on Schedule 1.1(a) attached thereto and Greenlight APE, LLC, as administrative agent for the lenders, and will include changes in form and substance reasonably satisfactory to the Borrower and the Initial Lenders by taking into account the terms set forth in the Commitment Letter, differences as to the types of facility contemplated therein and the Facility, and differences related to the Company, JBGL, their subsidiaries and their businesses, as well as the Transactions, and modifications will be made to reflect changes in law or accounting standards.

 

 

 

 

  

Ex. A-1

  

 

 

 

	
Facility:

	
A senior secured term loan (“Loan” or “Loans”) in an aggregate principal amount of up to $150,000,000 plus, if necessary, the Incremental Financing; provided, however, that no more than the Maximum Draw Amount (as defined below) shall be available.  As used herein, “Incremental Financing” means an amount equal to $70,000,000 minus the amount of (i) the cash proceeds from the Rights Offering (including any proceeds from backstop commitments with respect thereto) and (ii) the concurrent sale of common stock of the Borrower to holders of the LLC Units (as defined in the Transaction Agreement); provided, however, that, if (x) the aggregate commitments under the Backstop Agreements (as defined in the Transaction Agreement (but excluding any Backstop Agreements entered into by Greenlight)) plus (y) the aggregate commitments by Greenlight under Section 9(b) of the Voting Agreement (without giving effect to any limitation thereof pursuant to the last sentence of Section 9(b)) equals or exceeds $70,000,000, then the Incremental Financing shall be zero.

	
Purpose:

	
The proceeds of the Facility will be used by the Company, on the date of the initial borrowing under the Facility (the “Closing Date”), together with the proceeds of the Rights Offering and Equity Issuance and the Company’s cash on hand, solely (a) to pay the purchase price under the Transaction Agreement, (b) to pay the Transaction Costs and (c) subject to the Working Capital Cap, for general corporate purposes.

	
Availability:

	
The Facility must be drawn in a single drawing on the Closing Date and the amount of the borrowing may not exceed (such amount, the “Maximum Draw Amount”) the amount of the Cash Consideration (as defined in the Transaction Agreement) less the amount of the cash proceeds from the Rights Offering (including any backstop commitments with respect thereto) less the amount of cash-on-hand of the Borrower immediately prior to giving effect to the Transactions (but reflecting the Transaction Costs) plus an amount designated by the Initial Lender for general corporate purposes (the “Working Capital Cap”).  Amounts borrowed under the Facility that are repaid or prepaid may not be reborrowed.

 

 

 

  

Ex. A-2

  

 

 

 

	
Interest Rate:

	
9% per annum from the Closing through the first anniversary of the Closing and 10% per annum thereafter, in each case, payable in cash on a quarterly basis; provided that the Borrower shall have the one-time right to elect to pay up to one year’s cash interest in kind (“PIK”), which PIK payment shall be added to the outstanding principal amount of the Facility and thereafter bear interest in accordance with the terms hereunder.

	
Default Rate:

	
Upon and during the continuance of any payment or bankruptcy event of default, overdue principal, interest, fees and other overdue amounts shall bear interest at the applicable interest rate plus 2.0% per annum.

	
Final Maturity:

	
The Facility will mature on the date that is five (5) years after the Closing Date.

	
Amortization:

	
None.

	
Guarantees:

	
All obligations of the Borrower under the Facility will be unconditionally guaranteed (the “Guarantees”) by each existing and subsequently acquired or organized domestic subsidiary of the Company, including, without limitation, the entities listed on Schedule I to the Commitment Letter and their existing and subsequently acquired or organized domestic subsidiaries (the “Guarantors”); provided, however, that no guarantee shall be required if (x) such guarantee is prohibited or restricted by applicable law or by contract existing on the Closing Date (including, for the avoidance of doubt, any governing document of any entity not wholly owned by the Borrower after the closing of the Transactions), including any requirement to obtain the consent of any governmental authority or third party, unless such consent has been obtained, (y) such guarantee would result in adverse tax consequences or (z) the parties reasonably determine that the cost of obtaining such guarantee is excessive in relation to the value of the guarantee to be provided thereby.

	
Security:

	
Subject to the Certain Funds Provisions, the Facility and the Guarantees will be secured by (collectively, the “Collateral”) (1) a first priority lien on substantially all the owned assets of the Borrower and each Guarantor (other than the assets described in clause (2) below), whether owned on the Closing Date or thereafter acquired, including, but not limited to: (a) a perfected pledge of all the equity interests held by the Borrower or any Guarantor and (b) perfected security interests in, and mortgages on, substantially all owned tangible and intangible assets of the Borrower and each Guarantor and (2) a second priority lien on the assets of any Guarantor that are subject to valid and perfected liens in existence immediately prior to the Acquisition or any renewal or replacement thereof or substitution therefor (the “Target Existing Liens”) securing indebtedness of JBGL and any of its subsidiaries in existence immediately prior to the Acquisition or any refinancing thereof (the “Target Existing Indebtedness”) to the extent such second priority lien is permitted by the documents governing such Target Existing Liens and Target Existing Indebtedness or otherwise consented to by the requisite holder(s) thereof, subject, in the case of each of clauses (1) and (2), to exclusions for (x) pledges and security interests with respect to which the parties reasonably determine that the costs of obtaining are excessive in relation to the value of the security to be afforded thereby, (y) pledges and security interests prohibited or restricted by applicable law or by contract existing on the Closing Date (including, for the avoidance of doubt, any governing document of any entity not wholly owned by the Borrower after the closing of the Transactions), including any requirement to obtain the consent of any governmental authority or third party, unless such consent has been obtained, and (z) permitted liens and certain other customary exceptions.

 

Notwithstanding anything to the contrary, the Collateral shall exclude the following:  (A)(i) any immaterial fee-owned real property and any leasehold interest; (ii) motor vehicles and other assets subject to certificates of title; and (iii) any assets to the extent a security interest in such assets would result in adverse tax consequences.

 

 

 

  

Ex. A-3

  

 

 

 

	
Mandatory Prepayments:

	
100% of the net cash proceeds from (i) the issuance or incurrence of debt of Borrower or any of its subsidiaries (other than permitted debt) and (ii) the issuance of any equity interests of Borrower, shall be applied to prepay the loans under the Facility, subject to customary and other exceptions to be agreed upon.

 

Notwithstanding the foregoing, each lender under the Facility shall have the right to reject its pro rata share of any mandatory prepayments described above, in which case the amounts so rejected may be retained by the Borrower.

	
Voluntary Prepayments:

	
Voluntary prepayments of borrowings thereunder will be permitted at any time, in minimum principal amounts to be agreed upon.

 

 

 

 

  

Ex. A-4

  

 

 

 

	
Call Premium:

	
In connection with any prepayments of the loans under the Facility prior to the second anniversary of the Closing Date, the Borrower will be subject to a prepayment premium of 1.0% of the principal amount of any portion of the Facility prepaid.

	
Representations and Warranties:

	
The following representations and warranties will apply, subject to customary and other exceptions and qualifications to be agreed upon: organization, existence and power; authorization; execution and delivery; enforceability; no conflict with charter documents or applicable law; Federal Reserve Margin regulations; PATRIOT Act and other similar money laundering or anti-terrorism laws; OFAC, FCPA; the Investment Company Act; solvency on a consolidated basis; and, subject to the Certain Funds Provisions, validity, priority and perfection of security interests in the Collateral.

	
Conditions Precedent to Borrowing:

	
Limited to the following: delivery of reasonably satisfactory customary legal opinion of counsel for the Company, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the Patriot Act, corporate documents and officers’ and public officials’ certifications for the Borrower and the Guarantors; subject to the Certain Funds Provisions, perfected security interests in the Collateral (free and clear of all liens, subject to customary and other permitted liens); customary insurance certificates and endorsements; execution of the Guarantees, which shall be in full force and effect; evidence of authority for the Borrower and the Guarantors; payment of fees and expenses; accuracy in all material respects of the representations and warranties described in the “Representations and Warranties” section of this Term Sheet; accuracy of the representations and warranties in the Transaction Agreement made by or with respect to the entities listed on Schedule I to the Commitment Letter and their direct and indirect subsidiaries (the “Transaction Agreement Representations”); provided, however, that the only Transaction Agreement Representations, the accuracy of which shall be a condition to the funding of the Facility on the Closing Date, shall be such of the Transaction Agreement Representations as are material to the interests of the lenders, but only to the extent that the Company has the right to terminate its obligations under the Transaction Agreement or to decline to consummate the Transactions as a result of an inaccuracy of one or more of such Transaction Agreement Representations.

	  	
The initial borrowing under the Facility will also be subject to the applicable conditions precedent set forth in the Commitment Letter.

 

 

 

  

Ex. A-5

  

 

 

 

	
Affirmative Covenants:

	
The following affirmative covenants will apply (to be applicable to the Company and its subsidiaries), subject to customary and other baskets, exceptions and qualifications to be agreed upon: maintenance of corporate existence and rights; performance and payment of obligations; delivery of consolidated financial statements (accompanied by an audit opinion from nationally recognized auditors that is not subject to any qualification as to “going concern” or the scope of such audit and customary MD&A), an annual budget and other information of Borrower, including information required under the PATRIOT Act; delivery of notices of default, material litigation, ERISA events and material adverse change; maintenance of properties in good working order; maintenance of books and records; maintenance of customary insurance; compliance with laws; inspection of books and properties; environmental; additional guarantors; additional real estate assets; leases; additional collateral; further assurances in respect of collateral matters; use of proceeds; and payment of taxes.

	
Negative Covenants:

	
The following negative covenants will apply (to be applicable to the Company and its subsidiaries), subject to customary exceptions and qualifications to be agreed upon:

	  	
1.

	
Limitation on dispositions of assets outside the ordinary course of business and changes of business and ownership.

	  	
2.

	
Limitation on mergers and acquisitions.

	  	
3.

	
Limitations on dividends and stock repurchases and optional redemptions (and optional prepayments) of subordinated debt.

	  	
4.

	
Limitation on indebtedness (including guarantees and other contingent obligations) and preferred stock with exceptions for the Target Existing Indebtedness and other debt incurrence capacity to be agreed.

	  	
5.

	
Limitation on liens and further negative pledges with exceptions for the Target Existing Liens and other lien incurrence capacity to be agreed.

 

 

 

  

Ex. A-6

  

 

 

 

	  	
6.

	
Limitation on transactions with affiliates.

	  	
7.

	
Limitation on changes in the business of the Company and its subsidiaries.

	  	
8.

	
Limitation on restrictions of subsidiaries to pay dividends or make distributions.

	  	
9.

	
Limitation on amendments to subordinated debt.

	
Financial Covenants:

	
A minimum fixed charge coverage ratio at levels to be agreed.

	
Events of Default:

	
Subject to customary and other thresholds and grace periods to be agreed upon: nonpayment of principal, interest or other amounts; violation of covenants; incorrectness of representations and warranties in any material respect; cross default and cross acceleration; bankruptcy and similar events; material judgments; ERISA events; actual or asserted invalidity of guarantees or security documents in each case representing a material portion of the guarantees or the collateral; and change of control.

	
Assignments and Participations:

	
The lenders will be permitted to assign loans and commitments and make participations under the Facility without the consent of the Borrower.

	
Expenses and Indemnification:

	
The Borrower will indemnify the Agent, the lenders and their respective affiliates, successors and assigns and the officers, directors, employees, agents, advisors, controlling persons and members of each of the foregoing (each, an “Indemnified Person”) and hold them harmless from and against all reasonable documented out-of-pocket costs, expenses (including reasonable fees, disbursements and other charges of one outside counsel (and, if reasonably necessary, of one local counsel in any relevant jurisdiction) and liabilities of such Indemnified Person arising out of or relating to any claim, actions, suits, inquiries, or any litigation or other proceeding (regardless of whether such Indemnified Person is a party thereto and regardless of whether such matter is initiated by the Company or any of its affiliates) that relates to the Facility; provided that no Indemnified Person will be indemnified for any cost, expense or liability (i) to the extent determined in the final, non-appealable judgment of a court of competent jurisdiction to have resulted from its bad faith, gross negligence or willful misconduct (or the bad faith, gross negligence or willful misconduct of its affiliates or controlling persons or their respective directors, officers, employees, partners, advisors agents or other representatives), (ii) arising from a material breach of any obligation of such Indemnified Person, the lenders or the Agent under the definitive loan documentation or (iii) arising from disputes solely among Indemnified Persons and not arising out of any act or omission of the Company or any of its affiliates.  In addition, all reasonable, documented out-of-pocket expenses (including, without limitation, fees, disbursements and other charges of counsel) of the Agent and the lenders with respect to the Facility will in each case be paid by the Borrower.

 

 

 

 

  

Ex. A-7

  

 

 

 

	
Governing Law and Forum:

	
New York; provided, however, that Delaware law shall govern any determination with respect to the accuracy of any Transaction Agreement Representation and with respect to whether, as a result of any inaccuracy thereof, the Company has the right to terminate its obligations (or to decline to consummate the Transactions) under the Transaction Agreement.

	
Counsel to Initial Lender:

	
Akin Gump Strauss Hauer & Feld LLP.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ex. A-8

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