Document:

Exhibit 10.1

 

Execution Version

 

SUPPORT AGREEMENT

 

THIS SUPPORT AGREEMENT, dated as of November 25, 2018 (this “Agreement”), is entered into by and among TransMontaigne Partners L.P. (the “Partnership”), TLP Acquisition Holdings, LLC, a Delaware limited liability company (“TLP Holdings”), and TLP Equity Holdings, LLC, a Delaware limited liability company (“Equity Holdings”).

 

RECITALS

 

WHEREAS, concurrently herewith, TLP Finance Holdings, LLC, a Delaware limited liability company, TLP Holdings, TLP Merger Sub, LLC, a Delaware limited liability company (“Merger Sub”), the Partnership, TransMontaigne GP L.L.C., a Delaware limited liability company (the “Partnership GP”) and Equity Holdings, are entering into an Agreement and Plan of Merger (as it may be amended from time to time, the “Merger Agreement”), pursuant to which (and subject to the terms and conditions set forth therein) Merger Sub will be merged with and into the Partnership, with the Partnership as the sole surviving entity (the “Merger”);

 

WHEREAS, as of the date hereof, each of TLP Holdings and Equity Holdings is the Record Holder and beneficial owner in the aggregate of, and has the right to vote and dispose of, the number of common units representing limited partner interests in the Partnership (“Common Units”) set forth opposite its name on Schedule A hereto (the “Existing Units”);

 

WHEREAS, as a condition and inducement to the Partnership’s and the Partnership GP’s willingness to enter into the Merger Agreement and to proceed with the transactions contemplated thereby, including the Merger, TLP Holdings and Equity Holdings are entering into this Agreement; and

 

WHEREAS, TLP Holdings and Equity Holdings acknowledge that the Partnership and the Partnership GP are entering into the Merger Agreement in reliance on the representations, warranties, covenants and other agreements of TLP Holdings and Equity Holdings set forth in this Agreement and would not enter into the Merger Agreement if each of TLP Holdings and Equity Holdings did not enter into this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, TLP Holdings and Equity Holdings hereby agree as follows:

 

1. Defined Terms. The following capitalized terms, as used in this Agreement, shall have the meanings set forth below. Capitalized terms used but not defined in this Agreement shall have the meanings ascribed to them in the Merger Agreement.

 

“Covered Units” means the Existing Units of which TLP Holdings is the Record Holder or beneficial owner and the Existing Units of which Equity Holdings is the Record Holder or beneficial owner, in each case as of the date hereof, together with any Common Units of which TLP Holdings or Equity Holdings becomes the Record Holder or beneficial owner on or after the date hereof (or any Common Units with respect to which any Person as may later become party

 

 

to this Agreement pursuant to Section 6(a), if applicable, becomes the Record Holder or beneficial owner on or after the date hereof).

 

“Covered Unitholder” means each of TLP Holdings, Equity Holdings, and each such other Person as may later become party to this Agreement as a result of becoming a Record Holder or beneficial owner of Covered Units pursuant to Section 6(a), or otherwise.

 

“Proxy Designee” means a Person designated by the GP Conflicts Committee by written notice to each of the parties hereto, which notice may simultaneously revoke the designation of any other Person as a Proxy Designee.

 

“Record Holder” has the meaning ascribed thereto in the Partnership Agreement.

 

“Transfer” means, directly or indirectly, to sell, transfer, assign, pledge, encumber or similarly dispose of (by merger (including by conversion into securities or other consideration), by tendering into any tender or exchange offer, by testamentary disposition, by operation of law or otherwise), either voluntarily or involuntarily, or to enter into any contract, option or other arrangement or understanding with respect to the voting of or sale, transfer, assignment, pledge, encumbrance or similar disposition of (by merger, by tendering into any tender or exchange offer, by testamentary disposition, by operation of law or otherwise).

 

2. Agreement to Vote Covered Units. Prior to the Termination Date (as defined herein), each Covered Unitholder, severally and not jointly, irrevocably and unconditionally agrees that it shall at any meeting of the limited partners of the Partnership (whether annual or special and whether or not an adjourned or postponed meeting), however called and in connection with the Merger, appear at such meeting or otherwise cause the Covered Units to be counted as present thereat for purpose of establishing a quorum and vote (or consent), or cause to be voted at such meeting (or validly execute and return and cause such consent to be granted with respect to), all Covered Units (in all manners and by each applicable class) in favor of the Merger, the adoption of the Merger Agreement and any other matter necessary or desirable for the consummation of the transactions contemplated by the Merger Agreement, including the Merger. For the avoidance of doubt, no Covered Unitholder (in its capacity as a unitholder) shall be under any obligation whatsoever to require or request that the limited partners of the Partnership vote on, consent to or otherwise approve or reject any matter or issues; notwithstanding the foregoing, if any Covered Unitholder is the beneficial owner, but not the Record Holder, of any Covered Units, such beneficial owner agrees to take all actions necessary to cause the Record Holder and any nominees to vote (or execute a consent with respect to) all of such Covered Units in accordance with this Section 2.

 

3. Grant of Irrevocable Proxy; Appointment of Proxy.

 

(a) FROM AND AFTER THE DATE HEREOF UNTIL THE TERMINATION DATE, EACH COVERED UNITHOLDER HEREBY IRREVOCABLY AND UNCONDITIONALLY GRANTS TO, AND APPOINTS, BARRY WELCH, AND ANY OTHER PROXY DESIGNEE, EACH OF THEM INDIVIDUALLY, SUCH COVERED UNITHOLDER’S, AS APPLICABLE, PROXY AND ATTORNEY-IN-FACT (WITH FULL POWER OF SUBSTITUTION) TO VOTE THE COVERED UNITS SOLELY IN

 

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ACCORDANCE WITH SECTION 2. THIS PROXY IS IRREVOCABLE (UNTIL THE TERMINATION DATE AND EXCEPT AS TO ANY PROXY DESIGNEE WHOSE DESIGNATION AS A PROXY DESIGNEE IS REVOKED BY THE GP CONFLICTS COMMITTEE) AND COUPLED WITH AN INTEREST AND EACH COVERED UNITHOLDER WILL TAKE SUCH FURTHER ACTION OR EXECUTE SUCH OTHER INSTRUMENTS AS MAY BE NECESSARY TO EFFECTUATE THE INTENT OF THIS PROXY AND HEREBY REVOKES ANY OTHER PROXY PREVIOUSLY GRANTED BY SUCH COVERED UNITHOLDER, AS APPLICABLE, WITH RESPECT TO THE COVERED UNITS (AND EACH COVERED UNITHOLDER HEREBY REPRESENTS TO THE PARTNERSHIP THAT ANY SUCH OTHER PROXY IS REVOCABLE).

 

(b) The proxy granted in this Section 3 shall automatically expire upon the termination of this Agreement.

 

4. Termination. This Agreement shall terminate upon the earliest of (a) the Effective Time, (b) the termination of the Merger Agreement in accordance with its terms and (c) the mutual written agreement of the parties hereto to terminate this Agreement (such earliest date being referred to herein as the “Termination Date”); provided that the provisions set forth in Sections 12 to 22 shall survive the termination of this Agreement; 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.  Upon termination of this Agreement, none of the Covered Unitholders shall have any further obligations or liabilities hereunder.

 

5. Representations and Warranties of TLP Holdings and Equity Holdings. Each Covered Unitholder, severally (but not jointly) and making representations only as to itself, hereby represents and warrants to the Partnership as follows:

 

(a) Such party is the Record Holder and beneficial owner of, and has good and valid title to, its respective Covered Units, free and clear of Liens other than as created by this Agreement, the Merger Agreement or arising under generally applicable securities Laws. Such party has voting power, power of disposition, and power to agree to all of the matters set forth in this Agreement, in each case with respect to all of such Covered Units. As of the date hereof, other than the Existing Units, such party is not the Record Holder and does not own beneficially any (i) units or voting securities of the Partnership, (ii) securities of the Partnership convertible into or exchangeable for units or voting securities of the Partnership or (iii) options or other rights to acquire from the Partnership any units, voting securities or securities convertible into or exchangeable for units or voting securities of the Partnership. The Covered Units are not subject to any voting trust agreement or other contract to which such party is a party restricting or otherwise relating to the voting or Transfer of the Covered Units. Such party has not appointed or granted any proxy or power of attorney that is still in effect with respect to any Covered Units, except as contemplated by this Agreement.

 

(b) Such party is duly organized, validly existing and in good standing under the Laws of Delaware and has all requisite power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution, delivery and performance of this Agreement by such party, the performance by such party of its obligations hereunder and the

 

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consummation by such party of the transactions contemplated hereby have been duly and validly authorized by such party and no other actions or proceedings on the part of such party are necessary to authorize the execution and delivery by such party of this Agreement, the performance by such party of its obligations hereunder or the consummation by such party of the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by such party and, assuming due authorization, execution and delivery by the Partnership, constitutes a legal, valid and binding obligation of such party, enforceable against such party in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar Laws affecting creditors’ rights generally and by general principles of equity (regardless of whether considered in a proceeding in equity or at law).

 

(c) Except for the applicable requirements of the Exchange Act, (i) no filing with, and no permit, authorization, consent or approval of, any Governmental Authority is necessary on the part of such party for the execution, delivery and performance of this Agreement by such party or the consummation by such party of the transactions contemplated hereby and (ii) neither the execution, delivery or performance of this Agreement by such party nor the consummation by such party of the transactions contemplated hereby nor compliance by such party with any of the provisions hereof shall (A) conflict with or violate, any provision of the organizational documents of such party, (B) result in any breach or violation of, or constitute a default (or an event which, with notice or lapse of time or both, would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of a Lien on such property or asset of such party pursuant to, any contract to which such party is a party or by which such party or any property or asset of such party is bound or affected or (C) violate any order, writ, injunction, decree, statute, rule or regulation applicable to such party or any of such party’s properties or assets except, in the case of clause (B) or (C), for breaches, violations or defaults that would not, individually or in the aggregate, materially impair the ability of such party to perform its obligations hereunder.

 

(d) As of the date of this Agreement, there is no action, suit, investigation, complaint or other proceeding pending against such party or, to the actual knowledge of such party, any other Person or, to the actual knowledge of such party, threatened against such party or any other Person that restricts or prohibits (or, if successful, would restrict or prohibit) the Partnership of their rights under this Agreement or the performance by any party of its obligations under this Agreement.

 

(e) Such party understands and acknowledges that the Partnership is entering into the Merger Agreement in reliance upon such party’s execution and delivery of this Agreement and the representations and warranties of such party contained herein.

 

6. Certain Covenants of TLP Holdings and Equity Holdings. Each Covered Unitholder, severally (but not jointly) hereby covenants and agrees, in each case, only on its own behalf as follows, in each case except as otherwise approved in writing by GP Conflicts Committee:

 

(a) Prior to the Termination Date, and except as contemplated hereby, such party shall not (i) Transfer, or enter into any contract, option, agreement or other arrangement or understanding with respect to the Transfer of any of the Covered Units or beneficial ownership

 

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or voting power thereof or therein (including by operation of law), (ii) grant any proxies or powers of attorney, deposit any Covered Units into a voting trust or enter into a voting agreement with respect to any Covered Units or (iii) knowingly take any action that would make any representation or warranty of such party contained herein untrue or incorrect or have the effect of preventing or disabling such party from performing its obligations under this Agreement. Notwithstanding anything to the contrary in this Agreement, such party may Transfer any or all of the Covered Units, in accordance with applicable Law, to each other or any Affiliate of TLP Holdings or Equity Holdings; provided that prior to and as a condition to the effectiveness of such Transfer, each Person to whom any of such Covered Units or any interest in any of such Covered Units is or may be Transferred shall have executed and delivered to the Partnership a counterpart of this Agreement pursuant to which such Person shall be bound by all of the terms and provisions of this Agreement as if such Person were a party with the obligations of a Covered Unitholder. Any Transfer in violation of this provision shall be void.

 

(b) Prior to the Termination Date, in the event that such party becomes the Record Holder or acquires beneficial ownership of, or the power to vote or direct the voting of, any additional Common Units or other voting interests with respect to the Partnership, such Covered Unitholder, will promptly notify the Partnership of such Common Units or voting interests, such Common Units or voting interests shall, without further action of the parties, be deemed Covered Units and subject to the provisions of this Agreement, and the number of Common Units held by such party set forth on Schedule A hereto will be deemed amended accordingly and such Common Units or voting interests shall automatically become subject to the terms of this Agreement.

 

7. Transfer Agent. Each Covered Unitholder hereby authorizes the Partnership or its counsel to notify the Partnership’s transfer agent that there is a stop transfer order with respect to all Covered Units (and that this Agreement places limits on the voting and Transfer of such Covered Units); provided, however, the Partnership or its counsel will further notify the Partnership’s transfer agent to lift and vacate the stop transfer order with respect to the Covered Units on the Termination Date.

 

8. Unitholder Capacity. This Agreement is being entered into by each Covered Unitholder solely in its capacity as a Holder of Common Units, and nothing in this Agreement shall restrict or limit the ability of such Covered Unitholder, or any of its respective Affiliates or any employee thereof who is a director or officer of the Partnership to take any action in his or her capacity as a director or officer of the Partnership to the extent specifically permitted by the Merger Agreement.

 

9. Disclosure. Each Covered Unitholder hereby authorizes the Partnership to publish and disclose in any announcement or disclosure required by the SEC and in the Partnership Proxy Statement such party’s identity and ownership of the Covered Units and the nature of such party’s obligations under this Agreement.

 

10. Non-Survival of Representations and Warranties. The representations and warranties of each Covered Unitholder contained herein shall not survive the Termination Date or the closing of the transactions contemplated hereby and by the Merger Agreement.

 

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11. Amendment and Modification. This Agreement may not be amended, modified or supplemented in any manner, whether by course of conduct or otherwise, except by an instrument in writing specifically designated as an amendment hereto, signed on behalf of each party hereto and otherwise as expressly set forth herein.

 

12. Waiver. No failure or delay of any party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such right or power, or any course of conduct, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the parties hereunder are cumulative and are not exclusive of any rights or remedies which they would otherwise have hereunder. Any agreement on the part of a party to any such waiver shall be valid only if set forth in a written instrument executed and delivered by such party.

 

13. Notices. All notices and other communications hereunder shall be in writing and shall be deemed duly given (a) on the date of delivery if delivered personally, or if by facsimile or e-mail, upon written confirmation of receipt by facsimile, e-mail or otherwise, (b) on the first Business Day following the date of dispatch if delivered utilizing a next-day service by a recognized next-day courier or (c) on the earlier of confirmed receipt or the fifth Business Day following the date of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid. All notices hereunder shall be delivered to the addresses set forth below, or pursuant to such other instructions as may be designated in writing by the party to receive such notice:

 

(i)                                   If to TLP Holdings or Equity Holdings (or any other Covered Unitholder):

 

c/o ArcLight Capital Partners, LLC
 200 Clarendon Street, 55th Floor 
 Boston, MA 02116
 Attention: Ted Burke
 Fax: (617) 867-4698
 Email:  tburke@arclightcapital.com

 

with copies (which shall not constitute notice) to:

 

Kirkland & Ellis LLP
 609 Main Street, 47th Floor
 Houston, Texas 77002

 

Attention: Douglas Bacon
 E-mail: douglas.bacon@kirkland.com
 Attention: Kim Hicks
 E-mail: kim.hicks@kirkland.com

 

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(ii)                                If to the Partnership:

 

TransMontaigne Partners L.P.

1670 Broadway

Suite 3100

Denver, Colorado 80202

Attn: Mark Huff, President

Attn: Michael A. Hammell, Executive Vice President, General Counsel and Secretary

Facsimile No.: (303) 626-8238

 

with copies (which shall not constitute notice) to:

 

Latham & Watkins LLP
 811 Main Street, Suite 3700
 Houston, Texas 77002
 Attn: Ryan J. Maierson
 E-mail: ryan.maierson@lw.com

 

14. Entire Agreement. This Agreement and the Merger Agreement (including the Exhibits and Schedules thereto) constitute the entire agreement, and supersede all prior written agreements, arrangements, communications and understandings and all prior and contemporaneous oral agreements, arrangements, communications and understandings between the parties with respect to the subject matter hereof and thereof.

 

15. No Third-Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to or shall confer upon any Person other than the parties 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, with the exception of those rights conferred to the GP Conflicts Committee in this Agreement.

 

16. Governing Law; Submission to Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the Laws of the State of Delaware applicable to contracts executed in and to be performed entirely within that State, regardless of the Law that might otherwise govern under applicable principles of conflicts of Law thereof. Each of the parties hereto irrevocably agrees that any legal action or Proceeding with respect to this Agreement and the rights and obligations arising hereunder, shall be brought and determined exclusively in the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of Chancery declines to accept jurisdiction over a particular matter, any state or federal court within the State of Delaware) (the “Delaware Courts”). Each of the parties hereto consents to service of process being made upon it through the notice procedures set forth in Section 13, irrevocably submits with regard to any such action or Proceeding for itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated hereby in any court other than the aforesaid courts. Each of the parties hereto irrevocably waives, and agrees not to assert as a defense, counterclaim or otherwise, in any action or Proceeding with respect to this Agreement, (i) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason

 

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other than the failure to serve in accordance with this Section 16, (ii) any claim that it or its property is exempt or immune from the jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and (iii) to the fullest extent permitted by the applicable Law, any claim that (A) the suit, action or Proceeding in such court is brought in an inconvenient forum, (B) the venue of such suit, action or Proceeding is improper or (C) this Agreement, or the subject matter hereof, may not be enforced in or by such courts. Each party hereto expressly acknowledges that the foregoing waiver is intended to be irrevocable under the Law of the State of Delaware and of the United States of America; provided, however, that each such party’s consent to jurisdiction and service contained in this Section 16 is solely for the purposes referred to in this Section 16 and shall not be deemed to be a general submission to such courts or in the State of Delaware other than for such purpose.

 

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

 

18. Assignment; Successors. Neither this Agreement nor any of the rights, interests or obligations under this Agreement may be assigned or delegated, in whole or in part, by operation of law or otherwise, by any party without the prior written consent of all other parties, and any such assignment without such prior written consent shall be null and void; provided, however, the Partnership may assign all or any of its rights and obligations hereunder to any direct or indirect wholly owned Subsidiary of the Partnership, and each of TLP Holdings and Equity Holdings may Transfer any or all of the Covered Units in accordance with Section 6(a); provided further that no assignment shall limit the assignor’s obligations hereunder. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective successors and assigns.

 

19. Enforcement. The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, each of the parties hereto shall be entitled to specific performance of the terms hereof, including an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in the Delaware Courts, this being in addition to any other remedy to which such party is entitled at law or in equity. To the fullest extent permitted by Law, each of the parties hereto hereby further waives (a) any defense in any action for specific performance that a remedy at law would be adequate and (b) any requirement under any Law to post security as a prerequisite to obtaining equitable relief.

 

20. Severability. If any term or other provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other terms, provisions and conditions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the

 

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transactions contemplated hereby is not affected in any manner adverse to any party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the fullest extent permitted by applicable Law in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.

 

21. Counterparts. This Agreement may be executed in counterparts (each of which shall be deemed to be an original but all of which taken together shall constitute 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 parties. Signatures to this Agreement transmitted by facsimile transmission, by electronic mail in “portable document format” (“.pdf”) form, or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, will have the same effect as physical delivery of the paper document bearing the original signature.

 

22. Conflicts Committee. In addition to any other approvals required by the parties under this Agreement, any waiver, amendment, termination or assignment of rights permitted by this Agreement must be approved, in the case of the Partnership, by the GP Conflicts Committee.

 

[The remainder of this page is intentionally left blank.]

 

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IN WITNESS WHEREOF, the Partnership, TLP Holdings and Equity Holdings have caused to be executed or executed this Agreement as of the date first written above.

 

 

	
 
    	
TLP   HOLDINGS
    
	
 
    	
 
    
	
 
    	
TLP   ACQUISITION HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Daniel R. Revers 
    
	
 
    	
Name:
    	
Daniel R. Revers 
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EQUITY   HOLDINGS
    
	
 
    	
 
    
	
 
    	
TLP   EQUITY HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Daniel R. Revers 
    
	
 
    	
Name:
    	
Daniel R. Revers 
    
	
 
    	
Title:
    	
President
    

 

SIGNATURE PAGE TO SUPPORT AGREEMENT

 

 

	
 
    	
PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
TRANSMONTAIGNE PARTNERS L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
TransMontaigne   GP L.L.C., its general partner
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Frederick W. Boutin
    
	
 
    	
Name:
    	
Frederick W. Boutin 
    
	
 
    	
Title:
    	
Chief Executive Officer
    

 

SIGNATURE PAGE TO SUPPORT AGREEMENT

 

 

SCHEDULE A

 

	
Unitholder
    	
 
    	
Existing Units
    
	
 
    	
 
    	
 
    
	
TLP Holdings
    	
 
    	
800,000
    
	
 
    	
 
    	
 
    
	
Equity Holdings
    	
 
    	
2,366,704
    

 

1Exhibit 10.1

 

THE SECURITIES REPRESENTED HEREBY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS
THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144
UNDER THE ACT, OR THE BORROWER RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES REASONABLY SATISFACTORY TO THE
BORROWER STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF SUCH ACT.

 

AMENDED
AND RESTATED

CONVERTIBLE
PROMISSORY NOTE

 

	$2,303,313.00	Date: November 20, 2018

Atlanta, Georgia

 

THIS AMENDED AND RESTATED
CONVERTIBLE PROMISSORY NOTE (this “Note”) is made as of November 20, 2018, by and between Allure Global Solutions,
Inc., a Georgia corporation (the “Borrower”), having its principal place of business at c/o Creative Realities,
Inc., 13100 Magisterial Drive, Suite 100, Louisville, KY 40223, and Christie Digital Systems, Inc. (the “Lender”).

 

WHEREAS, the Borrower
and Lender (as successor to Christie Digital Systems USA, Inc.) previously entered into that Demand Promissory Note dated as of
September 27, 2016 (the “Original Note”), pursuant to the terms of the Loan Agreement (as such term is defined
in the Purchase Agreement).

 

WHEREAS, on September
20, 2018, the Borrower, the Lender and Creative Realities, Inc. (“Buyer”) entered into that certain Stock Purchase
Agreement (the “Purchase Agreement”), pursuant to which Buyer acquired all of the outstanding common stock of
the Borrower from the Lender, and which contemplated the amendment and restatement of the Original Note and the termination of
the Loan Agreement and the Original Note at the Effective Time (as defined in the Purchase Agreement). Unless otherwise separately
defined herein, all capitalized terms used in this Note shall have the same meaning as is set forth in the Purchase Agreement.

 

WHEREAS, the Borrower
and Lender desire to amend and restate the Original Note in its entirety.

 

WHEREAS, the Borrower,
Lender and Buyer are entering into that certain letter agreement dated the date hereof (the “Letter Agreement”),
pursuant to which, among other things, (i) the principal amount of this Note has been determined based upon an estimate of the
“Estimated Intercompany Payables,” which amount is subject to verification pursuant to the terms of the Letter Agreement,
and (ii) the Borrower is promising to pay to Lender up to $666,139 upon receipt by the Company of such amount from Jacobs Zate
(the “Jacobs Zate Receivable”).

 

     

    

    

 

WHEREAS, concurrently
with the execution of this Note, the Borrower, Buyer and Lender will enter into a Registration Rights Agreement (the “Registration
Rights Agreement”) in connection with the amendment and restatement of the Original Note.

 

NOW THEREFORE, in consideration
of the premises and the covenants and agreements hereinafter set forth, and for other good and valuable consideration, the parties
hereto, intending to be legally bound, hereby covenant and agree that all of the terms, provisions, and obligations contained in
the Original Note are hereby amended, restated, and superseded as set forth below.

 

FOR VALUE RECEIVED,
Borrower promises to pay to Lender or its permitted assigns, at 10550 Camden Drive, Cypress, CA 90630, or such other place as the
holder of this Note may designate from time to time, the principal sum of Two Million Three Hundred Three Thousand Three Hundred
Thirteen Dollars ($2,303,313), together with interest from the date of this Note on the unpaid
principal balance (as set forth in Section 1.2 below), upon the terms and conditions specified below.

 

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Payment.

 

1.1 
Maturity. Subject to the provisions of Section 1.3 and Section 2 hereof relating to the conversion of this Note,
the outstanding principal balance of this Note, together with interest accrued and unpaid to date (pursuant to Section 1.2 hereof),
shall be immediately due and payable without further action on the part of the Lender on the earliest of (a) the Maturity Date,
(b) that time immediately prior the occurrence of an Acquisition Event and (c) that date upon which the repayment of this Note
is accelerated upon an Event of Default pursuant to Section 4 hereof.

 

1.2 
Interest. This Note shall accrue simple interest, from the date hereof until such principal is paid or converted
as provided in Section 2 on any unpaid principal balance at the rate of three and one-half percent (3.5%) per annum. Such interest
shall be payable quarterly in arrears (each a “Quarterly Interest Payment”) with the first payment due on December
31, 2018, which shall be comprised of all accrued but unpaid interest to, but excluding, such date, with payments of accrued interest
continuing quarterly thereafter (i.e., March 31, June 30 and December 31). Interest shall be calculated on the basis of actual
number of days elapsed. Notwithstanding any provision in this Note, it is the parties’ intent not to contract for, charge
or receive interest at a rate that is greater than the maximum rate permissible by law that a court of competent jurisdiction shall
deem applicable hereto (which under applicable law shall be deemed to be the laws relating to permissible rates of interest on
commercial loans). If any interest payment due hereunder is determined to be in excess of the legal maximum rate, then that portion
of each interest payment representing an amount in excess of the then legal maximum rate shall instead be deemed a payment of principal
and shall be applied against principal. Upon the conversion of this Note pursuant to the provisions of Section 2 below, all accrued
but unpaid interest shall be converted into shares of Conversion Stock.

 

1.3 
Jacobs Zate Receivable. Borrower promises to pay to Lender any and all payments of the Jacobs Zate Receivable within
three (3) business days of receipt of such payments by Borrower, and such payments shall be credited against the outstanding principal
amount of the Note.

 

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1.4 
Allocation of Payments. All payments shall be credited first to interest, fees, costs and expenses then due and the
remainder to the principal amount of the Obligations.

 

1.5 
Prepayment of the Note. The Borrower may at any time and from time to time prepay all or any portion of the principal
amount of this Note upon ten (10) days prior written notice to the Lender.

 

1.6 
Acquisition Event. The Borrower shall provide the Lender with at least fifteen (15) days prior written notice of
an Acquisition Event.

 

1.7 
Method of Payment or Repayment. All payments hereunder shall be paid by Borrower to Lender at Lender’s address
as set forth above or to an account designated by Lender. All payments shall be made in a form of payment reasonably acceptable
to Lender, and in such money of the United States as shall be at such time legal tender for the payment of public and private debts.
If the payments to be made hereunder fall due on a day which is a Saturday, Sunday, or legal holiday under the laws of the State
of California, any such payment shall be made on the next succeeding day which is not a Saturday, Sunday, or legal holiday under
the laws of the State of California.

 

2 
Conversion.

 

2.1 
Optional Conversion at Any Time. At any time on or after the one hundred and eightieth (180th) day after the date
hereof while this Note is outstanding, at the option of the Lender in its sole discretion, the entire outstanding principal balance
of this Note, together with all accrued but unpaid interest thereunder, shall be converted, in whole and not in part, into shares
of Conversion Stock (with the number of shares of Conversion Stock issuable upon such conversion of this Note determined in accordance
with Section 2.3 below and to be subject to the terms of the Registration Rights Agreement).

 

2.2 
Intentionally Omitted.

 

2.3 
Number of Shares. The number of shares of Conversion Stock to be issued to Lender upon conversion under this Section
2 shall equal the quotient (rounded down to the nearest whole share) of: (x) the Conversion Amount, divided by (y) the Conversion
Price. In lieu of any fractional shares to which the holder of the Note would otherwise be entitled, the Borrower shall pay the
Lender cash equal to such fraction multiplied by the Conversion Price.

 

2.4 
Delivery of Note and Share Certificates. Upon conversion under this Section 2, this Note will, for all purposes,
be deemed to be converted into shares of Conversion Stock, at which time this Note shall for all purposes be deemed cancelled and
all Obligations shall be deemed paid in full. Upon conversion of this Note and delivery and surrender of this Note to the Borrower
duly endorsed and marked cancelled and paid, the Borrower shall issue and deliver to the Lender a certificate or certificates for
the number of full shares of Conversion Stock to which Lender is entitled, containing such legends regarding restrictions on transfer
and otherwise as Buyer deems necessary under Requirements of Laws or as is required under the Registration Rights Agreement or
hereunder to enforce the provisions of this Note (including a legend stating that the Conversion Shares are subject to offset in
accordance with Section 13 of this Note), and a check or cash with respect to any fractional interest in a share of Conversion
Stock. The Borrower covenants that all shares of Conversion Stock issued upon conversion will, upon issuance, be fully paid and
non-assessable and free from all liens and adverse claims caused or created by the Borrower with respect to the issue thereof.

 

    	 	3	 

    

    

 

2.5 
Conversion and Escrowed Funds. The Lender and the Buyer have agreed to treat the amounts owing under this Note as
a potential source of recovery by Buyer or Buyer Group Members for Lender’s indemnity obligations under and pursuant to the
Purchase Agreement. Accordingly, and notwithstanding anything else to the contrary in this Section 2 or otherwise in this Note,
if any amounts owing under this Note are converted under Section 2.1, Lender may not sell the Conversion Stock it receives upon
such conversion until the date that is eighteen (18) months following the Closing Date unless the first Nine Hundred Thousand Dollars
($900,000) of any proceeds of any such sale or sales (the “Escrowed Funds”) shall be deposited in an escrow
account with SunTrust Bank, a national banking association organized under the law of the United States of America, or such other
agent agreed to by Buyer and Lender, to be held in escrow pursuant to the terms of the escrow agreement substantially in the form
attached hereto as Exhibit A (the “Escrow Agreement”). The Escrowed Funds will be held in escrow pursuant to
the Escrow Agreement until the date that is eighteen (18) months following the Closing Date; provided, however, that
if there remain outstanding any indemnity claims of Buyer under the Purchase Agreement as of such 18-month anniversary date, the
amount of Escrowed Funds equal to the amount(s) in controversy with respect to such indemnity claims shall continue thereafter
to be held pursuant to the Escrow Agreement until the final resolution of such claims shall have been obtained in accordance with
the provisions of the Purchase Agreement, and any amounts determined upon the resolution of any indemnity claims shall be released
from the Escrowed Funds pursuant to the terms of the Escrow Agreement.

 

2.6 
Securities Law Matters. The conversion of amounts under this Note shall at all times be subject to the obligation
of the Buyer to comply with applicable securities laws. Accordingly, and to facilitate and document such compliance, the Lender
agrees to complete, execute and return to the Buyer a standard representation letter and other documentation that the Buyer may
reasonably request in connection with the issuance of Conversion Stock hereunder in a manner exempt from the registration requirements
of the Securities Act of 1933 and applicable state securities laws.

 

3 
Demand; Protest. Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment
and nonpayment, notice of any default, diligence in collection and notices of intention to accelerate maturity, nonpayment at maturity,
release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees at any
time held by Lender on which Borrower may in any way be liable.

 

4 
Event of Default. The Borrower shall provide written notice to the Lender of the occurrence of an Event of Default
pursuant to Section 4.2, 4.3 or 4.4 within one (1) day of such occurrence, specifying the nature and period of existence of such
Event of Default and, if applicable, the action that the Borrower has taken or proposes to take in response thereto (if any). If
there shall be any Event of Default hereunder, at the option and upon the declaration of the Lender and upon written notice to
the Borrower (which election and notice shall not be required in the case of an Event of Default under Section 4.2, 4.3 or 4.4),
this Note shall accelerate and all principal and unpaid accrued interest shall become due and payable. The occurrence of any one
or more of the following shall constitute an Event of Default:

 

4.1 
The Borrower fails to pay any Quarterly Interest Payment or any payment of the Jacobs Zate Receivable under Section 1.3
within ten (10) days of the applicable payment date;

 

    	 	4	 

    

    

 

4.2 
An Acquisition Event occurs for which the Lender was not provided proper notice pursuant to Section 1.6;

 

4.3 
The Borrower or Buyer or any of their respective subsidiaries files any petition or action for relief under any bankruptcy,
reorganization, insolvency or moratorium law or any other law for the relief of, or relating to, debtors, now or hereafter in effect,
or makes any assignment for the benefit of creditors or takes any corporate action in furtherance of any of the foregoing;

 

4.4 
The Buyer, either voluntarily or involuntarily, undergoes (a) delisting of its securities from a national securities exchange
such that its common stock is no longer publicly traded, or (b) deregistration of its securities from the reporting requirements
of the U.S. Securities and Exchange Commission; or

 

4.5 
An involuntary petition is filed against the Borrower or Buyer or any of their respective subsidiaries (unless such petition
is dismissed or discharged within ninety (90) days under any bankruptcy statute now or hereafter in effect), or a custodian, receiver,
trustee, assignee for the benefit of creditors (or other similar official) is appointed to take possession, custody or control
of any property of Borrower or any of its subsidiaries.

 

5 
Definitions. As used herein, the following terms shall have the following meanings:

 

5.1 
“Acquisition Event” means: (a) the closing of a merger of the Borrower or any of its subsidiaries with
or into another entity, or any other acquisition of stock of the Borrower, in respect of which Buyer owns (including indirectly,
in the case of a merger of a subsidiary of the Borrower) less than fifty percent (50%) of the voting power of the successor entity
(or, in the case of an acquisition of stock of the Borrower, the Buyer owns less than 50% of the voting power of the Borrower immediately
after such transaction), (b) the closing of a merger of Buyer or any of its subsidiaries with or into another entity, or other
acquisition of stock of the Buyer, in respect of which the stockholders of Buyer immediately prior to such merger own (including
indirectly, in the case of a merger of a subsidiary of the Buyer) less than fifty percent (50%) of the voting power of the successor
entity (or, in the case of an acquisition of stock of the Buyer, the stockholders of Buyer immediately to such acquisition own
less than 50% of the voting power of Buyer immediately after such transaction); or (c) a sale, lease or other exclusive disposition
or exclusive transfer by the Borrower or Buyer of all or substantially all of their respective assets. Notwithstanding the foregoing,
no merger of a subsidiary of Buyer or Borrower effected solely by Buyer or Borrower as part of a corporate reorganization shall
be considered an “Acquisition Event” hereunder.

 

    	 	5	 

    

    

 

5.2 
“Conversion Amount” means, as of any date of determination, the sum of (a) all principal under this Note
then outstanding plus (b) all accrued but unpaid interest under this Note as of such date.

 

5.3 
“Conversion Price” means $8.40 (as equitably adjusted for any stock dividends, combinations, splits,
recapitalizations and the like affecting the Conversion Stock after the date hereof).

 

5.4 
“Conversion Stock” means Buyer’s common stock, $0.01 par value per share, or any security issued
in exchange therefore or consideration thereof as part of any acquisition, recapitalization or reorganization.

 

5.5 
“Indemnity Amount” means the original principal amount of this Note ($900,000) in the aggregate.

 

5.6 
“Maturity Date” shall mean February [20], 2020

 

5.7 
“Obligations” means all principal, interest, expenses and other amounts owed to the Lender by the Borrower
pursuant to this Note, whether absolute or contingent, due or to become due, now existing or hereafter arising.

 

6 
Amendment Provisions. This Note and the provisions, rights and obligations hereof, may be amended, waived or modified
only upon the written consent of the Borrower and the Lender.

 

7 
Transfer. This Note may not be transferred by Borrower or Lender.

 

8 
Severability. If any provision of this Note is determined to be invalid, illegal or unenforceable, in whole or in
part, the validity, legality and enforceability of any of the remaining provisions or portions of this Note shall not in any way
be affected or impaired thereby and this Note shall nevertheless be binding between the Borrower and Lender.

 

9 
Binding Effect. This Note shall be binding upon, and shall inure to the benefit of, the Borrower and Lender and their
respective successors and assigns.

 

10 
Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon
personal delivery to the party to be notified, (b) when sent by electronic mail or confirmed facsimile if sent during normal
business hours of the recipient, if not, then on the next business day, (c) five (5) days after having been sent by registered
or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the
Borrower at the address as set forth above and to Lender at the address set forth on the signature page hereof or at such other
address or electronic mail address as the Borrower or Lender may designate by ten (10) days advance written notice to the other
party hereto.

 

    	 	6	 

    

    

 

11 
No Rights as Stockholder. This Note, as such, shall not entitle Lender to any rights as a stockholder of the Buyer
(unless and until converted into Conversion Stock pursuant Section 2).

 

12 
Headings and Governing Law. The descriptive headings in this Note are inserted for convenience only and do not constitute
a part of this Note. The validity, meaning and effect of this Note shall be determined in accordance with the laws of the State
of New York, without regard to principles of conflicts of law. Section 11.8 of the Purchase Agreement shall apply mutatis mutandis
with respect to this Agreement.

 

13. Offset.
Amounts owing under this Note, up to the Indemnity Amount, together with unsold Conversion Stock (having a value up to the Indemnity
Amount) shall be subject to offset by the Buyer and Buyer Group Members in satisfaction of indemnity claims of the Buyer or Buyer
Group Members arising under the Purchase Agreement; provided, however, if and to the extent there is a conversion
pursuant to which there are Escrowed Funds pursuant to Section 2.5, the foregoing right of offset will be reduced by the amount
of any such Escrowed Funds. In the event that a dispute arises between the Buyer (or Buyer Group Members) and the Lender regarding
any indemnity claim made by the Buyer (or Buyer Group Members), such dispute shall be resolved in the manner provided in the Purchase
Agreement prior to effecting any offset of amounts owing under this Note.

 

14. Equitable
Relief. In light of the intents and purposes of this Note, the fact that the obligations under this Note may serve as a source
of recovery for matters that are indemnified under the Purchase Agreement, and the fact that it would be difficult to ascertain
the measure of damages for any breach of those provisions of this Note designed to facilitate such recovery, the Lender agrees
that Borrower and Buyer shall be entitled to equitable relief, specifically including preliminary or temporary injunctions and
specific performance, to enforce the provisions of Section 2.5 and Section 13, without the need to prove irreparable harm and,
to the extent permitted by applicable law, without the need to post bond for security.

 

15. Amendment
to Note. The Borrower and Lender shall amend the terms of this Note as required by the terms of the Letter Agreement.

 

*****

 

    	 	7	 

    

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amended and Restated Convertible Promissory Note to be duly executed and delivered as of the
date first above written.

 

THE BORROWER:

 

ALLURE
GLOBAL SOLUTIONS, INC.

 

	By:	/s/ Will Logan	 
	Name:	Will Logan	 
	Title: 	Chief Financial Officer	 

 

Address:      c/o Creative Realities, Inc.

13100 Magisterial Drive, Suite 100

Louisville, KY 40223

 

ACKNOWLEDGED BY LENDER:

 

CHRISTIE DIGITAL
SYSTEMS, INC.

 

	By:	/s John M. Kline	 
	Name:	John M. Kline 	 
	Title: 	Vice President 	 

 

Address:       10550
Camden Drive

Cypress, CA 90630

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