Document:

Exhibit
10.2

    

    INDEBTEDNESS CONVERSION
AGREEMENT

     

    This Indebtedness Conversion Agreement
(this “Agreement”) is entered into and dated as of
August 27, 2010 by and
between Intellect Goal
Investments Limited
(“Intellect
Goal”) and New Oriental Energy & Chemical
Corp., a Delaware corporation, with headquarters located at Xicheng Industrial
Zone of Luoshan, Xinyang Henan Province, The People’s Republic of China (the “Company”), with reference to the
following:

     

    WHEREAS, Intellect Goal is a former
shareholder of the Company;

     

    WHEREAS, from time to time until October
2008, Intellect Goal paid certain expenses on behalf of the Company (the
“Advances”);

     

    WHEREAS, the aggregate value of such
Advances is $739,899 and has been recorded by the Company as
a related party loan under “Current Liabilities Due to related
parties” on the
Company’s balance sheet;

     

    WHEREAS, the Advances are unsecured,
interest free, and do not
have fixed repayment terms; and

     

    WHEREAS, in lieu of cash payment of the
Advances by the Company to Intellect Goal, the Company desires to issue to
Intellect Goal and Intellect Goal desires to accept 739,899 shares of common stock of the
Company, par value $0.001
(the “Converted
Shares”) for the Advances,
on the terms and conditions set forth in this Agreement;

     

    NOW, THEREFORE, for and in consideration
of the mutual covenants and agreements hereinafter set forth and the mutual
benefits to the parties to
be derived here from, and intending to be legally bound, it is hereby agreed as
follows:

     

    1.           Purchase.  Subject to the terms and
conditions set forth in this Agreement, the Company hereby agrees to issue and
deliver to Intellect Goal at the Closing (as defined in Paragraph 4 below), and
Intellect Goal hereby agrees to purchase and accept from the Company the
Converted Shares.

     

    2.           Consideration.  In full consideration for
the Converted Shares, at Closing, Intellect Goal shall cancel in full the
Advances.

     

    3.           Representations
And Warranties.  The parties represent and
warrant to the other as set forth below.  All such representations and
warranties shall survive the Closing.

     

    A.           Representations
and Warranties of the Company.  The Company represents and
warrants to Intellect Goal
and indemnifies Intellect Goal as follows:

     

    (i)        
   Organization.  The Company is a
corporation duly organized and validly existing in good standing under the laws
of the State of Delaware, and has the requisite corporate power and
authorization to own its
properties and to carry on its business as now being
conducted.

     

    (ii)           Authorization;
Enforcement; Validity.  The Company has the
requisite corporate power and authority to enter into and perform its
obligations under this Agreement and to issue the Converted Shares in
accordance with the terms hereof.  This Agreement has been duly
executed and delivered by the Company, and constitutes the legal, valid and
binding obligation of the Company, enforceable against the Company in
accordance with its terms, except as such
enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws
relating to, or affecting generally, the enforcement of applicable creditors’ rights and
remedies.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    (iii)    
      Issuance of
Securities.  The
Converted Shares are duly authorized and, upon issuance in accordance with the
terms hereof, shall be validly issued and free from all taxes, liens and charges
and shall be fully paid and nonassessable with the holders being
entitled to all rights accorded to a holder of common stock of the Company. The
issuance by the Company of the Converted Shares is exempt from registration
under the 1933 Act.

     

    (iv)          Disclosures.  No representation or
warranty by the Company
contained in this Agreement or any exhibits referenced herein and no document or
certificate furnished or to be furnished to Intellect Goal in connection
herewith, or with the transactions contemplated hereby, contain, or on the
Closing Date will contain, an untrue statement of
a material fact, or omit, or on the Closing Date will omit, to state a material
fact necessary to make the statements of fact contained herein or therein not
misleading.

     

    (vii)         The execution and delivery of this
Agreement by the Company
does not, and the performance of this Agreement by the Company will not require
any consent, approval, authorization or other action by, or filing with or
notification to, any governmental body or any other person.

     

    B.           Representations, Warranties
and Indemnification of Intellect Goal.  Intellect Goal represents
and warrants to the Company and indemnifies the Company as
follows:

     

    (i)         
   Intellect Goal
is duly organized and validly existing and in good standing under the laws of
the jurisdiction of its
formation.

     

    (ii)       
    Intellect
Goal has all necessary power and authority to enter into and perform this
Agreement.

     

    (iii)           Intellect Goal will acquire the
Converted Shares for its own account for investment and not with a view toward
any resale or distribution
thereof.

     

    (iv)           Intellect Goal understands and agrees
that the Converted Shares have not been registered under the Securities Act of
1933, as amended, or under any applicable state securities laws and may not be
offered, sold, transferred, assigned, or hypothecated unless there is an
effective registration statement under such Act or laws covering such units or
the undersigned receives an opinion of counsel, satisfactory to the Company that
such offer, sale, transfer, assignment, or hypothecation is exempt from the registration under
applicable state law.

     

    (v)           In entering into this Agreement and the
transactions contemplated herein, Intellect Goal is relying on their own due
diligence investigation and assessment of the Company and not upon any
statements, comments,
representations, or remarks made by the Company.  Intellect Goal
acknowledges that the Company has made no statement, comment, representation, or
remark concerning the Company or its business or the advisability of an
investment in the Company.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (vi)          This Agreement constitutes a valid and
binding obligation of Intellect Goal in accordance with the terms hereof, and
the same will not violate any provisions of its organizational
documents.

     

    (vii)         The execution of this Agreement and the
consummation of the
transactions contemplated hereby will not result in the breach of any term or
provision of, or constitute a default under, any contract, agreement,
instrument, understanding, judgment or decree to which Intellect Goal is a party
or by which it is bound.

     

    (viii)        No representation or warranty by
Intellect Goal contained in this Agreement or any exhibits referenced herein and
no document or certificate furnished or to be furnished to the Company in
connection herewith, or with the transactions contemplated hereby, contain, or on the
Closing Date will contain, an untrue statement of a material fact, or omit, or
on the Closing Date will omit, to state a material fact necessary to make the
statements of fact contained herein or therein not misleading.

     

    (ix)           The execution and delivery of this
Agreement by Intellect Goal does not, and the performance of this Agreement by
Intellect Goal will not require any consent, approval, authorization or other
action by, or filing with or notification to, any governmental body or any other
person.

     

    4.           Closing.

     

    A.        
   Closing.  The Closing shall take
place on August 27, 2010 (the “Closing Date”) at the offices of the Company, or at
such other time and place as the parties may mutually agree
upon.

     

    B.        
   Deliveries
by the Company.  Within five (5) days of the
later of (i) the Closing Date, or (ii) receipt by the Company of approval of the
proposed issuance of the Converted Shares contemplated in this Agreement from
the Nasdaq Stock Market, the Company shall submit a letter to Corporate Stock Transfer, the
Company’s transfer agent (the “Transfer Agent”), instructing the Transfer Agent to
deliver to Intellect Goal the certificates representing the Converted
Shares.

     

    C.        
   Deliveries
by Intellect Goal.  At the Closing, Intellect
Goal shall deliver to the
Company a written certificate evidencing the irrevocable cancellation of all
indebtedness owed to Intellect Goal under the Advances, including all principal
and interest, if any, accrued and owing thereon.

     

    5.           Release of
Liability. Intellect Goal releases the Company,
its successors and assigns, and each of their respective officers, directors,
employees and agents, from any and all claims, liability, losses and damages
whatsoever with respect to any and all payment or other obligations, covenants or commitments of the
Company to or in favor of Intellect Goal arising under or in relation to the
Advances. INTELLECT GOAL HEREBY ACKNOWLEDGES AND AGREES THAT THE
COMPANY’S SUCCESSORS AND ASSIGNS, AND EACH OF
THE COMPANY’S AND ITS SUCCESSORS AND ASSIGNS’ RESPECTIVE OFFICERS, DIRECTORS,
EMPLOYEES AND AGENTS SHALL BE DEEMED TO BE THIRD PARTY BENEFICIARIES OF THE
RELEASE SET FORTH ABOVE IN THIS PARAGRAPH.

     

    
      
         

      

      
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    6.           Miscellaneous.

     

    A.       
    Further
Assurances. Each of
Intellect Goal and the Company hereby acknowledges, agrees and covenants
that it shall promptly execute and deliver to any other party hereto any and all
instruments, agreements or other documents that shall be prepared and reasonably
request to be so executed and delivered by such other party, and to take all other action
reasonably requested by any other party hereto that is consistent with the
cancellation and discharge of the Advances and all other express purposes of
this Agreement.

     

    B.        
   Governing
Law; Attorneys’
Fees. This Agreement
shall be governed by and
construed in accordance with the laws of the State of Delaware, without regard
to principles of conflicts of law. If any suit, action, or proceeding is brought
to enforce any term or provision of this Agreement, the prevailing
party shall be entitled to recover reasonable
attorneys’ fees, costs, and expenses incurred, in
addition to any other relief to which such party may be legally
entitled.

     

    C.        
   Construction.  The captions and headings
contained herein are for convenient reference only and shall not in any way affect the
meaning or interpretation of this Agreement.  Notwithstanding any rule
or maxim of construction to the contrary, any ambiguity or uncertainty in this
Agreement shall not be construed against either party based upon authorship of any of the provisions
hereof.

     

    D.       
    Entire
Agreement. This Agreement
constitutes the only agreement or understanding between the parties with respect
to the subject mater hereof, and supersedes and is controlling over any and all
prior existing agreements
or communications between the parties. All negotiations, commitments, and
understandings acceptable to both parties have been incorporated into this
Agreement.

     

    E.        
    Amendment or
Waiver.  This
Agreement may by amended by a writing signed by all parties hereto, with respect to any of
the terms contained herein, and any term or condition of this Agreement may be
waived or the time for performance may be extended by a writing signed by the
party or parties for whose benefit the provision is intended.

     

    F.          
  Counterparts. This instrument may be executed in
counterparts, each of which shall constitute an original but all of which shall
constitute but one and the same instrument. One or more counterparts of this
instrument may be delivered via facsimile, with the intention that they shall have
the same effect as an original counterpart hereof.

     

     

    
      
         

      

      
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    IN WITNESS WHEREOF, the parties to this
Agreement have executed the same as of the date first above
written.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 
      	 
      	 
      	 
	 
      	
                                            NEW ORIENTAL ENERGY & CHEMICAL
      CORP.

                                          
	 	 	 	 
	 	 	 	 
	 
      	
                                            By:

                                          	
                                            /s/ Chen Si
      Qiang

                                          	 
	 
      	
                                            Name: Chen Si
      Qiang

                                          	 
	 	 	 	 
	 
      	
                                            Title: Chairman and
      CEO

                                          	 
	 
      	 
      	 
      	 
	 	 	 	 
	 
      	
                                            INTELLECT GOAL INVESTMENTS
      LIMITED

                                          
	 	 	 	 
	 
      	 
      	 
      	 
	 
      	
                                            By:

                                          	
                                            /s/ Zeng
      Lingpingi

                                          	 
	 
      	
                                            Name: Zeng
      Lingpingi

                                          	 
	 	 	 	 
	 
      	
                                            Title: Sole Director,
      President

                                          	 

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

     

    

     

    

     

    

    

    

    

    
      
         

      

      
        5ex10-1.htm

Exhibit 10.1

 

TENDER AND SUPPORT AGREEMENT

 

THIS TENDER AND SUPPORT AGREEMENT (this “Agreement”) dated as of August 31, 2010 is made by and among Kenexa Corporation, a Pennsylvania corporation (“Parent”), Spirit Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Purchaser”), and each stockholder listed on Annex I (each, a “Stockholder” and collectively, the “Stockholders”), each an owner of shares (the “Shares”) of common stock, par value $0.0001 per share, of Salary.com, Inc., a Delaware corporation (the “Company”).

WHEREAS, as of the date hereof, each Stockholder is the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of the number of Shares set forth opposite such Stockholder’s name under the heading “Shares Beneficially Owned” on Annex I (all such directly owned Shares which are outstanding as of the date hereof and which may hereafter be acquired pursuant to acquisition by purchase, stock dividend, distribution, stock split, split-up, combination, merger, consolidation, reorganization, recapitalization, combination or similar transaction, being referred to herein as the “Subject Shares;” provided that “Subject Shares” shall not include Shares beneficially owned in the form of Company Options or restricted stock, but only to the extent such Shares remain unvested, restricted or unexercised, as the case may be); and

 

WHEREAS, as a condition to their willingness to enter into the Agreement and Plan of Merger (the “Merger Agreement”) dated as of the date hereof by and among Parent, Purchaser and the Company, Parent and Purchaser have requested that each Stockholder, and in order to induce Parent and Purchaser to enter into the Merger Agreement, each Stockholder (only in such Stockholder’s capacity as a stockholder of the Company) has agreed to, enter into this Agreement; and

 

WHEREAS, capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Merger Agreement.

 

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

 

  

1

  

ARTICLE 1

 

AGREEMENT TO TENDER

 

Section 1.01 Agreement to Tender

 

(a) .  Each Stockholder shall duly tender, in the Offer, all of such Stockholder’s Subject Shares pursuant to and in accordance with the terms of the Offer, provided that the Offer price does not decrease.  Promptly, but in any event no later than ten (10) Business Days after the commencement of the Offer, each Stockholder shall (i) deliver to the depositary designated in the Offer (the “Depositary”) (A) a letter of transmittal with respect to such Stockholder’s Subject Shares complying with the terms of the Offer, (B) a certificate or certificates representing such Subject Shares or, in the case of a book-entry transfer of any uncertificated Subject Shares, an “agent’s message” (or such other evidence, if any, of transfer as the Depositary may reasonably request) and (C) all other documents or instruments required to be delivered pursuant to the terms of the Offer, and/or (ii) instruct such Stockholder’s broker or such other Person that is the holder of record of Stockholder’s Subject Shares to tender such Subject Shares pursuant to and in accordance with the terms of the Offer. Purchaser may elect to provide a subsequent offering period for the Offer in accordance with the Merger Agreement, and each Stockholder shall duly tender to Purchaser during such subsequent offering period all of the Subject Shares, if any, which shall have been issued after the expiration of the Offer.  Each Stockholder agrees that once such Stockholder’s Subject Shares are tendered pursuant to the terms hereof, such Stockholder will not withdraw any tender of such Subject Shares, unless and until (x) the Offer shall have been terminated or shall have expired, in each case, in accordance with the terms of the Merger Agreement, or (y) this Agreement shall have been terminated in accordance with Section 4.03 hereof. The Stockholder acknowledges that Purchaser’s obligation to accept for payment and pay for the Subject Shares is subject to all of the terms and conditions of the Offer.

 

Section 1.02 Voting of Subject Shares

 

(a) .  At every meeting of the stockholders of the Company called for such purpose, and at every adjournment or postponement thereof, each Stockholder shall, or shall cause the holder of record on any applicable record date to, vote such Stockholder’s Subject Shares (to the extent that any of such Stockholder’s Subject Shares are not purchased in the Offer and provided that the Offer price was not decreased) (i) in favor of the adoption of the Merger Agreement and the transactions contemplated thereby; (ii) against (A) any agreement or arrangement related to any Acquisition Proposal, (B) any liquidation, dissolution, recapitalization, extraordinary dividend or other significant corporate reorganization of the Company or any of its Subsidiaries, and (C) any change in the present capitalization of the Company or any amendment to the Company’s certificate of incorporation or bylaws; (iii) in favor of any other matter necessary for consummation of the transactions contemplated by the Merger Agreement; and (iv) against any other action, proposal or agreement that would reasonably be expected, to (A) impede, interfere with, materially delay or postpone the Merger and the other transactions contemplated by the Merger Agreement or (B) result in a breach in any respect of any covenant, representation or warranty, or any other obligation or agreement of the Company under the Merger Agreement, and in connection therewith, such Stockholder shall execute any documents which are necessary or appropriate in order to effectuate the foregoing.  Each Stockholder shall retain at all times the right to vote such Stockholder’s Subject Shares in Stockholder’s sole discretion and without any other limitation on those matters other than those set forth in this Section 1.02 that are at any time or from time to time presented for consideration to the Company’s stockholders generally.  In the event that any meeting of the stockholders of the Company is held, such Stockholder shall, or shall cause the holder of record on any applicable record date to, appear at such meeting or otherwise cause such Stockholder’s Subject Shares (to the extent that any of such Stockholder’s Subject Shares are not purchased in the Offer and provided that the Offer price was not decreased) to be counted as present thereat for purposes of establishing a quorum.

 

  

2

  

ARTICLE 2

 

REPRESENTATIONS AND WARRANTIES

 

Section 2.01 Representations and Warranties of the Stockholders

 

Each Stockholder hereby severally but not jointly represents and warrants to Parent and Purchaser as follows:

 

(a) Authorization; Validity of Agreement; Necessary Action.  Such Stockholder has all requisite power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby.  To the extent applicable, the execution and delivery of this Agreement and the consummation by the Stockholder of the transactions contemplated hereby have been duly authorized by all necessary action (corporate or otherwise) on the part of such Stockholder.  This Agreement has been duly executed and delivered by such Stockholder and constitutes a valid and binding obligation of such Stockholder, enforceable in accordance with its terms (except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and to general equity principles).  If such Stockholder is married and the Shares set forth on Annex I hereto constitute community property under applicable laws, this Agreement has been duly authorized, executed and delivered by, and constitutes the valid and binding agreement of, such Stockholder’s spouse.

 

(b) Ownership.  As of the date hereof, the number of Shares beneficially owned (as defined in Rule 13d-3 under the Exchange Act) by such Stockholder is set forth opposite such Stockholder’s name under the heading “Shares Beneficially Owned” on Annex I.  Such Stockholder’s Subject Shares are, and (except as otherwise expressly permitted by this Agreement) any additional Shares and any options and warrants to purchase Shares, or any other securities of the Company convertible, exercisable or exchangeable into Shares that are acquired by the Stockholder after the date hereof and prior to the Effective Time will be, owned beneficially by the Stockholder.  As of the date hereof, such Stockholder’s Subject Shares constitute all of the securities of the Company (other than Shares beneficially owned in the form of options to purchase Shares outstanding as of the date hereof) held of record, beneficially owned by or for which voting power or disposition power is held or shared by the Stockholder.  Such Stockholder has and (except as otherwise expressly permitted by this Agreement) will have at all times through the Effective Time sole voting power, sole power of disposition, sole power to issue instructions with respect to the matters set forth in Article 1, Article 3, and Section 4.03 hereof, and sole right, power and authority to agree to all of the matters set forth in this Agreement, in each case with respect to all of such Stockholder’s Subject Shares and with respect to all of such Stockholder’s Shares at all times through the Effective Time, with no limitations, qualifications or restrictions on such rights, subject to applicable federal securities laws and the terms of this Agreement.  Except as set forth on Annex I, such Stockholder has good, valid and marketable title to such Stockholder’s Subject Shares, free and clear of all liabilities, claims, liens, options, proxies, changes, participations, and encumbrances of any kind or character whatsoever (collectively, “Liens”), other than those arising under the securities laws or under the Company’s governance documents, and such Stockholder will have good, valid, and marketable title to all of such Stockholder’s Shares at all times through the Effective Time, free and clear of any Liens, other than those arising under the securities laws or under the Company’s governance documents.  Such Stockholder further represents that any proxies heretofore given in respect of the Shares owned beneficially and of record by such Stockholder are revocable, and hereby revokes such proxies.

 

(c) No Violation.  The execution and delivery of this Agreement by such Stockholder does not, and the performance by such Stockholder of its obligations under this Agreement will not, (i) assuming the filing of such reports as may be required under Sections 13(d) and 16 of the Exchange Act, which such Stockholder will file, conflict with or violate any Law applicable to such Stockholder or by which any of such Stockholder’s assets or properties is bound or (ii) conflict with, result in any breach of or constitute a default (or an event that 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 require payment under, or result in the creation of any Lien on the properties or assets of such Stockholder 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 such Stockholder or any of such Stockholder’s assets or properties is bound, except for any of the foregoing as could not reasonably be expected, either individually or in the aggregate, to materially impair the ability of such Stockholder to perform such Stockholder’s obligations hereunder or to consummate the transactions contemplated hereby on a timely basis.  The execution and delivery of this Agreement by such Stockholder does not, and the performance of this Agreement by such Stockholder will not, require any consent, approval, authorization or permit of, or filing with or notification to any (i) Governmental Authority, except for filings that may be required under the Exchange Act and the HSR Act or (ii) third party (including with respect to individuals, any spouse, and with respect to trusts, any co-trustee or beneficiary).

 

  

3

  

(d) Information.  None of the information relating to such Stockholder provided by or on behalf of such Stockholder in writing for inclusion in the Offer Documents, the Schedule 14D-9 or the Proxy Statement will, at the respective times such documents are filed with the SEC or are first published, sent or given to stockholders of the Company, contain any untrue statement of material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(e) Absence of Litigation.  As of the date hereof, there is no suit, action, investigation or proceeding pending or, to the knowledge of such Stockholder, threatened against such Stockholder before or by any Governmental Authority that would impair the ability of such Stockholder to perform its obligations hereunder or to consummate the transactions contemplated hereby on a timely basis.

 

(f) No Finder’s Fee. No broker, investment banker, financial advisor or other Person is entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of the Stockholder (other than in such Stockholder’s capacity as an officer or director of the Company and as disclosed pursuant to the Merger Agreement).

 

(g) Acknowledgement. The Stockholder (i) acknowledges receipt of, and has had an opportunity to read and understand and consult with independent counsel concerning, the Merger Agreement (including exhibits and schedules thereto); and (ii) understands and acknowledges that each of Parent and Purchaser is entering into the Merger Agreement in reliance upon such Stockholder’s execution, delivery and performance of this Agreement.

 

Section 2.02 Representations and Warranties of Parent and Purchaser

 

Each of Parent and Purchaser, jointly and severally, hereby represents and warrants to each Stockholder as follows:

 

(a) Authorization; Validity of Agreement; Necessary Action.  Each of Parent and Purchaser is an entity duly organized, validly existing and in good standing under the laws of the state wherein it is formed.  Each of Parent and Purchaser has all requisite power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement and the consummation by Parent and Purchaser of the transactions contemplated hereby have been duly authorized by all necessary action on the part of Parent and Purchaser.  This Agreement has been duly executed and delivered by Parent and Purchaser and constitutes a valid and binding obligation of each of them, enforceable in accordance with its terms (except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and to general equity principles).

 

(b) No Conflicts

 

The execution and delivery of this Agreement by Parent and Purchaser does not, and the performance by each of them of its obligations under this Agreement will not, (i) conflict with or violate any Law applicable to Parent and Purchaser or by which any of their assets or properties is bound or (ii) conflict with, result in any breach of or constitute a default (or an event that 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 require payment under, or result in the creation of any Lien on the properties or assets of Parent or Purchaser pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument or obligation to which Parent or Purchaser is a party or by which Parent or Purchaser or any of their respective assets or properties is bound, except for any of the foregoing in (i) or (ii) above as could not reasonably be expected, either individually or in the aggregate, to materially impair the ability of Parent and Purchaser to perform their obligations hereunder or to consummate the transactions contemplated hereby on a timely basis.  The execution and delivery of this Agreement by Parent and Purchaser does not, and the performance of this Agreement by Parent and Purchaser will not, require any consent, approval, authorization or permit of, or filing with or notification to any (i) Governmental Authority, except for filings that may be required under the Exchange Act and the HSR Act or (ii) third party, except, in the case of (i) or (ii) above, as could not reasonably be expected, either individually or in the aggregate, to materially impair the ability of Parent and Purchaser to perform their obligations hereunder or to consummate the transactions contemplated hereby on a timely basis..

 

  

4

  

ARTICLE 3

 

OTHER COVENANTS

 

Section 3.01 (a) No Transfers

 

Each Stockholder hereby agrees, while this Agreement is in effect, and except as expressly contemplated hereby, not to, directly or indirectly (i) grant any proxies or enter into any voting trust or other agreement or arrangement with respect to the voting of any Shares or (ii) sell, transfer, pledge, encumber, assign, distribute, gift or otherwise dispose of (including by operation of law, other than by death of any person) (collectively, a “Transfer”) or enter into any contract, option or other arrangement or understanding with respect to any Transfer (whether by actual disposition or effective economic disposition due to hedging, cash settlement or otherwise) of, any of the Subject Shares, other securities of the Company owned beneficially or of record as of the date hereof, any additional Shares and other securities of the Company acquired beneficially or of record by the Stockholder after the date hereof, or any interest therein. Such Stockholder shall not take any of the actions that the Company is prohibited from taking under Section 6.1 of the Merger Agreement.

 

Section 3.02 Changes to Shares.  In case of a stock dividend or distribution, or any change in Shares by reason of any stock dividend or distribution, split-up, recapitalization, combination, exchange of shares or the like, the term “Shares” shall be deemed to refer to and include the Shares as well as all such stock dividends and distributions and any securities into which or for which any or all of the Shares may be changed or exchanged or which are received in such transaction.  Each Stockholder agrees, while this Agreement is in effect, to notify Parent promptly in writing of the number of any additional Shares or other securities of the Company acquired by such Stockholder, if any, after the date hereof.

 

Section 3.03 No Inconsistent Arrangements.  Each Stockholder agrees, while this Agreement is in effect, (i) not to take, agree or commit to take any action that would reasonably be expected to make any representation or warranty of such Stockholder contained in this Agreement inaccurate in any respect as of any time during the term of this Agreement or (ii) to take all reasonable action necessary to prevent any such representation or warranty from being inaccurate in any respect at any such time.  Such Stockholder further agrees that it shall use commercially reasonable efforts to cooperate with Parent, as and to the extent reasonably requested by Parent, to effect the transactions contemplated hereby including the Offer and the Merger.

 

Section 3.04 Appraisal Rights.  Such Stockholder hereby waives, and agrees not to exercise or assert, if applicable, any appraisal rights under Section 262 of the DGCL in connection with the Merger and to take all actions necessary to opt out of any class in any class action with respect to, any claim, derivative or otherwise, against the Company or any of its subsidiaries (or any of their respective successors) relating to the negotiation, execution and delivery of this Agreement or the Merger Agreement or the consummation of the Merger or any of the other transactions contemplated hereby or thereby.

 

Section 3.05 Non-Solicitation. Between the date hereof and such time as this Agreement shall have been terminated in accordance with Section 4.03 hereof, each Stockholder shall not, and shall not authorize or permit its Representatives to, directly or indirectly (i) initiate, solicit, or knowingly encourage or knowingly facilitate the submission of any inquiry, indication of interest, proposal or offer that constitutes, or would reasonably be expected to lead to, an Acquisition Proposal, (ii) participate in any discussions or negotiations regarding, or furnish any non-public information to any Person (other than Parent, Merger Sub or any designees of Parent or Merger Sub) in connection with, an Acquisition Proposal, (iii) enter into any letter of intent or agreement related to an Acquisition Proposal, or (iv) approve or recommend an Acquisition Proposal.

 

Section 3.06 Documentation and Information. Each Stockholder (i) consents to and authorizes the publication and disclosure by Parent and its affiliates of its identity and holding of such Stockholder’s Subject Shares and the nature of its commitments and obligations under this Agreement in any announcement or disclosure required by the SEC or other Governmental Authority, the Offer Documents, or any other disclosure document in connection with the Offer, the Merger or any of the other transactions contemplated by the Merger Agreement or this Agreement, and (ii) agrees promptly to give to Parent any information it may reasonably require for the preparation of any such disclosure documents. Each Stockholder agrees to promptly notify Parent of any required corrections with respect to any written information supplied by it specifically for use in any such disclosure document, if and to the extent that any shall have become false or misleading in any material respect.

 

  

5

  

 

ARTICLE 4

 

MISCELLANEOUS

 

Section 4.01 Notices

 

                All notices and other communications hereunder shall be in writing and shall be deemed given if delivered to Parent and Purchaser in accordance with Section 10.3 of the Merger Agreement and to each Stockholder at its address set forth below such Stockholder’s signature hereto (or at such other address for a party as shall be specified by like notice).

 

Section 4.02 Further Assurances

 

Each Stockholder shall, from time to time, execute and deliver, or cause to be executed and delivered, such additional or further consents, documents and other instruments as Parent or Purchaser may reasonably request for the purpose of effectively carrying out the transactions contemplated by this Agreement.

 

Section 4.03 Termination

 

This Agreement shall terminate upon the earlier of (i) the termination of the Merger Agreement in accordance with its terms (ii) the Effective Time, (iii) the termination or expiration of the Offer, without any shares being accepted for payment thereunder, (iv) upon reduction of the Offer Price or (v) upon mutual written agreement of the parties to terminate this Agreement.  In the event of a termination of this Agreement pursuant to this Section 4.03, this Agreement shall become void and of no effect with no liability on the part of any party hereto; provided that the provisions of Article 4, but excluding Section 4.02, shall survive the termination of this Agreement, and no such termination shall relieve any party hereto from any liability for any breach of this Agreement occurring prior to such termination.

 

Section 4.04 Amendments and Waivers.

 

(a) The parties hereto may modify or amend this Agreement by written agreement executed and delivered by duly authorized officers of the respective parties.

 

(b) Any failure of any of the parties to comply with any obligation, covenant, agreement or condition herein may be waived by the party or parties entitled to the benefits thereof only by a written instrument signed by the party expressly granting such waiver, but such waiver or failure to insist upon strict compliance with such obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure.

 

Section 4.05 Expenses

 

All costs and expenses incurred in connection with this Agreement shall be paid by the party incurring such costs and expenses, whether or not the transactions contemplated by this Agreement or the Merger Agreement are consummated.

 

Section 4.06 Binding Effect; Benefit; Assignment

 

Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties.  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 permitted successors and assigns.

 

Section 4.07 Governing Law

 

This Agreement shall be governed by, and construed in accordance with the laws of the State of Delaware, without giving effect to any choice or conflict of laws provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of Delaware.

 

  

6

  

Section 4.08 Jurisdiction

 

Each of the parties hereto hereby (a) expressly and irrevocably submits to the exclusive personal jurisdiction of the Delaware Court of Chancery, any other court of the State of Delaware and any Federal court sitting in the State of Delaware in the event any dispute arises out of this Agreement, (b) agrees that such party will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, (c) agrees that such party will not bring any action relating to this Agreement in any court other than the Delaware Court of Chancery, any other court of the State of Delaware or any Federal court sitting in the State of Delaware and (d) agrees that each of the other parties shall have the right to bring any action or proceeding for enforcement of a judgment entered by the Delaware Court of Chancery, any other court of the State of Delaware and any Federal court sitting in the State of Delaware.  Each of Parent, Purchaser and each Stockholder agrees that a final judgment in any 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.

 

Section 4.09 Service of Process

 

Each party irrevocably consents to the service of process outside the territorial jurisdiction of the courts referred to in Section 4.08 hereof in any such action or proceeding by mailing copies thereof by registered or certified United States mail, postage prepaid, return receipt requested, to such party’s address as specified in or pursuant to Section 4.01 hereof.  However, the foregoing shall not limit the right of a party to effect service of process on the other party by any other legally available method.

 

Section 4.10 Waiver of Jury Trial

 

EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY OR DISPUTE THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH SUCH PARTY MAKES THIS WAIVER VOLUNTARILY AND (iv) EACH SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS OF THIS SECTION.

 

Section 4.11 Entire Agreement; Third Party Beneficiaries

 

.  This Agreement (a) constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof and (b) is not intended to confer upon any Person other than the parties hereto any rights or remedies hereunder.

 

Section 4.12 Severability

 

If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void, unenforceable or against its regulatory policy, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

  

7

  

Section 4.13 Specific Performance

 

Each of the parties hereto acknowledges and agrees that, in the event of any breach of this Agreement, each nonbreaching party would be irreparably and immediately harmed and could not be made whole by monetary damages.  It is accordingly agreed that the parties hereto (a) will waive, in any action for specific performance, the defense of adequacy of a remedy at law and (b) shall be entitled, in addition to any other remedy to which they may be entitled at law or in equity, to compel specific performance of this Agreement in any action instituted in accordance with Section 4.08 hereof.

 

Section 4.14 Stockholder Capacity

 

Notwithstanding any provision of this Agreement to the contrary, nothing in this Agreement shall (or shall require any Stockholder to attempt to) affect or limit any Stockholder who is a director or officer of the Company from acting in such capacity (it being understood that this Agreement shall apply to each Stockholder solely in each Stockholder’s capacity as a stockholder of the Company).

 

Section 4.15 Stockholder Obligations Several and Not Joint

 

The obligations of each Stockholder hereunder shall be several and not joint and no Stockholder shall be liable for any breach of the terms of this Agreement by any other Stockholder.

 

Section 4.16 Headings.  The Section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

 

Section 4.17 Interpretation.  Any reference to any national, state, local or foreign Law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context otherwise requires. When a reference is made in this Agreement to Sections, such reference shall be to a Section to this Agreement unless otherwise indicated. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.”

 

Section 4.18 No Presumption.  This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting or causing any instrument to be drafted.

 

Section 4.19 Counterparts

 

This Agreement may be executed in multiple counterparts, all of which shall together be considered one and the same agreement.

 

  

8

  

 

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

 

	  	  	
KENEXA CORPORATION

	  	  	  
	  	  	  
	  	  	
By:

	
// Nooruddin S. Karsan

	  	  	  	
Name: Nooruddin S. Karsan

	  	  	  	
Title: Chief Executive Officer

	  	  	
SPIRIT MERGER SUB, INC.

	  	  	  
	  	  	  
	  	  	
By:

	
/s/ Donald F. Volk

	  	  	  	
Name: Donald F. Volk

	  	  	  	
Title: President

  

9

  

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

	  	
/s/ Bryce Chicoyne

Bryce Chicoyne

 

Notice Address:

 

(Notice address omitted)

 

	  	
/s/ G. Kent Plunkett

G. Kent Plunkett

 

Notice Address:

 

(Notice address omitted)

 

	  	
/s/ Yong Zhang

Yong Zhang

 

Notice Address:

 

(Notice address omitted)

 

	  	
/s/ Paul Daoust

Paul Daoust

 

Notice Address:

 

(Notice address omitted)

 

	  	
/s/ John Gregg

John Gregg

 

Notice Address:

 

(Notice address omitted)

 

	  	
/s/ Edward McCauley

Edward McCauley

 

Notice Address:

 

(Notice address omitted)

 

	  	
/s/ John Sumser

John Sumser

 

Notice Address:

 

(Notice address omitted)

 

	  	
 

/s/ Terry Temescu

Terry Temescu

 

Notice Address:

 

(Notice address omitted)

 

	  	
/s/ Robert Trevisani

 

Robert Trevisani

 

Notice Address:

 

(Notice address omitted)

 

	  	
/s/ William Martin

William Martin

 

Notice Address:

 

(Notice address omitted)

 

	  	
/s/ Teresa Shipp

Teresa Shipp

 

Notice Address:

 

(Notice address omitted)

 

	  	
/s/ Brent Kleiman

Brent Kleiman

 

Notice Address:

 

(Notice address omitted)

 

	  	
/s/ Judy Duff

Judy Duff

 

Notice Address:

 

(Notice address omitted)

 

	  	
/s/ Nicholas Camelio

Nicholas Camelio

 

Notice Address:

 

(Notice address omitted)

 

 

  

10

  

ANNEX I

 

	
Stockholder

	
Shares

Beneficially Owned

	
Subject Shares

Outstanding as of

the date of this Agreement

	
Bryce Chicoyne

	
56,772

	
56,772

	
Paul R. Daoust

	
95,551

	
73,115

	
John F. Gregg

	
176,246

	
159,381

	
Terry Temescu

	
36,961

	
24,497

	
Yong Zhang

	
313,001

	
241,798

	
Robert A. Trevisani

	
85,256

	
62,231

	
William C. Martin

	
1,616,295

	
1,612,870

	
Edward F. McCauley

	
100,741

	
97,316

	
G. Kent Plunkett

	
2,997,378

	
2,457,792

	
John R. Sumser

	
66,612

	
49,747

	
Brent Kleiman

	
39,237

	
39,237

	
Teresa Shipp

	
195,275

	
148,083

	
Judy Duff

	
26,254

	
26,254

	
Nicholas Camelio

	
49,845

	
37,345

  

11

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