Composite Agreement and Plan of Merger dated as of July 2, 2009, as amended as of October 2, 2009

Contract Categories: Mergers & Acquisitions - Merger Agreements
EX-10.61 6 d68961exv10w61.htm EX-10.61 exv10w61
EXHIBIT 10.61
EXECUTION VERSION
FIRST AMENDMENT TO THE SUPPORT AGREEMENT
     THIS FIRST AMENDMENT dated as of October 2, 2009 (this “Amendment”) to the Support Agreement (the “Original Agreement”) dated as of July 2, 2009, is among Quest Resource Corporation, a Nevada corporation, Quest Midstream Partners, L.P., a Delaware limited partnership (“QMLP”), Quest Energy Partners, L.P., a Delaware limited partnership, Alerian Opportunity Partners IV, LP and Alerian Opportunity Partners IX, LP (collectively, “Alerian”), and each of the unitholders of QMLP listed on Schedule I to the Original Agreement (collectively and together with Alerian, the “QMLP Investors”).
     WHEREAS, the parties to the Original Agreement wish to amend the Original Agreement pursuant to Section 6.05 thereof to correct a clerical error, to reflect the proposed amendment to the Merger Agreement (as defined below) being executed simultaneously herewith and to add Alerian as a party to the Original Agreement.
     NOW, THEREFORE, in consideration of the foregoing, and of the representations, warranties, covenants and agreements contained herein and in the Original Agreement, the parties hereto hereby agree as follows:
1.   Definition of QMLP Investors
     In the preamble of the Original Agreement, the definition of “QMLP Investor” is hereby amended so that it includes Alerian and each of the unitholders of QMLP listed on Schedule I to the Original Agreement.
2.   Recitals of the Original Agreement
     In the second recital of the Original Agreement, the reference to “3,417,568” is hereby changed to “6,346,888.”
     The third recital of the Original Agreement is hereby amended and restated in its entirety to provide as follows:
     “WHEREAS, on the date of this Agreement, (1) Swank MLP Convergence Fund, LP, Swank Investment Partners, LP, The Cushing MLP Opportunity Fund I, LP and The Cushing GP Strategies Fund, LP (collectively, “Swank”) collectively own of record and beneficially, and have the right to vote, 7.5% of the outstanding membership interests of Quest Midstream GP, LLC, a Delaware limited liability company (“QMGP”) and (2) Alerian Opportunity Partners IV, LP and Alerian Opportunity Partners IX, LP (collectively, “Alerian”) collectively own of record and beneficially, and have the right to vote, 7.5% of the outstanding membership interests of QMGP;”

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     The fourth recital of the Original Agreement is hereby amended and restated in its entirety to provide as follows:
     “WHEREAS, simultaneously with the execution and delivery of this Agreement, QRC, QMLP, QELP, QMGP, Quest Energy GP, LLC, a Delaware limited liability company (“QEGP”), New Quest Holdings Corp., a Delaware corporation (“Holdco”), Quest Resource Acquisition Corp., a Delaware corporation and a wholly-owned direct subsidiary of Holdco (“QRC Merger Sub”), Quest Energy Acquisition, LLC, a Delaware limited liability company and a wholly-owned direct subsidiary of QRC (“QELP Merger Sub”), Quest Midstream Holdings Corp., a Delaware corporation and a wholly-owned direct subsidiary of Holdco (“QMHC”), and Quest Midstream Acquisition, LLC, a Delaware limited liability company and a wholly-owned direct subsidiary of QMAC (“QMLP Merger Sub”), are entering into an Agreement and Plan of Merger, dated as of July 2, 2009 (as amended from time to time, the “Merger Agreement”; capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Merger Agreement), pursuant to which, among other things, (i) QRC Merger Sub will be merged with and into QRC, with QRC surviving as a wholly-owned subsidiary of Holdco (the “QRC Merger”), (ii) QELP Merger Sub will be merged with and into QELP, with QELP surviving as a wholly-owned subsidiary of QRC (the “QELP Merger”), (iii) QMLP will be merged with and into QMLP Merger Sub, with QMLP Merger Sub surviving as a wholly-owned subsidiary of QRC (the “QMLP Merger”), and (iv) promptly after the Effective Time, QMGP will merge with and into QMLP Merger Sub, with QMLP Merger Sub as the surviving entity (the “QMGP Merger”);”
3.   Section 1.04 of the Original Agreement
     Section 1.04 of the Original Agreement is hereby amended and restated in its entirety to provide as follows:
     “Section 1.04 Support of QMGP Merger by Swank and Alerian. Each of Swank and Alerian hereby approves, authorizes and consents to the QMGP Merger as contemplated by the Merger Agreement and shall take any and all actions and execute and deliver any and all documents necessary to effectuate the QMGP Merger as contemplated by the Merger Agreement.”
4.   Article 3 of Original Agreement
     Alerian hereby, severally and not jointly with the other QMLP Investors, represents and warrants to QELP, QMLP and QRC as to each of the matters set forth in Article 3 of the Original Agreement.
5.   Section 5.01 of the Original Agreement
     Section 5.01 of the Original Agreement is hereby amended by adding “each of” immediately before “Swank” and by adding “and Alerian” immediately after “Swank.”

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6.   Schedule I to the Original Agreement
     Schedule I to the Original Agreement is hereby amended and restated in its entirety to provide as follows:
SCHEDULE I
QMLP INVESTORS
             
        Common Units
Entity   Address for Notice   Held of Record
 
  Swank Capital, LLC        
Swank MLP Convergence
  Oak Lawn Avenue, Suite 650        
Fund, LP
  Dallas, TX 75219     592,497  
 
           
 
  Swank Capital, LLC        
The Cushing MLP
  Oak Lawn Avenue, Suite 650        
Opportunity Fund I, LP
  Dallas, TX 75219     1,078,470  
 
           
 
  Swank Capital, LLC        
Bel Air MLP Energy
  Oak Lawn Avenue, Suite 650        
Infrastructure Fund, LP
  Dallas, TX 75219     154,564  
 
           
 
  Tortoise Capital Resources
Corporation
       
Tortoise Capital Resources
  10801 Mastin Blvd. Suite 222        
Corporation
  Overland Park, KS 66210     1,216,881  
 
           
Tortoise North American
  Tortoise North American        
Energy Corporation (as
  Energy Corporation        
successor to Tortoise Gas
  11550 Ash Street, Suite 300        
and Oil Corporation)
  Leawood, KS 66211     479,150  
 
           
 
  Kayne Anderson Energy        
Kayne Anderson Energy
  Development Company        
Development Company, as
  1800 Avenue of the Stars,        
successor to KED MME
  Second Floor        
Investment Partners, L.P.
  Los Angeles, CA 90067     360,650  
 
           
 
  Alerian Capital Management
LLC
       
 
  2100 McKinney Avenue        
Alerian Opportunity
  18th Floor        
Partners IV, LP
  Dallas, TX 75201     1,949,461  
 
           
 
  Alerian Capital Management
LLC
       
 
  2100 McKinney Avenue        
Alerian Opportunity
  18th Floor        
Partners IX, LP
  Dallas, TX 75201     352,922  

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        Common Units
Entity   Address for Notice   Held of Record
 
  Alerian Capital Management
LLC
       
 
  2100 McKinney Avenue        
 
  18th Floor        
Alerian Capital Partners LP
  Dallas, TX 75201     123,652  
 
           
 
  Alerian Capital Management
LLC
       
 
  2100 McKinney Avenue        
 
  18th Floor        
Alerian Focus Partners LP
  Dallas, TX 75201     38,641  
 
  Total     6,346,888  
7.   Additional Party to the Original Agreement
     The parties to the Original Agreement hereby consent to the addition of Alerian as a party to the Original Agreement, as if Alerian had been a party to the Original Agreement since the date upon which the Original Agreement was executed and delivered by the parties thereto. Alerian hereby agrees to be bound by, and to observe and comply with, all of the terms and provisions of the Original Agreement as fully and to the same extent as if Alerian had been a party to the Original Agreement since the date upon which the Original Agreement was executed and delivered by the parties thereto.
8.   Consent to the Amendment to the Merger Agreement
     The QMLP Investors and QRC hereby consent to the First Amendment dated as of October 2, 2009 to the Agreement and Plan of Merger dated as of July 2, 2009 among Holdco, QRC, QMLP, QELP, QMGP, QEGP, QRC Merger Sub, QELP Merger Sub, QMHC and QMLP Merger Sub.
9.   Other Terms of the Original Agreement
     Except as otherwise expressly set forth in this Amendment, all the provisions of the Original Agreement are hereby ratified and confirmed by the parties and shall remain in full force and effect. All references in the Original Agreement to “this Agreement” shall be read as references to the Original Agreement, as amended by this Amendment, but references to the date of the Original Agreement therein shall remain references to July 2, 2009.
10.   Counterparts
     This Amendment may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of a number of copies hereof each signed by less than all, but together signed by all of the parties hereto.
11.   Headings
     Headings of the Sections of this Amendment are for the convenience of the parties only and shall be given no substantive or interpretative effect whatsoever.

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12.   Governing Law
     This Amendment and the rights and obligations of the parties hereto shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to the conflicts of law provisions thereof that would cause the laws of any other jurisdiction to apply.
[Signature pages follow.]

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     IN WITNESS WHEREOF, the parties hereto have cause this Amendment to be duly executed as of the date and year first above written.
         
    QUEST RESOURCE CORPORATION
 
       
 
  By:   /s/ David Lawler
 
       
 
      David Lawler
President and Chief Executive Officer
 
       
    QUEST MIDSTREAM PARTNERS, L.P.
 
       
 
  By:   Quest Midstream GP, LLC,
its General Partner
 
       
 
  By:   /s/ David Lawler
 
       
 
      David Lawler
President and Chief Executive Officer
 
       
    QUEST ENERGY PARTNERS, L.P.
 
       
 
  By:   Quest Energy GP, LLC,
its General Partner
 
       
 
  By:   /s/ Gary Pittman
 
       
 
      Gary Pittman
Chairman of the Board of Directors of
Quest Energy GP, LLC
[Signature Page to First Amendment to Support Agreement]

 


 

         
    SWANK MLP CONVERGENCE FUND, LP
 
       
 
  By:   SWANK ENERGY INCOME ADVISORS, L.P.
Its General Partner
 
       
 
  By:   SWANK CAPITAL, LLC
Its General Partner
         
 
  By:   /s/ Jerry V. Swank
 
       
 
      Jerry V. Swank
Manager
         
    THE CUSHING MLP OPPORTUNITY
FUND I, LP
 
       
 
  By:   CARBON COUNTY PARTNERS I, LP
Its General Partner
 
       
 
  By:   CARBON COUNTY GP I, LLC
Its General Partner
         
 
  By:   /s/ Jerry V. Swank 
 
       
 
      Jerry V. Swank
Manager
[Signature Page to First Amendment to Support Agreement]

 


 

         
    BEL AIR MLP ENERGY
INFRASTRUCTURE FUND, LP
 
       
 
  By:   SWANK ENERGY INCOME
ADVISORS, L.P.
its investment advisor
 
       
 
  By:   SWANK CAPITAL, LLC
Its General Partner
 
       
         
 
  By:   /s/ Jerry V. Swank
 
       
 
      Jerry V. Swank
Manager
         
    TORTOISE CAPITAL RESOURCES
CORPORATION
 
       
 
  By:   /s/ Edward Russell
 
       
 
      Edward Russell
President
 
       
    TORTOISE NORTH AMERICAN
ENERGY CORPORATION
 
       
 
  By:   /s/ Rob Thummel
 
       
 
      Rob Thummel
President
 
       
    KAYNE ANDERSON ENERGY
DEVELOPMENT COMPANY
 
       
         
 
  By:   /s/ James C. Baker
 
       
 
      James C. Baker
Executive Vice President
[Signature Page to First Amendment to Support Agreement]

 


 

         
    ALERIAN OPPORTUNITY PARTNERS IV, LP
 
       
 
  By:   Alerian Opportunity Advisors IV, LLC
Its General Partner
         
 
  By:   /s/ Gabriel Hammond
 
       
 
      Gabriel Hammond
Managing Member
         
    ALERIAN OPPORTUNITY PARTNERS IX, LP
 
       
 
  By:   Alerian Opportunity Advisors IX, LLC
Its General Partner
         
 
  By:   /s/ Gabriel Hammond
 
       
 
      Gabriel Hammond
Managing Member
[Signature Page to First Amendment to Support Agreement]

 


 

         
    ALERIAN CAPITAL PARTNERS, LP
 
       
 
  By:   Alerian Capital Advisors, LLC
Its General Partner
         
    By:   /s/ Gabriel Hammond 
 
  /s/ Gabriel Hammond    
 
      Gabriel Hammond
Managing Member
         
    ALERIAN FOCUS PARTNERS, LP
 
 
  By:   Alerian Focus Advisors, LLC
Its General Partner
         
 
  By:   /s/ Gabriel Hammond 
 
       
 
      Gabriel Hammond
Managing Member

[Signature Page to First Amendment to Support Agreement]