AGREEMENT AND PLAN OF
MERGER
NEW QUEST HOLDINGS
CORP.,
QUEST RESOURCE
CORPORATION,
QUEST MIDSTREAM PARTNERS,
L.P.,
QUEST ENERGY PARTNERS,
L.P.,
QUEST RESOURCE ACQUISITION
CORP.,
QUEST ENERGY ACQUISITION,
LLC,
QUEST MIDSTREAM HOLDINGS
CORP.
QUEST MIDSTREAM ACQUISITION,
LLC
FIRST AMENDMENT
TO THE
AGREEMENT AND PLAN OF MERGER
FIRST
AMENDMENT dated as of October 2, 2009 (this
“Amendment”) to the Agreement and Plan of Merger (the
“Original Agreement”) dated as of July 2, 2009, is
by and among New Quest Holdings Corp., a Delaware corporation
(“Holdco”), Quest Resource Corporation, a Nevada
corporation (“QRC”), Quest Midstream Partners, L.P., a
Delaware limited partnership, Quest Energy Partners, L.P., a
Delaware limited partnership, Quest Midstream GP, LLC, a Delaware
limited liability company, Quest Energy GP, LLC, a Delaware limited
liability company, Quest Resource Acquisition Corp., a Delaware
corporation that is a wholly owned direct subsidiary of Holdco,
Quest Energy Acquisition, LLC, a Delaware limited liability company
that is a wholly-owned direct subsidiary of QRC, Quest Midstream
Holdings Corp., a Delaware corporation that is a wholly owned
direct subsidiary of Holdco, and Quest Midstream Acquisition, LLC,
a Delaware limited liability company that is a wholly-owned direct
subsidiary of QRC. Capitalized terms not otherwise defined herein
shall have the meanings given to them in the Original
Agreement.
WHEREAS, the
parties to the Original Agreement wish to amend the Original
Agreement pursuant to Section 11.5 thereof, and the respective
Board of Directors of such parties have approved and adopted this
Amendment; and
WHEREAS, the
parties to the Original Agreement (other than the QMLP Parties)
wish to consent to (i) the declaration and payment by the QMLP
Parties of a pro-rata dividend on the QMLP Common Units of 255,614
additional QMLP Common Units (the “Unit Dividend”) so
that, after giving effect to the Unit Dividend and the issuance of
4,063 QMLP Common Units to a QMLP employee on October 1, 2009
on a net exercise basis, the number of issued and outstanding QMLP
Common Units as of the date hereof shall equal 8,655,920, and
(ii) the proportionate adjustments of outstanding rights held
by QMLP employees, directors and others to acquire Common Units in
connection therewith (which shall result in 3,385 additional Common
Units being issuable pursuant thereto) (the
“Adjustments” and, together with the Unit Dividend, the
“Additional Unit Issuances”), all of which rights were
disclosed in Section 7.3(a) of the QMLP Disclosure Letter, so
that after giving effect to the Adjustments and the issuance of
QMLP Common Units to the QMLP employee on October 1, 2009 as
described above, the number of QMLP Common Units to be issued upon
the vesting of outstanding rights held by QMLP employees, directors
and others to acquire Common Units on the date hereof is
114,635;
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:
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1.
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Glossary of Defined Terms in the
Original Agreement
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In the Glossary of
Defined Terms, the references to the definitions of
“Certificates of Conversion,”
“Conversions,” “QMLLC,” “QMLP
Certificate of Conversion,” “QMLP Conversion” and
“QMLP Conversion Time” are deleted in their
entirety.
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2.
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Preamble to the Original
Agreement
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The Preamble to
the Original Agreement is hereby amended and restated in its
entirety to provide as follows:
“
AGREEMENT AND PLAN OF MERGER (the “Agreement”)
dated as of July 2, 2009, is by and among New Quest Holdings
Corp., a Delaware corporation (“ Holdco ”),
Quest Resource Corporation, a Nevada corporation (“
QRC ”), Quest Midstream Partners, L.P., a Delaware
limited partnership (“ QMLP ”), Quest Energy
Partners, L.P., a Delaware limited partnership (“ QELP
”), Quest Midstream GP, LLC, a Delaware limited liability
company (“ QMGP ”), Quest Energy GP, LLC, a
Delaware limited liability company (“ QEGP ”),
Quest Resource Acquisition Corp., a Delaware corporation that is a
wholly owned direct subsidiary of Holdco (“ QRC Merger
Sub ”), Quest Energy Acquisition, LLC, a Delaware limited
liability company that is a wholly-owned direct subsidiary of QRC
(“ QELP Merger Sub ”), Quest Midstream Holdings
Corp., a Delaware corporation that is a wholly owned direct
subsidiary of Holdco (“ QMHC ”), and Quest
Midstream Acquisition, LLC, a Delaware limited liability company
that is a wholly-owned direct subsidiary of QRC (“ QMLP
Merger Sub ”). QMHC, QRC Merger Sub, QELP Merger Sub and
QMLP Merger Sub are sometimes referred to herein collectively as
the “ Merger Subs ” and each a “ Merger
Sub .””
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3.
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Recitals of the Original
Agreement
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In clause
(iv) of the third recital of the Original Agreement, the
reference to “Holdco” is hereby changed to “the
QRC Surviving Entity.”
The fourth recital
of the Original Agreement is hereby amended and restated in its
entirety to provide as follows:
“WHEREAS,
the board of directors of QMGP, acting upon the unanimous
recommendation of its Conflicts Committee, has (i) determined
that this Agreement and the QMLP Merger are advisable, fair to and
in the best interests of QMLP and the holders of QMLP Common Units
(other than QMGP and its affiliates), (ii) approved the
execution and delivery of this Agreement by QMLP and QMGP and the
execution and delivery of the Support Agreement by QMLP,
(iii) recommended approval and adoption of this Agreement and
the QMLP Merger by the holders of QMLP Common Units (other than
QMGP and its affiliates), as a class, and the holders of the QMLP
Subordinated Units, as a class, and (iv) determined that the
QMGP Merger is in the best interests of QMGP, approved the QMGP
Merger and recommended approval of the QMGP Merger by the holders
of the outstanding QMGP Units;”
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In the fifth
recital of the Original Agreement, clause (iv) is hereby
deleted in its entirety, the reference to “, and”
immediately before clause (iv) is hereby deleted, and
“and” is hereby added immediately before
“(iii).”
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4.
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Section 1.3 of the Original
Agreement
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Section 1.3(a)
of the Original Agreement is hereby amended and restated in its
entirety to provide as follows:
“(a) Upon
the terms and subject to the conditions set forth in this
Agreement, and in accordance with the provisions of the Delaware LP
Act and the Delaware LLC Act, at the Effective Time, QMLP shall be
merged with and into QMLP Merger Sub (the “ QMLP
Merger ”), and the separate existence of QMLP shall
thereupon cease. QMLP Merger Sub shall be the surviving entity in
the QMLP Merger (sometimes referred to herein as the “
QMLP Surviving Entity ” and, together with the QRC
Surviving Entity and the QELP Surviving Entity, the “
Surviving Entities ”). The QMLP Merger shall have the
effects specified herein and in the Delaware LP Act and the
Delaware LLC Act.”
Section 1.3(b)
of the Original Agreement is hereby amended and restated in its
entirety to provide as follows:
“(b) As soon
as practicable following the satisfaction or waiver (subject to
Applicable Laws) of the conditions set forth in this Agreement, at
the Closing, QMLP Merger Sub shall cause a properly executed
certificate of merger (the “ QMLP Certificate of
Merger ”) meeting the requirements of Section 17-211
of the Delaware LP Act and Section 18-209 of the Delaware LLC
Act to be filed in accordance with such sections. The QMLP Merger
shall become effective at the Effective Time, which shall be
designated in the QMLP Certificate of Merger as the effective time
of the QMLP Merger.”
Section 1.3(d)
of the Original Agreement is hereby amended and restated in its
entirety to provide as follows:
“(d) At the
Effective Time, by virtue of the QMLP Merger, (i) the issued
and outstanding general partner units of QMLP (the “QMLP GP
Units”) held by QMGP shall be converted into a number of
validly issued, fully paid and nonassessable shares of Holdco
Common Stock equal to the product obtained by multiplying
(x) the number of shares of Holdco Common Stock issuable
pursuant to Section 1.3(c) by (y) 0.30612% (the
“QMLP GP Exchange Ratio” and, together with the QMLP
Exchange Ratio, the “QMLP Ratios”), rounded up
t
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