Exhibit 10.7
EXECUTION COPY
ED&F MAN HOLDINGS LIMITED
Cottons Centre
Hay’s Lane
London SE1 2QE
England
May 26, 2009
Shermen WSC Acquisition Corp.,
Terminal Merger Sub LLC and
Feed Merger Sub LLC
c/o Shermen WSC Acquisition Corp.
230 Park Avenue
Suite 1000
New York, NY 10169
Attention: Chief Executive Officer
Facsimile: (212) 332-2475
Westway Holdings Corporation,
Westway Terminal Company Inc. and
Westway Feed Products, Inc.
Cottons Centre
Hay’s Lane
London SE1 2QE
England
Attention: Philip Howell
Facsimile: +44 207 089
8112
Ladies and Gentlemen:
Reference is made to the Transaction
Agreement, dated as of November 25, 2008, as amended and
restated as of May 1, 2009 (as so amended and restated, the
“ Transaction Agreement ”), by and among Shermen
WSC Acquisition Corp., Terminal Merger Sub LLC, Feed Merger Sub
LLC, ED&F Man Holdings Limited, Westway Holdings Corporation,
Westway Terminal Company Inc. and Westway Feed
Products, Inc. Defined terms used herein and not
otherwise defined herein have the meaning ascribed to them in the
Transaction Agreement. The undersigned hereby agree as
follows:
1.
Estimated Closing Statements .
Pursuant to
Section 2.9(b)(i) and Section 3.2(b)(i) of the
Transaction Agreement, ED&F is required to deliver the
Estimated Merger Closing Statement and the Estimated
Stock Sale Closing Statement,
respectively, to Parent at least ten days prior to the Closing Date
(the “ Ten Day Requirement ”).
Notwithstanding Section 2.9(b)(i) and
Section 3.2(b)(i) of the Transaction Agreement, the Ten
Day Requirement will be satisfied, and ED&F will be deemed to
have complied in all respects with the Ten Day Requirement, so long
as it delivers the Estimated Merger Closing Statement and the
Estimated Stock Sale Closing Statement to Parent at least five days
prior to the Closing Date.
2.
Purchases of Parent Common Stock by Parent .
Section 7.2 of the Transaction
Agreement among other things restricts the ability of Parent to
undertake certain actions prior to the Closing without the consent
or approval of ED&F. Pursuant to Section 7.2 of the
Transaction Agreement, ED&F hereby consents to and approves of
the purchase by Parent of up to 2,514,369 shares of Parent Common
Stock in privately negotiated transactions at a purchase price per
share not to exceed $6.00, which purchases shall be consummated
contingent upon the Closing and the purchase price for which shall
be paid either on the Closing Date or within two Business Days
after the Closing (the “ Repurchases ”).
In addition, Holdings agrees that, upon execution and delivery of
the Stockholder’s Agreement, it will be deemed to have
consented to the consummation of the Repurchases as required under
Section 3.1(j) of the Stockholders’
Agreement.
3.
Amendment to Certain Definitions .
The definition of “Common
Stock Merger Consideration” in the Transaction Agreement is
hereby amended and restated in its entirety as follows:
“ Common Stock Merger
Consideration” means 24,323,614 shares of Parent Common
Stock; provided, however, that if, upon the issuance of such Parent
Common Stock at the Closing and taking into account (a) any
shares of Parent Common Stock converted into cash from the Trust
Account pursuant to Parent’s amended and restated certificate
of incorporation, (b) any shares of Parent Common Stock which
Parent agreed to repurchase contingent upon the Closing with the
consent of ED&F, (c) any shares forfeited or returned or
to be forfeited or returned to the Company for cancellation by
Parent Founder in connection with the Closing pursuant to an
agreement among the parties hereto and Parent Founder, dated as of
May 26, 2009, and (d) any shares of Parent Common Stock
owned by any ED&F Party immediately prior to the Closing, the
ED&F Parties and their Affiliates would beneficially own more
than 49.5% of the issued and outstanding shares of Parent Common
Stock, such number of shares of Parent Common Stock shall be
reduced to that number of shares that would result in the ED&F
Parties and their Affiliates upon the
Closing beneficially owning 49.5% of
the issued and outstanding shares of Parent Common Stock. For the
avoidance of doubt, for purposes of this definition,
“Affiliates” of the ED&F Parties shall not include
the Employee Trust or any Designated Employee.
4.
Certain Employees .
Pursuant to
Section 7.8(p) of the Transaction Agreement, ED&F is
required to take all actions necessary in accordance with all
applicable Law to provide that the employees listed in
Section 7.8(p) of the Disclosure Schedule cease to be
employees of any Transferred Companies prior to the Effective Time
(the “ Employee Transfer Requirement ”).
Notwithstanding Section 7.8(p) of the Transaction
Agreement, the Employee Transfer Requirement will be satisfied, and
ED&F will be deemed to have complied in all respects with the
Employee Transfer Requirement, with respect to the employees listed
in Annex A to this letter agreement (the “ Covered
Employees ”), so long as it takes all actions necessary
in accordance with all applicable Law to provide that the Covered
Employees cease to be employees of any Transferred Companies as
soon as practicable after ED&F’s new Canadian subsidiary
has in place the payroll and other services necessary to employ the
Covered Employees (which may be after the Effective
Time).
5.
Guarantee, Indemnity and Letter Agreement .
At the Closing, Parent shall execute
and deliver to ED&F (a) the guarantee in favor of Forth
Ports plc in the form attached as Annex B to this letter agreement,
(b) the deed of indemnity between ED&F and Parent in the
form attached as Annex C to this letter agreement, and (c) the
letter agreement between ED&F Man Treasury Management plc and
Westway Group, Inc. in the form attached as Annex D to this
letter agreement, and Parent’s execution and delivery of such
guarantee, deed of indemnity and letter agreement will be a
condition to the obligations of the ED&F Parties to consummate
the transactions contemplated by the Transaction
Agreement.
6.
Delivery of Certificates Representing Capital
Stock
Pursuant to
Section 4.2(a)(i) of the Transaction Agreement, ED&F
is required to deliver or cause to be delivered to Parent and the
Merger Subs certificates represen