Document:

Exhibit 10.2

 

SECOND AMENDMENT TO CREDIT AGREEMENT AND

FIRST AMENDMENT TO GUARANTEE AND COLLATERAL AGREEMENT

 

SECOND AMENDMENT TO CREDIT AGREEMENT AND FIRST AMENDMENT TO GUARANTEE AND COLLATERAL AGREEMENT (this “Agreement”), dated as of October 17, 2016, by and among (i) the undersigned Lenders, (ii) each Increasing Revolving Lender (as defined below), (iii) ENVIVA PARTNERS, LP, a Delaware limited partnership (the “Borrower”), (iv) CERTAIN SUBSIDIARIES OF THE BORROWER, as Guarantors and (v) BARCLAYS BANK PLC (“Barclays”), as Administrative Agent and Collateral Agent.

 

RECITALS

 

A.                                    WHEREAS, reference is hereby made to (i) the Credit Agreement, dated as of April 9, 2015 (as amended by that certain First Amendment to Credit Agreement dated as of August 21, 2015, the “Credit Agreement”; the terms defined therein and not otherwise defined herein being used herein as defined in the Credit Agreement as amended hereby), by and among the Borrower, the Lenders party thereto from time to time, Barclays, as Administrative Agent and as Collateral Agent, and the other Persons party thereto, and (ii) the Guarantee and Collateral Agreement dated as of April 9, 2015, by and among the Borrower, each other Loan Party party thereto and Barclays, as Collateral Agent (the “Guarantee and Collateral Agreement”);

 

B.                                    WHEREAS, the Borrower intends to issue Permitted Unsecured Debt in order (i) to finance the Permitted Drop-Down Acquisition of the Wood Pellet Production Facility owned by Enviva Pellets Sampson, LLC and located in Sampson County, North Carolina (the “Sampson Facility”, and the Permitted Drop-Down Acquisition of the Sampson Facility, the “Sampson Drop-Down”), (ii) to repay Tranche A-2 Term Loans and Tranche A-4 Term Loans and (iii) for other general corporate purposes of the Borrower and its Subsidiaries (such Permitted Unsecured Debt, the “Sampson Debt”);

 

C.                                    WHEREAS, the proceeds of the Sampson Debt will be placed in an escrow arrangement pending either (i) the consummation of the Sampson Drop-Down, among other conditions or (ii) in the event the Sampson Drop-Down is not consummated, to repay the Sampson Debt;

 

D.                                    WHEREAS, prior to the release from the Sampson Escrow Arrangement, the funds subject to the Sampson Escrow Arrangement will be subject to a Lien in favor of the holders of the Sampson Debt and their agents, trustees and other related parties to secure repayment of the Sampson Debt and other fees, interest and obligations related thereto;

 

E.                                     WHEREAS, upon consummation of the Sampson Drop-Down and the satisfaction of the other conditions referred to in Section 1(b) below, the Lenders listed on Exhibit A hereto (the “Increasing Revolving Lenders”) have agreed to provide Revolving Credit Commitments in the amounts set forth on Exhibit A hereto; and

 

 

F.                                      WHEREAS, the Borrower has requested certain amendments to the Credit Agreement in connection with the transactions described in the foregoing recitals and certain other amendments to the Credit Agreement and the Guarantee and Collateral Agreement as more fully set forth herein.

 

Accordingly, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows:

 

SECTION 1.                            Amendments to the Credit Agreement.  The Credit Agreement is hereby amended as follows.

 

(a)                                 Amendment to Section 1.01 of the Credit Agreement.  Section 1.01 of the Credit Agreement is hereby amended as follows:

 

(i)                                     by amending and restating the definition of “Defaulting Lenders” in its entirety to read as follows:

 

“Defaulting Lender” shall mean, subject to Section 2.22(b), any Lender that (a) has failed to (i) fund all or any portion of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, any Issuing Bank or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Swing Line Loans and Letters of Credit) within two (2) Business Days of the date when due, (b) has notified the Borrower, the Administrative Agent or any Issuing Bank in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance

 

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Corporation or any other state or federal regulatory authority acting in such a capacity, or (iii) become the subject of a Bail-in Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any Equity Interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.22(b)) upon delivery of written notice of such determination to the Borrower, each Issuing Bank and each Lender.

 

(ii)                                  by amending and restating the definition of “Eligible Assignee” in its entirety to read as follows:

 

“Eligible Assignee” shall mean any Person other than a natural Person or (other than in the case of and in accordance with Section 9.04(k) or (l)) the Borrower or any of its Affiliates that is (i) a Lender, an Affiliate of any Lender or an Approved Fund (any two or more related Approved Funds being treated as a single Eligible Assignee for all purposes hereof) or (ii) a commercial bank, insurance company, investment or mutual fund or other entity that is (x) an “accredited investor” (as defined in Regulation D under the Securities Act of 1933, as amended) and (y) other than in the case of the Borrower or any of its Affiliates, which extends credit or buys loans in the ordinary course of its business.

 

(iii)                               by amending and restating the definition of “Obligations” as follows:

 

“Obligations” shall mean all “Secured Obligations” or “Obligations” as defined in the Guarantee and Collateral Agreement and the other Security Documents.

 

(iv)                              by amending and restating the definition of “Permitted Unsecured Debt” in its entirety to read as follows:

 

“Permitted Unsecured Debt” shall mean Indebtedness that is unsecured (or secured solely by liens permitted by Section 6.02(y)) incurred solely by the Borrower (and which may be guaranteed by any Guarantor); provided, that (i) the Borrower shall be in Financial Covenant Compliance before and after giving effect to the incurrence of such Indebtedness, (ii) such unsecured Indebtedness shall not be guaranteed by any Person that is not a Guarantor hereunder, (iii) such Indebtedness shall not mature and no installments of principal shall be due and payable on such Indebtedness prior to the Latest Maturity Date at the time such Indebtedness is incurred (except to the extent the proceeds of such Indebtedness are subject to an escrow or similar arrangement for the benefit of the holders of

 

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such Indebtedness as described in Section 6.02(y) and such proceeds are released to such holders in accordance with the terms thereof), (iv) such Indebtedness shall have no financial maintenance covenants, (v) the definitive documentation for such Indebtedness shall not include other covenants, (excluding interest rate, original issue discounts, fees and prepayment premiums) taken as a whole, that are materially more onerous to the Borrower and the Guarantors than the covenants for the Credit Facilities provided for in this Agreement, taken as a whole (it being agreed that customary “high yield” style covenants for a company of this type shall not be considered materially more onerous to the Borrower and the Guarantors than the covenants for the Credit Facilities provided for in this Agreement, taken as a whole), and (vi) such Indebtedness shall have no mandatory prepayment or redemption provisions other than prepayments or redemptions (A) required as a result of a change in control or non-ordinary course asset sale or (B) from the proceeds of such Indebtedness that were subject to an escrow or similar arrangement for the benefit of the holders of such Indebtedness as described in Section 6.02(y) (it being understood that accrued interest and fees may be paid in connection with the mandatory prepayment or redemption of such Indebtedness).

 

(v)                                 by amending and restating clause (a) of the definition of “Qualifying Off-Take Counterparty” as follows:

 

(a) each Person identified by the Borrower to the Administrative Agent in writing and posted to the Lenders on the Second Amendment Effective Date (each, a “Qualifying Person”).

 

(vi)                              by amending and restating the definition of “Secured Parties” in its entirety to read as follows:

 

“Secured Parties” shall mean, collectively, the Agents, the Arrangers, the Issuing Banks, the Lenders, each Qualified Counterparty, each Cash Management Bank that is a party to any Secured Cash Management Agreement, and each Indemnitee.

 

(vii)                           by amending and restating the definition of “Total Debt” in its entirety to read as follows:

 

“Total Debt” shall mean, at any time, (a) the total consolidated Indebtedness (excluding (i) the Contributed Business Intercompany Notes, (ii) Indebtedness the proceeds of which have been deposited in a restricted account in favor of the holders thereof in a manner that does not violate this Agreement, to the extent such proceeds remain in such account and (iii) Indebtedness of the type described in clause (d), clause (f), clause (h), clause (i), clause (j), clause (k) and clause (l) of the definition of Indebtedness, except, (x) in the case of clause (k) and clause (l), to the extent of any unreimbursed drawings thereunder and (y) in the case of clause (f), to the extent constituting a Guarantee of Indebtedness of the type that

 

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would otherwise be included in “Total Debt”) of the Borrower and the Restricted Subsidiaries at such time; and minus (b) Unrestricted Cash.

 

(viii)                        by amending and restating clause (y) of the definition of “Unrestricted Cash” as follows:

 

(y) exclude in any event (i) any cash or Permitted Investments identified on such balance sheet as “restricted” (other than cash or Permitted Investments restricted in favor of the Secured Parties), (ii) any amount to the extent any use thereof for application to the payment for Indebtedness under the Loan Documents is restricted or prohibited by Law or contract, and (iii) any amounts referred to in clause (ii) of the definition of the term “Total Debt”.

 

(ix)                              by adding the following definitions in proper alphabetical sequence:

 

“Bail-In Action” shall mean the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation” shall mean, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“Cash Management Agreement” shall mean any agreement entered into from time to time by the Borrower or any of the Borrower’s Restricted Subsidiaries in connection with cash management services for collections, other Cash Management Services and for operating, payroll and trust accounts of such Person, including automatic clearing house services, controlled disbursement services, electronic funds transfer services, lockbox services, stop payment services and wire transfer services.

 

“Cash Management Bank” shall mean any Person that either (a) at the time it provides Cash Management Services, (b) on the Closing Date or (c) at any time after it has provided any Cash Management Services, is a Lender or an Agent or an Affiliate of a Lender or an Agent.

 

“Cash Management Obligations” shall mean obligations owed by the Borrower or any Restricted Subsidiary to any Cash Management Bank in connection with, or in respect of, any Cash Management Services.

 

“Cash Management Services” shall mean (a) commercial credit cards, merchant card services, purchase or debit cards, including non-card e-payables services, (b) treasury management services (including controlled disbursement, overdraft, automated clearing house fund transfer services, return items and interstate depository network services) and (c) any other demand deposit or operating

 

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account relationships or other cash management services, including any Cash Management Agreement.

 

“EEA Financial Institution” shall mean (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent;

 

“EEA Member Country” shall mean any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution Authority” shall mean any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“EU Bail-In Legislation Schedule” shall mean the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

 

“Sampson Debt” shall mean any Permitted Unsecured Debt incurred by the Borrower in order (i) to finance the Sampson Drop-Down, (ii) to repay Tranche A-2 Term Loans and Tranche A-4 Term Loans and (iii) for other general corporate purposes of the Borrower and its Subsidiaries.

 

“Sampson Drop-Down” shall mean the Permitted Drop-Down Acquisition of the Sampson Facility.

 

“Sampson Escrow Arrangement” shall mean an arrangement pursuant to an escrow and security agreement by which the proceeds of the Sampson Debt, after payment of the initial purchasers’ discount, but before any other expenses,  and certain pre-funded interest are held in escrow as collateral security for the Sampson Debt pending consummation of the Sampson Drop-Down, among other conditions, or, in the event the Sampson Drop-Down is not consummated, the proceeds of which will be used to repay the Sampson Debt.

 

“Sampson Facility” shall mean the Wood Pellet Production Facility owned by Enviva Pellets Sampson, LLC and located in Sampson County, North Carolina.

 

“Second Amendment Effective Date” shall mean the Effective Date (as defined therein) of the Second Amendment to Credit Agreement, dated as of October 17, 2016.

 

“Secured Cash Management Agreement” shall mean any agreement related to Cash Management Services by and between the Borrower or any of its Restricted

 

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Subsidiaries and any Cash Management Bank which the Borrower has notified the Administrative Agent is intended to be secured by the Collateral.

 

“Write-Down and Conversion Powers” shall mean, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

(b)                                 Amendment to Schedules to the Credit Agreement and Increase in Revolving Credit Commitments.

 

(i)                                     Notwithstanding anything to the contrary set forth herein or in the Credit Agreement, no Borrowings in respect of the Revolving Credit Commitments set forth on Exhibit A shall be available to the Borrower under the Credit Agreement or the Amended Credit Agreement (as defined below), until the following conditions are satisfied (the date of satisfaction of such conditions, the “Increase Effective Date”):

 

(A)                               the Sampson Drop-Down shall have been consummated;

 

(B)                               all outstanding Tranche A-2 Term Loans and Tranche A-4 Term Loans shall have been prepaid pursuant to Section 2.13A of the Amended Credit Agreement;

 

(C)                               the Administrative Agent shall have received, on behalf of itself, the Collateral Agent, the Issuing Banks and the Lenders (including the Increasing Revolving Lenders), the favorable written opinion of Vinson & Elkins LLP, counsel for the Loan Parties, in form and substance reasonably satisfactory to the Administrative Agent, dated the Increase Effective Date and addressed to the Administrative Agent, the Collateral Agent, the Issuing Banks and the Lenders; and

 

(D)                               the Collateral Agent shall have received from the applicable Loan Parties, with respect to each Mortgaged Property specified on Exhibit B attached hereto, the documents and instruments specified therein.

 

(ii)                                  On the Increase Effective Date, Schedule 2.01 to the Credit Agreement shall be replaced in its entirety with  Exhibit A attached hereto, whereupon (x) the Total Revolving Credit Commitments shall be increased from $25,000,000 to $100,000,000 as set forth on such Exhibit A, (y) each of the Revolving Credit Lenders immediately prior to giving effect to the increase referred to in such clause (x) (each such Revolving Credit Lender, an “Existing RC Lender”) shall assign to each Revolving Credit Lender set forth on such Exhibit A that was not, immediately prior to giving effect to such increase, a Revolving Credit Lender (each such Revolving Credit Lender, a “New RC Lender”), and each New RC Lender shall purchase from each of the Existing RC Lenders, at the principal amount thereof, such interests in the outstanding Revolving Loans and

 

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participations in Letters of Credit and Swing Line Loans outstanding on such date that will result in, after giving effect to all such assignments and purchases, such Revolving Loans and participations in Letters of Credit and Swing Line Loans being held by Existing RC Lenders and New RC Lenders ratably in accordance with their Revolving Credit Commitments after giving effect to the increase in Revolving Credit Commitments set forth on such Exhibit A and (z) each Revolving Credit Commitment set forth on such Exhibit A shall be deemed for all purposes a Revolving Credit Commitment under the Amended Credit Agreement (as defined in Section 6 of this Agreement), each Loan made thereunder shall be deemed, for all purposes, a Revolving Loan under the Amended Credit Agreement and shall have the same terms as any existing Revolving Loan and each New RC Lender shall become a Lender with respect to the Revolving Credit Commitments and all matters relating thereto under the Amended Credit Agreement, in each case without any further action on the part of any party.

 

(iii)                               Notwithstanding anything in this Agreement to the contrary, the increase in Revolving Credit Commitments set forth on Exhibit A shall be reduced to zero if the Increase Effective Date has not occurred on or before January 31, 2017.

 

(c)                                  Addition of Section 2.13A to the Credit Agreement.  The Credit Agreement is hereby amended to add the following Section 2.13A:

 

SECTION 2.13A.  Special Mandatory Prepayment.  Not later than the first Business Day following the consummation of the Sampson Drop-Down, the Borrower shall prepay all outstanding Tranche A-2 Term Loans and Tranche A-4 Term Loans. Mandatory prepayments made pursuant to this Section 2.13A shall be applied without premium or penalty, other than as may be payable pursuant to Section 2.16.

 

(d)                                 Amendment to Section 6.01 of the Credit Agreement.  The Credit Agreement is hereby amended to add the following new clause (q) to Section 6.01 and to re-letter the existing clause (q) as clause “(r)”:

 

(q)                                 Cash Management Obligations and other Indebtedness in respect of netting services, automatic clearing house arrangements, employees’ credit or purchase cards, overdraft protections and similar arrangements in each case incurred in the ordinary course of business; and

 

(e)                                  Amendment to Section 6.02 of the Credit Agreement.  The Credit Agreement is hereby amended to add the following new clause (y) to Section 6.02 and to re-letter the existing clause (y) as clause “(z)”:

 

(y)                                 Liens in favor of providers of Indebtedness on the escrowed proceeds of such Indebtedness that are subject to an escrow or similar arrangement and Liens on cash deposited in an account along with such escrowed proceeds to pre-fund the payment of interest in respect of such Indebtedness during the applicable escrow period; and

 

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(f)                                   Amendment to Section 6.09(b) of the Credit Agreement.  The Credit Agreement is hereby amended to add the following clause (u) directly before clause (v) in Section 6.09(b):

 

(u)                                 made from the proceeds of such Indebtedness that are subject to an escrow or similar arrangement and any accrued pre-funded interest or similar arrangement as described in Section 6.02(y),

 

(g)                                  Amendment to Section 2.22(a)(iv) of the Credit Agreement.  Section 2.22(a)(iv) of the Credit Agreement is hereby amended in its entirety to read as follows:

 

SECTION 2.22(a)(iv).  Reallocation of Participations to Reduce Fronting Exposure. So long as no Event of Default shall have occurred and be continuing, all or any part of such Defaulting Lender’s obligation to fund participations in respect of Swing Line Loans and Letters of Credit shall be reallocated among the Revolving Credit Lenders that are Non-Defaulting Lenders in accordance with their respective Pro Rata Percentages (calculated without regard to such Defaulting Lender’s Commitment) but only to the extent that such reallocation does not cause the aggregate Revolving Credit Exposure of any such Non-Defaulting Lender to exceed such Non- Defaulting Lender’s Revolving Credit Commitment. Subject to Section 2.28, no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender’s increased exposure following such reallocation.

 

(h)                                 Addition of Section 2.28 to the Credit Agreement.  The Credit Agreement is hereby amended to add the following Section 2.28:

 

SECTION 2.28.  Acknowledgment and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any of the parties hereto, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)                                 the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)                                 the effects of any Bail-in Action on any such liability, including, if applicable:

 

i.                  a reduction in full or in part or cancellation of any such liability;

 

ii.               a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent company, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any

 

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                        rights with respect to any such liability under this Agreement or any other Loan Document; or

 

iii.            the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

SECTION 2.                            Amendment to Guarantee and Collateral Agreement. The Guarantee and Collateral Agreement is hereby amended by amending and restating the definition of “Obligations” in Section 1.1 in its entirety to read as follows:

 

“Obligations” shall mean all amounts owing to any Secured Party by the Borrower or any other Loan Party pursuant to the terms of the Credit Agreement or any other Loan Document, or pursuant to the terms of any Secured Hedging Agreement or Secured Cash Management Agreement, or pursuant to the terms of any Guarantee thereof, together with the due and punctual performance of all other obligations of the Borrower and the other Loan Parties to any Secured Party under or pursuant to the terms of the Credit Agreement, the other Loan Documents, any Secured Hedging Agreement, any Secured Cash Management Agreement or any other agreement or document entered into by any Loan Party in connection herewith or therewith, in each case whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and whether on account of principal, interest, fees, indemnities, costs, expenses (including all fees, charges and disbursements of counsel to the Arrangers, any Agent, any Issuing Bank, the Swing Line Lender or any Lender that are required to be paid by the Borrower or any other Loan Party pursuant to the Credit Agreement or any other Loan Document) or otherwise, and including interest accruing after the maturity of the Loan and interest and fees that accrue after the commencement of any Insolvency or Liquidation Proceeding with respect to any Loan Party, whether or not such interest and fees would be allowed in such Insolvency or Liquidation Proceeding.

 

SECTION 3.                            Representations and Warranties.  The Borrower hereby represents and warrants to each Lender, each Increasing Revolving Lender and the Administrative Agent that the following statements are true and correct in all respects:

 

(a)                                 the representations and warranties set forth in Article III of the Credit Agreement are true and correct in all material respects on and as of the date hereof to the same extent as if made on and as of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date; provided that to the extent any such representation and warranty is already qualified by materiality or Material Adverse Effect, such representation and warranty shall be true and correct in all respects;

 

(b)                                 each Loan Party has the requisite power and authority to execute and deliver this Agreement and to perform its obligations under this Agreement and each Loan Document, as amended hereby.  The execution and delivery of this Agreement and the performance by each Loan Party of this Agreement and each Loan Document (as amended hereby) to which it is a

 

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party have been duly approved by all necessary organizational action of each such Loan Party; and

 

(c)                                  this Agreement has been duly executed and delivered by each Loan Party that is a party hereto and this Agreement is the legally valid and binding obligation of each such Loan Party, enforceable against such Loan Party in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws relating to or limiting creditors’ rights generally or by general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

SECTION 4.                            Reaffirmations.

 

(a)                                 Each Loan Party, subject to the terms and limits contained in the Credit Agreement and in the Security Documents, reaffirms its guaranty of the Obligations pursuant to the Guarantee and Collateral Agreement.  Each Loan Party hereby acknowledges that it has reviewed the terms and provisions of this Agreement and consents to the amendment of the Credit Agreement and the Guarantee and Collateral Agreement effected pursuant to this Agreement.  Each Loan Party hereby confirms that each Loan Document to which it is a party or is otherwise bound will continue to be in full force and effect as amended by this Agreement and all of its obligations thereunder shall not be impaired or limited by the execution or effectiveness of this Agreement.

 

(b)                                 Each Loan Party hereby (i) confirms that each Loan Document to which it is a party or is otherwise bound and all Collateral encumbered thereby will continue to secure to the fullest extent possible in accordance with the Loan Documents, the payment and performance of the Obligations, as the case may be, (ii) confirms its respective grant to the Collateral Agent for the benefit of the Secured Parties of the security interest in and continuing Lien on all of such Loan Party’s right, title and interest in, to and under all Collateral, in each case whether now owned or existing or hereafter acquired or arising and wherever located, as collateral security for the prompt and complete payment and performance in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise, of all applicable Obligations (including all such Obligations as amended, reaffirmed and/or increased pursuant to the Amended Credit Agreement (as defined below)), subject to the terms contained in the applicable Loan Documents and (iii) confirms its other pledges, other grants of security interests and other obligations, as applicable, under and subject to the terms of each Loan Document to which it is a party.

 

SECTION 5.                            Conditions to Effectiveness of this Agreement.  The effectiveness of the Agreement shall be subject to the following conditions precedent (the date on which such conditions have been satisfied (or waived) is referred to herein as the “Effective Date”):

 

(a)                                 The Administrative Agent shall have received duly executed counterparts of this Agreement from the Borrower, each other Loan Party, the Collateral Agent, Lenders constituting the Required Lenders and each Increasing Revolving Lender, each of which shall be originals or facsimiles or “.pdf” files (followed promptly by originals) unless otherwise specified.

 

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(b)                                 The representations and warranties set forth in Section 3 of this Agreement shall be true and correct.

 

(c)                                  No Default or Event of Default shall exist, or would result from the execution and delivery of this Agreement.

 

SECTION 6.                            Effect of the Amendment.  On and after the Effective Date, each reference to the Credit Agreement and the Guarantee and Collateral Agreement in any Loan Document shall be deemed to be a reference to the Credit Agreement and the Guarantee and Collateral Agreement as amended by this Agreement (as so amended, the “Amended Credit Agreement” or the “Amended Guarantee and Collateral Agreement”). Except as expressly provided in this Agreement, nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement, the Guarantee and Collateral Agreement or any other Loan Document in similar or different circumstances. On and after the Effective Date, (i) this Agreement shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents, (ii) the terms “Agreement”, “this Agreement”, “herein”, “hereinafter”, “hereto”, “hereof”, and words of similar import, as used in the Credit Agreement shall, unless the context otherwise requires, mean the Amended Credit Agreement and (iii) the terms “Agreement”, “this Agreement”, “herein”, “hereinafter”, “hereto”, “hereof”, and words of similar import, as used in the Guarantee and Collateral Agreement shall, unless the context otherwise requires, mean the Amended Guarantee and Collateral Agreement. Each Loan Party hereby ratifies and confirms that, except as specifically amended by this Agreement, the Credit Agreement, the Guarantee and Collateral Agreement and the other Loan Documents shall remain in full force and effect.

 

SECTION 7.                            Counterparts.  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same contract. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other customary means of electronic transmission (e.g., “.pdf”) shall be as effective as delivery of a manually executed counterpart hereof.

 

SECTION 8.                            Applicable Law.  THIS AGREEMENT AND ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

 

SECTION 9.                            Miscellaneous.  The provisions of Sections 9.11 and 9.15 of the Credit Agreement are incorporated by reference herein and made a part hereof.

 

SECTION 10.                     Headings.  The headings of this Agreement are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

 

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IN WITNESS WHEREOF, the undersigned has caused this Agreement to be duly executed by its duly authorized officers, all as of the date first above written.

 

ENVIVA PARTNERS, LP, as Borrower

By: Enviva Partners GP, LLC, its general partner

 

	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Enviva Partners, LP — Signature Page to the Second Amendment]

 

 

 

 

	
 
    	
GUARANTORS:
    
	
 
    	
 
    
	
 
    	
ENVIVA   GP, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA,   LP
    
	
 
    	
By:
    	
Enviva   GP, LLC, as its sole general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA   MATERIALS, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA   PELLETS AHOSKIE, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA   PELLETS AMORY, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Enviva Partners, LP — Signature Page to the Second Amendment]

 

 

	
 
    	
ENVIVA   PELLETS NORTHAMPTON, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA   PELLETS PERKINSTON, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA   PORT OF CHESAPEAKE, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ENVIVA   PELLETS COTTONDALE, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
				

 

[Enviva Partners, LP — Signature Page to the Second Amendment]

 

 

IN WITNESS WHEREOF, the undersigned has caused this Agreement to be duly executed by its duly authorized officers, all as of the date first above written.

 

	
 
    	
BARCLAYS   BANK PLC, as Administrative Agent, Collateral Agent and a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Enviva Partners, LP — Signature Page to the Second Amendment]

 

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
as   a Lender,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
				

 

[Enviva Partners, LP — Signature Page to the Second Amendment]

 

 

EXHIBIT A TO SECOND AMENDMENT

 

Revolving Credit Commitments

 

	
Lenders
    	
 
    	
Commitment ($)
    	
 
    	
Commitment (%)
    	
 
    
	
Barclays Bank   PLC
    	
 
    	
$
    	
20,000,000
    	
 
    	
20.00
    	
%
    
	
Goldman Sachs   Bank USA
    	
 
    	
$
    	
20,000,000
    	
 
    	
20.00
    	
%
    
	
Royal Bank of   Canada
    	
 
    	
$
    	
20,000,000
    	
 
    	
20.00
    	
%
    
	
Citibank, N.A.
    	
 
    	
$
    	
20,000,000
    	
 
    	
20.00
    	
%
    
	
JPMorgan Chase   Bank, N.A.
    	
 
    	
$
    	
20,000,000
    	
 
    	
20.00
    	
%
    
	
Total:
    	
 
    	
$
    	
100,000,000
    	
 
    	
100.00
    	
%
    

 

[Enviva Partners, LP — Signature Page to the Second Amendment]EX-10.1

 Exhibit 10.1 

Execution Version 

DISTRIBUTION SUPPORT AND 

EXPENSE REIMBURSEMENT AGREEMENT 

BY AND AMONG 
 AMERICAN
MIDSTREAM PARTNERS, LP, 
 AMERICAN MIDSTREAM GP, LLC, 

AND 
 MAGNOLIA
INFRASTRUCTURE HOLDINGS, LLC 
 DATED AS OF OCTOBER 23, 2016 

 DISTRIBUTION SUPPORT AND 

EXPENSE REIMBURSEMENT AGREEMENT 

DISTRIBUTION SUPPORT AND EXPENSE REIMBURSEMENT AGREEMENT, dated as of October 23, 2016 (this “Agreement”), by
and among AMERICAN MIDSTREAM PARTNERS, LP, a Delaware limited partnership (“AMID”), AMERICAN MIDSTREAM GP, LLC, a Delaware limited liability company and the general partner of AMID (“AMID
GP”), and MAGNOLIA INFRASTRUCTURE HOLDINGS, LLC, a Delaware limited liability company (“Magnolia” or the “Supporting Party”). 

W I T N E S S E T H: 

WHEREAS, this Agreement is being entered into concurrently with the execution of the Agreement and Plan of Merger, dated as of the date
hereof (as amended, supplemented, restated or otherwise modified from time to time, the “Merger Agreement”) by and among AMID, AMID GP, Argo Merger Sub, LLC, a Delaware limited liability company, Argo Merger GP Sub, LLC, a
Delaware limited liability company, JP Energy Partners LP, a Delaware limited partnership (“JPE”), JP Energy GP II LLC, a Delaware limited liability company (“JPE GP”), pursuant to which, among other
things, upon consummation of the merger (the “LP Merger”) JPE shall continue its existence as the surviving entity and as a wholly-owned subsidiary of AMID, each outstanding common unit representing common limited partner
interests of JPE (the “Common Units”) (other than Common Units held by Lonestar Midstream Holdings LLC (“Lonestar”) and JP Energy Development, LP (“JPE Development”) and their
Affiliates) will be converted into the right to receive 0.5775 common units of AMID (the “AMID Common Units”), and each outstanding Common Unit, and each outstanding subordinated unit representing subordinated limited partner
interests of JPE (the “Subordinated Units”), held by Lonestar, JPE Development and their Affiliates will be converted into the right to receive 0.5225 AMID Common Units (“Affiliate Exchange Ratio”),
all on the terms specified therein; and 
 WHEREAS, the Merger Agreement contemplates that as a condition to and concurrently with
the closing of the Merger this Agreement will be entered into by the parties hereto; and 
 WHEREAS, concurrently with the
execution of the Merger Agreement, AMID GP, Argo GP Sub, LLC, a Delaware limited liability company and a wholly-owned subsidiary of AMID GP (“AMID Merger GP Sub”), and JPE GP are entering into an Agreement and Plan of Merger
(as amended, supplemented, restated or otherwise modified from time to time, the “GP Merger Agreement”), pursuant to which, among other things, JPE GP will be merged with AMID Merger GP Sub (such merger, the “GP
Merger”); 
 NOW THEREFORE, in consideration of the foregoing and the mutual representations, warranties, covenants and
agreements herein contained, and intending to be legally bound hereby, the parties hereto agree as follows: 
 ARTICLE I 

GENERAL 

1.1.    Defined Terms. The following capitalized terms, as used in this Agreement, shall have
the meanings set forth below. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed thereto in the Merger Agreement. 

“Affiliate” shall have the meaning assigned to such term in the Merger Agreement. 

  
 PAGE 1

 “AMID Partnership Agreement” means the Fifth Amended and Restated
Agreement of Limited Partnership of American Midstream Partners, LP, as amended or supplemented from time to time. 
 “AMID
Units” means any Common Units, Series A-1 Convertible Preferred Units, Series A-2 Convertible Preferred Units or Series C Preferred Units that the Supporting Party or any of its Subsidiaries owns or acquires of record on or after the
date hereof. 
 “Cap” shall have the meaning set forth in Section 2.1. 

“Common Units” shall have the meaning assigned to such term in the AMID Partnership Agreement. 

“Conflicts Committee” shall have the meaning assigned to such term in the AMID Partnership Agreement. 

“DCF Credits” shall have the meaning set forth in Section 2.1(b). 

“DCF Difference” shall have the meaning set forth in Section 2.1(b). 

“LP DCF per Unit” shall have the meaning set forth in Exhibit A. 

“DCF per Unit Difference” shall have the meaning set forth in Section 2.1(b). 

“Delaware Courts” shall have the meaning set forth in Section 6.5. 

“Effective Time” shall have the meaning assigned to such term in the Merger Agreement. 

“Encumbrances” shall mean any and title defects, charges, liens, mortgages, pledges, claims, security interests,
options, restrictions, and other encumbrances of every type and description, whether imposed by law, agreement, understanding or otherwise, other than those imposed under applicable securities laws. 

“Notice” has the meaning set forth in Section 6.2. 

“Orders” shall have the meaning set forth in Section 3.1(d). 

“Series A-1 Convertible Preferred Units” shall have the meaning assigned to such term in the AMID Partnership
Agreement. 
 “Series A-2 Convertible Preferred Units” shall have the meaning assigned to such term in the AMID
Partnership Agreement. 
 “Series C Preferred Unit” shall have the meaning assigned to such term in the AMID
Partnership Agreement. 
 “Shortfall Amount” shall have the meaning set forth in Section 2.1(b). 

“Support DCF” shall mean the meaning set forth in Exhibit A. 

“Support DCF per Unit” shall mean the meaning set forth in Exhibit A. 

“Support Period” shall have the meaning set forth in Section 2.1(a). 

  
 PAGE 2

 “Target DCF per Unit” shall have the meaning set forth in Section
2.1. 
 “Termination Date” shall have the meaning set forth in Section 5.2. 

“Transition Period” shall have the meaning set forth in Section 2.2(b). 

ARTICLE II 
 ACTIONS IN
CONNECTION WITH THE MERGER AGREEMENT 
 2.1.    Distribution Financial Support to AMID. 

(a)    The Supporting Party hereby acknowledges and agrees, that if the LP Merger is consummated, to
provide financial support to AMID, as necessary, commencing with (i) the regular quarterly distribution for the quarter ending March 31, 2017 or (ii) if the Effective Time occurs after such time that the quarterly distribution for the quarter ending
March 31, 2017 is determined or paid, the quarterly distribution for the quarter immediately following the Effective Time, (such distribution date, the “Commencement Date”), and ending with the regular quarterly distribution
for the 8th quarter following the Commencement Date, in an aggregate amount not to exceed $25.0 million (the “Cap”), such that, subject to the Cap and the provisions of Section 2.1(b), AMID will have LP DCF per Unit
(as defined in Exhibit A) during the eight (8) consecutive quarters following the Commencement Date (the “Support Period”) equal to the amounts set forth on Exhibit A (each, a “Target DCF per
Unit”). 
 (b)    As soon as practicable, and in any event within 20 days, following the
completion of each calendar quarter during the Support Period, AMID shall determine the LP DCF per Unit for such quarter, the Support DCF Per Unit, and the difference, if any (such difference, the “DCF per Unit Difference”),
of (i) the Target DCF per Unit for such quarter set forth in Exhibit A less (ii) the LP DCF per Unit in respect of such quarter. The DCF per Unit Difference shall be multiplied by the number of Units outstanding, as such number of Units
is determined pursuant to Exhibit A, as of the end of such quarter (such product, the “DCF Difference”). For any quarter in which the DCF Difference is negative, such negative amount(s) shall be reserved for use
as credits against support obligations of the Supporting Party for future quarters during the Support Period (such unused credits, the “DCF Credits”). For any quarter in which the DCF Difference less any previously unused DCF
Credits is positive, subject to the Cap, the Supporting Party shall provide support sufficient to eliminate such shortfall (the amount of such shortfall, the “Shortfall Amount”). Not later than 30 days after the end of
each calendar quarter of the Support Period, AMID shall provide notice in writing to the Supporting Party of the LP DCF per Unit and the Shortfall Amount, if any, or DCF Credits, if any, for such calendar quarter, together with supporting financial
information. No later than two (2) business days before the day on which the quarterly financial statements of AMID are to be filed with the Securities and Exchange Commission for the applicable calendar quarter of the Support Period, the
Supporting Party shall provide the Shortfall Amount, subject to the Cap and any DCF Credits, pursuant to the terms agreed to by the Supporting Party and AMID GP. In connection with providing financial support for any Shortfall Amount, the
Supporting Party and AMID GP will agree to any amendment to the AMID Partnership Agreement that may be necessary or appropriate to document the form of the financial support mutually agreed to by the Supporting Party and AMID
GP.     

  
 PAGE 3

 (c)    The Supporting Party’s obligations under this Section 2.1
shall terminate upon the first of the following to occur: 
 (i)    The termination of the Merger
Agreement; 
 (ii)    aggregate support payments by the Supporting Party equal the Cap; or 

(iii)    payment of the Shortfall Amount, if applicable, for the quarter ending eight (8) consecutive
quarters following the Commencement Date, or if there is no Shortfall Amount for such annual period then at the time notice of such determination is furnished by AMID to the Supporting Party. 

(d)    The parties hereto acknowledge and agree that the financial support set forth in Section 2.1,
Section 2.2, and Section 2.3 forms part of the consideration of the transactions contemplated by the Merger Agreement and this Agreement. The financial support provided by the Supporting Party shall not constitute indebtedness or
otherwise create any obligation for AMID to repay the financial support, or for AMID to issue any equity or other securities to the Supporting Party or its Affiliates in consideration thereof. 

2.2.    Expense Reimbursement. 

(a)    Magnolia agrees that from and after the Effective Time it will, without duplication of amounts
reimbursed to JPE and JPE GP pursuant to that certain Expense Reimbursement Agreement, dated October 23, 2016, by and among Lonestar Midstream Holdings, LLC, a Delaware limited liability company, JPE, and JPE GP, reimburse, or will pay directly
on behalf of, JPE and JPE GP the third party reasonable costs and expense incurred by JPE and JPE GP in connection with the Merger, including but, without limitation, all reasonable legal, accountant, and financial advisory fees, regulatory expenses
and other similar third party costs and expenses incurred in connection with the negotiation, execution and performance of the Merger Agreement and consummation of the Merger. 

(b)    In addition, the Supporting Party shall bear AMID’s and AMID GP’s reasonable costs and
expenses relating directly to the integration of JPE and JPE GP incurred during the period commencing at the Effective Time and ending on the one (1) year anniversary of the Effective Time (the “Transition Period”),
including, without limitation, severance and training costs, the net amount of any termination costs for offices and services, IT transition costs, relocation expenses and any incremental expenses incurred by AMID or AMID GP during such transition
period that are temporarily duplicative of expenses incurred at JPE or JPE GP during such period (such as the incremental costs incurred by AMID associated with running parallel corporate functions in conjunction with an office move). At the end of
each fiscal quarter during the Transition Period, AMID shall prepare and deliver to the Supporting Party an invoice containing the amounts and descriptions of all expenses for which reimbursement is sought under this Section 2.2(b), which
shall be payable within thirty (30) days of receipt. The Supporting Party shall have the right to request additional documentation in support of any costs or expenses included in any such invoice. The obligations of the Supporting Party under
this Section 2.2(b) shall terminate concurrently with payment of AMID’s final invoice for expenses incurred during the Transition Period. 

2.3.    Mutually Agreed Satisfaction of Supporting Party’s Obligations. Notwithstanding
anything to the contrary set forth in Section 2.1 and Section 2.2, AMID (subject to prior approval by the Conflicts Committee) and the Supporting Party may make a determination that the Supporting Party has satisfied the requirements
of Section 2.1, Section 2.2 or Section 2.3 by such other methods as AMID and the Supporting Party determine to be appropriate. 

  
 PAGE 4

 2.4.    Extinguishment of JPE GP Debt. Prior to the
Effective Time, the Supporting Party or its Affiliates shall take such action as shall be necessary or appropriate to eliminate (by payment in full, cancellation or otherwise) all outstanding indebtedness of JPE GP to the Supporting Party or any of
its Affiliates, and after giving effect to such elimination there shall be no further liability (including any tax liability arising from such elimination) or obligation of JPE GP (or its successors, including AMID Merger Sub GP or AMID GP following
consummation of the GP Merger) as a result of such elimination. The Supporting Party shall make available to AMID GP, upon its reasonable request, any and all supporting documentation in connection with its or its Affiliates performance of the
obligations set forth in this Section 2.4. 
 ARTICLE III 

REPRESENTATIONS AND WARRANTIES 

3.1.    Representations and Warranties of the Supporting Parties. The Supporting Party (except
to the extent otherwise provided herein) hereby represents and warrants to AMID as follows: 

(a)    Good Standing. The Supporting Party is a limited liability company duly formed,
validly existing and in good standing under the laws of the jurisdiction of its organization. 

(b)    Organization; Authorization; Validity of Agreement; Necessary Action. The
Supporting Party has the requisite power and authority and/or capacity to execute and deliver this Agreement, to carry out its obligations hereunder and to consummate the transactions contemplated hereby. The execution and delivery by the
Supporting Party of this Agreement, the performance by it of the obligations hereunder and the consummation of the transactions contemplated hereby have been duly and validly authorized by the Supporting Party and no other actions or proceedings on
the part of the Supporting Party to authorize the execution and delivery of this Agreement, the performance by it of the obligations hereunder or the consummation of the transactions contemplated hereby are required. This Agreement has been
duly executed and delivered by the Supporting Party and, assuming the due authorization, execution and delivery of this Agreement by the other parties hereto, constitutes a legal, valid and binding agreement of the Supporting Party, enforceable
against it in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equitable
principles. 
 (c)    No Violation. Neither the execution and delivery of this
Agreement by the Supporting Party nor the performance by it of its obligations under this Agreement will (i) result in a violation or breach of or conflict with any provisions of, or constitute a default (or an event which, with notice or lapse
of time or both, would constitute a default) under, or result in the termination, cancellation of, or give rise to a right of purchase under, or accelerate the performance required by, or result in a right of termination or acceleration under, or
result in the creation of any Lien upon any of the properties, rights or assets, including any AMID Units, owned by Supporting Party, or result in being declared void, voidable, or without further binding effect, or otherwise result in a detriment
to it under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, deed of trust, license, contract, lease, agreement or other instrument or obligation of any kind to which the Supporting Party is a party or by which it
or any of its respective properties, rights or assets may be bound, (ii) violate any judgments, decrees, injunctions, rulings, awards, settlements, stipulations or orders (collectively, “Orders”) or laws applicable to
the Supporting Party or any of its properties, rights or assets or (iii) result in a violation or breach of or conflict with its organizational and governing documents. 

  
 PAGE 5

 (d)    Consents and Approvals. No consent,
approval, Order or authorization of, or registration, declaration or filing with, any governmental authority is necessary to be obtained or made by the Supporting Party in connection with the Supporting Party’s execution, delivery and
performance of this Agreement or the consummation by Supporting Party of the transactions contemplated hereby, except for any requirements under the Exchange Act in connection with this Agreement and the transactions contemplated hereby. 

(e)    Reliance by AMID. The Supporting Party understands and acknowledges that, if the
LP Merger is consummated, AMID will be proceeding with the closing of the Merger in part in reliance upon the execution and delivery of this Agreement and the representations, warranties, covenants and obligations of Supporting Party contained
herein. 
 3.2.    Representations and Warranties of AMID. AMID hereby represents and warrants
to the Supporting Party that (a) it is a limited partnership duly formed, validly existing and in good standing under the laws of the State of Delaware and (b) the execution and delivery of this Agreement by AMID and the consummation of
the transactions contemplated hereby, have been duly authorized by all necessary action on the part of AMID GP in its capacity as general partner of AMID. 

ARTICLE IV 
 OTHER
COVENANTS 
 4.1.    Further Assurances. From time to time, (a) upon AMID’s request
and without further consideration, the Supporting Party shall execute and deliver, or cause its Subsidiaries to execute and deliver, such additional documents and take all such further action as may be reasonably necessary or advisable to effect the
actions and consummate the transactions contemplated by this Agreement, and (b) upon the Supporting Party’s request and without further consideration, the AMID or AMID GP shall execute and deliver, or cause its Subsidiaries to execute and
deliver, such additional documents and take all such further action as may be reasonably necessary or advisable to effect the actions and consummate the transactions contemplated by this Agreement. 

ARTICLE V 

CONDITIONALITY AND TERMINATION 

5.1.    Conditions to Each Party’s Obligations under this Agreement. Except
for the consummation of the Merger, no other conditions precede the respective obligations of each party hereto. 

5.2.    Termination. The obligations of the Supporting Party under ARTICLE II and
Section 4.1 of this Agreement shall remain in effect until the earliest to occur of (a) the performance in full by the Supporting Party of their obligations under the Agreement, and (b) the termination of the
Merger Agreement in accordance with Section 7.1 of the Merger Agreement (such earliest date being referred to herein as the “Termination Date”). After the occurrence of such applicable event, the provisions of this Agreement
shall terminate and be of no further force or effect; provided that nothing in this Section 5.2 shall relieve or otherwise limit any party of liability for any breach of this Agreement occurring prior to such Termination
Date. Upon termination of this Agreement, no party shall have any further obligations or liabilities under this Agreement. 

  
 PAGE 6

 ARTICLE VI 

MISCELLANEOUS 

6.1.    Publicity. The Supporting Party hereby permits AMID to include and disclose in the
Registration Statement and in such other schedules, certificates, applications, agreements or documents as such entities reasonably determine to be necessary or appropriate in connection with the consummation of the Merger and the transactions
contemplated by the Merger Agreement the Supporting Party’s identity and ownership of the AMID Units and the nature of Supporting Party’s commitments, arrangements and understandings pursuant to this Agreement. 

6.2.    Notices. Any notice, request, instruction, correspondence or other document to be given
hereunder by any party to another party (each, a “Notice”) shall be in writing and delivered in person or by courier service requiring acknowledgment of receipt of delivery or mailed by U.S. registered or certified mail,
postage prepaid and return receipt requested, or by email, as follows; provided that copies to be delivered below shall not be required for effective notice and shall not constitute notice: 

If to AMID or AMID GP, to: 

American Midstream Partners, LP 

2103 CityWest Blvd. 
 Houston,
Texas 77002 
 Attention: General Counsel 

Email: rgregory@americanmidstream.com 

With a copy to: 
 Locke
Lord LLP 
 600 Travis Street, Suite 2800 

Houston, Texas 77002 

Attention: Gregory C. Hill 

Facsimile: (713) 223-3717 

Email: ghill@lockelord.com 

If to the Supporting Party, to: 

c/o ArcLight Capital Partners, LLC 

200 Clarendon Street, 55th Floor 

Boston, Massachusetts 02117 

Attention: Christine Miller 

Facsimile: (617) 867-4698 

Email: cmiller@arclightcapital.com 

With a copy to: 
 Andrews
Kurth Kenyon LLP 
 600 Travis Street, Suite 4200 

Houston, Texas 77002 

Attention: G. Michael O’Leary 

Fax: (713) 220-4285 
 Email:
moleary@andrewskurth.com 

  
 PAGE 7

 Notice given by personal delivery, courier service or mail shall be effective upon actual receipt. Notice
given by email shall be confirmed by appropriate answer back and shall be effective upon actual receipt if received during the recipient’s normal business hours, or at the beginning of the recipient’s next Business Day after receipt if not
received during the recipient’s normal business hours. All Notices by email shall be confirmed promptly after transmission in writing by certified mail or personal delivery. Any party may change any address to which Notice is to be
given to it by giving Notice as provided above of such change of address.

6.3.    Interpretation. The words “hereof,” “herein” and
“hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to this Agreement unless otherwise
specified. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The meanings given to terms
defined herein shall be equally applicable to both the singular and plural forms of such terms. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this
Agreement. This Agreement is the product of negotiation by the parties having the assistance of counsel and other advisers. It is the intention of the parties that this Agreement not be construed more strictly with regard to one party than
with regard to the others. 
 6.4.    Entire Agreement. This Agreement and, solely to the
extent of the defined terms referenced herein, the Merger Agreement and the AMID Partnership Agreement, together with the exhibits annexed hereto, embody the complete agreement and understanding among the parties hereto with respect to the subject
matter hereof and supersede and preempt any prior understandings, agreements or representations by or among the parties, written and oral, that may have related to the subject matter hereof in any way. 

6.5.    Governing Law; Jurisdiction; Waiver of Jury Trial. To the maximum extent permitted by
applicable Law, the provisions of this Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, without regard to principles of conflicts of law. Each of the parties hereto agrees that this
Agreement involves at least $100,000 and that this Agreement has been entered into in express reliance upon 6 Del. C. § 2708. Each of the parties hereto irrevocably and unconditionally confirms and agrees that it is and shall continue
to be (a) subject to the jurisdiction of the courts of the State of Delaware and of the federal courts sitting in the State of Delaware, and (b) subject to service of process in the State of Delaware. EACH PARTY HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY (I) CONSENTS AND SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY FEDERAL OR STATE COURT LOCATED IN THE STATE OF DELAWARE, INCLUDING THE DELAWARE COURT OF CHANCERY IN AND FOR NEW CASTLE COUNTY (THE “DELAWARE
COURTS”) FOR ANY ACTIONS, SUITS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (AND AGREES NOT TO COMMENCE ANY LITIGATION RELATING THERETO EXCEPT IN SUCH COURTS),
(II) WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUCH LITIGATION IN THE DELAWARE COURTS AND AGREES NOT TO PLEAD OR CLAIM IN ANY DELAWARE COURT THAT SUCH LITIGATION BROUGHT THEREIN HAS BEEN BROUGHT IN ANY INCONVENIENT FORUM,
(III) WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT AND (IV) AGREES THAT SERVICE OF
PROCESS UPON SUCH PARTY IN ANY SUCH ACTION OR PROCEEDING SHALL BE EFFECTIVE IF SUCH PROCESS IS GIVEN AS A NOTICE IN ACCORDANCE WITH SECTION 6.2 OR IN ANY MANNER PRESCRIBED BY THE LAWS OF THE STATE OF DELAWARE. 

  
 PAGE 8

 6.6.    Amendment; Waiver. This Agreement may not
be amended except by an instrument in writing signed by AMID, AMID GP and the Supporting Party. Each party may waive any right of such party hereunder by an instrument in writing signed by such party and delivered to the other parties hereto.

 6.7.    Remedies. 

(a)    Each party hereto acknowledges that monetary damages would not be an adequate remedy in the event
that any covenant or agreement in this Agreement is not performed in accordance with its terms, and it is therefore agreed that, in addition to and without limiting any other remedy or right it may have, the non-breaching party will have the right
to an injunction, temporary restraining order or other equitable relief in any court of competent jurisdiction enjoining any such breach and enforcing specifically the terms and provisions hereof. Each party hereto agrees not to oppose the
granting of such relief in the event a court determines that such a breach has occurred, and to waive any requirement for the securing or posting of any bond in connection with such remedy. 

(b)    All rights, powers and remedies provided under this Agreement or otherwise available in respect
hereof at law or in equity shall be cumulative and not alternative, and the exercise or beginning of the exercise of any thereof by any party shall not preclude the simultaneous or later exercise of any other such right, power or remedy by such
party. 
 6.8.    Successors and Assigns; Third Party Beneficiaries. Neither this Agreement
nor any of the rights or obligations of any party under this Agreement shall be assigned, in whole or in part (by operation of law or otherwise), by any party without the prior written consent of the other parties hereto. Subject to the
foregoing, this Agreement shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended to confer on any Person
other than the parties hereto or the parties’ respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement. 

6.9.    Severability. If any term or other provision of this Agreement is invalid, illegal, or
incapable of being enforced by any rule of applicable Law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions
contemplated by this Agreement are not affected in any manner materially 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 hereto as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement are consummated as
originally contemplated to the fullest extent possible. 
 6.10.    Execution. This Agreement
may be executed in multiple counterparts each of which shall be deemed an original and all of which shall constitute one instrument. 

[Remainder of this page intentionally left blank] 

  
 PAGE 9

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed (where
applicable, by their respective officers or other authorized Person thereunto duly authorized) as of the date first written above. 
  

					
	AMID:
	
	AMERICAN MIDSTREAM PARTNERS, LP
		
	By:	 	 American Midstream GP, LLC,
 its
general partner

			
		 	By:	 	 /s/ Lynn L. Bourdon III

		 	Name:	 	Lynn L. Bourdon III
		 	Title:	 	Chairman, President and Chief
		 		 	Executive Officer
	
	AMID GP:
	
	AMERICAN MIDSTREAM GP, LLC
		
	By:	 	 /s/ Lynn L. Bourdon III

	Name:	 	Lynn L. Bourdon III
	Title:	 	Chairman, President and
		 	Chief Executive Officer
	
	MAGNOLIA:
	
	MAGNOLIA INFRASTRUCTURE HOLDINGS, LLC
		
	By:	 	 /s/ Daniel R. Revers

	Name:	 	Daniel R. Revers
	Title:	 	President

  

			
	SUPPORT AGREEMENT	 	SIGNATURE PAGE

 EXHIBIT A 

FINANCIAL PROJECTIONS 
 Target LP
DCF per Unit During the Support Period: 
  

							
	Q1 2017	 	Q2 2017	 	Q3 2017	 	Q4 2017
				
	 $0.45
	 	$0.43	 	$0.48	 	$0.48
				
	Q1 2018	 	Q2 2018	 	Q3 2018	 	Q4 2018
				
	 $0.52
	 	$0.52	 	$0.51	 	$0.55
				
	Q1 2019	 		 		 	
				
	 $0.55
	 		 		 	

 Certain Defined Terms: 

For purposes of this Exhibit A, the terms set forth below shall be defined as follows: 

“Adjusted EBITDA” shall mean the Adjusted EBITDA as reported within AMID’s applicable quarterly or annual
financial statements. 
 “DCF” shall mean Adjusted EBITDA, less cash paid for interest expense and maintenance
capital expenditures as each is reported within AMID’s applicable quarterly financial and earning statements. 
 “GP
DCF” shall mean any amount of cash distributed to holders of the Incentive Distribution Rights and General Partnership Interest (as such terms are defined in the AMID Partnership Agreement), to the extent actually paid, assuming that
the total amount distributed to the holders of any Partnership Interest (as such term is defined in the AMID Partnership Agreement) equals Support DCF or a coverage ratio of 1.0x. 

“LP DCF” shall mean Support DCF less GP DCF. 

“LP DCF per Unit” shall mean LP DCF divided by Units. 

“Series A Preferred Units” shall mean the sum of the Series A-1 Convertible Preferred Units and the Series A-2
Convertible Preferred Units. 
 “Support DCF” shall mean DCF, plus cash interest or related expense or deduction
paid to Supporting Party or its Affiliates. 
 “Support DCF per Unit” shall mean Support DCF divided by Units. 

  

			
	SUPPORT AGREEMENT	 	EXHIBIT A

 “Units” shall mean the weighted average number of AMID Common Units
outstanding for the applicable period plus the additional number of AMID Common Units that would be outstanding. assuming that (a) the outstanding Series A Preferred Units are converted into AMID Common Units on December 31, 2016 at a 1.10X
conversion ratio and (b) any other security that could be converted into AMID Common Units would be excluded from the AMID Common Unit count in the calculation of Support DCF per Unit even if any such other security is actually converted into AMID
Common Units. 

  

			
	SUPPORT AGREEMENT	 	EXHIBIT A

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