Document:

exhibit10_3.htm

  

  

  

Exhibit 10.3

Execution Version

AMENDMENT NO. 1

 

THIS AMENDMENT NO. 1 dated as of April 27, 2012 (this “Amendment”) to the Subordinated Loan Agreement referenced below, is by and between Boardwalk Pipelines Holding Corp., a Delaware corporation (the “Lender”), and Boardwalk Pipelines, LP, a Delaware limited partnership (the “Borrower”).

 

RECITALS:

 

WHEREAS, pursuant to the Subordinated Loan Agreement dated as of May 1, 2009 (the “Subordinated Loan Agreement”) by and between the Borrower and the Lender, the Lender has made a subordinated loan to the Borrower; and

 

WHEREAS, the Borrower has requested and the Lender has agreed, subject to the terms and conditions hereinafter set forth, to amend the Subordinated Loan Agreement as set forth below.

 

AGREEMENT

 

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

 

 

1) Defined Terms.  Capitalized terms used herein but not otherwise defined herein shall have the meanings provided in the Subordinated Loan Agreement.

 

 

2) Amendment.  Effective as of the date hereof, and subject to the terms and conditions contained herein, the Subordinated Loan Agreement is hereby amended as follows:

 

 

	
a)  

	
The following definitions in Section 1.1 (Definitions) of the Subordinated Loan Agreement are hereby amended and restated in their entirety to read as follows:

 

	
i)  

	
“‘Maturity Date’ shall mean April 27, 2022.”

 

	  

	
ii)  

	
“‘Qualifying Indebtedness’ means Indebtedness of the MLP, the Borrower or any Subsidiary of the Borrower that is incurred after the date hereof and that does not have any amortization payment due or maturity date occurring sooner than December 29, 2013.”

 

  

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Exhibit 10.3

	
iii)  

	
“‘Senior Agent’ shall mean Wells Fargo Bank, N.A., or such successor administrative agent as maybe appointed under the terms of the Senior Credit Agreement.”

 

	
iv)  

	
“Senior Credit Agreement” shall mean the Second Amended and Restated Revolving Credit Agreement, dated as of April 27, 2012, by and among the Borrower, Texas Gas Transmission, LLC, Gulf South Pipeline Company, L.P., Gulf Crossing Pipeline Company LLC, Boardwalk HP Storage Company, LLC, Boardwalk Midstream, LP, Boardwalk Pipeline Partners, LP, the several lenders from time to time party thereto, and the Senior Agent, as administrative agent, as the same may be amended, restated, amended and restated, supplemented, modified, refunded, replaced or refinanced from time to time.

 

	
b)  

	
Section 2.5(Prepayment) of the Subordinated Loan Agreement is hereby amended by adding the following subsections (c) and (d):

 

	
  

	
“(c)

	
Mandatory Prepayment Upon Notice by the Lender.  Subject to the terms and conditions of the Subordination Agreement, all or a portion of the outstanding principal of the Subordinated Loans (and accrued interest on the Subordinated Loans to be so paid) shall be payable by the Borrower upon notice  by the Lender to the Borrower specifying the principal amount to be paid and date of such required payment.  The Lender shall deliver such notice in writing to the Borrower no less than fifteen (15) months prior to the date upon which the  payment specified in such notice is to be made.

 

	
  

	
 (d)

	
Voluntary Prepayment.  Subject to the terms and conditions of the Subordination Agreement, upon no less than five (5) Business Days prior written notice to the Lender specifying the principal amount of  the Subordinated Loans to be prepaid and the proposed date of such prepayment, the Borrower may voluntarily prepay, in whole or in part, the principal amount of the Subordinated Loans specified in such notice together with accrued interest to the date of such prepayment.”

 

 

3) No Other Amendments or Waivers.  The execution and delivery of this Amendment shall not, except as specifically provided herein, constitute a waiver of (a) any other provision of the Subordinated Loan Agreement or (b) any right, power or remedy of the Lender under the Subordinated Loan Agreement, including rights, powers and remedies arising out of or relating to any existing Defaults or Events of Default.  The Subordinated Loan Agreement shall remain in full force and effect and is hereby ratified and confirmed.  No course of dealing and no failure or delay by the Lender in exercising any right, power or remedy under the Subordinated Loan Agreement shall operate as a waiver thereof or otherwise prejudice the Lender’s rights, powers or remedies.

 

  

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Exhibit 10.3

 

4) Effectiveness. This Amendment shall become effective as of the date hereof upon the execution and delivery hereof by the Borrower and the Lender.

 

 

5) Counterparts.  This Amendment may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are attached to the same document.  Delivery of an executed signature page of this Amendment by facsimile transmission or electronic mail shall be as effective as delivery of a manually executed counterpart hereof.

 

 

6) GOVERNING LAW.  This Amendment and the rights and obligations of the parties hereto shall be governed by, and construed and interpreted in accordance with, the law of the State of New York.

 

  

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Exhibit 10.3

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

 

	  	
BOARDWALK PIPELINES, LP,

as Borrower

 

	  	  	
By: Boardwalk Operating GP, LLC,

its general partner

 

By: Boardwalk Pipeline Partners, LP,

its managing member

 

By: Boardwalk GP, LP,

its general partner

 

By: Boardwalk GP, LLC,

its general partner

 

	  	
By:

	
____________________________________

	  	  	
Name:

	  	  	
Title:

	  	
BOARDWALK PIPELINES HOLDING CORP.,

as Lender

 

	  	
By:

	
____________________________________

	  	  	
Name:

	  	  	
Title:

Signature Page to Amendment No. 1Ex. 10.1

Exhibit 10.1

Sales Commission Plan
EVP, Global Sales

The following is the outline of your commission Plan.  The plan is effective January 1, 2012.  For the purposes of this plan, the plan year is January 1 through December 31.  

Objectives:
The following outlines the objectives for the EVP, Global Sales Commission Plan:
		
	•
	Initially target a total cash compensation (base salary + commissions) of $456,000 annually, with any changes to target total cash compensation for future plan years to be approved by either the President and CEO, the Board of Directors, or the appropriate committee of the Board of Directors, as may be required

		
	•
	Incentive to drive cash system sales and utilization of disposable products in the U.S. and APLAC and sales regions

		
	•
	Increase incentive to drive revenue beyond quota and achieve territory business objectives with an “over plan” commission rate

Base Commission:
The plan contains a two-tiered commission rate structure, “at plan” and “over plan” allowing for higher commission payout for performance above the established quotas.  Your commission will be calculated using the following commission guidelines:

		
	•
	Capital Placements & Disposable Utilization “at plan” commission rate:  Applies to the Grand Total GAAP revenue up to plan (quota) as reported by Finance for each quarter for the U.S. and APLAC sales regions.

Over Plan Commission:

		
	•
	Capital Placements & Disposable Utilization “over plan” commission rate: This rate is applied to the Grand Total GAAP revenue reported by Finance that exceeds the annual revenue quota.  (See Over Plan Commission section below for revenue.)

As an incentive to drive additional sales, there is an additional “over plan” commission rate applied to all revenue generated above your revenue quota.  The over plan rate will be calculated at the end of the plan year to all GAAP revenue reported by Finance that exceed the annual revenue quota.  The annual revenue quota will be the sum of H1 and H2 revenue plans.  The payment of any over plan commission is contingent upon the achievement of the business objectives for your territories and subject to final approval by the Volcano Board of Directors.  This additional commission rate is also shown on your quota sheet.  

If a new product line is added during any plan year that constitutes a significant revenue contributor and was not part of the final, board-approved revenue plans for the first half of the plan year or the second half of the plan year, you will receive additional communication on the specific quota and associated commission rate(s).  The revenue produced for this new product line will not be factored into the above-referenced base commission calculations or the “Over Plan” commission calculations.

See the enclosed Sales Targets document to see your quotas and corresponding commission rates for an applicable plan year.  

Payment of Commissions:

Commission is earned annually, payable at 80% of projected quarterly, clawbacks at year-end based on earned vs. paid.  Your initial target commission will be $150,000 annually.The details of the process are as follows:

Quarterly:  80% of calculated quarterly commissions, up to 100% of plan, will be paid within 30 days of end of quarter.

Annually:  Remaining quarterly commissions for the plan year are calculated by applying the at plan commission rate 

to the final eligible sales revenue, then subtract out all quarterly commissions paid during the plan year.  In addition, 100% of any “over plan” calculated commissions are paid annually after approval by the Volcano Board of Directors.  

80 - 94% to plan = payout of 80 - 94% of target commission
95 - 99% to plan = payout of 95 - 99% of target commission
100 - 109% to plan = payout of 100 - 109% of target commission
110%+ to plan = payout is equal to percent to plan plus an additional 10%

Earned commissions are defined as the amount determined by applying your commission rate to the Grand Total GAAP Revenue for U.S. and APLAC sales regions (i.e. VC) as reported by Finance for the applicable period.  

If you cease employment for any reason, advances will immediately cease and any remaining commissions will be paid after accounting for all allowances, rebates, credits and returns received by the company at any time prior to final payment that have not been previously deducted, and will be paid within 30 days of the end of the month in which the cessation of employment has occurred.  You must be employed for the entire quarter to qualify for that quarter's earned commission, and you must be employed for the entire year to qualify for that year's over plan commission, if any.

Plan Guidelines:

General
Business conditions and new product launches may necessitate modifications of this Plan.  Such modifications will be made at the sole discretion of the President and Chief Executive Officer, with approval as necessary by the Board of Directors or the appropriate Board committee.

Commissions are based on shipped and invoiced product net of any customary and/or GAAP adjustments.  Credits, discounts, rebates or other pricing deviations from list price may reduce commissionable revenue.

Forfeiture / Exceptions
Forfeiture of payment under this Plan will result if the sales staff member fails to report a conflict of interest or engages in dishonesty, falsification of financial information, or any serious misconduct in connection with employment of Volcano Corporation.

Administration
The administration of this Plan is the responsibility of the EVP, Global Sales Compensation Team comprised of the following:

President and Chief Executive Officer
Chief Financial Officer
V.P., Finance & Corporate Controller
V.P., Human Resources
Director, Global Sales Ops

All questions and issues arising from or relating to this Plan, including the allocation or authorization of allowances, rebates, credits and returns, will be resolved by the Volcano Corporation EVP, Global Sales Compensation Team, at its sole discretion. This decision will be final.

This Plan, or any part of this Plan, does not constitute a contract of employment with or a guarantee of payment of commission with the EVP, Global Sales.  The Volcano Corporation EVP, Global Sales Compensation Team may, at its sole discretion, at any time, terminate or modify, in whole or in part, provisions of this Plan, with or without notice, or the consent of the EVP, Global Sales.

If you have further questions regarding this Commission plan, please contact a representative of the EVP, Global Sales Compensation Team.

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