Document:

exv10w3

Exhibit 10.3

COMMON UNIT PURCHASE AGREEMENT

     This Common Unit Purchase Agreement (this “Agreement”), effective as of November 4,
2009, is by and between Martin Midstream Partners L.P., a Delaware limited partnership (the
“Seller”) and Martin Resource Management Corporation, a Texas corporation (the “Purchaser”).

RECITALS

     WHEREAS, the Seller desires to issue and sell to the Purchaser, and the Purchaser desires to
purchase from the Seller 715,308 common units (the “Units”) representing limited partnership
interests in the Seller for Sale Consideration (as defined below) that consists of a price per Unit
equal to the average closing price of the Seller’s common units for the ten trading days prior to
November 4, 2009;

     WHEREAS, the Purchaser has agreed to purchase the Units from the Seller on the terms
hereinafter set forth;

     NOW, THEREFORE, in consideration of the foregoing recitals and the agreements herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the parties hereto hereby agree as follows:

ARTICLE 1.

PURCHASE AND SALE OF UNITS

     1.1. Purchase and Sale of the Units. Subject to the terms and conditions hereof and
on the basis of the representations and warranties hereinafter set forth, at the Closing, the
Seller agrees to issue and sell to the Purchaser, and the Purchaser agrees to purchase from the
Seller the Units for the consideration of $20,000,000 (the “Sale Consideration”), payable by wire
transfer to an account designated in writing by the Seller.

     1.2. Closing; Delivery of Unit Certificates. The closing of the transactions
contemplated by this Agreement shall occur on November 16, 2009, or a such other time that the
parties hereto agree (the “Closing”); provided, however, that the Closing shall not occur until
Purchaser has received the approval of its lenders under the Purchaser’s Credit Agreement. At the
Closing, upon the receipt of the payment from the Purchaser of the Sale Consideration, the Seller
shall deliver to the Purchaser a certificate evidencing the Units.

     1.3. Restriction on the Transfer of the Units. The Purchaser acknowledges that, other
than a pledge to Amegy Bank National Association in its capacity as administrative agent under the
Purchaser’s Credit Agreement, the Purchaser may not directly or indirectly (including by operation
of law) transfer any of the Units unless such transfer is pursuant to an effective registration
statement under the Securities Act (as defined below) and the securities laws of any applicable
state or other jurisdiction, or such transfer is exempt from registration under such laws. The
certificate representing the Units delivered to the Purchaser pursuant to this Agreement and any
subsequent unit certificates deriving from such certificate shall bear appropriate legends to such
effect.

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ARTICLE 2.

REPRESENTATIONS AND WARRANTIES

     2.1. Representations and Warranties of Seller. The Seller represents and warrants to,
and agrees with, the Purchaser, on the date hereof and as of the date of the Closing as follows:

          2.1.1. Legal Capacity. The Seller possesses the legal capacity to execute, deliver
and perform this Agreement, without obtaining any approval, authorization, consent or waiver from,
or giving any notice to, any third party or governmental entity.

          2.1.2. Execution, Delivery, and Enforceability. The Seller has duly authorized,
executed, and delivered this Agreement, and this Agreement constitutes a valid, legal, and binding
obligation of the Seller, enforceable against the Seller in accordance with its terms, subject to
any laws affecting creditors’ rights.

          2.1.3. Issuance of Units. The Units have been duly and validly authorized for
issuance pursuant to this Agreement and, when issued and delivered as provided hereunder against
payment in accordance with the terms hereof, will be validly issued, fully paid and nonassessable
(except to the extent that such nonassessablility may be limited by law or by the Seller’s
Partnership Agreement).

          2.1.4. Conflicts. The Seller’s execution, delivery, or performance of this Agreement
or the transactions contemplated herein to be performed by the Seller will not conflict with,
constitute a breach or violation of, result in a lien against, or give rise to any default or right
of acceleration, cancellation, or termination with respect to any document or any applicable law to
which Seller is a party or by which any of the Seller’s assets are bound (or give rise to an event
that with notice, lapse of time, or both, would result in such a conflict, breach, violation, lien,
default, or right).

          2.1.5 Sale Consideration. The Seller acknowledges and agrees that (a) the Sale
Consideration has been determined by arms-length negotiations between the Seller and the Purchaser
based upon each party’s analysis and diligence concerning the Company’s prospects and the fair
market value of the Units, and (b) the Seller has not made any representations or warranties to the
Purchaser regarding the historical or prospective financial or operating performance of, or any
other matters relating to, the Seller or its subsidiaries.

     2.2. Representations and Warranties of Purchaser. The Purchaser represents and
warrants to, and agrees with, the Seller, on the date hereof and as of the date of the Closing as
follows:

          2.2.1. Legal Capacity. The Purchaser possesses the legal capacity to execute, deliver
and perform this Agreement, without obtaining any approval, authorization, consent or waiver from,
or giving any notice to, any third party or governmental entity.

          2.2.2. Execution, Delivery, and Enforceability. The Purchaser has duly executed and
delivered this Agreement, and this Agreement constitutes a valid, legal, and binding obligation of
the Purchaser, enforceable against the Purchaser in accordance with its terms, subject to any laws
affecting creditors’ rights.

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          2.2.3. Conflicts. The Purchaser’s execution, delivery, and performance of this
Agreement will not conflict with, constitute a breach or violation of, result in a lien against, or
give rise to any default or right of acceleration, cancellation, or termination with respect to any
document to which the Purchaser is a party or by which any of the Purchaser’s assets are bound (or
give rise to an event that with notice, lapse of time, or both, would result in such a conflict,
breach, violation, lien, default, or right).

          2.2.4. Sophisticated Investor.

          The Purchaser is an “accredited investor” as defined in rule 501(a) under the Securities Act
of 1933. The Purchaser is acquiring the Units for investment purposes only and not with a view to
making a distribution of such Units.

ARTICLE 3.

GENERAL

     3.1. Amendment. No amendment or modification of any of the provisions of this
Agreement shall be effective unless in writing and signed by all of the parties to this Agreement.

     3.2. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original agreement, but all of which shall constitute one and the
same agreement. Any party to this Agreement may execute and deliver this Agreement by an executed
signature page transmitted by a facsimile machine.

     3.3. Entire Agreement. This Agreement constitutes the entire agreement and
understanding among the parties to this Agreement and supersedes all prior agreements and
understandings, both written and oral, with respect to the subject matter contained in this
Agreement.

     3.4. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED AND INTERPRETED ACCORDING TO,
AND GOVERNED BY, THE LAWS OF THE STATE OF TEXAS, REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE GOVERN
UNDER THE APPLICABLE PRINCIPLES OF CONFLICTS OF THE STATE OF TEXAS.

     3.5 Headings. Article and section headings are used in this Agreement only as a
matter of convenience, are not a part of this Agreement, and shall not have any effect upon the
construction or interpretation of this Agreement.

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     IN WITNESS WHEREOF, each party hereto has executed and delivered this Agreement as of the date
first written above.

	 	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 
	 	 	MARTIN MIDSTREAM PARTNERS L.P.

By: Martin Midstream GP LLC, its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert D. Bondurant	 	 
	 

	 	 	 	 
	 

	 	Name:	 	Robert D. Bondurant	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Chief Financial Officer
	 

	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PURCHASER:	 	 
	 
	 	 	 	 	 	 
	 	 	MARTIN RESOURCE MANAGEMENT CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert D. Bondurant	 	 
	 

	 	 	 	 
	 

	 	Name:	 	Robert D. Bondurant
	 

	 	 	 	 
	 

	 	Title:	 	Executive Vice President and Chief Financial Officer
	 

	 	 	 	 

-4-Exhibit 4.1

Exhibit 4.1

SUPPLEMENTAL INDENTURE

THIS SUPPLEMENTAL INDENTURE, dated as of November 2, 2009 (this “Supplemental Indenture”) is
entered into by and among MORGANS GROUP LLC, a limited liability company formed under the laws of
Delaware (the “Company”), MORGANS HOTEL GROUP CO., a corporation incorporated under the laws of
Delaware (the “Guarantor”) and THE BANK OF NEW YORK MELLON TRUST COMPANY, NATIONAL ASSOCIATION (as
successor to JPMorgan Chase Bank, National Association), a national banking association, as trustee
(the “Trustee”).

Reference is made to that certain Junior Subordinated Indenture dated as of August 4, 2006, by
and among the Company, Guarantor and the Trustee pursuant to which the Company issued Junior
Subordinated Notes due 2036, in an aggregate amount of US $50,100,000 (as modified, amended and
supplemented by this Supplemental Indenture, the “Indenture”). Capitalized terms used herein and
not defined herein shall have the meanings given to such terms under the Indenture.

WHEREAS, the Company, the Guarantor and the Holders agree to, among other things, (a) amend
Section 1.1 of the Indenture to add additional definitions and delete certain definitions,
(b) amend Section 5.1 of the Indenture to add additional Events of Default and reduce
certain notice and cure periods for defaults and (c) amend Article X of the Indenture by
deleting the covenant provided in Section 10.9(a) of the Indenture;

WHEREAS, the Holders have agreed to waive any existing defaults, if any, under Section
10.9(a) of the Indenture; and

WHEREAS, the execution and delivery by each of the Company and the Guarantor of this
Supplemental Indenture has been duly authorized by all requisite corporate/limited liability
company action and all other actions required to make this Supplemental Indenture a valid and
binding instrument have been duly taken and performed.

NOW, THEREFORE, in consideration of the foregoing, the Trustee, the Company, and the Guarantor
are entering into this Supplemental Indenture pursuant to Section 9.2 of the Indenture as
follows:

ARTICLE I

AMENDMENTS TO INDENTURE

Section 1.01 Section 1.1 of the Indenture is hereby amended by adding the following
defined terms:

“Credit Agreement” shall mean that certain Credit Agreement dated October 6, 2006, as
amended from time to time thereafter, by and among the Company and certain of its
subsidiaries, as borrowers and guarantors, Morgans Hotel Group Co., Wachovia Bank, National
Association, as agent, and the several lenders named therein.

 

 

 

Section 1.02 Section 1.1 of the Indenture is hereby amended by deleting (a)
the defined terms (i) “EBITDA,” (ii) “Fixed Charge Coverage,” (iii) “Interest Charges,” (iv) “Net
Income,” (v) “Special Event,” and (vi) “Special Redemption Price” and (b) the phrases “the Special
Redemption Price or” and “, as applicable,” from the definition of “Redemption Price.”

Section 1.03 For all purposes under this Indenture, the form of securities described
in Section 2.1 of the Indenture and the Securities issued pursuant hereto, the following paragraph
shall be deemed deleted in its entirety:

“In addition, upon the occurrence and during the continuation of a Special Event, the Company
may, at its option, upon not less than thirty (30) days’ nor more than sixty (60) days’ written
notice to the Holders of the Securities (unless a shorter notice period shall be satisfactory
to the Trustee), redeem this Security, in whole but not in part, subject to the terms and
conditions of Article XI of the Indenture at a Redemption Price equal to one hundred three
percent (103%) of the principal amount hereof, together, in the case of any such redemption,
with accrued interest, including any Additional Interest, through but excluding the date fixed
as the Redemption Date.”

Section 1.04 Section 5.1 of the Indenture is hereby amended as follows:

(a) Sections 5.1(a) and 5.1(c) are each hereby amended by deleting the phrase “thirty
(30) days” and substituting in lieu thereof the phrase “five (5) Business Days”;

(b) Section 5.1(e) is hereby amended by deleting the word “or” from the end of Section
5.1(e);

(c) Section 5.1(f) is hereby amended by deleting the “.” at the end thereof and
replacing it with “;”; and

(d) The following new Sections 5.1(g) and 5.1(h) are hereby added at the end of Section
5.1:

(g) the occurrence of an event of default under the Credit Agreement;
provided, that (i) any Event of Default under this Section 5.1(g) shall cease
to exist (automatically, without any further action or consent of any Person) in the
event that and at such time as such event of default under the Credit Agreement no
longer continues to exist (as evidenced by a fully executed agreement of the agent
under the Credit Agreement to that effect and certified in writing by the Company to
the Holders and the Trustee) and (ii) the maturity of the principal amount of the
Securities may not be accelerated and neither the Trustee nor the Holders shall be
entitled to commence any proceedings or exercise any other remedy, as a result solely
of any Event of Default under this Section 5.1(g) unless and until the indebtedness
under the Credit Agreement is accelerated; and

 

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(h) default in the performance, or breach, of any covenant of the Company or the
Guarantor in the Inspection Rights and Confidentiality Agreement, dated as of November
2, 2009, by and among the Company, the Guarantor, and Taberna Capital Management, LLC (as it may be amended from time to time) and continuance of such
default or breach for a period of fifteen (15) days after there has been given, by
registered or certified mail, to the Company by the Trustee or to the Company and the
Trustee by the Holders of at least thirty three and a third percent (33-1/3%) in
aggregate principal amount of the Outstanding Securities a written notice specifying
such default or breach and requiring it to be remedied and stating that such notice is
a “Notice of Default” hereunder.

Section 1.05 Section 5.3(a)(i) of the Indenture is hereby amended by deleting
the phrase “thirty (30) days” and substituting in lieu thereof the phrase “five (5) Business Days”.

Section 1.06 Section 7.3(b) of the Indenture is hereby amended by deleting the
phrase “Attn: Thomas Bogal” and substituting in lieu thereof the phrase “Attn: Raphael Licht”.

Section 1.07 Article X of the Indenture hereby amended by deleting Section
10.9(a) in its entirety, and replacing Section 10.9 (a) with the word “Reserved.”

Section 1.08 Section 11.1 of the Indenture is hereby amended by deleting the
phrase “on or after October 30, 2011” and substituting in lieu thereof the phrase “at any time
from time to time”.

In addition, for purposes of the third paragraph in the Form of Reverse Securities described in
Section 2.01 of this Indenture and the Securities issued pursuant hereto, the phrase “on or after
October 30, 2011” shall be deemed deleted and replaced with the phrase “at any time from time to
time”.

Section 1.09 Article XI of the Indenture is hereby amended by deleting the
text of Section 11.2 in its entirety, and replace such text with the word “Reserved.” The
table of contents of the Indenture shall be amended in a corresponding manner.

ARTICLE II

MISCELLANEOUS

Section 2.01 By execution of this Supplemental Indenture, each of MHG Capital Trust I,
as holder of $50,100,000 in aggregate principal amount of Outstanding Securities; Taberna Preferred
Funding VII, Ltd., as Holder of $25,000,000 in Liquidation Amount of the Preferred Securities (“TPF
VII”) and Taberna Preferred Funding VIII, Ltd., as holder of $25,000,000 in aggregate principal
amount of the Preferred Securities (“TPF VIII”), hereby (a) waives any existing default under
Section 10.9 (a) of the Indenture such that the Company is not and shall not be deemed to
be in default as a result of any existing breach of Section 10.9(a) of the Indenture, (b)
confirms that it has not accelerated the obligations of the Company under the Securities as a
result of any failure of the Guarantor to comply with Section 10.9(a) of the Indenture, and
(c) in accordance with Section 9.2 of the Indenture, (i) consents to the Trustee executing
and delivering this Supplemental Indenture, (ii) directs the Trustee to execute and deliver this
Supplemental Indenture and (iii) agrees to and does hereby release the Trustee for any action taken
or to be taken by the Trustee in connection with its execution and delivery of this Supplemental
Indenture and for any liability or responsibility arising in connection herewith.

 

3

 

Section 2.02 The Trustee accepts the trust in this Supplemental Indenture declared and
provided upon the terms and conditions set forth in the Indenture. The Trustee shall not be
responsible in any manner whatsoever for the validity or sufficiency of this Supplemental Indenture
or the due execution hereof by the Company or for or in respect of the recitals and statements
contained herein, all of which recitals and statements are made solely by the Company.

Section 2.03 Except as hereby expressly modified, the Indenture and the Securities
issued thereunder are ratified and confirmed and all the terms, conditions and provisions thereof
shall remain in full force and effect.

Section 2.04 This Supplemental Indenture shall become effective upon the execution and
delivery hereof.

Section 2.05 This Supplemental Indenture may be executed in any number of
counterparts, each of which shall be deemed to be an original for all purposes; but such
counterparts shall together be deemed to constitute but one and the same instrument. The executed
counterparts may be delivered by facsimile transmission or by scanned and emailed transmission,
which facsimile or scanned copies shall be deemed original copies with originals to follow via
overnight courier.

Section 2.06 The laws of the State of New York shall govern this Supplemental
Indenture without regard to the conflict of law principles thereof that would indicate the
applicability of the laws of any other jurisdiction.

Section 2.07 In the event of any inconsistency between the terms and provisions of
this Supplemental Indenture and the Indenture, the terms and provisions of this Supplemental
Indenture shall prevail.

Section 2.08 The Company agrees that this Supplemental Indenture, the Reaffirmation of
Guaranty, and Inspection Rights and Confidentiality Agreement contain the entire agreement between
the Company, MHG Capital Trust I, TPF VII and TPF VIII with respect to all of the matters set forth
the Letter Agreement, and such Letter Agreement is hereby superseded by the terms and conditions of
this Supplemental Indenture.

—SIGNATURE PAGES TO FOLLOW—

 

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

	 	 	 	 	 
	 	COMPANY:

MORGANS GROUP LLC

 	 
	 	By:  	MORGANS HOTEL GROUP CO., its managing member
 	 

	 	 	 	 	 
	 	 	 
	 	 	By:  	/s/ Marc Gordon 	 
	 	 	 	Name: Marc Gordon  
	 	 	 	Title: President 
	 

	 	 	 	 	 
	 	GUARANTOR:

MORGANS HOTEL GROUP CO.

 	 
	 	By:  	/s/ Marc Gordon
 	 
	 	 	Name:  	Marc Gordon 	 
	 	 	Title:  	President 	 

 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	TRUSTEE:

THE BANK OF NEW YORK MELLON TRUST COMPANY, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Bill Marshall
 	 
	 	 	Name:  	Bill Marshall 	 
	 	 	Title:  	Vice President 	 

 

 

 

	 	 	 	 	 
	 	 	 
	 	As to Section 2.01 only:

TABERNA PREFERRED FUNDING VII, LTD.

 	 
	 	By:  	Taberna Capital Management, LLC 	 
	 	 	 
	 	 	By:	/s/ Michael A. Fralin 	 
	 	 	  	Name:  Michael A. Fralin

Title: Managing Director 
	 

	 	 	 	 	 
	 	TABERNA PREFERRED FUNDING VIII, LTD.	 
	 	By:  	Taberna Capital Management, LLC	 
	 
	 	 	By:	/s/ Michael A. Fralin 	 
	 	 	  	Name:  Michael A. Fralin

Title: Managing Director 	 

 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MHG CAPITAL TRUST I

 	 
	 	By:  	/s/ Bill Marshall
 	 
	 	 	Name:  	Bill Marshall 	 
	 	 	Title:  	Administrative Trustee

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