Document:

ex10_3.htm

 Exhibit 10.3

Execution Copy

AMENDMENT NO. 2

TO

UNITHOLDER RIGHTS AGREEMENT

 

THIS AMENDMENT NO. 2 TO UNITHOLDER RIGHTS AGREEMENT (this “Amendment”) is made as of December 28, 2010 by and among Genesis Energy, L.P., a Delaware limited partnership (the “Partnership”), the unitholders set forth on the signature page hereto (each a “Unitholder” and collectively the “Unitholders”) and Genesis Energy, LLC, a Delaware limited liability company (the “Company”).  The Partnership, the Unitholders and the Company are, collectively, the “Parties”.  Any capitalized term used, but not defined, in this Amendment shall have the meaning given such term in the Agreement (defined below).

 

INTRODUCTION

 

A.           The Parties, or their predecessors-in-interest, entered into the Unitholder Rights Agreement dated as of July 25, 2007, which was subsequently amended on October 15, 2007 (as in effect immediately prior to the date of this Amendment, the “Agreement”).

 

B.            The Parties desire to amend the Agreement as set forth in this Amendment.

 

In consideration of the premises, the representations and warranties, and the mutual promises made in this Amendment and the Agreement, the Parties agree as follows:

 

	
1.

	
Amendment. (a) Section 2.1 of the Agreement is hereby amended by restating the table set forth therein as follows:

 

	
Aggregate Number of Directors that may be Designated by Unitholders

	
Davison Family Holdings as a Percent of All Common Units

	
A.  three

	
15% or more

	
B.  two

	
10% or more but less than 15%

	
C.  none

	
less than 10%

 

(b)  Section 2.2 of the Agreement is hereby amended by restating the first sentence to read as follows:  “The Unitholders shall affect such designation only by delivering to the GP a written notice (the “Designation Notice”) identifying a first Qualified Candidate and a second Qualified Candidate and, if applicable, a third Qualified Candidate.”

 

(c)  Section 2.3 of the Agreement is hereby amended by restating the first two sentences to read as follows:  “After the Initial Period, in the event that three Qualified Candidates are Directors and either the members of the Davison Family cease to Beneficially Own at least 15% of the then outstanding Common Units or the Unitholders (or their permitted assignees) are not then Affiliates of any member of the Davison Family, the term of the third Qualified Candidate shall automatically expire.  After the Initial Period, in the event that two or three Qualified Candidates are Directors and either the members of the Davison Family cease to Beneficially Own at least 10% of the then outstanding Common Units or the Unitholders (or their permitted assignees) are not then Affiliates of any member of the Davison Family, the term of all such Qualified Candidates shall automatically expire.”

 

  

1

  

(d)  Article II of the Agreement is hereby amended to insert a new Section 2.5 in its appropriate numerical-order position to read as follows:

 

“Section 2.5.  Notwithstanding anything in Section 3.3 to the contrary, so long as the Unitholders (or their permitted assignees) have the right to designate three Directors under Section 2.1 above, then the Board may not have more than 11 Directors concurrently serving at any given time without obtaining the Unitholders’ (or their permitted assignees) express written consent as to the appointment of any Directors whose appointment would cause the size of the Board to exceed 11 Directors at any given time.”

 

	
2. 

	
Entire Agreement. This Amendment constitutes the entire agreement and understanding of the Parties with respect to its subject matter and supersedes all oral communication and prior writings (except as otherwise provided herein) with respect thereto.  The Parties ratify and confirm the Agreement as amended hereby as if each were a party thereto.

	
3.

	
Amendments. No amendment, modification or waiver in respect of this Amendment will be effective unless in writing (including a writing evidenced by a facsimile transmission) and executed by each of the Parties.

	
4.

	
Counterparts. This Amendment may be executed and delivered in counterparts (including by facsimile transmission), each of which will be deemed an original.  All signatures need not be on one counterpart.

 

	
5.

	
Governing Law. This Amendment will be governed by and construed in accordance with the law of the State of Delaware (without reference to choice of law doctrine).

 

	
6.

	
Effectiveness.  This Amendment and the amendment obligations contemplated by this Amendment shall be effective as of the Effective Time (as defined in that certain Agreement and Plan of Merger, dated as of the date hereof, by and among the Partnership, Genesis Acquisition, LLC, a Delaware limited liability company and the Company).

 

[Signature Pages Follow]

 

  

2

  

 

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 2 to be duly executed as of the date first above written.

 

	  	
UNITHOLDERS:

	  	
TERMINAL SERVICES, INC.

	  	  	  	  
	  	
By:

	
/s/ James E. Davison

	  
	  	
Name:

	  	  
	  	
Title:

	  	  
	  	  	  	  
	  	
/s/ James Ellis Davison

	  
	  	
James Ellis Davison

	  
	  	  	  	  
	  	
JAMES ELLIS DAVISON, JR.

	  	
GRANTOR RETAINED ANNUITY TRUST

	  	  	  	  
	  	
By:

	
/s/ James Ellis Davison, Jr.

	  
	  	
Name:

	
James Ellis Davison, Jr.

	  
	  	
Title:

	
Trustee

	  
	  	  	  	  
	  	
/s/ James Ellis Davison, Jr.

	  
	  	
James Ellis Davison, Jr.

	  
	  	  	  	  
	  	
/s/ Todd Allen Davison

	  
	  	
Todd Allen Davison

	  
	  	  	  	  
	  	
TODD DAVISON LEGACY TRUST-2010

	  	
C/O ARGENT  TRUST

	  	  	  	  
	  	
By:

	
/s/ Kimberly Husband

	  
	  	
Name:

	
Kimberly Husband, Senior VP

	  
	  	
Title:

	
Trustee

	  

[Signature Page - Amendment No. 2 to Unitholder Rights Agreement (1 of 3)]

  

  

  

	  	
C/O ARGENT TRUST

	  	  	  	  
	  	
By:

	
/s/ Kimberly Husband

	  
	  	
Name:

	
Kimberly Husband, Senior VP

	  
	  	
Title:

	
Trustee

	  
	  	  	  	  
	  	
/s/ Steven Kent Davison

	  
	  	
Steven Kent Davison

	  
	  	  	  	  
	  	
STEVEN DAVISON FAMILY TRUST

	  	
C/O ARGENT TRUST

	  	  	  	  
	  	
By:

	
/s/ Kimberly Husband

	  
	  	
Name:

	
Kimberly Husband, Senior VP

	  
	  	
Title:

	
Trustee

	  

[Signature Page - Amendment No. 2 to Unitholder Rights Agreement (2 of 3)]

  

  

  

	
COMPANY:

	  	  	  
	
GENESIS ENERGY, LLC

	  	  	  
	
By:

	
/s/ Robert C. Sturdivant

	  
	
Name:

	
Robert C. Sturdivant

	  
	
Title:

	
Chairman of the Board

	  
	  	  	  
	
PARTNERSHIP:

	
GENESIS ENERGY, LP.

	
By:

	
Genesis Energy, LLC,

	  
	
its

	
general partner

	  
	  	  	  
	
By:

	
/s/ Grant E. Sims

	  
	
Name:

	
Grant E. Sims

	  
	
Title:

	
Chief Executive Officer

	  

[Signature Page - Amendment No. 2 to Unitholder Rights Agreement (3 of 3)]ex10_4.htm

Exhibit 10.4

 

Execution Copy

AMENDMENT NO. 1

TO THE INDEMNIFICATION AGREEMENT

This Amendment No. 1, dated December 28, 2010 (this “Amendment”) to the Indemnification Agreement (the “Agreement”), effective as of the date hereof, among Genesis Energy, L.P., a Delaware limited partnership (the “Partnership”), Genesis Energy, LLC, a Delaware limited liability company (the “Company”), and the undersigned director or officer of the Company (the “Indemnitee”), is hereby entered into among the Partnership, the Company and the Indemnitee.

WHEREAS, as of even date herewith, the Board of Directors of the General Partner approved this Amendment on behalf of both the General Partner and the Partnership;

NOW, THEREFORE, it is hereby agreed as follows:

1.           Amendment.  Section 16 of the Agreement is hereby amended and restated in its entirety to read as follows:

Maintenance of Liability Insurance.  The Partnership and the Company hereby covenant and agree that (i) so long as Indemnitee shall continue to serve as a director or officer of the Company, the Company or the Partnership shall maintain, and for six years thereafter so long as Indemnitee shall be subject to any possible Proceeding by reason of the fact that Indemnitee was a director or officer of the Company shall cause Indemnitee to be covered by, the policies of directors’ and officers’ liability insurance maintained by the Partnership or the Company and its respective subsidiaries, as applicable, in effect as of the date hereof, except that the Company and the Partnership may substitute policies of at least the same coverage and amounts provided by established and reputable insurers containing terms and conditions which are not less advantageous to the directors and officers of the Company than the existing policy; provided, that the Partnership and the Company are not required to pay annual premiums in excess of 300% of the last annual premium paid by the Partnership or the Company, as applicable, prior to the date hereof and (ii) the organizational documents of the Company shall at all times provide for indemnification and exculpation of officers and directors no less favorable with respect thereto than are set forth in the organizational documents of the Company as of the date hereof.  Notwithstanding the foregoing, the Company and the Partnership will have no obligation to obtain or maintain the insurance contemplated by this Section 16 if the Board of Directors determines in good faith that such insurance is not reasonably available. The Company will promptly notify Indemnitee of any such determination not to provide insurance coverage.

2.           Agreement in Effect.  Except as hereby amended, the Agreement shall remain in full force and effect.

3.           Applicable Law.  This Amendment shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to principles of conflicts of laws.

  

  

  

 

4.           Invalidity of Provisions. If any provision of this Amendment is or becomes invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby.

[Signature Pages Follow]

 

  

2

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment on and as of the date first written above.

	  	
GENESIS ENERGY, L.P.

	 
	  	  	  	 
	  	
By:

	
Genesis Energy, LLC

	 
	  	 	its general partner	 
	  	  	  	 
	  	
By:

	 	 
	  	
Name:

	
Grant E. Sims

	 
	  	
Title:

	
Chief Executive Officer

	 
	  	  	  	 
	  	
GENESIS ENERGY, LLC

	 
	  	  	  	 
	  	
By:

	 	 
	  	
Name:

	
Robert C. Sturdivant

	 
	  	
Title:

	
Chairman of the Board

	 

 

[Signature Page – Amendment No. 1 to Indemnification Agreement (1 of 2)]

 

  

  

  

 

	  	

INDEMNITEE

	 
	  	 	  	 
	  	 	
 

	 

 

[Signature Page – Amendment No. 1 to Indemnification Agreement (2 of 2)]

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