Document:

ex10_136.htm

Exhibit 10.136

EXECUTIVE EMPLOYMENT AGREEMENT

THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of July 1st, 2011, by and between Compuware Corporation, a Michigan corporation (the “Company”), and Peter Karmanos, Jr. (the “Executive”) (each a “Party,” in the aggregate, the “Parties”).

WHEREAS, the Executive is an employee of the Company and the Parties wish to state the terms and conditions that will govern the Executive’s employment with the Company as of the effective date of this Agreement;

WHEREAS, the Board of Directors of the Company (the “Board”) believe this Agreement is in the Company’s best interests because it will allow the Company to continue to receive the Executive’s strategic advice, mentoring and direction with respect to the Company’s day-to-day business operations, and this Agreement will ensure that the Company’s executive succession plan is executed effectively during the transition to the new leadership team, in particular the new CEO and new President/COO;

NOW THEREFORE, in consideration of terms, covenants and agreements set forth in this Agreement, the Parties agree as follows:

 

1.           Positions, Duties and Term.  The Company hereby employs the Executive as its Executive Chairman and the Executive hereby accepts such employment, on the terms and conditions set forth below.

 

1.1           Term.  The Executive’s employment hereunder shall be for a term commencing as of July 1, 2011 (the “Effective Date”) and ending March 31, 2013.  The Company may terminate the Executive’s employment only with Cause as defined below, with written notice delivered to the Executive from the Board.  In the case of a termination by the Company for Cause, the Executive’s termination shall be effective no earlier than 30 days following the date of the notice.

  

1.2           Duties.  The Executive shall faithfully perform for the Company the duties incident to the office of Executive Chairman and shall perform such other duties of an executive, managerial or administrative nature as shall be specified and designated from time to time by the CEO or the Board.  The Executive shall devote substantially all of the Executive’s business time and effort to the performance of the Executive’s duties hereunder, provided that in no event shall this sentence prohibit the Executive from performing personal and charitable activities and any other activities approved by the Board, so long as such activities do not materially interfere with the Executive’s duties for the Company.

 

2.           Compensation.

 

2.1           Salary.  During the term of his employment under this Agreement, the Company shall pay the Executive a base salary at an annual rate of $1,200,000 (the “Base Salary”).  The Base Salary shall be payable in installments consistent with the Company’s payroll procedures.

 

2.2           Executive Incentive Plan.  During the term of employment under this Agreement, the Executive shall be eligible to participate in the Company’s Executive Incentive Plan (the “EIP”) as issued pursuant to the Amended and Restated 2007 Long Term Incentive Plan (the “Plan”).  The Executive’s target Annual Cash Incentive and Long Term Incentive amounts under the EIP shall be set by the Compensation Committee of the Board (the “Committee”) as a percentage of Base Salary.  For fiscal year 2012, the Annual Cash Incentive shall be 100% of Base Salary at target, and the Long Term Incentive shall be 175% of Base Salary at target.

  

  

  

 

2.3         Benefits.  During the term of his employment under this Agreement, the Executive shall be permitted to participate in any 401(k), group life, medical or disability insurance plans, and similar benefits that may be available to other senior executives of the Company generally, on the same terms as may be applicable to such other executives, in each case to the extent that the Executive is eligible under the terms of such plans or programs.

 

3.             Termination.

3.1                           Termination by the Company with Cause.

If during the term of his employment under this Agreement, the Executive is terminated by the Company for Cause, the Executive’s Base Salary and other benefits set forth in Section 2 automatically shall cease at the effective date of termination, and the Executive only shall be entitled to Base Salary that was earned prior to his termination for Cause; provided, however, that the Executive shall remain eligible to receive COBRA coverage for himself, spouse and eligible dependents for medical, dental, hospitalization and vision benefits, as required by law.  Following termination for Cause, the Executive’s post-retirement consulting agreement with the Company, dated as of March 1, 2007 and amended December 31, 2008 (the “Consulting Agreement”), immediately shall become null, void and of no effect.

3.2           Termination Due to Death or Disability.

If during the term of his employment under this Agreement, the Executive’s employment is terminated due to death or Disability, the Executive or his estate or designated beneficiary shall receive, as applicable, (a) a lump sum cash payment within 60 days after the Executive’s employment termination equal to the Base Salary that would have been paid to the Executive over the remaining unexpired term of the Agreement, (b) all of Executive’s outstanding awards under the EIP immediately shall vest in full and the cash awards paid in a lump sum payment in accordance with their terms but no later than the 15th day of the third month following the Company’s fiscal year to which the performance awards relate, (c) upon the Executive’s and/or eligible dependents timely election of COBRA coverage and submission of acceptable substantiation, reimbursement within 60 days of the COBRA premium payment for what would have been the Company’s portion of the COBRA costs for the Executive and/or eligible dependents, as applicable, under the Company’s medical, dental, vision and hospitalization programs for 24 consecutive months commencing with the month following the Executive’s termination due to death or Disability, (d) continuation of all benefits herein that would have been provided during the remaining term until the Executive becomes covered by the benefits elsewhere, or the lapse of the remaining term, whichever occurs first; provided that continuation of such benefits is not restricted by law and does not jeopardize the tax status of the applicable benefit or Company program, and (e) by full vesting of any unvested stock options and restricted stock units.

  

  

  

 

4.           Golden Parachute Excise Tax Provisions.  In the event it is determined that any payment or benefit (within the meaning of Section 280G(B)(2) of the Internal Revenue Code of 1986, as amended (the “Code”)) to the Executive or for his benefit paid or payable or distributed to or distributable pursuant to the terms of this Agreement or otherwise in connection with, or arising out of, his employment (“Payments”), would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Company shall pay the Executive the greatest of the following, whichever gives the Executive the highest net after-tax amount (after taking into account federal, state, local income and employment taxes at the maximum marginal rates): (a) the Payments, or (b) one dollar less than the amount of the Payments that would subject the Executive to the Excise Tax.  Payments shall be reduced in the following order: (i) any cash severance amounts; (ii) any other cash amounts payable to the Executive not specifically enumerated herein; (iii) the value as parachute payments of the acceleration of vesting of stock options; (iv) the value as parachute payments of the acceleration of vesting of any restricted stock; (v) the value as parachute payments of the acceleration of vesting of any restricted stock units; (vi) the value as parachute payments of the acceleration of any equity not covered by (iii), (iv) or (v) above; (vii) the value as parachute payments of any other benefits received.  The independent registered public accounting firm that audits the Company’s consolidated financial statements (the “Accountants”) shall determine whether any of the Payments are “parachute payments” within the meaning of Code Section 280G(b)(2) of the Code that will be subject to the Excise Tax, the amount of such Excise Tax and any other determinations required under this Section 4.  The determination by the Accountants shall be binding and final upon the Company and the Executive, except to the extent affected by Internal Revenue Service determinations.  The Executive shall promptly provide the Company with copies of any written communications and summaries of verbal communications with any taxing authority regarding the Excise Tax covered by this Section 4.

5.            Code Section 409A.  For purposes of this Agreement, the terms “employment termination” and “termination from employment” mean “separation from service” as defined under Code Section 409A.  It also is intended that Payments shall be exempt from or in compliance with Code Section 409A, and the terms of this Agreement are to be interpreted and construed accordingly.  The Parties agree to negotiate in good faith and jointly execute an amendment to this Agreement if necessary to either exempt a payment from or comply with Section 409A, as applicable.  Each installment Payment is to be treated as a separate “payment” for purposes of Code Section 409A.  In no event shall the Company be responsible for any tax or penalty owed by the Executive, Executive’s spouse or beneficiary with regard to any Payments provided herein.  Notwithstanding the foregoing, if any Payments hereunder are subject to Code Section 409A and at the time of Executive’s separation from service Executive is a “specified employee,” as defined under Code Section 409A, some or all of the Payments, as applicable, shall be suspended until the earlier of (a) the business day following the sixth-month anniversary of the date when Executive’s separation from service becomes effective, and (b) the Executive’s death (the “Delayed Payment Date”).  The Company shall provide the Executive with a lump sum payment on the Delayed Payment Date equal to the aggregate value of the suspended Payments, with any remaining Payments occurring on their regularly scheduled dates.

 

6.           Confidentiality; Non-Competition and Non-Disclosure; Executive Cooperation; Non-Disparagement.

 

6.1           Confidential Information.  The Executive acknowledges that, during the course of his employment with the Company, the Executive may be given access to or may become acquainted with Confidential Information (as hereinafter defined) of the Company.  As used in this Section 6.1, “Confidential Information” of the Company means all trade secrets, business plans, price lists, supplier lists, customer lists, marketing plans, financial information, software, source code and all other compilations of information which relate to the business of the Company, or to any of its subsidiaries, and which have not been disclosed by the Company to the public, or which are not otherwise generally available to the public.

    

The Executive acknowledges that the Confidential Information of the Company constitutes valuable, confidential, special and unique assets of the Company and its subsidiaries.  The Executive agrees that, during the course of his employment with the Company, or at any time thereafter, he shall not, directly or indirectly, communicate, disclose or divulge to any Person (as such term is hereinafter defined), or use for his benefit or the benefit of any Person, in any manner, any Confidential Information of the Company or its subsidiaries acquired during his employment with the Company or any other confidential information concerning the conduct and details of the businesses of the Company and its subsidiaries, except as required in the course of his employment with the Company or as otherwise may be required by law.  For purposes if this Agreement, “Person” shall mean any individual, partnership, corporation, trust, unincorporated association, joint venture, limited liability company or other entity.

  

  

  

  

 

6.2           Noncompetition.  During the term of this Agreement and for a period of one year following the termination of the Executive's employment for any reason, the Executive shall not, except with the Company's express prior written consent, for the benefit of any Person (including the Executive) directly or indirectly (a) render any advisory or consulting services to or otherwise become employed by, participate or engage in, or acquire an interest in (whether as an owner, shareholder, partner, officer, independent contractor, employee or otherwise) an enterprise that is competitive with or similar to any of the businesses of the Company, (b) is employed by, consults with or otherwise becomes associated with any client of the Company contributing to the loss of income by the Company from that client, or (c) engages in any other activity calculated to damage the Company’s best interests, including without limitation, soliciting clients.

 

6.3           Non-Solicitation.  During the term of this Agreement (including any extension thereof) and for a period of one year following the termination of the Executive’s employment for any reason, the Executive shall not, except with the Company’s express prior written consent, for the benefit of any Person (including the Executive) solicit, induce or encourage any employee of the Company, or any of its subsidiaries, to leave the employment of the Company or solicit, induce or encourage any customer, or client of the Company, or any of its subsidiaries, to cease or reduce its business with the Company or its subsidiaries.

  

6.4          Cooperation With Regard to Litigation. Executive agrees to cooperate with the Company, during the term and thereafter, by making himself available to testify on behalf of the Company or any subsidiary of the Company, in any action, suit, or proceeding, and to assist the Company, or any subsidiary of the Company, in any such action, suit, or proceeding, by providing information and meeting and consulting with the Board or its representatives or counsel, or representatives or counsel to the Company, or any subsidiary or affiliate of the Company, as may be reasonably requested and after taking into account Executive’s post-termination responsibilities and obligations.

6.5           Non-Disparagement. Executive shall not, at any time during the term of this Agreement and thereafter make statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take any action which may, directly or indirectly, disparage or be damaging to the Company, its subsidiaries or affiliates or their respective officers, directors, employees, advisors, businesses or reputations.  Notwithstanding the foregoing, nothing in this Agreement shall preclude Executive or his successor or members of the Board of Directors from making truthful statements that are required by applicable law, regulation or legal process.

 

6.6           Survival. The provisions of this Section 6 shall survive the termination or expiration of this Agreement.

 

6.7           Remedies.  Executive agrees that any breach of the terms in Section 6 would result in irreparable injury and damage to the Company for which the Company would have no adequate remedy at law.  Executive therefore also agrees that in the event of said breach or any threat of breach and notwithstanding Section 7 the Company shall be entitled to an immediate injunction and restraining order from a court of competent jurisdiction to prevent such breach and/or threatened breach and/or continued breach by Executive and/or any and all persons and/or entities acting for and/or with Executive, without having to prove damages.  The availability of injunctive relief shall be in addition to any other remedies to which the Company may be entitled at law or in equity, but remedies other than injunctive relief may only be pursued in an arbitration brought in accordance with Section 7.  The terms of this paragraph shall not prevent the Company from pursuing in an arbitration any other available remedies for any breach or threatened breach of this Section 6, including but not limited to the recovery of damages from Executive. 

  

  

  

 

 7.           Governing Law; Disputes; Arbitration.

 

7.1           Governing Law.  This Agreement is governed by and is to be construed, administered, and enforced in accordance with the laws of the State of Michigan.

 

7.2           Arbitration.  Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration in the City of Detroit, Michigan by three arbitrators in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association. Each Party shall bear its or his costs and expenses arising in connection with any arbitration proceeding pursuant to this Section 7.  Notwithstanding any provision in this Section 7, Executive shall be paid compensation due and owing under this Agreement during the pendency of any dispute or controversy arising under or in connection with this Agreement.

 

7.3           WAIVER OF JURY TRIAL. TO THE EXTENT APPLICABLE, EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL FOR ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT.  

 

8.           Miscellaneous.

 

8.1           Integration.  Excluding the terms, conditions and existing obligations under the Consulting Agreement, this Agreement cancels and supersedes any and all prior agreements and understandings between the Parties with respect to the employment of the Executive by the Company.  This Agreement constitutes the entire agreement among the Parties with respect to the matters herein, and no modification or waiver of any provision shall be effective unless in writing and signed by the Parties.  

  

8.2           Beneficiaries.  The Executive shall be entitled to designate a beneficiary or beneficiaries to receive any compensation or benefits provided under this Agreement following Executive’s death.

  

8.3           Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of Executive, his heirs, executors, administrators and beneficiaries, and shall be binding upon and inure to the benefit of the Company and its successors and assigns.

 

9.             D&O Insurance.

 

The Company shall maintain directors’ and officers’ liability insurance during the term of this Agreement and for a period of six years thereafter, covering acts and omissions of Executive during the term of this Agreement, on terms substantially no less favorable than those in effect on the Effective Date.

 

10.           Definitions Relating to Termination Events. 

  

  

  

 

10.1         Cause.  For purposes of this Agreement, “Cause” shall mean a finding by a majority of the Board of Directors of a material violation by the Executive of Compuware’s Employee Code of Conduct.

 

10.2         Disability.  For purposes of this Agreement, “Disability” means total and permanent disability, as defined in Code Section 22(e); provided, however, that for purposes of a Code Section 409A distribution event, “disability” shall be defined under Code Section 409A and regulatory guidance issued thereunder.

 

IN WITNESS WHEREOF, the parties hereto have signed their names as of the day and year first above written.

 

    

	 	COMPUWARE CORPORATION	 
	 	 	 	 
	 	By:	
/s/ Robert C. Paul

	 
	 	Name: 	
Robert C. Paul

	 
	 	Title:	Chief Executive Officer	 
	 	 	 	 
	 	EXECUTIVE:	 	 
	 	 	 	 
	 	/s/ Peter Karmanos, Jr.	 
	 	Peter Karmanos, Jr.ex10_1.htm

Exhibit 10.1

 

NINTH AMENDMENT TO SECOND AMENDED

AND RESTATED CREDIT AGREEMENT

This NINTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Ninth Amendment”) is entered into effective as of September 7, 2011, among MARTIN OPERATING PARTNERSHIP L.P., a Delaware limited partnership, as borrower (the “Borrower”), MARTIN MIDSTREAM PARTNERS L.P., a Delaware limited partnership (the “MLP”), the Lenders (as defined below) party hereto, and ROYAL BANK OF CANADA, as administrative agent (the “Administrative Agent”) and collateral agent for the Lenders and as L/C Issuer and a Lender.

WHEREAS, the Borrower, the MLP, the Administrative Agent, and the lenders party thereto (the “Lenders”) are parties to that certain Second Amended and Restated Credit Agreement dated as of November 10, 2005, as amended by that certain First Amendment to Second Amended and Restated Credit Agreement dated as of June 30, 2006, that certain Second Amendment to Second Amended and Restated Credit Agreement dated as of December 28, 2007, that certain Third Amendment to Second Amended and Restated Credit Agreement dated as of September 24, 2008, that certain Fourth Amendment to Second Amended and Restated Credit Agreement dated as of December 21, 2009, that certain Fifth Amendment to Second Amended and Restated Credit Agreement dated as of January 14, 2010, that certain Sixth Amendment to Second Amended and Restated Credit Agreement dated as of March 26, 2010, that certain Waiver and Seventh Amendment to Second Amended and Restated Credit Agreement dated as of April 15, 2011, and that certain Eighth Amendment to Second Amended and Restated Credit Agreement dated as of May 31, 2011 (as amended, and as further renewed, extended, amended or restated, the “Credit Agreement”);

WHEREAS, the Borrower has notified the Administrative Agent that the following transactions may occur: (a) Redbird Gas Storage LLC, a Delaware limited liability company (“Redbird”), may distribute all of the Category A membership interests it owns in Cardinal Gas Storage Partners LLC, a Delaware limited liability company (“Cardinal”), to the Borrower and to Martin Underground Storage, Inc., a Texas corporation (“Martin Underground”), (b) the Borrower may purchase from Martin Underground all of its Category A membership interests in Cardinal, at which point the Borrower will own approximately 37.27% of the membership interests in Cardinal, and (c) Redbird would be dissolved (the “Cardinal Transactions”);

WHEREAS, the Borrower has notified the Administrative Agent that prior to the consummation of the Cardinal Transactions, upon the occurrence of capital calls by Cardinal to Redbird relating to the Redbird Class A membership interest, the Borrower may make capital contributions to Redbird in consideration for an increase in the percentage of the Class A membership interests in Redbird owned by the Borrower and a corresponding decrease in the Class A membership interests in Redbird owned by Martin Underground and any other member of Redbird; and

WHEREAS, in connection therewith, the Borrower has requested that the Administrative Agent and the Required Lenders amend the Credit Agreement to make certain changes described herein, subject to the terms and conditions hereinafter set forth.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 1.       Definitions.  Unless otherwise defined in this Ninth Amendment, terms used in this Ninth Amendment that are defined in the Credit Agreement shall have the meanings assigned to such terms in the Credit Agreement.  The interpretive provisions set forth in Section 1.02 of the Credit Agreement shall apply to this Ninth Amendment.

SECTION 2.       Amendment to the Credit Agreement.  Subject to satisfaction of the conditions precedent set forth in Section 5 of this Ninth Amendment, the Credit Agreement is amended as follows:

  

  

  

 

(a)                       Section 1.01 of the Credit Agreement (Defined Terms) is amended by inserting the following new definitions alphabetically to read as follows:

“Capital Acquisition” means each acquisition by the Borrower of Class A membership interests in Redbird received pursuant to the Redbird LLC Agreement as consideration for the payment by the Borrower of one or more capital calls by Cardinal to Redbird (in each case with respect to the amount of such capital call by Cardinal that relates to the Class A membership interests in Redbird owned by Martin Underground at the time of the applicable capital call).

“Capital Acquisition Percentage of Class A Interests” means the percentage of the Class A membership interests in Redbird owned by the Borrower as provided in the Redbird LLC Agreement after any Capital Acquisition equal to (a) total cash consideration paid by the Borrower for all Capital Acquisitions made on or prior to the date of determination, including the applicable Capital Acquisition, divided by (b) the sum of (i) total cash consideration paid by the Borrower for all Capital Acquisitions made on or prior to the date of determination, including the applicable Capital Acquisition plus (ii) the amount of all capital contributions made in Redbird by Martin Underground or any other member of Redbird for investment in Cardinal after the Ninth Amendment Effective Date plus (iii) $150 million.

“Cardinal” means Cardinal Gas Storage Partners LLC, a Delaware limited liability company.

 “Cardinal Acquisition Date” means the date on which the Cardinal Transactions Conditions are satisfied and the Cardinal Transactions are consummated.

“Cardinal Transactions” means (a) Redbird’s distribution of all of the Category A membership interests it owns in Cardinal to the Borrower and to Martin Underground, (b) the Borrower’s purchase from Martin Underground of all of its Category A membership interests in Cardinal, at which point the Borrower will own approximately 37.27% of the membership interests in Cardinal, and (c) the dissolution of Redbird.

“Cardinal Transactions Conditions” means, collectively, the following conditions to be satisfied in full substantially contemporaneously with the consummation of the Cardinal Transactions:

(a) receipt by the Administrative Agent of a certificate signed by a Responsible Officer of the Borrower demonstrating compliance with Section 7.02(a)(ix) and Section 7.02(b) of the Credit Agreement;

(b) receipt by the Administrative Agent of evidence satisfactory to the Administrative Agent that the Borrower has acquired all of Martin Underground’s Category A membership interests in Cardinal in accordance with acquisition documents in form and substance reasonably satisfactory to the Administrative Agent; and

(c) at least 75% of the purchase price for the Category A membership interests in Cardinal shall be payable by the issuance of equity interests in the MLP and the balance shall be payable in cash.

“Martin Underground” means Martin Underground Storage, Inc., a Texas corporation and a Martin Party.

“Ninth Amendment Effective Date” means September 7, 2011.

“Redbird LLC Agreement” means the Amended and Restated Limited Liability Company Agreement of Redbird, dated as of September 7, 2011.

(b)                       Section 1.02(a) of the Credit Agreement (Other Interpretive Provisions) is amended by inserting the following sentence at the end thereof:

 

“The meanings of defined terms in any Loan Document are equally applicable to the singular and plural forms of such defined terms.”

  

  

  

 

(c)                       Clause (a)(ix) of Section 7.02 of the Credit Agreement (Investments and Acquisitions) is amended in its entirety to read as set forth on Annex A attached hereto.

(d)                       Clause (d) of Section 7.08 of the Credit Agreement (Restricted Payments; Distributions and Redemptions) is amended in its entirety as follows:

“(d)      the MLP may declare and make dividend payments or other distributions payable solely in any equity interests representing limited partner interests in the MLP, including any common units, any subordinated common units, subordinated Class B Units and Class C Units.”

(e)                       Section 7.16 of the Credit Agreement (Certain Matters Relating to Waskom, PIPE and other Permitted Joint Ventures) is amended in its entirety as follows:

“(a)       Vote its equity interests in any Permitted Joint Venture (other than Cardinal) to enable such Permitted Joint Venture to, or otherwise permit any Permitted Joint Venture (other than Cardinal) to, (i) incur, assume or otherwise be liable in respect of any Indebtedness other than Indebtedness not to exceed $2,000,000 in the aggregate at any time outstanding for all Permitted Joint Ventures other than Cardinal (“Permitted Joint Venture Indebtedness”); or (ii) create or suffer to exist any Liens on any of their property, assets or revenues, whether now owned or hereafter acquired, other than (A) Liens of the type permitted by Section 7.01 (other than clauses (b), (i), (j), (k) and (n) thereof), and (B) other Liens securing obligations not to exceed $2,000,000 in the aggregate at any time outstanding for all Permitted Joint Ventures other than Cardinal, provided that such Permitted Joint Venture is in compliance with its obligations so secured (collectively, “Permitted Joint Venture Liens”); or

(b)         (i) enter into any Contractual Obligation that limits the ability of any Permitted Joint Venture to make Restricted Payments to the Borrower (or to the Subsidiary or Subsidiaries of the Borrower that own equity interests in such Permitted Joint Venture) or to otherwise transfer property to the Borrower or such Subsidiaries, provided that the foregoing clause (i) shall not apply to customary conditions of the type contained in the existing Organization Documents of PIPE and Waskom as in effect on the Closing Date or of Cardinal on the Ninth Amendment Effective Date, (ii) vote its equity interests in any Permitted Joint Venture (other than Cardinal) to enable such Permitted Joint Venture to enter into, or otherwise consent to such Permitted Joint Venture entering into, any such Contractual Obligation; provided that the foregoing clause (ii) shall not apply to (A) restrictions and conditions contained in agreements relating to a Disposition to a Person who is not an Affiliate of a Company pending such Disposition, provided such restrictions and conditions apply only to the property or assets to be subject to such Disposition, and (B) customary provisions in leases and other contracts restricting the assignment thereof.”

(f)            Subject to the satisfaction of the Cardinal Transactions Conditions, Section 8.01 of the Credit Agreement (Events of Default) is amended by replacing “; or” at the end of clause (o) with “.”, inserting “or” after the semicolon at the end of clause (n), and deleting clause (p) in its entirety.

SECTION 3.       Amendments to Schedule 6.17 to the Credit Agreement.  Subject to the satisfaction of the conditions precedent set forth in Section 5 of this Ninth Amendment, Schedule 6.17 to the Credit Agreement is amended in its entirety to read as set forth on Annex B attached hereto.

 

                SECTION 4.        Waiver.  Subject to satisfaction of the conditions precedent set forth in Section 5 of this Ninth Amendment, the Lenders hereby waive the provisions in Sections 6.15 and 6.17 of the Credit Agreement, which, subject to Schedule 6.17, require the execution and delivery of certain documents, including a Guaranty and other Collateral Documents (including a Subsidiary Security Agreement) by Redbird, but such waiver shall continue only so long as Redbird is not Wholly-Owned by the Borrower, the MLP, or a Subsidiary of the Borrower or the MLP; provided, that, Borrower’s membership interests in Redbird shall be pledged to the Collateral Agent for the benefit of the Lenders.

  

  

  

 

SECTION 5.       Conditions of Effectiveness.  This Ninth Amendment shall not be effective until the date (such date, the “Ninth Amendment Effective Date”) each of the following conditions precedent has been satisfied in full:

(a)                       receipt by the Administrative Agent of a counterpart of this Ninth Amendment executed by each of the parties hereto (which may be by telecopy or other electronic transmission);

(b)                       receipt by the Administrative Agent of a certificate signed by a Responsible Officer of the Borrower certifying that, at the time of and after giving effect to this Ninth Amendment, (i) the representations and warranties contained in Article V of the Credit Agreement are true and correct in all material respects on and as of such date (unless such representations and warranties specifically refer to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date), and (ii) no Default or Event of Default has occurred and is continuing as of such date;

(c)                       receipt by the Administrative Agent of payment of (i) fees to the Lenders party to this Ninth Amendment, and (ii) reasonable Attorney Costs of the Administrative Agent; and

(d)                       receipt by the Administrative Agent of other documents as may be reasonably required by the Administrative Agent.

SECTION 6.       Representations and Warranties.  In order to induce the Administrative Agent and the Lenders to enter into this Ninth Amendment, each Loan Party represents and warrants to the Administrative Agent and to each Lender that:

(a)            This Ninth Amendment, the Credit Agreement as amended hereby, and each Loan Document have been duly authorized, executed, and delivered by the Borrower and the applicable Loan Parties and constitute their legal, valid, and binding obligations enforceable in accordance with their respective terms (subject, as to the enforcement of remedies, to applicable bankruptcy, reorganization, insolvency, moratorium, and similar laws affecting creditors’ rights generally and to general principles of equity).

(b)            The representations and warranties set forth in Article V of the Credit Agreement and in the Collateral Documents are true and correct in all material respects on and as of the Ninth Amendment Effective Date, at the time of and after giving effect to this Ninth Amendment, as if made on and as of the Ninth Amendment Effective Date except to the extent such representations and warranties relate solely to an earlier date.

(c)            As of the date hereof, at the time of and after giving effect to this Ninth Amendment, no Default or Event of Default has occurred and is continuing.

SECTION 7.       Effect of Amendment.

(a)           This Ninth Amendment (i) except as expressly provided herein, shall not be deemed to be a consent to the modification or waiver of any other term or condition of the Credit Agreement or of any of the instruments or agreements referred to therein, and (ii) shall not prejudice any right or rights which the Administrative Agent, the Collateral Agent, or the Lenders may now or hereafter have under or in connection with the Credit Agreement, as amended by this Ninth Amendment.  Except as otherwise expressly provided by this Ninth Amendment, all of the terms, conditions and provisions of the Credit Agreement shall remain the same.  It is declared and agreed by each of the parties hereto that the Credit Agreement, as amended hereby, shall continue in full force and effect, and that this Ninth Amendment and such Credit Agreement shall be read and construed as one instrument.

(b)           Each of the undersigned Guarantors is executing this Ninth Amendment in order to evidence that it hereby consents to and accepts the terms and conditions of this Ninth Amendment and the transactions contemplated thereby, agrees to be bound by the terms and conditions hereof, and ratifies and confirms that each Guaranty and each of the other Loan Documents to which it is a party is, and shall remain, in full force and effect after giving effect to this Ninth Amendment.  The Borrower and each of the other Loan Parties hereby confirm and agree that all Liens and other security now or hereafter held by the Collateral Agent for the benefit of the Lenders as security for payment of the Obligations are the legal, valid, and binding obligations of the Borrower and the Loan Parties, remain in full force and effect, are unimpaired by this Ninth Amendment, and are hereby ratified and confirmed as security for payment of the Obligations.

  

  

  

 

SECTION 8.       Miscellaneous.  This Ninth Amendment shall for all purposes be construed in accordance with and governed by the laws of the State of New York and applicable federal law.  The captions in this Ninth Amendment are for convenience of reference only and shall not define or limit the provisions hereof.  This Ninth Amendment may be executed in separate counterparts, each of which when so executed and delivered shall be an original, but all of which together shall constitute one instrument.  In proving this Ninth Amendment, it shall not be necessary to produce or account for more than one such counterpart.  Delivery of an executed counterpart of this Ninth Amendment by telecopier or other electronic means shall be effective as delivery of a manually executed counterpart of this Ninth Amendment.

SECTION 9.       Entire Agreement.  THE CREDIT AGREEMENT (AS AMENDED BY THIS NINTH AMENDMENT) AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

SECTION 10.    Additional Further Assurances.  The parties hereto each agree to execute from time to time such further documents as may be necessary to implement the terms of this Ninth Amendment.

Remainder of Page Intentionally Blank.

Signature Pages to Follow.

  

  

  

 

IN WITNESS WHEREOF, the parties hereto have caused this Ninth Amendment to be duly executed and delivered by their proper and duly authorized officers as of the date and year first above written.

 

	
MARTIN OPERATING PARTNERSHIP L.P.,

	
a Delaware limited partnership, as Borrower

	 	 
	
By: 

	
MARTIN OPERATING GP LLC,

	 	
its General Partner

	 	 
	 	
By: 

	
MARTIN MIDSTREAM PARTNERS L.P.,

	 	 	its Sole Member
	 	 	 
	 	 	By:	MARTIN MIDSTREAM GP LLC,
	 	 	 	its General Partner
	 	 	 	 
	 	 	 	By:	/s/ Robert D. Bondurant
	 	 	 	 	Executive Vice President and Chief
	 	 	 	 	Financial Officer

 

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

 

	
MARTIN MIDSTREAM  PARTNERS L.P.,

	
a Delaware limited partnership, as a Guarantor

	 	 
	
By: 

	

MARTIN MIDSTREAM GP LLC,

	 	
its General Partner

	 	 
	 	
By: 

	
/s/ Robert D. Bondurant

	 	 	Robert D. Bondurant
	 	 	Executive Vice President and Chief
	 	 	Financial Officer

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

 

	
MARTIN OPERATING GP LLC,

	
a Delaware limited liability company, as a Guarantor

	 	 
	
By: 

	

MARTIN MIDSTREAM PARTNERS L.P.,

	 	
its Sole Member

	 	 
	 	
By: 

	
MARTIN MIDSTREAM PARTNERS L.P.,

	 	 	its General Partner
	 	 	 
	 	 	By:	/s/ Robert D. Bondurant
	 	 	 	Robert D. Bondurant
	 	 	 	Executive Vice President and Chief
	 	 	 	Financial Officer

 

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

 

	

PRISM GAS SYSTEMS I, L.P., a Texas limited partnership, as a Guarantor

	 	 
	 	
By: 

	

Prism Gas Systems GP, L.L.C., its General Partner

	 	 
	 	
By: 

	/s/ Robert D. Bondurant
	 	Robert D. Bondurant
	 	Treasurer

 

	

PRISM GAS SYSTEMS GP, L.L.C., as a Guarantor

	 	 
	 	 
	
By: 

	/s/ Robert D. Bondurant
	 	Robert D. Bondurant
	 	Treasurer

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

 

	

PRISM GULF COAST SYSTEMS, L.L.C., as a Guarantor

	 	 
	 	 
	
By: 

	/s/ Robert D. Bondurant
	 	Robert D. Bondurant
	 	Treasurer

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

    

  

  

  

	

MCLEOD GAS GATHERING AND PROCESSING

	
COMPANY, L.L.C., as a Guarantor

	 	 
	 	 
	
By: 

	/s/ Ruben S. Martin
	 	Ruben S. Martin
	 	Sole Manager

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

 

	

WOODLAWN PIPELINE CO., INC.,

	

a Texas corporation, as a Guarantor

	 	 
	 	 
	
By: 

	/s/ Robert D. Bondurant
	 	Robert D. Bondurant
	 	Executive Vice President

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

 

	

PRISM LIQUIDS PIPELINE, LLC,

	

Texas limited liability company, as a Guarantor

	 	 
	 	 
	
By: 

	/s/ Robert D. Bondurant
	 	Robert D. Bondurant
	 	Executive Vice President

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

 

	 	
ROYAL BANK OF CANADA, as Administrative Agent and Collateral Agent

	 	 	 	 
	
 

	
By: 

	/s/Ann Hurley	 
	 	 	Name:  Ann Hurley	 
	 	 	Title:    Manager, Agency	 

 

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

 

	 	

ROYAL BANK OF CANADA, as a Lender and as L/C Issuer

	 	 	 	 
	
 

	
By: 

	/s/ Jason S. York	 
	 	 	Jason S. York	 
	 	 	Authorized Signatory	 

 

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

  

  

  

 

	 	

WELLS FARGO BANK, N.A., as Syndication Agent and a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Thomas E. Stelmar, Jr.	 
	 	 	Name:   Thomas E. Stelmar, Jr.	 
	 	 	Title:     Vice President	 

 

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

       

  

  

  

	 	

THE ROYAL BANK OF SCOTLAND PLC, as Co-Documentation Agent and a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Matthew Allen	 
	 	 	Name:   Matthew Allen	 
	 	 	Title:     Authorized Signatory	 

 

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

       

	 	

REGIONS BANK, as Co-Documentation Agent and a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Randy Petersen	 
	 	 	Name:   Randy Petersen	 
	 	 	Title:     Senior Vice President	 

 

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

	 	

UBS LOAN FINANCE, LLC, as Co-Documentation Agent and a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Mary E. Evans	 
	 	 	Name:   Mary E. Evans	 
	 	 	Title:     Associate Director	 

 

	
 

	
By: 

	/s/ Joselin Fernandes	 
	 	 	Name:   Joselin Fernandes	 
	 	 	Title:     Associate Director

 

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

	 	

SUNTRUST BANK, as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ Carmen Malizia	 
	 	 	Name:   Carmen Malizia	 
	 	 	Title:     Vice President

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

	 	

COMPASS BANK, as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ Brandon Kelley	 
	 	 	Name:   Brandon Kelley	 
	 	 	Title:     Senior Vice President

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

	 	

COMERICA BANK, as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ Brian Enzler	 
	 	 	Name:   Brian Enzler	 
	 	 	Title:     Vice President

 

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

 

	 	

BANK OF AMERICA, N.A., as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ David A. Batson	 
	 	 	Name:   David A. Batson	 
	 	 	Title:     Senior Vice President

 

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

 

	 	

CITIBANK, N.A., as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ Stephen Oglesby	 
	 	 	Name:   Stephen Oglesby	 
	 	 	Title:     Region Manager

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

 

	 	

NATIXIS, as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ Louis P. Laville	 
	 	 	Name:   Louis P. Laville	 
	 	 	Title:     Managing Director

 

 

	
 

	
By: 

	/s/ Daniel Payer	 
	 	 	Name:   Daniel Payer	 
	 	 	Title:     Managing Director

 

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

 

	 	

RAYMOND JAMES BANK, FSB, as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ Garrett McKinnon	 
	 	 	Name:   Garrett McKinnon	 
	 	 	Title:     Senior Vice President

 

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

	 	

BRANCH BANKING AND TRUST COMPANY, as a Lender

	 
	 	 	 	 
	
 

	
By: 

	/s/ Mark B. Grover	 
	 	 	Name:   Mark B. Grover	 
	 	 	Title:     Senior Vice President

 

 

[SIGNATURE PAGE TO THE NINTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT]

 

  

  

  

 

ANNEX A

Section 7.02(a)(ix)

(ix)           Investments by the Borrower and its Subsidiaries in Permitted Joint Ventures (other than Waskom and PIPE), provided that:

(A)            the Borrower shall be in pro forma compliance with the covenants set forth in this Section 7.02 and Section 7.15 at the time that such Investment is made;

(B)           at all times during which any Investments permitted by this clause (B) are outstanding, the book value of Collateral in which the Administrative Agent has a Lien in accordance with Section 7.16 shall not be less than 50% of the book value of the total assets of the MLP and its Subsidiaries (calculated on a pro forma basis based on the book value as of the close of the most recent fiscal quarter and taking into account on a pro forma basis all Investments made since such quarter-end);

(C)           the aggregate outstanding amount of Investments made after the Ninth Amendment Effective Date in such Permitted Joint Ventures (other than Redbird and Cardinal) shall not exceed $50,000,000 (as such amount may be increased on a dollar-for-dollar basis by Returned Capital with respect to any such Investment);

(D)           with respect to Investments made in Redbird before the Cardinal Acquisition Date:

(x)           the aggregate outstanding amount of such Investments made before the Ninth Amendment Effective Date shall not exceed $65,000,000, and

(y)           subject to clause (F) below, the aggregate outstanding amount of such Investments made on or after the Ninth Amendment Effective Date shall not exceed (1) $120,000,000 (as such amount may be increased on a dollar-for-dollar basis by Returned Capital with respect to such Investment) with respect to capital calls in connection with the Class A membership interest in Redbird owned by the Borrower and with respect to Capital Acquisitions with the Borrower thereafter owning the Capital Acquisition Percentage of Class A Interests after each applicable Capital Acquisition (with all such Class A membership interests of Redbird so acquired by the Borrower pledged as security for the Obligations as provided in Section 6.17), and (2) $15,000,000 (as such amount may be increased on a dollar-for-dollar basis by Returned Capital with respect to such Investment) with respect to capital calls in connection with the Class B membership interest in Redbird owned by the Borrower;

(E)           with respect to Investments made in Redbird and Cardinal on or after the Cardinal Acquisition Date, subject to clause (F) below, the aggregate outstanding amount of such Investments, when aggregated with all such Investments made before the Cardinal Acquisition Date, shall not exceed $350,000,000;

(F)           notwithstanding anything to the contrary set forth in clauses (D) and (E) above, prior to the receipt by the Loan Parties of Net Cash Proceeds equal or greater than $100,000,000 in the aggregate after the Ninth Amendment Effective Date from either (x) the issuance or incurrence of Indebtedness or (y) an equity issuance, neither the Borrower nor any Subsidiary shall use Loan proceeds of more than (1) $95,000,000 on or prior to the Cardinal Acquisition Date or (2) $60,000,000 after the Cardinal Acquisition Date (for the avoidance of doubt, including amounts borrowed on or prior to the Cardinal Acquisition Date) for the purpose of making Investments permitted pursuant to clauses (D)(y) or (E) above; and

(G)           the Borrower shall deliver to the Administrative Agent at the time such Investment is made a certificate demonstrating compliance with this Section 7.02(a)(ix) and Section 7.02(b); provided, that, notwithstanding anything herein to the contrary, absent a specific request by the Administrative Agent, the Borrower shall not be required to demonstrate compliance with Section 7.02(b) by delivery of a written certificate for any Capital Acquisition for which the total consideration is $5,000,000 or less; and

 

Annex A to Ninth Amendment to Second Amended

and Restated Credit Agreement

 

  

  

  

 

ANNEX B

Schedule 6.17

SCHEDULE 6.17

NON-PLEDGEABLE ASSETS

Assets:

	
Description of Assets

	
Explanation Why May

Not be Pledged

	
When Assets must be 

Pledged/Mortgaged

	
1.           Prism Gas Systems I, L.P. ownership interests in Waskom Gas Processing Company

	
Waskom Gas Processing Company Partnership Agreement grants right of first refusal to partner

	
At such time as (x) Waskom Gas Processing Company is a wholly owned direct or indirect Subsidiary of the Borrower or (y) partner does not have right of first refusal

	
2.           Prism Gas Systems, Inc.  ownership interests in Waskom Gas Processing Company

	
same as above

	
same

	
3.            Assets owned by Prism Gas Systems, Inc.

 

 

	
For tax reasons, Prism Gas Systems, Inc. has adopted a plan of dissolution, and will be dissolved no earlier than one year after the Closing Date, and no later than one year and one week after the Closing Date.  Prism Gas Systems, Inc. has no assets other than the 1% equity interest in Waskom Gas Processing Company (this 1% equity interest cannot be pledged – see the analysis in point 1 above), and Prism owns no other assets, other than cash of less than $25,000

	
 One year and one week after the Closing Date, if Prism Gas Systems, Inc. has not been dissolved

	
4.           Martin Operating Partnership L.P.’s or Redbird Gas Storage LLC’s ownership interest in Cardinal Gas Storage Partners LLC

	
Cardinal Gas Storage Partners LLC’s Limited Liability Company Agreement prohibits a pledge of the equity interest without consent of the other members

	
At such time as (x) Cardinal Gas Storage Partners LLC is a wholly owned direct or indirect Subsidiary of Martin Operating Partnership L.P., (y) Cardinal Gas Storage Partners LLC’s Limited Liability Company Agreement no longer prohibits a pledge of the equity interest, or (z) consent to pledge of the equity interest is obtained from the other members

	
5.           Whole of the vessel known as M 6000 (Official Number 1215084)

	
Previously pledged to RBS Asset Finance, Inc. pursuant to that certain First Preferred Ship Mortgage dated December 30, 2009, and filed at the National Vessel Documentation Center on December 30, 2009

	
Not applicable

Guaranty:

	
Description of Guaranty

	
Explanation Why May Not be Pledged

 

	
When Assets must be 

Pledged/Mortgaged

	
Guaranty by Prism Gas Systems, Inc.

	
The incurrence of debt (via a guaranty) by Prism Gas Systems, Inc. after it has already begun liquidation might have adverse tax consequences.

	
One year and one week after the Closing Date, if Prism Gas Systems, Inc. has not been dissolved

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