Document:

Exhibit 10(ww)

Exhibit 10(ww)

iCAD,
INC.

RESTRICTED STOCK AGREEMENT

To:

Date of Award:

This Agreement evidences the award to you on                      (the “Award Date”) of                      shares
(the “Shares”) of common stock, $.01 par value (“Common Stock”), of iCAD, Inc., a Delaware
corporation (the “Company”), pursuant to the Company’s 2007 Stock Incentive Plan (the “Plan”),
subject to certain restrictions specified below in Restrictions and Forfeiture. (While subject to
the Restrictions, this Agreement refers to the Shares as “Restricted Shares”.)

During the period commencing on the Award Date and terminating on                      (the “Restricted
Period”), except as otherwise provided herein, the Shares may not be sold, assigned, transferred,
pledged, or otherwise encumbered and are subject to forfeiture (the “Restrictions”).

Except as set forth below, the Restricted Period with respect to the Shares will lapse in
accordance with the vesting schedule set forth below (the “Vesting Schedule”). Subject to the
restrictions set forth in the Plan, the administrator of the Plan (as determined pursuant to
Section 2 of the Plan) (the “Administrator”) shall have the authority, in its discretion, to
accelerate the time at which any or all of the Restrictions shall lapse with respect to any Shares
subject thereto, or to remove any or all of such Restrictions, whenever the Administrator may
determine that such action is appropriate by reason of changes in applicable tax or other laws, or
other changes in circumstances occurring after the commencement of the Restricted Period.

In addition to the terms, conditions, and restrictions set forth in the Plan, the following terms,
conditions, and restrictions apply to the Restricted Shares:

	 	 	 
	Restrictions and
Forfeiture

	 	You may not sell, assign, pledge,
encumber, or otherwise transfer any
interest in the Restricted Shares
until the dates set forth in the
Vesting Schedule, at which point the
Restricted Shares will be referred
to as “Vested.”

 

 

 

	 	 	 
	Vesting Schedule

	 	Assuming you provide Continuous Service (as defined in
herein) as an employee of the Company or a Subsidiary
(as defined in the Plan) of the Company, all
Restrictions will lapse on the Restricted Shares on the
Vesting date or Vesting dates set forth in the schedule
below for the applicable grant of Restricted Shares and
they will become Vested. In addition, notwithstanding
the foregoing, Section 5.4.4(ii) of your employment
agreement with the Company provides for the vesting of
any then remaining unvested Restricted Shares under
certain circumstances within a specified period after
the occurrence of a Change in Control (as defined, for
purposes of this Award in Section 5.4.4(i) of your
employment agreement).

	 	 	 
	Vesting Schedule
	Vesting Date	 	Number of Restricted Shares that Vest
	 
	 	 

	 	 	 
	Continuous Service

	 	“Continuous Service,” as used herein, means the absence
of any interruption or termination of your service as
an employee of the Company or any Subsidiary (other
than a termination by the Company of your service as an
employee of the Company or any subsidiary of the
Company without “Cause” or a termination by you for
“Good Reason” as such terms are defined in your
employment agreement with the Company). If you are
employed by a Subsidiary of the Company, your
employment shall be deemed to have terminated on the
date your employer ceases to be a Subsidiary of the
Company, unless you are on that date transferred to the
Company or another Subsidiary of the Company. Service
shall not be considered interrupted in the case of sick
leave, military leave or any other leave of absence
approved by the Company or any then Subsidiary of the
Company. Your employment shall not be deemed to have
terminated if you are transferred from the Company to a
Subsidiary of the Company, or vice versa, or from one
Company Subsidiary to another Company Subsidiary.

 

Page 2 of 9

 

	 	 	 
	Share Certificates

	 	The Company will, at its option either (i) delay the
issuance of certificates representing the Shares (or
portion thereof) until the Shares become Vested or (ii)
will cause the Shares to be issued in book-entry form or
will issue a certificate (or certificates) in your name
with respect to the Shares, and will hold any such
certificate (or certificates) on deposit for your account
or cause the book-entry not to be credited as to free from
restrictions on your account until the expiration of the
Restricted Period with respect to the Shares represented
thereby. Any such certificate (or certificates) issued
prior to the end of the Restricted Period will contain
substantially the following legend:

	 
	 	 
	 

	 	“The transferability of this certificate and the shares of
stock represented hereby are subject to the terms and
conditions (including forfeiture and restrictions on
voting) contained in the 2007 Stock Incentive Plan of the
Company and a Restricted Stock Agreement, copies of which
are on file in the office of the Secretary of the Company.

	 
	 	 
	Additional

Conditions to
Issuance 
of Stock
Certificates

	 	You will not
receive the certificates representing the Restricted
Shares:

	 

	 	(a) During any period of time in which the Company deems
that the issuance of the Shares may violate a federal,
state, local, or foreign law, rule or regulation, or any
applicable securities exchange or listing rule or
agreement, or may cause the Company to be legally
obligated to issue or sell more shares than the Company is
legally entitled to issue or sell;

	 
	 	 
	 

	 	(b) Until you have paid or made suitable arrangements to
pay (i) all federal, state, local and foreign tax
withholding required by the Company in connection with the
issuance or the vesting of the Shares and (ii) the
employee’s portion of other federal, state, local and
foreign payroll and other taxes due in connection with the
issuance or the vesting of the Shares; or

	 
	 	 
	 

	 	(c) Until the Company has received a medallion guaranteed
stock power or stock powers in favor of the Company
executed by you.

	 
	 	 
	Cash Dividends

	 	Cash dividends, if any, paid on the Restricted Shares
shall be held by the Company for your account and paid to
you upon the expiration of the Restricted Period, except
as otherwise determined by the Administrator. All such
withheld dividends shall not earn interest, except as
otherwise determined by the Administrator. You will not
receive withheld cash dividends on any Restricted Shares
which are forfeited and all such cash dividends shall be
forfeited along with the Restricted Shares which are
forfeited.

	 
	 	 
	 

	 	Prior to vesting, you will have no voting rights with
respect to any Restricted Shares that have not Vested.

 

Page 3 of 9

 

	 	 	 
	Voting Rights 

Tax Withholding

	 	Unless you make an election under Section 83(b) of the
Internal Revenue Code of 1986, as amended (the “Code”)
and pay taxes in accordance with that election, you will
be taxed on the Shares as they become Vested and must
arrange to pay the taxes on this income. If the
Administrator so determines, arranging for paying the
withholding taxes may include your surrendering Shares
that otherwise would be released to you upon becoming
Vested or your surrendering Shares you already own. The
fair market value of the Shares you surrender, determined
as of the date when taxes would otherwise been withheld in
cash, will be applies as a credit against the withholding
taxes.

	 
	 	 
	 

	 	The Company shall have the right to withhold from your
compensation an amount sufficient to fulfill its or its
Subsidiary’s obligations for any applicable withholding
and employment taxes. Alternatively, the Company may
require you to pay to the Company the amount of any taxes
which the Company is required to withhold with respect to
the Shares, or, in lieu thereof, to retain without notice
a sufficient number of Shares to cover the amount required
to be withheld. The Company may withhold from any cash
dividends paid on the Restricted Shares an amount
sufficient to cover employment and withholding taxes owed
as a result of the dividend payment. The Company’s method
of satisfying its withholding obligations shall be solely
in the discretion of the Administrator, subject to
applicable federal, state, local and foreign laws. The
Company shall have a lien and security interest in the
Shares and any accumulated dividends to secure your
obligations hereunder.

	 
	 	 
	Tax

Representations

	 	You hereby represent and warrant to
the Company as follows:

	 

	 	(a) You have reviewed with your own tax advisors the
federal, state, local and foreign tax consequences of this
award and the transactions contemplated by this Agreement.
You are relying solely on such advisors and not on any
statements or representations of the Company or any of its
employees or agents.

	 
	 	 
	 

	 	(b) You understand that you (and not the Company) shall be
responsible for your own tax liability that may arise as a
result of this investment or the transactions contemplated
by this Agreement. You understand that Section 83 of the
Code taxes (as ordinary income) the fair market value of
the Shares as of the date any “restrictions” on the Shares
lapse. To the extent that an award hereunder is not
otherwise an exempt transaction for purposes of Section
16(b) of the Securities Exchange Act of 1934, as amended
(the “1934 Act”), with respect to officers, directors and
10% shareholders subject to Section 16 of the 1934 Act, a
“restriction” on the Shares includes for these purposes
the period after the award of the Shares during which such
officers, directors and 10% shareholders could be subject
to suit under Section 16(b) of the 1934 Act.
Alternatively, you understand that you may elect to be
taxed under Section 83(b) of the Code at the time the
Shares are awarded rather than when the restrictions on
the Shares lapse, or the Section 16(b) period expires, by
filing an election under Section 83(b) of the Code with
the Internal Revenue Service within thirty (30) days from
the date of the award.

 

Page 4 of 9

 

	 	 	 
	 

	 	YOU HEREBY ACKNOWLEDGE THAT IT IS YOUR SOLE RESPONSIBILITY
AND NOT THE COMPANY’S TO FILE TIMELY THE ELECTION
AVAILABLE TO YOU UNDER SECTION 83(B) OF THE CODE, EVEN IF
YOU REQUEST THAT THE COMPANY OR ITS REPRESENTATIVES MAKE
THIS FILING ON YOUR BEHALF
.
	 
	 	 
	Securities Law 

Representations

	 	The following two paragraphs shall be applicable if, on
the date of issuance of the Restricted Shares, no
registration statement and current prospectus under the
Securities Act of 1933, as amended (the “1933 Act”),
covers the Shares, and shall continue to be applicable for
so long as such registration has not occurred and such
current prospectus is not available:

	 
	 	 
	 

	 	(a) You hereby agree, warrant and represent that you will
acquire the Shares to be issued hereunder for your own
account for investment purposes only, and not with a view
to, or in connection with, any resale or other
distribution of any of such shares, except as hereafter
permitted. You further agree that you will not at any
time make any offer, sale, transfer, pledge or other
disposition of such Shares to be issued hereunder without
an effective registration statement under the 1933 Act,
and under any applicable state securities laws or an
opinion of counsel acceptable to the Company to the effect
that the proposed transaction will be exempt from such
registration. You agree to execute such instruments,
representations, acknowledgments and agreements as the
Company may, in its sole discretion, deem advisable to
avoid any violation of federal, state, local or foreign
law, rule or regulation, or any securities exchange rule
or listing agreement.

	 
	 	 
	 

	 	(b) The certificates for Shares to be issued to you
hereunder shall bear substantially the following legend:

“The shares represented by this certificate have not been
registered under the Securities Act of 1933, as amended,
or under applicable state securities laws. The shares
have been acquired for investment and may not be offered,
sold, transferred, pledged or otherwise disposed of
without an effective registration statement under the
Securities Act of 1933, as amended, and under any
applicable state securities laws or an opinion of counsel
acceptable to the Company that the proposed transaction
will be exempt from such registration.”

 

Page 5 of 9

 

	 	 	 
	Stock Dividend,
Stock Split and
Similar Capital
Changes

	 	In the event of any change in the outstanding shares of
the Common Stock of the Company by reason of a stock
dividend, stock split, combination of shares,
recapitalization, merger, consolidation, transfer of
assets, reorganization, conversion or what the
Administrator deems in its sole discretion to be similar
circumstances, the number and kind of shares subject to
this Agreement shall be appropriately adjusted in a manner
to be determined in the sole discretion of the
Administrator, whose decision shall be final, binding and
conclusive in the absence of clear and convincing evidence
of bad faith. Any shares of Common Stock or other
securities received, as a result of the foregoing, by you
with respect to the Restricted Shares shall be subject to
the same restrictions as the Restricted Shares, the
certificate or other instruments evidencing such shares of
Common Stock or other securities shall be legended and
deposited with the Company as provided above with respect
to the Restricted Shares, and any cash dividends received
with respect to such shares of Common Stock or other
securities shall be accumulated as provided above with
respect to the Restricted Shares.

	 
	 	 
	Non-Transferability

	 	Restricted
Shares are not transferable.

	 
	 	 
	No Effect on 

Employment

	 	Except as otherwise provided in your employment agreement
with the Company, nothing herein shall modify your status
as an at-will employee of the Company or any of its
Subsidiaries. Further, nothing herein guarantees you
employment for any specified period of time. This means
that, except as provided in the Employment Agreement,
either you or the Company or any of its Subsidiaries may
terminate your employment at any time for any reason, with
or without cause, or for no reason. You recognize that,
for instance, you may terminate your employment or the
Company or any of its Subsidiaries may terminate your
employment prior to the date on which your Shares become
vested.

	 
	 	 
	No Effect on 

Corporate 

Authority

	 	You understand and agree that the existence of this
Agreement will not affect in any way the right or power of
the Company or its stockholders to make or authorize any
or all adjustments, recapitalizations, reorganizations, or
other changes in the Company’s capital structure or its
business, or any merger or consolidation of the Company,
or any issuance of bonds, debentures, preferred or other
stocks with preferences ahead of or convertible into, or
otherwise affecting the common shares or the rights
thereof, or the dissolution or liquidation of the Company,
or any sale or transfer of all or any part of its assets
or business, or any other corporate act or proceeding,
whether of a similar character or otherwise.

 

Page 6 of 9

 

	 	 	 
	Arbitration

	 	Any dispute or disagreement between you and the Company
with respect to any portion of this Agreement or its
validity, construction, meaning, performance or your
rights hereunder shall, unless the Company in its sole
discretion determines otherwise, be settled by
arbitration, at a location designated by the Company, in
accordance with the Commercial Arbitration Rules of the
American Arbitration Association or its successor, as
amended from time to time. However, prior to submission
to arbitration you will attempt to resolve any disputes or
disagreements with the Company over this Agreement
amicably and informally, in good faith, for a period not
to exceed two weeks. Thereafter, the dispute or
disagreement will be submitted to arbitration. At any
time prior to a decision from the arbitrator(s) being
rendered, you and the Company may resolve the dispute by
settlement. You and the Company shall equally share the
costs charged by the American Arbitration Association or
its successor, but you and the Company shall otherwise be
solely responsible for your own respective counsel fees
and expenses. The decision of the arbitrator(s) shall be
made in writing, setting forth the award, the reasons for
the decision and award and shall be binding and conclusive
on you and the Company. Further, neither you nor the
Company shall appeal any such award. Judgment of a court
of competent jurisdiction may be entered upon the award
and may be enforced as such in accordance with the
provisions of the award.

	 
	 	 
	Governing Law

	 	The laws of the State of Delaware will govern all matters
relating to this Agreement, without regard to the
principles of conflict of laws.

	 
	 	 
	Notices

	 	Any notice you give to the Company must be in writing and
either hand-delivered or mailed to the office of the Chief
Executive Officer of the Company. If mailed, it should be
addressed to the Chief Executive Officer of the Company at
its then main headquarters. Any notice given to you will
be addressed to you at your address as reflected on the
personnel records of the Company. You and the Company may
change the address for notice by like notice to the other.
Notice will be deemed to have been duly delivered when
hand-delivered or, if mailed, on the day such notice is
postmarked.

	 
	 	 
	Agreement Subject
to Plan; Entire
Agreement

	 	This Agreement shall be subject to the terms of the Plan
in effect on the date hereof, which terms are hereby
incorporated herein by reference and made a part hereof.
This Agreement constitutes the entire understanding
between the Company and you with respect to the subject
matter hereof and no amendment, supplement or waiver of
this Agreement, in whole or in part, shall be binding upon
the Company unless in writing and signed by the Chief
Executive Officer/President of the Company

	 
	 	 
	Conflicting Terms

	 	Wherever a conflict may arise between the terms of this
Agreement and the terms of the Plan in effect on the date
hereof, the terms of the Plan will control.

 

Page 7 of 9

 

Please sign the attached acknowledgment of this Restricted Stock Agreement and return it to the
Company’s Secretary, thereby indicating your understanding of and agreement with its terms and
conditions.

	 	 	 	 	 
	 	iCAD, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

Page 8 of 9

 

	 	 	 	 	 

ACKNOWLEDGMENT

I hereby acknowledge receipt of a copy of the Plan. I hereby represent that I have read and
understood the terms and conditions of the Plan and of the Restricted Stock Agreement. I hereby
signify my understanding of, and my agreement with, the terms and conditions of the Plan and of the
Restricted Stock Agreement. I agree to accept as binding, conclusive, and final all decisions or
interpretations of the Administrator concerning any questions arising under the Plan with respect
to this Restricted Stock Agreement. I accept this Restricted Stock Agreement in full satisfaction
of any previous written or oral promise made to me by the Company or any of its Subsidiaries with
respect to option or stock grants.

Date:                                         

	 	 	 
	 

	 	                                        

 

Page 9 of 9exv10w1

Exhibit 10.1

Execution version

$200,000,000

MARTIN MIDSTREAM PARTNERS L.P.,

AND

MARTIN MIDSTREAM FINANCE CORP.

8.875% Senior Notes due 2018

PURCHASE AGREEMENT

March 23, 2010

 

 

March 23, 2010

Wells Fargo Securities, LLC

RBC Capital Markets Corporation

UBS Securities LLC

c/o Wells Fargo Securities, LLC

     301 South College Street

     Charlotte, North Carolina 28288

Ladies and Gentlemen:

          Martin Midstream Partners L.P., a Delaware limited partnership (the “Partnership”), and Martin
Midstream Finance Corp., a Delaware corporation (“Finance Corp.” together with the Partnership, the
“Issuers”) propose to issue and sell to the several purchasers named in Schedule I hereto (the
“Initial Purchasers”), for whom Wells Fargo Securities, LLC, RBC Capital Markets Corporation, and
UBS Securities LLC are acting as Representatives (in such capacity, the “Representatives”),
$200,000,000 aggregate principal amount of its 8.875% Senior Notes due 2018 (the “Notes”), which
will be unconditionally guaranteed on a senior unsecured basis, as to principal, premium, if any,
and interest (the “Guarantees”) by the subsidiaries of the Partnership named in Schedule II hereto,
(each individually, a “Guarantor” and collectively, the “Guarantors”). The Notes will be issued
pursuant to an Indenture (the “Indenture”) dated as of the Closing Date (as defined in Section 2)
among the Issuers, the Guarantors and Wells Fargo Bank, National Association, as Trustee (the
“Trustee”).

          The Notes (and the related Guarantees) will be offered and sold through the Initial Purchasers
without being registered under the Securities Act of 1933, as amended (the “Securities Act”), to
qualified institutional buyers in compliance with the exemption from registration provided by Rule
144A under the Securities Act and in offshore transactions in reliance on Regulation S under the
Securities Act (“Regulation S”). The Initial Purchasers have advised the Issuers that they will
offer and sell the Notes purchased by them hereunder in accordance with Section 3 hereof as soon as
the Representatives deem advisable.

          This Agreement, the Registration Rights Agreement, to be dated the Closing Date, between the
Initial Purchasers, the Issuers and the Guarantors (the “Registration Rights Agreement”) and the
Indenture are hereinafter collectively referred to as the “Transaction Documents” and the execution
and delivery of the Transaction Documents and the transactions contemplated herein and therein are
hereinafter referred to as the “Transactions”.

          In connection with the sale of the Notes, the Issuers have prepared a preliminary offering
memorandum, dated March 16, 2010 (the “Preliminary Memorandum”), the Offering Memorandum (as
defined below) and a Final Memorandum (as defined below), dated the date hereof. The Final
Memorandum, the Preliminary Memorandum and the Offering Memorandum are referred to herein as a
“Memorandum”. Each Memorandum sets forth certain information concerning the Issuers, the Notes,
the Transaction Documents and the Transactions. The Issuers hereby confirm that they have
authorized the use of the Preliminary Memorandum and the Offering Memorandum, and any amendment or
supplement thereto, in connection with the offer and sale of the Notes by the Initial Purchasers.

 

 

Execution version

          Prior to the first time when the sales of the Notes were first made (the “Time of Sale”), the
Issuers have prepared and delivered to the Initial Purchasers a pricing supplement (the “Pricing
Supplement”) dated March 23, 2010, in the form attached as Schedule III hereto. The Pricing
Supplement together with the Preliminary Memorandum is referred to herein as the “Offering
Memorandum.”

          Promptly after the Time of Sale and in any event no later than the second Business Day
following the Time of Sale, the Issuers will prepare and deliver to each Initial Purchaser a Final
Offering Memorandum (the “Final Memorandum”), which will consist of the Preliminary Offering
Memorandum with such changes therein as are required to reflect the information contained in the
Pricing Supplement, and from and after the time such Final Memorandum is delivered to each Initial
Purchaser, all references herein to the Offering Memorandum shall be deemed to be a reference to
both the Offering Memorandum and the Final Memorandum.

     All references herein to the terms “Offering Memorandum” and “Final Memorandum” shall be
deemed to mean and include all information filed under the Securities Exchange Act of 1934 (as amended, the “Exchange Act,” which term, as used herein, includes the rules and regulations
of the Commission promulgated thereunder) and incorporated by reference in the Offering Memorandum
(including the Preliminary Memorandum) or the Final Memorandum (as the case may be), and all
references herein to the terms “amend,” “amendment” or “supplement” with respect to the Final
Memorandum shall be deemed to mean and include all information filed under the Exchange Act after
the Time of Sale and incorporated by reference in the Final Memorandum.

          Martin Midstream GP LLC, a Delaware limited liability company (the “General Partner”), is an
indirect, wholly owned subsidiary of Martin Resource Management Corporation, a Texas corporation
(“MRMC”), and the sole general partner of the Partnership. The Partnership is the sole shareholder
of Finance Corp. Martin Operating GP LLC, a Delaware limited liability company and a wholly owned
subsidiary of the Partnership (“Operating GP”), is the sole general partner of Martin Operating
Partnership L.P., a Delaware limited partnership (the “Operating Partnership”), and the Partnership
is the sole limited partner of the Operating Partnership. The Operating Partnership owns, among
other things, all of the outstanding limited partnership interests in Prism Gas Systems I, L.P., a
Texas limited partnership (“Prism Gas”), and all of the outstanding membership interests in Prism
Gas Systems GP, LLC, a Texas limited liability company (“PGSGP”). Prism Gas owns a 50% partnership
interest in Waskom Gas Processing Company, a Texas general partnership (“Waskom”), 100% of the
outstanding membership interests in McLeod Gathering and Processing Company, L.L.C., a Louisiana
limited liability company (“McLeod”), 100% of the outstanding membership interests in Prism Gulf
Coast L.L.C., a Texas limited liability company (“PGC”), and all of the outstanding common stock of
Woodlawn Pipeline Co., Inc. a Texas corporation (“WPC”). PGC owns 50% of the outstanding
membership interests in Panther Interstate Pipeline Energy, L.L.C., a Texas limited liability
company (“PIPE”).

          For the purposes of this Agreement, the term “Permitted Liens” shall mean liens, encumbrances
and/or security interests granted by any Partnership Entity to Royal Bank of Canada and the other
lenders (collectively, the “MLP Lenders”), named in the Operating

 

 

Execution version

Partnership’s Second Amended and Restated Credit Agreement dated as of November 10, 2005 (as
amended, the “MLP Credit Agreement”).

          1. Representations and Warranties of the Issuers and the Guarantors. The Issuers and
the Guarantors jointly and severally represent and warrant to, and agree with, each of the Initial
Purchasers that:

     (a) The Preliminary Memorandum as of its date did not contain; the Offering Memorandum
at the Time of Sale and at the Closing Date; and the Final Memorandum, and any amendment or
supplement thereto does not and will not contain any untrue statement of a material fact or
omit to state any material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; provided, however, that the
representations or warranties set forth in this paragraph shall not apply to statements in
or omissions from any Memorandum made in reliance upon and in conformity with information
furnished in writing to the Issuers by the Initial Purchasers through the Representatives
expressly for use therein, as specified in Section 11. The statistical and industry data
included in each Memorandum are based on or derived from sources that the Issuers believe to
be reliable and accurate.

     (b) The Partnership (including its agents and representatives, other than the Initial
Purchasers in their capacity as such) has not prepared, made, used, authorized, approved or
referred to and will not prepare, make, use, authorize, approve or refer to any written
communication that constitutes an offer to sell or solicitation of an offer to buy the Notes
(each such communication by the Partnership or its agents and representatives (other than a
communication referred to in clauses (i), (ii) and (iii) below) an “Issuer Written
Communication”) other than (i) the Preliminary Memorandum, (ii) the Final Memorandum, (iii)
the Pricing Supplement, which constitutes part of the Offering Memorandum, and (iv) any
electronic road show or other written communications, in each case used in accordance with
Section 4(c). Each such Issuer Written Communication, when taken together with the Offering
Memorandum, did not, and at the Closing Date will not, contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading;
provided that the Issuers and Guarantors make no representation and warranty with
respect to any statements or omissions made in each such Issuer Written Communication in
reliance upon and in conformity with information relating to any Initial Purchaser furnished
to the Partnership in writing by such Initial Purchaser through the Representatives
expressly for use in any Issuer Written Communication.

     (c) Each of the Partnership and the Operating Partnership has been duly formed and is
validly existing in good standing as a limited partnership under the Delaware Revised
Uniform Limited Partnership Act (the “Delaware LP Act”), with full partnership power and
authority to own or lease and operate its properties and to conduct its business as
presently conducted and as described in any Memorandum (and any amendment or supplement
thereto), in each case in all material respects. Each of the

 

 

Execution version

Partnership and the Operating Partnership is duly registered or qualified as a foreign
limited partnership for the transaction of business under the laws of each jurisdiction in
which the character of the business conducted by it at the Closing Date or the nature or
location of the properties to be owned or leased by it at the Closing Date makes such
registration or qualification necessary, except where the failure so to register or qualify
would not have a Material Adverse Effect. “Material Adverse Effect” shall mean a material
adverse effect on (i) the condition (financial or otherwise), business, properties, net
worth or results of operations of the Issuers and each Guarantor, considered as one
enterprise, or (ii) the ability of the Issuers and each Guarantor to perform their
obligations under the Notes, the Guarantees or the Transaction Documents.

     (d) Finance Corp. has been duly incorporated and is validly existing in good standing
as a corporation under the Delaware General Corporation Law (the “DGCL”), with full
corporate power and authority to own or lease and operate its properties and to conduct its
business as presently conducted and as described in any Memorandum (and any amendment or
supplement thereto) in all material respects. Finance Corp. is duly registered or qualified
as a foreign corporation for the transaction of business under the laws of each jurisdiction
in which the character of the business conducted by it at the Closing Date or the nature or
location of the properties owned or leased by it at the Closing Date makes such registration
or qualification necessary, except where the failure so to register or qualify would not
have a Material Adverse Effect.

     (e) Each of the General Partner and Operating GP has been duly formed and is validly
existing in good standing as a limited liability company under the Delaware Limited
Liability Company Act (the “Delaware LLC Act”), with full limited liability company power
and authority to own or lease and operate its properties and to conduct its business as
presently conducted and as described in any Memorandum (and any amendment or supplement
thereto), and (i) with respect to the General Partner, to act as general partner of the
Partnership, and (ii) with respect to Operating GP, to act as general partner of the
Operating Partnership, in each case in all material respects. Each of the General Partner
and Operating GP is duly registered or qualified as a foreign limited liability company for
the transaction of business under the laws of each jurisdiction in which the character of
the business conducted by it at the Closing Date or the nature or location of the properties
owned or leased by it at the Closing Date makes such registration or qualification
necessary, except where the failure so to register or qualify would not have a Material
Adverse Effect.

     (f) Prism Gas has been duly formed and is validly existing as a limited partnership
under the laws of the State of Texas with full partnership power and authority to own or
lease and operate its properties and to conduct its business as presently conducted and as
described in any Memorandum (and any amendment or supplement thereto), in each case in all
material respects. Prism Gas is duly registered or qualified as a foreign limited
partnership for the transaction of business under the laws of each jurisdiction in which the
character of the business conducted by it at the Closing Date or the nature or location of
the properties owned or leased by it at the Closing Date makes such registration or
qualification necessary, except where the failure so to register or qualify would not have a
Material Adverse Effect.

 

 

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     (g) Waskom has been duly formed and is validly existing as a general partnership under
the laws of the State of Texas with full partnership power and authority to own or lease and
operate its properties and to conduct its business as presently conducted and as described
in any Memorandum (and any amendment or supplement thereto), in each case in all material
respects. Waskom is duly registered or qualified as a foreign partnership for the
transaction of business under the laws of each jurisdiction in which the character of the
business conducted by it at the Closing Date or the nature or location of the properties
owned or leased by it at the Closing Date makes such registration or qualification
necessary, except where the failure so to register or qualify would not have a Material
Adverse Effect.

     (h) The General Partner is the sole general partner of the Partnership with a 2%
general partner interest in the Partnership; such general partner interest has been duly
authorized and validly issued in accordance with the Second Amended and Restated Agreement
of Limited Partnership of the Partnership (the “Partnership Agreement”); and the General
Partner owns such general partner interest free and clear of all liens, encumbrances,
security interests, charges or claims, except for those granted by MRMC to Amegy Bank
National Association and the other lenders (collectively the “MRMC Lenders”), named in
MRMC’s Credit Agreement dated October 30, 2006 (as amended, the “MRMC Credit Agreement”) and
applicable securities laws and any restrictions set forth in the Partnership Agreement.

     (i) The Partnership owns a 100% limited liability company interest in Operating GP;
such limited liability company interest has been duly authorized and validly issued in
accordance with the limited liability company agreement of Operating GP (as the same may be
amended and restated at or prior to the Closing Date, the “Operating GP Agreement”), is
fully paid (to the extent required under the Operating GP Agreement) and nonassessable
(except as such nonassessability may be affected by Sections 18-607 and 18-804 of the
Delaware LLC Act); and the Partnership owns such limited liability company interest free and
clear of all liens, encumbrances, security interests, charges or claims, except for
Permitted Liens, applicable securities laws and any restrictions set forth in the Operating
GP Agreement.

     (j) Operating GP is the sole general partner of the Operating Partnership with a 0.1%
general partner interest in the Operating Partnership; such general partner interest has
been duly authorized and validly issued in accordance with the partnership agreement of the
Operating Partnership (as the same may be amended and restated at or prior to the Closing
Date, the “Operating Partnership Agreement”); Operating GP owns such general partner
interest free and clear of all liens, encumbrances (except any restrictions on
transferability as described in any Memorandum), security interests, charges or claims,
except for Permitted Liens, applicable securities laws and any restrictions set forth in the
Operating Partnership Agreement; the Partnership is the sole limited partner of the
Operating Partnership with a 99.9% limited partner interest in the Operating Partnership;
such limited partner interest has been duly authorized and validly issued in accordance with
the Operating Partnership Agreement, is fully paid (to the extent required under the
Operating Partnership Agreement) and nonassessable (except as such nonassessability may be
affected by Sections 17-303, 17-607 and 17-804 of the Delaware LP Act); and the

 

 

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Partnership owns such limited partner interest free and clear of all liens,
encumbrances, security interests, charges or claims, except for Permitted Liens, applicable
securities laws and any restrictions set forth in the Operating Partnership Agreement.

     (k) The Operating Partnership owns, directly or indirectly through its ownership of
PGSGP, 100% of the outstanding partnership interests in Prism Gas; such partnership
interests have been duly authorized and validly issued in accordance with the partnership
agreement, as amended, of Prism Gas (the “Prism Gas Partnership Agreement”), are fully paid
(to the extent required under the Prism Gas Partnership Agreement) and nonassessable (except
as such nonassessability may be affected by Sections 153.202 and 153.210 of the Texas
Business Organizations Code (“TBOC”)); and the Operating Partnership owns, directly or
indirectly through its ownership of PGSGP, such partnership interests directly or indirectly
free and clear of all liens, encumbrances, security interests, charges or claims except for
Permitted Liens, applicable securities laws and any restrictions set forth in the Prism Gas
Partnership Agreement.

     (l) Prism Gas owns 50% of the outstanding partnership interests in Waskom; such
partnership interests have been duly authorized and validly issued in accordance with the
partnership agreement, as amended, of Waskom (the “Waskom Partnership Agreement”); and Prism
Gas owns such partnership interests free and clear of all liens, encumbrances, security
interests, charges or claims except for Permitted Liens, applicable securities laws and any
restrictions set forth in the Waskom Partnership Agreement.

     (m) Other than (i) the Partnership’s ownership of a 100% member interest in Operating
GP and a 99.9% limited partner interest in the Operating Partnership, (ii) the Partnership’s
ownership of 100% of the outstanding capital stock of Finance Corp., (iii)Operating GP’s
ownership of a 0.1% general partner interest in the Operating Partnership, (iv) the
Operating Partnership’s ownership of all of the outstanding limited partnership interests in
Prism Gas, (v) the Operating Partnership’s ownership of all of the outstanding membership
interests in PGSGP, (vi) PGSGP’s ownership of all of the general partnership interests in
Prism Gas, (vii) Prism Gas’ ownership of 50% of the outstanding partnership interests in
Waskom, (viii) Prism Gas’ ownership of 100% of the outstanding membership interests of
McLeod, (ix) Prism Gas’ ownership of 100% of the outstanding stock of WPC, (x) Prism Gas’
ownership of 100% of the outstanding membership interests in PGC, (xi) PGC’s ownership of
50% of the outstanding membership interests of PIPE, (xii) Prism Gas’ ownership of 100% of
the outstanding membership interests in Prism Liquids Pipeline LLC, a Texas limited
liability company, (xii) Waskom’s ownership of 100% of the outstanding membership interests
in Waskom Products Pipeline LLC , a Texas limited liability company, (xiii) Waskom’s
ownership of 100% of the outstanding membership interests in Waskom Midstream LLC, a Texas
limited liability company (“Waskom Midstream”), and (xiv) Waskom Midstream’s ownership of
100% of the outstanding membership interests in Olin Gathering LLC, a Texas limited
liability company, none of the Partnership, Operating GP, or the Operating Partnership will
own, directly or indirectly, any equity or long-term debt securities of any corporation,
partnership, limited liability company, joint venture, association or other entity. Other
than its ownership interests described above and its partnership interests in the
Partnership, the General Partner will not own, directly or indirectly, any equity or

 

 

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long-term debt securities of any corporation, partnership, limited liability company,
joint venture, association or other entity. Prism Gas and Waskom are the only direct or
indirect subsidiaries of the Operating Partnership that constitute a “significant
subsidiary” of the Operating Partnership as defined by Rule 1-02 of Regulation S-X and no
other subsidiary of the Operating Partnership would, individually or in the aggregate,
constitute a significant subsidiary.

     (n) The Issuers have all limited partnership or corporate power, as the case may be,
and authority necessary to enter into and perform their obligations under the Transaction
Documents, the Notes and the Guarantees, and to carry out all the terms and provisions
hereof and thereof to be carried out by them.

     (o) Each Guarantor has full power (corporate and other) to own or lease its properties
and conduct its business as described in any Memorandum; and each Guarantor has full power
(corporate and other) to enter into the Guarantees and the Transaction Documents, as
applicable, and to carry out all the terms and provisions hereof and thereof to be carried
out by each Guarantor, as applicable.

     (p) Each Guarantor (other than Operating GP, the Operating Partnership and Prism Gas)
has been duly incorporated or formed, is validly existing as a corporation or limited
liability company in good standing (or its equivalent) under the laws of the jurisdiction of
its incorporation or formation, has the corporate or limited liability company power and
authority to own its property and to conduct its business as described in the Offering
Memorandum and is duly qualified to transact business and is in good standing in each
jurisdiction in which the conduct of its business or its ownership or leasing of property
requires such qualification, except to the extent that the failure to be so qualified or be
in good standing would not have a Material Adverse Effect; all of the issued shares of
capital stock or other ownership interest of each Guarantor (other than Operating GP, the
Operating Partnership and Prism Gas) has been duly and validly authorized and issued, are
fully paid (to the extent required under the applicable certificate of incorporation or
limited liability company agreement of each Guarantor (other than Operating GP, the
Operating Partnership and Prism Gas)) and non-assessable (except as such non-assessability
may be affected by Section 101.206 of the TBOC or comparable section of Louisiana LLC
statutes, as applicable), and are owned directly or through wholly-owned subsidiaries by the
Partnership, free and clear of all liens, encumbrances, equities or claims, except for
Permitted Liens, applicable securities laws and any restrictions set forth in the applicable
certificate of incorporation or limited liability company agreement of each Guarantor (other
than Operating GP, the Operating Partnership and Prism Gas).

     (q) No Guarantor is prohibited, directly or indirectly, from paying any dividends to an
Issuer, from making any other distribution on such subsidiary’s capital stock, from repaying
to an Issuer any loans or advances to such subsidiary from an Issuer or from transferring
any of such subsidiary’s property or assets to an Issuer or any other subsidiary of an
Issuer in accordance with its organizational documents, except as provided by applicable
laws or regulations, by the Indenture or as disclosed in the Offering Memorandum.

 

 

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     (r) Except for rights described in the Offering Memorandum, or for rights that have
been waived, there are no preemptive rights or other rights to subscribe for or to purchase,
nor any restriction upon the voting or transfer of, any partnership or member interests in
the Issuers or Guarantors, in each case pursuant to the organizational documents or any
agreement or other instrument to which any Issuer or Guarantor is a party or by which any of
them may be bound. Except as described in the Offering Memorandum, there are not
outstanding options or warrants to purchase any partnership or limited liability company
interests in any Issuer or Guarantor.

     (s) This Agreement has been duly authorized, executed and delivered by the Issuers and
each Guarantor.

     (t) The Indenture and the Registration Rights Agreement have been duly authorized by
the Issuers and each Guarantor and, on the Closing Date, will have been duly executed and
delivered by the Issuers and each Guarantor, and (assuming the due authorization, execution
and delivery by the Trustee in the case of the Indenture and the Initial Purchasers in the
case of the Registration Rights Agreement) will constitute the legal, valid and binding
obligations of the Issuers and each Guarantor, enforceable against the Issuers and each
Guarantor in accordance with their respective terms; provided that the
enforceability hereof may be limited by (i) bankruptcy, insolvency, reorganization,
moratorium, fraudulent transfer and similar laws relating to or affecting creditors’ rights
generally and by general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and (ii) public policy, applicable law
relating to fiduciary duties and indemnification and contribution and an implied covenant of
good faith and fair dealing; and the Indenture and the Registration Rights Agreement will
conform in all material respects to the description thereof in the Offering Memorandum.

     (u) The Indenture conforms to the requirements of the Trust Indenture Act of 1939, as
amended (the “Trust Indenture Act”) and to the rules and regulations of the Securities and
Exchange Commission (the “Commission”) applicable to an indenture that is qualified
thereunder.

     (v) The Notes have been duly authorized by the Issuers and when duly executed and
authenticated in the manner provided for in the Indenture and delivered to and paid for by
the Initial Purchasers as provided in this Agreement, will constitute the legal, valid and
binding obligations of the Issuers, enforceable against the Issuers in accordance with their
terms and will be entitled to the benefits of the Indenture and the Registration Rights
Agreement; provided that the enforceability hereof may be limited by (i) bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer and similar laws relating to or
affecting creditors’ rights generally and by general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law) and (ii)
public policy, applicable law relating to fiduciary duties and indemnification and
contribution and an implied covenant of good faith and fair dealing; the Guarantees have
been duly authorized by the Guarantors and, on the Closing Date, upon the due issuance and
delivery of the related Notes, will constitute valid and legally binding obligations of each
of the Guarantors, and will be entitled to the benefits of the Indenture;

 

 

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provided that the enforceability hereof may be limited by (i) bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer and similar laws relating to or
affecting creditors’ rights generally and by general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law) and (ii)
public policy, applicable law relating to fiduciary duties and indemnification and
contribution and an implied covenant of good faith and fair dealing; the Exchange Notes (as
defined in the Registration Rights Agreement) have been duly authorized by the Issuers and,
when executed and authenticated in the manner provided for in the Registration Rights
Agreement and the Indenture, will constitute the legal, valid and binding obligations of the
Issuers, enforceable against the Issuers in accordance with their terms and will be entitled
to the benefits of the Indenture and the Registration Rights Agreement; provided
that the enforceability hereof may be limited by (i) bankruptcy, insolvency, reorganization,
moratorium, fraudulent transfer and similar laws relating to or affecting creditors’ rights
generally and by general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and (ii) public policy, applicable law
relating to fiduciary duties and indemnification and contribution and an implied covenant of
good faith and fair dealing; and the Notes and the Exchange Notes will conform in all
material respects to the descriptions thereof in the Offering Memorandum.

     (w) The limited liability company agreement of the General Partner (as the same may be
amended and restated at or prior to the Closing Date, the “General Partner LLC Agreement”)
has been duly authorized, executed and delivered by Martin Resource LLC and is a valid and
legally binding agreement of Martin Resource LLC enforceable against Martin Resource LLC in
accordance with its terms; the Partnership Agreement has been duly authorized, executed and
delivered by the General Partner and is a valid and legally binding agreement of the General
Partner, enforceable against the General Partner in accordance with its terms; the Operating
GP Agreement has been duly authorized, executed and delivered by the Partnership and is a
valid and legally binding agreement of the Partnership, enforceable against the Partnership
in accordance with its terms; the Operating Partnership Agreement has been duly authorized,
executed and delivered by Operating GP and the Partnership and is a valid and legally
binding agreement of Operating GP and the Partnership, enforceable against Operating GP and
the Partnership in accordance with its terms; the Prism Gas Partnership Agreement is a valid
and legally binding agreement of PGSGP and the Operating Partnership, enforceable against
PGSGP and the Operating Partnership in accordance with its terms; assuming that the Waskom
Partnership Agreement has been duly authorized, executed and delivered by CenterPoint Energy
Gas Processing Company (“CenterPoint”), the Waskom Partnership Agreement is a valid and
legally binding agreement of Prism Gas and CenterPoint, enforceable against Prism Gas and
CenterPoint in accordance with its terms; provided that, with respect to each
agreement described in this Section 1(w), the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and similar laws
relating to or affecting creditors’ rights generally and by general principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at
law); and provided further, that the indemnity and contribution provisions contained in any
of such agreements may be limited by applicable laws and public policy. The General Partner
LLC Agreement, the Partnership

 

 

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Agreement, the Operating GP Agreement, and the Operating Partnership Agreement are
herein collectively referred to as the “Operative Agreements.”

     (x) Except as described in the Offering Memorandum, there is no action, suit, inquiry,
proceeding or investigation by or before any court or governmental or other regulatory or
administrative agency or commission pending or, to the best knowledge of the Issuers and
Guarantors, threatened, against or involving any of the Issuers or Guarantors, or to which
any of their properties are subject, which is reasonably likely to, individually or in the
aggregate result in a Material Adverse Effect.

     (y) There are no agreements, contracts, indentures, leases or other instruments that
would be required to be described by the Securities Act in a registration statement on Form
S-1 to be filed with the Commission and that is not so described in each Memorandum. All
such contracts to which any of the Issuers or Guarantors is a party that are described in
the Offering Memorandum or are filed as exhibits to the documents incorporated by reference
to the Offering Memorandum have been duly authorized, executed and delivered by the Issuer
or Guarantor that are parties thereto, constitute valid and binding agreements of the Issuer
or Guarantor that are parties thereto and are enforceable against the Issuer or Guarantor
that are parties thereto in accordance with the terms thereof, except as such enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer
and similar laws relating to or affecting creditors’ rights generally and by general
principles of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law). None of the Issuers or Guarantors, as applicable, has
received notice or been made aware that any other party is in breach of or violation of, or
in default under, any of such contracts.

     (z) None of the Issuers or Guarantors is in violation of (i) its certificate or
agreement of limited partnership, certificate of formation, limited liability company
agreement, certificate or articles of incorporation or bylaws, or other organizational
documents, or (ii) any law, statute, ordinance, administrative or governmental rule or
regulation applicable to it, the violation of which would have a Material Adverse Effect, or
any judgment, decree or injunction of any court or governmental agency or body having
jurisdiction over it, the violation of which would have a Material Adverse Effect; or (iii)
in breach or default in any material respect in the performance of any obligation, agreement
or condition contained in (A) any bond, debenture, note or any other evidence of
indebtedness or (B) any agreement, contract, indenture, lease or other document or
instrument (each of (A) and (B), an “Existing Instrument”) to which it is a party or by
which any of its properties may be bound, which breach or default would have a Material
Adverse Effect. To the knowledge of the Issuers and Guarantors, no third party to any
Existing Instrument is in default under any such Existing Instrument, which default would,
if continued, have a Material Adverse Effect.

     (aa) The execution, delivery and performance by the Issuers and each Guarantor of this
Agreement and the other Transaction Documents, the issuance and sale of the Notes and the
compliance by the Issuers and each Guarantor with all of the provisions of the Notes, the
Indenture, the Registration Rights Agreement and this Agreement and the consummation of the
transactions contemplated hereby and thereby

 

 

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will not (i) require the consent, approval, authorization, order, registration or
filing or qualification with, any governmental authority or court, or body or arbitrator
having jurisdiction over an Issuer or any Guarantor, except such as may be required by the
securities or Blue Sky laws of the various states in connection with the offer or sale of
the Notes and by Federal and state securities laws with respect to the obligations of an
Issuer or any Guarantor under the Registration Rights Agreement, (ii) conflicts with or will
conflict with or constitutes or will constitute a breach or violation of, or a default
under, the certificate or agreement of limited partnership, certificate of formation,
limited liability company agreement, certificate or articles of incorporation or bylaws or
other organizational documents of any of the Issuers or Guarantors, (iii) conflicts with or
will conflict with or constitute or will constitute a breach or violation of, or a default
under, any Existing Instrument to which any of the Issuers or Guarantors is a party or by
which any of their respective properties may be bound, (iv) violates or will violate any
statute, law, regulation, ruling, filing, judgment, injunction, order or decree applicable
to any of the Issuers or Guarantors or any of their properties, or (v) results in or will
result in the creation or imposition of any lien, encumbrance, security interest, equity,
charge or claim upon any property or assets of any of the Issuers or Guarantors (other than
the Permitted Liens, applicable securities laws and any restrictions set forth in the
governing documents of the Issuers or Guarantors) pursuant to, or requires the consent of
any other party to, any Existing Instrument (except as noted above), except in case of (i),
(iii), (iv) or (v) above, for such consents that if not obtained or conflicts, breaches,
defaults, liens, encumbrances, security interests, charges or claims that will not,
individually or in the aggregate, result in a Material Adverse Effect.

     (bb) KPMG LLP, the certified public accountants who have certified the financial
statements (including the related notes thereto and supporting schedules) included or
incorporated by reference in the Offering Memorandum (or any amendment or supplement
thereto), are independent public accountants as required by the Securities Act and the
Exchange Act. Deloitte & Touche LLP, the certified public accountants who have certified the
financial statements (including the related notes thereto and supporting schedules) with
respect to Prism Gas and Waskom included or incorporated by reference in the Offering
Memorandum (or any amendment or supplement thereto), are independent public accountants as
required by the Securities Act and the Exchange Act.

     (cc) On December 31, 2009, the Partnership had, on the consolidated basis indicated in
the Offering Memorandum (and any amendment or supplement thereto), a capitalization as set
forth therein. The historical financial statements, together with related schedules and
notes, included or incorporated by reference in the Offering Memorandum (and any amendment
or supplement thereto), present fairly in all material respects the financial condition,
results of operations, cash flows and changes in financial position of the entities
purported to be shown thereby on the basis stated in the Offering Memorandum at the
respective dates or for the respective periods to which they apply; such statements and
related schedules and notes have been prepared in accordance with generally accepted
accounting principles consistently applied throughout the periods involved, except as
disclosed therein. No other financial statements or schedules would be required to be
included by the Securities Act in a registration statement to be filed with the Commission
and that are not so included in each Memorandum.

 

 

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     (dd) The documents incorporated by reference in each Memorandum, when filed with the
Commission, conformed or will conform, as the case may be, in all material respects to the
requirements of the Exchange Act and the rules and regulations of the Commission thereunder.

     (ee) Except as disclosed in the Offering Memorandum (or any amendment or supplement
thereto), subsequent to the respective dates as of which such information is given in the
Offering Memorandum (or any amendment or supplement thereto), (i) none of the Issuers or
Guarantors has incurred any material liabilities or obligations, indirect, direct or
contingent, or entered into any transaction that is not in the ordinary course of business,
(ii) none of the Issuers or Guarantors has sustained any material loss or interference with
its business or properties from fire, flood, windstorm, accident or other calamity, whether
or not covered by insurance, (iii) the Partnership has not paid or declared any
distributions with respect to its general or limited partner interests, (iv) none of the
Issuers or Guarantors is in default under the terms of any outstanding debt obligations, (v)
there has not been any change in the capitalization or any material change in the
indebtedness of any of the Issuers or Guarantors (other than in the ordinary course of
business) and (vi) there has not been any material adverse change, or any development
involving or that may reasonably be expected to result in a material adverse change, in the
condition (financial or otherwise), business, prospects, properties, net worth or result of
operations of the Issuers or Guarantors taken as a whole.

     (ff) At the Closing Date, each of the Issuers or Guarantors will have filed (or
obtained extensions with respect to) all tax returns required to be filed, which returns
will be complete and correct in all material respects, and has timely paid all taxes shown
to be due, if any, pursuant to such returns, other than those (i) which are being contested
in good faith and for which adequate reserves have been established in accordance with
generally accepted accounting principles or (ii) which, if not paid, would not have a
Material Adverse Effect.

     (gg) Except as set forth in the Offering Memorandum, there are no transactions with
“affiliates” (as defined in Rule 405 promulgated under the Securities Act) or any officer,
director or security holder of the Issuers or Guarantors (whether or not an affiliate) that
would be required to be described by the Securities Act in a registration statement on Form
S-1 to be filed with the Commission and that is not so described in each Memorandum.
Additionally, no relationship, direct or indirect, exists between any of the Issuers or
Guarantors on the one hand, and the directors, officers, stockholders, customers or
suppliers of any of the Issuers or Guarantors on the other hand, that would be required to
be described by the Securities Act in a registration statement on Form S-1 to be filed with
the Commission and that is not so described in each Memorandum.

     (hh) None of the Issuers or Guarantors is now, and after the sale of the Notes and
application of the net proceeds from such sale as described in the Offering Memorandum under
the caption “Use of Proceeds” none of them will be, an “investment company” or an
“affiliated person” of, or “promoter” or “principal underwriter” for, an investment company
within the meaning of the Investment Company Act of 1940, as amended.

 

 

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     (ii) Each of the Issuers or Guarantors has good and valid title to all property (real
and personal) described in the Offering Memorandum as being owned by it, free and clear of
all liens, claims, security interests or other encumbrances except (i) such as are described
in the Offering Memorandum, (ii) Permitted Liens, (iii) applicable securities laws, (iv)
restrictions set forth in the governing documents of the Issuers or Guarantors or (v) such
as are not materially burdensome and do not have or will not result in a Material Adverse
Effect. All property (real and personal) held under lease by the Issuers or Guarantors is
held by them under valid, enforceable leases with only such exceptions as in the aggregate
are not materially burdensome and do not have and will not result in a Material Adverse
Effect.

     (jj) Each of the Issuers and the Guarantors has all permits, licenses, franchises,
approvals, consents and authorizations of governmental or regulatory authorities
(hereinafter “permit” or “permits”) as are necessary to own or lease its properties and to
conduct its business in the manner described in the Offering Memorandum, subject to such
qualifications as may be set forth in the Offering Memorandum, except where the failure to
have obtained any such permit has not had and will not have a Material Adverse Effect.

     (kk) The Issuers and the Guarantors maintain a system of internal accounting controls
sufficient to provide reasonable assurances that (i) transactions are executed in accordance
with management’s general or specific authorizations, (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain accountability for assets, (iii) access to
assets is permitted only in accordance with management’s general or specific authorizations
and (iv) the recorded amount of assets is compared with existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

     (ll) The Partnership maintains “disclosure controls and procedures” (as defined in Rule
13a-15 under the Exchange Act), and such controls and procedures are designed (i) to ensure
that information required to be disclosed by the Partnership in the reports that it files or
submits under the Exchange Act is recorded, processed, summarized and reported, within the
time periods specified in the Commission’s rules and forms and (ii) to ensure that
information required to be disclosed by the Partnership in the reports that it files or
submits under the Exchange Act is accumulated and communicated to the Partnership’s
management, including the principal executive officer and principal financial officer of the
General Partner of the Partnership, as appropriate to allow timely decisions regarding
required disclosure. Since the date of the most recent financial statements included in the
Offering Memorandum, the Partnership does not have any material weaknesses in internal
controls, and since the date of the most recent financial statements included in the
Offering Memorandum, there has been no fraud, whether or not material, that involves
management or other employees who have a significant role in the Partnership’s internal
controls. The Partnership is otherwise in compliance in all material respects with all
applicable effective provisions of the Sarbanes-Oxley Act and the rules and regulations
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     (mm) Except as described in the Offering Memorandum, the Issuers and the Guarantors (i)
are in compliance with any and all applicable federal, state, local and foreign laws and
regulations relating to the protection of human health and safety, the environment or
hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”),
(ii) have received all permits, licenses or other approvals required of them under
applicable Environmental Laws to conduct their respective businesses and (iii) are in
compliance with all terms and conditions of any such permit, license or approval, except
where such noncompliance with Environmental Laws, failure to receive required permits,
licenses or other approvals or failure to comply with the terms and conditions of such
permits, licenses or other approvals would not, individually or in the aggregate, have a
Material Adverse Effect. None of the Issuers or the Guarantors has been named as a
“potentially responsible party” under the Comprehensive Environmental Response Compensation
and Liability Act of 1980, as amended, in regard to any unresolved matter or claim. None of
the Issuers or the Guarantors owns, leases or occupies any property requiring remediation
that appears on any list of hazardous sites compiled by any state or local governmental
agency. In the ordinary course of its business, each of the Issuers and the Guarantors
conducts a periodic review of the effect of Environmental Laws on its business, operations
and properties, in the course of which it identifies and evaluates associated costs and
liabilities (including any capital or operating expenditures required for clean-up, closure
of properties or compliance with Environmental Laws or any permit, license or approval, any
related constraints on operating activities and any potential liabilities to third parties).
On the basis of such review and amount of its established reserves, each of the Issuers and
the Guarantors has reasonably concluded that such associated costs and liabilities would
not, individually or in the aggregate, result in a Material Adverse Effect.

     (nn) Each of the Issuers and the Guarantors is insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as are prudent
and customary in the businesses in which it is engaged; and none of the Issuers or the
Guarantors has received notice from any insurer or agent of such insurer that substantial
capital improvements or other expenditures will have to be made in order to continue such
insurance.

     (oo) Except for the Martin Midstream Partners L.P. Long-Term Incentive Plan (the
“Plan”), none of the Issuers or the Guarantors is a party to, or has any liability with
respect to, any “employee benefit plan” (as defined under the Employee Retirement Income
Security Act of 1974, as amended, and the regulations and published interpretations
thereunder (collectively, “ERISA”)) established or maintained by them or their “ERISA
Affiliates” (as defined below). “ERISA Affiliate” means, with respect to any Issuer or
Guarantor, any member of any group or organization described in Sections 414(b), (c), (m) or
(o) of the Internal Revenue Code of 1986 (as amended, the “Code”) of which such entity is a
member. The Plan is in compliance with ERISA and all other applicable state and federal
laws. No “reportable event” (as defined in ERISA) has occurred with respect to the Plan.
The Plan, if it were to be terminated as of the Closing Date, would not have any “amount of
unfunded benefit liabilities” (as defined in ERISA). None of the Issuers or the Guarantors,
nor any of their ERISA Affiliates has incurred or reasonably expects to incur any liability
under (i) Title IV of ERISA with respect to

 

 

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termination of, or withdrawal from, the Plan or (ii) Sections 412, 4971, 4975 or 4980B
of the Code. Each “employee benefit plan” established or maintained by any Issuer or
Guarantor or any of their ERISA Affiliates that is intended to be qualified under Section
401(a) of the Code is so qualified and nothing has occurred, whether by action or failure to
act, that would cause the loss of such qualification.

     (pp) None of the Issuers or the Guarantors nor, to the Partnership’s knowledge, any
employee or agent of the Issuers or the Guarantors has made any payment of funds of the
Issuers or the Guarantors or received or retained any funds in violation of any law, rule or
regulation (including, without limitation, the Foreign Corrupt Practices Act of 1977), which
payment, receipt or retention of funds is of a character required to be disclosed in the
Offering Memorandm.

     (qq) Each of the Issuers and each Guarantor is not now nor after giving effect to the
issuance of the Notes and the execution, delivery and performance of the Notes, the
Guarantees or the Transaction Documents and the consummation of the transactions
contemplated thereby or described in the Preliminary Memorandum or the Offering Memorandum,
will be (i) insolvent, (ii) left with unreasonably small capital with which to engage in its
anticipated business or (iii) incurring debts or other obligations beyond its ability to pay
such debts or obligations as they become due.

     (rr) The Issuers and their Affiliates (as defined in Rule 501(b) of Regulation D under
the Securities Act (“Regulation D”)) have not distributed and, prior to the later of (i) the
Closing Date and (ii) the completion of the distribution of the Notes, will not distribute
any offering material in connection with the offering and sale of the Notes other than the
Preliminary Memorandum, the Offering Memorandum or any amendment or supplement thereto.

     (ss) The statements set forth in the Offering Memorandum under the caption “Description
of Notes”, insofar as they purport to constitute a summary of the terms of the Notes, and
under the captions “Management”, “Related Party Transactions”, “Description of Certain
Indebtedness and Preferred Stock”, and “Certain United States Federal Income Tax
Considerations” insofar as they purport to summarize the provisions of the laws and
documents referred to therein, fairly and accurately summarize the subject matter thereof in
all material respects.

     (tt) No proceedings for the merger, consolidation, liquidation or dissolution of an
Issuer or any Guarantor or the sale of all or a material part of the assets of the
Partnership and its subsidiaries or any Guarantor or any material acquisition by an Issuer
or any Guarantor are pending or contemplated.

     (uu) Within the preceding six months, none of the Issuers or any of the Guarantors or
any of their Affiliates has, directly or through any agent, made offers or sales of any debt
security of the Issuers or any of the Guarantors, or solicited offers to buy or otherwise
negotiated in respect of any securities of the Issuers or the Guarantors of the same or a
similar class as the Notes, other than the Notes offered or sold to the Initial Purchasers
hereunder.

 

 

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     (vv) None of the Issuers, any Guarantor or any of their Affiliates has, directly or
through any person acting on its or their behalf (other than the Initial Purchasers, as to
which no statement is made), offered, solicited offers to buy or sold the Notes by any form
of general solicitation or general advertising (within the meaning of Regulation D) or in
any manner involving a public offering within the meaning of Section 4(2) of the Securities
Act.

     (ww) None of the Issuers, any Guarantors, any of their Affiliates, nor any person
acting on its or their behalf (other than the Initial Purchasers, as to which no statement
is made), has engaged in any directed selling efforts with respect to the Notes, and each of
them has complied with the offering restrictions requirement of Regulation S under the
Securities Act (“Regulation S”). Terms used in this paragraph have the meanings given to
them by Regulation S.

     (xx) None of the Issuers, any Guarantor or any of their Affiliates has taken, directly
or indirectly, any action designed to cause or result in, or which has constituted or which
might reasonably be expected to cause or result in, stabilization or manipulation of the
price of any security of the Issuers or any Guarantor to facilitate the sale or resale of
the Notes; nor has the Issuers, any Guarantor or any of their Affiliates paid or agreed to
pay to any person any compensation for soliciting another to purchase any securities of an
Issuer (except as contemplated by this Agreement).

     (yy) The Notes satisfy the eligibility requirements of Rule 144A(d)(3) under the
Securities Act.

     (zz) Assuming the accuracy of the representations and warranties of the Initial
Purchasers in Section 3 hereof and compliance by the Initial Purchasers with the procedures
set forth in Section 3 hereof, it is not necessary in connection with the offer, sale and
delivery of the Notes to the Initial Purchasers in the manner contemplated by this Agreement
and disclosed in each Memorandum to register the Notes or the related Guarantees under the
Securities Act or to qualify the Indenture under the Trust Indenture Act.

     (aaa) None of the Transactions (including, without limitation, the use of proceeds from
the sale of the Notes) will violate or result in a violation of Section 7 of the Exchange
Act or any regulation promulgated thereunder, including, without limitation, Regulations T,
U and X of the Board of Governors of the Federal Reserve System.

     (bbb) Except as disclosed in the Offering Memorandum, there are no agreements,
arrangements or understandings (other than this Agreement) that will require the payment of
any commissions, fees or other remuneration to any investment banker, broker, finder,
consultant or intermediary in connection with the transactions contemplated by this
Agreement.

     (ccc) The Issuers do not intend to treat any of the transactions contemplated by the
Notes, the Guarantees or the Transaction Documents as being a “reportable transaction”
(within the meaning of Treasury Regulation Section 1.6011-4). In the event

 

 

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the Issuers determine to take any action inconsistent with such intention, it will
promptly notify the Representatives thereof. If the Issuers so notifies the
Representatives, the Issuers acknowledge that one or more of the Initial Purchasers may
treat its purchase and resale of Notes as part of a transaction that is subject to Treasury
Regulation Section 301.6112-1, and such Initial Purchaser or Initial Purchasers, as
applicable, will maintain the lists and other records required by such Treasury Regulation.

     (ddd) There are no stamp or other issuance or transfer taxes or duties or other similar
fees or charges required to be paid in connection with the execution and delivery of this
Agreement or the issuance or sale by the Issuers of the Notes.

Each certificate signed by any officer of the Issuers or the Guarantors and delivered to the
Initial Purchasers or their counsel shall be deemed to be a representation and warranty by the
Issuers or the Guarantors, as the case may be, to the Initial Purchasers as to the matters covered
thereby.

          2. Purchase, Sale and Delivery of the Notes. On the basis of the representations,
warranties, agreements and covenants herein contained and subject to the terms and conditions
herein set forth, the Issuers agree to issue and sell $200,000,000 aggregate principal amount of
Notes, and each of the Initial Purchasers, severally and not jointly, agree to purchase from the
Issuers the principal amount of Notes set forth opposite the name of such Initial Purchaser in
Schedule I hereto at a purchase price equal to 96.094% of the principal amount thereof (the
“Purchase Price”). One or more certificates in definitive form or global form, as instructed by
the Representatives for the Notes that the Initial Purchasers have severally agreed to purchase
hereunder, and in such denomination or denominations and registered in such name or names as the
Representatives request upon notice to the Issuers not later than one full business day prior to
the Closing Date (as defined below), shall be delivered by or on behalf of the Issuers to the
Representatives for the respective accounts of the Initial Purchasers, with any transfer taxes
payable in connection with the transfer of the Notes to the Initial Purchasers duly paid, against
payment by or on behalf of the Initial Purchasers of the Purchase Price therefor by wire transfer
in Federal or other funds immediately available to the account of the Issuers. Such delivery of
and payment for the Notes shall be made at the offices of Vinson & Elkins L.L.P. (“Counsel for the
Initial Purchasers”), 1001 Fannin Street, Suite 2500, Houston, Texas 77002-6760 at 10:00 A.M., New
York City time, on March 26, 2010, or at such other place, time or date as the Representatives and
the Issuers may agree upon, such time and date of delivery against payment being herein referred to
as the “Closing Date”. The Issuers will make such certificate or certificates for the Notes
available for examination by the Initial Purchasers at the offices of Counsel for the Initial
Purchasers not later than 10:00 A.M., New York City time on the business day prior to the Closing
Date.

          3. Offering of the Notes and the Initial Purchasers’ Representations and Warranties.
Each of the Initial Purchasers, severally and not jointly, represent and warrant to and agree with
the Issuers that:

     (a) It is a qualified institutional buyer as defined in Rule 144A under the Securities
Act (a “QIB”).

 

 

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     (b) It will solicit offers for such Notes only from, and will offer such Notes only to,
persons that it reasonably believes to be (A) in the case of offers inside the United
States, (1) QIBs, (B) in the case of offers outside the United States, to persons other than
U.S. persons (“foreign purchasers”, which term shall include dealers or other professional
fiduciaries in the United States acting on a discretionary basis for foreign beneficial
owners (other than an estate or trust)) in reliance upon Regulation S under the Securities
Act that, in each case, in purchasing such Notes are deemed to have represented and agreed
as provided in the Offering Memorandum under the caption “Notice to Investors”.

     (c) It will not offer or sell the Notes using any form of general solicitation or
general advertising (within the meaning of Regulation D) or in any manner involving a public
offering within the meaning of Section 4(2) under the Securities Act.

     (d) With respect to offers and sales outside the United States:

     (i) at or prior to the confirmation of any sale of any Notes sold in reliance
on Regulation S, it will have sent to each distributor, dealer or other person
receiving a selling concession, fee or other remuneration that purchases Notes from
it during the distribution compliance period (as defined in Regulation S) a
confirmation or notice substantially to the following effect:

          “The Notes covered hereby have not been registered under the U.S. Securities Act of 1933, as
amended (the “Securities Act”), and may not be offered or sold within the United States or to, or
for the account or benefit of, U.S. persons, (i) as part of their distribution at any time; or (ii)
otherwise until 40 days after the later of the commencement of the offering of the Notes and the
date the Notes were originally issued, except in either case in accordance with Regulation S or
Rule 144A under the Securities Act. Terms used above have the meanings given to them by Regulation
S.”; and

     (ii) such Initial Purchaser has offered the Notes and will offer and sell the
Notes (A) as part of its distribution at any time and (B) otherwise until 40 days
after the later of the commencement of the offering and the Closing Date, only in
accordance with Rule 903 of Regulation S or as otherwise permitted in Section 3(b);
accordingly, such Initial Purchaser has not engaged nor will engage in any directed
selling efforts (within the meaning of Regulation S) with respect to the Notes, and
such Initial Purchasers has complied and will comply with the offering restrictions
requirements of Regulation S.

          Terms used in this Section 3(d) have the meanings given to them by Regulation S.

          4. Covenants of the Issuers. The Issuers covenant and agree with the Initial
Purchasers that:

     (a) The Issuers will prepare the Preliminary Memorandum, the Offering Memorandum and
the Final Memorandum in the form approved by the Representatives and will not amend or
supplement the Preliminary Memorandum, the Offering Memorandum or the Final Memorandum
without first furnishing to the Representatives a

 

 

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copy of such proposed amendment or supplement and will not use any amendment or
supplement to which the Representatives may object.

     (b) The Issuers will furnish to the Initial Purchasers and to Counsel for the Initial
Purchasers concurrently with the Time of Sale and during the period referred to in paragraph
(c) below, without charge, as many copies of the Preliminary Memorandum and the Offering
Memorandum and any amendments and supplements thereto as they reasonably may request.

     (c) Before making, preparing, using, authorizing, approving or referring to any Issuer
Written Communication, the Partnership will furnish to the Representatives and counsel for
the Initial Purchasers a copy of such written communication for review and will not make,
prepare, use, authorize, approve or refer to any such written communication to which the
Representatives reasonably object.

     (d) At any time prior to the completion of the distribution of the Notes by the Initial
Purchasers, if any event occurs or condition exists as a result of which the Preliminary
Memorandum or the Offering Memorandum, as then amended or supplemented, would include any
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not
misleading, or if it should be necessary to amend or supplement the Preliminary Memorandum
or the Offering Memorandum, to comply with applicable law, the Issuers will promptly (i)
notify the Initial Purchasers of the same; (ii) subject to the requirements of paragraph (a)
of this Section 4, prepare and provide to the Initial Purchasers, at their own expense, an
amendment or supplement to the Preliminary Memorandum or the Offering Memorandum, so that
the statements in the Preliminary Memorandum or the Offering Memorandum as so amended or
supplemented will not, in the light of the circumstances when the Preliminary Memorandum or
the Offering Memorandum, is delivered to a purchaser, be misleading or so that the
Preliminary Memorandum or the Offering Memorandum, as amended or supplemented, will comply
with applicable law; and (iii) supply any supplemented or amended the Preliminary Memorandum
or the Offering Memorandum, to the Initial Purchasers and Counsel for the Initial
Purchasers, without charge, in such quantities as may be reasonably requested.

     (e) The Issuers will (i) cooperate with the Initial Purchasers to qualify the Notes and
the Guarantees for sale by the Initial Purchasers under the laws of such jurisdictions as
the Representatives may designate and (ii) maintain such qualifications for so long as
required for the sale of the Notes by the Initial Purchasers. The Issuers will promptly
advise the Initial Purchasers of the receipt by the Issuers of any notification with respect
to the suspension of the qualification of the Notes for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose. None of the Issuers or any of
the Guarantors shall be required to qualify as a foreign corporation or other entity or to
take any action that would subject it to general service of process in any such jurisdiction
where it is not presently qualified or where it would be subject to taxation as a foreign
corporation or other entity.

 

 

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     (f) At any time prior to the completion of the distribution of the Notes by the Initial
Purchasers, the Issuers will deliver to the Initial Purchasers such additional information
concerning the business and financial condition of the Issuers and the Guarantors as the
Initial Purchasers may from time to time request and whenever it or any of its subsidiaries
publishes or makes available to the public (by filing with any regulatory authority or
securities exchange or by publishing a press release or otherwise) any information that
would reasonably be expected to be material in the context of the issuance of the Notes
under this Agreement, shall promptly notify the Initial Purchasers as to the nature of such
information or event. The Issuers will likewise notify the Initial Purchasers of (i) any
decrease in the rating of the Notes or any other debt securities of an Issuer or any
Guarantor by any nationally recognized statistical rating organization (as defined in Rule
436(g)(2) under the Securities Act) or (ii) any notice or public announcement given of any
intended or potential decrease in any such rating or that any such securities rating agency
has under surveillance or review, with possible negative implications, its rating of the
Notes, as soon as the Issuers become aware of any such decrease, notice or public
announcement. The Issuers will also, for a period of three years from the Closing Date,
deliver to the Initial Purchasers, as soon as available and without request, copies of any
reports and financial statements furnished to or filed with the Commission or required to be
delivered to the Trustee or holders of the Notes pursuant to the Indenture or otherwise;
provided, however, that if such reports or financial statements are publically
available on the Commission’s EDGAR database, delivery to the Initial Purchasers shall not
be required.

     (g) During the period of one year after the Closing Date, the Issuers will not, and
will not permit any of their Affiliates to, resell any of the Notes that constitute
“restricted securities” under Rule 144 that have been acquired by any of them, other than
pursuant to an effective registration statement under the Securities Act or in accordance
with Rule 144 under the Securities Act.

     (h) Except as contemplated in the Registration Rights Agreement, none of the Issuers or
any of their Affiliates, nor any person acting on its or their behalf (other than the
Initial Purchasers or any of their respective Affiliates, as to which no statement is made)
will, directly or indirectly, make offers or sales of any security, or solicit offers to buy
any security, under circumstances that would require the registration of the Notes under the
Securities Act.

     (i) None of the Issuers or any of their Affiliates, nor any person acting on its or
their behalf (other than the Initial Purchasers or any of their respective Affiliates, as to
which no statement is made), will solicit any offer to buy or offer to sell the Notes by
means of any form of general solicitation or general advertising (within the meaning of
Regulation D) or in any manner involving a public offering within the meaning of Section
4(2) of the Securities Act.

     (j) None the Issuers or any of their Affiliates, nor any person acting on its or their
behalf (other than the Initial Purchasers or any of their respective Affiliates, as to which
no statement is made), will engage in any directed selling efforts (within the

 

 

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meaning of Regulation S) with respect to the Notes, and each of them will comply with
the offering restrictions requirements of Regulation S.

     (k) None of the Issuers or any of their Affiliates, nor any person acting on its or
their behalf (other than the Initial Purchasers or any of their respective Affiliates, as to
which no statement is made), will sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any securities of the same or a similar class as the Notes, other
than the Notes offered or sold to the Initial Purchasers hereunder, in a manner which would
require the registration under the Securities Act of the Notes.

     (l) So long as any of the Notes are “restricted securities” within the meaning of Rule
144(a)(3) under the Securities Act, at any time that the Issuers are not then subject to
Section 13 or 15(d) of the Exchange Act, the Issuers will provide at their expense to each
holder of the Notes and to each prospective purchaser (as designated by such holder) of the
Notes, upon the request of such holder or prospective purchaser, any information required to
be provided by Rule 144A(d)(4) under the Securities Act. (This covenant is intended to be
for the benefit of the holders, and the prospective purchasers designated by such holders
from time to time, of the Notes.)

     (m) The Issuers will apply the net proceeds from the sale of the Notes as set forth
under “Use of Proceeds” in the Preliminary Memorandum and the Offering Memorandum.

     (n) Until completion of the distribution, neither the Issuers nor any of their
Affiliates will take, directly or indirectly, any action designed to cause or result in, or
which has constituted or which might reasonably be expected to cause or result in,
stabilization or manipulation of the price of any security of the Issuers to facilitate the
sale or resale of the Notes.

     (o) Each Note will bear a legend substantially to the following effect until such
legend shall no longer be necessary or advisable because the Notes are no longer subject to
the restrictions on transfer described therein:

THIS NOTE AND THE GUARANTEES ENDORSED HEREON HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES
LAWS. NEITHER THIS NOTE NOR THE GUARANTEES ENDORSED HEREON NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS
SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT. THE HOLDER OF THIS NOTE AND THE GUARANTEES ENDORSED HEREON BY
ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY,
PRIOR TO THE DATE WHICH IS ONE YEAR AFTER THE LATER OF THE ORIGINAL ISSUE DATE
HEREOF OR THE DATE OF ANY

 

 

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SUBSEQUENT REOPENING OF THE NOTES AND THE LAST DATE ON WHICH AN ISSUER OR ANY
AFFILIATE OF AN ISSUER WAS THE OWNER OF THIS NOTE AND THE GUARANTEES ENDORSED HEREON
(OR ANY PREDECESSOR OF THIS NOTE AND THE GUARANTEES ENDORSED HEREON) (THE “RESALE
RESTRICTION TERMINATION DATE”) ONLY (A) TO AN ISSUER OR ANY SUBSIDIARY THEREOF, (B)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (C) FOR SO
LONG AS THE NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES
ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL
BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS
BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S.
PERSONS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S
UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUERS’ AND THE
TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (i) PURSUANT TO CLAUSE (D)
PRIOR TO THE END OF THE 40 DAY DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE (E) PRIOR TO THE RESALE
RESTRICTION TERMINATION DATE TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (ii) IN
EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE FORM
APPEARING ON THIS NOTE IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE.
THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF A HOLDER OR AN ISSUER ON OR AFTER
THE RESALE RESTRICTION TERMINATION DATE.

     (p) The Issuers will not, directly or indirectly, offer, sell, contract to sell or
otherwise dispose of any debt securities of an Issuer or warrants to purchase debt
securities of an Issuer substantially similar to the Notes (other than the Notes offered
pursuant to this Agreement) for a period of 60 days after the date hereof, without the prior
written consent of Wells Fargo Securities, LLC.

     (q) The Issuers will, promptly after they have notified the Representatives of any
intention by the Issuers to treat the Transactions as being a “reportable transaction”
(within the meaning of Treasury Regulation Section 1.6011-4), deliver a duly completed copy
of IRS Form 8886 or any successor form to the Representatives.

     (r) The Issuers and the Guarantors acknowledge and agree that the Initial Purchasers
are acting solely in the capacity of an arm’s length contractual counterparty to the Issuers
and the Guarantors with respect to the offering of the Notes and the

 

 

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Guarantees contemplated hereby (including in connection with determining the terms of
the offering) and not as a financial advisor or a fiduciary to, or an agent of, the Issuers
or any other person. Additionally, no Initial Purchaser is advising the Issuers, the
Guarantors or any other person as to any legal, tax, investment, accounting or regulatory
matters in any jurisdiction. The Issuers and Guarantors shall consult with their own
advisors concerning such matters and shall be responsible for making their own independent
investigation and appraisal of the transactions contemplated hereby, and the Initial
Purchasers shall have no responsibility or liability to the Issuers or Guarantors with
respect thereto. Any review by the Initial Purchasers of the Issuers or the Guarantors, the
transactions contemplated hereby or other matters relating to such transactions will be
performed solely for the benefit of the Initial Purchasers and shall not be on behalf of the
Issuers or the Guarantors.

          5. Expenses. (a) Whether or not the transactions contemplated in this Agreement are
consummated or this Agreement is terminated, the Issuers and the Guarantors will pay or cause to be
paid all expenses incident to the performance of their obligations under this Agreement, including:
(i) the fees, disbursements and expenses of the Issuers’ counsel and the Issuers’ accountants in
connection with the issuance and sale of the Notes and all other fees or expenses in connection
with the preparation of the Preliminary Memorandum, the Offering Memorandum and the Final
Memorandum and all amendments and supplements thereto, including all printing costs associated
therewith, and the delivery of copies requested by the Initial Purchasers, in the quantities herein
above specified, (ii) all costs and expenses related to the transfer and delivery of the Notes to
the Initial Purchasers, including any transfer or other taxes payable thereon, (iii) the cost of
producing any Blue Sky or legal investment memorandum in connection with the offer and sale of the
Notes under state securities laws and all expenses in connection with the qualification of the
Notes for offer and sale under state securities laws as provided in Section 4(d) hereof, including
filing fees and the reasonable fees and disbursements of Counsel for the Initial Purchasers in
connection with such qualification and in connection with the Blue Sky or legal investment
memorandum, (iv) any fees charged by rating agencies for the rating of the Notes, (v) all document
production charges and expenses of counsel to the Initial Purchasers (but not including their fees
for professional services) in connection with the preparation of this Agreement, (vi) the costs and
charges of the Trustee and any transfer agent, registrar or depositary, (vii) the cost of the
preparation, issuance and delivery of the Notes, (viii) all costs and expenses of the Issuers
relating to investor presentations, including any “road show” presentations undertaken in
connection with the marketing of the offering of the Notes, including, without limitation,
out-of-pocket expenses associated with the production of road show slides and graphics, fees and
expenses of any consultants engaged in connection with the road show presentations, travel and
lodging expenses of the officers of the Issuers and the Guarantors, and the cost of any aircraft
chartered in connection with the road show, and (ix) all other costs and expenses incident to the
performance of the obligations of the Issuers and the Guarantors hereunder for which provision is
not otherwise made in this Section. Except as provided in this Section 5 and Section 7 hereof, the
Initial Purchasers shall pay their own expenses, including the fees and disbursements of their
counsel.

     (b) If the sale of the Notes provided for herein is not consummated because any
condition to the obligations of the Initial Purchasers set forth in Section 6 hereof is not
satisfied, because this Agreement is terminated pursuant to Section 9 hereof or

 

 

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because of any failure, refusal or inability on the part of the Issuers to perform all
obligations and satisfy all conditions on its part to be performed or satisfied hereunder
other than by reason of a default by any of the Initial Purchasers, the Issuers will
reimburse the Initial Purchasers upon demand for all reasonable out-of-pocket expenses
(including counsel fees and disbursements) that shall have been incurred by them in
connection with the proposed purchase and sale of the Notes.

          6. Conditions to the Initial Purchaser’s Obligations. The obligations of the several
Initial Purchasers to purchase and pay for the Notes shall be subject to the accuracy of the
representations and warranties of the Issuers and the Guarantors in Section 1 hereof, in each case
as of the date hereof and as of the Closing Date, as if made on and as of the Closing Date, to the
accuracy of the statements of the Issuers’ and Guarantors’ officers made pursuant to the provisions
hereof, to the performance by the Issuers of their covenants and agreements hereunder and to the
following additional conditions:

     (a) The Initial Purchasers shall have received an opinion, dated the Closing Date, of
Baker Botts LLP, counsel for the Issuers, in form and substance satisfactory to the Initial
Purchasers, to the effect set forth in Exhibit A hereto.

     (b) The Initial Purchasers shall have received an opinion, dated the Closing Date, of
the Counsel for the Initial Purchasers with respect to the issuance and sale of the Notes
and such other related matters as the Initial Purchasers may reasonably require, and the
Issuers shall have furnished to such counsel such documents as it may reasonably request for
the purpose of enabling it to pass upon such matters.

     (c) The Initial Purchasers shall have received on each of the date hereof and the
Closing Date a letter, dated the date hereof or the Closing Date, as the case may be, in
form and substance satisfactory to the Initial Purchasers and Counsel for the Initial
Purchasers, from KPMG LLP, independent public accountants, containing statements and
information of the type ordinarily included in accountants’ “comfort letters” to
underwriters with respect to the financial statements and certain financial information
contained in the Offering Memorandum; provided that the letter shall use a “cut-off date”
within three days of the date of such letter and that their procedures, shall extend to
financial information in the Final Memorandum not contained in the Preliminary Memorandum.
References to the Offering Memorandum in this paragraph (c) with respect to either letter
referred to above shall include any amendment or supplement thereto at the date of such
letter.

     (d) (i) None of Partnership nor any of its subsidiaries, shall have sustained, since
the date of the latest audited financial statements included in the Preliminary Memorandum
and the Offering Memorandum (exclusive of any amendment or supplement thereto), any material
loss or interference with their respective businesses or properties from fire, explosion,
flood, accident or other calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree (whether domestic or foreign)
otherwise than as set forth in the Preliminary Memorandum and the Offering Memorandum
(exclusive of any amendment or supplement thereto); and (ii) since the respective dates as
of which information is given

 

 

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in the Preliminary Memorandum and the Offering Memorandum, there shall not have been
any material change in the capital stock or material increase in the long-term debt of
Partnership and its subsidiaries, or any material change in or effect on or any development
having a prospective change in or effect on the business, operations, properties, assets,
liabilities, stockholders’ equity, earnings, condition (financial or otherwise), results of
operations or management of Partnership and its subsidiaries, whether or not in the ordinary
course of business, otherwise than as set forth in each such Memorandum (exclusive of any
amendment or supplement thereto), the effect of which, in any such case described in clause
(i) or (ii), is, in the sole judgment of the Representatives, so material and adverse as to
make it impracticable or inadvisable to market the Notes on the terms and in the manner
described in the Preliminary Memorandum and the Offering Memorandum (exclusive of any
amendment or supplement thereto).

     (e) None of the information set forth in the sections of the Offering Memorandum
entitled “Use of Proceeds” and “Description of Certain Indebtedness” shall have materially
changed, nor shall there have been any material change in the information with respect to
the directors and officers of the Issuers from what is set forth in the section of the
Offering Memorandum entitled “Management”, if the effect of any such change, individually or
in the aggregate, in the sole judgment of the Representatives makes it impracticable or
inadvisable to proceed with the offering or the delivery of the Notes on the terms and in
the manner described in the Offering Memorandum, exclusive of any amendment or supplement
thereto.

     (f) The Initial Purchasers shall have received a certificate, dated the Closing Date
and in form and substance satisfactory to the Initial Purchasers, of the Chief Executive
Officer and the Chief Financial Officer of General Partner as to the accuracy of the
representations and warranties of the Issuers and the Guarantors in this Agreement at and as
of the Closing Date; that the Issuers and the Guarantors have has performed all covenants
and agreements and satisfied all conditions on its part to be performed or satisfied at or
prior to the Closing Date; and as to the matters set forth in Sections 6(d), (e) and (g).

     (g) Subsequent to the date hereof, there shall not have been any decrease in the rating
of the Notes or any of the Issuers’ other debt securities by any “nationally recognized
statistical rating agency”, as that term is defined by the Commission for purposes of Rule
436(g)(2) under the Securities Act, and no such organization shall have publicly announced
that it has under surveillance or review its ratings of the Securities or any of the
Issuers’ other debt securities or any notice or public announcement given of any intended or
potential decrease in any such rating or that any such securities rating agency has under
surveillance or review, with possible negative implications, its rating of the Notes.

     (h) The Notes shall be eligible for clearance and settlement through the Depository
Trust Company.

 

 

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     (i) The Initial Purchasers shall have received a counterpart of the Registration Rights
Agreement that shall have been executed and delivered by a duly authorized officers of the
Issuers and the Guarantors;

     (j) On or before the Closing Date, the Initial Purchasers and Counsel for the Initial
Purchasers shall have received such further certificates, documents or other information as
they may have reasonably requested from the Issuers and the Guarantors.

          7. Indemnification and Contribution. (a) The Issuers and each Guarantor, jointly and
severally, agrees to indemnify and hold harmless each Initial Purchaser, its directors, officers
and employees and each person, if any, who controls (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) any Initial Purchaser against any losses, claims,
damages or liabilities, joint or several, to which such Initial Purchaser or such other person may
become subject, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of any
material fact contained in the Preliminary Memorandum, the Offering Memorandum, any Issuer Written
Communication or the Final Memorandum (or any amendment or supplement thereto); or (ii) the
omission or alleged omission to state in the Preliminary Memorandum, the Offering Memorandum, any
Issuer Written Communication or the Final Memorandum (or any amendment or supplement thereto) a
material fact necessary to make the statements therein, in the light of the circumstances in which
they were made, not misleading, and will reimburse, as incurred, each Initial Purchaser and each
such other person for any legal or other expenses reasonably incurred by such Initial Purchaser or
such other person in connection with investigating, defending against or appearing as a third-party
witness in connection with any such loss, claim, damage, liability or action; provided,
however, that the Issuers and the Guarantors will not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in the Preliminary
Memorandum, the Offering Memorandum, any Issuer Written Communication or the Final Memorandum (or
any amendment or supplement thereto), in reliance upon and in conformity with written information
furnished to the Issuers by such Initial Purchasers through the Representatives specifically for
use therein as set forth in Section 11 hereof.

     (b) Each Initial Purchaser, severally and not jointly, will indemnify and hold harmless
the Issuers and the Guarantors and their respective affiliates, directors, officers, and
employees and each person, if any, who controls any of the Issuers or the Guarantors within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act against
any losses, claims, damages or liabilities to which the Issuers, the Guarantors or any such
affiliates, directors or officers or such controlling person may become subject, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon (i) any untrue statement or alleged untrue statement of any material fact
contained in the Preliminary Memorandum, the Offering Memorandum, any Issuer Written
Communication or the Final Memorandum (or any amendment or supplement thereto), or (ii) the
omission or alleged omission to state in the Preliminary Memorandum, the Offering
Memorandum, any Issuer Written Communication or the Final Memorandum (or any amendment or
supplement thereto) a material fact necessary to make the statements therein, in the light
of the circumstances under which they were

 

 

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made, not misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission was made in
reliance upon and in conformity with written information furnished to the Issuers by the
Initial Purchasers through the Representatives specifically for use therein as set forth in
Section 11 hereof and, subject to the limitation set forth immediately preceding this
clause, will reimburse as incurred, any legal or other expenses reasonably incurred by the
Issuers or the Guarantors or any such affiliates, directors or officers or such controlling
person in connection with investigating, defending against or appearing as a third-party
witness in connection with, any such loss, claim, damage, liability or action in respect
thereof.

     (c) Promptly after receipt by any person to whom indemnity may be available (the
“indemnified party”) under this Section 7(a) and 7(b) of notice of the commencement of any
action, such indemnified party will, if a claim in respect thereof is to be made against any
person from whom indemnity may be sought (the “indemnifying party”) under this Section 7(a)
and Section 7(b), notify such indemnifying party of the commencement thereof; but the
failure so to notify such indemnifying party will not relieve such indemnifying party from
any liability which it may otherwise have to such indemnified party under this Section 7,
except to the extent it has been materially prejudiced by such failure. In case any such
action is brought against any indemnified party, and such indemnified party notifies the
relevant indemnifying party of the commencement thereof, such indemnifying party will be
entitled to participate therein and, to the extent that it may wish, to assume the defense
thereof, jointly with any other indemnifying party similarly notified, with counsel
satisfactory to such indemnified party; provided, however, that if the named
parties in any such action (including impleaded parties) include both the indemnified party
and the indemnifying party and the indemnified party shall have concluded, based on advice
of outside counsel, that there may be one or more legal defenses available to it and/or
other indemnified parties which are different from or additional to those available to the
indemnifying party or that representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them, the indemnifying
party shall not have the right to direct the defense of such action on behalf of such
indemnified party or parties and such indemnified party or parties shall have the right to
select separate counsel to defend such action on behalf of such indemnified party or
parties. After notice from an indemnifying party to an indemnified party of its election so
to assume the defense thereof and approval by such indemnified party of counsel appointed to
defend such action, such indemnifying party will not be liable to such indemnified party
under this Section 7 for any legal or other expenses, other than reasonable costs of
investigation, subsequently incurred by such indemnified party in connection with the
defense thereof, unless (i) such indemnified party shall have employed separate counsel in
accordance with the proviso to the immediately preceding sentence or (ii) such indemnifying
party does not promptly retain counsel satisfactory to such indemnified party or (iii) such
indemnifying party has authorized the employment of counsel for such indemnified party at
the expense of the indemnifying party. After such notice from an indemnifying party to an
indemnified party, such indemnifying party will not be liable for the costs and expenses of
any settlement of such action effected by such indemnified party without the written consent
of such indemnifying party. It is understood and agreed that the

 

 

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indemnifying party shall not, in connection with any proceeding or related proceeding,
be liable for the fees and expenses of more than one separate firm (in addition to any
local counsel) for all indemnified persons. An indemnifying party will not, without the
prior written consent of the indemnified party, settle or compromise or consent to the entry
of any judgment in any pending or threatened claim, action, suit or proceeding in respect of
which indemnification may be sought hereunder (whether or not the indemnified party or any
other person that may be entitled to indemnification hereunder is a party to such claim,
action, suit or proceeding) unless such settlement, compromise or consent includes an
unconditional release of the indemnified party and such other persons from all liability
arising out of such claim, action, suit or proceeding.

     (d) (i) In circumstances in which the indemnity agreement provided for in the
preceding paragraphs of this Section 7 is unavailable or insufficient, for any reason, to
hold harmless an indemnified party in respect of any losses, claims, damages or liabilities
(including, without limitation, any legal or other expenses incurred in connection with
defending or investigating any action or claim) (or actions in respect thereof) (“Losses”),
the Issuers and the Guarantors, on the one hand, and the Initial Purchasers, on the other,
in order to provide for just and equitable contribution, agree to contribute to the amount
paid or payable by such indemnified party as a result of such Losses to which the Issuers
and the Guarantors, on the one hand, and the Initial Purchasers, on the other, may be
subject, in such proportion as is appropriate to reflect the relative benefits received by
the Issuers and the Guarantors, on the one hand, and the Initial Purchasers, on the other,
from the offering of the Notes or (ii) if the allocation provided by the foregoing clause
(i) is unavailable for any reason, not only such relative benefits but also the relative
fault of the Issuers and the Guarantors, on the one hand, and the Initial Purchasers, on the
other, in connection with the statements or omissions or alleged statements or omissions
that resulted in such Losses. The relative benefits received by the Issuers and the
Guarantors, on the one hand, and the Initial Purchasers, on the other, shall be deemed to be
in the same proportion as the total net proceeds from the offering (before deducting
expenses) received by the Issuers bear to the total discounts and commissions received by
the Initial Purchasers from the Issuers in connection with the purchase of the Notes
hereunder as set forth in the Final Memorandum. The relative fault of the parties shall be
determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Issuers, the Guarantors or the Initial Purchasers,
the parties’ intent, relative knowledge, access to information and opportunity to correct or
prevent such statement or omission, and any other equitable considerations appropriate in
the circumstances. The Issuers, the Guarantors and the Initial Purchasers agree that it
would not be just and equitable if contribution were determined by pro rata allocation or by
any other method of allocation (even if the Initial Purchasers were treated as one entity
for such purpose) that does not take into account the equitable considerations referred to
above. Notwithstanding any other provision of this paragraph (d), no Initial Purchaser
shall be obligated to make contributions hereunder that in the aggregate exceed the total
underwriting discounts and commissions received by such Initial Purchaser from the Issuers
in connection with the purchase of the Notes hereunder, and no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent

 

 

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misrepresentation. The Initial Purchasers’ respective obligations to contribute
hereunder are several in proportion to their respective obligations to purchase Notes as set
forth on Schedule I hereto and not joint. For purposes of this paragraph (d), each person,
if any, who controls an Initial Purchaser within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act and each other person listed in Section 7(a) hereof
shall have the same rights to contribution as such Initial Purchaser, and each affiliate,
director or officer of the Issuers or any Guarantor and each person, if any, who controls
the Partnership within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, shall have the same rights to contribution as the Issuers and the Guarantors.

     (e) The obligations of the Issuers and the Guarantors under this Section 7 shall be in
addition to any obligations or liabilities which the Issuers and the Guarantors may
otherwise have and the obligations of the respective Initial Purchasers under this Section 7
shall be in addition to any obligations or liabilities which the Initial Purchasers may
otherwise have.

          8. Survival. The respective representations, warranties, agreements, covenants,
indemnities and other statements of the Issuers, the Guarantors, their respective officers, and the
several Initial Purchasers set forth in this Agreement or made by or on behalf of them,
respectively, pursuant to this Agreement shall remain in full force and effect, regardless of (i)
any investigation made by or on behalf of the Issuers, the Guarantors, their respective officers or
directors or any controlling person referred to in Section 7 hereof or any Initial Purchaser and
(ii) delivery of and payment for the Notes. The respective agreements, covenants, indemnities and
other statements set forth in Sections 5 and 7 hereof shall remain in full force and effect,
regardless of any termination or cancellation of this Agreement.

          9. Termination. (a) The Representatives may terminate this Agreement with respect to
the Notes by notice to the Issuers at any time on or prior to the Closing Date in the event that
the Issuers shall have failed, refused or been unable to perform in any material respect all
obligations and satisfy in any material respect all conditions on its part to be performed or
satisfied hereunder at or prior thereto or if, at or prior to the Closing Date (i) trading in
securities generally on the New York Stock Exchange, the NASDAQ National Market or in the
over-the-counter market, or trading in any securities of the Issuers on any exchange or in the
over-the-counter market, shall have been suspended or minimum or maximum prices shall have been
established on any such exchange or market; (ii) there has been a material disruption in
commercial banking or securities settlement, payment or clearance services in the United States;
(iii) a banking moratorium shall have been declared by New York, North Carolina or United States
authorities or (iv) there shall have been (A) an outbreak or escalation of hostilities between the
United States and any foreign power, (B) an outbreak or escalation of any other insurrection or
armed conflict involving the United States, (C) the occurrence of any other calamity or crisis
involving the United States or (D) any change in general economic, political or financial
conditions which has an effect on the U.S. financial markets, currency exchange rates or controls
or the international financial markets that, in the case of any event described in this clause
(iv), in the sole judgment of the Representatives, makes it impracticable or inadvisable to proceed
with the offer, sale and delivery of the Notes as disclosed in the Preliminary

 

 

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Memorandum or the Offering Memorandum, exclusive of any amendment or supplement thereto.

     (b) Termination of this Agreement pursuant to this Section 9 shall be without liability
of any party to any other party except as provided in Sections 5 and 7 hereof.

          10. Defaulting Initial Purchasers. If, on the Closing Date, any Initial Purchaser
defaults in the performance of its obligations under this Agreement, the non-defaulting Initial
Purchasers shall be obligated to purchase the Notes that such defaulting Initial Purchaser or
Initial Purchasers agreed but failed to purchase on the Closing Date (the “Remaining Notes”) in the
respective proportions that the principal amount of the Notes set opposite the name of each
non-defaulting Initial Purchaser in Schedule I hereto bears to the total number of the Notes set
opposite the names of all the non-defaulting Initial Purchasers in Schedule I hereto;
provided, however, that the non-defaulting Initial Purchasers shall not be
obligated to purchase any of the Notes on the Closing Date if the total amount of Notes which the
defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase on such date
exceeds 10% of the total amount of Notes to be purchased on the Closing Date, and no non-defaulting
Initial Purchaser shall be obligated to purchase more than 110% of the amount of Notes that it
agreed to purchase on the Closing Date pursuant to this Agreement. If the foregoing maximums are
exceeded, the non-defaulting Initial Purchasers, or those other purchasers satisfactory to the
Initial Purchasers who so agree, shall have the right, but not the obligation, to purchase, in such
proportion as may be agreed upon among them, all the Remaining Notes. If the non-defaulting
Initial Purchasers or other Initial Purchasers satisfactory to the Initial Purchasers do not elect
to purchase the Remaining Notes, this Agreement shall terminate without liability on the part of
any non-defaulting Initial Purchaser or the Issuers, except that the Issuers will continue to be
liable for the payment of expenses to the extent set forth herein.

          Nothing contained in this Agreement shall relieve a defaulting Initial Purchaser of any
liability it may have to the Issuers for damages caused by its default. If other purchasers are
obligated or agree to purchase the Notes of a defaulting or withdrawing Initial Purchaser, the
Issuers or the Representatives may postpone the Closing Date for up to five full business days in
order to effect any changes in the Notes, the Guarantees or the Transaction Documents or in any
other document or arrangement that, in the opinion of counsel for the Issuers or Counsel for the
Initial Purchasers, may be necessary.

          11. Information Supplied by Initial Purchasers. The statements set forth in the last
two sentences of the third paragraph, the fourth sentence of the fourth paragraph and the eighth
paragraph, excluding the last sentence, under the heading “Plan of Distribution” in the Preliminary
Memorandum, the Offering Memorandum, to the extent such statements relate to the Initial
Purchasers, constitute the only information furnished by the Initial Purchasers to the Issuers for
the purposes of Sections 1(a) and 7 hereof.

          12. Notices. All communications hereunder shall be in writing and, if sent to any of
the Initial Purchasers, shall be delivered or sent by mail, telex or facsimile transmission and
confirmed in writing to the Representatives, c/o Wells Fargo Securities, LLC, 301 South College
Street, Charlotte, North Carolina 28288-0604, Attention: Jeff Gore, with a copy (which shall not
constitute notice) to Vinson & Elkins, 1001 Fannin Street, Houston, Texas 77002,

 

 

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Attention: Jeff Malonson, and if sent to the Issuers, shall be delivered or sent by mail,
telex or facsimile transmission and confirmed in writing to the Issuers at Martin Midstream GP,
LLC, Attention: Ruben S. Martin, 4200 Stone Road, Kilgore, Texas 75662, facsimile number (903)
983-6262, with a copy (which shall not constitute notice) to Baker Botts L.L.P., 2001 Ross Ave.,
Dallas, Texas 75201, Attention: Neel Lemon.

          13. Successors. This Agreement shall inure to the benefit of and shall be binding
upon the several Initial Purchasers, the Issuers and the Guarantors and their respective successors
and legal representatives, and nothing expressed or mentioned in this Agreement is intended or
shall be construed to give any other person any legal or equitable right, remedy or claim under or
in respect of this Agreement, or any provisions herein contained, this Agreement and all conditions
and provisions hereof being intended to be and being for the sole and exclusive benefit of the
several Initial Purchasers, the Issuers and the Guarantors and their respective successors and
legal representatives, and for the benefit of no other person, except that (i) the indemnities of
the Issuers and the Guarantors contained in Section 7 of this Agreement shall also be for the
benefit of any person or persons who control any Initial Purchasers within the meaning of Section
15 of the Securities Act or Section 20 of the Exchange Act and (ii) the indemnities of the Initial
Purchasers contained in Section 7 of this Agreement shall also be for the benefit of the
affiliates, directors and officers of the Issuers and the Guarantors, and any person or persons who
control the Issuers or the Guarantors within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act. No purchaser of Notes from any Initial Purchaser shall be deemed a
successor to such Initial Purchaser because of such purchase.

          14. Applicable Law. This Agreement shall be governed by the laws of the State of New
York.

          15. Consent to Jurisdiction and Service of Process; Waiver of Jury Trial. (a) All
judicial proceedings arising out of or relating to this Agreement may be brought in any state or
federal court of competent jurisdiction in the State of New York, which jurisdiction is exclusive,
and the Issuers and the Guarantors hereby consent to the jurisdiction of such courts.

     (b) Each party agrees that any service of process or other legal summons in connection
with any Proceeding may be served on it by mailing a copy thereof by registered mail, or a
form of mail substantially equivalent thereto, postage prepaid, addressed to the served
party at its address as provided for in Section 12 hereof. Nothing in this Section shall
affect the right of the parties to serve process in any other manner permitted by law.

     (c) Each of the Issuers and the Guarantors hereby waives all right to trial by jury in
any proceeding (whether based upon contract, tort or otherwise) in any way arising out of or
relating to this Agreement. Each of the Issuers and the Guarantors agrees that a final
judgment in any such proceeding brought in any such court shall be conclusive and binding
upon it and may be enforced in any other courts in the jurisdiction of which it is or may be
subject, by suit upon such judgment.

          16. Judgment Currency. If for the purposes of obtaining judgment in any court it is
necessary to convert a sum due hereunder into any currency other than U.S. dollars, the

 

 

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parties hereto agree, to the fullest extent that they may effectively do so, that the rate of
exchange used shall be the rate at which in accordance with normal banking procedures the Initial
Purchasers could purchase U.S. dollars with such other currency in the City of New York on the
business day preceding that on which final judgment is given. The obligations of each Issuers and
each Guarantor in respect of any sum due from them to any Initial Purchaser shall, notwithstanding
any judgment in any currency other than U.S. dollars, not be discharged until the first business
day, following receipt by such Initial Purchaser of any sum adjudged to be so due in such other
currency, on which (and only to the extent that) such Initial Purchaser may in accordance with
normal banking procedures purchase U.S. dollars with such other currency; if the U.S. dollars so
purchased are less than the sum originally due to such Initial Purchaser hereunder, each Issuer and
each Guarantor agrees, as a separate obligation and notwithstanding any such judgment, to indemnify
such Initial Purchaser against such loss. If the U.S. dollars so purchased are greater than the
sum originally due to such Initial Purchaser hereunder, such Initial Purchaser agrees to pay to the
Issuers and the Guarantors (but without duplication) an amount equal to the excess of the U.S.
dollars so purchased over the sum originally due to such Initial Purchaser hereunder.

          17. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

[The remainder of this page is intentionally left blank.]

 

 

     If the foregoing correctly sets forth our understanding, please indicate your acceptance
thereof in the space provided below for that purpose, whereupon this letter shall constitute an
agreement binding the Issuers, the Guarantors and the Initial Purchasers.

	 	 	 	 	 
	 

	 	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	MARTIN MIDSTREAM PARTNERS L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Martin Midstream GP LLC,

as general partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Robert D. Bondurant
	 

	 	 	 	 
	 

	 	Name:
	 	Robert D. Bondurant
	 

	 	Title:
	 	Executive Vice President and Chief
	 

	 	 	 	Financial Officer
	 
	 	 	 	 
	 	 	MARTIN MIDSTREAM FINANCE CORP.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Robert D. Bondurant
	 

	 	 	 	 
	 

	 	Name:
	 	Robert D. Bondurant
	 

	 	Title:
	 	Executive Vice President and Chief
	 

	 	 	 	Financial Officer
	 
	 	 	 	 
	 	 	MARTIN OPERATING GP LLC
	 
	 	 	 	 
	 

	 	By:
	 	Martin Midstream Partners L.P.,
	 

	 	 	 	as sole member
	 
	 	 	 	 
	 

	 	By:
	 	Martin Midstream GP LLC,
	 

	 	 	 	as general partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Robert D. Bondurant
	 

	 	 	 	 
	 

	 	Name:
	 	Robert D. Bondurant
	 

	 	Title:
	 	Executive Vice President and Chief
	 

	 	 	 	Financial Officer

 [Signature Page to Purchase Agreement]

 

 

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	 	 	MARTIN OPERATING PARTNERSHIP L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Martin Operating GP LLC,
	 

	 	 	 	as general partner
	 
	 	 	 	 
	 

	 	By:
	 	Martin Midstream Partners L.P.,
	 

	 	 	 	as sole member
	 
	 	 	 	 
	 

	 	By:
	 	Martin Midstream GP LLC,
	 

	 	 	 	as general partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Robert D. Bondurant
	 

	 	 	 	 
	 

	 	Name:
	 	Robert D. Bondurant
	 

	 	Title:
	 	Executive Vice President and Chief
	 

	 	 	 	Financial Officer
	 
	 	 	 	 
	 	 	PRISM GAS SYSTEMS I, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Prism Gas Systems GP, L.L.C.
	 

	 	 	 	as general partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Robert D. Bondurant
	 

	 	 	 	 
	 

	 	Name:
	 	Robert D. Bondurant
	 

	 	Title:
	 	Treasurer
	 
	 	 	 	 
	 	 	PRISM GAS SYSTEMS GP, L.L.C.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Robert D. Bondurant
	 

	 	 	 	 
	 

	 	Name:
	 	Robert D. Bondurant
	 

	 	Title:
	 	Treasurer
	 
	 	 	 	 
	 	 	MCLEOD GAS GATHERING AND PROCESSING COMPANY, L.L.C.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Ruben S. Martin
	 

	 	 	 	 
	 

	 	Name:
	 	Ruben S. Martin
	 

	 	Title:
	 	Sole Manager

[Signature Page to Purchase Agreement]

 

 

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	 	 	PRISM GULF COAST SYSTEMS, L.L.C.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Robert D. Bondurant
	 

	 	 	 	 
	 

	 	Name:
	 	Robert D. Bondurant
	 

	 	Title:
	 	Treasurer
	 
	 	 	 	 
	 	 	WOODLAWN PIPELINE CO., INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Robert D. Bondurant
	 

	 	 	 	 
	 

	 	Name:
	 	Robert D. Bondurant
	 

	 	Title:
	 	Executive Vice President
	 
	 	 	 	 
	 	 	PRISM LIQUIDS PIPELINE LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ Robert D. Bondurant
	 

	 	 	 	 
	 

	 	Name:
	 	Robert D. Bondurant
	 

	 	Title:
	 	Executive Vice President

[Signature Page to Purchase Agreement]

 

 

Execution version

Accepted as of the date hereof.

WELLS FARGO SECURITIES, LLC

RBC CAPITAL MARKETS CORPORATION

UBS SECURITIES LLC

Acting severally on behalf of themselves

     and the several Initial Purchasers named

     in Schedule I hereto

	 	 	 	 	 
	By:

	 	WELLS FARGO SECURITIES, LLC	 	 
	 
	 	 	 	 
	By:
	 	/s/ Jeff Gore	 	 
	 

	 	 

Name: Jeff Gore
	 	 
	 

	 	Title: Managing Director	 	 
	 
	 	 	 	 
	By:

	 	RBC CAPITAL MARKETS CORPORATION	 	 
	 
	 	 	 	 
	By:
	 	/s/ David Capaldi	 	 
	 

	 	 

Name: David Capaldi
	 	 
	 

	 	Title: Managing Director	 	 
	 
	 	 	 	 
	By:

	 	UBS SECURITIES LLC	 	 
	 
	 	 	 	 
	By:
	 	/s/ Chris Juban	 	 
	 

	 	 

Name: Chris Juban
	 	 
	 

	 	Title: Executive Director	 	 
	 
	 	 	 	 
	By:
	 	/s/ Kenneth Owen	 	 
	 

	 	 

Name: Kenneth Owen
	 	 
	 

	 	Title: Director	 	 

[Signature Page to Purchase Agreement]

 

EXHIBIT A

FORM OF OPINION OF Baker Botts LLP

          The opinion of Baker Botts LLP to be delivered pursuant to Section 6(a) of the Purchase
Agreement shall be to the effect that:

     1. Each of the Partnership and the Operating Partnership has been duly formed and is
validly existing in good standing as a limited partnership under the Delaware LP Act with
all necessary limited partnership power and authority to own or lease its properties and to
conduct its business as presently conducted and as described in the Offering Memorandum and
the Final Memorandum, in each case in all material respects.

     2. Each of the General Partner and Operating GP has been duly formed and is validly
existing in good standing as a limited liability company under the Delaware LLC Act with all
necessary limited liability company power and authority to own or lease its properties and
to conduct its business as presently conducted and as described in the Offering Memorandum
and the Final Memorandum, in each case in all material respects. The General Partner has
all necessary limited liability company power and authority to act as general partner of the
Partnership. Operating GP has all necessary limited liability company power and authority
to act as general partner of the Operating Partnership.

     3. The General Partner is the sole general partner of the Partnership with a 2% general
partner interest in the Partnership; such general partner interest has been duly authorized
and validly issued in accordance with the Partnership Agreement; and the General Partner
owns such general partner interest free and clear of all liens, encumbrances, security
interests, charges or claims (i) in respect of which a financing statement under the Uniform
Commercial Code of the State of Delaware naming the General Partner as debtor is on file in
the office of the Secretary of State of Delaware or (ii) otherwise known to us, without
independent investigation, in each case other than those created by or arising under the
Delaware LP Act, Permitted Liens, applicable securities laws and any restrictions set forth
in the governing documents of the Issuers or Guarantors.

     4. Finance Corp. has been duly incorporated and is validly existing in good standing as
a corporation under the Delaware General Corporation Law (the “DGCL”) with full corporate
power and authority to own or lease its properties and to conduct its business in all
material respects as described in the Offering Memorandum and the Final Memorandum.

     5. The Partnership is the sole member of Operating GP with a 100% member interest in
Operating GP; such member interest has been duly authorized and validly issued in accordance
with the Operating GP Agreement and is fully paid (to the extent required under the
Operating GP Agreement) and nonassessable (except as such nonassessability may be affected
by Sections 18-607 and 18-804 of the Delaware LLC Act); and the Partnership owns such member
interest free and clear of all liens,

Ex. A-1

 

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encumbrances, security interests, charges or claims (i) in respect of which a financing
statement under the Uniform Commercial Code of the State of Delaware naming the Partnership
as debtor is on file in the office of the Secretary of State of Delaware or (ii) otherwise
known to us, without independent investigation, in each case other than those created by or
arising under the Delaware LLC Act, Permitted Liens, applicable securities laws and any
restrictions set forth in the governing documents of the Issuers or Guarantors.

     6. Operating GP is the sole general partner of the Operating Partnership with a 0.1%
general partner interest in the Operating Partnership; such general partner interest has
been duly authorized and validly issued in accordance with the Operating Partnership
Agreement, and Operating GP owns such general partner interest free and clear of all liens,
encumbrances, security interests, charges or claims (i) in respect of which a financing
statement under the Uniform Commercial Code of the State of Delaware naming Operating GP as
debtor is on file in the office of the Secretary of State of Delaware or (ii) otherwise
known to us, without independent investigation, in each case other than those created by or
arising under the Delaware LP Act, Permitted Liens, applicable securities laws and any
restrictions set forth in the governing documents of the Issuers or Guarantors.

     7. The Partnership is the sole limited partner of the Operating Partnership with a
99.9% limited partner interest in the Operating Partnership; such limited partner interest
has been duly authorized and validly issued in accordance with the Operating Partnership
Agreement and is fully paid (to the extent required under the Operating Partnership
Agreement) and nonassessable (except as such nonassessability may be affected by Sections
17-303, 17-607 and 17-804 of the Delaware LP Act); and the Partnership owns such limited
partner interest free and clear of all liens, encumbrances, security interests, charges or
claims (i) in respect of which a financing statement under the Uniform Commercial Code of
the State of Delaware naming the Partnership as debtor is on file in the office of the
Secretary of State of Delaware or (ii) otherwise known to us, without independent
investigation, in each case other than those created by or arising under the Delaware LP
Act, Permitted Liens, applicable securities laws and any restrictions set forth in the
governing documents of the Issuers or Guarantors.

     8. The Operating Partnership is the sole limited partner of Prism Gas with an aggregate
99% limited partner interest in Prism Gas, and PGSGP is the sole general partner of Prism
Gas with a 1% general partner interest in Prism Gas; and the Operating Partnership owns such
limited partner interest and PGSGP owns such general partner interest free and clear of all
liens, encumbrances, security interests, charges or claims (i) in respect of which a
financing statement under the Uniform Commercial Code of the State of Texas naming the
Operating Partnership or PGSGP as debtor is on file in the office of the Secretary of State
of Texas or (ii) otherwise known to us, without independent investigation, in each case
other than those created by or arising under the Texas LP Act, Permitted Liens, applicable
securities laws and any restrictions set forth in the governing documents of the Issuers or
Guarantors.

 

 

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     9. Prism Gas is a general partner of Waskom with a 50% general partner interest in
Waskom; and Prism Gas owns such partner interest free and clear of all liens, encumbrances,
security interests, charges or claims (i) in respect of which a financing statement under
the Uniform Commercial Code of the State of Texas naming Prism Gas as debtor is on file in
the office of the Secretary of State of Texas or (ii) otherwise known to us, without
independent investigation, in each case other than those created by or arising under the
Texas Partnership Act, Permitted Liens, applicable securities laws and any restrictions set
forth in the governing documents of the Issuers or Guarantors.

     10. Each of the Guarantors that is organized under the laws of the State of Texas or
the State of Delaware (the “Delaware-Texas Guarantors”) other than the Operating Partnership
and Operating GP has been duly formed and is validly existing as a limited partnership or
limited liability company, as the case may be, in good standing under the laws of its
jurisdiction of formation with all limited partnership or limited liability company, as the
case may be, power and authority necessary to own or lease its properties and to conduct its
business, in each case in all material respects as described in the Offering Memorandum and
the Final Memorandum. Each of the Issuers and the Delaware-Texas Guarantors is duly
registered or qualified to do business and is in good standing as a foreign limited
liability company, limited partnership or corporation, as the case may be, in each
jurisdiction set forth opposite its name on an exhibit to such opinion.

     11. Each of the Operative Agreements to which any of the Issuers or Delaware-Texas
Guarantors is a party has been duly authorized and validly executed and delivered by the
Issuers and Delaware-Texas Guarantors that are parties thereto. Assuming due authorization,
execution and delivery by each party other than an Issuers or Delaware-Texas Guarantors,
each of the Operative Agreements to which any of the Issuers or Delaware-Texas Guarantors is
a party constitutes a valid and legally binding obligation of the Issuers and Guarantors
that are parties thereto, enforceable against each such party in accordance with its terms,
subject to (i) bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer and
similar laws relating to or affecting creditors’ rights generally and by general principles
of equity (regardless of whether such enforceability is considered in a proceeding in equity
or at law) and (ii) public policy, applicable law relating to fiduciary duties and
indemnification and contribution and an implied covenant of good faith and fair dealing.

     12. Except as described in the Offering Memorandum and the Final Memorandum, to our
knowledge, there is no action, suit, inquiry, proceeding or investigation by or before any
court or governmental or other regulatory or administrative agency or commission pending or
threatened, against or involving any of the Issuers or Guarantors, or to which any of the
Issuers or Guarantors or their properties are subject that would be required to be described
by the Securities Act in a registration statement to be filed with the Commission and that
are not so described in therein.

     13. No consent, approval, authorization or order of, or filing or registration with,
any court or governmental agency or body having jurisdiction over any of the Issuers or
Delaware-Texas Guarantors or any of their respective properties is required in

 

 

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connection with the offering, issuance and sale of the Securities by the Issuers or
Delaware-Texas Guarantors in the manner contemplated by the Purchase Agreement or in the
Final Memorandum, the execution, delivery and performance of the Purchase Agreement, the
Indenture and the Registration Rights Agreement by the Issuers or Delaware-Texas Guarantors
and the consummation by the Issuers or Delaware-Texas Guarantors of the transactions
contemplated hereby and thereby, except (i) with respect to the purchase and resale of the
Securities by the Initial Purchasers, under applicable states securities or “Blue Sky” laws,
as to which we express no opinion, (ii) with respect to the Exchange Securities, as may be
required under the Securities Act and applicable state securities or “Blue Sky” laws as
contemplated by the Registration Rights Agreement, as to which we express no opinion, (iii)
with respect to the Trustee and the Indenture in respect of the Exchange Securities, as may
be required under the Trust Indenture Act, as to which we express no opinion, (iv) for such
consents that have been obtained or made, (v) for such consents that, if not obtained, would
not, individually or in the aggregate, have a Material Adverse Effect or (vi) as disclosed
in the Offering Memorandum and the Final Memorandum.

     14. None of the offering, issuance and sale of the Securities by the Issuers and the
Delaware-Texas Guarantors, respectively, the execution, delivery and performance of the
Securities, the Exchange Securities, the Indenture, the Registration Rights Agreement or the
Purchase Agreement by the Issuers or Delaware-Texas Guarantors or the consummation of the
transactions contemplated hereby or thereby (i) constitutes or will constitute a violation
of the agreement of limited partnership, limited liability company agreement or other
organizational documents of any of the Issuers or Delaware-Texas Guarantors, (ii)
constitutes or will constitute a breach or violation of, or a default (or an event which,
with notice or lapse of time or both, would constitute such a default) under any agreement
filed or incorporated by reference as an exhibit to the Partnership’s annual report on Form
10-K for the year ended December 31, 2009 that is governed by the laws of the States of New
York or Texas (the “Filed Agreements”) (other than Permitted Liens), (iii) violates or will
violate the Delaware LP Act, the Delaware LLC Act, the DGCL, the laws of the State of Texas
or the federal laws of the United States of America, provided that we express no opinion in
this paragraph (14) as to federal or state securities or anti-fraud laws or (iv) to our
knowledge, results or will result in the creation or imposition of any lien, charge or
encumbrance on any property or assets of the Issuers or Guarantors pursuant to the Filed
Agreements (other than Permitted Liens), which breaches, violations or defaults, in the case
of clauses (ii), (iii) or (iv), would, individually or in the aggregate, have a Material
Adverse Effect.

     15. Neither the Issuers nor any Delaware-Texas Guarantors is an “investment company”
within the meaning of the Investment Company Act of 1940, as amended.

     16. The Purchase Agreement has been duly and validly authorized, executed and delivered
by each of the Issuers and the Delaware-Texas Guarantors.

     17. The Registration Rights Agreement has been duly authorized, executed and delivered
by each of the Issuers and Delaware-Texas Guarantors, and (assuming the

 

 

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due authorization, execution and delivery thereof by McLeod and the Initial Purchasers)
is a valid and legally binding agreement of each of the Issuers and Guarantors, enforceable
against each of them in accordance with its terms; provided that the enforceability
thereof is subject to (i) applicable bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws relating to or affecting the rights and remedies
of creditors’ rights generally and by general principles of equity (regardless of whether
such enforceability is considered in a proceeding in equity or at law) and (ii) public
policy, applicable law relating to fiduciary duties and indemnification and contribution and
an implied covenant of good faith and fair dealing.

     18. The Indenture has been duly authorized, executed and delivered by each of the
Issuers and Delaware-Texas Guarantors, and (assuming the due authorization, execution and
delivery thereof by McLeod and the Trustee) is a valid and legally binding agreement of each
of the Issuers and Guarantors, enforceable against each of them in accordance with its
terms; provided that the enforceability thereof is subject to (i) applicable
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws
relating to or affecting the rights and remedies of creditors’ rights generally and by
general principles of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law) and (ii) public policy, applicable law relating to fiduciary
duties and indemnification and contribution and an implied covenant of good faith and fair
dealing.

     19. The Notes and the Guarantees have been duly authorized by each of the Issuers and
the Delaware-Texas Guarantors, respectively, the Notes are substantially in the form
contemplated by the Indenture and have been validly executed by each of the Issuers, and,
when duly authenticated by the Trustee in the manner provided for in the Indenture and
delivered to and paid for by the Initial Purchasers under the Purchase Agreement and
assuming the due authorization of the Guarantee by McLeod and assuming the due
authorization, execution and delivery of the Indenture by McLeod, will constitute valid and
binding obligations of the Issuers and the Guarantors, respectively, enforceable against
them in accordance with their respective terms, except as enforcement thereof may be limited
by (i) applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws relating to or affecting the rights and remedies of creditors’ rights
generally and by general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and (ii) public policy, applicable law
relating to fiduciary duties and indemnification and contribution and an implied covenant of
good faith and fair dealing.

     20. The Exchange Securities have been duly authorized by the Issuers and the
Delaware-Texas Guarantors, respectively, and, when the Exchange Securities have been validly
issued and duly authenticated in accordance with the terms of the Indenture, the
Registration Rights Agreement and the Exchange Offer and assuming the due authorization of
the guarantee related to the Exchange Securities by McLeod, the Exchange Securities will
have been validly executed and will constitute valid and binding obligations of the Issuers
and the Guarantors, respectively, enforceable against them in accordance with their
respective terms, except as enforcement thereof may be limited by

 

 

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(i) applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws relating to or affecting the rights and remedies of creditors’ rights
generally and by general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and (ii) public policy, applicable law
relating to fiduciary duties and indemnification and contribution and an implied covenant of
good faith and fair dealing.

     21. The statements set forth or incorporated by reference in each of the Preliminary
Memorandum and the Final Memorandum (i) under the captions “Summary — The Offering” and
“Description of Notes,” insofar as they purport to constitute summaries of the terms of the
Securities, are accurate in all material respects, (ii) under the captions “United States
Federal Income and Estate Tax Considerations,” “Business — Regulation” and “Business —
Environmental and Regulatory Matters,” insofar as they purport to constitute summaries of
statutes, legal, governmental and regulatory proceedings, fairly summarize the matters
described therein in all material respects and (iii) under the caption “Description of
Certain Indebtedness,” insofar as they purport to constitute summaries of contracts and
other documents, are accurate in all material respects.

     22. Assuming the accuracy of the representations and warranties and compliance with the
agreements of the Issuers and Guarantors and the Initial Purchasers contained in the
Purchase Agreement and assuming the Securities are issued and sold under the circumstances
contemplated by the Purchase Agreement and the Final Memorandum, no registration of the
Securities under the Securities Act, and no qualification of an indenture under the Trust
Indenture Act, are required for the offer and sale by the Initial Purchasers of the
Securities in the manner contemplated by the Purchase Agreement.

          In addition, Baker Botts LLP shall include in its opinion or a separate letter the following
language:

          We have participated in conferences with officers and other representatives of the Issuers,
representatives of the independent registered public accounting firm of the Partnership and your
representatives, at which the contents of the Preliminary Memorandum, the Offering Memorandum, the
Final Memorandum and related matters were discussed. The purpose of our professional engagement
was not to establish or confirm factual matters set forth in the Preliminary Memorandum, the
Offering Memorandum, and the Final Memorandum (except as and to the extent stated in paragraph 21
above), and we have not undertaken to verify independently any of the factual matters in such
documents. Moreover, many of the determinations required to be made in the preparation of the
Final Memorandum involve matters of a non-legal nature. Accordingly, we do not pass upon and do
not assume responsibility for the accuracy, completeness or fairness of the statements contained
in, the Preliminary Memorandum, the Offering Memorandum and the Final Memorandum (except as and to
the extent stated in paragraph 21 above). Subject to the foregoing and on the basis of the
information we gained in the course of performing services referred to above, we advise you that
nothing came to our attention that caused us to believe that:

 

 

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          (a) the Offering Memorandum as of the Time of Sale, included an untrue statement of a material
fact or omitted to state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading; or

          (b) the Final Memorandum, as of its date and as of the Closing Date, included or includes an
untrue statement of a material fact or omitted or omits to state a material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading;

it being understood that we express no statement or belief in this letter with respect to (i) the
financial statements and related schedules, including the notes and schedules thereto and the
auditor’s report thereon, included or incorporated by reference therein, (ii) any other financial
or accounting information or data contained or incorporated by reference therein or (iii) the
representations and warranties and other statements of fact included in the exhibits to any
document incorporated by reference therein.

 

 

SCHEDULE I

INITIAL PURCHASERS

	 	 	 	 	 
	 	 	Aggregate Principal
	 	 	Amount of Notes to be
	Initial Purchaser	 	Purchased from the Issuers
	Wells Fargo Securities, LLC
	 	$	77,000,000	 
	 
	RBC Capital Markets Corporation
	 	 	30,000,000	 
	 
	UBS Securities LLC
	 	 	20,000,000	 
	 
	BBVA Securities Inc.
	 	 	15,000,000	 
	 
	Comerica Securities, Inc.
	 	 	15,000,000	 
	 
	Morgan Keegan & Company, Inc.
	 	 	15,000,000	 
	 
	Natixis Bleichroeder LLC
	 	 	7,000,000	 
	 
	Raymond James & Associates, Inc.
	 	 	7,000,000	 
	 
	RBS Securities Inc.
	 	 	7,000,000	 
	 
	SunTrust Robinson Humphrey, Inc.
	 	 	7,000,000	 
	 
	Total
	 	$	200,000,000	 

S-I-1

 

SCHEDULE II

SUBSIDIARY GUARANTORS

MARTIN OPERATING GP LLC, a Delaware limited liability company

MARTIN OPERATING PARTNERSHIP, L.P., a Delaware limited partnership

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

PRISM GAS SYSTEMS GP, L.L.C., a Texas limited liability company

PRISM GULF COAST SYSTEMS, L.L.C., a Texas limited liability company

MCLEOD GAS GATHERING AND PROCESSING COMPANY, L.L.C., a Louisiana limited liability company

WOODLAWN PIPELINE CO., INC., a Texas corporation

PRISM LIQUIDS PIPELINE LLC, a Texas limited liability company

S-II-1

 

Schedule III

FORM OF PRICING TERM SHEET

			
	 	 	 
	PRICING SUPPLEMENT
	 	STRICTLY CONFIDENTIAL

$200,000,000

Martin Midstream Partners L.P.

Martin Midstream Finance Corp.

87/8% Senior Notes due 2018

March 23, 2010

Pricing Supplement dated March 23, 2010 to the Preliminary Offering Memorandum dated March 16,
2010.

This Pricing Supplement is qualified in its entirety by reference to the Preliminary Offering
Memorandum. Capitalized terms used below have the meanings given in the Preliminary Offering
Memorandum.

The information in this Pricing Supplement supplements the Preliminary Offering Memorandum and
supersedes the information in the Preliminary Offering Memorandum to the extent inconsistent with
the information in the Preliminary Offering Memorandum.

The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities
Act”), and are being offered only to qualified institutional buyers pursuant to Rule 144A under the
Securities Act and outside the United States to non-U.S. persons in accordance with Regulation S
under the Securities Act. The Notes are not transferable except in accordance with the
restrictions described under “Notice to Investors” in the Preliminary Offering Memorandum.

	 	 	 
	Principal Amount:

	 	 $200,000,000
	 
	 	 
	Gross Proceeds:

	 	 $197,188,000
	 
	 	 
	Title of Securities:

	 	 87/8% Senior Notes due 2018 (the “Notes”)
	 
	 	 
	Distribution:

	 	 144A/Regulation S with registration rights as set forth in the
Preliminary Offering Memorandum
	 
	 	 
	Final Maturity Date:

	 	April 1, 2018
	 
	 	 
	Issue Price:

	 	 98.594%, plus accrued interest, if any, from March 26, 2010
	 
	 	 
	Coupon:

	 	 87/8%
	 
	 	 
	Interest Payment Dates:

	 	April 1 and October 1
	 
	 	 
	Record Dates:

	 	March 15 and September 15
	 
	 	 
	First Interest Payment Date:

	 	October 1, 2010
	 
	 	 
	Trade Date:

	 	March 23, 2010
	 
	 	 
	Settlement Date:

	 	March 26, 2010 (T+3)

S-III-1

 

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Optional Redemption Call
Schedule:

	 	 	 
	Year	 	Percentage
	 
	April 1, 2014

	 	 104.438%
	April 1, 2015

	 	 102.219%
	April 1, 2016 and thereafter

	 	 100.000%

	 	 	 
	Make-Whole Amount:

	 	Make-whole call prior to April 1, 2014, as described in the
Preliminary Offering Memorandum.
	 
	 	 
	Equity Claw:

	 	Up to 35% prior to April 1, 2013 at
1087/8% of the principal amount of the
Notes.

	 	 	 	 	 
	Identification Numbers:

	 	144A:
	 	CUSIP: 573334 AA7
	 

	 	 
	 	ISIN: US573334AA76
	 
	 	 	 	 
	 

	 	Reg S:
	 	CUSIP: U57363 AA8
	 

	 	
	 	ISIN: USU57363AA85

	 	 	 
	Initial Purchasers:

	 	Wells Fargo Securities, LLC, RBC Capital Markets Corporation,
	 

	 	UBS Securities LLC, BBVA Securities Inc., Comerica Securities,
	 

	 	Inc., Morgan Keegan & Company, Inc., Natixis Bleichroeder LLC,
	 

	 	Raymond James & Associates, Inc., RBS Securities Inc. and
	 

	 	SunTrust Robinson Humphrey, Inc.
	 
	 	 
	Joint Book-Running Managers:

	 	Wells Fargo Securities, LLC
	 

	 	RBC Capital Markets Corporation
	 

	 	UBS Securities LLC
	 
	 	 
	Senior Co-Managers:

	 	BBVA Securities Inc.
	 

	 	Comerica Securities, Inc.
	 

	 	Morgan Keegan & Company, Inc.
	 
	 	 
	Co-Managers:

	 	Natixis Bleichroeder LLC
	 

	 	Raymond James & Associates, Inc.
	 

	 	RBS Securities Inc.
	 

	 	SunTrust Robinson Humphrey, Inc.
	 
	 	 
	Changes from Preliminary

	 	 
	Offering Memorandum:

	 	The following changes will be made to the Preliminary Offering Memorandum:

Use of Proceeds

We expect that the net proceeds of this offering will be approximately $191.7 million, after
deducting the initial purchasers’ discount, original issue discount and our estimated offering
expenses.

Revised Capitalization Disclosure

In the As Further Adjusted column of the capitalization table on page 37 of the Preliminary
Offering

 Memorandum, Revolving credit facility is $79,510, Total senior secured debt is $85,793, Senior
notes offered hereby is $197,188, Total debt is $282,981 and Total capitalization is $599,606. (All
amounts in thousands)

Ranking

As of December 31, 2009, on an as further adjusted basis after giving effect to this offering and
our use of proceeds therefrom and the other transactions described under “Capitalization”, the
Notes would be effectively junior to

 $85.8 million of outstanding senior secured indebtedness, which includes $6.3 million in capital
lease obligations and $79.5 million outstanding under our senior secured credit facility (to the
extent of the value of the assets
securing such indebtedness).

Original Issue Discount

The Notes will not be issued with original issue discount, or OID, for U.S. federal income tax
purposes.

 

 

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Other information (including financial information) presented in the Preliminary Offering
Memorandum is deemed to have changed to the extent effected by the changes described herein.

This material is confidential and is for your information only and is not intended to be used by
anyone other than you. This information does not purport to be a complete description of these
Notes or the offering. Please refer to the Preliminary Offering Memorandum for a complete
description.

Any disclaimers or other notices that may appear below are not applicable to this communication and
should be disregarded. Such disclaimers or other notices were automatically generated as a result
of this
communication being sent via Bloomberg email or another communication system.

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