Document:

Exhibit 10.9

 

Execution Version

 

MANAGEMENT
AGREEMENT

 

MANAGEMENT AGREEMENT (this “Agreement”)
made as of this 1st day of February, 2005 by and among FS Private
Investments III LLC (“JCP”) and Edgen Corporation, a Nevada corporation
(the “Company”).

 

W I
T  N  E  S  S  E  T  H:

 

WHEREAS, the Company may desire to retain JCP
in the future to provide business and organizational strategy, financial and
investment management, advisory and merchant and investment banking services to
the Company upon the terms and conditions hereinafter set forth, and JCP may be
willing to undertake such obligations.

 

NOW, THEREFORE, in consideration of the
mutual covenants and agreements hereinafter set forth, the parties agree as
follows:

 

1.             Appointment.  From and after the Appointment Date (as
hereinafter defined) the Company engages JCP to provide, and JCP agrees to
provide certain services to the Company as described in Section 3 hereof,
upon the terms and subject to the conditions set forth herein.  The “Appointment Date” shall mean the
date JCP accepts in writing the Company’s written request that JCP commence
delivering Services hereunder.

 

2.             Term.  The term of this Agreement (the “Term”)
shall be for an initial term expiring ten years after the date hereof.  Such term shall be renewed automatically for
additional one-year terms thereafter unless JCP or the Company shall give
notice in writing within 90 days before the expiration of the initial term or
any one-year renewal thereof of its desire to terminate this Agreement.  The provisions of Section 6 and such
other provisions of this Agreement as the context so requires shall survive the
termination of this Agreement.

 

3.             Duties
of JCP.  JCP shall provide the
Company with business and organizational strategy, financial and investment
management, advisory and merchant and investment banking services, as the
Company may reasonably request from time to time after the Appointment Date (collectively,
the “Services”).

 

The Company will use the Services of JCP and JCP
will make itself available for the performance of the Services upon reasonable
notice.  JCP will perform the Services at
the times and places reasonably requested by the Company to meet its needs and
requirements, taking into account other engagements that JCP may have.

 

3.1.          Exclusions
from Services.  Notwithstanding
anything in the foregoing to the contrary, the following services are
specifically excluded from the definition of “Services”:

 

(i)            Independent
Accounting Services.  Accounting
services rendered to the Company or JCP by an independent accounting firm or
accountant (i.e., an accountant who is not an employee of JCP);

 

 

(ii)           Legal
Services.  Legal services rendered to
the Company or JCP by an independent law firm or attorney (i.e., an attorney
who is not an employee of JCP);

 

(iii)          Transaction
Services.  Services rendered in
connection with any transaction (including, without limitation, any merger,
acquisition, divestiture or financing) in which the Company or any of its
subsidiaries or affiliates may be, or may consider becoming, involved (“Transaction
Services”); it being understood that before the Company or any of its
subsidiaries or affiliates engages any person or entity to provide any
Transaction Services, JCP shall be first approached and shall have a thirty day
period during which it may decide to perform, for an additional fee to be
established at such time, any such Transaction Services; and

 

(iv)          Independent
Actuarial Services.  Actuarial
services rendered to the Company or JCP by an independent actuarial firm or
actuary (i.e., an actuary who is not an employee of JCP).

 

4.             Powers
of JCP.  So that it may properly
perform its duties hereunder, JCP shall, subject to Section 7 hereof, have
the authority to do all things necessary and proper to carry out the duties set
forth in Section 3.

 

5.             Compensation
and Reimbursement.

 

(a)           As
consideration payable to JCP or any of its affiliates for providing the
Services to the Company, the Company shall pay to JCP management fees as
follows:

 

(1)           for
the period commencing on the Appointment Date and ending on December 31st
of the then current fiscal year of the Company (the “Interim Period”),
an amount (the “Interim Period Fee”) equal to: (A) the product of
$500,000 and a fraction, the numerator of which shall be the number of days in
the Interim Period and the denominator of which shall be 365; such amount to be
payable as of the date on which Services commence;

 

(2)           for
each fiscal year commencing after the Appointment Date, an amount (the “Annual
Fee”) equal to $500,000 such amount to be payable in advance in two equal installments
on the first day of each January and July (a “Fee Payment Date”)
of each such fiscal year, commencing on January 1st of the
fiscal year immediately subsequent to the Interim Period; and

 

(b)           Notwithstanding
the foregoing, the Company shall not be required to make any current payment of
the Interim Period Fee or the Annual Fee if and for so long as the Company is
prohibited from paying any portion of the Interim Period Fee or the Annual Fee
due to restrictive covenants contained in the Amended and Restated Loan and
Security Agreement dated as of the date hereof by and among the Company, the
Company’s subsidiaries named therein, GMAC Commercial Finance LLC, as Agent and
Lender and such other Lenders signatory thereto (as amended, restated, modified
or supplemented, the “Revolving Loan Agreement”); provided
that the Interim Period Fee or the Annual Fee shall continue to accrue with
interest calculated at the rate of 12% per annum (computed on the basis of a 360-day
year and the actual number of days elapsed in any year) (the “Applicable
Rate”), and compounded as

 

2

 

of the date hereof in the case of the Interim Period Fee or as of each
Fee Payment Date in the case of any Annual Fee if not paid, and shall become
payable immediately upon the earlier of:

 

(1)           the
Company being no longer prohibited under the Revolving Loan Agreement from
making the payment currently of the Interim Period Fee or the Annual Fee and
interest thereon (including without limitation any portion thereof which has
accrued and remains unpaid);

 

(2)           the
occurrence of any payment acceleration, prior to scheduled maturity date, of
the obligations of the Company under the Revolving Loan Agreement;

 

(3)           the
payment in full of all outstanding obligations of the Company under the Revolving
Loan Agreement;

 

(4)           the
occurrence of any bankruptcy or other insolvency event with respect to the
Company;

 

(5)           the
end of the Term; or

 

(6)           any
sale of all or substantially all of the assets of the Company or of more than
50% of the outstanding Common Stock of the Company.

 

Also, interest shall accrue (and shall
compound as aforesaid) and be payable by the Company on the Interim Period Fee
or the Annual Fee, until paid, if and to the extent that the Interim Period Fee
or the Annual Fee is not paid for any other reason after the date hereof.

 

(c)           In
addition to the payments required under Section 5 above, the Company
shall, at the direction of JCP, pay directly or reimburse JCP for Out-of-Pocket
Expenses (as hereinafter defined).  For
purposes of this Agreement, the term “Out-of-Pocket Expenses” shall mean
the reasonable amounts incurred by JCP and/or its personnel in connection with
the Services including, without limitation, (i) fees and disbursements of
any independent professionals and organizations, including, without limitation,
independent auditors and outside legal counsel, investment bankers or other
financial advisors or consultants, (ii) costs of any outside services of
independent contractors such as financial printers, couriers, business
publications or similar services and (iii) transportation, per diem,
telephone calls, entertainment and all other reasonable expenses actually
incurred by JCP in rendering the Services. All direct payments and
reimbursements for Out-of-Pocket Expenses shall be made promptly upon or as
soon as practicable after presentation by JCP to the Company of a statement in
connection therewith.

 

6.             Indemnification.  The Company will indemnify and hold harmless JCP
and its officers, directors, principals, partners, members, employees, agents,
representatives and affiliates (each being an “Indemnified Party”) from
and against any and all losses, claims, actions, damages and liabilities, joint
or several, to which such Indemnified Party may become subject under any
applicable federal or state law, made by any third party or otherwise, relating
to or arising out of the Services or other matters referred to in or
contemplated by this Agreement or the engagement of such Indemnified Party
pursuant to, and the performance by such

 

3

 

Indemnified Party, of the Services or other matters referred to or
contemplated by this Agreement, and the Company will reimburse any Indemnified
Party for all costs and expenses (including, without limitation, reasonable
attorneys’ fees and expenses) as they are incurred in connection with the
investigation of, preparation for or defense of any pending or threatening
claim, or any action or proceeding arising therefrom, whether or not such
Indemnified Party is a party thereto. 
The Company will not be liable under the foregoing indemnification
provision to the extent that any loss, claim, damage, liability, cost or
expense is determined by a court, in a final judgment from which no further
appeal may be taken, to have resulted solely from the gross negligence or
willful misconduct of such Indemnified Party. 
The reimbursement and indemnity obligations of the Company under this Section 6
shall be in addition to any liability which the Company may otherwise have,
shall extend upon the same terms and conditions to any affiliate of JCP and the
stockholders, officers, directors, principals, partners, members, employees,
agents, representatives, affiliates and controlling persons (if any), as the
case may be, of JCP and any such affiliate and shall be binding upon and inure
to the benefit of any successors, assigns, heirs and personal representatives
of the Company, JCP, any such affiliate and any such person.  The provisions of this Section 6 shall
survive the termination of this Agreement.

 

7.             Independent
Contractors.  Nothing herein shall be
construed to create a joint venture or partnership between the parties hereto
or an employee/employer relationship.  JCP
shall be an independent contractor pursuant to this Agreement.  Neither party hereto shall have any express
or implied right or authority to assume or create any obligations on behalf of
or in the name of the other party or to bind the other party to any contract,
agreement or undertaking with any third party. 
Nothing in this Agreement shall be deemed or construed to enlarge the
fiduciary duties and responsibilities, if any, of JCP or any of its affiliates,
officers, directors, partners, employees or agents, including without
limitation in any of their respective capacities as stockholder or directors of
the Company.

 

8.             Notices.  Any notice or other communications required
or permitted to be given hereunder shall be in writing and delivered by hand or
mailed by registered or certified mail, return receipt requested, or by
telecopier to the party to whom it is to be given at its address set forth
herein, or to such other address as the party shall have specified by notice
similarly given and the mailing date shall be deemed the date from which all
time periods pertaining to a date of notice shall run.

 

	
   

  	
  (a)

  	
  If to the Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Edgen Corporation

  
	
   

  	
   

  	
  c/o Jefferies Capital Partners

  
	
   

  	
   

  	
  520 Madison Avenue

  
	
   

  	
   

  	
  8th Floor

  
	
   

  	
   

  	
  New York, NY 10022

  
	
   

  	
   

  	
  Attention:

  	
  David Laxton

  
	
   

  	
   

  	
  Telephone:

  	
  (225) 756-7223

  
	
   

  	
   

  	
  Fax:

  	
  (225) 756-7953

  

 

4

 

	
   

  	
  (b)

  	
  If to JCP, to it at:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jefferies Capital Partners

  
	
   

  	
   

  	
  520 Madison Avenue

  
	
   

  	
   

  	
  12th Floor

  
	
   

  	
   

  	
  New York, NY 10022

  
	
   

  	
   

  	
  Attention:

  	
  James Luikart and Nicholas
  Daraviras

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 284-1700

  
	
   

  	
   

  	
  Fax:

  	
  (212) 284-1717

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a required copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Dechert LLP

  
	
   

  	
   

  	
  4000 Bell Atlantic Tower

  
	
   

  	
   

  	
  1717 Arch Street

  
	
   

  	
   

  	
  Philadelphia, PA 19103

  
	
   

  	
   

  	
  Attention:

  	
  Carmen J. Romano, Esq.

  
	
   

  	
   

  	
  Telephone:

  	
  (215) 994-4000

  
	
   

  	
   

  	
  Fax:

  	
  (215) 994-2222

  

 

9.             Assignment.  This Agreement shall inure to the benefit of
and be binding upon the parties and their successors and assigns.  However, neither this Agreement nor any of
the rights of the parties hereunder may be transferred or assigned by any party
hereto, except that (i) if the Company shall merge or consolidate with or
into, or sell or otherwise transfer substantially all its assets to, another
corporation which assumes the Company’s obligations under this Agreement, the
Company may assign its rights hereunder to that corporation and (ii) JCP
may assign its rights and obligations hereunder to any other person or entity
controlled, directly or indirectly, by Jefferies Capital Partners.  Any attempted transfer or assignment in
violation of this Section 9 shall be void.

 

10.           Permissible
Activities.  Nothing herein shall in
any way preclude JCP or its affiliates or its respective officers, directors
and partners from engaging in any business activities or from performing
services for its or their own account or for the account of others, including,
without limitation, companies which may be in competition with the business
conducted by the Company.

 

11.           General.  No amendment or waiver of any provision of
this Agreement, or consent to any departure by any party from any such
provision, shall in any event be effective unless the same shall be in writing
and signed by each of the parties to this Agreement and then such amendment,
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given.  The
waiver of any party of any breach of this Agreement shall not operate or be
construed to be a waiver of any subsequent breach.

 

12.           Entire
Agreement.  This Agreement contains
the entire agreement between the parties hereto and supersedes all prior
agreements and understandings, oral and written, among the parties hereto with
respect to the subject matter hereof.

 

5

 

13.           Section Headings;
Counterparts.  The section headings
contained herein are included for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose.  The Agreement may be executed in two
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument

 

14.           Applicable
Law.  This agreement and the rights
and obligations of the parties hereunder shall be governed by, and construed
and interpreted in accordance with, the internal laws of the State of New York,
without giving effect to the conflict of laws principals thereof.  Each of the parties hereto hereby irrevocably
submits to the exclusive jurisdiction of any Federal court sitting in the
Southern District of New York over any suit, action or proceeding arising out
of or relating to this agreement.  Each
of the parties hereto hereby irrevocably waives, to the fullest extent
permitted or not prohibited by law, any objection which it may now or hereafter
have to the laying of the venue of any such suit, action or proceeding brought
in such a court and any claim that any such suit, action or proceeding brought
in such a court has been brought in an inconvenient forum.  Each of the parties hereto hereby irrevocably
consents to the service of process in any suit, action or proceeding by sending
the same by certified mail, return receipt requested or by overnight courier
service, to the address of such party set forth in Section 8 or in the
records of the Company.  EACH PARTY HERETO WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN
ANY ACTION BROUGHT HEREUNDER OR ARISING OUT OF THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

15.           Severability.  Any section, subsection, clause, sentence,
provision, subparagraph or paragraph of this Agreement held by a court of
competent jurisdiction to be invalid, illegal or ineffective shall not impair,
invalidate or nullify the remainder of this Agreement, but the effect thereof
shall be such section, subsection, clause, sentence, provision, subparagraph or
paragraph so held to be invalid, illegal or ineffective.

 

6

 

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

 

 

	
   

  	
  FS PRIVATE INVESTMENTS III LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James Luikart

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:  James Luikart

  
	
   

  	
  Title:  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EDGEN CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel J. O'Leary

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:  Daniel J. O'Leary

  
	
   

  	
  Title:  President/CEOQuickLinks
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Exhibit 4.2(e)  

Execution Copy 

 
 

FIFTH AMENDMENT TO
  RIGHTS AGREEMENT    
    

        THIS FIFTH AMENDMENT TO RIGHTS AGREEMENT (this "Fifth Amendment") is made and entered into as of this 2nd day of May, 2005, by and between FRONTIER
AIRLINES, INC. (the "Company") and MELLON INVESTOR SERVICES LLC as Rights Agent (the "Rights Agent"). 

Recitals  

        A.    The
Company and American Securities Transfer & Trust, Inc., predecessor in interest to the Rights Agent, entered into a Rights Agreement dated as of
February 20, 1997 (as amended, the "Rights Agreement"); and 

        B.    The
Board of Directors of the Company, by resolution duly adopted on August 23, 2004, authorized this Fifth Amendment to the Rights Agreement. 

Agreement  

        The Company and the Rights Agent hereby amend the Rights Agreement as follows: 

        1.     Section 23(a) of
the Rights Agreement is hereby amended in its entirety to read as follows: 

        (a)   The
Board of Directors of the Company may, at its option, at any time prior to the earlier of (x) such time as a Person becomes an Acquiring Person or
(y) the Close of Business on the Final Expiration Date, redeem all but not less than all of the then outstanding Rights at a redemption price of $.01 per Right, appropriately adjusted to
reflect any stock split, stock dividend or similar transaction occurring after the date of this Agreement (such redemption price being hereinafter referred to as the "Redemption Price"). The
redemption of the Rights by the Board of Directors of the Company may be made effective at such time and on such basis and with such conditions as the Board of Directors of the Company in its sole
discretion may establish. Except for the obligation to pay the Redemption Price, the Board of Directors and the Company shall not have any liability to any Person as a result of the redemption of
Rights pursuant to the terms of this Section 23. Notwithstanding anything in this Agreement to the contrary, the Rights shall not be exercisable at any time when the Company may redeem them
pursuant to this Section 23. The Company may, at its option, pay the Redemption Price in cash, shares of Common Stock (based on the "current market price," as defined in
Section 11(d) hereof, of the Common Stock at the time of redemption) or any other form of consideration deemed appropriate by the Board of Directors. 

        2.     Section 24(c) of
the Rights Agreement is hereby amended in its entirety to read as follows: 

        (c)   In
the event that there shall not be sufficient unreserved shares of Common Stock issued but not outstanding or authorized, unissued and unreserved to permit the
exchange of Rights as contemplated in accordance with this Section 24, the Company, at its option, may substitute shares of equivalent stock, as such term is defined in Section 11(b), or
common stock equivalents, as such term is defined in Section 11(a)(iii), for shares of Common Stock exchangeable for Rights, at the initial rate of one share of equivalent stock or one common
stock equivalent for each share of Common Stock, as appropriately adjusted to reflect stock splits, stock dividends or similar transactions affecting the Common Stock that occur after the date of this
Agreement. 

        3.     The
remainder of the Rights Agreement shall remain unchanged, and the Rights Agreement as amended above, shall remain in full force and effect.

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be fully executed on their behalf as of the date first above written. 

	 	 	FRONTIER AIRLINES, INC.
	

 	
 	

By:	

	 	 	Name:	 
	 	 	Title:	 
	

 	
 	

MELLON INVESTOR SERVICES LLC
	

 	
 	

By:	

	 	 	Name:	 
	 	 	Title:	 

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FIFTH AMENDMENT TO RIGHTS AGREEMENT

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