Document:

Exhibit

SECOND AMENDMENT 
TO
MARKETING AGREEMENT

This Second Amendment to Marketing Agreement (this “Amendment”) is entered into as of December 19, 2016, but effective as of October 1, 2016, by and between Delek Refining, Ltd., a Texas limited partnership (“Delek Refining”), and Delek Marketing & Supply, LP, a Delaware limited partnership (“Delek Marketing”). Delek Refining and Delek Marketing are hereinafter sometimes referred to individually as a “Party” and collectively as the “Parties.”

W I T N E S S E T H:

WHEREAS, Delek Refining and Delek Marketing are parties to that certain Marketing Agreement dated as of November 7, 2012, as amended by that certain First Amendment to Marketing Agreement dated as of July 26, 2013 (the “Marketing Agreement”); and 

WHEREAS, Delek Refining and Delek Marketing now desire to amend the Marketing Agreement in certain respects, as provided in this Amendment;

NOW, THEREFORE, for and in consideration of the mutual covenants, agreements, obligations and benefits made and contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows: 

1.Definitions. Capitalized terms used herein without definition shall have the meanings assigned to such terms in the Marketing Agreement. 

2.Amendment.  The Parties hereto agree that the Marketing Agreement is hereby amended as follows:

		
	(a)
	The defined term “Cost Basis” is deleted.

		
	(b)
	The defined term “Margin” is deleted.

		
	(c)
	The defined term “Services Profit Share” is deleted.

(d)Article 1 of the Marketing Agreement is hereby amended by adding the following definition thereto in its appropriate alphabetical order:

““RFS Program” means Renewable Fuel Standard Program under the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007 and implementing regulations, including without limitation, 40 C.F.R. Part 80, Subpart M.”

(e)Section 2.2 of the Marketing Agreement is hereby amended by adding a new clause (g) to read as follows, and by making the necessary grammatical changes thereto:

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“(g)    assist Delek Refining with monitoring Delek Refining’s compliance obligations under the RFS Program (it being understood and agreed that Delek Marketing will have no liability with respect to any failure to comply by Delek Refining).”

(f)Section 3.1 of the Marketing Agreement is hereby amended by deleting therefrom “the tenth (10th) anniversary hereof” and inserting in lieu thereof “September 30, 2026”.

(g)Section 6.1 of the Marketing Agreement is hereby amended in its entirety to read as follows:

“6.1    Marketing and Sales Services Fee.  In consideration for the marketing and sales services to be performed by Delek Marketing during the Term pursuant to the terms and conditions hereof, Delek Refining shall pay Delek Marketing a monthly fee equal, for any one-month period, to (a) $0.01818 per gallon of Refinery Products sold pursuant to this Agreement during such period up to the Minimum Volume Commitment for such period and (b) $0.01725 per gallon of Refinery Products sold pursuant to this Agreement during such period for amounts in excess of the Minimum Volume Commitment for such period (the “Services Base Fee”).”

(h)Section 6.5(b) of the Marketing Agreement is hereby amended by deleting therefrom “and the Services Profit Share”.

(i)Section 6.6 of the Marketing Agreement is hereby amended in its entirety to read as follows:

“6.6 Invoicing and Payments. Delek Marketing shall invoice Delek Refining monthly (or in the case of any Shortfall Payments, quarterly). The Services Base Fee and the Shortfall Payment, if any, for any one-month (or one Contract Quarter, as applicable) period shall be due and payable by Delek Refining in arrears on or before the tenth (10th) Business Day following receipt by Delek Refining of such invoice. Any past due payments owed pursuant to this Article 6 shall accrue interest, payable on demand, at the Prime Rate from the due date of the payment through the actual date of payment. Payment of any Services Base Fee or Shortfall Payment pursuant to this Article 6 shall be made by wire transfer of immediately available funds to an account designated in writing by Delek Marketing. If any such fee shall be due and payable on a day that is not a Business Day, such payment shall be due and payable on the next succeeding Business Day.” 

(j)The first sentence of Section 6.7 of the Marketing Agreement is hereby amended in its entirety to read as follows:

“Delek Refining shall maintain the books, records and accounts reflecting the transactions arising from this Agreement during the Term, including, without limitation, accounting and administrative reports relating to the (a) marketing and sale of the Refinery Products and (b) accrual and payment of the Services Base Fee and Shortfall Payment attributable to the Term.”

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(k)Section 7.1 of the Marketing Agreement is hereby amended by deleting therefrom “or the Services Profit Share”.

(l)The first sentence of Section 8.1 of the Marketing Agreement is hereby amended in its entirety to read as follows:

“In the event that either Party is rendered unable, wholly or in part, by a Force Majeure event to perform its obligations under this Agreement, then upon the delivery by such Party (the “Force Majeure Party”) of written notice (a “Force Majeure Notice”) and full particulars of the Force Majeure event within a reasonable time after the occurrence of the Force Majeure event relied on, the obligations of the Parties, to the extent they are affected by the Force Majeure event, shall be suspended for the duration of any inability so caused; provided, that (A) prior to the third anniversary of the Effective Date, Delek Refining shall be required to make payments (i) for the Services Base Fee for volumes actually sold under this Agreement, and (ii) unless the Force Majeure event is an event that adversely affects Delek Marketing’s ability to perform the marketing services it is required to perform under this Agreement, for any Shortfall Payments to the extent such amount has not been paid pursuant to clause (A)(i) and (B) from and after the third anniversary of the Effective Date, Delek Refining shall be required to continue to make payments for the Services Base Fee for volumes actually sold under this Agreement.”

(m)Schedule B is hereby deleted from the Marketing Agreement.

3.    Ratification.  Except as amended or modified by Section 2 of this Amendment, the Marketing Agreement is hereby ratified by each of the Parties hereto and shall remain in full force and effect in accordance with its terms.

4.    Counterparts.  This Amendment may be executed in one or more counterparts (including by facsimile or portable document format (pdf)) for the convenience of the Parties hereto, each of which counterparts will be deemed an original, but all of which counterparts together will constitute one and the same agreement.

[Remainder of Page Intentionally Blank; Signature Page Follows]

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IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first written above.

DELEK REFINING, LTD.
		
	By: DELEK U.S. REFINING GP, LLC,
	  
its general partner

By: /s/ Avigal Soreq                                    
Name: Avigal Soreq 
Title: Executive Vice President 

By: /s/ Daniel McCarty                               
Name: Daniel McCarty  
Title: Vice President 

DELEK MARKETING & SUPPLY, LP
By: DELEK MARKETING GP, LLC,  
    its general partner

By: /s/ Mark D. Smith                                   
Name: Mark D. Smith  
Title: Executive Vice President     

By: /s/ John Laing                                          
Name: John Laing  
Title: Vice President 

[Signature Page to Second Amendment to Marketing Agreement]Exhibit

NONCOMPETE AGREEMENT
Effective Date: _______________

IN CONSIDERATION of _____________, to me, ____________, in my role as ________________, and access to Confidential Information (as defined below), I agree to the following: 
		
	1.
	Performance.  During my employment with Intrepid, I will perform to the best of my ability the duties of my position and other duties assigned to me by Intrepid and devote my best efforts to the interests of Intrepid.  I understand that I remain an employee at-will and that either I or Intrepid may end the employment relationship at any time, for any or no reason.  

		
	2.
	Non-Disclosure/Confidentiality.   I have received or will receive Confidential Information regarding Intrepid’s products, services and customers and will keep Confidential Information confidential and never directly or indirectly disclose it to anyone else, except with Intrepid’s consent, in accordance with Intrepid’s policies and procedures, or pursuant to a subpoena, order, or request issued by a court of competent jurisdiction or by judicial, administrative, legislative, or regulatory body or committee.  “Confidential Information” means any information not generally known which Intrepid considers proprietary regarding Intrepid’s business, products, operations, finances, or customers, including products, know-how, prices, pricing methodology, research, development, manufacturing processes, purchasing, accounting, engineering, and other designs, parameters, standards, methods, reports, analysis, marketing, merchandizing or selling, and any summaries, derivations or analysis of each, whether in written, electronic, oral or other form.  I agree that all Confidential Information is the exclusive property of Intrepid; immediately after my termination from Intrepid (voluntary or otherwise), I agree to return all Confidential Information to Intrepid. This agreement not to disclose or use Confidential Information means, among other things, that I may not take or perform a job whose responsibilities would likely lead me to disclose or use Confidential Information because that would likely result in irreparable injury to Intrepid.  If a court determines that this provision is too broad, I and Intrepid agree that the court shall modify the provision to the extent (but not more than is) necessary to make the provision enforceable.  

I further agree that during my employment with Intrepid I will not disclose or use for the benefit of Intrepid or any other person or entity any confidential or trade secret information belonging to any former employer or other person or entity to whom I may owe a duty of confidence or nondisclosure.  
Nothing in this paragraph is intended to limit my obligations under the law, court order, subpoena, legitimate government inquiry or any other confidentiality or non-disclosure document signed by me.  
		
	 3.
	Noncompetition.  

		
	 (a)
	If I voluntarily terminate my employment with Intrepid or am dismissed for cause or poor performance, for a period of six months from the last day of my employment, I will not work, directly or indirectly, for (i) anyone engaged in the sale, promotion, manufacture, or distribution of any potash, sulfate of potash magnesia, salt, or magnesium chloride (collectively, the “Products”) or (ii) any customer or prospective customer of Intrepid that I have corresponded with on behalf of Intrepid at any time during the ___ year(s) before my separation, [in either case in the following area: _________]. 

		
	(b) 
	This paragraph 3 does not apply if I am terminated without cause or laid-off where the lay-off lasts more than 60 days.

		
	(c)
	Notwithstanding the foregoing, as an attorney, I may, subject to the applicable rules of ethics and the nondisclosure provisions herein, perform services solely in my capacity as an attorney on behalf of any person or entity, even if such person or entity competes with Intrepid or sells goods or services similar to Intrepid.

		
	4.
	Solicitation of Employees.  During my employment with Intrepid and for six months after my termination (regardless of reason), I will not:

		
	(a)  
	Hire, solicit or seek to hire, directly or indirectly, on my own behalf or for anyone else, any employee of Intrepid;

		
	(b) 
	Attempt to influence, induce, or encourage any Intrepid employee to leave Intrepid; or 

		
	(c) 
	Use or disclose to any person for any business purpose any information concerning the name and address of any Intrepid employee.

		
	5.
	Suspension of Term.  I agree that if I violate this agreement, for so long as I am violating it, the time limit on the non-compete and non-solicitation covenants will be extended. For example, if I voluntarily terminate my employment with Intrepid and begin working for a competitor the next day, Intrepid may ask a court may order me to stop working for that competitor for six months from the date of the court order. 

		
	6.
	Acknowledgment of Reasonableness; Sufficiency of Compensation.  I acknowledge that the scope and duration of the restrictive covenants in this agreement – as well as the compensation and other consideration described above -- are fair and reasonable.  I understand that these restrictions may reduce my standard of living during the non-competition period and I assume and accept any risk associated with that possibility. I acknowledge that as ________________ for Intrepid with access to Confidential Information and trade secrets I have the ability to compete unfairly with Intrepid and further acknowledge that this agreement is designed to protect Intrepid from unfair competition. 

		
	8.
	Remedies.  If I violate this agreement, I acknowledge that Intrepid will face serious and irreparable harm.  As such, Intrepid will be entitled to (a) an injunction that restrains and enjoins me from continuing to violate the agreement; and (b) any other remedies provided by law or in equity.  I further agree that any claims or causes of action that I may have against Intrepid, whether based on this agreement or otherwise, shall not be a defense to the enforcement of any portion of this agreement. 

		
	9.
	Severability.  If any part of this agreement is held invalid, it shall not affect the validity of any other part of this agreement. If this agreement is held to be unreasonable as to time or scope, the time shall be shortened or the scope reduced (as appropriate) so as to comply with applicable law. 

		
	10.
	Disclosure Obligation.  I agree to disclose this agreement to every potential employer and business associate with whom I have direct contact regarding potential employment during the six-month period after the termination of my employment with Intrepid.

		
	11.
	Modifications.  Except as provided in paragraph 9, this agreement may not be modified, waived or discharged except in writing signed by an officer of Intrepid and me.

		
	12.
	Choice of Law.  This agreement shall be construed and enforced under the laws of Colorado. 

		
	13.
	Offset.  During and after my employment, I agree that Intrepid may reduce any amounts owed to me by any debts I owe Intrepid or any overpayment made by Intrepid to me.

		
	14.
	Waiver of Right to Jury Trial.  By signing this agreement, I voluntarily, knowingly and intelligently waive any right I may have to a jury trial for all claims arising out of this Agreement and any claim arising out of or relating to my employment with or termination from Intrepid.  Intrepid also hereby voluntarily, knowingly, and intelligently waives any right it might otherwise have to a jury trial for all claims arising out of or relating to my employment with or termination from Intrepid.  

AGREED, effective as of the date first written above:        Accepted by Intrepid Potash, Inc.:   

		
	________________________________
	_______________________________

[insert name]        (Signature)

                                       ______________________________
(Date)                                    (Print Name & Title)

______________________________
(Date)
    

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