Document:

Exhibit 10.2

 

AMENDMENT NO. 1

 

This
AMENDMENT NO. 1 (“AMENDMENT”) is made as of March 19, 2010 by and among
MARTEK BIOSCIENCES CORPORATION, a Delaware corporation (“BORROWER”); MARTEK
BIOSCIENCES BOULDER CORPORATION, a Delaware corporation, MARTEK BIOSCIENCES
KINGSTREE CORPORATION, a Delaware corporation, MARTEK AMERIFIT HOLDING
CORPORATION, a Delaware corporation, AMERIFIT PHARMA, INC. , a Massachusetts
corporation, AMERIFIT BRANDS, INC., a Delaware corporation, MARTEK AMERIFIT
LLC, a Delaware limited liability company, and AMERIFIT, INC., a Delaware
corporation (collectively, “GUARANTORS”); MANUFACTURERS AND TRADERS TRUST
COMPANY, as administrative agent (“AGENT”); and MANUFACTURERS AND TRADERS TRUST
COMPANY (“LENDER”).

 

RECITALS

 

The
BORROWER, the AGENT and the LENDER are parties to that certain Credit Agreement
dated as of January 21, 2010, as amended (“CREDIT AGREEMENT”), pursuant to
which the LENDER is providing to the BORROWER certain credit facilities
(collectively, “CREDIT FACILITIES”).

 

The
GUARANTORS are guaranteeing all of the obligations of the BORROWER under the
CREDIT FACILITIES pursuant to the terms of the Guaranty Agreement dated January 21,
2010 from the GUARANTORS to and for the benefit of the AGENT, the LENDER and
all other lenders under the CREDIT AGREEMENT (“GUARANTY AGREEMENT”).

 

The
BORROWER and the GUARANTORS’ obligations in connection with the CREDIT
FACILITIES are secured by, among other things: 
(a) the Security Agreement dated as January 21, 2010 from the
GUARANTORS and the BORROWER (“SECURITY AGREEMENT”) and (b) the Pledge
Agreement dated as January 21, 2010 from the BORROWER and the GUARANTORS (“PLEDGE
AGREEMENT”).

 

The
parties hereto have agreed to amend the CREDIT AGREEMENT and are entering into
this AMENDMENT in order to accomplish such amendment.

 

NOW,
THEREFORE, in consideration of the premises, and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties agree as follows:

 

Section 1.               Recitals.  The parties acknowledge the accuracy of the
above recitals and hereby incorporate the recitals into this AMENDMENT.

 

Section 2.               Amendment to Credit Agreement.  The CREDIT AGREEMENT is hereby amended and
restated in its entirety in accordance with the Amended And Restated Credit
Agreement of even date herewith between the BORROWER, the AGENT, the lenders a
party thereto, Bank of America, N.A., as syndication agent, SUNTRUST BANK, as
documentation agent and Capital One, N.A., as co-agent (“RESTATED AGREEMENT”).

 

Section 3.               Representations And Warranties.  In order to induce the LENDER and the AGENT
to agree to amend the CREDIT AGREEMENT in the manner set forth herein, the
BORROWER and the GUARANTORS make the following representations and warranties,
which shall survive the execution and delivery of this AMENDMENT:

 

 

3.1.          As of the date hereof, after giving
effect to the amendments contained herein, no Default or Event of Default (as
defined in the CREDIT AGREEMENT) has occurred and is continuing;

 

3.2.          Each of the representations and warranties
of the BORROWER and the GUARANTORS made in the CREDIT AGREEMENT is true and
correct in all respects (or in all material respects if any such representation
or warranty is not by its terms already qualified as to materiality) both
before and after giving effect to the amendments contemplated hereby as though
each such representation and warranty were made at and as of the date hereof
unless relating solely to an earlier date, in which case such representation
and warranty shall be true and correct in all respects as of such earlier date
(or in all material respects as of such earlier date if any such representation
or warranty is not by its terms qualified as to materiality); and

 

3.3.          No consent or approval of any third
party, including, without limitation, any governmental agency or authority, is
necessary with respect to the BORROWER or any GUARANTOR in connection with the
execution, delivery and/or performance of this AMENDMENT and/or the
enforceability hereof.  Upon execution by
the parties set forth on the signature lines below, this AMENDMENT will
constitute the legal, valid and binding obligation of the BORROWER and the
GUARANTORS, enforceable against them in accordance with the terms hereof.

 

Section 4.               Effectiveness.  The amendment and restatement of the CREDIT
AGREEMENT set forth herein shall become effective, as of the date hereof,
immediately upon the last to occur of the following:

 

4.1.          The AGENT shall have received
counterparts of the RESTATED AGREEMENT duly executed and delivered by all parties
thereto.

 

4.2.          The AGENT shall have received
counterparts of this AMENDMENT duly executed and delivered on behalf of the
BORROWER, the GUARANTORS and the LENDER.

 

4.3.          The AGENT shall have received such
other information as it shall reasonably request.

 

Section 5.               Other Terms.  Except as specifically modified herein, all
other terms and provisions of the CREDIT AGREEMENT, the GUARANTY AGREEMENT, the
SECURITY AGREEMENT, the PLEDGE AGREEMENT and all other documents evidencing,
securing or otherwise documenting the terms and provisions of the CREDIT
FACILITIES (collectively, “CREDIT DOCUMENTS”) remain in full force and effect
and are hereby ratified and confirmed.

 

Section 6.               Guarantors.  The GUARANTORS hereby acknowledge and consent
to the modifications contained herein and hereby ratify and confirm all of
their respective obligations and liabilities under the GUARANTY AGREEMENT and
all other documents executed by the GUARANTORS in connection with the CREDIT
FACILITIES.

 

Section 7.               Payment of Expenses.  Without limiting other payment obligations of
the BORROWER set forth in the RESTATED AGREEMENT, the BORROWER agrees to pay
all reasonable cost and expenses incurred by the AGENT in connection with the
preparation, execution and delivery of this AMENDMENT and the other documents
which may be delivered in connection herewith.

 

Section 8.               Choice of Law.  The laws of the State of Maryland (excluding,
however, conflict of law principals) shall govern and be applied to determine
all issues relating to this AMENDMENT and

 

2

 

the
rights and obligations of the parties hereto, including the validity,
construction, interpretation and enforceability of this AMENDMENT.

 

Section 9.               Delivery by Telecopier.  This AMENDMENT may be delivered by telecopier
and a facsimile of any party’s signature hereto shall constitute an original
signature for all purposes.

 

Section 10.             Counterparts.  This AMENDMENT may be executed in
counterparts each of which shall be binding upon the signatories but all of
which shall constitute one and the same agreement.

 

Section 11.             References.  From and after the effective date of this
AMENDMENT all references to the CREDIT AGREEMENT in any and all agreements,
instruments, certificates and other documents relating to the CREDIT
FACILITIES, shall be deemed to mean the RESTATED AGREEMENT, as the same may be
further amended, modified or supplemented in accordance with the terms thereof.

 

Section 12.             Waiver of Jury Trial.  Each of the parties hereto agree that any
action, suit or proceeding brought or instituted by any party on, or with
respect to this AMENDMENT or any of the CREDIT FACILITIES shall be tried by a
court and not by a jury.  Each of the
parties hereby expressly waives any right to a trial by jury in any such suit,
action or proceeding.

 

IN
WITNESS WHEREOF, the parties have executed this AMENDMENT with the specific
intention of creating a document under seal.

 

	
  ATTEST:

  	
   

  	
  BORROWER:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MARTEK BIOSCIENCES
  CORPORATION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Hazvinei Mugwagwa

  	
   

  	
  By:

  	
  / s/ Peter L. Buzy

  	
   (SEAL)

  
	
   

  	
   

  	
   

  	
  Name: Peter L. Buzy

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial
  Officer, Treasurer and Executive Vice President for Finance and
  Administration

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GUARANTORS:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MARTEK BIOSCIENCES BOULDER
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Hazvinei Mugwagwa

  	
   

  	
  By:

  	
  / s/ Peter L. Buzy

  	
   (SEAL)

  
	
   

  	
   

  	
   

  	
  Name: Peter L. Buzy

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial Officer, Treasurer and
  Executive Vice President

  

 

3

 

	
   

  	
   

  	
  MARTEK BIOSCIENCES
  KINGSTREE CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Hazvinei Mugwagwa

  	
   

  	
  By:

  	
  / s/ Peter L. Buzy

  	
   (SEAL)

  
	
   

  	
   

  	
   

  	
  Name: Peter L. Buzy

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial
  Officer, Treasurer and Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MARTEK AMERIFIT HOLDING CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Hazvinei Mugwagwa

  	
   

  	
  By:

  	
  / s/ Peter L. Buzy

  	
   (SEAL)

  
	
   

  	
   

  	
   

  	
  Name: Peter L. Buzy

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial
  Officer, Treasurer and Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AMERIFIT PHARMA, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Hazvinei Mugwagwa

  	
   

  	
  By:

  	
  / s/ Peter L. Buzy

  	
   (SEAL)

  
	
   

  	
   

  	
   

  	
  Name: Peter L. Buzy

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial
  Officer, Treasurer and Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AMERIFIT BRANDS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Hazvinei Mugwagwa

  	
   

  	
  By:

  	
  / s/ Peter L. Buzy

  	
   (SEAL)

  
	
   

  	
   

  	
   

  	
  Name: Peter L. Buzy

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial
  Officer, Treasurer and Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MARTEK AMERIFIT LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Hazvinei Mugwagwa

  	
   

  	
  By:

  	
  / s/ Peter L. Buzy

  	
   (SEAL)

  
	
   

  	
   

  	
   

  	
  Name: Peter L. Buzy

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial Officer, Treasurer and
  Executive Vice President

  

 

4

 

	
   

  	
   

  	
  AMERIFIT, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Hazvinei Mugwagwa

  	
   

  	
  By:

  	
  / s/ Peter L. Buzy

  	
   (SEAL)

  
	
   

  	
   

  	
   

  	
  Name: Peter L. Buzy

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Chief Financial
  Officer, Treasurer and Executive Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  AGENT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MANUFACTURERS AND TRADERS TRUST COMPANY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Brendan
  Mahoney

  	
   

  	
  By:

  	
  /s/ Robert
  Topper

  	
   (SEAL)

  
	
   

  	
   

  	
   

  	
  Name: Robert
  Topper

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Vice President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LENDER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MANUFACTURERS AND TRADERS
  TRUST COMPANY

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Brendan
  Mahoney

  	
   

  	
  By:

  	
  /s/ Robert Topper

  	
   (SEAL)

  
	
   

  	
   

  	
   

  	
  Name: Robert
  Topper

  	
   

  
	
   

  	
   

  	
   

  	
  Title: Vice President

  	
   

  

 

5Exhibit 10.2

 

JOCK BROWN

 

EMPLOYMENT AGREEMENT

 

AMENDMENT NUMBER 1

 

THIS EMPLOYMENT AGREEMENT AMENDMENT 1 (this “Amendment”),
effective as of December 10, 2008 (the “Effective
Date”), by and between FIRST NATIONAL BANK OF
OTTAWA, a national banking association (the
“Bank”), FIRST OTTAWA BANCSHARES, INC., a Delaware
corporation (the “Holding Company”)
(the Bank and the Holding Company shall collectively be referred to as the “Corporation”) and JOCK BROWN (the
“Executive”).

 

RECITALS

 

WHEREAS, the Corporation and the Executive previously entered
into that certain Employment Agreement dated November 1, 2002 (the “Agreement”);

 

WHEREAS, the Corporation and the Executive desire to amend
certain provisions of the Agreement in order to bring such provisions into compliance
with the applicable provisions of Section 409A of the Internal Revenue
Code of 1986, as amended (and guidance issued thereunder) (collectively
referred to herein as “Section 409A”);

 

WHEREAS, pursuant to Section 12(d) of the Agreement,
the Agreement may be amended in writing with the signature of each party; and

 

WHEREAS, the parties desire to amend the Agreement on the
terms hereinafter set forth.

 

NOW, THEREFORE, for good and valuable consideration, the
sufficiency of which is agreed and acknowledged by the parties hereto,
effective as of the Effective Date, the Agreement is amended to read as
follows:

 

AGREEMENTS

 

1.                                       Section 3(b) of the
Agreement is amended by adding the following sentence to the end thereof:

 

“The employee bonus
payment and the “Impact Group” bonus payment, if any, shall be paid as soon as
practicable, but in no event later than two and one-half (21⁄2) months following
the end of the year in which they are earned.”

 

2.                                       Section 4(a) of the Agreement
is amended by deleting the apostrophe in the term “coverages”.

 

3.                                       Section 4(c) of the Agreement
is amended by adding the following sentence to the end thereof:

 

 

“The car allowance
payment shall be paid as soon as practicable, but in no event later than two
and one-half (21⁄2) months following the end of the year in which it is earned.”

 

4.                                       Section 4(c) of the Agreement
is amended by adding the following sentence to the end thereof:

 

“To the extent any dues
or expenses payable under this Section 4(c) are to be paid in the
form of a reimbursement to the Executive, such reimbursement shall be made as
soon as practicable, but in no event later than two and one-half (21⁄2) months
following the end of the year in which the corresponding dues or expenses are
incurred.”

 

5.                                       The last
sentence of Section 9(b) of the Agreement is amended in its entirety
and replaced with the following sentences:

 

“In
the event of termination pursuant to this Section 9(b), Executive shall be
entitled to his Base Salary for what would have been the remainder of the then-current
term of this Agreement (less any amount described in the next sentence of this Section 9(b)),
which amounts shall be paid in equal installments over what would have been the
remainder of the term of this Agreement pursuant to the Corporation’s payroll
schedule.  To the extent any portion of
the payments provided under this Section 9(b) exceeds the “safe
harbor” amount described in Treasury Regulation Section 1.409A-1(b)(9)(iii)(A),
the Executive shall receive such portion of the amount due under this Section 9(b) that
exceeds the “safe harbor” amount in a single lump sum payment payable within
five (5) days after the Executive’s termination of employment.”

 

6.                                       Section 9(c) of
the Agreement is amended by adding the following sentence to the end thereof:

 

“Any
amounts due under this Section 9(c) shall be paid to the Executive,
or his estate in the event of his death, as soon as administratively
practicable following the Executive’s termination of employment.”

 

7.                                       A new sentence
is added to the end of Section 9(d) of the Agreement to read as
follows:

 

“Notwithstanding
the foregoing, if such Change of Control does not meet the definition of either
a “change in the ownership,” a “change in the effective control” or a “change
in the ownership of a substantial portion of the assets” of the Company under Section 409A
of the Code, or any successor thereto, payment will be made in the same form
and at the same time as under Section 9(b) to the extent required
under Code Section 409A.”

 

8.                                       The fifth
sentence of Section 9(e) of the Agreement is amended to read as
follows:

 

2

 

“In
the event that such opinions determine that there would be an excess parachute
payment, the payment hereunder or any other payment determined by such counsel
to be includable in Total Payments shall be modified, reduced or eliminated as
specified by the Executive in writing delivered to the Corporation within sixty
(60) days of his receipt of such opinions or, if the Executive fails to so notify
the Corporation, then as the Corporation shall reasonably determine, so that
under the bases of calculation set forth in such opinions there will be no
excess parachute payment; provided, however, that any such specification by
Executive or Corporation shall not be effective where it would result in an
imposition of any additional income tax under Section 409A of the Code.”

 

9.                                       A new
subsection 9(f) is added to the Agreement to read as follows:

 

“(f)          Separation from Service Required. 
Notwithstanding any provision of this Agreement to the
contrary, no payment shall be due to Executive pursuant to this Section 9 as a result of his
termination of employment, whether such termination is at the election of
Corporation or Executive, unless such termination of employment satisfies the
definition of a “separation from service” under Section 409A  of the Code.”

 

10.                                 A new Section 13 is added to the
Agreement to read as follows:

 

“Section 13.  
Code Section 409A.

 

(a)                                  To the extent that any of
the terms and conditions contained herein which were modified by Amendment
Number 1 (the “Amendment”)  constitute an
amendment or modification of the time or manner of payment under a
non-qualified deferred compensation plan (as defined under Code Section 409A
(and the guidance issued thereunder) (collectively referred to herein as “Code Section 409A”)),
then to the extent necessary under the transitional guidance under Internal
Revenue Service Notice 2007-86, this Agreement, as amended by the Amendment,
constitutes an amendment to, and a new election under, such deferred
compensation plan, in order to properly modify the time or manner of payment
consistent with such guidance.

 

(b)                                 It is intended that the
Agreement shall comply with the provisions of Code Section 409A so as not
to subject Executive to the payment of additional taxes and interest under Code
Section 409A.  In furtherance of
this intent, this Agreement shall be interpreted, operated and administered in
a manner consistent with these intentions, and to the extent that any
regulations or other guidance issued under Code Section 409A would result
in the Executive being subject to payment of additional income taxes or
interest under Code Section 409A, the parties agree to amend the Agreement
to maintain, to the maximum extent practicable, the original

 

3

 

intent of the Agreement while avoiding the application of such taxes or
interest under Code Section 409A.

 

(c)                                  Notwithstanding any
provision in the Agreement to the contrary if, as of the effective date of
Executive’s termination of employment, he is a “Specified Employee,” then, only
to the extent required pursuant to Section 409A(a)(2)(B)(i), payments due
under this Agreement which are deemed to be deferred compensation shall be
subject to a six (6) month delay following the Executive’s separation from
service.  For purposes of Code Section 409A,
all installment payments of deferred compensation made hereunder, or pursuant
to another plan or arrangement, shall be deemed to be separate payments and,
accordingly, the aforementioned deferral shall only apply to separate payments
which would occur during the six (6) month deferral period and all other
payments shall be unaffected.  All
delayed payments shall be accumulated and paid in a lump-sum catch-up payment
as of the first day of the seventh-month following separation from service (or,
if earlier, the date of death of the Executive) with all such delayed payments
being credited with interest (compounded monthly) for this period of delay
equal to the prime rate in effect on the first day of such six-month
period.  Any portion of the benefits
hereunder that were not otherwise due to be paid during the six-month period
following the termination shall be paid to the Executive in accordance with the
payment schedule established herein.

 

(d)                                 The term “Specified Employee” shall mean any person
who is a “key employee” (as defined in Code Section 416(i) without
regard to paragraph (5) thereof), as determined by the Corporation based upon
the 12-month period ending on each December 31st (such 12-month period is
referred to below as the “identification period”).  If Executive is determined to be a key
employee under Code Section 416(i) (without regard to paragraph (5) thereof)
during the identification period he shall be treated as a Specified Employee
for purposes of this Agreement during the 12-month period that begins on the April 1
following the close of such identification period.  For purposes of determining whether Executive
is a key employee under Code Section 416(i), “compensation” shall mean
Employee’s W-2 compensation as reported by the Corporation for a particular
calendar year.”

 

[Signature page to follow]

 

4

 

All other terms and
conditions of the Agreement remain in full force and effect.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date and year first above set forth.

 

 

	
  By:

  	
  /s/ Donald J. Harris

  	
   

  	
  /s/ Jock Brown

  
	
  Name:

  	
  Donald J. Harris

  	
   

  	
  Jock Brown

  
	
  Its:

  	
  EVP & Chief
  Operating Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2835 Emerald Drive

  
	
   

  	
   

  	
  Ottawa, IL

  
	
   

  	
   

  	
  [Address]

  

 

5

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