Document:

Exhibit

Exhibit 10.1

EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (this “Agreement”), entered into as of November 28, 2018, is made by and between Ranger Energy Services, LLC, a Delaware limited liability company (the “Company”), and Mario H. Hernandez (“Executive”).  The Company and Executive are sometimes hereafter referred to individually as a “Party,” or collectively as the “Parties.”

WHEREAS, the Company and Executive desire to enter into this Agreement in order to set forth the terms of Executive’s employment with the Company during the period beginning on the date hereof and ending as provided herein; and
NOW THEREFORE, in consideration of the premises and mutual covenants set forth herein, and other consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Executive, intending to be legally bound, do hereby agree as follows:
1.  Employment.  The Company agrees to employ Executive, and Executive hereby accepts employment with the Company, to serve as its Chief Accounting Officer, upon the terms set forth in this Agreement for the period beginning on the date hereof and ending on the date two (2) years after the date hereof (the “Initial Employment Period”); provided that, upon the expiration of the Initial  Employment Period, this Agreement shall automatically be extended on the same terms and conditions set forth herein for additional consecutive one-year periods beginning on the second anniversary of the date hereof, unless the Company or Executive gives the other Party written notice of its or his election not to extend at least ninety (90) days prior to the end of the Initial Employment Period or any additional one-year period (the “Extended Employment Period”) (the Initial Employment Period and any Extended Employment Period shall be referred to collectively herein as the “Employment Period”).   Notwithstanding the foregoing, the Company and Executive understand and agree that the Employment Period is subject to early termination as provided in Section 4 hereof.  A notice of non-extension provided by the Company pursuant to this Section 1 shall not constitute a termination without Cause under Section 4(a)(iv).  The date on which the Employment Period expires or, if the Executive’s employment is terminated for any reason, the effective date of such termination, is referred to herein as the “Termination Date.”
2.  Position and Duties.
a)         During the Employment Period, Executive shall serve as the Chief Accounting Officer of the Company, and each of its operating subsidiaries, whether in existence now, or to be formed or acquired during the term hereof, and shall have the duties, responsibilities and authority customary for such a position in an organization of the size and nature of the Company. Executive shall report directly to the Chief Financial Officer of the Company and to the Board of Directors (the “Board”) of Ranger Energy Services, Inc., a Delaware corporation (“Ranger”), and shall devote his commercially reasonable best efforts and business time and attention (except for permitted vacation periods and reasonable periods of illness or other incapacity) to the business and affairs of the Company and its affiliates. Executive shall obtain the prior written approval from the Board before joining or participating in any other business opportunities, whether or not for compensation, and whether as an investor, board member, partner, or in any other capacity. 
b)         Executive acknowledges and agrees that, at all times during the employment relationship, Executive owes fiduciary duties to the Company and its affiliates, including, but not limited to, fiduciary duties of the highest loyalty, fidelity and allegiance, to act at all times in the best interests of the Company and its affiliates, to make full disclosure to the Company of all information that pertains to the Company’s or its affiliates’ business and interests, to do no act which would injure the Company’s or its affiliates’ business, interests, or reputation, and to refrain from using for Executive’s own benefit or for the benefit of others any information or opportunities pertaining to the Company’s or its affiliates’ business or 

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Exhibit 10.1

interests that are entrusted to Executive or that he learned while employed by the Company.  Executive acknowledges and agrees that, upon termination of the employment relationship, Executive shall continue to refrain from using for his own benefit or the benefit of others, or from disclosing to others, any information or opportunities pertaining to the Company’s or its affiliates’ business or interests that were entrusted to Executive during the employment relationship or that he learned while employed by the Company.  In addition, Executive, at all times during the Employment Period, shall strictly adhere to and obey all of the Company’s written rules, policies and procedures, which will be available for viewing and are now in effect, or as are subsequently adopted or modified by the Company, which govern the operation of the Company’s business and the conduct of employees of the Company.
3.  Base Salary, Bonus and Benefits.
a)    Base Salary. During the Employment Period, Executive’s base salary shall initially be Two Hundred Thirty Thousand Dollars ($230,000) per year, less any and all lawful deductions and withholdings (the “Base Salary”), which Base Salary shall be payable in regular installments in accordance with the Company’s general payroll practices.  During the Employment Period, Executive’s Base Salary may be increased by the CEO at any time in his sole discretion; provided that the Base Salary may not be decreased below the foregoing amount provided, however, that the Company may unilaterally reduce Executive’s base salary or wages by up to ten percent (10%) if (A) the same percentage reduction applies to all similarly situated employees of the Company, and (B) the Board determines that such reduction is necessary to allow the Company to avoid violating one or more financial covenants contained in its loan agreements or similar financing arrangements, as may be amended from time to time. 
b)  Annual Bonus. In addition to Base Salary, Executive shall be eligible to receive a discretionary annual bonus as further described under the Company’s Management Incentive Program (“MIP”) of up to sixty percent (60%) of his Base Salary at target (the “Annual Bonus”) for subsequent years of the Employment Period, the amount of which shall be determined and paid based on annual Company and individual (i.e., Executive-specific) milestones as determined by the Board that must be met in order for Executive to be eligible to receive the bonus.  Such milestones will be agreed upon by the Parties no later than February 28 of each year.
c)     Benefits. During the Employment Period, Executive and his dependents shall be entitled to participate in the Company’s standard employee benefit plans and programs, including sick leave, for which employees of the Company are generally eligible (collectively, the “Benefits”). Executive recognizes that the Benefits shall be governed by the terms and conditions of the applicable benefit plans and programs.  The Company shall not, however, by reason of this Section 3(c) be obligated to institute, maintain or refrain from changing, amending or discontinuing any such benefit plan or program, so long as such changes are similarly applicable to other employees of the Company generally.
 d)    Long Term Incentive Plan Participation.  Executive shall be eligible to participate in Ranger’s Long Term Incentive Plan. Executive shall receive target grants valued at 75% of his salary.  Units of Holdings (the “Equity Award”), pursuant to the terms of Restricted Unit Award Agreements that will be entered into by and between Holdings and Executive (the “Restricted Unit Award Agreements”).  If there are any conflicts between the applicable Restricted Unit Award Agreement and this Employment Agreement with respect to the Equity Award, such Restricted Unit Award Agreement shall control.
e)   Vacation.  During the Employment Period, Executive shall be entitled to four (4) weeks of paid vacation during each calendar year (prorated for any partial year), which shall accrue in accordance with the Company’s vacation policies as in effect from time to time. The Company will not pay Executive for any accrued, unused vacation upon the termination of Executive’s employment with the Company for any reason.

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Exhibit 10.1

f)     Expenses. The Company shall reimburse Executive for all reasonable expenses incurred by Executive in the course of performing his duties under this Agreement that are consistent with the Company’s policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company’s requirements with respect to reporting and documentation of such expenses.    
g)    Withholding; Deductions. The Company may deduct and withhold from any amounts payable under this Agreement (including, without limitation, any amount paid pursuant to Section 5) such federal, state, local, non-U.S. or other taxes as are required or permitted to be withheld pursuant to any applicable law or regulation.
h)    Indemnity. The Company hereby agrees to indemnify Executive to the fullest extent permitted by applicable law, the Company’s certificate of formation, the Company’s limited liability company agreement or by statute.  In the event of any change after the date of this Agreement in any applicable law, statute or rule that expands the right of a Delaware limited liability company to indemnify a manager, officer, employee, controlling person, agent or fiduciary, it is the intent of the parties hereto that Executive shall enjoy by this Agreement the greater benefits afforded by such change. The Company shall indemnify and hold harmless Executive, to the fullest extent permitted by law if Executive was or is or becomes a party to or witness or other participant in or is threatened to be made a party to or witness or other participant in, any threatened, pending or completed action, suit, proceeding, or alternative dispute resolution mechanism, or in hearing, inquiry or investigation that Executive in good faith reasonably believes might lead to the institution of any such action, suit, proceeding or alternative dispute resolution mechanism, whether civil, criminal, administrative, investigative or other against any and all expenses (including attorneys’ fees and all other costs, expenses and obligations incurred in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness in or participate in any such actions, suit, proceeding, alternative dispute resolution mechanism, hearing, inquiry or investigation), judgments, fines, penalties and amounts paid in settlement.  The Company shall advance all expenses incurred by Executive in connection with such indemnification, such expenses to be paid by the Company to Executive as soon as practicable but in no event later than twenty-five (25) days after written demand by the Executive to the Company.
4.  Early Termination of the Employment Period.
(a) Termination of Employment by the Company Prior to Expiration of Employment Period. Notwithstanding the provisions of Section 1 hereof, the Company shall have the right to terminate Executive’s employment under this Agreement at any time in accordance with the following provisions:
(i)    upon Executive’s death;

(ii)    upon Executive’s becoming incapacitated or disabled by accident, sickness or other circumstance which creates an impairment (despite reasonable accommodation) that renders him mentally or physically incapable of performing the duties and services required of him hereunder for a period of at least ninety (90) consecutive days or for ninety (90) non-consecutive business days during any 12-month period;
(iii)     for “Cause,” upon a determination by the Board, in its good faith discretion (but, for purposes of clauses (a) and (b), only after the Company has provided Executive written notice of the facts and circumstances and after Executive has had an opportunity to be heard and Executive has failed to cure same within five (5) business days of such notice if cure is reasonably possible) that Executive has engaged in:

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Exhibit 10.1

		
	a.
	Executive’s material breach of his obligations under (1) this Agreement, including, without limitation, Sections 6, 7, 8 or 9 of this Agreement, (2) the Equity Award Agreements or (3) the Second Amended and Restated Limited Liability Company Agreement of Ranger Energy Holdings, LLC, a Delaware limited liability company,  as may be amended or amended and restated from time to time in accordance with the provisions thereof (the “LLC Agreement”), in each case after written notice and opportunity to cure as set forth above;

		
	b.
	continued failure by Executive to perform the duties and services required of Executive pursuant to this Agreement, after written notice and opportunity to cure as set forth above;

		
	c.
	an act or acts of fraud, dishonesty or disloyalty with respect to the Company’s business, operations or customers, including, but not limited to, falsification of records of the Company or misappropriation of funds of the Company;

		
	d.
	insubordination or failure to follow the lawful instructions of the Board;

		
	e.
	any willful or reckless misconduct or gross negligence by Executive in the performance of his duties under this Agreement;

		
	f.
	any breach of fiduciary duty or duty of loyalty to the Company or its affiliates;

		
	g.
	acceptance of employment or work with another employer or business other than the Company or its affiliates or the performance of work or services for any such other employer or business;

		
	h.
	any act attempting to secure or securing any personal profit or benefit not fully disclosed to and approved by the Board in connection with any transaction entered into on behalf of the Company or its affiliates;

		
	i.
	habitual drug or alcohol abuse;

		
	j.
	a conviction (by plea of nolo contendere, guilty or otherwise) of any (1) felony, (2) of a crime of theft, fraud, or dishonesty, or (3) crime involving moral turpitude; or

		
	k.
	a conviction for a violation of federal or state securities laws or other laws applicable to the business of the Company or its affiliates; or

(iv) In the sole discretion of the Board without Cause; provided, however, that in the
case of termination without Cause, the Company must provide Executive with thirty (30) days prior written
notice of such termination.

(b) Termination of Employment by Executive Prior to Expiration of Employment Period.  Notwithstanding the provisions of Section 1 hereof, Executive shall have the right to terminate his employment under this Agreement at any time for any reason or for no reason; provided, that in the event of a termination under this Section 4(b) Executive must provide the Company with thirty (30) days prior written notice of such termination.

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Exhibit 10.1

(c) Notice of Termination.  If the Company desires to terminate Executive’s employment hereunder as provided in Section 4(a) hereof or Executive desires to terminate Executive’s employment hereunder as provided in Section 4(b) hereof, Executive shall do so by giving written notice to the Board and the Company shall do so by giving written notice to Executive that it or he has elected to terminate Executive’s employment hereunder and stating the effective date and reason, if any (including the applicable section of this Agreement), for such termination.  In the event of such termination, the provisions of Sections 6 through 8 hereof shall continue to apply in accordance with their terms regardless of the reason for termination. Any question as to whether and when there has been a termination of Executive’s employment, and the cause of such termination, shall be determined conclusively by the Board in its sole discretion
5.  Effect of Termination on Compensation.
(a)  Termination Upon Death of Executive.  In the event of Executive’s death during the Employment Period, all of Executive’s rights and benefits provided for in this Agreement will terminate on the date of death; provided, however, that (i) Executive’s estate will be paid Executive’s pro rata Base Salary as earned through the Termination Date, (ii) Executive shall be entitled to any unpaid and earned Annual Bonus for any calendar year of the Company that ended prior to the Termination Date (in the amount theretofore awarded by the Board) on the date that such Annual Bonus would otherwise have been payable, and (iii) any extended health benefits provided by the Company in respect of Executive’s spouse and dependents shall continue at their expense as provided by state or federal law.

(b) Termination by the Company Upon Disability of Executive. If Executive’s employment hereunder is terminated by the Company pursuant to Section 4(a)(ii) of this Agreement, all of Executive’s rights and benefits provided for in this Agreement will terminate as of such date; provided, however, that (i) Executive will be paid Executive’s pro rata Base Salary as earned through the Termination Date, (ii) Executive shall be entitled to receive any unpaid and earned Annual Bonus for any calendar year of the Company that ended prior to the Termination Date (in the amount theretofore awarded by the Board) on the date that such Annual Bonus would otherwise have been payable, and (iii) extended health benefits shall continue at Executive’s expense as provided by state or federal law and

(c) Termination by the Company for Cause.  If Executive’s employment hereunder is terminated by the Company for Cause pursuant to Section 4(a)(iii) of this Agreement, all of Executive’s rights and benefits provided for in this Agreement will terminate as of such date; provided, however, that Executive will be paid Executive’s pro rata Base Salary as earned through the Termination Date, and (ii) extended health benefits shall continue at Executive’s expense as provided by state or federal law.

(d)  Termination by the Company Without Cause.  If Executive’s employment hereunder is terminated by the Company without Cause pursuant to the provisions set forth in Section 4(a)(iv), all of Executive’s rights and benefits provided for in this Agreement will terminate as of such date; provided, however, that (i) Executive will be paid Executive’s pro rata Base Salary as earned through the Termination Date, (ii) Executive shall be entitled to any unpaid and earned Annual Bonus for any calendar year of the Company that ended prior to the Termination Date (in the amount theretofore awarded by the Board) on the date that such Annual Bonus would otherwise have been payable, (iii) extended health benefits shall continue at Executive’s expense as provided by state or federal law and (iv) the Company shall pay Executive severance equal to six (6) months of the Base Salary (as determined on the Termination Date).  The severance pay provided for in this Section 5(d) will be paid in installments in accordance with the Company’s normal payroll practices.

(e) Termination of Employment by Executive.  If Executive terminates his employment with the Company pursuant to Section 4(b) of this Agreement, all of Executive’s rights and benefits provided for 

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Exhibit 10.1

in this Agreement will terminate as of such date; provided, however, that Executive shall receive those amounts described in Section 5(d)(i)-(iii), and should Executive terminate his employment with the Company for Good Reason, he shall also receive those amounts described in Sections 5(d)(iv). “Good Reason” shall mean (i) a breach by the Company of any of its material obligations under this Agreement, (ii) a material diminution of Executive’s job duties or responsibilities with respect to the Company, or (iii) the Company’s permanent reassignment of Executive’s principal office location to a location more than fifty (50) miles from Executive’s then principal office location, but only after Executive has notified Company of same in writing and Company has not remedied same within thirty (30) days of such notice.

(f) Expiration of Employment Period. If either the Company or Executive provides the notice of intent not to extend the Agreement and thus elects to allow an Employment Period to expire under its own terms under Section 1 hereof, all of Executive’s rights, compensation and benefits provided for in this Agreement will terminate as of the date of the expiration of the Employment Period.

(g) Waiver and Release of Claims. Except for (i) the continuation of health benefits under state or federal law at Executive’s (or his spouse and dependent’s) expense (for which statutory and eligibility requirements must be met) and (ii) the payment of Base Salary through the Termination Date, Executive shall not be entitled to receive any payments, benefits or other compensation under this Section 5 (including but not limited to any Annual Bonus or severance pay) unless and until Executive has executed and delivered to the Company a non-revocable waiver and release, in form and substance acceptable to the Company in its sole discretion, of all claims he has, or may have, known or unknown, against the Company, its subsidiaries and affiliates and their respective predecessors and successors, and any of the current or former directors, managers, officers, employees, owners, investors, shareholders, partners, members, representatives, or agents of any of the foregoing, which arise out of or relate to his employment, separation therefrom, any agreement between the Parties, the LLC Agreement, the Equirt Award Agreements or any other matter or facts or events occurring through the date of Executive’s signature on such waiver and release.
    
(h)  Impact of Termination of Employment on Equity Award.  The Parties acknowledge and agree that all provisions affecting the Equity Award Agreements as a result of any termination of Executive’s employment shall be as set forth in the Equity Award Agreements and the LLC Agreement.

6.  Confidential Information. 

The Company agrees and Executive acknowledges that prior to and during the Employment Period he shall be provided trade secrets, confidential and proprietary information intended to be kept in confidence concerning the Business of the Company and its affiliates (collectively, “Confidential Information”) that is the property of the Company and its affiliates, the use and knowledge of which gives the Company a competitive advantage, including, without limitation, information and knowledge pertaining to products, services, inventions, discoveries, improvements, innovations, designs, ideas, trade secrets, manufacturing, advertising, marketing, distribution and sales methods and forecasts, operating procedures, financial statements and other financial information, supplier, vendor, customer and client lists and relationships between the Company and its affiliates and customers, clients, vendors, suppliers, lessors and others who have business dealings with them, and the substance of any agreements with such persons and parties.  Therefore, Executive agrees that he shall not at any time during or after the Employment Period, directly or indirectly, regardless of when he obtained such Confidential Information, disclose, directly or indirectly, to any person or entity or use for his own purposes or the benefit of any third party, including any subsequent employer, any Confidential Information without the prior written consent of the Company.  Confidential Information does not include information which (i) is in the public domain or is generally known or available, or hereafter becomes part of the public domain or is generally known or available through no violation of this Agreement; (ii) is lawfully acquired by the Executive from any third party not bound, to the actual knowledge of the Executive, by an obligation of confidence to the Company; or (iii) is required, pursuant 

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Exhibit 10.1

to judicial action or governmental regulations or other requirements, to be disclosed by the Executive, provided that the Executive has notified the Company as such request for disclosure and cooperates with the Company in the event the Company elects to contest and avoid such disclosure. Executive shall deliver to the Company at the Termination Date, or immediately at any other time the Board may request, all property, memoranda, notes, plans, records, reports, electronic mail, computer files, printouts, software and other documents and data (and copies thereof, regardless of the media on which such are contained) constituting or relating to the Confidential Information, Work Product (as defined below), property or the business of the Company or its affiliates which he may then possess or have under his control. All Confidential Information and documents relating to the Company as described above shall be the exclusive property of the Company, and Executive shall use his commercially reasonable best efforts to prevent any publication or disclosure thereof.

7. Inventions and Patents. 
Executive acknowledges that all inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports and all similar or related information (whether or not patentable) that relate to the Company’s or its affiliates’ actual or anticipated business that are conceived, developed or made by Executive while employed by the Company or any of its affiliates (“Work Product”) belong to the Company or such affiliate (as the case may be). Any copyrightable work falling within the definition of Work Product shall be deemed a “work made for hire” as such term is defined in 17 U.S.C. Section 101, and ownership of all right, title and interest therein shall vest in the Company or its affiliates. To the extent that any Work Product is not deemed to be a “work made for hire” under applicable law or all right, title and interest in and to such Work Product has not automatically vested in the Company or its affiliates, Executive hereby irrevocably assigns, transfers and conveys, to the full extent permitted by applicable law, all right, title and interest in and to the Work Product on a worldwide basis to the Company or such affiliate (as the case may be), without further consideration.  Executive will promptly disclose such Work Product to the Company and perform all actions requested by the Company (whether during or after employment) to establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorney and other instruments).
8.  Non-Solicitation; Non-Competition.
(a)    Executive acknowledges, and the Company agrees, that in the course of Executive’s employment with the Company, Executive will be provided and become familiar with the Company’s and its affiliates’ trade secrets and Confidential Information. Executive further acknowledges that having access to and knowledge of the Confidential Information of the Company and its affiliates is essential to the performance of his duties with the Company and that such information is an extremely valuable and unique asset of the Company and its affiliates that gives them a competitive advantage over persons or entities that do not possess such information and knowledge. Therefore, Executive agrees that in consideration for the Company’s promise to provide him Confidential Information and trade secrets of the Company and its affiliates, in addition to other consideration provided herein, Executive will not, during the Employment Period and for a period of twenty-four (24) months (such period, the “Restricted Period”) thereafter, directly or indirectly contact or solicit vendors, suppliers, customers or clients of the Company or its affiliates with whom Executive had direct or indirect contact or about whom Executive received proprietary, confidential or otherwise non-public information for the purpose of providing services relating to well servicing, well workover, fluid management and well completion services and related engineering consulting services for the oil and gas industry and equipment rentals related thereto (the “Business”) or interfere with, disrupt or attempt to disrupt the relationship, contractual or otherwise, between the Company or any of its affiliates and any vendor, supplier, customer or client of the Company or any of its affiliates or in any way encourage them to terminate or otherwise alter their relationship with the Company or any affiliate.  Executive further agrees that during the Employment Period and the Restricted Period, he shall not, directly or indirectly, 

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Exhibit 10.1

provide any products or services related to the Business to the Company’s or its affiliates’ customers and clients, or prospective customers and clients with whom Executive had direct or indirect contact or about whom Executive received proprietary, confidential or otherwise non-public information, nor utilize the contacts, goodwill and rapport he established with any customers and clients to take away or divert business or income away from the Company or its affiliates to other persons or entities.  For purposes of this Section 8, “customers and clients” shall mean and include those customers, clients and prospective customers and clients who contacted or were contacted by the Company or its affiliates to do business with the Company or such affiliates.
(b)    Executive further agrees that in consideration for the Company’s promise to provide him Confidential Information and trade secrets of the Company and its affiliates, in addition to other consideration provided herein, he will not, during the Employment Period or the Restricted Period, directly or indirectly recruit, solicit, hire or retain (as an independent contractor, employee or otherwise) or attempt to recruit, solicit, hire or retain any employee, independent contractor, or former (within the then-preceding twenty-four (24) month period) employee or independent contractor of the Company or its affiliates, or encourage any employee or independent contractor of the Company or its affiliates to leave the employ or engagement of the Company or its affiliates, as the case may be.
(c)    In addition, except for services and duties performed pursuant to this Agreement by Executive for or on behalf of the Company and its affiliates during the Employment Period, Executive agrees that, during the Employment Period and the Restricted Period, Executive will not for any reason whatsoever, directly or indirectly, for himself or on behalf of or in conjunction with any other person, company, partnership, corporation, business or other entity of whatever nature, engage in, make loans to, own, operate, manage, control, become financially interested in or otherwise have any connection with, whether as an officer, director, manager, employee, independent contractor, advisor, sales representative, consultant, shareholder, owner, partner, member or in any other capacity, the Business within North America (the “Territory”) and anywhere outside of the Territory where the Company or its affiliates have made sales or significant sales efforts with respect to their goods or services relating to the Business during the Employment Period or the Restricted Period; provided, however, that the passive ownership by Executive of less than one percent (1%) of any class of equity securities of any corporation, if such equity securities are listed on a national securities exchange or are quoted on NASDAQ, will not be deemed to be a breach of this Section 8.
 (d)    If, at the time of enforcement of this Section 8, a court or other tribunal shall hold that the duration, geography or scope restrictions stated herein are unreasonable under circumstances then existing, the Parties agree that the maximum duration, geography or scope reasonable under such circumstances shall be substituted for the stated duration, geography or scope and that the court or other tribunal shall reform the restrictions contained herein to cover the maximum duration, geography and scope permitted by law.
9.  Non-Disparagement. 
Each Party agrees that it or he shall not, either during the Employment Period and after the termination thereof, whether in writing or orally, malign, denigrate, impugn, attack or disparage the other Party, its or his affiliates or their respective predecessors and successors, or any of the current or former directors, managers, officers, employees, owners, investors, shareholders, partners, members, representatives, or agents of any of the foregoing, with respect to any of their respective past or present activities, products or services, or otherwise publish (whether in writing or orally) statements that tend to portray any of the aforementioned Parties in an unfavorable light or take any unethical or deceitful action that would materially interfere with any existing or potential business relationship or contractual arrangement of such Party that is detrimental to the best interests of such Party.   Notwithstanding the above, this provision shall not apply to any testimony 

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Exhibit 10.1

given under oath pursuant to any pending or threatened legal proceeding or management-employee discussions, internal feedback, coaching or performance reviews.
10.  Remedies. 
Executive acknowledges that a violation by Executive of any of the covenants contained in Section 6, 7, 8 or 9 would cause irreparable damage to the Company in an amount that would be material but not readily ascertainable, and that any remedy at law (including the payment of damages) would be inadequate.  Accordingly, Executive agrees that, notwithstanding any provision of this Agreement to the contrary, the Company shall be entitled (without the necessity of showing economic loss or other actual damage) to injunctive relief (including temporary restraining orders, preliminary injunctions and/or permanent injunctions) in any court of competent jurisdiction for any actual or threatened breach of any of the covenants set forth in Section 6, 7, 8 or 9 in addition to any other legal or equitable remedies it may have.  The preceding sentence shall not be construed as a waiver of the rights that the Company may have for damages under this Agreement or otherwise, and all of the Company’s rights shall be unrestricted.  If Executive breaches any of the covenants contained in Section 6, 7, 8, or 9 of this Agreement, the Company will have the right and remedy to require Executive to account for and pay over to the Company all compensation, profits, monies, accruals, increments or other benefits derived or received by Executive as the result of such breach. This right and remedy will be in addition to, and not in lieu of, any other rights and remedies available to the Company under any other agreement between the Company and its affiliates, on the one hand, and Executive, on the other hand, at law or in equity.
11.  Business Opportunities  
Executive agrees, while he is employed by the Company, to offer or otherwise make known or available to it, as directed by the Board and without additional specific compensation or consideration therefor, any business prospects, contracts or other business opportunities that Executive may discover, find, develop or otherwise have available to Executive with respect to the Business, and further agrees that any such prospects, contacts or other business opportunities shall be the property of the Company.
12.  Notices. 
For purposes of this Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by any means which provides a receipt upon delivery and addressed as follows:

	
			
	 
	If to the Company to:
	Ranger Energy Services, LLC
800 Gessner, Suite 1000
Houston, TX 77024

	 
	If to Executive to:
	Mario H. Hernandez
4635 Lakeside Meadow Dr
Missouri City, TX 77459

or to such other address as either Party may furnish to the other in writing in accordance herewith, except that notices of changes of address shall be effective only upon receipt.

13.  GOVERNING LAW; EXCLUSIVE VENUE.  

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THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED UNDER THE INTERNAL LAWS OF THE STATE OF TEXAS WITHOUT REGARD TO CONFLICTS OF LAW.  IN THE EVENT OF A DISPUTE INVOLVING THIS AGREEMENT OR EXECUTIVE’S EMPLOYMENT WITH THE COMPANY, THE PARTIES IRREVOCABLY AGREE THAT EXCLUSIVE VENUE FOR SUCH DISPUTE SHALL LIE IN ANY COURT OF COMPETENT JURISDICTION IN HARRIS COUNTY, TEXAS, AND THE PARTIES WAIVE ANY CLAIM THAT SUCH FORUM IS INAPPROPRIATE OR INCONVENIENT.
14.  Complete Agreement.  
This Agreement, together with the Restricted Unit Award Agreements and the LLC Agreement, embodies the complete agreement and understanding between the Parties and supersedes and preempts any prior understandings, agreements or representations by or between the parties, written or oral, which may have related to the subject matter hereof in any way. Any equity awarded to Executive in connection with his employment hereunder will be subject to the terms and conditions of the applicable Restricted Unit Award Agreement and the LLC Agreement.
15.  Successor and Assigns.  
This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive and the Company and their respective successors, heirs and permitted assigns. This Agreement is personal to Executive and shall not be assignable by Executive, except for the assignment by will or the laws of descent and distribution of any accrued pecuniary interest of Executive, and any assignment in violation of this Agreement shall be void.  Except as noted in Section 3(a) hereof with respect to a Public Offering, this Agreement may only be assigned by the Company with Executive’s permission in writing.
16.  Noncontravention; Prior Agreements and Information.  
Executive represents, warrants and covenants that as of the date hereof: (i) Executive has the full right, authority and capacity to enter into this Agreement and perform Executive’s obligations hereunder, (ii) Executive is not bound by any agreement that conflicts with or prevents or restricts the full performance of Executive’s duties and obligations to the Company hereunder during or after the Employment Period, and (iii) the execution and delivery of this Agreement shall not result in any breach or violation of, or a default under, any existing obligation, commitment or agreement to which Executive is subject.  Executive represents and warrants that his service as an Executive of the Company and his performance of his duties hereunder will not and do not violate any prior agreement Executive made with any previous employer or company with whom he did business.  Executive further agrees that he has not previously, and will not in the future, disclose to the Company any confidential and proprietary information or trade secrets belonging to any previous employer, and acknowledges that the Company has instructed him not to disclose to it any confidential and proprietary information or trade secrets belonging to any previous employer.  Executive agrees acknowledges that he will not enter into any agreement, whether written or oral, conflicting with the provisions of this Agreement.
17.  Amendment.  
Except  otherwise expressly provided herein, this Agreement may be amended only by written agreement between the Company (with the written approval of the Board) and Executive, and any provision hereof may be waived only in writing by the Party who is so waiving (which waiver, if being made by the Company, shall require written approval of the Board).
18.  Counterparts; Facsimile Signature.  

10

Exhibit 10.1

This Agreement may be executed in one or more counterparts, all of which together shall constitute but one agreement.  Any Party may execute and deliver this Agreement by facsimile signature or by electronic portable document format (.pdf) and the other Party will be entitled to rely upon such facsimile or electronic portable document format (.pdf) signature as conclusive evidence that this Agreement has been duly executed by such Party.
19.  No Waiver.  
No failure or delay on the part of the Company or Executive in enforcing or exercising any right or remedy hereunder shall operate as a waiver thereof.  It is agreed that a waiver by either party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by that same party.
20.  Representations and Warranties; Advice of Counsel.  
Prior to execution of this Agreement, Executive was advised by the Company of Executive’s right to seek independent advice from an attorney of Executive’s own selection regarding this Agreement and Executive acknowledges that he has had sufficient opportunity to do so.  Executive acknowledges that Executive has entered into this Agreement knowingly and voluntarily and with full knowledge and understanding of the provisions of this Agreement after being given the opportunity to consult with counsel.  Executive further represents that in entering into this Agreement, Executive is not relying on any statements or representations made by any of the Company, its affiliates or any of their respective directors, managers, officers, Executives, owners, investors, shareholders, partners, members, representatives, or agents that are not expressly set forth herein, and that Executive is relying only upon Executive’s own judgment and any advice provided by Executive’s attorney.
21.  Cooperation. 
Executive agrees that, upon reasonable notice and without the necessity of the Company obtaining a subpoena or court order, during the Restricted Period and for one (1) year thereafter Executive shall provide reasonable cooperation in connection with any suit, action or proceeding (or any appeal from any suit, action or proceeding), and any investigation and/or defense of any claims asserted against the Company, its affiliates or their respective predecessors and successors, or any of the current or former directors, managers, officers, employees, owners, investors, shareholders, partners, members, representatives, or agents of any of the foregoing, which relates to events occurring during Executive’s employment or relationship with the Company or its affiliates as to which Executive may have relevant information (including, but not limited, to furnishing relevant information and materials to the Company or its designee and/or providing truthful testimony at depositions and at trial), provided that with respect to such cooperation occurring following termination of employment, the Company shall reimburse Executive for expenses reasonably incurred in connection therewith, and further provided that any such cooperation occurring after the termination of Executive’s employment shall be scheduled to the extent reasonably practicable so as not to unreasonably interfere with Executive’s business or personal affairs.
22.  Immunity.  
Nothing herein will prevent Executive from (i) making a good faith report of possible violations of applicable law to any governmental agency or entity; or (ii) making disclosures that are protected under whistleblower protections of applicable law.  Executive understands and agrees that he shall not be held criminally or civilly liable under any federal or state trade secret law or breach this Agreement for the disclosure of a trade secret that is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney solely for the purpose of reporting or investigating a suspected violation of law.  Executive further 

11

Exhibit 10.1

understands that he shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, provided such filing is made under seal.  Finally, Executive understands that, if he files a lawsuit for retaliation by the Company or its affiliates for reporting a suspected violation of law, Executive may disclose the trade secret to Executive’s attorney and use the trade secret information in the court proceeding, provided Executive files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.
23.  No Construction Against Drafter. 
No provision of this Agreement or any related document will be construed against or interpreted to the disadvantage of any Party hereto by any court or other governmental or judicial authority by reason of such Party having or being deemed to have structured or drafted such provision.
24.  Severability.  
If any provision or clause of this Agreement, or portion thereof, shall be held by any court or other tribunal of competent jurisdiction to be illegal, invalid or unenforceable in such jurisdiction, the remainder of such provision shall not be thereby affected and shall be given full effect, without regard to the invalid portion.  It is the intention of the Parties that, if any court or other tribunal
25.  Section 409A.  
This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) to the extent any amount payable hereunder is deferred compensation subject to Code Section 409A, and will be interpreted accordingly.  Notwithstanding anything herein to the contrary, (i) if at the time of Executive’s termination of employment with the Company  Executive is a “specified Executive” as defined in Section 409A of the Code and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Executive) and such payments shall be paid to Executive in a single lump sum as soon as practicable (and in all events within fifteen (15) days) after the date that is six (6) months following Executive’s termination of employment with the Company  (or the earliest date as is permitted under Section 409A of the Code without any accelerated or additional tax) and (ii) if any other payments of money or other benefits due to Executive hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner, determined by the Board, that is reasonably expected not to cause such an accelerated or additional tax.  To the fullest extent permitted under Code Section 409A, each payment made under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A of the Code, and references herein to Executive’s “termination of employment” shall refer to Executive’s separation from service with the Company within the meaning of Section 409A of the Code.  To the extent any reimbursements or in-kind benefits due to Executive under this Agreement constitute “deferred compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid to Executive in a manner consistent with Treas. Reg. Section 1.409A-3(i)(l)(iv).  Additionally, to the extent that Executive’s receipt of any in-kind benefits from the Company or its affiliates must be delayed pursuant to this Section 25 due to Executive’s status as a “specified Executive,” Executive may elect to instead purchase and receive such benefits during the period in which the provision of benefits would otherwise be delayed by paying the Company (or its affiliates) for the fair market value of such benefits (as determined by the Company in good faith) during such period.  Any amounts 

12

Exhibit 10.1

paid by Executive pursuant to the preceding sentence shall be reimbursed to Executive (with interest thereon) as described above on the date that is six (6) months following Executive’ separation from service. To extent any amount payable under this Agreement is deferred compensation subject to Code Section 409A, and the period during which Executive has to execute and or revoke a release prior to payment straddles a calendar year the payment shall not commence or be paid until the second calendar year. The Company shall consult with Executive in good faith regarding the implementation of the provisions of this Section 25; provided that neither the Company nor any of its Executives or representatives shall have any liability to Executive with respect thereto.

[Signature page follows.]
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above written.

Ranger Energy Services, LLC, a Delaware limited liability company

                                                      By:      /s/ Darron M. Anderson______________________
                                                      Name: Darron M. Anderson
                                                      Title:   President, Chief Executive Officer and Director

                                                      By:      /s/ Mario H. Hernandez______________________
                                                      Name: Mario H. Hernandez
                                                      Title:   Chief Accounting Officer

13Exhibit

Exhibit 10.9

SIXTH LEASE MODIFICATION

THIS SIXTH LEASE MODIFICATION (" Modification")  is  made  and  entered  into  as  of  this 26th day of June, 2018, by and between AMERICAN CENTER  LLC,  a  Michigan  limited  liability company ("Landlord"), and SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP, a Michigan limited partnership ("Tenant").

WHEREAS, Landlord and Tenant entered into that certain Lease dated November 1, 2002, as amended by that certain First Lease Modification dated December 14, 2007, that certain Second Lease Modification dated August 6, 2008, that certain Third Lease Modification dated October 31, 2011 (the "Third Modification"), that certain Fourth Lease Modification dated June 30, 2014 (the "Fourth Modification") and that certain Fifth Lease Modification dated January 26, 2018 (the "Fifth Modification") (collectively, as amended, the "Lease"), with respect to certain premises located in the American Center (the "Building"), Southfield, Michigan, commonly known as: (i) the Second Floor Premises, consisting of approximately 31,346 rentable square feet/ 29,024 usable square feet; (ii) the First Floor Premises, consisting of a total of approximately 8,587 rentable square feet / 7,667 usable square feet; (iii) the Seventeenth Floor Premises, consisting of approximately 11,493 rentable square feet/ 10,235 usable square feet; and (iv) the Third Floor Premises, consisting of approximately 20,087 rentable square feet / 18,599 usable square feet; and (v) the Fourth Floor Expansion Premises consisting of approximately 20,087 rentable square feet / 18,599 usable square feet, all as more particularly described in the Lease (collectively, the "Original Premises");

WHEREAS, the Second Floor Premises, the Seventeenth Floor Premises, the Third Floor Premises and the Fourth Floor Expansion (consisting of a total of 83,013 rentable square feet) may be referred to together herein as the "Office Premises";

WHEREAS, Tenant desires to expand the Office Premises to include Suite  500  on  the fifth (5th) floor of the Building, consisting of 20,087 rentable square feet / 18,599 usable square feet, as  more particularly described on Exhibit A attached hereto (the " Fifth Floor Expansion Space" and together  with the Office Premises and the First Floor Premises, the "New Premises") effective as of November l, 2019, provided that there is no Landlord Delay (as defined in Section 1.12 of the Work Letter attached hereto as Exhibit B) in delivering the Fifth Floor Expansion Space to Tenant, and in case of a Landlord Delay, then effective as of the later date that Landlord actually  delivers  the  Fifth  Floor  Expansion  Space  to Tenant  (the "Effective Date") and continuing for the remaining term of the Lease, subject  to  the  terms  and conditions set forth below; and

WHEREAS, the Office Premises and the Fifth Floor Expansion Premises may  be referred to together herein as the "New Office Premises".

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant intending to be legally bound, agree and amend the Lease as follows:

1.General. In the event of any inconsistency between the provisions, terms, and conditions in the Lease or in this Modification, this Modification shall control. Capitalized terms used and not defined herein shall have the meanings ascribed to them in the Lease. Except as otherwise expressly modified herein, the parties hereby expressly ratify, reaffirm and agree to be bound by each and every obligation under the Lease. Landlord and Tenant acknowledge and agree that the Lease is in full force and effect and that, as of the date hereof, the Lease is subject to no offsets, claims, counterclaims or defenses by Landlord or Tenant of any nature whatsoever. Tenant acknowledges that Landlord is not in default under any of the terms of the Lease. Landlord acknowledges that Tenant is not in default under any of the terms of the Lease.

		
	2.
	Office Premises. Monthly Base Rent for the Office Premises shall be as set forth below:

Exhibit 10.9

	
														
	 
	2nd Floor Premises Base Rent
31,346 sf
	17th Floor Premises Base Rent
11,493 sf
	3rd Floor Premises Base Rent
20,087 sf
	4th Floor Premises Base Rent
20,087 sf

	Date hereof - 10/31/2018
	$17.95
	$
	46,888.39
	

	$
	17,191.61
	

	$
	30,046.80
	

	$
	30,046.80
	

	11/1/2018 - 10/31/2019
	$18.45
	$
	48,194.48
	

	$
	17,670.49
	

	$
	30,883.76
	

	$
	30,883.76
	

	11/1/2019 - 10/31/2020
	$18.95
	$
	49,500.56
	

	$
	18,149.36
	

	$
	31,720.72
	

	$
	31,720.72
	

	11/1/2020 - 10/31/2021
	$19.45
	$
	50,806.64
	

	$
	18,628.24
	

	$
	32,557.68
	

	$
	32,557.68
	

	11/1/2021 - 10/31/2022
	$19.95
	$
	52,112.73
	

	$
	19,107.11
	

	$
	33,394.64
	

	$
	33,394.64
	

	11/1/2022 - 10/31/2023
	$20.45
	$
	53,418.81
	

	$
	19,585.99
	

	$
	34,231.60
	

	$
	34,231.60
	

	11/1/2023 - 10/31/2024
	$20.95
	$
	54,724.89
	

	$
	20,064.86
	

	$
	35,068.55
	

	$
	35,068.55
	

	11/1/2024 - 10/31/2025
	$21.45
	$
	56,030.98
	

	$
	20,543.74
	

	$
	35,905.51
	

	$
	35,905.51
	

	11/1/2025 - 10/31/2026
	$21.95
	$
	57,337.06
	

	$
	21,022.61
	

	$
	36,742.47
	

	$
	36,742.47
	

3.Fifth Floor Expansion Premises. Landlord and Tenant agree  to  expand  the  Office Premises to include the Fifth Floor Expansion  Premises  effective  as of the Effective  Date and  continuing for a term expiring on October 31, 2026, subject to the terms  and conditions  set forth  below.  Tenant shall pay monthly Base Rent on the Fifth Floor Expansion Premises, as set forth below:

	
					
	 
	

5th Floor Expansion Premises Base Rent
20,087 sf

	Effective Date - 10/31/2020
	$18.95
	$
	31,720.72
	

	11/1/2020 - 10/31/2021
	$19.45
	$
	32,557.68
	

	11/1/2021 - 10/31/2022
	$19.95
	$
	33,394.64
	

	11/1/2022 - 10/31/2023
	$20.45
	$
	34,231.60
	

	11/1/2023 - 10/31/2024
	$20.95
	$
	35,068.55
	

	11/l /2024 - 10/3l /2025
	$21.45
	$
	35,905.51
	

	11/1/2025 - 10/31/2026
	$21.95
	$
	36,742.47
	

4.Operating Expenses and Real Estate Taxes for Fifth Floor Expansion Premises. During the Term of the Lease, as applicable to the Fifth Floor Expansion Premises, Tenant shall pay Operating Expenses and Real Estate Taxes in accordance with Section 6 of the Lease, as modified by Paragraph 9 of the Fourth Modification, consistent with Tenant's obligations to pay Operating Expenses and Real Estate Taxes with respect to the Office Premises.

		
	5.
	Proportionate Share. Tenant's Proportionate Share shall be as follows:

		
	a.
	As of the date hereof and continuing until the day prior to the Effective Date, Tenant's Proportionate Share shall remain 16.70% (83,013 rentable square feet of the Office Premises I 497,144 total Building rentable square footage). The First Floor Premises is not included in this calculation.

		
	b.
	From and after the Effective Date, Tenant's Proportionate Share shall be 20.74% (103,100 rentable square feet, consisting of the Office Premises plus the Fifth Floor Expansion Premises/ 497,144 total Building rentable square footage). The First Floor Premises is not included in this calculation.

		
	6.
	Base Year. The Base Year shall remain 2014 for all of the New Office Premises.

7.Tenant Improvements for the Fifth Floor Expansion Space. For the Fifth Floor Expansion Space, Landlord shall provide Tenant with a tenant improvement allowance of $24.50  per rentable  square foot (up to $492,131.50) ("Base Tenant Improvement Allowance") for use in the  Fifth  Floor  Expansion Space to be used by December 31, 2020 in accordance with the Tenant Improvement  Work  Letter  Agreement attached hereto as Exhibit B ("Work Letter"). Any portion of the Base Tenant Improvement Allowance that has not been used by December 31, 2020 through no fault of Landlord shall  revert  to Landlord and Tenant shall have no claim for, and shall not be entitled to receive, any such remaining sum.

Exhibit 10.9

Landlord will use its standard process and pricing to provide construction services. In the event the cost of completing the Tenant Improvements is less than the Base Tenant Improvement Allowance, Landlord shall retain the difference and Tenant shall have no claim for, and shall not be entitled to receive, any such sum. To the extent the total cost of the Tenant Improvements exceeds the Base Tenant Improvement Allowance, as provided in Section 10 of the Work Letter, Tenant shall pay the difference in accordance with Section 10 of the Work Letter.

The commencement date and Tenant's obligation to commence paying Base Rent for the Fifth Floor Expansion Space shall be November 1, 2019, regardless of when the Tenant Improvements are completed, provided that Landlord has not caused a Landlord Delay (as defined in the Work Letter). As long as Landlord is using commercially reasonable efforts to diligently pursue and complete the construction of the Tenant Improvements, there will be no Landlord Delay.

8.Option to Renew. Tenant's Option to Renew as set forth in Paragraph 15 of the Fourth Modification shall only be applicable to the entire New Office Premises.

9.Non-Disclosure. Tenant will not record this Modification or a memorandum hereof, and will not otherwise disclose the terms of this Modification to anyone other than its attorneys, accountants or employees who need to know of its contents in order to perform their duties for Tenant, or as otherwise required by law, including without limitation, disclosure of certain information regarding square footage and rental rate per square foot for SEC filings and documents. Any other disclosure will be an Event of Default under the Lease. Tenant agrees that Landlord shall have the right to publish a "tombstone" or other promotional description of this Modification.

10.Brokers. Tenant and Landlord each represents and warrants to the other that no real  estate broker, agent, commission salesman, or other person, participated in the negotiations for and procurement of this Modification, and that no commissions, fees or compensation of any kind are due and payable in connection herewith to any real estate broker, agent, commission salesman or other person. Each party agrees to indemnify and hold the other hereunder harmless from and against any claim for any such commissions, fees or other form of compensation by any such third party claiming through the indemnifying party, including, without limitation, any and all claims, causes of action, damages, costs and expenses (including attorneys' fees), associated therewith.

11.Entire Agreement. This Modification contains the entire understanding of the parties with respect to the subject matter hereof and shall not be amended, altered or changed except in writing executed by all parties hereof.

12.Binding Effect. This Modification shall be binding upon, and shall inure to the benefit of, the parties hereto, and their respective successors and permitted assigns.

13.Counterparts. This Modification may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall be considered one in the same agreement. A signed copy of this Modification delivered by facsimile shall be binding on the parties.

14.Conflicts. Except as hereinabove specifically provided to the contrary, all of the remaining terms, covenants, and agreements contained in the Lease, and all modifications thereafter, shall remain in full force and effect and shall be applicable to the Premises and is hereby acknowledged, ratified, and confirmed by the parties hereto.

[Remainder of Page Intentionally Left Blank]

Exhibit 10.9

In witness whereof, the parties have executed this Modification as of the day and year first above
written.

Tenant:

SUN COMMUNITIES OPERATING LIMITED PARTNERSHIP,
a Michigan limited partnership

   By:    /s/ Karen J. Dearing
   Name:  Karen J. Dearing
   Its:     Chief Financial Officer

Landlord:

AMERICAN CENTER, LLC,
a Michigan limited liability company

   By:      AM MANAGER, INC.,
               a Michigan corporation
   Its:       Manager

   By:      /s/ Paul A. Stodulski
   Name:  Paul A. Stodulski
   Its:       Authorized Representative

.'

Exhibit 10.9

Exhibit A

Fifth Floor Expansion Premises

Exhibit 10.9

Exhibit B

TENANT IMPROVEMENTS WORK LETTER AGREEMENT

		
	1.
	Definitions. For the purposes of this Tenant Improvements Work Letter Agreement (the "Work Letter"), the following terms shall have the meanings set forth below. Terms which appear in bold in this paragraph, but which are not defined in this paragraph, shall have the meanings set forth in the Lease, as amended by the Fifth Lease Modification to which this Work Letter is attached (the "Modification"). The term "Premises" as used herein shall mean the Fifth Floor Expansion Space.

1.1      "Base Tenant Improvement Allowance" shall mean the amount to be contributed by Landlord toward Tenant Improvement Cost. The Base Tenant Improvement Allowance shall be an amount equal to the product of (i) Twenty-four and 50/100 Dollars ($24.50), times (ii) the rentable square footage of the Premises.

 1.2.    "Building" shall mean the Building Shell and the Tenant Improvements.

             1.3     "Building Shell" shall mean the Premises in its current "as is" condition.

                     1.4      "Construction Manager" shall be REDICO Management and shall act as Landlord's authorized agent as it relates to this Work Letter. Construction Manager shall be responsible for construction of the Tenant Improvements.

1.5     "Tenant Improvements" shall mean all interior portions of the Building to be demolished and constructed by Landlord per the approved Working Drawings, including, but not limited to, electrical, HVAC, plumbing and fire/life safety systems (to the extent the electrical, HVAC, plumbing and fire/life safety systems are not included in the Building Shell), interior partitions, floor coverings, acoustical ceilings, interior finishes and similar items.

1.6     "Space Planner" shall mean Neumann/Smith Architecture. Space Planner shall be employed by Tenant and all costs of Space Planner will be charged against the Tenant Improvement Allowance.

1.7     "Tenant Improvement Cost" shall mean all costs for construction and installation of the Tenant Improvements from the Building Shell, including fees charged by Space Planner. The cost for construction and installation shall include, but not be limited to, the following:

		
	(i)
	All costs of obtaining building permits and other necessary authorizations of the construction of the Tenant Improvements from all necessary governmental, quasi-governmental or regulatory agencies;

		
	(ii)
	All direct and indirect costs of procuring, constructing and installing Tenant Improvements including, but not limited to, Construction Manager's cost to install the Tenant Improvements, including overhead and profit, (excepting, however, there will be no overhead or profit on items which are not supplied by contractor, i.e., modular partitions, phone systems, etc.); electricity, HVAC, parking (as applicable), and non-standard elevator usage.

		
	(iii)
	Sewer permit and construction fees and all other utility fees to the extent the fees relate to any drains installed in the Premises at Tenant's request or any satellite dish to be installed on the Property at Tenant's request.

1.8     Construction Management Fee. The Construction Manager shall be paid a fee equivalent to five (5%) percent of the total Tenant Improvement Cost.

1.9      Tenant Delay. Requests by acts, omissions, change orders by Tenant and/or Tenant's failure to meet the time frames and/or Tenant disapproval as provided herein or in future correspondence which is unresolved in the time period required shall constitute a Tenant Delay. Landlord shall promptly advise Tenant of any Tenant Delay in writing.

Exhibit 10.9

1.10     "Tenant Personal Property" shall mean all personal property constructed or installed in the Building by Tenant at Tenant's expense, including furniture, fixtures and equipment, telephone and data cabling, audio visual equipment and Tenant security systems, but excluding Tenant Improvements.

1.11      "Tenant's Work" shall mean such work necessary for Tenant's use of the Premises that is not included in the Tenant Improvements including, but not limited to, the installation of furniture, telephone and data cabling, audio visual equipment and Tenant security systems. Tenant shall be responsible for any required permits, fees, plans and installation costs necessary for Tenant's Work.

1.12  "Landlord Delay" shall mean any delay in the completion of the Tenant Improvements, which is due to any wrongful or negligent act or omission of Landlord, its agents or contractors, including but not limited to Landlord's failure to provide any authorizations, approvals or disapprovals required hereunder within the time frames provided hereunder.

		
	2.
	Project Meeting. Commencing upon the execution of the Modification, Landlord and Tenant shall hold periodic meetings at reasonable times, upon reasonable notice, with the Space Planner and the Construction Manager regarding the progress of the preparation of the approved Working Drawings, and the construction of the Tenant Improvements and base, shell and core. Meeting notes shall be prepared by Landlord and provided to Tenant following each meeting.

		
	(a)
	Tenant has designated Joel Smith at Neumann/Smith Architecture as its sole representative with respect to the matters set forth in this Work Letter who, until further notice to Landlord, shall have full authority and responsibility to act on behalf of Tenant as required in this Section 2.

		
	(b)
	Landlord has designated Randy Payne of REDICO Management, Inc. as its sole representative with respect to the matters set forth in this Work Letter who, until further notice to Tenant, shall have full authority and responsibility to act on behalf of Landlord as required in this Section 2.

		
	3.
	Preliminary Plans for Tenant Improvements.

3.1 Preparation by Space Planner. The preliminary plans ("Preliminary Plans") for the Tenant Improvements shall be prepared by Space Planner and shall be subject to review and approval of Landlord in accordance with the provisions of this Section 3. Preliminary Plans shall include partition plans, preliminary specification of finishes, lighting plans, electrical and HVAC requirements.

3.2  Delivery of Preliminary Plans. Tenant shall be primarily responsible for preparation of the Preliminary Plans. Landlord's sole responsibility shall be to cooperate by reviewing and commenting on draft Preliminary Plans prepared by Tenant.

3.3 Review and Approval. Landlord shall have seven (7) business days after the delivery of the Preliminary Plans to review and approve the Preliminary Plans. If Landlord does not approve the Preliminary Plans, Landlord shall deliver to Tenant a statement of Landlord's disapproval. Failure of Landlord to deliver to Tenant a written statement of disapproval within the seven (7) business day period shall constitute approval by Landlord of the Preliminary Plans. If Landlord disapproves, Landlord and Tenant shall cooperate in order to revise the Preliminary Plan in a manner acceptable to the parties.

Landlord's approval of any plans shall not constitute a representation, warranty or agreement (and Landlord shall have no responsibility or liability for) the completeness or design sufficiency of any plans or the Tenant Improvements, or the compliance of the plans or Tenant Improvements with any laws, rules or regulations of any governmental or other authority.

3.4 Preliminary Pricing. Landlord shall provide a preliminary price ("Preliminary Price") estimate based on the Preliminary Plans for Tenant's review and approval within fourteen (14) business days after Landlord's approval of the Preliminary Plans. Tenant's failure to approve or disapprove the Preliminary Price within the fourteen (14) business days shall constitute approval. If Tenant disapproves, Landlord and Tenant shall cooperate in order to revise the Preliminary Plans in a manner acceptable to the parties.

		
	4.
	Working Drawings for Tenant Improvements.

Exhibit 10.9

4.1 Preparation by Tenant's Space Planner. Upon approval of Preliminary Pricing, Space Planner shall provide Landlord with completed and sealed working drawings (including "spec" book with cut sheets and details, project manual and electronic copies of CAD drawings) in conformance with the Preliminary Plans showing (i) Tenant's partition layout and the location and details of all data lines; (ii) reflected ceiling plan; (iii) the location of telephone and electrical outlets; (iv) the location, style and dimension of the lighting; (v) the location design and style of all doors (including hardware and accessories), floor coverings and wall coverings; (vi) the location, design, style and dimensions of all cabinets and case work; and (vii) the design specifications for plumbing and fixtures, electrical, mechanical and HVAC systems ("Working Drawings") for the Tenant Improvements which shall be in conformity with the Preliminary Plans.

4.2  Landlord's Review of Working Drawings for Tenant Improvements. Within five (5) business days after receipt of the Working Drawings, Landlord shall notify Tenant in writing of any reasonable changes necessary to bring the Working Drawings into substantial conformity with the Preliminary Plans. Failure of Landlord to deliver to Tenant written notice of the changes within the five (5) business day period shall constitute approval by Landlord of the Working Drawings. If any changes requested by Landlord are reasonably necessary to bring the Working Drawings into substantial conformity with the Preliminary Plans, Tenant shall cause the changes to be made and, subject to Landlord's review of the changes, the revised Working Drawings shall be deemed approved.

Landlord's approval of any plans shall not constitute a representation, warranty or agreement (and Landlord shall have no responsibility or liability for) the completeness or design sufficiency of any plans or the Tenant Improvements, or the compliance of the plans or Tenant Improvements with any laws, rules or regulations of any governmental or other authority.

		
	5.
	Preliminary Plans and Working Drawings. Not later than February 14, 2019, Space Planner shall deliver to Landlord the Preliminary Plans. Not later than February 28, 2019, Space Planner shall deliver to Landlord the final Working Drawings.

		
	6.
	Building Permit. Landlord shall be responsible for obtaining a building permit (" Building Permit") for the Tenant .Improvements, consistent with the Working Drawings. The cost of the Building Permit shall be included as part of the Tenant Improvement Cost, however, Landlord shall not charge an additional administrative fee for obtaining the Building Permit. To the extent requested by Landlord, Tenant shall assist Landlord in obtaining the Building Permit.

		
	7.
	Review of Bids and Subcontract Award.

7.1 Review.    Within fourteen (14) business days of approval of the Working Drawings, Landlord and its Construction Manager shall provide Tenant with a detailed estimate of the Tenant Improvement Cost broken down by discipline (i.e., mechanical electrical plumbing, etc.). Landlord shall also provide Tenant with an estimated project construction schedule. The estimate for Tenant Improvement Cost shall be based on bids obtained by Landlord from three (3) reputable and experienced subcontractors for each major construction discipline, provided however, subject to Tenant's reasonable approval, Landlord may solicit less than three (3) bids for such subcontracts as it deems appropriate but in no event shall Tenant's disapproval of any such limited solicitation cause a Tenant Delay. Tenant shall have the right to participate with Landlord and reviewing the reconciled bids of the contractors. Landlord shall award the subcontract based on its good faith and reasonable comparison of (i) price ; (ii) bid completeness; (iii) capability of subcontractor of performing the scope of work necessary in a quality manner; (iv) ability of subcontractor to meet the project schedule , and {v) ability of subcontractor to perform under its warranty. Tenant shall either approve or dis approve contract bids based on Working Drawings within three (3) days of receipt thereof. If Tenant disapproves, Tenant and Landlord shall cooperate in order to revise the plans and specifications in a manner acceptable to both parties. Upon approval of the bids by both parties, the final bids shall hereinafter be referred to as the “Final Bid".

7.2  Specified Contractors.  In the event that Landlord requires use of specific subcontractors or entities (such as mechanical, electrical plumbing, engineering or other contractors), Landlord shall cause such contractors or entities to charge an amount equal to the lower of the cost such contractors or entities charge Landlord for similar work performed for Landlord's own account, or the cost that comparable first-class, 

Exhibit 10.9

reputable, and reliable contractors or entities would have charged if selected pursuant to competitive bidding procedures.

		
	8.
	Design Build Drawings.

Tenant's Review of Design Building Drawings for Electrical, Mechanical, Plumbing, Fire/Life Safety and HVAC Systems. Upon award of subcontract, Landlord shall direct the appropriate subcontractor to create design build drawings. Upon completion of the design build Electrical, Mechanical, plumbing, fire/life safety and HVAC System Drawing(s) by the selected subcontractor(s), Landlord shall deliver said drawings to Tenant for Tenant's approval. Within five (5) business days after receipt of the drawings, Tenant shall notify Landlord in writing of any necessary modifications. Failure of Tenant to deliver to Landlord written notice of the modification within the five (5) business day period shall constitute approval by Tenant of the drawings.

		
	9.
	Change Requests.

9.1 Approval. No changes to the approved Working Drawings requested by Tenant shall be made without Landlord's prior written approval, which approval shall not be unreasonably withheld or delayed, subject to the following:

		
	(a)
	No change request shall affect the structure of the Building;

		
	(b)
	The Landlord shall accept only change requests signed by Tenant's Representative. The Tenant may from time to time designate a different representative to authorize change requests.

9.2 Procedure. Within three (3) business days after receipt of a written change request from Tenant, Landlord shall notify Tenant verbally of Landlord's approval or disapproval of the request; Landlord shall confirm, in writing, Landlord's approval or disapproval within five (5) business days after receipt of Tenant's written change request. Tenant's delivery of the change request shall include a written statement specifying that Landlord's failure to approve or disapprove the change request within the allotted time period shall constitute approval. If Landlord fails to notify Tenant of Landlord's approval of the change request within the required period, the change request shall be deemed approved.

9.3 Notification. At the time of Landlord's notification pursuant to Section 9.2, Landlord  shall inform Tenant of Landlord's estimate of the increased costs (if any) which will be incurred as a result of the change order and the delay which will result from the change order. Landlord's delivery of the estimate of the increased costs shall include a written statement specifying that Tenant's failure to approve or disapprove the estimate of the increased costs within the allotted time period shall constitute approval. Tenant shall have the right, for a period of two (2) business days after receipt of Landlord's notification to revoke the proposed change order. If Tenant fails to notify Landlord of the revocation of a change order, the change order shall be deemed in effect and any delay resulting from the change order shall be considered a Tenant Delay.

9.4 Minor Changes Work. Landlord shall have the authority, without the consent of Tenant, to order any changes required by applicable laws or regulations, and to order minor changes in the Building not involving an increase in cost to Tenant or a delay in the construction schedule. Landlord shall notify Tenant of any such change order within five (5) business days after the change order. Delays caused by laws or regulations shall not be deemed delays within Landlord's or Tenant's control nor shall they be considered a Tenant Delay.

		
	10.
	Payment. Tenant shall only be responsible for Tenant Improvement Costs in excess of the Base Tenant Improvement 

Exhibit 10.9

Allowance as follows: (a) to the extent the Final Bid exceeds the Base Tenant Improvement Allowance , then Tenant shall pay such excess costs as set forth below; (b) to the extent the total Tenant Improvement Costs exceed the Base Tenant Improvement Allowance as a result of change orders in accordance with Section 9 above, then Tenant shall pay such excess costs as set forth below; (c) to the extent the total Tenant Improvement Costs exceed the Base Tenant Improvement Allowance as a result of a Tenant Delay; and (d) to the extent the total Tenant Improvement Costs exceed the Base Tenant Improvement Allowance as a result of any Governmental Compliance Costs (hereinafter defined), then Tenant shall pay such excess costs as set forth below. If Tenant is required to pay excess costs in accordance with the preceding sentence, Tenant shall pay such excess costs as follows: (i) fifty percent (50%) of such amount within thirty (30) days after: (A) the date of the approval of the Final Bid, in the case of excess costs of the Final Bid over the Base Tenant Improvement Allowance, (B) any change order is submitted, (C) the occurrence of a Tenant Delay submitted to Tenant in writing and/or (D) the occurrence of a Governmental Compliance Cost submitted to Tenant in writing; and (ii) fifty percent (50%) of such amount within thirty (30) days after Landlord has notified Tenant that such work is completed. In no event shall Landlord be required  to commence  or  continue  such work if there exists an Event of Default  with  respect  to  Tenant's  obligations  to  make  the payments herein required. As  used  here in,  "Governmental  Compliance  Cost  shall  mean  any actual cost or expense incurred in connection  with  any  governmental  compliance  requirement either within or outside of the Premises required as a result of any aspect  in  the  design  of  the Tenant Improvements that is unique or special to Tenant , its business  and /or  its intended  use of the P remises (beyond that of general office use).

		
	11.
	Completion and Commencement. Landlord covenants and agrees that upon establishment of the Working Drawings and receipt of necessary permits, it shall cause its Construction Manager to promptly commence construction of the Tenant Improvements and diligently proceed to complete same at its sole cost and expense. The construction shall be performed by Landlord in a good and workmanlike manner and in compliance with all laws. Landlord shall obtain or cause to be obtained all certificates of occupancy and other governmental approvals which may be required to permit the occupancy of the Premises for the uses permitted by this Lease, the cost of such approvals shall be charged against the Tenant Improvement Cost, however, Landlord shall not charge an additional administrative fee for obtaining such approvals.

		
	12.
	Tenant's Work. Tenant and Tenant's agents and contractors may enter the Premises prior to completion of the Tenant Improvements in order to make the Premises ready for Tenant's use and occupancy by means of activities including, but not limited to, furniture, telephone, and data installation and cabling as  applicable.  Such  entry  prior  to  completion  of  the  Tenant Improvements  is  conditioned  upon   Tenant   and   Tenant's   agents,   contractors,   workmen, mechanics, suppliers, and invitees working in harmony and not interfering with Landlord and Landlord's contractors in doing the Tenant Improvements  or with  other tenants  and  occupants  of the Building. Tenant agrees that any such  entry  into the Premises  shall  be deemed  to be under  all of the terms, covenants, conditions, and provisions of the Lease (including, without limitation, all insurance agreements) except as to the covenant to pay Rent thereunder, and further agrees that Landlord shall not be liable in any way for any injury, loss, or damage  which  may  occur  to any items of work constructed by Tenant or to other property of Tenant that may be placed in  the Premises prior to completion of the Tenant Improvements, the same being at Tenant ' s sole risk. Landlord agrees to cooperate with Tenant and Tenant's agents and contractors. Landlord, or its agent, shall retain physical control of the job site.

		
	13.
	Substantial Completion. Landlord shall construct the Tenant Improvements and the Tenant Improvements and deliver the Premises "ready for occupancy" (as defined below) to Tenant on or about November I, 2019. The Premises will be conclusively deemed "ready for occupancy" on the earlier to occur of when: (i) the work to be done under this Work Letter has been substantially completed and after the issuance of a conditional or temporary certificate of occupancy for the Premises by the appropriate government agency within whose jurisdiction the Building is located, or (ii) when Tenant takes possession of the Premises for the operation of its business. The Premises will not be considered unready or incomplete if (i) only minor or insubstantial details of construction, decoration or mechanical adjustments remain to be done within the Premises or Common Areas of the Building, (ii) only landscaping or exterior trim remains to be done outside the Premises, (iii) Tenant’s work is incomplete; (iv) if the delay in the availability of the Premises for Tenant's occupancy is caused in whole or in material part by Tenant. By occupying the Premises for the operation of its business, Tenant will be deemed to have accepted the Premises and to have acknowledged that they are in the condition called for in this Lease, subject only to "punch list" items (as the term "punch list" is customarily used in the construction industry in the area where the Project is located) identified by Tenant by written notice delivered to Landlord within ten (10) days after the date Landlord tenders possession of the Premises to Tenant

Exhibit 10.9

		
	14.
	Completion of Punchlist Items by Landlord. Landlord shall commence completion of punchlist items as expeditiously as possible after Substantial Completion, but in no event later than thirty (30) days after Substantial Completion and shall also diligently pursue obtaining a final certificate of occupancy, if only a conditional or temporary certificate was issued for Substantial Completion, as expeditiously as possible after Substantial Completion. The punchlist shall be developed by Landlord and Tenant after Substantial Completion of the Tenant Improvements by means of an inspection of the Premises by Landlord and Tenant.

		
	15.
	Landlord's Work. In all events, when constructing and installing the Tenant Improvements, Landlord and its contractors shall use their commercially reasonable efforts not to damage the Premises or interfere with or interrupt any business being conducted by Tenant within the Premises.

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