Document:

pgti-ex1015_442.htm

EXHIBIT 10.15

 

 

INDEPENDENT CONTRACTOR AGREEMENT

 

 

This Independent Contractor Agreement (this “Agreement”) is entered into effective as of January 1, 2019 (the “Effective Date”) by and between PGT Innovations, Inc., a Delaware corporation (“Company”) and Rod Hershberger, the Company’s former Chief Executive Officer, who retired effective January 1, 2018 (“Contractor”, and together with the Company, the “Parties”).  

 

Background

 

The Parties to this Agreement desire for Company to engage Contractor under the legal relationship of an independent contractor according to the terms and conditions of this Agreement, for the provision of the services described herein, including on Schedule 1 hereto (collectively, the “Services”).  

 

Now, therefore, in consideration of the mutual premises and covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by both Parties hereto, the Parties, intending to be legally bound, hereby agree as follows:

 

Terms

 

1.Term.  Company agrees to engage Contractor, and Contractor agrees to be so engaged, for a period of twelve (12) months commencing on the Effective Date (the “Term”), unless the Agreement is terminated prior to that expiration date, in accordance with the termination provisions set forth herein.  Upon the expiration of the Term, the Company’s Chief Executive Officer, Board of Directors and Contractor shall review together whether this Agreement shall be renewed and the terms and conditions of any such renewal.  This Agreement shall not be renewed without the prior written approval of the Company’s Board of Directors, and the Company’s Board of Directors shall have the ultimate authority, in its discretion, to determine whether to renew or extend this Agreement, and the terms and conditions of any such renewal or extension.

 

2.Compensation.  Contractor shall receive Twenty-Nine Thousand One Hundred Sixty-Six and 67/100 ($29,166.67) per month for all Services rendered pursuant to this Agreement.  That amount is separate from, and does not include, any compensation paid to Contractor for his role as a non-employee member and chairman of the Company’s Board of Directors.  That consulting fee shall be paid to Contractor within ten business days after the conclusion of the month for which Services were rendered.  Company shall reimburse Contractor for all pre-approved, commercially reasonable expenses relating to mileage, entertainment, travel and meals incurred while providing Services to Company.  As a former executive of Company, Contractor is eligible to have the Company provide him and his spouse with Company health 

 

insurance even though he is no longer an employee and Company shall pay the premiums for said insurance during the Term as further compensation to Contractor for his performance of the Services pursuant to this Agreement, but only for so long as this Agreement is in effect.  In the event that the amount of time spent by Contractor performing Services for the Company significantly exceeds forty percent of the amount of time Contractor would perform services for the Company if he was a full time executive officer of the Company, due to a request from the Company’s CEO or its Board of Directors that Contractor perform additional Services, Contractor shall be eligible for a productivity bonus, with the determination of whether to pay any such bonus and the amount and timing of any such bonus to be made in the sole discretion of the Company’s Board of Directors.  Contractor shall not be entitled to any other payments or benefits from Company as compensation for the provision of the Services pursuant to this Agreement (as such term is defined herein).  

 

3.Duties.  Contractor shall provide to Company the services described on Schedule 1 hereto, as well as such other services as may be agreed to by Company and Contractor from time to time (collectively, the “Services”).  Company shall provide Contractor with the use of an office, computer and phone when Contractor is on-site at Company’s headquarters offices, however it is anticipated that a portion of the time Contractor spends providing the Services will be off site.        

 

4.Independent Contractor Relationship.  It is specifically agreed that the relationship of the Parties hereto shall be that of a company and an independent contractor, and not that of an employer-employee.  Therefore, the Parties specifically agree that Company shall have the right of control only to the extent of determining the results to be accomplished by Contractor, but not as to the details and means by which those results shall be accomplished.  Contractor is not an employee of Company.  Contractor shall be solely responsible for any unemployment compensation contributions, all benefits and any other payroll tax matters as they relate to Contractor.  Contractor shall not be considered an employee of Company for federal income tax purposes.  In the event that the Internal Revenue Service does not recognize this Agreement as establishing an independent contractor relationship and assesses a deficiency, penalties or interest against Company, then Contractor agrees to indemnify Company for all such amounts.  Contractor shall assume full and total responsibility for, and legal liability relating to, all taxes which may be owed as a result of his relationship with Company under this Agreement, including, but not limited to, the payment of self-employment taxes, the payment of any federal and state unemployment taxes, the payment of federal and state estimated income taxes due and payable resulting from the compensation earned, and all other income or employment or contractor-related taxes.  

 

5.Restrictive Covenants.  Contractor recognizes and affirms that all restrictive covenants in existence in his February 2009 employment agreement with the Company, previously executed between Company and Contractor, remain in full force and effect during the term of and for two years after the expiration or termination of this Agreement.  

 

6.Confidentiality.  Contractor acknowledges that Company continually obtains and develops valuable proprietary and confidential information (as further defined below, the “Confidential Information”) which are owned solely by Company, even if created, developed or 

 

invented by Contractor, and which may become known to Contractor in connection with this Agreement.

 

Contractor acknowledges that all Confidential Information is and shall remain the exclusive property of Company.  By way of illustration, but not limitation, Confidential Information may include photographs, film, slides, prints, digital and electronic media, designs, patents, inventions, trade secrets, technical information, know-how, research and development activities of Company, product and marketing plans, customer and supplier information, and information disclosed to Company or to Contractor by third parties of a proprietary or confidential nature or under an obligation of confidence.  

 

Contractor agrees that he shall not, during the Term and thereafter, publish, disclose, or otherwise make available to any third party any Confidential Information of or about Company except as expressly authorized in writing by Company.  Contractor agrees that Contractor shall use such Confidential Information only in the performance of his duties for Company and in accordance with any Company policies regarding the protection of Confidential Information.  Contractor agrees not to use such Confidential Information for his own benefit or for the benefit of any other person or business entity.

 

Contractor agrees to exercise all reasonable precautions to protect the integrity and confidentiality of Confidential Information in his possession from any unauthorized discovery by or disclosure to any third party.  Contractor further agrees not to remove any Confidential Information from Company’s premises except to the extent necessary to provide services to Company.  Upon the termination of Contractor’s relationship with Company, or at any time upon Company’s request, Contractor shall return immediately to Company any and all materials containing any Confidential Information then in his possession or control.

 

Confidential Information shall not include information that (a) is or becomes generally known within Company’s industry through no fault of Contractor; (b) was already known to the Contractor at the time it was disclosed to him as evidenced by Contractor’s written records at the time of disclosure; (c) is lawfully and in good faith made available to Contractor by a third party who did not derive it from Company, and who was not under a statutory, common law, contractual, fiduciary or other obligation or duty to refrain from disclosing the information to Contractor; or (d) is required to be disclosed by a governmental authority or by order of a court of competent jurisdiction, provided that such disclosure is subject to all applicable governmental or judicial protection available for like material and reasonable advance notice is given to Company so that Company may seek a protective order or other protection of such Confidential Information.

 

7.Intellectual Property.  Contractor agrees that any creations, designs, developments drawings, sketches or other work product related to any new products, product improvements, product modifications or similar matters created, developed, designed or made by Contractor pursuant to his engagement with Company, or that are otherwise created, developed, designed,  or made when providing Services, are made for the sole and exclusive benefit and ownership of Company and are “works made for hire” and that Company, as the one for whom the works are prepared, shall own all right, title and interest in the works and all such work product of 

 

Contractor, including without limitation, all copyright, patent, trademark and other forms of intellectual property rights.  Contractor agrees that to the extent that the works are not deemed works made for the sole and exclusive benefit of Company or “works made for hire”, Company shall own all right, title and interest to copyrightable works or any other intellectual property created, developed, made or altered by Contractor during, or related to, Contractor’s engagement and does hereby agree to assign and does hereby assign to Company, its successors, assigns, or nominees, all right, title and interest to said intellectual property or any other new developments relating to any subject matter with which Contractor’s work for Company is, or may be, concerned with, whether or not copyrightable or patentable, which Contractor has made, conceived, created, designed or developed, or hereafter shall make or conceive, design, develop or create, during Contractor’s engagement or association with Company, whether or not such intellectual property is made or conceived in conjunction with others, and whether or not made or conceived in the course of Contractor’s engagement or association with Company or with the use of Company’s time, materials, or facilities. Contractor further agrees that Contractor will, without charge to Company, execute, acknowledge, assign, and deliver such copyrights, assignments, and any such further material as may be necessary to obtain copyright or patent in any country, and vest title thereto in Company, its successors, assigns, or nominees. 

 

Contractor represents and warrants that the works or other intellectual property he creates, develops or makes while performing the Services will be original, will not infringe upon the rights of any third party, and will not have been previously assigned, licensed or otherwise encumbered.  To the extent that Contractor utilizes third party agents, Contractor will secure the necessary agreements to assign all intellectual property ownership to Company, but will not use any such third party agents without the Company’s prior written consent.

 

Contractor further acknowledges that the creations, developments, designs, and works created, conceived or made during his prior employment with Company were for the sole and exclusive benefit and ownership of the Company and were works made for hire and all right, title and interest in such works are owned by Company, including all copyright, patent, trademark and other intellectual property rights.

 

8.Specific Performance.  With respect to the covenants and agreements of Contractor set forth in Sections 5, 6 and 7 hereof, the parties agree that a violation of such covenants and agreements will cause irreparable injury to Company for which Company will not have an adequate remedy at law, and that Company shall be entitled, in addition to any other rights and remedies it may have, at law or in equity, to obtain an injunction to restrain Contractor from violating, or continuing to violate, such covenants and agreements.  In the event Company does apply for such an injunction, Contractor shall not raise as a defense thereto that Company has an adequate remedy at law.

 

9.Termination.  This Agreement may not be terminated by the Company so long as Contractor is performing the Services to the reasonable satisfaction of the Company and Contractor has not violated or and is not threatening to violate any of the restrictive covenants set forth in this Agreement; provided, however, that in any event, a majority of the members of the Company’s Board of Directors must approve any such for-cause termination of this Agreement 

 

by the Company.  Contractor shall have the right to terminate this Agreement without cause or reason at any time with sixty days prior written notice to the Company.      

 

 

10.Miscellaneous.

 

(a)This Agreement sets forth the full and entire understanding and agreement of the parties hereto regarding the subject matters described herein, and on the schedule hereto, and there are no other oral or written agreements or understandings regarding such matters in effect, as this Agreement supersedes all prior agreements, contracts, negotiations and understandings, whether written or oral, related to those subject matters. This Agreement shall not be changed, modified or amended except by a writing signed by all parties hereto.  No waiver of any provision of this Agreement shall be valid unless in writing and signed by the party against whom it is sought to be enforced.  The failure of any party at any time to insist upon strict performance of any condition, promise, agreement or understanding set forth in this Agreement shall not be construed as a waiver or relinquishment of the right to insist upon strict performance of the same condition, promise, agreement or understanding at a future time.  

 

(b)This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective heirs, executors, legal representatives, successors and permitted assigns.  This Agreement may not be assigned by Contractor to any other party; nor may Contractor subcontract or assign the performance of the Services hereunder to any other party.   

(c)If any provision of this Agreement or the application of any provision hereof to any person or circumstance is held invalid, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected unless the invalid provision substantially impairs the benefits of the remaining portions of this Agreement.

 

(d)The parties agree that the exclusive jurisdiction and venue of any lawsuit between them arising under this Agreement or the transactions contemplated herein shall be the state courts sitting in Sarasota County, Florida and each of the parties hereby irrevocably agrees and submits itself to the exclusive jurisdiction and venue of such courts for the purposes of such lawsuit.  The laws of Florida shall govern this Agreement.

(e)The headings of the sections hereof are inserted for convenience only and in no way define, limit or prescribe the intent of this Agreement.

(f)This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

(g)The parties agree that this Agreement has been prepared as a result of their mutual arms-length negotiation and the Agreement shall, not, in any respect, be interpreted against either party as the purported drafter thereof.  

 

(h)In the event it should become necessary for any party to retain the services of an attorney to enforce any provision of the Agreement, the non-prevailing party agrees to pay to the prevailing party the costs of any legal proceedings and reasonable attorney and paralegal 

 

fees, including any attorney and paralegal fees and costs incurred as a result of an appellate proceeding.

 

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

		
	
 
	
COMPANY:

 

PGT Innovations , Inc., 

 

 

By:

Debbie LaPinska

Sr. Vice President, Human Resources

 

	
 
	
CONTRACTOR:

 

 

 

Rod Hershberger

 

 

 

    SCHEDULE 1

SERVICES TO BE PERFORMED

 

Attending industry and trade association events and meetings on behalf of the Company.

 

Representing the Company at local business, civic and governmental events and meetings.

 

Attending customer conferences, events and meetings on behalf of the Company as requested.

 

Attending Company employee events.

 

Assisting the CEO in identifying, assessing, evaluating and conducting due diligence regarding potential mergers and acquisitions as requested.

 

Providing other advice to the CEO on an as-requested basis.Exhibit

Exhibit 10.8.1

OMNIBUS AMENDMENT AND CONSENT 
This omnibus amendment and consent (this “Agreement”) is entered into as of November 29, 2018 (the “Effective Date”), by and among TELLURIAN PRODUCTION HOLDINGS LLC, a Delaware limited liability company (“Borrower”), the Lenders (defined below) party hereto, GOLDMAN SACHS LENDING PARTNERS LLC, as the administrative agent (in such capacity, including any successors or assigns in such capacity, “Administrative Agent”), J. ARON & COMPANY LLC, as the collateral agent (in such capacity, including any successors or assigns in such capacity, “Collateral Agent”), and, for the purpose of Section 3 below only, J. ARON & COMPANY LLC, as the initial swap counterparty under the Intercreditor Agreement (the “Initial Swap Counterparty”). 
WITNESSETH:
WHEREAS, Borrower, Administrative Agent, Collateral Agent and the financial institutions party thereto as lenders (the “Lenders”, and together with Administrative Agent and Collateral Agent, the “Lender Parties”), have entered into that certain Credit Agreement dated as of September 28, 2018 (as amended, restated, supplemented or otherwise modified (including by this Agreement), the “Credit Agreement”); 
WHEREAS, Borrower has requested that the Lender Parties amend the Credit Agreement and grant a consent under the Credit Agreement with respect to the Specified Expenditures (defined below), in each case, as herein provided; 
WHEREAS, the Administrative Agent, the Collateral Agent and the Initial Swap Counterparty have agreed to amend the Intercreditor Agreement as herein provided; and
WHEREAS, subject to the terms and conditions hereinafter set forth, the Lender Parties and the Initial Swap Counterparty, as applicable, have agreed to amend the Credit Agreement and the Intercreditor Agreement as herein provided and grant a consent under the Credit Agreement as set forth herein with respect to the Specified Expenditures.
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements and to the conditions precedent set forth herein, the parties to this Agreement hereby agree as follows:
SECTION 1.Terms Defined in the Credit Agreement
As used in this Agreement, except as may otherwise be provided herein, all capitalized terms defined in the Credit Agreement shall have the same meaning herein as therein, all of such terms and their definitions being incorporated herein by reference.  
SECTION 2.Amendments to Credit Agreement.
(a)The definition of “Projected Production” in Section 1.1 of the Credit Agreement is hereby amended and restated as follows:
“Projected Production” as of any time means the projected production of Proved Developed Producing Oil and Gas Properties (measured by volume unit or BTU equivalent, not sales price), for the term of the contracts or a particular month, as applicable, as such production has been projected in the Reserve Report most recently delivered to the Lenders, as updated by any Return Certificate (or as otherwise approved by the Administrative Agent in its sole discretion), provided that “Projected Production” shall include pro forma proved developed producing reserves for any well a Credit Party is seeking to drill and that is the subject of a Return Certificate.”
(b)The first sentence of Section 2.2(b)(v) of the Credit Agreement is hereby amended and restated as follows:
“(v)    The Collateral Agent shall owe to Borrower for each calendar month interest on the Margin Balance at the Federal Funds Rate, and the Collateral Agent shall deliver such interest payments to the Borrower by wire transfers to a Controlled Account designated by the Borrower within five (5) Business Days after the end 

of such calendar month; provided, that all interest owing by the Collateral Agent to Borrower for the period starting September 28, 2018 through October 31, 2018 shall be delivered to the Borrower within five (5) Business Days after November 30, 2018.”
(c)Section 7.1(b) of the Credit Agreement is hereby amended and restated as follows:
“Monthly Reports.  (i) As soon as available and in any event within forty-five (45) days after the end of each calendar month, a report summarizing, as requested by Administrative Agent or any Lender, (A) the gross volume of sales and actual production during such month from all of the Oil and Gas Properties of the Credit Parties and current prices being received for such production, (B) detailed determinations of costs and such other information as may be reasonably requested by Administrative Agent or any Lender, and (C) lease operating expenses (separated by category of expense) and Permitted Expenditures paid or incurred during such month; and (ii) on or before the last day of each month (beginning with the month ending December 31, 2018), the Projections for the immediately following month.
(d)Section 7.15(a) of the Credit Agreement is hereby amended and restated as follows:
“Minimum Hedging.  Within five (5) Business Days after (i) prior to the APOD Completion Date, the approval of a Return Certificate for the drilling of a well that will be operated by a Credit Party pursuant to the APOD, (ii) prior to the APOD Completion Date, notice from the operator of a well that is not operated by a Credit Party that sales of Hydrocarbons from such well have commenced and (iii) from and after the APOD Completion Date, the delivery of each Reserve Report hereunder (each such date, the “Hedging Transaction Date”), the Credit Parties shall enter into and thereafter maintain their position in one or more Acceptable Commodity Hedging Transactions consisting of fixed price swaps or collars and covering aggregate notional volumes of not less than 75% of Projected Production for each month following the Hedging Transaction Date through the later of (x) the date twenty-seven (27) months after the date such well commences production and (y) the Maturity Date. Any swaps or collars utilized to comply with this Section 7.15 must have a fixed price paid to the Credit Parties (for swaps) or floor price paid to the Credit Parties (for collars) that would satisfy the internal rate of return set forth in the Return Certificate or that is otherwise acceptable to the Administrative Agent in its sole discretion.  Within five (5) Business Days after each Hedging Transaction Date, the Credit Parties shall enter into and thereafter maintain their position in one or more Acceptable Commodity Hedging Transactions consisting of basis differential hedges covering aggregate notional volumes of not less than 75% of Projected Production for each month following the Hedging Transaction Date on a rolling 12-month basis through the later of (x) the date twenty-seven (27) months after the date such well commences production and (y) the Maturity Date.”
SECTION 3.Amendments to Intercreditor Agreement.
(a)Clause (ii) of Section 4.02(a) of the Intercreditor Agreement is hereby amended and restated as follows:
“(ii) during the existence of a Triggering Event, all such amounts received by any Creditor or the Collateral Agent (other than (x) amounts received by any Creditor as a result of the exercise of netting or set-off rights permitted pursuant to the provisos set forth in Section 2.02, which shall be for the sole benefit of such Creditor, (y) amounts received by J. Aron in respect of any collateral pledged or posted to J. Aron under the J. Aron ISDA in accordance with the terms thereof, which shall be for the sole benefit of J. Aron or (z) the Margin Balance, which shall be for the sole benefit of the Lenders) shall be treated as if constituting Proceeds, shall be turned over to the Collateral Agent, and shall be applied by the Collateral Agent in accordance with Section 4.02(c) below.”
(b)The language before the colon in Section 4.02(c) of the Intercreditor Agreement is hereby amended and restated as follows:
“(c) All Collateral or Proceeds received by the Collateral Agent or any Creditor during the existence of a Triggering Event or otherwise in connection with any Enforcement Action (other than (x) amounts received by any Creditor as a result of the exercise of netting or set-off rights permitted pursuant to the provisos set forth in Section 2.02, which shall be for the sole benefit of such Creditor, (y) amounts received by J. Aron in 

respect of any collateral pledged or posted to J. Aron under the J. Aron ISDA in accordance with the terms thereof, which shall be for the sole benefit of J. Aron or (z) the Margin Balance, which shall be for the sole benefit of the Lenders) shall be applied in the following order”.
SECTION 4.Consent
(a)Borrower has advised the Lender Parties that it desires to make the payments described on Schedule I hereto (the “Specified Expenditures”), which payments, if made in the absence of this Agreement, would violate Sections 2.2(a), 8.2 and 8.25 of the Credit Agreement. 
(b)Subject to the satisfaction or waiver in writing of the conditions precedent set forth in Section 5 hereof, and in accordance with Section 12.12 of Credit Agreement, the Lender Parties hereby consent to the Borrower making the Specified Expenditures (the “Consent”). Other than the Consent, nothing in this Agreement shall be deemed to be (i) a consent to the deviation by any Credit Party from strict compliance with the terms and conditions of the Loan Documents, (ii) a waiver of any Default or Event of Default, or (iii) a waiver of (or an agreement to forbear from exercising) any rights or remedies that the Lender Parties have pursuant to the Credit Agreement and applicable law by reason of any Default or Event of Default.
SECTION 5.Conditions of Effectiveness
This Agreement shall become effective on the Effective Date upon fulfillment of the following conditions precedent:
(a)Borrower shall have delivered to Administrative Agent a duly executed counterpart of this Agreement; and
(b)Parent Guarantor and each Subsidiary Guarantor shall have delivered to Administrative Agent a duly executed counterpart of the Ratification Agreement substantially in the form attached hereto as Exhibit A (the “Ratification Agreement”).  
SECTION 6.Representations and Warranties
Borrower represents and warrants to the Lender Parties, with full knowledge that the Lender Parties are relying on the following representations and warranties in executing this Agreement, as follows:
(a)The execution, delivery and performance of this Agreement and the Ratification Agreement by Borrower and each Guarantor party thereto and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all necessary company action on the part of Borrower and such Guarantor.
(b)This Agreement, the Ratification Agreement, the Credit Agreement, the Loan Documents and each and every other document executed and delivered in connection herewith constitute legal, valid, and binding obligations of Borrower and each Guarantor party thereto, enforceable against such Person in accordance with their respective terms, except as may be limited by equitable principles or Debtor Relief Laws.
(c)The execution, delivery, and performance by Borrower of this Agreement and each Guarantor of the Ratification Agreement, and the consummation of the transactions contemplated hereby and thereby do not and will not (i) violate or conflict with, or result in a breach of, or require any consent under, or other action to, with or by (A) the Constituent Documents of such Person, (B) any applicable Law, rule, or regulation or any order, writ, injunction, or decree of any Governmental Authority or arbitrator where such violation or conflict would reasonably be expected to result in a Material Adverse Event, or (C) any other agreement or instrument to which such Person is a party or by which it or any of its Properties is bound or subject which could reasonably be expected to result in a Material Adverse Event, or (ii) constitute a default under any such agreement or instrument which could reasonably be expected to result in a Material Adverse Event, or result in the creation or imposition of any Lien upon any of the revenues or assets of such Person.
(d)The execution, delivery and performance by Borrower of this Agreement and each Guarantor of the Ratification Agreement, and the consummation of the transactions contemplated hereby and thereby do not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by, any Governmental Authority.

(e)As of the date of this Agreement, the Credit Parties, taken as a whole, are Solvent and have not entered into any transaction with the intent to hinder, delay or defraud a creditor.
(f)(i) No Default has occurred and is continuing, and (ii) all of the representations and warranties contained in Article 6 of the Credit Agreement and in the other Loan Documents are true and correct in all material respects (other than any representations or warranties subject to a Material Adverse Event qualification or any other qualification as to materiality, which are true and correct in all respects) on and as of the Effective Date, in each case with the same force and effect as if such representations and warranties had been made on and as of such date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they were true and correct in all material respects (other than any representations or warranties subject to a Material Adverse Event qualification or any other qualification as to materiality, which were true and correct in all respects) as of such earlier date.
SECTION 7.Reference to and Effect on the Loan Documents
Upon the effectiveness hereof, on and after the date hereof, (i) each reference in the Credit Agreement or the Intercreditor Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import and (ii) each reference in any other Loan Document to “the Credit Agreement” or “the Intercreditor Agreement”, shall, in each case, mean and be a reference to the Credit Agreement or the Intercreditor Agreement, as applicable, after giving effect to this Agreement.
SECTION 8.Cost and Expenses
Borrower agrees to pay all reasonable and documented out-of-pocket costs and expenses of the Lender Parties and their Related Parties connection with this Agreement, including, without limitation, the reasonable and documented out-of-pocket fees and expenses of legal counsel for the Lender Parties and their Related Parties in connection herewith.
SECTION 9.Extent of Consent
Except as otherwise expressly provided herein, none of the Credit Agreement, the Intercreditor Agreement or any of the other Loan Documents are amended, modified or affected by this Agreement.  Borrower hereby ratifies and confirms that: (a) all of the terms, conditions, covenants, representations, warranties and all other provisions of the Credit Agreement remain in full force and effect; (b) each of the other Loan Documents are and remain in full force and effect in accordance with their respective terms; (c) the Collateral is unimpaired by this Agreement; and (d) any and all Liens, security interests and other security or Collateral now or hereafter held by the Lender Parties as security for payment and performance of the Secured Obligations are hereby renewed and carried forth to secure payment and performance of all of the Secured Obligations.
SECTION 10.Waiver and Release
In consideration of the Consent provided herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower hereby waives, releases, and forever discharges each Lender Party, its predecessors and its successors, assigns, affiliates, shareholders, directors, officers, accountants, attorneys, employees, agents, representatives, and servants (collectively, the “Released Parties”) of, from and against any and all claims, actions, causes of action, suits, proceedings, contracts, judgments, damages, accounts, reckonings, executions, and liabilities whatsoever of every name and nature, whether known or unknown, whether or not well founded in fact or in law, and whether in law, at equity, or otherwise, which such Person ever had or now has for or by reason of any matter, cause, or anything whatsoever to this date relating to or arising out of the Loans, this Agreement, or any of the Loan Documents, including without limitation any actual or alleged act or omission of any of the Released Parties with respect to the Loans or any of the Loan Documents, or any Liens or Collateral in connection therewith, or the enforcement of any of the Lender Parties’ rights or remedies thereunder.  The terms of this waiver and release shall survive the termination of this Agreement, the Loans, the Credit Agreement and the Loan Documents and shall remain in full force and effect after the termination of this Agreement.

SECTION 11.Claims
As additional consideration of the execution, delivery, and performance of this Agreement by the parties hereto and to induce the Lender Parties to enter into this Agreement, Borrower represents and warrants that it does not know of any defenses, counterclaims or rights of setoff to the payment of any Secured Obligations to any Secured Party.
SECTION 12.Counterparts
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
SECTION 13.Severability
Any provision of this Agreement held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Agreement and the effect thereof shall be confined to the provision held to be invalid or illegal. Furthermore, in lieu of such invalid or unenforceable provision there shall be added as a part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.
SECTION 1.GOVERNING LAW; VENUE; SERVICE OF PROCESS; WAIVER OF JURY TRIAL
The provisions of Section 12.13 of the Credit Agreement are hereby incorporated herein mutatis mutandis.  
SECTION 14.Headings
The headings, captions, and arrangements used in this Agreement are for convenience only and shall not affect the interpretation of this Agreement.
SECTION 15.NOTICE OF FINAL AGREEMENT
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO.

[Remainder of Page Left Blank; Signature Pages to Follow]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized.

BORROWER:

TELLURIAN PRODUCTION HOLDINGS LLC, a Delaware limited liability company
By:    /s/ Graham McArthur
Name: Graham McArthur
Title: Treasurer

Signature Page Omnibus Amendment and Consent 

ADMINISTRATIVE AGENT:

GOLDMAN SACHS LENDING PARTNERS LLC, as Administrative Agent
By:    /s/ Simon Collier
Name: Simon Collier
Title: Authorized Signatory

COLLATERAL AGENT:

J. ARON & COMPANY LLC, as Collateral Agent
By:    /s/ Simon Collier
Name: Simon Collier
Title: Attorney-In-Fact

LENDERS:

J. ARON & COMPANY LLC, as a Lender
By:    /s/ Simon Collier
Name: Simon Collier
Title: Attorney-In-Fact

For purposes of Section 3 only, INITIAL SWAP COUNTERPARTY:

J. ARON & COMPANY LLC, as Initial Swap Counterparty under the Intercreditor Agreement
By:    /s/ Simon Collier
Name: Simon Collier
Title: Attorney-In-Fact

Signature Page Omnibus Amendment and Consent 

EXHIBIT A
FORM OF RATIFICATION AGREEMENT
November 29, 2018
Reference is made to that certain (i) Credit Agreement dated as of September 28, 2018 (as amended, restated, supplemented or otherwise modified (including by the Amendment referred to below), the “Credit Agreement”), by and among TELLURIAN PRODUCTION HOLDINGS LLC, a Delaware limited liability company (“Borrower”), the lenders party thereto, GOLDMAN SACHS LENDING PARTNERS LLC, as the administrative agent (in such capacity, including any successors or assigns in such capacity, “Administrative Agent”), and J. ARON & COMPANY LLC, as the collateral agent (in such capacity, including any successors or assigns in such capacity, “Collateral Agent”), (ii) the Intercreditor Agreement dated as of September 28, 2018 (as amended, restated, supplemented or otherwise modified (including by the Amendment referred to below), by an among Borrower and the other Credit Parties party thereto, Administrative Agent, Collateral Agent and J. Aron & Company LLC, as initial swap counterparty (“Initial Swap Counterparty”), and (iii) the Omnibus Amendment and Consent dated as of the date hereof (the “Amendment”), among Borrower, Administrative Agent, Collateral Agent, the lenders party thereto and Initial Swap Counterparty.  Capitalized terms used herein have the meanings given to such terms in the Credit Agreement. 
Each of the undersigned Guarantors hereby (a) acknowledges the terms of the Amendment; and (b) ratifies, confirms and agrees that, following the effectiveness of the Amendment on the Effective Date referred to therein, (i) the Loan Documents to which such Guarantor is a party shall remain in full force and effect on such date, including without limitation the Guaranty Agreement and the Security Documents to which such Guarantor is a party and (ii) the applicable Security Documents shall continue to secure the Secured Obligations, in the manner and to the extent provided therein, without defense, set off, counterclaim, discount or charge of any kind as of the date hereof.  Without limiting the foregoing, each Guarantor that is a Subsidiary of Borrower hereby agrees to the amendments to the Intercreditor Agreement set forth in Section 3 of the Amendment in accordance with Section 5.10 of the Intercreditor Agreement.
This Ratification Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
THIS RATIFICATION AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER (INCLUDING, WITHOUT LIMITATION, ANY CLAIMS SOUNDING IN CONTRACT LAW OR TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND ANY DETERMINATIONS WITH RESPECT TO POST-JUDGMENT INTEREST) SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.
[Signature Pages Follow]

Exhibit A to Omnibus Amendment and Consent

IN WITNESS WHEREOF, the parties hereto have caused this Ratification Agreement to be duly executed on the date first above written.
TELLURIAN INC.
By:    
Name:
Title:

TELLURIAN PRODUCTION LLC
By:    
Name:
Title:

TELLURIAN OPERATING LLC
By:    
Name:
Title:

Exhibit A to Omnibus Amendment and Consent

SCHEDULE I
Specified Expenditures
The following categories of expenses relating to the SCOTT, formerly known as NIXON, 25X36 14 10 HC 1-ALT well, which is set forth on the APOD, in an aggregate amount not to exceed $100,000: (a) Land Services & Expenses, (b) Legal Fees & Expenses, and (c) Permits, Surveys & Regulatory Expenses. 

Schedule I to Omnibus Amendment and Consent

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