Document:

Exhibit 4.1

 

FLINT HILLS RESOURCES HOUSTON CHEMICAL, LLC

 

and

 

FHR HOUSTON CHEMICAL FINANCE CORP.

 

 

6.25% Senior Notes due 2020

 

 

FIRST SUPPLEMENTAL INDENTURE

 

Dated as of July 16, 2014

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

 

as Trustee

 

 

 

This FIRST SUPPLEMENTAL INDENTURE, dated as of July 16, 2014, is among Flint Hills Resources Houston Chemical, LLC (formerly known as PL Propylene LLC), a Delaware limited liability company (“FHRHC” and, prior to the GP Merger (as defined below), “PL Propylene”), FHR Houston Chemical Finance Corp. (formerly known as PetroLogistics Finance Corp.), a Delaware corporation (“Finance Corp.”), and Wells Fargo Bank, National Association, a national banking association, as Trustee.

 

RECITALS

 

WHEREAS, PetroLogistics LP, a Delaware limited partnership and predecessor to FHRHC (“PetroLogistics”), and Finance Corp. (then known as PetroLogistics Finance Corp.), as Issuers, FHRHC (then known as PL Propylene LLC), as Guarantor, and the Trustee entered into an Indenture, dated as of March 28, 2013 (the “Indenture”), pursuant to which PetroLogistics and Finance Corp. issued $365,000,000 in principal amount of their 6.25% Senior Notes due 2020 (the “Notes”);

 

WHEREAS, pursuant to an internal restructuring, the following transactions were consummated sequentially:  (a) the merger (the “MLP Merger”) of PetroLogistics with and into PL Propylene, pursuant to the Merger Agreement, dated as of July 16, 2014, by and between PetroLogistics and PL Propylene, and (b) the merger (the “GP Merger”) of PetroLogistics GP LLC, a Delaware general partnership and the general partner of PetroLogistics (“General Partner”), with and into PL Propylene pursuant to the Merger Agreement, dated as of July 16, 2014, by and between General Partner and PL Propylene;

 

WHEREAS, in connection with the MLP Merger and GP Merger, PL Propylene changed its name from “PL Propylene LLC” to “Flint Hills Resources Houston Chemical, LLC”;

 

WHEREAS, in connection with the MLP Merger and GP Merger, Finance Corp. changed its name from “PetroLogistics Finance Corp.” to “FHR Houston Chemical Finance Corp.”;

 

WHEREAS, in connection with the MLP Merger and GP Merger and pursuant to Section 5.01(b) of the Indenture, FHRHC is required to execute and deliver a supplemental indenture to the Trustee to assume the obligations of PetroLogistics under the Notes and the Indenture;

 

WHEREAS, FHRHC and Finance Corp. desire to execute this First Supplemental Indenture implementing the amendments to the Indenture contemplated hereby and have requested the Trustee to execute this First Supplemental Indenture pursuant to Section 9.01 of the Indenture;

 

WHEREAS, pursuant to Section 9.01 of the Indenture, FHRHC, Finance Corp. and the Trustee are permitted to execute and deliver this First Supplemental Indenture without the consent of the Holders;

 

WHEREAS, it is provided in the Indenture that a supplemental indenture becomes effective in accordance with its terms and thereafter binds every Holder; and

 

WHEREAS, all acts and things prescribed by the Indenture, by law and by the Certificate of Incorporation and the Bylaws (or comparable constituent documents) of FHRHC and Finance

 

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Corp. and of the Trustee necessary to make this First Supplemental Indenture a valid instrument legally binding on FHRHC, Finance Corp. and the Trustee, in accordance with its terms, have been duly done and performed;

 

NOW, THEREFORE, to comply with the provisions of the Indenture and in consideration of the above premises, FHRHC, Finance Corp. and the Trustee covenant and agree for the equal and proportionate benefit of the respective Holders of the Notes as follows:

 

ARTICLE 1

 

Section 1.01                             Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 

ARTICLE 2

 

Section 2.01                             This First Supplemental Indenture is supplemental to the Indenture and does and shall be deemed to form a part of, and shall be construed in connection with and as part of, the Indenture for any and all purposes.

 

Section 2.02                             This First Supplemental Indenture shall become effective immediately upon its execution and delivery by FHRHC, Finance Corp. and the Trustee.

 

ARTICLE 3

 

Section 3.01                             Pursuant to Section 5.01(b) of the Indenture, FHRHC hereby assumes all of the obligations of PetroLogistics and the General Partner under the Indenture and the Notes and FHRHC shall, for all purposes under the Indenture and the Notes, be substituted for PetroLogistics in its capacity as an Issuer, and the General Partner, as General Partner (excluding Section 11.07 of the Indenture and Section 14 of the Notes), with the same effect as if it had been named in the Indenture as the Issuer or the General Partner, as applicable.  PetroLogistics shall be relieved of any obligations under the Indenture and the Notes as an original Issuer of the Notes, General Partner shall be relieved of any obligations under the Indenture as General Partner, and FHRHC shall be relieved of any obligations under the Indenture and the Notes as a Guarantor.

 

Section 3.02                             References in the Indenture and the Notes to the Company or General Partner (excluding references to the General Partner in Section 11.07 of the Indenture and Section 14 of the Notes) shall be to FHRHC, and references in the Indenture and the Notes to the Issuers shall be to FHRHC and Finance Corp.

 

Section 3.03                             Reference in the Indenture and the Notes to Finance Corp. shall be to FHR Houston Chemical Finance Corp.

 

ARTICLE 4

 

Section 4.01                             Except as specifically modified herein, the Indenture and the Notes are in all respects ratified and confirmed (mutatis mutandis) and shall remain in full force and effect in accordance with their terms.

 

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Section 4.02                             No past, present or future director, officer, employee, incorporator, member, stockholder or agent of FHRHC or Finance Corp. shall have any liability for any obligations of the FHRHC or Finance Corp. under this First Supplemental Indenture, or for any claim based on, in respect of, or by reason of, such obligations or their creation.

 

Section 4.03                             All agreements of FHRHC and Finance Corp. in this First Supplemental Indenture, the Indenture, the Notes and any Subsidiary Guarantee shall bind their respective successors.  All agreements of the Trustee in this First Supplemental Indenture and in the Indenture shall bind its successor.

 

Section 4.04                             Except as otherwise expressly provided herein, no duties, responsibilities or liabilities are assumed, or shall be construed to be assumed, by the Trustee by reason of this First Supplemental Indenture.  This First Supplemental Indenture is executed and accepted by the Trustee subject to all the terms and conditions set forth in the Indenture with the same force and effect as if those terms and conditions were repeated at length herein and made applicable to the Trustee with respect hereto.

 

Section 4.05                             THIS FIRST SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

Section 4.06                             In case one or more of the provisions in this First Supplemental Indenture, in the Indenture, in the Notes or in any Subsidiary Guarantee shall be held invalid, illegal or unenforceable, in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions shall not in any way be affected or impaired thereby, it being intended that all of the provisions hereof shall be enforceable to the full extent permitted by law.

 

Section 4.07                             The headings herein are inserted for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this First Supplemental Indenture.

 

Section 4.08                             The parties may sign any number of copies of this First Supplemental Indenture. Each signed copy shall be an original, but all of such executed copies together shall represent the same agreement.

 

[NEXT PAGE IS SIGNATURE PAGE]

 

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IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed, all as of the date first written above.

 

 

	
 
    	
ISSUERS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FLINT HILLS RESOURCES HOUSTON CHEMICAL, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Raffaele G. Fazio
    
	
 
    	
Name:
    	
Raffaele G. Fazio
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FHR HOUSTON CHEMICAL FINANCE CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
/s/ Raffaele G. Fazio
    
	
 
    	
Name:
    	
Raffaele G. Fazio
    
	
 
    	
Title:
    	
President
    

 

SIGNATURE PAGE TO FIRST SUPPLEMENTAL INDENTURE

 

 

	
 
    	
TRUSTEE:
    
	
 
    	
 
    
	
 
    	
WELLS FARGO BANK, NATIONAL ASSOCIATION, AS   TRUSTEE
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Patrick Giordano
    
	
 
    	
 
    	
Name: Patrick Giordano
    
	
 
    	
 
    	
Title: Vice President
    

 

SIGNATURE PAGE TO FIRST SUPPLEMENTAL INDENTURE2014.06.30 Exhibit 10.3

BAKER HUGHES INCORPORATED
PERFORMANCE UNIT AWARD AGREEMENT

AWARD OF PERFORMANCE UNITS
PAYABLE IN CASH
The Compensation Committee (the “Committee”) of the Board of Directors of Baker Hughes Incorporated, a Delaware corporation (the “Company”), pursuant to the Baker Hughes Incorporated 2002 Director & Officer Long-Term Incentive Plan (the “Plan”), hereby awards to you, the above named Participant, effective as of the Grant Date set forth above (the “Grant Date”), that number of Performance Units set forth above (each, a “Performance Unit”, and collectively, the “Performance Units”), on the terms and conditions set forth in this Performance Unit Award Agreement (this “Agreement”).
Each Performance Unit provides you an opportunity to earn a cash payment based upon the achievement of certain performance goals established by the Committee (the “Performance Goals”) for the three-year period beginning January 1 of the year of the Grant Date and ending December 31 of the year containing the third anniversary of the Grant Date  (the “Performance Period”). The Performance Goals and the formulas for determining the amounts payable under this Agreement established by the Compensation Committee are available for your review on the Baker Hughes Direct website at www.bakerhughesdirect.com.  The Committee may not increase the amount payable under this Agreement.
If the Performance Goals are not achieved at a minimum level of performance and a Change in Control of the Company has not occurred on or before the last day of the Performance Period, then the award pursuant to this Agreement will lapse and be forfeited as of the end of the Performance Period.  
The Committee’s determination of whether the Performance Goals applicable to this Agreement are achieved will be binding upon all persons.
Any amount payable to you pursuant to this Agreement will be paid to you by the Employer by March 15, after the end of the Performance Period (the “Scheduled Payment Date”), unless otherwise provided under the attached Terms and Conditions of Performance Unit Award Agreements (the “Terms and Conditions”).  Such payment will be made to you in exchange for the Performance Units and thereafter you will have no further rights with respect to such Performance Units or this Agreement.
If a Change in Control of the Company occurs or your employment with the Company and Affiliates terminates (a “Termination of Employment”) on or before the last day of the Performance Period, your rights to the Performance Units and a payment under this Agreement will be determined as provided in the Terms and Conditions.

The Performance Units that are awarded hereby to you will be subject to the prohibitions and restrictions set forth herein with respect to the sale or other disposition of such Performance Units and the obligation to forfeit and surrender such Performance Units.
The Performance Units and your rights under this Agreement may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of (other than by will or the applicable laws of descent and distribution).  Any such attempted sale, assignment, pledge, exchange, hypothecation, transfer, encumbrance or disposition in violation of this Agreement will be void and the Company Group will not be bound thereby.
Capitalized terms that are not defined herein will have the meaning ascribed to such terms in the Plan or the Terms and Conditions.
In accepting the award of Performance Units set forth in this Agreement you accept and agree to be bound by all the terms and conditions of the Plan, this Agreement and the Terms and Conditions.  The shares of Common Stock (the “shares”) that may be issued under this Plan are registered with the Securities and Exchange Commission (“SEC”) under a Registration Statement on Form S-8.  A Prospectus describing the Plan and the shares and the Terms and Conditions can be found on the Baker Hughes Direct website at www.bakerhughesdirect.com.  You may obtain a copy of the Plan Prospectus by requesting it from the Company.

BAKER HUGHES INCORPORATED

                            
Martin S. Craighead 
Chairman and Chief Executive Officer 

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BAKER HUGHES INCORPORATED
TERMS AND CONDITIONS 
OF 
PERFORMANCE UNIT AWARD AGREEMENTS

These Terms and Conditions are applicable to a performance unit granted pursuant to the Baker Hughes Incorporated 2002 Director & Officer Long-Term Incentive Plan (the “Plan”) and are incorporated as part of the Performance Unit Agreement setting forth the terms of such performance unit (the “Agreement”).
		
	1.
	CHANGE IN CONTROL/TERMINATION OF EMPLOYMENT.  The following provisions will apply in the event a Change in Control of the Company occurs, or your employment with the Company and all Affiliates (collectively, the “Company Group”) terminates (a “Termination of Employment”), before the last day of the Performance Period (as that term is defined in the Performance Unit Agreement awarded to you (the “Agreement”)).

1.1    Termination Generally.  If you incur a Termination of Employment on or before the last day of the Performance Period for any reason other than one of the reasons described in Sections 1.2 through 1.5 below, all of your rights in the Agreement, including all rights to the Performance Units granted to you, will lapse and be completely forfeited on the date your employment terminates.
1.2    Change in Control.  If a Change in Control of the Company occurs on or before the last day of the Performance Period and you do not incur a Termination of Employment before the date the Change in Control of the Company occurs, then the Company will pay to you in cash an amount determined under the following formula in lieu of any other amounts under the Agreement:
(1) multiplied by (2) multiplied by (3) divided by (4)
where (1) is $100, (2) is the number of Performance Units that were awarded to you under the Agreement, (3) is the number of days from (and including) the first day of the Performance Period to (and including) the date the Change in Control of the Company occurs, and (4) is the number of days during the Performance Period.  Any amount payable to you pursuant to this Section 1.2 will be paid by the Company to you (a) ten (10) business days after the date the Change in Control of the Company occurs if the Change in Control of the Company qualifies as a change in the ownership or effective control of the corporation, or in the ownership of a substantial portion of the assets of the corporation, within the meaning of section 409A of the Internal Revenue Code of 1986, as amended and the Department of Treasury rules and regulations issued thereunder, or (b) on the Scheduled Payment Date if the Change in Control of the Company does not so qualify.  Such payment will be made to you in exchange for the Performance Units and thereafter you will have no further rights with respect to such Performance Units or the Agreement and the Company 

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Group will have no further obligations to you pursuant to the Performance Units or the Agreement.
1.3    Disability.  Notwithstanding any other provision of the Agreement or these Terms and Conditions to the contrary, if you become permanently disabled before the last day of the Performance Period and while in the active employ of one or more members of the Company Group, then the number of Performance Units issued to you under the Agreement will automatically be reduced (without action by you and/or the Company) on the date of your Termination of Employment to that number of Performance Units determined under the following formula (the “Disability Adjusted Performance Units”):  
(1) multiplied by (2) divided by (3)
where (1) is the number of Performance Units that were awarded to you under the Agreement, (2) is the number of days from (and including) the first day of the Performance Period to (and including) the day you become permanently disabled, and (3) is the number of days during the Performance Period.  The excess of the Performance Units that were originally awarded to you under the Agreement over the Disability Adjusted Performance Units will be immediately forfeited on the date of your Termination of Employment due to your becoming permanently disabled.  Any amount payable to you pursuant to this Section 1.3 will be paid on the Scheduled Payment Date.
For purposes of this Section 1.3, you will be “permanently disabled” if you (a) are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (b) are, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company Group.
1.4    Death.  Notwithstanding any other provision of the Agreement or these Terms and Conditions to the contrary, if you die before the last day of the Performance Period and while in the active employ of one or more members of the Company Group, then the number of Performance Units issued to you under the Agreement will automatically be reduced (without action by you and/or the Company) on the date of your Termination of Employment to that number of Performance Units determined under the following formula (the “Deceased Adjusted Performance Units”):  
(1) multiplied by (2) divided by (3)
where (1) is the number of Performance Units that were awarded to you under the Agreement, (2) is the number of days from (and including) the first day of the Performance Period to (and including) the date of your death, and (3) is the number of days during the Performance Period.   The excess of the Performance Units that were originally awarded to you under the Agreement over the Deceased Adjusted Performance Units will be immediately forfeited on the date of your Termination of Employment due to death.  Any amount payable to you pursuant to this Section 1.4 will be paid on the Scheduled Payment Date.  Such payment 

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will be made in exchange for the Performance Units and thereafter your estate and heirs, executors, administrators will have no further rights with respect to such Performance Units or the Agreement and the Company Group will have no further obligations pursuant to the Performance Units or the Agreement.
1.5    Retirement. Notwithstanding any other provision of the Agreement or these Terms and Conditions to the contrary, if you incur a Termination of Employment due to your Retirement before the last day of the Performance Period, then the number of Performance Units issued to you under the Agreement will automatically be reduced (without further action by you and/or the Company) on the date of your Termination of Employment to that number of Performance Units determined under the following formula (the “Retirement Adjusted Performance Units”):
(1) multiplied by (2) divided by (3)
where (1) is the number of Performance Units that were originally awarded to you under the Agreement, (2) is the number of days from (and including) the first day of the Performance Period to (and including)  the date of your Termination of Employment due to Retirement, and (3) is the number of days during the Performance Period.  The excess of the Performance Units that were originally awarded to you under the Agreement over the Retirement Adjusted Performance Units will be immediately forfeited on the date of your Termination of Employment with the Company Group due to Retirement.  Any amount payable to you pursuant to this Section 1.5 will be paid on the Scheduled Payment Date.  For purposes of this Section 1.5, the term “Retirement” means the your Termination of Employment on or after the date on which you are at least 55 years of age (not rounded up) and you have completed at least ten whole Years of Service with the Company Group (not rounded up).  For purposes of these Terms and Conditions, “Years of Service” means your years of service credited for vesting service purposes under either of the Baker Hughes Incorporated Thrift Plan or the Baker Hughes International Retirement Plan in which you are eligible to participate. If you are eligible to participate in neither of such retirement plans, Years of Service” means the years of service for which you would be credited for vesting purposes under the Baker Hughes Incorporated Thrift Plan if you were eligible to participate in that plan.
		
	2.
	PROHIBITED ACTIVITY.  Notwithstanding any other provision of these Terms and Conditions or the Agreement, if you engage in a “Prohibited Activity,” as described below, while employed by one or more members of the Company Group, during the Performance Period or within two years after the date of your Termination of Employment, then your right to receive payment under the Agreement, to the extent still outstanding at that time, will be completely forfeited.  A “Prohibited Activity” will be deemed to have occurred, as determined by the Committee in its sole and absolute discretion, if you (i) divulge any non-public, confidential or proprietary information of the Company Group but excluding information that (a) becomes generally available to the public other than as a result of your public use, disclosure, or fault, or (b) becomes available to you on a non-confidential basis after your employment termination date from a source other than a member of the Company Group prior to the public use or disclosure by you, provided that such source is not bound by a confidentiality agreement or otherwise prohibited from transmitting the information 

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by a contractual, legal or fiduciary obligation, or (ii) directly or indirectly, consult with or become affiliated with, conducts, participate or engage in, or becomes employed by, any business that is competitive with the business of any member of the Company Group, wherever from time to time conducted throughout the world, including situations where you solicit or participate in or assist in any way in the solicitation or recruitment, directly or indirectly, of any employees of any member of the Baker Hughes Group.
		
	3.
	TAX WITHHOLDING.  To the extent that the receipt of the Performance Units or any payment pursuant to the Agreement results in income, wages or other compensation to you for any income, employment or other tax purposes with respect to which the Company has a withholding obligation, you will deliver to the Company at the time of such receipt or payment, as the case may be, such amount of money as the Company may require to meet its obligation under applicable tax laws or regulations, and, if you fail to do so, the Company is authorized to withhold from any payment under the Agreement or from any cash or stock remuneration or other payment then or thereafter payable to you any tax required to be withheld by reason of such taxable income, wages or compensation.

		
	4.
	NONTRANSFERABILITY. The Agreement is not transferable by you otherwise than by will or by the laws of descent and distribution.

		
	5.
	CAPITAL ADJUSTMENTS AND REORGANIZATIONS.  The existence of the Performance Units will not affect in any way the right or power of the Company to make or authorize any adjustment, recapitalization, reorganization or other change in its capital structure or its business, engage in any merger or consolidation, issue any debt or equity securities, dissolve or liquidate, or sell, lease, exchange or otherwise dispose of all or any part of its assets or business, or engage in any other corporate act or proceeding.

		
	6.
	PERFORMANCE UNITS DO NOT AWARD ANY RIGHTS OF A SHAREHOLDER.  You will not have the voting rights or any of the other rights, powers or privileges of a holder of the stock of the Company with respect to the Performance Units that are awarded hereby.

		
	7.
	EMPLOYMENT RELATIONSHIP.  For purposes of the Agreement, you will be considered to be in the employment of the Company Group as long as you have an employment relationship with the Company Group.  The Committee will determine any questions as to whether and when there has been a termination of such employment relationship, and the cause of such termination, under the Plan and the Committee’s determination will be final and binding on all persons.

		
	8.
	NOT AN EMPLOYMENT AGREEMENT.  The Agreement is not an employment agreement, and no provision of the Agreement will be construed or interpreted to create an employment relationship between you and the Company or any Affiliate or guarantee the right to remain employed by the Company or any Affiliate for any specified term.

		
	9.
	LIMIT OF LIABILITY.  Under no circumstances will the Company or an Affiliate be liable for any indirect, incidental, consequential or special damages (including lost profits) of any form incurred by any person, whether or not foreseeable and regardless of the form of the act in which such a claim may be brought, with respect to the Plan.

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	10.
	EMPLOYER LIABLE FOR PAYMENT.  Except as specified in Section 1.2, the legal entity that is a member of the Company Group and that is classified by the Company Group as your employer (the “Employer”) is liable for the payment of any amounts that become due under the Agreement.

		
	11.
	DATA PRIVACY.  The Company’s Human Resources Department in Houston, Texas (U.S.A.) administers and maintains the data regarding the Plan, the awardees and the performance units granted to awardees for all employees in the Company Group worldwide.

The data administered and maintained by the Company includes information that may be considered personal data, including the name of the awardee, the award granted and the number of performance units included in any award (“Employee Personal Data”).  From time to time during the course of your employment in the Company Group, the Company may transfer certain of your Employee Personal Data to Affiliates as necessary for the purpose of implementation, administration and management of your participation in the Plan (the “Purposes”), and the Company and its Affiliates may each further transfer your Employee Personal Data to any third parties assisting the Company in the implementation, administration and management of the Plan (collectively, “Data Recipients”).  The countries to which your Employee Personal Data may be transferred may have data protection standards that are different than those in your home country and that offer a level of data protection that is less than that in your home country.
In accepting the award of the Performance Units set forth in the Agreement, you hereby expressly acknowledge that you understand that from time to time during the course of your employment in the Company Group the Company may transfer your Employee Personal Data to Data Recipients for the Purposes.  You further acknowledge that you understand that the countries to which your Employee Personal Data may be transferred may have data protection standards that are different than those in your home country and that offer a level of data protection that is less than that in your home country.
Further, in accepting the award of the Performance Units set forth in the Agreement, you hereby expressly affirm that you do not object, and you hereby expressly consent, to the transfer of your Employee Personal Data by the Company to Data Recipients for the Purposes from time to time during the course of your employment in the Company Group.
		
	12.
	RECOUPMENTS.  If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under applicable securities laws, if you are then a current or former executive officer of the Company you will forfeit and must repay to the Company any compensation awarded under the Agreement to the extent specified in any of the Company’s compensation recoupment policies established or amended (now or in the future) in compliance with the rules and standards of the Securities and Exchange Commission Committee under or in connection with Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Further, if the Company is required to prepare an accounting restatement due in whole or in part to your misconduct, you will forfeit and must repay to the Company any compensation awarded under the Agreement to the extent required by the Board of Directors of the Company in accordance with the terms of the Company’s compensation recoupment policy as in effect on January 23, 2014.

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	13.
	OTHER AGREEMENTS.  Nothing in these Terms and Conditions is intended to reduce the Company’s protections or your obligations under (1) any other agreement between you and the Company or any other member of the Company Group, (2) the common law, or (3) any applicable state,  federal or foreign statute. 

		
	14.
	GOVERNING LAW AND VENUE.  The Plan, these Terms and Conditions and the award of the performance units set forth in the Agreement shall be governed by the laws of the State of Texas, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Plan, these Terms and Conditions and the award of the performance units to the substantive law of another jurisdiction. In accepting the award of the performance units you are deemed to agree to submit to the exclusive jurisdiction and venue of the federal or state courts of Harris County, Texas, to resolve any and all issues that may arise out of or relate to the Plan, these Terms and Conditions and the award of the performance units.    

		
	15.
	SEVERABILITY AND BLUE PENCILING.  If any single Section or clause of these Terms and Conditions should be found unenforceable, it shall be severed and the remaining Sections and clauses of these Terms and Conditions shall be enforced in accordance with the intent of these Terms and Conditions.  If any particular provision of these Terms and Conditions shall be adjudicated to be invalid or unenforceable, the Company and you specifically authorize the court making such determination to edit the invalid or unenforceable provision to allow these Terms and Conditions, and the provisions thereof, to be valid and enforceable to the fullest extent allowed by law or public policy.

		
	16.
	MISCELLANEOUS.  The Agreement is awarded pursuant to and is subject to all of the provisions of the Plan, including amendments to the Plan, if any.  In the event of a conflict between these Terms and Conditions and the Plan provisions, the Plan provisions will control.  The terms “you” and “your” refer to the Participant named in the Agreement.  Capitalized terms that are not defined herein will have the meanings ascribed to such terms in the Plan or the Agreement.  The Company’s rights under these Terms and Conditions and the Agreement may be assigned by the Company.

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