Document:

exh10-3.htm

EXHIBIT 10.3

 

 

FORM OF

INDEMNIFICATION AGREEMENT

 

This INDEMNIFICATION AGREEMENT (this “Agreement”) is dated as of [___________], 2012 (the “Effective Date”), by and among Talos Production LLC, a Delaware limited liability company (“Buyer”), Energy Resource Technology GOM LLC, a Delaware limited liability company (formerly known as Energy Resource Technology GOM, Inc., a Delaware corporation) (the “Company”), CKB Petroleum LLC, a Delaware limited liability company (formerly known as CKB Petroleum, Inc., a Texas corporation) (“CKB” and, together with Buyer and the Company, the “Obligees”) and Helix Energy Solutions Group, Inc., a Minnesota corporation (the “Obligor”). Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Purchase Agreement (as hereinafter defined).

 

WHEREAS, Buyer entered into an Equity Purchase Agreement, dated as of [_____________], 2012 (as the same may have been amended from time to time, the “Purchase Agreement”), pursuant to which Obligor agreed to sell to Buyer the Purchased Equity in the Company; and

 

WHEREAS, pursuant to Section 8.13(d) of the Purchase Agreement, Obligees are required, as of the Effective Date, to indemnify Obligor and its Affiliates, to the extent Obligor or its Affiliates is an obligor under the Unreleased Financial Guarantees set forth on Schedule A hereto, from and against all of their obligations arising under the Unreleased Financial Guaranties set forth on Schedule A hereto.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained herein, and intending to be legally bound hereby, the parties hereby agree as follows:

 

 

Section 1.1. Indemnification. Subject to the terms, conditions and limitations set forth in this Agreement, from and after the Effective Date, the Obligees shall indemnify, defend and hold harmless the Obligor, its Affiliates and its officers, directors, employees, shareholders, members, partners and agents, to the extent (and only to the extent) any of the foregoing is an obligor under the Unreleased Financial Guarantees set forth on Schedule A hereto (collectively, the “Obligor Indemnified  Persons”), from and against all of their obligations arising under the Unreleased Financial Guaranties set forth on Schedule A hereto, except to the extent that Buyer is otherwise entitled to indemnification with respect to such obligations pursuant to Section 13.2 of the Purchase Agreement.  Obligees’ indemnification obligation pursuant to this Section 1.1 shall not be subject to or limited by any deductible amount, any claim threshold, any general or specific cap or any survival period limitation.

 

Section 1.2. Claim Procedures.

 

(a) If an Obligor Indemnified Party receives notice of the assertion or commencement of any claim asserted against an Obligor Indemnified Party by a third Person (“Third Party Claim”) in respect of any matter that is subject to indemnification under Section 1.1 of this Agreement, the Obligor Indemnified Party shall promptly (i) notify the Obligees of the Third Party Claim and (ii) 

 

  

  

  

 

transmit to the Obligees a written notice (“Claim Notice”) describing in reasonable detail the nature of the Third Party Claim, a copy of all papers served with respect to such claim (if any), the Obligor Indemnified Party’s best estimate of the amount of liabilities attributable to the Third Party Claim and the basis of the Obligor Indemnified Party’s request for indemnification under this Agreement.  Failure to timely provide such Claim Notice shall not affect the right of the Obligor Indemnified Party’s indemnification hereunder, except to the extent the Obligee is materially prejudiced by such delay or omission.

 

(b) If the Obligees admit (in writing) their obligation to indemnify the Obligor Indemnified Party with respect to any Third Party Claim, then the Obligees shall have the right to defend, at their sole cost and expense, the Obligor Indemnified Party against such Third Party Claim with counsel selected by the Obligees (who shall be reasonably satisfactory to the Obligor Indemnified Party), by all appropriate proceedings, to a final conclusion or settlement at the discretion of the Obligees in accordance with this Section 1.2(b).  The Obligees shall have full control of such defense and proceedings, including any compromise or settlement thereof; provided that the Obligees shall not enter into any settlement agreement without the written consent of the Obligor Indemnified Party; provided further, that such consent shall not be required if (i) the settlement agreement contains a complete and unconditional general release by the third Person asserting the claim to all Obligor Indemnified Parties affected by the claim, (ii) the settlement agreement does not contain any sanction or restriction upon the conduct of any business by the Obligor Indemnified Party or its affiliates and (iii) the settlement agreement does not create a financial or other obligation on the part of the Obligor Indemnified Party or any other Person other than the Obligees.  If requested by the Obligees, the Obligor Indemnified Party agrees, at the sole cost and expense of the Obligees, to cooperate with the Obligees and their counsel in contesting any Third Party Claim that the Obligees elect to contest, including the making of any reasonably related counterclaim against the Person asserting the Third Party Claim or any cross complaint against any Person and making the books and records and personnel of the Obligor Indemnified Party reasonably available during normal business hours.  The Obligor Indemnified Party may participate in, but not control, any defense or settlement of any Third Party Claim controlled by the Obligees pursuant to this Section 1.2(b), and the Obligor Indemnified Party shall bear its own costs and expenses with respect to such participation.

 

(c) If the Obligees do not admit (in writing) their obligation to indemnify the Obligor Indemnified Party pursuant to Section 1.2(b), then the Obligor Indemnified Party shall have the right to defend, and be reimbursed for its reasonable cost and expense (but only if the Obligor Indemnified Party is actually entitled to indemnification hereunder) in regard to the Third Party Claim with counsel selected by the Obligor Indemnified Party (who shall be reasonably satisfactory to the Obligees), by all appropriate proceedings, which proceedings shall be prosecuted diligently by the Obligor Indemnified Party.  In such circumstances, the Obligor Indemnified Party shall defend any such Third Party Claim in good faith and have full control of such defense and proceedings; provided, however, that the Obligor Indemnified Party may not enter into any compromise or settlement of such Third Party Claim if indemnification is to be sought hereunder, without the Obligees’s consent (which consent shall not be unreasonably withheld, conditioned or delayed).  The Obligees may participate in, but not control, any defense or settlement controlled by the Obligor Indemnified Party pursuant to this Section 1.2(c), and the Obligees shall bear their own costs and expenses with respect to such participation.

 

  

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Any claim by an Obligor Indemnified Party for indemnification under this Agreement that does not result from a Third Party Claim (a “Direct Claim”) will be asserted by giving the Obligee reasonably prompt written notice thereof, but in any event not later than thirty (30) days after the Obligor Indemnified Party becomes aware of such Direct Claim.  Failure to timely provide such notice of a Direct Claim shall not affect the right of the Obligor Indemnified Party’s indemnification hereunder, except to the extent the Obligees are materially prejudiced by such delay or omission.  Such notice by the Obligor Indemnified Party will describe the Direct Claim in reasonable detail, will include copies of all available material written evidence thereof and will indicate the estimated amount, if reasonably practicable, of damages that has been or may be sustained by the Obligor Indemnified Party.  The Obligees will have a period of fifteen (15) Business Days within which to respond in writing to such Direct Claim.  If the Obligees do not so respond within such fifteen (15) Business Day period, the Obligees will be deemed to have rejected such claim, in which event the Obligor Indemnified Party will be free to pursue such remedies as may be available to the Obligor Indemnified Party on the terms and subject to the provisions of this Agreement.

 

Section 1.3. Miscellaneous.

 

(a) Entire Agreement. This Agreement and the Purchase Agreement contain the entire agreement between the parties with respect to the subject matter hereof and there are no agreements, understandings, representations or warranties between the parties with respect to the subject matter hereof other than those set forth or referred to herein.

 

(b) Successors and Assigns; Parties in Interest. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns; provided, however, that this Agreement may not be assigned by any Obligee without the prior written consent of the Obligor, except that (i) any Obligee may assign its rights and obligations hereunder in the event such Obligee transfers its business, assets and operations to one or more third parties (either by merger, stock sale, sale of all or substantially all of the assets of Obligee or otherwise) so long as such Obligee requires, as a condition to such transfer, that the transferee(s) assume in writing such obligations under this Agreement and (ii) any Obligee may assign its rights under this Agreement to any of its Affiliates; provided, however, that, notwithstanding the foregoing, in the case of subclause (ii), no such assignment shall relieve such Obligee of its obligations under this Agreement.

 

(c) Amendment; Waiver. This Agreement may not be modified or amended except by an instrument or instruments in writing signed by the party against whom enforcement of any such modification or amendment is sought.  Any party may, only by an instrument in writing, waive compliance by another party with any term or provision of this Agreement on the part of such other party to be performed or complied with.  The waiver by any party of a breach of any term or provision of this Agreement shall not be construed as a waiver of any subsequent breach.

 

(d) Notices. All notices required or permitted hereunder shall be in writing and deemed sufficiently given for all purposes hereof if (i) delivered in person, by courier or by registered or certified United States Mail to the Person to be notified, with receipt obtained, or (ii) sent by telecopy, telefax or other facsimile or electronic transmission, with “answer back” or other “advice of receipt” obtained, in each case to the appropriate address or number as set forth below (or at such other address for a party as shall be specified in a notice given in accordance with this Section 1.3(d)).  Each notice shall be deemed effective on receipt by the addressee as 

 

  

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aforesaid; provided that, notice received by telex, telecopy, telefax or other facsimile or electronic transmission after 5:00 p.m. at the location of the addressee of such notice shall be deemed received on the first business day following the date of such electronic receipt.

 

 

If to any Obligee, to:

 

Talos Production LLC

c/o Talos Energy LLC

1600 Smith St., Suite 5000

Houston, Texas 77002-7380

Telecopy No.: (713) 351-4100

 

with a copy to (which shall not constitute notice):

 

Mayer Brown LLP

700 Louisiana Street, Suite 3400

Houston, Texas 77002

Attention: William S. Moss III

Telecopy No.: (713) 238-2349

 

If to Obligor, to:

 

Helix Energy Solutions Group, Inc.

400 North Sam Houston Parkway East

Suite 400

Houston, Texas 77060

Attention: Alisa B. Johnson

Telecopy No.: (281) 618-0505

 

with a copy to (which shall not constitute notice):

 

Locke Lord LLP

600 Travis, Suite 2800

Houston, Texas 77002

Attention: Bill Swanstrom

Telecopy: (713) 229-2518

 

Governing Law, Etc. THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO PRINCIPLES THEREOF RELATING TO CONFLICTS OF LAW RULES THAT WOULD DIRECT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.  EACH PARTY HERETO WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY DISPUTE IN CONNECTION WITH OR RELATING TO THIS AGREEMENT AND AGREES TO TAKE ANY AND ALL ACTION NECESSARY OR APPROPRIATE TO EFFECT SUCH WAIVER.  EACH PARTY CONSENTS TO PERSONAL JURISDICTION IN ANY LEGAL ACTION, SUIT OR PROCEEDING WITH RESPECT TO THIS AGREEMENT IN ANY COURT, FEDERAL OR STATE, WITHIN DELAWARE, HAVING SUBJECT MATTER JURISDICTION AND WITH RESPECT TO 

 

  

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ANY SUCH CLAIM, EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY CLAIM, OR ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE, THAT VENUE OR JURISDICTION IS NOT PROPER WITH RESPECT TO ANY SUCH LEGAL ACTION, SUIT OR PROCEEDING BROUGHT IN SUCH COURT IN DELAWARE, INCLUDING ANY CLAIM THAT SUCH LEGAL ACTION, SUIT OR PROCEEDING BROUGHT IN SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND ANY CLAIM THAT IT IS NOT SUBJECT TO PERSONAL JURISDICTION OR SERVICE OF PROCESS IN DELAWARE. EACH PARTY AGREES THAT (i) THE FEDERAL OR STATE COURTS WITHIN DELAWARE WILL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE DISPUTES ARISING OUT OF OR RELATING IN ANY WAY TO THIS AGREEMENT AND (ii) NO ACTION OR PROCEEDING WILL BE FILED IN ANY OTHER COURT.

 

(e) Severability. If any term, provision or condition of this Agreement, or any application thereof, is held invalid, illegal or unenforceable in any respect under any Law, this Agreement shall be reformed to the extent necessary to conform, in each case consistent with the intention of the parties, to such Law, and to the extent such term, provision or condition cannot be so reformed, then such term, provision or condition (or such invalid, illegal or unenforceable application thereof) shall be deemed deleted from (or prohibited under) this Agreement, as the case may be, and the validity, legality and enforceability of the remaining terms, provisions and conditions contained herein (and any other application of such term, provision or condition) shall not in any way be affected or impaired thereby.  Upon such determination that any term or other provision or condition is invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.

 

(f) Counterparts. This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by and delivered to each of the parties.

 

 

[Signature page follows]

 

  

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IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be signed by their respective duly authorized officers as of the date first written above.

 

	 	TALOS PRODUCTION LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

 

	 	ENERGY RESOURCE TECHNOLOGY GOM, 	 
	 	LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

 

	 	CKB PETROLEUM, LLC	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 

 

 

	 	HELIX ENERGY SOLUTIONS GROUP, INC.	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:exh10-4.htm

EXHIBIT 10.4

 

 

NON-COMPETITION AND NON-SOLICITATION AGREEMENT

 

This Non-Competition and Non-Solicitation Agreement (this “Agreement”) dated as of December 13, 2012, but effective as of the Closing Date (as defined below), is by and among Energy Resource Technology GOM, Inc., a Delaware corporation  (“ERT”), CKB Petroleum, Inc., a Texas corporation (“CKB” and together with ERT, the “Protected Parties”), and Johnny Edwards, President and a director of each of ERT and CKB and a resident of Montgomery County, Texas (the “Restricted Party”).  The Protected Parties and the Restricted Party are sometimes each individually referred to herein as a “Party” and collectively referred to herein as the “Parties”.

 

RECITALS

 

WHEREAS, ERT is a direct wholly owned subsidiary of Helix Energy Solutions Group, Inc., a Minnesota corporation (“Helix”), and CKB is a direct wholly owned subsidiary of ERT;

 

WHEREAS, the Restricted Party is an employee of Helix whose duties and responsibilities include serving as President and director of each of ERT and CKB;

 

WHEREAS, as of the date hereof, Talos Production LLC, a Delaware limited liability company (“Talos”), has agreed to buy from Helix, and Helix has agreed to sell to Talos, all of the equity interest in ERT, subject to the terms and conditions of that certain Equity Purchase Agreement by and between Talos and Helix dated as of the date hereof (as the same may be amended, together with the exhibits and schedules thereto and the documents and instruments to be delivered pursuant thereto, the “Purchase Agreement”);

 

WHEREAS, the Protected Parties own certain oil and gas assets located on, under or within the Territory and other lands described on Exhibit A attached hereto;

 

WHEREAS, upon the consummation of the transactions contemplated by the Purchase Agreement (the “Closing Date”), the Restricted Party is resigning as President and director of each of ERT and CKB;

 

WHEREAS, as a material inducement to Talos to enter into the Purchase Agreement and consummate the transactions contemplated thereunder, Talos requires that the Restricted Party agrees not to compete with or against the Protected Parties or any of their Affiliates in the Restricted Business in the Territory for the Restricted Period; and

 

WHEREAS, the Restricted Party and Helix will derive substantial direct and indirect benefit from the transactions contemplated by the Purchase Agreement, including an amendment to the Restricted Party’s Employment Agreement, dated May 11, 2011, between Restricted Party and Helix (the “Restricted Party Employment Agreement”), which amendment is executed contemporaneously with the execution of the Purchase Agreement, and modifies the Restricted Party Employment Agreement so that a change of control of ERT constitutes a change of control under the Restricted Party Employment Agreement.

 

  

 

  

 

NOW, THEREFORE, in consideration of the foregoing, the premises, and the mutual covenants and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

1.1 Certain Defined Restricted Periods.  As used in this Agreement:

 

1.1.1 “Affiliate” shall mean, as to the Person specified, (a) any Person controlling, controlled by or under common control with such specified Person or (b) a Person in which the Restricted Party is an officer, director, employee, manager, advisor, consultant or broker.  The concept of control, controlling or controlled as used in the aforesaid context means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of another, whether through the ownership of voting securities, by contract or otherwise. For the avoidance of doubt, (i) ERT and CKB shall be considered Affiliates of Talos after the Closing Date, and (ii) ERT, CKB and Talos shall not be considered an Affiliate of the Restricted Party after the Closing Date.

 

1.1.2 “Person” shall mean any governmental authority or any individual, firm, partnership, corporation, association, joint venture, trust, unincorporated organization or other entity or organization.

 

1.1.1  “Restricted Business” means the business of owning, acquiring (either directly or indirectly), disposing (including any option or commitment to acquire in the future), exploring for, producing or operating oil and gas and associated mineral properties, or interests, including working interests, mineral interests, royalty and overriding royalty interests, production payments, net profits or similar interests, in oil, gas and associated minerals in the Territory.

 

1.1.2 “Territory” means the following Outer Continental Shelf leasing blocks in the Gulf of Mexico and those blocks that have one or more boundaries or corners that touch any one or more of the following blocks: Green Canyon Blocks 236, 237, 238, 281 and 282; Garden Banks Blocks 462, 463, 506, 507, 625, 667, 668 and 669; South Marsh Island Blocks 107, 130 and 131; High Island Blocks A556 and A557; South Timbalier Blocks 63 and 86 N/2; Vermilion Blocks 314 and 331; Eugene Island Block 302; and Ship Shoal Blocks 222, 223, 224 and 225.

 

1.1.3  “Restricted Period” means the period beginning at the Closing Date and ending twelve months after the Closing Date.

 

ARTICLE II

 

NON-COMPETITION

 

2.1 Covenant Not to Compete.  During the Restricted Period, the Restricted Party shall not, and shall not permit any of his Affiliates to, directly or indirectly, (a) engage in the Restricted Business in the Territory, (b) have an equity interest in any Person that engages directly or indirectly in the Restricted Business in the Territory or (c) intentionally interfere in 

 

  

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any material respect with the business relationships (whether formed prior to or after the date of this Agreement) between either Protected Party, on the one hand, and customers or suppliers of either Protected Party, on the other hand. Notwithstanding the foregoing, the Restricted Party and his Affiliates may own, directly or indirectly, solely as an investment, securities of any Person traded on any national securities exchange if the Restricted Party or his Affiliate, as applicable, is not a controlling Person of, or a member of a group that controls, such Person and does not, directly or indirectly, own five (5%) or more of any class of securities of such Person.

 

ARTICLE III

 

NON-SOLICITATION

 

3.1 Non-Solicitation.  During the Restricted Period, the Restricted Party shall not, and shall not permit any of his Affiliates to, directly or indirectly, hire or solicit any employee of either Protected Party or encourage any such employee to leave such employment or hire any such employee who has left such employment; provided, that nothing in this Section 3.1 shall prevent the Restricted Party or any of his Affiliates from hiring (a) any employee whose employment has been terminated by either Protected Party, (b) after 180 days from the date of termination of employment, any employee whose employment has, to the knowledge of the Restricted Party, been terminated by the employee or (c) any employee who responds to a general solicitation for employment by the Restricted Party or any of his Affiliates.

 

3.2 Non-Interference.  During the Restricted Period, the Restricted Party shall not, and shall not permit any of his Affiliates to, directly or indirectly, solicit or entice, or attempt to solicit or entice, any clients or customers of either Protected Party or potential clients or customers of either Protected Party for purposes of diverting their business or services from either Protected Party.

 

ARTICLE IV

 

RELIEF

 

4.1 Restrictions Reasonable.  The Restricted Party agrees that the limitations as to time, geographic area and scope of activity to be restrained contained in this Agreement are fair and reasonable and are not greater than necessary to protect the legitimate interests of the Protected Parties and Talos. In the event that any covenant contained in this Agreement should ever be adjudicated to exceed the time, geographic, product or service, or other limitations permitted by applicable law in any jurisdiction, then any court is expressly empowered to reform such covenant to the maximum time, geographic, product or service, or other limitations permitted by applicable law in such jurisdiction. The covenants contained in this Agreement and each provision hereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.

 

  

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4.2 Injunctive Relief.  The Restricted Party agrees that a breach or threatened breach of this Agreement would give rise to irreparable harm to the Protected Parties and Talos, for which monetary damages would not be an adequate remedy and hereby agrees that in the event of a breach or a threatened breach by the Restricted Party of any such obligations, the Protected Parties shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction (without any requirement to post bond).

 

ARTICLE V

 

GENERAL RESTRICTED PERIODS

 

5.1 Acknowledgement.

 

5.1.1 The Restricted Party agrees that this Agreement, including the rights, covenants, restrictions and remedies set forth in ARTICLE II, ARTICLE III and ARTICLE IV above, (a) are ancillary to and part of the consummation of the transactions described in the Purchase Agreement, (b) contain reasonable limitations as to time, geographical area and scope of activity, (c) do not impose a greater restraint than is necessary to protect the goodwill and other business interests of the Protected Parties and (d) comply with and are enforceable as of the date hereof under Section 15.50 et. seq. of the Texas Business and Commerce Code.  The Restricted Party agrees and acknowledges that on and after the Closing Date he will derive substantial direct and indirect benefit from the transaction contemplated by the Purchase Agreement and such benefit is sufficient consideration to support the covenants herein.

 

5.1.2 The Restricted Party explicitly warrants and represents to the Protected Parties that the Restricted Party is incurring the obligations of the covenants in this Agreement as an inducement to Talos to enter into the Purchase Agreement and as an essential element of Talos’s agreement to acquire the Protected Parties and pay the purchase price for the Protected Parties, and Talos would not have done so but for the agreement by the Restricted Party to comply with the terms and provisions hereof.

 

5.1.3 The Restricted Party understands and acknowledges that Talos has made substantial investments to acquire the Protected Parties, including its business interests, goodwill and confidential information.  The Restricted Party agrees that such investments are worthy of protection and that Talos’s need for the protection afforded by this Agreement is greater than any hardship the Restricted Party might experience by complying with its terms. 

 

5.2 Governing Law.  Without regard to principles of conflicts of law, this Agreement shall be construed, interpreted and enforced in accordance with and governed by the laws of the State of Texas applicable to contracts made and to be performed entirely within such state.

 

5.3 Forum.  THE PARTIES AGREE THAT THIS AGREEMENT CONSTITUTES A “MAJOR TRANSACTION” AS DEFINED BY SECTION 15.020 OF THE TEXAS CIVIL PRACTICE AND REMEDIES CODE.  THE PARTIES ALSO AGREE, PURSUANT TO SECTION 15.020 OF THE TEXAS CIVIL PRACTICE AND REMEDIES CODE, THAT ANY 

 

  

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LAWSUIT INVOLVING THIS AGREEMENT BROUGHT BY EITHER PARTY WILL BE BROUGHT ONLY IN HARRIS COUNTY, TEXAS, WHETHER SUCH LAWSUIT BE BROUGHT IN FEDERAL OR STATE COURT.  THE PARTIES MUTUALLY CONSENT TO THE JURISDICTION OF THE FEDERAL AND STATE COURTS IN HARRIS COUNTY, TEXAS, AND AGREE THAT ANY ACTION, SUIT, OR PROCEEDING CONCERNING, RELATED TO, OR ARISING OUT OF THIS AGREEMENT AND/OR THE NEGOTIATION OF THIS AGREEMENT WILL BE BROUGHT ONLY IN A FEDERAL OR STATE COURT IN HARRIS COUNTY, TEXAS.  THE PARTIES AGREE THAT THEY WILL NOT RAISE ANY DEFENSE OR OBJECTION OR FILE ANY MOTION BASED ON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE, INCONVENIENCE OF THE FORUM, OR THE LIKE IN ANY CASE FILED IN A FEDERAL OR STATE COURT IN HARRIS COUNTY, TEXAS.  THIS AGREEMENT IS MADE AND PARTIALLY PERFORMABLE IN HARRIS COUNTY, TEXAS, AND VENUE WILL BE IN HARRIS COUNTY, TEXAS.

 

5.4 Waiver of Jury Trial.  EACH PARTY HERETO WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY DISPUTE IN CONNECTION WITH OR RELATING TO THIS AGREEMENT, ANY TRANSACTION AGREEMENT OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN AND AGREES TO TAKE ANY AND ALL ACTION NECESSARY OR APPROPRIATE TO EFFECT SUCH WAIVER.

 

5.5 Non-Circumvention.  Neither the Restricted Party nor any Affiliate of the Restricted Party shall enter into any agreement, contract, or arrangement with any Affiliate or third party with respect to the Territory or take any other action or enter into or cause an Affiliate to enter into any alternative transaction with the purpose of circumventing the intent and obligations of the Parties hereunder.

 

5.6 Entire Agreement.  This Agreement constitutes the entire understanding among the Parties with respect to the subject matter hereof, superseding all written or oral negotiations and discussions, and prior agreements and understandings relating to such subject matter.

 

5.7 Binding Effect.  This Agreement shall be binding upon, and shall inure to the benefit of, the Parties, and their respective successors, assigns and heirs.

 

5.8 Notices.  All notices and other communications required under this Agreement shall (unless otherwise specifically provided herein) be in writing and be delivered personally, by recognized commercial courier or delivery service which provides a receipt, by telecopier (with receipt acknowledged), or by registered or certified mail (postage prepaid), at the following addresses:

 

If to the Restricted Party:

 

Johnny Edwards

42 East Bay Blvd

The Woodlands, TX  77380

Telephone (mobile): (281) 414-2299

 

  

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If to the Protected Parties:

 

Energy Resource Technology GOM LLC

c/o Talos Energy LLC

1600 Smith St., Suite 5000

Houston, Texas  77002-7380

Attention:  Timothy S. Duncan

Telecopy No.:  (713) 351-4100

 

5.9 Amendments and Waivers.  Except for waivers specifically provided for in this Agreement, this Agreement may not be modified or amended nor any rights hereunder waived except by an instrument in writing signed by all Parties that specifically references this Agreement, states that it is intended to modify or amend this Agreement or waive a right hereunder and specifies the provision(s) to be modified, amended or waived.  No waiver of, or consent to a change in, any provisions of this Agreement shall be deemed or shall constitute a waiver of, or consent to a change in, other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

 

5.10 Attorney's Fees.  If any suit or other action is brought with respect to the interpretation or enforcement of this Agreement, the prevailing Party shall be entitled to receive, among other remedies, reimbursement for its reasonable costs and expenses, including, without limitation, reasonable attorneys’ fees.

 

5.11 Counterpart Execution.  This Agreement may be executed in counterparts, all of which are identical and all of which constitute one and the same instrument.  It shall not be necessary for the Protected Parties and the Restricted Party to sign the same counterpart.  Facsimile copies of signatures shall constitute original signatures for all purposes of this Agreement and any enforcement hereof.

 

5.12 Termination of this Agreement.  Notwithstanding anything to the contrary contained herein, if the Purchase Agreement is terminated for any reason whatsoever prior to the Closing Date, this Agreement will never become effective and shall automatically become null and void and of no force and effect; as such, neither the Protected Parties nor the Restricted Party shall have any liabilities, rights duties or obligations to the other (or its successors and assigns) under or in connection with this Agreement.

 

5.13 Interpretation.  In this Agreement (a) captions are for convenience only and shall not be considered a part of, or affect the construction or interpretation of, any provision of this Agreement; (b) references to the singular includes the plural, and vice versa; (c) reference to any Article or Section means an Article or Section of this Agreement; (d) unless expressly provided to the contrary, "hereunder", "hereof", "herein" and words of similar import are references to this Agreement as a whole and not any particular Section or other provision of this Agreement; and (e) "include" and "including" shall mean include or including without limiting the generality of the description preceding such Restricted Period.

 

[Signature page to follow]

 

  

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IN WITNESS WHEREOF, the undersigned have executed and delivered this Agreement as of the date set forth above.

 

 

                                   RESTRICTED PARTY: 

 

	 	 	 
	
 

	/s/ Johnny Edwards	 
	 	Johnny Edwards	 
	 	 	 

 

                                   PROTECTED PARTIES: 

 

	 	Energy Resource Technology GOM, Inc.	 
	 	 	 	 
	
 

	
By: 

	/s/ Anthony Tripodo	 
	 	Name: Anthony Tripodo	 
	 	Title: Vice President and Treasurer	 

 

 

	 	CKB Petroleum, Inc.	 
	 	 	 	 
	
 

	
By: 

	/s/ Anthony Tripodo	 
	 	Name: Anthony Tripodo	 
	 	Title: Vice President and Treasurer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}]]