Document:

Exh 10.1 GC

EXHIBIT 10.1
Execution Copy

Amended and Restated Employment Agreement 

This Amended and Restated Employment Agreement (the “Agreement”), entered into on January 18, 2014 (the “Effective Date”), is made by and between Brock Degeyter (the “Executive”) and Summit Midstream Partners, LLC, a Delaware limited liability company (together with any of its subsidiaries and affiliates as may employ the Executive from time to time, and any successor(s) thereto, the “Company”).

RECITALS

A.The Company and the Executive are parties to an employment agreement, dated January 18, 2012 (the “Original Employment Agreement”).

B.The Company and the Executive desire to amend and restate the Original Employment Agreement in the form hereof.

C.The Company desires to assure itself of the continued services of the Executive by engaging the Executive to perform services under the terms hereof.

D.The Executive desires to continue to provide services to the Company on the terms herein provided.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and agreements set forth below the parties hereto agree as follows:
1.Certain Definitions.  
		
	(a)
	“AAA” shall have the meaning set forth in Section 19.

		
	(b)
	“Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such Person where “control” shall have the meaning given such term under Rule 405 of the Securities Act of 1933, as amended from time to time. 

		
	(c)
	“Agreement” shall have the meaning set forth in the preamble hereto.

		
	(d)
	“Annual Base Salary” shall have the meaning set forth in Section 3(a). 

		
	(e)
	“Annual Bonus” shall have the meaning set forth in Section 3(b).

		
	(f)
	“Board” shall mean the Board of Managers of the  Company or any successor governing body. 

		
	(g)
	The Company shall have “Cause” to terminate the Executive’s employment hereunder upon:  (i) the Executive’s willful failure to substantially perform the duties set forth herein (other than any such failure resulting from the Executive’s Disability); (ii) the Executive’s willful failure to carry out, or comply with, in any material respect any lawful directive of the Board; (iii) the Executive’s commission at any time of any act or omission that results in, or may reasonably be expected to result in, a conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation for any felony or crime involving moral turpitude; (iv) the Executive’s unlawful use (including being under the influence) or possession of illegal drugs on the Company’s premises or while performing the Executive’s duties and responsibilities hereunder; (v) the Executive’s commission at any time of any act of fraud, embezzlement, misappropriation, material misconduct, conversion of assets of the Company or breach of fiduciary duty against the Company (or any predecessor thereto or successor thereof); or (vi) the Executive’s material breach of this Agreement, the SMM LLC Agreement or other agreements with the Company (including, without limitation, any breach of the restrictive covenants of any such agreement); and which, in the case of clauses (i), (ii) and (vi), continues beyond thirty (30) days after the Company has provided the Executive written notice of such failure or breach (to the extent that, in the reasonable judgment of the Board, such failure or breach can be cured by the Executive), so long as such notice is provided within ninety (90) days after the Company knew or should have known of such condition.

		
	(h)
	“Change in Control” shall mean:  (i) any “person” or “group” within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act, other than the Company, Energy Capital Partners II, LP or any of their respective Affiliates (as determined immediately prior to such event), shall become the beneficial owners, by way of merger, acquisition, consolidation, recapitalization, reorganization or otherwise, of fifty percent (50%) or more of the combined voting power of the equity interests in the General Partner or the Partnership; (ii) the limited partners of the Partnership approve, in one or a series of transactions, a plan of complete liquidation of the Partnership, (iii) the sale or other disposition by the General Partner or the Partnership of all or substantially all of its assets in one or more transactions to any Person other than the Company, the General Partner, the Partnership, Energy Capital Partners II, LP or any of their respective Affiliates; or (iv) a transaction resulting in a Person other than the Company, the General Partner, Energy Capital Partners II, LP or any of their respective Affiliates (as determined immediately prior to such event) being the sole general partner of the Partnership.

		
	(i)
	“Change in Control Period” shall mean the period beginning six months prior to a Change in Control and ending on the 12-month anniversary of the Change in Control.

		
	(j)
	“Code” shall mean the Internal Revenue Code of 1986, as amended.

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	(k)
	“Company” shall, except as otherwise provided in Section 7(j), have the meaning set forth in the preamble hereto.

		
	(l)
	“Compensation Committee” shall mean the Compensation Committee of the Board, or if no such committee exists, the Board.

		
	(m)
	“Date of Termination” shall mean (i) if the Executive’s employment is terminated due to the Executive’s death, the date of the Executive’s death; (ii) if the Executive’s employment is terminated due to the Executive’s Disability, the date determined pursuant to Section 4(a)(ii); (iii) if the Executive’s employment is terminated pursuant to Section 4(a)(iii)-(vi) either the date indicated in the Notice of Termination or the date specified by the Company pursuant to Section 4(b), whichever is earlier; or (iv) if the Executive’s employment is terminated pursuant to Section 4(a)(vii)-(viii), the date immediately following the expiration of the then-current Term.

		
	(n)
	“Disability” shall mean the Executive’s inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that can be expected to last for a continuous period of not less than twelve (12) months as determined by a physician jointly selected by the Company and the Executive.

		
	(o)
	“Effective Date” shall have the meaning set forth in the preamble hereto.

		
	(p)
	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

		
	(q)
	“Excise Tax” shall have the meaning set forth in Section 6(b).

		
	(r)
	“Executive” shall have the meaning set forth in the preamble hereto.

		
	(s)
	“Extension Term” shall have the meaning set forth in Section 2(b).

		
	(t)
	“First Payment Date” shall have the meaning set forth in Section 5(b)(ii).

		
	(u)
	“General Partner” means Summit Midstream GP, LLC, a Delaware limited liability company.

		
	(v)
	The Executive shall have “Good Reason” to terminate the Executive’s employment hereunder within two (2) years after the occurrence of one or more of the following conditions without the Executive’s written consent:  (i) a material diminution in the Executive’s authority, duties, or responsibilities, as described herein; (ii) a material diminution in the Executive’s Annual Base Salary, target Annual Bonus (as a percentage of Annual Base Salary) or Annual Bonus range (as a percentage of Annual Base Salary), in each case as described herein; (iii) a material change in the geographic location at which the Executive must perform the Executive’s services hereunder that requires the Executive to relocate his residence to a location more than fifty (50) miles from Dallas, Texas); or (iv) any other action or inaction that constitutes a material breach of this Agreement by the 

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Company; and which, in the case of any of the foregoing, continues beyond thirty (30) days after the Executive has provided the Company written notice that the Executive believes in good faith that such condition giving rise to such claim of Good Reason has occurred, so long as such notice is provided within ninety (90) days after the initial existence of such condition.
		
	(w)
	“Initial Term” shall have the meaning set forth in Section 2(b).

		
	(x)
	“Installment Payments” shall have the meaning set forth in Section 5(b)(ii).

		
	(y)
	“LTIP” shall mean the Summit Midstream Partners, LP 2012 Long-Term Incentive Plan adopted by the Partnership in connection with the Public Offering, and any additional long-term incentive plan adopted in the future and identified by the Company or the Partnership, in the adopting resolution or otherwise, as an “LTIP” pursuant hereto.

		
	(z)
	“Noncompete Option” shall mean the Company’s option, in its sole discretion, in the event of a termination of employment pursuant to Section 4(a)(vii) (Non-Extension of Term by the Company) or Section 4(a)(viii) (Non-Extension of Term by the Executive), to extend the Restricted Period through a date on or prior to the first (1st) anniversary of the Date of Termination, upon advance written notice to the Executive not less than thirty (30) days prior to the end of the then-current Term.

		
	(aa)
	“Notice of Termination” shall have the meaning set forth in Section 4(b).

		
	(bb)
	“Original Employment Agreement” shall have the meaning set forth in the recitals hereto.

		
	(cc)
	“Partnership” means Summit Midstream Partners, LP, a Delaware limited partnership.

		
	(dd)
	“Performance Targets” shall have the meaning set forth in Section 3(b).

		
	(ee)
	“Person” shall mean any individual, natural person, corporation (including any non-profit corporation), general partnership, limited partnership, limited liability partnership, joint venture, estate, trust, company (including any company limited by shares, limited liability company or joint stock company), incorporated or unincorporated association, governmental authority, firm, society or other enterprise, organization or other entity of any nature.

		
	(ff)
	“Proprietary Information” shall have the meaning set forth in Section 7(d).

		
	(gg)
	“Public Offering” shall mean the underwritten public offering of equity securities of the Partnership registered pursuant to Registration Statement 333-183466, filed by the Partnership with the Securities and Exchange Commission and effective as of September 27, 2012.  

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	(hh)
	“Release” shall have the meaning set forth in Section 5(b)(ii).

		
	(ii)
	“Restricted Period” shall mean the period from the Effective Date through (i) with respect to any termination of employment (other than a termination of employment pursuant to Section 4(a)(vii) (Non-Extension of Term by the Company) or Section 4(a)(viii) (Non-Extension of Term by the Executive)), the first (1st) anniversary of the Date of Termination, and (ii) with respect to a termination of employment pursuant to Section 4(a)(vii) (Non-Extension of Term by the Company) or Section 4(a)(viii) (Non-Extension of Term by the Executive), the Date of Termination or, in the event that the Company exercises its Noncompete Option, the date elected by the Company thereunder.

		
	(jj)
	“Section 409A” shall mean Section 409A of the Code and the Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the Effective Date.

		
	(kk)
	“Severance Payment” shall have the meaning set forth in Section 5(b)(i).

		
	(ll)
	“Severance Period” shall mean:  (A) if the Executive’s employment shall be terminated by the Company without Cause pursuant to Section 4(a)(iv) or by the Executive’s resignation for Good Reason pursuant to Section 4(a)(v), the period beginning on the Date of Termination and ending on the first (1st) anniversary of the Date of Termination, and (B) if the Executive’s employment shall be terminated due to non-extension of the Initial Term or any Extension Term by the Company pursuant to Section 4(a)(vii) or by the Executive pursuant to Section 4(a)(viii), but only if the Company exercises its Noncompete Option in connection with such termination, the period beginning on the Date of Termination and ending on the expiration date of the Restricted Period (as elected by the Company pursuant to its Noncompete Option).

		
	(mm)
	“SMM LLC Agreement” shall mean that certain Limited Liability Company Agreement of Summit Midstream Management, LLC, a Delaware limited liability company, as it may be amended, modified or supplemented from time to time.

		
	(nn)
	“SMP LLC Agreement” shall mean the Second Amended and Restated Limited Liability Operating Agreement of Summit Midstream Partners, LLC, a Delaware limited liability company, as it may be amended, modified or supplemented from time to time.

		
	(oo)
	“Term” shall have the meaning set forth in Section 2(b).

(pp)    “Total Payments” shall have the meaning set forth in Section 6(b).

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2.    Employment.  
(a)    In General.  The Company shall employ the Executive and the Executive shall enter the employ of the Company, for the period set forth in Section 2(b), in the position set forth in Section 2(c), and upon the other terms and conditions herein provided. 
(b)    Term of Employment.  The initial term of employment under this Agreement (the “Initial Term”) shall be for the period beginning on the Effective Date and ending on the second (2nd) anniversary of the Effective Date, unless earlier terminated as provided in Section 4.  The Initial Term shall automatically be extended for successive one (1) year periods (each, an “Extension Term” and, collectively with the Initial Term, the “Term”), unless either party hereto gives notice of non-extension to the other no later than ninety (90) days prior to the expiration of the then-applicable Term.
(c)    Position and Duties.  During the Term, the Executive: (i) shall serve as Senior Vice President – General Counsel and Chief Compliance Officer of the Company, with responsibilities, duties and authority customary for such position, subject to direction by the Board; (ii) shall report directly to the Chief Executive Officer of the Company; (iii) shall devote substantially all the Executive’s working time and efforts to the business and affairs of the Company and its subsidiaries, provided that the Executive may (1) serve on corporate, civic, charitable, industry or professional association boards or committees, subject to the Board’s prior written consent in the case of any such board or committee that relates directly or indirectly to the business of the Company or its subsidiaries (which consent shall not unreasonably be withheld), (2) deliver lectures, fulfill speaking engagements or teach at educational institutions and (3) manage his personal investments, so long as none of such activities meaningfully interferes with the performance of the Executive’s duties and responsibilities hereunder, or involves a conflict of interest with the Executive’s duties or responsibilities hereunder or a breach of the covenants contained in Section 7; and (4) agrees to observe and comply with the Company’s rules and policies as adopted by the Company from time to time, which have been made available to the Executive.
3.    Compensation and Related Matters.  
(a)    Annual Base Salary.  During the Term, the Executive shall receive a base salary at a rate of  $305,000 per annum, which shall be paid in accordance with the customary payroll practices of the Company, subject to review and upward, but not downward, adjustment by the Board in its sole discretion (the “Annual Base Salary”).
(b)    Annual Bonus.  With respect to each calendar year that ends during the Term, commencing with calendar year 2013, the Executive shall be eligible to receive an annual cash bonus (the “Annual Bonus”) ranging from zero to one hundred fifty percent (150%) of the Annual Base Salary, with a target Annual Bonus equal to seventy-five percent (75%) of the Annual Base Salary, based upon annual performance targets (the “Performance Targets”) established by the Board in its sole discretion. The amount of the Annual Bonus shall be based upon attainment of the Performance Targets, as determined by the Board (or any authorized committee of the Board) in its sole discretion.  Each such Annual Bonus shall be payable on such date as is determined by the Board, but in any event on or prior to March 15 of the calendar year 

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immediately following the calendar year with respect to which such Annual Bonus relates.  Notwithstanding the foregoing, no bonus shall be payable with respect to any calendar year unless the Executive remains continuously employed with the Company during the period beginning on the Effective Date and ending on December 31 of such year; provided that if the Executive’s employment is terminated pursuant to Section 4(a)(i), (ii) or (iv), the Company shall pay to the Executive a prorated Annual Bonus with respect to the calendar year in which the Date of Termination occurs equal to the target Annual Bonus for such calendar year multiplied by a fraction, the numerator of which is the number of calendar days during such calendar year that the Executive was continuously employed by the Company and the denominator of which is 365 (the “Prorated Termination Bonus”); provided further that, in the case of a termination pursuant to Section 4(a)(iv), no portion of the Prorated Termination Bonus shall be paid unless the Executive timely executes the Release and does not revoke the Release within the time periods set forth in Section 5(b)(ii).
(c)    Benefits.  The Executive shall be eligible to participate in all benefit plans, programs and other arrangements of the Company that may be offered by the Company to its executives as a group (including, without limitation, medical and dental insurance and a 401(k) plan).  During the lesser of the period during which Executive or a qualifying beneficiary (as defined in Section 607 of ERISA) has in effect an election for post-termination continuation coverage or conversion rights to medical and dental benefits under applicable law, including Section 4980 of the Code (“COBRA”), or the period ending on the 18-month anniversary of the Date of Termination, Executive (or, if applicable, the qualifying beneficiary) shall be entitled to such coverage at an out-of-pocket premium cost that does not exceed the out-of-pocket premium cost applicable to similarly situated active employees (and their eligible dependents).
(d)    Vacation; Paid Time Off; Holidays.  During the Term, the Executive shall be entitled to four (4) weeks of paid time off (“PTO”) each full calendar year.  The PTO shall be used for vacation and sick days.  Any vacation shall be taken at the reasonable and mutual convenience of the Company and the Executive.  Any PTO that the Executive is entitled to in any calendar year that is not used by the end of such calendar year shall be forfeited, except for up to five days of PTO each year that may be carried forward to the following year.  Holidays shall be provided in accordance with Company policy, as in effect from time to time.
(e)    Business Expenses.  During the Term, the Company shall reimburse the Executive for all reasonable travel and other business expenses incurred by the Executive in the performance of the Executive’s duties to the Company in accordance with the Company’s applicable expense reimbursement policies and procedures.  
(f)     Tax Reimbursement.  During the Term, the Company shall reimburse the Executive for his personal tax preparation expenses up to an amount of $10,000 per annum.

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4.    Termination.  The Executive’s employment hereunder may be terminated by the Company or the Executive, as applicable, without any breach of this Agreement only under the following circumstances:
(a)    Circumstances
(i)    Death.  The Executive’s employment hereunder shall terminate upon the Executive’s death.
(ii)    Disability.  If the Executive incurs a Disability, the Company may give the Executive written notice of its intention to terminate the Executive’s employment.  In that event, the Executive’s employment with the Company shall terminate, effective on the later of the thirtieth (30th) day after receipt of such notice by the Executive or the date specified in such notice; provided that within the thirty (30) day period following receipt of such notice, the Executive shall not have returned to full-time performance of the Executive’s duties hereunder.
(iii)    Termination for Cause.  The Company may terminate the Executive’s employment for Cause.
(iv)    Termination without Cause.  The Company may terminate the Executive’s employment without Cause.
(v)    Resignation for Good Reason.  The Executive may resign from the Executive’s employment for Good Reason.
(vi)    Resignation without Good Reason.  The Executive may resign from the Executive’s employment without Good Reason.
(vii)    Non-Extension of Term by the Company.  The Company may give notice of non-extension to the Executive pursuant to Section 2(b).  For the avoidance of doubt, non-extension of the Term by the Company shall not constitute termination by the Company without Cause.
(viii)    Non-Extension of Term by the Executive.  The Executive may give notice of non-extension to the Company pursuant to Section 2(b).  For the avoidance of doubt, non-extension of the Term by the Executive shall not constitute resignation for Good Reason.
(b)    Notice of Termination.  Any termination of the Executive’s employment by the Company or by the Executive under this Section 4 (other than a termination pursuant to Section 4(a)(i) above) shall be communicated by a written notice to the other party hereto: (i) indicating the specific termination provision in this Agreement relied upon, (ii) except with respect to a termination pursuant to Sections 4(a)(iv), (vi), (vii) or (viii), setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated, and (iii) specifying a Date of Termination which, if submitted by the Executive (or, in the case of a termination described in Section 4(a)(ii), by the 

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Company), shall be at least thirty (30) days following the date of such notice (a “Notice of Termination”); provided, however, that a Notice of Termination delivered by the Company pursuant to Section 4(a)(ii) shall not be required to specify a Date of Termination, in which case the Date of Termination shall be determined pursuant to Section 4(a)(ii); and provided, further, that in the event that the Executive delivers a Notice of Termination (other than a notice of non-extension under Section 4(a)(viii) above) to the Company, the Company may, in its sole discretion, accelerate the Date of Termination to any date that occurs following the date of Company’s receipt of such Notice of Termination (even if such date is prior to the date specified in such Notice of Termination).  A Notice of Termination submitted by the Company may provide for a Date of Termination on the date the Executive receives the Notice of Termination, or any date thereafter elected by the Company in its sole discretion.  The failure by the Company or the Executive to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause or Good Reason shall not waive any right of the Company or the Executive hereunder or preclude the Company or the Executive from asserting such fact or circumstance in enforcing the Company’s or the Executive’s rights hereunder. 
5.    Company Obligations Upon Termination of Employment.  
(a)    In General.  Upon a termination of the Executive’s employment for any reason, the Executive (or the Executive’s estate) shall be entitled to receive: (i) any portion of the Executive’s Annual Base Salary through the Date of Termination not theretofore paid, (ii) any expenses owed to the Executive under Section 3(e), (iii) any accrued PTO owed to the Executive pursuant to Section 3(d), and (iv) any amount arising from the Executive’s participation in, or benefits under, any employee benefit plans, programs or arrangements under Section 3(c), which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs or arrangements. Any Annual Bonus earned for any calendar year completed prior to the Date of Termination, but unpaid prior to such date, and any Prorated Termination Bonus owed pursuant to the last sentence of Section 3(b), shall be paid within sixty (60) days after the Date of Termination (but in any event on or prior to March 15 of the calendar year immediately following such completed calendar year with respect to which such Annual Bonus or Prorated Termination Bonus was earned).  Except as otherwise set forth in Section 5(b) below, the payments and benefits described in this Section 5(a) shall be the only payments and benefits payable in the event of the Executive’s termination of employment for any reason.
(b)    Severance Payment
(i)    In the event of the Executive’s termination of employment under the circumstances described below, then, in addition to the payments and benefits described in Section 5(a) above, the Company shall, during the Severance Period, pay to the Executive an amount (the “Severance Payment”) calculated as described below:
(A)    If the Executive’s employment shall be terminated by the Company without Cause pursuant to Section 4(a)(iv) or by the Executive’s resignation for Good Reason pursuant to Section 4(a)(v), in each case other than during the Change in Control Period, then the Severance Payment shall be an amount equal to the sum of (1) the Annual Base 

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Salary for the year in which the Date of Termination occurs, and (2) the Annual Bonus paid to the Executive in respect of the calendar year immediately preceding the year in which the Date of Termination occurs.
(B)    If the Executive’s employment shall be terminated by the Company without Cause pursuant to Section 4(a)(iv) or by the Executive’s resignation for Good Reason pursuant to Section 4(a)(v), in each case during the Change in Control Period, then the Severance Payment shall be an amount equal to one and one-half (1 1⁄2) times the sum of (1) the Annual Base Salary for the year in which the Date of Termination occurs, and (2) the Annual Bonus paid to the Executive in respect of the calendar year immediately preceding the year in which the Date of Termination occurs.
(C)    If the Executive’s employment shall be terminated due to non-extension of the Initial Term or any Extension Term by the Company pursuant to Section 4(a)(vii) or by the Executive pursuant to Section 4(a)(viii), but only if the Company exercises its Noncompete Option in connection with such termination, then the Severance Payment shall be an amount equal to (1) the sum of (x) the Annual Base Salary for the year in which the Date of Termination occurs, and (y) the Annual Bonus paid to the Executive in respect of the calendar year immediately preceding the year in which the Date of Termination occurs, multiplied by (2) a fraction, the numerator of which is equal to the number of days from the Date of Termination through the expiration date of the Restricted Period (as elected by the Company pursuant to its Noncompete Option), and the denominator of which is 365.
(ii)    The Severance Payment shall be in lieu of notice or any other severance benefits to which the Executive might otherwise be entitled.  Notwithstanding anything herein to the contrary, (A) no portion of the Severance Payment shall be paid unless, on or prior to the thirtieth (30th) day following the Date of Termination, the Executive timely executes a general waiver and release of claims agreement substantially in the form attached hereto as Exhibit A (the “Release”), which Release shall not have been revoked by the Executive prior to the expiration of the period (if any) during which any portion of such Release is revocable under applicable law, and (B) as of the first date on which the Executive violates any covenant contained in Section 7, any remaining unpaid portion of the Severance Payment shall thereupon be forfeited.  Subject to the provisions of Section 9, the Severance Payment shall be paid in equal installments during the Severance Period, at the same time and in the same manner as the Annual Base Salary would have been paid had the Executive remained in active employment during the Severance Period, in accordance with the Company’s normal payroll practices in effect on the Date of Termination; provided that any installment that would otherwise have been paid prior to the first normal payroll payment date occurring on or after the thirtieth (30th) day following the Date of Termination (such payroll date, the “First Payment Date”) shall instead be paid on 

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the First Payment Date.  For purposes of Section 409A (including, without limitation, for purposes of Section 1.409A-2(b)(2)(iii) of the Department of Treasury Regulations), the Executive’s right to receive the Severance Payment in the form of installment payments (the “Installment Payments”) shall be treated as a right to receive a series of separate payments and, accordingly, each Installment Payment shall at all times be considered a separate and distinct payment.
(c)    The provisions of this Section 5 shall supersede in their entirety any severance payment provisions in any severance plan, policy, program or other arrangement maintained by the Company.
6.    Change in Control.  
(a)    Equity Awards.  Notwithstanding anything to the contrary in this Agreement or any other agreement, including the LTIP and any award agreement thereunder, all equity awards granted to the Executive under the LTIP and held by the Executive as of immediately prior to a Change in Control, to the extent unvested, shall become fully vested immediately prior to the Change in Control.
(b)    Golden Parachute Excise Tax Protection.  Notwithstanding any provision of this Agreement, if any portion of the payments or benefits provided to the Executive hereunder, or under any other agreement with the Executive or any plan, policy or arrangement of the Company or any of its Affiliates (in the aggregate, “Total Payments”), would constitute an “excess parachute payment” and would, but for this Section 6(b), result in the imposition on the Executive of an excise tax under Section 4999 of the Code (the “Excise Tax”), then the Total Payments to be made to the Executive shall either be (i) delivered in full, or (ii) reduced by such amount such that no portion of the Total Payments would be subject to the Excise Tax, whichever of the foregoing results in the receipt by the Executive of the greatest benefit on an after-tax basis (taking into account the applicable federal, state and local income taxes and the Excise Tax).  The determination of whether a reduction in Total Payments is necessary and the amount of any such reduction shall be made by the Company in its reasonable discretion and in reliance on its tax advisors.  If the Company so determines that a reduction in Total Payments is required, such reduction shall apply first pro rata to (A) cash payments subject to Section 409A of the Code as “deferred compensation” and (B) cash payments not subject to Section 409A of the Code (in each case with the cash payments otherwise scheduled to be paid latest in time reduced first), and then pro rata to (C) equity-based compensation subject to Section 409A of the Code as “deferred compensation” and (D) equity-based compensation not subject to Section 409A of the Code.
7.    Restrictive Covenants.  
(a)    The Executive shall not, at any time during the Restricted Period, directly or indirectly engage in, have any equity interest in, or manage or operate any person, firm, corporation, partnership, business or entity (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise) that engages in (either directly or through any subsidiary or Affiliate thereof) any business or activity (i) relating to midstream assets (including, without limitation, the gathering, processing and transportation of natural gas 

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and the transportation and storage of refined products other than natural gas) in North America, which competes with the business of the Company or any entity owned by the Company, or (ii) which the Company or any of its Affiliates has taken active steps to engage in or acquire, but only if the Executive directly or indirectly engages in, has any equity interest in, or manages or operates, such business or activity (whether as director, officer, employee, agent, representative, partner, security holder, consultant or otherwise).  Notwithstanding the foregoing, the Executive shall be permitted to acquire a passive stock or equity interest in such a business; provided that such stock or other equity interest acquired is not more than five percent (5%) of the outstanding interest in such business.
(b)    The Executive shall not, at any time during the Term or during the twelve (12)-month period immediately following the Date of Termination, directly or indirectly, either for himself or on behalf of any other entity, (i) recruit or otherwise solicit or induce any employee, customer, subscriber or supplier of the Company to terminate its employment or arrangement with the Company, or otherwise change its relationship with the Company, or (ii) hire, or cause to be hired, any person who was employed by the Company at any time during the twelve (12)-month period immediately prior to the Date of Termination or who thereafter becomes employed by the Company.
(c)    The provisions contained in Sections 7(a) and (b) may be altered and/or waived to be made less restrictive on the Executive with the prior written consent of the Board or the Compensation Committee.
(d)    Except as the Executive reasonably and in good faith determines to be required in the faithful performance of the Executive’s duties hereunder or in accordance with Section 7(f), the Executive shall, during the Term and after the Date of Termination, maintain in confidence and shall not directly or indirectly, use, disseminate, disclose or publish, or use for the Executive’s benefit or the benefit of any person, firm, corporation or other entity, any confidential or proprietary information or trade secrets of or relating to the Company, including, without limitation, information with respect to the Company’s operations, processes, protocols, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, compensation paid to employees or other terms of employment (“Proprietary Information”), or deliver to any person, firm, corporation or other entity, any document, record, notebook, computer program or similar repository of or containing any such Proprietary Information.  The Executive’s obligation to maintain and not use, disseminate, disclose or publish, or use for the Executive’s benefit or the benefit of any person, firm, corporation or other entity, any Proprietary Information after the Date of Termination will continue so long as such Proprietary Information is not, or has not by legitimate means become, generally known and in the public domain (other than by means of the Executive’s direct or indirect disclosure of such Proprietary Information) and continues to be maintained as Proprietary Information by the Company.  The parties hereby stipulate and agree that as between them, the Proprietary Information identified herein is important, material and affects the successful conduct of the businesses of the Company (and any successor or assignee of the Company).  
(e)    Upon termination of the Executive’s employment with the Company for any reason, the Executive will promptly deliver to the Company all correspondence, drawings, 

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manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the Company’s customers, business plans, marketing strategies, products or processes. 
(f)    The Executive may respond to a lawful and valid subpoena or other legal process but shall give the Company (if lawfully permitted to do so) the earliest possible notice thereof, and shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought, and shall assist such counsel in resisting or otherwise responding to such process.  Upon notification from Executive of such subpoena or other legal process, but only to the extent that such notification is provided during the Restricted Period, the Company shall, at its reasonable expense, retain mutually acceptable legal counsel to represent Executive in connection with Executive’s response to any such subpoena or other legal process.  The Executive may also disclose Proprietary Information if: (i) in the reasonable written opinion of counsel for the Executive furnished to the Company, such information is required to be disclosed for the Executive not to be in violation of any applicable law or regulation or (ii) the Executive is required to disclose such information in connection with the enforcement of any rights under this Agreement or any other agreements between the Executive and the Company.
(g)    The Executive agrees not to disparage the Company, any of its products or practices, or any of its directors, officers, agents, representatives, equity holders or Affiliates, either orally or in writing, at any time; provided that the Executive may confer in confidence with the Executive’s legal representatives, make truthful statements to any government agency in sworn testimony, or make truthful statements as otherwise required by law.  The Company agrees that, upon the termination of the Executive’s employment hereunder, it shall advise its directors and executive officers not to disparage the Executive, either orally or in writing, at any time; provided that they may confer in confidence with the Company’s and their legal representatives and make truthful statements as required by law.
(h)    Prior to accepting other employment or any other service relationship during the Restricted Period, the Executive shall provide a copy of this Section 7 to any recruiter who assists the Executive in obtaining other employment or any other service relationship and to any employer or person with which the Executive discusses potential employment or any other service relationship.
(i)    In the event the terms of this Section 7 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect, it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action. 
(j)    As used in this Section 7, the term “Company” shall include the Company, its parent, related entities, and any of its direct or indirect subsidiaries.

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8.    Injunctive Relief.  The Executive recognizes and acknowledges that a breach of the covenants contained in Section 7 will cause irreparable damage to the Company and its goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the remedies at law for any such breach will be inadequate.  Accordingly, the Executive agrees that in the event of a breach of any of the covenants contained in Section 7, in addition to any other remedy which may be available at law or in equity, the Company will be entitled to specific performance and injunctive relief.
9.    Indemnification; Limitation of Liability.  The Company shall indemnify and advance expenses to the Executive to the same extent and subject to the same conditions under which it may indemnify and advance expenses under Sections 7.07(a) and (b) of the SMP LLC Agreement.
10.    Section 409A.
(a)    General.  The parties hereto acknowledge and agree that, to the extent applicable, this Agreement shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A.  Notwithstanding any provision of this Agreement to the contrary, in the event that the Company determines that any amounts payable hereunder will be immediately taxable to the Executive under Section 409A, the Company reserves the right to (without any obligation to do so or to indemnify the Executive for failure to do so) (i) adopt such amendments to this Agreement or adopt such other policies and procedures (including amendments, policies and procedures with retroactive effect) that it determines to be necessary or appropriate to preserve the intended tax treatment of the benefits provided by this Agreement, to preserve the economic benefits of this Agreement and to avoid less favorable accounting or tax consequences for the Company and/or (ii) take such other actions it determines to be necessary or appropriate to exempt the amounts payable hereunder from Section 409A or to comply with the requirements of Section 409A and thereby avoid the application of penalty taxes thereunder.  Notwithstanding anything herein to the contrary, no provision of this Agreement shall be interpreted or construed to transfer any liability for failure to comply with the requirements of Section 409A from the Executive or any other individual to the Company or any of its Affiliates, employees or agents.
(b)    Separation from Service under Section 409A; Section 409A Compliance.  Notwithstanding anything herein to the contrary:  (i) no termination or other similar payments and benefits hereunder shall be payable unless the Executive’s termination of employment constitutes a “separation from service” within the meaning of Section 1.409A-1(h) of the Department of Treasury Regulations; (ii) if the Executive is deemed at the time of the Executive’s separation from service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of any termination or other similar payments and benefits to which the Executive may be entitled hereunder (after taking into account all exclusions applicable to such payments or benefits under Section 409A) is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of such payments and benefits shall not be provided to the Executive  prior to the earlier of (x) the expiration of the six (6)-month period measured from the date of the Executive’s “separation from service” with the Company (as such term is defined in the Department of Treasury Regulations issued under Section 409A) or (y) the date of the Executive’s death; provided that upon the earlier of such dates, all payments and benefits 

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deferred pursuant to this Section 9(b)(ii) shall be paid in a lump sum to the Executive, and any remaining payments and benefits due hereunder shall be provided as otherwise specified herein; (iii) the determination of whether the Executive is a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code as of the time of the Executive’s separation from service shall be made by the Company in accordance with the terms of Section 409A (including, without limitation, Section 1.409A-1(i) of the Department of Treasury Regulations and any successor provision thereto); (iv) to the extent that any Installment Payments under this Agreement are deemed to constitute “nonqualified deferred compensation” within the meaning of Section 409A, for purposes of Section 409A (including, without limitation, for purposes of Section 1.409A-2(b)(2)(iii) of the Department of Treasury Regulations), each such payment that the Executive may be eligible to receive under this Agreement shall be treated as a separate and distinct payment; (v) to the extent that any reimbursements or corresponding in-kind benefits provided to the Executive under this Agreement are deemed to constitute “deferred compensation” under Section 409A, such reimbursements or benefits shall be provided reasonably promptly, but in no event later than December 31 of the year following the year in which the expense was incurred, and in any event in accordance with Section 1.409A-3(i)(1)(iv) of the Department of Treasury Regulations; and (vi) the amount of any such payments or expense reimbursements in one calendar year shall not affect the expenses or in-kind benefits eligible for payment or reimbursement in any other calendar year, other than an arrangement providing for the reimbursement of medical expenses referred to in Section 105(b) of the Code, and the Executive’s right to such payments or reimbursement of any such expenses shall not be subject to liquidation or exchange for any other benefit.
11.    Assignment and Successors.  The Company may assign its rights and obligations under this Agreement to any entity, including any successor to all or substantially all the assets of the Company, by merger or otherwise, and may assign or encumber this Agreement and its rights hereunder as security for indebtedness of the Company and its Affiliates.  The Executive may not assign the Executive’s rights or obligations under this Agreement to any individual or entity.  This Agreement shall be binding upon and inure to the benefit of the Company, the Executive and their respective successors, assigns, personnel and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable.
12.    Governing Law.  This Agreement shall be governed, construed, interpreted and enforced in accordance with the substantive laws of the State of Delaware, without reference to the principles of conflicts of law of Delaware or any other jurisdiction, and where applicable, the laws of the United States.
13.    Validity.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.  
14.    Notices.  Any notice, request, claim, demand, document and other communication hereunder to any party hereto shall be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by telex, telecopy, or certified or registered mail, postage prepaid, to the following address (or at any other address as any party hereto shall have specified by notice in writing to the other party hereto):

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(a)    If to the Company:
Summit Midstream Partners, LLC
2300 Windy Ridge Parkway, Suite 840N
Atlanta, Georgia 30339
Dallas, Texas 75201
Attn:  Steve Newby
Facsimile:  (770) 504-5005
with copies to:
Energy Capital Partners
51 John F. Kennedy Parkway, Suite 200 
Short Hills, New Jersey 07078
Attn:  Tom Lane
Facsimile: (973) 671-6101
and:
Energy Capital Partners
11943 El Camino Real, Suite 220
San Diego, California 92130
Attn: Andrew D. Singer
Facsimile: (858) 703-4401

and:

Latham & Watkins LLP
885 Third Avenue
New York, New York 10022-4802
Attn:  Jed W. Brickner
Facsimile:  (212) 751-4864

(b)    If to the Executive, at the address set forth on the signature page hereto.    
15.    Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.
16.    Entire Agreement.  This Agreement (together with any other agreements and instruments contemplated hereby or referred to herein) is intended by the parties hereto to be the final expression of their agreement with respect to the employment of the Executive by the Company and may not be contradicted by evidence of any prior or contemporaneous agreement (including, without limitation, any term sheet or offer letter).  The parties hereto further intend that this Agreement shall constitute the complete and exclusive statement of its terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other legal 

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proceeding to vary the terms of this Agreement.  This Agreement expressly supersedes the Original Employment Agreement.
17.    Amendments; Waivers.  This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by the Executive and a duly authorized officer of the Company and approved by the Board, which expressly identifies the amended provision of this Agreement. By an instrument in writing similarly executed and approved by the Board, the Executive or a duly authorized officer of the Company may waive compliance by the other party or parties hereto with any provision of this Agreement that such other party was or is obligated to comply with or perform; provided, however, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent failure to comply or perform.  No failure to exercise and no delay in exercising any right, remedy, or power hereunder shall preclude any other or further exercise of any other right, remedy, or power provided herein or by law or in equity.
18.    No Inconsistent Actions.  The parties hereto shall not voluntarily undertake or fail to undertake any action or course of action inconsistent with the provisions or essential intent of this Agreement.  Furthermore, it is the intent of the parties hereto to act in a fair and reasonable manner with respect to the interpretation and application of the provisions of this Agreement.
19.    Construction.  This Agreement shall be deemed drafted equally by both of the parties hereto.  Its language shall be construed as a whole and according to its fair meaning.  Any presumption or principle that the language is to be construed against any party hereto shall not apply.  The headings in this Agreement are only for convenience and are not intended to affect construction or interpretation.  Any references to paragraphs, subparagraphs, sections or subsections are to those parts of this Agreement, unless the context clearly indicates to the contrary.  Also, unless the context clearly indicates to the contrary, (a) the plural includes the singular and the singular includes the plural; (b) “and” and “or” are each used both conjunctively and disjunctively; (c) “any,” “all,” “each,” or “every” means “any and all,” and “each and every”; (d) ”includes” and “including” are each “without limitation”; (e) “herein,” “hereof,” “hereunder” and other similar compounds of the word “here” refer to the entire Agreement and not to any particular paragraph, subparagraph, section or subsection; and (f) all pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the entities or persons referred to may require.
1.    Arbitration.  Any dispute or controversy based on, arising under or relating to this Agreement shall be settled exclusively by final and binding arbitration, conducted before a single neutral arbitrator in Dallas, Texas in accordance with the Employment Arbitration Rules and Mediation Procedures of the American Arbitration Association (the “AAA”) then in effect.  Arbitration may be compelled, and judgment may be entered on the arbitration award in any court having jurisdiction; provided, however, that the Company shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of the provisions of Section 7, and the Executive hereby consents that such restraining order or injunction may be granted without requiring the Company to post a bond.  Only individuals who are (a) lawyers engaged full-time in the practice of law and (b) on the AAA roster of arbitrators shall be selected as an arbitrator.  Within twenty (20) days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and 

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conclusions of law.  The arbitrator shall be entitled to award any relief available in a court of law.  Each party shall bear its own costs and attorneys’ fees in connection with an arbitration; provided that the Company shall bear the cost of the arbitrator and the AAA’s administrative fees.
2.    Enforcement.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement.  Furthermore, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as 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.
3.    Withholding.  The Company shall be entitled to withhold from any amounts payable under this Agreement, any federal, state, local or foreign withholding or other taxes or charges which the Company is required to withhold.  The Company shall be entitled to rely on an opinion of counsel if any questions as to the amount or requirement of withholding shall arise.
4.    Absence of Conflicts; Executive Acknowledgement.  The Executive hereby represents that from and after the Effective Date the performance of the Executive’s duties hereunder will not breach any other agreement to which the Executive is a party.  The Executive acknowledges that the Executive has read and understands this Agreement, is fully aware of its legal effect, has not acted in reliance upon any representations or promises made by the Company other than those contained in writing herein, and has entered into this Agreement freely based on the Executive’s own judgment.  
5.    Survival.  The expiration or termination of the Term shall not impair the rights or obligations of any party hereto which shall have accrued prior to such expiration or termination.
[Signature pages follow]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written.
	
				
	 
	 
	COMPANY

	 
	 
	 
	 

	 
	 
	By:
	/s/ Steven J. Newby

	 
	 
	 
	Name: Steven J. Newby

	 
	 
	 
	Title: President and Chief Executive Officer

Signature Page to the 
Employment Agreement for Brock Degeyter

	
				
	 
	 
	EXECUTIVE

	 
	 
	 
	 

	 
	 
	By:
	/s/ Brock Degeyter

	 
	 
	 
	Name: Brock Degeyter

	 
	 
	 
	 

	 
	 
	 
	Residence Address:

	 
	 
	 
	 

	 
	 
	 
	6723 Ellsworth Ave.

	 
	 
	 
	Dallas, TX  75214

        

Signature Page to the 
Employment Agreement for Brock Degeyter

EXHIBIT A

Form of Release
Brock Degeyter (the “Executive”) agrees for the Executive, the Executive’s spouse and child or children (if any), the Executive’s heirs, beneficiaries, devisees, executors, administrators, attorneys, personal representatives, successors and assigns, hereby forever to release, discharge, and covenant not to sue Summit Midstream Partners, LLC, a Delaware limited liability company (the “Company”), and any of its past, present, or future parent, affiliated, related, and/or subsidiary entities, and all of the past and present directors, shareholders, officers, general or limited partners, employees, agents, and attorneys, and agents and representatives of such entities, and employee benefit plans in which the Executive is or has been a participant by virtue of his employment with the Company (collectively, the “Releasees”), from any and all claims, debts, demands, accounts, judgments, rights, causes of action, equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits, expenses, compensation, responsibility and liability of every kind and character whatsoever (including attorneys’ fees and costs), whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected, which the Executive has or may have had against such Releasees based on any events or circumstances arising or occurring on or prior to the date this release (the “Release”) is executed, arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever, (a) the Executive’s employment with the Company or its subsidiaries or the termination thereof or (b) the Executive’s status at any time as a holder of any securities of the Company, and any and all claims arising under federal, state, or local laws relating to employment, or securities, including without limitation claims of wrongful discharge, breach of express or implied contract, fraud, misrepresentation, defamation, or liability in tort, claims of any kind that may be brought in any court or administrative agency, any claims arising under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Fair Labor Standards Act, the Employee Retirement Income Security Act, the Family and Medical Leave Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the Sarbanes-Oxley Act, and similar state or local statutes, ordinances, and regulations; provided, however, notwithstanding anything to the contrary set forth herein, that this Release shall not extend to (i) benefit claims under employee pension or welfare benefit plans in which the Executive is a participant by virtue of his employment with the Company or its subsidiaries, (ii) any rights under that certain Amended and Restated Employment Agreement, dated as of [_____________________], 2013, by and between the Company and the Executive, (iii) any rights of indemnification the Executive may have under any written agreement between the Executive and the Company (or its affiliates), the Company’s Certificate of Incorporation, the Partnership’s LP Agreement, the General Corporation Law of the State of Delaware, any applicable statute or common law, or pursuant to any applicable insurance policy, (iv) unemployment compensation, (v) contractual rights to vested equity awards, (vi) COBRA benefits and (viii) any rights that may not be waived as a matter of law.
The Executive understands that this Release includes a release of claims arising under the Age Discrimination in Employment Act (ADEA).  The Executive understands and warrants that he has been given a period of 21 days to review and consider this Release.  The Executive further warrants that he understands that he may use as much or all of his 21-day period as he wishes before signing, and warrants that he has done so.  The Executive further warrants that he 

A-1

understands that, with respect to the release of age discrimination claims only, he has a period of seven days after executing on the second signature line below to revoke the release of age discrimination claims by notice in writing to the Company.
The Executive is hereby advised to consult with an attorney prior to executing this Release.  By his signature below, the Executive warrants that he has had the opportunity to do so and to be fully and fairly advised by that legal counsel as to the terms of this Release.

ACKNOWLEDGEMENT (AS TO ALL CLAIMS 
OTHER THAN AGE DISCRIMINATION CLAIMS)
The undersigned, having had full opportunity to review this Release with counsel of his choosing, signifies his agreement to the terms of this Release (other than as it relates to age discrimination claims) by his signature below.

_____________________________        ______________________
 
        Brock Degeyter                Date

ACKNOWLEDGEMENT (AGE DISCRIMINATION CLAIMS)
The undersigned, having had full opportunity to review this Release with counsel of his choosing, signifies his agreement to the terms of this Release (as it relates to age discrimination claims) by his signature below.

_____________________________        ______________________
 
        Brock Degeyter                Date

A-2ex105.htm

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (the "Agreement") is made as of the 23 day of May 2013, between Quad Energy Corp. ("Assignor") and Multi-Corp International Inc. ("Assignee").

RECITALS

	
A.  

	
Pursuant to that certain Asset Purchase Agreement dated January 15, 2013 between Assignor and Robin Hood LLC, Robin Hood LLC has agreed to sell, and Assignor has agreed to buy certain oil and gas leases, associated equipment and associated surface rights (the “Asset Purchase Agreement”), all as approved by an order of the United States Bankruptcy Court – District of New Mexico (the “Court”) at a hearing on March 25, 2013

	
B.  

	
Assignor wishes to assign, and Assignee wishes to assume, Assignor's rights and obligations arising from or in connection with the Asset Purchase Agreement.

Therefore, the parties agree as follows:

ARTICLE 1

ASSIGNMENT

 

	
1.1

	
Assignment. In consideration of the Assignee issuing 3,000,000 restricted common stock of the Assignee to the Assignor, the Assignor hereby assigns to Assignee all of Assignor's rights and obligations in and to the Asset Purchase Agreement.

 

ARTICLE 2

ASSUMPTION

 

	
2.1

	
Assumption. Assignee hereby irrevocably assumes and accepts Assignor's rights and obligations in and to the Asset Purchase Agreement and agrees to be bound by the terms and conditions thereof.

 

ARTICLE 3

GENERAL

 

	
3.1

	
Entire Agreement. This Agreement constitutes a complete statement of the understanding between the parties with respect to the subject matter.

 

	
3.2

	
Headings. The headings in this Agreement are provided for reference only and shall not affect the Agreement’s construction or interpretation.

 

	
3.3

	
Invalidity of Provisions. Each provision of this Agreement is distinct and severable from every other provision, and if any provision is declared by a Court to be invalid or unenforceable, the rest of the Agreement shall remain in effect.

 

	
3.4

	
Amendment; Waiver. An amendment or waiver of this Agreement shall not be binding unless it is signed by the party who will be bound by it. A waiver of any provision of this Agreement shall not be a waiver of any other provision and a waiver of any provision of this Agreement shall not be a continuing waiver, unless expressly stated.

 

	
3.6

	
Governing Law. This Agreement shall be governed by the laws of the Province of Alberta and the laws of Canada applicable therein. Each party hereby irrevocably attorns to the jurisdiction of the Province of Alberta with respect to any matter relating to this Agreement.

  

  

  

	
3.7

	
Assignment. This Agreement may not be assigned by either party without the prior written consent of the other party.

 

	
3.8

	
Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of, and bind, the successors and permitted assigns of the parties.

 

3.9           Time. Time is of the essence in all respects of this Agreement.

 

	
3.10

	
Further Assurances. The parties shall with reasonable diligence do all acts and deliver all instruments as may be required to give effect to this Agreement.

 

	
3.11

	
Expenses. Each party shall pay its own costs and expenses of and incidental to the preparation of this Agreement.

 

	
3.12

	
Counterparts. This Agreement may be executed and delivered in one or more counterparts, including counterparts delivered by facsimile transmission or e-mail, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF this Agreement has been executed by the parties hereto.

	  	  	
QUAD ENERGY CORP.

 

 

	  	  	
Per:

	  Robert Popick 
	  	  	  	
Name:Robert Popick 

Title: President 

	  	  	
MULTI-CORP INTERNATIONAL INC.

 

 

	  	  	
Per:

	  Jean Mann
	  	  	  	
Name: Jean Mann 

Title: President 

  

  

  

 

PROVINCE OF ALBERTA

CITY OF CALGARY

This instrument was acknowledged before me on the 28th day of May, 2013 by Robert Popick, the President of Quad Energy Corp. on behalf of such corporation.

__________________________________

Notary Public

  

  

  

  

  

  

ASSET PURCHASE AGREEMENT

 

THIS AGREEMENT (together with the exhibits and schedules attached hereto, this “Agreement”) dated as of the15th   day of January, 2013.

 

BETWEEN:

 

QUAD ENERGY CORP., a corporation organized under the laws of the State of Nevada having a principal office located at 3208 East Colonial Drive, Suite 277, Orlando, Florida 32893

(hereinafter referred to as “QUAD”)

 

AND:

 

	
Robin Hood LLC, a limited liability company organized under the laws of the State of New Mexico and having a registered address at P.O. Box 1089, Hobbs, New Mexico, 88241

 

(hereinafter referred to as “ROBIN HOOD”)

 

WHEREAS QUAD desires to purchase and acquire from ROBIN HOOD and ROBIN HOOD desires to sell and assign to QUAD 100% of ROBIN HOOD’s right, title and interest in and to those certain oil and gas leases located in the State of New Mexico, known as the Double X Leases, as more fully and particularly described in Schedule A and Exhibit A attached hereto (the “Leases”);

WHEREAS QUAD desires to purchase and acquire from ROBIN HOOD and ROBIN HOOD desires to sell to QUAD 100% of ROBIN HOOD's right, title and interest in and to all materials, supplies, machinery, equipment, improvements and other personal property and fixtures relating to the Leases (the “Equipment and Fixtures”), and all wells, wellhead equipment, pumping units, flow lines, tanks, buildings, injection facilities, salt water disposal facilities, compression facilities, gathering systems and other equipment, all easements, rights-of-way, surface leases and other surface rights, all permits and licenses and all other appurtenances used or held for use in connection with or related to the exploration, development, operation or maintenance of any of the Leases (the “Surface Rights”);

 

WHEREAS, the parties desire to enter into this Agreement to set forth their mutual agreements concerning the above matter;

 

NOW, THEREFORE, in consideration of the mutual promises of the parties hereto, and of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually agreed by and between the parties hereto as follows:

 

ARTICLE 1

SALE AND TRANSFER OF ASSETS

1.1         Sale of Assets. Subject to the terms and conditions of this Agreement and in reliance upon the representations, warranties, covenants and agreements contained herein, at the closing of the transactions contemplated hereby, ROBIN HOOD will sell, convey, assign and transfer 100% of its right, title and interest in and to the Leases, Equipment and Fixtures and Surface Rights (collectively referred to in this agreement as the “Assets”), and QUAD will purchase and acquire 100% of ROBIN HOOD’s right, title and interest in and to the Assets from ROBIN HOOD.

  

  

  

1.2         Consideration.  

	
  

	
(a)

	
Purchase Price.  In consideration of the sale, transfer and assignment to QUAD of 100% of ROBIN HOOD’s right, title and interest in and to the Assets, QUAD shall pay a purchase price consisting of:

	
(i)  

	
Cash payment of up to $127,320.19 as of December 31, 2012 being an amount equal to the unpaid royalties ROBIN HOOD owes to BLM related to the Assets, plus interest accrued on such royalties through the Closing Date, to be paid on the Closing Date;

	
(ii)  

	
Cash payments in an amount equal to the difference between $803,000 and the amount paid in 1.2(a)(i) above (such difference being approximately $675,680) paid in 44 monthly payments of $15,000 each without interest, beginning on the a date that is 3 months after the Closing Date, and a final payment of the balance on the date that is 48 months after the Closing Date, until paid in full; and

	
(iii)  

	
Delivery on the Closing Date of 24,000,000 shares of restricted common stock of QUAD valued at $0.07 per share or, at the option of QUAD, delivery MULI restricted common stock having an equivalent value.

	
  

	
(b)

	
Assumption of liability for cleanup. As further consideration, and in addition to the above, QUAD assumes all responsibility and liability for any cleanup associated with the Assets.

	
  

	
(c)

	
Risks Related to Hazardous Materials. QUAD shall assume all risks that the property underlying the Assets may contain waste materials or other adverse physical conditions, including, but not limited to, the presence of unknown abandoned oil and gas wells, water wells, sumps, pits, pipelines or other waste or spill sites. At the Closing Date, all responsibility and liability related to all such conditions, whether known or unknown, fixed or contingent, will be transferred from ROBIN HOOD to QUAD.

	
  

	
(d)

	
Payment of Operating Expenses. QUAD shall assume and make payment on behalf of ROBIN HOOD of any and all operating costs associated with the Assets.

1.3         Bankruptcy Court Approval.  , This Agreement shall be presented for approval in the United States Bankruptcy Court, District of New Mexico, Case No. 11-11912, as part of the Chapter 11 Plan of ROBIN HOOD.  Confirmation of the Chapter 11 Plan of ROBIN HOOD shall constitute approval of this Agreement and authorization for ROBIN HOOD to sell the Assets free and clear of any and all liens or interests, except for those security interests provided at Paragraph 1.5 below.

1.4         The Closing.  The transfer and delivery of the documents transferring 100% of the right, title and interest of ROBIN HOOD in the Assets to QUAD, QUAD’s payment of the initial cash payment referred to in paragraph 1.2(a)(i) above, and issuance of stock by QUAD to ROBIN HOOD (the “Closing”) will take place on a date that is not later than ninety (90) days after the Order by the United States Bankruptcy Court confirming the Chapter 11 Plan of ROBIN HOOD becomes final and non-appealable and on such date as is mutually acceptable to ROBIN HOOD and QUAD (the “Closing Date”)

 

  

  

  

1.5         Security.  At the Closing on the Closing Date, as security for the payment for the cash payments as set forth in Articles 1.2(a) and (ii) above, Quad shall grant to ROBIN HOOD a security interest in and to the Assets by way of mortgage, security agreement or other document typical for the taking of security in assets of the nature of the Assets in a form registerable in such government offices and registries as are typical for the registration of such mortgage, security agreement or other document typical for the taking of security in assets of the nature of the Assets.

1.6         Deliveries.  At the Closing on the Closing Date:

 

	
  

	
(a)

	
ROBIN HOOD shall deliver to QUAD executed and duly acknowledged assignments conveying 100% of the right, title and interest of ROBIN HOOD to the Assets to QUAD;

	
  

	
(b)

	
ROBIN HOOD and QUAD shall each execute and deliver such other instruments and take such other action as may be necessary to carry out their respective obligations under this Agreement; including, without limitation, working together to cause the title to any assets to be transferred under this Agreement into the name of QUAD in the applicable governmental records, and executing such documents as necessary to document and perfect the security interest described in Paragraph 1.5.

ARTICLE 2

TITLE

2.1         QUAD acknowledges that it has been fully and sufficiently advised by its own advisors and legal counsel, independent of ROBIN HOOD, regarding the extent of required cleanup and assumption of liabilities under Article 1.2 above and the requirements of the State of New Mexico regarding that cleanup and liability.  QUAD acknowledges that it likewise has been fully and sufficiently advised regarding required regulatory approvals, approval of relevant divisions with the State of New Mexico, regarding required filings or registrations, authorizations, notices and permits, consents, and approvals of public or governmental bodies, authority or other person or entity that may be necessary for the consummation of the transactions contemplated by this Agreement.

 

  

  

  

 

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF ROBIN HOOD

 

3.1         ROBIN HOOD represents and warrants to QUAD as follows as of the date hereof and as of the Closing Date:

 

	
  

	
(a)

	
Organization.  ROBIN HOOD is a limited liability company duly organized, validly existing and in good standing under the applicable laws of the State of New Mexico.  ROBIN HOOD is as of the date of this Agreement a debtor-in-possession in Bankruptcy Case 11-11912JA, United States Bankruptcy Court for the District of New Mexico, who continues to operate under the provisions of 11 U.S.C. §§ 1107 and 1108.

 

	
  

	
(b)

	
Power and Authority.  Subject to receiving bankruptcy court approval through confirmation of its Chapter 11 Plan, above, ROBIN HOOD has the power and authority to execute, deliver, and perform this Agreement and the other agreements and instruments to be executed and delivered by them in connection with the transactions contemplated hereby, and upon bankruptcy court approval, ROBIN HOOD will take all necessary action to authorize the execution and delivery of this Agreement and such other agreements and instruments and the consummation of the transactions contemplated hereby.

 

	
  

	
(c)

	
Non-Contravention. To ROBIN HOOD’s knowledge, the execution, delivery and/or performance of this Agreement, or the consummation of the transactions contemplated hereby, will not violate any provision of the articles or bylaws of ROBIN HOOD or violate any order, writ, injunction, decree, statute, rule, or regulation of any court or governmental or regulatory agency in the State of New Mexico that would result in a material adverse effect.

	
  

	
(d)

	
Title to Assets, Sale to QUAD is Free and Clear of Liens except as stated in Paragraph 1.5 above, with any other liens or interests attaching to proceeds. ROBIN HOOD has, or as of the Closing Date ROBIN HOOD shall have, an Order from the United States Bankruptcy Court, District of New Mexico, confirming the Chapter 11 Plan of Robin Hood, such Order providing that QUAD has purchased the assets in this agreement free and clear of all liens, claims, charges, security interests or encumbrances of any source whatsoever, including any claims of the United States Internal Revenue Service, Bureau of Land Management, Office of Natural Resources Revenue (ONRR) or the State of New Mexico Taxation and Revenue Department, except for that Security Interest provided in Paragraph 1.5 above, that any other existing liens or interests shall attach to the proceeds of sale, and that QUAD shall bear no liability for any obligations of ROBIN HOOD in the ROBIN HOOD chapter 11 bankruptcy case other than purchase price and cleanup obligations as set forth in Paragraph 1.2 hereof.

 

  

  

  

 

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF QUAD

4.1         To induce ROBIN HOOD to execute, deliver and perform this Agreement, and in acknowledgement of ROBIN HOOD’s reliance on the following representations and warranties, QUAD hereby represents and warrants to ROBIN HOOD as follows as of the date hereof and as of the Closing Date:

 

	
  

	
(a)

	
Organization.  QUAD is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Nevada, with the power and authority to conduct its business as it is now being conducted and to own and lease its properties and assets.

	
  

	
(b)

	
Power and Authority.  QUAD has the power and authority to execute, deliver, and perform this Agreement and the other agreements and instruments to be executed and delivered by it in connection with the transactions contemplated hereby, and the execution, delivery and performance of the Agreement by QUAD has been duly authorized by QUAD and by any agency, government entity, or other body required to provide such authority.  This Agreement is, and, when such other agreements and instruments are executed and delivered, the other agreements and instruments to be executed and delivered by QUAD in connection with the transactions contemplated hereby shall be, the valid and legally binding obligations of the Purchaser, enforceable in accordance with their respective terms.

 

	
  

	
(c)

	
Broker’s or Finder’s Fees.  QUAD has not authorized any person to act as broker, finder, or in any other similar capacity in connection with the transactions contemplated by this Agreement.

 

	
  

	
(d)

	
No Conflict.  Neither the execution and delivery by QUAD of this Agreement and of the other agreements and instruments to be executed and delivered by QUAD in connection with the transactions contemplated hereby or thereby, nor the consummation by QUAD of the transactions contemplated hereby, will or do violate or conflict with: (a) any foreign or local law, regulation, ordinance, governmental restriction, order, judgment or decree applicable to QUAD; (b) any provision of any charter, bylaw, or (c) under any material agreement to which QUAD is a party.

 

	
  

	
(e)

	
Required Consents.  No permit or approval, authorization, consent, permission, or waiver to or from any person, or notice, filing, or recording to or with, any person is necessary for the execution and delivery of this Agreement and the other agreements and instruments to be executed and delivered by QUAD in connection with the transactions contemplated hereby, or the consummation by QUAD of the transactions contemplated hereby.

	
  

	
(f)

	
Litigation.  There are no proceedings pending or, to the knowledge of the Purchaser, threatened against QUAD which (i) seek to restrain or enjoin the consummation of the Agreement or the transactions contemplated hereby or (ii) could reasonably be expected to have a material adverse effect on QUAD or its abilities to perform its obligations under the Agreement and the other agreements and instruments to be executed and delivered by QUAD in connection with the transactions contemplated hereby.

	
  

	
(g)

	
Assignment Permitted. ROBIN HOOD is aware, and was advised earlier, that QUAD is contemplating a merger or other such transaction with Multicorp International (“MULI”) under which its control shall pass to MULI.  Provided that MULI’s agreement to be a party to this agreement is disclosed to counsel to ROBIN HOOD prior to Closing, it shall be novated into this agreement and shall enjoy all rights and benefits of this agreement and shall be subject to all terms of obligations imposed on QUAD hereunder.

  

  

  

	
  

	
 ARTICLE 5

CONDITIONS TO ROBIN HOOD’S OBLIGATIONS

 

5.1         Each of the obligations of ROBIN HOOD to be performed hereunder shall be subject to the satisfaction (or waiver by ROBIN HOOD) at or prior to the Closing Date of each of the following conditions:

	
  

	
(a)

	
Representations and Warranties; Performance.  QUAD shall have performed and complied in all respects with the covenants and agreements contained in this Agreement required to be performed and complied with by it at or prior to the Closing Date, the representations and warranties of QUAD set forth in this Agreement shall be true and correct in all respects as of the date hereof and as of the Closing Date as though made at and as of the Closing Date (except as otherwise expressly contemplated by this Agreement), and the execution and delivery of this Agreement by QUAD and the consummation of the transactions contemplated hereby shall have been duly and validly authorized by the Purchaser’s Board of Directors, and ROBIN HOOD shall have received a certificate to that effect signed by the secretary of the Purchaser.

 

	
  

	
(b)

	
Consents.  All required approvals, consents and authorizations shall have been obtained.

 

	
  

	
(c)

	
Litigation.  No Litigation shall be threatened or pending against QUAD or ROBIN HOOD that, in the reasonable opinion of counsel for ROBIN HOOD, could result in the restraint or prohibition of any such party, or the obtaining of damages or other relief from such party, in connection with this Agreement or the consummation of the transactions contemplated hereby.

 

	
  

	
(d)

	
Documents Satisfactory in Form and Substance.  All agreements, certificates, and other documents delivered by QUAD to ROBIN HOOD hereunder shall be in form and substance satisfactory to counsel for ROBIN HOOD, in the exercise of such counsel’s reasonable judgment.

 

	
  

	
(e)

	
Court Approval.  ROBIN HOOD shall have received the Court Approval contemplated in Article 1.3 hereof.

 

  

  

  

ARTICLE 6

CONDITIONS TO QUAD’S OBLIGATIONS

6.1         Each of the obligations of QUAD to be performed hereunder shall be subject to the satisfaction (or the waiver by QUAD) at or prior to the Closing Date of the following conditions:

 

	
  

	
(a)

	
Representations and Warranties; Performance.  ROBIN HOOD shall have performed and complied in all respects with the covenants and agreements contained in this Agreement required to be performed and complied with by it at or prior to the Closing Date, the representations and warranties of ROBIN HOOD set forth in this Agreement shall be true and correct in all respects as of the date hereof and as of the Closing Date as though made at and as of the Closing Date (except as otherwise expressly contemplated by this Agreement), and the execution and delivery of this Agreement by ROBIN HOOD and the consummation of the transactions contemplated hereby shall have been duly and validly authorized by the ROBIN HOOD’S Manager and Members and the United States Bankruptcy Court, District of New Mexico, and QUAD shall have received a certificate to that effect signed by the Manager of ROBIN HOOD.

	
  

	
(b)

	
Consents.  All required approvals, consents and authorizations shall have been obtained, and an Order authorizing this sale shall have been signed and entered by the United States Bankruptcy Court, District of New Mexico.

 

	
  

	
(c)

	
No Litigation.  No Litigation shall be threatened or pending against QUAD or ROBIN HOOD that, in the reasonable opinion of counsel for the QUAD, could result in the restraint or prohibition of any such party, or the obtaining of damages or other relief from such party, in connection with this Agreement or the consummation of the transactions contemplated hereby.

	
  

	
(d)

	
Documents Satisfactory in Form and Substance.  All agreements, certificates, and other documents delivered by ROBIN HOOD to QUAD hereunder shall be in form and substance satisfactory to counsel for ROBIN HOOD, in the exercise of such counsel’s reasonable judgment.

 

	
  

	
(e)

	
Due Diligence.  QUAD shall have until December 31, 2012, to complete its due diligence review of ROBIN HOOD and the Assets and shall have been satisfied with the findings thereof.

	
  

	
(e)

	
Title Matters.  QUAD shall have completed its review of title to the Assets, including all encumbrances and liens relating thereto and shall have been satisfied, in its sole and unfettered discretion, with the findings thereof.

 

  

  

  

ARTICLE 7

POST-CLOSING COVENANTS OF ROBIN HOOD AND QUAD

7.1         Transfer, Documentary Taxes.

 

All sales, transfer, and similar taxes and fees (including all recording fees, if any) incurred in connection with this Agreement and the transactions contemplated hereby shall be borne by ROBIN HOOD and ROBIN HOOD shall file all necessary documentation with respect to such taxes.

7.2         Further Assurances.  Subject to the terms and conditions of this Agreement, each party agrees to use all of its reasonable efforts to take, or cause to be taken, all actions and to do or cause to be done, all things necessary and proper or advisable to consummate and make effective the transactions contemplated by this Agreement (including the execution and delivery of such further instruments and documents) as the other party may reasonably request.

 

ARTICLE 8

SURVIVAL AND INDEMNITY

8.1         Indemnification by QUAD.  QUAD shall indemnify, defend, and hold harmless ROBIN HOOD, and its representatives from and against any and all demands, claim, actions, or causes of action, assessments, losses, damages (including incidental and consequential damages), liabilities, costs, and expenses, including reasonable fees and expenses of counsel, other expenses of investigation, handling, and litigation , and settlement amounts, together with interest and penalties (collectively, a “Loss” or “Losses”), asserted against, resulting to, imposed upon, or incurred by ROBIN HOOD, directly or indirectly, by reason of, resulting from, or arising in connection with: (i) any breach of any representation, warranty, or agreement of QUAD contained in or made pursuant to this Agreement, including the agreements and other instruments contemplated hereby; (ii) any breach of any representation, warranty, or agreement of either party contained in or made pursuant to this Agreement, including the agreements and other instruments contemplated hereby, as if such representation or warranty were made on and as of the Closing Date; (iii) any claim by any person for brokerage or finder’s fees or commissions or similar payments based upon any agreement or understanding alleged to have been made by any such person with either party in connection this Agreement or any of the transactions contemplated hereby; and (iv) to the extent not covered by the foregoing, any and all demands, claims, actions or causes of action, assessments, losses, damages, liabilities, costs, and expenses, including reasonable fees and expenses of counsel, other expenses of investigation, handling, and litigation and settlement amounts, together with interest and penalties, incident to the foregoing.

 

The remedies provided in this Article 8 will not be exclusive of or limit any other remedies that may be available to the either party to this Agreement.

 

  

  

  

 

 

ARTICLE 9

TERMINATION

 

9.1         Termination.  This Agreement may be terminated at any time prior to the Closing Date:

 

(a)         by mutual written consent of ROBIN HOOD and QUAD;

 

	
  

	
(b)

	
by either ROBIN HOOD or QUAD if (i) there shall have been a material breach of any representation, warranty, covenant or agreement set forth in this Agreement, which breach shall not have been cured, in the case of a representation or warranty, prior to Closing or, in the case of a covenant or agreement, within ten (10) business days following receipt by the breaching party of notice of such breach, or (ii) any permanent injunction or other order of a court or other competent authority preventing the consummation of the transactions contemplated hereby shall have become final and non-appealable;

	
  

	
(c)

	
in the event that the United States Bankruptcy Court does not confirm a Chapter 11 Plan of Robin Hood that includes this Agreement as an essential part thereof.

 

9.2         Effect of Termination.  Each party’s right of termination under Section 9.1 is in addition to any other rights it may have under this Agreement or otherwise, and the exercise of a right of termination will not be an election of remedies.  If this Agreement is terminated pursuant to Section 9.1, unless otherwise specified in this Agreement, all further obligations of the parties under this Agreement will terminate; provided, however, that if this Agreement is terminated by a party because of the breach of this Agreement by the other party or because one or more of the conditions to the terminating party’s obligations under this Agreement is not satisfied as a result of the other party’s failure to comply with its obligations under this Agreement, the terminating party’s rights to pursue all legal remedies will survive such termination unimpaired.

 

ARTICLE 10

MISCELLANEOUS

 

10.1         Entire Agreement.  This Agreement, and the other documents and instruments to be executed and delivered by the parties in connection with this Agreement, constitute the sole understanding of the parties with respect to the subject matter hereof and supersede all prior oral or written agreements with respect to the subject matter hereof.

 

10.2         Parties Bound by Agreement; Successors and Assigns.  The terms, conditions, and obligations of this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.

10.3         Amendments and Waivers.  No modification, termination, extension, renewal or waiver of any provision of this Agreement shall be binding upon a party unless made in writing and signed by such party.  A waiver on one occasion shall not be construed as a waiver of any right on any future occasion.  No delay or omission by a party in exercising any of its rights hereunder shall operate as a waiver of such rights.

 

  

  

  

10.4         Severability.  If for any reason any term or provision of this Agreement is held to be invalid or unenforceable, all other valid terms and provisions hereof shall remain in full force and effect, and all of the terms and provisions of this Agreement shall be deemed to be severable in nature.  

 

10.5         Attorneys’ Fees.  Should any party hereto retain counsel for the purpose of enforcing, or preventing the breach of, any provision hereof to enforce any provision hereof or for damages for any alleged breach of any provision hereof, including but not limited to enforcement of the Security Interest provided in Paragraph 1.5 above, or for a declaration of such party’s rights or obligations hereunder, then, whether such matter is settled by negotiation, or by arbitration or judicial determination, the prevailing party shall be entitled to be reimbursed by the losing party for all costs and expenses incurred thereby, including, but not limited to, reasonable attorneys’ fees for the services rendered to such prevailing party.

 

10.6         Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original and all of which shall constitute the same instrument.

 

10.7         Headings.  The headings of the sections and paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction hereof.

 

10.8         Notices.  All notices, requests, demands, claims, and other communications which are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given five business days after such notice, request, demand, claim or other communication is sent, if sent by registered or certified mail, return receipt requested, postage prepaid; and, in any case, all such communications must be addressed to the intended recipient at the address set forth on the first page of this Agreement.  Any party may send any notice, request, demand, claim, or other communication hereunder to the intended recipient at the address set forth above using any other means, but no such notice, request, demand, claim, or other communication shall be deemed to have been duly given unless and until it actually is received by the intended recipient. Any party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other party notice in the manner herein set forth.

 

10.9         Governing Law.  This Agreement shall be construed in accordance with and governed by the laws of the State of New Mexico without giving effect to the principles of choice of law thereof.

 

10.10                 References, etc.

 

	
  

	
(a)

	
Whenever reference is made in this Agreement to any Article, Section, or paragraph, such reference shall be deemed to apply to the specified Article, Section or paragraph of this Agreement.

 

	
  

	
(b)

	
Any form of the word “include” when used herein is not intended to be exclusive (e.g., “including” means “including, without limitation”).

 

  

  

  

10.11                 No Third Party Beneficiary Rights.  Subject to paragraph 4.1(g) hereof, no provision in this Agreement is intended or shall create any rights with respect to the subject matter of this Agreement in any third party.

10.12                 Such Other Acts.  The parties hereto shall do all things, take such acts and execute such documents as are necessary to give effect to the intention herein contemplated.

 

10.13                 Electronic Means.  Delivery of an executed copy of this Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Agreement as of the date first indicated above.

 

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed on its behalf as of the date first indicated above.

	  
QUAD ENERGY INC.,

a Nevada corporation

	 	  
ROBIN HOOD LLC,

a New Mexico limited liability company

	 
	
By:                                           

	 	
By:                                   

	 
	
Name and Title:

	 	
Name and Title:

	 

  

  

  

SCHEDULE A

DESCRIPTION OF LEASES

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