Document:

Employment Agreement

EMPLOYMENT AGREEMENT

AGREEMENT made as of this 1st day of June 2015 (“Effective Date”) by and between GULF & WESTERN INDUSTRIES, INC. (“Gulf & Western”), a Nevada Corporation with a registered office address of 3301 Jarbidge Way, Sparks, Nevada 89434 and W. PIERCE CARSON (“Carson”), an individual with an address of P.O. Box 831, Cedar Crest, New Mexico 87008. 

WITNESSETH:

In consideration of the mutual covenants and agreements herein contained, the parties hereby agree as follows:

1.  Employment.  Gulf & Western hereby employs Carson and Carson accepts such employment, for the Term (as defined below), with the duties and compensation and upon the terms and conditions hereinafter set forth in this Agreement.

2.  Term.  The term (“Term”) of Carson’s employment shall commence on June 1, 2015 and shall continue through and including May 31, 2016, unless earlier terminated as herein provided for in this Agreement.  Prior to expiration of the Term, Gulf & Western and Carson may agree to extend the Term under new terms of compensation and conditions of employment, it being agreed that any such extension must be in writing signed by both parties. 

3.  Duties. 

(a)  Carson shall be the President and Chief Executive Officer (“CEO”) of Gulf & Western during the Term and shall perform the services as set forth in Gulf & Western’s bylaws and as Gulf & Western’s Board of Directors (“Board”) shall direct, which services shall be commensurate with Carson’s status as CEO of Gulf & Western.  Carson shall perform his services subject only to the direction and control of the Board and will report only to the Board. 

(b)  During the Term, Carson shall devote at least half and up to substantially all of his working time and attention to the business and affairs of Gulf & Western as may be required to fulfill the duties of CEO, provided however that the Company acknowledges that Carson shall have the right to be a director or officer of other corporations not affiliated with Gulf & Western and that a portion of his time will be devoted to those other activities; provided that Carson’s positions and activities for such other corporations shall not be in conflict  with the interests of Gulf & Western. Should a potential conflict arise, Carson shall discuss such potential conflict with the Board and shall obtain the consent of the Board in writing before proceeding with such positions or activities.

(c)

Upon execution of this Agreement, Carson shall be appointed as a director of Gulf & Western and shall devote such time and attention to the affairs of Gulf & Western as may be required to fulfill the duties of director. Carson shall not be entitled to any additional compensation for his services as director, and Carson’s service as a director shall terminate upon the termination of this agreement unless otherwise agreed in writing by Gulf & Western.

(d) 

Carson shall at all times conduct himself in a manner consistent with his duty of loyalty to Gulf & Western and shall present all opportunities that may fit Gulf & Western’s corporate objectives of which he becomes aware during the Term. 

(e) 

Carson shall provide the Board with a confidential list of up to twelve mineral opportunities that may potentially fit Gulf & Western’s corporate objectives of which he became aware prior to the Term. Gulf & Western shall have a right to elect to pursue selected opportunities on reasonable terms of compensation to be agreed with Carson. Carson shall be free to pursue for his own account any opportunities Gulf & Western determines not to pursue, and also shall be free to pursue any opportunities that do not fall within Gulf & Western’s corporate objectives. 

 

4.  Compensation.  The Company and Gulf & Western shall compensate Carson for his services during the Term in the form of stock in Gulf & Western and shall, contemporaneously herewith, issue to Carson restricted common stock such that following such new issue Carson owns fifteen percent (15%) of the outstanding stock in Gulf & Western. Although issued contemporaneously herewith, Gulf & Western shall not be required to certificate Carson’s stock until May 31, 2016. On or before May 31, 2016, Gulf & Western shall deliver the subject stock certificate(s) to Carson. Carson’s stock shall be subject to “lock up” and sale restrictions as provided in Section 9. Carson shall be solely responsible for paying any local, state or federal payroll taxes levied as a result of the issuance of the stock as compensation and agrees to indemnify and hold harmless Gulf & Western from any liability therefore.

5.  Expenses.  Gulf & Western will pay or reimburse Carson within 30 days for all travel and other expenses reasonably incurred by Carson during the Term in connection with the performance of his duties hereunder upon presentment of written expense receipts reflecting such expenses. Carson shall in advance incorporate estimated expenses in project budgets to be coordinated with the Board.

6.  Discharge for Cause.  The Board of Directors of Gulf & Western may discharge Carson For Cause at any time.  Such discharge shall be effected by written notice to Carson which shall specify the reasons for Carson’s discharge and the effective date thereof.  As used herein, the term “For Cause” shall mean only chronic alcoholism, drug addiction, criminal dishonesty or willful violation of direct written instructions from the Board relating to a material matter which directions are consistent with all applicable laws, rules and regulations and orders to which Carson or Gulf & Western are subject and the provisions of this Agreement unless cured within ten (10) days after notice.  Upon 

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termination of Carson’s employment as provided for in this Section 6, Carson shall forfeit that portion of the stock issued to him pursuant to Section 4 prorated from the date of termination to the end of the Term.

7.  Voluntary Termination by Carson.  Carson shall have the right to voluntarily terminate his employment with Gulf & Western during the Term. To effect such voluntary termination, Carson shall provide Gulf & Western at least 60 days advanced written notice of such termination. Upon termination of Carson’s employment as provided for in this Section 7, Carson shall forfeit that portion of the stock issued to him pursuant to Section 4 prorated from the date of termination to the end of the Term.

8.  Indemnification.  Gulf & Western shall indemnify Carson to the fullest extent permitted by law and the certificate of incorporation and bylaws of Gulf &Western from and against any loss, claim, liability and/or expense incurred for, or by reason of, or arising out of, acts of Carson as an officer and/or director of Gulf & Western or affiliated company or subsidiary.   

9.  Sale of Carson’s Gulf & Western Stock.  Carson covenants with Gulf & Western that until the earlier of May 31, 2017 or his termination of employment with Gulf & Western, he shall “lock up” and not sell any of his stock. Carson further covenants that after the above “lock up” provision no longer applies, if he intends to sell stock he shall first offer to sell such stock to Gulf & Western and to the major shareholders of Gulf & Western.

10.  Dispute Resolution.  Any controversy or claim arising out of or relating to this Agreement and the obligations and responsibilities of the parties hereto or the breach or alleged breach by any of the parties of their respective obligations hereunder shall be settled by arbitration in the city of Denver, Colorado by one arbitrator in accordance with the then governing Rules of the American Arbitration Association.  The written decision of the arbitrator shall be final and binding upon Magellan, Gulf & Western and Carson.  Judgment upon the award rendered may be entered and enforced in any court of competent jurisdiction.  Notwithstanding the above, any party shall be entitled to seek and obtain injunctive or similar relief from a court of competent jurisdiction where appropriate pending arbitration.  The parties hereby submit to the exclusive jurisdiction of the courts of the State of Colorado or Federal Courts situated in Denver County, Colorado for such purpose and for purposes of enforcing any arbitration award.  Gulf & Western shall pay all legal fees and expenses reasonably incurred by Carson in good faith as a result of any claim or arbitration arising from this Agreement.

11.  Miscellaneous.

            

(a)  This Agreement contains the entire understanding between the parties hereto concerning the subject matter hereof.  Only an instrument in writing executed by the parties hereto may amend this Agreement.

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(b)  This Agreement shall be construed and enforced in accordance with the laws of the State of Colorado.

(c)  This Agreement and the rights and obligations of the parties hereto shall bind and inure to the benefit of the successor or successors of Gulf & Western whether by merger, consolidation or otherwise.

(d)  Any notice to be given pursuant to the terms of this Agreement shall be in writing and delivered by hand or sent by registered or certified mail to such party at such party’s address set forth above or to such other address or to the attention of such other person as any party has specified by prior written notice to the other party.

(e)  A party’s waiver of a breach of this Agreement by any other party shall not operate or be construed as a waiver of any subsequent breach of this Agreement by such other party.  No waiver shall be valid unless in writing and signed respectively by an authorized officer of Gulf & Western and Carson.

(f)  Carson acknowledges that his services are unique and personal.  Accordingly, Carson shall not assign his rights or delegate his duties or obligations under this Agreement.  

(g)  Headings in this Agreement are for convenience only and shall not be used to interpret or construe its provisions.

(h)  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement.

            IN WITNESS WHEREOF, Magellan and Gulf & Western have caused this Agreement to be executed by its officers thereunto duly authorized, and Carson has executed this Agreement all as of the dates set forth below..          

GULF & WESTERN INDUSTRIES, INC.

/s/ John C. Power________________________

John C. Power

June 8, 2015

President and Director

W. PIERCE CARSON

/s/ W. Pierce Carson______________________

W. Pierce Carson

June 8, 2015

4exh_41.htm

Exhibit 4.1

 

EXECUTION VERSION

 

Third Supplemental Indenture (this “Supplemental Indenture”), dated as of June 8, 2015 among Consolidated Communications Holdings, Inc., a Delaware corporation (“Holdings”), Consolidated Communications, Inc., an Illinois corporation and a wholly owned subsidiary of Holdings (as successor by way of merger with Consolidated Communications Finance II Co. (the “Initial Issuer”), the “Company”), and the guarantors listed on the signature page hereto (together with Holdings, the “Guarantors”), and Wells Fargo Bank, National Association, a national banking association (or its permitted successor), as trustee under the Indenture referred to below (the “Trustee”).  Capitalized terms used herein without definition shall have the meanings ascribed to them in the Indenture.

W I T N E S S E T H

WHEREAS, the Initial Issuer,  and the Trustee have heretofore executed and delivered an original indenture, dated as of September 18, 2014 (the “Original Indenture”), providing for the initial issuance by the Company of $200,000,000 aggregate principal of its 6.50% Senior Notes due 2022 (the “Existing Notes”) on September 18, 2014;

WHEREAS, the Company as successor by way of merger to the Initial Issuer, assumed all obligations of the Initial Issuer under the Existing Notes and the Original Indenture pursuant to that certain first supplemental indenture dated October 16, 2014 (the “First Supplemental Indenture”), and certain Guarantors guaranteed all of the Company’s obligations under the Existing Notes, the Original Indenture and the First Supplemental Indenture, pursuant to a second that certain second supplemental indenture dated November 14, 2014 (together with the First Supplemental Indenture, and the Original Indenture, the “Indenture”);

WHEREAS, Sections 2.02 and 4.09 of the Indenture provide for the issuance from time to time of Additional Notes by the Company without notice to or consent of Holders;

WHEREAS, the Company desires to issue $300,000,000 aggregate principal amount of Additional Notes on the date hereof (the “Additional 2022 Notes”);

WHEREAS, pursuant to the terms of the Indenture, the Additional 2022 Notes shall rank pari passu and be consolidated with, and form a single class with, the Existing Notes; and

WHEREAS, the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel and all covenants and conditions precedent provided for in the Indenture relating to the execution of this Supplemental Indenture and the authentication of the Additional 2022 Notes have been satisfied, pursuant to Section 9.01(viii) and Section 2.02 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture without the consent of the Holders and authenticate the Additional 2022 Notes, respectively.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Company, the Guarantors and the Trustee mutually covenant and agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders as follows:

ARTICLE 1

DEFINITIONS

Section 1.1   Defined Terms.  As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recitals hereto are used herein as therein defined.  The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

  

  

  

ARTICLE 2

ADDITIONAL NOTES

Section 2.1   Additional Notes.  Pursuant to this Supplemental Indenture, the Additional 2022 Notes are hereby created and established under the Indenture, and shall constitute “Additional Notes” thereunder, and are being issued by the Company on the date hereof in an aggregate principal amount of $300,000,000, which shall increase the aggregate principal amount of, and shall form part of the same series as, the Existing Notes.  The Additional 2022 Notes issued hereunder shall rank pari passu and be consolidated with and form a single class with the Existing Notes, shall have the same terms as the Existing Notes (except for issue date, issue price, the first interest payment date and the initial interest accrual date and except that Additional 2022 Notes issued pursuant to Regulation S will have a separate CUSIP/ISIN number until 40 days after the date hereof, but thereafter any Holders may transfer such Additional 2022 Notes issued pursuant to Regulation S into the same CUSIP as the Existing Notes issued pursuant to Regulation S) for all purposes under the Indenture and the Additional 2022 Notes and the Existing Notes will vote as one class for all purposes under the Indenture, as supplemented by this Supplemental Indenture.  Unless the context requires otherwise, references to “Notes” for all purposes under the Indenture, as supplemented by this Supplemental Indenture, shall include the Additional 2022 Notes.  The Additional 2022 Notes shall be issued in global form in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof in substantially the form of Exhibit A of the Indenture.

ARTICLE 3

MISCELLANEOUS

Section 3.1   Execution and Delivery.  This Supplemental Indenture shall be effective upon execution by the parties hereto.

Section 3.2   Ratification of Indenture; Supplemental Indentures Part of Indenture.  Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

Section 3.3   Severability.  In case any provision in this Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability.

Section 3.4   Governing Law.  THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.

Section 3.5   Waiver of Jury Trial.  EACH OF THE COMPANY, THE GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE, THE INDENTURE, THE NOTES, THE NOTE GUARANTEES OR THE TRANSACTIONS CONTEMPLATED HEREBY.

Section 3.6   Counterparts.  The parties may sign any number of copies of this Supplemental Indenture (including by electronic transmission).  Each signed copy shall be an original, but all of them together represent the same agreement.  The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

  

  

  

Section 3.7   Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

Section 3.8   Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture, the Additional 2022 Notes or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guarantors and the Company.  The Trustee shall not be accountable for the use or application by the Company of the Additional 2022 Notes or the proceeds thereof.  In entering into this Supplemental Indenture, the Trustee shall be entitled to the benefit of every provision of the Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee, including its right to be compensated, reimbursed and indemnified, whether or not elsewhere herein so provided.

 

[SIGNATURE PAGES FOLLOWS]

 

 

 

 

 

 

 

 

 

 

 

 

 

  

  

  

 

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

 

	  	
CONSOLIDATED COMMUNICATIONS, INC.

	  	
CONSOLIDATED COMMUNICATIONS

	  	
HOLDINGS, INC., as a Guarantor

	  	
CONSOLIDATED COMMUNICATIONS

	  	
OF TEXAS COMPANY, as a Guarantor

	  	
CONSOLIDATED COMMUNICATIONS

	  	
OF FORT BEND COMPANY, as a Guarantor

	  	
CONSOLIDATED COMMUNICATIONS

	  	
SERVICES COMPANY, as a Guarantor

	  	
CONSOLIDATED COMMUNICATIONS

	  	
ENTERPRISE SERVICES, INC., as a Guarantor

	  	
CONSOLIDATED COMMUNICATIONS

	  	
OF PENNSYLVANIA COMPANY, LLC, as a Guarantor

	  	
SUREWEST COMMUNICATIONS, as a Guarantor

	  	
SUREWEST TELEPHONE, as a Guarantor

	  	
SUREWEST LONG DISTANCE, as a Guarantor

	  	
SUREWEST TELEVIDEO, as a Guarantor

	  	
SUREWEST FIBER VENTURES LLC, as a Guarantor

	  	
SUREWEST KANSAS, INC., as a Guarantor

	  	
ENVENTIS CORPORATION, as a Guarantor

	  	
Cable Network, Inc., as a Guarantor

	  	
Crystal Communications, Inc., as a Guarantor

	  	
Enventis Telecom, Inc., as a Guarantor

	  	
Heartland Telecommunications Company of Iowa, Inc., as a Guarantor

	  	
Mankato Citizens Telephone Company, as a Guarantor

	  	
Mid-Communications, Inc., as a Guarantor

	  	
National Independent Billing, Inc., as a Guarantor

	  	
Ideaone Telecom, Inc., as a Guarantor

	  	
Enterprise Integration Services, Inc., as a Guarantor

	  	  	  	  	  
	  	
By:

	
  /s/ Steven L. Childers

	  
	  	  	
Name:

	
Steven L. Childers

	  	  	
Title:

	
Chief Financial Officer

	  	  	  	  	  
	  	  	  	  	  
	  	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee

	 	 
	  	
By:

	
  /s/ Julius R. Zamora

	  
	  	  	
Name:

	
Julius R. Zamora

	  	  	
Title:

	
Vice President

 

 

 

[Signature Page to Third Supplemental Indenture]

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