Document:

Exhibit

Execution Version

	
					
	 

EIGHTH AMENDMENT
TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
DATED AS OF APRIL 10, 2017
AMONG
OASIS PETROLEUM NORTH AMERICA LLC,
AS BORROWER,
THE GUARANTORS PARTY HERETO,

WELLS FARGO BANK, N.A., 
AS ADMINISTRATIVE AGENT,
AND
THE LENDERS PARTY HERETO

	
					
	 

EIGHTH AMENDMENT TO 
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
THIS EIGHTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Eighth Amendment”) dated as of April 10, 2017, is among OASIS PETROLEUM NORTH AMERICA LLC, a Delaware limited liability company (the “Borrower”); the Guarantors party hereto (the “Guarantors” and collectively with the Borrower, the “Credit Parties”); each of the lenders party to the Credit Agreement referred to below (collectively, the “Lenders”) party hereto; and WELLS FARGO BANK, N.A., as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”) and as the issuing bank (in such capacity, the “Issuing Bank”).
R E C I T A L S:
A.    Parent, OP LLC, the Borrower, the Administrative Agent and the Lenders are parties to that certain Second Amended and Restated Credit Agreement dated as of April 5, 2013, as amended by that certain First Amendment to Second Amended and Restated Credit Agreement dated as of September 3, 2013, that certain Second Amendment to Second Amended and Restated Credit Agreement dated as of September 30, 2014, that certain Third Amendment to Second Amended and Restated Credit Agreement dated as of April 13, 2015, that certain Fourth Amendment to Second Amended and Restated Credit Agreement dated as of November 13, 2015, that certain Fifth Amendment to Second Amended and Restated Credit Agreement dated as of February 23, 2016, that certain Sixth Amendment to Amended and Restated Credit Agreement dated as of August 8, 2016 and that certain Seventh Amendment to Second Amended and Restated Credit Agreement dated as of October 14, 2016 (the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower. 
B.    The Borrower, the Guarantors, the Administrative Agent and the Lenders party hereto desire to amend certain provisions of the Credit Agreement as set forth herein effective as of the Eighth Amendment Effective Date (as defined below) 
C.    Furthermore, the Administrative Agent and the Requisite Increase Lenders desire to redetermine and increase the Borrowing Base to $1,600,000,000 from $1,150,000,000 after giving effect to the amendments contained in this Eighth Amendment.
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.Defined Terms.  Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement, as amended by this Eighth Amendment.  Unless otherwise indicated, all section references in this Eighth Amendment refer to sections of the Credit Agreement.

Section 2.    Amendments to Credit Agreement.
2.1    Amendments to Section 1.02.
(a)    The following definitions contained in Section 1.02 of the Credit Agreement are hereby amended and restated as follows:
“Agreement” means this Second Amended and Restated Credit Agreement, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the Seventh Amendment and the Eighth Amendment and as the same may be further amended or supplemented from time to time.
“Lenders” means the Persons listed on Annex I and any Person that shall have become a party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption, and any Person that shall have become a party hereto as an Additional Lender pursuant to Section 2.06(c).
“Qualified Convertible Notes Offering” means an issuance of Convertible Notes which satisfies the following conditions: (a) such Convertible Notes have a per annum interest rate less than or equal to 5%, (b) at the time thereof and after giving effect to any adjustment of the Borrowing Base in connection therewith, the Total Commitments Utilization Percentage is less than or equal to 50% and (c) after giving pro forma effect to such issuance, the Borrower is in compliance with the financial covenants contained in Section 9.01(a), Section 9.01(b) and Section 9.01(c).
(b)    The following definitions are hereby added to Section 1.02 of the Credit Agreement where alphabetically appropriate to read as follows: 
“Annualized EBITDAX” means, as of the last day of any fiscal quarter, (a) for the first full fiscal quarter ending after the Trigger Date, EBITDAX for such quarter multiplied by 4, (b) for the second full fiscal quarter ending after the Trigger Date, EBITDAX for the two fiscal quarter period ending on such date multiplied by 2, (c) for the third full fiscal quarter ending after the Trigger Date, EBITDAX for the three fiscal quarter period ending on such date multiplied by 4/3, and (d) for each fiscal quarter thereafter, EBITDAX for the four fiscal quarter period ending on such date. 
“Eighth Amendment” means that certain Eighth Amendment to Second Amended and Restated Credit Agreement, dated as of April 10, 2017, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.
“Trigger Date” means the first date on which the Aggregate Elected Commitment Amounts exceed $1,150,000,000.

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“Total Debt” means, at any date, all Debt of the Parent and the Consolidated Subsidiaries on a consolidated basis, excluding (a) non-cash obligations under ASC 815 and (b) accounts payable and accrued expenses, liabilities or other obligations to pay the deferred purchase price of Property or services, from time to time incurred in the ordinary course of business which are not greater than sixty (60) days past the date of invoice or delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP.
(c)    The definitions of “Assigned Maximum Credit Amount” and “Dissenting Lender” are hereby deleted from Section 1.02 of the Credit Agreement.
2.2    Amendment to Section 2.07(c).  Section 2.07(c) of the Credit Agreement is hereby amended by deleting Section 2.07(c)(iv).
2.3    Amendment to Section 2.07(c)(iii).  Section 2.07(c)(iii) of the Credit Agreement is hereby amended by deleting the proviso contained in the fourth sentence of such section.
2.4    Amendment to Section 2.07(d).  Section 2.07(d) of the Credit Agreement is hereby amended by deleting the references to “(and subject to Section 2.07(c)(iv))” and “(subject to the provisions of Section 2.07(c)(iv))” in such section.
2.5    Amendment to Section 9.01.  Section 9.01 of the Credit Agreement is hereby amended by inserting a new Section 9.01(c) immediately after Section 9.01(b) thereof, to read as follows:
(c)    Ratio of Total Debt to EBITDAX.  The Borrower will not, as of the last day of any fiscal quarter commencing with the first full fiscal quarter ending after the Trigger Date, permit its ratio of Total Debt as of such time to Annualized EBITDAX to be greater than (i) 4.25 to 1.0 for the first two full fiscal quarters ending after the Trigger Date and (ii) 4.00 to 1.00 for each fiscal quarter thereafter.
Section 3.    Borrowing Base Redetermination.  Pursuant to Section 2.07 of the Credit Agreement, the Administrative Agent and the Requisite Increase Lenders agree that for the period from and including the Eighth Amendment Effective Date to but excluding the next Redetermination Date, the amount of the Borrowing Base shall be equal to $1,600,000,000.  Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments from time to time pursuant to Section 2.07(e), Section 8.13(c) or Section 9.12(d).  For the avoidance of doubt, the redetermination herein shall constitute the April 1, 2017 Scheduled Redetermination and the next Scheduled Redetermination shall be the October 1, 2017 Scheduled Redetermination.
Section 4.    Conditions Precedent.  This Eighth Amendment shall become effective as of the date when each of the following conditions is satisfied (or waived in accordance with Section 12.02 of the Credit Agreement) (the “Eighth Amendment Effective Date”):

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4.1    The Administrative Agent shall have received from the Borrower, each Guarantor and the Requisite Increase Lenders counterparts (in such number as may be requested by the Administrative Agent) of this Eighth Amendment signed on behalf of such Person.
4.2    No Default shall have occurred and be continuing as of the date hereof prior to and after giving effect to the terms of this Eighth Amendment.
4.3    The Administrative Agent shall have received from the Borrower a duly executed and notarized mortgages and/or mortgage supplements in form and substance reasonably satisfactory to the Administrative Agent so that, after giving effect to the recording of such mortgages and/or mortgage supplements, the Administrative Agent shall be reasonably satisfied that it has first priority, perfected Liens (subject only to Excepted Liens identified in clauses (a) to (d) and (f) of the definition thereof, but subject to the provisos at the end of such definition) on at least 90% of the total value of the Oil and Gas Properties evaluated in the Reserve Report most recently delivered pursuant to Section 8.12(a) of the Credit Agreement. 
4.4    The Administrative Agent shall have received such other documents as the Administrative Agent or its special counsel may reasonably require.
The Administrative Agent is hereby authorized and directed to declare this Eighth Amendment to be effective when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 4 or the waiver of such conditions as permitted hereby. Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.
Section 5.    Miscellaneous.
5.1    Confirmation and Effect.  The provisions of the Credit Agreement, as amended by this Eighth Amendment, shall remain in full force and effect following the effectiveness of this Eighth Amendment.  Each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or any other word or words of similar import shall mean and be a reference to the Credit Agreement as amended hereby, and each reference in any other Loan Document to the Credit Agreement or any word or words of similar import shall be and mean a reference to the Credit Agreement as amended hereby.
5.2    No Waiver.  Neither the execution by the Administrative Agent or the Lenders of this Eighth Amendment, nor any other act or omission by the Administrative Agent or the Lenders or their officers in connection herewith, shall be deemed a waiver by the Administrative Agent or the Lenders of any Defaults or Events of Default which may exist, which may have occurred prior to the date of the effectiveness of this Eighth Amendment or which may occur in the future under the Credit Agreement and/or the other Loan Documents.  Similarly, nothing contained in this Eighth Amendment shall directly or indirectly in any way whatsoever either: (a) impair, prejudice or otherwise adversely affect the Administrative Agent’s or the Lenders’ right at any time to exercise any right, privilege or remedy in connection with the Loan Documents with respect to any Default or Event of Default, (b) except as expressly provided herein, amend or alter any provision of the Credit Agreement, the other Loan Documents, or any other contract or instrument, or (c) constitute 

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any course of dealing or other basis for altering any obligation of the Borrower or any right, privilege or remedy of the Administrative Agent or the Lenders under the Credit Agreement, the other Loan Documents, or any other contract or instrument.  
5.3    Ratification and Affirmation; Representations and Warranties.  Each Credit Party hereby (a) acknowledges the terms of this Eighth Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect as expressly amended hereby and (c) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Eighth Amendment:  (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (or, if already qualified by materiality, Material Adverse Effect or a similar qualification, true and correct in all respects), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects (or, if already qualified by materiality, Material Adverse Effect or a similar qualification, true and correct in all respects) as of such specified earlier date, (ii) no Default or Event of Default has occurred and is continuing and (iii) no event or events have occurred which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect.
5.4    Counterparts.  This Eighth Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of this Eighth Amendment by facsimile or email transmission shall be effective as delivery of a manually executed counterpart hereof.
5.5    No Oral Agreement.  This Eighth Amendment, the Credit Agreement and the other Loan Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties.  There are no subsequent oral agreements between the parties.
5.6    GOVERNING LAW.  THIS EIGHTH AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
5.7    Payment of Expenses.  In accordance with Section 12.03 of the Credit Agreement, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket costs and reasonable expenses incurred in connection with this Eighth Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.
5.8    Severability.  Any provision of this Eighth Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

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5.9    Successors and Assigns.  This Eighth Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
5.10    Loan Document.  This Eighth Amendment shall constitute a “Loan Document” under and as defined in Section 1.02 of the Credit Agreement.

[Signatures Begin Next Page]

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IN WITNESS WHEREOF, the parties hereto have caused this Eighth Amendment to be duly executed as of the date first written above.
		
	BORROWER:
	OASIS PETROLEUM NORTH AMERICA LLC

By:    /s/Michael Lou    
Name:    Michael Lou
Title:    Executive Vice President and Chief 
Financial Officer

		
	GUARANTORS:
	OASIS PETROLEUM INC.

OASIS PETROLEUM LLC 
OASIS PETROLEUM MARKETING LLC
OASIS WELL SERVICES LLC
OASIS MIDSTREAM SERVICES LLC

By:    /s/Michael Lou    
Name:    Michael Lou
Title:    Executive Vice President and Chief 
Financial Officer

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

ADMINISTRATIVE AGENT,
		
	ISSUING BANK AND LENDER:
	WELLS FARGO BANK, N.A.,

as Administrative Agent, Issuing Bank and as a Lender 

By:    /s/Edward Pak    
Name:    Edward Pak
Title:    Director

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

		
	LENDERS:
	CITIBANK, N.A., as a Lender

By:    /s/Cliff Vaz    
Name:    Cliff Vaz
Title:    Vice President

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

JPMORGAN CHASE BANK, N.A., 
as a Lender

By:    /s/Anson Williams    
Name:    Anson Williams
Title:    Authorized Officer

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

ROYAL BANK OF CANADA, as a Lender 

By:    /s/Mark Lumpkin, Jr.    
Name:    Mark Lumpkin, Jr.
Title:    Authorized Signatory

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

CAPITAL ONE, NATIONAL ASSOCIATION, 
as a Lender

By:    /s/Mark Brewster    
Name:    Mark Brewster
Title:    Vice President

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

COMPASS BANK, as a Lender 

By:    /s/Kari McDaniel    
Name:    Kari McDaniel
Title:    Vice President 

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

CANADIAN IMPERIAL BANK OF 
COMMERCE, NEW YORK BRANCH, 
as a Lender

By:    /s/William M. Reid    
Name:    William M. Reid    
Title:    Authorized Signatory    

By:    /s/Trudy Nelson    
Name:    Trudy Nelson    
Title:    Authorized Signatory    

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

DEUTSCHE BANK AG NEW YORK BRANCH,
as a Lender

By:    /s/Dusan Lazarov    
Name:    Dusan Lazarov    
Title:    Director    

By:    /s/Marcus Tarkington    
Name:    Marcus Tarkington    
Title:    Director    

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

ING CAPITAL LLC, as a Lender 

By:    /s/Josh Strong    
Name:    Josh Strong
Title:    Director

By:    /s/Charles Hall    
Name:    Charles Hall
Title:    Managing Director

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

CITIZENS BANK, N.A., as a Lender 

By:    /s/Scott Donaldson    
Name:    Scott Donaldson
Title:    Senior Vice President 

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

U.S. BANK NATIONAL ASSOCIATION,
as a Lender

By:    /s/John C. Lozano    
Name:    John C. Lozano
Title:    Vice President

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

ZB, N.A. DBA AMEGY BANK, as a Lender 

By:    /s/John Moffitt    
Name:    John Moffitt
Title:    Vice President

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

BOKF, NATIONAL ASSOCIATION DBA BANK 
OF TEXAS, as a Lender

By:    /s/Mari Salazar    
Name:    Mari Salazar    
Title:    SVP–Energy Lending    

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

BRANCH BANKING AND TRUST COMPANY, 
as a Lender

By:    /s/James Giordano    
Name:    James Giordano
Title:    Senior Vice President

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

CREDIT SUISSE AG, CAYMAN ISLANDS 
BRANCH,
as a Lender

By:    /s/Nupur Kumar    
Name:    Nupur Kumar
Title:    Authorized Signatory

By:    /s/Lea Bearlocher    
Name:    Lea Bearlocher
Title:    Authorized Signatory

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

REGIONS BANK, as a Lender 

By:    /s/William A. Philipp    
Name:    William A. Philipp
Title:    Managing Director

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC) 

IBERIABANK, as a Lender

By:    /s/Stacy Goldstein    
Name:    Stacy Goldstein
Title:    Senior Vice President

Signature Page to
Eighth Amendment to Second Amended and Restated Credit Agreement
(Oasis Petroleum North America LLC)supplyagmt.htm

 

 

 

EXHIBIT 10.1

 

 

 

PRODUCT SUPPLY AND SALES AGREEMENT

This Product Supply and Sales Agreement (the “Contract”) is made and entered into on this 7th day of April 2017, by and between PGT Industries, Inc., (“Buyer” or “PGT”)and Kuraray America, Inc. (“Seller” or “Kuraray”), as the supplier.

WHEREAS, Seller desires to sell the interlayer products described in this Agreement to Buyer and Buyer desires to purchase those products from Seller, all pursuant to the terms and conditions set forth in this Agreement and the attachments hereto; and

WHEREAS, Seller and Buyer (each a “Party” and collectively the “Parties”) desire to memorialize their agreement with respect to the aforementioned product supply and sales arrangement;

NOW THEREFORE, in exchange for the agreements, benefits and promises described herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and agreed to by the Parties, Buyer and Seller, intending to be legally bound, agree as follows:

1. PRODUCTS/QUANTITY.  Seller shall sell to Buyer and Buyer shall purchase from Seller all of Buyer’s requirements for Butacite® polyvinyl butyral interlayer and SentryGlas® ionoplast interlayer products (the “Product(s)”).  Buyer agrees that, throughout the Term (defined below) of this Contract it will purchase one hundred percent (100%) of its laminated glass interlayer requirements for Buyer’s branded window and door products (“Buyer’s Products”) from Seller, and Seller agrees that it will supply the Products to Buyer in the quantities set forth in accepted purchase orders.Seller agrees that it will use commercially reasonable efforts to supply to Buyer in a timely manner all of Buyer’s requirements for the Products, as ordered by Buyer.

2. TERM OF CONTRACT; TERMINATION RIGHTS.  This Contract shall be effective from January 1, 2017 to December 31, 2019, the date of its expiration, unless it is terminated earlier in accordance with the terms of this Section 2.Either Party shall have the right to terminate this Contract for cause in the event that the other Party breaches any of the provisions of this Contract in any material respect, and fails to cure the breach within ninety (90) days after written notice from the non-breaching Party, describing the nature of the breach and requesting a cure of the breach.In addition, Buyer shall have the right to terminate this Contract in the event that Seller announces any price increase applicable to the Products that Buyer refuses to accept, pursuant to the terms of Section 3 below.  Neither Party hereto shall have the right to terminate this Contract without cause or for convenience.

  

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3. PRICE.  Buyer shall pay Seller the prices listed in Annex A To this Contract for the Products it purchases from Seller for all of calendar year 2017. The prices stated in Annex A May be changed by Seller only in accordance with the price increase provision set forth in AnnexA.  Any such changes in the Product prices shall be applicable to all Products shipped to Buyer hereunder on and after the date the price changes become effective, unless those Product prices are subsequently revised by Seller again before the prior price change becomes effective, but only if that subsequent price change is made in accordance with the terms of this Contract, including AnnexA hereto. In the event Buyer desires to terminate this Contract early as a result of any price increase announced by Seller, Buyer shall have the option to terminate the Contract within thirty (30) days after the price increase announcement.  If Buyer elects to terminate the Contract, Buyer will provide Seller thirty (30) days prior written notice of its intent to terminate upon receiving the price increase notification.  Notwithstanding any such termination, Buyer will be obligated to purchase any inventory of Products made to fill purchase orders issued by Buyer, Product in transit that is covered by a prior purchase order issued by Buyer, or Product reasonably made specifically for Buyer, based upon the Product-requirements forecasts provided by Buyer to Seller from time to time, up to the amount of Average Demand Inventory (defined below). Buyer acknowledges that Seller will manufacture and store Product for Buyer based on expected use or forecasts and should Buyer terminate this Contract for any reason, Buyer will purchase any Product made specifically for Buyer even if not yet ordered, so long as the quantity of such Products made by Seller was reasonable, based upon the Product-requirements forecasts provided by Buyer to Seller from time to time, up to the amount of Average Demand Inventory (defined below). Buyer also acknowledges that demand variability exists and the Seller will manufacture and store Product to attempt to cover said demand variability at up to 45 days of average demand(the “Average Demand Inventory”)and should Buyer terminate this Contract for any reason Buyer will purchase any Product made for Buyer up to the Average Demand Inventory.

4. TERMS OF PAYMENT.  Buyer shall pay Seller for all undisputed invoices for Products within thirty (30) days of the date of Seller’s invoice.  A 1% discount will be applied if paid within ten (10) days of the date of Seller’s invoice.  In the event that Buyer disputes any Seller invoice as being inaccurate or incorrect, Buyer will provide Seller with prompt written notice of that dispute, along with a reasonably detailed description of the reason(s) why Buyer believes the invoice is inaccurate or incorrect, and thereafter, the Parties will negotiate in good faith to resolve the invoice dispute.   Any invoice dispute that the Parties are not able to promptly resolve shall be resolved through the dispute resolution methods set forth in this Contract.

5. DELIVERY TERMS.  Delivery will be made within the 48 contiguous United States and Canada, to the Buyer delivery destinations specified by Buyer within that permissible delivery area.  Transportation will be by the method, route and carrier selected by Seller unless Seller is notified in writing by Buyer that any such method, route or carrier is unacceptable.  In the event that Buyer desires for any Product delivery to be made by  any alternate method, route, or carrier selected by Buyer, Buyer will be responsible for paying any cost of such delivery that is in excess of the cost Seller would have incurred using Seller’s method, route and carrier for completing such delivery. Buyer will be provided a freight credit or discount for any material backhauled from Seller on Buyer’s equipment.

  

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6. USER PROTECTION.  Buyer acknowledges that it has received and is familiar with Seller’s labeling and literature concerning the Products and will communicate such information to its employees who handle, use, or process such Products.

7. ENTIRE AGREEMENT.  This Contract along with Seller’s Terms and Conditions for Sale, set forth on Exhibit A hereto,the pricing terms set forth in Annex A hereto and the warranty set forth in Annex B hereto constitute the entire agreement between the Parties regarding the subject matter described herein, and supersede all prior agreements, contracts, negotiations and understandings, whether written or oral, between the Parties about that subject matter.  All sales of Products to Buyer are subject to Seller’s Standard Terms and Conditions of Sale attached hereto as Exhibit A, which are expressly incorporated into and made a part of this Contract. There are no other agreements, warranties, terms or conditions, expressed or implied, between the Parties about the subject matter of this Contract.

8. ASSIGNMENT/AMENDMENT/WAIVER.This Contract is neither assignable nor transferable, in whole or in part, by either Party hereto, without the prior written consent of the other Party, which consent shall not be unreasonably conditioned, delayed or denied.  This Contract may not be amended except by a written amendment that references this Contract and that is signed by both Parties.  No waiver of any provision of this Contract by either Party shall be enforceable against that Party unless it is in writing and signed by both Parties.

9. NOTICES.  All notices required hereunder shall be sent by United States mail orby a nationally recognized next-day or overnight carrier to the Party to be notified at the addresses provided in the signature blocks to this Contract.

10. HARDSHIP.  The Parties agree that it is not their intention that the effect or consequences of entering into this Contract should cause an economic or operational hardship on either of them but, despite the Parties’ best intentions and as a result of significant, unanticipated changes in economic or market conditions, such a hardship may be incurred by either Party in complying with the terms of this Contract at the negotiated prices.  If such a hardship arises, either Party may give notice in writing to the other Party that it wishes to review the provisions of this Contract in light of such changed economic or market conditions.  The Parties agree that, within thirty (30) days after the giving of such notice by either Party, the Parties shall negotiate in good faith to modify this Contract to relieve any such hardship in a manner that is equitable to both Parties.  If, within forty-five (45) days after the giving of such notice, the Parties are unable to agree upon such a modification to this Contract, the Parties will refer the dispute to their respective executive officers, and those officers will then meet in person to attempt to resolve the dispute in good faith.  If within thirty (30) days after the date the dispute was referred to both Parties’ executive officers, the Parties are still unable to resolve the dispute, the dispute shall be referred to arbitration and settled by binding arbitration in accordance with the rules of the American Arbitration Association.

  

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11. CONFIDENTIALITY.  Any knowledge or information disclosed between the Parties which relates in any way to the Products and services of this Contract, to Buyer’s Products, or to the prices contained within the Contract, or the fact of this Contract, unless otherwise agreed to in writing, or required by a governmental agency, shall be deemed proprietary and confidential and shall not be disclosed by either Party to any third party.  Both Parties shall keep confidential any technical, process, or economic information derived from the other in connection with this Contract and shall not divulge such information, directly or indirectly, for the benefit of any Party unless previously agreed to in writing by the other Party to whom such information belongs.  Each Party will use commercially reasonable efforts to safeguard and protect any of the other Party’s confidential information from any unauthorized disclosure to or discovery by any third party.  The non-disclosure, non-use and safekeeping obligations set forth in this Section 11 shall not apply to any information that:  (a) is or becomes publicly available or known other than due to a breach of this non-disclosure obligation by the Party who was the receiving party of such information; (b) is disclosed to the Party who receives such information by a third party who is not under any legal or contractual duty to refrain from disclosing the information; or (c) is independently developed by either Party hereto without the use of any of the other Party’s confidential information.

IN WITNESS WHEREOF, each Party hereto acknowledges that the representative named below has the authority to execute this Contract on behalf of the respective party to form a legally binding contract and has caused this Contract to be duly executed on its behalf as of the date first written above.

“BUYER” PGT Industries, Inc.

1070 Technology Drive

Nokomis, Florida 34275

By:  __________________________

Printed Name:

Title:

“SELLER”Kuraray America, Inc.

Wells Fargo Tower

2200 Concord Pike

Wilmington, Delaware 19803

By:  ________________________

Printed Name:

Title:

  

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EXHIBIT A

 

 

STANDARD CONDITIONS OF SALE

 

These terms and conditions represent a part of the Contract under which Seller agrees to provide to Buyer the Products identified in the Buyer’s purchase orders or as otherwise requested by Buyer.  Seller’s provision of the Products is conditioned on the Buyer’s agreement that any terms different from or in addition to those in this Contract, whether communicated orally or contained in any purchase order, request, confirmation, payment, or other written correspondence, irrespective of timing, shall not form a part of the Contract, even if Buyer purports to condition its acceptance of any purchase order on Seller’s agreement to such different or additional terms.  Notwithstanding the foregoing, if any termor condition contained in this Contract conflicts or is inconsistent with the terms and conditions contained in an authorized, signed Material Supply Agreement or other definitive sales agreement which is in place at the time of shipment of the Products the terms and conditions contained in the Material Supply Agreement or other definitive sales agreement shall prevail over any conflicting or inconsistent terms herein.

1.  FAILURE TO GIVE NOTICE OF A CLAIM WITHIN ONE HUNDRED AND EIGHTY (180) DAYS FROM DATE OF DELIVERY, OR THE DATE FIXED FOR DELIVERY (IN CASE OF NONDELIVERY) SHALL CONSTITUTE A WAIVER BY BUYER OF ALL CLAIMS IN RESPECT OF SUCH PRODUCTS, PRODUCTS SHALL NOT BE RETURNED TO SELLER WITHOUT SELLER’S PRIOR WRITTEN PERMISSION, WHICH PERMISSION SHALL NOT BE UNREASONABLY CONDITIONED, DELAYED OR DENIED.  NO CHARGE OR EXPENSE INCIDENT TO ANY CLAIMS WILL BE ALLOWED UNLESS APPROVED BY AN AUTHORIZED REPRESENTATIVE OF SELLER BUT SUCH APPROVAL SHALL NOT BE UNREASONABLY CONDITIONED, DELAYED OR DENIED, AND SHALL BE BASED UPON THE TERMS OF THIS AGREEMENT.  IN ADDITION, AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO WAIVES ANY CLAIM TO INDIRECT, CONSEQUENTIAL, PUNITIVE, EXEMPLARY OR MULTIPLIED DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE PROVISION OF ANY PRODUCTS.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES WAIVE AND AGREE NOT TO ASSERT NON-CONTRACTUAL CLAIMS ARISING UNDER STATE LAW RELATING TO THIS AGREEMENT OR THE PROVISION OF ANY PRODUCTS COVERED BY THIS AGREEMENT, AND THIS AGREEMENT SHALL BE DEEMED TO INCLUDE SUCH LANGUAGE AS MAY BE REQUIRED TO EFFECT SUCH WAIVER.  WAIVER BY EITHER PARTY OF ANY DEFAULT BY THE OTHER HEREUNDER SHALL NOT BE DEEMED A WAIVER BY SUCH PARTY OF ANY DEFAULT BY THE OTHER WHICH MAY THEREAFTER OCCUR.

2.  No liability shall result from delay in performance or nonperformance, directly or indirectly caused by circumstances beyond the control of the party affected, including, but not limited to, act of God, fire, explosion, flood, war, act of or authorized by any Government, labor trouble or shortage, pandemic, inability to obtain material, equipment or transportation, failure to obtain or hardship in obtaining reasonably priced supplies of materials, or failure of usual transportation mode.  Quantities so affected may be eliminated from this Agreement without liability, but this Agreement shall remain otherwise unaffected.  Seller shall have no obligation to purchase supplies of the Products specified herein to enable it to perform this Agreement.

3.  If for any reason including but not limited to force majeure Seller is unable to supply the total demand for Products specified herein, Seller may distribute its available supply among any or all purchasers, as well as departments and divisions of Seller, on such basis as it may deem fair and practical, without liability for any failure of performance which may result therefrom.

  

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4.  Seller may furnish such technical assistance and information as it has available with respect to the use of the Products covered by this Agreement.  Unless otherwise agreed in writing, all such information will be provided gratis.  Buyer agrees to evaluate such information, to make an independent decision regarding the suitability of such information and Products for Buyer’s application, and only use such Products and information pursuant to the then current good product stewardship principles and all regulatory requirements applicable to Buyer’s business.

5.  Buyer acknowledges that it has received and is familiar with Seller’s labeling and literature concerning the Products and its properties.  Buyer will forward such information to its employees, contractors and customers who may distribute, handle, process, sell or use such Products, and advise such parties to familiarize themselves with such information.  Buyer agrees that Products sold hereunder will not knowingly be resold or given in sample form to persons using or proposing to use the Products for purposes contrary to recommendations given by Seller or prohibited by law, but will be sold or given as samples only to persons who can handle, use and dispose of the Products safely.  Unless agreed to by Seller in a written agreement covering such use, in no event shall Buyer use Products or resell Products for use in the manufacture of any implanted medical device.  Buyer agrees to comply with all applicable laws, regulations and ordinances including all applicable export and import laws.  To the extent Seller exports the Products the following Destination Control Statement applies: “These items are controlled by the U.S. Government and authorized for export only to the country of ultimate destination for use by the ultimate consignee or end-user(s) herein identified. They may not be resold, transferred, or otherwise disposed of to any other country or to any person other than the authorized ultimate consignee or end-user(s), either in the their original form or after being incorporated into other items, without first obtaining approval from the U.S. Government or as otherwise authorized by U.S. law and regulations.”

6.  a. Each Party, as a  recipient of the other Party’s Confidential Information, understands and agrees that it will not, for itself or in conjunction with others, test, modify, manipulate, research, reverse engineer or replicate the disclosing Party’s Confidential Information in an effort to understand the disclosing Party’s proprietary technology or learn information not explicitly stated in the disclosing Party’s  Confidential Information, except as strictly required for performance under any agreement between the parties that incorporates the terms and conditions of this Contract.  Any such understanding of the disclosing Party’s proprietary technology not explicitly stated in the disclosing Party’s Confidential Information shall be treated as the disclosing Party’s Confidential Information under this Contract.

b. Unless otherwise agreed upon between the parties hereto, the recipient Party agrees that it will not use the disclosing Party’s Confidential Information, or any improvement or other modification of the disclosing Party’s Confidential Information, or any data derived from the disclosing Party’s Confidential Information, for securing any intellectual property rights.  No license or other rights to the disclosing Party’s Confidential Information or other intellectual property is granted or implied hereby.  Neither party shall have the right to use the other party’s name, or any trademarks or trade names of the other party, without express advance written permission.

  

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7.  Buyer shall reimburse Seller for all taxes (excluding income taxes and any property or similar taxes on the raw or other materials, work in process or finished goods inventory of Products located in any of Seller’s facilities), excises or other charges which Seller may be required to pay to any Government (National, State or Local) upon the sale, or transportation to Buyer of the Products sold hereunder.  For jurisdictions where taxes are imposed by statute upon Buyer and for which Seller has a responsibility to collect and remit such taxes, Seller shall separately itemize the taxes on each invoice for which the taxes are applicable.  In the alternative, Buyer may timely provide Seller with the required documentation to exempt the Products from the taxes or to evidence Buyer’s authority to remit the taxes directly.  Seller will rely on such documentation as provided to Seller in good faith and therefore will not be responsible for such taxes.  Buyer will indemnify and hold harmless Seller for any taxes assessed upon and paid by Seller following reliance upon Buyer’s documentation.

8.  In the event Buyer repeatedly fails to fulfill Seller’s terms of payment, Seller may decline to make further deliveries except upon receipt of cash or satisfactory security.

9.  Except for undisputed, unpaid invoices owed by Buyer, Buyer and Seller agree to arbitrate all disputes, claims or controversies whether based on contract, tort, statute, or any other legal or equitable theory, arising out of or relating to this Contract, including the scope and validity of this paragraph.  Any such claim or controversy which cannot be resolved amicably by the parties shall be finally resolved by binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association then currently in effect.  Such arbitration shall be conducted in Harris County, Texas.  Any judgment upon the award rendered by the arbitrator(s) may be entered by any court having jurisdiction thereof.

10.  All matters arising out of or relating to this Agreement shall be governed by and construed in accordance with the laws of the State of Texas, without regard to any applicable conflicts of law provisions thereof, and the terms of the United Nations Convention on Contracts for the International Sale of Goods, shall not apply.

11.  Title, liability for and risk of loss to Products sold hereunder passes to Buyer upon delivery to Buyer’s specified delivery location.

12.  Except as expressly provided in any other term or condition of this Agreement, any provision hereof which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

13.  Buyer acknowledges, agrees and represents that it is not relying upon, and it has not been induced by, any representation, warranty, statement made by, or other information provided by Seller in connection with its decision to purchase or use any Products, other than the representations and warranties made by Seller as and only to the extent expressly provided in this Agreement.  No modification of this Agreement shall be binding upon Seller unless separately contracted in writing and executed by a duly authorized representative of Seller.  No modification shall be effected by the acknowledgment or acceptance of purchase order forms stipulating different conditions.

  

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