Document:

ex4-1.htm

EXHIBIT 4.1 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

This FIRST AMENDMENT TO CREDIT AGREEMENT (this “Agreement”), dated as of May 23, 2013, is entered into by and among URS CORPORATION, a Delaware corporation (the “Company”), certain Subsidiaries of the Company party hereto as borrowers (each a “Designated Borrower” and, together with the Company, the “Borrowers”), each of the Lenders (as defined below) party hereto, and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (in such capacity, the “Administrative Agent”), Swing Line Lender and an L/C Issuer.

 

RECITALS

 

WHEREAS, the Borrowers, certain financial institutions party thereto (the “Lenders”) and the Administrative Agent, among others, are parties to that certain Credit Agreement dated as of October 19, 2011, (as amended, restated, extended, supplemented or otherwise modified from time to time, the “Credit Agreement”); and

 

WHEREAS, the Borrowers have requested that the Administrative Agent and the Lenders agree to amend the Credit Agreement as more specifically set forth herein.  Subject to the terms and conditions set forth herein, the Administrative Agent and the Lenders party hereto have agreed to such request.

 

NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1. Defined Terms.  Unless otherwise defined herein, capitalized terms used herein shall have the meanings, if any, assigned to such terms in the Credit Agreement.

 

2. Interpretation.  The rules of interpretation set forth in Sections 1.02 through 1.09 of the Credit Agreement shall be applicable to this Agreement and are incorporated herein by this reference.

 

3. Amendments to Credit Agreement.  Subject to the terms and conditions hereof and with effect from and after the Effective Date (defined below):

 

(a) New Definition.  The following new definition is hereby added to Section 1.01 of the Credit Agreement in correct alphabetical order:

 

“ ‘LIBOR Quoted Currency’ means each of the following currencies:  Dollars, Euro, British pound sterling, Swiss franc and Japanese yen.”

 

(b) New Section.  The following new Section 1.10 is hereby added to Article I of the Credit Agreement in correct numerical order:

 

“1.10           Interest Rates.   If at any time any interest rate quoted or otherwise made available from time to time under this Agreement in respect of any currency is no longer available generally, as determined by the Administrative Agent, then the Administrative Agent (after consultation with, and consent from, the Company) shall, by written notice to the Lenders and the Company, substitute such unavailable interest rate with another published interest rate that adequately reflects the all-in-cost of funds denominated in such currency to the Administrative Agent.”

 

(c) Amendments to Section 1.01 (Definitions).  Section 1.01 of the Credit Agreement is hereby amended as follows:

 

  

i

  

(i)           The definition of “Eurocurrency Rate” is hereby amended and restated in its entirety as follows:

 

“ ‘Eurocurrency Rate’ means:

 

(a)           for any Interest Period with respect to a Eurocurrency Rate Loan denominated in a LIBOR Quoted Currency, the rate per annum equal to the British Bankers Association LIBOR Rate or the successor thereto if the British Bankers Association is no longer making a LIBOR rate available (“LIBOR”), as published by Reuters (or such other commercially available source providing quotations of LIBOR as may be designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for deposits in the relevant currency (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period.  If such rate is not available at such time for any reason, then the “Eurocurrency Rate” for such Interest Period shall be the rate per annum determined by the Administrative Agent to be the rate at which deposits in the relevant currency for delivery on the first day of such Interest Period in Same Day Funds in the approximate amount of the Eurocurrency Rate Loan being made, continued or converted and with a term equivalent to such Interest Period would be offered by first class banks in the London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period, and if any such rate is below zero, then the “Eurocurrency Rate” shall be deemed to be zero;

 

(b)           for any Interest Period with respect to a Eurocurrency Rate Loan denominated in Australian dollars, the rate per annum equal to the Bank Bill Swap Reference Rate or the successor thereto as approved by the Administrative Agent (“BBSY”) as published by Reuters (or such other commercially available source providing BBSY quotations as may be designated by the Administrative Agent from time to time) at approximately 10:00 a.m. (Sydney time) two Business Days prior to the commencement of such Interest Period (or such other day as is generally treated as the rate fixing day by market practice in such interbank market, as determined by the Administrative Agent) with a term equivalent to such Interest Period (or if such Interest Period is not equal to a number of months, with a term equivalent to the number of months closest to such Interest Period);

 

(c)           for any Interest Period with respect to a Eurocurrency Rate Loan denominated in Canadian dollars, the rate per annum determined by the Administrative Agent on the basis of an average rate applicable to Canadian dollar bankers’ acceptances having a maturity comparable to the applicable Interest Period appearing on the “Reuters Screen CDOR Page” (as defined in the International Swap Dealer Association, Inc.’s definitions, as amended, restated, supplemented or otherwise modified from time to time), or any successor page, at approximately 10:00 a.m. (Toronto time) on the first day of such Interest Period (or if such day is not a Business Day, then on the immediately preceding Business Day); provided that if, for any reason, such rate does not appear on the Reuters Screen CDOR Page on such day, then the “Eurocurrency Rate” on such day for any Eurocurrency Rate Loan denominated in Canadian dollars shall be calculated as the rate (rounded upwards to the nearest basis point) quoted by The Toronto-Dominion Bank (or its successors or assigns or such other bank listed in Schedule I to the Bank Act (Canada) as the Administrative Agent may from time to time designate) as its discount rate for the purchase of Canadian dollar bankers’ acceptances in an amount substantially equal to such Eurocurrency Rate Loan with a term comparable to such Interest Period at approximately 10:00 a.m. (Toronto time) on the first day of such Interest Period (or if such day is not a Business Day, then on the immediately preceding Business Day); and

 

  

ii

  

(d)           for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to (i) LIBOR, at approximately 11:00 a.m., London time determined two London Banking Days prior to such date for Dollar deposits being delivered in the London interbank market for a term of one month commencing that day or (ii) if such published rate is not available at such time for any reason, the rate per annum determined by the Administrative Agent to be the rate at which deposits in Dollars for delivery on the date of determination in same day funds in the approximate amount of the Base Rate Loan being made or maintained and with a term equal to one month would be offered by first class banks in the London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) on such date of determination for a period equal to one month commencing on such date of determination.”

 

(ii)           The definition of “Interest Period” is hereby amended by deleting the references to “two weeks or” and “nine or” in such definition.

 

(d) Amendment to Section 2.02 (Borrowings, Conversions and Continuations of Loans).  Section 2.02(a) of the Credit Agreement is hereby amended by deleting the reference to “two weeks or” therein.

 

(e) Amendment to Section 2.03(a) (Letter of Credit Commitment).  Section 2.03(a)(i) of the Credit Agreement is hereby amended by inserting the phrase “or any Joint Venture” immediately after the phrase “for the account of the Company or its Subsidiaries” in each place where it occurs in such Section.

 

(f) Amendment to Section 2.03(b) (Procedures of Issuance and Amendment of Letters of Credit: Auto-Extension Letters of Credit).  Section 2.03(b)(ii) of the Credit Agreement is hereby amended by inserting the phrase “or Joint Venture” immediately after the word “Subsidiary” in the parenthetical “(or the applicable Subsidiary)” where it occurs in such Section.

 

(g) Amendment to Section 2.03(k) (Letters of Credit Issued for Subsidiaries).  Section 2.03(k) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Notwithstanding that a Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is for the account of, a Subsidiary or Joint Venture, the Company shall be obligated to reimburse the applicable L/C Issuer hereunder for any and all drawings under such Letter of Credit in accordance with the terms hereof.  The Company hereby acknowledges that the issuance of Letters of Credit for the account of Subsidiaries or Joint Ventures inures to the benefit of the Company, and that the Company’s business derives substantial benefits from the businesses of such Subsidiaries or Joint Ventures.” 

 

(h) Amendment to Section 2.03(o) (Additional Letter of Credit Facilities).  Section 2.03(o) of the Credit Agreement is hereby amended by inserting the phrase “or Joint Ventures” immediately after the phrase “for the account of the Company or one or more of its Subsidiaries” where it occurs in such Section.

 

(i) Amendment to Section 7.07 (Restricted Payments).  Section 7.07 of the Credit Agreement is hereby amended by amending and restating the first paragraph thereof in its entirety as follows:

 

  

iii

  

“Declare or make, directly or indirectly, any Restricted Payment if at the time of making such Restricted Payment, and after giving pro forma effect thereto (including any Indebtedness incurred in connection therewith), either (x) any Default shall have occurred and be continuing or would result therefrom or (y) the Consolidated Leverage Ratio is equal to or greater than 1.50 to 1.00 (it being understood that any Restricted Payment made when neither of the preceding conditions exist shall not at any later time constitute usage of any of the exceptions contained in (a) through (e) below regardless of any later change in the Consolidated Leverage Ratio), except that, so long as no Default shall have occurred and be continuing at the time of any action described below or would result therefrom:”

 

4. Representations and Warranties.  The Borrowers hereby represent and warrant to the Administrative Agent and the Lenders as follows:

 

(a) no Default has occurred and is continuing (or would result from the amendments contemplated hereby);

 

(b) the execution, delivery and performance by the Borrowers of this Agreement have been duly authorized by all necessary corporate or other organizational action and do not and will not require any registration with, consent or approval of, or notice to or action by, any Person (including any Governmental Authority) in order to be effective and enforceable, except as have been obtained or to the extent that failure to so obtain could not reasonably be expected to have a Material Adverse Effect and except that in case of court proceedings in a Luxembourg court, or presentation of the Agreement or any other Loan Document to an official authority (autorité constituée) in Luxembourg, such court or autorité constituée may require registration of the Agreement or any other Loan Document or any agreements referred to therein, in which case such agreements will be subject to registration duties;

 

(c) this Agreement constitutes the legal, valid and binding obligations of each Borrower, enforceable against it in accordance with its terms, except as may be limited by bankruptcy, fraudulent transfer, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights or by equitable principles or principles of public order relating to enforceability; and

 

(d) all representations and warranties of (i) the Borrowers contained in Article V of the Credit Agreement and (ii) each Loan Party contained in each other Loan Document or in any document furnished at any time under or in connection thereunder or under the Credit Agreement, are true and correct in all material respects (or, to the extent modified by materiality or Material Adverse Effect, in all respects) on and as of the Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (or, to the extent modified by materiality or Material Adverse Effect, in all respects) on and as of such earlier date, and except that for purposes of this Section 4(d), the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to subsections (a) and (b), respectively, of Section 6.01 of the Credit Agreement.

 

5. Effective Date.

 

(a) This Agreement will become effective on the date on which each of the following conditions has been satisfied (the “Effective Date”):

 

(i) the Administrative Agent shall have received from the Borrowers and the Lenders a duly executed counterpart to this Agreement, each of which shall be originals, telecopies or “PDFs” (followed promptly by originals); and

 

  

iv

  

(ii) unless waived by the Administrative Agent, the Company shall have paid all reasonable fees, charges and disbursements of a single counsel to the Administrative Agent (directly to such counsel if requested by the Administrative Agent) to the extent invoiced prior to or on the Effective Date, plus such additional amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between the Company and the Administrative Agent).

 

(b) For purposes of determining compliance with the conditions specified in this Section 5, each Lender that has executed this Agreement and delivered it to the Administrative Agent shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other matter either sent, or made available for inspection, by the Administrative Agent to such Lender for consent, approval, acceptance or satisfaction, or required thereunder to be consented to or approved by or acceptable or satisfactory to such Lender.

 

(c) From and after the Effective Date, the Credit Agreement is amended as set forth herein.  Except as expressly amended pursuant hereto, the Credit Agreement shall remain unchanged and in full force and effect and is hereby ratified and confirmed in all respects.

 

6. Miscellaneous.

 

(a) Except as herein expressly amended, all terms, covenants and provisions of the Credit Agreement are and shall remain in full force and effect and all references therein to such Credit Agreement shall henceforth refer to the Credit Agreement as amended by this Agreement.  This Agreement shall be deemed incorporated into, and a part of, the Credit Agreement.

 

(b) This Agreement shall be binding upon and inure to the benefit of the parties hereto and thereto and their respective successors and assigns.  No third party beneficiaries are intended in connection with this Agreement.

 

(c) THIS AGREEMENT IS SUBJECT TO THE PROVISIONS OF SECTIONS 11.14 AND 11.15 OF THE CREDIT AGREEMENT (AS AMENDED HEREBY) RELATING TO GOVERNING LAW, VENUE AND WAIVER OF RIGHT TO TRIAL BY JURY, THE PROVISIONS OF WHICH ARE BY THIS REFERENCE INCORPORATED HEREIN IN FULL.

 

(d) This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.  Each of the parties hereto understands and agrees that this document (and any other document required herein) may be delivered by any party hereto or thereto either in the form of an executed original or an executed original sent by facsimile transmission to be followed promptly by mailing of a hard copy original, and the receipt by the Administrative Agent of a facsimile transmitted document purportedly bearing the signature of a Lender or the Borrowers shall bind such Lender or the Borrowers, respectively, with the same force and effect as the delivery of a hard copy original.  Any failure by the Administrative Agent to receive the hard copy executed original of such document shall not diminish the binding effect of receipt of the facsimile transmitted executed original of such document of the party whose hard copy page was not received by the Administrative Agent.

 

(e) This Agreement, together with the Credit Agreement, contains the entire and exclusive agreement of the parties hereto with reference to the matters discussed herein and therein.  This Agreement supersedes all prior drafts and communications with respect thereto.  This Agreement may not be amended except in accordance with the provisions of Section 11.01 of the Credit Agreement (as amended hereby).

 

  

v

  

(f) If any term or provision of this Agreement shall be deemed prohibited by or invalid under any applicable law, such provision shall be invalidated without affecting the remaining provisions of this Agreement or the Credit Agreement, respectively.

 

(g) This Agreement shall constitute a “Loan Document” under and as defined in the Credit Agreement.

 

[Remainder of this page intentionally left blank.]

  

vi

  

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

 

	 	

URS CORPORATION, as Company and a Borrower

	 
	 	 	 	 
	
 

	
By: 

	/s/ H. Thomas Hicks	 
	 	Name:	H. Thomas Hicks	 
	 	Title:	

Chief Financial Officer

	 
	 	 	 	 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

vii

  

 

 

	 	

URS CANADIAN OPERATIONS LTD., as a Borrower

	 
	 	 	 	 
	
 

	
By: 

	/s/ Judy L. Rodgers	 
	 	Name:	Judy L. Rodgers	 
	 	Title:	

Treasurer

	 
	 

 

	 	

URS INTERNATIONAL HOLDINGS (UK) LIMITED, as a Borrower

	 
	 	 	 	 
	
 

	
By: 

	/s/ Randolph J. Hill	 
	 	Name:	Randolph J. Hill	 
	 	Title:	

Director

	 
	 

 

	 	

URS GLOBAL LUXEMBOURG SARL, as a Borrower

	 
	 	 	 	 
	
 

	
By: 

	/s/ Joy Harris	 
	 	Name:	Joy Harris	 
	 	Title:	

Director

	 
	 

 

	 	

URS LUXEMBOURG LLP, as a Borrower

	 
	 	 	 	 
	
 

	
By: 

	/s/ Joy Harris	 
	 	Name:	Joy Harris	 
	 	Title:	

Director

	 
	 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

viii

  

 

 

	 	

URS INFRASTRUCTURE & ENVIRONMENT UK LIMITED, as a Borrower

	 
	 	 	 	 
	
 

	
By: 

	/s/ (Roy) Marrett A.V.	 
	 	Name:	(Roy) Marrett A.V.	 
	 	Title:	

Director

	 
	 

 

	 	

URS CORPORATION GROUP LIMITED, as a Borrower

	 
	 	 	 	 
	
 

	
By: 

	/s/ (Roy) Marrett A.V.	 
	 	Name:	(Roy) Marrett A.V.	 
	 	Title:	

Director

	 
	 

 

	 	

URS CANADA HOLDINGS LTD., as a Borrower

	 
	 	 	 	 
	
 

	
By: 

	/s/ H. Thomas Hicks	 
	 	Name:	H. Thomas Hicks	 
	 	Title:	

Director

	 
	 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

ix

  

	 	

EXECUTED by URS ASIA PACIFIC PTY LTD (ACN 102 335 928) in accordance with section 127 of the Corporations Act 2001 (Cth):

	 	 	 	 	 	 
	 	
/s/ Darren Cunliffe

	 	 	
/s/ Kevin Buckley

	 
	 	Signature of director	 	 	Signature of company secretary/director	 
	 	 	 	 	 	 
	 	
Darren Cunliffe

	 	 	
Kevin Buckley

	 
	 	
Name of director

	 	 	
Name of company secretary/director

	 

 

	 	

EXECUTED by URS AUSTRALIA PTY LTD (ACN 000 691 690) in accordance with section 127 of the Corporations Act 2001 (Cth):

	 	 	 	 	 	 
	 	
/s/ Darren Cunliffe

	 	 	
/s/ Kevin Buckley

	 
	 	Signature of director	 	 	Signature of company secretary/director	 
	 	 	 	 	 	 
	 	
Darren Cunliffe

	 	 	
Kevin Buckley

	 
	 	
Name of director

	 	 	
Name of company secretary/director

	 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

x

  

 

	 	

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent, Swing Line Lender, L/C Issuer and a Lender

	 	 	 	 
	
 

	
By: 

	/s/ S. Michael St. Geme	 
	 	Name:	S. Michael St. Geme	 
	 	Title:	

Managing Director

	 
	 	 	 	 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xi

  

 

	 	

BANK OF AMERICA, N.A., as Lender and L/C Issuer 

	 	 	 	 
	
 

	
By: 

	/s/ Arthur Ng	 
	 	Name:	Arthur Ng	 
	 	Title:	

Vice President

	 
	 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xii

  

 

	 	

BNP PARIBAS, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Jamie Dillon	 
	 	Name:	Jamie Dillon	 
	 	Title:	

Managing Director

	 
	 

 

	
 

	
By: 

	/s/ Joseph Mack	 
	 	Name:	Joseph Mack	 
	 	Title:	

Vice President

	 
	 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xiii

  

 

	 	

BANK OF THE WEST, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Nicki Schroeder	 
	 	Name:	Nicki Schroeder	 
	 	Title:	

Senior Vice President

	 
	 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xiv

  

 

	 	

CITIBANK, N.A., as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Christopher Hartzell	 
	 	Name:	Christopher Hartzell	 
	 	Title:	

Vice President

	 
	 

 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xv

  

 

	 	

MIZUHO CORPORATE BANK, LTD., N.A., as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Leon Mo	 
	 	Name:	Leon Mo	 
	 	Title:	

Authorized Signatory

	 
	 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xvi

  

 

	 	

HSBC BANK USA, NATIONAL ASSOCIATION, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Teresa Wu	 
	 	Name:	Teresa Wu	 
	 	Title:	

Vice President

	 
	 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xvii

  

 

	 	

U.S. BANK NATIONAL ASSOCIATION, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Conan Schleicher	 
	 	Name:	Conan Schleicher	 
	 	Title:	

Vice President

	 
	 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xviii

  

 

	 	

SUMITOMO MITSUI BANKING CORPORATION, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Shuji Yabe	 
	 	Name:	Shuji Yabe	 
	 	Title:	

Managing Director

	 
	 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xix

  

 

	 	

SUNTRUST BANK, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Vinay N. Desai	 
	 	Name:	Vinay N. Desai	 
	 	Title:	

Vice President

	 
	 

 

 

                                                                 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xx

  

 

	 	

RBS CITIZENS, N.A., as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Lisa A. Garling	 
	 	Name:	Lisa A. Garling	 
	 	Title:	Vice President	 
	 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xxi

  

 

	 	

BRANCH BANKING AND TRUST COMPANY, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Troy Weaver	 
	 	Name:	Troy Weaver	 
	 	Title:	Senior Vice President	 
	 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xxii

  

 

	 	

BMO HARRIS FINANCING, INC., as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ John Armstrong	 
	 	Name:	John Armstrong	 
	 	Title:	Director	 
	 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xxiii

  

 

	 	

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Robert Grillo	 
	 	Name:	Robert Grillo	 
	 	Title:	Director	 
	 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xxiv

  

 

	 	

TD BANK, N.A., as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Craig Welch	 
	 	Name:	Craig Welch	 
	 	Title:	Senior Vice President	 
	 

 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xxv

  

 

	 	

BARCLAYS BANK PLC, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ John Davey	 
	 	Name:	John Davey	 
	 	Title:	Director	 
	 

 

 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xxvi

  

 

	 	

SOVEREIGN BANK, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ James R. Riley	 
	 	Name:	James R. Riley	 
	 	Title:	Senior Vice President	 
	 

 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xxvii

  

 

	 	

WESTPAC BANKING CORPORATION, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ David Brumby	 
	 	Name:	David Brumby	 
	 	Title:	Executive Director, Westpac Americas	 
	 

 

 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xxviii

  

 

	 	

CAPITAL ONE, N.A., as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Gina Monette	 
	 	Name:	Gina Monette	 
	 	Title:	Vice President	 
	 

 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xxix

  

 

	 	

COMERICA BANK, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Steve Clear	 
	 	Name:	Steve Clear	 
	 	Title:	Vice President	 
	 

 

 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xxx

  

 

	 	

MANUFACTURERS AND TRADERS TRUST COMPANY, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Jeremy Raichle	 
	 	Name:	Jeremy Raichle	 
	 	Title:	Relationship Manager	 
	 

 

 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xxxi

  

 

	 	

THE NORTHERN TRUST COMPANY, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ John Lascody	 
	 	Name:	John Lascody	 
	 	Title:	Vice President	 
	 

 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

  

xxxii

  

 

	 	

CITY NATIONAL BANK, as a Lender

	 	 	 	 
	
 

	
By: 

	/s/ Jeanine Smith	 
	 	Name:	Jeanine Smith	 
	 	Title:	Vice President	 
	 

 

 

URS Corporation

First Amendment to Credit Agreement

Signature Page

 

xxxiiiex10-1.htm

EXHIBIT 10.1 

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS AGREEMENT made effective the __ day of __ , 2012 (the “Effective Date”)

 

BETWEEN:

 

FLINT ENERGY SERVICES LTD.,

 

a body corporate incorporated under the laws of Alberta

 

(the “Corporation”)

 

- and -

 

WAYNE SHAW,

 

an individual residing in Calgary, Alberta

 

(the “Executive”)

 

(each, a “Party” and collectively, the “Parties”)

 

RECITALS:

 

	
A.

	
The Executive is employed by the Corporation.

 

	
B.

	
Commencing on the Effective Date, the Parties wish to enter into this Agreement to govern the future terms and conditions of the Executive’s employment with the Corporation.

 

NOW, THEREFORE, for good and valuable consideration, including the terms, conditions and covenants hereinafter set forth, the sufficiency of which is hereby acknowledged by the Parties, the Corporation and the Executive agree as follows:

 

	
1.  

	
DEFINITIONS

 

	
1.1  

	
In this Agreement, the following terms shall have the following meanings:

 

	
(a)  

	
“Agreement” means this Executive Employment Agreement;

 

	
(b)  

	
“Act” means the Business Corporations Act (Alberta);

 

	
(c)  

	
“Affiliated” has the meaning set forth in the Act, and “Affiliate” means one of two or more Affiliated bodies corporate, including any subsidiary, parent, division, affiliate, predecessor or successor of the Corporation as at the date in question;

 

	
(d)  

	
“Base Salary” has the meaning set forth in Section 5.2 of this Agreement;

 

	
(e)  

	
“Benefits” has the meaning set forth in Section 7.1 of this Agreement;

 

	
(f)  

	
“Board” means the Board of Directors of the Corporation;

 

	
(g)  

	
“Bonus Payment” has the meaning set forth in Section 6.2 of this Agreement;

 

  

i

  

	
(h)  

	
“Business” means the business carried on by the Corporation or any of its Affiliates at the time in question, including the provision of midstream production services to the oil and gas industry and various other industries, which midstream production services include oil and gas production services, facility infrastructure, fabrication and installation services, oil and gas transportation systems installation services, safety services and all related or ancillary services;

 

	
(i)  

	
“Business Day” means any day other than a Saturday, a Sunday or a day that is a statutory holiday in Alberta;

 

	
(j)  

	
“Cause” has the meaning set forth in Section 11.1 of this Agreement;

 

	
(k)  

	
“Company Property” includes all equipment, automobiles, credit cards, keys, books, literature, reports, materials, tools, devices, records, files, data, tapes, computer programs, diskettes, manuals, software, communications, letters, proposals, memoranda, lists, drawings, blueprints, correspondence, specifications and any other documents and property belonging to the Corporation or any of its Affiliates;

 

	
(l)  

	
“Confidential Information” has the meaning set forth in Section 13.1 of this Agreement;

 

	
(m)  

	
“Discretion” means sole, absolute and unfettered discretion and, when used in reference to the giving of consent, means that the consent may be arbitrarily and unreasonably withheld, conditioned or delayed;

 

	
(n)  

	
“Effective Date” means the date of this Agreement;

 

	
(o)  

	
“Executive Group” has the meaning set forth in Section 18.1 of this Agreement;

 

	
(p)  

	
“Executive’s Notice Period” has the meaning set forth in Section 11.5 of this Agreement;

 

	
(q)  

	
“Good Reason” means, without the Executive’s prior written consent, a reduction in the Base Salary by the Corporation which is not cured by the Corporation within 10 Business Days of the Executive providing written notice to the Corporation of such Good Reason, such written notice to be provided by the Executive to the Corporation within 5 Business Days of the occurrence of the event constituting Good Reason.  If the Executive fails to deliver such notice within such time, there will be no Good Reason;

 

	
(r)  

	
“Intellectual Property” has the meaning set forth in Section 14.1 of this Agreement;

 

	
(s)  

	
“Non-Competition Period” has the meaning set forth in Section 16.1 of this Agreement;

 

	
(t)  

	
“Notice” has the meaning set forth in Section 20.1 of this Agreement;

 

  

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(u)  

	
“Party” means either of the Corporation or the Executive and “Parties” means both of them;

 

	
(v)  

	
“Policies” means the policies, procedures and rules established by the Corporation from time to time;

 

	
(w)  

	
“Prior Materials” has the meaning set forth in Section 14.4 of this Agreement;

 

	
(x)  

	
“Said Sections” has the meaning set forth in Section 18.1 of this Agreement;

 

	
(y)  

	
“Separation Package” has the meaning set forth in Section 11.2 of this Agreement;

 

	
(z)  

	
“Term” has the meaning set forth in Section 3.1 of this Agreement; and

 

	
(aa)  

	
“Termination Date” means the last day worked by the Executive hereunder.

 

	
2.  

	
EMPLOYMENT OF EXECUTIVE

 

	
2.1  

	
The Corporation hereby employs the Executive as its Division Chief Operating Officer on the terms and conditions set forth herein, and the Executive hereby accepts such employment on such terms and conditions. The relationship between the parties is that of employer and employee.

 

	
3.  

	
TERM OF AGREEMENT

 

	
3.1  

	
This Agreement and the Executive’s employment hereunder shall come into effect on the Effective Date and shall thereafter continue in force indefinitely unless earlier terminated by the Corporation or the Executive as provided for elsewhere herein (the “Term”).

 

	
4.  

	
DUTIES OF EXECUTIVE

 

	
4.1  

	
The Executive acknowledges and agrees that the effective performance of his employment duties requires the highest level of integrity and the Corporation’s complete confidence in the Executive’s relationship with other employees of the Corporation and all of its Affiliates and with all persons dealt with by the Executive in the course of his employment hereunder. The Executive shall at all times conduct himself in a professional, businesslike manner.  The Executive is a fiduciary of the Corporation.

 

	
4.2  

	
The Executive shall, during the Term:

 

	
(a)  

	
report to the Division President or his designate and act consistently with the directions and Policies established from time to time by the Board;

 

	
(b)  

	
perform the duties and responsibilities of Division Chief Operating Officer, including all those duties and responsibilities customarily performed by persons holding the same or equivalent positions in corporations of a size similar to that of the Corporation, in businesses similar to the Business, in Canada or the United States, as well as such other related duties and responsibilities as may be assigned to the Executive by the Division President or his designate from time to time, acting reasonably, provided such other related duties and responsibilities are consistent with the Executive’s duties as Division Chief Operating Officer;

 

  

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(c)  

	
accept such other or further office or offices to which the Executive may be elected or appointed by the Board (including to an Affiliate of the Corporation) in addition to that of Division Chief Operating Officer of the Corporation, provided the duties and responsibilities associated with such office or offices shall be consistent with the duties provided for in Section 4.2(b);

 

	
(d)  

	
devote the whole of his working time, attention, efforts and skill to the performance of his employment duties and responsibilities as set forth herein, and truly and faithfully serve the best interests of the Corporation (or an Affiliate of the Corporation, as the case may be) at all times. In particular, but without limiting the generality of the foregoing, the Executive shall not engage in any personal activities or any employment, consulting work, trade or other business activity on his own account or on behalf of any other person, nor shall he invest in or be a shareholder of any other business or person that directly or indirectly competes, conflicts or interferes with the Business or the performance of the Executive’s duties under this Agreement in any way. Notwithstanding the foregoing, it shall not be a violation of this Section 4.2(d) for the Executive to have other business interests that do not directly or indirectly conflict with the Corporation’s affairs or the Executive’s ability to fulfill his duties to the Corporation hereunder (the Executive agreeing to bring to the attention of the Board any potential conflicts of interest), or for the Executive to engage in a voluntary activity or other public service that does not interfere with the Executive’s duties under this Agreement;

 

	
(e)  

	
perform the Executive’s duties primarily from the Corporation’s offices in Calgary, Alberta, or such other geographic location in Canada or the United States as the Corporation and the Executive may agree, both acting reasonably, subject to the Corporation providing the Executive with reasonable advance notice of the relocation, taking into consideration the Executive’s personal circumstances, and further subject to the Corporation paying all reasonable relocation expenses of the Executive and making such adjustments to the Base Salary and Benefits as the Corporation determines, acting reasonably, are required so as to allow the Executive to maintain his standard of living following the relocation; and

 

	
(f)  

	
conform to all lawful instructions and directions given to him by the Division President or his designate, and comply with and carry out the Policies, existing as at the Effective Date, and as may be modified or added to from time to time, provided that any modified or additional Policies do not materially alter the rights and obligations under this Agreement.

 

	
4.3  

	
The Executive acknowledges and agrees that his hours of work will vary and may be irregular and will be those hours required to meet the objectives of his employment hereunder. The Executive agrees, therefore, to work over the hours defined in applicable employment or labour standards legislation.

 

	
5.  

	
BASE SALARY AND REIMBURSABLE EXPENSES

 

  

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5.1  

	
As compensation for the services to be rendered by the Executive hereunder and in consideration for the covenants provided by the Executive hereunder, the Corporation hereby agrees to provide the remuneration and benefits set forth herein.

 

	
5.2  

	
The Corporation shall, during the Term, pay the Executive a salary of $375,000.00 per annum, which amount will be reviewed by the Board from time to time and may be increased (but not decreased) in its Discretion (the “Base Salary”). The Base Salary, less required statutory deductions, shall be payable in equal semi-monthly installments in arrears on the 15th and the last day of each calendar month.

 

	
5.3  

	
The Corporation shall reimburse the Executive for all reasonable out-of-pocket expenses necessarily and actually incurred in the performance of his employment duties hereunder, in accordance with the Policies. Subject to the Policies, all reimbursement of expenses shall be conditional on the Executive submitting to the Corporation an itemized written account and all required vouchers, bills and receipts within a reasonable period of time after the expenses have been incurred, and the Corporation approving the expenses in accordance with the Policies.

 

	
5.4  

	
The Corporation shall be entitled to withhold and remit to the appropriate taxing authorities any amounts required by law to be withheld from payments made to the Executive. The Corporation shall also be entitled to deduct and set-off from any payment due to the Executive at any time amounts owed to the Corporation by the Executive and the Executive consents to such deductions or set-offs.

 

	
6.  

	
BONUS PAYMENT

 

	
6.1  

	
The Corporation has established an incentive compensation program.

 

	
6.2  

	
The Executive shall be entitled to receive an annual bonus payment (the “Bonus Payment”) calculated in accordance with the terms and conditions of the Corporation’s incentive compensation program, as amended from time to time in the Corporation’s Discretion, with a target of 70% of Base Salary.

 

	
7.  

	
BENEFITS

 

	
7.1  

	
The Executive shall be eligible to participate in the benefit plans of the Corporation as they exist from time to time (the “Benefits”), in accordance with the terms of such Benefits. The Executive acknowledges and agrees that, notwithstanding anything else herein, the Corporation may reasonably revise the terms of the Benefits.

 

	
7.2  

	
The Executive shall be entitled to receive a car allowance of $950 per month, which amount will be reviewed by the Board from time to time and may be increased in its Discretion.

 

 

 

  

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8.  

	
VACATION

 

	
8.1  

	
The Executive shall be entitled to paid vacation of 30 days per year, prorated for partial years, which shall, subject to section 8.2, be taken in such a manner and at such times as the Executive and the Corporation agree, both acting reasonably.

 

	
8.2  

	
Vacation entitlement shall be calculated by reference to the calendar year. If at the end of any calendar year the Executive has taken less vacation than the entitlement for that year, the Executive may carry a maximum of 10 days of such balance (the remainder being forever forfeited) to the following calendar year, provided such carried forward vacation entitlement must be used in such following year or forever forfeited; provided, however, that in no event shall the Executive receive less than his minimum statutory vacation entitlement under applicable employment standards legislation.

 

	
9.  

	
TAXES

 

	
9.1  

	
The Executive is responsible for the payment of all personal taxes on the Base Salary, Bonus Payments and Benefits.

 

	
10.  

	
ILLNESS AND OTHER CONDITIONS

 

	
10.1  

	
If, in the opinion of the Corporation, acting reasonably, the Executive becomes unable to perform his duties or functions under this Agreement due to illness or disability, the Corporation may appoint another person or persons to undertake such performance on an interim basis on such terms as the Corporation determines, acting in its Discretion and subject to applicable law.

 

	
10.2  

	
Where the Executive is unable to perform the duties hereunder as a result of the illness or disability of the Executive for not more than 119 consecutive days (subject to Section 10.3), the Corporation shall continue to pay the Base Salary, Bonus Payment and the Benefits. If the Executive is unable to perform the duties hereunder as a result of the illness or disability of the Executive for more than 119 consecutive days (subject to Section 10.3), the Corporation shall not be required to pay the Base Salary, Bonus Payment or Benefits commencing on the 120th day for so long as the Executive is unable to perform the duties hereunder, but this Agreement shall, subject always to Section 11.4, continue in effect and the Executive may, if he is entitled pursuant to the Benefits, apply for short-term or long-term disability benefits.

 

	
10.3  

	
If the Executive becomes ill or disabled, then ceases to be ill or disabled before 119 consecutive days have passed, and then becomes disabled again within three (3) weeks due to the same or related illness or injury (as determined in accordance with the long-term disability insurance policy), the period of 119 consecutive days set out in Section 10.2 shall be extended by the number of days during which the Executive ceased to be ill or disabled, and the period of less than three (3) weeks during which the Executive ceased to be ill or disabled shall not be counted when determining the number of consecutive days of illness or disability.

 

 

  

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11.  

	
TERMINATION

 

	
11.1  

	
The Corporation may terminate this Agreement and the Executive’s employment hereunder at any time, without notice, pay in lieu of notice or any form of severance or termination pay, whether under this Agreement, statute, common law or otherwise, for Cause. “Cause” means any reason that would entitle the Corporation to terminate the Executive’s employment without notice or payment in lieu of notice at common law or under the provisions of any applicable law or regulation.

 

	
11.2  

	
The Corporation may terminate this Agreement and the Executive’s employment hereunder at any time and for any reason, without Cause, on written notice to the Executive, in which case the Corporation shall, subject to Section 11.7, pay to the Executive a separation package (the “Separation Package”), in a lump sum, equal to 12 months of Base Salary, less required statutory deductions, such Separation Package to be payable forthwith upon termination without any requirement or deduction for mitigation, or as otherwise requested by the Executive so as to maximize any reduction in income tax payable thereon as permitted by the Income Tax Act (Canada) and agreed to by the Corporation, both the Executive and the Corporation acting reasonably.

 

	
11.3  

	
The Executive acknowledges and agrees that the making of payment pursuant to Section 11.2 shall not prevent the Corporation from alleging Cause for termination.

 

	
11.4  

	
If the Executive suffers a mental or physical disability resulting in the Executive

 

	
(a)  

	
being unable to substantially fulfill his employment obligations hereunder for 119 consecutive days or for 135 days (whether consecutive or not) in any consecutive 24-month period; or

 

	
(b)  

	
being declared by a court of competent jurisdiction to be mentally incompetent or incapable of managing his affairs,

 

the Corporation may terminate this Agreement and the Executive’s employment hereunder by providing at least 30 days’ prior written notice to the Executive, following which the Corporation shall have no further obligation to the Executive, except that the Executive shall continue to be entitled to such insurance benefits as may be provided under any short term or long term disability insurance plan, and to any benefit or entitlement arising from any pension plan of the Corporation (subject always to the terms of such plans).

 

	
11.5  

	
The Executive may terminate this Agreement and his employment hereunder by providing 90 days’ prior written notice to the Corporation (the “Executive’s Notice Period”). The Executive acknowledges and agrees that the Corporation may, in its Discretion, waive all or any part of the Executive’s Notice Period and thereby terminate the Executive’s employment hereunder at any time during the Executive’s Notice Period by paying the Executive a lump sum equivalent to the Base Salary to which the Executive is then entitled prorated for the balance of the Executive’s Notice Period that remains outstanding as at the date on which the Corporation so exercises such waiver, subject to applicable law. For greater certainty, the Executive acknowledges and agrees that if the Corporation so exercises such waiver, the period for which the Corporation will be obligated to provide the said lump sum payment shall not exceed the outstanding balance of the Executive’s Notice Period, regardless of whether the Executive voluntarily elects to provide the Corporation with a period of notice longer than the Executive’s Notice Period.

 

  

vii

  

	
11.6  

	
Notwithstanding Section 11.5, the Executive may resign his employment hereunder immediately for Good Reason, in which case the Executive shall be entitled to the Separation Package, subject to Section 11.7.

 

	
11.7  

	
Payment of the Separation Package set forth in Section 11.2:

 

	
(a)  

	
shall represent full and final settlement of any and all claims of the Executive against the Corporation and all of the Affiliates of the Corporation arising out of or in any way connected to the Executive’s employment hereunder and the termination of such employment, whether such claims arise at law (including under employment standards legislation and in respect of the common law regarding wrongful termination), in equity or otherwise, provided that if the minimum statutory requirements as at the Termination Date provide for any right or benefit in excess of that provided for in such Section 11.2, such statutory requirements will replace the payments set forth in such Section 11.2; and

 

	
(b)  

	
shall be subject to:

 

	
(i)  

	
the Executive having executed a release and indemnity in favour of the Corporation and all of the Affiliates of the Corporation, in a form acceptable to the Corporation and the Executive, both acting reasonably;

 

	
(ii)  

	
the Executive having complied with his obligations pursuant to Sections 13.8, 14.7 and 15.1, including having executed the statutory declarations required pursuant to such Sections, each in a form acceptable to the Corporation, acting reasonably;

 

	
(iii)  

	
the Executive having tendered his resignation from all positions he may hold as officer or director of the Corporation and any Affiliate of the Corporation; and

 

	
(iv)  

	
the Corporation making all withholdings required by law.

 

	
11.8  

	
This Agreement and the Executive’s employment hereunder shall automatically terminate on the death of the Executive.

 

12.           EFFECT OF TERMINATION

 

	
12.1  

	
Notwithstanding any other term or provision of this Agreement, the Executive shall, on termination of his employment hereunder for any reason:

 

	
(a)  

	
be paid the Base Salary and Benefits earned up to and including the Termination. Date, and be reimbursed for expenses incurred prior to the Termination Date pursuant to Section 5.3, all in accordance with this Agreement; and

 

	
(b)  

	
immediately resign all offices held (including directorships) in the Corporation and any Affiliate of the Corporation, failing which the Corporation is hereby irrevocably authorized to appoint some person in the Executive’s name and on his behalf to sign any documents and do any things necessary to give effect to the foregoing.

 

  

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12.2  

	
The Parties agree that because there can be no exact measure of the damages that would be suffered by the Executive as a result of the Corporation terminating the Executive’s employment hereunder, the Separation Package provided for in Section 11.2 shall be deemed to constitute liquidated damages and not a penalty.

 

	
12.3  

	
The Executive shall, if requested by the Corporation, reasonably cooperate in and assist with the transfer of his duties and responsibilities to a replacement on the termination of his employment hereunder.

 

	
12.4  

	
Except as otherwise expressly provided for herein, all Benefits, plans and insurance coverages shall cease effective on the Termination Date.

 

	
13.  

	
CONFIDENTIAL INFORMATION

 

	
13.1  

	
“Confidential Information” means all information relating to the Business, in whatever form or medium, disclosed directly or indirectly by the Corporation or an Affiliate of the Corporation to the Executive or otherwise acquired by the Executive in the course of his employment with the Corporation other than information that (a)  the Corporation advises in writing is not considered Confidential Information; (b) at the time of disclosure is in the public domain through no fault of the Executive; or (c) the Executive can prove was in his possession at the time of disclosure and was not acquired directly or indirectly from the Corporation or an Affiliate of the Corporation or from any third party under any confidentiality obligation to the Corporation or an Affiliate of the Corporation. Without limiting the generality of the foregoing, subject to any disclosure requirements of any regulatory authority having jurisdiction, the terms of this Agreement (but not the fact of its existence) shall be considered Confidential Information and are proprietary and confidential to the Corporation. The Executive may disclose the terms of this Agreement to his spouse, provided his spouse agrees to maintain the confidentiality of the terms of this Agreement in the manner required by this Section 13.1.

 

	
13.2  

	
The Executive acknowledges and agrees that all Confidential Information disclosed to him will be so disclosed exclusively for the purpose of permitting him to carry out his employment duties hereunder; that the Executive shall acquire no right, title or interest in any of the Confidential Information by virtue of such disclosure; and that all Confidential Information is and shall remain the exclusive property of the Corporation or an Affiliate of the Corporation, as the case may be.

 

	
13.3  

	
The Executive shall use the Confidential Information only to carry out his employment duties hereunder, and may disclose the Confidential Information only:

 

	
(a)  

	
to those persons who need to know the Confidential Information and who agree to keep confidential the Confidential Information on terms substantially the same as are set forth in this Article 13;

 

	
(b)  

	
to his legal advisors, provided such advisors agree to maintain the confidentiality of the Confidential Information in the manner required by this Article; and

 

  

ix

  

	
(c)  

	
as required to be disclosed under applicable law, securities exchange rules or policies of regulatory authorities having jurisdiction, as advised by the Corporation’s legal advisors, provided that, in such instance, the disclosure shall be subject to Section 13.6.

 

	
13.4  

	
Except as hereinbefore provided, the Executive shall ensure the Confidential Information is not disclosed by the Executive to any person without the prior written consent of the Corporation, acting reasonably.

 

	
13.5  

	
The Executive’s efforts to prevent disclosure of the Confidential Information shall in no event be less than those he would be reasonably expected to take to prevent disclosure of his own confidential information of like significance.

 

	
13.6  

	
If the Executive is required to disclose the Confidential Information or any part thereof as provided for in Section 13.3(c), he shall notify the Corporation promptly on being made aware of the requirement and, in any event, prior to disclosure, so the Corporation may seek such protective order or other remedy as it deems appropriate, acting in its Discretion. If a protective order or other appropriate remedy is obtained, the Executive will disclose the Confidential Information only as required by such protective order or remedy. If no protective order or other appropriate remedy is obtained, the Executive shall disclose only that portion of the Confidential Information that he is advised by the Corporation’s legal advisors is legally required to be disclosed, and shall exercise all reasonable efforts to obtain reliable assurances that confidential treatment will be accorded the Confidential Information so disclosed.

 

	
13.7  

	
The Executive shall advise the Corporation forthwith of any unauthorized disclosure or use of any Confidential Information of which he becomes aware.

 

	
13.8  

	
Forthwith on the termination of this Agreement for any reason, the Executive shall return the Confidential Information to the Corporation and erase or otherwise destroy all copies of the Confidential Information in his possession or within his power or control. The Executive shall, at the time of the return of the Confidential Information, provide the Corporation with a statutory declaration attesting he has complied with the foregoing requirements.

 

	
14.  

	
INTELLECTUAL PROPERTY

 

	
14.1  

	
“Intellectual Property” means all intellectual property conceived, originated or prepared by the Executive in the course of his employment with the Corporation and for a reasonable period of time thereafter, whether in tangible or intangible form, and all copies thereof; in any form whatsoever, and all rights, title and interest therein and thereto developed, acquired, or of which knowledge is acquired by the Executive, either alone or in conjunction with any other person (including the Corporation and any one or more Affiliates of the Corporation), in connection with, or in any way related to, the course of his employment hereunder.

 

	
14.2  

	
Nothing contained herein expressly or impliedly grants to the Executive any right, title or license in any of the Intellectual Property other than that necessary, on a temporary basis, for him to carry out his employment duties hereunder. The Corporation is and shall be and remain the sole owner of the Intellectual Property, holding all rights, title and interest therein and thereto. To the extent the Executive holds or obtains any rights, title or interest in or to the Intellectual Property, the Executive hereby irrevocably assigns such to the Corporation. The Executive hereby waives all moral rights in any copyright works authored or co-authored by the Executive that are produced in the course of his employment hereunder.

 

  

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14.3  

	
The filing and prosecution of all patent, industrial design, trade mark, copyright and other like applications arising in connection with the Intellectual Property shall be solely under the control and at the expense of the Corporation, and all such applications, as well as all registrations resulting therefrom, shall be solely and exclusively the property of the Corporation. The Executive shall provide, both during the Term and for a reasonable period of time thereafter, all necessary information, materials and assistance to enable the Corporation to proceed with the filing and prosecution of such applications. Without restricting the generality of the foregoing, the Executive shall execute all documents required to effect the legal and beneficial transfer of the Intellectual Property to the Corporation, and to waive any and all moral rights therein and thereto.

 

	
14.4  

	
Nothing in this Agreement affects the ownership of specific materials, data, specifications, methods and software of the Executive that existed prior to the execution of the Original Agreement and that are used by the Executive in the course of his employment hereunder (“Prior Materials”), provided the Prior Materials are clearly and specifically identified as such prior to or concurrent with the execution of this Agreement. The Corporation shall have a royalty free, fully paid-up, world wide, perpetual, irrevocable, unrestricted, non-exclusive right and license to use any Prior Materials during the Term.

 

	
14.5  

	
The Executive shall promptly give notice to the Corporation of any Intellectual Property in connection with which a suit for infringement could reasonably be brought. Following the giving of such notice to the Corporation, the Executive shall not use any such Intellectual Property without the prior written consent of the Corporation, acting in its Discretion.

 

	
14.6  

	
The Executive shall not attack, nor shall he directly or indirectly assist any other person in attacking, the validity of any of the Intellectual Property. The Executive shall assist the Corporation in all intellectual property proceedings and litigation, whether before tribunals, boards, judicial authorities or courts.

 

	
14.7  

	
Forthwith on the termination of this Agreement for any reason, the Executive shall return the Intellectual Property to the Corporation and erase or otherwise destroy all copies of the Intellectual Property in his possession or within his power or control. The Executive shall, at the time of the return of the Intellectual Property, provide the Corporation with a statutory declaration attesting that he has complied with the foregoing requirements.

 

	
15.  

	
COMPANY PROPERTY

 

	
15.1  

	
The Executive acknowledges and agrees that he may already be in possession of or may in the future acquire Company Property pursuant to his employment with the Corporation, and that the Company Property is and shall remain the sole and exclusive property of the Corporation or an Affiliate of the Corporation, as the case may be. On the termination of this Agreement for any reason, the Executive shall promptly return to the Corporation or the Affiliate of the Corporation, as the case may be, in good condition, all Company Property and all copies or reproductions thereof that have come into the Executive’s possession or control. The Executive shall, at the time of return of the Company Property, provide the Corporation with a statutory declaration attesting that he has complied with the foregoing requirements.

 

  

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16.  

	
NON-COMPETITION

 

	
16.1  

	
The Executive acknowledges and agrees that in performing the duties and responsibilities of his employment hereunder, he shall occupy a position of high fiduciary trust and confidence, pursuant to which he shall develop and acquire wide experience and knowledge with respect to all aspects of the Business and the manner in which such is conducted. It is the express intent and agreement of the Executive and the Corporation that such experience and knowledge shall be used solely and exclusively in furtherance of the Business and not in any manner detrimental to the Corporation or any Affiliate of the Corporation. The Executive agrees, therefore, that for as long as he is employed hereunder and for a period of one year following the termination of this Agreement and the Executive’s employment for whatever reason (the “Non-Competition Period”), he shall not be engaged in, either directly or indirectly, in any manner, including as officer, director, shareholder, owner, partner, member, joint venturer, employee, independent contractor, consultant, advisor or sales representative, any practice, business or enterprise that competes, directly or indirectly, with the Business in any jurisdiction in which the Business is conducted or proposed to be conducted as at the Termination Date.

 

	
17.  

	
NON-DISCLOSURE AND NON-SOLICITATION

 

	
17.1  

	
The Executive acknowledges and agrees that for as long as he is employed hereunder, he shall not solicit, initiate or encourage proposals or offers from, or provide information concerning the Corporation or any Affiliate of the Corporation to, any person in connection with or relating to any acquisition of all or any material part of the Corporation’s or any Affiliate’s assets or issued and outstanding shares, or any amalgamation, merger, arrangement, take-over bid, reorganization, re-capitalization, liquidation, winding-up or other business combination or similar transaction involving the Corporation or any Affiliate of the Corporation, without in each case obtaining the prior written consent of the Board, except that this provision shall not apply to the sale by the Executive of any shares of the Corporation owned by him.

 

	
17.2  

	
The Executive acknowledges and agrees that he will acquire Confidential Information and other sensitive information pursuant to his employment hereunder that would cause irreparable harm to the Corporation or the Affiliates of the Corporation if disclosed to a competitor or used for competitive purposes. Accordingly, the Executive agrees that neither he nor any employee or agent of the Executive shall, during the Term and for a period of two years from the Termination Date, in any jurisdiction in which the Corporation carries on the Business as at the Termination Date:

 

	
(a)  

	
solicit, entice or attempt to solicit or entice, either directly or indirectly, any customer or prospective customer of the Corporation or any one or more of the Affiliates of the Corporation as at the Termination Date or within the 24-month period prior thereto to become a customer of any business or enterprise that competes with the Business; or

 

	
(b)  

	
solicit, entice, or attempt to solicit or entice, either directly or indirectly, any employee or contractor of the Corporation or any Affiliate of the Corporation as at the Termination Date to become employed or retained by or connected with any other business or enterprise.

 

  

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18.  

	
REMEDIES

 

	
18.1  

	
The Executive acknowledges and agrees that the Corporation and the Affiliates of the Corporation will suffer irreparable harm if the Executive breaches any of his obligations under Articles  13, 14, 15, 16 and 17 (the “Said Sections”), and that monetary damages would be impossible to quantify and, in any event, inadequate to compensate the Corporation and the Affiliates of the Corporation for such a breach. Accordingly, the Executive agrees that, in the event of a breach or a threatened breach by the Executive, or by any or all of his partners, employees, servants, agents, representatives or other persons directly or indirectly acting for, on behalf of, or with, the Executive (individually and collectively, the “Executive Group”), of any of the provisions of the Said Sections, the Corporation and the Affiliates of the Corporation shall be entitled to obtain, in addition to any other rights, remedies or damages available to them at law, in equity or otherwise, an interim, interlocutory and/or permanent injunction and/or specific performance, without having to prove actual damages or post bond, in order to prevent or restrain such breach or threatened breach by the Executive Group.

 

	
18.2  

	
The Executive acknowledges and agrees that:

 

	
(a)  

	
the obligations set forth in the Said Sections do not in any way mitigate or reduce the fiduciary or common law obligations of the Executive to the Corporation with respect to the Confidential Information, the Intellectual Property, the Company Property, non-competition, non-disclosure or non-solicitation;

 

	
(b)  

	
all restrictions contained in the Said Sections are reasonable and valid; and

 

	
(c)  

	
if, notwithstanding Section 18.2(b), a court of competent jurisdiction finally determines that the temporal or geographical scope of any one or more of the restrictions set forth in the Said Sections is unreasonable, the restrictions set forth in the Said Sections shall be reduced as to term or geographical scope or both or otherwise to the extent determined by the Corporation, in its Discretion, so that the Said Sections are enforceable at law, with the unenforceable portion of the Said Sections being deemed to be severed from the balance of the Said Sections.

 

	
18.3  

	
Notwithstanding anything else herein, the Executive acknowledges and agrees that if he violates any of his covenants or agreements hereunder, the Corporation shall be entitled to an accounting and repayment of all profits, compensation, royalties, commissions, remuneration or benefits that the Executive directly or indirectly shall have realized or may realize relating to, arising from or connected with any such violations. This remedy shall be in addition to and not in limitation of any injunctive relief or other right or remedy to which the Corporation is or may be entitled at law, in equity or otherwise.

 

	
19.  

	
INDEMNIFICATION

 

	
19.1  

	
Subject to the requirements of the Act, the Corporation shall indemnify and save harmless the Executive from and against any personal liability he incurs as a result of performing his employment duties pursuant hereto, provided he acted honestly and in good faith with a view to the best interests of the Corporation (or an Affiliate of the Corporation, as the case may be) and, in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, had reasonable grounds for believing his conduct was lawful, other than any liability:

 

  

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(a)  

	
the Corporation is prohibited by law from assuming; or

 

	
(b)  

	
of the Executive to the Corporation or any Affiliate of the Corporation arising from this Agreement or the Executive’s employment hereunder.

 

	
19.2  

	
The foregoing shall not be deemed exclusive of any other rights to which the Executive may be entitled pursuant to the articles or by-laws of the Corporation, any valid and lawful agreement, any vote of members or disinterested directors, or otherwise, both as to action in his official capacity and action in any other capacity while employed hereunder, provided the total indemnity to the Executive shall in no event exceed his total cost or liability.

 

	
19.3  

	
The Executive shall indemnify, defend and hold harmless the Corporation, all Affiliates of the Corporation and their respective directors, officers, agents, employees, independent contractors, advisors, Affiliates, successors and assigns and those for whom it is or they or any of them are responsible at law against and in respect of any and all claims, charges, taxes, penalties or demands that may be made by the Canada Revenue Agency or other governing authority requiring the Corporation or any Affiliate of the Corporation, to make payment in respect of taxes payable by the Executive in excess of the taxes withheld by the Corporation or any Affiliate of the Corporation.

 

	
19.4  

	
The Corporation shall purchase and maintain directors and officers liability insurance for the period of the Executive’s employment and for that period of time equal to the Non- Competition Period (as defined in Section 16.1) following the termination of the Executive’s employment, which insurance shall be for the benefit of the Executive with respect to any liability incurred by the Executive in his capacity as an employee or officer of the Corporation, except where the liability relates to the Executive’s failure to act honestly and in good faith with a view to the best interests of the Corporation, and provided that such insurance can be obtained by the Corporation on reasonable terms and for reasonable premiums.

 

	
20.  

	
NOTICE

 

	
20.1  

	
Any notice or other communication required or permitted to be made under this Agreement (“Notice”) shall be in writing and shall be deemed to have been properly made if delivered personally or by prepaid courier, or sent by registered mail, fax or other electronic means, addressed to the appropriate party as follows:

 

	
(a)  

	
if to the Corporation:

 

Flint Energy Services Ltd.

Attention: Sean James

700, 300-5th Avenue S.W.

Calgary, Alberta

T2P 3C4

Canada

 

Tel:           (403) 218-7157

E-mail:                       JSean@flintenergy.com

  

xiv

  

	
(b)  

	
if to the Executive:

 

Wayne Shaw

 

Office: 700, 300 - 5th Avenue S.W. Calgary, Alberta T2P 3C4

Home: 1123 Lake Placid Drive S.E. Calgary, Alberta T2J 5G7

Home Phone: (403) 695-4544

Office Phone: (403) 218-7114

Email: wshaw@flintenergy.com

 

	
20.2  

	
Every Notice shall be deemed to have been given and received on the date of delivery if delivered personally, on the next Business Day following transmission if sent by fax or other electronic means, and on the fifth Business Day following the registered mailing thereof; provided that if there shall be, prior to the deemed receipt of a Notice, a mail strike or other labour dispute that might affect the delivery of such Notice by the mail, then such Notice shall only be effective if delivered personally, or by fax or other electronic means.

 

	
20.3  

	
Either Party may change its address for notice by sending notice of the change of address to the other Party in the manner set forth above. Neither Party shall prevent, hinder or delay, or attempt to prevent, hinder or delay the service on that Party of a Notice.

 

	
21.  

	
GENERAL

 

	
21.1  

	
Entire Agreement and Modifications. The Parties confirm and agree that this Agreement (including the recitals hereto) constitutes the entire and complete agreement between them, superseding and replacing all previous written and all previous, present and future oral communications, negotiations, representations, understandings and agreements between the Parties with respect to the subject matter hereof. This Agreement may not be modified except by agreement of both Parties in writing.

 

	
21.2  

	
Governing Law. This Agreement and all modifications hereto shall, in all respects, be subject to and interpreted, construed and enforced in accordance with the laws of the province of Alberta and the laws of Canada applicable therein. Each Party attorns to and accepts the exclusive jurisdiction of the courts of Alberta for all purposes.

 

	
21.3  

	
Headings. Headings of the Sections hereof are inserted for convenience of reference only and shall not affect the construction or interpretation of this Agreement.

 

	
21.4  

	
Extended Meanings. Words importing the singular number include the plural and vice versa, words importing the masculine gender include the feminine and neutral genders, the term “including” means “including, without limitation,” and the terms “include” and “includes” have similar meanings, all as the context may require. “Person” includes an individual, partnership, association, company, body corporate, syndicate, society, trust, trustee, executor, administrator and legal representative. Words such as “hereunder”, “hereto” and “herein” shall, unless the context clearly indicates to the contrary, refer to the whole of this Agreement and not to any particular section or part thereof. All references to legislation are to such legislation as amended or substituted from time to time. The word “dollar” and the symbol “$” indicate Canadian currency.

 

  

xv

  

	
21.5  

	
Time of Day and Time. Except as otherwise expressly set forth herein, references to time of day or date mean the local time or date in Alberta. Time is of the essence to the performance of the Parties’ obligations under this Agreement.

 

	
21.6  

	
Severability. Should any provision of this Agreement be finally determined by a court of competent jurisdiction to be illegal, void or otherwise unenforceable, such provision shall be severed from the rest of this Agreement, and the rest of this Agreement shall remain in full force and effect and be binding on the Parties as though such provision had never been included.

 

	
21.7  

	
Waiver. No delay or omission by either Party to exercise any right, remedy or power occurring on any non-compliance or default by the other Party with respect to any of the terms or conditions of this Agreement shall impair any such right, remedy or power or be construed to be a waiver thereof. The terms and conditions of this Agreement may be waived only in writing and only by the Party entitled to the benefit of the terms or conditions being waived. A waiver by either Party of a breach of any of the covenants, conditions or agreements to be performed by the other shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant, condition or agreement herein contained, whether or not similar.

 

	
21.8  

	
Remedies Cumulative. All rights and remedies provided for in this Agreement shall be cumulative and in addition to and not in lieu or limitation of any other rights or remedies available to either Party at law, in equity or otherwise. No single or partial exercise by a Party of any right or remedy precludes or otherwise affects the exercise of the remainder or of any other right or remedy to which that Party may be entitled.

 

	
21.9  

	
Assignment. The Parties shall not assign this Agreement without the written consent of the other Party.

 

	
21.10  

	
Further Assurances. Each Party shall, from time to time and at all times, promptly do all such further acts and execute and deliver all such further documents and assurances as shall be reasonably required in order to perform and carry out the terms of this Agreement.

 

	
21.11  

	
Survival. Any term, condition or provision hereof that requires fulfilment or performance, or that is, by its nature, applicable after the termination or expiry of this Agreement and the employment relationship created hereby, including Articles 1, 5, 9, 11, 12, 13, 14, 15, 16, 17, 18, 19, and 21, shall survive such termination or expiry and remain in full force and effect. The termination of any provision of this Agreement shall not excuse a prior breach of that provision.

 

	
21.12  

	
Enurement. This Agreement shall enure to the benefit of and be binding on the Parties and their respective successors and assigns.

 

	
21.13  

	
Facsimile; Counterparts. This Agreement may be executed originally or by facsimile and may be executed in counterparts, each of which when so executed shall be deemed to be an original and both of which shall together constitute one and the same instrument, which shall be sufficiently evidenced by either such original counterpart.

 

  

xvi

  

IN WITNESS WHEREOF the Parties acknowledge and agree they have read and understand the terms of this Agreement and have had an opportunity to seek independent legal advice prior to entering into this Agreement, and that they have executed this Agreement with full force and effect on the Effective Date.

 

	 	

FLINT ENERGY SERVICES LTD.

	 
	 	 	 	 
	 	
Per: 

	 	 
	 	 	
Name:

	 
	 	 	

Title:

	 
	 	 	 	 
	 SIGNED, SEALED & DELIVERED in 

the presence of:

	 	 	 
	 	 	 	 
	Witness	 	WAYNE SHAW	 
	 	 	 	 
	 	 	 	 
	Witness	 	 	 

 

xvii

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